STAFF REPORT
Meeting Date:
April 14, 2026
CONSENT
6 SUBJECT: 2026 SUMMER PARKING MANAGEMENT PLAN AND TRANSIT SERVICES UPDATE
RECOMMENDATION: It is recommended that the City Council:
1. Receive and file an update on the summer 2025 Parking Management Plan and transit service performance;
2. Acknowledge the current cost per boarding of the Laguna Canyon On Demand Service, and direct staff to report back with recommendations as to continuing its activities ”as is” or to reduce, restructure, or cancel this route due to its current cost per boarding; and
3. Approve the 2026 Parking Management Plan, which consists of authorizing the City Manager to take the following actions:
a. Execute license or lease agreements, as appropriate, in a form approved by the City Attorney, or continue existing agreements, with Mission Hospital Laguna Beach, Laguna College of Art and Design, and property owner of 16555 Laguna Canyon Road (Irvine), and 303 Legion Street (Lot 21) with the terms reflected in Figure 3.
b. Offer low-cost peripheral parking at Lot 16 (ACT V) seven days a week from 8 a.m. to midnight, with free trolley service connecting to the art festivals and downtown, at a cost of $5 on weekdays and $10 on weekends and holidays.
c. Execute a license agreement, in a form approved by the City Attorney, with Festival of the Arts allowing (i) the Festival of the Arts to use 65 parking spaces in Lot 12 (the Lumberyard Lot) after 6 p.m. on weekdays and weekends; (ii) the Festival of the Arts to use 25 parking spaces (spaces 1 – 25) at the Lot 13 (Laguna Beach Community and Susi Q Center); (iii) the Festival of the Arts to rent the entirety of Lot 10 one time between July 1, 2026 through August 30, 2026 to host a special event.
d. Execute a memorandum of understanding, in a form approved by the City Attorney, with Festival of Arts, Sawdust Festival, and Art-A-Fair for use of Lot 16 (ACT V) and the LCAD Parking Lot whereby the City will recover the costs related to use of the lots, including the shuttle bus services to the festivals’ respective grounds, based on festival attendance during the summer.
e. Offer a $25 parking pass for unlimited parking at LCAD Parking Lot seven days a week and a $50 parking pass seven days a week for parking at Lot 16 (ACT V) from 8 a.m. to 12 a.m., LCAD Parking Lot from 8 a.m. to 12 a.m., and Lot 13 (Laguna Beach Community and Susi Q Center) Monday - Friday from 5 p.m. - 2 a.m. and Saturdays and Sundays from 8 a.m. - 2 a.m. and offer a limited pre-sale of each pass to the Festival of Arts, Sawdust Festival, ArtA-Fair, and Laguna Playhouse prior to making the passes available to the general public. f. Continue Passport to the Arts parking permit program and authorize the City Manager to approve a City-offered discount rate of $3 for Lot 16 (ACT V) for the festivals to provide to patrons as part of the program.
2026 SUMMER PARKING MANAGEMENT PLAN AND TRANSIT SERVICES UPDATE April 14, 2026
g. Implement summer trolley services to begin on June 26, 2026 and conclude on September 7, 2026 for routes identified in Figure 4.
h. Implement the summer Laguna Beach Local On-Demand Service to begin on June 26, 2026 and conclude on September 7, 2026 from 9 a.m. to 11:30 p.m. at more than 150 stops in North Laguna, South Laguna, Top of the World, Bluebird Canyon, Arch Beach Heights, Laguna Canyon Road, and downtown.
i. Implement a print and digital marketing program to promote summer trolley service, the Laguna Beach Trolley app, low or no-cost peripheral parking lots, the Laguna Beach Parking app, and the City’s new one-time mobile payment option for parking; provide enhanced wayfinding signage along Laguna Canyon Road and Coast Highway directing visitors to peripheral parking lots and other key destinations; and display a digital sign outside of ACT V lot to display real-time parking availability.
SUMMARY OF THE MATTER
This report provides a summary of the City’s public parking and transit programs during the summer of 2025, as well as an overview of the proposed recommendations for the 2026 Summer Parking Management Plan (“PMP”). The strategies in the 2026 PMP are intended to help manage seasonal parking demand while enhancing access to the City’s businesses, beaches, and special events for residents and visitors. The recommended actions will allow staff to proceed with planning for parking and transit services for summer 2026, and include several initiatives identified as part of the Parking and Transportation Demand Management Report implementation update reviewed by the City Council in July 2024. 2026 Summer PMP Summary Recommendations:
Execute seasonal lease or license agreements, as appropriate, for the use of peripheral parking lots, and sell seasonal parking passes for use by festival staff and artists; Establish summer parking rates in accordance with approved Coastal Development Permit; Conduct a South Laguna paid pilot parking program evaluating time limits, parking turnover, and impacts to adjacent neighborhoods;
Operate trolley service on Coastal, Canyon, and Summer Breeze routes; Continue to operate Laguna Beach Local On-Demand microtransit service, but to report back within the budget process with possible service level changes (that may include changes to hours and days of operations, routes changes, and/or fares per use); and Continue marketing and outreach programs in coordination with art festivals, Visit Laguna, and the Chamber of Commerce.
DISCUSSION
Summer 2025 Parking Program
The industry standard for optimal parking occupancy is 85%, with occupancy rates higher than 85% leading to increased traffic congestion. During the 2025 summer festival season (June 27 to September 1, 2025), parking demand in downtown parking lots and meter zones routinely exceeded 85% capacity during peak periods, particularly on weekends and during late afternoon and evening hours. 2026 SUMMER PARKING MANAGEMENT PLAN AND TRANSIT SERVICES UPDATE April 14, 2026
Parking revenue in July and August 2025 totaled more than $4.1 million, up $200,000 from the summer of 2024. The higher revenue reflects both a nominal increase in the utilization of the City’s public parking lots and meters, as well as the impact of a parking rate change implemented in February 2021 that applies a 10% annual increase to hourly parking rates citywide during the summer festival season. Parking rates in summer 2025 were $6.45 per hour in the downtown area and $3.60 per hour outside of downtown.
Four peripheral lots offered public parking in the summer of 2025: Lot 16 (Act V) and Laguna College of Art and Design (LCAD) on Laguna Canyon Road, Mission Hospital Laguna Beach (MHLB) on Coast Highway, and the Summer Breeze parking lot in Irvine at Concordia University. These peripheral lots were marketed through signage, print materials, social media, the City website, and public outreach. The LCAD lot was available for use by festival artists, staff, and the public who purchased a discounted summer parking pass. Peripheral parking lots help reduce traffic congestion by encouraging visitors to utilize free or reduced-price parking outside of downtown while taking advantage of the City’s free trolley service to travel to major activity centers.
Laguna Beach Parking App
The Laguna Beach Parking App provides parking availability information for City parking lots and meter zones, as well as the ability to pay for parking or extend parking sessions via a smart phone. The system is designed to improve traffic circulation by providing parking occupancy sensors in more than 2,300 on- and off-street public parking spaces.
Downloads of the Laguna Beach Parking App have grown steadily since the program was launched in summer 2019, with more than 736,721 downloads to date. In summer 2021, decals were added to all City parking meters and pay stations that include a QR code linking to the Laguna Beach Parking App. The QR code continues to be very effective for one-time payments. The City has an open RFP for an updated mobile parking payment vendor.
Summer 2025 Trolley Ridership
Trolley service in summer 2025 included the Short and Long Coastal routes (Coast Highway from North Laguna/Cliff Drive to Mission Hospital/Ritz-Carlton), the Canyon route (from LCAD and Lot 16 parking lots to the art festivals and downtown), and the Summer Breeze service on weekends (from a free parking lot near the State Route 133/Interstate 405 interchange in the City of Irvine to downtown Laguna Beach).
The Laguna Beach trolley system had a total of 310,228 boardings during summer 2025 (June 27 to September 1, with the Summer Breeze starting Memorial Day weekend), a decrease of approximately 5.9% from summer 2024.
The Summer Breeze trolley service operated on weekends between Irvine and downtown Laguna Beach starting Memorial Day weekend in May. Last summer was the fourth season that the Summer Breeze operated on Fridays, but in 2025 the service operated from Thursday (limited hours) to Sunday from 10 a.m. to 11:30 p.m., starting two and half hours earlier on Fridays. The Summer Breeze is funded primarily through an Orange County Transportation Authority (OCTA) grant for local transit services. The Summer Breeze had a total of 30,279 during summer 2025, an increase of 28.9% from summer 2024. Much of the ridership increase is attributable to enhanced marketing efforts, including marketing partnerships with Visit 2026 SUMMER PARKING MANAGEMENT PLAN AND TRANSIT SERVICES UPDATE April 14, 2026
Laguna and the art festivals, increasing the number of days per week, as well as working with Caltrans to promote the free trolley service on changeable message signs along the San Diego Freeway (I-405).
Ridership fluctuates annually due to variations in the number of summer service days, which depend on the calendar date of Labor Day. Summer 2025 trolley ridership is summarized in the table below.
Trolley Route Summer 2024
Ridership
Summer 2025
Ridership
% Change from 2024
Canyon 118,586 114,558 -3.5%
Coastal 186,584 165,391 -12.8%
Summer Breeze 23,486 30,279 +28.9%
TOTAL 328,656 310,228 -5.9%
Figure 1
In summer 2021, the City introduced new trolley stop signs that include a QR code, allowing passengers to easily access the City’s trolley tracker, which provides real-time trolley arrival information and service alerts. This offers easy access to trolley information for visitors who do not want to download the Laguna Beach Trolley app.
In addition to operating trolley service, the City operated Laguna Local On-Demand microtransit service between North and South Laguna to downtown and expanded service on Laguna Canyon Road to downtown during summer 2025. The service had more than 18,951 boardings in the months of July and August.
Canyon On-Demand Service
The Canyon On-Demand microtransit service began on May 27, 2025 with a partial grant from OCTA Measure V funding. The service route spans Laguna Canyon Road to El Toro Road ending downtown.
Laguna Local will bring passengers from El Toro Road to the Bus Depot or the festivals in the Canyon only. For this service, drivers will not travel past the bus depot. The grant reimburses the City a maximum of $10.81 per boarding. Costs and ridership information for the first few months of the program are below.
Period Total
Boardings
Total Cost Total
Reimbursement Net Cost to City
City Cost
Per
Boarding
April 2025- June
2025
480 $51,317 $5,188 $46,129 $106.90
July 2025 –
September 2025
2,826 $107,506 $30,549 $76,957 $38.04
October 2025 –
December 2025
8,029 $104,590 $86,793 $17,797 $13.03
Figure 2
April through June 2025 includes the 4 days in May and first full month of the program. The cost per boarding reflects the small number of boardings along with the high cost of service for this line. 2026 SUMMER PARKING MANAGEMENT PLAN AND TRANSIT SERVICES UPDATE April 14, 2026
OCTA requires that the staff notify the City Council when the cost per boarding is more than twice the subsidy. This gives the City Council the opportunity to continue to the program with the City picking up all additional costs, restructure the service, or cancel the service. This action is required to be reported to OCTA within 45 days of the Council action.
Proposed 2026 Summer Parking and Transit Programs
Based on the results of parking and transit programs in summer 2025, staff has developed a 2026 PMP for the City Council’s review and approval. The strategies in the 2026 PMP are intended to manage parking demand and traffic congestion while maintaining access to the City’s businesses, beaches, and art festivals for residents and visitors. The 2026 PMP continues to incentivize the use of low or no-cost peripheral parking lots along with the City’s free trolley service, with the objective of managing downtown parking utilization and reducing congestion.
On March 5, 2026, Transit and Community Services staff hosted the 2026 Summer Festival Coordinating meeting. This meeting brought together City staff along with representatives from the Festival of Arts, Sawdust Festival, Art-a-Fair, Laguna Playhouse, and the Laguna Beach Chamber of Commerce to discuss the upcoming summer festival season, including parking and transit issues. Mayor Mark Orgill serves as the City Council liaison to the committee and participated in the meeting. The group had a productive discussion regarding logistics related to the upcoming summer season, art festival schedules, and joint marketing opportunities.
The Sawdust Festival and Art-a-Fair expect to open for the 2026 summer season Friday, June 26 through Sunday, September 6. The Festival of Arts plans to open on Tuesday, July 7 and run through Friday, September 4. The Pageant of the Masters plans to open on Thursday, July 9 and run through Friday, September 4.
Summer 2026 Parking Rates
In December 2020, Coastal Development Permit (CDP) No. 20-7564 was issued, which established a multiyear parking rate structure for City parking lots and meter zones. The CDP was valid through the summer of 2025. In February 2026, Planning Commission approved a new CDP No. 2026- 0115 and California Coastal Commission has requested additional information for their evaluation for their coastal access requirements. The rate increases cannot take effect until City staff provides Coastal Commission with the information they need to confirm that the City is consistent with the Coastal Acts requirements. If approved, in accordance with the CDP, parking rates will increase 10% in all City parking lots and meter zones, bringing rates to $7.00 per hour in downtown parking areas and $3.95 per hour outside of downtown.
Village Entrance lots (10, 11 and 12) will be priced at $28 per day on weekends and $23 per day on weekdays. Lots 13 (Susi Q) and 14 (Hagan Place) will be $7 per day after 5 p.m. on weekdays and all day on Saturdays and Sundays. Summer parking rates will be in effect between June 22 and September 7, 2026, with enforcement hours from 8 a.m. to 9 p.m. in downtown and along Laguna Canyon Road, and ending at 7 p.m. in all other parts of the City. Rates will return to the current non-summer prices starting on September 8, 2026.
2026 SUMMER PARKING MANAGEMENT PLAN AND TRANSIT SERVICES UPDATE April 14, 2026
In addition, staff is in the planning stages to provide a 90-day pilot program to increase the number of designated paid parking spaces in South Laguna.
Agreements for Public Parking
For the past several years, the City has entered into lease and license agreements with private property owners to provide additional public parking during the summer season. These lots are promoted through signage, print materials, social media, the City website, and public outreach, particularly to those attending summer art festivals. Peripheral parking lots help reduce traffic congestion by encouraging visitors to utilize free or reduced-price parking outside of downtown, while taking advantage of the City’s free trolley service to travel into downtown. Proposed agreements for public parking lots are summarized in the table below.
Location # Spaces Hours Prior Year Cost Notes
Mission
Hospital
Laguna Beach 160
After 5 p.m.
weekdays; all day
weekends $57,000
City will provide signage,
restroom, trash pickup; free
public parking and free
trolley.
LCAD (main
lot on inbound
Laguna
Canyon Road)
100
8 a.m. to
midnight, seven
days a week No Cost
Lot will be used to provide
low-cost parking option to
festival staff/artists with $25
pass and free trolley; City
will provide restroom.
16355 Laguna
Canyon Road
(Irvine) 150+
Thursday and
Friday noon to
midnight;
weekends 10 a.m.
to midnight
$15,000
Free public parking for
Summer Breeze trolley to
downtown/festivals at
I-405/SR-133 interchange;
City will provide restroom.
303 Legion
Street (Lot 21) 10 8 a.m. to 7 p.m., seven days a week $18,000 Extension of lease for paid
public parking lot used yearround as Lot 21.
Figure 3
In addition to the agreements discussed above, the City will offer low-cost peripheral parking at ACT V/Lot 16 on Laguna Canyon Road. The lot will be open seven days a week from 8 a.m. to midnight, with free trolley service connecting to the art festivals and downtown at a cost of $5 on weekdays and $10 on weekends and holidays.
Parking Agreement with Festival of the Arts (FOA)
Per the FOA lease agreement with the City, the FOA has traditionally leased parking spaces in the City employee parking lot after 6 p.m. to provide parking for FOA volunteers. Last year, the FOA paid the City a flat rate of $12 per spot per day, which will increase to $13 per day in summer 2026 due to an increase in public parking rates. The City utilizes the 79 parking spaces in Lot 12 as City employee parking during weekday hours and reserves 65 of the spaces for use by the FOA after 6 p.m. on weekdays and weekends. 2026 SUMMER PARKING MANAGEMENT PLAN AND TRANSIT SERVICES UPDATE April 14, 2026
City staff proposes to continue this practice in 2026. Staff also recommends negotiating and executing an agreement with the FOA for 25 parking spaces (spaces 1 – 25) at the Community and Susi Q and 65 spaces at Lot 12, for a total of 90 spaces, after 6 p.m. on weekdays and weekends and approving the one-time rental of Lot 10 for special events in July and August 2026.
Parking Agreement with the Festival of Arts, Sawdust Festival, and Art-A-Fair Since the 1980s, the City has received reimbursement of costs associated with parking lot preparations for the summer festival season, including ACT V/ Lot 16 and the seasonal LCAD parking lot. The festivals reimburse the City for costs related to the preparation and operation of the lots used during the summer by festival attendees. In 1978, the South Coast Regional Coastal Commission stated that each of the three festivals must enter into an agreement with the City of Laguna Beach for the use of additional peripheral parking spaces and a shuttle bus service between the parking lots and their festival grounds. This was a condition to allow the festivals to operate despite not having sufficient parking on their grounds.
Staff reviewed agreements and found that the Festival of Arts has been reimbursing the City since the 1970s, with the Sawdust and Art-A-Fair beginning their reimbursement in 1982. The most recent parking reimbursement agreement found was from 2019, though the festivals have been reimbursing the City every year since. Staff is updating an agreement for summer 2026 that outlines the eligible reimbursable items so the festivals can budget accordingly. The City is now proposing that the total cost to be reimbursed be based on festival attendance, rather than splitting the costs evenly among the festivals, as attendance has a direct correlation with vehicles driven to visit the festival grounds. Staff will continue reviewing the proposed agreement with representatives of the three festivals and working to incorporate their suggested edits in coordination with the City Attorney’s office.
Summer Parking Passes
The City traditionally sells a limited number of seasonal parking passes that allow parking in select City lots throughout the summer season. For summer 2026, staff recommends offering two passes: a reduced price $25 pass that offers unlimited parking at one parking lot, LCAD lot seven days a week, as well as a $50 pass that offers parking at three lots, ACT V, LCAD, and Susi Q lots. The daily parking rate at ACT V is $5 per day on weekdays and $10 on weekends, so these passes offer significant savings over standard parking rates. Because the passes are primarily intended for use by artists and seasonal employees at the art festivals, staff recommends continuing to offer a limited pre-sale of each pass to the FOA, Sawdust Festival, Art-a-Fair, and Laguna Playhouse prior to being made available for purchase by the public. This approach has been used successfully since summer 2021. Staff also plans to work closely with Visit Laguna and the Chamber of Commerce on additional outreach efforts to improve the utilization of the LCAD parking lot and free trolley service by staff, artists, and the general public, including employees working in the downtown area, which will help to free up additional public parking spaces in other City lots.
The local festivals are proposing to offer a “Passport to the Arts” package for summer 2026, which includes one-time entrance to the festivals as well as a one-time parking pass for ACT V/Lot 16. The parking pass component has historically been discounted to $3 which staff recommends honoring again for the 2026 season.
2026 SUMMER PARKING MANAGEMENT PLAN AND TRANSIT SERVICES UPDATE April 14, 2026
2026 Summer Trolley Service Proposed Plan
The summer 2026 trolley service will be in full operation on the Coastal and Canyon routes by June 26, 2026, which is the projected opening date for the Sawdust Festival and Art-a-Fair. Summer trolley service will conclude for the season on Labor Day, September 7, after which off-season trolley service will begin.
The trolley service plan for summer 2026 is substantially the same as last summer, except for operating the Summer Breeze route beginning on Memorial Day weekend and adding additional hours for Thursday service during the week. In 2024, OCTA awarded a grant to expand the Summer Breeze service which went into effect in summer 2025. The Canyon route service was adjusted so that all trolleys travel from the LCAD and Lot 16 parking areas to downtown along Laguna Canyon Road. This change was proposed after consultation with the festivals to improve efficiency and reliability and avoid congestion on Frontage Road that frequently impacts on time performance which was well received in 2025.
Trolley
Route
Description Hours Frequency Notes
Coastal
Coast Highway from
North Laguna/Cliff
Drive to Mission
Hospital/RitzCarlton
9 a.m. to 11:30 p.m.,
seven days a week
Every 40 mins
on Long
Coastal route
Every 20 mins
on Short
Coastal route
Frequency can be
adjusted based on
demand
Summer
Breeze
Peripheral parking
lot in Irvine at SR133/ 1-405
interchange to
Downtown
10 a.m. to 11:30 p.m.,
Thursdays, Fridays,
Saturdays & Sundays
only
Approximately
every 30
minutes
Service from
May 23 through
September 1,
2025. Primarily
funded through
OCTA Project V
grant
Canyon
Laguna Canyon
Road from Act V
and LCAD parking
lots to art festivals
and
Downtown
8:30 a.m. to 11:30 p.m.,
seven days a week
Approximately
every 30
minutes
Frequency can be
adjusted based on
art festival
schedules and
demand
Figure 4
Seasonal employees will be hired to support summer trolley services, including fueler/washers and trolley ambassadors who assist the public in navigating the trolley system. Staff has begun to recruit for these positions through online job sites, social media posts, and outreach to local high schools and colleges.
Laguna Beach Local On-Demand Service
In November 2021, the City began operating a free on-demand microtransit service called Laguna Local.
In January 2023, the City expanded the service to North and South Laguna. In May 2025, the City expanded 2026 SUMMER PARKING MANAGEMENT PLAN AND TRANSIT SERVICES UPDATE April 14, 2026
the service further to Laguna Canyon Road. Residents request a ride when they want it using a mobile app or via phone, select their preferred pick up and drop off location from more than 150 stops in North Laguna, South Laguna, Top of the World, Bluebird Canyon, Arch Beach Heights, Laguna Canyon Road, and downtown. Proposed on-demand hours between June 26 and September 7 are Monday-Sunday from 9 a.m. to 11:30 p.m. for summer 2026 to create uniformity of service between trolley and Laguna Local services.
Marketing and Wayfinding
Staff will implement a print and digital marketing program to promote summer trolley service, the Laguna Beach Trolley app, low or no-cost peripheral parking lots, and the Laguna Beach Parking app. Staff will work closely with each of the art festivals, Visit Laguna, the Chamber of Commerce and the Laguna Playhouse to send information to their patrons regarding the availability of peripheral parking lots and free trolley service. Enhanced wayfinding signage will again be placed along Laguna Canyon Road and Coast Highway directing visitors to peripheral parking lots and other key destinations. The City will also promote its new one-time mobile payment option for parking, which offers added convenience to visitors who can now pay for parking at City lots and meters without needing to download an app. The ACT V lot digital sign will once again display real-time parking availability during the summer season.
FINANCIAL ANALYSIS
If approved, funding for the services, leases/licenses, as appropriate, and programs in the 2026 PMP will be included in the proposed Fiscal Year 2026-27 budget. No additional appropriation is required.
We note for the public’s information that, should we find that budget constraints force us to reduce some of our transit expenditures in FY 26-27, one area that will be reviewed is the Laguna Local On-Demand Service, including whether to seek a fare per ride, or the reduction (in hours or days of service) or elimination of one or more highly subsidized routes (or a combination of several approaches).
ENVIRONMENTAL ANALYSIS
The recommended action is exempt under the California Environmental Quality Act under CEQA Guidelines Section 15301 because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Here, the recommended action meets the exemption because it consists of approving the 2026 Parking Management Plan, which consists of certain administrative actions, such authorization for license or lease agreements and parking permit programs, that do not expand an new use but rather makes organizational changes to the same use of certain public and private structures. Upon taking the recommended action, City staff will cause to be filed within five calendar days a notice of exemption with the County and State Clearinghouse.
ATTACHMENTS
None
2026 SUMMER PARKING MANAGEMENT PLAN AND TRANSIT SERVICES UPDATE April 14, 2026
Submitted By: Alexis Braun Approved: .David A Kiff
Alexis Braun, Acting Director of
Transit and Community Services
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Alexis Braun, Acting Director of Transit and
Community Services
Andrea Tirnauer, Senior Services Coordinator
Steve Lindsay, Parking Supervisor
Andre Chism, Transit Supervisor
Carol Jacobs, Management Specialist
Jane Abzug, Assistant City Attorney