Laguna Beach City Council
October 28, 2025

This report recommends that the City Council adopt two resolutions to initiate the formation of Underground Utility Assessment District 2021-3 (Fairview/La Brea), approve the Preliminary Engineer’s Report prepared by NV5, consider the request from district proponents for an additional City Contribution to the project, and schedule a public hearing for January 13, 2026. The estimated total assessment is approximately $4.8 million across 90 parcels, with individual assessments generally ranging from $22,000 to $75,000.

The project supports the City’s goals of enhancing public safety and infrastructure reliability by undergrounding overhead utilities. It is recommended that the City Council acknowledge the intent to contribute $474,580, or 10% of the project cost, as a General Benefit to the public at-large. The Fairview/La Brea proponents have made a special request to the City, requesting additional financial support to lessen the financial burden on property owners if the project is voted into formation. This report discusses the City’s funding obligation, analyzes the request of the district proponents, and seeks City Council’s direction regarding the funding request.

DISCUSSION
Project Costs
Petitions requesting the formation of an underground utility assessment district at Fairview Street, La Brea Street, and surrounding streets were submitted to the City Council on November 16, 2021. The City Council approved the Preliminary Boundary map, directed staff to forward the map to the utility companies to begin design work, and authorized staff to solicit proposals for assessment engineering services.

The utility designs were submitted for Design Review and were approved by the Planning Commission on December 4, 2024. Following the Planning Commission approval, construction bids were solicited in accordance with California Public Contract Code requirements. A Preliminary Engineer’s Report has been prepared by NV5 and is ready for City Council consideration. Staff recommends that City Council adopt the resolution of intent to form the district, and the resolution preliminarily adopting the Engineer’s Report to commence the process for a public hearing, and a final ballot by the affected property owners (Attachments 2 and 3), acknowledge the City’s intent to contribute funding for the General Benefit cost, if the district is approved, and consider the request from district proponents for an additional City Contribution toward a public safety benefit.

Preliminary Engineer’s Report
The Preliminary Engineer’s Report (Attachment 4) describes the methodology for determining the proportionate special benefit for each property within the proposed district, the general benefit to be funded by the City, and the resulting allocation of project costs.

Special Benefits
To equitably assess benefits, the Assessment Engineer related each property’s proportional special benefits to the special benefits of all other properties within the district. Apportionments established for districts formed under the “Municipal Improvement Act of 1913” and Article XIIID of the State Constitution, commonly utilize a weighted apportionment method using a defined unit of measurement to calculate a basic unit of assessment. Collectively, the three benefit categories reflect the proportional special benefit each property within the district will receive. The total cost of the district will be apportioned using the 2 of 187

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benefit categories below with assigned weighted percentages to each benefit category, based upon the engineer’s field review of the parcels within the district and public testimony. The weighted apportionment of the benefit categories for this proposed district are as follows:
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Benefit Category Percentage
Safety Benefit 33%
Aesthetics Benefit 33%
Reliability Benefit 33%
Safety Benefit
Undergrounding the overhead facilities eliminates the threat to structures or property, including any occupants within, from being damaged or harmed by downed utility lines and poles. The removal of overhead facilities would also mitigate the risks of blocked driveways and access to properties. The removal of the fixed obstructions (existing utility poles, guy wires, and related facilities), and the mitigation of the potential delay by emergency responders, who will neither cross a downed utility line, nor set up equipment if an overhead power line is in the way, has been determined to be a General Benefit.

All parcels within the district receive some level of a safety benefit from the undergrounding of poles and wires. Parcels with utility poles and overhead wires remaining adjacent to their properties will receive reduced safety benefits as detailed in the assessment report.

Aesthetics Benefit
Removing the overhead utilities will improve the overall neighborhood aesthetics for all properties within the district. The special benefit results from improved aesthetics of the streetscape and airspace directly surrounding each property. Each parcel within the district will receive an aesthetic benefit as determined by total parcel area. Parcels with utility poles and overhead wires remaining adjacent to their properties and parcels directly facing Coast Highway, which will be undergrounded by a separate Rule 20A utility undergrounding project, will receive reduced aesthetic benefits as detailed in the assessment report.

Reliability Benefit
Utility undergrounding provides enhanced reliability to parcels due to having new wires and equipment underground which reduces the threat of service interruptions or outages if poles and wires are downed. All properties that connect to the new underground system receive a reliability benefit. Parcels which were already connected to an existing underground system and parcels that will remain connected to the existing overhead system will not receive reliability benefits.

General Benefit
The General Benefit component is defined as a benefit to the public at-large because of improvements made by the underground utility district. Removing utility poles and overhead wires provides an indirect benefit to parcels located in proximity to the proposed district, and to the general public visiting or traversing the neighborhood. The Assessment District Formation Policy, recently revised and adopted by the City Council in July 2025, establishes this General Benefit to the community as 10% of the total construction and incidental district cost. Since this is a general benefit to the public that cannot be assessed to the parcels within the district; it is proposed that the City contribute $474,580 if the district is approved.

Additional Contribution
The Fairview/La Brea Proponents have requested additional financial support from the City to lessen the 4 of 187

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financial burden on property owners if the project is voted into formation (Attachment 5). They propose that the additional contribution is warranted because the proposed district benefits the City for several reasons, notably the neighborhood is not located far from heavily vegetated open space hillsides to the east which are prone to wildfires, the neighborhood has many narrow alleys with utility poles and overhead wires located extremely close to structures, and constructing this project will allow for one continuous utility undergrounded neighborhood from North Coast Highway up to the open space hillsides.

Staff seeks direction from the City Council regarding whether it would like to contribute additional nonassessment revenues to this district, and if so, to what amount (e.g., 10%). If City Council approves the request for an additional contribution, the Engineer’s Report will be amended to reflect the financial contribution thereby reducing individual property assessments. The lower property tax assessments will be reflected onto the Assessment Ballots to be mailed out to property owners.

Assessments and Costs
There are 90 assessable parcels in the proposed Fairview/La Brea assessment district. Proposed individual assessments generally range from approximately $22,000 to $75,000 with an average assessment of $53,000. The Hotel Joaquin parcel, which is the largest parcel in the district, is an outlier with an estimated assessment amount of $106,194 due to the unusually large size of the parcel. For this range of assessments, the annual assessments are projected to range from $1,727 to $5,886, assuming a maximum interest rate of 6% for 25 years. If bonds sell at a lower interest rate, the annual payments would be less.

The amount has not been included for the Income Tax Component of Contribution (ITCC). Since the project will be funded by tax exempt bonds, it is assumed that this tax will not be imposed for the improvements being funded. If the tax is imposed, a supplemental assessment would be needed. The ITCC tax could be up to 30% of the construction cost.

In addition to the assessments, each property owner who currently receives overhead utility service will be required to hire a contractor to underground the overhead services on their private property. Underground connection costs can vary from approximately $5,000 to $15,000 depending upon the terrain, landscaping, and hardscaping on the property. This amount is in addition to the assessment amounts.

Legal Process
NV5 prepared the attached Preliminary Engineer’s Report, and the City Attorney has reviewed the attached resolutions. All costs shown in the report represent estimated costs for engineering, utility charges, construction, bond financing, and other incidental expenses. To proceed with the formation proceedings outlined in the Municipal Improvement Act of 1913 and the Improvement Bond Act of 1915, the City Council is required to adopt the following resolutions:
• A Resolution of the City Council declaring its intention to order the construction of certain improvements, and to form Underground Utility Assessment District 2021-3 (Fairview/La Brea). • A Resolution of the City Council preliminarily adopting, confirming, and approving the Preliminary Engineer’s Report, and appointing the time and place for a public hearing and for hearing protests to improvements within the proposed Underground Utility Assessment District 2021-3 (Fairview/La Brea).
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Schedule
If the City Council adopts the recommendations, the Assessment Engineer will mail the Notice of Assessment accompanied by an Assessment Ballot in early November 2025 to each affected property owner informing them of their preliminary assessment amounts and the time and place for a public hearing to tally the votes. The ballot also indicates how, when, and to whom the ballots should be returned. The public hearing and final balloting are recommended at the January 13, 2026, City Council meeting.

FINANCIAL ANALYSIS
The recommended actions have no financial impact at this time. An appropriation of $474,580 (General Benefit) plus the amount for an additional City Contribution, if directed by City Council, will be required if the district is approved.

ENVIRONMENTAL ANALYSIS
The proposed undergrounding project is exempt from provisions of the California Environmental Quality Act (CEQA) pursuant to State 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.” On December 4, 2024, the Planning Commission approved Design Review 24-2286 finding the project categorically exempt from CEQA.

ATTACHMENTS

1. Boundary Map (Pg. 6)

2. Resolution of Intent (Pgs. 7-13)

3. Resolution Adopting Engineer’s Report (Pgs. 14-17)

4. Preliminary Engineer’s Report (Pgs. 18-47)

5. Fairview/La Brea Proponents Letter (Pg. 48)
Submitted By: Mark McAvoy Approved: .David A Kiff
Mark McAvoy, Director of Public
Works & Utilities
Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Pierre Sawaya, Capital Program Manager Thomas Perez, City Engineer Patrick Donegan, Assistant City Attorney
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Attachment 1
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RESOLUTION NO. 25.XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA BEACH, CALIFORNIA, DECLARING ITS INTENTION

TO ORDER THE CONSTRUCTION OF CERTAIN

IMPROVEMENTS AND TO FORM UNDERGROUND UTILITY
ASSESSMENT DISTRICT NO. 2021-3 (FAIRVIEW/LA BREA) AND

FINDING THE SAME EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
WHEREAS, in accordance with the provisions of Section 5896.6 of the California Streets and Highways Code, the owners of more than 50 percent in area of the properties subject to assessment for the proposed construction of certain improvements hereinafter described (the "Improvements") have signed and filed with the City Clerk a written petition for the construction in proceedings to be taken by the City Council of the City of Laguna Beach (herein referred to as the "City") pursuant to the provisions of the Municipal Improvement Act of 1913, being Division 12 of the California Streets and Highways Code (“Improvement Act”), applicable provisions of Article XIIID of the California Constitution, being the “Right to Vote on Taxes Act” (“Proposition 218”), and provisions of Government Code Section 53750 et seq., being the “Proposition 218 Omnibus Implementation Act” and for the issuance of bonds in the proceedings under the Improvement Bonds Act of 1915 (the "1915 Act") (collectively the "Acts"); and WHEREAS, it appears to the City Council that an assessment district should be formed to finance the installation of said Improvements under the provisions of the Acts to enhance public safety, reliability, and the overall aesthetics of this community; and WHEREAS, the proposed territory and boundaries of such assessment district are shown on a map, which map is designated "Boundary Map for Underground Utility Assessment District No. 2021-3, City of Laguna Beach" (herein referred to as the "Map"), has been presented to the City Council for approval and is on file in the office of the City Clerk; and Attachment 2
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WHEREAS, NV5, the assessment engineer ("Engineer of Work"), is competent to make and has filed with the City Clerk the report with regard to the Improvements, which report is required by the Acts to be made and filed; and
WHEREAS, before ordering the Improvements, the City Council is required, under the Acts, to adopt a resolution declaring its intention to do so.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:

SECTION 1. 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 2. The proposed assessment district shall be designated "Underground Utility Assessment District No. 2021-3."
SECTION 3. The Map, which indicates by a boundary line the extent of the territory included in said proposed assessment district, is hereby declared to describe the proposed boundaries of "Underground Utility Assessment District No. 2021-3" and shall govern for all details as to the extent of said assessment district.

SECTION 4. The City Clerk is hereby directed to endorse her certificate on the original of the Map evidencing the date and adoption of this resolution and to file said Map in her office, and to file a copy of said Map so endorsed with the County Recorder of Orange County, California within fifteen (15) days after the adoption of the resolution fixing the time and place of hearing on the formation and extent of the assessment district.

SECTION 5. The Improvements which the City Council intends to order are the 8 9 of 187
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construction of certain underground utility system improvements, appurtenances, right-of-way improvements, and all appurtenant work in connection therewith in certain streets and other public easements as provided in the Engineer's Report. The City Council determines that the Improvements will enhance public safety, reliability, and aesthetics of the neighborhood within the district.

SECTION 6. Pursuant to Section 4 of Article XIIID of the Constitution of the State of California, parcels within the assessment district that are owned or used by any local agency, the State of California or the United States shall not be exempt from assessment, unless it can be demonstrated by clear and convincing evidence that such publicly-owned parcels in fact receive no special benefit from the Improvements.

SECTION 7. Notice is hereby given that serial bonds to represent unpaid assessments, which bear interest at a fixed or variable interest rate of not to exceed twelve percent per annum, or such higher maximum interest rate as may be permitted by law, will be issued hereunder in the manner provided in Division 10 of the California Streets and Highways Code (the Improvement Bond Act of 1915) and the last installment of such bonds shall mature in not to exceed 39 years from the second of September next succeeding 12 months from their date. The alternate procedure for collecting assessments and advance retirement of bonds as set forth in Part 11.1 of Division 10 of the California Streets and Highways Code shall apply herein. Pursuant to Section 8650.1 of said Code, the City Council may determine to issue said bonds so that other than an equal annual proportion of the principal amount shall mature each year.

SECTION 8. The City Council further hereby declares that it is its intention to covenant that, upon default of any assessment payment due (except under circumstances to be specified in resolution for the bonds), it will cause foreclosure proceedings to be brought within 150 days of 9 10 of 187
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such default, as permitted by Section 8830(b) of the California Streets and Highways Code.

SECTION 9. The City Council further declares that it is its intention to create a special reserve fund to provide for the purchase of tax delinquent property by the City, and for other advances contemplated to be made by the City under Part 13 of Division 10 of the California Streets and Highways Code, as permitted by Part 16, Sections 8880-8886 of said Code, inclusive.

SECTION 10. The City Council hereby finds and determines that if the assessment proposed herein results in a surplus in the improvement fund to be provided for in the proceedings hereafter taken pursuant to this resolution, after the Improvements are constructed, the surplus shall be applied as a credit on the assessment or for the redemption of bonds, unless the City Council hereafter otherwise provides by resolution, all in accordance with the provisions of Sections 10427-10427.2, inclusive, of the California Streets and Highways Code.

SECTION 11. Whenever, in the Municipal Improvement Act of 1913 or in the Improvement Bond Act of 1915, a notice, resolution, order or other matter relative to said proceedings for the work, acquisitions and improvements in said assessment district is required to be published, the City Clerk is hereby ordered to publish such notice, resolution or other matter in the LA Times – Daily Pilot, which is hereby selected by the City Council for that purpose.

SECTION 12. The City Council hereby appoints NV5 as the Engineer of Work, refers the proposed construction and acquisitions to the Engineer of Work and directs the Engineer to make and file with the City Clerk a report in writing containing the matters specified in Section 10204 of the California Streets and Highways Code.

SECTION 13. Pursuant to California Streets and Highways Code Section 8769, the City Council hereby determines that the City will not obligate itself to advance available funds from the City Treasury to cure any deficiency which may occur in the Redemption Fund; provided, 10 11 of 187
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however, this determination shall not prevent the City from, in its sole discretion, advancing funds for such purpose as otherwise provided in the Improvement Bond Act of 1915.

SECTION 14. The City Council declares that it is its current intention to contribute approximately $474,580 for the General Benefit and $XXX,XXX as an additional City Contribution received by the public at-large and that cannot be assessed to the parcels within the district.

SECTION 15. The City Council further declares that it is its intention to enter into agreements with Southern California Edison, Frontier Communications, Cox Communications, and Crown Castle pursuant to Section 5896.9 of the California Streets and Highways Code, regarding the construction and installation of the Improvements, the cost of which shall be assessed upon the real property specially benefiting therefrom and title to which shall vest, upon completion, in said public utilities.

SECTION 16. The City Council further declares that the bonds issued for Assessment District No. 2021-3 shall be refundable in accordance with the provisions of the "Refunding Act of 1984 for 1915 Improvement Act Bonds" (commencing with Section 9500) of the California Streets and Highways Code on the following conditions:
(a) The maximum interest rate on the refunding bonds shall not exceed the maximum rate permitted by law at the time of the refunding;
(b) The maximum number of years to maturity of the refunding bonds shall not exceed the number of years to maturity of the bonds to be refunded; and (c) Any adjustment to assessments resulting from the refunding will be done on a pro-rata basis.

SECTION 17. Pursuant to the provision of the authority granted by the Acts, the City 11 12 of 187
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Council hereby determines and declares that, in its opinion, the public interest will not be served by allowing any owner of property located within the assessment district to be awarded any contract to be let under this proceeding and said property owners shall not be awarded any such contracts.

SECTION 18. Appropriate staff of the City is hereby authorized and directed to take such acts in furtherance of this resolution as may be necessary to accomplish the proceedings initiated herein. The costs of such actions, if any, shall be advanced from the appropriate fund of the City; and such advances, if any, shall be reimbursed to said fund from the proceeds of the bonds to be issued hereunder.

SECTION 19. Environmental Review. The proposed undergrounding project is exempt from provisions of the California Environmental Quality Act (CEQA) pursuant to State 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.” On December 4, 2024, the Planning Commission approved Design Review 24-2286 finding the project categorically exempt from CEQA.

ADOPTED this 28th day of October, 2025.

Alex Rounaghi, Mayor
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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 October 28, 2025, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

City Clerk, City of Laguna Beach, California
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RESOLUTION NO. 25.XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA BEACH, CALIFORNIA, PRELIMINARILY ADOPTING,
CONFIRMING, AND APPROVING THE ENGINEER’S REPORT

AND APPOINTING THE TIME AND PLACE FOR HEARING

PROTESTS TO IMPROVEMENTS IN PROPOSED
UNDERGROUND UTILITY ASSSESSMENT DISTRICT 2021-3
(FAIRVIEW/LA BREA) AND FINDING THE SAME EXEMPT FROM

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the City Council of the City of Laguna Beach by Resolution No. 25.XXX, adopted by the City Council on October 28, 2025, declared its intention to make the improvements in Underground Utility Assessment District No. 2021-3 (the "Assessment District"), therein described; and
WHEREAS, the City Council in and by the resolution referred the proposed improvements to the Engineer of Work (the "Engineer"), and directed the Engineer to make and file with the City Council a report containing the matters specified in Section 10204 of the California Streets and Highways Code; and
WHEREAS, the Engineer has on this date filed with the Clerk of the City his report in writing containing the matters specified in Section 10204 of California Streets and Highways Code, including the following:
(a) Plans and specifications of the proposed improvements if the improvements are not already installed;
(b) A general description of the property necessary or convenient for the operation of the work and improvements and of the property to be acquired as a part of the improvements; (c) An estimate of the cost of the proposed improvements and acquisitions and incidental expenses in connection therewith;
(d) A diagram showing the Assessment District and the boundaries and dimensions Attachment 3
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of the subdivisions of land within the Assessment District as they existed at the time of passage of the resolution, each of which subdivisions has been given a separate number upon the diagram, and showing the relative location of the parcels of land to the work proposed to be done and the improvements to be made;
(e) A proposed assessment of the total amount of the cost and expenses of the improvements distributed and allocated upon the several subdivisions of land in the district in proportion to the estimated special benefits to be received by such subdivisions, respectively, from the improvements; and
(f) A proposed maximum annual assessment upon each subdivision of land in the district to pay costs incurred by the City, which result from the administration and collection of assessments or from the administration of registration of the bonds, and reserve and other related funds; and
WHEREAS, the report has been duly presented by the City Clerk for consideration and has been fully considered by the City Council.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:

SECTION 1. The Engineer’s report, including the plans, specifications, general descriptions, estimate of the cost of acquisitions, and improvements and incidental expenses in connection therewith, diagram and proposed assessment, are hereby preliminarily adopted, confirmed and approved.

SECTION 2. Tuesday, the 13th of January 2026 at 5:00 p.m., or as soon thereafter as the matter can be heard at the Council Chambers of the City Council located at 505 Forest Avenue, Laguna Beach, California, is hereby fixed as the time and place for a Public Hearing of comments on the proposed improvements and/or acquisitions. Any record owner may comment on the 15 16 of 187
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proposed improvements or the extent of the assessment and file an assessment ballot with the Clerk of the City at or before the conclusion of said hearing.

SECTION 3. The City Clerk is directed to cause notice of the public meeting and the public hearing and assessment ballots to be mailed in accordance with Section 4 of Article XIIID of the California Constitution and California Government Code Section 53750 et seq.

SECTION 4. The Boundary Map for the Assessment District is hereby approved and the Superintendent of Streets and City Clerk are hereby directed to record said map in the records of the Orange County Recorder's Office as required by California Streets and Highways Code Section 3113.

SECTION 5. Environmental Review. The proposed undergrounding project is exempt from provisions of the California Environmental Quality Act (CEQA) pursuant to State 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.” On December 4, 2024, the Planning Commission approved Design Review 24-2286 finding the project categorically exempt from CEQA.

ADOPTED this 28th day of October, 2025.

Alex Rounaghi, Mayor
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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 October 28, 2025, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

City Clerk, City of Laguna Beach, California
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PRELIMINARY ENGINEER’S REPORT FOR
FAIRVIEW/LA BREA UNDERGROUND UTILITY ASSESSMENT DISTRICT (AD 2021-3) PREPARED UNDER THE PROVISIONS OF THE MUNICIPAL IMPROVEMENT ACT OF 1913

CITY OF LAGUNA BEACH
October 14, 2025
Attachment 4
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TABLE OF CONTENTS
Page
Introduction and Certifications ....................................................................................... 2 PART I Plans and Specifications ................................................................................... 6 PARTII Cost Estimate ................................................................................................... 7 PARTIII Assessment Roll and Method of Assessment Spread ....................................... 8 Table 1 - Assessment Roll .............................................................................. 10 Debt Limit Valuation ...................................................................................... 12 Exhibit 1-Method and Formula of Assessment Spread .................................. 13 PARTIV Annual Administrative Assessment ............................................................... 19 PART V Diagram of Assessment District ..................................................................... 20 PARTVI Description of Facilities ................................................................................. 22 Right-of-Way Certificate ................................................................................ 24 Certification of Completion of Environmental Proceedings .......................... 25

APPENDIX
A. Assessment Calculations
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AGENCY: CITY OF LAGUNA BEACH
PROJECT: FAIRVIEW/LA BREA UNDERGROUND UTILITY ASSESSMENT DISTRICT (AD 2021-3) TO: CITY COUNCIL
ENGINEER'S "REPORT" PURSUANT TO THE
PROVISIONS OF SECTIONS 2961 AND 10204

OF THE STREETS AND HIGHWAYS CODE
The purpose of this Assessment District is to provide financing to underground power, telephone and cable facilities in the area known as the Fairview/La Brea Underground Utility Assessment District. The proposed underground utility improvements will provide conversion to an upgraded utility system and will enhance neighborhood aesthetics, safety and reliability.

The construction of these improvements will conform toexistingCity of Laguna Beach, Southern California Edison, Cox Communications, Frontier Communications, Crown Castle, and City of Laguna Beach Street Lighting standards. By virtue of such improvements, the proposed improvements are of special and direct benefit to these properties.

Pursuant to the provisions of Article XIIID of the State Constitution, Part 7.5 of the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931'', being Division 4 of the Streets and Highways Code of the State of California, and the "Municipal Improvement Act of 1913", being Division 12 of said Code, and the Resolution of Intention, adopted by the City Council of the CITY OF LAGUNA BEACH, State of California, in connection with the proceedings for Fairview/La Brea AD 2021-3 (hereinafter referred to as the “Assessment District”), I, Jeffrey M. Cooper, P.E., a Registered Professional Engineer and authorized representative of NV5, Inc., the duly appointed Engineer of Work, herewith submits the “Report” for the Assessment District, consisting of six (6) parts as stated below.

PART I
This part contains the plans and specifications which describe the general nature, location and extent for the proposed improvements to be constructed, and are filed herewith and made a part hereof.

Said plans and specifications are on file in the Office of the Superintendent of Streets/City Engineer.

PART II
This part contains an estimate of the cost of the proposed improvements, including capitalized interest, if any, incidental costs and expensesin connection therewith asset forth herein and attached hereto.
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PART III
This part consists of the following information:

A. A proposed assessment of the total amount of the costs and expenses of the proposed improvements upon the several subdivisions of land within the Assessment District, in proportion to the special benefits to be received by such subdivisions from said improvements, which is set forth upon the assessment roll filed herewith and made a part hereof.

B. The total amount, as near as may be determined, of the total principal sum of all unpaid special assessments and special assessments required or proposed to be levied under any completed or pending assessment proceedings, other than that contemplated for the Assessment District, which would require an investigation and report under the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931" against the total area proposed to be assessed.

C. The total true value, determined from the latest Assessor'sroll, of the parcels of land and improvements which are proposed to be assessed.

PART IV
This part contains the proposed maximum annual administrative assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the CITY OF LAGUNA BEACH, and not otherwise reimbursed, resulting from the administration and collection of assessments, from the administration and registration of any associated bonds and reserve or other related funds, or both.

PART V
This part contains a map showing the boundaries of the Assessment District, and a diagram showing the Assessment District, the boundaries and the dimensions of the subdivisions of land within said Assessment District, asthe same existed at the time of the passage of the Resolution of Intention. The Boundary Map and Assessment Diagram are filed herewith and made a part hereof, and part of the assessment.
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PART VI
This part shall consist of the following information:

A. Description of facilities
B. Right-of-Way Certificate
C. Environmental Certificate
This report is submitted on October 14, 2025
NV5, INC.

JEFFREY M. COOPER, P.E.

R.C.E. No. 31572

ENGINEER OF WORK

CITY OF LAGUNA BEACH

STATE OF CALIFORNIA
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Preliminary approval by the CITY COUNCIL of the CITY OF LAGUNA BEACH, CALIFORNIA, on the _____ day of _______________, 2025.
____________________________

CITY CLERK

CITY OF LAGUNA BEACH

STATE OF CALIFORNIA
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PART I
Plans and Specifications
The plans and specifications to construct the utility undergrounding improvements, and any ancillary improvements thereof, for the area generally described as Fairview/La Brea AD 2021-3 area, parcels located east and west of N. Coast Highway and bounded approximately by Hillcrest Drive, Wave Street, Cliff Drive, and Chiquita Street, describe the general nature, location and extent of the improvements for Assessment District are referenced herein and incorporated as if attached and a part of this Report.

Said Plans and Specifications for the improvements are on file in the office of the Superintendent of Streets/City Engineer.
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CONSTRUCTION COSTS Awarded Bid
Joint Trench Construction Costs
Construction Costs $2,807,413.38
Construction Contingency (10%) 280,741.34
Utility Cost
SCE 410,984.26
Frontier 226,128.66
Cox Communications 530,467.85
Crown Castle 31,995.08
Street Lighting 11,960.00
Utility Cost Contingency 59,978.79
Total Construction Costs: $4,359,669.36

INCIDENTAL EXPENSES
Assessment Engineering $44,055.00
Construction Bidding $8,000.00
Surveying 5,000.00
Construction Management/Inspection 156,000.00
City Administration 35,000.00
Assessment District Administration 5,000.00
Financial Printing, Registration, Filing and Servicing 5,000.00 Fiscal Agent 7,500.00
Filing Fees 1,000.00
Bond Counsel 35,000.00
Disclosure Counsel $37,500.00
Financial Advisor 39,500.00
Incidental Contingencies (2% of Incidental Expenses) 7,571.10 Total Incidental Expenses: $386,126.10
Total Construction & Incidental Expenses: $4,745,795.46 LESS: CONTRIBUTIONS FROM OTHER SOURCES
Contribution from City of Laguna Beach
Contribution for General Benefit ($474,579.55)
Total Contributions from Other Sources: $ (474,579.55)
Total Construction & Incidental Expenses Financed: $4,271,215.91

FINANCING COSTS
Underwriter's Discount (2%) 60,000.00
Capitalized Interest (First Interest Payment) 157,564.00 Bond Reserve/Credit Enhancement (6% of Bond Proceeds) 288,000.00 Total Financing Costs: $505,564.00
TOTAL AMOUNT OF ASSESSMENT: $4,776,779.91
Part II
Cost Estimate
25 26 of 187
Part III
Assessment Roll and Method of Assessment Spread
WHEREAS, on _________________, 2025 the City Council of the CITY OF LAGUNA BEACH, State of California, did, pursuant to the provisions of the 1913 Act "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and Highways Code, of the State of California, adopt its Resolution of Intention No. 2025-____, for the installation and construction of certain public improvements, together with appurtenances and appurtenant work in connection therewith (the “improvements”), in a special assessment district known and designated as “Fairview/La Brea Underground Utility Assessment District (AD 2021-3)” (hereinafterreferred to asthe "Assessment District"); and WHEREAS, said Resolution of Intention, asrequired by Law, did direct the Engineer of Work to make and file a "Report", consisting of the following as required by Section 10204 of the Act:
a. Plans and Specifications
b. A general description of works or appliances already installed and any other property necessary or convenient for the operation of the improvement, if the works, appliances, or property are to be acquired as part of the improvement.
c. Cost Estimates
d. Assessment Diagram showing the Assessment District and the subdivisions of land therein; e. A proposed assessment of the costs and expenses of the works of improvement levied upon the parcels within the boundaries of the Assessment District; f. The proposed maximum annual assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the City and not otherwise reimbursed resulting from the administration and collection of assessments or from the administration and registration of any associated bonds and reserve or other related funds.

For particulars, reference is made to the Resolution of Intention as previously adopted.

NOW, THEREFORE, I, JEFFREY M. COOPER, P.E., the authorized representative of NV5, pursuant to Article XIIID of the California Constitution and the “Municipal Improvement Act of 1913", do hereby submit the following:

1. Pursuant to the provisions of Law and the Resolution of Intention, I have assessed the costs and expenses of the works of improvement to be performed in the Assessment District upon the parcels of land in the Assessment District specially benefited thereby in direct proportion and relation to the special benefits to be received by each of said parcels. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is attached hereto and incorporated herein.

2. As required by law, a Diagram is hereto attached, showing the Assessment District, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said 26 27 of 187
District as the same existed at the time of the passage of said Resolution of Intention, each of which subdivisions of land or parcels or lots respectively have been given a separate number upon said Diagram and in said Assessment Roll.

3. The subdivisions and parcels of land the numbers therein as shown on the respective Assessment Diagram as attached hereto correspond with the numbers as appearing on the Assessment Roll as contained herein.

4. NOTICEISHEREBYGIVEN that bonds will be issuedinaccordancewithDivision 10 of the Streets and Highways Code of the State of California (the "Improvement Bond Act of 1915"), to represent all unpaid assessments, which bonds shall be issued in one or more series, each with a term not to exceed the legal maximum term as authorized by law, THIRTY-NINE (39) YEARS from the 2nd day of September next succeeding twelve (12) months from their date. Said bonds shall bear interest at a rate not to exceed the current legal maximum rate of 12% per annum.

5. By virtue of the authority contained in said "Municipal Improvement Act of 1913", and by further direction and order of the legislative body, I hereby recommend the following Assessment to cover the costs and expenses of the works of improvement for the Assessment District based on the costs and expenses as set forth below:

As Preliminary Approved As Confirmed
Estimated Cost of Design and Construction: $4,359,669.36 $ Estimated Incidental Expenses: $386,126.10 $
Estimated Financial Costs: $505,564.00 $
Estimated Contribution: $(474,579.55) $
Estimated Total to Assessment: $4,776,779.91 $
For particulars as to the individual assessments and their descriptions, reference is made to Table l (Assessment Roll) attached hereto.

6. The Method of Spread of Assessment is as set forth in the exhibit identified as Part III (Exhibit I), which is attached hereto, referenced and so incorporated. 27 28 of 187
Asmt No.

Assessor's
Parcel Number
Total
True Value
Existing
Liens
Assessments as
Preliminarily
Approved
Assessments
as Confirmed
and Recorded
Value
To Lien
Ratio
1 053-125-23 1,393,861 $ - $ 36,217.93 - 38.5
2 053-125-22 4,421,700 $ - $ 36,217.93 - 122.1
3 053-125-21 230,423 $ - $ 36,217.93 - 6.4
4 053-125-20 745,222 $ - $ 36,217.93 - 20.6
5 053-125-28 536,379 $ - $ 36,217.93 - 14.8
6 053-125-27 2,090,793 $ - $ 36,217.93 - 57.7
7 053-125-18 1,768,680 $ - $ 36,217.93 - 48.8
8 053-125-17 108,331 $ - $ 36,367.65 - 3.0
9 053-125-14 1,837,592 $ - $ 35,610.95 - 51.6
10 053-125-15 106,442 $ - $ 46,406.41 - 2.3
11 053-125-16 3,264,000 $ - $ 46,406.41 - 70.3
12 053-126-11 4,086,207 $ - $ 54,904.09 - 74.4
13 053-126-12 1,876,621 $ - $ 46,406.41 - 40.4
14 053-126-10 1,914,965 $ - $ 56,114.00 - 34.1
15 053-126-09 636,153 $ - $ 56,118.05 - 11.3
16 053-126-08 321,110 $ - $ 56,118.05 - 5.7
17 053-126-07 483,984 $ - $ 56,114.00 - 8.6
18 053-126-40 157,576 $ - $ 56,118.05 - 2.8
19 053-126-39 1,874,007 $ - $ 56,118.05 - 33.4
20 053-126-05 158,783 $ - $ 56,118.05 - 2.8
21 053-126-04 3,799,500 $ - $ 56,118.05 - 67.7
22 053-126-03 1,549,360 $ - $ 56,118.05 - 27.6
23 053-126-02 654,266 $ - $ 56,118.05 - 11.7
24 053-126-01 3,470,378 $ - $ 34,527.14 - 100.5
25 053-126-18 348,865 $ - $ 34,527.14 - 10.1
26 053-126-17 1,419,071 $ - $ 56,118.05 - 25.3
27 053-126-19 1,478,616 $ - $ 56,118.05 - 26.3
28 053-126-20 1,644,872 $ - $ 56,118.05 - 29.3
29 053-126-41 708,319 $ - $ 57,028.52 - 12.4
30 053-126-42 2,241,196 $ - $ 56,716.93 - 39.5
31 053-126-36 2,226,456 $ - $ 56,433.68 - 39.5
32 053-126-35 1,832,655 $ - $ 55,660.79 - 32.9
33 053-126-32 727,273 $ - $ 55,660.79 - 13.1
34 053-126-37 436,207 $ - $ 55,664.84 - 7.8
35 053-126-38 2,184,840 $ - $ 55,664.84 - 39.2
36 053-126-13 2,819,080 $ - $ 46,406.41 - 60.7
37 053-126-14 1,798,145 $ - $ 54,904.09 - 32.8
38 053-144-13 1,108,279 $ - $ 55,523.21 - 20.0
39 053-144-14 910,995 $ - $ 56,118.05 - 16.2
40 053-144-15 638,083 $ - $ 56,118.05 - 11.4
41 053-144-16 520,625 $ - $ 56,118.05 - 9.3
42 053-144-17 3,570,000 $ - $ 56,118.05 - 63.6
43 053-144-18 724,158 $ - $ 56,118.05 - 12.9
44 053-144-19 2,218,765 $ - $ 56,118.05 - 39.5
28 29 of 187
Asmt No.

Assessor's
Parcel Number
Total
True Value
Existing
Liens
Assessments as
Preliminarily
Approved
Assessments
as Confirmed
and Recorded
Value
To Lien
Ratio
45 053-144-20 3,147,210 $ - $ 56,118.05 - 56.1
46 053-144-21 2,165,093 $ - $ 56,118.05 - 38.6
47 053-144-22 399,837 $ - $ 56,114.00 - 7.1
48 053-144-23 738,117 $ - $ 56,118.05 - 13.2
49 053-144-24 139,953 $ - $ 56,118.05 - 2.5
50 053-144-25 1,130,446 $ - $ 55,992.61 - 20.2
51 053-144-01 1,147,857 $ - $ 56,114.00 - 20.5
52 053-144-02 2,083,146 $ - $ 74,327.38 - 28.0
53 053-144-03 2,337,605 $ - $ 74,327.38 - 31.5
54 053-144-04 467,968 $ - $ 56,118.05 - 8.3
55 053-144-05 3,825,000 $ - $ 56,118.05 - 68.2
56 053-144-06 1,130,679 $ - $ 56,114.00 - 20.1
57 053-144-07 738,344 $ - $ 56,118.05 - 13.2
58 053-144-08 650,324 $ - $ 56,118.05 - 11.6
59 053-144-09 487,903 $ - $ 36,215.90 - 13.5
60 053-144-10 691,633 $ - $ 36,217.93 - 19.1
61 053-144-11 515,409 $ - $ 56,118.05 - 9.2
62 053-144-12 1,339,703 $ - $ 45,415.01 - 29.5
63 053-154-10 1,867,253 $ - $ 49,289.55 - 37.9
64 053-154-09 2,412,125 $ - $ 60,670.38 - 39.8
65 053-154-08 1,286,512 $ - $ 60,670.38 - 21.2
66 053-154-07 973,609 $ - $ 60,670.38 - 16.0
67 053-154-11 190,403 $ - $ 60,670.38 - 3.1
68 053-154-12 2,438,064 $ - $ 27,698.64 - 88.0
69 053-154-05 151,911 $ - $ 22,007.21 - 6.9
71 053-154-03 2,276,299 $ - $ 60,670.38 - 37.5
72 053-154-18 1,229,582 $ - $ 60,670.38 - 20.3
73 053-154-17 8,582,591 $ - $ 106,193.70 - 80.8
74 053-153-13 3,125,918 $ - $ 50,048.27 - 62.5
75 053-153-14 2,129,906 $ - $ 59,759.91 - 35.6
76 053-153-19 6,314,187 $ - $ 54,869.70 - 115.1
77 053-153-03 2,612,584 $ - $ 54,904.09 - 47.6
78 053-153-02 630,151 $ - $ 46,406.41 - 13.6
79 053-153-01 1,003,418 $ - $ 46,406.41 - 21.6
80 053-153-17 617,587 $ - $ 62,187.83 - 9.9
81 053-153-21 751,809 $ - $ 62,187.83 - 12.1
82 053-153-20 4,725,337 $ - $ 62,187.83 - 76.0
83 053-153-09 2,153,094 $ - $ 34,769.93 - 61.9
84 053-152-07 3,636,198 $ - $ 62,187.83 - 58.5
85 053-152-06 103,525 $ - $ 62,187.83 - 1.7
86 053-152-05 1,001,242 $ - $ 62,187.83 - 16.1
87 053-152-04 958,125 $ - $ 62,187.83 - 15.4
88 053-152-03 5,865,000 $ - $ 53,771.07 - 109.1
89 053-152-02 856,347 $ - $ 54,904.09 - 15.6
90 053-152-01 5,400,614 $ - $ 53,744.77 - 100.5
91 053-152-14 823,421 $ - $ 62,187.83 - 13.2
29 30 of 187
Table 2
Debt Limit Valuation
A.ESTIMATEDBALANCETOASSESSMENT(Notincludingcityownedparcels) $4,776,779.91 B. UNPAID SPECIAL ASSESSMENTS $0
TOTAL A& B $4,776,779.91
C. TRUE VALUE OF PARCELS (Not including city owned parcels) $154,295,872 AVERAGE VALUE TO LIEN RATIO 32:1
* Unpaid Special Assessments shall consist of the total principal sum of all unpaid special assessments previously levied or proposed to be levied other than in the instant proceedings. ** True Value of Parcels means the total value of the land and improvements as estimated and shown on the last equalized roll of the County or as otherwise reasonably calculated.

This report does not represent a recommendation of parcel value, economic viability or financial feasibility, asthat is not the responsibility of the Assessment Engineer.

CERTIFICATION
I, the undersigned Assessment Engineer, do hereby certify that (i) the total amount of the principal sum of the special assessments proposed to be levied, together with the principal amount of previously levied special assessments, asset forth above, do not exceed one-half (1/2) the total true value of the parcels proposed to be assessed, and (ii) the amount proposed to be assessed upon any parcel does not exceed one-half of the true value of the parcel.

EXECUTED ON October 14, 2025
NV5, INC.

JEFFREY M. COOPER, P.E.

R.C.E. No. 31572

ENGINEER OF WORK

CITY OF LAGUNA BEACH

STATE OF CALIFORNIA
30 31 of 187
Exhibit 1
Method and Formula of Assessment Spread
Since the improvements are to be funded by the levying of assessments, the "Municipal Improvement Act of 1913" andArticle XIIID of the State Constitution require that assessmentsmust be based on the special benefit that the properties receive from the works of improvement. In addition, Section 4 of Article XIIID of the State Constitution requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Section 4 provides that only special benefits are assessable and the local agency levying the assessment must separate the general benefits from the special benefits. It also provides that parcels within a district that are owned or used by any public agency, the State of California, or the United Statesshall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcelsin fact receive no special benefit. Neither the Act nor the State Constitution specifies the method or formula that should be used to apportion the costs to properties in any special assessment district proceedings.

The responsibility for recommending an apportionment of the costs to properties which specially benefit from the improvements rests with the Assessment Engineer, who is appointed for the purpose of making an analysis of the facts and determining the correct apportionment of the assessment obligation. In order to apportion the assessments to each parcel in direct proportion with the special benefit which it willreceive from the improvements, an analysis has been completed and is used asthe basis for apportioning costs to each property within the Assessment District.

Based upon an analysis of the special benefit to be received by each parcel from the construction of the works of improvement, the Assessment Engineer recommends the apportionment of costs as outlined below. The final authority and action rests with the City Council after hearing all testimony and evidence presented at a public hearing, and tabulating the assessment ballots previously mailed to all record owners of property within the Assessment District. Upon the conclusion of the public hearing, the City Council must make the final determination whether or not the assessment spread has been made in direct proportion to the special benefits received by each parcel within the Assessment District. Ballot tabulation will be done at that time and, if a majority of the returned ballots weighted by assessment amount are not in opposition to the Assessment District, theCity Council may form the Assessment District.

The following sectionsset forth the methodology used to apportion the costs of the improvements to each parcel.

SPECIAL BENEFITS
In further making the analysis, it is necessary that the properties receive a special benefit distinguished from general benefits conferred on real property located in the District or to the public at large. 31 32 of 187
The purpose of thisAssessmentDistrictisto provide the financing to underground existing overhead electrical, telephone and cable facilities as well as rehabilitate the affected portions of streets and alleys within the District.These facilities are the direct source of service to most properties within the Assessment District.

The proposed replacement of existing overhead utility facilities (power, telephone and cable facilities) with underground facilities and removal of the existingutility poles and the overhead wireswill provide a special benefit to the parcels connected to and adjacent to, or in near proximity of, the facilities as follows:
• Improved Aesthetics Benefit. This benefit relatesto the improved aesthetics of the streetscape due to the removal of overhead wires and utility poles. The Aesthetics benefit includes any and all benefit from viewing a pole at each property. For the purposes of this report, a street is defined as either a street or alley. The removal of guy wires and other support structures related to the overhead facilities are included in the definition of improved aesthetics. Properties that are directly adjacent to, or in proximity of, overhead facilitiesreceive an aesthetic benefit. This benefit is based on the area of the parcel.
• Safety Benefit. This benefit relatesto the additional safety of having the overhead distribution wires placed underground and having the power poles removed, which eliminates the threat of downed utility lines and poles due to wind, rain and other unforeseeable events. Fallingfacilities canleadto personal injuries anddamage to structures, including fire. Properties immediately adjacent to, or in proximity of, the facilities usually have a greater risk. Furthermore, in areas like Fairview/La Brea AD 2021-3, the negative effects of falling lines and poles are widespread including blocked driveways and property damage due to impact. Alleys are often used as a travelway rather than just ingress and egress to properties. Properties that are adjacent to, or in proximity of, overhead facilitiesreceive a safety benefit. This benefit is based on the average area of the parcels in the District.
• Reliability Benefit. This benefit relatesto the enhanced reliability of service from the utilities being underground, due to having all new wires and equipment and having that equipment underground, which reduces the threat of service interruption from downed lines. When compared to overhead systems, fewer outages occur due to various acts of nature, traffic collisions and obstructions (such astrees). Properties that are connected to, or have the ability to connect to, the facilities proposed to be undergrounded receive a reliability benefit. This benefit is based on the average area of the parcels in the District.

By virtue of such special benefits, the proposed improvements will provide a higher level of service, increase the desirability of the properties and will specifically enhance the values of the properties within the Assessment District. Therefore, the proposed improvements are of direct and special benefit to these properties.
32 33 of 187

SPECIAL CONSIDERATIONS
The following is a summary of each property with special considerations:
• Assessment Nos. 24, 25, 68, 69, 83: The poles, wires, and guy wires to be undergrounded will benefit these properties, but there is no reliability benefit as these properties are connected to an existing underground system through a previous project or will remain connected to the existing overhead system.
• Assessment Nos. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 36, 37, 38, 59, 60, 62, 63, 68, 69, 74, 76, 77, 78, 79, 83, 88, 89, 90: The poles, wires, and guy wires to be undergrounded will benefit these properties but will not receive the full aesthetics benefit. These properties either will have some poles, wires, or guy wires remaining adjacent to their properties, the parcel is located behind a property fronting the street, or these properties are uniquely situated in that they directly face Coast Highway which already has underground utilities and all existing poles, wires, or guy wires that will be removed are located behind these parcels. These properties will be assessed one half of the aesthetics benefit.
• Assessment Nos. 1, 2, 3, 4, 5, 6, 7, 8, 9, 59, 60: The poles, wires, and guy wires to be undergrounded will benefit these properties but will not receive the full safety benefit. These properties will have some poles, wires, or guy wires remaining adjacent to their properties. These properties will be assessed one half of the safety benefit.

GENERAL BENEFITS
Section 4 of Article XIIID requires that the general benefits imparted by the utility undergrounding project be separated from the special benefits and that only the special benefit portion of the costs of the project be assessed against those parcels which are identified as receiving special benefits. Separating the general from the special benefits requires an examination of the facts and circumstances of the project and the property being assessed.

In this particular assessment district, the streets and alleys along which the existing overhead utility facilities are being undergrounded function as local and collector streets. No other roadways are designated as an arterial, a major arterial or a scenic corridor in the Transportation Element of the City's General Plan. Furthermore, the City has an established network of arterial streets which appear to function as intended to provide for the movement of traffic around and through the community at large without the need to utilize local collector streets for such purposes. Under these circumstances, any use of the streets within the assessment district as ''through" streets is incidental.

The properties situated within the assessment district are primarily residential with some commercial and non-commercial properties.

Based on these facts and circumstances, any general benefits to the property within the Assessment District in general, to the surrounding community and to the public at large from the project of 33 34 of 187
undergrounding these local overhead utility facilities on the local streets and alleys, such as to the general public visiting in cars, on bikes or on foot, are incidental and do not exceed ten percent (10%) of the estimated project costs. Therefore, the remainder of the project design and construction costs represents the local and special benefits to the parcels within the Assessment District. Because only the net amount of $4,776,779.91 is apportioned to the parcels within the District, no parcel is assessed more than its proportional share of the special benefits from the improvements. The City will provide at least a ten percent (10%) General Benefit contribution to the project.

METHODOLOGY
Based upon the findings described above, the special benefit received by the properties within the boundaries of the Assessment District is the conversion from an overhead to an underground utility system resulting in additional safety, enhanced reliability, and improved aestheticsto the adjacent properties.

Based on these conditions, it is our conclusion that the improvements specially benefit all assessed properties in the AssessmentDistrict.

To establish the benefit to the individual parcelswithin the Assessment District, the highest and best use of each property is considered. For example, a vacant property is considered developed to its highest potential and connected to the system.

The properties within this Assessment District are zoned primarily residential, with some commercial and institutional zones. There is a direct correlation between the size of a property and the extent to which a property may develop. Because parcelsize is one of the main limiting factors for what can be built on a property, or the extent the property is developed, the size of each parcel is used as the base unit for measuring benefit. In this case, only the aesthetic benefit is considered proportional to the parcel size. This is because aesthetic benefits arise from the removal of overhead wires and support structures. Larger parcels receive more aesthetic benefits due to the removal of more of these items adjacent to them compared to smaller parcels. Reliability and safety benefits, however, are not dependent on parcel size and are instead based on a unit basis or the average parcel size in the district.

The special benefits from the undergrounding of overhead utilities are categorized into the three (3) distinct benefits identified above. All parcels within the District receive 3 of the 3 benefits, except as noted in the Special Considerations section. For the Improved Aesthetics Benefit, the parcel area is multiplied by 1 to calculate the "Aesthetics Benefit Area.” For the Reliability Benefit and Safety Benefit, the average parcel area within the district is determined and applied to the parcel, the “Reliability Benefit Area” and “Safety Benefit Area” are the average size of parcels in the District. The Assessed Benefit Area per parcel is equal to the Aesthetics Benefit Area plus the Safety Benefit Area plus the Reliability Benefit Area, divided by 3.
34 35 of 187

ASSESSMENT APPORTIONMENT
Each parcel will be apportioned itsfair share of the construction costs based on the Assessed Benefit Area calculated for each property.

Incidental Expenses and Financial Costs have been assessed to the entire Assessment District on a prorata basis relative to the total construction cost allocations.

The individual assessment calculations are provided in Appendix A. For particulars to the Assessment Roll, reference is made to Table 1 in Part III of this report.

In conclusion, it ismy opinion that the assessments for the referenced Assessment District have been spread in direct accordance with the special benefits that each parcel receives from the works of improvement.

Federal Income Tax Component of Contribution Tax (ITCC) has not been included. The ITCC is a tax assessed whenever private party contributions in aid of construction (CIAC) are made.

To date, underground utility districts have not been assessed this tax as underground utility districts are viewed as providing public benefit by increasing community aesthetics and public safety.

Dated: October 14, 2025
NV5, INC.

JEFFREY M. COOPER, P.E.

R.C.E. No. 31572

ENGINEER OF WORK

CITY OF LAGUNA BEACH

STATE OF CALIFORNIA
35 36 of 187
I, asCITYCLERK of the CITYOF LAGUNA BEACH, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, wasfiled in my office on the __________ day of __________________, 2025.

CITY CLERK

CITY OF LAGUNA BEACH

STATE OF CALIFORNIA
I, asCITYCLERK of the CITYOFLAGUNA BEACH, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was preliminarily approved by the City Council of the CITY OF LAGUNA BEACH, CALIFORNIA, on ___________ day of ___________________, 2025.

CITY CLERK

CITY OF LAGUNA BEACH

STATE OF CALIFORNIA
I, asCITYCLERK of the CITYOFLAGUNA BEACH, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was approved and confirmed by the City Council of the CITY OF LAGUNA BEACH, CALIFORNIA, on ___________ day of ___________________, 2025.

CITY CLERK

CITY OF LAGUNA BEACH

STATE OF CALIFORNIA
I, asSUPERINTENDENTOFSTREETS/CITY ENGINEER of the
CITYOFLAGUNA BEACH, CALIFORNIAdo hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was recorded in my office on ___________ day of ____________________, 2025.

SUPERINTENDENT OF STREETS/CITY ENGINEER

CITY OF LAGUNA BEACH

STATE OF CALIFORNIA
36 37 of 187

PART IV
Annual Administrative Assessment
A proposed maximum annual administrative assessment shall be levied on each parcel of land and subdivision of land within the Assessment District to pay for necessary costs and expenses incurred by the CITY OF LAGUNA BEACH, and not otherwise reimbursed, resulting from the administration and collection of assessments, from the administration or registration of any bonds and reserve or other related funds, or both. The maximum assessment is authorized pursuant to the provisions of Section 10204(f) of the Streets and Highways Code and shall not exceed eighty eight dollars ($88) per parcel per year, subject to an annual increase based on the Consumer Price Index (CPI), or 3%, whichever is greater, during the preceding year ending in January, for all Urban Consumers in the Los Angeles, Riverside, and Orange County areas. The exact amount of the administration charge will be established each year by the Superintendent of Streets.

It should be expressly understood that the annual administrative assessment, as set forth above, is separate from, and in addition to, (a) the sixteen dollar ($16.00) per-parcel collection fee that may be added to each annual assessment under California Streets and Highways Code Sections 8682 (to cover expenses of collection) and 8682.1 (to cover bond administration costs), and (b) any fees payable to the City in connection with Assessment prepayments after the issuance of Bonds, apportionment of Assessments to reflect parcels splits or parcel mergers, and late charges and penalties for delinquent Assessment installments.

The annual administrative assessment will be collected in the same manner and in the same installments as the assessment levied to pay for the cost of the works of improvement. 37 38 of 187
PART V
Diagram of Assessment
A reduced copy of the Assessment Diagram is attached hereto. Full-sized copies of the Boundary Map and Assessment Diagram are on file in the Office of the City Clerk, of the City of Laguna Beach.

As required by the Act, the Assessment Diagram shows the exterior boundaries of the Assessment District and the assessment number assigned to each parcel of land corresponding to its number as it appears in the Assessment Roll contained in Part III Table I. The Assessor's Parcel Number is also shown for each parcel as they existed at the time of the passage of the Resolution of Intention and reference is hereby made to the Assessor's Parcel Maps of the County of Orange for the boundaries and dimensions of each parcel of land.
38 39 of 187
39 40 of 187
City of Laguna Beach
Fairview/La Brea Underground Utility Assessment District (AD 2021-3) Preliminary Engineer's Report
October 14, 2025 | 22
Part VI
Description of Facilities
Section 10100 of the Act provides for the legislative body of anymunicipality to finance certain capital facilities and serviceswithin or along itsstreets or any public way or easement.The following is a list of proposed improvements as allowed under the Act to be installed, or improved under the provisions of the Act, including the acquisition of required right-of-way and/or property. For the general location of the improvements to be constructed referenced is hereby made to the Plans and Specifications described in Part I of this report.

The following improvements are proposed to be constructed and installed in the general location referred to as the Fairview/La Brea Underground Utility Assessment District (AD 2021-3).

1. Acquisition of any required easements or rights-of-way.

2. Removal of existing utility poles.

3. Removal of overhead resident service drops.

4. Construction of mainline underground power, telephone and cable conduit, with appurtenant manholes and pull boxes, and installation of cabling, wiring and other facilities.

5. Construction of service conduit and appurtenances.

The improvements will be designed by Southern California Edison, Cox Communications, Frontier Communications, Crown Castle, and City of Laguna Beach Street Lighting. The utility companies will be responsible for inspecting the work for their facilities and the City of Laguna Beach will inspect the work to ensure conformance to City standards and specifications where applicable.

The City may construct additional pavement rehabilitation as needed for the project.

Once completed, the underground facilities will become the property and responsibility of Southern California Edison, Cox Communications, Frontier Communications, Crown Castle, and City of Laguna Beach.

Each owner of property locatedwithin the AssessmentDistrictwill be responsible for arranging for and paying for work on his or her property necessary to connectfacilities constructed by the public utilities in the public streets and alleys to the points of connection on the private property. Conversion of individual service connections on private property is not included in the work done by the Assessment District.

The estimated time for completion of the undergrounding of the utilities is 12 months after the sale of bonds. Property owners will be required to provide necessary underground connections following the receipt of the City of Laguna Beach’s connection notices to property owners. 40 41 of 187
City of Laguna Beach
Fairview/La Brea Underground Utility Assessment District (AD 2021-3) Preliminary Engineer's Report
October 14, 2025 | 23
Failure to convert individual service connections on private property may result in a recommendation to theCity Council that the public utilities be directed to discontinue service to that property pursuant to Section 21.24.100 of the Municipal Code. Overhead facilities cannot be removed until all overhead service has been discontinued.
41 42 of 187
City of Laguna Beach
Fairview/La Brea Underground Utility Assessment District (AD 2021-3) Preliminary Engineer's Report
October 14, 2025 | 24
Right-of -Way Certificate

STATE OF CALIFORNIA

COUNTY OF ORANGE

CITY OF LAGUNA BEACH
The undersigned hereby CERTIFIES UNDER PENALTY OF PERJURY that the following is all true and correct.

That at all time herein mentioned, the undersigned was, and now is, the authorized representative of the duly appointed SUPERINTENDENTOF STREETS/CITY ENGINEER of theCITYOFLAGUNA BEACH, CALIFORNIA.

That there have now been instituted proceedings under the provisions of Article XIIID of the California Constitution, and the "Municipal Improvements Act of 1913," being Division 12 of the Streets and Highways Code of the State of California, for the construction of certain public improvements in a special assessment district known and designated as FAIRVIEW/LA BREA UNDERGROUND UTILITY ASSESSMENT DISTRICT (AD 2021-3) (hereinafter referred to as the "Assessment District").

THE UNDERSIGNED STATES AND CERTIFIES AS FOLLOWS:

All easements or right-of-way necessary for the construction and installation of the public improvements of the Assessment District either have been obtained or are in process of being obtained and will be obtained and in the possession of the affected utility company, the City, the County of Orange or the State of California prior to commencement of the construction and installation of such public improvements.

EXECUTED this day of , 2025 at CITY OF LAGUNA BEACH,
California.

SUPERINTENDENT OF STREETS/CITY ENGINEER

CITY OF LAGUNA BEACH
State of California
By:
42 43 of 187
City of Laguna Beach
Fairview/La Brea Underground Utility Assessment District (AD 2021-3) Preliminary Engineer's Report
October 14, 2025 | 25
Certificate of Completion of Environmental Proceedings

STATE OF CALIFORNIA

COUNTY OF ORANGE

CITY OF LAGUNA BEACH
The undersigned, under penalty of perjury, CERTIFIES as follows:

1. That I am the person who authorized to prepare and process all environmental documentation as needed as it relates to the formation of the special Assessment District being formed pursuant to the provisions of the "Municipal Improvement Act of 1913" being Division 12 of the Streets and Highways Code of the State of California, said special Assessment District known and designated as FAIRVIEW/LA BREA STREET UNDERGROUND UTILITY ASSESSMENT DISTRICT (AD 2021-3) (hereinafterreferred to asthe "Assessment District").

2. The specific environmental proceedings relatingto thisAssessmentDistrictthat have been completed are as follows:

CEQA compliance review:

The proposed project is Categorically Exempt (Class 2) from the provisions of CEQA (replacement or reconstructions).

3. I do hereby certify that all environmental evaluation proceedings necessary for the formation of the Assessment District have been completed to my satisfaction, and that no further environmental proceedings are necessary.

EXECUTED this day of , 2025 at CITY OF LAGUNA BEACH,
California.

By:

CITY OF LAGUNA BEACH

STATE OF CALIFORNIA
43 44 of 187
City of Laguna Beach
Fairview/La Brea Underground Utility Assessment District (AD 2021-3) Preliminary Engineer's Report
October 14, 2025 | 26

APPENDIX
A. Assessment Calculations
44 45 of 187
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
Assessed
Benefit Area
Total Design,
Construction, &
Contingency Costs
Incidental
Expenses
Financial
Costs
Contribution
from Other
Sources
Final
Total
Assessment
276 LA BREA ST 1 053-125-23 4,500 1 YES 2,250 YES 2,668 YES 5,336 3,417.84 34,445.78 $ $ 3,050.79 $ 3,994.47 $ (5,273.11) $ 36,217.93 266 LA BREA ST 2 053-125-22 4,500 1 YES 2,250 YES 2,668 YES 5,336 3,417.84 34,445.78 $ $ 3,050.79 $ 3,994.47 $ (5,273.11) $ 36,217.93 260 LA BREA ST 3 053-125-21 4,500 1 YES 2,250 YES 2,668 YES 5,336 3,417.84 34,445.78 $ $ 3,050.79 $ 3,994.47 $ (5,273.11) $ 36,217.93 254 LA BREA ST 4 053-125-20 4,500 1 YES 2,250 YES 2,668 YES 5,336 3,417.84 34,445.78 $ $ 3,050.79 $ 3,994.47 $ (5,273.11) $ 36,217.93 246 LA BREA ST 5 053-125-28 4,500 1 YES 2,250 YES 2,668 YES 5,336 3,417.84 34,445.78 $ $ 3,050.79 $ 3,994.47 $ (5,273.11) $ 36,217.93 234 LA BREA ST 6 053-125-27 4,500 1 YES 2,250 YES 2,668 YES 5,336 3,417.84 34,445.78 $ $ 3,050.79 $ 3,994.47 $ (5,273.11) $ 36,217.93 232 LA BREA ST 7 053-125-18 4,500 1 YES 2,250 YES 2,668 YES 5,336 3,417.84 34,445.78 $ $ 3,050.79 $ 3,994.47 $ (5,273.11) $ 36,217.93 222 LA BREA ST 8 053-125-17 4,574 1 YES 2,287 YES 2,668 YES 5,336 3,430.17 34,570.08 $ $ 3,061.79 $ 4,008.88 $ (5,273.11) $ 36,367.65 1140 N COAST HWY 9 053-125-14 4,200 1 YES 2,100 YES 2,668 YES 5,336 3,367.84 33,941.87 $ $ 3,006.16 $ 3,936.03 $ (5,273.11) $ 35,610.95 1130 N COAST HWY 10 053-125-15 4,200 1 YES 2,100 YES 5,336 YES 5,336 4,257.12 42,904.24 $ $ 3,799.93 $ 4,975.34 $ (5,273.11) $ 46,406.41 1110 N COAST HWY 11 053-125-16 4,200 1 YES 2,100 YES 5,336 YES 5,336 4,257.12 42,904.24 $ $ 3,799.93 $ 4,975.34 $ (5,273.11) $ 46,406.41 1088 N COAST HWY 12 053-126-11 8,400 1 YES 4,200 YES 5,336 YES 5,336 4,957.12 49,959.01 $ $ 4,424.76 $ 5,793.44 $ (5,273.11) $ 54,904.09 1060 N COAST HWY 13 053-126-12 4,200 1 YES 2,100 YES 5,336 YES 5,336 4,257.12 42,904.24 $ $ 3,799.93 $ 4,975.34 $ (5,273.11) $ 46,406.41 219 LA BREA ST 14 053-126-10 4,499 1 YES 4,499 YES 5,336 YES 5,336 5,056.79 50,963.47 $ $ 4,513.72 $ 5,909.92 $ (5,273.11) $ 56,114.00 231 LA BREA ST 15 053-126-09 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 241 LA BREA ST 16 053-126-08 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 243 LA BREA ST 17 053-126-07 4,499 1 YES 4,499 YES 5,336 YES 5,336 5,056.79 50,963.47 $ $ 4,513.72 $ 5,909.92 $ (5,273.11) $ 56,114.00 251 LA BREA ST 18 053-126-40 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 261 LA BREA ST 19 053-126-39 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 265 LA BREA ST 20 053-126-05 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 271 LA BREA ST 21 053-126-04 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 285 LA BREA ST 22 053-126-03 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 291 LA BREA ST 23 053-126-02 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 1095 HILLCREST DR 24 053-126-01 4,500 1 YES 4,500 YES 5,336 NO 0 3,278.56 33,042.09 $ $ 2,926.46 $ 3,831.69 $ (5,273.11) $ 34,527.14 1025 HILLCREST DR 25 053-126-18 4,500 1 YES 4,500 YES 5,336 NO 0 3,278.56 33,042.09 $ $ 2,926.46 $ 3,831.69 $ (5,273.11) $ 34,527.14 290 FAIRVIEW ST 26 053-126-17 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 278 FAIRVIEW ST 27 053-126-19 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 276 FAIRVIEW ST 28 053-126-20 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 264 FAIRVIEW ST 29 053-126-41 4,725 1 YES 4,725 YES 5,336 YES 5,336 5,132.12 51,722.70 $ $ 4,580.96 $ 5,997.96 $ (5,273.11) $ 57,028.52 256 FAIRVIEW ST 30 053-126-42 4,648 1 YES 4,648 YES 5,336 YES 5,336 5,106.45 51,464.02 $ $ 4,558.05 $ 5,967.97 $ (5,273.11) $ 56,716.93 246 FAIRVIEW ST 31 053-126-36 4,578 1 YES 4,578 YES 5,336 YES 5,336 5,083.12 51,228.86 $ $ 4,537.23 $ 5,940.70 $ (5,273.11) $ 56,433.68 238 FAIRVIEW ST 32 053-126-35 4,387 1 YES 4,387 YES 5,336 YES 5,336 5,019.45 50,587.22 $ $ 4,480.40 $ 5,866.29 $ (5,273.11) $ 55,660.79 232 FAIRVIEW ST 33 053-126-32 4,387 1 YES 4,387 YES 5,336 YES 5,336 5,019.45 50,587.22 $ $ 4,480.40 $ 5,866.29 $ (5,273.11) $ 55,660.79 222 FAIRVIEW ST 34 053-126-37 4,388 1 YES 4,388 YES 5,336 YES 5,336 5,019.79 50,590.57 $ $ 4,480.69 $ 5,866.68 $ (5,273.11) $ 55,664.84 214 FAIRVIEW ST 35 053-126-38 4,388 1 YES 4,388 YES 5,336 YES 5,336 5,019.79 50,590.57 $ $ 4,480.69 $ 5,866.68 $ (5,273.11) $ 55,664.84 1042 N COAST HWY 36 053-126-13 4,200 1 YES 2,100 YES 5,336 YES 5,336 4,257.12 42,904.24 $ $ 3,799.93 $ 4,975.34 $ (5,273.11) $ 46,406.41 1000 N COAST HWY 37 053-126-14 8,400 1 YES 4,200 YES 5,336 YES 5,336 4,957.12 49,959.01 $ $ 4,424.76 $ 5,793.44 $ (5,273.11) $ 54,904.09 980 N COAST HWY 38 053-144-13 8,706 1 YES 4,353 YES 5,336 YES 5,336 5,008.12 50,473.00 $ $ 4,470.28 $ 5,853.04 $ (5,273.11) $ 55,523.21 215 FAIRVIEW ST 39 053-144-14 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 223 FAIRVIEW ST 40 053-144-15 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 231 FAIRVIEW ST 41 053-144-16 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 239 FAIRVIEW ST 42 053-144-17 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 247 FAIRVIEW ST 43 053-144-18 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 253 FAIRVIEW ST 44 053-144-19 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05

ASSESSMENT CALCULATIONS
45 46 of 187
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
Assessed
Benefit Area
Total Design,
Construction, &
Contingency Costs
Incidental
Expenses
Financial
Costs
Contribution
from Other
Sources
Final
Total
Assessment
259 FAIRVIEW ST 45 053-144-20 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 267 FAIRVIEW ST 46 053-144-21 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 275 FAIRVIEW ST 47 053-144-22 4,499 1 YES 4,499 YES 5,336 YES 5,336 5,056.79 50,963.47 $ $ 4,513.72 $ 5,909.92 $ (5,273.11) $ 56,114.00 283 FAIRVIEW ST 48 053-144-23 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 291 FAIRVIEW ST 49 053-144-24 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 295 FAIRVIEW ST 50 053-144-25 4,469 1 YES 4,469 YES 5,336 YES 5,336 5,046.79 50,862.69 $ $ 4,504.79 $ 5,898.23 $ (5,273.11) $ 55,992.61 294 WAVE ST 51 053-144-01 4,499 1 YES 4,499 YES 5,336 YES 5,336 5,056.79 50,963.47 $ $ 4,513.72 $ 5,909.92 $ (5,273.11) $ 56,114.00 290 WAVE ST 52 053-144-02 9,000 1 YES 9,000 YES 5,336 YES 5,336 6,557.12 66,084.18 $ $ 5,852.93 $ 7,663.38 $ (5,273.11) $ 74,327.38 274 WAVE ST 53 053-144-03 9,000 1 YES 9,000 YES 5,336 YES 5,336 6,557.12 66,084.18 $ $ 5,852.93 $ 7,663.38 $ (5,273.11) $ 74,327.38 262 WAVE ST 54 053-144-04 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 254 WAVE ST 55 053-144-05 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 246 WAVE ST 56 053-144-06 4,499 1 YES 4,499 YES 5,336 YES 5,336 5,056.79 50,963.47 $ $ 4,513.72 $ 5,909.92 $ (5,273.11) $ 56,114.00 240 WAVE ST 57 053-144-07 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 230 WAVE ST 58 053-144-08 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 222 WAVE ST 59 053-144-09 4,499 1 YES 2,250 YES 2,668 YES 5,336 3,417.67 34,444.10 $ $ 3,050.64 $ 3,994.27 $ (5,273.11) $ 36,215.90 216 WAVE ST 60 053-144-10 4,500 1 YES 2,250 YES 2,668 YES 5,336 3,417.84 34,445.78 $ $ 3,050.79 $ 3,994.47 $ (5,273.11) $ 36,217.93 212 WAVE ST 61 053-144-11 4,500 1 YES 4,500 YES 5,336 YES 5,336 5,057.12 50,966.83 $ $ 4,514.02 $ 5,910.31 $ (5,273.11) $ 56,118.05 200 WAVE ST 62 053-144-12 3,710 1 YES 1,855 YES 5,336 YES 5,336 4,175.45 42,081.18 $ $ 3,727.04 $ 4,879.90 $ (5,273.11) $ 45,415.01 925 N COAST HWY 63 053-154-10 5,625 1 YES 2,813 YES 5,336 YES 5,336 4,494.62 45,297.82 $ $ 4,011.93 $ 5,252.91 $ (5,273.11) $ 49,289.55 172 WAVE ST 64 053-154-09 5,625 1 YES 5,625 YES 5,336 YES 5,336 5,432.12 54,746.17 $ $ 4,848.74 $ 6,348.58 $ (5,273.11) $ 60,670.38 156 WAVE ST 65 053-154-08 5,625 1 YES 5,625 YES 5,336 YES 5,336 5,432.12 54,746.17 $ $ 4,848.74 $ 6,348.58 $ (5,273.11) $ 60,670.38 134 WAVE ST 66 053-154-07 5,625 1 YES 5,625 YES 5,336 YES 5,336 5,432.12 54,746.17 $ $ 4,848.74 $ 6,348.58 $ (5,273.11) $ 60,670.38 128 WAVE ST 67 053-154-11 5,625 1 YES 5,625 YES 5,336 YES 5,336 5,432.12 54,746.17 $ $ 4,848.74 $ 6,348.58 $ (5,273.11) $ 60,670.38 940 CLIFF DR 68 053-154-12 5,625 1 YES 2,813 YES 5,336 NO 0 2,716.06 27,373.08 $ $ 2,424.37 $ 3,174.29 $ (5,273.11) $ 27,698.64 960 CLIFF DR 69 053-154-05 2,812 1 YES 1,406 YES 5,336 NO 0 2,247.23 22,648.07 $ $ 2,005.89 $ 2,626.36 $ (5,273.11) $ 22,007.21 165 FAIRVIEW ST 71 053-154-03 5,625 1 YES 5,625 YES 5,336 YES 5,336 5,432.12 54,746.17 $ $ 4,848.74 $ 6,348.58 $ (5,273.11) $ 60,670.38 175 FAIRVIEW ST 72 053-154-18 5,625 1 YES 5,625 YES 5,336 YES 5,336 5,432.12 54,746.17 $ $ 4,848.74 $ 6,348.58 $ (5,273.11) $ 60,670.38 985 N COAST HWY 73 053-154-17 16,875 1 YES 16,875 YES 5,336 YES 5,336 9,182.12 92,539.55 $ $ 8,196.02 10,731.24$ $ (5,273.11) $ 106,193.70 166 FAIRVIEW ST 74 053-153-13 6,000 1 YES 3,000 YES 5,336 YES 5,336 4,557.12 45,927.71 $ $ 4,067.71 $ 5,325.95 $ (5,273.11) $ 50,048.27 174 FAIRVIEW ST 75 053-153-14 5,400 1 YES 5,400 YES 5,336 YES 5,336 5,357.12 53,990.30 $ $ 4,781.80 $ 6,260.92 $ (5,273.11) $ 59,759.91 1027 N COAST HWY 76 053-153-19 8,383 1 YES 4,192 YES 5,336 YES 5,336 4,954.29 49,930.45 $ $ 4,422.23 $ 5,790.13 $ (5,273.11) $ 54,869.70 1043 N COAST HWY 77 053-153-03 8,400 1 YES 4,200 YES 5,336 YES 5,336 4,957.12 49,959.01 $ $ 4,424.76 $ 5,793.44 $ (5,273.11) $ 54,904.09 1081 N COAST HWY 78 053-153-02 4,200 1 YES 2,100 YES 5,336 YES 5,336 4,257.12 42,904.24 $ $ 3,799.93 $ 4,975.34 $ (5,273.11) $ 46,406.41 1095 N COAST HWY 79 053-153-01 4,200 1 YES 2,100 YES 5,336 YES 5,336 4,257.12 42,904.24 $ $ 3,799.93 $ 4,975.34 $ (5,273.11) $ 46,406.41 161 LA BREA ST 80 053-153-17 6,000 1 YES 6,000 YES 5,336 YES 5,336 5,557.12 56,005.95 $ $ 4,960.32 $ 6,494.66 $ (5,273.11) $ 62,187.83 145 LA BREA ST 81 053-153-21 6,000 1 YES 6,000 YES 5,336 YES 5,336 5,557.12 56,005.95 $ $ 4,960.32 $ 6,494.66 $ (5,273.11) $ 62,187.83 135 LA BREA ST 82 053-153-20 6,000 1 YES 6,000 YES 5,336 YES 5,336 5,557.12 56,005.95 $ $ 4,960.32 $ 6,494.66 $ (5,273.11) $ 62,187.83 115 LA BREA ST 83 053-153-09 9,120 1 YES 4,560 YES 5,336 NO 0 3,298.56 33,243.66 $ $ 2,944.32 $ 3,855.06 $ (5,273.11) $ 34,769.93 124 LA BREA ST 84 053-152-07 6,000 1 YES 6,000 YES 5,336 YES 5,336 5,557.12 56,005.95 $ $ 4,960.32 $ 6,494.66 $ (5,273.11) $ 62,187.83 136 LA BREA ST 85 053-152-06 6,000 1 YES 6,000 YES 5,336 YES 5,336 5,557.12 56,005.95 $ $ 4,960.32 $ 6,494.66 $ (5,273.11) $ 62,187.83 142 LA BREA ST 86 053-152-05 6,000 1 YES 6,000 YES 5,336 YES 5,336 5,557.12 56,005.95 $ $ 4,960.32 $ 6,494.66 $ (5,273.11) $ 62,187.83 160 LA BREA ST 87 053-152-04 6,000 1 YES 6,000 YES 5,336 YES 5,336 5,557.12 56,005.95 $ $ 4,960.32 $ 6,494.66 $ (5,273.11) $ 62,187.83 1105 N COAST HWY 88 053-152-03 7,840 1 YES 3,920 YES 5,336 YES 5,336 4,863.79 49,018.37 $ $ 4,341.45 $ 5,684.36 $ (5,273.11) $ 53,771.07 1157 N COAST HWY 89 053-152-02 8,400 1 YES 4,200 YES 5,336 YES 5,336 4,957.12 49,959.01 $ $ 4,424.76 $ 5,793.44 $ (5,273.11) $ 54,904.09 1191 N COAST HWY 90 053-152-01 7,827 1 YES 3,914 YES 5,336 YES 5,336 4,861.62 48,996.53 $ $ 4,339.51 $ 5,681.83 $ (5,273.11) $ 53,744.77 167 CHIQUITA ST 91 053-152-14 6,000 1 YES 6,000 YES 5,336 YES 5,336 5,557.12 56,005.95 $ $ 4,960.32 $ 6,494.66 $ (5,273.11) $ 62,187.83 TOTALS 432,582.63 4,359,669.36 386,126.10 505,564.00 -474,579.55 4,776,779.91

ASSESSMENT CALCULATIONS
46 47 of 187
Jeffrey M. Cooper, P.E.

COO
NV5
Phone: (949) 585-0477
Email: [email protected]
47 48 of 187
September 26, 2025
Alex Rounaghi, Mayor, City of Laguna Beach
Members of City of Laguna Beach City Council.

Subject: Fairview/La Brea Street Utility Undergrounding Assessment District 2021-3 City Contribution to Project Costs
Dear Mayor and City Council Members,
In 2021, City Council approved petitions to begin formation of the Fairview/La Brea Underground Utility Assessment District. (2021-3) and allocated funding for design/engineering. The Planning Commission, Dec. 2024, approved Design Review for the project and the formation of the district has progressed covering 90 properties.

The initial estimate for the project cost per our preliminary engineering report dated September 26, 2025, is $4,776, 779.91. As team leads, we feel confident we have a good majority supporting the project; but we could use the City’s help to get us to the finish line.

Following the precedent of prior districts, we would hope the city will contribute an additional 10% of the project costs on top of the General Benefit 10%. Our La Brea neighbors have had wires come down on their homes twice during past high winds and the fire safety advantages our district will bring the city, along with precedent, make this request a very reasonable one. Also, narrow alleys with existing poles and transformers are located extremely close to some homes. Our neighborhood is not far from open space to the east and will help harden the infrastructure and have continuous underground utilities up to Coast Hwy. We hope you will support the efforts to mitigate risks.

We appreciate the City Council’s continued support and for your consideration of our 20% total contribution request. Neighbors will be much more likely to support the project with this help. We hope to be given some relief to the rising bond costs and the escalating costs of materials and labor these utilities are putting into their bids. Our average cost per property is $53,075. With an additional 10% from the city our average price drops below $50K which is the amount we had targeted from the onset.

We would be available to meet with any City Council member or City staff to discuss this further. We hope we can get a vote from you to support our project.

Sincerely,
Fairview/La Brea Team Leaders
Carrie Reynolds (200 Block Fairview St.) Jeff Randolph (100 Block La Brea) John Vogt (Lower 200 Block La Brea St.) Mark Gold (Upper 200 Block La Brea) Kristin and Doug Allison (Upper 200 Block La Brea)
Attachment 5
48 49 of 187
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Fairview/La Brea
Utility
Undergrounding
Before and After
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Lower La Brea Street
Wires have come down on these homes twice.

Shorting out all wires and trapping inhabitants.
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Lower La Brea Street - AFTER
-looking towards the ocean
Before
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Lower parallel alley below PCH between
Fairview and Chiquita
Behind Luxury Apartments,
Aris and more.

AFTER BEFORE
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Lower La Brea – looking inland Last Pole
Close-up shot
from Cliff
After
Before
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Lower La
Brea looking
inland
at Pole #2

AFTER BEFORE
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Before & After
Impacts
• High Density luxury
remodeled dwellings on
PCH on right.
• Looking towards
Chiquita.
• Last pole will remain on
Chiquita (in far
distance).

AFTER BEFORE
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Before &
After
Impacts
Behind Catch Surf
AFTER – looking South
BEFORE – looking South
BEFORE
Looking inland
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Upper La Brea
– 2 angles of BEFORE
Transformer sparked and dropped embers on
the home below.

BEFORE – Looking to ocean
BEFORE – 2
nd angle looking North
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AFTER BEFORE
Upper La Brea
-from Hillcrest looking North angle #1
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Upper La Brea
Angle #2
Looking down La Brea from Hillcrest.

BEFORE
AFTER
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Upper Alley
Between Fairview and
La Brea • This Alley does not daylight on
Cliff and Utility Poles are
surrounded by foliage.

BEFORE
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Upper Unfinished Alley
After
Upper Unfinished Alley
Before
BEFORE
AFTER
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Lower Pinecrest Alley
between Fairview and Wave
looking inland.

Impacting homes on Cliff Dr., Lower Wave,
Lower Fairview and Hotel Joaquin.

BEFORE
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Fairview Alley
(Pinecrest) looking
inland from Cliff • CRR drivers tell us it’s
tough to navigate these
wires and poles.
• Hotel Joaquin brings our
city great TOT tax
revenue.
• 5 of these homes have
families dating back to
the 60’s and 70’s.

Before After
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Upper Alley (called
Pinecrest) between
Fairview and Wave
BEFORE
Shot next to The
Beloved all-wooden
Witch’s House on left.
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Pinecrest After Alley Before
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Upper parallel Alley to
PCH between Fairview
and La Brea looking South
from La Brea
Impacts Miller and Associates, McDonald Group, Gallo
Construction and others on PCH side.

Blue Sears cottages on inland side.
.

Shorting out all wires and trapping inhabitants.

Before
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After. Before.
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Another angle
of our final
pole being
removed going
North.

After Before
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A safer neighborhood.

Thank you
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STAFF REPORT
Meeting Date:

October 28, 2025

BUSINESS
25 SUBJECT: UPDATE ON AMENDMENTS TO GENERAL PLAN, INCLUDING THE OPEN

SPACE AND CONSERVATION ELEMENT (OSCE), AND COMMUNITY
DEVELOPMENT DEPARTMENT’S ADVANCED PLANNING DIVISION;

DIRECTION ON FIRST AMENDMENT TO PROFESSIONAL SERVICES

AGREEMENT FOR BIOLOGICAL SURVEYING SERVICES FOR THE OSCE UPDATE
RECOMMENDATION: It is recommended that the City Council:

1. Receive an update on the General Plan and a possible 2026-28 Update process for the General Plan, including the Open Space and Conservation Element Update, the Housing Element update process, and an Advanced Planning Division of the Community Development Department;

2. Authorize staff to begin community discussions and provide community awareness about a possible General Plan update to be further directed in January 2026;

3. Authorize the City Manager to execute the First Amendment to the Professional Services Agreement with UltraSystems, in a form approved by the City Attorney, to complete the biological surveying services for the Open Space and Conservation Element Update project; and

4. Find recommended actions exempt from the California Environmental Quality Act under State CEQA Guidelines Section 15306.

SUMMARY OF THE MATTER
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THE OSCE UPDATE
October 28, 2025

The City’s General Plan and its elements are of various ages and various levels of conformity with State law. The City Manager, Community Development Director, and City Attorney have reviewed aspects of the overall General Plan and its elements, along with the requirements of State law, and have concluded that, if at all possible, the City and community should begin (in 2026) a transparent and communityinvolved process to update the General Plan. Staff does not see a significant change to the vision or approach in the General Plan (to the contrary, the effort would help ratify the General Plan themes that exist today), but the effort would allow us to have a General Plan and elements that both protect Laguna Beach’s culture, environment, and heritage while complying with State laws and modern practices. This agenda item offers discussion and asks for Council direction to begin a dialogue with the community, in advance of a more formal action in January 2026. Relatedly, the City Council previously approved a scope of work with UltraSystems Environmental Inc. (“UltraSystems”) to provide biological surveying services in support of the Open Space and Conservation Element (“OSCE”) update (the “Project”). The professional services agreement was executed on February 6, 2024, outlining the consultant’s role in preparing updated biological resources mapping and evaluating City-owned open space lands (“Agreement”) (Attachment 1). From the City’s perspective and consistent with the Request for Proposal (“RFP”) and other consultant submissions, the Project was intended to evaluate approximately 3,000 acres of open space through desktop analysis, supported by targeted field verification to confirm assumptions and spot-check mapping accuracy.

However, UltraSystems’ proposal described the effort as involving 200 to 300 acres in total, which City staff understood to represent the field verification component within the larger 3,000-acre study area.

Because this distinction was not explicitly clarified during the interview and negotiation phase, both parties entered into the Agreement with a different understanding of the level of fieldwork and corresponding cost.

City staff and UltraSystems have been in negotiations to resolve out of scope fees and costs and additional scope of work fees and costs for several months to reach a resolution. To date, UltraSystems has prepared a pilot study that it proposes to use for further biological resource evaluation and to produce a biological resources evaluation report. City staff is recommending that the City Council authorize the City Manager to execute the First Amendment to the Agreement with UltraSystems (“First Amendment”), in a form approved by the City Attorney, for certain out-of-scope work and additional biological survey services.

Upon full execution of the First Amendment, UltraSystems will be required to deliver the biological resources evaluation report within sixteen weeks—which will complete the biological mapping update for the OSCE update.

DISCUSSION
A. General Plan Update Discussion.

As noted in the summary, the City’s General Plan and its elements are of various ages and various levels of conformity with State law. The City Manager, Community Development Director, and City Attorney have reviewed aspects of the overall Plan and its elements, along with the requirements of State law, and have concluded that, if at all possible, the City and community should begin (in 2026) a transparent and community-involved process to update the General Plan.
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PROFESSIONAL SERVICES AGREEMENT FOR BIOLOGICAL SURVEYING SERVICES FOR

THE OSCE UPDATE
October 28, 2025

Staff does not see a significant change to the vision or approach in the General Plan (to the contrary, the effort would help ratify the Plan themes that exist today), but the effort would allow us to have a Plan and elements that both protect Laguna Beach’s culture, environment, and heritage while complying with State laws and modern practices.

The need for this comprehensive update is driven in part by the rapidly evolving landscape of State housing laws, which continue to impose new mandates, requirements, and timelines on local jurisdictions. City staff’s goal is to be proactive and stay ahead of the next housing element update cycle rather than waiting until additional statutory changes further compress local flexibility and timing. By preparing now, Laguna Beach can better anticipate and incorporate State expectations while ensuring that local character and values remain central to the planning process.

In addition, the City faces ongoing and significant public safety considerations related to wildfire risk, seismic hazards, flooding, and other natural threats. Updating and aligning the Safety Element with current best practices and scientific data will ensure that the City’s planning framework remains responsive, resilient, and protective of life and property.

The Open Space/Conservation Element has not been significantly updated in decades and no longer reflects existing on-the-ground conditions. Updating this element is critical to reaffirming the City’s longstanding commitment to environmental stewardship and resource conservation while addressing current challenges and opportunities related to habitat management, sustainability, and climate resilience. 3 of 227

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PROFESSIONAL SERVICES AGREEMENT FOR BIOLOGICAL SURVEYING SERVICES FOR

THE OSCE UPDATE
October 28, 2025

Finally, the Land Use and Circulation Elements will need to be revisited to ensure consistency both internally and with State law. As an example, updates to the Safety Element may necessitate revisions to the Circulation Element to ensure that evacuation routes, emergency access, and transportation policies are appropriately correlated and aligned. Together, these updates will help ensure that the City’s General Plan remains cohesive, modern, and an effective tool for guiding future decisions consistent with Laguna Beach’s values and priorities. Table 1 shows information about our General Plan elements.

Table 1 – General Plan Element Information – October 2025 Element
Name
Mandatory
or
Optional?
Last
Updated
Next
Renewal
Date Notes
Historic
Resources Optional 2022 N/A Under legal challenge
Housing Mandatory
2021
(covers
2021–
Oct 15,
2029)
Before
2029
On an 8-year cycle – shortest of all elements.

Should be starting the renewal in 2026.

Human Needs Optional 1976 N/A No specific update requirement – State OPR recommends every 10–15 years.

Land Use Mandatory 2025 TBD No specific update requirement – State OPR recommends every 10–15 years.

Landscape
and Scenic
Highways
Optional 2018 N/A
Noise Mandatory 2005 N/A No specific update requirement – State OPR recommends every 10–15 years.

Open Space
and
Conservation
Mandatory
as open
space'
2005 End of
2025
Needs updating per SB 1425 – for EJ, climate
resilience, and “rewilding” opportunities.

Currently have a citizen team working on it.

Safety Mandatory 2025
OK for now, but CC identified where aspects
of the updated element may not be in alignment
with the LHMP. Must be revised upon each
cycle of Housing Element or Local Hazard
Mitigation Plan update (8 years). Must consider
climate resiliency, evacuation routes and
strategies, specific wildfire and flood info.
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PROFESSIONAL SERVICES AGREEMENT FOR BIOLOGICAL SURVEYING SERVICES FOR

THE OSCE UPDATE
October 28, 2025

Element Name
Mandatory
or
Optional?
Last
Updated
Next
Renewal
Date Notes
Transportation,
Circulation,
and Growth
Management
Mandatory
as
'Circulation
(Mobility)'
1992 TBD Must incorporate 'Complete Streets' concepts
– peds, bikes, other users.

More specifically, to Table 1, the key elements that need updating are:
• Housing
• Open Space and Conservation
• Safety
• Land Use and Circulation Elements to ensure consistency among any other element updates Staff envisions an update process that engages the community around the central themes that have made Laguna Beach the special, iconic place that it is. There are no significant changes envisioned beyond compliance with State law and incorporating current practices into the plans and elements. Additionally, staff has discussed the possibility of separating out the Local Coastal Plan and its implementing actions components from the General Plan, so that it can serve as a stand-alone document(s).

To this end, the City Manager and Community Development Director have discussed a more robust Advanced Planning function, to in part coordinate this effort in-house to the extent possible.

We welcome more discussion of this at the October 28, 2025 Council meeting.

B. First Amendment to Agreement with UltraSystems
On January 11, 2024, the City Council approved a scope of work with UltraSystems for the Project. The Agreement was executed on February 6, 2024. From the City’s perspective and consistent with the RFP and other consultant submissions, the Project was intended to evaluate approximately 3,000 acres of open space through desktop analysis, supported by targeted field verification to confirm assumptions and spotcheck mapping accuracy. However, UltraSystems’ proposal described the effort as involving 200 to 300 acres in total, which City staff understood to represent the field verification component within the larger 3,000-acre study area. Because this distinction was not explicitly clarified during the interview and negotiation phase, both parties entered into the Agreement with differing understandings of the level of fieldwork and corresponding cost.

Following the March 13, 2024 project kickoff meeting, the acreage discrepancy was identified and discussed. At that time, UltraSystems agreed with the City’s intended approach, a primarily desktop-level analysis supplemented by limited field verification and began data review and compilation consistent with 5 of 227

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PROFESSIONAL SERVICES AGREEMENT FOR BIOLOGICAL SURVEYING SERVICES FOR

THE OSCE UPDATE
October 28, 2025

that direction. Early coordination focused on establishing baseline datasets, identifying available GIS resources, and developing vegetation classification methods to support the desktop evaluation.

As UltraSystems advanced its pilot study to refine methodology and test habitat evaluation criteria, the work evolved into a more on-the-ground, labor-intensive process than originally envisioned. While the pilot study, which was completed in October 2024, produced valuable technical results, this expanded fieldbased effort exceeded the scale and budget contemplated in the Agreement and diverged from the City’s expectation of a cost-efficient, desktop-driven analysis.

In July, November, and December 2024 and January 2025, UltraSystems submitted the following four invoices (Attachment 2) to the City (totaling $104,200 when the not to exceed amount of the Agreement is $108,840):

Invoice Date Cost Start of Service End of Service
Status of
Payment
July 18, 2024 $29,798.20 March 1, 2024 June 30, 2024. Paid December 5, 2024 $18,221.20 July 1, 2024 September 30,
2024 Not Paid
November 8, 2024 $27,496.60 October 1, 2024 October 31, 2024 Paid January 29, 2025 $28,684.00 November 1, 2024 December 31, 2024 Not Paid Total $104,200.00
Additionally, in a change order dated January 27, 2025, UltraSystems sought a $150,380 increase to complete the Project (the “Change Order”). At this point, City staff and UltraSystems reviewed correspondence, deliverables, and invoices to clarify the scope discrepancy and establish a mutual understanding of completed and pending work. To ensure that out-of-scope tasks and an increased scope of work could be appropriately reconciled, the City paused payment of approximately $50,000 in invoices (invoices dated December 5, 2024 and January 29, 2025).

In response to negotiations, UltraSystems prepared a second and third version of the Change Order as reflected below:
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THE OSCE UPDATE
October 28, 2025

Activity Change Order
(Version 1)
Change Order
(Version 2)
Change Order
(Version 3)
Out of Scope Drone Operator Bids $12,940 $8,100 $4,100
Out of Scope Presentations $12,950 $9,890 $9,890
Out of Scope
Discovery of ESRI data, GIS
Research, determining
background data for City files
$8,050 $7,050
Out of Scope Project Boundary and Aerial
Imagery Coordination $23,230 $6,030 $6,030
Out of Scope Coordination with City to define
project needs $7,380 $7,380
Total Out of
Scope $49,120 $39,450 $34,450
New Scope Post-Pilot Study Biological
Resources Evaluation $45,430 $26,370 $26,370
New Scope
Biological Resources Evaluation
Report
$93,640
(Biological
Resource
Survey)
$22,440 $22,440
New Scope Project Management $11,310 $4,060 $4,060
Total New
Scope $150,380 $52,870 $52,870
Grand Total $199,500 $92,320 $87,320
Community Development and City Attorney staff worked extensively to review invoices, emails, and billings and met with UltraSystems on a few occasions to negotiate a resolution. UltraSystems is requesting an increase in the amount of $87,320 to the Agreement’s not to exceed amount of $108,840 for a total not to exceed amount of $196,160. UltraSystems is taking the position that to get to the point of a complete pilot study, it cost $104,200. Further, UltraSystems is taking the position that it will cost an additional $52,870 to complete the Project. Lastly, UltraSystems is taking the position that it should be paid $34,450 for out-of-scope work based on communications with City staff—which were not documented through 7 of 227

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THE OSCE UPDATE
October 28, 2025

appropriate amendments to the contract—as required by the Agreement. (See Part II, Section One, Paragraph 1.2.) UltraSystems insists upon payment for the out-of-scope work, and City staff is presenting the proposed First Amendment, which includes payment for the out-of-scope work, to the City Council for consideration.

The First Amendment now under consideration attempts to reconcile differences by formally aligning the Agreement with the City’s original intent, incorporating the post-biological resources evaluation and biological resources evaluation report into the Agreement as a deliverable, and establishing clear cost parameters and deadlines for deliverables. Execution of this First Amendment will ensure contractual clarity, fiscal accountability, and methodological consistency with the City’s approach to the OSCE update, while preserving the technical progress and data advancements achieved to date.

FINANCIAL ANALYSIS
Funding for the additional scope of work and proposed contract amendment will not require an additional funding appropriation. Sufficient unencumbered funds are available within the Community Development Department’s Planning Contractual Services budget to accommodate this change order. The total cost for the UltraSystems Agreement, inclusive of the First Amendment, remains within the range of cost proposals received from other firms during the original RFP process.

A general plan update will involve community dialogues, iterative planning in concert with an Advanced Planning function at the CD Department, environmental review via a program-level EIR, and legal review.

Costs are to be determined based on the scope of work, but are expected to be in the range of $750-800,000, including the EIR. This is not budgeted today, but will be discussed in January 2026.

ENVIRONMENTAL ANALYSIS
The recommended action is exempt under the California Environmental Quality Act under CEQA Guidelines Section 15306 because it consists of basic data collection, research, experimental management, and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource. The recommended action is strictly for information gathering purposes, or as part of a study leading to an action which a public agency has not yet approved, adopted, or funded. Here, the recommended action meets the exemption because it involves biological studying, updated on General Plan, and update on Advanced Planning.

ATTACHMENTS

1. Agreement with UltraSystems (Pgs. 9-31)

2. Invoices (Pgs. 32-35)

3. First Amendment with Ultra Systems (Pgs. 36-39)
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THE OSCE UPDATE
October 28, 2025

Submitted By:

Matthew Schneider
Approved:
. , for
Matthew Schneider, Director of
Community Development
Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Matthew Schneider, Director of Community
Development
Dave Kiff, City Manager
Jane Abzug, Assistant City Attorney
Shaveta Sharma, Senior Planner
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Attachment 1
9 10 of 227
10 11 of 227
11 12 of 227
12 13 of 227
13 14 of 227
14 15 of 227
15 16 of 227
16 17 of 227
17 18 of 227
18 19 of 227
19 20 of 227
20 21 of 227
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31 32 of 227

INVOICE
Invoice No: 13321
Bill To: Project: Invoice Date: 1/29/2025
Page: 1
Report (Spring 2024) Invoice Seq. #: 4
Project #: 7252
Agreement No. 24-01 Purchase Order No.:

Contract Date: 2/6/2024
[email protected]
TIN No. 33-0623499
% $ % $% $
1 Kickoff and Literature Review $9,090.00 100.00% $9,090.00 100.00% $9,090.00 0.00% $0.00 2 Biological Resources Survey $57,100.00 100.00% $57,100.00 65.50% $37,400.50 34.50% $19,699.50 3 Biological Resources Habitat Evaluation Report $28,000.00 100.00% $28,000.00 84.00% $23,520.00 16.00% $4,480.00 4 Project Management $10,010.00 100.00% $10,010.00 55.00% $5,505.50 45.00% $4,504.50 5 Nesting Bird Surveys (Contingency) $4,640.00 0.00% $0.00 0.00% $0.00 0.00% $0.00 Subtotal $108,840.00 95.74% $104,200.00 69.38% $75,516.00 26.35% $28,684.00 $108,840.00 95.74% $104,200.00 69.38% $75,516.00 26.35% $28,684.00 Payment due within 30 days of receipt
* Services no longer requested by client. TOTAL DUE: $28,684.00 REMIT PAYMENT TO:

Corporate Office – Orange County
16431 Scientific Way $108,840.00 Approved Budget
Irvine, CA 92618‐7443 $28,684.00 This InvoiceTelephone: 949.788.4900 Facsimile: 949.788. 4901 $75,516.00 Previous InvoicesWebsite: www.ultrasystems.com $4,640.00 Budget Remaining TOTAL[original contract ]
‐OFFICE USE ONLY‐
Environmental Consulting Services for November 01, 2024 through December 31, 20 505 Forest AvenueLaguna Beach, CA 92651(949) 497-0362
TASK

APPROVED
BUDGET

BILLING
Task No. Name
Total to Date Previous Invoices This period
City of Laguna BeachAttn: Mr. David Contreras Biological Resources Survey and Habitat Evaluation Attachment 2
32 INVOICE
Invoice No: 13280
Bill To: Project: Invoice Date: 12/5/2024
Page: 1
Report (Spring 2024) Invoice Seq. #: 3
Project #: 7252
Agreement No. 24-01 Purchase Order No.:

Contract Date: 2/6/2024
[email protected]
TIN No. 33-0623499
Environmental Consulting Services for July 01, 2024 through September 30, 2024 % $ % $% $
1 Kickoff and Literature Review $9,090.00 100.00% $9,090.00 100.00% $9,090.00 0.00% $0.00 2 Biological Resources Survey $57,100.00 65.50% $37,400.50 45.50% $25,980.50 20.00% $11,420.00 3 Biological Resources Habitat Evaluation Report $28,000.00 84.00% $23,520.00 64.00% $17,920.00 20.00% $5,600.00 4 Project Management $10,010.00 55.00% $5,505.50 43.00% $4,304.30 12.00% $1,201.20 5 Nesting Bird Surveys (Contingency) $4,640.00 0.00% $0.00 0.00% $0.00 0.00% $0.00 Subtotal $108,840.00 69.38% $75,516.00 52.64% $57,294.80 16.74% $18,221.20 $108,840.00 69.38% $75,516.00 52.64% $57,294.80 16.74% $18,221.20 Payment due within 30 days of receipt
* Services no longer requested by client. TOTAL DUE: $18,221.20 REMIT PAYMENT TO:

Corporate Office – Orange County
16431 Scientific Way $108,840.00 Approved Budget
Irvine, CA 92618‐7443 $18,221.20 This InvoiceTelephone: 949.788.4900 Facsimile: 949.788. 4901 $57,294.80 Previous InvoicesWebsite: www.ultrasystems.com $33,324.00 Budget Remaining City of Laguna BeachAttn: Mr. David Contreras Biological Resources Survey and Habitat Evaluation TASK

APPROVED
BUDGET

BILLING
Task No. Name
Total to Date Previous Invoices This period
TOTAL[original contract ]
‐OFFICE USE ONLY‐
505 Forest AvenueLaguna Beach, CA 92651(949) 497-0362
33 INVOICE
Invoice No: 13153
Bill To: Project: Invoice Date: 7/18/2024
Page: 1
Report (Spring 2024) Invoice Seq. #: 1
Project #: 7252
Agreement No. 24-01 Purchase Order No.:

Contract Date: 2/6/2024
[email protected]
TIN No. 33-0623499
% $ % $% $
1 Kickoff and Literature Review $9,090.00 100.00% $9,090.00 0.00% $0.00 100.00% $9,090.00 2 Biological Resources Survey $57,100.00 24.00% $13,704.00 0.00% $0.00 24.00% $13,704.00 3 Biological Resources Habitat Evaluation Report $28,000.00 10.00% $2,800.00 0.00% $0.00 10.00% $2,800.00 4 Project Management $10,010.00 42.00% $4,204.20 0.00% $0.00 42.00% $4,204.20 5 Nesting Bird Surveys (Contingency) $4,640.00 0.00% $0.00 0.00% $0.00 0.00% $0.00 Subtotal $108,840.00 27.38% $29,798.20 0.00% $0.00 27.38% $29,798.20 $108,840.00 27.38% $29,798.20 0.00% $0.00 27.38% $29,798.20 Payment due within 30 days of receipt
* Services no longer requested by client. TOTAL DUE: $29,798.20 REMIT PAYMENT TO:

Corporate Office – Orange County
16431 Scientific Way $108,840.00 Approved Budget
Irvine, CA 92618‐7443 $29,798.20 This InvoiceTelephone: 949.788.4900 Facsimile: 949.788. 4901 $0.00 Previous InvoicesWebsite: www.ultrasystems.com $79,041.80 Budget Remaining Attn: Mr. David ContrerasCity of Laguna Beach505 Forest AvenueLaguna Beach, CA 92651(949) 497-0362 Biological Resources Survey and Habitat Evaluation
Environmental Consulting Services for March 01, 2024 through June 30, 2024 Task No. Name
Total to Date Previous Invoices This period
TOTAL[original contract ]
‐OFFICE USE ONLY‐
TASK

APPROVED
BUDGET

BILLING
34 INVOICE
Invoice No: 13254
Bill To: Project: Invoice Date: 11/8/2024
Page: 1
Report (Spring 2024) Invoice Seq. #: 2
Project #: 7252
Agreement No. 24-01 Purchase Order No.:

Contract Date: 2/6/2024
[email protected]
TIN No. 33-0623499
Environmental Consulting Services for October 01, 2024 through October 31, 2024 % $ % $% $
1 Kickoff and Literature Review $9,090.00 100.00% $9,090.00 100.00% $9,090.00 0.00% $0.00 2 Biological Resources Survey $57,100.00 45.50% $25,980.50 24.00% $13,704.00 21.50% $12,276.50 3 Biological Resources Habitat Evaluation Report $28,000.00 64.00% $17,920.00 10.00% $2,800.00 54.00% $15,120.00 4 Project Management $10,010.00 43.00% $4,304.30 42.00% $4,204.20 1.00% $100.10 5 Nesting Bird Surveys (Contingency) $4,640.00 0.00% $0.00 0.00% $0.00 0.00% $0.00 Subtotal $108,840.00 52.64% $57,294.80 27.38% $29,798.20 25.26% $27,496.60 $108,840.00 52.64% $57,294.80 27.38% $29,798.20 25.26% $27,496.60 Payment due within 30 days of receipt
* Services no longer requested by client. TOTAL DUE: $27,496.60 REMIT PAYMENT TO:

Corporate Office – Orange County
16431 Scientific Way $108,840.00 Approved Budget
Irvine, CA 92618‐7443 $27,496.60 This InvoiceTelephone: 949.788.4900 Facsimile: 949.788. 4901 $29,798.20 Previous InvoicesWebsite: www.ultrasystems.com $51,545.20 Budget Remaining City of Laguna BeachAttn: Mr. David Contreras Biological Resources Survey and Habitat Evaluation ‐OFFICE USE ONLY‐
505 Forest AvenueLaguna Beach, CA 92651(949) 497-0362
TASK

APPROVED
BUDGET

BILLING
Task No. Name
Total to Date Previous Invoices This period
TOTAL[original contract ]
Approved MKS 11/25/24
35 1
AMENDMENT NO. 1 TO

PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE

CITY OF LAGUNA BEACH
AND
ULTRASYSTEMS ENVIRONMENTAL INC.

1. Parties and Date.

This First Amendment to the Professional Services Agreement (“Amendment”) is made and entered into this 28th day of October, 2025 by and between the City of Laguna Beach (“City”) and UltraSystems Environmental, Inc. (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Amendment.

2. Recitals.

2.1 City and Consultant entered into that certain Professional Services Agreement dated February 6, 2025 (“Agreement”), whereby Consultant agreed to provide biological resource surveys for the habitat evaluation, categorization, and prioritization for the City’s Open Space and Conservation Element update.

2.2 The Agreement set forth a term for compensation in the amount not to exceed $108,840.

2.3 To date, City has paid Consultant a total compensation in the amount of $57,294.80.

2.4 Consultant performed some work that was not within the scope of the Agreement but nevertheless incurred costs and fees and has asked for payment from the City for the out-ofscope costs and fees at a reduced rate in the total amount of $34,450. These out-of-scope costs and fees were for drone operator bids; presentations; discovery of ESRI data, GIS research, determining background data for City files; project boundary and aerial imagery coordination; and coordination with City to define project needs.

2.5 Consultant and City now desire to amend the Agreement for the first time to resolve the out-of-scope costs and fees through City payment in the amount of $34,450 and to more clearly set forth the scope of work for Consultant, including a schedule with delivery deadlines and the costs associated with each delivery deadline, and the compensation for the remaining scope of work in the amount of $52,870.

3. Terms.

3.1 Revised Scope of Services. The Services to be provided by Consultant shall be revised by supplementing Appendix A, attached to the Agreement, with the Services set forth in Exhibit “1” attached hereto and incorporated by this reference.

3.2 Compensation. The total compensation for the services rendered by Consultant under the Agreement increase by $87,320 for a total not to exceed amount of $196,160.

Attachment 3
36 37 of 227
2 3.3 Continuing Effect of Agreement. Except as amended by this Amendment, all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment.

3.4 Adequate Consideration. The Parties stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment. Consultant further accepts the terms and conditions of this Amendment as full and final resolution of any and all claims, asserted or otherwise, arising out of or related to the subject of this Amendment and acknowledges that the compensation and/or additional time, if any, set forth herein is adequate and comprises the total compensation and/or time due for the change(s) included in this Amendment.

3.5 Counterparts. This Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.

IN WITNESS WHEREOF, the Parties hereto have executed this Amendment on the date first herein above written.

CITY OF LAGUNA BEACH ULTRASYSTEMS ENVIRONMENTAL, INC.

By: By:

Betsy A. Lindsay, President/CEO
Printed Name: Printed Name:

Title: Title:

Dated: Dated:
37 38 of 227
3 EXHIBIT 1 TO AMENDMENT NO. 1
Task 1 (2025): Post-Pilot Study Biological Resources Evaluation (8 weeks) UltraSystems will finalize the habitat evaluation through a desktop survey. The percentage of native vegetative coverage will be determined using high-resolution aerial imagery from the City.

Vegetative classifications will be determined using a combination of onsite spot checks and the classifications already listed in mapped data from the Nature Reserve of Orange County (NROC). Potential for wildlife movement will also be determined from the desktop analysis.

Developed areas, fuel modification zones, oak tree specific location data, percent cover of individual plant species, detailed waterway data, culturally significant areas, and membership rules for the manual of California Vegetation will not be applied to this task, as time and budget do not permit for this level of detail and thus will be excluded from the survey. The focus of the study will be simplified to visually record relative percent cover of native vegetation versus nonnative vegetative cover.

The desktop evaluations will be validated with spot checks throughout the project area. The pedestrian surveys will be conducted during daylight hours. Biologists will use binoculars from strategic vantage points whenever direct access is not possible. Biologists will characterize the existing vegetation communities and record incidentally observed special-status plants and wildlife, and potential wildlife corridors. The NROC data plus desktop analysis will be used as the predictor for the vegetation communities expected to be present. A yes or no will be marked if the vegetation communities match those anticipated. Otherwise, a native/non-native percentage will be applied to each. Areas with a high on-native component will be revisited by the City for discretionary permit projects that will allow for a detailed analysis of species-specific percent cover of plants and species assemblage. The focus will be fringe effects on the undeveloped lands approximately 1,000 feet from urban sprawl. These areas will be prioritized first for habitat classification during the field verification spot checks. The remainder of the natural areas will be accomplished primarily by desktop study unless an aberration is noted in the aerial imagery.

GIS will compare the analysis to previous data to determine if:
• High and Very High Value Habitat should be modified or added. • ESHA areas should be modified or added.
• Degraded Habitat (historic or recent, if possible) should be modified or added. • Habitat at Risk (Fringe-effects, proximate to developed or available development areas) should be identified.

These spatial analyses will be used to determine priority restoration areas on a graduated scale, to best identify priority candidate areas for restoration. The subcategories will be determined during the course of the project. This data will be used to prepare the Biological Resources Habitat Evaluation Report, which will summarize the field surveys and spatial analyses. The remaining survey area is approximately 3,107 acres.

Task 2: Biological Resources Habitat Evaluation Report (8 weeks) UltraSystems will prepare a biological resources evaluation report based on desktop analysis that will: 1) summarize vegetation communities; 2) summarize the habitat evaluation categories based on percent cover; 3) classify or re-classify habitat quality designations; 4) prioritize areas for restoration; 5) assess the lands susceptible to fringe-effects (e.g., fuel modification, domestic pets); 6) determine reasonable buffer distances from fringe-effect areas; 7) describe methods and results of the literature review, desktop analysis and field surveys; 8) include figures describing biological resources; and 10) provide site photographs. 38 39 of 227
4 UltraSystems will prepare and electronically submit to the City one draft report for review and comments.

After receiving one round of consolidated comments, UltraSystems will finalize the report(s) and submit one electronic copy to the City.

Deliverables:
• One electronic copy of the draft biological resources habitat evaluation report to the City. • One electronic copy of the final biological resources habitat evaluation report to the City.

Task 3: Project Management (Ongoing)
UltraSystems will provide project management services as required. Tasks include contract administration, budgeting, invoicing, scheduling, maintaining consistency of day-to-day responsibilities, client and agency coordination, and quality control to ensure the successful completion of this project.

Responses to e-mails, phone calls, comments, and other inquiries will be addressed as part of this task.
39 40 of 227

STAFF REPORT
Meeting Date:

October 28, 2025

APPEALS
A
SUBJECT: APPEAL OF DESIGN REVIEW BOARD’S APPROVAL OF DESIGN REVIEW 24- 1151 AND COASTAL DEVELOPMENT PERMIT 24-1152, FOR ADDITIONS AND

REMODEL OF AN EXISTING SINGLE-FAMILY DWELLING, NEW TWO-CAR

GARAGE, ELEVATED DECK ADDITIONS, GRADING, LANDSCAPING, NEW

POOL AND SPA, AND A NEW ATTACHED ACCESSORY DWELLING UNIT, AND VARIANCE 24-1153 FOR ADDITIONS INTO THE FRONT YARD, REAR

YARD, AND ADDITIONAL BUILDING SETBACKS, AND A NEW POOL IN THE FRONT YARD SETBACK AT 31731 SEACOVE DRIVE IN THE R-1,

RESIDENTIAL LOW-DENSITY 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 public hearing on the appeal to January 13, 2026; and

2. Find the Project categorically exempt under CEQA Guidelines Section 15061(b)(3).

SUMMARY OF THE MATTER
Three appeals of the Design Review Board’s approval of Design Review 24-1151, Coastal Development Permit 24-1152, and Variance 24-1153 located at 31731 Seacove Drive were filed with the City Clerk, two on August 4, 2025, and one on August 6, 2025. To continue the public hearing on the appeal without resending 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 September 23, 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 January 13, 2026, City Council meeting.

FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.

ENVIRONMENTAL ANALYSIS
1 of 4
APPEAL OF DESIGN REVIEW BOARD’S APPROVAL OF DESIGN REVIEW 24-1151 AND COASTAL DEVELOPMENT PERMIT 24-1152, FOR ADDITIONS AND REMODEL OF AN

EXISTING SINGLE-FAMILY DWELLING, NEW TWO-CAR GARAGE, ELEVATED DECK

ADDITIONS, GRADING, LANDSCAPING, NEW POOL AND SPA, AND A NEW ATTACHED ACCESSORY DWELLING UNIT, AND VARIANCE 24-1153 FOR ADDITIONS INTO THE

FRONT YARD, REAR YARD, AND ADDITIONAL BUILDING SETBACKS, AND A NEW POOL IN THE FRONT YARD SETBACK AT 31731 SEACOVE DRIVE IN THE R-1, RESIDENTIAL

LOW-DENSITY ZONE, AND FINDING THE PROJECT CATEGORICALLY EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION 15301 (CLASS 1)
October 28, 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 (Pgs. 3-4)
Submitted By: Matthew Schneider
Matthew Schneider, Director of Community
Development
Approved:

Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Heather Steven, Senior Planner Anthony Viera, Planning Manager 2 of 4
Attachment 1
3 3 of 4
4 4 of 4

STAFF REPORT
Meeting Date:

October 28, 2025

APPEALS
B
SUBJECT: APPEAL OF COMMUNITY DEVELOPMENT DIRECTOR 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 public hearing on the appeal to November 18, 2025; and

2. Find the Project categorically exempt under CEQA Guidelines Section 15061(b)(3).

EXECUTIVE SUMMARY
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 September 23, 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 November 18, 2025, City Council meeting.

FINANCIAL ANALYSIS
There is no financial impact resulting from the continuance.

ENVIRONMENTAL ANALYSIS
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 (Pgs. 3-4)
1 of 8
APPEAL OF THE APPROVAL OF DR 25-0891 AT 31421 HOLLY DRIVE October 28, 2025

Submitted By: Matthew Schneider
Matthew Schneider, Director of
Community Community Development
Approved:

Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Daniel Latham, Associate Planner Pat Donegan, Assistant City Attorney Anthony Viera, Planning Manager
2 of 8
From: McKay, Ann Marie CC
To: Latham, Daniel CD; Viera, Anthony CD
Cc: Baldridge, Cheryl CC; Rodrigues, Bill CD; Schneider, Matthew CD Subject: FW: Appeal of 31421 Holly Drive
Date: Tuesday, October 14, 2025 9:33:35 AM
Attachments: image001.png
See below request.

Best,
Well-Being Notice: Receiving this email outside of normal working hours? Managing work and life responsibilities is unique for everyone. I have sent this email at a time that works for me. Please respond at a time that works for you.

From: steve kawaratani <[email protected]>
Sent: Tuesday, October 14, 2025 8:24 AM
To: McKay, Ann Marie CC <[email protected]>
Cc: Baldridge, Cheryl CC <[email protected]> Subject: Appeal of 31421 Holly Drive
[NOTICE: This message originated outside of City of Laguna Beach -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.] Good morning, Ann Marie,
I am respectfully requesting a continuance for the City Council appeal of 31421 Holly Drive, scheduled for October 28, 2025, as I will be unable to attend the hearing due to a personal matter out of state. I am currently in discussion with the applicant’s architect in an effort to resolve the matter prior to the hearing.

We request that the appeal be heard at the next available City Council meeting that accommodates the Council’s calendar.

Attachment 1
3 3 of 8
Sincerely,
Steve Kawaratani
4 4 of 8

STAFF REPORT
Meeting Date:

October 28, 2025
APPEAL
C
SUBJECT: APPEAL OF DESIGN REVIEW BOARD APPROVAL OF DESIGN REVIEW 24- 2113 FOR MODIFICATIONS TO A PREVIOUSLY APPROVED LANDSCAPE PLAN FOR AN EXISTING SINGLE-FAMILY DWELLING AT 1813 TEMPLE HILLS DRIVE LOCATED IN THE R-1, RESIDENTIAL LOW-DENSITY ZONE,

AND CATEGORICAL EXEMPTION UNDER THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION 15304 (CLASS 4) RECOMMENDATION: It is recommended that the City Council:

1. Open the public hearing, take public testimony, and continue the public hearing to the November 18, 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.

SUMMARY OF THE MATTER
On February 13, 2025, the Design Review Board conditionally approved Design Review 24-1151 for modifications to a previously approved landscape plan associated with an existing single-family dwelling at 1813 Temple Hills Drive. On April 3, 2025, an appeal was filed by Rhett and Sherry Schiffman.

City staff recommends that the City Council open the public hearing, take public testimony, and continue the public hearing until the November 18, 2025, City Council meeting. City staff does not intend to provide a staff report at this October 28, 2025, City Council meeting.

FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.

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.
1 of 10
APPEAL OF THE APPROVAL OF DR 24-2113 AT 1813 TEMPLE HILLS DRIVE October 28, 2025

ATTACHMENTS
None
Submitted By: Matthew Schneider Approved: .David A Kiff Matthew Schneider, Director of
Community Development
Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Shaveta Sharma, Senior Planner Anthony Viera, Planning Manager Patrick Donegan, Assistant City Attorney
2 of 10