• A Resolution of the City Council awarding the contract for construction of improvements in Underground Utility Assessment District 2021-1 (West Street), subject to receipt of bond proceeds.
If the majority of weighted ballots are in opposition to the proposed assessment district, the City Council should declare the proposal abandoned for lack of majority support.
Financing the District
Following the July 22 and August 12, 2025, meetings, the City Council directed staff to continue evaluating bond purchase methods and designated a working group to advise on the best financing approach. While the working group has met, a final recommendation has not yet been reached.
The working group is continuing to evaluate financing options and anticipates returning to the City Council on October 14, 2025, with a recommended bond purchase method. The forthcoming analysis will confirm policy options for the Council’s consideration, which include Table 1: Financing Options Under Evaluation
Option Description/Considerations
IBank Loan
Unlikely, as repayment would come from property owners
rather than City revenues - this may not be consistent with Infrastructure Bank eligible project parameters.
Private Placement
Challenging; these transactions are typically restricted to maturities of 15 years or less, making a 25-year term
unattractive to investors.
Assessment District Bonds (25-Year) Traditional financing method; bonds would be sold to outside investors. Successfully completed for past two districts.
City Purchase at Market Rate City purchases 100% of the bonds at current market rates, saving on issuance costs
City Purchase at Below-Market Rate
Staff is reviewing if the City can purchase all or some of the bonds at below-market rates, which would lower both interest and issuance costs. This could also lock the City into an investment – which, while solid – may generate less interest than would otherwise be generated via other City investments like Treasuries, Agencies, and Corporate Bonds.
Future Actions
If the City Council determines to form the assessment district, the City Clerk and the City Treasurer will prepare a Notice of Recording of Assessment and Cash Collection Period, which will be mailed to each property owner in the district. The notice will advise property owners that a lien will be placed on their property to cover the costs of the improvement, unless they choose to pay their assessment during the 30- 5 of 26
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Day Cash Collection Period. Concurrently, staff will determine how many property owners apply and qualify for the Assessment Deferment Loan Program. After the cash collection period ends, and the number of applicants who qualify for the deferment loan program is known, the bond issuance process will commence. It is anticipated that the project would then return to City Council in December 2025 for consideration of bond sales and appropriations for the project. Construction would begin in February 2026.
As noted, the financing ad hoc working group hopes to return by October 14, 2025 with recommendations as to financing options.
FINANCIAL ANALYSIS
On May 20, 2025, the City Council approved a contribution of $1,415,072 if the project is approved at the public hearing and final balloting. It is recommended to appropriate:
• $578,200 from the Street Lighting and Utility Fund and • $836,872 from the Wildfire Mitigation and Fire Safety Fund If there is not a majority of weighted ballots in favor of the proposed assessment district, an appropriation will not be required, and the project will be abandoned.
ENVIRONMENTAL ANALYSIS
The formation of an undergrounding district is exempt from CEQA pursuant to state CEQA Guidelines, section 15302 (Replacement or Reconstruction) as it consists of the possible formation of an undergrounding utility assessment district to fund the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced, including but not limited to: (1) conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding; and (2) replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity. Here, the formation of an undergrounding district involves the possible formation of an undergrounding utility assessment district to fund the reconstruction of an electric utility system by removing above ground utilities and reconstructing them below ground. The new undergrounding system will be located on the same site and will have substantially the same purpose and capacity (i.e., providing electricity to structures). The undergrounding district, if approved, involves the removal of 38 utility poles and undergrounding of approximately 4,700 linear feet of overhead wires and therefore constitutes conversion of overhead electric utility distribution system facilities to underground. Further the formation of an undergrounding district involves the following aboveground equipment to be installed to accommodate the undergrounding: riser poles, antenna pole, guy anchors, utility cabinets, pedestals, bollards, and retaining walls.
The formation of an undergrounding district is also categorically exempt from CEQA under the following State CEQA Guidelines, Sections 15301(b) and 15303(d). Section 15301(b) exempts projects that pertain to existing facilities of both investor and publicly owned utilities used to provide electric power, natural gas, sewerage, or other public utility services. Here, the formation of an undergrounding district is exempt 6 of 26
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under Section 15301(b) because it consists of existing facilities providing electric power with no expansion of use. Section 15303(d) exempts projects that pertain to construction and location of limited new, small facilities or structures, including water main, sewage, electrical, gas, and other utility extensions, including street improvements, of reasonable length to serve such construction. Here, the formation of an undergrounding district is exempt under Section 15303(d) because it consists of new construction of small utility facilities or structures.
Further, none of the exceptions outlined in State CEQA Guidelines section 15300.2 apply. The location of the undergrounding district site does not contain any environmentally sensitive areas as a majority of the parcels are developed. There will be no cumulative impact resulting from successive projects of the same type in the same place, over time. Any future utility undergrounding projects would occur in areas outside of the Project area. There are no unusual circumstances resulting in a significant impact on the environment because trenching will occur in existing, paved roadways. There will be no damage to scenic resources, including trees, historic buildings, rock outcroppings or similar resources, within a highway officially designated as a state scenic highway; all trenching will occur in existing, paved roadways and the removal of the above ground utility systems will improve resources both in terms of safety and aesthetics. Further the undergrounding district is not near an officially designated state scenic highway and it is away from Coast Highway. It is not located on a hazardous waste site, or any other site included on a list compiled pursuant to Government Code Section 65962.5. The formation of an undergrounding district will not result in significant adverse impacts to historical resources as defined by CEQA as it is occurring in existing, paved roadways and not within a close proximity to any known historical resources. Consequently, additional environmental analysis is not necessary to meet the requirements of the CEQA. If the City Council agrees, staff will cause to be filed a Notice of Exemption (NOE) with the County Recorder’s Office and State Clearinghouse should the Project receive final approval.
In the alternative, the formation of an undergrounding district consists of the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; CEQA Guidelines, section 15378(b)(4).) Finally at the March 20, 2024 Planning Commission meeting, the City previously conducted environmental review for the proposed undergrounding project and determined that the project was exempt under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301(b), which authorizes an exemption for “existing facilities providing electric power with no expansion of use”; Sections 15302(c) and (d) for the “replacement or reconstruction of existing utility systems involving negligible or no expansion of capacity, and conversion of overhead electric utility distribution system facilities to underground”; and Section 15303(d) involving “new construction of small utility facilities or structures.” More detailed environmental analysis can be found in that March 20, 2024, Planning Commission approval.
There have been no changes to the Project, no changed circumstances, and no new information that could not previously have been known, that would trigger the need for subsequent CEQA review.
ATTACHMENTS
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1. Assessment District Information (Pgs. 8-10)
2. Resolution Confirming Assessments (Pgs. 11-20)
3. Resolution Awarding Construction Contract (Pgs. 21-25) Report Prepared By: Coordinated With:
Pierre Sawaya, Capital Program Manager Thomas Perez, City Engineer Michelle Bannigan, Finance Director
Laura Parisi, City Treasurer
Patrick Donegan, Assistant City Attorney
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City of Laguna Beach
West Street Underground Utility Assessment District (AD 2021-1) Preliminary Engineer's Report
July 15, 2025 | 21
Attachment 1
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City of Laguna Beach
West Street Underground Utility Assessment District (AD 2021-1) Preliminary Engineer's Report
July 15, 2025 | 27
Property
Address
Asmt
No.
Assessor's
Parcel
Number
Parcel
Area (sf)
Assigned
Connections
Aesthetics
Benefit
(YES/NO)
Aesthetics
Benefit
Area
Safety
Benefit
(YES/NO)
Safety
Benefit
Area
Reliability
Benefit
(YES/NO)
Reliability
Benefit
Area
Average
Assessed
Benefit
Area
Total
Construction
Incidental
Expenses
Financial
Cost
Contribution
from Other
Sources
Final Total
Assessment
22190 PASEO DEL SUR 1 056-070-13 6,750 0 YES 6,750 YES 8,484 NO 0 5,078.02 38,298.10 $ $ 2,134.28 $ 3,400.54 $ (14,150.70) $ 29,682.22 22191 RICO RD 2 056-070-14 6,180 0 YES 6,180 YES 8,484 NO 0 4,888.02 36,865.13 $ $ 2,054.43 $ 3,273.31 $ (14,150.70) $ 28,042.16 22200 PASEO DEL SUR 3 056-070-15 7,035 0 YES 7,035 YES 8,484 NO 0 5,173.02 39,014.58 $ $ 2,174.21 $ 3,464.16 $ (14,150.70) $ 30,502.25 22202 PASEO DEL SUR 4 056-070-16 6,400 0 YES 6,400 YES 8,484 NO 0 4,961.36 37,418.20 $ $ 2,085.25 $ 3,322.41 $ (14,150.70) $ 28,675.16 22212 PASEO DEL SUR 5 056-070-17 10,530 0 YES 5,265 YES 8,484 NO 0 4,583.02 34,564.84 $ $ 1,926.24 $ 3,069.06 $ (14,150.70) $ 25,409.43 22212 RICO RD 6 056-070-18 13,301 1 YES 6,651 YES 8,484 YES 8,484 7,872.88 59,376.71 $ $ 3,308.96 $ 5,272.14 $ (14,150.70) $ 53,807.10 22202 RICO RD 7 056-070-19 6,480 1 YES 6,480 YES 8,484 YES 8,484 7,816.05 58,948.08 $ $ 3,285.07 $ 5,234.08 $ (14,150.70) $ 53,316.52 22196 RICO RD 8 056-070-20 7,020 1 YES 7,020 YES 8,484 YES 8,484 7,996.05 60,305.62 $ $ 3,360.72 $ 5,354.62 $ (14,150.70) $ 54,870.26 22192 RICO RD 9 056-070-21 7,260 1 YES 7,260 YES 8,484 YES 8,484 8,076.05 60,908.98 $ $ 3,394.35 $ 5,408.19 $ (14,150.70) $ 55,560.81 22166 RICO RD 10 056-070-22 7,440 1 YES 7,440 YES 8,484 YES 8,484 8,136.05 61,361.49 $ $ 3,419.57 $ 5,448.37 $ (14,150.70) $ 56,078.73 22172 RICO RD 11 056-070-23 8,615 1 YES 8,615 YES 8,484 YES 8,484 8,527.71 64,315.42 $ $ 3,584.18 $ 5,710.65 $ (14,150.70) $ 59,459.55 22162 PASEO DEL SUR 12 056-070-37 6,804 1 YES 6,804 YES 8,484 YES 8,484 7,924.05 59,762.60 $ $ 3,330.46 $ 5,306.40 $ (14,150.70) $ 54,248.77 22152 PASEO DEL SUR 13 056-070-36 8,640 1 YES 8,640 YES 8,484 YES 8,484 8,536.05 64,378.27 $ $ 3,587.68 $ 5,716.23 $ (14,150.70) $ 59,531.48 22165 PASEO DEL SUR 14 056-070-06 7,650 0 YES 7,650 YES 8,484 NO 0 5,378.02 40,560.68 $ $ 2,260.37 $ 3,601.44 $ (14,150.70) $ 32,271.78 22161 PASEO DEL SUR 15 056-070-05 7,200 1 YES 7,200 YES 8,484 YES 8,484 8,056.05 60,758.14 $ $ 3,385.94 $ 5,394.80 $ (14,150.70) $ 55,388.18 22155 PASEO DEL SUR 16 056-070-04 7,208 1 YES 7,208 YES 8,484 YES 8,484 8,058.71 60,778.25 $ $ 3,387.06 $ 5,396.58 $ (14,150.70) $ 55,411.19 22151 PASEO DEL SUR 17 056-070-03 7,700 1 YES 7,700 YES 8,484 YES 8,484 8,222.71 62,015.13 $ $ 3,455.99 $ 5,506.41 $ (14,150.70) $ 56,826.82 22145 PASEO DEL SUR 18 056-070-02 9,000 1 YES 9,000 YES 8,484 YES 8,484 8,656.05 65,283.30 $ $ 3,638.12 $ 5,796.59 $ (14,150.70) $ 60,567.31 22141 PASEO DEL SUR 19 056-070-01 6,900 1 YES 6,900 YES 8,484 YES 8,484 7,956.05 60,003.95 $ $ 3,343.91 $ 5,327.83 $ (14,150.70) $ 54,524.99 31622 WEST ST 20 056-070-26 91,268 1 YES 45,634 YES 8,484 NO 0 18,039.36 136,051.57 $ $ 7,581.91 $ 12,080.21 $ (14,150.70) $ 141,562.98 31622 WEST ST 21 056-070-34 2,200 0 NO 0 NO 0 NO 0 0.00 $ - $ - $ - $ - $ - 31602 WEST ST 22 056-070-27 10,914 1 YES 10,914 YES 8,484 YES 8,484 9,294.05 70,095.05 $ $ 3,906.27 $ 6,223.84 $ (14,150.70) $ 66,074.45 31582 WEST ST 23 056-070-40 7,681 1 YES 7,681 YES 8,484 YES 8,484 8,216.38 61,967.36 $ $ 3,453.33 $ 5,502.17 $ (14,150.70) $ 56,772.15 31552 WEST ST 24 056-070-30 18,375 1 YES 18,375 YES 8,484 YES 8,484 11,781.05 88,851.83 $ $ 4,951.55 $ 7,889.28 $ (14,150.70) $ 87,541.95 31522 TOTO LOMA LN 25 056-062-36 8,306 1 YES 8,306 YES 8,484 YES 8,484 8,424.71 63,538.60 $ $ 3,540.89 $ 5,641.68 $ (14,150.70) $ 58,570.46 31552 TOTO LOMA LN 26 056-062-34 11,280 1 YES 5,640 YES 8,484 YES 8,484 7,536.05 56,836.33 $ $ 3,167.39 $ 5,046.58 $ (14,150.70) $ 50,899.59 31551 TOTO LOMA LN 27 056-062-35 9,288 1 YES 4,644 YES 8,484 YES 8,484 7,204.05 54,332.41 $ $ 3,027.85 $ 4,824.25 $ (14,150.70) $ 48,033.81 31521 TOTO LOMA LN 28 056-062-37 7,519 1 YES 7,519 YES 8,484 YES 8,484 8,162.38 61,560.10 $ $ 3,430.63 $ 5,466.01 $ (14,150.70) $ 56,306.03 31532 VALIDO RD 29 056-062-20 7,280 1 YES 7,280 YES 8,484 YES 8,484 8,082.71 60,959.26 $ $ 3,397.15 $ 5,412.66 $ (14,150.70) $ 55,618.36 31526 VALIDO RD 30 056-062-25 14,071 1 YES 14,071 YES 8,484 YES 8,484 10,346.38 78,031.67 $ $ 4,348.56 $ 6,928.54 $ (14,150.70) $ 75,158.07 31538 WEST ST 31 056-062-24 7,260 1 YES 7,260 YES 8,484 YES 8,484 8,076.05 60,908.98 $ $ 3,394.35 $ 5,408.19 $ (14,150.70) $ 55,560.81 31532 WEST ST 32 056-062-38 8,010 1 YES 8,010 YES 8,484 YES 8,484 8,326.05 62,794.46 $ $ 3,499.42 $ 5,575.61 $ (14,150.70) $ 57,718.78 31526 WEST ST 33 056-062-18 9,000 1 YES 9,000 YES 8,484 YES 8,484 8,656.05 65,283.30 $ $ 3,638.12 $ 5,796.59 $ (14,150.70) $ 60,567.31 31522 WEST ST 34 056-062-26 10,000 1 YES 10,000 YES 8,484 YES 8,484 8,989.38 67,797.27 $ $ 3,778.22 $ 6,019.81 $ (14,150.70) $ 63,444.60 31512 WEST ST 35 056-062-28 10,000 1 YES 10,000 YES 8,484 YES 8,484 8,989.38 67,797.27 $ $ 3,778.22 $ 6,019.81 $ (14,150.70) $ 63,444.60 31502 WEST ST 36 056-062-27 11,615 1 YES 11,615 YES 8,484 YES 8,484 9,527.71 71,857.35 $ $ 4,004.48 $ 6,380.31 $ (14,150.70) $ 68,091.44 31496 WEST ST 37 056-062-03 12,000 1 YES 12,000 YES 8,484 YES 8,484 9,656.05 72,825.23 $ $ 4,058.42 $ 6,466.25 $ (14,150.70) $ 69,199.19 31492 WEST ST 38 056-062-41 6,000 1 YES 6,000 YES 8,484 YES 8,484 7,656.05 57,741.37 $ $ 3,217.82 $ 5,126.94 $ (14,150.70) $ 51,935.42 31494 WEST ST 39 056-062-40 6,000 1 YES 3,000 YES 8,484 YES 8,484 6,656.05 50,199.44 $ $ 2,797.52 $ 4,457.28 $ (14,150.70) $ 43,303.53 31486 WEST ST 40 056-062-05 9,246 1 YES 9,246 YES 8,484 YES 8,484 8,738.05 65,901.73 $ $ 3,672.58 $ 5,851.51 $ (14,150.70) $ 61,275.12 31455 WEST ST 41 056-062-06 7,524 1 YES 7,524 YES 8,484 YES 8,484 8,164.05 61,572.67 $ $ 3,431.33 $ 5,467.12 $ (14,150.70) $ 56,320.42 31461 WEST ST 42 056-062-07 7,205 1 YES 7,205 YES 8,484 YES 8,484 8,057.71 $ 60,770.71 $ 3,386.64 $ 5,395.92 $ (14,150.70) $ 55,402.56 31471 WEST ST 43 056-062-08 6,300 1 YES 6,300 YES 8,484 YES 8,484 7,756.05 58,495.56 $ $ 3,259.85 $ 5,193.90 $ (14,150.70) $ 52,798.61 31502 MONTEREY ST 45 056-063-06 6,206 1 YES 6,206 YES 8,484 YES 8,484 7,724.71 58,259.25 $ $ 3,246.68 $ 5,172.92 $ (14,150.70) $ 52,528.14 31512 MONTEREY ST 46 056-063-07 6,240 1 YES 6,240 YES 8,484 YES 8,484 7,736.05 58,344.72 $ $ 3,251.45 $ 5,180.51 $ (14,150.70) $ 52,625.97 31522 MONTEREY ST 47 056-063-08 6,180 1 YES 6,180 YES 8,484 YES 8,484 7,716.05 58,193.88 $ $ 3,243.04 $ 5,167.12 $ (14,150.70) $ 52,453.33 31526 MONTEREY ST 48 056-063-09 8,946 1 YES 8,946 YES 8,484 YES 8,484 8,638.05 65,147.54 $ $ 3,630.55 $ 5,784.54 $ (14,150.70) $ 60,411.93 31542 MONTEREY ST 49 056-063-10 5,750 1 YES 5,750 YES 8,484 YES 8,484 7,572.71 57,112.87 $ $ 3,182.80 $ 5,071.13 $ (14,150.70) $ 51,216.10 31481 WEST ST 50 056-063-05 5,800 1 YES 5,800 YES 8,484 YES 8,484 7,589.38 57,238.57 $ $ 3,189.80 $ 5,082.29 $ (14,150.70) $ 51,359.96 31491 WEST ST 51 056-063-04 6,050 1 YES 6,050 YES 8,484 YES 8,484 7,672.71 57,867.07 $ $ 3,224.83 $ 5,138.10 $ (14,150.70) $ 52,079.29 31567 CATALINA AVE 52 056-063-13 7,200 1 YES 7,200 YES 8,484 YES 8,484 8,056.05 60,758.14 $ $ 3,385.94 $ 5,394.80 $ (14,150.70) $ 55,388.18 31565 CATALINA AVE 53 056-063-12 7,200 1 YES 7,200 YES 8,484 YES 8,484 8,056.05 60,758.14 $ $ 3,385.94 $ 5,394.80 $ (14,150.70) $ 55,388.18 31501 WEST ST 54 056-063-03 5,880 1 YES 5,880 YES 8,484 YES 8,484 7,616.05 57,439.69 $ $ 3,201.01 $ 5,100.15 $ (14,150.70) $ 51,590.15 31511 WEST ST 55 056-063-02 10,725 1 YES 10,725 YES 8,484 YES 8,484 9,231.05 69,619.91 $ $ 3,879.79 $ 6,181.65 $ (14,150.70) $ 65,530.64
ASSESSMENT CALCULATIONS
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West Street Underground Utility Assessment District (AD 2021-1) Preliminary Engineer's Report
July 15, 2025 | 28
Property
Address
Asmt
No.
Assessor's
Parcel
Number
Parcel
Area (sf)
Assigned
Connections
Aesthetics
Benefit
(YES/NO)
Aesthetics
Benefit
Area
Safety
Benefit
(YES/NO)
Safety
Benefit
Area
Reliability
Benefit
(YES/NO)
Reliability
Benefit
Area
Average
Assessed
Benefit
Area
Total
Construction
Incidental
Expenses
Financial
Cost
Contribution
from Other
Sources
Final Total
Assessment
31553 WEST ST 56 056-063-15 9,398 1 YES 9,398 YES 8,484 YES 8,484 8,788.71 66,283.86 $ $ 3,693.88 $ 5,885.44 $ (14,150.70) $ 61,712.47 31551 CATALINA AVE 57 056-063-14 7,865 1 YES 7,865 YES 8,484 YES 8,484 8,277.71 62,429.93 $ $ 3,479.11 $ 5,543.24 $ (14,150.70) $ 57,301.58 31512 EGAN RD 58 056-087-12 6,525 1 YES 6,525 YES 8,484 YES 8,484 7,831.05 59,061.20 $ $ 3,291.37 $ 5,244.13 $ (14,150.70) $ 53,446.00 31536 WEST ST 59 056-086-07 6,760 1 YES 6,760 YES 8,484 YES 8,484 7,909.38 59,651.99 $ $ 3,324.30 $ 5,296.58 $ (14,150.70) $ 54,122.17 31542 CATALINA AVE 60 056-086-06 20,899 1 YES 20,899 YES 8,484 YES 8,484 12,622.38 95,197.11 $ $ 5,305.16 $ 8,452.68 $ (14,150.70) $ 94,804.25 31552 CATALINA AVE 61 056-086-40 7,200 1 YES 7,200 YES 8,484 YES 8,484 8,056.05 60,758.14 $ $ 3,385.94 $ 5,394.80 $ (14,150.70) $ 55,388.18 62 056-086-41 7,195 1 YES 7,195 YES 8,484 YES 8,484 8,054.38 60,745.57 $ $ 3,385.24 $ 5,393.68 $ (14,150.70) $ 55,373.79 31562 CATALINA AVE 63 056-086-37 7,200 1 YES 7,200 YES 8,484 YES 8,484 8,056.05 60,758.14 $ $ 3,385.94 $ 5,394.80 $ (14,150.70) $ 55,388.18 64 056-086-39 6,588 1 YES 6,588 YES 8,484 YES 8,484 7,852.05 59,219.58 $ $ 3,300.20 $ 5,258.19 $ (14,150.70) $ 53,627.27 31568 CATALINA AVE 65 056-086-35 6,240 1 YES 6,240 YES 8,484 YES 8,484 7,736.05 58,344.72 $ $ 3,251.45 $ 5,180.51 $ (14,150.70) $ 52,625.97 31572 CATALINA AVE 66 056-086-36 7,278 1 YES 7,278 YES 8,484 YES 8,484 8,082.05 60,954.23 $ $ 3,396.87 $ 5,412.21 $ (14,150.70) $ 55,612.60 31572 CATALINA AVE 67 056-086-01 5,904 1 YES 5,904 YES 8,484 YES 8,484 7,624.05 57,500.02 $ $ 3,204.37 $ 5,105.51 $ (14,150.70) $ 51,659.20 31572 CATALINA AVE 68 056-086-02 6,352 1 YES 6,352 YES 8,484 YES 8,484 7,773.38 58,626.29 $ $ 3,267.14 $ 5,205.51 $ (14,150.70) $ 52,948.23 31562 MONTEREY ST 69 056-086-24 6,360 1 YES 6,360 YES 8,484 YES 8,484 7,776.05 58,646.40 $ $ 3,268.26 $ 5,207.29 $ (14,150.70) $ 52,971.25 31582 MONTEREY ST 70 056-086-23 6,420 1 YES 6,420 YES 8,484 YES 8,484 7,796.05 58,797.24 $ $ 3,276.66 $ 5,220.69 $ (14,150.70) $ 53,143.88 31575 EAGLE ROCK WAY 71 056-086-22 6,588 1 YES 3,294 YES 8,484 YES 8,484 6,754.05 50,938.55 $ $ 2,838.71 $ 4,522.90 $ (14,150.70) $ 44,149.46 31573 EAGLE ROCK WAY 72 056-086-21 10,860 1 YES 10,860 YES 8,484 YES 8,484 9,276.05 69,959.29 $ $ 3,898.71 $ 6,211.78 $ (14,150.70) $ 65,919.08 31565 EAGLE ROCK WAY 73 056-086-20 6,334 1 YES 6,334 YES 8,484 YES 8,484 7,767.38 58,581.03 $ $ 3,264.62 $ 5,201.49 $ (14,150.70) $ 52,896.44 31563 EAGLE ROCK WAY 74 056-086-19 6,335 1 YES 6,335 YES 8,484 YES 8,484 7,767.71 58,583.55 $ $ 3,264.76 $ 5,201.71 $ (14,150.70) $ 52,899.31 31561 EAGLE ROCK WAY 75 056-086-31 6,335 1 YES 6,335 YES 8,484 YES 8,484 7,767.71 58,583.55 $ $ 3,264.76 $ 5,201.71 $ (14,150.70) $ 52,899.31 31559 EAGLE ROCK WAY 76 056-086-32 6,334 1 YES 6,334 YES 8,484 YES 8,484 7,767.38 58,581.03 $ $ 3,264.62 $ 5,201.49 $ (14,150.70) $ 52,896.44 31557 EAGLE ROCK WAY 77 056-086-29 6,335 1 YES 6,335 YES 8,484 YES 8,484 7,767.71 58,583.55 $ $ 3,264.76 $ 5,201.71 $ (14,150.70) $ 52,899.31 31555 EAGLE ROCK WAY 78 056-086-27 6,335 1 YES 3,168 YES 8,484 YES 8,484 6,711.88 50,620.53 $ $ 2,820.99 $ 4,494.67 $ (14,150.70) $ 43,785.48 31551 EAGLE ROCK WAY 79 056-086-17 19,005 0 YES 9,503 YES 8,484 NO 0 5,995.52 45,217.82 $ $ 2,519.91 $ 4,014.95 $ (14,150.70) $ 37,601.97 31547 EAGLE ROCK WAY 80 056-086-43 12,670 0 YES 6,335 YES 8,484 NO 0 4,939.69 37,254.80 $ $ 2,076.14 $ 3,307.90 $ (14,150.70) $ 28,488.14 31541 EAGLE ROCK WAY 81 056-086-44 9,184 0 YES 4,592 YES 8,484 NO 0 4,358.69 32,872.93 $ $ 1,831.95 $ 2,918.83 $ (14,150.70) $ 23,473.01 31539 EAGLE ROCK WAY 82 056-086-14 6,335 0 YES 3,168 YES 8,484 NO 0 3,883.86 29,291.77 $ $ 1,632.38 $ 2,600.86 $ (14,150.70) $ 19,374.31 31555 WILDWOOD RD 83 056-088-15 2,362 1 YES 1,181 YES 8,484 YES 8,484 6,049.71 45,626.51 $ $ 2,542.68 $ 4,051.24 $ (14,150.70) $ 38,069.73 31558 EAGLE ROCK WAY 84 056-088-12 3,325 1 YES 3,325 YES 8,484 YES 8,484 6,764.38 51,016.48 $ $ 2,843.06 $ 4,529.82 $ (14,150.70) $ 44,238.65 31560 EAGLE ROCK WAY 85 056-088-11 4,375 1 YES 4,375 YES 8,484 YES 8,484 7,114.38 53,656.15 $ $ 2,990.16 $ 4,764.20 $ (14,150.70) $ 47,259.82 31562 EAGLE ROCK WAY 86 056-088-09 5,740 1 YES 5,740 YES 8,484 YES 8,484 7,569.38 57,087.73 $ $ 3,181.40 $ 5,068.90 $ (14,150.70) $ 51,187.32 31602 FAIRVIEW RD 87 056-088-10 3,010 1 YES 3,010 YES 8,484 YES 8,484 6,659.38 50,224.58 $ $ 2,798.92 $ 4,459.51 $ (14,150.70) $ 43,332.31 31566 EAGLE ROCK WAY 88 056-088-08 4,375 1 YES 4,375 YES 8,484 YES 8,484 7,114.38 53,656.15 $ $ 2,990.16 $ 4,764.20 $ (14,150.70) $ 47,259.82 31568 EAGLE ROCK WAY 89 056-088-07 3,600 1 YES 3,600 YES 8,484 YES 8,484 6,856.05 51,707.82 $ $ 2,881.58 $ 4,591.21 $ (14,150.70) $ 45,029.91 31570 EAGLE ROCK WAY 90 056-088-06 2,700 1 YES 2,700 YES 8,484 YES 8,484 6,556.05 49,445.24 $ $ 2,755.49 $ 4,390.31 $ (14,150.70) $ 42,440.35 31602 VIRGINIA WAY 91 056-088-02 2,877 1 YES 1,439 YES 8,484 YES 8,484 6,135.55 46,273.86 $ $ 2,578.76 $ 4,108.72 $ (14,150.70) $ 38,810.64 31610 COAST HWY 92 056-088-01 7,531 1 YES 3,766 YES 8,484 YES 8,484 6,911.21 52,123.89 $ $ 2,904.77 $ 4,628.15 $ (14,150.70) $ 45,506.10 31582 COAST HWY 93 056-085-03 11,709 1 YES 5,855 YES 8,484 YES 8,484 7,607.55 57,375.58 $ $ 3,197.44 $ 5,094.46 $ (14,150.70) $ 51,516.77 31562 COAST HWY 94 056-085-02 5,999 1 YES 3,000 YES 8,484 YES 8,484 6,655.88 50,198.18 $ $ 2,797.45 $ 4,457.17 $ (14,150.70) $ 43,302.10 31542 COAST HWY 95 056-085-01 10,475 1 YES 5,238 YES 8,484 YES 8,484 7,401.88 55,824.46 $ $ 3,111.00 $ 4,956.73 $ (14,150.70) $ 49,741.48 31532 COAST HWY 96 658-091-06 6,104 1 YES 3,052 YES 8,484 YES 8,484 6,673.38 50,330.16 $ $ 2,804.81 $ 4,468.88 $ (14,150.70) $ 43,453.15 31526 COAST HWY 97 658-091-05 5,836 1 YES 2,918 YES 8,484 YES 8,484 6,628.71 49,993.29 $ $ 2,786.04 $ 4,438.97 $ (14,150.70) $ 43,067.60 31522 COAST HWY 98 658-091-04 6,000 1 YES 3,000 YES 8,484 YES 8,484 6,656.05 50,199.44 $ $ 2,797.52 $ 4,457.28 $ (14,150.70) $ 43,303.53 31516 MONTEREY ST 99 658-091-03 6,000 1 YES 3,000 YES 8,484 YES 8,484 6,656.05 50,199.44 $ $ 2,797.52 $ 4,457.28 $ (14,150.70) $ 43,303.53 31512 COAST HWY 100 658-091-02 6,000 1 YES 3,000 YES 8,484 YES 8,484 6,656.05 50,199.44 $ $ 2,797.52 $ 4,457.28 $ (14,150.70) $ 43,303.53 31502 COAST HWY 101 658-091-01 5,607 1 YES 2,804 YES 8,484 YES 8,484 6,590.55 49,705.44 $ $ 2,769.99 $ 4,413.41 $ (14,150.70) $ 42,738.15 22171 PASEO DEL SUR 102 056-070-07 9,800 0 YES 9,800 YES 8,484 NO 0 6,094.69 45,965.73 $ $ 2,561.59 $ 4,081.36 $ (14,150.70) $ 38,457.97 103 056-062-33 - 0 NO 0 NO 0 NO 0 0.00 $ - $ - $ - $ - $ - TOTALS 770,184.68 5,808,679.11 $ $ 323,707.20 515,760.63 -1,415,070.36 5,233,076.58
ASSESSMENT CALCULATIONS
10 11 of 26
RESOLUTION NO. 25.XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, DECLARING THE RESULTS
OF THE ASSESSMENT BALLOTING PROCEEDING,
CONFIRMING ASSESSMENTS IN UNDERGROUND UTILITY
ASSESSMENT DISTRICT NO. 2021-1, ORDERING THE
PROPOSED IMPROVEMENTS TO BE MADE, TOGETHER
WITH APPURTENANCES, APPROVING THE ENGINEER’S
REPORT, AND DESIGNATING THE FINANCE DIRECTOR OR
THE CITY TREASURER TO COLLECT AND RECEIVE MONEY
WHEREAS, by Resolution No. 25.032 heretofore adopted on May 20, 2025, the City Council of the City of Laguna Beach (City) declared its intention to order the work to be done and the improvements to be made as described in that resolution in an assessment district to be designated Underground Utility Assessment District No. 2021-1, as shown and designated on that certain map entitled "Proposed Boundary of West St Underground Utility Assessment District No. 2021-1, City of Laguna Beach, County of Orange, State of California" on file in the office of the City Clerk; and
WHEREAS, the City Council in and by Resolution No. 25.032 referred the work, acquisitions, and improvements to NV5 as Engineer of Work, and directed it to make and file with the City Clerk a preliminary report in writing (Engineer’s Report); and WHEREAS, by Resolution No. 25.033, the City Council preliminarily approved the Engineer's Report and fixed Tuesday, September 23, 2025, at 5:00 p.m. in the Chambers of the City Council, City Hall, 505 Forest Avenue, Laguna Beach, California, as the time and place for a public hearing for hearing comments regarding the proposed acquisitions and improvements, the extent of the assessment district, and the proposed assessment, and provided for mailed notice of the public hearing; and
WHEREAS, following the May 20, 2025, approval of the preliminary Engineer’s Report, Attachment 1
11 12 of 26
it was determined that several parcels required review and the assessments were reduced, and San Diego Gas & Electric’s project costs and bond financing cost estimates were reduced and are reflected in the final Engineer’s Report on file with the City Clerk; and WHEREAS, the proposed undergrounding project is categorically exempted from further review under the California Environmental Quality Act pursuant to the provisions of the State CEQA Guidelines Sections 15301(b), 15302(c) and (d), and 15303(d); and WHEREAS, Design Review 24-0281 was approved by the Planning Commission on March 20, 2024, for the placement of aboveground utility structures associated with the proposed utility undergrounding improvements, and the project was found to conform with the general plan, including the certified local coastal program and any applicable specific plans; and WHEREAS, the City Clerk filed with the City Council a declaration setting forth the time and manner of compliance with the requirements for mailing notices of the passage of Resolution No. 25.033 and of the time and place for the aforementioned public hearing for hearing comments regarding the proposed acquisitions and improvements, together with the assessment ballot required by Article XIIID of the California Constitution and California Government Code Section 53753, and the City Council hereby finds that notice of the passage of that resolution and of the time and place for hearing comments regarding the proposed acquisitions and improvements have been mailed in the time, form, and manner required by law; and WHEREAS, the public hearing was duly held by the City Council at the time and place for the hearing of all comments on the proposed work and improvements; and WHEREAS, at the time and place fixed for the public hearing, the Engineer of Work submitted the final Engineer’s Report, which was prepared and contained all the matters and items called for pursuant to the provisions of the Municipal Improvement Act of 1913, being Division 12 13 of 26
12 of the Streets and Highways Code of the State of California, including plans and specifications of the proposed improvement, a general description of work, appliances or property to be acquired, an estimate of the costs of the improvements and of land, rights of way, easements, and incidental expenses in connection with the improvements, a diagram showing the assessment district and the boundaries and dimensions of the subdivisions of land within the assessment district as they were expected at the time the resolution was adopted, a proposed assessment of the total amount of the costs and expenses of the proposed improvements upon the several subdivisions of land in the assessment district in proportion to the estimated benefits to be received by such subdivisions from the improvements and a proposed maximum annual assessment for administration and collection of assessments; and
WHEREAS, the final Engineer’s Report has been made a part of the record of these proceedings and is on file in the office of the City Clerk; and WHEREAS, at the public hearing, comments were received, the City Council closed the public hearing, and the assessment ballots submitted by the record owners of the properties within the proposed assessment district received prior to the close of the public hearing have been tabulated by the City Clerk, acting as the tabulation official appointed by the City Council, all in the manner provided by law; and
WHEREAS, the City Clerk has prepared and submitted to this City Council a Certificate of Tabulation Official and Statement of Assessment Ballots Submitted, a copy of which is attached as Exhibit A hereto and incorporated herein by this reference, which reflects the results of the tabulation of the assessment ballots; and
WHEREAS, the majority of the assessment ballots cast, weighted by the amount of the assessments represented thereby, were in favor of the formation of the assessment district and levy 13 14 of 26
of the assessment as set forth in the final Engineer’s Report; and WHEREAS, the City Council thereupon acquired jurisdiction to order the proposed improvements to be made.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:
SECTION 1. The recitals above are true and correct and are incorporated herein by this reference.
SECTION 2. The City Council hereby finds and declares that the public interest and necessity require the construction of the Improvements, as hereinafter described, and the City Council hereby declares its intention to order the Improvements and to form an assessment district covering the real property benefited by said Improvements.
SECTION 3. The City Council hereby confirms the proposed assessment in the amount of $5,233,077 and declares that the final Engineer’s Report, including the plans, specifications, description of acquisitions, estimate of the cost of the improvements, assessments, boundary map, and diagram are hereby finally adopted, accepted, confirmed, and approved.
SECTION 4. The City Council hereby confirms that a cost in the amount of $707,536 for the general benefits of the assessment district received by the public at large, which cost cannot be assessed to the parcels within the district, and $707,536 as a separate City Contribution received by the public at large that the City has chosen not to assess to the parcels within the district, will be paid for by the City of Laguna Beach.
SECTION 5. Based upon the Engineer’s Report and the testimony and other evidence received at the public hearing, it is hereby determined that:
A. The Engineer's Report identifies all properties within the boundaries of the 14 15 of 26
assessment district that receive a special benefit from the Improvements; B. The proportionate special benefit derived by each parcel proposed to be assessed has been determined in relationship to the entirely of the cost of construction of the Improvements;
C. No assessment is proposed to be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit to be conferred on such parcel from the Improvements;
D. Only special benefits have been assessed; and
E. All parcels within the boundaries of the assessment district receiving special benefit are being assessed.
SECTION 6. The City Council hereby orders the work, acquisitions, and improvements described in Resolution No. 25.033 and in the Engineer’s Report, as modified, to be done and made.
SECTION 7. The City Clerk shall transmit to the Superintendent of Streets/City Engineer of the City of Laguna Beach the diagram and assessment, as amended and modified, and the Superintendent of Streets/City Engineer is hereby directed to record the diagram and assessment in his or her office in a substantial book kept for that purpose; and, in addition, the City Clerk is to record forthwith a Notice of Assessment in the Office of the Recorder, County of Orange, and upon the date of such recordation in the Recorder's office, the assessment shall become a lien upon the lands upon which it is levied, and upon the date of recordation in the Superintendent of Street's/City Engineer’s office, the assessment shall become due and payable, all pursuant to the Municipal Improvement Act of 1913.
SECTION 8. The City Treasurer or the Finance Director, as determined by the City 15 16 of 26
Manager of the City of Laguna Beach, is hereby designated to collect, and receive the money paid pursuant to the assessment during the cash collection period, in the manner prescribed by law.
SECTION 9. The City Clerk and/or the City Treasurer, as appropriate, are hereby directed to give notice of the improvement by mailing and publishing notice in the manner set forth in California Streets and Highways Code Section 10404 to the owners of the real property within the assessment district assessed thereby.
SECTION 10. The formation of an undergrounding district is exempt from CEQA pursuant to state CEQA Guidelines, section 15302 (Replacement or Reconstruction) as it consists of the possible formation of an undergrounding utility assessment district to fund the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced, including but not limited to: (1) conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding; and (2) replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity. Here, the formation of an undergrounding district involves the possible formation of an undergrounding utility assessment district to fund the reconstruction of an electric utility system by removing above ground utilities and reconstructing them below ground. The new undergrounding system will be located on the same site and will have substantially the same purpose and capacity (i.e., providing electricity to structures). The undergrounding district, if approved, involves the removal of 38 utility poles and undergrounding of approximately 4,700 linear feet of overhead wires and therefore constitutes conversion of overhead electric utility distribution system facilities to underground. Further the formation of an 16 17 of 26
undergrounding district involves the following aboveground equipment to be installed to accommodate the undergrounding: riser poles, antenna pole, guy anchors, utility cabinets, pedestals, bollards, and retaining walls.
The formation of an undergrounding district is also categorically exempt from CEQA under the following State CEQA Guidelines, sections 15301(b) and 15303(d). Section 15301(b) exempts projects that pertain to existing facilities of both investor and publicly owned utilities used to provide electric power, natural gas, sewerage, or other public utility services. Here, the formation of an undergrounding district is exempt under Section 15301(b) because it consists of existing facilities providing electric power with no expansion of use. Lastly, Section 15303(d) exempts projects that pertain to construction and location of limited new, small facilities or structures, including water main, sewage, electrical, gas, and other utility extensions, including street improvements, of reasonable length to serve such construction. Here, the formation of an undergrounding district is exempt under Section 15303(d) because it consists of new construction of small utility facilities or structures.
Further, none of the exceptions outlined in State CEQA Guidelines section 15300.2 apply. The location of the undergrounding district site does not contain any environmentally sensitive areas as a majority of the parcels are developed. There will be no cumulative impact resulting from successive projects of the same type in the same place, over time. Any future utility undergrounding projects would occur in areas outside of the Project area. There are no unusual circumstances resulting in a significant impact on the environment because trenching will occur in existing, paved roadways. There will be no damage to scenic resources, including trees, historic buildings, rock outcroppings or similar resources, within a highway officially designated as a state scenic highway; all trenching will occur in existing, paved roadways and the removal of the above 17 18 of 26
ground utility systems will improve resources both in terms of safety and aesthetics. Further the undergrounding district is not near an officially designated state scenic highway and it is away from Coast Highway. It is not located on a hazardous waste site, or any other site included on a list compiled pursuant to Government Code Section 65962.5. The formation of an undergrounding district will not result in significant adverse impacts to historical resources as defined by CEQA as it is occurring in existing, paved roadways and not within a close proximity to any known historical resources. Consequently, additional environmental analysis is not necessary to meet the requirements of the CEQA. If the City Council agrees, staff will cause to be filed a Notice of Exemption (NOE) with the County Recorder’s Office and State Clearinghouse should the Project receive final approval.
In the alternative, the formation of an undergrounding district consists of the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; CEQA Guidelines, section 15378(b)(4).)
Finally at the March 20, 2024 Planning Commission meeting, the City previously conducted environmental review for the proposed undergrounding project and determined that the project was exempt under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301(b), which authorizes an exemption for “existing facilities providing electric power with no expansion of use”; Sections 15302(c) and (d) for the “replacement or reconstruction of existing utility systems involving negligible or no expansion of capacity, and conversion of overhead electric utility distribution system facilities to underground”; and Section 15303(d) 18 19 of 26
involving “new construction of small utility facilities or structures.” More detailed environmental analysis can be found in that March 20, 2024, Planning Commission approval. There have been no changes to the Project, no changed circumstances, and no new information that could not previously have been known, that would trigger the need for subsequent CEQA review.
SECTION 11. This Resolution shall be effective immediately upon its adoption.
ADOPTED this 23rd day of September, 2025.
Alex Rounaghi, Mayor
ATTEST:
Ann Marie McKay, City Clerk
I, Ann Marie McKay, City Clerk of the City of Laguna Beach, certify that the foregoing Resolution No. 25.XXX was duly adopted at a regular meeting of the City Council of said City held on September 23, 2025, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
City Clerk, City of Laguna Beach, California
19 20 of 26
Exhibit A
CERTIFICATE OF TABULATION OFFICIAL
AND STATEMENT OF ASSESSMENT BALLOTS SUBMITTED
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF LAGUNA BEACH )
The undersigned, the City Clerk and duly authorized tabulation official appointed by the City Council of the City of Laguna Beach, DOES HEREBY CERTIFY that pursuant to the provisions of Article XIIID of the Constitution of the State of California and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following), I did tabulate the assessment ballots timely submitted in the assessment ballot proceedings pertaining to the Underground Utility Assessment District No. 2021-1.
I FURTHER CERTIFY that this Statement of Assessment Ballots Received shows the assessment ballots submitted in favor of the assessment and the assessment ballots submitted in opposition to the assessment, each total weighted according to the financial obligation of the affected properties for which the assessment ballots were submitted.
Total assessment ballots distributed:
Total assessment ballots received:
Assessment ballots received in favor of the proposed
assessment:
Weighted value of assessment ballots received in favor of the proposed assessment:
Assessment ballots received in opposition to the proposed assessment:
Weighted value of assessment ballots received in
opposition to the proposed assessment:
This certification is executed this 23rd day of September, 2025 in the City of Laguna Beach, California.
City Clerk
City of Laguna Beach
By: _ ______________________________
Title: _ ______________________________
20 21 of 26
RESOLUTION NO. 25.XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, AWARDING THE CONTRACT
FOR CONSTRUCTION OF IMPROVEMENTS IN UNDERGROUND
UTILITY ASSESSMENT DISTRICT NO. 2021-1 SUBJECT TO
RECEIPT OF BOND PROCEEDS AND FINDING THE SAME
EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT
WHEREAS, the City Council has heretofore ordered the acquisition and construction of certain improvements (the “Improvements”) and formed Underground Utility Assessment District No. 2021-1, under the Municipal Improvement Act of 1913; and WHEREAS, a notice inviting bids for the construction of the Improvements has heretofore been published as required by law and bids for such construction have been received and opened; and
WHEREAS, Hot Line Construction, Inc. of Brentwood, California has been determined to be the lowest responsive and responsible bidder for such construction.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:
SECTION 1. The foregoing recitals are true and correct.
SECTION 2. The contract for the construction of the Improvements is awarded to Hot Line Construction, Inc. of Brentwood, California, subject to the receipt by the City of the proceeds from the sale of bonds on behalf of Underground Utility Assessment District No. 2021-1, based on the original bid in the amount of $3,393,491. The City Council further authorizes the City Manager to approve project-related expenses and construction change orders for unforeseen circumstances in an amount not-to-exceed $339,350.
SECTION 3. Subject to the receipt by the City of the proceeds from the sale of bonds Attachment 3
21 22 of 26
-2- Reso. #
on behalf of Underground Utility Assessment District No. 2021-1, the City Manager is authorized and directed to execute a contract with Hot Line Construction, Inc. for and in the name of the City of Laguna Beach, in a form approved by the City Attorney, and the City Clerk is authorized and directed to attest thereto. Also, the City Manager is authorized to approve project-related expenses and construction change orders for unforeseen circumstances.
SECTION 4. The formation of an undergrounding district is exempt from CEQA pursuant to state CEQA Guidelines, section 15302 (Replacement or Reconstruction) as it consists of the possible formation of an undergrounding utility assessment district to fund the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced, including but not limited to: (1) conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding; and (2) replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity. Here, the formation of an undergrounding district involves the possible formation of an undergrounding utility assessment district to fund the reconstruction of an electric utility system by removing above ground utilities and reconstructing them below ground. The new undergrounding system will be located on the same site and will have substantially the same purpose and capacity (i.e., providing electricity to structures). The undergrounding district, if approved, involves the removal of 38 utility poles and undergrounding of approximately 4,700 linear feet of overhead wires and therefore constitutes conversion of overhead electric utility distribution system facilities to underground. Further the formation of an undergrounding district involves the following aboveground equipment to be installed to 22 23 of 26
-3- Reso. #
accommodate the undergrounding: riser poles, antenna pole, guy anchors, utility cabinets, pedestals, bollards, and retaining walls.
The formation of an undergrounding district is also categorically exempt from CEQA under the following State CEQA Guidelines, sections 15301(b) and 15303(d). Section 15301(b) exempts projects that pertain to existing facilities of both investor and publicly owned utilities used to provide electric power, natural gas, sewerage, or other public utility services. Here, the formation of an undergrounding district is exempt under Section 15301(b) because it consists of existing facilities providing electric power with no expansion of use. Lastly, Section 15303(d) exempts projects that pertain to construction and location of limited new, small facilities or structures, including water main, sewage, electrical, gas, and other utility extensions, including street improvements, of reasonable length to serve such construction. Here, the formation of an undergrounding district is exempt under Section 15303(d) because it consists of new construction of small utility facilities or structures.
Further, none of the exceptions outlined in State CEQA Guidelines section 15300.2 apply. The location of the undergrounding district site does not contain any environmentally sensitive areas as a majority of the parcels are developed. There will be no cumulative impact resulting from successive projects of the same type in the same place, over time. Any future utility undergrounding projects would occur in areas outside of the Project area. There are no unusual circumstances resulting in a significant impact on the environment because trenching will occur in existing, paved roadways. There will be no damage to scenic resources, including trees, historic buildings, rock outcroppings or similar resources, within a highway officially designated as a state scenic highway; all trenching will occur in existing, paved roadways and the removal of the above ground utility systems will improve resources both in terms of safety and aesthetics. Further the 23 24 of 26
-4- Reso. #
undergrounding district is not near an officially designated state scenic highway and it is away from Coast Highway. It is not located on a hazardous waste site, or any other site included on a list compiled pursuant to Government Code Section 65962.5. The formation of an undergrounding district will not result in significant adverse impacts to historical resources as defined by CEQA as it is occurring in existing, paved roadways and not within a close proximity to any known historical resources. Consequently, additional environmental analysis is not necessary to meet the requirements of the CEQA. If the City Council agrees, staff will cause to be filed a Notice of Exemption (NOE) with the County Recorder’s Office and State Clearinghouse should the Project receive final approval.
In the alternative, the formation of an undergrounding district consists of the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; CEQA Guidelines, section 15378(b)(4).)
Finally at the March 20, 2024 Planning Commission meeting, the City previously conducted environmental review for the proposed undergrounding project and determined that the project was exempt under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301(b), which authorizes an exemption for “existing facilities providing electric power with no expansion of use”; Sections 15302(c) and (d) for the “replacement or reconstruction of existing utility systems involving negligible or no expansion of capacity, and conversion of overhead electric utility distribution system facilities to underground”; and Section 15303(d) involving “new construction of small utility facilities or structures.” More detailed environmental 24 25 of 26
-5- Reso. #
analysis can be found in that March 20, 2024, Planning Commission approval. There have been no changes to the Project, no changed circumstances, and no new information that could not previously have been known, that would trigger the need for subsequent CEQA review.
SECTION 5. This Resolution shall be effective immediately upon its adoption.
ADOPTED this 23rd day of September, 2025.
Alex Rounaghi, Mayor
ATTEST:
Ann Marie McKay, City Clerk
I, Ann Marie McKay, City Clerk of the City of Laguna Beach, certify that the foregoing Resolution No. 25.XXX was duly adopted at a regular meeting of the City Council of said City held on September 23, 2025, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
City Clerk, City of Laguna Beach, California
25 26 of 26
STAFF REPORT
Meeting Date:
September 23, 2025
APPEALS
A
SUBJECT: APPEAL OF DESIGN REVIEW BOARD APPROVAL OF DESIGN REVIEW 24- 1151, COASTAL DEVELOPMENT PERMIT 24-1152, AND VARIANCE 24-1153
FOR ADDITIONS AND REMODEL OF AN EXISTING SINGLE-FAMILY
DWELLING, NEW TWO-CAR GARAGE, ELEVATED DECK ADDITIONS,
GRADING, LANDSCAPING, NEW POOL AND SPA, AND NEW ATTACHED ADU AT 31731 SEACOVE DRIVE IN THE R-1 (RESIDENTIAL LOW-DENSITY ZONE),
AND CATEGORICAL EXEMPTION UNDER THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION 15301 (CLASS 1) RECOMMENDATION: It is recommended that the City Council:
1. Open the public hearing, take public testimony, and continue the public hearing to the October 28, 2025 City Council meeting; and
2. Find the action is not a project within the meaning of the California Environmental Quality Act under Public Resources Code Section 21065.
Appropriation: $0 Fund: N/A
Submitted By: Matthew Schneider Approved: David A Kiff
Matthew Schneider, Director of
Community Development
Dave Kiff, City Manager
SUMMARY OF THE MATTER
On July 24, 2025, the Design Review Board conditionally approved Design Review 24-1151, Coastal Development Permit 24-1152, and Variance 24-1153 for additions to and remodel of an existing singlefamily dwelling, new two-car garage, elevated decks, grading, landscaping, pool, and accessory dwelling unit (ADU) at 31731 Seacove Drive. A variance was required for additions within the required 20-foot front yard setback and 10-foot rear yard setback, encroachments within the required additional building setback, and a pool within the front yard setback. On August 4, 2025, appeals were filed by Steven and Nora Everhart and Jim Burnes. On August 6, 2025, an appeal was filed by D. Michael Gray.
City staff recommends that the City Council open the public hearing, take public testimony, and continue the public hearing until the October 28, 2025, City Council meeting. City staff does not intend to provide a staff report at this September 23, 2025, City Council meeting.
FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget. 1 of 2
APPEAL OF THE APPROVAL OF DR 24-1151, CDP 24-1152 AND VAR 24-1153 AT 31731
SEACOVE DRIVE
September 23, 2025
ENVIRONMENTAL ANALYSIS
In accordance with the California Environmental Quality Act (CEQA), a project means an activity which may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and which is any of the following: (a) an activity directly undertaken by a public agency; (b) an activity undertaken by a person which is supported, in whole or in part, through contracts, grants, subsidies, loans, or other forms of assistance from one or more public agencies; and (c) an activity that involves the issuance to a person of a lease, permit, license, certificate, or other entitlement for use by one or more public agencies. (Public Resources Code Section 21065.) Here, the recommended actions, which result in a continuance of a public hearing, do not constitute a project because the public hearing continuance is not an activity which may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. It is an activity which instead results in the City Council considering an appeal of a project at a future date and does not authorize any development under a permit.
ATTACHMENTS
None
Report Prepared By: Coordinated With:
Heather Steven, Senior Planner Anthony Viera, Planning Manager Jane Abzug, Assistant City Attorney
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STAFF REPORT
Meeting Date:
September 23, 2025
APPEALS
A
SUBJECT: APPEAL OF COMMUNITY DEVELOPMENT DIRECTOR’S DESIGNEE’S APPROVAL OF DESIGN REVIEW 25-0891 FOR AN ELEVATED DECK
ADDITION AT 31421 HOLLY DRIVE IN THE R-1, RESIDENTIAL LOWDENSITY ZONE, AND FINDING THE PROJECT CATEGORICALLY EXEMPT
UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION 15301 (CLASS 1)
RECOMMENDATION: It is recommended that the City Council:
1. Open the public hearing, take public testimony, and continue the appeal of the Community Development Director’s designee’s approval of Design Review 25-0891 located at 31421 Holly Drive, and finding the Project categorically exempt under CEQA Guidelines Section 15301 (the “Project”) to October 14, 2025; and
2. Find the action is not a project within the meaning of the California Environmental Quality Act under Public Resources Code Section 21065.
Appropriation: $0 Fund: N/A
Submitted By: Matthew Schneider Approved: David A Kiff
Matthew Schneider, Director of
Community Development
Dave Kiff, City Manager
SUMMARY OF THE MATTER
An appeal of the Community Development Director’s designee’s approval of Design Review 25-0891 located at 31421 Holly Street was filed with the City Clerk on June 18, 2025. To continue the public hearing on the appeal without re-sending public hearing notices, staff requests that the City Council open the public hearing and continue the matter to a date certain. Staff does not intend to provide a report at this time. The project was previously continued from the August 12, 2025 City Council meeting.
The sole purpose of this item is for City Council to take action on the requested continuance. Staff requests the City Council continue this public hearing to the October 14, 2025, City Council meeting.
FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.
ENVIRONMENTAL ANALYSIS
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APPEAL OF THE APPROVAL OF DR 25-0891 AT 31421 HOLLY DRIVE September 23, 2025
In accordance with the California Environmental Quality Act (CEQA), the recommended actions are exempt from CEQA per Section 15061(b)(3), which is the commonsense exemption that the CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The action on the determination of the appeal at the continued public hearing will include compliance with CEQA.
ATTACHMENTS
1. Continuance Request (Pg. 3)
Report Prepared By: Coordinated With:
Daniel Latham, Associate Planner Anthony Viera, Planning Manager 2 of 5
1 Latham, Daniel CD
Subject: FW: 31421 Holly Drive, Continuance request
-----Original Message-----
From: L AusƟn <[email protected]>
Sent: Tuesday, September 9, 2025 8:41 PM
To: McKay, Ann Marie CC <[email protected]>; L AusƟn <[email protected]> Subject: 31421 Holly Drive, ConƟnuance request
[NOTICE: This message originated outside of City of Laguna Beach -- DO NOT CLICK on links or open aƩachments unless you are sure the content is safe.]
Hi Ann Marie,
I wanted to let you know that, unexpectedly, our consultant has a scheduling conflict and won’t be able to aƩend the September 23rd City Council appeal. Since his input is really important to our appeal, I would like to request that the appeal be conƟnued to the next available City Council meeƟng. I will call or stop by tomorrow to further talk with you.
Thank you so much for your help with this. I really appreciate it.
Lori
Attachment 1
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