Council strikes criminal penalties, moves underground-utilities amendments forward with financing options to be explored

Assistant City Manager Flynn Fagg presented proposed amendments to the city's 2025 underground-utilities ordinance, focused on clarifying responsibilities and construction timing for creating underground utility districts: (1) utility companies install conduits and equipment; (2) the city removes above-ground equipment within the adopted schedule; and (3) individual property owners must privately contract and complete connections within six months of the district work.

During first reading, the city attorney recommended striking an entire paragraph of penalties that used language borrowed from a model ordinance and criminalized noncompliance (references to imprisonment and a misdemeanor fine). Council agreed to remove that paragraph and asked staff to prepare cleaner enforcement language. Members also raised affordability concerns for homeowners expected to pay their private-connection costs; staff estimated individual connection fees generally run about $3,500 to $7,500 and are not subject to the bond financing for the district. The city attorney and staff said the city can place a lien for unpaid connection fees and noted the council could authorize the city manager to adopt repayment plans or loan terms so that property owners can pay over time.

Council carried the ordinance amendments at first reading and asked staff to return with model repayment terms and a memo summarizing Old Las Palmas results to guide future neighborhood petitions.