Council allows 16-foot in-lieu payment instead of full undergrounding for Sixth Street apartment project

Beaumont City Council on May 6 approved a conditional waiver that lets the developer of the Ages Apartments at 1360 East Sixth Street pay a $33,136 in-lieu fee for 16 feet of overhead line instead of relocating a single existing power pole and fully undergrounding utilities along the project frontage.

The decision came after a two-hour public hearing and technical presentations from planning staff and the applicant’s team. Jillian Fountain, associate planner, summarized the planning commission’s prior action and staff’s recommendation to uphold the commission’s conditional approval while requiring the applicant either to underground utilities, pay an in-lieu fee based on a utility cost estimate, or fully underground all overhead lines. Fountain said the project “is currently exempt under 12.18.070(g” and explained the code permits an in-lieu fee for certain small projects but that the applicant is responsible for providing the unit price needed to calculate that fee.

The applicant, represented by Ken Catanzaray and consultant Jim Moore, said securing a formal quote from Southern California Edison (SCE) for undergrounding or pole removal was infeasible for a project that was not yet being constructed. Catanzaray told the council that developers are typically unable to obtain an SCE cost estimate unless a fully funded construction request and deposit are submitted. He asked council to accept a proxy in-lieu fee based on state utility unit-cost guidance instead of a direct utility quote.

Former SCE executive consultant Jim Kelly testified on the feasibility of estimates and typical costs. “We don’t do that,” Kelly said of issuing quotes for projects that are not actually going forward, noting utilities publish annual unit-cost guides that regulators review. Kelly gave a typical all-in range for undergrounding of roughly $350 to $1,000 per linear foot depending on site conditions and said a $200,000 cost to relocate a single pole was not consistent with his experience.

Councilmembers debated two linked issues: whether to permit the project’s exemption under the municipal code that allows payment of an in-lieu fee, and whether the city or the applicant should bear relocation costs for the pole if undergrounding were required later. Public works staff said the city’s internal estimate to relocate the existing pole to the property line would be about $200,000; staff stressed that the applicant bears the burden under code to provide a unit-price estimate from the utility.

After debate and amendment, the council voted 3-2 to approve a waiver of the immediate undergrounding requirement and accept an in-lieu payment of $33,136 to cover the 16 feet of overhead line fronting the property, with the developer required to underground the remainder of the frontage on its parcel. The vote: Councilmember Phin — Yes; Councilmember Martinez — No; Councilmember White — Yes; Mayor Pro Tem Voigt — Yes; Mayor Laura — No.

The council action allows the applicant to proceed with the approved plot plan for a two-story, 15-unit multifamily building at the 0.68-acre site, subject to the modified utility condition and compliance with the chosen in-lieu fee arrangement. Fountain reminded council that the planning commission previously approved the plot plan 5-0 on March 26, 2025, and that the city code sections cited in staff materials include the undergrounding provisions in chapter 12.18 of the Beaumont Municipal Code.

If the city eventually undertakes pole relocation or a larger undergrounding project, staff said the council could use funds collected for later construction or reimburse a future developer under standard city procedures; the council discussed reserving the in-lieu funds for future phases or reimbursements.

The council’s decision resolves the immediate appeal but leaves open the longer-term management of overhead utilities on Sixth Street and the possibility of additional undergrounding if adjoining property owners pursue coordinated improvements.