STAFF REPORT
Meeting Date:
November 18, 2025
CONSENT
16 SUBJECT: EXTENSION OF ENFORCEMENT DATE FOR SHORT-TERM LODGING ORDINANCE NO. 1719 AND UPDATE ON SHORT-TERM LODGING
ENFORCEMENT EFFORTS
RECOMMENDATION: It is recommended that the City Council:
1. Approve an extension of the enforcement date for Ordinance No. 1719 from October 1, 2025, to January 1, 2026, to allow additional time for continued outreach and compliance by operators and online hosting platforms;
2. Direct staff to return with an update to Ordinance No. 1719 to implement SB 346, which creates further mechanisms for tracking and enforcement of short-term lodging; and
3. Find that the recommended action is not subject to the California Environmental Quality Act pursuant to CEQA Guidelines Section 15378.
SUMMARY OF THE MATTER
This report recommends that the City Council extend the enforcement date for Ordinance No. 1719, which established a licensing framework for short-term lodging operations in Laguna Beach, from October 1, 2025 to January 1, 2026. The extension would provide additional time for operators and online platforms to comply with the City’s newly adopted requirements, including licensing, nuisance response plans, and collection of marketing district assessments.
The action is administrative in nature, with no associated fiscal impact. It aligns with the City’s goals to enhance regulatory compliance and public education, and it is not subject to CEQA under Section 15378, as it does not constitute a “project.
DISCUSSION
On June 24, 2025, the City Council adopted Ordinance No. 1719, which established a comprehensive licensing framework for short-term lodging (STL) operations through the addition of Chapter 5.84 to the Laguna Beach Municipal Code. While the Ordinance became effective 30 days following its adoption, on July 24, 2025, the City Council had directed staff at the time of the first reading of the Ordinance to defer enforcement until October 1, 2025, to allow time for public outreach, staff training, and coordination with online hosting platforms.
Since that time, staff have received requests from short-term rental operators and industry platforms requesting additional time to fully implement the new requirements, including making changes to the system to accommodate the new short-term license certificate, nuisance response plans, and collection of LBTMD assessment compliance.
In response to these requests and recognizing that all parties have demonstrated a good-faith effort toward implementation, staff has not yet commenced enforcement under Ordinance No. 1719 and recommend
EXTENSION OF ENFORCEMENT DATE FOR SHORT-TERM LODGING ORDINACE November 18, 2025
extending the enforcement date by 90 days, to January 1, 2026. This additional time will enable operators and hosting platforms to complete necessary system updates, finalize any required documentation, and make any remaining adjustments to achieve compliance.
As a related update to the City’s short-term lodging enforcement efforts, earlier this fall, the Governor signed into law SB 346, entitled the “Short-Term Rental Facilitator Act of 2025.” This law supplements the City’s enforcement efforts under Ordinance No. 1781 by granting local agencies the power to require shortterm rental facilitators (i.e., the online platforms that connect hosts and guests) to report the physical address (and other necessary identifiers, such as parcel numbers) of each short-term rental listing within the City, during a defined reporting period. Under SB 346, local jurisdictions may impose fines or penalties if the short-term rental facilitator fails to report the addresses or other physical identifiers during each reporting period. This information will assist staff in better monitoring and enforcing compliance with its Short-Term Lodging permitting and licensing requirements, and in tracking and collecting TOT and LBTMD assessments. It is recommended that the City Council direct staff to update the Short-Term Lodging Ordinance, as described above and allowed by SB 346, and return for its introduction at a future meeting.
FINANCIAL ANALYSIS
There is no fiscal impact associated with this action. The proposed extension does not require additional appropriations and is not expected to reduce projected revenue from licensing fees or assessments, as compliance is still required by year-end.
ENVIRONMENTAL ANALYSIS
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15378 because it does not qualify as a ‘project.’ Section 15378(a) defines a project as an activity that may cause a direct or reasonably foreseeable indirect physical change in the environment.
Further, pursuant to Section 15378(b)(2), a project expressly does not include "continuing administrative or maintenance activities, such as... general policy and procedure making.” Accordingly, the proposed action, which involves the extension of an enforcement date for administrative short-term lodging requirements, does not authorize any physical change to the environment, and is accordingly not a project under CEQA.
ATTACHMENTS
1. Ordinance No. 1781
Submitted By: Approved: .David A Kiff
Gavin Curran, Assistant City
Manager
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Gavin Curran, Assistant City Manager Megan Garibaldi, City Attorney