Laguna ready to repeal undergrounding ordinance in exchange for help from utility companies

The city of Laguna Beach is poised to repeal an ordinance that would require utility companies to underground new and repaired poles and wires as part of a settlement with two prominent Southern California utility companies.

The City Council on Tuesday is expected to vote on a host of recommendations from Laguna staff members regarding utility undergrounding, including rescinding legislation the council approved in March that was awaiting the OK from the California Coastal Commission.

Southern California Edison and San Diego Gas & Electric each filed separate lawsuits against Laguna in April, alleging the ordinance violated state and federal law.

Edison claimed in its suit that the ordinance violated the company’s contract with Laguna Beach by prohibiting the company from constructing and operating its facilities along city streets even though Edison paid for such rights.

The city agreed that fighting a long legal battle would not serve the community’s best interest, not when the threat to public safety is imminent, according to a news release.

In the past 10 years, downed utility lines have caused at least five fires, and 58 car accidents on Laguna Canyon Road, including a man who allegedly fell asleep at the wheel and crashed into a pole on Sunday, according to the city.

“We strongly believe the utilities should step up and share in the cost of undergrounding their dangerous wires and we’re disappointed they sued our city in an attempt to avoid paying,” Mayor Toni Iseman said in the release. “However, slogging through costly litigation for years isn’t going to solve the problem in a timely manner.”

Edison agreed to design undergrounding electrical facilities along Laguna Canyon Road in the next year, while SDG&E agreed to pay for initial engineering and design for undergrounding projects within the next five years, the release said.

The companies also agreed to review safety concerns of overhead utility equipment and discuss opportunities to reduce fire risk, according to the city.

City staff suggest the council authorize $3 million in available money, and $4 million in revenue from the next two fiscal years to pay for undergrounding utilities along primary evacuation routes.

Per council direction in January, the city hired a consultant who mapped Laguna’s 27 miles of overhead utility lines and portioned evacuation routes into 12 areas.

Each area was prioritized using criteria such as benefit to the community, eligibility for Rule 20A credits and emergency response access, according to a city staff report.

Rule 20A is a California Public Utilities program designed to aid in undergrounding efforts by allotting credits to each utility to distribute to its respective municipalities every year. Utility companies would be responsible for planning, design and construction, according to the California Public Utilities Commission.

Laguna Canyon Road, from Laguna Canyon Frontage Road north to El Toro Road, was the highest priority area followed by a portion of Monterey Drive from Hawthorne Road to Linden Street and a section of Thalia Street from Temple Hills Drive to 350 feet southwest of Glenneyre Street, the report said.

Excluding utility poles and wires along Laguna Canyon Road, which has a separate plan, there are 128,000 feet of overhead utilities throughout Laguna, of which 20,489 feet are along evacuation routes.

It would cost an estimated $20.4 million to underground all utilities in the 11 evacuation routes — excluding Laguna Canyon Road — based on a $1,000-per-foot ratio.

But some cities do not use all their Rule 20A credits, thus Laguna Beach identified available credits from Rancho Santa Margarita and Indian Wells.

On Tuesday the council will consider spending up to $53,607 for $97,468 in credits from Rancho Santa Margarita and another $165,000 for $300,000 in credits from Indian Wells.

City staff also recommend the council investigate other funding sources such as community facilities districts and general obligation and revenue bonds.

Tuesday’s meeting begins at 6 p.m. at City Hall, 505 Forest Ave.

To read the full staff report, visit lagunabeachcity.net. On the homepage, click the “Government” tab, then click on the “City Meeting Minutes and Agendas.”

bryce.alderton@latimes.com

Twitter: @AldertonBryce