Laguna Beach — 2026-01-27

1. YEARS OF SERVICE RECOGNITION\nRecommendations:\nReceive and file the report.

10. AMENDMENT NO. 1 TO MASTER SERVICES AGREEMENT WITH HINDERLITER DE LLAMAS AND\nASSOCIATES TO PROVIDE SALES TAX AND BUSINESS LICENSE TAX ADMINISTRATION\nSERVICES\nRecommendations:\n1. Authorize the City Manager to execute Amendment No. 1 to Master Services Agreement #24-43\nbetween the City of Laguna Beach and Hinderliter De Llamas and Associates; and\n2. Find that this action is not a project subject to the California Environmental Quality Act pursuant to\nCEQA Guidelines Section 15378.

11. FORMATION OF CITY COUNCIL AD HOC COMMITTEE REGARDING LONG TERM USE OF\nPROPERTIES AT/AROUND 20652 LAGUNA CANYON ROAD (FOOD PANTRY, DOG PARK, PMMC\nTEMP FACILITY, ASL)\nRecommendations:\n1. That the City Council form an Ad Hoc Committee to engage with community stakeholders regarding\nthe long term and collective use of the operations and properties located at 20652 Laguna Canyon\nRoad;\n2. Appoint Mayor Orgill and Mayor Pro Tem Jones to serve on the committee;\n3. Sunset the ad hoc committee upon submission of its recommendation to the City Council; and\n4. Determine that the recommended action is not a “project” under the California Environmental Quality\nAct pursuant to CEQA Guidelines section 15061 (b)(3).

12. PLANNING DIVISION UPDATE AND WORKLOAD SUMMARY THROUGH JANUARY 5, 2026 ​\nRecommendations: Receive and file the Planning Division Update and Workload Summary, which covers the\nperiod from August 2024 through January 5, 2026.​\nI. REGULAR BUSINESS.    This section is for a wide variety of matters generally worthy of separate discussion such as the\nconsideration of ordinances for introduction, resolutions, extraordinary policy and business matters, staff reports and\nrecommendations. The presiding officer will take public comment on each Regular Business item.  Each speaker shall have up to\nthree minutes for each agendized Regular Business item, as may be shortened or extended, or a cumulative limit on the time for\nall public speakers may be imposed, at the discretion of the Presiding Officer. Pursuant to California Government Code section\n54953(b)(3), any member of the public 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.

13. PROPOSED UNDERGROUND UTILITY ASSESSMENT DISTRICT 2025-2 (TOP OF THE WORLD)\nRecommendations:\n1. Direct staff to establish a fund for proposed Underground Utility Assessment District 2025-2, as shown\non the attached Boundary Map;\n2. Appropriate $321,000 from the Wildfire Mitigation and Fire Safety Fund for assessment engineering,\nbid document preparation, and utility designs for the proposed assessment district;\n3. Direct staff to request that utility companies proceed with design for the proposed assessment district\nand authorize the City Manager to enter into necessary utility company agreements and make advance\npayments to the utility companies for their designs;\n4. Direct staff to solicit proposals for assessment engineering, bid document preparation, and street\nlighting design for the proposed assessment district; and\n5. Determine that the action is exempt from the California Environmental Quality Act pursuant to CEQA\nguidelines section 15301(b), 15302(c) & (d), and 15303(d).

14. LAGUNA PLAYHOUSE LEASE AMENDMENT / FUNDING ASSISTANCE\nRecommendations:\n1. Authorize the City Manager to execute a First Amendment to the 2003 Laguna Playhouse lease with\nthe City of Laguna Beach, that would memorialize more community use time at the Playhouse, along\nwith a rate structure;\n2. Appropriate $500,000 in Fiscal Year 2025–26, to be disbursed in two installments, for one-time\noperational support to the Laguna Playhouse to support expanded community access and performance\nopportunities, by appropriating $250,000 from the Cultural and Environmental Stewardship Special\nRevenue Fund and $250,000 from funds set aside for the cultural arts facilities reserve; and\n3. Find that these actions do not constitute a “project” within the meaning of the California\nEnvironmental Quality Act. (Public Resources Code Section 21065; 14 CCR Section 15378(b)(5).)

15. ARTIST LIVE WORK UNITS; AUTHORIZATION TO EXECUTE ASSIGNMENT OF PURCHASE AND\nSALE AGREEMENTS AND LOAN AGREEMENT WITH THE LAGUNA BEACH COMMUNITY LAND\nTRUST FOR 2307 AND 2535 LAGUNA CANYON ROAD\nRecommendations:\n1. Authorize the City Manager to execute the Assignment Agreement assigning the City’s Purchase and\nSale Agreements for 2307 and 2535 Laguna Canyon Road to the Laguna Beach Community Land\nTrust;\n2. Authorize the City Manager to execute a Loan Agreement in the principal amount of eight million\ndollars with the Laguna Beach Community Land Trust, secured by deeds of trust on both properties, on\nsubstantially the terms presented;\n3. Authorize the City Manager to execute all related escrow, security, and implementing documents\nnecessary to consummate the transaction;\n4. Approve a one-time grant to the Laguna Beach Community Land Trust in an amount not to exceed\nseventy five thousand dollars to cover closing costs associated with the acquisition of 2307 and 2535\nLaguna Canyon Road;\n5. Appropriate funds in an amount not to exceed seventy-five thousand dollars from the Housing Fund for\nthe purpose of providing the grant; and\n6. Find that the recommended action is not a project under the California Environmental Quality Act\npursuant to Section 15378 because the actions will not result in a direct or reasonably foreseeable\nindirect physical change in the environment.\nJ. PUBLIC HEARINGS - NON APPEALS.  This section is for matters (other than appeals) that are structured as Public Hearings.\nPublic hearings are different from regular business items in that there is a specific time period where a formal hearing is opened\nby the presiding officer, public comment is accepted from any member of the public, and the hearing is closed by the presiding\nofficer.   Generally each public speaker has one opportunity to speak.   The City Council conducts all Public Hearings in\naccordance with the provisions of applicable Laguna Beach procedure and State law. The presiding officer shall have discretion\nto establish the time allocated for public comment.

16. 1796 SOUTH COAST HIGHWAY: CONDITIONAL USE PERMIT 26-0066 FOR A HISTORIC\nPRESERVATION INCENTIVE FOR A 75% REDUCTION IN THE REQUIRED OFF-STREET PARKING\nSPACES FOR THE SEAHORSE LOUNGE, PEARL STREET COFFEE SHOP, AND PEARL STREET\nGENERAL STORE IN THE C-1 (LOCAL BUSINESS DISTRICT) ZONE, AND CATEGORICAL\nEXEMPTION UNDER STATE CEQA GUIDELINES SECTIONS 15301 (CLASS 1) AND 15331 (CLASS\n31)\nRecommendations:\n1. Conduct a Public Hearing, including receiving a staff report and taking public testimony and all\nevidence relating to the consideration of Conditional Use Permit 26-0066 and the categorical\nexemption under the California Environmental Quality Act Guidelines Sections 15301 and 15331; and\n2. Adopt the  Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF\nLAGUNA BEACH, CALIFORNIA, APPROVING CONDITIONAL USE PERMIT 26-0066\nINVOLVING A HISTORIC  PRESERVATION INCENTIVE FOR A 75% REDUCTION IN THE\nREQUIRED OFF-STREET PARKING SPACES FOR THE SEAHORSE LOUNGE, PEARL STREET\nCOFFEE SHOP, AND PEARL STREET GENERAL STORE AT 1796 SOUTH COAST HIGHWAY\nIN THE C-1 (LOCAL BUSINESS DISTRICT) ZONE, AND FINDING THE PROJECT\nCATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT\nPURSUANT TO STATE CEQA GUIDELINES SECTION 15301 (CLASS 1) AND 15331 (CLASS\n31)”.

2. GREEN BUSINESS CERTIFICATION RECOGNITIONS\nRecommendations:

3. VISIT LAGUNA BEACH – STEWARDSHIP UPDATE\nRecommendations:

4. MINUTES OF THE CITY COUNCIL MEETINGS\nRecommendations: Approve the minutes of the Special Meeting for the City Council of January 6, 2026, and\nthe Study Session and the Regular Meeting for the City Council of January 13, 2026.

5. APPROVAL OF GENERAL WARRANTS AND PAYROLL DISTRIBUTIONS\nRecommendations: 1. Approve the general warrants and payroll distributions.

6. CLAIMS AGAINST THE CITY\nRecommendations:\n1. Reject Claim #25-56 filed by CSM OBO USAA a/s/o Stacy Harless;\n2. Reject Claim #25-58 filed by Interinsurance Exchange of the Automobile Club a/s/o David Butler; and\n3. Reject Claim #25-59 filed by Vivian Quiroz.

7. DISCUSSION OF AN ORDINANCE AMENDING TITLE 18 (BEACH AND PARKS) TO ESTABLISH A\nSPECIAL EVENT PERMIT PROCESS AND MODIFYING REGULATIONS ON SURFING AT ALISO\nBEACH AND USE OF SHADE COVERINGS AT BEACHES AND PARKS AND A CORRESPONDING\nRESOLUTION ESTABLISHING LOCATIONS WHERE SPECIAL EVENTS MAY OCCUR AND RULES\nAND REGULATIONS FOR SPECIAL EVENTS\nRecommendations:\n1. A Draft Ordinance titled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAGUNA\nBEACH, AMENDING TITLE 18 OF THE LAGUNA BEACH MUNICIPAL CODE; AND FINDING\nSUCH ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER\nCEQA GUIDELINES SECTION 15304”; and\n2. A Draft Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA\nBEACH, CALIFORNIA, ESTABLISHING LOCATIONS WHERE SPECIAL EVENTS ARE\nALLOWED AND RULES AND REGULATIONS GOVERNING SPECIAL EVENTS; AND FINDING\nTHE ACTION CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL\nQUALITY ACT PURSUANT TO STATE CEQA GUIDELINES SECTION 15304”.

8. APPROVAL OF FUNDING FOR "CLEAN LAGUNA" STEWARDSHIP INITIATIVE\nRecommendations:\n1. Approve an appropriation of $160,127.50 from the Cultural and Environmental Stewardship Special\nRevenue Fund for the implementation of a visitor-focused anti-litter environmental stewardship\ncampaign;\n2. Approve an appropriation of $50,000 in recycling grant revenue to help offset a portion of the program\ncosts;\n3. Authorize the City Manager to execute all necessary documents, as approved to form by the City\nAttorney, to implement the proposed actions; and\n4. Find the recommended action is not a project subject to the California Environmental Quality Act\npursuant to Section 15378 of the CEQA Guidelines.

9. CONTRACT ADDENDUM FOR THE FACILITIES MASTER PLAN, GRIFFIN STRUCTURE EXPANSION\nRELATED TO WATER DISTRICT SITE AND PARKING ANALYSIS\nRecommendations:\n1. Approve a contract addendum to the Professional Services Agreement with Griffin Structures, Inc., that\ndoes the following: (i) directs Griffin to study the Laguna Beach Water District Property; (ii) approves\ncompensation in an amount not to exceed $20,000 for the additional work; and (iii) set the term for this\nadditional work through July 31, 2026;\n2. Appropriate $20,000 from the Capital Improvement Fund available fund balance to the Facilities Master\nPlan account to fund the contract addendum;\n3. Authorize the City Manager to execute the contract addendum with Griffin Structures, Inc., subject to\nCity Attorney review to form; and\n4. Determine that the recommended action is exempt from the California Environmental Quality Act\npursuant to CEQA guidelines Section 15061(b)(3), the "Common Sense" Exemption.

A. 225 VIEJO STREET: PUBLIC HEARING FOR APPEAL OF DESIGN REVIEW BOARD APPROVAL OF\nDESIGN REVIEW 25-1490 AND COASTAL DEVELOPMENT PERMIT 25-1516, FOR THE\nCONSTRUCTION OF A DETACHED STRUCTURE WITH TWO ACCESSORY DWELLING UNITS AND\nELEVATED DECKS IN THE R-2 (RESIDENTIAL MEDIUM DENSITY) ZONE, AND CATEGORICAL\nEXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION\n15303 (CLASS 3)\nRecommendations:\n1. Conduct a public hearing, including receiving a staff report and taking public testimony and all\nevidence relating to the consideration of Design Review 25-1490 and Coastal Development Permit 25-\n1516 for a detached structure with two accessory dwelling units and elevated decks and the California\nEnvironmental Quality Act exemption under Section 15303 of the California Environmental Quality\nAct Guidelines; and\n2. Adopt a Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA\nBEACH, CALIFORNIA, UPHOLDING THE DECISION OF THE DESIGN REVIEW BOARD TO\nAPPROVE DESIGN REVIEW 25-1490 AND COASTAL DEVELOPMENT PERMIT 25-1516 FOR\nTHE CONSTRUCTION OF A DETACHED STRUCTURE WITH TWO ACCESSORY DWELLING\nUNITS AND  ELEVATED DECKS AT 225 VIEJO STREET, AND FINDING THE ACTION EXEMPT\nFROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO STATE CEQA\nGUIDELINES SECTION 15303,” upholding the Design Review Board’s conditional approval of\nDesign Review 25-1490 and Coastal Development Permit 25-1516 and finding the Project exempt from\nCEQA.\nB. 31731 SEACOVE DRIVE: APPEAL OF DESIGN REVIEW BOARD APPROVAL OF DESIGN REVIEW 24-\n1151 AND COASTAL DEVELOPMENT PERMIT 24-1152 FOR ADDITIONS AND REMODEL OF AN\nEXISTING SINGLE-FAMILY DWELLING, NEW TWO-CAR GARAGE, ELEVATED DECK ADDITIONS,\nGRADING, LANDSCAPING, NEW POOL AND SPA, AND A NEW ATTACHED ACCESSORY\nDWELLING UNIT, AND VARIANCE 24-1153 FOR ADDITIONS INTO THE FRONT YARD, REAR YARD,\nAND ADDITIONAL BUILDING SETBACKS, AND A NEW POOL IN THE FRONT YARD SETBACK IN\nTHE R-1, RESIDENTIAL LOW-DENSITY ZONE, AND CATEGORICAL EXEMPTION UNDER THE\nCALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION 15301 (CLASS 1)\nRecommendations:\n1. Continue to conduct the public hearing that was opened at the September 23, 2025 City Council\nmeeting, including receiving an updated staff report and taking public testimony and all evidence\nrelating to the consideration of Design Review 24-1151, Coastal Development Permit 24-1152, and\nVariance 24-1153, and the California Environmental Quality Act exemption under Section 15301 of the\nstate CEQA Guidelines; and\n2. Adopt a Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA\nBEACH, CALIFORNIA, DENYING THE APPEAL AND SUSTAINING THE DESIGN REVIEW\nBOARD’S APPROVAL OF DESIGN REVIEW 24-1151 AND COASTAL DEVELOPMENT PERMIT\n24-1152 FOR  THE ADDITION AND REMODEL OF A SINGLE-FAMILY DWELLING, A NEW\nTWO-CAR GARAGE, ELEVATED DECK ADDITIONS, GRADING, LANDSCAPING, NEW POOL\nAND SPA, AND AN ATTACHED ACCESSORY DWELLING UNIT, AND VARIANCE 24-1153 FOR\nADDITIONS INTO THE FRONT YARD, REAR YARD, AND ADDITIONAL BUILDING\nSETBACKS, AND A NEW POOL IN THE FRONT YARD SETBACK AT 31731 SEACOVE DRIVE\nLOCATED IN THE R-1, RESIDENTIAL LOW DENSITY ZONE, AND CATEGORICAL\nEXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES\nSECTION 15301,” upholding the Design Review Board’s conditional approval of Design Review 24-\n1151, Coastal Development Permit 24-1152, and Variance 24-1153 and finding the project exempt from\nthe California Environmental Quality Act.\nC. 30801 DRIFTWOOD DRIVE: APPEAL OF DESIGN REVIEW BOARD’S APPROVAL OF DESIGN\nREVIEW 25-1883, COASTAL DEVELOPMENT PERMIT 25-1884, AND REVOCABLE\nENCROACHMENT PERMIT 25-1885 FOR DEMOLITION OF THE EXISITING STRUCTURE AND\nCONSTRUCTION OF A NEW SINGLE-FAMILY RESIDENCE WITH A TWO-CAR GARAGE AND\nOTHER IMPROVEMENTS IN THE R-1 (RESIDENTIAL LOW-DENSITY ZONE), AND FINDING THE\nPROJECT CATEGORICALLY EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT\nGUIDELINES SECTION 15303 (CLASS 3)\nRecommendations:\n1. Open the public hearing, take public testimony, and continue the public hearing to the February 24,\n2026 City Council meeting; and\n2. Find the action is not a project within the meaning of the California Environmental Quality Act under\nPublic Resources Code Section 21065.