Woods Cove utility undergrounding project gets the go ahead

A significant utility underground assessment district in the Woods Cove neighborhood of Laguna Beach got the needed support of affected property owners Tuesday night.

The fate of the project depended on the final tally of ballots returned by property owners within the district. A weighted vote based on total assessment value determined that 61.1% of the returned vote contributed to the passing of the district.

“I think this is wonderful news from a public safety standpoint,” Councilman Bob Whalen said in addressing the district-supporting residents. “Thank you for your heroic efforts.”

Pierre Sawaya, a senior project manager for the city, said 326 ballots were returned from the 380-parcel district, although 19 of the ballots were deemed invalid. The public was invited to observe the tallying of the ballots.

“The no vote count was 129 votes,” Sawaya said in breaking down the assessment ballot results. “The yes vote count was 178, and as stated, there were 19 votes that were incomplete, so that results in a total assessment amount of yes votes [of] $7.3 million; a total assessment amount of no votes, approximately $4.65 million.”

The council voted 4-0 to proceed with the district. Councilman George Weiss recused himself from the matter as a resident of the district.

As part of the action taken by the panel, a contract was awarded to Hot Line Construction, which entered the low bid of $9.25 million to perform the work. Construction is expected to get underway in June, following a cash collection period and the issuance of bonds.

Property owners within the district will also have the opportunity to apply for an assessment deferment loan. The program was recently revised to make it more accessible, dropping the age requirement from 62 to 55, among other changes.

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Laguna Beach makes underground utility assessment deferment loan program more accessible

The Laguna Beach City Council voted to decrease the minimum age to be eligible for the underground utility assessment deferment loan program from 62 to 55. The household income threshold will be set at 20% above the Orange County moderate income limit.

Dec. 2, 2023

Mayor Sue Kempf was asked her thoughts on the success of the district in a phone interview following Tuesday night’s eight-hour council meeting.

“With climate change and the unpredictability of our weather and the insurance issues that people have in town, it’s a good thing,” Kempf said. “I’m glad that they got it through. I understand people’s objection, but they had their right to vote. I think it’s a good thing in the long run, and I think it will be good for people’s property values, too.

“I like the fact that we have a deferment loan program. It helps people who are on fixed incomes. They weren’t necessarily expecting to get an assessment later in life or after they’ve retired or something, so if we can help do that, I think we’re all happy to do that.”

A push for undergrounding projects has largely been motivated by the community’s concern over fire danger. Recently, Laguna Beach bore witness to the Emerald and Coastal fires in 2022.

Community members began rallying neighbors to form an assessment district in Woods Cove about a decade ago. Petitioners came before the council in hopes of forming an assessment district for a portion of the neighborhood in September 2014.

The council declared its intent to form the 380-parcel district on Sept. 26, at which time city staff said the average of the assessments came in at $38,132. Assessments were assigned with consideration given to the benefits of safety, neighborhood aesthetics and removal of view obstructions.

The city will contribute $1.58 million for the general benefit, and an additional $1.18 million will go toward the public safety benefit for undergrounding portions of Glenneyre Street, which some residents have described as a thoroughfare. Approximately $1.3 million will be set aside for project-related expenses and construction change orders.