Laguna Beach — 2024-12-10

1. MINUTES OF THE CITY COUNCIL MEETINGS\nRecommendation: It is recommended by the City Clerk that the City Council approve\nthe minutes of the Regular Meeting of the City Council of November 12, 2024, and\nthe Special City Council Meeting workshop of November 20, 2024.\nMinutes

10. AMENDMENT TO SERVICE PROVIDER AGREEMENT FOR OPERATION\nOF TROLLEY SERVICES\nRecommendations:\n(1) Authorize the City Manager to execute Amendment No. 1 with LAZ Parking,\nLLC, for Operation of Trolley Services (Agreement #21-38) to memorialize\nchanges in scope and performance standards during the five-year initial contract\nterm and provide clarification regarding automobile insurance coverage\nresponsibilities;\n(2) Authorize the City Manager to increase contract authority by $4,639,000 to\naccount for expanded transit services provided by LAZ Parking, LLC, from Fiscal\nYear 2021-22 through Fiscal Year 2025-26;\n(3) Clarify the obligation of LAZ Parking, LLC, to provide automobile liability\ninsurance coverage for City-owned vehicles (i.e. Trolleys) used to provide transit\nservices at an estimated cost of $375,000 per year in Fiscal Year 2024-25 and Fiscal\nYear 2025-26;\n(4) Authorize the City Manager to increase the total contract authority under\nAgreement #21-38 from $10,621,219 to $16,010,219 for the five-year initial term;\n(5) Approve a transfer from the Parking Fund to the Transit Fund in the amount\nof $375,000;\n(6) Appropriate $375,000 in the Transit Fund to cover the cost of insurance for\nFiscal Year 2024-25; and\n(7) Find this action is not subject to the California Environmental Quality Act.\nAgenda Report

11. AMENDED AND RESTATED MEMORANDUM OF UNDERSTANDING\nWITH AGE WELL SENIOR SERVICES, INC. AND LAGUNA BEACH\nSENIORS\nRecommendation: Authorize the City Manager to execute the Amended and Restated\nMemorandum of Understanding with Age Well Senior Services, Inc. and Laguna\nBeach Seniors to ensure the continued delivery of vital senior services and meal\nprograms at the Laguna Beach Community and Susi Q Senior Center.\nAgenda Report

12. RECREATION FACILITY RESERVATION PROGRAM AND FEE\nSCHEDULE UPDATES\nRecommendations:\n(1) Approve the updated facility reservation program and fee schedule for the\nCommunity & Recreation Center and Lang Park Community Center, including\nprovision for community rental of the former library space, and for small wedding\nceremonies in the chapel at the Community & Recreation Center;\n(2) Revise the parking threshold for Temporary Use Permits at the Community &\nRecreation Center from 40 “participants” to 40 “vehicles” to align with\noperational needs;\n(3) Direct staff to work with Anneliese Schools to submit a Conditional Use Permit\napplication and prepare a draft lease agreement for the use of the Lang Park\nCommunity Center multi-purpose room for a proposed middle school program;\n(4) Approve amendments to the Commercial Film Permits fee schedule to waive\nthe daily use fee for qualified nonprofit organizations, retroactive to November 1,\n2024; and\n(5) Find the action exempt from the California Environmental Quality Act\npursuant to State CEQA Guidelines section 15061(b)(3).\nAgenda Report

13. AMENDMENT TO THE PURCHASE AND SALE AGREEMENT BETWEEN\nTHE CITY AND D&S PARTNERS LLC, FOR THE SALE OF CITY-OWNED\nPROPERTY AT 31729 AND 31735 COAST HIGHWAY, LAGUNA BEACH\n(APNS 658-101-39 AND -40, “TI AMO”) AND DETERMINING SUCH\nAPPROVAL TO BE EXEMPT UNDER THE CALIFORNIA\nENVIRONMENTAL QUALITY ACT\nRecommendations:\n(1) Consider directing staff to incorporate revised terms (i.e., purchase price and\nclosing date) into an amended Purchase and Sale Agreement for 31729 and 31735\nCoast Highway;\n(2) If revised terms are approved, authorize the City Manager to execute the First\nAmendment to the Purchase Agreement, in a final form as approved by the City\nAttorney, and to take such further actions as necessary to implement the amended\nPurchase Agreement; and\n(3) Determine that such approval is exempt under the California Environmental\nQuality Act pursuant to State CEQA Guidelines Section 15378.\nAgenda Report

14. A RESOLUTION RELATING TO CONDITIONS OF EMPLOYMENT,\nPOLICIES, AND BENEFITS FOR UNREPRESENTED LIMITED-TERM\nEMPLOYEES\nRecommendation: Adopt the Resolution titled, “A RESOLUTION OF THE CITY\nCOUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, RELATING TO\nCONDITIONS OF EMPLOYMENT, POLICIES, AND BENEFITS FOR\nUNREPRESENTED LIMITED-TERM EMPLOYEES,” to formalize a framework for\nhiring and managing unrepresented limited-term employees.\nAgenda Report

15. UPDATE TO THE CAPITAL ASSET POLICY AND PROCEDURES\nRecommendation: Approve the proposed modifications to the City’s Capital Asset\nPolicy to incorporate subscription-based IT arrangements and leases. These changes\nare necessary to align with new accounting standards and improve the City's\nmanagement of capital assets.\nAgenda Report

16. RESOLUTION ADOPTING MEASURE M2 EXPENDITURE REPORT FOR\nFISCAL YEAR 2023-2024\nRecommendations:\n(1) Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF\nTHE CITY OF LAGUNA BEACH, CALIFORNIA, CONCERNING THE\nMEASURE M2 EXPENDITURE REPORT FOR THE CITY OF LAGUNA\nBEACH,” approving the Orange County Measure M2 Transportation\nImprovement Tax Expenditure Report for Fiscal Year 2023-2024, as certified by\nthe Director of Finance, subject to technical revisions in conformance with Orange\nCounty Transportation Authority guidelines; and\n(2) Authorize the Director of Finance to sign and submit the report to the Orange\nCounty Transportation Authority.\nAgenda Report

17. AWARD OF CONTRACT FOR SLOPE REPAIR AT SUNSET AVENUE,\nSOUTH OF 10TH AVENUE\nRecommendations:\n(1) Award and authorize the City Manager to execute a contract with Horizons\nConstruction in the amount of $1,019,055 for construction of the Sunset Avenue\nSlope Repairs;\n(2) Authorize the City Manager to approve project-related expenses, and\nconstruction change orders for unforeseen circumstances for an amount not to\nexceed $100,000; and\n(3) Approve the transfer of an appropriation of $252,000 from the Summit Drive\nStorm Drain Construction Project to the Sunset Avenue Slope Repair Project,\nbringing the total project budget to $1,202,000.\nAgenda Report

18. AWARD OF CONTRACT FOR CONSULTANT SERVICES FOR A\nCOMPREHENSIVE DEVELOPMENT IMPACT FEE STUDY\nRecommendations:\n(1) Authorize the City Manager to execute a Consultant Services Agreement with\nEconomic & Planning Systems (“Consultant”) in the amount of $92,600 for a\nComprehensive Development Impact Fee Study;\n(2) Authorize the City Manager to approve change orders for unforeseen\ncircumstances in an amount not to exceed $9,300;\n(3) Approve a transfer from the Capital Improvement Program Fund to the\nGeneral Fund in the amount of $101,900;\n(4) Appropriate $101,900 for the contract for Consultant Services for a\nComprehensive Development Impact Fee Study from the City’s General Fund;\nand\n(5) Find the action exempt from the California Environmental Quality Act\npursuant to State CEQA Guidelines section 15060.\nAgenda Report

19. OFFICE OF TRAFFIC SAFETY GRANT ACCEPTANCE\nRecommendations:\n(1) Authorize the City Manager to accept a $168,000 grant from the California\nOffice of Traffic Safety Grant; and\n(2) Appropriate $168,000, with a matching increase in estimated grant revenue, to\nfund overtime salaries and for the purchase of equipment and supplies related to a\nDriving Under the Influence Enforcement and Awareness Program, and Traffic\nSafety Enforcement.\nAgenda Report

2. APPROVAL OF GENERAL WARRANTS AND PAYROLL DISTRIBUTIONS\nWarrants: $3,096,911.04 11/08/2024\nPayroll #9: $1,782,817.92 11/01/2024\nPayroll #10: $1,739,638.32 11/15/2024\n$3,522,456.24\nTotal: $6,619,367.28\nRecommendation: Approve the general warrants and payroll disbursements.\nAgenda Report

20. APPROVAL OF 2024 MILLS ACT CONTRACT FOR 1391 SOUTH COAST\nHIGHWAY; AND FINDING SUCH ACTION EXEMPT FROM THE\nCALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER CEQA\nGUIDELINES SECTION 15331\nRecommendations:\n(1) Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF\nTHE CITY OF LAGUNA BEACH, CALIFORNIA, APPROVING PURSUANT\nTO AN EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL\nQUALITY ACT UNDER CEQA GUIDELINES SECTION 15331, A MILLS ACT\nCONTRACT BETWEEN THE CITY AND THE OWNER OF THE HOSTORIC\nPROPERTY AT 1391 SOUTH COAST HIGHWAY (“COAST LIQUOR”), AND\nAUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT\nON BEHALF OF THE CITY”;\n(2) Authorize the City Manager to sign the Contract with the owner(s) of the\nsubject property; and\n(3) Find the action exempt from the California Environmental Quality Act\npursuant to CEQA Guidelines Section 15331, and direct staff to cause the notice of\nexemption to be filed with the County Clerk and State Clearinghouse.\nAgenda Report

21. CONSIDERATION OF AN AMENDMENT TO THE LAGUNA PLAYHOUSE’S\nLEASE AGREEMENT\nRecommendation: Authorize the City Manager to enter into an amendment to the 2003\nlease agreement with the Laguna Playhouse to address a short-term loan of $20,000\ngiven to the Playhouse for emergency roof and ductwork repair.\nAgenda Report\nREGULAR BUSINESS\nThis section is for a wide variety of matters such as consideration of ordinances for introduction,\nresolutions, extraordinary policy and business matters, staff reports and recommendations. Any\nmember of the public may address the City Council on any item of Regular Business. Each speaker\nshall have up to three minutes for each agendized Regular Business item, as may be shortened or\nextended, or a cumulative limit on the time for all public speakers may be imposed, at the discretion\nof the Mayor. Pursuant to California Government Code section 54953(b)(3), any member of the\npublic wishing to address the legislative body directly pursuant to California Government Code\nsection 54954.3 may do so at each teleconference location at the time the item is considered.

22. CONSIDERATION OF AN ORDINANCE AMENDING THE ZONING CODE\nAND LOCAL COASTAL PROGRAM BY REPEALING AND REPLACING\nCHAPTER 25.17 OF THE LAGUNA BEACH MUNICIPAL CODE\nREGARDING ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY\nDWELLING UNITS TO COMPLY WITH RECENT CHANGES IN STATE\nLAW, AND FINDING THE ACTION TO BE STATUTORILY EXEMPT FROM\nTHE CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER SECTION\n21080.17 OF THE PUBLIC RESOURCES CODE, AND SECTION 15265(C) OF\nTHE STATE CEQA GUIDELINES\nRecommendation: Open the public hearing, take public testimony, close the public\nhearing, and:\n(1) Find that the adoption of the proposed ordinance is statutorily exempt from\nreview under the California Environmental Quality Act under Public Resources\nCode section 21080.17 and section 15265(c) of the State CEQA Guidelines; and\n(2) Waive full reading and introduce for first reading by title only an Ordinance\ntitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF\nLAGUNA BEACH, CALIFORNIA, AMENDING ITS ZONING CODE AND\nLOCAL COASTAL PROGRAM BY REPEALING AND REPLACING\nCHAPTER 25.17 OF THE CITY OF LAGUNA BEACH MUNICIPAL CODE\nRELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY\nDWELLING UNITS, AND FINDING THE ACTION TO BE STATUTORILY\nEXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT\nUNDER PUBLIC RESOURCES CODE SECTIONS 21080.17 AND 15265(C) OF\nTHE STATE CEQA GUIDELINES.”\nAgenda Report

23. CONSIDERATION OF AN URGENCY ORDINANCE AMENDING THE\nZONING CODE AND LOCAL COASTAL PROGRAM BY REPEALING AND\nREPLACING CHAPTER 25.17 OF THE LAGUNA BEACH MUNICIPAL\nCODE REGARDING ACCESSORY DWELLING UNITS AND JUNIOR\nACCESSORY DWELLING UNITS TO COMPLY WITH RECENT CHANGES\nIN STATE LAW, AND FINDING THE ACTION TO BE STATUTORILY\nEXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT\nUNDER SECTION 21080.17 OF THE PUBLIC RESOURCES CODE\nRecommendation: Open the public hearing, take public testimony, close the public\nhearing, and:\n(1) Find that the adoption of the proposed urgency ordinance is statutorily exempt\nfrom review under the California Environmental Quality Act under Public\nResources Code section 21080.17; and\n(2) Waive full reading and adopt by title only an Urgency Ordinance titled, “AN\nURGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF\nLAGUNA BEACH, CALIFORNIA, AMENDING ITS ZONING CODE AND\nLOCAL COASTAL PROGRAM BY REPEALING AND REPLACING\nCHAPTER 25.17 OF THE LAGUNA BEACH MUNICIPAL CODE REGARDING\nACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING\nUNITS TO COMPLY WITH RECENT CHANGES IN STATE LAW, AND\nFINDING THE ORDINANCE TO BE EXEMPT FROM THE CALIFORNIA\nENVIRONMENTAL QUALITY ACT UNDER SECTION 21080.17 OF THE\nPUBLIC RESOURCES CODE.”\nAgenda Report

24. RESOLUTION APPROVING A PURCHASE AND SALE AGREEMENT\nBETWEEN THE CITY AND THE GEORGE R. BURKHARDT TRUST B AND\nGEORGE R. BURKHARDT TRUST C FOR THE PURCHASE OF REAL\nPROPERTY LOCATED AT 2307 AND 2535 LAGUNA CANYON ROAD\n(APN’S: 632-101-10 and 632-091-12) AND DETERMINING SUCH APPROVAL\nTO BE EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY\nACT\nRecommendations: [TO BE POSTED ON FRIDAY, DECEMBER 6, 2024]\nPUBLIC HEARINGS\nThe City Council shall conduct all Public Hearings in accordance with the provisions of applicable\nLaguna Beach procedure and State law. Any member of the public may address the City Council on\nany Public Hearing item. The Mayor shall have discretion to establish the time allocated for the\nappellant, the applicant, and any speakers in support or against, respectively.\nA. APPEAL OF DESIGN REVIEW BOARD’S APPROVAL OF DESIGN REVIEW\n23-0887 FOR ADDITIONS (NET 413 SQUARE FEET) INCLUDING UPPER\nLEVEL ADDITIONS AND ELEVATED DECK ADDITIONS, GRADING,\nRETAINING WALLS, SPA, EXTERIOR REMODEL, AND LANDSCAPING,\nVARIANCE 23--0888 TO EXCEED THE MAXIMUM BUILDING HEIGHT\n(LAGUNA BEACH MUNICIPAL CODE SECTIONS 25.10.008(D)(1), AND\nREVOCABLE ENCROACHMENT PERMIT 23-0889 TO MAINTAIN SITE\nWALLS WITHIN THE PUBLIC RIGHT-OF-WAY AND FINDING THE\nPROJECT CATEGORICALLY EXEMPT UNDER CALIFORNIA\nENVIRONMENTAL QUALITY ACT GUIDELINES SECTION 16301 AT 1560\nSUNSET RIDGE DRIVE IN THE R-1 RESIDENTIAL LOW DENSITY ZONE.\nAgenda Report\nB. APPEAL OF PLANNING COMMISSION DENIAL OF DESIGN REVIEW 23-\n1480 FOR BUILDING FAÇADE IMPROVEMENTS, LANDSCAPE, AND\nHARDSCAPE IN THE LOCAL BUSINESS-PROFESSIONAL ZONE (LBP), AT\n1110 GLENNEYRE STREET\nRecommendation: Conduct a Public Hearing, including receiving a staff report, and\ntaking public testimony and all evidence relating to the consideration of Design\nReview 23-1480; and adopt the Resolution titled, "A RESOLUTION OF THE CITY\nCOUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, REMANDING\nTHE PLANNING COMMISSION'S DECISION TO DENY DESIGN REVIEW 23-\n1480 FOR BUILDING FAÇADE IMPROVEMENTS, LANDSCAPE, AND\nHARDSCAPE IN THE LOCAL BUSINESS-PROFESSIONAL ZONE AT 1110\nGLENNEYRE STREET AND TO FIND THE ACTION IS NOT A PROJECT\nUNDER STATE CEQA GUIDELINES SECTION 15378."

3. MONTHLY INVESTMENT REPORT (SEPTEMBER 2024)\nRecommendation: Receive and file the September 2024 monthly investment report,\nwith submissions from the City Treasurer, Laura Parisi, and the City’s longer-term\ninvestment manager, Meeder Investments.\nAgenda Report

4. CLAIMS AGAINST THE CITY\nRecommendations:\n(1) Reject Claim #24-34 filed by Kevin Ha Nguyen;\n(2) Reject Claim #24-40 filed by Juni Wahab;\n(3) Reject Claim #24-44 filed by Amir Gharaui;\n(4) Reject Claim #24-45 filed by Catherine Major; and\n(5) Reject Claim #24-49 filed by Ginger Delong.\nAgenda Report

5. APPROVAL OF THE ANNUAL INVESTMENT POLICY\nRecommendations:\n(1) Approve the 2025 Investment Policy; and\n(2) Authorize the Deputy Treasurer, Victoria McIntosh, CPA, to complete the\ninvestment duties of the City Treasurer, if the Treasurer cannot perform her\nduties.\nAgenda Report

6. FISCAL YEAR 2024-2025 CARRYOVER APPROPRIATIONS\nRecommendations:\n(1) Carryover appropriations of $30,751,800 to Fiscal Year 2024-25 to provide\ncontinuing funding for projects in progress at the end of the last fiscal year; and\n(2) Carryover revenue estimates of $1,732,400 expected to be received in Fiscal\nYear 2024-25.\nAgenda Report

7. AWARD OF CONTRACT FOR STREET LIGHT MAINTENANCE SERVICES\nRecommendations:\n(1) Award and authorize the City Manager to execute a service provider contract\nwith Yunex, LLC for the maintenance of City-owned street lights in an amount not\nto exceed $25,000 for the period of February 22, 2025, to June 30, 2025, and\n$67,000 annually from July 1, 2025, through June 30, 2028, for a total contract\namount of $226,000;\n(2) Authorize the City Manager to extend the agreement for up to two additional\nthree-year terms upon mutual agreement between the City and the contractor with\na Consumer Price Index based rate adjustment if services are satisfactory; and\n(3) Approve an appropriation of $25,000 from the Street Lighting and Utility Fund\nto the Street Light Division Contractual Services for Fiscal Year 2024-25.\nAgenda Report

8. AWARD OF CONTRACT FOR PRELIMINARY DESIGN OF A POTENTIAL\nTHIRD LEVEL OF THE GLENNEYRE PARKING STRUCTURE\nRecommendations:\n(1) Award and authorize the City Manager to execute a contract with IDS Group,\nin the amount of $278,306, for engineering services for Glenneyre Parking\nStructure Partial 3rd Deck Addition; and\n(2) Authorize the City Manager to approve project-related expenses and contract\nchange orders for unforeseen circumstances in an amount not to exceed $25,000.\nAgenda Report

9. APPROVAL OF RESOLUTION GRANTING ONGOING AUTHORITY TO\nADMINISTER EMPLOYEE HEALTH AND BENEFITS PLANS AND\nPROGRAMS\nRecommendation: Adopt the Resolution titled, “A RESOLUTION OF THE CITY\nCOUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, AUTHORIZING\nTHE DIRECTOR OF HUMAN RESOURCES & RISK MANAGEMENT AND THE\nCITY MANAGER TO ADMINISTER EMPLOYEE BENEFITS SERVICES,” to\nstreamline the administration of employee health and benefits services by delegating\nlimited authority to City staff, ensuring efficiency while maintaining Council oversight\nfor significant changes.\nAgenda Report