Agenda packet, third session — Laguna Beach City Council, November 18, 2025 (part 2 of 6)

contractual savings were lower than expected.

In addition, staff is recommending City Council approve the creation of several new funds to help streamline accounting and financial reporting and to be in compliance with state and contractual agreements.

DISCUSSION
Attachment 1 details $13,878,200 in carryover appropriations for Fiscal Year 2025-26. The General Fund carries the largest portion of carryovers, amounting to $6.2 million or 44.7% of the total. The primary appropriation carryovers include Public Safety CAD/RMS projects of $950,000, the carryover of Animal Shelter Donations of $1.5 million, and $1.4 million for the solid waste landfills implementation and recycling and organics programs. Attachment 2 outlines $2.5 million in revenue carryovers, including $1.7 million in expected grant and transit revenue and $667,000 in General Fund grant revenues.

It is important to note that the City Council authorized the automatic carryover of unspent capital improvement and assessment district budgets as of June 30, 2025, with the adoption of Resolution #25-048 on June 24, 2025. Therefore, unspent capital improvement projects and assessment district budgets are not included in the carryover appropriations. Attachment three outlines the current status of ongoing capital improvement project expenditures as an informational item for the City Council.

Further, the City’s Municipal Code (LBMC Section 3.24.060) requires that staff bring forth to Council a recommendation for approval for the establishment of new funds. The Finance Department recommends the creation of five (5) new special revenue funds, outlined in recommendation numbers three through seven, and as described in greater detail below, to segregate and track funds for these specific activities and programs, to ensure greater transparency and accountability on the use of these funding sources, which cannot be used for general City operations. The creation of the new funds will allow for greater accountability and transparency in reporting.

The Non-Departmental budget is our way to plan for the unplanned. It contains additional resources that serve as a contingency to support departments that may exceed their budgets during the year, until adjustments can be incorporated through the next budget cycle. Staff recommends transferring available funding from the FY 2024-25 Non-Departmental budget to the City Clerk’s Office (because we did not account for the appropriate amount for production services for City Council meetings), and to the Police Department (where a portion of the unfunded liability costs was assigned to Non-Departmental at the start of the year, and where overtime and certain personnel costs were higher than expected while more typical savings in salary and contractual services were lower than expected).

With the new Tyler-Munis system, improved position control (including Part-Time assignments), a more precise calculation of FLSA hours worked, as well as with the designation of the five funds, we should be able to address these issues better in FY 25-26 and beyond.

During the course of closing the City’s books and preparing for the City’s annual audit for Fiscal Year 2024-2025, staff identified a number of new funds that should be created in the City’s Finance system. 2 of 205
FISCAL YEAR 2025-2026 CARRYOVER APPROPRIATIONS; REQUEST FOR NEW FUNDS CREATION; TRANSFER OF BUDGETARY APPROPRIATIONS
November 18, 2025

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Section 3.24.060 requires City Council approval to create a new fund. Staff is recommending the creation of the following funds:
• Animal Shelter Donations Special Revenue Fund to account for donations received to support the City’s Animal Shelter. Currently, these funds are recorded in the City’s General Fund. Staff recommends that the accumulated funds be tracked in a separate fund for increased transparency and to segregate restricted donations from General Fund revenues. There are no expenditures from the fund that will occur as a result of this administrative action. • Air Quality Management District (AQMD) Special Revenue Fund to account for the vehicle registration fees the City receives from the South Coast Air Quality Management District (SCAQMD) pursuant to Assembly Bill (AB) 2766. These funds are restricted by state law to fund programs that reduce motor vehicle emissions. The City has historically recorded the revenue received in the City’s General Fund. However, during a recent audit performed on behalf of SCAQMD, the auditors recommended the City create a separate AQMD Fund to record both revenues and expenditures for this program to comply with SCAQMD’s guidelines. • State Asset Forfeiture Special Revenue Fund to account for the assets seized under state laws and procedures. The City currently has an Asset Forfeiture Special Revenue Fund (135) that is being used to track assets seized under federal laws and procedures and assets seized under state laws and procedures. Currently, Finance staff tracks the revenue and expenditures for federal asset forfeitures vs. state asset forfeitures in a manual Excel spreadsheet. Staff recommends segregating these two programs into two funds to eliminate the need to use a manual Excel spreadsheet and consequently improve efficiency for the recordkeeping and recording of these two programs. • Library Impact Fee General Fund to account for impact fees collected in compliance with Laguna Beach Municipal Code Chapter 25.85. Specifically, Section 25.85.050 requires these fees to be recorded in a separate fund.
• Cultural & Environmental Stewardship Special Revenue Fund to account for contributions from Visit Laguna Beach pursuant to Amendment No. 1, dated June 10, 2025, to the Agreement between the City and Visit Laguna Beach dated December 16, 2024 (together, the “Agreement”). The Agreement requires the contributions from Visit Laguna Beach are recorded in a separate fund to be used exclusively for City improvements and services that support “Cultural and Environmental Stewardship” as outlined in the 2025 Laguna Beach Tourism Marketing District (TMD) Management District Plan.

Attachment 3 provides a summary of Capital Improvement Program (CIP) carryovers. City Council approval is not required. This document is provided for communication purposes only. 3 of 205
FISCAL YEAR 2025-2026 CARRYOVER APPROPRIATIONS; REQUEST FOR NEW FUNDS CREATION; TRANSFER OF BUDGETARY APPROPRIATIONS
November 18, 2025

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FINANCIAL ANALYSIS
There is no fiscal impact associated with the proposed carryover appropriations. The estimated fund balances presented in the Fiscal Year 2025-26 budget already account for these appropriations and continuing them from one year to the next has no impact on the ending fund balances. There is no financial impact regarding the establishment of the City’s new Special Revenue Funds, as current funds available in the General Fund or other funds will be transferred into the new Special Revenue Funds. Additionally, there is no financial impact associated with recommendation number four, as the transfer of available budgetary funding between the General Fund Non-Departmental expenditure budget and the two General Fund departments result in a $0 net impact to the City’s General Fund for FY 2024-25.

ENVIRONMENTAL ANALYSIS
The approval of the carryover appropriations and revenues, creation of new funds, and transfer of budget appropriations is not considered a project subject to the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines section 15378(b)(4), which states that a project does not include “[t]he creation of government funding mechanisms or other governmental fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.” This action is a fiscal activity that is not tied to any specific project that may have significant environmental impacts and therefore is not a project requiring environmental review.

ATTACHMENTS

1. Carryover Appropriation Requests (Pgs. 5-6)

2. Carryover Revenue Estimates (Pg. 7)

3. Carryover of CIP Appropriations (Pgs. 8-11)
Submitted By: .Michelle Bannigan Approved: .David A Kiff Michelle Bannigan, Finance
Director
Dave Kiff, City Manager
Report Prepared By:

Shannon Espinoza, Finance Manager
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Attachment 1
City of Laguna Beach
Carryover Appropriations
Fiscal Year 2025-26
Encumbered
Approp. Total
(Outstanding Unencumber FY
Fund Org Object Project Department Description of Carryover POs) Approp. Carryover General Fund
110 1101781 79999 S2503 Non-Departmental City-Wide Document Management - 50,000 50,000 110 1101781 80010 Non-Departmental Office Furniture and Equipment - 33,500 33,500 110 1101205 70411 Information Technology CAD/RMS - 948,900 948,900 110 1101601 72007 Human Resources Employee Training & Development - 50,000 50,000 110 1101601 72090 Human Resources Citywide Classification & Compensation Stud - 121,800 121,800 110 1101701 55036 Finance Finance Consulting Services - 45,000 45,000 110 1102401C 80015 S2502 Fire Seagrave Restoration 105,200 - 105,200 110 1102401C 80010 Fire EOC Design 75,000 150,000 225,000 110 1102406 72027 Fire Fire Hazard Mitigation Contracts - 331,000 331,000 110 1102120 72088 Police Animal Shelter Donation Account - 1,497,850 1,497,850 110 1102102 72069 Police Traffic Safety (OTS)-DUI Grant - 49,500 49,500 110 1102102 55080 Police Jail Improvements - 49,050 49,050 110 1102601C 80020 Marine Safety Marine Vessel Conversion & Maintenance - 41,700 41,700 110 1103112 72030 Public Works Landscape Weed Abatement 47,000 - 47,000 110 1103106 55036 Public Works Susi Q Trellis Replacement Design Svcs 2,000 - 2,000 110 1103604 71000 A2412 Public Works SWA -Design Services for Mermaid St 3,600 - 3,600 110 1103120 51005 Public Works Part-Time Salaries/ Waste Management - 49,800 49,800 110 1103120 55036 Public Works 2025-26 CRV Recycling Campaign 5,000 168,500 173,500 110 1103120 72031 Public Works Recycling Grant Programs - 16,200 16,200 110 1103120 72032 Public Works Used Oil Recycling - 12,300 12,300 110 1103120 72033 Public Works Waste Management Programs - 188,500 188,500 110 1103120 72031 Public Works Solid Waste Landfills Importation - 707,600 707,600 110 1103120 72017 Public Works Recycling and Organics Program - 670,200 670,200 110 1103120 79999 G2511 Public Works Solid Waste & Recycling - HD43 Grant - 50,000 50,000 110 1103112 55036 G2515 Public Works FY25 Urban & Community Forestry Grant - 100,000 100,000 110 1103120 79999 G2510 Public Works FY25 CalRecycle SB1383 Grant - 75,000 75,000 110 1104101 72038 Community Development Heritage Committee - 5,000 5,000 110 1104106 72043 Community Development Update Downtown Plan - 160,000 160,000 110 1104106 72044 Community Development New Projects and Programs - 190,000 190,000 110 1104106 72076 Community Development Zoning Code Update - 130,350 130,350 110 1104106 72077 Community Development Blufftop Major Remodel Study - 59,600 59,600 110 1101781 71000 Transit & Community Services Community Assistance Grant - 9,000 9,000 Subtotal, General Fund: 237,800 5,960,350 6,198,150
112 1121270 79999 S2506 Cultural Arts City Hall Exhibitions - 8,000 8,000 112 1121270 79999 S2507 Cultural Arts Cultural Arts Publications - 10,000 10,000 112 1121270 79999 S2508 Cultural Arts Cultural Arts Facilities - 927,900 927,900 112 1121270 79999 S2510 Cultural Arts Professional Speaker Series - - - 112 1121270 79999 S2511 Cultural Arts LB Poet Laureate - - - 112 1121270 79999 S2512 Cultural Arts AC Special Programs - - - 112 1121270 79999 S2513 Cultural Arts Banner and Palette Competitions - 33,300 33,300 112 1121270 79999 S2514 Cultural Arts Performing Arts - - - 112 1121270 79999 S2515 Cultural Arts Restoration of Public Art - 25,000 25,000 112 1121270 79999 S2516 Cultural Arts Temporary Installations - 49,700 49,700 Business Improvement District Fund Total 0 1,053,900 1,053,900 Measure LL Fund:
113 1133106C 80020 Public Works Downtown Trash & Recycling Receptacle - 47,000 47,000 Measure LL Fund Total 0 47,000 47,000
Open Space Fund:
114 1141781 72087 City Manager Aliso Creek Estuary Restoration - 100,000 100,000 Open Space Fund Total 0 100,000 100,000
118 1183657C 80020 Transit & Community Services Other Equipment - 126,000 126,000 118 1183657 55036 Transit & Community Services Contractual Services 134,400 55,000 189,400 Parking Authority Fund Total 134,400 181,000 315,400
Art In-Lieu Fund:
123 1231275 72095 Cultural Arts Grants for Artists - 17,000 17,000 123 1231275 72105 Cultural Arts Public Art Ordinance Consultants - 10,800 10,800 123 1231275 72106 Cultural Arts Public Art Donation - 106,200 106,200 Art In-Lieu Fund Total 0 117,000 117,000
127 1274101 72080 City Manager Senior Home Repair Program - 20,600 20,600 127 1274101 72099 City Manager Housing & ADU Outreach - 3,300 3,300 Housing In-Lieu Fund Total 0 23,900 23,900
128 1282401C 80015 Fire Fire Inspector Vehicle/Outfitting - 70,000 70,000 128 1282401C 80015 Fire Type I Fire Engine - 1,200,000 1,200,000 128 1282401C 80015 Fire (2) Command Vehicles w/upfitting 301,300 133,700 435,000 128 1282401C 80015 Fire Fire Department Utility Truck - 59,700 59,700 128 1282102C 80015 Police Vehicle Replacement - 290,000 290,000 128 1282601C 80015 Marine Safety Two Trucks: 4 Runner - 156,800 156,800 128 1283108C 80015 Public Works Street Sweeper & (2) Streets Div Trucks - 741,700 741,700 128 1283651C 80015 Transit & Community Services Vehicle Replacement (Trolleys) - 1,800,000 1,800,000 Vehicle Replacement Fund Total 301,300 4,451,900 4,753,200 Wastewater Fund:
137 1373132 55036 Public Works Wastewater Cost of Service Study 78,600 84,900 163,500 137 1373132C 80020 Public Works CCTV Van - 325,900 325,900 Sewer Fund Total 78,600 410,800 489,400
Vehicle Replacement Fund:

Laguna Beach Marketing and Tourism Fund:

Parking Authority Fund:

Housing In-Lieu Fund:
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Attachment 1
Wildfire Mitigation Fund:
141 1412406C 80010 Fire Fire Station Alerting - 295,000 295,000 141 1412403 79999 Fire Aspen - BBC Bio and archeological - 25,300 25,300 141 1412403 79999 Fire FMZ 17 and 18 site monitoring - 29,600 29,600 Wildfire Mitigation Fund Total 0 349,900 349,900
Housing Fund:
146 1461781 55036 Community Development Affordable Housing Initiatives - 281,700 281,700 Housing Fund 0 281,700 281,700
Transit Fund:
310 3103651 55036 Transit & Community Services Contractual Services 50,000 - 50,000 310 3103654 55036 Transit & Community Services Contractual Services 55,100 - 55,100 310 3103655 55036 Transit & Community Services Contractual Services 43,550 - 43,550 Transit Fund Total 148,650 0 148,650
REPORT TOTALS: 900,750 12,977,450 13,878,200
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Attachment 2
Fund Org Object/Project Description Amount
110 1102100 48180 Police: Jail Advertising Revenue 49,050 110 1103100 45000-G2515 Public Works: FY25 Urban & Community Forestry Grant 100,000 110 1103100 45100-G2511 Public Works: Solid Waste & Recycling Grant- HD43 50,000 110 1103100 45100-G2510 Public Works: FY25 CalRecycle SB1383 Grant 75,000 110 1103100 45100-C2203 Public Works: AB 102- Moulton Meadows Dog Park 115,300 110 1103100 45100-G2521 Public Works: State Coronavirus Response Grant 200,000 110 1103120 Public Works: Recycling Grant Programs 16,200 110 1103602 Transit & Community Svcs: Adult Education Block Grant 61,100 Total General Fund 666,650
616 6160000 45000-CPY35 Public Works: Safe Streets 4 All Grant 115,927 Total Capital Improvement Fund 115,927
310 3103600 45200 - G3101 Transit & Community Services: Off-Season Weekend Trolley 1,650,000 310 3103600 45200 - G3102 Transit & Community Services: Summer Breeze Trolley 71,390 Total Transit Fund 1,721,390
REPORT TOTAL 2,503,966
Capital Improvement Fund
Transit Fund
City of Laguna Beach
Carryovers of Revenues
Fiscal Year 2025-26
General Fund
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Capital Project Balances
Ending June 30, 2025
Attachment 4
Capital Improvement Fund Rebudgets
Fund 616 - CIP Fund
Project No. Project Title Beginning Budget Expenditures Enc/Reqs Available Budget Current Status C2237 Capital Improvement Projects $ 576 $ - $ - $ 576 Project to be closed C0801 Channel Rehab Laguna Canyon $ 41,982 $ 4,950 $ - $ 37,032 Complete C0802 Creek Erosion Protection $ 76,840 $ 68,079 $ 8,759 $ 2 In Year 5 of 5 habitat mitigation C1201 Burn Dump Restoration $ 1,776 $ 2,376 $ - $ (600) Project to be closed C1704 Citywide Parking Lot Rehabilitation $ (0) $ - $ - $ (0) Complete C1705 Coast Hwy Sidewalk Gap Closures $ 1,141,848 $ 75,220 $ 66,628 $ 1,000,000 In design C1708 Storm Drain Bolsa Way St Anns $ 271,473 $ - $ - $ 271,473 In design C1710 Furniture Fixture Equip Replacement $ 566,244 $ 348,319 $ 121,041 $ 96,884 Annual allocation C1801 Laguna Cyn Rd Staging Area Improvement $ - $ 150,000 $ - $ (150,000) Funding transferred C1904 Future City Facilities Funding $ 2,372,825 $ 43,169 $ - $ 2,329,656 Available funding C2004 Main Beach Park Renovation $ 1,642,365 $ 1,417,619 $ 133,236 $ 91,510 Complete C2005 CIP Library Acquisition $ - $ - $ 171,025 $ (171,025) Complete C2006 Citywide Storm Damage Slope Repair $ 19,640 $ 19,640 $ - $ (0) Complete C2101 Caltrans Project 2 Add Upgrade $ 689,800 $ 3,675 $ - $ 686,125 In construction C2102 Jahraus Park Renovations $ 383,243 $ 10,769 $ 23,930 $ 348,544 In design C2104 Sidewalk Master Plan $ 214,221 $ 58,737 $ 58,729 $ 96,754 In design C2106 Moss St Beach Access $ 216,519 $ 138,085 $ 20,145 $ 58,290 Complete C2107 Cleo Beach Access Improvements $ 2,583,136 $ 163,990 $ 5,401 $ 2,413,745 In construction C2115 Downtown Action Plan Improvements $ 969,902 $ 25,921 $ 10,079 $ 933,902 In design C2203 Moulton Meadows Dog Play Area $ 0 $ - $ - $ 0 Complete C2208 Fire Station 4 Replacement $ 9,935,021 $ 119,500 $ 428,784 $ 9,386,737 In design C2215 Fire Station 1 Restroom Renovation $ 0 $ - $ - $ 0 Complete C2301 Village Green Park Playground Renovation $ 627,697 $ 68,855 $ - $ 558,841 In design C2305 Park Ave Bike Line Striping $ 87,351 $ 87,351 $ - $ 0 Complete C2306 Moulton Meadows Shade Structure $ 150,000 $ 119,499 $ 30,499 $ 3 Complete C2308 Pickleball Court Study $ 0 $ - $ - $ 0 Complete
C2309 Mobile Skate Park $ (0) $ - $ - $ (0) Complete
C2313 Sleepy Hollow Beach Access Improvement $ 62,117 $ 36,855 $ 15,317 $ 9,946 In design C2314 St Anns Drive Retaining Wall $ 39,183 $ 15,420 $ 9,730 $ 14,034 In design C2317 Forest Promenade Permanent $ 2,679,991 $ 139,481 $ 109,139 $ 2,431,370 In design C2403 Anita St Beach Stairs Replace $ 2,777,381 $ 167,697 $ 2,253,909 $ 355,775 In construction C2404 Bluebird Cyn Storm Drain Repair $ 980,000 $ - $ - $ 980,000 In design C2407 Wendt Terr Retain Wall Repairs $ 148,641 $ 22,071 $ 19,226 $ 107,344 In design C2408 Diver Cove Bch Access Improvements $ 150,000 $ - $ - $ 150,000 In design C2409 Ceaonothus Storm Drain Improv $ 25,000 $ 8,900 $ 16,100 $ 0 Complete C2410 Agate St Storm Drain Improvements $ 100,000 $ 75,125 $ 24,875 $ 1 In design C2412 Alta Vista Wy Retaining Wall Replacement $ 99,032 $ 39,771 $ 16,100 $ 43,161 Complete C2413 Glenneyre St Lighting Improvements $ 148,567 $ 38,403 $ 66,304 $ 43,860 In design C2416 Thousand Step Beach Restroom Concept $ 48,000 $ - $ 48,000 $ - Complete

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Capital Project Balances
Ending June 30, 2025
Attachment 4
Capital Improvement Fund Rebudgets
C2417 PD Facility Improvements $ 212,121 $ 97,725 $ 28,413 $ 85,983 In construction C2418 Bluebird Canyon Dr Tree Evaluations $ 87,600 $ 49,324 $ - $ 38,276 In design C2419 Toovet Trail Feasibility Study $ 42,395 $ 40,995 $ - $ 1,400 Complete C2501 Storm Drain Master Plan Update $ 370,000 $ 1,500 $ - $ 368,500 In design C2503 CRC Generator Transfer Switch $ 100,000 $ - $ - $ 100,000 Bidding C2504 Police Department Cabling Improvements $ 395,000 $ 127,036 $ 206,608 $ 61,357 In construction C2506 Server Room Upgrades $ 350,000 $ 350,000 $ - $ 0 Complete C2507 Fire Station 2 Emergency Generator $ 300,000 $ - $ - $ 300,000 To be used for solar panels C2508 Sunset Avenue Slope Repair $ 1,140,449 $ 1,131,107 $ - $ 9,342 Complete C2509 Police Department 2nd Floor Improvements $ 100,000 $ 52,324 $ 14,280 $ 33,396 In construction C2510 Dog Park Slope Stabilization $ 100,000 $ - $ - $ 100,000 In design C2511 Enclosed Lifeguard Tower Installations $ 252,600 $ 44,804 $ - $ 207,796 In design C2517 Facility Master Plan $ 799,139 $ 712,779 $ (25,540) $ 111,900 In design C2518 Capital Improvement Projects $ 30,000 $ 15,395 $ (540) $ 15,146 Project to be closed CPY01 Electric Vehicle & Charging Station MP $ 150,223 $ 115,569 $ 15,822 $ 18,832 In design CPY02 Solar Panels Assessment $ 98,038 $ 73,038 $ - $ 25,000 In design CPY07 Laguna Canyon Road Improvement $ 3,080,387 $ 996,196 $ 1,875,935 $ 208,256 In design CPY09 Santa Cruz Strom Drain Extension $ (0) $ - $ - $ (0) Complete CPY10 CALTRANS project 1 Add. Upgrade $ 240,946 $ 5,234 $ - $ 235,712 In construction CPY12 Seismic Evaluation $ 805,890 $ 416,841 $ 152,330 $ 236,720 Complete CPY16 Decorative Fencing Channel $ 923,002 $ 766,178 $ - $ 156,823 In design CPY17 Fuel Modification Continuation $ 1,501,883 $ - $ - $ 1,501,883 Available funding CPY18 Parks Rehab-Moulton, Alta, Lang $ 1,746,740 $ - $ - $ 1,746,740 On hold CPY34 Citywide Playground Study $ 22,346 $ 22,346 $ - $ - Complete CPY35 Citywide Safety Action Plan $ 195,573 $ 177,534 $ 51,759 $ (33,720) Complete C1601 Bluebird Canyon Widening $ 88,018 $ 69,502 $ - $ 18,516 Complete Total $ 42,382,720 $ 8,734,905 $ 5,976,019 $ 27,671,797

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9 of 205
Capital Project Balances
Ending June 30, 2025
Attachment 4
Capital Improvement Fund Rebudgets
Fund 618 - Parking Fund
Project No. Project Title Beginning Budget Expenditures Enc/Reqs Available Budget Current Status C1704 Citywide Parking Lot Rehabilitations $ 46,335 $ - $ - $ 46,335 Annual allocation C2113 Downtown Parking Structure Study $ 890,033 $ 249,250 $ 301,582 $ 339,201 On hold C2201 Parking Pay Station Installations $ 825,412 $ 79,688 $ 61,413 $ 684,311 In construction C2202 Citywide Parking Master Plan $ 287,048 $ - $ - $ 287,048 Complete C2216 Future Parking Facilities $ 3,995,500 $ - $ - $ 3,995,500 Available Funding C2311 Glenneyre Parking Structure Repair $ 1,893,042 $ 1,669,542 $ 32,302 $ 191,198 In design C2512 Laguna Beach CRC Parking Lot Gates $ 300,000 $ 5,383 $ - $ 294,617 Not started $ 8,237,369 $ 2,003,863 $ 395,297 $ 5,838,209
Fund 632 - Gas Tax Fund
Project No. Project Title Beginning Budget Expenditures Enc/Reqs Available Budget Current Status C2108 Zone 3 Street Improvements $ 1,942,098 $ 1,632,133 $ 155,202 $ 154,763 Complete C2209 Zone 3 Street Slurry Seal $ 0 $ - $ - $ 0 Complete C2217 Zone 4 Downtown St Resurface $ 591,781 $ 46,536 $ 8,138 $ 537,107 In design C2305 Park Ave Bike Line Striping $ 140,000 $ 113,360 $ - $ 26,641 Complete C2315 Zone 5 Street Slurry Seal $ 1,869,943 $ 1,387,687 $ 249,264 $ 232,992 Complete C2316 Zone 6 Sidewalk Repairs $ 213,000 $ 1,679 $ - $ 211,321 Complete C2423 Zone 7 Sidewalk Repairs $ 100,000 $ - $ - $ 100,000 In design C2427 Zone 6 St Slurry Seal $ 1,550,000 $ - $ - $ 1,550,000 In construction CPY21 Zone 4 Street Concrete Rehabilitation $ 100,000 $ 23,256 $ 5,534 $ 71,209 In design CPY22 Zone 5 Sidewalk Repairs $ 4,500 $ 4,500 $ - $ - Complete $ 6,511,322 $ 3,209,151 $ 418,138 $ 2,884,033
Fund 634 - Street Light Fund
Project No. Project Title Beginning Budget Expenditures Enc/Reqs Available Budget Current Status C0501 Laguna Canyon Rd Prel. Design $ 0 $ - $ - $ 0 Complete C2007 Coast Hwy Street Lighting $ (1) $ - $ - $ (1) Complete C2109 Bluebird UD 2020 2 $ 198,732 $ 24,421 $ 112,287 $ 62,024 In construction C2110 Park Ave UD 21 02 $ 1,058,051 $ 642,851 $ 110,969 $ 304,231 Complete C2118 Coast Hwy UD 2020 1 $ 2,849,970 $ - $ 69,842 $ 2,780,127 Bidding C2218 Temple Hills Drive Resurfacing $ 44,481 $ 44,481 $ - $ (0) Complete CPY23 Coast Hwy Ornamental St Lights $ 1,942,800 $ - $ - $ 1,942,800 Bidding $ 6,094,032 $ 711,753 $ 293,099 $ 5,089,181
Fund 636 - South Laguna Fund
Project No. Project Title Beginning Budget Expenditures Enc/Reqs Available Budget Current Status C2428 Aliso Beach Parking Lot Rehabilitation $ 700,000 $ 92,136 $ 86,013 $ 521,851 In design $ 700,000 $ 92,136 $ 86,013 $ 521,851
Total
Total
Total
Total

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10 of 205
Capital Project Balances
Ending June 30, 2025
Attachment 4
Capital Improvement Fund Rebudgets
Fund 637 - Wastewater Fund
Project No. Project Title Beginning Budget Expenditures Enc/Reqs Available Budget Current Status C1807 Anita St Lift Station Reconstruction $ 4,502,271 $ 298,424 $ 3,895,660 $ 308,188 In construction C2003 Lift Station Hatch Replacement $ - $ - $ - $ - Complete C2112 Pipeline Rehabilitation (Zone 5) $ 1,045,582 $ 166,164 $ - $ 879,418 Complete C2429 Victoria II Lift Station Rehabilitation $ 950,000 $ 72,073 $ 7,614 $ 870,313 In design C2431 Manhole Inspection $ 1,000,000 $ 541,479 $ 76,915 $ 381,606 In design C2432 Main Beach Lift Station Improvements $ 150,000 $ - $ - $ 150,000 In design C2433 Sewer Facility and Equipment Upgrade $ 136,341 $ 15,846 $ 22,404 $ 98,091 Annual allocation C2434 SOCWA WWTP Projects $ 11,585,244 $ 1,000,004 $ 451,305 $ 10,133,935 Annual payment to SOCWA C2513 Wastewater Master Plan $ 300,000 $ 162,680 $ 137,320 $ - In design C2514 Sleepy Hollow Lane Sewer Replacement $ 750,000 $ 176,738 $ 525,468 $ 47,795 Post-construction C2515 Crescent Bay Lift Station Reconstruction $ 250,000 $ - $ - $ 250,000 In design C2611 Top of the World Rehabilitation $ - $ 4,398 $ - $ (4,398) In construction CPY24 Main Beach Lift Station $ 61,800 $ - $ - $ 61,800 In design CPY27 Force Main Inspection $ 257,500 $ - $ - $ 257,500 In design CPY28 Siphon Inspections $ 515,000 $ - $ - $ 515,000 In design CPY29 Irvine Cove Lift Station Generator $ 0 $ - $ - $ 0 Complete C2220 Bluebird Canyon Lift Station Reconstruction $ 507,500 $ 71,932 $ 23,316 $ 412,252 In design CPY30 Laguna SOCWA Lift Station Generator $ 0 $ - $ - $ 0 Complete CPY31 Bluebird SOCWA Valve Replacement $ 100,000 $ - $ - $ 100,000 In design CPY32 NCI Reach 5 Replacement $ 734,398 $ 358,135 $ 246,265 $ 129,998 In design CPY33 ACL/NCI Improvements $ 3,524,200 $ 2,487,968 $ 1,012,032 $ 24,200 In construction $ 26,369,836 $ 5,355,840 $ 6,398,299 $ 14,615,697
Assessment District Projects
Project No. Project Title Beginning Budget Expenditures Enc/Reqs Available Budget Current Status AD 2013-2 Diamond Street Utility Undergrounding $ 752,600 $ 51,709 $ - $ 700,891 Project Closeout AD 2014-2 Woods Cove Utility Undergrounding $ 26,612,294 $ 5,833,574 $ 4,667,351 $ 16,111,368 In construction AD 2021-1 West Street Utility Undergrounding $ 388,589 $ 14,930 $ 11,886 $ 361,773 Bond Sale Pending AD 2021-3 Fairview/La Brea Utility Undergrounding $ 455,000 $ 34,359 $ 31,350 $ 389,291 NOI Pending Total $ 28,208,483 $ 5,934,572 $ 4,710,587 $ 17,563,324 Total

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MEMORANDUM
DATE: November 18, 2025
TO: City Council
Ann Marie McKay, City Clerk
VIA: Dave Kiff, City Manager
FROM: Michelle Bannigan, Finance Director
SUBJECT: Fiscal Year 2025-2026 Carryover Appropriations; Request for New Funds Creation; Transfer of Budgetary Appropriations (Consent Item No. 12) A minor correction to the staff report referenced above was identified after the agenda packet for tonight’s City Council meeting was published. Attachment No. 2 includes a revenue carryover request of $61,100 for the Adult Education Program funded by the Adult Education Block Grant the City receives through the Laguna Beach Unified School District (Fund 110-General Fund). However, Attachment No. 1 does not include a carryover appropriation for this program. A revised Attachment No. 1 is attached with the additional line item highlighted in yellow.

As a result, staff would like to amend Recommendation #1 to increase the request for carryover appropriations by $61,100 as follows:

1. Carryover appropriations of $13,939,300 to Fiscal Year 2025-26 to provide continuing funding of projects in progress at the end of last fiscal year. 12 of 205
Attachment 1
City of Laguna Beach
Carryover Appropriations
Fiscal Year 2025-26
Encumbered
Approp. Total
(Outstanding Unencumber FY
Fund Org Object Project Department Description of Carryover POs) Approp. Carryover General Fund
110 1101781 79999 S2503 Non-Departmental City-Wide Document Management - 50,000 50,000 110 1101781 80010 Non-Departmental Office Furniture and Equipment - 33,500 33,500 110 1101205 70411 Information Technology CAD/RMS - 948,900 948,900 110 1101601 72007 Human Resources Employee Training & Development - 50,000 50,000 110 1101601 72090 Human Resources Citywide Classification & Compensation Study 121,800 - 121,800 110 1101701 55036 Finance Finance Consulting Services - 45,000 45,000 110 1102401C 80015 S2502 Fire Seagrave Restoration 105,200 - 105,200 110 1102401C 80010 Fire EOC Design 75,000 150,000 225,000 110 1102406 72027 Fire Fire Hazard Mitigation Contracts - 331,000 331,000 110 1102120 72088 Police Animal Shelter Donation Account 1,497,850 - 1,497,850 110 1102102 72069 Police Traffic Safety (OTS)-DUI Grant - 49,500 49,500 110 1102102 55080 Police Jail Improvements - 49,050 49,050 110 1102601C 80020 Marine Safety Marine Vessel Conversion & Maintenance - 41,700 41,700 110 1103112 72030 Public Works Landscape Weed Abatement 47,000 - 47,000 110 1103106 55036 Public Works Susi Q Trellis Replacement Design Svcs 2,000 - 2,000 110 1103604 71000 A2412 Public Works SWA -Design Services for Mermaid St 3,600 - 3,600 110 1103120 51005 Public Works Part-Time Salaries/ Waste Management 49,800 - 49,800 110 1103120 55036 Public Works 2025-26 CRV Recycling Campaign 5,000 168,500 173,500 110 1103120 72031 Public Works Recycling Grant Programs 16,200 - 16,200 110 1103120 72032 Public Works Used Oil Recycling 12,300 - 12,300 110 1103120 72033 Public Works Waste Management Programs 188,500 - 188,500 110 1103120 72031 Public Works Solid Waste Landfills Importation 707,600 - 707,600 110 1103120 72017 Public Works Recycling and Organics Program 670,200 - 670,200 110 1103120 79999 G2511 Public Works Solid Waste & Recycling - HD43 Grant 50,000 - 50,000 110 1103112 55036 G2515 Public Works FY25 Urban & Community Forestry Grant 100,000 - 100,000 110 1103120 79999 G2510 Public Works FY25 CalRecycle SB1383 Grant 75,000 - 75,000 110 1103602 55036 Transit & Community Services Adult Education Block Grant 61,100 - 61,100 110 1104101 72038 Community Development Heritage Committee 5,000 - 5,000 110 1104106 72043 Community Development Update Downtown Plan 160,000 - 160,000 110 1104106 72044 Community Development New Projects and Programs 190,000 - 190,000 110 1104106 72076 Community Development Zoning Code Update 130,350 - 130,350 110 1104106 72077 Community Development Blufftop Major Remodel Study 59,600 - 59,600 110 1101781 71000 Transit & Community Services Community Assistance Grant 9,000 - 9,000 Subtotal, General Fund: 237,800 6,021,450 6,259,250
112 1121270 79999 S2506 Cultural Arts City Hall Exhibitions 8,000 - 8,000 112 1121270 79999 S2507 Cultural Arts Cultural Arts Publications 10,000 - 10,000 112 1121270 79999 S2508 Cultural Arts Cultural Arts Facilities 927,900 - 927,900 112 1121270 79999 S2513 Cultural Arts Banner and Palette Competitions 33,300 - 33,300 112 1121270 79999 S2515 Cultural Arts Restoration of Public Art 25,000 - 25,000 112 1121270 79999 S2516 Cultural Arts Temporary Installations 49,700 - 49,700 Business Improvement District Fund Total 0 1,053,900 1,053,900 Measure LL Fund:
113 1133106C 80020 Public Works Downtown Trash & Recycling Receptacle 47,000 - 47,000 Measure LL Fund Total 0 47,000 47,000
Open Space Fund:
114 1141781 72087 City Manager Aliso Creek Estuary Restoration 100,000 - 100,000 Open Space Fund Total 0 100,000 100,000
118 1183657C 80020 Transit & Community Services Other Equipment 126,000 - 126,000 118 1183657 55036 Transit & Community Services Contractual Services 134,400 55,000 189,400 Parking Authority Fund Total 134,400 181,000 315,400
Art In-Lieu Fund:
123 1231275 72095 Cultural Arts Grants for Artists 17,000 - 17,000 123 1231275 72105 Cultural Arts Public Art Ordinance Consultants 10,800 - 10,800 123 1231275 72106 Cultural Arts Public Art Donation 106,200 - 106,200 Art In-Lieu Fund Total 0 117,000 117,000
127 1274101 72080 City Manager Senior Home Repair Program 20,600 - 20,600 127 1274101 72099 City Manager Housing & ADU Outreach 3,300 - 3,300 Housing In-Lieu Fund Total 0 23,900 23,900
128 1282401C 80015 Fire Fire Inspector Vehicle/Outfitting - 70,000 70,000 128 1282401C 80015 Fire Type I Fire Engine - 1,200,000 1,200,000 128 1282401C 80015 Fire (2) Command Vehicles w/upfitting 301,300 133,700 435,000 128 1282401C 80015 Fire Fire Department Utility Truck - 59,700 59,700 128 1282102C 80015 Police Vehicle Replacement - 290,000 290,000 128 1282601C 80015 Marine Safety Two Trucks: 4 Runner - 156,800 156,800 128 1283108C 80015 Public Works Street Sweeper & (2) Streets Div Trucks 741,700 - 741,700 128 1283651C 80015 Transit & Community Services Vehicle Replacement (Trolleys) 1,800,000 - 1,800,000 Vehicle Replacement Fund Total 301,300 4,451,900 4,753,200 Wastewater Fund:
137 1373132 55036 Public Works Wastewater Cost of Service Study 78,600 84,900 163,500 137 1373132C 80020 Public Works CCTV Van 325,900 - 325,900 Sewer Fund Total 78,600 410,800 489,400
Vehicle Replacement Fund:

Laguna Beach Marketing and Tourism Fund:

Parking Authority Fund:

Housing In-Lieu Fund:
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Attachment 1
Wildfire Mitigation Fund:
141 1412406C 80010 Fire Fire Station Alerting - 295,000 295,000 141 1412403 79999 Fire Aspen - BBC Bio and archeological 25,300 - 25,300 141 1412403 79999 Fire FMZ 17 and 18 site monitoring 29,600 - 29,600 Wildfire Mitigation Fund Total 0 349,900 349,900
Housing Fund:
146 1461781 55036 Community Development Affordable Housing Initiatives - 281,700 281,700 Housing Fund 0 281,700 281,700
Transit Fund:
310 3103651 55036 Transit & Community Services Contractual Services 50,000 - 50,000 310 3103654 55036 Transit & Community Services Contractual Services 55,100 - 55,100 310 3103655 55036 Transit & Community Services Contractual Services 43,550 - 43,550 Transit Fund Total 148,650 0 148,650
REPORT TOTALS: 900,750 13,038,550 13,939,300
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1 McKay, Ann Marie CC
Subject: Consent Item #12 - Thank you for establishing separate animal shelter donation fund & request for ad hoc committee
From: McKay, Ann Marie CC
Sent: Monday, November 17, 2025 5:34 PM
To: Kiff, Dave CM <[email protected]>
Cc: Dereszynski, David PD <[email protected]>; Calvert, Jeffrey PD <[email protected]>; Beres, Jim PD <[email protected]>
Subject: Consent Item #12 - Thank you for establishing separate animal shelter donation fund & request for ad hoc committee
Dave (and City Council, via bcc),
I wanted to thank you for listening to the concerns expressed by animal shelter volunteers and supporters, and for taking action by moving the animal shelter donation funds into a new, separate fund. This change meaningfully improves transparency, accountability, and public trust in how these important community donations are managed.

In line with this positive step, I would like to suggest, for the City Council’s consideration, the establishment of an ad hoc committee to provide oversight on the management and use of these donation funds. The Mayor raised this concept when he met with the departing Shelter Manager, and formalizing such a committee would help ensure that donor intent is honored, that expenditures align with Council policy and community expectations, and that there is a clear structure for ongoing review and communication. There will be disagreements between City staff and shelter volunteers and supporters at times about what may or may not be appropriate use of the funds. An ad hoc committee will provided a mechanism to resolve those conflicts.

An ad hoc committee could:
- Review and provide input on proposed uses of donation funds; - Help shape policies and guidelines for expenditures; and - Offer a regular mechanism for reporting back to the Council and the public.

Thank you again for your responsiveness and for your continued support of the Laguna Beach Animal Shelter and the community that cares so deeply about it. I respectfully ask that you consider bringing back an item for Council discussion and direction.

Sincerely,
Best,
15 of 205

STAFF REPORT
Meeting Date:

November 18, 2025

CONSENT
13 SUBJECT: FIRST READING OF ORDINANCE NO. BXXX AMENDING TITLE 14, CHAPTER

14.50 (BUILDING CODE) OF THE LAGUNA BEACH MUNICIPAL CODE AND FIRST READING OF ORDINANCE NO. FXXX AMENDING TITLE 15, CHAPTER

15.01 (CALIFORNIA FIRE CODE) OF THE LAGUNA BEACH MUNICIPAL CODE TO ADOPT THE 2025 CALIFORNIA BUILDIING, FIRE CODE, AND OTHER

RELATED CODES, INCLUDING LOCAL AMENDMENTS, ADOPT A

RESOLUTIONS SETTING FORTH FINDINGS BASED ON LOCAL CONDITIONS

FOR CERTAIN LOCAL AMENDMENTS AND FINDING THE PROPOSED

ACTIONS ARE NOT PROJECTS SUBJECT TO THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (“CEQA”) OR IN THE ALTERNATIVE ARE EXEMPT FROM CEQA .

RECOMMENDATION: It is recommended that the City Council:

Introduce two separate ordinances adopting the 2025 California Building Standards Codes and Fire Code with local amendments to title 14 and 15 of the LBMC:

1. Waive full reading and introduce for first reading by title only an Ordinance titled, “AN ORDINANCE OF THE CITY OF LAGUNA BEACH ADOPTING THE 2025 EDITIONS OF THE CALIFORNIA BUILDING CODE AND OTHER RELATED 2025 CODES BY AMENDING TITLE 14 (BUILDIGS AND CONSTRUCTION), OF THE LAGUNA BEACH MUNICIPAL CODE BY AMENDING CHAPTER 14.50 (BUILDING CODE), CHAPTER 14.52 (RESIDENTIAL CODE), CHAPTER 14.54 (MECHANICAL CODE), CHAPTER 14.64 (PLUMBING CODE), CHAPTER 14.68 (ELECTRICAL CODE), CHAPTER 14.70 (WILDLAND-URBAN INTERFACE CODE), CHAPTER 14.86 (GREEN BUILDING CODE) AND ADDINGS CHAPTER 14.90 (ENERGY CODE), CHAPTER 14.91 (HISTORICAL BUILDING CODE), CHAPTER 14.92 (EXISTING BUILDING CODE), AND CHAPTER 14.95 (INTERNATIONAL PROPERTY MAINTENANCE CODE), WITH LOCAL AMENDMENTS

AND FINDING THE ORDINANCE IS NOT A PROJECT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (“CEQA”) OR IN THE ALTERNATIVE IS EXEMPT FROM CEQA;”

2. Waive full reading and introduce for first reading by title only an Ordinance titled, “AN ORDINANCE OF THE CITY OF LAGUNA BEACH amending title 15, chapter 15.01 (California fire code) of the laguna beach municipal code to adopt the 2025 2025 FIRE CODE WITH local amendments AND FINDING THE ORDINANCE IS NOT A PROJECT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (“CEQA”) OR IN THE ALTERNATIVE IS EXEMPT FROM CEQA;”

3. Staff recommends that the Council adopt Resolution 25-XX, which sets forth findings related to local climatic, geological, and topographical conditions within the City of Laguna Beach as allowed per AB 306 that allows certain amendments to the 2025 California Building Standards and Fire Code as reasonably necessary.
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SUMMARY OF THE MATTER
Every three years, the California Building Standards Commission updates and adopts new construction regulations based on internationally published model codes. These regulations are collectively known as the California Building Standards Codes. State law requires the 2025 California Building Standards Codes be enforced by all California cities. The proposed actions have bifurcated the Fire Code discussion from the other California Building Standards Codes for ease of reference and due to the way the Laguna Beach Municipal Code is organized.

Sections 17958.7 and 18941.5 of the California Health and Safety Code permit local governments to adopt amendments to the California Building Standards Codes when they are administrative or procedural in nature, or when local climatic, geological, or topographical conditions warrant more restrictive requirements.

This Code cycle year is unique as California Governor Newsom signed into law Assembly Bill (AB) 130 (formerly AB 306). AB 130 was chaptered into law on June 30, 2025, and went into effect immediately.

AB 130 essentially froze both the States and City’s ability to amend residential building codes from October 1, 2025, to June 1, 2031. The Assembly Bill did provide an exception to the freeze if the proposed changes are deemed necessary as emergency standards to protect health and safety, if changes are related to home hardening (improving fire resistance) and are substantially equivalent to those in effect on January 1, 2025.

Further, the bill allows changes or modifications that are substantially equivalent to changes or modifications that were previously filed by the City and were in effect as of September 30, 2025.

To comply with State law, Ordinance No. BXXX is proposed to adopt and only amend as allowed per AB 130 the 2025 California Building Standards Codes and Ordinance No. FXXX for the 2025 Fire Code, including certain appendices and supplemental regulations. City staff has worked in partnership with the Laguna Beach Fire Department on relevant supplemental regulations, and Resolution No. 25-XX provides the express findings demonstrating that these amendments are reasonably necessary due to local climatic, geological, and topographical conditions within the City of Laguna Beach and comply with AB 130.

The significant changes to this cycle’s California Building Standards Codes were the creation of the California Wildland-Urban Interface (WUI) Code, residing in Part 7 of Title 24, creating its own part in the series of codes. The WUI Code was created to reduce the loss of life and property in areas where development meets wildland by establishing minimum building standards and requirements to resist fire and address fire hazard severity zones. It consolidates previous requirements from the 2022 CA Code and the Residential Code and Fire Code into a more consistent and unified resource that includes a two-pronged strategy to harden structures by increasing building ignition-resistant structures and ensuring adequate defensible space around them.
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DISCUSSION
California Health and Safety Code Section 17958 requires that the California Building Standards Commission adopt and publish the California Building Standards Codes – found in the California Code of Regulations, Title 24 – every three years. The 2025 Edition applies to all California cities.

Sections 17958.7 and 18941.5 of the Health and Safety Code permit local governments to adopt amendments to the California Building Standards Codes when they are administrative, procedural, or necessary due to local climatic, geological, or topographical conditions. Any local amendments cannot be less restrictive than the standards contained in Title 24 (Health and Safety Code Section 18941.5) and must comply with AB 130.

Below you will find excerpts summarizing the Building Code adoption and Fire Code adoption Ordinances.

ORDINANCE NO. BXXX
ADOPTION OF 2025 CALIFORNIA BUILDING STANDARDS CODE
Ordinance No. BXXX (Attachment A) has been prepared for City Council consideration to adopt the 2025 California Building Standards Code, including certain appendices, supplemental regulations, and local amendments, to apply to all new construction within the City of Laguna Beach beginning January 1, 2026.

The proposed ordinance was prepared in coordination with the Laguna Beach Fire Department and the Orange County chapter of the International Code Council. Many of the existing amendments address regionally occurring earthquake and fire hazards and clarify local administrative procedures, pool safety, or other topics not specifically covered by the Codes. All changes are substantially equivalent to those previously filed by the City of Laguna Beach and were in effect as of November 2025.

If approved, Ordinance No. BXXX would repeal the previously adopted 2022 California Building Codes from the Laguna Beach City Code and replace it with the 2025 Building Code and amendments. The Codes proposed for adoption by reference, along with the proposed amendments in Section 1. Chapter 14.50 of Title 14 of the Laguna Beach Municipal Code includes:

CHAPTER 14.50

BUILDING CODE
Sections:

14.50.010 Adoption of the California Building Code, including California Building Code Chapter 1, Division II and Appendix Chapters G, H, I & J.

14.50.014 Amendment to Section 101 of the California Building Code.

14.50.016 Amendment to Section 103 of the California Building Code.

14.50.022 Amendment to Subsection 105.2 of the California Building Code.

14.50.024 Amendment of Subsection 105.5 to the California Building Code.

14.50.026 Addition of Subsection 109.7 to the California Building Code.

14.50.030 Amendment to Subsection 113.1 of the California Building Code.

14.50.034 Amendment to Subsection 114.4 of the California Building Code.

14.50.036 Amendment to Subsection 115.3 of the California Building Code.

14.50.044 Amendment to Subsection 403.1 of the California Building Code. 3 of 273
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14.50.052 Amendment to Subsection 404.3 of the California Building Code.

14.50.056 Amendment to Subsection 410.6 of the California Building Code.

14.50.104 Amendment to Section 903 of the California Building Code.

14.50.105 Amendment to Subsection 904.3.5 of the California Building Code.

14.50.106 Amendment to Subsection 905.4 of the California Building Code.

14.50.107 Amendment to Subsection 907.3.1 of the California Building Code.

14.50.112 Amendment to Subsection 705 of the California Building Code.

14.50.116 Amendment to Subsection 705.2.3.1 of the California Building Code.

14.50.120 Amendment to Section 1505 of the California Building Code.

14.50.132 Amendment to Section 3307 of the California Building Code.

CHAPTER 14.52

RESIDENTIAL CODE
Sections:

14.52.010 Adoption of the California Residential Code including Chapter 1, Division II and Appendix Chapters BH and CI

14.52.014 Addition of Subsection R101.4 to the California Residential Code.

14.52.022 Amendment to Table R301.2 of the California Residential Code.

14.52.024 Amendment to Subsection R324.6.2 of the California Residential Code.

14.52.026 Amendment to Subsection R309.1 of the California Residential Code.

14.52.030 Amendment to Subsection R309.2 of the California Residential Code.

14.52.031 Amendment to Subsection R309.3 of the California Residential Code.

14.52.032 Deletion of Subsections R309.3.1 through R309.3.8.2 of the California Residential Code.

14.52.064 Amendment to Appendix CI Subsection CI100 of the California Residential Code CHAPTER 14.54

CALIFORNIA MECHANICAL CODE
Sections:

14.54.010 Adoption of the California Mechanical Code.

CHAPTER 14.64

CALIFORNIA PLUMBING CODE
Sections:

14.64.010 Adoption of the California Plumbing Code.

CHAPTER 14.68

CALIFORNIA ELECTRICAL CODE
Sections:

14.68.010 Adoption of the California Electrical Code.

CHAPTER 14.70

CALIFORNIA WILDLAND-URBAN INTERFACE CODE
Sections:

14.70.010 Adoption of the California Wildland-Urban Interface Code including Chapter 1, Division II, excluding Chapter 4.

14.70.015 Amendment to Subsection 101.2 of the California Wildland-Urban Interface Code

14.70.020 Amendment to Subsection 504.2 of the California Wildland-Urban Interface Code.

14.70.025 Addition of Subsection 504.10.4 to the California Wildland-Urban Interface Code.

14.70.030 Amendment to Subsection 504.5.2 of the California Wildland-Urban Interface Code. 4 of 273
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14.70.035 Addition of Subsection 504.8.3 to the California Wildland-Urban Interface Code.

14.70.040 Addition of Subsection 504.8.4 of the California Wildland-Urban Interface Code.

14.70.045 Amendment to Chapter 6 of the Wildland-Urban Interface Code.

14.70.050 Deletion and Replacement of Section 603.3.1 of the California Wildland-Urban Interface Code.

14.70.055 Addition of Section 603.4 of the California Wildland-Urban Interface Code.

14.70.060 Addition of Section 604.1.1 of the California Wildland-Urban Interface Code.

14.70.065 Addition of Section 604.1.2 of the California Wildland-Urban Interface Code.

14.70.070 Addition of Section 613 of the California Wildland-Urban Interface Code.

14.70.075 Addition of Section 614 of the California Wildland-Urban Interface Code.

CHAPTER 14.86

CALIFORNIA GREEN BUILDING CODE
Sections:

14.86.011 Addition of subsection 4.106.4.5 to the California Green Building Code.

14.86.012 Addition of subsection 4.304.2 to the California Green Building Code.

14.86.013 Addition of subsection 4.503.2 to the California Green Building Code.

CHAPTER 14.90

CALIFORNIA ENERGY CODE
Sections:

14.90.010 Adoption of the California Energy Code.

CHAPTER 14.91

CALIFORNIA HISTORICAL BUILDING CODE
Sections:

14.91.010 Adoption of the Historical Building Code
CHAPTER 14.92

CALIFORNIA EXISTING BUILDING CODE
Sections:

14.92.010 Adoption of the Existing Building Code
CHAPTER 14.95

INTERNATIONAL PROPERTY MAINTENANCE CODE
Sections:

14.95.010 Adoption of the International Property Maintenance Code.

State of California Health & Safety Code Section 17958 and Section 17922 also mandates that the City of Laguna Beach adopt ordinances or regulations imposing the same requirements as are contained in the 2025 California Fire Code.

Sections 17958.7 and 18941.5 of the Health and Safety Code permit local governments to adopt amendments to the California Fire Code when they are administrative, procedural, or necessary due to local climatic, geological, or topographical conditions. Any local amendments cannot be less restrictive than the 5 of 273
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standards contained in Title 24 (Health and Safety Code Section 18941.5) and must comply with AB 306 “Building Regulations”.

ORDINANCE NO. FXXX
ADOPTION OF 2025 CALIFORNIA FIRE CODE
Ordinance No. FXXX (Attachment B) has been prepared for City Council consideration to adopt the 2025 California Fire Code. As required by Health and Safety Code Section 17958.7, the City Council must adopt findings that local climatic, geological, topographical, or other conditions exist, warranting the adoption of the proposed local amendments to the 2025 California Fire Code.

If approved, Ordinance No. FXXX will repeal the previously adopted 2022 California Fire Code and replace it with the 2025 California Fire Code. The Fire codes proposed for adoption by reference, along with the proposed amendments in Section 1. Chapter 15.01 of Title 15 of the Laguna Beach Municipal Code includes:

CHAPTER 15.01

CALIFORNIA FIRE CODE
Sections:

15.01.010 Adoption of the 2025 California Fire Code including Chapters 1-80 and Appendix Chapter 4, and Appendices B, BB, C, CC, D, H and K with the following amendments.

15.01.020 Amendment to Chapter 1 of the Fire Code.

15.01.025 Amendment to Chapter 2 of the Fire Code

15.01.030 Amendment to Chapter 3 of the Fire Code.

15.01.035 Amendment to Chapter 9 of the Fire Code

15.01.040 Amendment to Chapter 11 of the Fire Code.

15.01.045 Amendment to Chapter 49 of the Fire Code.

15.01.050 Amendment to Chapter 50 of the Fire Code.

15.01.055 Amendment to Chapter 56 of the Fire Code.

15.01.060 Amendment to Chapter 57 of the Fire Code.

15.01.065 Amendment to Chapter 61 of the Fire Code.

15.01.070 Amendment to Chapter 80 of the Fire Code.

15.01.075 Appendix adoption of the 2025 Fire Code.

It should be noted that the replacement of the 2022 Building Standards Codes and Fire Code with the 2025 Codes will not affect the legal status of any lawfully constructed building, any permitted, ongoing construction project, or any project currently in plan check.

Any projects submitted for plan check prior to January 1, 2026, may continue under the provisions of the 2022 Buildings Standard Codes, provided the project continues to move forward toward completion. All lawfully constructed buildings under any previously adopted Code remain legal and conforming for the life of the structure. The 2025 California Fire Code and proposed amendments in Ordinance No. FXXX will 6 of 273
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apply to all new construction projects submitted for plan check 30 days after the second reading and adoption of the Ordinance.

Resolution No. XX (Attachment A) has been prepared to establish and adopt the findings supporting Ordinance No. BXXX and Ordinance No. FXXX. A table included in the Resolution identifies the specific findings supporting each proposed amendment. Many of the amendments address regionally occurring earthquakes, fires, or other local hazards, as well as clarifying local administrative procedures or addressing subjects not covered by the California Building Standards Codes, which are reasonably necessary to safeguard life and property.

Once all the state mandated processes have concluded, first reading, public hearing, second reading and adoption have concluded, staff will file with the California Building Standards Commission per Health and Safety Code section 17958.7(a).

FINANCIAL ANALYSIS
The recommended action has no financial impact on the general fund as copies of the California Buildings Standards and training have been appropriated to the fiscal year 2024/25.

ALIGNMENT WITH CITY COUNCIL GOALS AND PRIORITIES
Adopting the 2025 CA Building and Fire codes is a state mandate, but when proposing any amendments, City staff incorporates City Council's goals and priorities, specifically: Wildfire Prevention and Preparedness, Community Development and Planning, Public Safety, and Housing.

This year, there has been a major focus on incorporating new fire prevention and safety measures, and particularly mitigating risks related to wildland-urban interface (WUI) fires. This includes updated provisions for fire-resistant construction, defensible space around structures, and emergency systems. This will be established through a new stand-alone code, the California Wildland-Urban Interface (CWUI) code, now part 7 of Title 24. Designed to improve clarity and consistency by consolidating requirements into a single comprehensive document.

ENVIRONMENTAL ANALYSIS
The proposed actions are not considered “projects” subject to the California Environmental Quality Act (CEQA) in accordance with Section 21065 of CEQA and State CEQA Guidelines Sections 15060 (c)(2), 15060 (c)(3), and 15378 because the proposed actions will not result in a reasonably foreseeable physical change to the environment. The proposed actions are also exempt from the CEQA pursuant to State CEQA Guidelines Section 15061(b)(3), the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The actions themselves do not authorize development that would directly result in physical change to the environment. 7 of 273
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ATTACHMENTS

1. ORDINANCE NO. BXXX, LAGUNA BEACH BUILDING STANDARDS CODES (Pgs. 9-36)

2. ORDINANCE NO. FXXX, LAGUNA BEACH FIRE CODE (Pgs. 36-60)

3. RESOLUTION NO. XXX, FINDINGS (Pgs. 61-8)
Submitted By: Matt Schneider Approved: .David A Kiff
Matthew Schneider, Director of
Community Development
Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Matthew Schneider, Director of Community
Development
Gabriel Linares, Deputy Director of Community
Development
Patrick Donegan, Assistant City Attorney
Robert Montaghami, Fire Marshal
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Attachment 1
9 ORDINANCE NO. ____
AN ORDINANCE OF THE CITY OF LAGUNA BEACH ADOPTING THE 2025 EDITIONS OF THE CALIFORNIA BUILDING CODE AND OTHER RELATED 2025 CODES BY AMENDING TITLE 14 (BUILDIGS AND CONSTRUCTION), OF THE LAGUNA BEACH MUNICIPAL CODE BY AMENDING CHAPTER 14.50 (BUILDING CODE), CHAPTER 14.52 (RESIDENTIAL CODE), CHAPTER 14.54 (MECHANICAL CODE), CHAPTER 14.64 (PLUMBING CODE), CHAPTER 14.68 (ELECTRICAL CODE), CHAPTER 14.70 (WILDLAND-URBAN INTERFACE CODE), CHAPTER 14.86 (GREEN BUILDING CODE) AND ADDING CHAPTER 14.90 (ENERGY CODE), CHAPTER 14.91 (HISTORICAL BUILDING CODE), CHAPTER 14.92 (EXISTING BUILDING CODE), AND CHAPTER 14.95 (INTERNATIONAL PROPERTY

MAINTENANCE CODE), WITH LOCAL AMENDMENTS AND FINDING THE

ORDINANCE IS NOT A PROJECT SUBJECT TO THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (“CEQA”) OR IN THE ALTERNATIVE IS

EXEMPT FROM CEQA
WHEREAS, State of California Health & Safety Code Section 17958 mandates that the City of Laguna Beach adopt ordinances or regulations imposing the same requirements as are contained in the regulations adopted by the State of California pursuant to Health & Safety Code, Section 17922; and
WHEREAS, the State of California is mandated by Health & Safety Code Section 17922 to impose the same requirements as are contained in the 2025 California Building Standards Codes; and
WHEREAS, pursuant to Health and Safety Code Sections 1922 and 18935, the State of California Building Standards Commission has approved the adoption of new model codes relating to the design and construction for the protection of life and property WHEREAS, Section 17958.7 of the State of California Health & Safety Code states “….the governing body of a city or county, before making any modifications or changes to Section 17958.5, shall make an express finding that such modifications or changes are reasonably necessary because of local climatic, geological, or topographical conditions;” and WHEREAS, the Building Official recommends changes and modifications to the Building Code and other related model codes that are reasonably necessary due to the following local climatic, geological or topographical conditions; and WHEREAS, The City of Laguna Beach is located in an area subject to climatic conditions of high winds and low humidity. This environment is conducive to rapidly spreading fires and control of such fires requires rapid response. Obstacles generated by a strong wind, such as fallen trees, streetlights and utility poles may greatly impact the response time to reach an incident scene; and
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10 WHEREAS, the City of Laguna Beach is located in a seismically active area. The viability of the public water system may be questionable immediately after a major seismic event. This would leave buildings vulnerable to uncontrolled fires due to a lack of available water and an inability to pump sufficient quantities of available water to extinguish a fire. A severe seismic event has the potential to negatively impact any rescue or fire suppression activities because it is likely to create obstacles similar to those indicated under the high wind section indicated above. With the probability of a statewide seismic disaster, the availability of immediate mutual aid resources will be limited; and
WHEREAS, due to topographical conditions of sprawling development separated by narrow and congested streets and the expected infrastructure damage inherent in a seismically active area, it is prudent to rely on automatic fire sprinkler systems to mitigate extended fire department response time and keep fires manageable with reduced fire flow (water) requirements for a given structure. Additional fire protection is also justified to match the current resources, firefighting equipment and personnel within the Laguna Beach Fire Department. Additionally, the City of Laguna Beach has only three access or egress points (North Coast Highway, South Coast Highway, and Laguna Canyon Road). With daily reliance on automatic or mutual aid, any condition that limits an access point exponentially increases response times for outside aid; and WHEREAS, the City of Laguna Beach has several areas with significant growth of wildland vegetation of a highly combustible nature that could threaten structures and the surrounding community. That threat combined with the potential for high winds and low humidity described above warrant additional construction requirements regarding fire resistivity.

THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Recitals. The above recitals are hereby adopted by the City Council and incorporated as set forth in this section.

SECTION 2. Chapter 14.50 of Title 14 of the Municipal Code is hereby amended in its entirety as follows: