STAFF REPORT
Meeting Date:
January 27, 2026
CONSENT
9 SUBJECT: CONTRACT ADDENDUM FOR THE FACILITIES MASTER PLAN, GRIFFIN
STRUCTURE EXPANSION RELATED TO WATER DISTRICT SITE AND
PARKING ANALYSIS
RECOMMENDATION: It is recommended that the City Council:
1. Approve a contract addendum to the Professional Services Agreement with Griffin Structures, Inc., that does the following: (i) directs Griffin to study the Laguna Beach Water District Property; (ii) approves compensation in an amount not to exceed $20,000 for the additional work; and (iii) set the term for this additional work through July 31, 2026;
2. Appropriate $20,000 from the Capital Improvement Fund available fund balance to the Facilities Master Plan account to fund the contract addendum;
3. Authorize the City Manager to execute the contract addendum with Griffin Structures, Inc., subject to City Attorney review to form; and
4. Determine that the recommended action is exempt from the California Environmental Quality Act pursuant to CEQA guidelines Section 15061(b)(3), the "Common Sense" Exemption.
SUMMARY OF THE MATTER
This report recommends that the City Council approve a contract addendum with Griffin Structures, Inc. (“Griffin”) in the amount of $20,000 to support additional analysis of the potential reuse of the Laguna Beach County Water District property (Attachment 1). The proposed work includes developing test-fit scenarios and preparing rough order-of-magnitude cost estimates, consistent with City Council direction.
The action is recommended to be funded from the Capital Improvement Fund available fund balance, and is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3).
DISCUSSION
At its October 28, 2025, Facilities Master Plan (“FMP”) study session, the City Council directed staff to explore a long-term concept involving the potential relocation of the Laguna Beach County Water District’s corporate functions to the District’s El Morro property (Attachment 2). This would allow the City to evaluate the adaptive reuse of the District’s existing headquarters to accommodate civic functions, including the co-location of public safety services such as Police and Fire Services. This concept was identified as a potential strategy to reduce long-term construction costs associated with City Hall improvements and to enhance interdepartmental coordination.
The City and Griffin are parties to the certain Professional Services Agreement to develop a FMP for the City. To advance that concept, Griffin has submitted a proposal to expand its current FMP contract scope (Attachment 1, Exhibit A). The proposed work includes:
CONTRACT ADDENDUM FOR THE FACILITIES MASTER PLAN, GRIFFIN STRUCTURE
EXPANSION RELATED TO WATER DISTRICT SITE AND PARKING ANALYSIS January 13, 2026
• A site visit and evaluation of existing Water District building conditions; • Development of two test-fit reuse scenarios for City Hall and Police Department functions; • Evaluation of the feasibility of incorporating a housing component at the site; and • Preparation of conceptual cost estimates for each scenario.
This Addendum supports the continued implementation of the FMP and will provide the City Council with information to guide future decisions regarding City Hall facility needs and potential site utilization. Griffin is expected to present preliminary findings to staff and the City Council within approximately 90 days for review and feedback
FINANCIAL ANALYSIS
The proposed contract addendum includes an additional $20,000 in compensation. To proceed with the review, staff recommends that the City Council appropriate $20,000 in account number 6163130C-81000- C2517 from the Capital Improvement Fund available fund balance. The current fund balance available for appropriations in the City’s Capital Improvement Fund is approximately $1.8 million.
ALIGNMENT WITH CITY COUNCIL GOALS AND PRIORITIES
This action supports the City Council Strategic Priorities by advancing infrastructure and facility planning through the implementation of the Facilities Master Plan and by promoting efficient government operations through the exploration of co-location strategies and long-term civic space planning.
ENVIRONMENTAL ANALYSIS
The recommended action is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3), the “Common Sense” Exemption. It can be seen with certainty that there is no possibility the approval of this conceptual planning scope may have a significant effect on the environment. The action involves only professional services related to planning and analysis, with no physical changes to the environment. Future development, if pursued, would be subject to separate CEQA review.
ATTACHMENTS
1. Addendum (Pgs. 3-7)
2. Minutes October 28, 2025, City Council Study Session (Pgs. 8-9) 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