In July 2022, the City Council discussed certain real estate policy changes that should be made to improve efficiency of development review, enhance enforceability of City Code, protect the City's long-term interests, and better balance risks to the City with regulatory burdens.

The City's Utility Extension and Improvement Policy, adopted by Ordinance No. 900404 and codified by UDC Section 1.16, requires that all Georgetown utilities be placed within easements conveyed to the City.  Within the city limits, rights-of-way and easements dedicated by plat, as well as specific utility easements, meet this requirement, since they are dedicated to the City.  In the City's extraterritorial jurisdiction (ETJ), platting dedicates easements and rights-of-way to the public or the County, not the City, so easements by separate instrument are required.

When new development in the ETJ plats and conveys water line easements to the City, the approval of the plat or stormwater permit is often delayed by the need to survey these easements and obtain title insurance for the conveyance to the City. However, requiring City easements by separate instrument protects the City in the event of future redevelopment or road widening.

State law authorizes municipal water utilities to run within TxDOT and County rights-of-way so long as the City relocates the infrastructure at its own cost if the adjacent TxDOT or County road is ever expanded or realigned.  Authorizing ETJ development to run some City water lines within County public utility easements or rights-of-way, pursuant to this statutory right, would support development by 1) avoiding the need for developers to acquire off-site water line easements across neighboring private property; 2) encouraging developments to include public utility corridors that can be utilized by water, wastewater, fiber, and other utility services; and 3) avoiding the scenario where a homeowner's front yard is encumbered by a 10-foot PUE, a 15-foot Georgetown Utility easement, and a 15-foot Pedernales Electric Cooperative easement stacked back-to-back-to-back.

This ordinance will amend the City's Utility Extension and Improvement Policy to allow new development in the ETJ to place water infrastructure within public utility easements and rights-of-way, provided the infrastructure is 1) internal to the development, and 2) not master plan infrastructure, and the public utility easement or right-of-way is not parallel to A) a numbered TxDOT or County road, B) a road listed in the City or County's Overall Transportation Plan, or C) a road included in the City or County's Capital Improvement Plan.  

Staff recommends approval of the first reading of the ordinance.