STAFF REPORT
Meeting Date:
January 13, 2026
CONSENT
6 SUBJECT: AWARD OF CONTRACT FOR DESIGN SERVICES FOR CITYWIDE UTILITY
UNDERGROUNDING STUDY
RECOMMENDATION: It is recommended that the City Council:
1. Authorize the City Manager to award a contract, in a form approved by the City Attorney, to Asplundh Engineering Services, LLC, in the amount of $53,800, for conceptual design services for a Citywide Utility Undergrounding Study;
2. Approve an appropriation of $53,800 from the Wildfire Mitigation & Fire Safety Fund; and
3. Find that the actions consist of government activities, which do not result in a direct or indirect physical change in environment and therefore does not constitute a “Project” within the meaning of the California Environmental Quality Act.
SUMMARY OF THE MATTER
This report recommends awarding a design contract to Asplundh Engineering Services, LLC, (Asplundh) in the amount of $53,800 for conceptual design services for a Citywide Utility Undergrounding Study. The purpose of the study is to evaluate previously identified concentrated areas of existing utility poles and overhead wires and develop schematic designs and cost estimates to support potential future assessment district formations. The design services include field verifications, meetings with City staff, conceptual utility undergrounding designs, and cost estimating.
DISCUSSION
Background:
On July 8, 2025, City Council received a report from staff identifying potential underground utility district boundaries to substantially complete residential neighborhoods with remaining overhead utilities. The five potential district boundaries identified are:
1. North Laguna
2. South of Downtown
3. South Laguna
4. Upper Bluebird
5. Top of the World
Both Upper Bluebird and Top of the World commenced formal petitioning efforts in Fall 2025 and will be brought before the City Council early this year to approve the petitioning efforts, appropriate funding to begin utility engineering designs, and hire an assessment engineer. The three remaining districts of North Laguna, South of Downtown, and South Laguna are much larger in size and require additional evaluation regarding feasibility and estimated costs.
AWARD OF CONTRACT FOR DESIGN SERVICES FOR CITYWIDE UTILITY
UNDERGROUNDING STUDY
January 13, 2026
Council Direction and Consultant Selection:
At the July 8, 2025, meeting, City Council directed staff to work with a consultant to develop more accurate project cost estimates for the preliminarily identified utility undergrounding boundaries (see Attachment 1). Due to the specific nature of this task requiring consultation with dry utility specialists, staff informally solicited three proposals consistent with Laguna Beach Municipal Code Section 2.30.040(c). Moran Utility Services, Inc., while qualified to perform the work, declined to submit a proposal citing a lack of current resources. Proposals were received from Morrow Management and Asplundh (see Attachment 2), who are both familiar with dry utility engineering.
After reviewing the proposals received, staff determined Asplundh was the highest rated firm due to costcompetitiveness, firm resources, and experience with similar projects. Asplundh completed design engineering of West Street AD 2021-1 on behalf of San Diego Gas & Electric and served as the prime contractor for the recently constructed Park Avenue UD 2021-2 project. Due to Asplundh’s familiarity with City projects, staff recommend that City Council award a design contract to Asplundh.
Scope of Work and Timeline:
Asplundh will provide conceptual design engineering and cost estimating for the North Laguna, South of Downtown, and South Laguna districts. This task will take approximately four months to complete. During that time, staff will continue to work with property owners to determine if support exists to form assessment districts within the identified boundaries. Following completion of Asplundh’s work, staff will return to City Council with an update on the feasibility of designs, refined cost estimates, and any updates regarding property owner coordination to form new assessment districts.
Next Steps:
It is recommended that the City Manager be authorized to award a contract, in a form approved by the City Attorney, to Asplundh in the amount of $53,800 to complete the utility undergrounding study. Since funding was not allocated for this task in the Fiscal Year 2025-26 budget, staff is requesting City Council approval for the appropriation.
FINANCIAL ANALYSIS
Funding for design services for the utility undergrounding study is not included in the current budget.
Therefore, it is requested that $53,800 be appropriated from the Wildfire Mitigation and Fire Safety Fund which has an available fund balance of $3,705,407.
ENVIRONMENTAL ANALYSIS
AWARD OF CONTRACT FOR DESIGN SERVICES FOR CITYWIDE UTILITY
UNDERGROUNDING STUDY
January 13, 2026
The recommended actions consist of organizational or administrative activities of the City that will not result in a direct or indirect physical change in the environment and therefore does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21065; 14 CCR Section 15378(b)(5)). The award of contract for design services of this utility undergrounding study is for design services only and any future actual improvements will be subject to independent environmental review under CEQA at the time entitlements for those improvements are applied for. Further, the recommended actions consist of the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific projects which may result in a potentially significant physical impact on the environment and therefore does not constitute a “Project” within the meaning of CEQA. (Public Resources Code Section 21065; 14 CCR Section 15378(b)(4)). Approving the funding for design services only, which may or may not result in an application for improvements that will be subject to independent environmental review in the future is a fiscal activity that does not involve any commitment to any specific projects.
ATTACHMENTS
1. July 8 2025 Agenda Report (Pgs. 4-24)
2. Asplundh Proposal (Pgs. 25-71)
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