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Ordinance No. 569-18 Sewer Affordable HousingORDINANCE NO. 569-18 AN ORDINANCE OF THE SOUTH TAHOE PUBLIC UTILITY DISTRICT AMENDING DIVISION 1 AND SECTIONS 4.5 AND 4.8.14 OF DIVISION 4 OF THE ADMINISTRATIVE CODE REGARDING THE TRANSFER OF SEWER CAPACITY FOR AFFORDABLE HOUSING BE IT ENACTED by the Board of Directors of the South Tahoe Public Utility District, County of El Dorado, State of California, as follows: SECTION I — POLICY AND PURPOSE The purpose of this Ordinance is to adopt certain changes to the Administrative Code regarding the transfer of sewer capacity from one parcel to another parcel for affordable housing. SECTION II — DEFINITIONS For the purpose of this Ordinance, the terms used herein are defined as follows: A. The District — The South Tahoe Public Utility District. B. Tke Board — The Board of Directors of the South Tahoe Public Utility District. C. Administrative Codc — The compilation and codification of all of the Administrative, Water, Sewer, Street Lighting and Groundwater Management Plan Ordinances of the District, which establish the authority and the principles for decisions of the District, and provide the public with guidelines applicable to District operations. D. Sewer Unit. A Sewer Unit is an estimated measurement of quantity and strength of wastewater discharged to the Sewer System. A Sewer Unit represents incremental capacity rights in the form of fixtures or facilities causing actual or potential sewage discharge to the Sewer System. A Sewer Unit is used for the purposes of determining Sewer Service Charges. E. Excess Sewer Unit — An Excess Sewer Unit is any Sewer Unit assigned to a parcel in excess of the number of Sewer Units required for such parcel in accordance with the District's Schedule of Sewer Units. F. Affordable Housing. Affordable Housing is deed -restricted housing to be used exclusively for households with an income not in excess of the greater of 120 percent or the upper limit as defined by the applicable City or County code of the area median income. SECTION III — FINDINGS The Board of Directors of the South Tahoe Public Utility District, County of El Dorado, State of California, make the following findings: 1. The Administrative Code presently restricts the transfer of Sewer Units from one parcel to another parcel; 2. The City of South Lake Tahoe ("City") and the portion of El Dorado County ("County") within the District's service area boundary lack affordable housing for low and middle income households; 3. The City and County have developed and may develop further programs to promote the development of affordable housing for low and middle income households; 4. The District desires to amend the Administrative Code to provide, on a prospective basis, support for the City's and the County's efforts to promote the development of affordable housing; 5. The District desires to amend the Administrative Code to allow the transfer of Excess Sewer Units from one parcel to another parcel for use in connection with the development of affordable housing; 6. Under the District's proposed amendment to the Administrative Code, Excess Sewer Units may be only transferred from one parcel to another parcel for use in connection with the development of affordable housing. Otherwise, Excess Sewer Units are not transferable among parcels, but can be used for further development upon the same parcel; and, 7. The Board of Directors has determined that it is in the best interest of the District and the community to make these amendments to the Administrative Code. SECTION IV — AMEND DIVISION 1 OF THE ADMINISTRATIVE CODE Administrative Code Division 1 shall be amended to add a new section 1.1.4, and renumber the existing section 1. 1.4 and subsequent definitions sequentially, which shall be as follows: "1.1.4. Affordable Housing. Affordable Housing is deed -restricted housing to be used exclusively for households with an income not in excess of the greater of 120 percent or the upper limit as defined by the applicable City or County code of the area median income. Ordinance No. 569-18 Sewer Unit Transfer Ordinance Page 2 SECTION V — AMEND SECTION 4.5 OF DIVISION 4 OF THE ADMINISTRATIVE CODE Administrative Code Section 4.5 shall be amended to add a new section 4.5.14, which shall be as follows: "4.5.14 — SCHEDULE 8 An administrative fee of One Hundred Dollars ($100.00) will be collected for each transfer of excess sewer unit(s), pursuant to section 4.8.14." SECTION VI — AMEND SECTION 4.8.14 OF DIVISION 4 OF THE ADMINISTRATIVE CODE Administrative Code section 4.8.14 shall be amended in its entirety as follows: "4.8.14 Conditions to Trajns er: Transfer of Excess Sewer Units shall be allowed only for the development of Affordable Housing and no sewer permit shall be issued for development of Affordable Housing on a Primary Parcel when Excess Sewer Units are transferred from a Secondary Parcel until there is compliance with all of the following conditions: a) Conformance with the General Plan. The use of the Primary Parcel shall conform to the applicable City or County General Plan. b) Approvals. The applicant for a sewer permit for the Primary Parcel shall secure all approvals for the Affordable Housing development as required by the City or County, the Tahoe Regional Planning Agency and the State of California. c) Sewer Permit. The owner of the Primary Parcel shall submit a completed Sewer Permit Application to the District. d) Transfer Application. The owner of the Secondary Parcel shall submit a completed Transfer of Sewer Capacity Rights Application to the District. e) Payment of Fees and Taxes. All existing unpaid District fees and charges shall be paid for the Primary and Secondary Parcels. f) Satisfaction of Liens. All liens upon the Secondary Parcel shall be satisfied, or in the alternative, written concurrence shall be obtained from any lienholder, which written concurrence shall save the District free and harmless from any and all claims arising out of the transfer of Excess Sewer Units from the Secondary Parcel in a form acceptable to the District. g) Transfer of All Excess Sewer Units. When all Sewer Units are transferred from the Secondary Parcel, the following conditions shall apply: (1) Removal of Sewer Lateral. The lateral sewer connection(s) of the Secondary Parcel shall be removed, plugged and sealed by the District at the District's expense. If the owner of the Secondary Parcel subsequently purchases Sewer Units for use on the Secondary Parcel, a new sewer lateral must be installed in a manner satisfactory to the District at the owner's expense. Physical inspection of the sewer lateral shall be made by the District. Ordinance No. 569-18 Sewer Unit Transfer Ordinance Page 3 (2) Disconnection of Water Utilities. All water service utilities for the Secondary Parcel shall be capped and disconnected from the District Water System to the satisfaction of the District. Physical inspection of the properly capped water connection(s) shall be made by the District. h) Remaining Use on Secondary Parcel. Any use which remains on the Secondary Parcel shall have sufficient Sewer Units to accommodate such use as determined by the District. Physical inspection of the remaining use on the Secondary Parcel shall be made by the District. i) District Approval. The Board authorizes the General Manager of his/her designee to approve the transfer of Excess Sewer Units from the Secondary Parcel to the Primary Parcel and issuance of a Sewer Permit for the Primary Parcel upon satisfaction of all of the above conditions." SECTION VII — SEVERABILITY If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance and its implementing rules and regulations is for any reason held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portions of this Ordinance or the Administrative Code. The Board of Directors declares and determines that it would have passed section, subsection subdivision, paragraph, sentence, clause or phrase thereof of this Ordinance and its implementing rules and regulations and the Administrative Code irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases may be determined to be unconstitutional or invalid. SECTION VIII — EFFECTIVE DATE This Ordinance amending the above referenced section to the Administrative Code shall take effective 30 days after its passage. PASSED AND ADOPTED by the Board of Directors of the South Tahoe Public Utility District at its duly held regular meeting on the 201h day of September, 2018 by the following vote: AYES: CEFALU, JONES, VOGELGESANG, SHEEHAN, WALLACE NOES: NONE ABSENT: NONE Randy Vogelgesang, President South Tahoe Public Utility District ATTEST: A��A Melonie Guttry, Clerk of the Board 17440241 Ordinance No. 569-18 Sewer Unit Transfer Ordinance Page 4