Laguna Beach City Council
January 19, 2024

City Council
Strategic Planning Session
January 19, 2024
Council Chambers – 505 Forest Avenue
8:30 a.m. – 4:00 p.m.

CITY COUNCIL 2024 ANNUAL PLANNING WORKSHOP

SPECIAL MEETING CALL AND NOTICE
Friday, January 19, 2024, 8:30AM – 4:00PM
Council Chambers
505 Forest Avenue
Laguna Beach, CA 92651

TO THE MEMBERS OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH:

PLEASE TAKE NOTICE that the Mayor of the City of Laguna Beach has called a special meeting of the City Council to take place at 8:30 a.m. on January 19, 2024, for the purpose of discussing and taking action on items listed on the agenda below.

ANNUAL PLANNING WORKSHOP AGENDA

1. Call to Order and Roll Call

2. Welcome by the Mayor

3. Public Communication (30 Minutes Prior to Agenda Topics) This time is reserved for any member of the public to address the City Council on any matter appearing on this agenda that is within the City Council’s jurisdiction.

4. Presentation and Discussion of Financial Outlook, Gavin Curran, ACM/CFO and Julie Nemes, Dir. Of Finance & Tech.

5. City Manager Observations & Suggestions, Sean Joyce, Interim City Manager a. City Administrative Matters and City Council Policies b. City Council discussion and direction to staff

6. Lunch Break

7. Discussion Regarding 2024 Strategic Vision, Sean Joyce, Interim City Manager a. Overview: Goals, Desired Outcomes, Ground Rules
b. City’s Existing Policy Initiatives
i. Past Successes and Challenges
ii. Status of Past Policy Initiatives
c. Future Priorities and Accomplishments
i. Current Challenges and Opportunities
ii. Alignment of Policy and Resources to Leverage Beneficial Outcome (including, but not limited to, expediting underlying objectives of the City’s respective Master Plans)
d. Critical Next Steps/Highest Priority Initiatives

8. Reflections on the Workshop and Closing Comments

ADA ACCOMMODATIONS
Pursuant to the Americans with Disabilities Act, persons with a disability who require a disability-related modification or accommodation in order to participate in this special meeting, including auxiliary aids or services, may request such modification or accommodation from the City Clerk at (949) 497-0705 (telephone) or (949) 497-0771 (facsimile). Notification by 2 p.m. on the day prior to the special meeting will enable the City to make reasonable arrangements to assure accessibility to the meeting.

FY 2023‐24
Revised
Estimate FY 2024‐25 FY 2025‐26

REVENUES
Property Tax $49,169,000 $50,129,000 $51,850,000 $53,410,000 Sales Tax $7,950,000 $7,200,000 $7,350,000 $7,500,000
Transient Occupancy Tax $10,440,000 $10,110,000 $10,620,000 $11,050,000 Business License Tax $1,100,000 $1,100,000 $1,130,000 $1,140,000 Other Taxes $1,260,000 $1,263,000 $1,270,000 $1,380,000 License and Permits $2,401,000 $2,401,000 $2,310,000 $2,330,000 Use of Money and Property $2,041,000 $2,391,000 $2,520,000 $2,580,000 Charges for Current Services $13,996,700 $14,165,200 $14,160,000 $14,190,000 Other Revenue $1,617,000 $1,792,000 $2,220,000 $2,430,000 Transfers In from Parking Fund $525,000 $525,000 $525,000 $525,000 Total Revenues+Transfers In 90,499,700 91,076,200 93,955,000 96,535,000

EXPENDITURES
Salary and Wages      61,480,000      60,980,000               64,340,000      66,850,000 Maintenance and Operations      18,880,000      18,380,000               19,450,000      20,050,000 Capital Equipment            950,000            950,000                 1,000,000        1,000,000 Special Programs        8,145,000        8,010,000                 7,390,000        7,480,000 Transfers to Housing Fund            500,000            500,000 500,000            500,000 Total Expenditures + Transfers Out 89,955,000 88,820,000 92,680,000 95,880,000 Operating Income (1) $544,700 $2,256,200 $1,275,000 $655,000 FY 2023‐24
Revised
Estimate FY 2024‐25 FY 2025‐26
Revenues (Growth)
Property Tax 6.0% 8.0% 3.0% 3.0%
Sales Tax 2.0% 0.0% 2.0% 2.0%
Transient Occupancy Tax 4.0% 2.0% 5.0% 4.0%
Expenditures (Increase in Cost)
Salaries (Includes Overtime/PT at 3%) 4.0% 3.0%
Maintenance and Operations 3.0% 3.0%
Special Programs 1.0% 1.0%
Medical Insurance 5.0% 5.0%
Workers Compensation 5.0% 5.0%
General Insurance 8.0% 8.0%
Notes:
(1) Portion of operating income is typically added to maintain 20% General Fund Reserve.

Forecast
FY 2023‐24
Adopted
City of Laguna Beach
General Fund Forecast
Assumptions in Growth in Revenue and Expenditure Costs
Forecast
FY 2023‐24
Adopted

General Fund Forecast
Programs/Costs that could impact the General Fund forecast include:
• Labor negotiations with the Fire Association (MOU Expires 6/30/2024) • Labor negotiations with Police and Fire Management Association (MOU Expires 6/30/2024)
• Increased costs for the fuel modification program, depending on success of grant applicants
• Fire Department Standards of Cover (if applicable)
• Additional Funding for Ongoing Strategic Planning Efforts

STRATEGIC PLANNING SESSION

FINANCIAL OUTLOOK
City Council
January 19, 2024
Financial Strategies
 Fiscal Policies
• 20% General Fund Reserve
• 10% Disaster Fund Reserve
 Budget review every six months
 Ten-Year Capital Improvement Program
 Ten-Year Wastewater Financial and Capital Improvement Program  Financial Forecast
1 2

Assumptions
 Revenues “softening” returning pre-pandemic average growth  Chapman University: slow growth for 2024, no recession  Known increases to the Budget ≈ $2.5 million: • Salaries assumption reflects labor agreement ≈ $1.5 million • Fire Association Expires 6.30.24
• Police and Fire Management Expires 6.30.24
• Municipal Employees and Management 6.30.25
• Marine Safety Association 6.30.25
• Police Association 12.31.26
• CalPERS Unfunded Liability payment increase ≈ $600,000 • Financing Authority Debt Service payment increase ≈ $400,000 General Fund Revenue Assumptions
3 4

General Fund Expenditure Assumptions
Assumptions: • Salaries and Benefits: • Follows labor agreements, then 4% increase 2024-25, 3% in 2025-26 • Increases CalPERS unfunded liability payment • 5% annual increase Workers’ Compensation • 5% annual increase Medical Insurance
• Maintenance and Operations: • 3% inflation
• 8% annual increase in General Liability Insurance
General Fund Forecast
6 (1) Portion of operating income is typically added to maintain 20% General Fund Reserve. 5 6

PARKING FUND*
* Parking Fund Revenue estimate lower by $600,000

OTHER FUNDS AND RESERVES
STREET

LIGHITING AND

UTILITY FUND

CAPITAL

IMPROVEMENT
FUND
• $8.9M annually
• Funding for major
City Capital
Projects
• Will experience a
decline in revenue
during a recession
• $1.9M annually • Acquire and
maintain
streetlights
• Transfer $1M
annually to
Wildfire Safety
and Fire
Mitigation Fund.
20% ($16.1M)

GENERAL FUND

RESERVE
• Provides for major
decline in revenue
coverage, natural
disasters and
catastrophic events
• Provides a
minimum of 3
months’ operating
expenses.

DISASTER

CONTINGENCY
• Exclusively for
emergencies
• Target is 10% of
General Fund
Operating
Expenditures
• If used, need to
work to repay the
balance in 3 years
Target is 10% GF
($6.9M)
7 8

END PRESENTATION
9 9

Dear Mayor & City Council,
The City of Laguna Beach is a high performing organization focused on the priorities of the City Council and the needs of the community. I continue to be impressed by the collective effort to achieve routine and extraordinary tasks each day. The collaboration regularly demonstrated between and among City staff is truly exceptional. Administratively, however, several opportunities identified below exist to address lingering issues hindering operational efficiency while creating a path to more consistent application of City Council and administrative policies.

Below is a summary of issues, observations, and some selected suggested solutions for the City Council’s consideration.

Items Requiring City Council Policy Direction

1. Agenda Items added by Council members. Is the policy for determining the manner for placing matters on the City Council agenda (See attached Reso. 22-066, attachment 1) meeting City Council expectations? Other area cities have adopted alternative methods (also attached), which may or may not better suit Laguna Beach. Samples are provided (attachment 2) to facilitate a discussion to determine if an improved method would better meet your interests.

2. Council and Commission Meeting Agendas. A sample of a new agenda format has been prepared by the City Attorney and I (attachment 3), to serve as a point of departure, to facilitate a general discussion of the City Council to determine if an updated meeting format might help you better manage the business of the City while simultaneously better serving the community. If there appears to be consensus that a new format would improve the meeting experience for all, staff can revise according to such consensus. In any case, the Municipal Code should be updated (see attachment 4) to incorporate changes made since the relevant Code section was last revised.

3. Appointment of Mayor and Mayor Pro Tem. It is recommended that the City Council codify means by which the Mayor and Mayor Pro Tem are appointed. The Municipal Code is silent on this matter, which was the subject of discussion by the City Council on November 21, 2023. It is recommended that staff prepare a draft ordinance codifying the determination made by the City Council on that date.

Sample language (in part): “Sec. XXX Presiding Officer
Policy Issues & Observa�ons
for Considera�on

a) City Council shall meet at its usual place of meeting on the first Tuesday in December after the General Municipal Election, provided that the Elections Official has certified the election, and shall pass a resolution reciting the fact of the election, shall install the newly elected officers and shall choose one of its members as Mayor and one of its members as Mayor Pro Tem. b) The Mayor, and the Mayor Pro Tem, shall serve a term of one year, or until a successor for each position is chosen. Three affirmative votes shall be required to choose or change the Mayor or Mayor Pro Tem.
c) In addition to the powers and duties of a Councilmember, the Mayor, or in the Mayor's absence, the Mayor Pro Tem, shall be the presiding officer of the City Council.

4. Legal Opinions. I recommend establishment of a City Council policy for defining the authority that a member of the City Council has to initiate an assignment of the City Attorney’s Office to prepare a written legal opinion and distribution of the same. A sample policy is provided (attachment 5). If Council consensus exists that a policy would be helpful, staff would prepare one and present it for adoption and implementation.

5. Committee Work Plans and Assignments. In addition to the City Council policy initiatives that are the subject of City staff’s ongoing workplan, new significant work efforts arise throughout every year requiring redirecting staff attention and financial resources. This is customary—and necessary—in every city. For example, this year, addressing a need for more pickleball courts, exploring community pool expansion (and associated funding and ongoing operational costs), reviewing fuel modification treatment protocols (glyphosate alternatives) and other important community matters arose after last years’ January Planning Workshop. The organization must be nimble to adjust to changing policy priorities and the City Council should be aware that redirection of attention to changing priorities can affect the pace of progress of other policy initiatives.

Another organizational dynamic effecting organizational throughput with which to be aware is the collective staff effort given to the workload of performing routine work while also pursuing ambitious annual workplans of certain City committees and otherwise supporting the work of other boards, commissions, committees, and City Council subcommittees. As an aside, the matter of City Council appointments to its own committees and subcommittees was deferred to the January Planning Workshop and thus a roster of existing committee assignments is included here as attachment 6.

This is all to say that City staff is committed to achieving the aspirations of the City Council and its advisory boards, committees, and commissions and to perform at a very high level.

It is also to acknowledge the volume of work has a direct correlation with the pace and quality of project delivery. It is also to observe that pursuit of additional projects will in some instances unavoidably displace—in the moment—staff efforts made toward other policy interests.

6. Prohibition of Placing items on City Council agenda that of a nature outside of the City’s jurisdiction. There is no urgency to this matter, but the City Council may wish to consider adopting an ordinance eliminating the ability to place on the City Council agenda items that are of a subject matter not within your jurisdiction. Staff does not intend to pursue this matter in the absence of City Council policy direction to do so.

Sample language: “Sec. XXX. - Nonmunicipal matters.

The City Council will not consider or act upon matters of a nonmunicipal nature, such as political endorsements, measures submitted to voters and bond issue or tax overrides of other agencies. While individual members of the Council may take public positions concerning nonmunicipal affairs, they shall not do so during or as part of any City meeting or official function.

Informational Items That Will Either Be Undertaken and/or Return to the City Council at a Later Date

7. Recodification of Municipal Code. The City’s Municipal Code was last re-codified sometime around 1953. Some say that municipal codes should be recodified every 10-15 years. The scope of recodifying our code would include a complete Legal Review of our code and the incorporation of all appropriate legislation. Given the circumstances it is very likely that there are instances where Laguna Beach ordinances have been adopted over the years that have not been incorporated into our online Muni Code. Comprehensive independent review of an existing municipal code also includes experienced codification attorneys reviewing our code in its entirety to ensure that it is grammatically correct, free of conflicts, and internal inconsistencies and conforms to state law. The assignment would require approximately 18 months to complete.

8. Comprehensive Review of Zoning Code. See above. A comprehensive review of the City’s Zoning Code would almost certainly benefit all those dependent upon it—staff, project applicants, prospective applicants, project advocates/opponents, residents, etc. The Zoning Code, and administrative management of it, is widely perceived as being unwieldy and problematic for all parties. Inspired by the City Council’s 2022 Strategic Planning session of objective of “implement continued improvement,” staff has initiated a Request for Proposal, with contract award date set for a March 2024 City Council meeting.

9. City Financial Policies & Procurement. The City’s annual budget, including all funds, is approximately $140M. I recommend that the City’s financial policies, presently located in a variety of documents be updated and gathered into a single document and enhanced to provide greater clarity and guidelines to best ensure Council and community fiscal interests are both clearly articulated and achieved. Many of the City’s existing policies were last updated in 1953, 1965, or 1971. I have assigned to Assistant City Manager Gavin Curran the task of preparing comprehensive draft financial policies for City Council consideration.

Regarding procurement practices and policies, there is no individual responsible for oversight and compliance of applicable purchasing requirements. The City’s purchasing system is antiquated and inefficient, as revealed by the recent annual audit and the

procurement issues raised by our independent auditors. The existing purchasing system places the responsibility of compliance on the departments, which is not optimal and lacks an ideal level of checks and balances. A dedicated procurement officer provides several benefits, including cost savings through effective negotiation, improved compliance with laws and regulations, and increased efficiency through streamlined processes. Additionally, procurement officers contribute to quality assurance, supplier diversity, transparency, strategic sourcing, and innovation. Overall, the role of a purchasing agent is important in improving efficiency and effectiveness in city purchasing operations. Staff will seek to replace an existing position through attrition to create a procurement officer position at little to no financial impact to the City’s budget.

10. Council, Commission and Committee Action Minute Policy. Although it has been the practice of the City Clerk, I recommend establishment of a clearly written policy for preparing action minutes of City Council, Commissions, Boards, and Committees. A policy that clearly articulates the purpose and manner of action minutes would eliminate any ambiguity related to how the City can memorialize the public record of actions taken at the City’s public meetings. A sample policy is provided at attachment 7 for reference. Note that Section IV of the sample policy provides that a full record of the meeting is retained in video format for future reference.

Absent Council objection, staff will prepare one and present it for adoption and implementation.

Presented by:

Sean Joyce, Interim City Manager
January 2024

Attachment 1

Alternative Manners for Councilmembers
Placing Items on the City Council Agenda
Example #1
Placing an Item(s) on a future City Council Agenda. A member of the City Council may place an item(s) on a future City Council agenda for consideration by submitting a title or topic sufficient to satisfy the requirements of the Brown Act on or before 5:00 p.m. on the Tuesday preceding the meeting at which the item is to be considered. Item(s) to be placed on a future City Council agenda shall be primarily focused on issues that directly impact the finances, property, authority, policies, or interest of the City of Newport Beach and/or finances, property, or rights of the residents of the City of Newport Beach. When requested, the City Attorney shall assist a City Council Member with the drafting of an agenda title or topic to ensure consistency with the Brown Act. These items will appear under the section of the agenda titled, "Council Member Items" and any Council Member may ask clarifying questions regarding the item to ensure understanding of the matter.

At the Council meeting, if 3 members of the City Council wish to examine the issue, staff will prepare an appropriate report and return the item to the City Council for discussion and/or action.

Additionally, the City Manager may place an item(s) on the agenda at the City Manager's discretion. (Newport Beach policy)
Example #2
Two members of the City Council may propose at a Council meeting that an item be agendized for future Council discussion, consideration, and/or action. Subject to notice and hearing requirements, the item shall be agendized for a future meeting and noticed as required by law.

Items agendized pursuant to this section shall appear on the agenda under the Councilmember Items portion of the agenda and the names of the Councilmembers who agendized the item shall be included with the item description. Staff reports will only be prepared if a minimum of three members of the City Council vote affirmatively at a Council meeting to direct staff to prepare a report. (San Clemente policy)
Example #3

1. Any two City Councilmembers may request that an item be placed on a City Council Agenda for discussion and possible action.

2. For the item to be placed on the agenda:
a. Councilmembers intending to request that an item be placed on a City Council Agenda shall notify staff as soon as possible, but not later than a week and a half prior to the agenda packet distribution.
b. The request must be submitted to the City Manager in writing and include the wording of the agenda item and a brief explanation of the issue to be discussed; and c. The information and materials needed for agenda packet distribution must be submitted no later than 5:00 p.m. on the Thursday prior to the City Council agenda packet distribution date.

Attachment 2
d. Exceptions will be made for requests that are deemed by the city manager to be time sensitive or are deemed an emergency.

2. Generally, a staff report will not be prepared for the item. (Unknown origin) Example #4
I. PURPOSE
To establish the procedures by which a member of the City Council can have items placed on the agenda for an upcoming regularly scheduled Council meeting.

II. BACKGROUND
Items may be placed on the City Council’s regular agenda by the City manager or any individual Council member for discussion and/or action. The City Clerk must post meeting agendas a minimum of 72 hours prior to the meeting.

III. POLICY
Members of the City Council may place any discussion item they wish on an upcoming regularly scheduled City Council meeting agenda by conveying the appropriate title to the City Manager. Agendas for specially called City Council meetings shall be limited to the items that are the subject of the special meeting.

City staff will not prepare any reports or analyses relating to Council agenda items submitted pursuant to this policy until directed to do so by a majority of the City Council.

IV. PROCEDURES
The placement of items on a regular City Council meeting agenda by members of the City Council shall conform to the following procedures:

1. Council members wishing to place an item on an upcoming meeting agenda shall contact the City Manager by telephone, email, or in person and convey the desired title of the agenda item and the desired meeting date (if not the immediately upcoming regular meeting).

2. The City Manager shall advise the City Clerk to include the agenda item title and the name of the Council member requesting it under the Councilmember Items section of the agenda. These shall be listed under Councilmember Items in the order in which they were received by the City Manager.

3. Council members wishing to place a “Council member item” on an agenda must contact the City Manager with the appropriate title before 5:00 pm on the Wednesday prior to the meeting. This will give the City Clerk time to finalize the agenda and post it within the 72-hour statutory timeframe. Requests received after this deadline shall be placed on the following regularly scheduled meeting.

4. City Council members may not place Councilmember Items on agendas for special meetings.

5. City staff will not prepare any reports or analyses relating to Council agenda items submitted pursuant to this policy until directed to do so by a majority of the City Council. (Yorba Linda policy)

Draft Revised Agenda Format
B-1. AGENDA, PREPARATION OF
An agenda shall be prepared for each Regular Meeting containing the specific items of business to be transacted and the order thereof. Items of business may be placed on the agenda by the City Manager, his representative, the City Attorney or by a majority vote of the City Council at a prior Council meeting. Individual City Council Members may place items for initial discussion on the agenda under “Matters from City Council Members”, in accordance with City Council policy established by resolution.” Agenda items shall be delivered to the City Manager and/or City Clerk; agenda items directed by a majority vote of the City Council shall be prepared by staff. The City Clerk shall thereafter prepare the agenda under the direction of the City Manager. The agenda, together with all reports pertaining thereto, shall be delivered to the Council Members and the public no later than the 72 hours preceding the Regular Meeting. No matters other than those listed on the agenda shall be acted upon by the City Council, except as otherwise authorized by Government Code section 54950 et seq. (the “Brown Act”).

B-2. ORDER OF BUSINESS
At the time set for each Regular Meeting, the Council Members, City Clerk, City Manager, City Attorney, and such Department Heads as have been requested to be present, shall take their regular places. The Mayor shall call the meeting to order, and the business of the City Council shall be taken up for consideration and disposition in the order set forth in Section B-3, except that with the consent of the Council Members present, the Mayor or City Manager may request that items be taken out of order.

B-3. AGENDA CONTENTS
The Agenda shall contain the title headings and shall be conducted in the order and manner as set forth below:
(a) ROLL CALL FOR CLOSED SESSION (when agendized). The City Clerk shall call the roll of the Council Members prior to closed session and the names of those present and absent shall be entered in the minutes.
(b) PUBLIC COMMENT ON CLOSED SESSION ITEMS (when agendized). (c) RECESS INTO CLOSED SESSION (when agendized). All Closed Session items shall be listed on the Agenda, announced, and considered pursuant to Sections 54950 et seq. of the California Government Code prior to the City Council’s recess into closed session. (d) ROLL CALL The City Clerk shall call the roll of the Council Members at commencement of the Regular Meeting and the names of those present and absent shall be entered in the minutes.

Attachment 3
(e) PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA (f) CLOSED SESSION ANNOUNCMENT(S). A closed session report shall be provided, as required pursuant to California Government Code Section 54950 et seq. (g) PRESENTATIONS. The City Council shall from time to time recognize individuals and organizations and present awards or Certificates of Appreciation, or receive special presentations, as previously scheduled and described on the agenda cover sheet. (h) ADDITIONS or DELETIONS – City Manager
(i) PUBLIC COMMENTS – NON AGENDIZED ITEMS. The City Council shall consider Public Comments, of up to three (3) minutes each as determined by the Mayor and for a total of 45 minutes, from the audience concerning items not appearing on the agenda.

Public comments beyond 45 minutes shall be reconvened at the conclusion of public hearings. In accordance with the provisions of the Brown Act (Government Code Section 54950 et seq.), no action or discussion may take place by the Council on any item not on the posted agenda. Speaker cards may be used by the City Clerk’s Office for the orderly conduct of the meeting; those not completing speaker cards may speak after those who completed speaker cards.
(j) MATTERS FROM THE MAYOR, CITY COUNCIL MEMBERS AND CITY MANAGER. The City Council shall consider all oral and written communications from Council Members and City Manager.
(k) CONSENT CALENDAR. All matters listed under Consent Calendar are considered by the City Manager to be routine and will be enacted by one roll call vote. There will be no discussion of these items unless members of the City Council request specific items to be removed from the Consent Calendar for separate discussion. Prior to the removal of specific items by City Council Members, any member of the public may address the City Council on items on the Consent Calendar. Each speaker shall have up to three (3) minutes for the Consent Calendar, as may be shortened or extended, or a cumulative limit on the time for all public speakers may be imposed, at the discretion of the Mayor. (l) REGULAR BUSINESS. This section is for a wide variety of matters such as consideration of ordinances for introduction, resolutions, extraordinary policy and business matters, staff reports and recommendations. Any member of the public may address the City Council on any item of Regular Business. Each speaker shall have up to three (3) minutes for the Regular Business items, as may be shortened or extended, or a cumulative limit on the time for all public speakers may be imposed, at the discretion of the Mayor. (m)PUBLIC HEARINGS The City Council shall conduct all Public Hearings in accordance with the provisions of applicable Laguna Beach procedure and State law. Any member of the public may address the City Council on any Public Hearing item. The Mayor shall have discretion to establish the time allocated for the appellant, the applicant, and any speakers in support or against, respectively.

(n) COUNCIL MEMBER ITEM(S). The City Council shall consider matters submitted by members of the City Council in accordance with Resolution No. 22.066, as may be amended.
(o) ADJOURNMENT

Attachment 4

Sample Policy: Written Legal Opinions
Purpose
To provide clear direction regarding the distribution of City Attorney resources and written legal opinions, henceforth, requested by a member of the Laguna Beach City Council. For purpose of this policy, the term “City Attorney” shall refer to the City’s appointed City Attorney, or any attorney or law firm acting as official counsel and/or special counsel for the City.

Background
The City Attorney is the chief legal advisor to the City Council, the City Manager, and all City departments, offices, and agencies acting under the administrative direction of the City Manager. (LBMC Chapter 2.12.) The City Attorney represents the City in all legal proceedings and performs such other duties as may be prescribed by the City Council. (LBMC Section 2.12.010.) The client of the City Attorney is the City as a whole and not individual elected officials, members of boards or commissions, the City Manager, or city staff.

Legal questions periodically arise concerning policy items and/or city matters of interest to the City Council. It is appropriate that the City Attorney provide legal analysis to members of the City Council, at their request and for their benefit as they consider City matters.

Policy/Procedure

1. City Council Request for Legal Advice from the City Attorney’s Office:
a. Members of the City Council may directly seek legal advice from the City Attorney, and the City Attorney will endeavor to answer the question and provide the opinion to the requesting member of the City Council in a reasonable timeframe. The City Attorney will prioritize new requests for advice from any Council Member over items previously analyzed.
b. Notwithstanding Section 1.a, any single request for legal advice from any individual City Council Member requiring more than two (2) hours of legal research and/or analysis shall require approval and direction from the City Council, subject to the City Council’s policies relating to agendizing matters for City Council consideration. c. Notwithstanding Section 1.b, any Councilmember may request legal advice pertaining to potential conflicts of interest relating to participation in a potential or actual future City action, irrespective of the length of time required to conduct such research and/or analysis.

2. City Council Request for a Confidential City Attorney Written Legal Opinion:

Attachment 5
a. Whenever the City Attorney is requested to issue a written legal opinion or informal memorandum containing privileged information in accordance with Section 1.b, the City Attorney shall label it as “Privileged and Confidential.” Written opinions may take the form of memorandum, correspondence, or email. A City Official receiving confidential advice from the City Attorney may not waive the confidentiality created by the attorney-client privilege unless authorized to do so by a majority vote of the City Council. Since the holder of the privilege is the City, the privilege belongs to the City rather than to any individual officer or employee.
b. The City Attorney shall provide the confidential written legal opinions to the entire membership of the City Council, with a copy to the City Manager. Such opinions remain subject to the attorney-client privilege unless official City Council action directs otherwise for a specific document.
c. A member of the City Council may request City Council consideration to make a confidential City Attorney written opinion publicly available upon a majority vote by the City Council.

AGENDA REPORT
Meeting Date
Decem her 12, 2023
Regular
20 SUBJECT: CITY COUNCIL REPRESENTATION FOR VARIOUS REGIONAL

ORGANIZATIONS, COMMITTEES, AND AD HOC SUBCOMMITTEES
RECOMMENDATION: It is recommended that the City Council:

1. Review City Council appointments to various regional organizations and committees, and consider and make any changes to appointments, as desired;

2. Review the list of ad hoc subcommittees, and make adjustments, if needed, and

3. Consider adoption of a City Council Policy to provide additional clarification on the use and formation of ad hoc subcommittees, if deemed necessary.

Appropriation: ____________ _ Fund Name:

Submitted By: GvvVIA'\ICUY'VC{Alv
Gavin Curran, Assistant City Manager/ CFO

SUMMARY OF THE MATTER
The City Council annually assesses City Council appointments to various regional organizations and committees, and to the City Council ad hoc committees. Attachment 1 reflects the City Council's assignments to these regional organizations and committees and liaison appointments, while Attachment 2 lists the existing ad-hoc subcommittees formed by the Council.

DISCUSSION
Each December, the City Council makes its appointments to various organizations, committees, and ad hoc committees to determine the need for changes, including the possibility of sunsets for committees and ad hoc committees that are no longer deemed necessary.

With respect to the City Council appointments ofregional organizations and committees, as well as Council liaison appointments, Council may wish to review the existing appointments, as set forth in Attachment 1, and determine whether to make any changes to those appointments.

Council appointments to existing ad hoc Council subcommittees, as set forth in Attachment 2, may also be considered for review and changes to their respective membership. In addition to reviewing appointments to these subcommittees, Council may also wish to review whether the existing ad hoc committees should continue, be sunsetted, or be converted into a standing committee.

While standing committees are more permanent and are categorized as 'legislative bodies' under the Brown Act, ad hoc committees are temporary and must adhere to the following guidelines: 1) appoint only two City Council members as the entire body of the ad hoc committee; 2) define a specific, one-time project or purpose for the ad hoc committee members; and 3) have a limited duration. Once the ad hoc committee completes its designated task, it is dissolved.

Attachment 6
City Council Representation for Various Regional Organizations, Committees, and Ad-Hoc Subcommittees
December 12, 2023
Page2 of3
Due to the limited duration requirement, staff recommends that the City Council reapprove any ad hoc committee it wishes to continue for the following year. If the Council anticipates that the committee's assignment will extend beyond December 2024 or that its responsibility will be expanded, converting it into a standing committee should be considered. The fundamental rules for both Standing and ad hoc committees, as outlined in Gov. Code sec. 54592(b ), are as follows:
• Standing Committees have a membership of two Councilmembers (but may include other nonCouncilmembers as part of the Committee), totaling less than a quorum of the legislative body, and either (1) possess a continuing subject matter jurisdiction ( e.g., Parking and Transportation), or (2) follow a meeting schedule established by ordinance, resolution, or formal action of the Council.

Standing Committees are considered "legislative bodies" under the Brown Act, necessitating compliance with rules related to agendas, meetings, quorums, etc. • Ad Hoc Committees are advisory committees composed solely of two members of the legislative body (and may not include any other members), totaling less than a quorum of the legislative body, which are limited in both scope and duration. Ad hoc committees, by definition, are not considered "legislative bodies" under the Brown Act, exempting them from rules regarding agendas, meetings, quorums, etc.

Further, in addition to reviewing and approving ad hoc committees, the City Council should consider adopting a policy describing the criteria for their establishment, Attachment 3. Adoption of such a policy would help clarify the City Council's position on the use and formation of ad hoc committees-an issue that has previously led to some confusion for staff.

Additionally, staff plans to present a comprehensive City Council Policies and Procedures Handbook (Handbook) for approval at a future City Council meeting. The Handbook serves two primary purposes: (1) a compilation of formally adopted Policies and Procedures through resolutions, ordinances, or minute actions and (2) an informational guide for individuals engaging in business or addressing the City Council.

FINANCIAL ANALYSIS
There is no financial impact related to this matter.

ENVIRONMENTAL ANALYSIS
The appointment of Councilmembers to regional organizations and committees; review of and appointment to subcommittees; and adoption of a City Council Ad Hoc Committee Policy is not considered a project subject to the California Environmental Quality Act review pursuant to State CEQA Guidelines, section 15378(b)(5), which states that a project does not include "[o]rganizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment." The City's consideration of appointment of City Council representation for various organizations, committees, and adhoc subcommittees, and adopting an Ad Hoc Committee Policy, is an organizational activity that is not tied that will not result in direct or indirect physical changes in the environment and therefore is not a project requiring environmental review.

City Council Representation for Various Regional Organizations, Committees, and Ad-Hoc Subcommittees
December 12, 2023
Page3 of3

ATTACHMENTS
I. City Council Assignments and Liaison Appointments (Pg. 4)

2. Ad Hoc Subcommittees Formed by the City Council (Pgs. 5-7)

3. City Council Policy Regarding use and formation of an ad hoc committee. (Pg. 8) Report Prepared By: Coordinated With:

Gavin Curran, Assistant City Manager/CFO Megan Garibaldi, City Attorney

Revised and Approved by City Council ____ _
2024 ORGANIZATIONS AND COMMITTEES REPRESENTED BY CITY COUNCIL Name of Organization
Assignments for the Mayor Only
Festival of Arts Board of Directors
League of California Cities, OC Division
Meeting Schedule
Monthly-2nd Wednesday of month at 1 :00 p.m.

Monthly - 2nd Friday of month at 3 :30 p.m. (Zoom)
Councilmember Assigned
Mayor-ex officio, Kempf (a)
Mayor (primary representative)
all Councilmembers invited
Orange County City Selection Committee Periodic - 2nd Thursday of month Mayor So. California Association of Governments (SCAG) Annual-1st Thursday in May (daytime) Mayor South Orange County Assoc. of Mayors Quarterly -3rd Thursday of month at 7:30 a.m. Mayor NOTE: The Mayor Pro Tern is authorized to represent the City and vote on the City's behalf in the absence of the Mayor. Resolution No. 11.063 City Council Assignments
Coastal Greenbelt Authority
Festival Coordinating Committee
HIV Advisory Committee
Irvine Bowl Policy Committee
Laguna Art Museum Board
Laguna Beach Seniors
~ Laguna Canyon Foundation
OC Vector Control District1
Orange County Library Advisory Committee
South Laguna Water/Sewer Committee
South Orange County Wastewater Authority (SOCW A)2
South Orange County Watershed Mgmt. Area Exec Comm
Liaison Appointments
Arts Commission 2nd/4th Monday 5:00 p.m.

Environmental Sustainability 3rd Monday 6:00 p.m.

Heritage 3rd Monday 6:00 p.m.

Housing & Human Services 1st Wednesday 4:00 p.m.

Audit Review & Investment Advisory 3 As Scheduled
1 Term is 2 years at discretion of City Council
2 Payment of $100 per meeting attended
Every other month, 2nd Wednesday at 3:00 p.m.

January & March, as scheduled
1st Thursday of month at 4:00 p.m.

Quruterly, 3rd Thursday
4th Monday of month at 5:00 p.m.
4th Tuesday of month at 3:00 p.m.

Every other month, 3rd Thursday at 4:00 p.m.
3rd Thursday of month at 3:00 p.m.

Quarterly
Qua1terly, Wednesday at 2:00 p.m.

As Scheduled - usually in a.m.

Quruterly
Orgill, Weiss (a), Litschi (a)
Orgill
Kempf
Kempf, Whalen
Whalen, Orgill (a)
Kempf, Rounaghi
Kempf, Weiss (a)
Rounaghi
Weiss, Whalen (a)
Rounaghi, Kempf
Weiss, Whalen (a), McAvoy (a)
Kempf+ Whalen (a)
Kempf PTC 4th Thursday 6:00 p.m. Rounaghi
Weiss, Rounaghi Recreation 2nd Monday 6:00 p.m. Kempf
Orgill Emerg/Disaster Prep 1st Monday 6:00 p.m. Whalen
Whalen, Rounaghi View Restoration 2nd Wednesday 5:00 p.m. Orgill Kempf, Whalen (a), Orgill (a2)
3Second alternate may participate if primary liaison or first alternate are unavailable (a) = Alternate
(a2) = Second Alternate

CITY COUNCIL AD HOC SUBCOMMITTEES
Number City Council City Council Date Anticipated
Ad Hoc • Staff Purpose Committee
Subcommittees Representative Approved Conclusion
Staff Liaisons: The Ad Hoc Committee was
I Mission Hospital • Whalen City Manager
established to meet with Reapproved
• Laguna Beach • Weiss Mission Hospital on issues December 2022 • Chief Calvert related to the hosoital.

The Ad Hoc Committee was
established to support
2 Leadership • Kempf Staff Liaisons: Jeremy Leadership Laguna, a citizens' Reapproved Upon completion academy comprising five of fifth workshop
Laguna • Rounaghi Frimond workshops designed to acquaint December 2022
residents with the inner
workinE!s of the Citv.

The Ad Hoc Committee was V, established to identify and Staff Liaison: prioritize additional programs,
Wildfire • Whalen • Jeremy Frimond mitigation measures, staff and 3 Reapproved
Mitigation and • Kempf • MarkMcAvoy equipment needed to further December 2022 Fire Safety • Chief King reduce the risk of loss of life • Chief Calvert and property damage from
wildfires and the cost to
imolement them.

Staff Liaisons:
• Anthony Viera The Ad Hoc Committee was
Parking and • Whalen Michael Litchi established to assess the City's Reapproved • 4 • Kempf Transportation • City Manager public parking needs and study December 2022 • MarkMcAvoy development solutions.
• Marc Wiener
Staff Liaison: The Ad Hoc Committee was
Laguna • Whalen • MarkMcAvoy established to further support Upon completion of )> 5 Canyon Road Rounaghi Tom Perez
the current undergrounding and December 2022 current project work • • roadway improvement work on
• City Manager La!!una Canvon Road.

CITY COUNCIL AD HOC SUBCOMMITTEES
Number City Council City Council Date Anticipated
Ad Hoc • Staff Purpose Committee
Subcommittees Representative Approved Conclusion
The Ad Hoc Committee was
Staff Liaisons: established to participate with
Artist Work/Live • Rounaghi • Jeremy Frimond staff in developing strategies April, 2023 6 Housing • Orgill • Jennifer Savage for artist housing and • City Manager workspace units, including
public-private partnerships.

The Ad Hoc Committee was
Staff Liaisons: established to work with staff
Facilities • Rounaghi on the development and the
7 • Gavin Curran February, 2023
Master Plan • Orgill MarkMcAvoy scope of work and the
• procurement process for the
Facilities Master Plan effort.

The Ad Hoc Committee was
"' established to evaluate the
• Whalen Staff Liaisons: feasibility, capital and
8 Pool • Kempf • Michael Litschi operational costs, community October 2023 Early 2024 • Alexis Braun impacts, and programming
possibilities associated with
various nool exnansion options.

The Ad Hoc Committee was
Rounaghi Staff Liaisons: established to work with the Upon completion of • 9 Aliso Vista • Jeremy Frimond Laguna Beach Unified School July 2023 resolution of • Whalen Jennifer Savage District on extending the Vista resolution oflease • Aliso Lease. extension
The Ad Hoc Committee was
established to work with the
City Manager, City Attorney,
Rounaghi Staff Liaisons: and Townsend Public Affairs to 10 ADU Legislation • Jennifer Savage refine the legislative proposal October 2023 • 2024 • Whalen and strategy for the upcoming • Jeremy Frimond 2024 legislative session. Meet
with relevant state stakeholders,
includin" but not limited to, the

CITY COUNCIL AD HOC SUBCOMMITTEES
Number City Council
• City Council Date Anticipated
Ad Hoc Staff Purpose Committee
Subcommittees Representative Approved Conclusion
state HCD, Coastal
Commission, and our Orange
County legislative delegation to
lobby for the legislative
proposal and advance the City's
regulatory and legislative
priorities related to ADU's as
defined in the City's Legislative
Platform.

A member of the city Council
Aliso Creek
will serve as the City
Estuary representative to work with Ed
Staff Liaisons: Almanaza in effo1is to advance
A Restoration • Whalen Jennifer Savage the concept development of an Project • May 2021
• Weiss Aliso Estuary Restoration
(City • Jeremy Frimond
Representative) Project and provide periodic
status reports to the City
Council
The Planning Commission Ad
Promenade Commissioner Staff Liaisons: Hoc Committee was established B Planning • Kellenberg • Marc Wiener to work with the design firm on August 2023 Commission refinement of the final design
• Whitin • Tom Perez for the Forest Avenue
olaza/oromenade oroiect.
*Revised 12.4.2023

City Council Policy
Ad Hoc Committees
Policy
Attachment 3
The Council may use Ad Hoc Committees on a limited basis where necessary to study City business in greater depth than what is possible in the time allotted for Council and Standing Committee meetings.

Purpose
These rules are intended to clarify the distinctions between Standing and Ad Hoc Committees and to set up guidelines for the creation of Ad Hoc Committees.

General Requirements
Council Ad Hoc Committees shall be subject to the following procedural rules:
1) Definition o[Ad Hoc Committee
An Ad Hoc Committee is an advisory committee composed solely of less than a quorum of members of the Council. The work of an Ad Hoc Committee is limited to a specific, one-time project or purpose.
2) BrownAct
Ad Hoc Committees do not constitute legislative bodies and are not subject to the requirements of the Brown Act.
3) Appointment
The City Council may appoint two or fewer members of the Council to serve on an Ad Hoc Committee. The City Clerk will announce any Ad Hoc Committee created by the City Council, its membership, and its stated purpose by posting this information on the City Council website. The City Manager shall prepare a report to the Council about the anticipated time commitment required for staff to assist the Ad Hoc Committee.
4) Duration
Ad Hoc Committees are created for a finite period of time. If an Ad Hoc Committee does not complete its task by the end of the calendar year or by completion of the specific, one-time project identified as the Ad Hoc Committee's purpose, it shall not continue unless reapproved by the City Council. Ad Hoc Committees may require conversion to a Standing Committee if the Committee is intended to continue for such time that it has continuing subject matter jurisdiction. 5) Members
Ad Hoc Committees shall consist of less than a quorum of Council members only and shall not include any other persons, such as members of other legislative bodies. 6) Reporting
Ad Hoc Committees shall report their recommendations to the Council in writing or orally. Any Council Member may, during the COUNCIL MEMBER QUESTIONS, COMMENTS, AND ANNOUNCEMENTS, request that an updated Ad Hoc Committee report be placed on the next meeting's agenda.
7) Termination o[Ad Hoc Committee by Maiority of Council A majority of the Council may vote to terminate any Ad Hoc Committee following the placement of the issue on the agenda.
8) Conclusion
A public announcement shall be made any time the Ad Hoc Committee has concluded its work and/or upon dissolution.
8

Sample Policy Resolution: Creation and
Publication of Action Minutes for City Council
Meetings

CITY COUNCIL POLICIES
I. PURPOSE
To require the use of action minutes to document the proceedings of City Council meetings.

II. BACKGROUND
The City is required to document the proceedings of City Council meetings. In the past, the City Clerk has generated “summary minutes” of City Council meetings. These minutes are intended to summarize both the discussion that occurred relative to each agenda item (both public and Council) as well as the various actions that the Council took.

Technology is now available that permits the streaming of the video feed of City Council meetings on the Internet. With this technology, a viewer may jump to specific agenda items to watch what occurred during the meeting. The technology also provides links to the staff reports that were prepared and submitted on each agenda item. As a result, the production of summary minutes has now become redundant. The production of “action minutes” (documenting the decisions and actions that were taken by the Council without summarizing the discussion that took place) would allow the City Clerk to make more effective and efficient use of staff time.

This same technology can also be adapted for use by each of the City Commissions - Traffic Commission, Library Commission, Parks & Recreation Commission and Planning Commission, utilizing online audio (rather than video) files.

III. POLICY
The City Manager shall ensure that the appropriate technology is available to create a video and/or audio record of City Council and City Commission meetings. These video/audio records shall be made available to the public through the City’s Internet website. In addition, the City Clerk shall create and publish action minutes for the proceedings of all Council meetings.

Attachment 7
IV. PROCEDURE
The City Manager and City Clerk shall utilize appropriate technology to insure that captured video and audio feeds of City Council meetings are streamed live on the City’s Internet website and are made available through an online archive for future retrieval.

The technology shall also ensure that the public has online access to the agendas of these meetings as well as any staff reports that were prepared.

The City Manager shall also make similar technology available for audio-only playback of all City Commission meetings. The archived files shall also be accessible through the City’s Internet website and shall also provide access to the agendas of these meetings as well as any staff reports that were prepared.

Following each City Council meeting, the City Clerk shall prepare and publish “action minutes” documenting the decisions and actions that were taken by the Council

Ref Category Project Name Project Update as of December 19, 2023 Status 1 Community
Design Outdoor Dining Program
The City Council approved a two‐year extension for the outdoor dining program during its November 7, 2023 meeting. On November 15, 2023, the Planning Commission extended the Temporary Use Permit (TUP) and Coastal Development Permit (CDP) for the Promenade.

Underway
2 Community
Design
Commercial District
Beautification/ Maintenance
Ordinance
The City Council is scheduled to review the draft ordinance during its January 9, 2024 meeting.  The code would require property owners to maintain commercial properties to a specified standard.

Conceptual
Phase
3 Community
Design
Downtown Specific Plan Phase II
(Housing Related Items)
The City retained CSG Consulting to prepare a program EIR and assist with the update. An overview was provided to the City Council on December 12, 2023.

Conceptual
Phase
4 Community
Design
Promenade on Forest Concept
Development
On July 11, 2023, Planning Commission recommended that City Council select the Forest Stroll option.  Staff is working with the Planning Commission subcommittee and will bring the item to the City Council in early 2024.

Conceptual
Phase
5 Community
Programs
Develop a Senior/Affordable
Housing Program
The City's Housing Coordinator is implementing Housing Element programs and identifying potential sites for affordable housing.  In addition to the 22 senior/affordable housing programs administered by the City and partner agencies
Underway
6 Environmental
Stewardship
Update the Open Space and
Conservation Element (Including
Watercourse Mapping)
The City Council is scheduled on January 9, 2024, to consider authorizing a service agreement to conduct a biological assessment on Jan 9, 2024.

Conceptual
Phase
7 Environmental
Stewardship
Climate Action and Adaptation
Plan
An Open House was held on November 14, 2023, inviting public input.

Staff intends to complete stakeholder meetings by the end of 2023.

Subsequently, the development of problem statements and reduction strategies will commence. The report is on schedule and is set to be presented to the City Council in Q3, 2024. Additional public meetings will be conducted prior to the City Council meeting. Actionable items will be presented to the City Council ahead of receiving the final report. Such items could include considering solar and battery systems at City facilities Conceptual
Phase
8 Environmental
Stewardship
Community Choice Energy:

Potential JPA Analysis
The City Council may consider exploring benefits and implications of joining Orange County Power Authority in 2024.

Conceptual
Phase
9 Environmental
Stewardship
Solar Panels on City Facilities
Assessment
In early 2024, the City is set to receive a comprehensive microgrid resiliency report, covering City Hall, Susi Q, Corp Yard, and the LBCRC. This report will offer guidance for implementing solar and battery backup systems at the evaluated facilities. The proposed projects may be deliberated upon by the City Council either in an upcoming meeting or as part of the budgetary process.

Conceptual
Phase
City Council's Policy Initiatives List & Larger Projects Inventory City Council Policy Initiatives
Projects are sorted by category then grouped by status within each category Revised 1.10.24

Ref Category Project Name Project Update as of December 19, 2023 Status City Council's Policy Initiatives List & Larger Projects Inventory 10 Infrastructure
Finalize Parking/ Mobility Master
Plan and Proceed with
Implementation
On June 13, 2023, the City Council reviewed and approved the Parking and Transportation Demand Management Plan. Staff was instructed to initiate the implementation of short‐term strategies outlined in the plan.

Progress on the short‐term strategies is expected to be presented to the City Council in February 2024.

Underway
11 Infrastructure Develop Funding Plan for Laguna
Canyon Road Improvements
Staff will present a status update to the City Council on January 9, 2023. Conceptual Phase
12 Infrastructure Facilities Master Plan
Contract award is scheduled for the January 9, 2024, City Council meeting.

While staff and the consultant will be working with City Council to implement approved recommendations throughout the process, the final report is expected 12 months after the contract is signed.

Conceptual
Phase
13 Internal
Operational
Improvements
Explore Community Development
Opportunities to Improve
Customer Experience
Community Development has expanded its ability to issue permits over‐ the‐counter and has also established an online appointment booking system. Goals for 2024 include fully transitioning to digital plans, initiating a comprehensive code update to streamline regulations, and improving informational handouts.

Underway
14 Internal
Operational
Improvements
Pursue Grant Funding An annual report summarizing applied‐for and received grants will be provided in spring 2024. Underway
15 Internal
Operational
Improvements
Develop the Workforce
Investment Initiatives/ Executive
Team Recommendations
Several employee training and engagement opportunities were offered in 2023. Employee training expanded to 30 sessions, including performance management, Critical Practices for Leading a Team for the Management Team, Leadership 101 for frontline staff,  and 7 sessions of Customer Service in the Public Sector, and Writing Emails, Letters & Emails. To show staff appreciation and celebrate our newly adopted City Values, five summer events and four Fun Friday theme days were held.

Underway
16 Internal
Operational
Improvements
Enhance Community
Communications
The City's Communications Plan was approved by City Council on August 22, 2023. Implementation of short‐term items, such as adding a new 'Frequently Asked Questions' button on the City website homepage, is underway. Additionally, the medium‐term goal of streaming City Council meetings to YouTube has been implemented.

Underway
Revised 1.10.24

Ref Category Project Name Project Update as of December 19, 2023 Status City Council's Policy Initiatives List & Larger Projects Inventory 17 Public Safety
Upgrade police, fire and
community serving facilities and
seismic analysis
The Tier 3 seismic analysis for City Hall, Fire Station 2 & 3 is underway.

Additionally, the Tier 1 analysis of the Corp Yard and SOCWA lift stations is complete. The results of the Tier 1 analysis are slated to be presented to the Emergency and Disaster Preparedness Committee in Q1, 2024.

Underway
18 Public Safety
Vision 0 Plan on City Owned
Streets Pending Funding
(Proposed During Annual Planning
Workshop)
Finalization of the Request for Proposals (RFP) for the Citywide Action Plan is underway, with plans to circulate it soon. The intention is to award the contract for the preparation of the Citywide Action Plan in February 2024.

Conceptual
Phase
19 Public Safety
Develop a Community Risk
Assessment and Standards of
Cover and Continue to Enhance
Fire Safety
ESCI presented findings to EDPC on Oct 2, 2023. The findings will be presented to City Council on Jan. 23, 2023.

Conceptual
Phase
20 Public Safety Enclose Marine Safety Lifeguard
Towers
The project was placed on hold to focus staff resources on the acquisition and management of South Laguna Beaches. Staff will return to City Council during a future meeting to present a project outline, which could include requesting authorization to retain technical experts to conduct preliminary engineering and analysis for each site.

Conceptual
Phase
21 Public Safety Replace Fire Station 4
A design contract was awarded to PBK.  Staff and PBK have engaged in discussions with South Laguna residents to deliberate on the proposed design. PBK is advancing design drawings, demonstrating ongoing progress.

The budget includes construction funds; however, it is anticipated that additional funds will be required to fully fund the project.

Conceptual
Phase
22 Community
Design
LBUSD's Proposed New
Community Pool
During its October 10, 2023 meeting, the City Council appointed Mayor Kempf and Councilmember Whalen to an ad hoc subcommittee. This subcommittee will collaborate with staff and stakeholders to explore various pool options and identify potential joint‐use opportunities with the Laguna Beach Unified School District. The ad hoc subcommittee will return to the City Council during the 1st quarter of 2024 to present various fiscal and programming implications.

Conceptual
Phase
Policy Initiatives Added by the City Council After the 2023 Annual Planning Retreat Projects are sorted by category then grouped by status within each category Revised 1.10.24

Ref Category Project Name Project Update as of December 19, 2023 Status City Council's Policy Initiatives List & Larger Projects Inventory 23 Community
Design Aliso Estuary Restoration Project
The Laguna Ocean Foundation (LOF) is spearheading the Aliso Creek Estuary Restoration Project concept, with the primary goal of restoring the natural ecosystem at Aliso Beach Park. A funding allocation of $100,000 was approved by the City Council on February 25, 2020. LOF is scheduled to deliver a project status update to the City Council on January 23, 2024. During this presentation, the City Council will have the opportunity to offer feedback and make decisions regarding continuation of the project.

Conceptual
Phase
24 Community
Programs Lang Park Pickleball Courts
At its October 24, 2023 meeting, the City Council directed staff to perform a CEQA analysis for converting one additional court at Alta Laguna to provide increased capacity for pickleball. Additionally, the Council instructed staff to revert the use of the courts at Lang Park to tennis play only. Staff was also directed to investigate additional sound mitigation options for Lang Park and explore alternate locations that could accommodate or expand pickleball courts.  Staff plans to present its findings to the City Council on January 23, 2024.

Conceptual
Phase
25 Community
Programs
Riddle Field Night Use
Laguna Beach Little League has requested an extension of the use of Riddle Field, including utilization of lights. An environmental analysis is being prepared.  Results will be shared with the City Council during the first quarter of 2024.

Conceptual
Phase
26 Community
Programs
Local Housing Trust Fund
During its December 12, 2023 meeting, per the recommendation of the Housing and Human Services Committee, the City Council directed staff to conduct additional analysis with representatives from the Housing and Human Services Committee and, if feasible, return with the appropriate documents to establish a local housing trust fund.

Conceptual
Phase
27 Cultural Arts Artist Live/Work Housing
The City Council appointed Council members Orgill and Rounaghi to work with City staff to develop an initiative that could help support preserving artist housing in the City. The ad hoc committee is expected to present its findings to the City Council in Q1, 2024.

Conceptual
Phase
28 Environmental
Stewardship
Consider Joining the Natural
Communities Coalition
During its November 21, 2023 meeting, the City Council authorized staff to determine operational benefits and implications of joining the Natural Communities Coalition (NCC) and for the City Attorney to review legal ramifications of the same before returning to the City Council with information necessary to consider seeking City membership in the Coalition. Staff will initiate its research in early 2024.

Conceptual
Phase
Revised 1.10.24

Ref Category Project Name Project Update as of December 19, 2023 Status City Council's Policy Initiatives List & Larger Projects Inventory 29 Environmental
Stewardship Citywide Plastic Ban Ordinance
During its June 27, 2024 meeting the City Council directed staff to conduct additional analysis regarding the prohibition of plastic film bags at grocery stores and, if feasible, return with an amended ordinance for consideration. This project was not initiated due to unavailable staff resources.

Conceptual
Phase
30 Infrastructure LBCRC Parking Exploration
At its November 21, 2023 meeting, the City Council directed staff to explore parking solutions for City staff and users of the Laguna Beach Community and Recreation Center (LBCRC).  Staff will begin this work and plan to report to City Council during the second quarter of 2024.

Conceptual
Phase
31 Internal
Operational
Improvements
Integrated Pest Management Plan
During its January 9, 2024 meeting, the City Council directed staff to return to the City Council with an Integrated Pest Management Plan based on best practices, such as those by the Natural Communities Coalition. Staff's next steps include meeting with Coastal Commission staff to determine feasibility of treatment protocols and required mitigation timelines.

Conceptual
Phase
32 Community
Design Commercial Design Guidelines
The Planning Commission has taken steps to advance the project by appointing a subcommittee and collaborating with staff. The project is designed to complement the broader comprehensive code update, demonstrating a coordinated effort to enhance and align various aspects of planning and development.

Conceptual
Phase
33 Community
Design
Laguna Canyon Specific Plan
Update
Per the Community Development Workplan approved by the City Council on May 2, 2023, the project will be initiated in March, 2024.

Conceptual
Phase
34 Community
Design
Major Remodel and Bluff Top
Regulations
The draft Initial Study/Negative Declaration has been finalized, and collaborative efforts with the City Attorney's Office are underway to edit the document. The City Council is scheduled to consider and potentially adopt the document in March 2024.

Conceptual
Phase
35 Community
Design
Comprehensive Code Update incl:

Multifamily Zoning Stnds
The comprehensive code update could simplify development regulations and improve customer experience. Revisions may also seek to amend the parking standards throughout the City's commercial districts. A request for Proposals will be released no later than Q1, 2024.

Conceptual
Phase
36 Community
Design Downtown Action Plan
The report was reviewed by the Planning Commission on September 20, 2023. Following this review, the Planning Commission expressed its desire to establish a subcommittee to further collaborate on refining the document. Staff is evaluating subsequent steps for the City Council's consideration.

Conceptual
Phase
Larger Projects Inventory
Projects are sorted by category then grouped by status within each category Revised 1.10.24

Ref Category Project Name Project Update as of December 19, 2023 Status City Council's Policy Initiatives List & Larger Projects Inventory 37 Community
Programs
Additional Recreation Programs
for Kids/Skate Park
Temporary skate ramps are slated for installation at the Laguna Beach Community and Recreation Center in December 2023. Concurrently, there is an ongoing effort to develop a Parks and Recreation Master Plan, with the anticipated completion set for early 2025.

Underway
38 Community
Programs Extending City Transit Services
Staff is determining the feasibility of extending City transit service to residential areas off Laguna Canyon Road and El Toro Road, including the possibility of securing grant funding through OCTA's Project V program.

Applications for Project V funding are due in late January 2024.

Conceptual
Phase
39 Community
Programs
Parks and Recreation Master Plan
In June 2023, the City Council approved consultant services to develop a Playground Master Plan to identify needed improvements to the City’s public playgrounds.  Separately, staff planned to initiate a Parks and Recreation Master Plan to provide a long‐term vision for the City’s parks and recreational facilities that addresses overall park conditions and needs, recreation programming and facilities, and funding opportunities.  These two efforts will be combined into a single Parks and Playground Master Plan with an expected completion date in early 2025.

Conceptual
Phase
40 Cultural Arts
Art in Public Places for Village
Entrance
To be discussed at the joint meeting of the City Council and Arts Commission on February 27, 2024.

Conceptual
Phase
41 Cultural Arts Public Art Ordinance and Policy
The ordinance and policy would provide clear application, review, and approval processes relating to permanent and temporary public art installations. The concept will be presented to the City Council on February 27, 2024.

Conceptual
Phase
42 Environmental
Stewardship
Electric Vehicle and Charging
Station Master Plan
The City Council formally accepted the proposed Electric Vehicle (EV) master plan on June 27, 2023. In response, the Council instructed staff to advance the development of a funding and implementation plan, which will return to City Council in mid 2024.

Underway
43 Infrastructure Moss St Beach Access
Improvements
The project is under construction and is scheduled for completion in June 2024. Underway
44 Infrastructure
Caltrans Coast Hwy ADA Sidewalk
Improvements North ‐ Ledroit St
to Ruby St
Construction is underway and will recess during the summer of 2024. It is estimated that the project will be completed in May 2025. Underway Revised 1.10.24

Ref Category Project Name Project Update as of December 19, 2023 Status City Council's Policy Initiatives List & Larger Projects Inventory 45 Infrastructure
Caltrans Coast Hwy ADA Sidewalk
Improvements South ‐ Moss St to
Fifth Av
Construction is underway and will recess during the summer of 2024. It is estimated that the project will be completed in May 2026. Underway 46 Infrastructure Anita Street Lift Station and Beach
Access Improvement
Staff has addressed comments from the Coastal Commission, and there are expectations that the project will be presented for consideration at its February 2024 meeting.

Conceptual
Phase
47 Infrastructure Main Beach Park Renovation Plans and specifications are in development, with staff expecting to recommend a contract award for construction in May 2024.

Conceptual
Phase
48 Infrastructure Repave Forest Alley Design to commence in early 2024. Conceptual Phase
49 Infrastructure LCR Potential Improvements Staff has completed a cooperative agreement with Caltrans and project design is underway.  A project update is planned for January 9, 2024.

Conceptual
Phase
50 Internal
Operational
Improvements
New Permitting System
A comprehensive software upgrade will occur on Jan 5, 2024, which will allow the Community Development Department to make the conversion to digital plans during the first quarter of 2024.

Underway
51 Internal
Operational
Improvements
Agenda Management System
Staff is preparing to switch its agenda and meeting management system for City Council, Committee, Board, and Commission meetings. The implementation of the new system is expected to begin in early 2024, offering a more user‐friendly and interactive agenda system for citizens.

The community will benefit from features that include a new online public portal, an online public comment feature, and interactive HTML agendas and minutes. This change will also enhance the efficiency and accuracy of the agenda preparation process for City staff. It simplifies the staff report review and approval processes and integrates with Microsoft 365, improving collaboration between departments and overall quality control.

Underway
Revised 1.10.24

Ref Category Project Name Project Update as of December 19, 2023 Status City Council's Policy Initiatives List & Larger Projects Inventory 52 Internal
Operational
Improvements
HR & Finance System (Automate
City Systems)
On March 7, 2023, the City Council authorized an agreement with Tyler Technologies to develop and implement an Enterprise Resource Planning software system for the City's Finance and Human Resources services.

Implementation is ongoing, with Finance and IT staff working alongside the Tyler Technologies project team on system set‐up and data conversion. All Financial modules, including the General Ledger, Budgeting, Accounts Payable, Purchasing, Cashiering, Capital Assets, Projects and Grant Accounting, and Accounts Receivable, are anticipated to go live Q3 of Calendar Year 2024. The remaining Human Resource Management modules, to include Payroll, Human Resources, Time and Attendance, Risk Management, and Employee Expense Reimbursement, are anticipated to go live by the end of 2024.

Underway
53 Public Safety LRAD Alert System
As outlined in the Wildfire Mitigation and Fire Safety Report, two additional Outdoor Warning System installations have been completed in Bluebird Canyon, as well as an upgrade at the lifeguard main tower. The proposed installation at Canyon Acres is pending design review, which, when completed, will bring the number of outdoor warning speakers to

24. Underway
54 Public Safety Computer Aided Dispatch (CAD)/
Records Mgt Sys (RMS)
The implementation of the new RMS is scheduled to begin in December 2023, with an anticipated completion date of September 2024. Staff anticipates issuing a Request for Proposal and awarding the contract for a new CAD system in 2024, with implementation expected to being in 2025.

Underway
55 Public Safety
Caltrans Laguna Canyon Rd
Improvements ‐ SR‐73 to El Toro
Rd
Construction is underway, with utility undergrounding work expected to begin in February 2024. Underway
56 Public Safety
Proposed Diamond St
Undergrounding Assessment
District 2013‐2
Construction of underground infrastructure is substantially complete. SCE has begun installing its facilities, and Cox and Frontier are scheduling their respective work. Poles are expected to be removed by January 2024.

Underway
57 Public Safety
Proposed Woods Cove
Undergrounding Assessment
District 2014‐2
A public hearing to tally district formation voting occurred on December 12, 2023.  With a 61% vote in favor, the district was formed.  Construction is scheduled to commence in summer 2024.

Underway
58 Public Safety
Underground Bluebird Canyon Dr
between Cress St & Rancho
Laguna Rd
Southern California Edison is bidding the project for construction, which is anticipated to begin in March 2024. Underway
Revised 1.10.24

Ref Category Project Name Project Update as of December 19, 2023 Status City Council's Policy Initiatives List & Larger Projects Inventory 59 Public Safety Underground Coast Hwy between
Agate St & Arch St
Utility designs have been completed. Southern California Edison is collaborating with Caltrans to secure the necessary permits. Once the permits are obtained, the project will proceed to the bidding phase for construction.

Underway
60 Public Safety Underground Coast Hwy between
Agate St & Cajon St
Southern California Edison is finalizing plans and permits. Underway 61 Public Safety Underground Park Av between
Wendt Terrace & St. Ann's Dr
Installation of the underground infrastructure is under construction and scheduled to be complete by January 2024.  Following completion, additional utility work and private connection work will be required to complete the undergrounding.

Underway
62 Public Safety Coast Highway Potential
Relinquishment
$100k was included in the 2023‐24 budget to complete the cost benefit analysis; work is anticipated to begin prior to June 30, 2024.

Conceptual
Phase
Revised 1.10.24

Notable Planning Efforts

1. Downtown Specific Plan Phase II (See Policy Initiative #3):

In 2019, the City Council decided to complete the comprehensive update to the Downtown Specific Plan (DSP) in two phases. Phase I, adopted in 2020 and implemented in 2022, included streamlining the business permitting process and new parking standards for nonresidential uses. The housing, building height, and parcel merger components of the DSP update were bifurcated to be addressed separately and in coordination with the Housing Element update as Phase II. The Housing Element update was completed and certified by the California Department of Housing and Community Development in February of this year.

Notable Actions:
• Updated to City Council on Phase II next steps, December 2023 • Draft Programs EIR anticipated Summer 2024
• Phase II updates available for Public Review Summer/Fall 2024

2. Develop a Senior/Affordable Housing Program (#5):

Housing Coordinator is implementing Housing Element programs and identifying potential sites for affordable housing.

Notable Actions:
• July 2023-December 2023:
• Established a City Council Ad Hoc Committee for the Vista Aliso • Promoted Orange County's Affordable ADU Loan Program
• Presented zoning amendments, relaxing standards for mixed-use and infill housing, removing the Conditional Use Permit requirement, and easing constraints from the inclusionary housing policy
• The City Council directed staff to establish a Local Housing Trust Fund

3. Promenade on Forest Concept Development (#4):

The Promenade was created by the City Council in 2020 in response to the COVID-19 pandemic. The City Council directed the permanent conversion of this space, which includes the construction of a pedestrian plaza to preserve and enhance the unique character of Downtown Laguna Beach and to transform the Promenade into a strong city center, permanently establishing it as an iconic destination that meets the needs and desires of residents, employees, and visitors.

Notable Actions:
• City Council approved Promenade Program Plan, Summer 2022

• Conducted community workshops to provide input on design, Summer 2022 • Held second community workshop presenting concept designs, May 2023 • Presented Concept Designs to Planning Commission, July 2023 • Concepts scheduled for the City Council presentation on January 23, 2024

4. Climate Action and Adaptation Plan (#7):

On August 16, 2022, the City Council adopted Resolution 22.072, which set the target goal for the City to achieve net zero emissions by 2045 or sooner. A comprehensive Climate Action and Adaptation Plan (CAAP) will guide the City on implementing measurable actions to meet the goals and establish adaptation strategies to build resilience to current and future climate threats.

Notable Actions:
• Award of Services Provides Agreement, January 2023
• Open House for Public Input: November 14, 2023
• Stakeholders Meetings Conclusion: End of 2023
• Presentation to City Council expected Q3, 2024

5. Facilities Master Plan (#12):

On February 21, 2023, the City Council directed the inclusion of the Facilities Master Plan as part of the 2023 Priorities. The Facilities Master Plan aims to provide the City with information regarding current and future facility needs and establish a framework for the orderly growth of City services, administration, and community programs.

Notable Actions:
• Ad Hoc Subcommittee formed, February 21, 2023
• City Council approves scope of services for RFP, May 16, 2023 • Evaluation of proposals and interviews conducted, August-September 2023 • Award of Services Agreement with Griffin Structures, Q1, 2024

6. Visions Zero Plan (#18):

The USDOT awarded the City a Safe Streets and Roads for All (SS4A) grant of $200,000 to prepare a Citywide Safety Action Plan. Safety Action Plans are comprehensive safety plans aimed at reducing and eliminating serious injury and fatal crashes, using analysis to characterize roadway safety problems, and developing projects and strategies that address the most significant safety risks.

Notable Actions:
• Issued Request for Proposal December 19, 2023
• Contract award to City Council, January 2024
• Final Report, Q4, 2024

7. Parks and Recreation Master Plan (#37):

The Parks and Recreation Master Plan will provide a long-term vision for the parks and recreational facilities, including a) actionable policies and standards to direct short-term (1-3 years) and long-term (5-10 years) decisions, and b) a roadmap for ensuring just and fair quantity, proximity and access to quality parks, open spaces, and recreation facilities and programs throughout the community. The Master Plan will address park conditions and needs, recreation programming, facilities, and funding opportunities.

Notable Actions:
• Award contract to CWDG to prepare Playground Master Plan, June 2023 • Contract award and incorporation of the Parks and Recreation Master Plan with the Playground Master Plan, January 23, 2024

8. Downtown Action Plan (#34):

The Downtown Action Plan is an action item of the Downtown Specific Plan and Landscape and Scenic Highways Element that is intended to coordinate specific street trees, streetscape, and other related public-way improvements within the Downtown.

9. Electric Vehicle and Charging Plan (#40):

In June 2021, the City Council directed staff to study the cost and feasibility of transitioning the municipal fleet to electric vehicles (EVs). Staff subsequently developed a scope of work and issued a competitive Request for Proposals to develop a Fleet Electrification and Electric Vehicle Charging Infrastructure Master Plan (Plan), which City Council awarded to ICF in April 2022. The City Council accepted the proposed Electric Vehicle (EV) master plan on June 27, 2023.

Notable Actions:
• Presentation Fleet Electrification and Electric Vehicle Charging Infrastructure Master Plan, June 2023
• Request for Proposals expected to be released January 2023 • Funding and Implementation Plan to City Council Q3, 2024

10.Commercial District Beautification/ Property Maintenance Ordinance:

Adopting an ordinance/program provides the City with better tools to ensure that properties are maintained in good condition in the Downtown and other commercial districts.

Notable Actions:
• Commercial District Beautification/Property Maintenance Ordinance is scheduled to be presented to the City Council on March 26, 2024.

11.Blufftop/Major Remodel Ordinance (#32):

The City has approximately 500 properties located along the coastal bluffs. The Coastal Commission regulations are restrictive regarding the extent of development and remodel that can occur in these areas due to concerns regarding sea level rise. The modifications to the City's program establish new development regulations that are supported by a geotechnical study indicating that the shoreline is mostly stable.

Notable Actions:
• City Council reviewed on April 4, 2023, and continued with direction to prepare an environmental review.
• The Initial Study is near completion and will be circulated in February 2024.

12.Open Space and Conservation Element Update:

The Open Space and Conservation Element, originally adopted in 1984, is intended to protect and preserve the City's open space and natural resources. It includes maps of highvalue habitat areas. This project is underway with an agreement recently approved for a biological study and a study of the City's significant watercourses pending.

Notable Actions:
• Award of contract for biological, January 2024
• Watercourse and stream mapping contract award, Q2 2024 • Open Space and Conservation Element Update, Q1, 2025

13.Comprehensive Zoning Code Update (#33):

The proposed update to the Zoning Code would provide clearer regulations that are simpler to apply, while still protecting the unique character of Laguna Beach. The Code update would apply to both residential and commercial zones and would consider updates to the City's parking standards.

Notable Actions:
• City Council study session on RFP scope of services scheduled March 2024

THIS CONCLUDES THE CITY'S STAFF REPORT
************************************

EVERYTHING BEYOND THIS PAGE
• IS NOT PART OF THE STAFF REPORT.

IT IS CORRESPONDENCE

RECEIVED FROM THE PUBLIC
1 McKay, Ann Marie CC
From: johnthomas
Sent: Tuesday, January 16, 2024 6:10 PM
To: City Council <[email protected]>
Cc: Laguna Beach City Clerk <[email protected]>; Joyce, Sean CM <[email protected]>; Curran, Gavin AS <[email protected]>;
Subject: Regarding January 19 2024 Annual Planning Workshop - Is this the year that Laguna Beach confronts and addresses its biggest financial challenge?
I know this is very long, but please try to take a look at it prior to Friday’s Strategic Planning Session

THANK YOU
John Thomas
There are some very ambitious items on the priority list that the City Council is discussing at its Strategic Planning Session this year. I suggest the City Council add an item for discussion at the January 19 Strategic Planning Session - under the category of “How are we going to pay for all the stuff we want to do?” Is this the year that Laguna Beach confronts and addresses its biggest financial challenge? Visitor impacts are both physical and fiscal. We are all well aware of the physical impact of millions of annual visitors to Laguna – traffic, congestion, parking issues, and sometimes worse impacts. The fiscal impacts are not as obvious but are equally detrimental to the residents. A large share of the taxes paid by residents is not used to pay for services or capital improvements that directly benefit residents, but are instead diverted to cover the substantial costs the city incurs due to the high number of visitors to Laguna. Indeed, it could be concluded that the residents are not getting what we are paying for because the residents are covering costs that should instead be covered by the visitors creating those costs.

A study in 2017 revealed that in fiscal year 2017-2018, with a city budget of $93.7 million, the revenue the city received that was attributable to tourists was $23.1 million less than the added costs the city incurred due those visitors.

Since that time the city budget has grown from $93.7 million to over $137.2 million, and the number of visitors has also grown. Thus, the costs of providing essential services due to visitors has grown, and the imbalance between revenue attributable to visitors and costs attributable to visitors also is likely to be much greater than $23 million.

The city leaders and city staff have acknowledged the problem identified by the study, and some early efforts were made to come up with ways to close the gap, but there has been little progress in reducing this deep subsidy by residents of visitors.

There are various reasons why the costs from visitors vastly outweigh the revenue the visitors create for the city government. For a town with our population, Laguna receives a very high number of calls for public safety services. This means Laguna needs many more public safety employees than would be normal for a city with our population. One study indicated that Laguna has roughly three times the number of public safety employees of other cities in California with populations similar to Laguna but with few tourists. Three times the number of public service employees means the cost to the city of providing acceptable response times and service levels is triple what it would be for other similar size cities. Public safety employees are very important but very expensive. Never-the-less, we do not want to compromise public safety for cost reasons.

The increased costs due to visitors are not limited to public safety costs. Added costs ripple through the Public Works and Utilities Department, Transit and Community Services Department, and most aspects of city government.
2 It is time to act. Some solutions will likely require a ballot measure while others will only require Council to act decisively. The City Council can put a measure on the November 2024 ballot which enables the citizens to vote on a measure that will narrow the gap between revenue and costs associated with visitors. This is especially important because the current City Council’s priorities include a number of items that will require a lot of revenue. Moving forward on some of these priorities makes it even more important to reduce the subsidy to visitors. A list of some of the current City Council’s Policy Initiative and Larger Projects is attached to the end of this note.

If even a few of the larger projects being considered come to fruition, the aggregate cost to the city could exceed hundreds of millions of dollars. Without correcting the drain on city revenue due to visitor costs, it will be financially challenging for the city to proceed with even the most important projects.

There are ways to generate more revenue from visitors. And it is fair to do so. There is no good reason that visitors should not be responsible for covering the costs they create for the residents.

The key alternatives to a ballot measure to increase revenue the city receives from visitors are to either raise taxes on residents, lower the level of city services provided by the city government, or borrow a lot of money.

How can we reduce this imbalance in costs?
We cannot put up toll booths, but we could look at the following potential sources.

Parking Charges
Though we should look at parking charges, raising parking charges alone will not come close to solving the problem. Besides, parking charges are limited by the Coastal Commission. However, there is value in looking into a program of expanding pay parking for nonresidents to areas throughout the city that are within walking distance of the beaches while allowing residents to continue to park for free in residential neighborhoods, Hotel Tax
Laguna’s hotel tax should be reviewed. Laguna already has a hotel tax that is paid by visitors to Laguna’s hotels. And, in 2016, Laguna voters passed by a large margin Measure LL, an additional hotel tax. Laguna hotel taxes are currently at a combined total of 12% - plus 2% for the voluntary Laguna Beach Tourist Marketing Tax which supports the visitor bureau plus a number of non-profits. But roughly one third of the hotel rooms in Orange County are subject to city hotel taxes of 15% plus the additional voluntary 2% tax. As a top Orange County visitor destination, it seems only fair that Laguna’s total hotel tax should be in line with other top Orange County tourist destinations. Bringing the total hotel tax to be on par with the Orange County hotels charging 15% could generate over $5 million in additional annual revenue based on the current city budget. While a revised hotel tax would contribute to correcting the imbalance, that alone would still leave Laguna far short of closing the gap between visitor related revenue and visitor related costs.

Business License fees
We could adjust the city’s business license fees. In fact, the biggest potential impact on revenue designed to cover visitor costs could come from a revised business license fee focused on tourist-focused businesses.

Laguna’s 140 bars and restaurants could be the stars in this effort. The 2020 Retail Market Evaluation prepared for the city showed how linked to and dependent on visitors Laguna’s restaurants are. A business icense fee based on 1% of the gross revenue of these restaurants could currently generate over $4 million per year for the city government and a very high proportion of this city revenue would come from visitors patronizing these restaurants.

With inflation and the growth of the city budget. the gap between costs and revenue related to visitors might have grown to more than $30 million. So, a visitor-targeted business license fee that slowly increases from 1% to a maximum of 5% over the course of 5 years could eventually cover perhaps 60% of the current imbalance. 3 The 2016 Visitor Profile and Economic Impact Study done for Visit Laguna reported that while only a small percentage of visitors stay in Laguna hotels and pay hotel tax, approximately 70% of visitors to Laguna do spend on food and beverages in town. So, Laguna’s tourist focused restaurants represent a point of contact between most visitors and local businesses and an opportunity to create a collection mechanism for visitor revenue to cover visitor costs.

Those businesses with the greatest interface with visitors could be key to the solution. They could act as Laguna’s toll booth taking a very small percentage of what they are paid by customers and passing that along to the city in the form of a business license fee based on the gross revenue from the business.

If the goal is to get visitors to pay their costs, the solution is not to raise sales taxes because Laguna residents pay a large share of the sales tax collected by Laguna Beach. But an adjusted business license fee that is manifested in small increases in the price of items on the menu could raise funds for the city while closely targeting the source of funds to be only purchases from the most visitor focused businesses.

Not all businesses would face such an increase in business license fees. If the voters would agree by passing a ballot measure to do so, the city could adjust the city business license fees charged to the businesses who are the most tourist focused. The businesses that are primarily resident serving and not primarily tourist focused could have little or no change in the business license fees they are charged. And, to protect smaller businesses, the fees to the larger tourist focused businesses could be higher than the business license fees for the smaller businesses. Laguna’s existing business license fees are already structured so that different types of business and different sizes of business pay different fees. That license fee structure simply needs to be adjusted to accomplish the goal of collecting more revenue from visitors to cover the costs related to those visitors.

Would this be an undesirable burden on these tourist-serving businesses? In fact, surveys indicate that Laguna Beach currently ranks among the lowest cost cities in California for business license fees.

Average Laguna Beach fees are currently only about 22% of the state median Business License fee. Clearly, there is substantial room for Laguna to adjust this fee without being out of line. And few California cities are as impacted by visitors as is Laguna, so a well-targeted fee that brings the revenue from visitors closer to covering the costs attributable to visitors is well justified.

Combining an increased hotel tax and the redesigned business license fee could, in time, cover more than 75% of the overall shortage, thereby reducing the subsidy of residents to visitors, leaving more city revenue available to serve residents, and freeing up funds for the many projects on the city council priority list.

This is an election year. Now is the time for the City Council to act to close this huge financial gap and reduce the subsidy of visitors by residents. A solution will likely require a ballot measure. And a plan and ballot measure will take time to develop. Now is the time to get started, and it is the City Council that needs to take the action to do that.

As referenced above, the following is a list of some of the current Policy Initiative and Larger Projects being considered by the City Council:
 Potential Laguna Canyon Road Acquisition, Improvements, and Utility Undergrounding  Possible Coast Highway Acquisition from Caltrans
 Promenade on Forest
 Downtown Action Plan
 Senior/Affordable Housing Program
 Parking/Mobility Master Plan
 Fire Station Four construction
 Fire Station One repairs or possible replacement
 Involvement in LAUSD Proposed Community Pool
 Potential LBCRC (formerly St. Catherines) programs and capital investments  Extension of City Transit Services
 Parks and Recreation Master Plan projects

January 18, 2024
To: Mayor Sue Kempf, Mayor ProTem Alex Rounaghi, Councilmembers Bob Whalen, George Weiss, and Mark Orgill
Subject: Please assign continued City effort to acquire land at 31526 and 31532 Coast Highway for use as a city park a place on the City’s priority list South Laguna Civic Association asks that the City Council include in its Policy Initiatives List, for discussion at its January 19th Strategic Planning session, continuation of efforts to lease the vacant land identified as 31526 and 31532 Coast Highway, or to otherwise acquire that property, for use as a city park.

The concept is that a park at that location that would allow dogs would be a way to relieve the overuse of and conflicts of uses of the Village Green, which is the only city park in the two miles of Laguna Beach south of Aliso Creek.

The minutes of the May 16, 2023, budget workshop state that the City Council “…requested that staff investigate options to lease available property in South Laguna for use as a dog park…” Since the City Council has already agreed to pursue this, please assign it a place on the City’s priority list.

We recognize and appreciate that item 37 of the City Council’s Policy Initiatives List is the Parks and Recreation Master Plan, however, that item is shown as in the conceptual phase only, while this specific property has been identified for action in the city’s current budget and should be reflected in the city’s strategic planning priorities.

Thank you
John B. Thomas
Vice President, South Laguna Civic Association