STAFF REPORT
Meeting Date:
November 18, 2025
BUSINESS
20 SUBJECT: POLICY CONSIDERATIONS FOR THE CITY’S OUTDOOR DINING AND
PARKLET PROGRAM (EXCLUDING THE PROMENADE ON FOREST)
RECOMMENDATION: It is recommended that the City Council:
1. Provide policy direction to staff on the following matters to guide development of a long-term framework for outdoor dining in Laguna Beach:
a. Whether to extend, replace, or allow expiration of the existing Temporary Use Permit-based Outdoor Dining and Parklet Program, which is scheduled to expire on January 1, 2026; b. Whether to maintain or lift the current moratorium on new parklet applications pending further policy development;
c. Whether to transition toward sidewalk-based outdoor dining consistent with AB 413 and the results of the City’s preliminary design study; and
d. Whether to revise the existing fee structure to ensure equity and cost recovery for both public and private property uses.
2. Direct staff to return at a future meeting with a work plan outlining the steps, resources, and timeline necessary to develop a permanent outdoor dining program, including required Municipal Code and Local Coastal Program amendments and environmental review.
SUMMARY OF THE MATTER
Staff is returning to present the implications of Assembly Bill 592 (AB 592) for the City’s Outdoor Dining and Parklet TUP Program (excluding the Promenade on Forest). The TUP program is scheduled to expire on January 1, 2026, which would have been the last date at which programs like this were allowed statewide.
This discussion follows City Council direction from its June 10, 2025 meeting, when staff was asked to:
• Prepare a design study evaluating potential sidewalk expansion opportunities under Assembly Bill 413 (AB 413); and
• Monitor the outcome of AB 592 to assess its potential impact on local outdoor dining regulations.
With the passage of AB 592 during the Legislature’s 2024-2025 Session (the bill takes effect January 1, 2026), several temporary COVID-era flexibilities related to outdoor dining, alcohol service, and food facility operations have been made permanent, establishing a new regulatory framework for local programs.
POLICY CONSIDERATIONS FOR THE CITY’S OUTDOOR DINING AND PARKLET
PROGRAM (EXCLUDING THE PROMENADE ON FOREST)
November 18, 2025
These changes necessitate Council direction on how Laguna Beach should proceed with its Outdoor Dining and Parklet Program once the current Temporary Use Permit framework expires.
Staff seeks Council and community input this evening to determine whether to:
• Allow the existing temporary program to sunset;
• Extend the current structure for a limited period while a permanent framework is developed; or • Transition directly to a permanent, design- and standards-based outdoor dining program consistent with State law, City design priorities, and community objectives.
The discussion also seeks direction on whether to maintain the moratorium on new parklet applications, whether to explore a phased transition to sidewalk-based dining consistent with AB 413, and whether to modify the fee structure to achieve cost recovery and fairness between users of public and private property.
By clarifying these policy directions, the City Council will define the framework through which staff develops long-term recommendations that balance business support, fiscal responsibility, accessibility, and the protection of public space.
DISCUSSION
Background
The City’s Temporary Use Permit (TUP)-based Outdoor Dining and Parklet Program was established during the COVID-19 public health emergency to support local restaurants affected by indoor dining restrictions. Like many cities across California, Laguna Beach implemented temporary measures that allowed businesses to use adjacent parking spaces and portions of the public right-of-way for outdoor dining. The goal was to preserve business operations, protect jobs, and sustain community activity during a period of economic disruption.
Over time, outdoor dining became one of the most visible and appreciated changes to the City’s commercial areas. Residents and visitors have continued to enjoy the expanded seating, enhanced streetscape vitality, and increased pedestrian activity that the program created. As restrictions lifted, businesses and members of the public expressed a desire to retain some form of outdoor dining as a permanent feature of Laguna Beach’s downtown and neighborhood commercial areas.
Recognizing this community interest, the City Council extended the TUP-based program through January 1, 2026, consistent with State law, to allow time to evaluate design, fiscal, and regulatory considerations before determining whether to formalize or phase out the program.
The program includes:
• 16 participating businesses (excluding the Promenade on Forest); • 8 public parking spaces used for parklets and 41 private parking spaces used for outdoor dining; • A monthly fee of approximately $1,200 for parklets on public property, based on the formula:
(Total Sq. Ft. × $5) + Annual Maintenance Fee ($4,500); • No fees for outdoor dining located on private property or sidewalk areas; and • A citywide limit of 68 (currently 49 spaces) parking spaces available for parklet use (excluding the Promenade).
POLICY CONSIDERATIONS FOR THE CITY’S OUTDOOR DINING AND PARKLET
PROGRAM (EXCLUDING THE PROMENADE ON FOREST)
November 18, 2025
The program was conceived as a temporary measure but has evolved into a discussion about long-term public space management and the balance between economic vitality, pedestrian accessibility, and use of the public right-of-way.
Legislative Context
Two key pieces of State legislation, Assembly Bill 592 (AB 592) and Assembly Bill 413 (AB 413), establish a new regulatory environment for outdoor dining programs.
AB 592 (Enacted October 2025):
This legislation extends or makes permanent several regulatory flexibilities that originated during the pandemic. Key provisions include:
• Alcohol Service Extensions (through January 1, 2029): Continues the Department of Alcoholic Beverage Control’s authority to approve expanded alcohol service areas. • Permanent Parking Flexibility: Removes the sunset on local parking reductions to accommodate outdoor dining.
• Satellite Food Service Authorization: Permits the ongoing use of temporary satellite food service sites without separate State permits.
• Updated Enclosure Standards: Allows open-front restaurant designs (e.g., retractable doors and windows) during business hours if enclosed when closed.
These provisions give cities discretion to continue outdoor dining programs but also require compliance with updated health, building, and accessibility standards. Staff will confirm the scope of municipal authority under AB 592 before any permanent program is proposed.
AB 413 (Effective January 1, 2025):
This law prohibits vehicle parking within 20 feet of the approach side of a crosswalk (whether marked or unmarked), thereby creating new curbside and sidewalk areas. These reclaimed spaces may be used for pedestrian amenities, landscaping, bike or scooter parking, or potential sidewalk dining expansions. The City Council directed staff in June 2025 to evaluate these design opportunities, and preliminary findings will inform any future transition from street-based parklets to sidewalk-based dining zones.
Policy Considerations
Recent State legislation has altered how cities may regulate outdoor dining and the use of public rights-ofway. Because the City’s Temporary Use Permit-based Outdoor Dining and Parklet Program will expire on January 1, 2026, City Council direction is needed to determine the City’s long-term approach.
The following policy questions are intended to guide this discussion by addressing four key areas:
continuation of outdoor dining, the moratorium on new parklet applications, the potential transition toward sidewalk-based dining consistent with AB 413, and revisions to the fee structure. Collectively, Council direction on these matters will define the scope, design, fiscal sustainability, and public value of outdoor dining in Laguna Beach.
POLICY CONSIDERATIONS FOR THE CITY’S OUTDOOR DINING AND PARKLET
PROGRAM (EXCLUDING THE PROMENADE ON FOREST)
November 18, 2025
1. Continuation of Outdoor Dining
Policy Question: Should outdoor dining continue in Laguna Beach outside of the Promenade area, and if so, under what framework?
Option 1: Allow the Temporary Program to Expire (Sunset January 1, 2026) • The program would terminate as scheduled, and businesses would remove outdoor dining installations authorized under TUPs.
• Parking spaces would be restored, returning conditions to the pre-pandemic baseline. • This approach would ensure full use of public parking assets and allow the City to re-evaluate longterm objectives under normal economic conditions.
Option 2: Extend Temporarily While Developing a Permanent Framework • The Council could extend the TUP program for a limited term to maintain business continuity while a permanent outdoor dining framework is prepared.
• A limited extension would avoid program gaps while allowing for additional design, legal, and fiscal analysis.
Option 3: Transition to a Permanent Outdoor Dining Permit Program • The City could establish outdoor dining as a permitted accessory use in commercial zones through a new Outdoor Dining Permit Program.
• Implementation could occur through Administrative Permits for minor installations or Conditional Use Permits (CUPs) for expanded or complex uses.
• Standards could address design, accessibility, noise, public safety, and aesthetics to preserve Laguna Beach’s character.
• Adoption would likely require amendments to the Municipal Code and Local Coastal Program. • The Council should distinguish between emergency-era relief measures and a permanent publicrealm activation policy to ensure the rationale for continuation is deliberate rather than procedural.
2. Moratorium on New Parklet Installations
Policy Question: Should the City maintain its current moratorium on new parklet installations? Option 1: Continue the Moratorium
• Maintain the pause on new applications until the City adopts a comprehensive, legally vetted, and design-based long-term program.
• Existing outdoor dining participants could be eligible for limited TUP renewals during the interim period.
Option 2: Lift the Moratorium with Interim Standards
• Allow new applications to proceed under existing TUP authority but require case-by-case review to ensure compliance with safety, aesthetic, and parking criteria. • Applicants would be advised that approvals remain temporary and subject to modification once a long-term policy is adopted.
POLICY CONSIDERATIONS FOR THE CITY’S OUTDOOR DINING AND PARKLET
PROGRAM (EXCLUDING THE PROMENADE ON FOREST)
November 18, 2025
3. Transition to Sidewalk-Based Dining
Policy Question: Should the City phase out parklets in favor of sidewalk-based outdoor dining consistent with AB 413?
Assembly Bill 413 (AB 413), effective January 1, 2025, prohibits vehicle parking within 20 feet of the approach side of a crosswalk (whether marked or unmarked), creating opportunities to expand sidewalk areas for pedestrians and potential outdoor dining.
While this legislation provides flexibility, transitioning public right-of-way to private dining use also raises equity and access considerations. Expanded sidewalk zones could support both commercial and noncommercial uses, such as seating, landscaping, or public art, and should balance business interests with pedestrian mobility and ADA accessibility.
Based on Council direction, staff could incorporate sidewalk-based outdoor dining concepts into a phased Downtown design plan over a 1–3 year period, integrated with future capital improvement priorities.
4. Fee Structure Considerations
Policy Question: Should the City modify its fee structure for outdoor dining on public and private property? Option 1: Maintain Existing Fee Structure
• Continue charging only for use of public property, using the existing formula:
Fee = (Deck Size × $5 per sq. ft. × 12 months) + $4,500 annual maintenance. • This maintains cost recovery for City maintenance and lost parking revenue while keeping privateproperty uses subject only to zoning and parking requirements.
Option 2: Evaluate Fee Adjustments and Private Property Impacts • Consider revising the public-right-of-way fee to better reflect current market conditions, maintenance costs, and equity between businesses.
• For outdoor dining areas located on private parking lots, the City could explore whether a regulatory fee or CUP condition is warranted if the use effectively removes required parking. • Any private-property fee must demonstrate a clear nexus to the public cost or regulatory impact it offsets. Staff would analyze feasibility, legal authority, and administrative costs before returning to Council with recommendations.
California Coastal Commission
The California Coastal Commission (CCC) requires that local jurisdictions maintain adequate coastal access, including visitor-serving parking. Although recent State legislation (Assembly Bill 592) provides permanent parking flexibility to support outdoor dining, those provisions do not supersede the City’s LCP.
As a result, before any permanent outdoor dining program can be adopted, the City must evaluate whether the State’s parking relief provisions are compatible with the parking policies and requirements contained in the LCP.
POLICY CONSIDERATIONS FOR THE CITY’S OUTDOOR DINING AND PARKLET
PROGRAM (EXCLUDING THE PROMENADE ON FOREST)
November 18, 2025
If adjustments are necessary to reconcile State law with local coastal requirements, an LCP amendment will be required. That process includes preparation of supporting materials, public hearings before both the City Council and the Coastal Commission, and formal certification. Staff estimates that a full LCP amendment process could take up to one year from initiation to certification, depending on Coastal Commission scheduling and workload.
Accordingly, any long-term outdoor dining framework will need to be coordinated with LCP compliance efforts to ensure consistency between City policy, State law, and the City’s obligations under the California Coastal Act. Further, in our informal communications with Coastal staff, Coastal staff expressed an interest in learning how we would implement AB 413, especially in regards to how it reduces parking spaces.
Coastal staff was interested in seeing increased bike or scooter parking, for example, in the AB 413 spaces.
FINANCIAL ANALYSIS
The recommended action has no financial impact at this stage. Based on the policy direction provided by the City Council, future individual recommendations may result in financial impacts, which would be identified and addressed in subsequent staff reports.
ENVIRONMENTAL ANALYSIS
There is no environmental impact associated with the recommended action in this report. Based on the policy direction provided by the City Council, future environmental analysis may be required.
ATTACHMENTS
1. Summary of Previous City Council and State Legislation Actions
2. Summary of Businesses Participating in Outdoor Dining and Parklet Program
3. Crosswalk Daylight and Permanent Parklet Study
Submitted By:
.
Approved: .David A Kiff
Jeremy Frimond, Assistant City
Manager
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Jeremy Frimond, Assistant City Manager Louie Lacasella, Senior Management Analyst