TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Ted Semaan, Interim Public Works Director
Gilbert Gamboa, Acting City Engineer
Erika King, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving an Emergency Exemption of Permit Extension and Reinstatement Fees Associated with Underground Utility Assessment Districts 19-12 and 19-14 (No Budget Impact) (Interim Public Works Director Semaan).
(Estimated Time: 15 Mins.)
ADOPT RESOLUTION NO. 25-0125
Body
_________________________________________________________
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 25-0125 approving a one-time emergency exemption of permit extension and reinstatement fees associated with delayed private service conversions in Underground Utility Assessment Districts 19-12 and 19-14 (Districts 12 and 14).
FISCAL IMPLICATIONS:
The fiscal impact of the recommended fee waiver and refunds in Districts 12 and 14 are not expected to exceed $55,000 total. Reinstatement fees have ranged from $148 to $156 from FY 2022 to 2024, respectively, due to CPI increases applied to cost recovery user fees. By waiving and/or refunding these fees, the cost of staff time to reinstate the permits would not be recovered.
BACKGROUND:
Districts 12 and 14 are the result of more than a decade of community-led efforts to underground overhead utilities in the El Porto neighborhood of Manhattan Beach.
The completion of Districts 12 and 14 is a four-phase process. The first phase is the construction of the right-of-way infrastructure. This is followed by a second phase for cabling and equipment installation. Both the first and second phases have been completed.
The third phase involves converting private properties and connecting them to the new underground network, and the final phase includes the removal of old overhead wires and poles and the installation of new streetlights.
To accelerate completion, staff implemented new tracking tools and coordination procedures, including bi-weekly meetings with SCE, as-needed meetings with Frontier and Spectrum cable, weekly private contractor field walks, and an interactive property status map providing residents with real-time updates. Staff have also worked with the Building and Safety Division to extend permits for properties whose electrical permits expired during the lengthy service conversion phase.
DISCUSSION:
Given the duration and complexity of the service conversion phase, several private conversion permits expired or are soon to expire, despite good-faith efforts by property owners, contractors, and City staff alike. The proposed fee waiver addresses this issue and supports the City Council’s goal of expediting the completion of the full district undergrounding.
Renewal of these permits currently requires payment of additional extension and/or reinstatement fees to proceed with scheduling the associated inspections. Many owners and private contractors have requested that the City waive these fees to help expedite the required inspections and complete the District undergrounding. After the City and SCE complete their inspections, the property will be released for connection to the new underground system.
On October 21, 2025, the City Council directed staff to formalize a waiver of Building and Safety Division permit extension and reinstatement fees exclusively for properties within UUAD Districts 12 and 14. The fee waiver removes administrative and financial barriers for affected homeowners and expedites completion of the remaining private conversions.
Approximately 284 properties across the two districts have been assessed extension fees and/or expired permit reinstatement fees, totaling up to approximately $55,000. Under the City Council’s direction, adoption of Resolution No. 25-0125 authorizes a waiver and/or refund for these and any future permit extension and reinstatement fees.
The Building and Safety Division will administer the waiver in coordination with the Finance and Public Works Departments. Eligible addresses are verified against the active service conversion-tracking database, and staff will automatically apply the waiver to qualifying reinstatements. Permit fees already paid will be refunded accordingly. The waiver will remain in effect until the completion of the Districts 12 and 14 undergrounding.
PUBLIC OUTREACH:
Since the formation of Underground Utility Assessment Districts 19-12 and 19-14, staff have conducted extensive public outreach to inform and assist affected property owners throughout each phase of the project.
Project update letters were mailed in February 2024, October 2024, and April 2025, providing progress summaries and clarifying outstanding items as construction advanced. In July 2025, staff issued a concise postcard mailer designed to deliver only the most relevant, property-specific information to assist homeowners with remaining conversions and inspections.
Notices for the October 21, 2025, City Council meeting were mailed out to 1,108 addresses (property owners and occupants in the impacted area). The agenda for the November 4, 2025 City Council meeting was posted in accordance with applicable law.
To further enhance transparency, the City maintains an Interactive Property Status Map on the Undergrounding Program webpage, allowing property owners to track progress in real time. Staff also remains readily available by phone, email, and in the field to provide individualized assistance, resolve coordination issues, and ensure residents remain informed as the districts move toward completion.
ENVIRONMENTAL REVIEW:
The proposed action is administrative in nature and does not constitute a “project” under the California Environmental Quality Act (CEQA) as defined in Section 15378(b)(5) of the CEQA Guidelines. Therefore, it is not subject to environmental review.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is required.
ATTACHMENTS:
1. Resolution No. 25-0125
2. Location Map - UUAD 19-12 and 19-14