Laguna Beach — 2025-06-24

1.\nCONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION\nPursuant to Government Code Section 54956.9 (d)(1)\nNumber of Cases: Two (2)

2.\na.\nLaguna Beach Historic Preservation Coalition v. City of Laguna Beach,\nOrange County Superior Court Case No. 30-2021-01178477\nb.\nLaguna Beach Historic Preservation Coalition v. California Coastal\nCommission (City of Laguna Beach is real party in interest), San Diego\nSuperior Court, Case No. 37-2022-00041130\nCONFERENCE WITH REAL PROPERTY NEGOTIATORS\nPursuant to Government Code Section 54956.8\na.\nProperty: 777 & 22466 Laguna Canyon Road\nAgency Negotiator: Dave Kiff, City Manager\nNegotiating Parties: Mark Shinderman, FTI Consulting, Chief\nRestructuring Officer for 777 at Laguna, LLC\nUnder Negotiation: Price and Terms of Payment\nb.\nProperty: 775-793 Laguna Canyon Road\nAgency Negotiator: Dave Kiff, City Manager\nNegotiating Parties: Mark Shinderman, FTI Consulting, Chief\nRestructuring Officer for Laguna Art District Complex, LLC.\nUnder Negotiation: Price and Terms of Payment\n*** REGULAR MEETING

1.\nRECOGNITION OF MAINTENANCE WORKER I, JORGE JAIMES’\nRETIREMENT

10. \nADOPTION OF ORDINANCE AMENDING THE FIRE CODE BY\nADDING CHAPTER 15.01 TO THE LAGUNA BEACH MUNICIPAL\nCODE ADOPTING CAL FIRE RECOMMENDATIONS FOR 2025 FIRE\nHAZARD SEVERITY ZONES FOR LOCAL RESPONSIBILITY AREAS\nRecommendation: Adopt the Ordinance titled, “AN ORDINANCE OF THE\nCITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA,\nAMENDING LAGUNA BEACH MUNICIPAL CODE SECTION 15.01.045 TO\nADOPT THE 2025 FIRE HAZARD SEVERITY ZONES AS DESIGNATED BY\nTHE CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE\nPROTECTION PURSUANT TO CALIFORNIA GOVERNMENT CODE\nSECTION 51178 AND FINDING THE SAME EXEMPT FROM THE\nCALIFORNIA ENVIRONMENTAL QUALITY ACT.”

11. \nADOPTION OF ORDINANCE ADDING CHAPTER 5.84 TO THE\nLAGUNA BEACH MUNICIPAL CODE REGARDING THE LICENSING\nSCHEME FOR SHORT-TERM RENTAL UNITS\nRecommendation: Adopt the Ordinance titled, “AN ORDINANCE OF THE\nCITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA,\nADDING CHAPTER 5.84 TO TITLE 5 OF THE LAGUNA BEACH\nMUNICIPAL CODE REGARDING LICENSING OF SHORT-TERM\nLODGING UNITS AND FINDING THE ORDINANCE IS NOT SUBJECT TO\nTHE CALIFORNIA ENVIRONMENTAL QUALITY ACT.”

12.\nREIMBURSEMENT FOR\nCITY-REQUESTED UTILITY\nIMPROVEMENTS COORDINATED WITH THE PACIFIC MARINE\nMAMMAL CENTER’S RENOVATION PROJECT\nRecommendation: Authorize the City Manager to reimburse the Pacific Marine\nMammal Center in an amount not to exceed $110,714.12 for City-requested\nconduit improvements completed in coordination with the PMMC facility\nrenovation project, contingent upon verification that the work has been\ncompleted to the satisfaction of the City.

13. \nPROPOSED CITY OF LAGUNA BEACH FLAG POLICY\nRecommendation: Adopt the Resolution titled, “A RESOLUTION OF THE\nCITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA,\nAUTHORIZING A UNIFORM POLICY FOR THE DISPLAY OF FLAGS AT\nCITY FACILITIES AND FINDING THE SAME EXEMPT FROM THE\nCALIFORNIA ENVIRONMENTAL QUALITY ACT,” establishing a uniform\npolicy regarding the display of flags at City facilities.

14. \nASSIGNMENT OF INVESTMENT FUNDS, 3RD-PARTY REVIEW OF\nTREASURER’S HOURS\nRecommendations:\n(1) Authorize the City Manager to direct that at least $25 million in City\nfunds from the portfolio invested by the City Treasurer be allocated to\nMeeder Investment Management for investments aligned with cash flow\nneeds and consistent with the City’s Investment Policy, and that the City\nManager further examine the proper amount that should be categorized as\nsurplus funds in accordance with the July 2024 recommendations; and\n(2) Direct the City Manager to conduct a 3rd-party review of the hours\nrequired by an elected City Treasurer to perform those functions required by\nthe California Government Code and the Laguna Beach Municipal Code.

15. \nCONSIDERATION OF SECOND AMENDMENT TO EMPLOYMENT\nAGREEMENT FOR CITY MANAGER\nRecommendation: Adopt the Resolution amending the City Manager’s\nEmployment Agreement, titled, “A RESOLUTION OF THE CITY COUNCIL\nOF THE CITY OF LAGUNA BEACH, CALIFORNIA, APPROVING AND\nAUTHORIZING THE MAYOR TO EXECUTE THE SECOND AMENDMENT\nTO THE EMPLOYMENT AGREEMENT BETWEEN THE CITY OF\nLAGUNA BEACH AND CITY MANAGER DAVE KIFF,” which authorizes a\none-time, merit-based exceptional performance payment equivalent to 3% of the\nCity Manager’s Fiscal Year 2024-25 base salary and continued contribution at the\n457(b) contribution limit for the City Manager’s deferred compensation plan.

16. \nADOPTION OF A RESOLUTION UPDATING THE MASTER FEE\nSCHEDULE\nRecommendation: Adopt the Resolution titled, “A RESOLUTION OF THE\nCITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA,\nADOPTING ITS MASTER FEE SCHEDULE AND FINDING SUCH\nACTIONS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL\nQUALITY ACT,” thereby approving the updated Master Fee Schedule, effective\nJuly 1, 2025.

17. \nADOPTION OF FISCAL YEAR 2025-26 BUDGET, APPROVAL OF THE\nMUNICIPAL EMPLOYEES ASSOCIATION MEMORANDUM OF\nUNDERSTANDING AND REVISIONS TO THE FISCAL YEAR 2024-25\nADOPTED BUDGET\nRecommendations:\n(1) Approve the City budget for the Fiscal Year 2025-26 by adopting the\nResolution titled, "A RESOLUTION OF THE CITY COUNCIL OF THE\nCITY OF LAGUNA BEACH, CALIFORNIA, ADOPTING THE ANNUAL\nCITY BUDGET FOR THE 2025-26 FISCAL YEAR";\n(2) Approve the Memorandum of Understanding between the City and the\nMunicipal Employee Association for a two-year agreement for the period of\nJuly 1, 2025, through June 30, 2027, by adopting the Resolution titled, “A\nRESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE CITY OF\nLAGUNA BEACH, CALIFORNIA, RATIFYING THE MEMORANDUM\nOF UNDERSTANDING BETWEEN THE CITY AND THE LAGUNA\nBEACH MUNICIPAL EMPLOYEES’ ASSOCIATION”;\n(3) Approve the salary schedules for the Fiscal Year 2025-26 by adopting the\nResolution titled, "A RESOLUTION OF THE CITY COUNCIL OF THE\nCITY OF LAGUNA BEACH, CALIFORNIA, SETTING PAY RANGES FOR\nCITY EMPLOYEES"\n(4) Approve or modify the funding recommendations made by the\nsubcommittee regarding the Community Assistance Grants for Fiscal Year\n2025-26 and direct the City Manager to disburse the funds accordingly and\nreview the subcommittee recommendations regarding the changes to the\nfuture Community Assistance Grants application process and direct staff as\nto desired changes;\n(5) Approve the recommended Cultural Arts Grants for Fiscal Year 2025-26\nand direct the City Manager to disburse the funds accordingly;\n(6) Approve the budget changes for the Fiscal Year 2024-25 as described in

18. \nCONDITIONAL USE PERMIT 25-1046 AND COASTAL DEVELOPMENT\nPERMIT 25-1047 FOR A REDUCTION OF REQUIRED OFF-STREET\nPARKING SPACES AS AN INCENTIVE FOR ESTABLISHING A\nSIDEWALK CAFÉ WITH OUTDOOR SEATING FOR A NEW\nRESTAURANT AT 320 NORTH COAST HIGHWAY AND FINDING THE\nPROJECT CATEGORICALLY EXEMPT PURSUANT TO STATE CEQA\nGUIDELINES SECTIONS 15301 (CLASS 1) AND 15331 (HISTORICAL\nRESOURCE RESTORATION/REHABILITATION) (TRULY PIZZA)\nRecommendation: Open the public hearing, including receiving a staff report,\ntake public testimony and all evidence relating to the consideration of\nConditional Use Permit 25-1046 and Coastal Development Permit 25-1047, and\nadopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF\nTHE CITY OF LAGUNA BEACH, CALIFORNIA, APPROVING\nCONDITIONAL USE PERMIT 25-1046 AND COASTAL DEVELOPMENT\nPERMIT 25-1047 AUTHORIZING A PARKING REDUCTION OF FIVE\nSPACES TO ALLOW ADDITIONAL OUTDOOR SEATING FOR A FOOD\nSERVICE AT 320 NORTH COAST HIGHWAY (TRULY PIZZA) AND\nFINDING THE ACTION CATEGORICALLY EXEMPT FROM THE\nCALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO STATE\nCEQA GUIDELINES SECTIONS 15301 (CLASS 1 EXISTING FACILITIES)\nAND 15331 (HISTORICAL\nRESOURCE RESTORATION/\nREHABILITATION).”\nA. \nAPPEAL OF THE APPROVAL OF DESIGN REVIEW 24-2721 TO\nCREATE STORAGE AREAS WITHIN EXISTING GARAGES AND TO\nREMOVE THE GARAGE DOORS AT THOSE AREAS TO CREATE\nCARPORTS AT HOTEL JOAQUIN LOCATED AT 985 NORTH COAST\nHIGHWAY, AND FINDING THE PROJECT CATEGORICALLY\nEXEMPT PURSUANT TO THE CALIFORNIA ENVIRONMENTAL\nQUALITY ACT GUIDELINES SECTION 15301 AT 985 NORTH COAST\nHIGHWAY IN THE C-N (COMMERCIAL-NEIGHBORHOOD) AND R-2\n(RESIDENTIAL MEDIUM DENSITY) ZONES\nRecommendations:\n(1) Conduct a Public Hearing, including receiving a staff report and taking\npublic testimony and evidence relating to the consideration of Design Review\n24-2721 to create storage areas within existing garages and to remove the\ngarage doors at those areas to create carports; and\n(2) Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL\nOF THE CITY OF LAGUNA BEACH, CALIFORNIA, DENYING THE\nAPPEAL OF NEW STORAGE AREAS WITHIN EXISTING GARAGES\nAND TO REMOVE THE GARAGE DOORS AT THOSE AREAS TO\nCREATE CARPORTS, UPHOLDING DESIGN REVIEW 24-2721, AND\nFINDING THE ACTION CATEGORICALLY EXEMPT FROM THE\nCALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO\nSTATE CEQA GUIDELINES SECTION 15301”, upholding the Community\nDevelopment Director’s approval of Design Review 24-2721.

2.\nAPPROVAL\nOF\nGENERAL\nWARRANTS\nDISTRIBUTIONS\nWarrant #29: $\n3,800.00 06/02/2025\nWarrant #30: $3,530,881.46 06/06/2025\nCalPERS #22: $ 385,045.74 05/27/2025\nAND\nPAYROLL\n$3,919,727.20\nPayroll #24: $1,912,856.05\nTotal:\n05/30/2025\n$5,832,583.25\nRecommendation: Approve the general warrants and payroll disbursements.

3.\nCLAIMS AGAINST THE CITY\nRecommendations:\n(1) Reject Claim #25-15 filed by Richard Kahoe;\n(2) Reject Claim #24-59 filed by Savannah Plaskon et al.;\n(3) Reject Claim #24-55 filed by Salma Nasoordeen; and\n(4) Reject Claim #24-56 filed by Hasna Shanai Aini.

4. \nPLANNING DIVISION UPDATE AND\nTHROUGH JUNE 9, 2025\nWORKLOAD\nSUMMARY\nRecommendation: Receive and file the Planning Division Update and Workload\nSummary, which covers the period from September 2024 through June 9, 2025.

5.\nAWARD OF\nSERVICES\nCONTRACT\nFOR\nCUSTODIAL\nMAINTENANCE\nRecommendations:\n(1) Authorize the City Manager to execute a contract with CCS Facility\nServices for a three-year term commencing July 1, 2025, to provide custodial\nmaintenance services at City facilities, including up to $25,000 annually for\nas-needed services, for a total annual not-to-exceed amount of $262,279\nannually; and\n(2) Authorize the City Manager to execute up to two (2) additional one-year\nextensions, subject to satisfactory performance, with an annual cost increase\nnot to exceed the percentage change in the Bureau of Labor Statistics\nConsumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim\nregion.

6. \nCONSIDERATION OF POLICY REGARDING USE OF ELECTRONIC\nSIGNATURES AND RECORDS\nRecommendation: Adopt the Resolution titled, “A RESOLUTION OF THE\nCITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA,\nADOPTING A POLICY REGARDING ELECTRONIC SIGNATURES AND\nELECTRONIC RECORDS,” creating a policy for the use of electronic signatures\nand records on a Citywide basis.

7.\nEXTENSION OF LICENSE AGREEMENT FOR THE EXISTING\nCOMPUTER AIDED DISPATCH SYSTEM\nRecommendation: Authorize the City Manager to execute an agreement with\nHexagon to extend the license for the City’s existing Computer Aided Dispatch\nsystem through May 31, 2026, for an amount not to exceed $113,525.36.

8. \nSERVICE AGREEMENT FOR ONSITE INFORMATION TECHNOLOGY\nDESKTOP SUPPORT\nRecommendations:\n(1) Authorize the City Manager to execute a service agreement with Intratek\nin the amount of $142,000 for onsite desktop support services in Fiscal Year\n2025-26; and\n(2) Authorize the City Manager to extend the agreement for up to two\nadditional one-year terms, provided that the annual cost increase does not\nexceed four percent of the previous year’s rate and that sufficient funding is\navailable in the approved budget.

9. \nSECOND AMENDMENT TO THE AMENDED AND RESTATED\nSERVICE PROVIDER AGREEMENT FOR OPERATION OF THE\nALTERNATIVE SLEEPING LOCATION\nRecommendation: Authorize the City Manager to execute the Second\nAmendment to the Amended and Restated Service Provider Agreement with\nFriendship Shelter, Inc. to extend operational services at the Alternative Sleeping\nLocation through December 31, 2025.