Utility Undergrounding in Laguna Beach

The city of Laguna Beach supports moving overhead utility lines underground and coordinates projects with residents and the utilities. This guide summarizes how the city and the utilities describe the process. It is not legal or financial advice. For assessment balances and payoffs, call the City Treasurer at (949) 497-0327.

Why the city supports it

The city says it supports undergrounding for safety, reliability and appearance. It cites wildfire, evacuation routes and service reliability alongside views affected by overhead lines. The utilities guide lists the electric, water and sewer providers, and the wildfire guide covers evacuation zones and alerts.

Three ways it gets paid for

The city describes three methods, which follow the Rule 20 program that the California Public Utilities Commission set for electric utilities:

• Rule 20A: The city works with the utility on lines that benefit the general public. Annual utility credits pay for it. SCE says all its customers fund Rule 20A projects. It also says the Public Utilities Commission ordered it to stop allocating new Rule 20A credits after December 31, 2022, and cities can finish projects within the credits they hold.
• Rule 20B: Ratepayers give a partial credit, which SCE says is usually 20 to 25 percent, toward a project that someone else pays for. The city says a Rule 20B project can be city funded, or owners in an area can vote to form an assessment district.
• Rule 20C: Owners pay for it directly with the utility. The city generally does not take part. The design goes through the city’s design review, construction needs a Public Works permit, and meter conversions need electrical permits from the Building Division.

How an assessment district forms

The city’s process, in order:

1. A neighbor starts it. One or more owners survey the area informally to see whether enough neighbors want undergrounding.
2. The city drafts a boundary. Staff provide preliminary mapping and check the boundary with SCE, SDG&E, Cox Communications and Frontier Communications.
3. Neighbors sign a petition. A district needs at least five parcels and 600 feet of overhead wire or one block, whichever is less. Owners of at least 50 percent of the properties, who also own more than 50 percent of the assessable land, must sign.
4. The city funds design. Once staff confirm the signatures, they ask the City Council to fund engineering. The utility designs the system, and the Planning Commission reviews above-ground equipment such as transformers and riser poles. Design can take two years or more.
5. An engineer’s report sets assessments. The report lists the method, the costs and each property’s proposed assessment.
6. Owners vote by mail. Proposition 218 requires a public hearing and a ballot to every owner who would be assessed. Ballots are weighted by the assessment amount. If a weighted majority of the ballots cast support it, the council must form the district. If a weighted majority opposes it, the district is abandoned.
7. Bonds and construction. The city sells bonds, usually after it secures any easements it needs. Construction begins after the council approves the project, awards a contract and issues the bonds. Poles and wires come down only after every home connects to the new system.

What owners pay

• Assessment: The city says single-family assessments in 2025 may range from $6,000 to $100,000, depending on the benefit received and on construction factors such as steep roads. The average for projects built from 2018 to 2024 is $50,000 to $60,000.
• City share: The city contributes the greater of the legally required general benefit or 10 percent of the cost. It may add a separate contribution, typically not above another 10 percent, because many districts include streets named as evacuation routes in its wildfire report.
• Financing: Bonds are paid over 15 or 25 years through assessments on the property tax bill. After the council forms a district, owners have about 30 days to pay in cash, which the city says saves roughly 6 to 10 percent. The property tax guide covers the rest of the bill.
• Private connection: The owner hires a contractor to connect the home to the underground system. The city says this generally costs $5,000 to $15,000 and is not part of the assessment.
• Surplus: If funds remain after the work, owners who paid in cash get a refund and the others get a credit against future assessments.

Help with an assessment

The city’s Assessment Deferment Loan Program lets owners who meet age, income and asset rules postpone an assessment and the private connection cost on a primary residence. The loan carries interest at 1 percent above the district’s bond rate, and it generally comes due when the property sells or transfers. The council lowered the age requirement from 62 to 55 in 2023. The program runs first come, first served while city funds last. Call the Finance Department at (949) 497-0793 for the guidelines and an application.

Districts the city lists now

The city’s undergrounding projects page listed these projects when this guide was checked on October 28, 2026:

• Woods Cove (AD 2014-2): A proposed assessment district petitioned in 2014. Balloting finished December 12, 2023.
• Coast Highway, Agate Street to Arch Street (UD 2019-1): Funded with SCE Rule 20A credits, to be designed and built by SCE. The city’s project page says owners pay nothing to reconnect.
• Coast Highway, Cajon Street to Agate Street (UD 2020-1): Funded with SCE Rule 20A credits, to be designed and built by SCE. The city lists SCE in the design phase.
• Virginia Way, 3rd Avenue to 5th Avenue (UD 2025-1): Funded with SDG&E Rule 20A credits and supplemented by the city. The city lists SDG&E in the design phase.
• West Street (AD 2021-1): An assessment district in the construction phase.
• Fairview and La Brea (AD 2021-3): An assessment district the city says formed in January 2026. It is in the construction phase.

Status changes as work moves forward, so check the city’s page before you rely on a phase. SCE says to ask your city whether your neighborhood is scheduled. The city lists SCE at (949) 458-4436 and SDG&E at (949) 369-4721 for the utilities themselves.

Who to call

• Project manager: (949) 497-0751 for how a district or project works
• City Treasurer: (949) 497-0327 for bond balances and payoffs
• Finance Department: (949) 497-0793 for the deferment loan
• Public Works: (949) 497-0711 for general questions