STAFF REPORT
Meeting Date:
October 28, 2025
CONSENT
16 SUBJECT: VISIT LAGUNA BEACH SERVICES AGREEMENT
RECOMMENDATION: It is recommended that the City Council:
1. Approve and authorize the City Manager to execute the Agreement for Services between the City of Laguna Beach and Visit Laguna Beach, in accordance with the Property and Business Improvements District Law of 1994; and
2. Find that the action is not a project subject to the California Environmental Quality Act pursuant to CEQA Guidelines Section 15378.
SUMMARY OF THE MATTER
This report recommends that the City Council approve the attached Agreement for Services (“Agreement”) between the City of Laguna Beach and Visit Laguna Beach (sometimes referred to herein as “VLB”), the designated Owners’ Association of the Laguna Beach Tourism Marketing District (the “LBTMD”).
The City Council approved the renewal of the LBTMD and adopted the updated Management District Plan (the “Plan”) on June 10, 2025. Both the LBTMD and the Plan were approved pursuant to the Property and Business Improvements District Law of 1994 (Cal. Sts. & Hwy. Code 36600 et seq., the “1994 Law”).
Pursuant to the terms of the 1994 Law, where a management plan designates an owners’ association to provide certain improvements, maintenance, or activities--as does the Plan, here--the city and owners' association must enter an agreement to further specify the provision of services identified in the management plan.
Accordingly, the attached Agreement is provided for the City Council’s consideration as an operational step in the post-decision phase of the renewed LBTMD and Plan (Attachment 1). Approval of this Agreement furthers compliance with the City’s administrative responsibilities under the 1994 Law, including provisions to support fiscal oversight and ensure compliance with the authorized use of assessment funds, and details Visit Laguna Beach’s implementation of the programs and activities identified in the Plan. The proposed Agreement uses the City’s standard form services agreement, as modified for the application in the context of the LBTMD and Plan, which also includes provisions for insurance and indemnity, amongst others.
DISCUSSION
On June 10, 2025, the City Council adopted Resolution No. 25.038 to renew the LBTMD for a ten-year term beginning July 1, 2025. As required by the 1994 Law and the adopted Plan, the City must enter into an agreement with Visit Laguna Beach, the designated Owners’ Association, to provide the services identified in the Plan (see Streets and Highways Code section 36651).
Services Agreement
The proposed Agreement between the City and Visit Laguna Beach sets forth the responsibilities and conditions under which Visit Laguna Beach will implement the programs and activities described in the
VISIT LAGUNA BEACH SERVICES AGREEMENT
October 28, 2025
Plan, which directly benefit assessed lodging businesses by increasing overnight visitation and room night sales. More specifically, the key terms of the Agreement are summarized as follows:
• Term: through June 30, 2035
• Services Provided (Based on Laguna Beach Tourism Market Plan (Attachment 2) o Sales, Marketing & Communications: efforts to increase awareness of overnight visitation and room stays.
o Cultural & Environmental Stewardship: including for or related to programs that enhance Laguna Beach’s cultural and natural assets to improve visitor experience and sustainability. o Arts & Cultural Programming: including for or related to support and promotion of public art, cultural programming, and community arts initiatives. o Administration and Operations: Management and oversight functions necessary to support all LBTMD programs, including staffing, office operations, accounting, legal, and insurance costs; coordination with the City and stakeholders; and compliance with audits, transparency, and reporting obligations under the Brown Act and Public Records Act. • Transmittal of TBID Collected Payments: Upon receipt of collected LBTMD funds, the City shall transmit to VLB collected LBTMD assessments within 30 days of the date of collection. These funds are used for the purposes of providing the above-referenced services, which must directly benefit assessed lodging businesses by increasing overnight visitation and room night sales. In furtherance thereof, and for the avoidance of doubt as to the requirement set forth in the Plan, VLB shall pay (either through a return remittance or a further agreement of the parties for the City to retain and/or disburse funds, as appropriate) in the amounts and to the entities identified in the Plan, for the purposes of further provisions of services, including but not limited to the City’s Cultural and Environmental Stewardship Fund.
• Reporting Requirements: VLB shall submit an Annual Report to the City Council, detailing program activities, expenditures, and projected budgets for the services provided. With City staff, VLB shall also participate in a biennial performance review to assess effectiveness of programming, including in particular the Cultural and Environmental Stewardship program-related services provided.
• Standard Miscellaneous and Administrative Provisions: These provisions include, but not limited to, things like indemnification; insurance requirements and limits (general liability, auto, workers’ compensation); compliance with the Public Records Act for, and the City’s right to review certain materials, non-discrimination requirements; subcontracting requirements; dispute resolution, venue and jurisdiction for legal challenges, modifications to the Agreement, survival, and severability.
VISIT LAGUNA BEACH SERVICES AGREEMENT
October 28, 2025
In short, the Agreement ensures that assessment revenues are used solely for purposes identified in the Plan, including marketing, cultural programming, and stewardship activities that benefit assessed lodging business, and reflects the City’s role in fiscal oversight to monitor compliance, including annual reporting requirements and financial transparency provisions.
Update on the Visit Laguna Board Councilmember Representative Appointments When the Council renewed the District in June via Resolution No. 25.038, amendments were made to the Plan about the composition of the Visit Laguna Board. More specifically, the City requires 25% Board representation, with the first two representatives being City Councilmembers. At its December meeting, along with all the City Council committee, boards, and liaison appointments, the City Council will be asked to designate its Visit Laguna Board Member representatives.
FINANCIAL ANALYSIS
There is no fiscal impact associated with this action. Payments to Visit Laguna Beach are funded through LBTMD assessments as outlined in the Management District Plan.
ENVIRONMENTAL ANALYSIS
The proposed action is not a project under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378 because it does not involve a commitment to any physical change in the environment. The action involves approval of an administrative agreement to implement the Management District Plan for the Laguna Beach Tourism Marketing District, which does not authorize any specific development or physical activity. Therefore, it is not subject to environmental review under CEQA.
ATTACHMENTS
1. Visit Laguna Beach Services Agreement
2. Resolution #25.038 Laguna Beach Tourism Management District Management Plan Submitted By: Approved:
. , for
Gavin Curran, Assistant City
Manager
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Gavin Curran, Assistant City Manager