STAFF REPORT
Meeting Date:
June 23, 2026
NON APPEAL
27 SUBJECT: FIRST READING OF DESIGN REVIEW EFFICIENCY ORDINANCE AND
EFFICIENCY ORDINANCE AND RELATED ACTIONS
RECOMMENDATION: It is recommended that the City Council:
1. Waive full reading and introduce by title only an Ordinance titled, "AN ORDINANCE OF THE
CITY COUNCIL OF LAGUNA BEACH, CALIFORNIA, AMENDING ITS LOCAL COASTAL PROGRAM AND MUNICIPAL CODE TO MODIFY TITLE 25 (ZONING), TITLE 21 (SUBDIVISIONS), AND TITLE 22 (EXCAVATING, GRADING, AND FILLING) TO STREAMLINE THE DESIGN REVIEW AND OTHER PERMIT PROCESSES; AND FINDING
SAID ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER CEQA GUIDELINES SECTION 15301;
2. Waive full reading and introduce by title only an Ordinance titled, "AN ORDINANCE OF THE
CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, AMENDING ITS MUNICIPAL CODE TO MODIFY CHAPTER 7.25 (NOISE), 12.08 (PRESERVATION OF HERITAGE TREES), 12.16 (VIEW PRESERVATION AND RESTORATION), AND 17.50 (PRIVATE SEWER LATERALS) TO IMPROVE CONSISTENCY WITHIN THE CODE; AND
FINDING SAID ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER CEQA GUIDELINES SECTION 15301”;
3. Adopted City Council Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF
LAGUNA BEACH, CALIFORNIA, AMENDING ITS LOCAL COASTAL PROGRAM AND
SARAH THURSTON SPECIFIC PLAN TO STREAMLINE THE DESIGN REVIEW AND OTHER PERMIT PROCESSES; AND FINDING THE ACTION EXEMPT UNDER STATE CEQA GUIDELINES SECTION 15301”;
4. Direct staff to return with the Ordinances, identified in recommendations 1 and 2, above, for a second reading and adoption at the July 21, 2026, City Council meeting;
5. Direct City staff to present an urgency version of the Design Review Efficiency Ordinance at the July 21, 2026, City Council meeting;
6. Direct City staff to return with a proposed City Council resolution with revisions to the Design Guidelines – A Guide to Residential Development that are consistent with the revisions to the Design Review Efficiency Ordinance; and
7. Find that the recommended actions are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 and in the alternative is statutorily exempt under CEQA Guidelines Section 15265.
SUMMARY OF THE MATTER
The processing of development applications in the City of Laguna Beach (“City”) has always been complex, but in recent years, changes in State law, which direct a faster and more objective pathway to approval, as
FIRST READING OF DESIGN REVIEW EFFICIENCY ORDINANCE AND EFFICIENCY
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June 23, 2026
well as poor customer service concerns regarding the burdensome Zoning Plan Check process, have highlighted the need to improve the City’s plan review procedures. In response, City staff has been evaluating measures to improve efficiency within the Community Development Department. As part of that effort, staff prepared a Design Review Efficiency Ordinance (“DR Efficiency Ordinance”). (Attachment 1, Exhibit A.) While City staff was updating an early draft of the DR Efficiency Ordinance, staff identified that some of the needed revisions are not part of the City’s certified Local Coastal Program (“certified LCP”) and therefore should be removed from the DR Efficiency Ordinance and put into an ordinance that only amends the City’s Municipal Code (the “Efficiency Ordinance”). (Attachment 2.) On May 12, 2026, the City Council considered a first reading of the DR Efficiency Ordinance and Efficiency Ordinance. The City Council voted 5-0 to continue the public hearing to the May 26, 2026 City Council meeting with direction to staff to meet with certain neighborhood associations regarding the zonespecific design criteria that the draft DR Efficiency Ordinance proposed to modify or remove. At the meeting, the City Council also indicated that the concept review requirements for Capital Improvement Program (“CIP”) projects would be addressed during the City Council’s annual review of the CIP. (The May 12, 2026 City Council staff report, draft DR Efficiency Ordinance, and public comments are attached as Attachments 4 through 6, respectively.)
On May 26, 2026, staff informed the City Council that outreach had begun and that the Three Arch Bay Association requested additional time for review by its Board of Directors, which was scheduled to meet on June 8, 2026. The City Council then voted 5-0 to continue the public hearing to June 23, 2026.
City staff is recommending that the City Council: (1) introduce and waive the first reading of the DR Efficiency Ordinance and Efficiency Ordinance; (2) adopt City Council Resolution amending the Sarah Thurston Specific Plan text; (3) direct City staff to return with urgency version of the DR Efficiency Ordinance for consideration by the City Council at the second reading of the non-urgency versions of DR Efficiency Ordinance and Efficiency Ordinance on July 21, 2026; and (4) find the action categorically exempt under State CEQA Guidelines Section 15301 and, in the alternative, statutorily exempt under State CEQA Guidelines Section 15265.
DISCUSSION
Below is a description of the changes since the May 12, 2026 City Council meeting:
Neighborhood Association Engagement
As directed by the City Council on May 12, 2026, staff conducted outreach with neighborhood associations regarding proposed revisions to the zone-specific design criteria in the draft Design Review Efficiency Ordinance. Since that time, staff has met with or otherwise communicated with the Three Arch Bay Association, South Laguna Civic Association, Lagunita Community Association, and the Canyon Alliance of Neighborhoods Defense Organization. These discussions were productive and led to numerous revisions to the draft DR Efficiency Ordinance. Staff believes these revisions adequately address concerns regarding the proposed changes to zone-specific regulations. A yellow-highlighted version of the ordinance is included as Attachment 4 to identify the changes made since the City Council’s May 12, 2026 meeting.
FIRST READING OF DESIGN REVIEW EFFICIENCY ORDINANCE AND EFFICIENCY
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June 23, 2026
Sarah Thurston Specific Plan Text
City staff also identified inconsistency between the Neighborhood Development Standards in the Sarah Thurston Specific Plan text (Part VI), which PDF is posted on the City’s website, and Laguna Beach Municipal Code Chapter 25.39 (Sarah Thurston Specific Plan). Accordingly, City staff has prepared a resolution proposing to amend the Sarah Thurston Specific Plan text to remove the outdated Neighborhood Development Standards, which would remove confusion and inconsistency and result in the updated Neighborhood Development Standards to continue to exist in Laguna Beach Municipal Code Chapter 25.39 (Sarah Thurston Specific Plan). (See Attachment 3.)
New Primary Dwelling Unit Exemption from Design Review
City staff also relocated the regulations regarding new primary dwelling units that are exempt from design review (i.e., the box within the box) from Section 25.05.040 of the draft DR Efficiency Ordinance to Chapter
25.13 (New Primary Dwelling Units) to further expand upon the regulations. (See Attachment 4.) Chapter
25.13 also notes that the City Council will adopt objective design standards by City Council resolution. At a future date, City staff will bring the objective design standards, which are being drafted by JKA Consultants, to the City Council for adopted via resolution.
FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.
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 the City is amending its codes to improve procedural efficiencies and to comply with state law. The City is not authorizing new uses that are not already established within the City through this ordinance. Furthermore, and as an alternative, under State CEQA Guidelines Section 15265, CEQA does not apply to activities and approvals pursuant to the Coastal Act necessary for the preparation and adoption of a local coastal program because the Coastal Commission’s LCP review and approval procedures have been found to be functionally equivalent to the environmental review process. Therefore, the recommended actions amending the City’s local coastal program is statutorily exempt from CEQA. 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
1. Design Review Efficiency Ordinance (Pgs. 5-80)
2. Efficiency Ordinance (Pgs. 81-86)
3. Resolution Amending Sarah Thurston Specific Plan text (Pgs. 87-226)
4. Design Review Efficiency Ordinance (Highlighted Version) (Pgs. 227-301)
5. 5/12/26 CC Staff Report (Pgs. 302-311)
6. 5/12/26 CC Draft DR Efficiency Ordinance (Pgs. 312-377)
7. 5/12/26 CC Public Comments (Pgs. 378-396)
FIRST READING OF DESIGN REVIEW EFFICIENCY ORDINANCE AND EFFICIENCY
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June 23, 2026
Submitted By: Matthew Schneider Approved: .David A Kiff Matthew Schneider, Director of
Community Development
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Anthony Viera, Deputy Director of Community
Development
Jane Abzug, Assistant City Attorney