Laguna Beach City Council Meeting Recap June 24, 2025
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COUNCIL AND STAFF REPORTS
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CONSENT CALENDAR
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PUBLIC COMMUNICATION
PUBLIC COMMUNICATIONS (continued)
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WELCOME
PLEDGE OF ALLEGIANCE
Councilmember Rounaghi
ROLL CALL
Present: Jones, Kempf, Whalen, Orgill, Rounaghi
Participating Remotely: None
Absent: None
CLOSED SESSION ANNOUNCEMENT(S)
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City Attorney Megan Garibaldi reported that all Councilmembers were present and there was no public comment prior to the City Council convening into the Closed Session. Garibaldi reported that the City Council did not discuss the existing litigation items; regarding the real property discussions, Mayor Pro Tem Mark Orgill did not participate in those discussions due to an existing conflict of interest, and there was no reportable action.
[Continuance of Appeal B was heard at this time.]
PRESENTATIONS
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1. RECOGNITION OF MAINTENANCE WORKER I, JORGE JAIMES’ RETIREMENT Jorge Jaimes, Maintenance Worker I, was recognized for over 27 years of service.
ADDITIONS and DELETIONS None.
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CITY COUNCIL MEETING
RECAP
Tuesday, June 24, 2025
City Council Closed Session 4:30 p.m.
Regular City Council Meeting 5:00 p.m.
CITY OF LAGUNA BEACH
505 Forest Ave., Laguna Beach
Laguna Beach City Council Meeting Recap June 24, 2025
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PUBLIC COMMENTS - NON-AGENDIZED ITEMS
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The owner of Heavenly Couture retail store on Forest Avenue expressed frustrations with restrictions on businesses regarding signage and outdoor display.
Mike Beanan, Laguna Bluebelt, provided a presentation reiterating the request for the City Council to adopt the resolution previously submitted supporting the expansion of the MPA (Marine Protected Area).
City Treasurer Laura Parisi provided a copy of a Wall Street Journal article regarding the Federal Reserve keeping interest rates at the current rate. Parisi also showed a video from Financial Accounting Standards Board (FASB) explaining the importance of GAAP (Generally Accepted Accounting Principles).
Karyn Phillipsen, Laguna Beach Sister Cities, thanked the City for its support, particularly with the annual Fête de la Musique.
Greg Viviani thanked the Police Department for its successful efforts in detaining a suspect on the run.
He also commented on the City Council’s decision to approve the 10-year contract for the Laguna Beach Tourism Marketing District.
MATTERS FROM THE MAYOR, CITY COUNCIL MEMBERS AND CITY MANAGER ****************************************************************************** The City Councilmembers commented on the annual Laguna Beach Police Department’s awards luncheon, and Councilmember Bob Whalen specifically thanked the Laguna Beach Community & Police Foundation.
Councilmember Hallie Jones reported on the new engine ceremony for Fire Station 1, the annual Laguna Canyon Foundation’s fundraiser event, and the recent Environmental Sustainability Committee meeting.
Councilmember Sue Kempf reported on Anita Sewer Lift Station and Beach Access Stairs Reconstruction Project groundbreaking ceremony, Assemblymember Diane Dixon’s Laguna Beach Wildfire Town Hall, and noted the proposed Assembly Bill 426 regarding drone interference with emergency personnel and Assembly Bill 623, which would increase the defensible space clearance from 100 feet to 500 feet. Councilmember Kempf also noted improvements made to downtown properties in response to the City’s new Commercial Maintenance Ordinance.
Related to Assembly Bill 623, Councilmember Bob Whalen encouraged everyone to read an article in today’s LA Times about a test done by the insurance industry showing the effectiveness of California’s proposed Zone 0 regulation, where one home burns and the other is unscathed.
Mayor Pro Tem Mark Orgill praised this year’s Fête de la Musique, and listed the various communications he had with members of the public.
Mayor Alex Rounaghi commended the Police Department on its response with the police chase referenced by Viviani. He also reported on Orange County Supervisor Katrina Foley's Flag Day Ceremony at Dana Point harbor, the plans for the Veterans Cemetery, and the ribbon cutting for the new play yard for the Boys & Girls Club.
Laguna Beach City Council Meeting Recap June 24, 2025
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CONSENT CALENDAR
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Moved by Mayor Alex Rounaghi, seconded by Councilmember Sue Kempf, and carried unanimously 5/0 to approve items 1 – 3 and 5 - 13.
2. APPROVAL OF GENERAL WARRANTS AND PAYROLL DISTRIBUTIONS Warrant #29: $ 3,800.00 06/02/2025
Warrant #30: $3,530,881.46 06/06/2025
CalPERS #22: $ 385,045.74 05/27/2025
$3,919,727.20
Payroll #24: $1,912,856.05 05/30/2025
Total: $5,832,583.25
Approved the general warrants and payroll disbursements.
3. CLAIMS AGAINST THE CITY
(1) Rejected Claim #25-15 filed by Richard Kahoe;
(2) Rejected Claim #24-59 filed by Savannah Plaskon et al.; (3) Rejected Claim #24-55 filed by Salma Nasoordeen; and (4) Rejected Claim #24-56 filed by Hasna Shanai Aini.
4. PLANNING DIVISION UPDATE AND WORKLOAD SUMMARY THROUGH JUNE 9, 2025
This item was pulled from the Consent Calendar by Councilmember Bob Whalen.
The City Council received and filed the Planning Division Update and Workload Summary, which covers the period from September 2024 through June 9, 2025.
5. AWARD OF CONTRACT FOR CUSTODIAL MAINTENANCE SERVICES (1) Authorized the City Manager to execute contract #25-41 with CCS Facility Services for a three-year term commencing July 1, 2025, to provide custodial maintenance services at City facilities, including up to $25,000 annually for as-needed services, for a total annual not-toexceed amount of $262,279 annually; and (2) Authorized the City Manager to execute up to two (2) additional one-year extensions, subject to satisfactory performance, with an annual cost increase not to exceed the percentage change in the Bureau of Labor Statistics Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim region.
6. CONSIDERATION OF POLICY REGARDING USE OF ELECTRONIC SIGNATURES AND
RECORDS
Adopted Resolution #25.044 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LAGUNA BEACH, CALIFORNIA, ADOPTING A POLICY REGARDING ELECTRONIC SIGNATURES AND ELECTRONIC RECORDS,” creating a policy for the use of electronic signatures and records on a Citywide basis.
Laguna Beach City Council Meeting Recap June 24, 2025
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7. EXTENSION OF LICENSE AGREEMENT FOR THE EXISTING COMPUTER AIDED
DISPATCH SYSTEM
Authorized the City Manager to execute agreement #25-42 with Hexagon to extend the license for the City’s existing Computer Aided Dispatch system through May 31, 2026, for an amount not to exceed $113,525.36.
8. SERVICE AGREEMENT FOR ONSITE INFORMATION TECHNOLOGY DESKTOP
SUPPORT
(1) Authorized the City Manager to execute service agreement #25-43 with Intratek in the amount of $142,000 for onsite desktop support services in Fiscal Year 2025-26; and (2) Authorized the City Manager to extend the agreement for up to two additional one-year terms, provided that the annual cost increase does not exceed four percent of the previous year’s rate and that sufficient funding is available in the approved budget.
9. SECOND AMENDMENT TO THE AMENDED AND RESTATED SERVICE PROVIDER
AGREEMENT FOR OPERATION OF THE ALTERNATIVE SLEEPING LOCATION Authorized the City Manager to execute the Second Amendment to the Amended and Restated Service Provider Agreement with Friendship Shelter, Inc. (#10-25) to extend operational services at the Alternative Sleeping Location through December 31, 2025.
10. ADOPTION OF ORDINANCE AMENDING THE FIRE CODE BY ADDING CHAPTER
15.01 TO THE LAGUNA BEACH MUNICIPAL CODE ADOPTING CAL FIRE RECOMMENDATIONS FOR 2025 FIRE HAZARD SEVERITY ZONES FOR LOCAL
RESPONSIBILITY AREAS
Adopted Ordinance #1720 titled, “AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF LAGUNA BEACH, CALIFORNIA, AMENDING LAGUNA BEACH MUNICIPAL CODE SECTION 15.01.045 TO ADOPT THE 2025 FIRE HAZARD SEVERITY ZONES AS
DESIGNATED BY THE CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PROTECTION PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 51178
AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.”
11. ADOPTION OF ORDINANCE ADDING CHAPTER 5.84 TO THE LAGUNA BEACH
MUNICIPAL CODE REGARDING THE LICENSING SCHEME FOR SHORT-TERM
RENTAL UNITS
Adopted Ordinance #1719 titled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, ADDING CHAPTER 5.84 TO TITLE 5 OF THE
LAGUNA BEACH MUNICIPAL CODE REGARDING LICENSING OF SHORT-TERM
LODGING UNITS AND FINDING THE ORDINANCE IS NOT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.”
Laguna Beach City Council Meeting Recap June 24, 2025
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12. REIMBURSEMENT FOR CITY-REQUESTED UTILITY IMPROVEMENTS COORDINATED WITH THE PACIFIC MARINE MAMMAL CENTER’S RENOVATION
PROJECT
Authorized the City Manager to reimburse the Pacific Marine Mammal Center in an amount not to exceed $110,714.12 for City-requested conduit improvements completed in coordination with the PMMC facility renovation project, contingent upon verification that the work has been completed to the satisfaction of the City.
13. PROPOSED CITY OF LAGUNA BEACH FLAG POLICY
Adopted Resolution #25.045 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LAGUNA BEACH, CALIFORNIA, AUTHORIZING A UNIFORM POLICY FOR
THE DISPLAY OF FLAGS AT CITY FACILITIES AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT,” establishing a uniform policy regarding the display of flags at City facilities.
REGULAR BUSINESS
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14. ASSIGNMENT OF INVESTMENT FUNDS, 3RD-PARTY REVIEW OF TREASURER’S HOURS
Moved by Councilmember Sue Kempf, seconded by Mayor Pro Tem Mark Orgill, and carried unanimously 5/0 to:
(1) Authorize the City Manager to direct that at least $25 million in City funds from the portfolio invested by the City Treasurer be allocated to Meeder Investment Management for investments aligned with cash flow needs and consistent with the City’s Investment Policy, and that the City Manager further examine the proper amount that should be categorized as surplus funds in accordance with the July 2024 recommendations; and (2) Direct the City Manager to conduct a 3rd-party review of the hours required by an elected City Treasurer to perform those functions required by the California Government Code and the Laguna Beach Municipal Code.
15. CONSIDERATION OF SECOND AMENDMENT TO EMPLOYMENT AGREEMENT FOR
CITY MANAGER
Moved by Councilmember Sue Kempf, seconded by Mayor Pro Tem Mark Orgill, and carried unanimously 5/0 to adopt Resolution #25.046 amending the City Manager’s Employment Agreement, titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA
BEACH, CALIFORNIA, APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE
THE SECOND AMENDMENT TO THE EMPLOYMENT AGREEMENT BETWEEN THE CITY OF LAGUNA BEACH AND CITY MANAGER DAVE KIFF,” which authorizes a onetime, merit-based exceptional performance payment equivalent to 3% of the City Manager’s Fiscal Year 2024-25 base salary and continued contribution at the 457(b) contribution limit for the City Manager’s deferred compensation plan
Laguna Beach City Council Meeting Recap June 24, 2025
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PUBLIC HEARINGS – NON-APPEALS
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16. ADOPTION OF A RESOLUTION UPDATING THE MASTER FEE SCHEDULE Moved by Mayor Alex Rounaghi, seconded by Councilmember Hallie Jones, and carried unanimously 5/0 to adopt Resolution #25.047 titled, “A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, ADOPTING ITS MASTER
FEE SCHEDULE AND FINDING SUCH ACTIONS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT,” as corrected by staff and the City Council, thereby approving the updated Master Fee Schedule, with the reduced fee for Real Property Reports (RPRs) to $40 effective July 1, 2025, and the remainder of the revised fees effective 60 days from adoption of the resolution.
17. ADOPTION OF FISCAL YEAR 2025-26 BUDGET, APPROVAL OF THE MUNICIPAL
EMPLOYEES ASSOCIATION MEMORANDUM OF UNDERSTANDING AND
REVISIONS TO THE FISCAL YEAR 2024-25 ADOPTED BUDGET
Agenda Item #17 was heard after Appeal #A.
Moved by Mayor Alex Rounaghi, seconded by Councilmember Bob Whalen, and carried unanimously 5/0 to:
(1) Approve the City budget for the Fiscal Year 2025-26 by adopting Resolution #25.048 titled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, ADOPTING THE ANNUAL CITY BUDGET FOR THE 2025-26 FISCAL YEAR," adding $10,000 for CERT backpacks and difference in Cultural Arts Grant funding; (2) Approve the Memorandum of Understanding between the City and the Municipal Employee Association for a 15-month term for the period July 1, 2025, through September 30, 2026, by adopting Resolution #25.049 titled, “A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF THE CITY OF LAGUNA BEACH, CALIFORNIA, RATIFYING THE
MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE LAGUNA BEACH MUNICIPAL EMPLOYEES’ ASSOCIATION” and Resolution #25.050 titled, “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE CITY OF LAGUNA
BEACH, CALIFORNIA, RATIFYING THE SIDE LETTER OF AGREEMENT BETWEEN THE CITY AND THE MUNICIPAL EMPLOYEES’ ASSOCIATION”; (3) Approve the salary schedules for the Fiscal Year 2025-26 by adopting Resolution #25.051 titled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, SETTING PAY RANGES FOR CITY EMPLOYEES"
(4) Approve or modify the funding recommendations made by the subcommittee regarding the Community Assistance Grants for Fiscal Year 2025-26 and direct the City Manager to disburse the funds accordingly and review the subcommittee recommendations regarding the changes to the future Community Assistance Grants application process and direct staff as to desired changes;
(5) Approve the recommended Cultural Arts Grants for Fiscal Year 2025-26 and direct the City Manager to disburse the funds accordingly;
(6) Approve the budget changes for the Fiscal Year 2024-25 as described in the Agenda Report and authorize the City Manager to modify the budget accordingly; Laguna Beach City Council Meeting Recap June 24, 2025
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(7) Approve the APPROPRIATIONS LIMIT for the Fiscal Year 2025-26 by adopting Resolution #25.052 titled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LAGUNA BEACH, CALIFORNIA, DETERMINING AND ADOPTING AN APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2025-26 IN ACCORDANCE
WITH ARTICLE XIIIB OF THE CONSTITUTION OF THE STATE OF CALIFORNIA, CHAPTER 1205 OF THE REVENUE AND TAXATION CODE SECTION 791"; (8) Mayor Alex Rounaghi Councilmember Hallie Jones Provide direction on salary and performance pay for the City Treasurer and City Clerk, and direct the City Manager to modify the salary schedules to reflect the City Council's actions; and (9) Authorize the City Manager to approve fleet/equipment purchases over $75,000 for capital outlay purchases approved in the Fiscal Year 2025-26 annual budget.
18. CONDITIONAL USE PERMIT 25-1046 AND COASTAL DEVELOPMENT PERMIT 25- 1047 FOR A REDUCTION OF REQUIRED OFF-STREET PARKING SPACES AS AN INCENTIVE FOR ESTABLISHING A SIDEWALK CAFÉ WITH OUTDOOR SEATING FOR A NEW RESTAURANT AT 320 NORTH COAST HIGHWAY AND FINDING THE
PROJECT CATEGORICALLY EXEMPT PURSUANT TO STATE CEQA GUIDELINES SECTIONS 15301 (CLASS 1) AND 15331 (HISTORICAL RESOURCE
RESTORATION/REHABILITATION) (TRULY PIZZA)
Agenda Item #18 was heard before Agenda Item #17.
Moved by Mayor Alex Rounaghi, seconded by Mayor Pro Tem Mark Orgill, and carried unanimously 5/0 to adopt Resolution #25.053 titled, “A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, APPROVING CONDITIONAL USE PERMIT 25-1046 AND COASTAL DEVELOPMENT PERMIT 25- 1047 AUTHORIZING A PARKING REDUCTION OF FIVE SPACES TO ALLOW ADDITIONAL OUTDOOR SEATING FOR A FOOD SERVICE AT 320 NORTH COAST
HIGHWAY (TRULY PIZZA) AND FINDING THE ACTION CATEGORICALLY EXEMPT
FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO STATE CEQA GUIDELINES SECTIONS 15301 (CLASS 1 EXISTING FACILITIES) AND 15331 (HISTORICAL RESOURCE RESTORATION/ REHABILITATION).”
PUBLIC HEARINGS – APPEALS
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A. APPEAL OF THE APPROVAL OF DESIGN REVIEW 24-2721 TO CREATE STORAGE
AREAS WITHIN EXISTING GARAGES AND TO REMOVE THE GARAGE DOORS AT THOSE AREAS TO CREATE CARPORTS AT HOTEL JOAQUIN LOCATED AT 985
NORTH COAST HIGHWAY, AND FINDING THE PROJECT CATEGORICALLY EXEMPT
PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION 15301 AT 985 NORTH COAST HIGHWAY IN THE C-N (COMMERCIALNEIGHBORHOOD) AND R-2 (RESIDENTIAL MEDIUM DENSITY) ZONES Councilmember Hallie Jones recused herself from this item pursuant to the Levine Act (Govt Code Section 84308), due to contributions made to her election campaign exceeding $250 by a participant with a financial interest to the application.
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Moved by Councilmember Sue Kempf, seconded by Mayor Pro Tem Mark Orgill, and carried unanimously 4/0 to adopt Resolution #25.054 titled, “A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, DENYING THE APPEAL
OF NEW STORAGE AREAS WITHIN EXISTING GARAGES AND TO REMOVE THE
GARAGE DOORS AT THOSE AREAS TO CREATE CARPORTS, UPHOLDING DESIGN REVIEW 24-2721, AND FINDING THE ACTION CATEGORICALLY EXEMPT FROM
THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO STATE CEQA GUIDELINES SECTION 15301”, upholding the Community Development Director’s approval of Design Review 24-2721, with more restrictive conditions, requiring the garage doors to remain, to be closed when no car is using the space, and for there to be no visible storage when the garage door is open when a vehicle is parked in the space.
B. APPEAL OF THE COMMUNITY DEVELOPMENT DIRECTOR’S APPROVAL OF COASTAL DEVELOPMENT PERMIT 25-0714 FOR A 705-SQUARE-FOOT ACCESSORY
DWELLING UNIT ATTACHED TO AN EXISTING SINGLE-FAMILY RESIDENCE, AND
FINDING THE PROJECT CATEGORICALLY EXEMPT UNDER CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION 15303 (NEW CONSTRUCTION OR CONVERSION OF SMALL STRUCTURES) AT 31774 5TH
AVENUE IN THE VC (VILLAGE COMMUNITY) ZONE
This item was heard at the beginning of the meeting, before the presentation item.
Moved by Councilmember Bob Whalen, seconded by Mayor Pro Tem Mark Orgill, and carried unanimously 5/0 to continue the appeal of the Community Development Director’s approval of Coastal Development Permit 25-0714 located at 31774 5th Avenue, and finding the Project categorically exempt under CEQA Guidelines Section 15303 (the “Project”), to a date uncertain.
COUNCIL MEMBER ITEM(S) – None.
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ADJOURNMENT AT 9:59 P.M., TUESDAY, JUNE 24, 2025, TO THE CITY COUNCIL CLOSED SESSION AT 4:00 P.M.
AND REGULAR MEETING AT 5:00 P.M.
TUESDAY, JULY 8, 2025