Ruby Place, Radcliffe Court residents vote for utilities to go underground

Overhead utility lines will be placed underground in the Laguna Beach area that includes Ruby Place and Radcliffe Court after a vote by residents.

A majority of those who cast ballots favored the project, the city clerk confirmed at the City Council meeting Dec. 16.

Forty-one of 48 area property owners voted, with 31 in favor and 10 opposed, Public Works Director Steve May told the council.

“I and several neighbors have been working on this project for several years, so a shout-out goes to city staff who have worked so diligently,” Ruby Street resident Randy Lewis said.

The council voted 4 to 0 to pay VCI Utility Services $460,525 to place conduits underground. Councilwoman Toni Iseman recused herself because she lives within 500 feet of the project area.

City Hall plans to issue bonds to pay for the project. Interest rates will determine the annual cost to homeowners. Residents will also have the option of paying their total assessment fee by Jan. 23, before the bonds are issued.

The estimated cost per property owner ranges from $940 to $4,100 annually, depending on the degree of view blockage from poles or wires, and will be paid back over a maximum of 15 years.

In addition to the assessments, homeowners would need to hire a contractor to underground any overhead lines on their private property.

Undergrounding connections can cost $4,000 to $10,000, depending on the difficulty of the project.

The contract with VCI, which performed utility undergrounding in downtown Laguna Beach in 2005, does not become effective until the city issues bonds for the work, May said by phone.

“The reason for that is that anything can happen,” he explained in an interview. “There could be a lawsuit, in which everything would stop for a year.”

Council members would vote on any bond sales. Construction is expected to begin in May and take about two months.

Residents’ payments will help cover what is owed to VCI as well as other utility companies, including Verizon and Cox, to install cables and other equipment, May said.