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Attachment 2 - Conditional Offer Letter

Laguna Beach City Council
August 12, 2025

Document
Attachment 2 - Conditional Offer Letter
Meeting
August 12, 2025
Body
Laguna Beach City Council
Pages
2
Original file
849 KB
Text extracted from the city's file for reading and search. Open the original on lagunabeachcity.primegov.com. That file is the official record.

Improving lives and communities through transportation.

DISTRICT 12
1750 East 4th Street, Suite 100 | SANTA ANA, CA 92705
(657) 328-6000 | FAX (657) 328-6522 TTY 711
https://dot.ca.gov/caltrans-near-me/district-12
June 3, 2025
Mr. Dave Kiff
City Manager, City of Laguna Beach
505 Forest Avenue
Laguna Beach, CA 92651
Dear Mr. Kiff:

The California Department of Transportation (Caltrans) is hereby making a conditional offer of $14,400,000 to the City of Laguna Beach (City), as the cost of relinquishment for State Route 133 (SR-133) also known as Laguna Canyon Road from postmile (PM) 0.059, 270 feet north of Pacific Coast Highway, to PM 3.416, at El Toro Road. In exchange, the City is to accept ownership of this segment of SR-133. If the City agrees to the stated cost of relinquishment, Caltrans requests written acceptance of this offer by September 1, 2025.

The cost of relinquishment has been determined pursuant to interagency negotiations, as provided by Assembly Bill 2172 (AB 2172), chaptered into California Streets and Highways Code in 2020. AB 2172 authorizes the California Transportation Commission (CTC) to approve the relinquishment of the subject SR-133 corridor, should Caltrans the City enter into an agreement providing for that relinquishment.
of this conditional monetary offer, Caltrans will pursue the preparation of a Project Initiation Document (PID), Relinquishment Agreement, and other requirements for CTC approval.

Once CTC approves, the City will assume full maintenance, ownership, control, responsibility, and tort liability, in perpetuity, of the subject corridor of SR-133. Specific terms of conditions for the relinquishment will be stipulated in the Relinquishment Agreement to be prepared and executed by and between the City and Caltrans.

Conditions:

1. The SR-133, PM 0.059 to PM 3.416, to the City is contingent on the cost estimate prepared during development of the PID and CTC funding approval.

Caltrans anticipates programming in summer of 2026 and submittal of final allocation request to CTC in fiscal year 2028-2029. We look forward to completing this relinquishment with the City. If you have any questions, please contact Eric Corona at [email protected].

Sincerely,
Lan Zhou
District 12 Director
Attachment 2
8 Mr. Dave Kiff, City Manager
Jun 3, 2025

Page 2 ends

Improving lives and communities through transportation. c: Adnan Maiah, Deputy District Director, Strategic Portfolio Management, Caltrans Ahmed Elsadek Manhy, Project Manager, Caltrans
Ferdinand Agbayani, Senior Transportation Engineer, Caltrans Irene Hou, Deputy District Director, Planning & Local Assistance, Caltrans Mark McAvoy, Public Works Director, City of Laguna Beach Tom Perez, City Engineer, City of Laguna Beach
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