Utility verdict delayed

Officials will re-count a vote over whether to create a $20 million assessment district on Balboa Island to underground utilities there, after a tally of the ballots Tuesday night revealed the measure had failed by only a few percentage points.

Out of about 1,200 Balboa Island property owners, 505 voted “no” and 501 voted “yes,” according to Tuesday’s count. The ballots are weighted to take into account the assessment for each parcel, so Tuesday’s tally of the ballots broke down to about 52% opposed and 48% in favor.

“This was actually the closest balloting I’ve ever had and I would feel more comfortable if we did a recount to make sure we got it all right,” Joan Cox, an assessment engineer said at the meeting, as island residents, who had been waiting for hours to hear the outcome of the vote, groaned and shouted “no.” The ballots will be counted again in public at the next Newport Beach City Council meeting, slated for 7 p.m. May 12. At least 50% of Balboa Island property owners would have to vote in favor of the assessment district for the plan to go forward.

If the assessment district fails to pass after the vote is tallied again, the city could be on the hook to pay about $600,000 from its general fund to cover administrative costs. The money, used to pay engineers to draft preliminary plans for the large assessment district, would come out of the pockets of Balboa Island residents if the measure passes.

Balboa Island property owners crowded into a small conference room at City Hall as workers counted the ballots on Tuesday. City officials were expecting large crowds for the hearing, and placed extra rows of chairs in the foyer of the Council Chambers, but only a few people opposed to the underground assessment district spoke at the meeting.

“You people have a responsibility in this economy not to put the burden on these people,” said Balboa Island resident J. Sam Borland.

A disabled military veteran, Borland expressed anger over the proposed cost of the assessment district. Proponents of the project have touted the aesthetic value of undergrounding utilities on the island, and have said the project would boost property values.

“It’s an alley. It has pipes and poles where garbagemen go down. How much of an aesthetic do you need?” Borland said.

The multiyear construction project that would tear up streets and alleyways on Balboa Island could begin as early as July. The Balboa Island assessment district would be the largest of its kind in the city’s history and would affect about 1,200 property owners.

Most homeowners would pay about $16,000 for to underground utilities on the island under the proposed district, in addition to extra hookup fees. About 60% of Balboa Island property owners petitioned the city to create the assessment district and underground utilities there in 2004.

If the assessment district fails, the city could look at passing a smaller district on the island, Newport Beach Mayor Ed Selich said last week.

Reporter BRIANNA BAILEY may be reached at (714) 966-4625 or at brianna.bailey@latimes.com.