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
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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 -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 -4- 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 23 -5- 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 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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