68 69 of 100
Task 7 Quality Control, Constructability
Reviews, Daily Reports Tech 175 $ 100 112 112 95 114 733 $ 163,275
7.1 Implement and Maintain Quality Control Procedures Tech $ 175 10 16 16 10 10 62 $ 10,850
7.2 Perform Quality Assurance Reviews Regularly, monitor contractors work Tech $ 175 10 16 16 10 10 62 $ 10,850
7.3 Develop & Maintain a Deficiency Log Tech $ 175 16 16 16 10 10 68 $ 11,900
7.5 Document Site Conditions Periodically Tech $ 175 4 4 4 44 20 $ 3,500
7.6 Draft & Issue Daily Reports (day) Tech $ 175 20 20 20 16 20 296 $ 51,800
8.1 Draft & Issue Report (night) Tech $ 175 - - - 520 25 $ 4,375
8.2 Field Technician - Concrete Sampling & Testing Tech $ 175 - - - -- 0 $ -
8.3 Special Inspector - Concrete and Masonry Tech $ 175 - - - -- 0 $ -
8.4 Special Inspector - Welding and Bolting Tech $ 175 - - - -- 0 $ -
8.5 Sample Pick UP Tech $ 175 - - - -- 0 $ -
8.6 Laboratory Testings Tech $ 175 - - - -- 0 $ -
8.7 Project Management, Coordinations & Technical Support Tech $ 175 - - - -- 0 $ -
8.8 Report Preparation Tech $ 175 - - - -- 0 $ -
8.9 Final Report Tech $ 175 - - - -- 0 $ -
8.1 Additional Inspector Hours Per Addendum #1 Tech $ 350 40 40 40 40 40 200 $ 70,000 Task 6 Labor Compliance Administrar LCA 125 $ 16 16 16 16 16 80 $ 10,000
6.1 Labor Compliance Audits LCA $ 125 16 16 16 16 16 80 $ 10,000 Task 8 Site Safety & Traffic Control Tech 175 $ 58 58 58 58 58 290 $ 50,750
10.1 Review Contractor's Site Safety Procedures, Provide Comments Tech $ 175 10 10 10 10 10 50 $ 8,750
10.2 Monitor Contractors Compliance with Established Safety Programs Tech $ 175 16 16 16 18 18 84 $ 14,700
10.3 Investigate and Report Safety Incidents (assuming 2 incidents) Tech $ 175 4 4 4 22 16 $ 2,800
10.4 Evaluate the Traffic Controls to ensure safe traffic handling Tech $ 175 28 28 28 28 28 140 $ 24,500 Task 9 Punch Walk & Close Out SPM 195 $ 2 2 2 2210 $ 1,950
12.1 Draft Preliminary Punch List, Distribute to the Contractor SPM $ 195 0 0 0 00 0 $ -
12.2 Ensure the Contractor Corrects the Preliminary Punch List SPM $ 195 0 0 0 00 0 $ -
12.3 Schedule and Conduct Meeting for Client & Stakeholder for Sign Offs SPM $ 195 0 0 0 00 0 $ -
12.4 Process Contractor's Request to Release Retention SPM $ 195 0 0 0 00 0 $ -
12.5 Collect Required Certifications, Leases, Guarantees, Warranties, etc. SPM $ 195 0 0 0 00 0 $ -
12.6 Review All Redlines and As Built Drawings SPM $ 195 2 2 2 22 10 $ 1,950 Task 10 Final Project Report SPM 195 $ 0 0 0 06 6 $ 1,170 13.1 Prepare the Final Project Report SPM $ 195 0 0 0 06 6 $ 1,170
13.2 Certified Payroll Record Close-out SPM $ 195 0 0 0 00 0 $ -
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STAFF REPORT
Meeting Date:
January 13, 2026
NON APPEAL
12 SUBJECT: PUBLIC HEARING AND BALLOTING FOR PROPOSED UNDERGROUND UTILITY ASSESSMENT DISTRICT 2021-3 (FAIRVIEW/LA BREA)
RECOMMENDATION: It is recommended that the City Council:
1. Receive and file the proposed Undergrounding Utility Assessment District 2021-3 report;
2. Open the public hearing for public comments;
3. Call for submittal of any final ballots, and close the public hearing;
4. Direct staff to proceed with tallying ballots in City Hall, Conference Room A, and invite the public to observe the tallying process;
5. Postpone the item until the ballot tally is complete and then resume the meeting on the item, asking staff to report the ballot results;
6. Review the balloting results, and if the majority of weighted ballots are in favor of the proposed assessment district; then:
a. Adopt the attached Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LAGUNA BEACH, CALIFORNIA, DECLARING THE RESULTS OF
THE ASSESSMENT BALLOTING PROCEEDING, CONFIRMING ASSESSMENTS IN UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 2021-3, ORDERING THE
PROPOSED IMPROVEMENTS TO BE MADE, TOGETHER WITH
APPURTENANCES, APPROVING THE ENGINEER’S REPORT, AND DESIGNATING
THE FINANCE DIRECTOR OR THE CITY TREASURER TO COLLECT AND RECEIVE MONEY”;
b. Adopt the attached Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LAGUNA BEACH, CALIFORNIA, AWARDING THE CONTRACT FOR
CONSTRUCTION OF IMPROVEMENTS IN UNDERGROUND UTILITY
ASSESSMENT DISTRICT NO. 2021-3 SUBJECT TO RECEIPT OF BOND PROCEEDS
AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT”, awarding a construction contract to Hot Line Construction in the amount not to exceed $2,807,414;
c. Appropriate $474,580 for the General Benefit cost from the Wildfire Mitigation and Fire Safety Fund prior to bonds being sold;
d. Appropriate $474,580 as a separate City Contribution from the Wildfire Mitigation and Fire Safety Fund prior to bonds being sold; and
e. Authorize the City Manager to approve project related expenses and construction change orders for unforeseen circumstances for an amount not-to-exceed $280,742.
OR
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7. If there is not a majority of weighted ballots in favor of the proposed assessment district, then declare the proposed Underground Utility Assessment District 2021-3 (Fairview/La Brea) abandoned for lack of majority support.
SUMMARY OF THE MATTER
The purpose of the public hearing is to determine whether proposed Underground Utility Assessment District 2021-3 (Fairview/La Brea) shall be either formed or abandoned.
The report outlines the final steps in the Proposition 218 process for the proposed Underground Assessment District 2021-3 (Fairview/La Brea), which would underground existing overhead utility lines in the neighborhood. Property owners received ballots in October 2025. Any ballots not yet submitted may be delivered to the City Clerk during the public hearing. The public hearing also provides interested persons the opportunity to comment on the proposed district and assessments. The City Clerk will tally all submitted ballots at the close of the hearing.
If a majority of the weighted ballots are in favor, staff recommends the City Council adopt two resolutions:
(1) confirming the assessments, ordering the improvements, and approving the final Engineer’s Report; and (2) awarding a construction contract to Hot Line Construction for $2,807,414, subject to receipt of bond proceeds. The project would be funded by property owner assessments, a General Benefit contribution of $474,580, and a separate and additional City contribution of $474,580, both funded through contributions from the Wildfire Mitigation and Fire Safety Fund.
Based on prior experience with other underground utility assessment districts, staff recommends that any resulting bonds be issued through a public bond offering with a 25-year term, which is consistent with recent undergrounding projects in Woods Cove and West Street.
Alternative: If a majority of weighted ballots are opposed, the City Council must declare the proposed district abandoned.
DISCUSSION
On October 28, 2025, the City Council declared its intent to form the proposed assessment district for the undergrounding of existing overhead utility lines for portions of the Fairview/La Brea neighborhood. At the same time, the City Council approved the Preliminary Engineer’s Report for the proposed assessments, acknowledged the intent to contribute $474,580 for the General Benefit cost, approved an additional $474,580 City Contribution to the project upon request from the district proponents, and set a public hearing for January 13, 2026, to tally the cast assessment ballots.
The public hearing provides interested persons the opportunity to comment on the project and on the proposed assessments. At the conclusion of the public hearing, any ballots not yet submitted to the City Clerk will be collected and ballots will be tallied. If the majority of weighted ballots are in favor of the proposed assessment district, then the City Council may proceed with the formation of the district. If there 2 of 25
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is a weighted majority in opposition, then the City Council cannot proceed with the proposed district and shall declare it abandoned for lack of majority support. The process for conducting the public hearing and taking final action is outlined below.
Proposition 218 Balloting Process
In compliance with the provisions of Proposition 218 (The Right to Vote on Taxes Act), notices and official assessment ballots were mailed to the property owners of the assessable parcels (as shown on Attachment 1, District Boundary Map) within the proposed district. The notice advised property owners of the proposed assessment amounts (as documented in Attachment 1, Assessment Roll) and of the date, time, and location for the public hearing. If, at the conclusion of the public hearing, it is determined that a majority of the assessment ballots returned, as weighted by the assessment amounts, are in favor of the district, the City Council may approve a resolution to confirm the assessments for the district (Attachment 2), and also approve a resolution awarding a construction contract for the work contingent on the sale of bonds and receiving the bond proceeds (Attachment 3). However, if the majority of the assessment ballots, as weighted by the assessment amounts, are in opposition to the project, then the City Council will be precluded from proceeding with the proposed district formation. Property owners have until the close of the public hearing to submit their ballots.
Construction Contract
If balloting is in favor of the assessment district, then a construction contract can be awarded, contingent on the sale of bonds and the receipt of bond proceeds. On May 19, 2025, construction bids were received from five bidders as follows:
Bidder Bid Amount
Hot Line Construction, Inc. $2,807,414
Outsource Utility Contractor, LLC $2,952,760
Asplundh Construction, LLC $3,026,478
Herman Weissker, Inc. $4,541,192
HP Communications, Inc. $5,506,816
The low bidder, Hot Line Construction, is properly licensed and qualified to perform the work. Hot Line Construction has performed similar utility undergrounding work in the City for Crestview Drive Underground Utility Assessment District 2014-1, Diamond Street Undergrounding Utility Assessment District 2013-2, and the in-progress Woods Cove Underground Utility Assessment District 2014-2. If the assessment district proceeds, then it is recommended that the City Council adopt the resolution awarding a contract to the lowest responsive and responsible bidder, Hot Line Construction, based on their original bid in the amount of $2,807,414. It is also recommended that the City Manager be authorized to approve projectrelated expense and construction change orders for unforeseen circumstances in the amount not-to-exceed $280,742. Construction costs will be funded by assessments levied on the properties within the assessment district, from a General Benefit contribution of $474,580, and a separate contribution of $474,580 provided by the City.
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Legal Process
The City Attorney has reviewed the attached resolutions. If the majority of weighted ballots are in favor of the proposed assessment district, the City Council may adopt the following resolutions:
• A Resolution of the City Council confirming assessments in Underground Utility Assessment District 2021-3 (Fairview/La Brea), ordering the proposed improvements to be made, and designating the Finance Director or the City Treasurer to collect and receive money. • A Resolution of the City Council awarding the contract for construction of improvements in Underground Utility Assessment District 2021-3 (Fairview/La Brea) subject to receipt of bond proceeds.
If the majority of weighted ballots are in opposition to the proposed assessment district, the City Council should declare the proposal abandoned for lack of majority support.
Future Actions
If the City Council determines to form the assessment district, the City Clerk and the City Treasurer will prepare a Notice of Recording of Assessment and Cash Collection Period, which will be mailed to each property owner in the district. The notice will advise property owners that a lien will be placed on their property to cover the costs of the improvement, unless they choose to pay their assessment during the 30- Day Cash Collection Period. Concurrently, staff will determine how many property owners apply and qualify for the Assessment Deferment Loan Program. After the cash collection period ends, and the number of applicants who qualify for the deferment loan program is known, the bond issuance process will commence. It is anticipated that the project would then return to City Council in April 2026 for consideration of bond sales and appropriations for the project. Construction would begin in May or June 2026.
FINANCIAL ANALYSIS
On October 28, 2025, the City Council approved a contribution of $949,160 if the project is approved at the public hearing and final balloting. It is recommended to appropriate this amount from the Wildfire Mitigation and Fire Safety Fund resulting in a total contribution of $949,160. If the appropriation is approved, then $2.7 million will be remaining in the Wildfire Mitigation and Fire Safety Fund’s available fund balance to fund other projects. The current fund balance available for appropriation is If there is not a majority of weighted ballots in favor of the proposed assessment district, an appropriation will not be required, and the project will be abandoned.
ENVIRONMENTAL ANALYSIS
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The formation of an undergrounding district is exempt from CEQA pursuant to state CEQA Guidelines, section 15302 (Replacement or Reconstruction) as it consists of the possible formation of an undergrounding utility assessment district to fund the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced, including but not limited to: (1) conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding; and (2) replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity. Here, the formation of an undergrounding district involves the possible formation of an undergrounding utility assessment district to fund the reconstruction of an electric utility system by removing above ground utilities and reconstructing them below ground. The new undergrounding system will be located on the same site and will have substantially the same purpose and capacity (i.e., providing electricity to structures). The undergrounding district, if approved, involves the removal of 27 utility poles and undergrounding of approximately 3,100 linear feet of overhead wires and therefore constitutes conversion of overhead electric utility distribution system facilities to underground. Further the formation of an undergrounding district involves the following aboveground equipment to be installed to accommodate the undergrounding: riser poles, vent standpipes, guy anchors, street light cabinets, pedestals, and street lights. The formation of an undergrounding district is also categorically exempt from CEQA under the following State CEQA Guidelines, Sections 15301(b) and 15303(d). Section 15301(b) exempts projects that pertain to existing facilities of both investor and publicly owned utilities used to provide electric power, natural gas, sewerage, or other public utility services. Here, the formation of an undergrounding district is exempt under Section 15301(b) because it consists of existing facilities providing electric power with no expansion of use. Section 15303(d) exempts projects that pertain to construction and location of limited new, small facilities or structures, including water main, sewage, electrical, gas, and other utility extensions, including street improvements, of reasonable length to serve such construction. Here, the formation of an undergrounding district is exempt under Section 15303(d) because it consists of new construction of small utility facilities or structures. Further, none of the exceptions outlined in State CEQA Guidelines section 15300.2 apply. The location of the undergrounding district site does not contain any environmentally sensitive areas as a majority of the parcels are developed.
There will be no cumulative impact resulting from successive projects of the same type in the same place, over time. Any future utility undergrounding projects would occur in areas outside of the Project area. There are no unusual circumstances resulting in a significant impact on the environment because trenching will occur in existing, paved roadways. There will be no damage to scenic resources, including trees, historic buildings, rock outcroppings or similar resources, within a highway officially designated as a state scenic highway; all trenching will occur in existing, paved roadways and the removal of the above ground utility systems will improve resources both in terms of safety and aesthetics. Further the undergrounding district is not near an officially designated state scenic highway. It is not located on a hazardous waste site, or any other site included on a list compiled pursuant to Government Code Section 65962.5. The formation of an undergrounding district will not result in significant adverse impacts to historical resources as defined by CEQA as it is occurring in existing, paved roadways and not within a close proximity to any known historical resources. Consequently, additional environmental analysis is not necessary to meet the requirements of the CEQA. If the City Council agrees, staff will cause to be filed a Notice of Exemption (NOE) with the County Recorder’s Office and State Clearinghouse should the Project receive final 6 of 25
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approval. In the alternative, the formation of an undergrounding district consists of the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; CEQA Guidelines, section 15378(b)(4).) Finally at the December 4, 2024 Planning Commission meeting, the City previously conducted environmental review for the proposed undergrounding project and determined that the project was exempt under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301(b), which authorizes an exemption for “existing facilities providing electric power with no expansion of use”; Sections 15302(c) and (d) for the “replacement or reconstruction of existing utility systems involving negligible or no expansion of capacity, and conversion of overhead electric utility distribution system facilities to underground”; and Section 15303(d) involving “new construction of small utility facilities or structures.” More detailed environmental analysis can be found in that December 4, 2024, Planning Commission approval. There have been no changes to the Project, no changed circumstances, and no new information that could not previously have been known, that would trigger the need for subsequent CEQA review.
ATTACHMENTS
1. Assessment District Information (Pgs. 7-9)
2. Resolution Confirming Assessments (Pgs. 10-19)
3. Resolution Awarding Construction Contract (Pgs. 20-24) 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 Michelle Bannigan, Finance Director
Patrick Donegan, Assistant City Attorney
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City of Laguna Beach
Fairview/La Brea Underground Utility Assessment District (AD 2021-3) Preliminary Engineer's Report
November 4, 2025 | 21
Attachment 1
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City of Laguna Beach
Fairview/La Brea Underground Utility Assessment District (AD 2021-3) Preliminary Engineer's Report
November 4, 2025 | 27
Property
Address
Asmt
No.
Assessor's Parcel
Number
Parcel
Area (sf)
Assigned
Connections
Aesthetics
Benefit
(YES/NO)
Aesthetics
Benefit Area
Safety
Benefit
(YES/NO)
Safety
Benefit
Area
Reliability
Benefit
(YES/NO)
Reliability
Benefit Area
Assessed
Benefit Area
Total Design,
Construction, &
Contingency Costs
Incidental
Expenses
Financial
Costs
Contribution
from Other
Sources
Preliminary
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 $ (10,546.21) $ 30,944.82 266 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 $ (10,546.21) $ 30,944.82 260 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 $ (10,546.21) $ 30,944.82 254 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 $ (10,546.21) $ 30,944.82 246 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 $ (10,546.21) $ 30,944.82 234 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 $ (10,546.21) $ 30,944.82 232 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 $ (10,546.21) $ 30,944.82 222 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 $ (10,546.21) $ 31,094.54 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 $ (10,546.21) $ 30,337.84 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 $ (10,546.21) $ 41,133.30 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 $ (10,546.21) $ 41,133.30 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 $ (10,546.21) $ 49,630.99 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 $ (10,546.21) $ 41,133.30 219 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 $ (10,546.21) $ 50,840.90 231 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 $ (10,546.21) $ 50,844.94 241 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 $ (10,546.21) $ 50,844.94 243 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 $ (10,546.21) $ 50,840.90 251 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 $ (10,546.21) $ 50,844.94 261 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 $ (10,546.21) $ 50,844.94 265 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 $ (10,546.21) $ 50,844.94 271 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 $ (10,546.21) $ 50,844.94 285 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 $ (10,546.21) $ 50,844.94 291 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 $ (10,546.21) $ 50,844.94 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 $ (10,546.21) $ 29,254.03 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 $ (10,546.21) $ 29,254.03 290 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 $ (10,546.21) $ 50,844.94 278 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 $ (10,546.21) $ 50,844.94 276 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 $ (10,546.21) $ 50,844.94 264 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 $ (10,546.21) $ 51,755.41 256 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 $ (10,546.21) $ 51,443.83 246 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 $ (10,546.21) $ 51,160.57 238 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 $ (10,546.21) $ 50,387.69 232 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 $ (10,546.21) $ 50,387.69 222 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 $ (10,546.21) $ 50,391.73 214 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 $ (10,546.21) $ 50,391.73 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 $ (10,546.21) $ 41,133.30 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 $ (10,546.21) $ 49,630.99 980 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 $ (10,546.21) $ 50,250.10 215 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 $ (10,546.21) $ 50,844.94 223 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 $ (10,546.21) $ 50,844.94 231 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 $ (10,546.21) $ 50,844.94 239 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 $ (10,546.21) $ 50,844.94 247 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 $ (10,546.21) $ 50,844.94 253 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 $ (10,546.21) $ 50,844.94
ASSESSMENT CALCULATIONS
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Fairview/La Brea Underground Utility Assessment District (AD 2021-3) Preliminary Engineer's Report
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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
Preliminary
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 $ (10,546.21) $ 50,844.94 267 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 $ (10,546.21) $ 50,844.94 275 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 $ (10,546.21) $ 50,840.90 283 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 $ (10,546.21) $ 50,844.94 291 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 $ (10,546.21) $ 50,844.94 295 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 $ (10,546.21) $ 50,719.50 294 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 $ (10,546.21) $ 50,840.90 290 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 $ (10,546.21) $ 69,054.27 274 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 $ (10,546.21) $ 69,054.27 262 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 $ (10,546.21) $ 50,844.94 254 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 $ (10,546.21) $ 50,844.94 246 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 $ (10,546.21) $ 50,840.90 240 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 $ (10,546.21) $ 50,844.94 230 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 $ (10,546.21) $ 50,844.94 222 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 $ (10,546.21) $ 30,942.80 216 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 $ (10,546.21) $ 30,944.82 212 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 $ (10,546.21) $ 50,844.94 200 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 $ (10,546.21) $ 40,141.90 925 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 $ (10,546.21) $ 44,016.44 172 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 $ (10,546.21) $ 55,397.28 156 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 $ (10,546.21) $ 55,397.28 134 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 $ (10,546.21) $ 55,397.28 128 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 $ (10,546.21) $ 55,397.28 940 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 $ (10,546.21) $ 22,425.53 960 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 $ (10,546.21) $ 16,734.10 165 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 $ (10,546.21) $ 55,397.28 175 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 $ (10,546.21) $ 55,397.28 985 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$ $ (10,546.21) $ 100,920.60 166 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 $ (10,546.21) $ 44,775.17 174 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 $ (10,546.21) $ 54,486.81 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 $ (10,546.21) $ 49,596.59 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 $ (10,546.21) $ 49,630.99 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 $ (10,546.21) $ 41,133.30 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 $ (10,546.21) $ 41,133.30 161 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 $ (10,546.21) $ 56,914.72 145 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 $ (10,546.21) $ 56,914.72 135 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 $ (10,546.21) $ 56,914.72 115 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 $ (10,546.21) $ 29,496.82 124 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 $ (10,546.21) $ 56,914.72 136 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 $ (10,546.21) $ 56,914.72 142 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 $ (10,546.21) $ 56,914.72 160 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 $ (10,546.21) $ 56,914.72 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 $ (10,546.21) $ 48,497.96 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 $ (10,546.21) $ 49,630.99 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 $ (10,546.21) $ 48,471.66 167 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 $ (10,546.21) $ 56,914.72 TOTALS 432,582.63 4,359,669.36 386,126.10 505,564.00 -949,159.09 4,302,200.37
ASSESSMENT CALCULATIONS
9 10 of 25
RESOLUTION NO. 26.XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, DECLARING THE RESULTS
OF THE ASSESSMENT BALLOTING PROCEEDING,
CONFIRMING ASSESSMENTS IN UNDERGROUND UTILITY
ASSESSMENT DISTRICT NO. 2021-3, ORDERING THE
PROPOSED IMPROVEMENTS TO BE MADE, TOGETHER
WITH APPURTENANCES, APPROVING THE ENGINEER’S
REPORT, AND DESIGNATING THE FINANCE DIRECTOR OR
THE CITY TREASURER TO COLLECT AND RECEIVE MONEY
WHEREAS, by Resolution No. 25.084 heretofore adopted on October 28, 2025, the City Council of the City of Laguna Beach (City) declared its intention to order the work to be done and the improvements to be made as described in that resolution in an assessment district to be designated Underground Utility Assessment District No. 2021-3, as shown and designated on that certain map entitled "Proposed Boundary of Fairview/La Brea Underground Utility Assessment District No. 2021-3, City of Laguna Beach, County of Orange, State of California" on file in the office of the City Clerk; and
WHEREAS, the City Council in and by Resolution No. 25.084 referred the work, acquisitions, and improvements to NV5 as Engineer of Work, and directed it to make and file with the City Clerk a preliminary report in writing (Engineer’s Report); and WHEREAS, by Resolution No. 25.085, the City Council preliminarily approved the Engineer's Report and fixed Tuesday, January 13, 2026, at 5:00 p.m. in the chambers of the City Council, City Hall, 505 Forest Avenue, Laguna Beach, California, as the time and place for a public hearing for hearing comments regarding the proposed acquisitions and improvements, the extent of the assessment district, and the proposed assessment, and provided for mailed notice of the public hearing; and
WHEREAS, on October 28, 2025, the City Council declared its intent to contribute Attachment 2
10 11 of 25
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approximately $474,580 as an additional City Contribution received by the public-at large that the City has chosen not to assess to the parcels within the district, and project costs were reduced and are reflected in the final Engineer’s Report on file with the City Clerk; and WHEREAS, the proposed undergrounding project is categorically exempted from further review under the California Environmental Quality Act pursuant to the provisions of the State CEQA Guidelines Sections 15301(b), 15302(c) and (d), and 15303(d); and WHEREAS, Design Review 24-2286 was approved by the Planning Commission on December 4, 2024, for the placement of aboveground utility structures associated with the proposed utility undergrounding improvements, and the project was found to conform with the general plan, including the certified local coastal program and any applicable specific plans; and WHEREAS, the City Clerk filed with the City Council a declaration setting forth the time and manner of compliance with the requirements for mailing notices of the passage of Resolution No. 25.085 and of the time and place for the aforementioned public hearing for hearing comments regarding the proposed acquisitions and improvements, together with the assessment ballot required by Article XIIID of the California Constitution and California Government Code Section 53753, and the City Council hereby finds that notice of the passage of that resolution and of the time and place for hearing comments regarding the proposed acquisitions and improvements have been mailed in the time, form, and manner required by law; and WHEREAS, the public hearing was duly held by the City Council at the time and place for the hearing of all comments on the proposed work and improvements; and WHEREAS, at the time and place fixed for the public hearing, the Engineer of Work submitted the final Engineer’s Report, which was prepared and contained all the matters and items called for pursuant to the provisions of the Municipal Improvement Act of 1913, being Division 11 12 of 25
-3- Reso. #26.XXX
12 of the Streets and Highways Code of the State of California, including plans and specifications of the proposed improvement, a general description of work, appliances or property to be acquired, an estimate of the costs of the improvements and of land, rights of way, easements, and incidental expenses in connection with the improvements, a diagram showing the assessment district and the boundaries and dimensions of the subdivisions of land within the assessment district as they were expected at the time the resolution was adopted, a proposed assessment of the total amount of the costs and expenses of the proposed improvements upon the several subdivisions of land in the assessment district in proportion to the estimated benefits to be received by such subdivisions from the improvements and a proposed maximum annual assessment for administration and collection of assessments; and
WHEREAS, the final Engineer’s Report has been made a part of the record of these proceedings and is on file in the office of the City Clerk; and WHEREAS, at the public hearing, comments were received, the City Council closed the public hearing, and the assessment ballots submitted by the record owners of the properties within the proposed assessment district received prior to the close of the public hearing have been tabulated by the City Clerk, acting as the tabulation official appointed by the City Council, all in the manner provided by law; and
WHEREAS, the City Clerk has prepared and submitted to this City Council a Certificate of Tabulation Official and Statement of Assessment Ballots Submitted, a copy of which is attached as Exhibit A hereto and incorporated herein by this reference, which reflects the results of the tabulation of the assessment ballots; and
WHEREAS, the majority of the assessment ballots cast, weighted by the amount of the assessments represented thereby, were in favor of the formation of the assessment district and levy 12 13 of 25
-4- Reso. #26.XXX
of the assessment as set forth in the final Engineer’s Report; and WHEREAS, the City Council thereupon acquired jurisdiction to order the proposed improvements to be made.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:
SECTION 1. The recitals above are true and correct and are incorporated herein by this reference.
SECTION 2. The City Council hereby finds and declares that the public interest and necessity require the construction of the Improvements, as hereinafter described, and the City Council hereby declares its intention to order the Improvements and to form an assessment district covering the real property benefited by said Improvements.
SECTION 3. The City Council hereby confirms the proposed assessment in the amount of $4,302,201 and declares that the final Engineer’s Report, including the plans, specifications, description of acquisitions, estimate of the cost of the improvements, assessments, boundary map, and diagram are hereby finally adopted, accepted, confirmed, and approved.
SECTION 4. The City Council hereby confirms that a cost in the amount of $474,580 for the general benefits of the assessment district received by the public at large, which cost cannot be assessed to the parcels within the district, and $474,580 as a separate City Contribution received by the public at large that the City has chosen not to assess to the parcels within the district, will be paid for by the City of Laguna Beach.
SECTION 5. Based upon the Engineer’s Report and the testimony and other evidence received at the public hearing, it is hereby determined that:
A. The Engineer's Report identifies all properties within the boundaries of the 13 14 of 25
-5- Reso. #26.XXX
assessment district that receive a special benefit from the Improvements; B. The proportionate special benefit derived by each parcel proposed to be assessed has been determined in relationship to the entirely of the cost of construction of the Improvements;
C. No assessment is proposed to be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit to be conferred on such parcel from the Improvements;
D. Only special benefits have been assessed; and
E. All parcels within the boundaries of the assessment district receiving special benefit are being assessed.
SECTION 6. The City Council hereby orders the work, acquisitions, and improvements described in Resolution No. 25.085 and in the Engineer’s Report, as modified, to be done and made.
SECTION 7. The City Clerk shall transmit to the Superintendent of Streets/City Engineer of the City of Laguna Beach the diagram and assessment, as amended and modified, and the Superintendent of Streets/City Engineer is hereby directed to record the diagram and assessment in his or her office in a substantial book kept for that purpose; and, in addition, the City Clerk is to record forthwith a Notice of Assessment in the Office of the Recorder, County of Orange, and upon the date of such recordation in the Recorder's office, the assessment shall become a lien upon the lands upon which it is levied, and upon the date of recordation in the Superintendent of Street's/City Engineer’s office, the assessment shall become due and payable, all pursuant to the Municipal Improvement Act of 1913.
SECTION 8. The City Treasurer or the Finance Director, as determined by the City Manager of the City of Laguna Beach, is hereby designated to collect, and receive the money paid 14 15 of 25
-6- Reso. #26.XXX
pursuant to the assessment during the cash collection period, in the manner prescribed by law.
SECTION 9. The City Clerk and/or the City Treasurer, as appropriate, are hereby directed to give notice of the improvement by mailing and publishing notice in the manner set forth in California Streets and Highways Code Section 10404 to the owners of the real property within the assessment district assessed thereby.
SECTION 10. The formation of an undergrounding district is exempt from CEQA pursuant to state CEQA Guidelines, section 15302 (Replacement or Reconstruction) as it consists of the possible formation of an undergrounding utility assessment district to fund the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced, including but not limited to: (1) conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding; and (2) replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity. Here, the formation of an undergrounding district involves the possible formation of an undergrounding utility assessment district to fund the reconstruction of an electric utility system by removing above ground utilities and reconstructing them below ground. The new undergrounding system will be located on the same site and will have substantially the same purpose and capacity (i.e., providing electricity to structures). The undergrounding district, if approved, involves the removal of 27 utility poles and undergrounding of approximately 3,100 linear feet of overhead wires and therefore constitutes conversion of overhead electric utility distribution system facilities to underground. Further the formation of an undergrounding district involves the following aboveground equipment to be installed to 15 16 of 25
-7- Reso. #26.XXX
accommodate the undergrounding: riser poles, vent standpipes, guy anchors, street light cabinets, pedestals, and street lights.
The formation of an undergrounding district is also categorically exempt from CEQA under the following State CEQA Guidelines, sections 15301(b) and 15303(d). Section 15301(b) exempts projects that pertain to existing facilities of both investor and publicly owned utilities used to provide electric power, natural gas, sewerage, or other public utility services. Here, the formation of an undergrounding district is exempt under Section 15301(b) because it consists of existing facilities providing electric power with no expansion of use. Lastly, Section 15303(d) exempts projects that pertain to construction and location of limited new, small facilities or structures, including water main, sewage, electrical, gas, and other utility extensions, including street improvements, of reasonable length to serve such construction. Here, the formation of an undergrounding district is exempt under Section 15303(d) because it consists of new construction of small utility facilities or structures.
Further, none of the exceptions outlined in State CEQA Guidelines section 15300.2 apply.
The location of the undergrounding district site does not contain any environmentally sensitive areas as a majority of the parcels are developed. There will be no cumulative impact resulting from successive projects of the same type in the same place, over time. Any future utility undergrounding projects would occur in areas outside of the Project area. There are no unusual circumstances resulting in a significant impact on the environment because trenching will occur in existing, paved roadways. There will be no damage to scenic resources, including trees, historic buildings, rock outcroppings or similar resources, within a highway officially designated as a state scenic highway; all trenching will occur in existing, paved roadways and the removal of the above ground utility systems will improve resources both in terms of safety and aesthetics. Further the 16 17 of 25
-8- Reso. #26.XXX
undergrounding district is not near an officially designated state scenic highway. It is not located on a hazardous waste site, or any other site included on a list compiled pursuant to Government Code Section 65962.5. The formation of an undergrounding district will not result in significant adverse impacts to historical resources as defined by CEQA as it is occurring in existing, paved roadways and not within a close proximity to any known historical resources. Consequently, additional environmental analysis is not necessary to meet the requirements of the CEQA. If the City Council agrees, staff will cause to be filed a Notice of Exemption (NOE) with the County Recorder’s Office and State Clearinghouse should the Project receive final approval.
In the alternative, the formation of an undergrounding district consists of the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; CEQA Guidelines, section 15378(b)(4).)
Finally at the December 4, 2024 Planning Commission meeting, the City previously conducted environmental review for the proposed undergrounding project and determined that the project was exempt under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301(b), which authorizes an exemption for “existing facilities providing electric power with no expansion of use”; Sections 15302(c) and (d) for the “replacement or reconstruction of existing utility systems involving negligible or no expansion of capacity, and conversion of overhead electric utility distribution system facilities to underground”; and Section 15303(d) involving “new construction of small utility facilities or structures.” More detailed environmental analysis can be found in that December 4, 2024, Planning Commission approval. There have been 17 18 of 25
-9- Reso. #26.XXX
no changes to the Project, no changed circumstances, and no new information that could not previously have been known, that would trigger the need for subsequent CEQA review.
SECTION 11. This Resolution shall be effective immediately upon its adoption.
ADOPTED this 13th day of January, 2026.
Mark Orgill, Mayor
ATTEST:
Ann Marie McKay, City Clerk
I, Ann Marie McKay, City Clerk of the City of Laguna Beach, certify that the foregoing Resolution No. 26.XXX was duly adopted at a regular meeting of the City Council of said City held on January 13, 2026, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
City Clerk, City of Laguna Beach, California
18 19 of 25
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Exhibit A
CERTIFICATE OF TABULATION OFFICIAL
AND STATEMENT OF ASSESSMENT BALLOTS SUBMITTED
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF LAGUNA BEACH )
The undersigned, the City Clerk and duly authorized tabulation official appointed by the City Council of the City of Laguna Beach, DOES HEREBY CERTIFY that pursuant to the provisions of Article XIIID of the Constitution of the State of California and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following), I did tabulate the assessment ballots timely submitted in the assessment ballot proceedings pertaining to the Underground Utility Assessment District No. 2021-3.
I FURTHER CERTIFY that this Statement of Assessment Ballots Received shows the assessment ballots submitted in favor of the assessment and the assessment ballots submitted in opposition to the assessment, each total weighted according to the financial obligation of the affected properties for which the assessment ballots were submitted.
Total assessment ballots distributed:
Total assessment ballots received:
Assessment ballots received in favor of the proposed
assessment:
Weighted value of assessment ballots received in favor of the proposed assessment:
Assessment ballots received in opposition to the proposed assessment:
Weighted value of assessment ballots received in
opposition to the proposed assessment:
This certification is executed this 13th day of January, 2026 in the City of Laguna Beach, California.
City Clerk
City of Laguna Beach
By: _ ______________________________
Title: _ ______________________________
19 20 of 25
RESOLUTION NO. 26.XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, AWARDING THE CONTRACT
FOR CONSTRUCTION OF IMPROVEMENTS IN UNDERGROUND
UTILITY ASSESSMENT DISTRICT NO. 2021-3 SUBJECT TO
RECEIPT OF BOND PROCEEDS AND FINDING THE SAME
EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT
WHEREAS, the City Council has heretofore ordered the acquisition and construction of certain improvements (the “Improvements”) and formed Underground Utility Assessment District No. 2021-3, under the Municipal Improvement Act of 1913; and WHEREAS, a notice inviting bids for the construction of the Improvements has heretofore been published as required by law and bids for such construction have been received and opened; and
WHEREAS, Hot Line Construction, Inc. of Brentwood, California has been determined to be the lowest responsive and responsible bidder for such construction.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:
SECTION 1. The foregoing recitals are true and correct.
SECTION 2. The contract for the construction of the Improvements is awarded to Hot Line Construction, Inc. of Brentwood, California, subject to the receipt by the City of the proceeds from the sale of bonds on behalf of Underground Utility Assessment District No. 2021-3, based on the original bid in the amount of $2,807,414. The City Council further authorizes the City Manager to approve project-related expenses and construction change orders for unforeseen circumstances in an amount not-to-exceed $280,742.
SECTION 3. Subject to the receipt by the City of the proceeds from the sale of bonds Attachment 3
20 21 of 25
-2- Reso. #26.XXX
on behalf of Underground Utility Assessment District No. 2021-3, the City Manager is authorized and directed to execute a contract with Hot Line Construction, Inc. for and in the name of the City of Laguna Beach, in a form approved by the City Attorney, and the City Clerk is authorized and directed to attest thereto. Also, the City Manager is authorized to approve project-related expenses and construction change orders for unforeseen circumstances.
SECTION 4. The formation of an undergrounding district is exempt from CEQA pursuant to state CEQA Guidelines, section 15302 (Replacement or Reconstruction) as it consists of the possible formation of an undergrounding utility assessment district to fund the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced, including but not limited to: (1) conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding; and (2) replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity. Here, the formation of an undergrounding district involves the possible formation of an undergrounding utility assessment district to fund the reconstruction of an electric utility system by removing above ground utilities and reconstructing them below ground. The new undergrounding system will be located on the same site and will have substantially the same purpose and capacity (i.e., providing electricity to structures). The undergrounding district, if approved, involves the removal of 27 utility poles and undergrounding of approximately 3,100 linear feet of overhead wires and therefore constitutes conversion of overhead electric utility distribution system facilities to underground. Further the formation of an undergrounding district involves the following aboveground equipment to be installed to 21 22 of 25
-3- Reso. #26.XXX
accommodate the undergrounding: riser poles, vent standpipes, guy anchors, street light cabinets, pedestals, and street lights.
The formation of an undergrounding district is also categorically exempt from CEQA under the following State CEQA Guidelines, sections 15301(b) and 15303(d). Section 15301(b) exempts projects that pertain to existing facilities of both investor and publicly owned utilities used to provide electric power, natural gas, sewerage, or other public utility services. Here, the formation of an undergrounding district is exempt under Section 15301(b) because it consists of existing facilities providing electric power with no expansion of use. Lastly, Section 15303(d) exempts projects that pertain to construction and location of limited new, small facilities or structures, including water main, sewage, electrical, gas, and other utility extensions, including street improvements, of reasonable length to serve such construction. Here, the formation of an undergrounding district is exempt under Section 15303(d) because it consists of new construction of small utility facilities or structures.
Further, none of the exceptions outlined in State CEQA Guidelines section 15300.2 apply.
The location of the undergrounding district site does not contain any environmentally sensitive areas as a majority of the parcels are developed. There will be no cumulative impact resulting from successive projects of the same type in the same place, over time. Any future utility undergrounding projects would occur in areas outside of the Project area. There are no unusual circumstances resulting in a significant impact on the environment because trenching will occur in existing, paved roadways. There will be no damage to scenic resources, including trees, historic buildings, rock outcroppings or similar resources, within a highway officially designated as a state scenic highway; all trenching will occur in existing, paved roadways and the removal of the above ground utility systems will improve resources both in terms of safety and aesthetics. Further the 22 23 of 25
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undergrounding district is not near an officially designated state scenic highway. It is not located on a hazardous waste site, or any other site included on a list compiled pursuant to Government Code Section 65962.5. The formation of an undergrounding district will not result in significant adverse impacts to historical resources as defined by CEQA as it is occurring in existing, paved roadways and not within a close proximity to any known historical resources. Consequently, additional environmental analysis is not necessary to meet the requirements of the CEQA. If the City Council agrees, staff will cause to be filed a Notice of Exemption (NOE) with the County Recorder’s Office and State Clearinghouse should the Project receive final approval.
In the alternative, the formation of an undergrounding district consists of the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; CEQA Guidelines, section 15378(b)(4).)
Finally at the December 4, 2024 Planning Commission meeting, the City previously conducted environmental review for the proposed undergrounding project and determined that the project was exempt under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301(b), which authorizes an exemption for “existing facilities providing electric power with no expansion of use”; Sections 15302(c) and (d) for the “replacement or reconstruction of existing utility systems involving negligible or no expansion of capacity, and conversion of overhead electric utility distribution system facilities to underground”; and Section 15303(d) involving “new construction of small utility facilities or structures.” More detailed environmental analysis can be found in that December 4, 2024, Planning Commission approval. There have been 23 24 of 25
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no changes to the Project, no changed circumstances, and no new information that could not previously have been known, that would trigger the need for subsequent CEQA review.
SECTION 5. This Resolution shall be effective immediately upon its adoption.
ADOPTED this 13th day of January, 2026.
Mark Orgill, Mayor
ATTEST:
Ann Marie McKay, City Clerk
I, Ann Marie McKay, City Clerk of the City of Laguna Beach, certify that the foregoing Resolution No. 26.XXX was duly adopted at a regular meeting of the City Council of said City held on January 13, 2026, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
City Clerk, City of Laguna Beach, California
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STAFF REPORT
Meeting Date:
January 13, 2026
APPEAL
A
SUBJECT: APPEAL OF DESIGN REVIEW BOARD APPROVAL OF DESIGN REVIEW 24- 0658 AND COASTAL DEVELOPMENT PERMIT 24-0657 FOR A NEW SINGLEFAMILY DWELLING, ATTACHED TWO-CAR GARAGE, ELEVATED DECKS,
GRADING, AND LANDSCAPING, AND DEMOLITION OF AN EXISTING SINGLE-FAMILY DWELLING AT 31526 VALIDO ROAD IN THE R-1,
RESIDENTIAL LOW-DENSITY ZONE, AND FINDING THE PROJECT
CATEGORICALLY EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION 15303 (CLASS 3)
RECOMMENDATION: It is recommended that the City Council:
1. Open the public hearing, take public testimony, and continue the public hearing to February 24, 2026, City Council Meeting; and
2. Find that the action to continue the public hearing is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption).
SUMMARY OF THE MATTER
Two appeals of the Design Review Board’s approval of Design Review 24-0658 and Coastal Development Permit 24-0657 at 31526 Valido Road were filed with the City Clerk on October 6, 2025, and October 8, 2025. To continue the public hearing on the appeals 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 sole purpose of this item is for City Council to take action on the requested continuance. This item was previously continued from the November 18, 2025 meeting. Staff requests the City Council continue this public hearing to the February 24, 2026, 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), the recommended actions are exempt from CEQA per Section 15061(b)(3), which is the commonsense exemption that the CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The action on the determination of the appeal at the continued public hearing will include compliance with CEQA.
ATTACHMENTS
1. Continuance Request (Pg. 3)
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APPEAL OF THE APPROVAL OF DR 24-0658 AND CDP 24-0657 AT 31526 VALIDO ROAD January 13, 2026
Submitted By: Matthew Schneider Approved: Dave Kiff
Matthew Schneider, Director of
Community Development
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Heather Steven, Senior Planner
Patrick Donegan, Assistant City Attorney
Anthony Viera, Deputy Director of Community
Development
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1 Steven, Heather CD
From: steve kawaratani <[email protected]>
Sent: Monday, December 22, 2025 7:18 AM
To: Steven, Heather CD
Cc: Schneider, Matthew CD; Viera, Anthony CD; Rodrigues, Bill CD; McKay, Ann Marie CC; Baldridge, Cheryl CC
Subject: 31526 Valido Appeal
Follow Up Flag: Follow up
Flag Status: Flagged
[NOTICE: This message originated outside of City of Laguna Beach -- DO NOT CLICK on links or open aƩachments unless you are sure the content is safe.]
Good morning, Heather,
The applicant team respecƞully requests a conƟnuance of the January 13, 2026 City Council Appeal, to allow sufficient Ɵme for our consultant to complete the historical assessment report and for City staff to review. We anƟcipate the report to be submiƩed by January 2, 2026.
Upon receipt and staff review, let’s calendarize the Council appeal date pending the appellant’s availability during February.
Best wishes for the holidays,
Steve
Attachment 1
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