STAFF REPORT
Meeting Date:
March 10, 2026
CONSENT
12 SUBJECT: AWARD OF CONTRACT TO CALIFORNIA GRAZING COMPANY FOR FIRE
PREVENTION GOAT GRAZING SERVICES
RECOMMENDATION: It is recommended that the City Council:
1. Award and authorize the City Manager to execute a contract with California Grazing Company (CGC) in the amount of $748,029 for fire prevention goat grazing services over a three-year term; and
2. Find that this action is exempt from the California Environmental Quality Act (“CEQA”) pursuant to pursuant to CEQA Guidelines § 15301 and § 15304, and are further statutorily exempt as specific actions necessary to prevent or mitigate a wildfire emergency under Public Resources Code § 21080(b)(4) and CEQA Guidelines § 15269(c);
SUMMARY OF THE MATTER
This report recommends that the City Council award a contract to California Grazing Company (CGC) for fire prevention goat grazing services in an amount not to exceed $748,029 over a three-year term. Goat grazing is a key component of the City’s fuel modification program and is used to reduce vegetation in designated fuel modification zones to help mitigate wildfire risk and maintain defensible space. The agreement would allow CGC to provide grazing services within the City’s existing fuel modification zones and meet annual vegetation clearance requirements for wildfire prevention.
The agreement includes an estimated first-year cost of $244,422, with optional extension years subject to future budget appropriations. Funding for services from April 1, 2026 through June 30, 2026 will be paid from the Fire Mitigation Contractual Services account, which currently has $225,000 available; therefore, no additional appropriation is required for the current fiscal year.
DISCUSSION
Background
Goat grazing is a critical component of the City’s wildfire mitigation strategy and is used to manage vegetation in designated fuel modification zones throughout Laguna Beach. The City effectively manages ten (10) separate fuel modification zones with goat grazing as the primary method and two zones with a combination of goat grazing and hand crew work.
The City’s previous contract expired on December 31, 2025, requiring the City to procure a new contractor to ensure continued vegetation management and annual fuel modification.
Bid Process and Contractor Selection
Staff released a Request for Proposal for Goat Grazing Services and received 4 responses. The following is a summary of the bids sorted by bid amount:
Table of Bid Results
AWARD OF CONTRACT TO CALIFORNIA GRAZING COMPANY FOR FIRE PREVENTION
GOAT GRAZING SERVICES
March 10, 2026
Bidder Bid Amount (3 Year Total)
1. California Grazing Company $748,029.00
2. Legacy Ranching $1,052,985.10
3. Indacochea Sheep Ranch $1,135,290.60
4. Sage Environmental Group $1,322,785.92
Following the evaluation process in February of 2026, Fire Department staff concluded that CGC provided the most cost-effective choice that meets the City’s fuel modification needs. CGC has a history of operating grazing programs that are comparable in size and vegetation type to those found in Laguna Beach, including projects with other nearby municipalities.
Staff, therefore, recommends entering a contract with a maximum amount not to exceed $748,029 over a three-year term with CGC to provide goat grazing services for existing fuel modification zones 1 through 10, plus additional goats as needed to meet the annual grazing deadline. The City retains the sole discretion whether to extend the term into years two and three.
FINANCIAL ANALYSIS
The proposed agreement has a total not-to-exceed value of $748,029 over three years, with the following estimated annual costs:
Year Annual Cost
Year 1 $244,422
Year 2 (Extension Year 1) $249,310
Year 3 (Extension Year 2) $254,297
Total $748,029
The cost of services for April 1, 2026, through June 30, 2026, will not exceed the available balance of $225,000 in the Fire Mitigation Contractual Services account, and therefore, no additional appropriation is required for the current fiscal year. Funding for future years of the agreement will be evaluated through the City’s annual budget adoption process.
ALIGNMENT WITH CITY COUNCIL GOALS AND PRIORITIES
This action supports the City Council’s priority of enhancing public safety and wildfire preparedness.
Vegetation management within fuel modification zones helps reduce wildfire fuel loads and improves defensible space around residential areas and critical infrastructure.
ENVIRONMENTAL ANALYSIS
AWARD OF CONTRACT TO CALIFORNIA GRAZING COMPANY FOR FIRE PREVENTION
GOAT GRAZING SERVICES
March 10, 2026
The recommended action is exempt from CEQA pursuant to CEQA Guidelines § 15301 and § 15304.
Section 15301 exempts from environmental review, among other things, the repair, maintenance, and minor alterations of existing structures, facilities, mechanical equipment, or topographical features involving negligible or no expansion of the use. CEQA Guidelines § 15301 (h) specifically includes maintenance of exiting landscaping and native growth in this categorical exemption. The proposed project consists of minor alterations of public lands that would not result in an expansion of use. Section 15304 exempts from environmental review 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 or agricultural purposes.
The proposed project consists of vegetation maintenance to reduce wildfire hazards. There are no features that distinguish this project from others in the exempt classes and, therefore, there are no unusual circumstances. In addition, specific actions necessary to prevent or mitigate an emergency are statutorily exempt from CEQA pursuant to Public Resources Code § 21080(b)(4) and CEQA Guidelines § 15269 (c).
The proposed action is specifically designed to prevent and/or mitigate a wildfire emergency.
ATTACHMENTS
1. Request for Proposals (Pgs. 4-65)
2. Professional Services Agreement (Pgs. 66-89)
Submitted By:
. Approved: .David A Kiff
Niko King, Fire Chief Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Kirsten Gallacher, Senior Administrative
Analyst
Robert Montaghami, Fire Marshal
Patrick Donegan, Assistant City Attorney