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
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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 -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 -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 -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 -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 -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 -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 -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
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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: _ ______________________________
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