STAFF REPORT
Meeting Date:
September 23, 2025
BUSINESS
26 SUBJECT: DISCUSSION AND DIRECTION TO STAFF REGARDING AN APPLICATION
FOR A COASTAL DEVELOPMENT PERMIT TO RENEW A FIVE-YEAR
PARKING RATE STRUCTURE
RECOMMENDATION: It is recommended that the City Council:
1. Authorize staff to process a CDP application regarding modifications to the City parking rate structure and other parking program components;
2. Authorize staff to coordinate with Caltrans to obtain an encroachment permit for parking feasibility in South Laguna Beach; and
3. Find this action is not a “project” under the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21065 and CEQA guidelines section 15378(b)(5), or, in the alternative, exempt from the CEQA pursuant to CEQA guidelines section 15061 (b)(3).
Appropriation: $0 Fund: N/A
Submitted By: Alexis Braun Approved:
Alexis Braun, Acting Director of
Transit and Community Services
Dave Kiff, City Manager
SUMMARY OF THE MATTER
Over the past decade, the City has advanced a comprehensive Parking Management Program to balance coastal access, reduce congestion and support residents, visitors, and businesses. These strategies include adding 400 peripheral parking spaces, expanding free trolley service and microtransit service, and implementing real-time parking apps and marketing programs to encourage use of alternative transportation and carpooling.
In 2021, the City Council approved a Costal Development Permit (CDP) establishing a phased parking rate structure for 2021-25. While this program has improved circulation, parking demand continues to exceed the City’s 85% occupancy target during peak summer weekends and on warm non-summer days.
To continue managing demand, staff recommends that the City Council authorize submission of a new CDP application for 2026–2030. The proposed structure builds on the prior program, with incremental annual rate increases in the downtown, festival, and non-downtown areas, while maintaining affordable or free peripheral parking options. Council approval will enable staff to advance the application to the Planning Commission, coordinate with Caltrans on South Laguna encroachment permits, and reinvest parking revenues into mobility programs that enhance public access to Laguna Beach’s coastal resources.
This report proposes a multi-year, multi-phase parking rate structure for City Council review and approval in order to manage the City's parking demand. The 2021 approved parking rate structure included a citywide, immediate increase of $1 for all meters and lots during the non-summer months in year one, and
DISCUSSION AND DIRECTION TO STAFF REGARDING AN APPLICATION FOR A
COASTAL DEVELOPMENT PERMIT TO RENEW A FIVE-YEAR PARKING RATE
STRUCTURE
September 23, 2025
then up to 10% increase every year for five years during the summer and festival season months.
Resolution 20-7564 through a Costal Development Permit (CDP) 19-5154 established a five-year multiphase parking rate structure all public parking meters and lots located citywide for summer and non-summer months from 2021-2025. The City would like to model the same multi-phase parking rate structure for 2026-2030.
Following City Council’s approval and direction of the proposed rate structure, staff will present the parking rate structure to the Planning Commission for issuance of a Coastal Development Permit.
DISCUSSION.
Parking Management Program Achievements
Over the past decade, the City has accomplished a series of strategies to expand parking capacity, improve mobility, and reduce congestion. The accomplishments include:
• Creation of 400 additional peripheral parking spaces during the summer season, with low-cost or free options;
• Operation of a free citywide trolley with hundreds of thousands of annual boardings, using alternative-fuel vehicles to connect parking lots to more than 30 beaches within the City; • Introduction of Laguna Local, on on-demand microtransit service with over 150 stops in the City; • A free parking app providing real-time parking availability to motorists and mobile payment options, which helps to improve traffic circulation and reduce congestion; • Updated parking wayfinding signage to make public parking lots easier to locate; • A free trolley tracker app that provides up-to-the-minute updates on trolley arrival and departure times, as well as maps and service alerts;
• Marketing and education programs to encourage use of alternative transportation, including City trolleys, OCTA bus routes, carpooling, and rideshare services; • Adjusted rates seasonally by lowering hourly parking during non-summer months and increasing rates in the Downtown and Festival areas during summer months to maintain parking occupancy below the 85% target at peak times; and
• A tiered parking rate structure designed to provide paid parking at various price points, including free or reduced priced parking in peripheral lots with connectivity to free citywide trolley services.
DISCUSSION AND DIRECTION TO STAFF REGARDING AN APPLICATION FOR A
COASTAL DEVELOPMENT PERMIT TO RENEW A FIVE-YEAR PARKING RATE
STRUCTURE
September 23, 2025
2021-2025 Parking Rate Structure
In 2021, the City Council approved a Coastal Development Permit establishing a phased parking rate program for 2021-2025. The program included an immediate $1 citywide increase for all meters and lots during the non-summer months, followed by up to 10% increase for the summer and festival season months.
The rate structure was designed to reduce peak congestion, maintain parking occupancy below the City’s 85% target, and reinvest parking revenues into Transit improvements. 2021-2025 Parking Rates
Year Downtown Summer
Rate
All Day Lots 10,
11, 12 Summer
Non-Downtown Rate
Summer
Citywide
Average Rate
Off-Season
2021 $4.50 $15 Weekdays
$20 Weekends
$2.50 $2.50
2022 $4.95 $16.50 Weekdays
$22 Weekends
$2.75 $2.50
2023 $5.45 $17 Weekdays
$24 Weekends
$3.00 $2.50
2024 $5.90 $20 Weekdays
$25 Weekends
$3.30 $2.50
2025 $6.45 $22 Weekdays
$27 Weekends
$3.60 $2.50
Peripheral Parking Options
To complement the downtown and festival rate program, the City continues to offer peripheral lots for a low cost or free parking with convenient transit connections to help decrease traffic congestion. • ACT V Parking Lot (Lot 16 – 1900 Laguna Canyon Road) $10/day on weekends and holidays and $5/day on weekdays. FREE to Shopper Permit holders during Festival Season and Festival Permit Holders. FREE during the off-season on weekends.
• Mission Hospital (31872 Coast Hwy.): FREE parking from late June to Labor Day available all day on Saturday/Sunday and after 5 p.m. Monday-Friday. FREE during the off-season on weekends. • Summer Breeze (16355 Laguna Canyon Road, Irvine (Laguna Canyon & Pasteur): FREE parking from Memorial Day to Labor Day with free trolley service from 10 miles inland to festivals and downtown and for one month in the winter for Sawdust’s Winter Festival. • Sea Cove Lot 20 (31681 Coast Hwy)- Year-round FREE parking with a three-hour limit.
DISCUSSION AND DIRECTION TO STAFF REGARDING AN APPLICATION FOR A
COASTAL DEVELOPMENT PERMIT TO RENEW A FIVE-YEAR PARKING RATE
STRUCTURE
September 23, 2025
Proposed 2026-2030 Parking Rate Structure
To continue managing demand, staff proposes extending the phased parking rate program another five years, through 2030. The updated structure is modeled after the 2021 program, with incremental annual increases in the Downtown, Festival, and non-downtown areas, while maintaining affordable off-season and peripheral options.
2026-2030 Proposed Parking Rates
Year Downtown Summer
Rate
All Day Lots 10,
11, 12 Summer
Non-Downtown Rate
Summer
Citywide
Average Rate
Off-Season
2026 $7.00 $23 Weekdays
$28 Weekends
$3.95 $3.50
2027 $7.70 $26 Weekdays
$31 Weekends
$4.35 $3.50
2028 $8.45 $28 Weekdays
$34 Weekends
$4.80 $3.50
2029 $9.30 $30 Weekdays
$37 Weekends
$5.30 $3.50
2030 $10.20 $32 Weekdays
$41 Weekends
$5.85 $3.50
On August 27, 2025, the City hosted a neighborhood Town Hall to discuss the proposed five-year CDP.
Topics included:
• Proposed parking rates
• Transportation analysis
• Rate variations (free, low, medium, etc.)
• Hourly and flat/day pass options
• Senior and income-restricted rate structures or beach parking permit • Existing free parking options
• South Laguna paid parking
• Aliso Beach Parking Lot configuration
The City offers the following discounted parking passes for both residents and non-residents:
• Shoppers Permit
School District Permit
Non-Resident Senior/Veteran’s Permit
Laguna Beach Businesses/Employee Pass
Summer Festival Parking Permit
DISCUSSION AND DIRECTION TO STAFF REGARDING AN APPLICATION FOR A
COASTAL DEVELOPMENT PERMIT TO RENEW A FIVE-YEAR PARKING RATE
STRUCTURE
September 23, 2025
In collaboration with the California Coastal Commission, the City may consider a low-cost parking option, or an annual or seasonal beach parking pass free of charge to qualified applicants. The goal would be to expand inclusive coastal access to the City’s public beach and coastal parks by allowing parking in the City’s public parking lots. Applications could be submitted in person or online, based on participation in State or Federal assistance programs.
CDP and South Laguna Parking Discussion
At the August 27, 2025, Town Hall, about 40-50 area residents attended, an apparent majority from South Laguna (even though the Town Hall’s intent was to reflect parking rates across Laguna Beach). Generally, residents seemed to support implementing paid parking in South Laguna on Coast Highway and into aspects of adjacent neighborhoods – though there was more conversation and possible disagreement about the extent to which paid parking and parking “Ts” would be feasible into South Laguna’s narrow streets.
Staff also presented a new plan (referred to as Alternative #4) for the reconstruction of the Aliso Beach Parking lot. As Council will recall, the Council discussed the parking lot revisions at a Study Session on April 8, 2025. At the time, residents and Council members offered questions about three alternatives’ fiscal projections, impacts to views, impacts to the beach when tides are high and sand space is limited, and more.
The April discussion led staff to revise and present Alternative #4, which attempted to consolidate some of the comments and still increase (modestly) parking spaces.
The Town Hall comments about the Aliso Beach parking lot designs were generally not in favor of a significant redesign, with most people asserting that the parking lot should stay “as is.” Questions still came up about our fiscal projections – members of the audience argued that we should not use a general “average revenue per space” factor for the beach parking lot, and instead assume that the parking lot would remain under existing capacity for all but (say) 20 high-use days a year. Only the incremental revenue from those high-use days should factor into our fiscal assumptions, speakers noted.
As a result, this item does not include the Aliso Beach Parking Lot for discussion. Staff wants to discuss this further at a future date.
Regarding only the new 5-year rate approach, and based in part on the Town Hall’s feedback, staff recommends:
• Installing pay stations on the coastal side of South Coast Highway with a four-hour limit to encourage turnover and improve coastal access.
• Obtaining a Caltrans encroachment permit prior to implementation. • Properly marking and officially designating legal parking spaces before introducing paid parking to ensure enforceability.
DISCUSSION AND DIRECTION TO STAFF REGARDING AN APPLICATION FOR A
COASTAL DEVELOPMENT PERMIT TO RENEW A FIVE-YEAR PARKING RATE
STRUCTURE
September 23, 2025
• Continuing the City’s active negotiations for a lease agreement Laguna Terrace to create an additional 47 paid public parking spaces at a vacant lot on Coast Highway close to the Montage to provide additional parking to help alleviate neighborhood congestion. • Going through the formal public process (including Planning Commission) to further inform and take public input on the locations, rates, and time limits for residential areas close to Coast Highway.
FINANCIAL ANALYSIS
Revenue generated from parking is used to support the transportation program and various city projects.
The parking rate increase is expected to generate $500,000-$1 million annually.
ENVIRONMENTAL ANALYSIS
The recommended action consists of organizational or administrative activities of the City that will not result in a direct or indirect physical change in the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; 14 CCR Section 15378(b)(5).) Any future decision on a CDP (and other entitlements) will require its own independent environmental review. In the alternative, the recommended action is exempt under the California Environmental Quality Act under CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Here, the recommended action meets the exemption because this action is just direction to staff to submit applications for future entitlements from the City and Caltrans. These processes will undergo their own respective environmental review as required by law.
ATTACHMENTS
None
Report Prepared By: Coordinated With:
Alexis Braun, Acting Director of Transit and
Community Services
Nabila Guzman, Senior Administrative Analyst
Matthew Schneider, Director of Community
Development
Patrick Donegan, Assistant City Attorney
Gavin Curran, Assistant City Manager