Laguna Beach council adopts easier petition rules and possible city contribution to spur utility undergrounding

The City Council voted to revise Laguna Beach’s utility undergrounding assessment-district policy to encourage larger projects to move forward, adopting lower petition thresholds, removing a petitioner deposit requirement and authorizing limited city contributions.

Staff presented a proposed package of changes crafted after a council strategic workshop and an ad hoc working group. The key policy changes approved by council are: - reduce the petition threshold for a formation petition from 60% of property owners to 50%; - eliminate the $500-per-petitioner deposit that had been required to begin the petition process; and - adopt a guideline that the city will provide a 10 percent “general benefit” credit to an assessment district plus an optional discretionary city contribution of up to another 10 percent, with council retaining the ability to go above that amount in exceptional cases.

Public Works staff identified five preliminary boundaries where concentrated overhead utilities remain and where staff will focus outreach: North Laguna (parcels north of downtown), parcels south of downtown (near Park Avenue and Woods Cove), South Laguna clusters, Upper Bluebird (northwest of Rancho Laguna Road) and Top of the World (Alta Laguna/Treetop area). Staff estimated a present-day per-parcel cost in the $60,000–$80,000 range, with the caveat that these numbers will grow if construction and balloting happen several years later.

Staff recommended, and council approved, next steps to refine costs and pursue easements on private streets — a common constraint in Laguna Beach. Council authorized staff to work with Edison and SDG&E to explore ways to speed utility-design timelines, including whether utilities will accept third-party engineering work to shorten lead times that staff said can now stretch multiple years for detailed designs.

The meeting also expanded eligibility for the city’s deferred-payment/low-income loan program for property owners who demonstrate hardship. Council removed an age requirement (previously 55 or older) and gave the city manager authority to approve deferment applications case-by-case for qualified primary residents.

Ad hoc committee members will continue coordination with utilities and pursue options to secure required utility easements on private streets; staff will bring back more detailed project costs prepared with consultant support.

Why it matters: Council members described the measures as a package designed to remove process friction and financial obstacles to larger, multi-parcel districts that spread costs and speed construction. Council member Kemp said that air resources and fuel-modification have reduced fire risk, and undergrounding utility lines is another mitigation measure the city needs to pursue.

Votes and next steps: The motion to adopt the policy revisions passed unanimously. Staff will continue community outreach in the five identified neighborhoods, refine cost estimates with a consultant, and return with implementation timeline details and easement strategies for private streets.

Speakers quoted: Javier Sawaya, Capital Program Manager; Pierre Donegan, Assistant City Attorney.