Consideration of an Interim Ordinance authorizing a Study and Imposing a Moratorium on Data Centers and High Impact Utility Consumers.

Adoption of the attached ordinance (following the public hearing).

At the June 22 City Council meeting, the City Council accepted a recommendation to conduct a public hearing and consider an ordinance authorizing a study and imposing a moratorium on data centers and high-impact utility consumers. To further clarify the scope of the proposed study, the draft ordinance has been narrowly tailored to apply to uses defined as follows:

"Data center" means a building or other facility used principally for the storage, management, processing, and/or transmission of digital data, which houses computer or network equipment, systems, services, appliances, and/or other associated components related to digital data operations. A data center may also include accessory and appurtenant facilities, such as offices, air handlers, power generators, water cooling systems and water storage facilities, utility substations, and other associated infrastructure necessary to support sustained digital data operations. The term "data center" does not include computing facilities that are not the principal use of a building or other facility in extent or area, but which perform similar functions only as an accessory to a separate lawful principal use.

"High impact utility consumer" means any new or expanding commercial, industrial, or agricultural land use that meets any of the following criteria:

1.  A facility and its connected associated facilities designed for and capable of operating at a capacity of 25 megawatts or more but less than 50 megawatts.
2.  A facility and its connected associated facilities with a projected average water use of 50,000 gallons per day (GPD) or more.
    
3.  Development of any facility and its connected associated facilities in excess of 450,000 gross square feet.

To allow the City Council the opportunity to review the City's regulations governing these types of uses without the time constraints associated with a pending development application, staff recommends that the City adopt an interim ordinance authorizing a study and establishing a temporary moratorium on the development of the use types described above. The purpose of the moratorium is to provide the City with adequate time to evaluate potential impacts related to land use compatibility, utility infrastructure capacity and consumption, public services, environmental considerations, and other planning factors, and to determine whether amendments to the City's zoning and development regulations are warranted. The proposed moratorium only applies to data centers and high impact utility consumers as narrowly defined above and is not expected to affect the vast majority of commercial, industrial, or agricultural development projects.

Staff recommends adoption of the proposed interim ordinance as drafted.