STAFF REPORT
Meeting Date:
February 24, 2026
BUSINESS
12 SUBJECT: ESTABLISHMENT OF A CITY PARKING LOT RENTAL PROGRAM; AND UPDATE ON LAGUNA COLLEGE OF ART AND DESIGN’S APPLICATION TO
RENT CERTAIN PARKING LOTS AND SPACES AT CERTAIN TIMES ON A TEMPORARY BASIS DURING CONSTRUCTION OF LCAD’S INNOVATION CENTER
RECOMMENDATION: It is recommended that the City Council:
1. Adoption the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, ESTABLISHING THE CITY PARKING LOT RENTAL PROGRAM; AND FINDING THE ACTION CATEGORICALLY EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO STATE CEQA GUIDELINES SECTION 15304”;
2. Receive a presentation from City staff on Laguna College of Art and Design’s request to rent certain City parking lots in 2026 at certain times during construction of LCAD’s innovation center at LCAD’s Big Bend portion of its campus and request to pay $5,000 for the use of such temporary parking in 2026; and
3. Find the actions are exempt from the California Environmental Quality Act under State CEQA Guidelines Section 15304 (Minor Alterations to Land, Class 4)
DISCUSSION
The City of Laguna Beach (“City”) operates various parking lots open to the public throughout the City.
The City currently has a program whereby it rents out certain parking lots on an ad hoc basis to various parties and community groups attending establishments within the City. In response to a request from the Laguna College of Art and Design (“LCAD”) to rent certain parking lots during the construction of LCAD’s innovation center at LCAD’s Big Bend portion of its campus, City staff has taken the opportunity to formalize the City’s program through preparation of a City Council Resolution (Attachment 1), which establishes a city-wide program for renting out parking lots and spaces on a temporary basis, known as the City Parking Lot Rental Program, and the rules and regulations for such program. For temporary parking permits issued on a non-exclusive basis, the applicant and those authorized under the permit can display a City-issued or other City-recognized placard that can be displayed on the vehicle’s dashboard or rear-view mirror. For temporary parking permits issued on an exclusive basis, City-issued signs and rope can be displayed at the entrances of the at issue parking lot. As part of the program, the applicant will be required to enter into an agreement, in a form approved by the City Attorney, with the City that sets forth the applicant’s obligations to indemnify and hold harmless the City from any claim or damage asserted by a third party relating to the City Parking Lot Rental Program or temporary parking permit, and to maintain adequate forms and limits of insurance, at the determination of the Risk Manager in consultation with the City Attorney. It should be noted that a coastal development permit for updated parking rates is currently under consideration by the City and may be reviewed by the California Coastal Commission. The City will apply the effective parking rates at the time an application is submitted and at the time the decision is rendered.
ESTABLISHMENT OF A CITY PARKING LOT RENTAL PROGRAM; AND UPDATE ON LAGUNA COLLEGE OF ART AND DESIGN’S APPLICATION TO RENT CERTAIN PARKING
LOTS AND SPACES AT CERTAIN TIMES ON A TEMPORARY BASIS DURING CONSTRUCTION OF LCAD’S INNOVATION CENTER
February 24, 2026
City staff intends to assist LCAD through the application process whereby LCAD seeks the exclusive use of up to 35 weekday and Saturday spaces in Lot 16 (Act V), the non-exclusive use on weekdays of all of the 65 spaces in Lot 10, and the non-exclusive use on weekdays of the on-street parking (about 25 spaces) next to Lot 10 on Laguna Canyon Rd. (Attachment 2.) Logistics and marshalling operations near the Innovation Center will significantly reduce parking for faculty and students and necessitate coordination of parking for students and faculty. Students and faculty would be transported to LCAD via an LCAD-funded parking shuttle. This temporary parking would be for weekdays only during the period of February 27 through May 31, 2026 as well as from August 15 to December 20, 2026. This temporary parking would also cover Saturdays during the same dates, but with a smaller amount of students and faculty. During these Saturdays, LCAD would use the Act V lot exclusively versus the on-street parking along Laguna Canyon Road or the Lot 10 parking spaces. However, a previously permitted event on Friday, May 8 would preclude LCAD’s use of Lot 10 on May 8, 2026. In the event that the Innovation Center construction lasts into 2027, City staff envisions that it is possible to extend the temporary parking permit through Spring 2027, provided that the use has not been problematic for the public, arts festivals, or for the City during 2026 (and is not already reserved by another person, organization, or event).
To further these discussions with LCAD, the City Manager and the Community Services and Transit Director attempted to quantify the parking revenue received in 2025 for Lot 10 and for the LCR on-street parking spaces. (There was no paid parking at Act V during these offseason months, at least during weekdays.) The amount in question for Lot 10 and for the LCR on-street parking spaces is about $5,000 per year. Here, LCAD is requesting that the City charge $5,000 annually for the use of this temporary parking. While, in most cases, the City charges “full freight” for parking regardless for whether the lot would have been in use outside of the permitting process (i.e., City would ordinarily charge for use of Act V for offseason time), a reasonable alternative here is to charge an amount estimated to be the same revenue received from Lot 10 and LCR spaces in 2025. City staff proposes to implement any new rates that are legally established through the coastal development permit process starting in FY 2026/27. This item comes before the Council to allow the Council and community to fully understand the program and LCAD’s approach in seeking temporary parking permits during construction.
FINANCIAL ANALYSIS
We estimate that LCAD’s use of these lots and spaces will not have any direct effect on City parking funds, as LCAD is obligated to pay the same amount that Lot 10 and the adjacent parking spaces likely generated in 2025.
ENVIRONMENTAL ANALYSIS
ESTABLISHMENT OF A CITY PARKING LOT RENTAL PROGRAM; AND UPDATE ON LAGUNA COLLEGE OF ART AND DESIGN’S APPLICATION TO RENT CERTAIN PARKING
LOTS AND SPACES AT CERTAIN TIMES ON A TEMPORARY BASIS DURING CONSTRUCTION OF LCAD’S INNOVATION CENTER
February 24, 2026
This action is exempt from the requirements of the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Section 15304 (Minor Alterations to Land, Class 4) which exempts minor public or private alterations in the condition of land, water, and/or vegetation which do not involve removal of healthy, mature, scenic trees except for forestry and agricultural purposes. Examples include but are not limited to minor temporary use of land having negligible or no permanent effects on the environment, including carnivals, sales of Christmas trees, etc. (14 CCR Section 15304(e).) Here, this action will allow people to prepurchase temporary parking placards to use certain City lots at the same time as members of the public and also will also make more parking available by renting out parking lots and spaces when those lots and spaces are not generally open to the public use. This action does not authorize permanent infrastructure and merely creates an administrative system to allow persons to coordinate use of the City’s parking lots and spaces. Therefore, this action falls within the minor alterations to land exemption. None of the exceptions to the use of the categorical exemptions identified in State CEQA Guidelines section 15300.2 apply. The Project will not result in a cumulative impact from successive projects of the same type in the same place, over time. Moreover, there are no unusual circumstances surrounding the Project that would result in a reasonably possibility of a significant effect on the environment. Additionally, the Project will not damage scenic resources, including trees, historic buildings, rock outcroppings, or similar resources. The Project will not cause a substantial adverse change in the significance of a historical resource. Finally, the Project does not include any hazardous waste sites.
Thus, Class 4 exemption applies, and no further environmental review is required. Staff will cause a Notice of Exemption to be filed with the County of Orange County and State Clearing house within five (5) days of this action.
ATTACHMENTS
1. Resolution establishing City Parking Lot Rental Program (Pgs. 4-13)
2. Aerial designation of spaces at Lot 16 (Act V), Lot 10, and on-street parking along Laguna Canyon Road (Pgs. 14-15)
Submitted By: Dave Kiff Approved: .David A Kiff
Dave Kiff, City Manager Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Dave Kiff, City Manager Alexis Braun, Acting Director of Transit and Community Services
Jane Abzug, Assistant City Attorney
LCAD Officials