-1- Reso. #
RESOLUTION NO. 25.XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA
BEACH, CALIFORNIA, APPROVING PURSUANT TO AN EXEMPTION
FROM CEQA UNDER CEQA GUIDELINES SECTION 15331, A
HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN THE
CITY AND THE OWNER OF THE HISTORIC PROPERTY AT 426 HOLLY
STREET, AND AUTHORIZING THE CITY MANAGER TO EXECUTE
THE AGREEMENT ON BEHALF OF THE CITY
WHEREAS, an application was filed by the owner of the property located at 426 Holly Street requesting approval of a Historic Property Preservation Agreement (also known as a Mills Act Contract) in accordance with Resolution 25.XXX; and WHEREAS, 426 Holly Street is listed on the City’s Historic Register as a historic property on the basis of it being a key example of a Minimal Traditional Cottage; and WHEREAS, the City of Laguna Beach has determined that preservation of the City’s historic resources in general, and 426 Holly Street in particular, is important to the City and contributes to the welfare of current and future generations; and WHEREAS, the Historic Resources Element of the City of Laguna Beach General Plan and the City’s Historic Preservation Ordinance (Laguna Beach Municipal Code Chapter 25.45) recognize the importance of historic preservation and provide incentives for the protection and preservation for continued use, including Historic Preservation Agreements; and WHEREAS, the execution of a Historic Preservation Agreement is exempt from CEQA pursuant to CEQA Guidelines section 15331, as it concerns the maintenance, repair, stabilization, rehabilitation, restoration, preservation, conservation, or reconstruction of historical resources in a manner consistent with the Secretary of the Interior’s Standards for the Treatment of Historic Properties; and
Attachment 1 6
-2- Reso. #
WHEREAS, on August 18, 2025, the Heritage Committee voted to recommend that the City Council approve the requested Historic Property Preservation Agreement for 426 Holly Street;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH does RESOLVE and ORDER as follows:
SECTION 1. The recitals set forth above are true and correct and are incorporated into this Resolution by this reference.
SECTION 2. 426 Holly Street is a “qualified historical property” and is eligible for favorable valuation by the County Assessor of the County of Orange as an enforceable restricted historical property under the provisions of California Government Code Section 50280 et seq. and California Revenue and Taxation Code Section 439.1 et seq.
SECTION 3. The City Council hereby authorizes the City Manager to execute an Historic Property Preservation Agreement between the City of Laguna Beach and the owner of 426 Holly Street, attached hereto as Exhibit 1 and incorporated herein by this reference.
SECTION 4. Based on its review of the entire record before it, the City Council hereby finds and determines that the Project is categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15331 – Historical Resource Restoration/Rehabilitation, in that Section 15331 exempts maintenance, repair, stabilization, rehabilitation, restoration, preservation, conservation, or reconstruction of historical resources.
These activities must be consistent with the Secretary of the Interior's Standards for the Treatment of Historic Properties. Accordingly, the approval of the attached Resolutions and execution of the Mills Act Contracts is exempt from CEQA pursuant to CEQA Guidelines section 15331 as each the Mills Act Contract requires that the owners "shall preserve, maintain, Attachment 1 7
-3- Reso. #
and, where necessary, restore or rehabilitate the [property] and its character-defining features, notably the general architectural form, style, materials, design, scale, proportions, organization of windows, doors and other openings, textures, details, mass, roof line, porch and other aspects of the appearance of the exterior to the satisfaction of the City", and further requires that all changes to the properties "conform to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, the United States Secretary of the Interior Standards and Guidelines for Historic Preservation Projects, including without limitation rehabilitation, and the State Historical Building Code." ADOPTED this 18
th of November, 2025.
Alex Rounaghi, Mayor
ATTEST:
Ann Marie McKay, City Clerk
I, Ann Marie McKay, City Clerk of the City of Laguna Beach, California, do hereby certify that the foregoing Resolution No. 25.XXX was duly adopted at a Regular Meeting of the City Council of said City held on November 18, 2025 by the following vote:
AYES: COUNCILMEMBER(S):
NOES: COUNCILMEMBER(S):
ABSENT: COUNCILMEMBER(S):
RECUSED: COUNCILMEMBER(S):
City Clerk of the City of Laguna Beach, CA
Attachment 1 8
55852.00004\42757030.1
1 RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Laguna Beach
Attn: City Clerk
505 Forest Avenue
Laguna Beach, CA 92651
Municipality, exempt from SB2 fees pursuant to GC 27388.1(a)(2)(D)
HISTORIC PROPERTY PRESERVATION AGREEMENT
(MILLS ACT CONTRACT)
AN AGREEMENT BETWEEN THE CITY OF LAGUNA BEACH, COUNTY OF ORANGE,
STATE OF CALIFORNIA, AND SINDI RAE SCHWARTZ, TRUSTEE OF THE R&S SCHWARTZ FAMILY TRUST, OWNER OF A DESIGNATED HISTORIC PROPERTY AT 426 HOLLY STREET, LAGUNA BEACH, CALIFORNIA (“Agreement")
WHEREAS, the City Council of the City of Laguna Beach is authorized by California Government Code Section 50280 et seq. (commonly known and referred to as "the Mills Act") to enter into contracts with the owners of qualified historical properties to provide for appropriate use, maintenance and rehabilitation such that the properties retain their historic characteristics; WHEREAS, Sindi Rae Schwartz, Trustee of the R&S Schwartz Family Trust ("Owners") possesses fee title in and to that certain qualified real property, together with associated structures and improvements thereon, located at 426 Holly Street and designated by the County Assessor of the County of Orange as Assessor’s Parcel No. 496-155-20 (the "Historic Register Property"); and WHEREAS, on July 29, 2025, the Historic Register Property was officially designated on the Historic Register of the City of Laguna Beach pursuant to the requirements of Chapter 25.45 (Historic Preservation) of the Laguna Beach Municipal Code; and
WHEREAS, the City and Owner, for their mutual benefit, now desire to enter into this Agreement to limit the use of the Historic Register Property to prevent inappropriate alterations and ensure that character-defining features are preserved and maintained in an exemplary manner, and to carry out the purposes of "the Mills Act", and to qualify for an assessment of valuation pursuant to Section 439 et seq. of the California Revenue and Taxation Code NOW THEREFORE, the City of Laguna Beach (the "City") Owner agree as follows:
Section 1. Effective Date and Initial Term of Agreement. This Agreement shall be effective and commence on November 18, 2025 (the "Effective Date"), and shall remain in effect for Attachment 1 9
55852.00004\42757030.1
2 an initial term of ten (10) years thereafter.
Section 2. Renewal.
A. Each year on the anniversary of the Effective Date of this agreement, one (1) year shall automatically be added to the initial term of the Agreement unless written notice of nonrenewal is served as provided herein.
B. If Owner or the City desires in any year not to renew the term of the Agreement, Owners or the City shall serve written notice of non-renewal of the Agreement on the other party. Unless such notice is served by Owner to the City at least ninety (90) days prior to the annual renewal date, or served by the City to Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the Agreement as provided herein.
C. Owners may make a written protest of notice of non-renewal served by the City. The City may at any time prior to the annual renewal date of the Agreement, withdraw its notice to Owner of non-renewal.
D. If either the City or Owner serves notice to the other of non-renewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from the Effective Date or from the last renewal of the Agreement, whichever may apply.
Section 3. Standards and Conditions. During the term of this Agreement, the Historic Register Property shall be subject to the following conditions:
A. Owner shall preserve, maintain, and, where necessary, restore or rehabilitate the Historic Register Property and its character-defining features, notably the general architectural form, style, materials, design, scale, proportions, organization of windows, doors and other openings, textures, details, mass, roof line, porch and other aspects of the appearance of the exterior to the satisfaction of the City.
B. All proposed changes to the Historic Register Property shall comply with applicable City regulations and guidelines and the specific requirements for structural rehabilitation and maintenance attached to this Agreement as Exhibit A, and shall conform to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, the United States Secretary of the Interior Standards and Guidelines for Historic Preservation Projects, including without limitation rehabilitation, and the State Historical Building Code, and shall be subject to the approval of the City’s Community Development Director.
C. Owner shall notify the City of changes to character-defining exterior features of the Historic Register Property prior to their execution, such as but not limited to major landscaping projects, exterior door replacement or exterior alterations, regardless of whether a building permit is required.
Attachment 1 10
55852.00004\42757030.1
3 D. The following are prohibited: Demolition of the house or garage on the Historic Register Property; exterior alterations or additions not in keeping with the standards listed above; dilapidated, deteriorating or unrepaired structures, such as but not limited to fences, roofs, doors, walls and windows; storage of scrap lumber, junk, trash, debris, discarded or unused objects, such as but not limited to cars, appliances or furniture; stagnant water and unfilled excavations; any other device, decoration or structure that is unsightly by reason of its height, condition or inappropriate location.
E. Owner shall allow inspection of the interior and exterior of the Historic Register Property by representatives of the County Assessor and the City prior to the Effective Date and every five (5) years thereafter to determine Owner's compliance with the terms and provisions of this Agreement.
Section 4. Furnishing of Information. Owner hereby agrees to furnish the City with any and all information requested by the City that may be necessary or advisable to determine compliance with the terms and provisions of this Agreement.
Section 5. Cancellation.
A. The City, following a duly noticed public hearing by the City Council in accordance with Government Code Section 50285, may cancel this Agreement if it determines that Owner has breached any of the terms or conditions of this Agreement, including but not limited to the provisions of Section 3 hereof, or has allowed the Historic Register Property to deteriorate to the point that it no longer meets the standards for a qualified historic property. If this Agreement is canceled because of Owner's failure to preserve, maintain, and rehabilitate the Historic Register Property as specified by this Agreement, Owner shall pay a cancellation fee to the County Auditor as set forth in and in the amount required by Government Code Section 50286. No penalty shall be imposed if deterioration of the Historic Register Property is due to fire, disaster, or other factor beyond Owner's control.
B. If the Historic Register Property is acquired by eminent domain and the City Council determines that the acquisition frustrates the purpose of this Agreement, the Agreement shall be canceled and no fee imposed, as specified in Government Code Section 50288.
Section 6. Enforcement of Agreement.
A. In lieu of and/or in addition to any provisions to cancel the Agreement as referenced herein, the City may specifically enforce, or enjoin the breach of, the terms and conditions of the Agreement. In the event of a default, or in the event the City has grounds to cancel this Agreement under Section 5.A. above, the City shall give written notice to Owner by registered or certified mail addressed to the address set forth in Section 8 below; and if such default or breach is not corrected to the reasonable satisfaction of the City within thirty (30) days thereafter, or if not corrected within such a reasonable time as may be required to cure the breach or default (provided that acts to cure the breach or default are commenced within thirty (30) days and shall thereafter be diligently pursued to completion by the owners), then the Attachment 1 11
55852.00004\42757030.1
4 City may, without further notice, declare a default under the terms of this Agreement and may either (i) pursue cancellation of the Agreement under Section 5.A. above (after a duly noticed public hearing of the City Council) or (ii) bring any action necessary to specifically enforce Owner's obligations required under the terms and conditions of this Agreement, apply to any appropriate court for injunctive relief against any violation by Owner or apply for such other relief as may be appropriate.
B. The City does not waive any claim of default by Owner if the City does not enforce or cancel this Agreement. All other remedies at law or in equity that are not otherwise provided for in this Agreement or in the City's regulations governing historic register properties are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by the City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder.
Section 7. Binding Effect of Agreement. Owner hereby agrees to and subjects the Historic Register Property to all of the covenants, reservations and restrictions set forth in this Agreement. The City and Owner hereby declare their specific intent that the covenants, reservations and restrictions set forth in this Agreement shall be deemed covenants running with the land and shall pass to and be binding upon Owner's heirs, successors and assigns in title or interest to the Historic Register Property. Every contract, deed or other instrument hereafter executed, delivered and accepted shall be subject to the covenants, reservations and restrictions set forth in this Agreement regardless of whether such covenants, restrictions and reservations are recited or referred to in such contract, deed or other instrument.
Section 8. Notice. Any notice required by the terms of this Agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto.
To City: City of Laguna Beach
Attn: Community Development Director
505 Forest Avenue
Laguna Beach, CA 92651
To Owners: ______________________
______________________
Section 9. General Provisions.
A. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns, nor shall such terms, provisions, or conditions cause them to be considered joint ventures or members of any joint enterprise.
B. Owner agrees to defend, indemnify and hold harmless the City and its elected and appointed officials, officers, agents and employees from liability for damage or claims for damage for Attachment 1 12
55852.00004\42757030.1
5 personal injuries, including without limitation death, and claims for property damage that may arise from the direct or indirect use or operations of Owner or those of Owner's contractor, subcontractor, agent, employee or other person acting on Owner's behalf, or that otherwise relates to the use, operation and maintenance of the Historic Register Property. .
C. The foregoing defense, indemnity and hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered by reason of the use, operations and activities referred to in this Agreement regardless of whether or not the City prepared, supplied or approved the plans, specifications, permits or other documents for the Historic Register Property.
D. All of the agreements, rights, covenants, reservations, and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns and all persons acquiring any part or portion of the Historic Register Property, whether by operation of law or in any manner whatsoever.
E. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations or restrictions contained in this Agreement, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorneys' fees to be fixed by the court, in addition to costs, litigation expenses and other relief ordered by the court.
F. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby.
G. This Agreement shall be construed and governed in accordance with the laws of the State of California.
Section 10. Recordation. No later than twenty (20) days after the parties execute and enter into this agreement, the City shall cause this agreement to be recorded in the Office of the County Recorder of the County of Orange.
Section 11. Signatures. The City and Owners shall sign this Agreement, which shall be notarized.
Attachment 1 13
55852.00004\42757030.1
6 IN WITNESS WHEREOF, the City and Owner have executed this agreement on the day and year written below.
CITY OF LAGUNA BEACH
Date: ____________________ By: __________________________ City Manager
_________________________
Date: ____________________ By:___________________________ Trustee/ or Owner
Attachment 1 14
55852.00004\42757030.1
7 State of California}
County of Orange} ss.
On this ____ day of _____________, 20__, before me, __________________________________, a Notary Public, personally appeared ________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
________________________________
State of California}
County of Orange} ss.
On this ____ day of _____________, 20__, before me, __________________________________, a Notary Public, personally appeared ________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
Attachment 1 15
Mills Act Application Report – 426 Holly Street, Laguna Beach 29
5. PROPOSED REHABILITATION/MAINTENANCE PLAN AND TIMELINE (WORK PLAN) (Cost Estimates Provided by the Applicant)
Contract Year Building Feature Proposed Work/Task Est. Cost
1. 2026 Foundation Engage a qualified structural engineer experienced in working with historic properties to inspect the foundation and make recommendations for any work, including seismic retrofit, with an implementation plan. Submit report to the City for review and execute any recommended work in a sensitive manner to avoid causing damage to historic fabric or visually impacting the historic character of the property. $20,000
2. 2026 Chimney Engage the services of a chimney specialist or structural engineer with experience in historic preservation to investigate the existing condition of chimney and prepare an implementation plan for any recommended work to ensure chimney is structurally sound and weathertight. Commence and complete any necessary work as recommended.
$6,500
3. 2026-2036
(annually)
Total Building Treat property for pests such as rodents and termites. $10,300 *
4. 2026-2036
(annually)
Roof Property owner to inspect roof and clean of debris. Make any necessary repairs in a timely and sensitive manner.
$18,000*
5. 2026-2036
(annually)
Gutters/Downspouts Property owner to inspect gutters and downspouts for damage or deterioration and clean out debris at least once per year, or more often as needed. Make any necessary repairs in a timely manner to prevent water damage to building.
$4,400*
6. 2026-2036
(annually)
Wood Siding,
Windows, Doors,
and Trim
Property owner to inspect all exterior wood features for chalking, blistering, peeling, or cracking paint.
Where necessary, gently scrape failing paint, inspect wood, and make any necessary repairs in a sensitive manner. Replace in kind individual wood units only if severely damaged or deteriorated beyond repair.
Carefully repaint in the same, or similar, historically appropriate color. $30,000*
7. 2026-2036 Columns at Covered
Walkway
If the two columns in the breezeway need repair or replacement in the future, the property owner should consider replacing with the original slender posts per documentary evidence $1,000
8. 2026-2036
(annually)
Windows and Doors Property owner to inspect wood windows and doors for proper operation and seal and make any necessary repairs to ensure they remain weathertight. If the property owner chooses to replace the front door in the future, the property owner should consider restoring with an original style paneled wood door. (Pending)
9. 2026-2036
(annually)
Landscaping Property owner to inspect landscaping and trim plants/trees away from the building exterior. $ 5,000* Exhibit A
Attachment 1 16
Mills Act Application Report – 426 Holly Street, Laguna Beach 30 Contract Year Building Feature Proposed Work/Task Est. Cost
10. 2025-2035
(annually)
Mechanical Complete repairs to HVAC as needed to prevent risk of potential water damage to historic fabric. Replace existing HVAC if it exceeds its useful life. Commence and complete work in a sensitive manner to avoid damage to historic fabric.
$15,000*
11. 2028-2036
(triennially)
Fences and Gates Inspect wood fences and gates for damage and/or peeling paint and repair/repaint as needed. $6,800*
12. 2028-2036
(triennially)
Brick Hardscaping Property owner inspect for loose or damaged bricks. Repoint as needed using mortar to match the existing in terms of color, composition, and texture.
$3,500*
13. 2030-2036
(centennially)
Stucco Property owner to inspect stucco for damage and make related repairs as needed. Prep, patch, and repaint stucco in the same, or similar, historically appropriate color and texture. $12,000*
14. 2036 Exterior Paint Repaint exteriors of residence and ADU. $26,000
15. 2036 Vinyl Windows Replace all vinyl windows (ADU; three total) with new windows that are compatible with the historic character of the property in terms of style and materials (i.e. wood clad). $15,000
TOTAL: $173,500
*Estimate total of reoccurring costs over 10-year contract.
Attachment 1 17