Agenda packet, regular meeting — Laguna Beach City Council, September 22, 2026 (part 4 of 9)

8. SUBCONTRACTING
Contractor will not subcontract any portion of the Services without prior written approval of City. If Contractor subcontracts any of the Services, Contractor will be fully responsible to City for the acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor.

Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and City. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by City.

9. OTHER CONTRACTORS
The City reserves the right to employ other Contractors in connection with the Services.

10. INDEMNIFICATION
Contractor agrees to defend (with counsel approved by the City), indemnify, and hold harmless the City and its officers, elected and appointed officials, employees and volunteers from and against all claims, damages, losses and expenses including attorney’s fees arising out of the performance of the work described herein caused by any negligence, recklessness, or willful misconduct of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable.

If Contractor’s obligation to defend, indemnify, and/or hold harmless arises out of Contractor’s performance as a “design professional” (as that term is defined under California Civil Code section 2782.8), then, and only to the extent required by California Civil Code Section 2782.8, which is fully incorporated herein, Contractor’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor, and, upon Contractor obtaining a final adjudication by a court of competent jurisdiction. Contractor’s liability for such claim, including the cost to defend, shall not exceed the Contractor’s proportionate percentage of fault.

The parties expressly agree that any payment, attorneys fee, costs or expense City incurs or makes to or on behalf of an injured employee under the City’s self-administered workers’ compensation program is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement.

11. INSURANCE
Contractor will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor or Contractor’s agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:VII"; OR with a surplus line insurer on the State of California’s List of Approved Surplus Line Insurers (LASLI) with a rating in the latest Best’s Key Rating Guide of at least “A:X”; OR an alien non-admitted insurer listed by the National Association of Insurance Commissioners (NAIC) latest quarterly listings report.

11.1 Coverages and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless Risk Manager or City Manager approves a lower amount. These minimum Docusign Envelope ID: 52C92EF9-A028-8E32-80D5-B95D3019F2F1 31 33331111 of 4444555777
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amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. City, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense.

The full limits available to the named insured shall also be available and applicable to the City as an additional insured.

11.1.1 Commercial General Liability (CGL) Insurance. Insurance written on an “occurrence” basis, including personal & advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

11.1.2 Automobile Liability. (if the use of an automobile is involved for Contractor's work for City). $2,000,000 combined single-limit per accident for bodily injury and property damage.

11.1.3 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code. Workers' Compensation will not be required if Contractor has no employees and provides, to City's satisfaction, a declaration stating this.

11.1.4 Professional Liability. Errors and omissions liability appropriate to Contractor’s profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work.

11.2 Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions:

11.2.1 The City will be named as an additional insured on Commercial General Liability which shall provide primary coverage to the City.

11.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage.

11.2.3 If Contractor maintains higher limits than the minimums shown above, City requires and will be entitled to coverage for the higher limits maintained by Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage will be available to City.

11.2.4 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to City sent by certified mail pursuant to the Notice provisions of this Agreement.

11.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to City.

11.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance coverages, then City will have the option to declare Contractor in breach or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by City to obtain or maintain insurance and City may collect these Docusign Envelope ID: 52C92EF9-A028-8E32-80D5-B95D3019F2F1 32 33332222 of 4444555777
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payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement.

11.5 Submission of Insurance Policies. City reserves the right to require, at any time, complete and certified copies of any or all required insurance policies and endorsements.

12. BUSINESS LICENSE
Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time.

13. ACCOUNTING RECORDS
Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of four (4) years from the date of final payment under this Agreement.

14. NOTICES
The name of the persons who are authorized to give written notice or to receive written notice on behalf of City and on behalf of Contractor under this Agreement are:

For City: For Contractor:

Name Eddie Wills Name Parker Yocum
Title Project Assistant Title
Dept PW – Trans Address 320 State Pl
Escondido CA 92029
Address City of Carlsbad Phone 951-760-1945
405 Oak Ave Carlsbad CA 92008 Email parker@pcctriphazardremoval Phone 442-359-9650
Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address.

15. CONFLICT OF INTEREST
Contractor shall file a Conflict of Interest Statement with the City Clerk in accordance with the requirements of the City of Carlsbad Conflict of Interest Code. The Contractor shall report investments or interests as required in the City of Carlsbad Conflict of Interest Code.

Yes ☐ No ☒

16. GENERAL COMPLIANCE WITH LAWS
Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regulations.

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Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants whose services are required by this Agreement.

17. CALIFORNIA AIR RESOURCES BOARD (CARB) ADVANCED CLEAN FLEETS REGULATIONS Contractor’s vehicles with a gross vehicle weight rating greater than 8,500 lbs. and light-duty package delivery vehicles operated in California may be subject to the California Air Resources Board (CARB) Advanced Clean Fleets regulations. Such vehicles may therefore be subject to requirements to reduce emissions of air pollutants. For more information, please visit the CARB Advanced Clean Fleets webpage at https://ww2.arb.ca.gov/our-work/programs/advanced-clean-fleets.

18. DISCRIMINATION, HARASSMENT, AND RETALIATION PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination, harassment, and retaliation.

19. DISPUTE RESOLUTION
If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties.

Representatives of Contractor or City will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the City Manager. The City Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the City Manager will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law.

20. TERMINATION
In the event of the Contractor's failure to prosecute, deliver, or perform the Services, City may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If City decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, City may terminate this Agreement upon written notice to Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that Contractor has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement.

City may terminate this Agreement by tendering thirty (30) days written notice to Contractor. Contractor may terminate this Agreement by tendering thirty (30) days written notice to City. In the event of termination of this Agreement by either party and upon request of City, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to City. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. City will make the final determination as to the portions of tasks completed and the compensation to be made.

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21. COVENANTS AGAINST CONTINGENT FEES
Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, City will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee.

22. CLAIMS AND LAWSUITS
By signing this Agreement, Contractor agrees that any Agreement claim submitted to City must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that California Government Code sections 12650 et seq., the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys fees. Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction is grounds for City to terminate this Agreement.

23. JURISDICTIONS AND VENUE
This Agreement shall be interpreted in accordance with the laws of the State of California without regard to, or application of choice of law principles. Contractor agrees and stipulates that the proper venue and jurisdiction for resolution of any disputes between the parties arising out of this Agreement is the State Superior Court, San Diego County, California.

24. NO ATTORNEYS FEES AND COSTS.

Except as otherwise specifically provided in this Agreement, if there is any litigation, mediation, arbitration or other dispute resolution proceedings arising out of this Agreement, each Party shall for its own attorney and other professional fees, costs and expenses.

25. [OMITTED]

26. SUCCESSORS AND ASSIGNS
It is mutually understood and agreed that this Agreement will be binding upon City and Contractor and their respective successors. Neither this Agreement nor any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of City, which shall not be unreasonably withheld.

27. THIRD PARTY RIGHTS
Nothing in this Agreement should be construed to give any rights or benefits to any party other than the City and Contractor.

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28. AUTHORITY
The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first written above.

CONTRACTOR CITY OF CARLSBAD, a municipal corporation of the State of California SOUTHERN CALIFORNIA PRECISION
CONCRETE INC., a California corporation, dba
Precision Concrete Cutting
By: By:
(sign here) KEITH BLACKBURN, Mayor
Ronald William Durna, Jr., President
ATTEST:

By: SHERRY FREISINGER, City Clerk
(sign here) By:

Neshtinscka Durna, Secretary Assistant City Clerk
If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a corporation, Agreement must be signed by one corporate officer from each of the following two groups.

Group A Group B
Chairman, Secretary,
President, or Assistant Secretary,
Vice-President CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation.

APPROVED AS TO FORM:

CINDIE K. McMAHON, City Attorney
By: _____________________________
Assistant City Attorney
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EXHIBIT A

SCOPE OF SERVICES AND FEE
Contractor shall perform the following services for the City (collectively, the "Services") to the City's satisfaction:

Pre-Project:
• Initial kick-off meeting: Contractor shall meet with City staff to go over project objectives, expectations and review project locations.
• GIS Integration preparation: Contractor shall verify' data requirements for ESRI Shapefile / Geodatabase formats for eventual incorporation to City GIS. • Project Scheduling: Contractor shall develop a detailed schedule of inspection and maintenance activities with priority given to high-traffic or high-risk areas.

Location and Identification:
• Contractor shall systematically survey pre-determined areas and adjacent. sidewalks to identify all vertical displacements ranging from ¼" to 2". • Contractor shall identify and flag any offsets exceeding 2" for alternative solutions, documenting their locations for future efforts.
• Contractor shall update the City's GIS system with initial findings for on-going tracking.

Measure, Document and Photograph:
• Contractor shall utilize measurement tools to record displacement heights to one-fourth (1/4) of an inch and capture linear footage for each potential repair. • Contractor shall take pre-maintenance photographs to provide clear evidence of identified areas for repair.
• Contractor shall record GPS coordinates and property details for each location.

Review Data with City Staff:
• Contractor shall deliver a comprehensive inspection report, including GIS data and a priority list of identified areas of repair.
• Contractor shall collaborate with City staff to determine remediation priorities based on severity, location, and budgetary constraints.

Concrete Repair (Slicing):
• Contractor shall apply horizontal slicing method to remove displaced concrete while preserving existing sidewalk structure.
• Contractor shall ensure all repairs meet ADA compliance standards, achieving a smooth, uniform surface with a 1: 12 slope.
• Contractor shall capture post-maintenance measurements and photographs to document completed work.

Document Repairs:
• Contractor shall update GIS data with details of completed repairs, including remediation dates, measurements and photographs.
• Contractor shall provide a complete record of repaired locations for integration into the City's GIS and asset management systems.

Review and Report:
• Contractor shall attend weekly progress meetings with City staff. • Contractor shall submit bi-Monthly progress reports summarizing work, project progress, and any challenges encountered.

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• Contractorshall convene regular meetings and provide and collaborate on presentations with City staff to review progress, discuss findings and address feedback.

Project Completion and Final Reporting:
• Contractor shall deliver a final executive summary report for all completed work, including a comparison of planned vs achieved outcomes.
• Contractor shall provide GIS data detailing all repairs and areasidentified for future attention. • Contractor shall conduct a project review meeting for final deliverables and lessons learned for future maintenance programs.

Unit Pricing (First Year):

Item Item Description Unit of Measure Unit Price
1 Sidewalk Assessment Services Sidewalk-Mile $220.00
2 Slicing Repairs (1/4” to 2”) Inch-Foot $39.95

MAXIMUM AGREEMENT COST
Concrete Sidewalk Inspection and Repair Services
(at a maximum 3% CPI)
Term Agreement year Pavement
Zone(s)
Sidewalk Miles
to Survey
Estimated Cost for
Survey and Slicing
Repairs
1 FY 2026-27 1&2 190 $552,321
2 (option) FY 2027-28 3 131 $392,235
3 (option) FY 2028-29 4 146 $450,262
4 (option) FY 2029-30 5 112 $363,942
5 (option) FY 2030-31 6 175 $565,384
TOTALS 754 $2,324,144
Annual Averages 151 $464,829
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EXHIBIT A

ZONE MAP
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EXHIBIT “B”

DIR CONTRACTOR REGISTRATION CERTIFICATION
NAME OF PROJECT: Concrete Sidewalk Inspection and Repair Services NAME OF CONTRACTOR: Southern California Precision Concrete dba Precision Concrete Cutting Pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractors and any Subcontractors for this Project must be registered with the Department of Industrial Relations. See Public Works (ca.gov) for additional information.

Contractor certifies that it is aware of the registration requirements set forth in Labor Code Sections 1725.5 and 1771.1 and is currently registered as a Contractor with the Department of Industrial Relations.

Name of Contractor: Southern California Precision Concrete dba Precision Concrete Cutting DIR Registration Number: 1000003322
DIR Registration Expiration: June 30, 2026
Contractor further certifies:

1. Contractor shall maintain a current DIR registration for the duration of the Project.

2. Contractor will include the requirements of Labor Code Sections 1725.5 and 1771.1 in any contractor with subcontractors and ensure that all subcontractors are registered at the time of contract award and will maintain registration status for the duration of the Project.

Signature: Date:

Name: Ronald William Durna, Jr. Title: President
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Meeting Date: April 28, 2026
To: Mayor and City Council
From: Geoff Patnoe, City Manager
Staff Contact: Eddie Wills, Project Assistant
[email protected], 442-359-9650
Subject: Award an Agreement to Southern California Precision Concrete, Inc. dba Precision Concrete Cutting for Concrete Sidewalk Inspection and Repair Services
Districts: All
Recommended Action
Adopt a resolution awarding an agreement to Southern California Precision Concrete, Inc. dba Precision Concrete Cutting for concrete sidewalk inspection and repair services in an amount not to exceed $552,321 for the first year of the agreement.

Executive Summary
The city maintains 753 miles of concrete sidewalks throughout the city through a combination of efforts by contractors and city staff.

The City Council awarded an agreement to Southern California Precision Concrete, Inc. dba Precision Concrete Cutting on March 4, 2025, to repair uneven concrete joints using mechanical slicing. Under this agreement, staff targeted school zones and high-pedestrian traffic areas, including the Village and Carlsbad Boulevard between Pine Avenue and Tamarack Avenue, for sidewalk repairs. In total, 41 miles of sidewalk were inspected, and 1,412 uneven concrete joints were repaired. The total cost of the initial agreement was under $186,000.

Based on the demonstrated speed and cost-effectiveness of the initial agreement, staff recommend that the City Council authorize a new one-year agreement with Precision Concrete Cutting to repair uneven concrete joints in other areas of the city. Staff also recommend that the City Council authorize the City Manager to extend the agreement by four one-year periods in an amount not to exceed $566,000 per agreement year, as needed.

Sufficient funding is available to initiate these services using Concrete Repair/Replacement Program, Capital Improvement Program Project No. 6013, so no additional appropriation is required.

The City Council’s approval is required under Carlsbad Municipal Code Section 3.28.040(D)(1) because these services will cost more than $250,000 per agreement year.

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Explanation & Analysis
Background
Since 2021, the city has contracted with Southern California Precision Concrete, Inc. dba Precision Concrete Cutting on a project-by-project basis to repair uneven concrete sidewalks through a technique called mechanical slicing. From late 2021 through early 2025, the city successfully performed approximately $120,000 in sidewalk slicing work throughout the city.

In March 2025, the City Council awarded a one-year “on-call” agreement to Precision Concrete in an amount not to exceed $200,000 to survey and repair designated areas with highpedestrian traffic.

Under this agreement, Precision Concrete inspected large, high-traffic areas and repaired 1,412 areas via mechanical slicing and recommended an additional 406 areas that have either been repaired via patching, full concrete replacement or placed in a follow-on concrete repairs project.

The agreement proved successful, demonstrating rapid capability to inspect and remediate most uneven concrete joints for a large cost savings compared to projected in-house or contracted remove-and-replace costs.

Concrete slicing
Concrete slicing is an established public works maintenance practice that eliminates or reduces uneven surfaces at sidewalk joints of up to two inches at a fraction of the cost and time when compared with replacement. Further expansion of the program will improve the city’s response in evaluating and addressing potentially uneven concrete joints and help it maintain pathways in compliance with the Americans with Disabilities Act, or ADA.

Sidewalk before and after concrete slicing
Concrete sidewalk repairs are managed under the Concrete Repair/Replacement Program, Capital Improvement Program Project No. 6013. Repairs are prioritized based on the severity of sidewalk displacements and pedestrian traffic in the area.

The proposed agreement and the slicing method of repairing sidewalk displacements is consistent with the Federal Highway Administration’s “Guide for Maintaining Pedestrian April 28, 2026 54 Item #4 Page 2 of 9
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Facilities for Enhanced Safety” and municipal best practices, including how the repairs are prioritized and how the conditions of sidewalk assets are tracked in a mapping database.

Sidewalk panel replacement compared to mechanical joint slicing Conventional replacement Mechanical slicing
Cost per repair $850 or more per repair $75 to $150 per repair Speed per
repair
Days per location (demolish
concrete, pour new concrete, cure
new concrete)
Less than 1 hour per location, repairs
on call
Durability 40-50 years from new installation
More than 86% of repairs expected
to last through useful life of panel
(40-50 years)
Americans with
Disabilities Act
Compliance
Fully compliant Fully compliant
On average, 80% of the locations identified by this program will be addressed via mechanical slicing or shaving by a contractor and 20% by in-house staff efforts, including patching, grinding, or removing and replacing sections of sidewalk.

Bidding process
• On Jan. 30, 2026, the city posted specifications and advertised the maintenance services agreement project for proposals.
• On March 4, 2026, staff received four proposals for the project. • Following a best-value evaluation process in accordance with the city’s request and Carlsbad Municipal Code Sections 3.28.050(D)(2) and 3.28.060, the evaluation panel selected Southern California Precision Concrete, Inc. dba Precision Concrete Cutting to provide project services for an amount not to exceed $552,321 for the initial one-year term.

Recommendation
Staff recommend awarding Southern California Precision Concrete, Inc. dba Precision Concrete Cutting an initial one-year agreement for concrete sidewalk inspection and repair services based on the established Pavement Zone map in Exhibit 3, addressing Zones 1 and 2 per the cost table below.

Staff also recommend potential future extensions of the agreement for four additional one-year periods or parts thereof to address the remaining zones for a total five-year agreement in an amount not to exceed $2,324,144.

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Fiscal Analysis
Based on the initial agreement analysis, the average cost to slice uneven joints per sidewalk location is $128. By comparison, the average cost to have city staff demolish and replace uneven sidewalk panels is about $850 per location.

Estimated costs for concrete sidewalk inspection, hazard removal and slicing services, with extension options
(Costs assume annual inflation using the Consumer Price Index of 3%) Term Agreement
year
Pavement
zone(s)
Sidewalk
miles to
survey
Estimated cost for
survey and repairs
1 FY 2026-27 1, 2 190 $552,321
2 (option) FY 2027-28 3 131 $392,235
3 (option) FY 2028-29 4 146 $450,262
4 (option) FY 2029-30 5 112 $363,942
5 (option) FY 2030-31 6 175 $565,384
TOTALS 754 $2,324,144
Annual average 151 $464,829
Funding is available in the budget for the Concrete Repair/Replacement Program to fund the first year of the agreement. The project is funded with gas tax and road maintenance and rehabilitation state allocations.

Funding and estimated costs for Concrete Repair/Replacement Program Capital Improvement Program Project No. 6013
Total appropriation to date $6,810,000
Total expenditures and encumbrances to date -$5,736,852 Total available funding $1,073,148
First year of concrete sidewalk inspection, hazard removal and slicing services agreement – Southern California Precision Concrete, Inc. dba Precision Concrete Cutting
$552,321
Remaining balance $520,827
Additional appropriation needed $0
Staff will request additional funds through the annual Capital Improvement Program budget development process in future fiscal years to cover the remaining extension options, as needed.

Staff also recommend that the City Council authorize the City Manager to extend the agreement by four one-year periods or parts of the years for an amount not to exceed $566,000 per agreement year, or as needed. Staff expect that sufficient funding will be available in the budget for the Concrete Repair/Replacement Program each year to fund this April 28, 2026 56 Item #4 Page 4 of 9
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project and to repair or replace sidewalk panels that cannot be repaired through mechanical slicing.

Next Steps
Upon the City Council’s approval, the agreement will be executed and staff will issue a purchase order. Staff will then issue a notice to proceed to Southern California Precision Concrete, Inc. dba Precision Concrete Cutting, to perform the concrete sidewalk inspection, hazard removal and slicing services.

Environmental Evaluation
The proposed action to award an agreement for concrete sidewalk inspection and repair services is categorically exempt from environmental review under the California Environmental Quality Act, or CEQA, Guidelines Section 15301 because it involves the maintenance, repair or minor alteration of existing facilities with negligible or no expansion of the existing or former use. No exceptions to the categorical exemption as set forth in CEQA Guidelines Section 15300.2 or Carlsbad Municipal Code Section 19.04.070(C) apply.

Exhibits

1. City Council resolution

2. Specifications and contract documents (on file in the Office of the City Clerk)

3. Zone map
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Exhibit 1
RESOLUTION NO. .

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,

CALIFORNIA, AWARDING AN AGREEMENT TO SOUTHERN CALIFORNIA PRECISION CONCRETE, INC. DBA PRECISION CONCRETE CUTTING FOR

CONCRETE SIDEWALK INSPECTION AND REPAIR SERVICES IN AN AMOUNT NOT TO EXCEED $552,321 FOR THE FIRST YEAR OF THE AGREEMENT WHEREAS, the City Council of the City of Carlsbad, California, has determined it necessary, desirable and in the public interest to inspect and repair concrete sidewalks citywide; and WHEREAS, the scope of the Concrete Repairs Capital Improvement Program, or CIP, Project No. 6013, includes maintenance and repairs to concrete sidewalks citywide; and WHEREAS, on Jan. 30, 2026, staff posted the concrete sidewalk maintenance services agreement project for proposals; and
WHEREAS, on March 4, 2026, staff received four proposals; and WHEREAS, following a best-value evaluation process consistent with the city’s request and Carlsbad Municipal Code Sections 3.28.050(D)(2) and 3.28.060, the evaluation panel determined that Southern California Precision Concrete, Inc. dba Precision Concrete Cutting submitted the best-value proposal to provide concrete sidewalk inspection and repairservicesin an amount not to exceed $552,321 for the first year of the agreement; and
WHEREAS, sufficient funding is available in the Concrete Repair/Replacement Program, funded by gas tax and road maintenance and rehabilitation state allocations; and WHEREAS, the City of Carlsbad established best-value criteria before releasing the request for proposals, scored the received proposals per the best-value criteria, and identified Southern California Precision Concrete, Inc. dba Precision Concrete Cutting as providing the best value, consistent with Carlsbad Municipal Code Sections 3.28.050(D)(2) and 3.28.060; and WHEREAS, the term of the agreement is one year with four additional one-year periods or parts thereof, if the City Council authorizes the City Manager to extend the agreement, for a potential total of five years in an amount not to exceed $2,324,144.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:

1. That the above recitations are true and correct.

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2. That the City Council has determined that the proposed action to award an agreement for concrete sidewalk inspection and repair services is categorically exempt from environmental review under the California Environmental Quality Act, or CEQA, Guidelines Section 15301 because it involves the maintenance, repair or minor alteration of existing facilities with negligible or no expansion of the existing or former use. No exceptions to the categorical exemption as set forth in CEQA Guidelines Section 15300.2 or Carlsbad Municipal Code Section 19.04.070(C) apply.

3. That the award of the agreement for Concrete Sidewalk Inspection and Repair Services described herein is contingent upon Southern California Precision Concrete, Inc. dba Precision Concrete Cutting executing the agreement and submitting the required bonds and insurance policies, as described in the agreement, within 20 calendar days after adoption of this resolution. The City Manager may grant reasonable extensions of time to execute the contract and assemble the required bonds and insurance policies.

4. That the City Manager, or designee, is authorized to extend the agreement by up to four additional one-year periods, or parts thereof, for an amount not to exceed $566,000 per agreement year, after satisfactory performance by the contractor, if funds are available for those years.

PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the __ day of ________, 2026, by the following vote, to wit:

AYES:

NAYS:

ABSTAIN:

ABSENT:
_____________________________________
KEITH BLACKBURN, Mayor
______________________________________
SHERRY FREISINGER, City Clerk
(SEAL)
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Exhibit 2
Specifications and contract documents
(on file in the Office of the City Clerk)
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Exhibit 3
Concrete Repair/Replacement Program, Capital Improvement Program Project No. 6013 April 28, 2026 61 Item #4 Page 9 of 9
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MAINTENANCE SERVICES AGREEMENT FOR CONCRETE SIDEWALK INSPECTION AND REPAIR SERVICES SOUTHERN CALIFORNIA PRECISION CONCRETE INC. dba PRECISION CONCRETE CUTTING THIS AGREEMENT is made and entered into as of the ______________ day of _________________________, 2026, by and between the City of Carlsbad, California, a municipal corporation and California charter city ("City") Southern California Precision Concrete Inc., a California corporation, dba Precision Concrete Cutting ("Contractor").

RECITALS
A. City requires the professional services of concrete sidewalk inspection and repair services.

B. Contractor is duly qualified and has the necessary experience to provide the Services.

C. The City issued Request for Proposals No. RFP26-4022TRAN and in response, the Contractor submitted a proposal to the City and affirmed its willingness and ability to perform the work.

NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows:

1. SCOPE OF WORK
City retains Contractor to perform, and Contractor agrees to render, those Services described and delineated in Exhibit . To the extent that any of the terms in the Exhibits(s), including any attachments, conflict with the terms in this Agreement, in whole or in part, the terms of this Agreement control.

2. TERM
The term of this Agreement will be effective for a period of one (1) year from the date first above written.

The City Manager may amend the Agreement to extend it for four (4) additional one (1) year(s)or parts of a year. Extensions will be based upon a satisfactory review of Contractor's performance, City needs, and appropriation of funds by the City Council. The parties will prepare a written amendment indicating the effective date and length of the extended Agreement.

3. COMPENSATION
The total fee payable for the Services to be performed during the initial Agreement term shall not exceed five hundred fifty-two thousand three hundred twenty-one dollars ($552,321). No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement.

If the City elects to extend the Agreement, the amount shall not exceed five hundred sixty-six thousand dollars ($566,000) per Agreement year.

Payment terms are Net 30 unless otherwise or agreed to in writing by the parties.

The City reserves the right to withhold a ten percent (10%) retention until City has accepted the work and/or Services specified in Exhibit "A". Incremental payments, if applicable, should be made as outlined in attached Exhibit "A".

4. PUBLIC WORKS

4.1 Prevailing Wage Rates. Any construction, alteration, demolition, installation, repair, and maintenance work, including work performed during design and preconstruction such as inspection and land surveying work, cumulatively exceeding $1,000 and performed under this Agreement constitute Attachment 3
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laws. The general prevailing rate of wages, for each craft or type of worker needed to execute the contract, shall be those as determined by the Director of Industrial Relations pursuant to the Section 1770, 1773 and 1773.1 of the California Labor Code. Pursuant to Section 1773.2 of the California Labor code, a current copy of applicable wage rates is on file in the office of the City Engineer. Contractor shall not pay less than the said specified prevailing rates of wages to all such workers employed by Contractor in the execution of the Agreement. Contractor and any subcontractors shall comply with Section 1776 of the California Labor Code, which generally requires keeping accurate payroll records, verifying and certifying payroll records, and making them available for inspection. Contractor shall require any subcontractors to comply with Section 1776.

4.2 DIR Registration. California Labor Code section 1725.5 requires the Contractor and any subcontractor or subconsultant performing any public work under this Agreement to be currently registered with the California Department of Industrial Relations (DIR), as specified in Labor Code section 1725.5. Labor Code section 1771.1 provides that a contractor or subcontractor/subconsultant shall not be qualified to engage in the performance of any contract for public work, unless currently registered and qualified to perform public work pursuant to Labor Code section 1725.5. Prior to the performance of public work by any subcontractor or subconsultant under this Agreement, Contractor must furnish City with the subcontractor or subconsultant's current DIR registration number, including submitting the form B . 5. CONSTRUCTION MANAGEMENT SOFTWARE
Procore Project Management and Collaboration System. This project may utilize the Procore (www.procore.com) online project management and document control platform. The intent of utilizing Procore is to reduce cost and schedule risk, improve quality and safety, and maintain a healthy team dynamic by improving information flow, reducing non-productive activities, reducing rework and decreasing turnaround times. Contractor is required to create a free web-based Procore user account(s) and utilize web-based training / tutorials (as needed) to become familiar with the system. Unless the Engineer approves otherwise, the Contractor shall process all project documents through Procore because this platform will be used to submit, track, distribute and collaborate on project. If unfamiliar or not otherwise trained with Procore, Contractor and applicable team members shall complete a free training certification course located at http://learn.procore.com/procore-certification-subcontractor. Contractor is responsible for obtaining own Procore support, as needed, either through the online training or reaching out to the Procore support team. It will be the responsibility of Contractor to regularly check Procore and review updated documents as they are added. There will be no cost to Contractor for use of Procore.

It is recommended that Contractor provide mobile access for Windows, iOS located at https://apps.apple.com/us/app/procore-construction-management/id374930542 or Android devices located at https://play.google.com/store/apps/details?id=com.procore.activities with the Procore App installed to at least one on-site individual to provide real-time access to current posted drawings, specifications, RFIs, submittals, schedules, change orders, project documents, as well as any deficient observations or punch list items. Providing mobile access will improve communication, efficiency, and productivity for all parties. The use of Procore for project management does not relieve the contractor of any other requirements as may be specified in this Agreement.

6. BONDS

6.1 Labor and Materials Bond. Contractor will execute and provide to City, concurrently with this Agreement a Labor and Materials Bond in the amount of the total, not-to-exceed compensation indicated 63 6663333 of 4444555777
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in this Agreement in the form provided in Exhibit . No payment will be made to the Contractor until it has been received and approved by the City.

6.2 Performance Bond. Contractor will execute and provide to City concurrently with this Agreement a Performance Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, in the form provided in Exhibit . No payment will be made to Contractor until it has been received and approved by City.

6.3 Bond Provisions. Should, in City's sole opinion, any bond become insufficient, or any surety be found to be unsatisfactory, Contractor will renew or replace the affected bond within 10 days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice must be given to City, and Contractor must post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments will be deemed due or will be made under this Agreement until any replacement bonds required by this Section are accepted by City. To the extent, if any, that the total compensation is increased in accordance with the Agreement, Contractor will, upon request of City, cause the amount of the bonds to be increased accordingly and will promptly deliver satisfactory evidence of such increase to City. To the extent available, the bonds shall further provide that no change or alteration of the Agreement (including, without limitation, an increase in the total compensation, as referred to above), extensions of time, or modifications of the time, terms, or conditions of payment to Contractor, will release the surety. If Contractor fails to furnish any required bond, City may terminate this Agreement for cause.

6.4 Surety Qualifications. Only bonds executed by an admitted surety insured, as defined by Code of Civil Procedure Section 995.120 will be accepted. The surety must be a California-admitted surety with a sfactory to City. If a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to City.

7. STATUS OF CONTRACTOR
Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of City. Contractor will be under the control of City only as to the result to be accomplished but will consult with City as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of City for any purposes.

The payment made to Contractor pursuant to the Agreement will be the full and complete compensation to which Contractor is entitled. City will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Contractor or any agent, employee, or election, City may deduct
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9. OTHER CONTRACTORS
The City reserves the right to employ other Contractors in connection with the Services.

10. INDEMNIFICATION
Contractor agrees to defend (with counsel approved by the City), indemnify, and hold harmless the City and its officers, elected and appointed officials, employees and volunteers from and against all claims, damages, losses and expenses including attorney s fees arising out of the performance of the work described herein caused by any negligence, recklessness, or willful misconduct of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable.

California Civil Code section 2782.8),
then, and only to the extent required by California Civil Code Section 2782.8, which is fully incorporated relate to the negligence, recklessness, or willful misconduct of the Contractor, and, upon Contractor The parties expressly agree that any payment, attorneys fee, costs or expense City incurs or makes to or - program is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement.

11. INSURANCE
Contractor will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "AApproved Surplus Line Insurers OR an alien non-admitted insurer listed by the National Association of Insurance Commissioners (NAIC) latest quarterly listings report.

11.1 Coverages and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless Risk Manager or City Manager approves a lower amount. These minimum 65 666555 of 4444555777
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The full limits available to the named insured shall also be available and applicable to the City as an additional insured.

11.1.1 Commercial General Liability (CGL) Insurance.
including personal & advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

11.1.2 Automobile Liability. (if the use of an automobile is involved for Contractor's work for City). $2,000,000 combined single-limit per accident for bodily injury and property damage.

11.1.4 Professional Liability.
with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work.

11.2 Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions:

11.2.1 The City will be named as an additional insured on Commercial General Liability which shall provide primary coverage to the City.

11.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage.

11.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to City.

11.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance coverages, then City will have the option to declare Contractor in breach or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by City to obtain or maintain insurance and City may collect these 66 666666 of 4444555777
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payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement.

11.5 Submission of Insurance Policies. City reserves the right to require, at any time, complete and certified copies of any or all required insurance policies and endorsements.

12. BUSINESS LICENSE
Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time.

14. NOTICES
The name of the persons who are authorized to give written notice or to receive written notice on behalf of City and on behalf of Contractor under this Agreement are:

For City: For Contractor:

Name Eddie Wills Name Parker Yocum
Title Project Assistant Title
Dept PW Trans Address 320 State Pl
Escondido CA 92029
Address City of Carlsbad Phone 951-760-1945
405 Oak Ave Carlsbad CA 92008 Email parker@pcctriphazardremoval Phone 442-359-9650 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address.

Yes No

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17. CALIFORNIA AIR RESOURCES BOARD (CARB) ADVANCED CLEAN FLEETS REGULATIONS -duty package
delivery vehicles operated in California may be subject to the California Air Resources Board (CARB) Advanced Clean Fleets regulations. Such vehicles may therefore be subject to requirements to reduce emissions of air pollutants. For more information, please visit the CARB Advanced Clean Fleets webpage at https://ww2.arb.ca.gov/our-work/programs/advanced-clean-fleets. 18. DISCRIMINATION, HARASSMENT, AND RETALIATION PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination, harassment, and retaliation.

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24. NO ATTORNEYS FEES AND COSTS.

25. [OMITTED]

27. THIRD PARTY RIGHTS
Nothing in this Agreement should be construed to give any rights or benefits to any party other than the City and Contractor.
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IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first written above.

By: SHERRY FREISINGER, City Clerk
(sign here) By:

APPROVED AS TO FORM:

CINDIE K. McMAHON, City Attorney
By: _____________________________
Assistant City Attorney
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EXHIBIT A

SCOPE OF SERVICES AND FEE
Contractor shall perform the following services for the City (collectively, the "Services") to the City's satisfaction:

Pre-Project:

Initial kick-off meeting: Contractor shall meet with City staff to go over project objectives, expectations and review project locations.

GIS Integration preparation: Contractor shall verify' data requirements for ESRI Shapefile / Geodatabase formats for eventual incorporation to City GIS.

Project Scheduling: Contractor shall develop a detailed schedule of inspection and maintenance activities with priority given to high-traffic or high-risk areas.

Location and Identification:

Contractor shall systematically survey pre-determined areas and adjacent. sidewalks to identify all vertical displacements ranging from ¼" to 2".

Contractor shall identify and flag any offsets exceeding 2" for alternative solutions, documenting their locations for future efforts.

Contractor shall update the City's GIS system with initial findings for on-going tracking.

Measure, Document and Photograph:

Contractor shall utilize measurement tools to record displacement heights to one-fourth (1/4) of an inch and capture linear footage for each potential repair.

Contractor shall take pre-maintenance photographs to provide clear evidence of identified areas for repair.

Contractor shall record GPS coordinates and property details for each location.

Review Data with City Staff:

Contractor shall deliver a comprehensive inspection report, including GIS data and a priority list of identified areas of repair.

Contractor shall collaborate with City staff to determine remediation priorities based on severity, location, and budgetary constraints.

Concrete Repair (Slicing):

Contractor shall apply horizontal slicing method to remove displaced concrete while preserving existing sidewalk structure.

Contractor shall ensure all repairs meet ADA compliance standards, achieving a smooth, uniform surface with a 1: 12 slope.

Contractor shall capture post-maintenance measurements and photographs to document completed work.

Document Repairs:

Contractor shall update GIS data with details of completed repairs, including remediation dates, measurements and photographs.

Contractor shall provide a complete record of repaired locations for integration into the City's GIS and asset management systems.

Review and Report:

Contractor shall attend weekly progress meetings with City staff.

Contractor shall submit bi-Monthly progress reports summarizing work, project progress, and any challenges encountered.
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Contractor shall convene regular meetings and provide and collaborate on presentations with City staff to review progress, discuss findings and address feedback.

Project Completion and Final Reporting:

Contractor shall deliver a final executive summary report for all completed work, including a comparison of planned vs achieved outcomes.

Contractor shall provide GIS data detailing all repairs and areas identified for future attention.

Contractor shall conduct a project review meeting for final deliverables and lessons learned for future maintenance programs.

Unit Pricing (First Year):

Item Item Description Unit of Measure Unit Price
1 Sidewalk Assessment Services Sidewalk-Mile $220.00
2 Slicing Repairs Inch-Foot $39.95

MAXIMUM AGREEMENT COST
Concrete Sidewalk Inspection and Repair Services
(at a maximum 3% CPI)
Term Agreement year Pavement
Zone(s)
Sidewalk Miles
to Survey
Estimated Cost for
Survey and Slicing
Repairs
1 FY 2026-27 1&2 190 $552,321
2 (option) FY 2027-28 3 131 $392,235
3 (option) FY 2028-29 4 146 $450,262
4 (option) FY 2029-30 5 112 $363,942
5 (option) FY 2030-31 6 175 $565,384
TOTALS 754 $2,324,144
Annual Averages 151 $464,829
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EXHIBIT A

ZONE MAP
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EXHIBIT B

Name of Contractor: Southern California Precision Concrete dba Precision Concrete Cutting DIR Registration Number: 1000003322
DIR Registration Expiration: June 30, 2026
Contractor further certifies:

1. Contractor shall maintain a current DIR registration for the duration of the Project.

Signature: Date: Name: Ronald William Durna, Jr. Title: President 74 7774444 of 4444555777
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NOTICE OF CONTRACT PRICING EXTENSION
City of Laguna Beach August 7, 2026
To whom it may concern,
Precision Concrete Cutting would like to confirm that we will extend the City of Laguna Beach the same pricing and terms as outlined in the Maintenance Services Agreement, MSA26-4061TRAN, currently held with the City of Carlsbad. This includes all applicable rates for sidewalk assessment and trip hazard repair services as specified in the agreement. We are committed to providing the City of Laguna Beach with the same level of service and competitive pricing established under this contract as we plan the next phase of citywide sidewalk repairs.

Parker Yocum, President
951-760-1945
Attachment 4
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STAFF REPORT
Meeting Date:

September 22, 2026

CONSENT

CALENDAR
14 SUBJECT: APPROVE PREQUALIFIED BIDDERS LIST AND AUTHORIZE ADVERTISEMENT FOR BIDS FOR THE FIRE STATION NO. 4 REPLACEMENT RECOMMENDATION: It is recommended that the City Council:

1. Approve the list of Prequalified bidders and authorize advertisement for bids for the Fire Station No. 4 Replacement; and

2. Find that the approval of a list of prequalified bidders and the authorization for bids does not constitute a "project" for purposes of the California Environmental Quality Act pursuant to section 15378(b)((5) of the CEQA Guidelines.

DISCUSSION
The Capital Improvement Program includes a project for replacement of Fire Station No. 4. The scope includes a new two-story building, with site improvements, furniture, fixtures and equipment. The Project design plans and specifications will be ready for bid advertisement on October 2, 2026, following approval of the prequalified bidders list. The prequalification process allowed interested bidders to submit qualification materials to the City for review and approval. Only contractors that met base criteria and demonstrated recent relevant experience with successful completion of fire station(s) or other public safety facilities of similar scope and site improvements over 5,000SF (building), with at least (2) two located in Southern California were deemed qualified to submit a bid for this Project.

The Project prequalification package was advertised on PlanetBids on July 17, 2026, and the submittal deadline was on August 14, 2026. Eleven submittals were received. Staff reviewed the submittal packages and determined seven contractors meet the prequalification requirements pursuant to the scoring set forth in the prequalification package. The summary of the prequalification results is as follows:

Company Name Location Qualified
AMG & Associates Santa Clarita Yes
Barnhart-Reese Construction Inc. San Diego Yes
Chambers, Inc. dba Roof Construction Escondido No
Danny Letner Inc Orange No
EC Constructors, Inc Lakeside Yes
Elegant Construction, Inc Irvine No
Empyrean Plumbing Inc Riverside No
Ford E.C., Inc Los Angeles Yes
PCN 3 Los Alamitos Yes
SJ Amoroso Construction Co, LLC Irvine Yes
Swinerton Builders Santa Ana Yes
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APPROVE PREQUALIFIED BIDDERS LIST AND AUTHORIZE ADVERTISEMENT FOR BIDS FOR THE FIRE STATION NO. 4 REPLACEMENT
September 22, 2026

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FINANCIAL ANALYSIS
There is no fiscal impact associated with the recommended actions.

ENVIRONMENTAL ANALYSIS
The recommended action consists of organizational or administrative activities of the City that will not result in a direct or indirect physical change in the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21065; 14 CCR Section 15378(b)(5)).

ATTACHMENTS

1. None
Submitted By: Thomas Perez Approved: .David A Kiff
Thomas Perez, Acting Director of
Public Works & Utilities
Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Thomas Perez, Acting Director of Public Works
& Utilities
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STAFF REPORT
Meeting Date:

September 22, 2026

CONSENT

CALENDAR
15 SUBJECT: REPLACE THE CITY OF LAGUNA BEACH’S ENGINEERING COMMITTEE

REPRESENTATIVE FOR THE SOUTH ORANGE COUNTY WASTEWATER

AUTHORITY
RECOMMENDATION: It is recommended that the City Council:

1. Appoint Acting Director of Public Works & Utilities, Thomas Perez, to serve as the Engineering Committee Representative for the South Orange County Wastewater Authority for the City of Laguna Beach.

2. Determine that the proposed action does not constitute a “project” for purposes of the California Environmental Quality Act.

SUMMARY OF THE MATTER
The City of Laguna Beach appoints a technical employee of the City to act as representative on the South Orange County Wastewater Authority (“SOCWA”) Engineering Committee. Presently, former Director of Public Works & Utilities, Mark McAvoy is the City of Laguna Beach representative. City staff recommend that the City Council replace Mr. McAvoy with Acting Director of Public Works & Utilities, Thomas Perez as the Engineering Committee representative for the City of Laguna Beach.

SOCWA’s Engineering Committee is an advisory panel formed by the Board of Directors to coordinate, advise, and oversee engineering and technical matters. The Board includes Councilmember Whalen, with Councilmember Rounaghi serving as his alternate. The Engineering Committee is comprised of technical employees from SOCWA member agencies and receives support from SOCWA staff. Its primary duties include conducting an annual review of SOCWA’s capital budgets and assisting staff with the development, review, analysis, and planning of technical, engineering, and capital projects. .

FINANCIAL ANALYSIS
The recommended action will have no financial impact.

ENVIRONMENTAL ANALYSIS
The recommended action consists of organizational or administrative activities of the City that will not result in a direct or indirect physical change in the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; 14 CCR Section 15378(b)(5).).

Submitted By: . Approved: .David A Kiff
Thomas Perez, Acting Director of
Public Works & Utilities
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
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REPLACE THE CITY OF LAGUNA BEACH’S ENGINEERING COMMITTEE

REPRESENTATIVE FOR THE SOUTH ORANGE COUNTY WASTEWATER AUTHORITY September 22, 2026

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Thomas Perez, Acting Director of Public Works
& Utilities
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STAFF REPORT
Meeting Date:

September 22, 2026

CONSENT
16 SUBJECT: PARTICIPATION IN THE MEDI-CAL INTERGOVERNMENTAL TRANSFER RATE RANGE PROGRAM FOR CALENDAR YEAR 2025
RECOMMENDATION: It is recommended that the City Council:

1. Authorize the Mayor to execute the Health Plan-Provider Intergovernmental Transfer Rate Range Program Agreement with CalOptima Health for the City's participation in the Medi-Cal Intergovernmental Transfer Variable Rate Range Program for Calendar Year 2025; and

2. Find that the recommended action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15060(c)(2) and 15060(c)(3), as it will not result in a direct or reasonably foreseeable physical change to the environment.

SUMMARY OF THE MATTER
The Medi-Cal Intergovernmental Transfer Variable Rate Range Program allows eligible governmental entities, including the Laguna Beach Fire Department, to leverage local funds to obtain federal Medi-Cal funding and recover a portion of otherwise unreimbursed costs associated with providing emergency ambulance services to Medi-Cal beneficiaries. In its first year of participation, the City received $340,488 in program payments against $143,706 in expenditures, resulting in net cost recovery of approximately $196,782.

Following the City's successful participation in the Calendar Year 2024 program, staff submitted to participate for the January 1 through December 31, 2025 service period and executed the required Intergovernmental Agreement with the California Department of Health Care Services (Attachment 2).

Under the agreement, the City will contribute an estimated $106,638 toward the non-federal share of MediCal managed care payments. The contribution is subject to a 20% DHCS administrative assessment of approximately $21,328, resulting in a total estimated City expenditure of $127,966. DHCS will use the City's contribution to obtain corresponding federal funding, which will be distributed through CalOptima Health.

The proposed CalOptima Health agreement (Attachment 1) represents the final agreement necessary to complete the City's participation for Calendar Year 2025 and establishes the terms for distributing the City's share of the resulting IGT Rate Increase payments. CalOptima Health will reimburse the City's initial contribution and distribute the City's applicable share of the remaining program funds, less a separate two percent administrative fee retained by CalOptima Health. Although the City's final payment cannot be determined until DHCS establishes the funding available for the program round, the Fiscal Year 2026-27 Adopted Budget estimates $295,000 in program revenue. Based on the City's Calendar Year 2024 experience, staff anticipates that participation will again result in a positive net financial return to the City and provide additional recovery of otherwise unreimbursed emergency ambulance service costs.

Funding for the City's estimated contribution and DHCS administrative assessment is included in the Fire Department's Fiscal Year 2026-27 Adopted Budget. Therefore, no additional appropriation or budget 1111 of 44448881111

PARTICIPATION IN THE MEDI-CAL INTERGOVERNMENTAL TRANSFER RATE RANGE PROGRAM FOR CALENDAR YEAR 2025
September 22, 2026

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amendment is required. Staff recommends that the City Council authorize the Mayor to execute the CalOptima Health agreement to complete the City's participation in the Calendar Year 2025 program.

DISCUSSION
Background
The California Department of Health Care Services, in coordination with CalOptima Health, administers the Medi-Cal Intergovernmental Transfer Variable Rate Range Program. The program allows eligible governmental entities to voluntarily contribute local funds toward the non-federal share of Medi-Cal managed care payments. DHCS uses these contributions to obtain corresponding federal financial participation, which is distributed through participating Medi-Cal managed care plans.

The Laguna Beach Fire Department provides emergency ambulance transportation services to Medi-Cal beneficiaries; however, Medi-Cal reimbursement does not fully cover the City's cost of providing these services. Participation in the program provides the City an opportunity to recover a portion of these otherwise unreimbursed costs.

On September 23, 2025, the City Council adopted Resolution No. 25.076 approving the City's participation in the program for Calendar Year 2024 and authorizing the agreements and financial transactions necessary to participate.

Calendar Year 2025 Participation
Following the City's successful participation in the Calendar Year 2024 program, the City expressed its interest in participating for the January 1 through December 31, 2025 service period. The City subsequently executed Intergovernmental Agreement No. IGT-25-0015 with DHCS, which establishes the terms of the City's transfer of funds for the Calendar Year 2025 program.

Under the DHCS Agreement, the City will contribute an estimated $106,638 toward the non-federal share of Medi-Cal managed care payments. The estimated contribution is based on Medi-Cal member enrollment and is subject to reconciliation against actual enrollment for the 2025 service period. If reconciliation results in a higher required contribution, the City will be responsible for the additional amount; if the required contribution is lower, DHCS will return the unexpended funds to the City.

The City's contribution is also subject to a 20% DHCS administrative assessment fee. Based on the current estimated contribution, the assessment fee is approximately $21,328, resulting in a total estimated City expenditure of $127,966.

DHCS will use the City's contribution to obtain corresponding federal financial participation and distribute the resulting Medi-Cal managed care payments to CalOptima Health.

CalOptima Health Plan-Provider Agreement
As the final agreement necessary for the City's Calendar Year 2025 participation, CalOptima Health has provided the City with a Health Plan-Provider Intergovernmental Transfer Rate Range Program Agreement for City Council approval. The Agreement is effective September 1, 2026, and establishes the terms for 2222 of 44448881111

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September 22, 2026

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distributing the City's applicable share of the IGT Rate Increase payments received by CalOptima Health from DHCS.

The two percent administrative fee under the CalOptima Health Agreement is separate from the 20% DHCS administrative assessment described above. The DHCS assessment applies to the City's initial IGT contribution, while CalOptima Health retains its two percent administrative fee from the IGT Rate Increase payments before distributing the City's applicable share.

Under the Agreement, CalOptima Health will reimburse the City's initial contribution and distribute the City's applicable share of the remaining IGT Rate Increase payments, less a two percent administrative fee retained by CalOptima Health. Payments received by the City compensate for emergency ambulance services provided to CalOptima Health Medi-Cal members between January 1 and December 31, 2025, and are to be used to offset costs exceeding the fee-for-service reimbursement received for those services.

FINANCIAL ANALYSIS
The City's estimated contribution for Calendar Year 2025 is $106,638. In addition, DHCS will assess a 20% administrative fee of approximately $21,328, resulting in a total estimated City expenditure of $127,966.

Funding for these expenditures is included in the Fire Department's adopted Fiscal Year 2026-27 Adopted Budget; therefore, no additional appropriation or budget amendment is required. The City’s Fiscal Year 2026-27 Adopted Budget estimates $295,000 in revenue for this program.

In return, the City will receive reimbursement of its initial contribution, along with its share of the additional IGT Rate Increase funding, less a two (2) percent administrative fee retained by CalOptima Health. The total amount of funding available through the program is determined by DHCS and may vary by program round; therefore, the City's exact cost recovery for Calendar Year 2025 cannot be determined at this time.

However, in Calendar Year 2024, the City's first year of participation, the City received $340,488 in total payments against $143,706 in program expenditures, resulting in net cost recovery of approximately $196,782. Revenues received through the program will offset otherwise unreimbursed costs associated with providing emergency ambulance services to Medi-Cal beneficiaries.

ENVIRONMENTAL ANALYSIS
The recommended action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15060(c)(2) and 15060(c)(3). Specifically, the action will not result in a direct or reasonably foreseeable indirect physical change to the environment and does not constitute a project as defined under CEQA. The action consists of approving an agreement related to the City's participation in the Medi-Cal IGT VRRP and does not involve construction or physical improvements.

ATTACHMENTS

1. Health Plan-Provider Intergovernmental Transfer Rate Range Program Agreement with CalOptima Health

2. Intergovernmental Agreement No. IGT-25-0015 Regarding Transfer of Public Funds with the California Department of Health Care Services
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September 22, 2026

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Submitted By:
. Approved: .David A Kiff
Niko King, Fire Chief Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Kirsten Gallacher, Senior Administrative
Analyst
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HEALTH PLAN-PROVIDER INTERGOVERNMENTAL TRANSFER

RATE RANGE PROGRAM AGREEMENT
This Health Plan-Provider Intergovernmental Transfer Rate Range Program Agreement (“Agreement”) is effective September 1, 2026 (“Effective Date”), by and between Orange County Health Authority, a California local agency doing business as CalOptima Health (“PLAN”), and the City of Laguna Beach, a California municipal corporation operating through its fire department (“PROVIDER”). PLAN and PROVIDER may each be referred to herein as a “Party” and collectively as the “Parties”.

RECITALS
WHEREAS, PLAN is a county organized health system formed pursuant to California Welfare and Institutions Code § 14087.54 and Orange County Ordinance No. 3896 (as amended by Ordinance Nos. 00-8, 05-008, 06-012, 09-001, 11-013, 14-002 and 16-001).

WHEREAS, PLAN is party to a Medi-Cal managed care contract with the California Department of Health Care Services (“DHCS”), entered into pursuant to Welfare and Institutions Code § 14087.3, under which PLAN arranges and pays for the provision of covered Medi-Cal health care services to eligible members residing in Orange County and enrolled in PLAN’s MediCal program (“Members”).

WHEREAS, PROVIDER is an emergency transport provider that provides transportation on a non-contract basis, including to Members.

WHEREAS, PLAN and PROVIDER desire to enter into this Agreement to provide Intergovernmental Transfer Medi-Cal Managed Care Rate Range Increases (“IGT Rate Increases”) from PLAN to PROVIDER to maintain the availability of Medi-Cal health care services to Medi-Cal beneficiaries, as set forth in the Agreement.

NOW, THEREFORE, PLAN and PROVIDER, in consideration of the promises and the mutual covenants herein stated, hereby agree as follows:

AGREEMENT

1. IGT Rate Range Increases
A. Payment
Should PLAN receive any IGT Rate Increases from DHCS where the nonfederal share is funded by PROVIDER specifically pursuant to the provisions of the Intergovernmental Agreement Regarding Transfer of Public Funds (Contract # IGT-25-0015) between PROVIDER AND DHCS, (“Intergovernmental Agreement”) with a term of January 1, 2025 through June 30, 2028 for IGT Rate Increases, PLAN shall pay to PROVIDER the amount of the IGT Rate Increases received from DHCS, in accordance with Section 1.E below regarding the form and timing of Local MediCal Managed Care Rate Range (“Local Range”) IGT payments. Local Range IGT payments paid to PROVIDER shall not replace or supplant any other amounts paid or payable to PROVIDER by PLAN.
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B. PLAN Administrative Fee
i. PLAN shall retain two percent (2.0%) of the IGT Rate Increase payments to PROVIDER (after reimbursing PROVIDER’s initial contribution to the IGT Rate Increase (“Administrative Fee”), prior to disbursing Local Range IGT payments to PROVIDER. PLAN will expend the Administrative Fee to cover expenses for administering the IGT payments.

PROVIDER’s share of the IGT Rate Increase funds shall be calculated based on PROVIDER’s proportionate share of the Local Range IGT Payment made by PLAN in Orange County to the respective funding entities.
ii. Any amounts referenced in this Agreement are estimates. The Parties understand and agree that the total amount of the IGT Rate Increases paid by DHCS to PLAN may fluctuate as a result of Member enrollment in PLAN’s Medi-Cal program and the number of entities participating in the IGT program. The Parties further understand and agree that any such fluctuations will likewise affect the amount to be retained by PLAN and the amount payable to PROVIDER by the same percentage as the variance in the IGT Rate Increases, if any. iii. PLAN will ultimately not retain any other portion of the IGT Rate Increases received from DHCS other than the Administrative Fee.

C. Conditions for PROVIDER Receiving Local Range IGT Payments As a condition for receiving Local Range IGT payments, PROVIDER shall, as of the date the particular Local Range IGT Payment is due:
i. continue to provide emergency transport services to Members promptly and in a manner that ensures access to care consistent with PROVIDER’s regular business practices for providing such services; and
ii. not discriminate against Members or in any way, including based on type of insurance, or impose limitations on the acceptance of Members for care or treatment that are not imposed on other patients of PROVIDER.

D. Schedule and Notice of Transfer of Non-Federal Funds i. PROVIDER shall provide PLAN with a copy of the schedule regarding the transfer of funds to DHCS referred to in the Intergovernmental Agreement within fifteen (15) calendar days of establishing such a schedule with DHCS. Additionally, PROVIDER shall notify PLAN in writing within seven (7) calendar days prior to any changes to an existing schedule with DHCS, including, but not limited to, changes to the amounts specified therein. ii. PROVIDER shall provide PLAN with written notice of the amount and date of the transfer within seven (7) calendar days after funds have been transferred by PROVIDER to DHCS for use as the nonfederal share of any IGT Rate Increases. 666 of 44448881111

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E. Form and Timing of Payments
PLAN agrees to pay Local Range IGT Payments owed to PROVIDER under this Agreement in the following form and according to the following schedule:
i. PLAN agrees to pay the Local Range IGT payments to PROVIDER using the same mechanism through which compensation and payments are normally paid by PLAN to PROVIDER (e.g., electronic transfer).
ii. PLAN will pay the Local Range IGT payments to PROVIDER no later than thirty (30) calendar days after receipt of the IGT Rate Increases from DHCS, unless PLAN cannot not make the payment until a later date based on no fault of PLAN, in which case PLAN will pay the Local Range IGT payment as soon as reasonably practicable.

F. Consideration
i. As consideration for the Local Range IGT payments, PROVIDER shall use the Local Range IGT payments solely as follows:
a. The Local Range IGT payments are compensation for emergency ambulance services rendered to Members by PROVIDER between January 1, 2025, and December 31, 2025 (“Payment Period”), and shall be used by PROVIDER solely to fund the costs that exceed the fee-for-service rates paid by PLAN for Medi-Cal-covered services provided to Members during the Payment Period.

To the extent that total payments received by PROVIDER under this Agreement exceed the cost of Medi-Cal-covered services provided to Members by PROVIDER during the Payment Period, the remaining Local Range IGT payment amounts shall constitute an overpayment, and PROVIDER shall return those funds to PLAN pursuant to Section 1.K. ii. Both Parties agree that none of these funds, either originally from PROVIDER or the federal matching funds will be recycled back to PROVIDER’S general fund, the State of California (“State”), including DHCS, or any other intermediary organization.

Payments made by Plan to PROVIDER under the terms of this Agreement constitute patient care revenues.

G. Oversight and Compliance Responsibilities
i. PLAN’s oversight responsibilities regarding PROVIDER’s use of the Local Range IGT payments are limited to this section. PLAN shall request, within thirty (30) calendar days after the end of each State fiscal year in which Local Range IGT payments were transferred to PROVIDER, a written confirmation that states whether and how PROVIDER complied with the provisions set forth in Section 1.F. In each instance, PROVIDER shall provide PLAN with written confirmation of compliance within thirty (30) calendar days of PLAN’s request. ii. PROVIDER shall ensure at all times that its use of Local Range IGT payments received under this Agreement complies with the terms of the Agreement, applicable laws, and Centers for Medicare & Medicaid Services (“CMS”) and DHCS requirements. 777 of 44448881111

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H. Cooperation Among Parties
i. Should disputes or disagreements arise regarding the ultimate computation or appropriateness of any aspect of the Agreement, including the Local Range IGT payments, PROVIDER and PLAN agree to meet and confer in good faith and cooperate in all respects to resolve the dispute and support and preserve the Local Range IGT payments to the full extent possible on behalf of the safety net in Orange County.
ii. If the Parties are unable to resolve any dispute arising out of or relating to this Agreement under Section 1.H.ii, either Party may submit the dispute for resolution exclusively through confidential, binding arbitration, instead of through trial by court or jury, in Orange County, California. The arbitration will be conducted by Judicial Arbitration and Mediation Services (“JAMS”) in accordance with the commercial dispute rules then in effect for JAMS; provided, however, that this Agreement shall control in instances where it conflicts with JAMS’s (or the applicable arbitration service’s) rules. The arbitration shall be conducted on an expedited basis by a single arbitrator. In making decisions about discovery and case management, it is the Parties’ express agreement and intent that the arbitrator at all times promote efficiency without denying either Party the ability to present relevant evidence. In reaching and issuing decisions, the arbitrator shall have no jurisdiction to make errors of law and/or legal reasoning or to give a remedy or award damages that would not be available to such prevailing Party in a court of law, nor will the arbitrator have the authority to award punitive, exemplary, or treble damages. The Parties shall share the costs of arbitration equally, and each Party shall bear its own attorneys’ fees and costs. iii. With the exception of any dispute that under applicable laws may not be settled through arbitration, arbitration under Section I.H.ii is the exclusive method to resolve a dispute between the Parties arising out of or relating to this Agreement that is not resolved through the meet-and-confer processes. Notwithstanding the foregoing, either Party may institute proceedings in a federal or state court of competent jurisdiction to seek temporary or preliminary injunctive relief to enforce the status quo in any dispute relating to this Agreement pending the resolution of that dispute through arbitration.
iv. PROVIDER acknowledges that Government Code § 911.2 requires a claim against a government entity to be brought no later than one (1) year after the accrual of the cause of action. As such, the Parties agree that arbitration under Section 1.H.ii must be initiated within one (1) year of the earlier of the date the dispute arose, was discovered, or should have been discovered with reasonable diligence; otherwise, the dispute will be deemed waived, and the complaining Party shall be barred from initiating arbitration or other proceedings related to the dispute, including any civil action in state or federal court. The deadline to file arbitration shall not be subject to waiver, tolling, alteration, or modification of any kind or for any reason other than fraud.
v. By agreeing to binding arbitration as set forth in Section 1.H.ii, the Parties acknowledge that they are waiving certain substantial rights and protections which otherwise may be available if a dispute between them was determined by litigation in a court, including the right to a jury trial, attorneys’ fees, and certain rights of appeal. 888 of 44448881111

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I. Reconciliation and Overpayment
i. Within one hundred twenty (120) calendar days after the end of each PLAN fiscal year in which PLAN made Local Range IGT payments to PROVIDER, PLAN shall perform a reconciliation of the Local Range IGT payments transmitted to the PROVIDER during the preceding fiscal year, including requesting PROVIDER to furnish proof of compliance with this Agreement and applicable laws, to ensure that the supporting amount of IGT Rate Increases were received by PLAN from DHCS.
ii. PROVIDER agrees to return to PLAN any overpayment of Local Range IGT payments made in error to PROVIDER within thirty (30) calendar days after receipt from PLAN of a written notice of the overpayment error, unless PROVIDER submits a written objection to PLAN. Any such objection shall be resolved in accordance with the dispute resolution process set forth in Section 1.H.
iii. PROVIDER shall report to PLAN any overpayment received under this Agreement and identified by PROVIDER and to repay such overpayment to PLAN within sixty (60) days of such identification by PROVIDER. PROVIDER acknowledges and agrees that, if PLAN determines that an amount has been overpaid or paid in duplicate, or that funds were paid which were not due under this Agreement to PROVIDER, PLAN may recover such amounts from PROVIDER by recoupment or offset from current or future amounts due from PLAN to PROVIDER under any contract between the Parties, after giving notice and an opportunity to return/pay such amounts.
iv. The reconciliation process established under this section is distinct from the indemnification provisions set forth in Section 1.J below. PLAN agrees to transmit to the PROVIDER any underpayment of Local Range IGT payments within thirty (30) calendar days of PLAN’s identification of such underpayment.

J. DHCS Payment and Indemnification
i. PROVIDER agrees to and acknowledges the following: (1) PLAN has no obligation to make any payments hereunder until PLAN has received IGT Rate Increases from DHCS; (2) PLAN is not responsible for DHCS payments to PLAN, including any mathematical calculations made by DHCS, and (3) PLAN is not responsible for the timing of the payments from DHCS to PLAN (including the conditions precedent to the timing of such payments, which includes the timing of DHCS submission to CMS and/or CMS review and approval). In addition, PLAN and PROVIDER agree and acknowledge that nothing herein is intended to create an obligation on the part of PLAN to agree to delays in capitation payment(s) from DHCS in order to accommodate payments under this Agreement.
ii. Each Party agrees to defend, indemnify, and hold each other and DHCS harmless with respect to any claims, costs, damages and expenses, including reasonable attorneys’ fees, that are related to or arise out of (i) the negligent or willful performance or non-performance by the indemnifying Party of any functions, duties, or obligations of the Party under this Agreement, or (ii) a Party’s violation of applicable law. 999 of 44448881111

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2. Term and Termination
A. This agreement shall commence on the Effective Date and shall expire on June 30, 2028.

B. Either Party may terminate this Agreement upon thirty (30) days’ prior written notice to the other Party if the other Party materially breaches a provision of the Agreement and does not cure the breach within the thirty (30)-day notice period.

C. Either Party may terminate this Agreement without cause upon sixty (60) days’ prior written notice to the other Party.

3. Miscellaneous Provisions
A. Any failure of a Party to insist upon strict compliance with any provision of this Agreement shall not be deemed a waiver of such provision or any other provision of this Agreement. To be effective, a waiver must be in writing and signed and dated by the Parties.

B. Neither Party may assign this Agreement, either in whole or in part, without the prior written consent of the other Party.

C. This Agreement may only be amended in a writing signed by both Parties.

D. Any notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth below in this Section 3.D. Any notice not related to termination of this Agreement may be sent electronically to the other Party’s e-mail address listed in this section or such other address as may be provided by a Party to the other Party from time to time.

If notice relates to termination of this Agreement, such notice shall be sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service that delivers to the noticed destination and provides proof of delivery to the sender. All notices sent to the addresses set forth in this section shall be effective (i) when first received by the Party, or (ii) upon refusal of delivery by the Party to which it was sent. Any Party whose address changes during the term of the Agreement shall promptly notify the other Party in writing. If PLAN cannot complete notice under this Section 3.D because PROVIDER’s addresses are incorrect and/or PROVIDER failed to notify PLAN of the change, PLAN shall provide notice under this Section

3.D, including for Agreement termination, by making commercially reasonable efforts to deliver notice in any manner reasonably calculated to give PROVIDER actual notice, and notice shall be deemed delivered upon the completion of those efforts.

If to PLAN: 505 City Parkway West Orange, CA 92868
Attention: Strategic Development
If to PROVIDER: 505 Forest Avenue Laguna Beach, CA 92651 E. Each Party shall be excused from performance hereunder for any period that it is prevented from meeting the terms of this Agreement as a result of a catastrophic occurrence or natural disaster, including an act of war and excluding labor disputes (each a “Force Majeure 1111000 of 44448881111

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Event”). A Party invoking this clause shall provide the other Party with prompt written notice of any delay or failure to perform that occurs by reason of a Force Majeure Event. If the Force Majeure Event continues for a period of ten (10) days, the Party unaffected by the Force Majeure Event may terminate this Agreement upon notice to the other Party.

F. Each Party and any of its agents or employees of PROVIDER shall act in an independent capacity and not as officers, employees, or agents of the other Party under this Agreement. PROVIDER’s relationship with PLAN under this Agreement is that of an independent contractor. PROVIDER’s personnel performing services under this Agreement shall be at all times under PROVIDER’s exclusive direction and control and shall be employees and/or agents of PROVIDER. PROVIDER shall pay all wages, salaries, and other amounts due its employees in connection with this Agreement and shall be responsible for all reports and obligations respecting them, such as social security, income tax withholding, unemployment compensation, workers’ compensation, and similar matters.

G. This Agreement shall be governed by and construed in accordance with all laws of the State of California. Subject to the restrictions in Section 1.H, PROVIDER shall bring any and all legal proceedings against PLAN under this Agreement in California State courts in Orange County, California, unless mandated by law to be brought in federal court, in which case such legal proceeding shall be brought in the Central District Court of California.

H. If any provision of this Agreement is rendered invalid or unenforceable by appliable laws or is declared null and void by any court of competent jurisdiction, the remainder of the provisions hereof shall remain in full force and effect as though the invalid or unenforceable parts had not been included herein.

I. This Agreement, including its recitals and attachments, constitutes the entire agreement between the Parties and supersedes and terminates any previous agreements between the Parties. All prior or contemporaneous agreements, promises, negotiations or representations, either oral or written, relating to the subject matter and period governed by this Agreement not expressly set forth herein shall be of no further force, effect, or legal consequence after the Effective Date.

J. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which together shall be deemed one and the same instrument.

K. The persons executing this Agreement on behalf of the Parties warrant that they are duly authorized to execute this Agreement and that by executing this Agreement, the Parties are formally bound.
[signature page follows]
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SIGNATURES
PLAN: CalOptima Health
Date:

By: Yunkyung Kim, Chief Operating Officer
PROVIDER: City of Laguna Beach
Date: _____________
By: Mark Orgill, Mayor
ATTEST:
________________________________________________ Date: _____________ Ann Marie McKay, City Clerk
APPROVED AS TO FORM:
________________________________________________ Date: _____________ Megan Garibaldi, City Attorney
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CONTRACT # IGT-25-0015
1 Template Version - 1/2026

INTERGOVERNMENTAL AGREEMENT REGARDING

TRANSFER OF PUBLIC FUNDS
This Agreement is entered into between the CALIFORNIA DEPARTMENT OF HEALTH CARE SERVICES (“DHCS”) and CITY OF LAGUNA BEACH
(“GOVERNMENTAL FUNDING ENTITY”) with respect to the matters set forth below.

The parties agree as follows:

AGREEMENT

1. Transfer of Public Funds

1.1 The GOVERNMENTAL FUNDING ENTITY agrees to make a transfer of funds to DHCS pursuant to sections 14164 and 14301.4 of the Welfare and Institutions Code.

The amount transferred shall be based on the sum of the applicable rate category per member per month (“PMPM”) contribution increments multiplied by member months, as reflected in Exhibit

1. The GOVERNMENTAL FUNDING ENTITY agrees to initially transfer amounts that are calculated using the Estimated Member Months in Exhibit 1, which will be reconciled to actual enrollment for the service period of January 1, 2025 through December 31, 2025 in accordance with Sub-Section 1.3 of this Agreement. The funds transferred shall be used as described in SubSection 2.2 of this Agreement. The funds shall be transferred in accordance with the terms and conditions, including schedule and amount, established by DHCS.

1.2 The GOVERNMENTAL FUNDING ENTITY shall certify that the funds transferred qualify for Federal Financial Participation pursuant to 42 C.F.R. part 433, subpart B, and are not derived from impermissible sources such as recycled Medicaid payments, Federal money excluded from use as State match, impermissible taxes, and non-bona fide providerDocusign Envelope ID: 546A6953-B52A-8484-8081-EBD8FC600622 11113333 of 44448881111
CONTRACT # IGT-25-0015
2 Template Version - 1/2026
related donations. Impermissible sources do not include patient care or other revenue received from programs such as Medicare or Medicaid to the extent that the program revenue is not obligated to the State as the source of funding.

1.3 DHCS shall reconcile the “Estimated Member Months,” in Exhibit 1, to actual enrollment in HEALTH PLAN(S) for the service period of January 1, 2025 through December 31, 2025 using actual enrollment figures taken from DHCS records. Enrollment reconciliation will occur on an ongoing basis as updated enrollment figures become available.

Actual enrollment figures will be considered final two years after December 31, 2025. If reconciliation results in an increase to the total amount necessary to fund the nonfederal share of the payments described in Sub-Section 2.2, the GOVERNMENTAL FUNDING ENTITY agrees to transfer any additional funds necessary to cover the difference. If reconciliation results in a decrease to the total amount necessary to fund the nonfederal share of the payments described in Sub-Section 2.2, DHCS agrees to return the unexpended funds to the GOVERNMENTAL FUNDING ENTITY. If DHCS and the GOVERNMENTAL FUNDING ENTITY mutually agree, amounts due to or owed by the GOVERNMENTAL FUNDING ENTITY may be offset against future transfers.

2. Acceptance and Use of Transferred Funds

2.1 DHCS shall exercise its authority under section 14164 of the Welfare and Institutions Code to accept funds transferred by the GOVERNMENTAL FUNDING ENTITY pursuant to this Agreement as Intergovernmental Transfer (IGTs), to use for the purpose set forth in Sub-Section 2.2.

2.2 The funds transferred by the GOVERNMENTAL FUNDING ENTITY pursuant to Section 1 and Exhibit 1 of this Agreement shall be used to fund the non-federal share Docusign Envelope ID: 546A6953-B52A-8484-8081-EBD8FC600622 11114444 of 44448881111
CONTRACT # IGT-25-0015
3 Template Version - 1/2026
of Medi-Cal Managed Care actuarially sound capitation rates described in section 14301.4(b)(4) of the Welfare and Institutions Code as reflected in the contribution PMPM and rate categories reflected in Exhibit 1. The funds transferred shall be paid, together with the related Federal Financial Participation, by DHCS to HEALTH PLAN(S) as part of HEALTH PLAN(S)’ capitation rates for the service period of January 1, 2025 through December 31, 2025, in accordance with section 14301.4 of the Welfare and Institutions Code.

2.3 DHCS shall seek Federal Financial Participation for the capitation rates specified in Sub-Section 2.2 to the full extent permitted by federal law.

2.4 The parties acknowledge that DHCS will obtain any necessary approvals from the Centers for Medicare and Medicaid Services.

2.5 DHCS shall not direct HEALTH PLAN(S)’ expenditure of the payments received pursuant to Sub-Section 2.2.

3. Assessment Fee

3.1 DHCS shall exercise its authority under section 14301.4 of the Welfare and Institutions Code to assess a 20 percent fee related to the amounts transferred pursuant to Section 1 of this Agreement, except as provided in Sub-Section 3.2. GOVERNMENTAL FUNDING ENTITY agrees to pay the full amount of that assessment in addition to the funds transferred pursuant to Section 1 of this Agreement.

3.2 The 20-percent assessment fee shall not be applied to any portion of funds transferred pursuant to Section 1 that are exempt in accordance with sections 14301.4(d) or 14301.5(b)(4) of the Welfare and Institutions Code. DHCS shall have sole discretion to determine the amount of the funds transferred pursuant to Section 1 that will not be subject to a Docusign Envelope ID: 546A6953-B52A-8484-8081-EBD8FC600622 1111555 of 44448881111
CONTRACT # IGT-25-0015
4 Template Version - 1/2026
20 percent fee. DHCS has determined that $0.00 of the transfer amounts will not be assessed a 20 percent fee, subject to Sub-Section 3.3.

3.3 The 20-percent assessment fee pursuant to this Agreement is nonrefundable and shall be wired to DHCS simultaneously with the transfer amounts made under Section 1 of this Agreement. If at the time of the reconciliation performed pursuant to SubSection 1.3 of this Agreement, there is a change in the amount transferred that is subject to the 20-percent assessment in accordance with Sub-Section 3.1, then a proportional adjustment to the assessment fee will be made.

4. Amendments

4.1 No amendment or modification to this Agreement shall be binding on either party unless made in writing and executed by both parties.

4.2 The parties shall negotiate in good faith to amend this Agreement as necessary and appropriate to implement the requirements set forth in Section 2 of this Agreement.

5. Notices. Any and all notices required, permitted, or desired to be given hereunder by one party to the other shall either be sent via secure email or submitted in writing to the other party personally or by United States First Class, Certified or Registered mail with postage prepaid, addressed to the other party at the address as set forth below:

To the GOVERNMENTAL FUNDING ENTITY:

Niko King, Fire Chief
505 Forest Avenue
Laguna Beach, CA 92651
(949) 497-0381
[email protected]
With copies to:

Docusign Envelope ID: 546A6953-B52A-8484-8081-EBD8FC600622 1111666 of 44448881111
CONTRACT # IGT-25-0015
5 Template Version - 1/2026
Michelle Bannigan, Director of Finance
505 Forest Avenue
Laguna Beach, CA 92651
(949) 497-0307
[email protected]
To DHCS:

Vivian Beeck
California Department of Health Care Services
Capitated Rates Development Division
1501 Capitol Ave., MS 4413
Sacramento, CA 95814
[email protected]

6. Other Provisions

6.1 This Agreement contains the entire Agreement between the parties with respect to the Medi-Cal payments described in Sub-Section 2.2 of this Agreement that are funded by the GOVERNMENTAL FUNDING ENTITY, and supersedes any previous or contemporaneous oral or written proposals, statements, discussions, negotiations or other agreements between the GOVERNMENTAL FUNDING ENTITY and DHCS relating to the subject matter of this Agreement. This Agreement is not, however, intended to be the sole agreement between the parties on matters relating to the funding and administration of the MediCal program. This Agreement shall not modify the terms of any other agreement, existing or entered into in the future, between the parties.

6.2 The non-enforcement or other waiver of any provision of this Agreement shall not be construed as a continuing waiver or as a waiver of any other provision of this Agreement.

6.3 Sections 2 and 3 of this Agreement shall survive the expiration or termination of this Agreement.

Docusign Envelope ID: 546A6953-B52A-8484-8081-EBD8FC600622 1111777 of 44448881111
CONTRACT # IGT-25-0015
6 Template Version - 1/2026

6.4 Nothing in this Agreement is intended to confer any rights or remedies on any third party, including, without limitation, any provider(s) or groups of providers, or any right to medical services for any individual(s) or groups of individuals. Accordingly, there shall be no third party beneficiary of this Agreement.

6.5 Time is of the essence in this Agreement.

6.6 Each party hereby represents that the person(s) executing this Agreement on its behalf is duly authorized to do so. Any required signature(s) on any documents must be in compliance with California Government Code section 16.5 and any other applicable state or federal regulations.

7. State Authority. Except as expressly provided herein, nothing in this Agreement shall be construed to limit, restrict, or modify the DHCS’ powers, authorities, and duties under Federal and State law and regulations.

8. Approval. This Agreement is of no force and effect until signed by the parties.

9. Term. This Agreement shall be effective as of January 1, 2025 and shall expire as of June 30, 2028 unless terminated earlier by DHCS through written notification or by mutual agreement of the parties.

Docusign Envelope ID: 546A6953-B52A-8484-8081-EBD8FC600622 1111888 of 44448881111
CONTRACT # IGT-25-0015
7 Template Version - 1/2026

SIGNATURES
IN WITNESS WHEREOF, the parties hereto have executed this Agreement, on the date of the last signature below.

CITY OF LAGUNA BEACH:

By: Date: _______________________
Niko King, Fire Chief
THE STATE OF CALIFORNIA, DEPARTMENT OF HEALTH CARE SERVICES:

By: Date: _______________________
Sean Barber, Division Chief, Capitated Rates Development Division Docusign Envelope ID: 546A6953-B52A-8484-8081-EBD8FC600622 07/21/2026
1111999 of 44448881111
CONTRACT # IGT-25-0015
8 Template Version - 1/2026
Exhibit 1
* Note that Estimated Member Months are subject to variation, and the actual total Contribution (Non-Federal Share) may differ from the amount listed here. * FMAP is a weighted blend of multiple FMAPs.

Health Plan Funding Entity Rating Region Service Period Participation % CalOptima City of Laguna Beach Orange 1/2025 - 12/2025 0.15% Category of Aid SIS/UIS Contribution
PMPM
Estimated Member
Months*
Estimated
Contribution (NonFederal Share)
Child SIS $ 0.01 2,833,005 $ 28,330
Child UIS $ - 210,335 $ -
Adult SIS $ 0.02 904,169 $ 18,083
Adult UIS $ 0.01 611,283 $ 6,113
Adult Expansion SIS $ - 3,060,473 $ -
Adult Expansion UIS $ - 823,965 $ -
SPD SIS $ 0.05 381,326 $ 19,066
SPD UIS $ 0.02 140,678 $ 2,814
SPD Dual SIS $ 0.02 1,310,516 $ 26,210
SPD Dual UIS $ - 12,948 $ -
LTC SIS $ 0.05 2,061 $ 103
LTC UIS $ 0.02 1,575 $ 32
LTC Dual SIS $ 0.02 28,943 $ 579
LTC Dual UIS $ 0.01 271 $ 3
WCM SIS $ 0.05 104,167 $ 5,208
WCM UIS $ 0.02 4,850 $ 97
Est. FE Total 10,430,565 $ 106,638
Docusign Envelope ID: 546A6953-B52A-8484-8081-EBD8FC600622 2222000 of 44448881111

STAFF REPORT
Meeting Date:

September 22, 2026

CONSENT

CALENDAR
17 SUBJECT: CALPERS RESOLUTIONS IN COMPLIANCE WITH RETIRED ANNUITANT

RULES - APPOINTMENTS OF INTERIM POSITIONS
RECOMMENDATION: It is recommended that the City Council:

1. Adopt the following Resolutions:
a. “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH,

CALIFORNIA, APPOINTING CAROL JACOBS AS INTERIM ASSISTANT CITY

MANAGER FINDING THE SAME IS NOT A PROJECT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT”;
b. “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH,

CALIFORNIA, APPOINTING MARK TRESTIK AS INTERIM DEPUTY DIRECTOR OF

PUBLIC WORKS AND UTILITIES AND FINDING THE SAME IS NOT A PROJECT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT”;
c. “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH,

CALIFORNIA, RATIFYING THE APPOINTMENT OF STEVE MONTANO AS

INTERIM FINANCE MANAGER AND FINDING THE SAME IS NOT A PROJECT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT;” and

2. Find that the proposed action does not constitute a “project” under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15378(b)(2) & (5) because the action involves administrative organizational activities that will not result in a direct or reasonably foreseeable physical change in the environment.

SUMMARY OF THE MATTER
The roles of Assistant City Manager and Deputy Director of Public Works were vacated by former City employees. The City is currently in the process of recruiting for a permanent appointment to these provisions. Pursuant to Government Code Section 21221(h), the City Council may appoint CalPERS retirees to these positions provided certain requirements are met. All of the requirements are satisfied, and City staff is recommending that the City Council appoint Carol Jacobs as Interim Assistant City Manager and Mark Trestik as Interim Deputy Director of Public Works and Utilities while the City goes through the process of hiring permanent directors in these roles.

Further, a resolution ratifying the past appointment of Steve Montano as Interim Finance Manager is also proposed. All of the substantive requirements of Government Code Section 21221(h) were complied with during Steve Montano’s appointment, and this resolution ensures the appointment is properly memorialized.

DISCUSSION
1111 of 44449994444

CALPERS RESOLUTIONS IN COMPLIANCE WITH RETIRED ANNUITANT RULES -

APPOINTMENTS OF INTERIM POSITIONS
September 22, 2026

Page 2 of 3 ends

Government Code Section 21221(h) allows the City Council to appoint by resolution a retiree (without loss or interruption to their retirement benefits) to fill a vacant managerial or executive position requiring a specialized or needed skill on an interim basis during recruitment for permanent appointments. The interim position shall be for a limited duration and be a one-time appointment. The retiree can only be appointed once, the compensation for the interim appointment shall not exceed the maximum monthly base salary paid to other employees performing comparable duties as listed on a publicly available pay schedule for the vacant position divided by 173.333 to equal an hourly rate. The retiree appointed to a vacant position pursuant to this subdivision shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate and shall not work more than 960 hours each fiscal year.

In order to ensure continued efficient operations, City staff is recommending that the City Council appoint CalPERS retirees Carol Jacobs and Mark Trestik to the positions of Interim Assistant City Manager and Interim Deputy Director of Public Works and Utilities. While the Interim Assistant City Manager position requires a wide range of managerial expertise and specialized skill across multiple City departments, Ms.

Jacobs position will have an emphasis on the City’s Human Resources and Risk Management department.

These interim appointees have demonstrated the unique skillset, leadership, and managerial know-how to efficiently perform the duties of the vacant positions during this limited time role. The City is actively recruiting for Assistant City Manager job and is currently fine tuning its recruitment for Deputy Director of Public Works and Utilities as the previous recruitment was not successful.

Previously, CalPERS retiree Steve Montano served as the City’s Interim Finance Manager between February 3, 2026, through June 9, 2026. Mr. Montano filled a vacant managerial or executive position requiring a specialized or needed skills on an interim basis during recruitment for the Finance Manager position. The interim position was for a limited duration and there was only a single appointment. The compensation for the interim appointment did not exceed the maximum monthly base salary paid to other employees performing comparable duties as listed on a publicly available pay schedule for the vacant position divided by 173.333 to equal an hourly rate. Mr. Montano did not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate and he did not work more than 960 hours.

FINANCIAL ANALYSIS
Funding for these positions was included in the Fiscal Year 2025/2026 and Fiscal Year 2026/2027 budgets.

These positions are funded by the salary savings from the vacant positions being filled. The compensation for the appointed retirees is set by statute for a defined hourly rate (based on the City’s approved salary schedule for the position being filled). No other benefits or compensation are allowed to be paid in excess of the hourly rate.

ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a “project” under the California Environmental Quality Act ("CEQA") and the CEQA Guidelines because this is a continuing personnel-related action and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the 2222 of 44449994444

CALPERS RESOLUTIONS IN COMPLIANCE WITH RETIRED ANNUITANT RULES -

APPOINTMENTS OF INTERIM POSITIONS
September 22, 2026

Page 3 of 3 ends

environment. Accordingly, this action does not constitute a "project" that requires environmental review (CEQA Guidelines § 15378(b)(2)&(5).
3333 of 44449994444

CALPERS RESOLUTIONS IN COMPLIANCE WITH RETIRED ANNUITANT RULES -

APPOINTMENTS OF INTERIM POSITIONS
September 22, 2026

Page 3 of 3 ends

ATTACHMENTS

1. Resolution Appointing Interim Assistant City Manager

2. Resolution Appointing Interim Deputy Director of Public Works and Utilities

3. Resolution Ratifying Appointment of Interim Finance Manager Submitted By: Megan Garibaldi Approved: .David A Kiff
Megan Garibaldi, City Attorney Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Patrick Donegan, Assistant City Attorney
4444 of 44449994444
RESOLUTION NO. 26.XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA BEACH, CALIFORNIA, APPOINTING CAROL

JACOBS AS INTERIM ASSISTANT CITY MANAGER FINDING

THE SAME IS NOT A PROJECT UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
WHEREAS, Government Code Section 21221(h) permits the City Council to appoint, by resolution, a California Public Employees’ Retirement System (CalPERS) retiree to a vacant position requiring specialized skills during recruitment for a permanent appointment and provides that such appointment will not subject the retired person to reinstatement from retirement or loss of benefits so long as the requirements of 21221(h) are complied with; and WHEREAS, the position of Assistant City Manager is vacant and all of the requirements of Government Code section 21221 (h) are satisfied in that the City has an active job posting/recruitment for the position, the rate of pay for this interim role does not exceed the maximum monthly salary paid to other employees performing comparable duties as listed the City’s salary schedule for the vacant position divided by 173.333 to equal an hourly rate, this hourly rate is the only compensation paid, and Carol Jacobs will not work more than 960 hours during any fiscal year; and WHEREAS, the City Council desires to ensure the efficient operations of the City by appointing Carol Jacobs Interim Assistant City Manager.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:

SECTION 1. The foregoing recitals are true and correct, and incorporated herein by this reference.

SECTION 2. Carol Jacobs has the specialized skills needed to perform the work required of the vacant position.

Attachment 1
555 of 44449994444
-2- Reso. #26.XXX
SECTION 3. Carol Jacobs is hereby appointed as Assistant City Manager effective July 31, 2026. This appointment shall expire upon the hiring of a permanent Assistant City Manager or June 30, 2027, whatever occurs sooner.

SECTION 4. This resolution does not constitute a “project” under the California Environmental Quality Act ("CEQA") and the CEQA Guidelines because this is a continuing personnel-related action and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute a "project" that requires environmental review (CEQA Guidelines § 15378(b)(2)&(5).) SECTION 5. If any action, subsection, sentence, clause, or phrase of this Resolution or the application thereof to any person or circumstance shall be held invalid or unconstitutional by a court of competent jurisdiction, such invalidity shall not affect the validity of the remaining portions of this Resolution that can be given effect without the invalid provisions.

SECTION 6. This Resolution shall take effect immediately upon its adoption.

ADOPTED this 22nd day of September, 2026.

Mark Orgill, Mayor
ATTEST:

Ann Marie McKay, City Clerk
666 of 44449994444
-3- Reso. #26.XXX
I, Ann Marie McKay, City Clerk of the City of Laguna Beach, certify that the foregoing Resolution No. 26.XXX was duly adopted at a regular meeting of the City Council of said City held on September 22, 2026, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

City Clerk, City of Laguna Beach, CA
777 of 44449994444
RESOLUTION NO. 26.XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA BEACH, CALIFORNIA, APPOINTING MARK

TRESTIK AS INTERIM DEPUTY DIRECTOR OF PUBLIC

WORKS AND UTILITIES AND FINDING THE SAME IS NOT A

PROJECT UNDER THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT
WHEREAS, Government Code Section 21221(h) permits the City Council to appoint, by resolution, a California Public Employees’ Retirement System (CalPERS) retiree to a vacant position requiring specialized skills during recruitment for a permanent appointment and provides that such appointment will not subject the retired person to reinstatement from retirement or loss of benefits so long as the requirements of 21221(h) are complied with; and WHEREAS, the position of Deputy Director of Public Works and Utilities is vacant and all of the requirements of Government Code section 21221 (h) are satisfied in that the City is actively refining its job posting/recruitment after a previous recruitment was not successful, the rate of pay for this interim role does not exceed the maximum monthly salary paid to other employees performing comparable duties as listed the City’s salary schedule for the vacant position divided by 173.333 to equal an hourly rate, this hourly rate is the only compensation paid, and Mark Trestik will not work more than 960 hours during any fiscal year; and
WHEREAS, the City Council desires to ensure the efficient operations of the City by appointing Mark Trestik as Interim Deputy Director of Public Works and Utilities.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:

SECTION 1. The foregoing recitals are true and correct, and incorporated herein by this reference.

Attachment 2
888 of 44449994444
-2- Reso. #26.XXX
SECTION 2. Mark Trestik has the specialized skills needed to perform the work required of the vacant positions.

SECTION 3. Mark Trestik is hereby appointed as Interim Deputy Director of Public Works and Utilities effective October 1, 2025. This appointment shall expire upon the hiring of a permanent Director of Human Resources and Risk Management or June 30, 2027, whatever occurs sooner.

SECTION 6. This Resolution shall take effect immediately upon its adoption.

ADOPTED this 22nd day of September, 2026.

Mark Orgill, Mayor
ATTEST:

Ann Marie McKay, City Clerk
999 of 44449994444
-3- Reso. #26.XXX
I, Ann Marie McKay, City Clerk of the City of Laguna Beach, certify that the foregoing Resolution No. 26.XXX was duly adopted at a regular meeting of the City Council of said City held on September 22, 2026, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

City Clerk, City of Laguna Beach, CA
1111000 of 44449994444
RESOLUTION NO. 26.XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA BEACH, CALIFORNIA, RATIFYING THE

APPOINTMENT OF STEVE MONTANO AS INTERIM

FINANCE MANAGER AND FINDING THE SAME IS NOT A

PROJECT UNDER THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT
WHEREAS, Government Code Section 21221(h) permits the City Council to appoint, by resolution, a California Public Employees’ Retirement System (CalPERS) retiree to a vacant position requiring specialized skills during recruitment for a permanent appointment and provides that such appointment will not subject the retired person to reinstatement from retirement or loss of benefits so long as the requirements of 21221(h) are complied with; and WHEREAS, CalPERS retiree Steve Montano served as the Interim Finance Manager for the City from February 3, 2026 through June 9, 2026; and WHEREAS, the position of Finance Manage was vacant and all of the requirements of Government Code section 21221 (h) were satisfied when Steve Montano served as Interim Finance Manager in that the City had an active job posting/recruitment for the position, the rate of pay for this interim role did not exceed the maximum monthly salary paid to other employees performing comparable duties as listed the City’s salary schedule for the vacant position divided by 173.333 to equal an hourly rate, the hourly rate was the only compensation paid, and Steven Montano did not work more than 960 hours during any fiscal year; and
WHEREAS, the City Council desires to ratify Steve Montano’s appointment as Interim Finance Manager consistent with Government Code Section 21221(h); and WHEREAS, the City has recruited and filled the role of Finance Manager with a permanent employee.

Attachment 3
11111111 of 44449994444
-2- Reso. #26.XXX

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:

SECTION 1. The foregoing recitals are true and correct, and incorporated herein by this reference.

SECTION 2. Steve Montano had the specialized skills needed to perform the work required of the Finance Manager and served in that interim role for the aforementioned time period.

SECTION 3. Steve Montano’s appointment as the City’s Interim Finance Manager between February 3, 2026 through June 9, 2026 is hereby ratified. A permanent Finance Manager was hired and all of the requirements of Government Code Section 21221(h) were complied with during Mr. Montano’s service with the City.

SECTION 5. If any action, subsection, sentence, clause, or phrase of this Resolution or the application thereof to any person or circumstance shall be held invalid or unconstitutional by a court of competent jurisdiction, such invalidity shall not affect the validity of the remaining portions of this Resolution that can be given effect without the invalid provisions.

SECTION 6. This Resolution shall take effect immediately upon its adoption. 11112222 of 44449994444
-3- Reso. #26.XXX
ADOPTED this 22nd day of September, 2026.

Mark Orgill, Mayor
ATTEST:

Ann Marie McKay, City Clerk
I, Ann Marie McKay, City Clerk of the City of Laguna Beach, certify that the foregoing Resolution No. 26.XXX was duly adopted at a regular meeting of the City Council of said City held on September 22, 2026, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

City Clerk, City of Laguna Beach, CA
11113333 of 44449994444

STAFF REPORT
Meeting Date:

September 22, 2026

CONSENT

CALENDAR
18 SUBJECT: APPROVAL OF AGREEMENT BETWEEN THE CITY OF LAGUNA BEACH AND

THE LAGUNA BEACH POLICE EMPLOYEES' ASSOCIATION FOR THE TERM OF OCTOBER 1, 2026, THROUGH SEPTEMBER 30, 2027, AND AN UPDATE TO THE CITY’S SALARY SCHEDULE TO REFLECT UPDATED TERMS OF

EMPLOYMENT
RECOMMENDATION: It is recommended that the City Council:

1. Adopt the Resolution titled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA BEACH, CALIFORNIA, RATIFYING THE MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF LAGUNA BEACH POLICE EMPLOYEES’ ASSOCIATION, UPDATING THE CITY’S SALARY SCHEDULE, AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT” approving the Agreement between the City of Laguna Beach and the Laguna Beach Police Employees' Association;

2. Authorize the City Manager to execute the related Memorandum of Understanding, subject to approval as to form by the City Attorney;

3. Approve the updated City of Laguna Beach Classification Title and Range Assignments to reflect the update terms of employment for those members of the Laguna Beach Police Employees' Association; and

4. Find that the action is not a project subject to the California Environmental Quality Act pursuant to CEQA Guidelines Section 15378.

SUMMARY OF THE MATTER
This report recommends that the City Council adopt a Resolution (Attachment 1), approving the Agreement between the City of Laguna Beach and the Laguna Beach Police Employees’ Association (LBPEA) for the term October 1, 2026, through September 30, 2027. The Agreement provides for salary adjustments, benefit clarifications, implementation of the City’s Class and Compensation Study, and updates to several personnel provisions affecting both sworn and non-sworn employees.

DISCUSSION
The Laguna Beach Police Employees' Association represents both sworn and professional (non-sworn) employees of the Police Department. The prior agreement was set to expire on September 30, 2026.

Negotiations for a successor agreement commenced this summer and concluded with a Tentative Agreement reached on September 16, 2026. Notable terms of the new Memorandum of Understanding (MOU) include:
• Term: October 1, 2026 through September 30, 2027.
1111 of 5554444555

APPROVAL OF AGREEMENT BETWEEN THE CITY OF LAGUNA BEACH AND THE LAGUNA BEACH POLICE EMPLOYEES' ASSOCIATION FOR THE TERM OF OCTOBER 1, 2026, THROUGH SEPTEMBER 30, 2027
September 22, 2026

Page 2 of 2 ends

• Implementation of the City’s Class and Compensation Study: The City implemented the revised classification structure, specifications, and salary schedule. In applying the study to current LBPEA 2222 of 5554444555

APPROVAL OF AGREEMENT BETWEEN THE CITY OF LAGUNA BEACH AND THE LAGUNA BEACH POLICE EMPLOYEES' ASSOCIATION FOR THE TERM OF OCTOBER 1, 2026, THROUGH SEPTEMBER 30, 2027
September 22, 2026

Page 2 of 2 ends

members, employees were placed in the applicable new salary range and step without a reduction in individual salary
• Salary Increase: 3.0% for Sworn; 3.0% for Professional – Non-Sworn • Elimination of Exceptional Performance Pay: Sworn & Professional – Non-Sworn • Addition of Longevity Pay: Sworn, 5% @ 10 years service w/ the City and/or California Peace Officer classifications; Professional – Non-Sworn, 3.5% @ 10 years of service w/ the City; Professional – Non-Sworn Public Safety Dispatchers, 3.5% 10 years of service/ the City and/or in applicable California Dispatcher classifications
The LBPEA has ratified this Agreement and staff recommends City Council authorize its execution. Also attached to the proposed Resolution (Attachment 2) is the updated City of Laguna Beach Classification Title and Range Assignments and Salary Schedule to reflect the update terms of employment for those members of the Laguna Beach Police Employees' Association. Staff recommend approval of this salary schedule with direction to the City Manager, or the City Manager’s designee, to update the salary schedule if there were any calculation or scrivener’s errors.

FINANCIAL ANALYSIS
The estimated increase in costs associated with the Agreement from the last agreement is an increase of $1,009,764 for the term October 1, 2026, through September 30, 2027. The Fiscal Year 2026/27 impact is approximately $757,323. Sufficient funding is available in the General Fund-Non-Departmental Division Budget for Fiscal Year 2026/27 (1101781). Some terms of the Agreement could not be fully costed due to the uncertainty of the financial impact of some of the provisions.

ENVIRONMENTAL ANALYSIS
The proposed action is not a project under the California Environmental Quality Act (CEQA) as defined in CEQA Guidelines section 15378 (b)(5) because this constitutes an organizational or administrative activity that will not result in direct or indirect physical change in the environment.

ATTACHMENTS

1. Resolution
a. Attachment 1 - MOU with LBPEA
b. Attachment 2 - Amendments to Salary Schedule to Reflect Updated Amounts per MOU Submitted By: Patrick Donegan Approved: .David A Kiff
Patrick Donegan, Assistant City
Attorney
Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Patrick Donegan, Assistant City Attorney
3333 of 5554444555
RESOLUTION NO. 26.XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA BEACH, CALIFORNIA, RATIFYING THE

MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY

OF LAGUNA BEACH AND THE LAGUNA BEACH POLICE
EMPLOYEES’ASSOCIATION, UPDATING THE CITY’S

SALARY SCHEDULE, AND FINDING THE SAME EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the Memorandum of Understanding between the City of Laguna Beach (“City”) and Laguna Beach Police Employees’ Association (LBPEA), expires September 30, 2026; and
WHEREAS, the City and the LBPEA have met and conferred in accordance with the Meyers-Milias-Brown Act (Government Code §3500 et seq.); and WHEREAS, the meet and confer process is a process that can result in an agreement between employees and the City regarding terms and conditions of employment; and WHEREAS, the City and the LBPEA have memorialized their agreement in a Memorandum of Understanding for the period of October 1, 2026 through September 30, 2027.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:

SECTION 1. The City Council hereby finds and determines that the recitals above are true and correct and are each incorporated by reference and adopted as findings by the City Council.

SECTION 2. The Memorandum of Understanding between the City and the LBPEA (Attachment 1) is hereby ratified and the City Manager is authorized to execute the Memorandum of Understanding. The City Manager, or the City Manager’s designee, is authorized to correct the MOU to address any scrivener’s errors that are identified. 4444 of 5554444555
-2- Reso. #26.XXX
SECTION 3. The updated City of Laguna Beach Classification Title and Range Assignments (Attachment 2) is hereby approved to reflect the updated terms of employment for those members of the LBPEA. The City Manager, or the City Manager’s designee, is authorized to update the salary schedule to correct any calculation errors or scrivener’s errors that are identified in the salary schedule.

SECTION 4. The proposed action is not a project under the California Environmental Quality Act (CEQA) as defined in CEQA Guidelines section 15378 (b)(5) because this constitutes an organizational or administrative activity that will not result in direct or indirect physical change in the environment.

SECTION 5. This Resolution shall become effective immediately upon adoption.

SECTION 6. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ADOPTED this 22nd day of September, 2026.

Mark Orgill, Mayor
ATTEST:

Ann Marie McKay, City Clerk
555 of 5554444555
-3- Reso. #26.XXX
I, Ann Marie McKay, City Clerk of the City of Laguna Beach, certify that the foregoing Resolution No. 26.XXX was duly adopted at a regular meeting of the City Council of said City held on September 22, 2026, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

City Clerk, City of Laguna Beach, CA
666 of 5554444555
-4- Reso. #26.XXX
Attachment 1

LBPEA MOU
777 of 5554444555
-5- Reso. #26.XXX
Attachment 2
(Updated Salary Schedule)
To Be Provided Prior to the Meeting
888 of 5554444555

MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF LAGUNA BEACH
AND
THE LAGUNA BEACH POLICE EMPLOYEES’

ASSOCIATION
October 1, 2026 – September 30, 2027
999 of 5554444555

TABLE OF CONTENTS

1.0 Introduction: ....................................................................................................... 1

2.0 Term of MOU: ..................................................................................................... 1

3.0 Recognition of Representation: ........................................................................ 1

4.0 Pre-Disciplinary Procedures and Discipline .................................................... 1

4.1 Policy: .................................................................................................................. 1

4.2 Written Notice ...................................................................................................... 2

4.3 Employee Review: ............................................................................................... 2

4.4 Employee Response ........................................................................................... 2

4.5 Temporary Leave With Pay: ................................................................................ 2

4.6 Representation .................................................................................................... 2

4.7 Right of Appeal: ................................................................................................... 2

4.8 Government Code Section 3304(b): .................................................................... 2

5.0 Grievance Procedure ......................................................................................... 2

5.1 Matters Subject to Grievance Procedure: ............................................................ 2

5.2 Informal Grievance Procedure: ............................................................................ 3

5.3 Formal Grievance Procedure: .............................................................................. 3

5.4 Appeal to the City Manager: ................................................................................ 3

5.5 Extension of Time Limitations .............................................................................. 4

6.0 Salary and Compensation: ................................................................................ 4

6.1 Pay Plan Structure: .............................................................................................. 4

6.2 Advancement Through the Pay Plan ................................................................... 4

6.3 Compensation on Promotion ............................................................................... 5

6.4 Compensation on Demotion ................................................................................ 5

6.4.1 Disciplinary Demotion .................................................................................... 5

6.4.2 Non-disciplinary (i.e., voluntary) Demotion .................................................... 5

6.5 Compensation When Acting Out of Classification ................................................ 5

6.6 Compensation for Additional Duties:.................................................................... 6

6.7 Compensation for Regular Part Time Employees: ............................................... 6

6.8 Compensation on Position Reclassification ......................................................... 6

6.9 Salary: ................................................................................................................. 6

6.10 Direct Deposit: ..................................................................................................... 7

6.11 Matron Pay: ......................................................................................................... 7

7.0 Vacation: ............................................................................................................ 7

7.1 Vacation Accrual: ................................................................................................. 7

7.2 Use of Vacation ................................................................................................... 8

7.3 Payment for Unused Vacation ............................................................................. 8

7.4 Leave Benefits for Regular Part-time Employees: ............................................. 10

8.0 Holidays ............................................................................................................ 10

8.1 Recognized Holidays: ........................................................................................ 10

8.2 Holidays: ............................................................................................................ 10

8.3 Weekend Holidays: ............................................................................................ 11

9.0 Sick Leave ........................................................................................................ 12

9.1 Sick Leave Accruals: ......................................................................................... 12

9.2 Penalty for Sick Leave Abuse ............................................................................ 12

9.3 Sick Leave and Temporary Disability: ................................................................ 12

9.4 Sick Leave for Dependent Care ......................................................................... 12 1111000 of 5554444555

9.5 Illness While on Vacation .................................................................................. 12

9.6 Holidays During Sick Leave ............................................................................... 12

9.7 Payment for Unused Sick Leave ....................................................................... 12

9.8 Family Leave ..................................................................................................... 13

10.0 Bereavement Leave ......................................................................................... 13

11.0 PERS - Disability Benefits Program: .............................................................. 14

11.1 Eligibility: ............................................................................................................ 14

11.2 Amount of Benefit: ............................................................................................. 14

11.3 Status of the Employee ..................................................................................... 14

11.4 Disability Benefit: ............................................................................................... 14

12.0 Educational and Professional Development Reimbursement Program: ..... 14

12.1 Eligibility: ............................................................................................................ 15

12.2 Procedure: ......................................................................................................... 15

12.2.1 City Manager Approval ............................................................................ 15

13.0 Salary Continuance (4850 Rule): .................................................................... 15

13.1 Definitions .......................................................................................................... 15

13.2 Salary Continuance Policies and Procedures .................................................... 15

14.0 Light Duty ......................................................................................................... 16

15.0 Retirement ........................................................................................................ 16

16.0 Medical Benefits .............................................................................................. 20

16.1 Rates ................................................................................................................. 20

16.2 City Contribution Amount Maximums ................................................................. 20

16.3 Medical Coverage for Domestic Partners: ......................................................... 20

16.4 Medical Insurance Waiver: ................................................................................ 20

16.5 Flexible Spending Plan ...................................................................................... 21

16.6 Medical Plan Coverage for Retirees: ................................................................. 21

16.7 Medical Plan Coverage Part-time Regular Employees: ..................................... 21

16.8 Retirement Health Savings Plan ........................................................................ 21

16.8.1 City Contribution ...................................................................................... 21

16.9 Medical Task Force ........................................................................................... 22

16.10 Reopener - Change in Medical Plan .................................................................. 22

17.0 Life Insurance .................................................................................................. 22

18.0 Long Term Disability: ...................................................................................... 22

19.0 Mileage ............................................................................................................. 22

20.0 On-Call Pay....................................................................................................... 22

21.0 Military Leave ................................................................................................... 23

22.0 Jury Duty .......................................................................................................... 23

23.0 Educational Incentive Pay ............................................................................... 23

24.0 Longevity Pay .................................................................................................. 24

25.0 Bilingual Pay .................................................................................................... 25

26.0 Assignment Pay ............................................................................................... 26

26.1 Police Records Specialists Assignment Pay: ..................................................... 26

26.2 Homeless Liaison Officer Pay: ........................................................................... 26

26.3 Canine Handler and Support Services Dog Maintenance Pay: .......................... 26

26.4 Use of City Vehicles/Motorcycle Duty ................................................................ 28

26.5 School Resource Officers: ................................................................................. 28

26.6 Detectives: ......................................................................................................... 29 11111111 of 5554444555

26.7 Field or Jailer Training Officers: ......................................................................... 29

26.8 Communication Training Officer Pay ................................................................. 30

26.9 Shift Differential Pay .......................................................................................... 30

26.10 Department Training Officer Pay ....................................................................... 31

26.11 Neighborhood Enhancement Team Pay ............................................................ 31

26.12 Administrative Sergeant Pay ............................................................................. 31

27.0 Overtime/Compensatory Time ........................................................................ 32

27.1 Sworn Personnel: .............................................................................................. 32

27.2 Professional Staff Employees: ........................................................................... 32

27.3 Actual Hours Worked ......................................................................................... 32

27.4 Hours Worked on Days When in Department-Mandated Training ................................ 32

27.5 Call-Back ........................................................................................................... 32

27.6 Briefing or Shift Preparation Time ...................................................................... 32

27.7 Compensatory Time .......................................................................................... 32

28.0 Alternate Work Schedule ................................................................................ 33

28.1 Change/Modification .......................................................................................... 33

28.2 Work Schedules For Professional Staff ............................................................. 33

28.3 Benefit Modification for Those Assigned to Alternate Work Schedules: ............. 34

29.0 Uniforms ........................................................................................................... 34

30.0 Investigator Clothing Allowance .................................................................... 35

31.0 Bullet-proof Vests: ........................................................................................... 35

32.0 Layoff: ............................................................................................................... 35

32.1 Intent of Procedure ............................................................................................ 34

32.2 Procedures: ....................................................................................................... 35

32.2.1 Abolition of a Position .............................................................................. 35

32.2.2 Transfer or Demotion to Avoid Layoff ....................................................... 36

32.2.3 Severance Pay: ........................................................................................ 36

32.2.4 Reemployment Lists: ............................................................................... 36

33.0 Personnel File Purging:................................................................................... 36

34.0 Jailers ............................................................................................................... 37

35.0 Release Time .................................................................................................... 37

36.0 Management Rights ......................................................................................... 37

37.0 Closing: ............................................................................................................ 37 11112222 of 5554444555
1 MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF LAGUNA BEACH, CALIFORNIA
AND
THE LAGUNA BEACH POLICE EMPLOYEES’ ASSOCIATION

1.0 Introduction: This Memorandum of Understanding (hereinafter “MOU”) has been reached and prepared after meeting and conferring in good faith between the City of Laguna Beach and representatives of the Laguna Beach Police Employees’ Association (the Association) pursuant to the provisions of Government Code Section 3500, et. seq.

2.0 Term of MOU: This MOU shall remain in full force and effect from October 1, 2026, until September 30, 2027.

3.0 Recognition of Representation: The City recognizes the Laguna Beach Police Employees' Association as the bargaining unit which represents public safety employees of the Police Department as follows: All regular (including regular full time and regular part-time) positions in the classifications which follow as well as the hourly classification of Jailer (which is only covered by Article 33 of this MOU and no other provision):

4.0 Pre-Disciplinary Procedures and Discipline:

4.1 Policy: Prior to the discharge, demotion or pay reduction for disciplinary purpose or suspension of any regular employee pursuant to provisions of Sworn
Park Ranger I & II
Police Corporal
Police Officer
Police Sergeant
Senior Park Ranger
Professional – Non Sworn
Accident Investigator Records Specialist
Animal Care Specialist Sr. Animal Services Officer
Animal Services Officer I & II Sr. Parking Services Officer Court Liaison Specialist Sr. Public Safety Dispatcher
Crime Prevention Specialist Support Services Supervisor Fleet Maintenance
Coordinator
Jail Supervisor
Jailer
Parking Services Officer I & II
Property & Evidence
Specialist
Public Safety Dispatcher I & II
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2 the Personnel Ordinance and these Rules, the following procedure shall be complied with:

4.2 Written Notice: Written notice of the proposed disciplinary action shall be given to the employee. Such notice shall include a statement of the reason(s) for the proposed action and the charge(s) being considered.

4.3 Employee Review: The employee shall be given an opportunity to review the documents or materials upon which the proposed disciplinary action is based, and if practicable, they shall be supplied with a copy of the documents.

4.4 Employee Response: Within five (5) working days after the employee has had the review opportunity provided above, they shall have the right to respond, orally or in writing, or both, at the employee's option, to the Chief of Police or their designee concerning the proposed action.

4.5 Temporary Leave With Pay: Notwithstanding the provisions of this section, the City Manager may approve the temporary assignment of an employee to a status of leave with pay pending conduct or completion of such investigations or hearings as may be required to determine if disciplinary action is to be taken.

4.6 Representation: In the above procedure, the employee may be represented by a representative of the employee's choice who is not involved in the matter.

4.7 Right of Appeal: Employees shall, have the right of appeal to an Administrative Law Judge from the Office of Administrative Hearings within seven (7) days of any disciplinary action indicated under Section 2.24.120 of the Laguna Beach Municipal Code, except in instances where the right of appeal is specifically prohibited by the Personnel Ordinance. The Administrative Law Judge will issue an advisory decision to the City Manager. The City Manager will, within thirty (30) days, issue their final decision on the appeal. The employee has the right to appeal the City Manager’s decision in accordance with California Code of Civil Procedure section 1094.6, which provides a 90-day statute of limitations.

4.8 Government Code Section 3304(b): To the extent that a right of appeal is required by Government Code Section 3304(b), and not covered by Section

4.1 above, it shall be processed under the grievance procedure.

5.0 Grievance Procedure:

5.1 Matters Subject to Grievance Procedure: A grievance shall be a claim, filed by an employee on their own behalf or by the Association on behalf of 11114444 of 5554444555
3 a bargaining unit member contending that the City has violated or misapplied an obligation expressed and written in the Personnel Ordinance (Ordinance 815) or this MOU.

5.2 Informal Grievance Procedure: The informal grievance procedure may be utilized to resolve grievances by an employee, a group of employees, or the Association having to do with specific working conditions, safety, unfair treatment, or discrimination. Every effort shall be made to resolve a grievance through discussion between the employee(s) and their immediate supervisor. If the Association is the grievant, the Association may discuss the grievance with a Police Lieutenant or Police Captain. If, after such discussion, the employee or Association does not feel that the grievance has satisfactorily been resolved, they or it shall have the right to discuss the matter with the supervisor's supervisor, if any, within the departmental organization. Otherwise, the employee shall have the right to discuss the matter with the Chief of Police. If the grievance is filed by the Association, it can discuss its grievance with the Director of Human Resources & Risk Management. A grievant must present/file a grievance within thirty (30) calendar days of the later of (1) the occurrence giving rising to the grievance or (2) the time within which the grievant (either the employee or the Association) knew or should have known of the occurrence.

5.3 Formal Grievance Procedure: If the employee or the Association is not in agreement with the decision rendered in the informal grievance procedure, they will have the right to present a formal grievance, in writing, to the Chief of Police. If such a formal grievance has not been submitted within fourteen (14) calendar days from the date of receiving the informal decision, the informal decision shall be considered as final.

When discussing the formal grievance with the Chief of Police, the employee (if filed by an employee) shall have the right to appear with their representative who may also participate in the discussion. If filed by the Association, its chosen representative shall have the right to meet with the Chief of Police to discuss its grievance. The Chief of Police after receiving the grievance shall review it, render their decision and comments in writing and return them to the employee or Association within fourteen (14) calendar days after receiving the formal grievance. If the employee or the Association does not agree with the decision reached, they or it may present an appeal in writing to the City Manager within fourteen (14) calendar days.

Failure of the employee or Association to take further action within fourteen (14) calendar days after receipt of the decision of the Chief of Police will constitute withdrawal of the grievance.

5.4 Appeal to the City Manager: Upon receipt of an appeal, the City Manager or their representative shall discuss the grievance with the employee and/or their representative, if any, or the Association if filed by the Association. The 1111555 of 5554444555
4 City Manager may designate a fact-finding committee, an individual not in the normal line of the employee's supervision (assuming the grievance was filed by an employee), or the City Attorney to render advice concerning the appeal. Within twenty (20) calendar days, the City Manager shall render a formal decision, in writing, to the employee or the Association. Such decision shall be considered as final.

5.5 Extension of Time Limitations: Any or all of the time limitations mentioned above with reference to filing and response may be extended by mutual agreement between the grievant and the City.

6.0 Salary and Compensation:

6.1 Pay Plan Structure: The basic pay range for all classifications shall consist of monthly salary steps, each approximately five percent (5%) greater than its predecessor.

6.2 Advancement Through the Pay Plan: The numbers 1, 2, 3, 4, 5, 6, 7 and 8 respectively denote the various steps in the pay range.

Salary Step 1, an entry level step, shall be paid upon initial employment and for a period of six (6) months from the anniversary date.

Upon recommendation of the Chief of Police, initial employment at a salary step other than entry level may be authorized by the City Manager when a particularly difficult recruiting problem for a class is found to exist.

Salary Step 2 or 3 may be paid after six (6) months at Salary Step 1 where the employee has demonstrated satisfactory job progress and normally increasing productivity and upon recommendation of the Chief of Police and approval of the City Manager. If the employee is advanced to Salary Step 2, after six (6) months, they will be eligible to be advanced to Salary Step 3 after six (6) months after completion of Salary Step 2. If the employee is advanced to Salary Step 3, after six (6) months, they will be eligible to be advanced to Salary Step 4 one (1) year after completion of Salary Step 3.

Movement through the remaining salary steps will be paid upon completion of one (1) year of employment in the prior Salary Step where the employee has demonstrated satisfactory job progress and productivity and recommendation of the Chief of Police and approval of the City Manager.

The effective date of step increases will be the first day of the pay period following each employee’s anniversary date.

In the case of an employee employed or re-employed at any step above Step 1, the employee may be advanced to the next higher step in their range no sooner than one (1) year from the anniversary date of their employment.

However, an employee may be advanced on the salary range more quickly based on exceptional performance at the discretion of the City Manager. 1111666 of 5554444555
5 6.3 Compensation on Promotion: Any employee who is promoted to a position in a class with a higher salary range shall be placed on the step in the new higher range which is at least five percent (5%) above the step they held in the former range in the basic salary schedule unless the five percent (5%) would place the employee above the top step of the new higher range.

An employee thus promoted is therefore assigned to a new salary anniversary date effective on the date of promotion. An employee who, on their salary anniversary date, is promoted to a class with a higher salary range shall first receive any within range increase to which they are entitled and then the higher step as provided in this section.

6.4 Compensation on Demotion: Any employee who is demoted to a position in a class with a lower salary range shall be placed on a Salary Step in the salary range of the lower class as follows:

6.4.1 Disciplinary Demotion: to any designated Salary Step in the lower range which is at least one (1) step less than that received in the salary range for the class from which demoted. A new anniversary date shall be established.

6.4.2 Non-disciplinary (i.e., voluntary) Demotion: to the Salary Step that the employee would have been at in the lower class had the employee remained continuously employed in that lower class. The employee shall retain their current anniversary date (i.e., the anniversary date they had in the position from which in they voluntarily demoted.

6.5 Compensation When Acting Out of Classification: Employees shall receive five percent (5%) of their current base salary for working out of classification. This pay is for when an employee is working in an upgraded classification for a limited duration. For sworn employees, acting pay will commence on the first day the employee is working out of classification. For professional employees) acting pay will commence on the first day of the pay period during which the employee worked (acting out of classification) the sixteenth (16th) consecutive day. Acting pay work must be approved in advance by the Division Commander or their designee. An employee receiving this pay is not eligible to receive pay per Article 6.6 (Compensation for Additional Duties) for the same hours worked.

The parties agree that to the extent permitted by law, the compensation for acting out of classification is special compensation for “classic member” employees and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(3) Temporary Upgrade Pay. This pay shall not be reported for “new members” as defined under PEPRA. However, it is ultimately CalPERS 1111777 of 5554444555
6 who determines whether any form of pay is reportable special compensation.

6.6 Compensation for Additional Duties: An employee assigned by the Chief of Police or designee to perform significant additional duties outside the normal scope of their job classification for 15 or more consecutive work days, but not warranting an out-of-class assignment, may be eligible for additional duty pay of five percent (5%) of their base hourly pay. Additional duty pay shall be based on the scope and complexity of the additional duties, as determined by the Chief of Police and approved by Human Resources. The pay will not be reported to CalPERS. An employee receiving this pay is not eligible to receive pay per Article 6.5 (Compensation When Acting Out of Classification) for the same hours worked.

6.7 Compensation for Regular Part Time Employees: Regular part-time employees shall be paid the hourly equivalent of the monthly salary paid to a full-time employee in the classification to which they are assigned. They shall be eligible for step increases based on the employee’s anniversary date.

6.8 Compensation on Position Reclassification: The salary of an employee in a position that is reclassified shall be determined as follows: if the position is reclassified to a class with the same salary range as the previous class, and if the incumbent is appointed to the reclassified position, the salary rate and salary anniversary date of the employee shall not change. This provision shall also apply to a change of class title.

If the position is reclassified to a class with a higher salary (i.e., has a higher top step salary) than the previous class, and if the incumbent is appointed to the reclassified position, the salary of such employee shall be the comparable step in the higher classification, or the step in the new salary range which is at least four percent (4%), but not more than six percent (6%), over the previous salary, whichever is less. When an employee is appointed to a reclassified position and their salary is at least four percent (4%) greater than the salary in the previous class, a new anniversary date shall be assigned, effective the date of the reclassification.

If the position is reclassified to a class with a lower salary than the previous class, and if the incumbent is appointed to the reclassified position, the employee’s salary shall not change. If the employee's salary is greater than the maximum step of the lower salary range, the employee’s salary shall be "Y rated" until such time as any negotiated cost-of-living increases, equity adjustments, or other salary increases result in the employee’s salary is within the range. The employee's salary anniversary shall not change and they shall not be required to serve a new probationary period.

6.9 Salary:

Effective the pay period including October 1, 2026, all employees (except 1111888 of 5554444555
7 the current employee in classification of Support Services Supervisor) in the bargaining unit shall receive a three percent (3.0%) salary increase in their monthly base salary. The current employee in the classification of Support Services Supervisor shall receive a two and forty-five one hundredths percent (2.45%) salary increase in their monthly base salary.

The City will implement the recently conducted classification and compensation study for employees as provided to the Association and is reflected in the updated salary schedule. This includes the following: 1) the classification structure; 2) the classification specifications; 3) the application to current bargaining unit members; and 4) the impacts of these changes to compensation.

Because the parties did not have sufficient time to negotiate the specifications for the classifications which were newly added by this MOU, i.e., Park Ranger I and II, Senior Park Ranger, Accident Investigator, Animal Services Officer I & II, Court Liaison Specialist, Crime Prevention Specialist, Parking Services Officer I & II, Property & Evidence Specialist, Public Safety Dispatcher I & II, Records Specialist, Sr. and Animal Services Officer, nor the manner in which an individual may promote to or from such classifications, the parties agree to continue to negotiate, to the extent required by law, the specifications and the manner in which an individual may promote to or from such classifications immediately after adoption of this MOU. This agreement only applies to the changes to the classifications as a result of the implementation of the classification and compensation study.

6.10 Direct Deposit: All Association members shall participate in the City’s Direct Deposit Program.

6.11 Matron Pay: For each shift where a female professional staff employee (with the exception of an employee in the classification of Jailer) actually performs the duties of a matron (monitors the intake of female prisoners) the employee will receive one (1) hour of compensatory time off (CTO) added to her CTO bank. If, at the time the matron duties are performed, the employee has the maximum compensatory time off accrual in her bank (i.e., 100 hours) she will be paid for the one hour at straight time.
.

7.0 Vacation:

7.1 Vacation Accrual: Each full-time employee shall accrue vacation leave with pay as follows:

Years of Service Hours of Vacation Accrued
0 thru 5 yrs. Service 3.70 hrs. Biweekly
6 thru 9 yrs. service 5.24 hrs. Biweekly
10 + yrs. service 6.77 hrs. Biweekly
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8 Vacation leave accrues from the date of hire at bi-weekly rates consistent with the above schedule. Years of service for eligibility for vacation is based on years of service at a qualifying public agency. This includes both time with the City and any other public agency in which the employee was employed. “Public agency" means any city, county, district, other local authority or public body of or within this state. See Government Code section 20056. To receive a vacation accrual rate adjustment, employees shall complete the City form verifying prior public agency employment. Once received by Human Resources, the City will verify and make applicable adjustments to prospective vacation accruals within two pay periods. Vacation accruals rates shall not be retroactively adjusted unless there is a delay in the processing of the request by more than 2 pay periods.

If such a delay occurs, the retroactive adjustment would be for the time in excess of two pay periods.

On December 23, 2013, all then current vacation accruals were placed in a bank entitled the “Original” Bank. Once the Original Bank was established, no additional vacation accruals were or may be deposited into that Original Bank. Vacation in the Original Bank may be used in accordance with Section 7.2 of this Article.

On December 23, 2013, a new vacation accrual bank entitled the “New Bank” was created. In the first pay period in December of each ensuing year, employees will be paid for any vacation in the bank above 400 hours at their then-current hourly rate.

In accordance with Section 7.2, employees may still use their vacation (both banks). However, for each employee, once the original bank has been depleted, it will be closed.

All accrued hours in both the Original Bank and the New Bank shall be shown on each Employee’s Bi-Weekly Pay Documents and each employee’s rate of pay that was in effect on December 23, 2013, shall be communicated to each employee in a formal letter from the City which shall be retained in each employee’s personnel file for the duration of their career.

7.2 Use of Vacation: Vacation leave may be taken as it accrues. The dates of vacation leave may be selected by the employee but shall be approved by the Chief of Police or designee who shall consider the wishes of the employee and the needs of the City. The City may limit the approval of vacation for deployment operational reasons. Once it is approved, the City may cancel vacation only in the event of an unavoidable emergency.

7.3 Payment for Unused Vacation:
a) During Employment:
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9 By December 15 of each year, employees may make an irrevocable election to cash out up to the maximum number of hours of vacation leave they can accrue per year that will be earned in the following calendar year at the same rate of pay had the employee used those vacation benefits to receive paid leaves of absence. In the following year, the employees can receive the cash for the vacation leave they irrevocably elected to cash out in either two (2) separate increments (in July and December) or one (1) increment (in December), the total of which shall not exceed the maximum they can accrue in a year, as follows. Thus, if the employees so desire, they could elect to be paid up to one half of what they irrevocably elected to cash out on the second pay day in July with the remainder being paid on the second pay day in December, or the employees can elect to be paid the entire amount they irrevocably elected to cash out on the second pay day in December.

However, if an employee’s vacation leave balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of leave the employee has accrued at the time of the cash out.

If an employee makes an irrevocable election to cash out vacation leave in the following calendar year and uses vacation leave in that subsequent year, the vacation leave used will come from vacation leave the employee had earned prior to January 1 of the year the employee has elected to cash out vacation leave. This is to ensure that assuming an employee had a vacation leave balance prior to January 1, the vacation leave used will not result in a reduction in the amount of vacation leave the employee will be eligible to cash out.

In addition to the above, an employee who has an “unforeseen emergency” (defined as an unanticipated emergency that is caused by an event beyond the control of the employee and that would result in severe financial hardship to the employee if early withdrawal were not permitted) shall be entitled to make a request to the Director of Human Resources & Risk Management for a payoff of up to one year’s accrual of vacation irrespective of whether and to the extent the employee has made an irrevocable election in the preceding December. The amount of vacation which may be paid off is limited to the amount necessary to meet the emergency.

Notwithstanding the above, at any time employees may continue to elect to cause the monetary value of accrued vacation to be added to their 457 Deferred Compensation account, thereby reducing their accrued vacation balance accordingly.
b) Upon Termination: Any employee who is about to terminate their employment and who has unused vacation time in either bank shall be 22221111 of 5554444555
10 paid for such vacation time in their final paycheck. As noted above, payment of vacation time in the original bank will be paid (as permitted by Labor Code section 227.3 with an agreement of the parties) at the employee’s hourly rate as of December 22, 2013. It shall not be necessary to carry such employee on the payroll for the vacation period that is cashed out and the vacancy thus created may be filled at any time after the effective date of termination. When termination is caused by death of the employee, payment shall be made to the employee's designated beneficiary or in accordance with the law.

7.4 Leave Benefits for Regular Part-time Employees: Regular part-time employees as defined the City’s Personnel Rules shall also receive holidays, vacations, sick leave and other similar time off benefits at a ratio determined by the actual number of hours worked. The employee’s accrual rates will change after the same number of years of employment as regular full-time employees.

8.0 Holidays:

8.1 Recognized Holidays: The following holidays shall be observed by the City of Laguna Beach:

1. New Year's Day - January 1st

2. Martin Luther King Jr. Day - 3rd Monday in January

3. President’s Day - 3rd Monday in February

4. Memorial Day - Last Monday in May

5. Juneteenth – June 19

6. Independence Day - July 4th

7. Labor Day - 1st Monday in September

8. Veterans Day - November 11th

9. Thanksgiving Day - 4th Thursday in November

10. The day after Thanksgiving

11. Christmas Day - December 25th

8.2 Holidays:.

Employees in the following classifications shall be entitled to holiday in lieu pay of eight (8) hours per holiday if they were in paid status for the entire day the day before and the day after the holiday (i.e., either the employee worked or was absent using paid leave for the entire day on such workdays):

Sworn: Park Ranger I and II, Police Officer, Police Corporal, Police Sergeant, Senior Park Ranger
Professional – Non-Sworn: Accident Investigator, Animal Care Specialist, Animal Services Officer I and II, Jail Supervisor, Jailer, Parking Services Officer I and II, Public Safety Dispatcher I and II, Records Specialist, Senior Animal Services Officer, Senior Parking Services Officer, and Senior Public Safety Dispatcher,
22222222 of 5554444555
11 This is because these employees work in positions that require scheduled staffing without regard to holidays. If a holiday falls on one of their days off, they still receive their holiday-in-lieu pay for that holiday. If they want to take off on a holiday, they are required to use paid accrued leave, which must be approved in advance.

The parties agree that to the extent permitted by law, Holiday in Lieu Pay is special compensation and shall be reported as such pursuant to Title 2, CCR 571(a)(5) and 571.1(b)(4) as Holiday Pay. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation.

Employees in the following classifications do not work in positions that require scheduled staffing without regard to holidays. For employees in these classifications, they are expected to take the holiday off. Employees may be required to work on a holiday based on Department needs:

Professional Non-Sworn: Court Liaison Specialist, Crime Prevention Specialist, Property and Evidence Specialist, Fleet Maintenance Coordinator, and Support Services Supervisor.

If any of these employees are required to work on a holiday, they shall be paid the eight (8) hours for that holiday. In addition, to being paid the eight (8) hours for the holiday, they shall be paid at time and one-half for the hours they worked on the holiday The hours worked on the holiday can be banked at compensatory time if they have not reached the maximum compensatory time off accrual provided in Article 27.6 of this MOU.

8.3 Weekend Holidays: For those employees whose normal workweek begins on Monday, when a holiday falls on a Sunday, the following Monday shall be deemed to be the holiday in lieu of the day observed. If a holiday falls on a Saturday in the case of employees whose normal workweek ends on Friday, the employee shall be entitled to the Friday prior to the holiday.

For those employees who work an alternate work schedule, e.g., 4/10 plan, when a holiday falls on a regularly scheduled day off, the first work day following the observed holiday shall be deemed to be a holiday, e.g., Tuesday, when the observed holiday falls on a Sunday or Monday (and Monday is the employee’s regular day off). In this example, if the employee’s regular day off is not Monday, then Monday shall be deemed the holiday).

If the observed holiday falls on a Friday (and Friday is the employee’s regular day off) or Saturday, it shall be the last workday prior to the observed holiday, e.g., Thursday.
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12 9.0 Sick Leave:

9.1 Sick Leave Accruals: Every full-time employee shall accrue sick leave time at the rate of 80 hours per year, 3.08 hours per pay period. Unused sick leave may be accumulated without limit. Employees who lateral from an outside agency (i.e., immediately prior to hire at the City of Laguna Beach) from the same or similar classification into which they are hired at Laguna Beach shall receive forty (40) hours of sick leave upon hire.

Sick leave earned between June 13, 1988 and December 23, 2013 shall be used before sick leave earned prior to June 13, 1988 or after December 23, 2013.

9.2 Penalty for Sick Leave Abuse: When in the judgment of the Chief of Police or their designee, an employee is suspected of abusing their sick leave (i.e., using sick leave for a purpose not authorized by this MOU or the law), the Chief of Police or their designee may require a physician's certificate.

9.3 Sick Leave and Temporary Disability: An employee who is entitled to temporary disability indemnity under the State Labor Code may elect to take that number of hours or portions of hours of their accumulated sick leave, or their accumulated vacation, as when added to the disability indemnity will result in a payment to the employee of their full salary. When accumulated sick leave, or vacation, or both, are exhausted, the employee may be still entitled to receive disability indemnity.

9.4 Sick Leave for Dependent Care: Employees shall be eligible to use accrued sick leave in accordance with the law to care for an ill parent (including parent in law), spouse registered domestic partner, child, grandparent, grandchild sibling or “designated person”. The amount of sick leave which can be used for such purpose is one half of one year’s annual accrued sick leave, which is currently equal to 40 hours per year.

9.5 Illness While on Vacation: An employee who becomes ill while on vacation may have such period of illness charged to their accumulated sick leave instead of to vacation provided that:
a) Immediately upon return to duty, the employee submits to their immediate supervisor a written request for sick leave;

9.6 Holidays During Sick Leave: Observed holidays occurring during sick leave shall not be counted as a day of sick leave.

9.7 Payment for Unused Sick Leave:

Payment for accrued sick leave is available as follows:
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13 a) Sick leave earned commencing June 13, 1988 through December 22, 2013: shall converted at 100% of the employee’s base hourly rate of pay as of December 22, 2013 into the City’s Retirement Health Savings (RHS) Plan and may not be converted to cash.
b) Sick leave earned on or after December 23, 2013 shall converted at the rate of fifty percent (50%) of the employee’s base hourly rate of pay into the City’s Retirement Health Savings (RHS) Plan and may not be converted to cash.
c) Upon separation from the City, any sick leave not cashed into the RHS can be converted to CalPERS service credit per Government Code section 20965. The percentage used for conversion to service credit will be as set forth in paragraphs a-b above, i.e., based on when it was earned.
d) Conversion of sick leave - into the RHS Plan can be requested in October or May of each fiscal year or upon death, retirement for disability or service, resignation or layoff but not if dismissed or terminated for cause. Sick leave not cashed (into the RHS Plan) in may be carried over for cash-in to the RHS Plan during October or May of future fiscal years.

Cash-in into the RHS Plan may be made one additional time each year under extraordinary circumstances if approved by the Chief of Police and the Director of Human Resources & Risk Management.

9.8 Family Leave: The City shall provide family leaves as required by State and Federal law, which to the extent permitted by law shall run concurrent with other leaves provided by the City.

10.0 Bereavement Leave: Whenever an employee is compelled to be absent from duty by reason of the death, or critical illness where death appears to be imminent, of either the members of the immediate family of the employee, the employee’s spouse or domestic partner, such person shall be entitled to a maximum of three (3) workdays absence with pay, as to each such instance of death or critical illness, up to a maximum of six (6) workdays per year.
"Immediate family" of the employee, the employee's spouse or domestic partner shall be construed to mean: father, mother, step-parents, brother, sister, stepsiblings, wife, husband, child, step-child, grandmother, grandfather or any relative of the employee or employee' s spouse residing in the employee' s household for two (2) or more years.

Employees who have been with the City for at least thirty (30) days before the leave commences shall receive additional leave up to two (2) days without pay, in any one (1) instance (which must be used within three (3) months from the date of death and which days do not need to be taken consecutively), for bereavement 2222555 of 5554444555
14 leave related to the death of an immediate family member. Employees may use any paid vacation and accrued and available sick leave, which is otherwise available to the employee for this purpose.

11.0 PERS - Disability Benefits Program: The purpose of this program is to provide a percentage of base salary to employees who are disabled from all employment, and who have filed for and are awaiting approval of a disability retirement from the Public Employees' Retirement System.

11.1 Eligibility: All employees who have five (5) years of service or more under the Public Employees' Retirement System and who have exhausted the employee’s accumulated sick leave and vacation benefits may be eligible for disability benefits hereunder.

11.2 Amount of Benefit: An eligible employee will receive a monthly benefit which is approximately equivalent to the benefit the employee would receive when disability retirement becomes effective.

The Director of Human Resources & Risk Management will obtain an estimate from the Public Employees' Retirement System as to what benefit the employee is entitled and will recommend the amount of the benefit. The benefit will commence on the first day of the payroll period following the last day of sick leave or vacation available to the employee. The disability benefit will cease on the last day on the City payroll before the effective date of the disability retirement.

If the employee is receiving disability benefits from another source, the City's disability benefit will be no greater than the difference between the benefit provided by the other source and the anticipated benefit under PERS.

11.3 Status of the Employee: The eligible employee will be considered to be on disability leave and will not accrue any other benefit provided by the City.

11.4 Disability Benefit: For industrial disability retirements initiated by the City for sworn members of the Association (i.e., those employees who are eligible to receive benefits per Labor Code section 4850), if the retirement system has not taken action on the retirement by the employee's last day on the payroll, the City Manager may authorize lending an amount equal to the estimated retirement benefit to the employee on an interest-free basis on the condition that the loan be repaid within 30 days of receipt of retroactive payment of the retirement by the Public Employees' Retirement System. Such agreement shall be made in writing.

12.0 Educational and Professional Development Reimbursement Program: The purpose of this program shall be the reimbursement for tuition and book expenses to employees attending classes on the employee’s own time that are to the direct 2222666 of 5554444555
15 benefit of the individual employee and the City. The approval of a request is subject to budgetary limitations.

12.1 Eligibility: All regular employees shall be eligible for reimbursement under this program. Employees who have not completed their probationary period may also be eligible for reimbursement under this program if the job performance of such employees, as indicated by the Chief of Police, appears to show promise of completing the probationary period.

12.2 Procedure: The Chief of Police will determine what types of courses will be allowed for reimbursement prior to commitment by the employee. Courses considered by the Chief of Police for reimbursement shall be designed to directly improve the knowledge of the employee in the public service which will improve performance and enhance advancement opportunities. The Chief of Police may recommend reimbursement upon the successful completion of college or professional conference/development courses.

Each employee is limited to a maximum payment of one thousand dollars ($1,000) per fiscal year, dependent upon the availability of budgeted monies.

12.2.1 City Manager Approval: The City Manager may authorize payment of additional educational reimbursement beyond the maximum payment for employees who are seeking formal degrees.

13.0 Salary Continuance (4850 Rule): The purpose of this rule is to provide a uniform policy and procedure for implementing Section 4850 of the State Labor Code which provides up to one (1) year salary continuance for safety employees who cannot work due to job incurred injury or illness.

13.1 Definitions
a) Safety Employees - All employees covered by Labor Code Section 4850.
b) 4850 Pay - Compensation provided to safety employees pursuant to Section 4850 of the Labor Code.
c) Park Rangers – Although Park Rangers are safety employees, they do not qualify for Labor Code Section 4850 benefits pursuant to that statute.

However, per this agreement, the City agrees to provide Park Rangers with all benefits they would receive if they were covered pursuant to Labor Code section 4850.

13.2 Salary Continuance Policies and Procedures
a) If a safety employee is released from work by a physician due to an onthe-job illness or injury, that employee shall be placed on 4850 pay. 2222777 of 5554444555
16 b) The employee shall remain on 4850 pay until one of the following occurs:

1. The employee has received 4850 pay for fifty-two (52) weeks which is two thousand eighty (2080) hours for most employees.

2. The employee is released by a physician to return to work either with or without restrictions.

3. The City in good faith determines that the injury is not job related or that the employee is capable of assuming their regular assignment.

The employee is determined to be permanently disabled from their normal occupation and an application for disability retirement has been filed with the Public Employees' Retirement System. (4850 pay shall terminate on the day before the effective date of the disability retirement.) The City may provide advance disability pension payments pursuant to PERS law.

4. The employee voluntarily resigns their position with the City.

14.0 Light Duty: When an employee is authorized by a physician to return to work with restrictions, the City may assign and schedule the employee on a temporary basis to perform departmental duties from which the employee has not been restricted and which the employee has been found capable of performing. These duties need not be duties which are required or included as part of the employee's normal assignment. The employee shall suffer no reduction in salary or benefits upon such temporary assignments. The granting and continuation of light duty shall be within management’s discretion.

Employees on light duty who are absent from work for a physical therapy or doctor’s appointment related to their injury are entitled to up to a maximum of four (4) hours off from work per week with pay for such appointments with supervisor approval. If such an employee needs more than four hours off during regular work hours, with supervisor approval, they may either flex the time off during the same workweek (i.e., work additional hours on another day during the week for the hours above four hours) or use accrued leave to cover the absence. The paid time off from work described in this paragraph must be related to the workers’ compensation injury or illness for which the employee was released to return to work light duty.

15.0 Retirement: The City contracts with the Public Employees' Retirement System for administration of the retirement program. Coverage for regular full-time employees is as follows:
a) Retirement Formula

1. Safety members
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17 Safety unit members hired on or before April 2, 2012, are covered by the 3% @ 50 formula provided for by the Public Employees’ Retirement Law at Government Code section 21362.2.

Safety unit members hired on or after April 2, 2012, who do not meet the definition of “new members” as defined by the Public Employees’ Pension Reform Act of 2013 (PEPRA), are covered by the 3% @ 55 formula provided for by the Public Employees’ Retirement Law at Government Code section 21363.1. This formula applies to any member hired between April 2, 2012 and December 31, 2012 as well as any member hired after January 1, 2013 who is a lateral hire from another PERS agency, public agency with reciprocity or a member who has had less than a six month break in service from their previous public agency employment.

Safety unit members hired on or after January 1, 2013 who are defined as “new members” under the PEPRA, are covered by the 2.7% @ 57 formula provided for by the Public Employees’ Retirement Law at Government Code section 7522.25(d).

2. Professional members
Unit members who are not “new members” as defined by the Public Employees’ Pension Reform Act of 2013 - PEPRA are covered by the 2.5% @ 55 formula provided for by the Public Employees’ Retirement Law at Government Code section 21354.4.

Unit members who are defined as “new members” under the PEPRA, are covered by the 2% @ 62 formula provided for by the Public Employees’ Retirement Law at Government Code section 7522.20(a).
b) Employee Contributions to the Retirement System

1. Safety employees
a. Safety employees subject to the 3% @ 50 and 3% @ 55 Formulas These employees shall contribute nine percent (9%) of compensation earnable as the required member contribution.

In addition to the nine percent (9%) of compensation earnable employee-paid member contribution noted above, these employees shall pay an additional three percent (3.0%) of compensation earnable of the required employer contribution as cost sharing in accordance with Government Code section 20516(f).

Thus, these employees shall pay the full nine percent (9%) of 2222999 of 5554444555
18 compensation earnable member contribution and three percent (3%) of compensation earnable of the required employer contribution as cost sharing for a total of twelve percent (12%) of compensation earnable for retirement contributions.
b. Safety employees subject to the 2.7% @ 57 Formula.

These employees shall pay the statutorily mandated employee contribution rate of one half of the total normal cost as determined each year by CalPERS in its annual valuation report.

2. Professional employees
a. Professional employees subject to the 2.5% @ 55 Formula These employees shall contribute the eight percent (8%) of compensation earnable as the required member contribution. b. Professional employees subject to the 2% @ 62 Formula These employees shall pay the statutorily mandated employee contribution rate of one half of the total normal cost as determined each year by CalPERS in its annual valuation report.
c) Optional Benefits
The following list of optional benefits is listed here in the MOU for the convenience of the parties to reflect what is currently in the City’s contract with CalPERS. It is the City’s contract with CalPERS and the Public Employees’ Retirement Law that determines the application of these benefits to members of the Association.

1. 1959 Survivor's Benefit: The City’s contract with CalPERS provides Level 4 coverage under the 1959 Survivor's Benefit per Government Code section 21574. Employees pay the employee contribution for this benefit.

2. Pre-Retirement Option 2W Benefit: The City’s contract with CalPERS provides for Pre-Retirement Optional 2W Benefit as set forth in Government Code Section 21548.

3. Military Service Credit: The City’s contract with CalPERS provides the Military Service Credit option set forth in Government Code section 21024. The costs are borne by the Member electing to purchase the service credit.
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19 4. Military Service Credit For Retired Persons: The City’s contract with CalPERS provides the Military Service Credit for Retired Persons option set forth in Government Code section 21027. The costs are borne by the Member electing to purchase the service credit.

5. Cost of Living Allowance: The City’s contract with CalPERS provides the benefit known as the 2% Cost of Living Allowance Increase as set forth in Government Code section 21329.

6. Retired Death Benefit: The City’s contract with CalPERS provides the $500 Retired Death benefit as set forth in Government Code section 21620.

7. Two Years Additional Service Credit: The City’s contract with CalPERS provides the Public Service” – Layoff Period – as set forth in Government Code section 21022. All associated costs are borne by the member electing to purchase the service credit.

8. Pre-Retirement Death Benefits to Continue after Remarriage of Survivor: The City’s contract with CalPERS provides the PreRetirement Death Benefits to Continue after Remarriage of Survivor as set forth in Government Code sections 21551.

9. Prior Service: The City’s contract with CalPERS provides the prior service benefit as set forth in Government Code section 20055.

10. Service Credit for Unused Sick Leave: The City’s contract with CalPERS provides the Service Credit for Unused Sick Leave benefit as set forth in Government Code section 20965.

11. Public Service Credit for Peace Corps, AmeriCorps, VISTA or AmeriCorps Service: The City’s contract with CalPERS provides the Public Service Credit for Peace Corps, AmeriCorps, VISTA or AmeriCorps Service Credit as set forth in Government Code section 21023.5.

12. For employees who are not defined as new members by the PEPRA, their retirement will be calculated by the One Year Final Compensation provision as set forth in Government Code section 20042

13. For employees defined as new members by the PEPRA, their retirement will not be calculated by the One Year Final Compensation provision, but rather, based on the three (3) year 33331111 of 5554444555
20 average compensation as provided for in the PEPRA at Government Code section 7522.32(a).

16.0 Medical Benefits: All regular full-time employees and their dependents are eligible for enrollment in the medical, vision and dental benefit plans as agreed to between the City and the Association.

16.1 Rates: Subject to the provisions of Section 16.2, the City shall pay 100% of the cost of medical care coverage for the employee only coverage, 80% of the cost for employee plus one dependent coverage, and 80% of the cost of the employee plus two or more dependents coverage. The employee shall be responsible for the remaining 20% portion of the premium not paid by the City. Unless the parties agree otherwise, the City’s obligation to pay 80% of the cost for employee plus one dependent coverage and the cost of employee plus two or more dependents coverage will “sunset” on the last day of the term of this MOU whereupon the City’s obligation will revert to paying 75% of the cost of such coverage. If the cost of medical insurance premium increases by ten percent (10%) or more in any calendar year of this MOU, the parties agree that either party may reopen labor negotiations on this Article 16.

16.2 City Contribution Amount Maximums: The City’s contribution to any employee’s medical insurance premium under the premium sharing formula contained in Section 16.1 of the MOU shall be limited to the amount of the contribution under the above premium sharing formula for the HMO plan rate for an employee plus two or more dependents, regardless of the employee’s choice of medical plan.

16.3 Medical Coverage for Domestic Partners: Medical coverage shall be provided for domestic partners. Dental coverage shall be provided to domestic partners under the same terms as other dependents.

16.4 Medical Insurance Waiver:

Pursuant to the Affordable Care Act (ACA) Employer Mandate “affordability” determination, an Eligible Opt-Out Arrangement requires the following for employees who opt-out of employer-provided health coverage and receive cash in lieu:

1. Employee must provide reasonable evidence that the employee and each member of the employee’s expected tax family (individuals the employee expects to claim personal exemption deduction) have or will have minimum essential coverage (other than coverage in the individual market, whether or not obtained through Covered California) during the period of coverage to which the opt-out arrangement applies;
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21 2. The opt-out payment may not be made if the employer knows or has reason to know that the employee or any other member of the employee’s expected tax family does not have or will not have the alternative coverage;

3. The evidence of alternative coverage must be provided every plan year to which the eligible opt-out arrangement applies; and

4. The reasonable evidence will be an attestation signed by the employee, attesting to the above, and must be provided no earlier than a reasonable period of time before each plan year begins.

Employees who are able to satisfy the above criteria may opt out of participation in the City’s plan and will be paid sixty percent (60%) of the HMO employee only rate. This payment will be made to the employee on a biweekly basis as a part of the employee’s payroll check.

16.5 Flexible Spending Plan: The City will make a flexible spending plan available to employees pursuant to IRS Code Section 125 to allow an employee to contribute a portion of their income each year on a pre-tax basis into an account from which they may receive reimbursement for medical, dental and child care expenses.

16.6 Medical Plan Coverage for Retirees: Employees Hired Before January 1, 2014: The option of continuing membership in the City’s medical plan shall be available to employees who retire from employment with the City after a minimum of three (3) years of service. The employee will be responsible for the entire premium.

Employees hired on or after January 1, 2014: The option of continuing membership in the City’s medical plan shall be available to employees who retire from employment with the City after a minimum of ten (10) years of service. The employee shall be responsible for the entire premium.

16.7 Medical Plan Coverage Part-time Regular Employees: Employee-only medical benefits shall be provided to regular part-time employees.

Dependent medical and dental premiums for regular part-time employees shall not be paid by the City. Regular part-time employees shall, therefore, pay the full cost of medical and dental plan premiums for dependent coverage.

16.8 Retirement Health Savings Plan:

16.8.1 City Contribution: All employees represented by the Association are required to participate in the City’s Retirement Health Savings Plan (RHS). The City, on behalf of all employees represented by the Association, will make a pre-tax contribution of one hundred dollars 33333333 of 5554444555
22 ($100.00) per month to the RHS plan on the employee’s behalf, paid at forty-six dollars and sixteen cents ($46.16) per pay period. After an employee has completed seven (7) years of service with the City, their RHS contribution will increase to three hundred dollar ($300) per month paid at one hundred and fifteen dollars and thirty-eight cents ($138.46) per pay period.

16.9 Medical Task Force: The City agrees to continue the Medical Task Force comprised of one (1) representative from each bargaining unit including management, and meeting on a regular basis for the purpose of reviewing the status of the medical plans.

16.10 Reopener - Change in Medical Plan: If, during the term of this MOU, a decision is made to change or modify the current medical care coverage, the entire Article 16 shall be reopened for negotiations.

17.0 Life Insurance: All regular full-time employees are covered by a fifty thousand dollar ($50,000) Life and Accidental Death and Dismemberment policy.

18.0 Long Term Disability: All regular full-time employees are eligible for Long Term Disability Insurance coverage of sixty percent (60%) of the first five thousand dollars ($5,000) of salary after a sixty (60) calendar day elimination period.

Employees are eligible for coverage after sixty (60) days of employment.

19.0 Mileage: The reimbursement rate for use of personal vehicles for City business shall be the standard mileage rate allowed by the Internal Revenue Service.

20.0 On-Call Pay:
a) On-Call Detectives: The on-call detective will begin their on-call shift each Monday at 7:00 a.m. through the following Monday at 7:00 a.m. (a seven (7) day period). During which, the on-call detective will receive six (6) hours of oncall pay. Each month, the Investigations Sergeant will provide the entire Police Department with the monthly on-call schedule. In the event the Watch Commander feels the need to call-out or notify a detective, the on-call detective will be called, and will evaluate the need to respond and/or provide the necessary investigative guidance. The on-call detective must respond to a phone call within ten (10) minutes and be able to respond to the City within one (1) hour of the notification, when a response is necessary. The on-call detective must also immediately notify the Investigations Sergeant for final approval.

The on-call detective will only receive overtime compensation if they respond outside of their normal working hours. Overtime will be provided if the detective works at home, while on the phone handling an investigative incident that does not dictate a physical response. All overtime must be evaluated and approved by the Investigations Sergeant.
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23 The expectations of the on-call detective’s use of the take-home vehicle while on on-call status are addressed in Police Department Policy. b) On-Call Court Pay: Employees who are placed on call by the court shall receive two (2) hours compensation in the morning and two (2) hours in the afternoon. If an employee was on-call in the morning and is then called to court in the afternoon, they shall receive on-call pay only for the morning as they are being paid per this paragraph for the afternoon. If an employee is placed on-call for court in the afternoon, they shall not receive on-call pay for the morning. On-call pay shall not be made if the employee receives court pay for appearing or if they are taken off-call at least 24 hours in advance. Officers shall receive a minimum of three (3) hours compensation for court appearances (i.e., the officer only testifies for one hour, but will receive a minimum of three hours of court time). Employees shall submit payment requests in the pay period when they appeared in court. There should not be an accumulation of court time over multiple pay periods if a case is trailed or the employee remains on call.

21.0 Military Leave: Military leave shall be granted in accordance with the provisions of state and federal law. All employees entitled to military leave shall give the appointing power an opportunity within the limits of military regulations to determine when such leave shall be taken.

22.0 Jury Duty: Employees in the unit are entitled to up to one hundred and twenty (120) hours of paid time off each calendar year for jury duty. An employee accepted for jury duty shall immediately notify the Chief of Police or designee in writing.

Employees who are on jury duty are required to return to work if released by the Court from jury duty and they will have at least four hours of work left in their day after traveling back to work. In addition, if an employee calls into the court (or learns over the internet) on the day before reporting for jury duty and finds out that they must report to jury duty the next day, they are required to notify their supervisor prior to the start time of their work shift.

23.0 Educational Incentive Pay:
a) Educational Degree: Sworn police department employees in the classifications of Police Officer, Police Corporal and Police Sergeant shall be eligible for an educational incentive pay of two and one-half percent (2.5%) for an AA degree, or pay of five percent (5%) for a BA or BS degree. These degrees enhance employees ability to perform their job. Educational incentive pay shall be paid bi-weekly.

The parties agree that to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such (for classic and new members) pursuant to Title 2 CCR, Section 571(a)(2) and Section 571.1 (b)(2) Educational Incentive Pay. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation. 3333555 of 5554444555
24 b) POST Certifications: Sworn in the classifications of Police Officer, Police Corporal and Police Sergeant are eligible for the following:

1. Four percent (4.0%) of base salary for an Intermediate POST Certificate;

2. Nine percent (9.0%) of base salary for an Advanced POST Certificate. The two POST certificates are not cumulative. An employee with Advanced POST will receive nine percent (9.0%) and not any additional compensation for first having an Intermediate POST Certificate.

The parties agree that to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such (for classic and new members) pursuant to Title 2 CCR, Section 571(a)(2) and Section 571.1 (b)(2) Peace Officer Standard Training (POST) Certification Pay. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.
c) Public Safety Dispatchers, Senior Public Safety Dispatchers and the Support Services Supervisor, are eligible for the following:

1. Five percent (5.0%) of base salary for a Dispatcher Advanced POST Certificate. This certificate enhances employees’ ability to perform their job.

Educational incentive pay shall be paid bi-weekly.
d) When an employee receives either an Intermediate or Advanced POST Certificate they shall provide the City with a copy of the Certificate and will then be paid by the City retroactively to the effective date of the Certificate.

24.0 Longevity Pay
Employees shall receive additional compensation in the form of Longevity Pay if they have been employed by the City or in a specified job classification, for a certain minimum period of time as follows:

Employees who have been employed full-time by the City of Laguna Beach or fulltime in the job classifications of Police Officer, Police Officer Lateral, Police Corporal, Deputy Sheriff, Police Sergeant, Sergeant, Sheriff’s Sergeant, Park Ranger or similar title/naming convention as confirmed by Human Resources in the State of California, for ten years (10) years or more shall receive longevity pay 3333666 of 5554444555
25 of five percent (5%) base salary paid each pay period.

Professional – Non-Sworn employees who have been employed full-time by the City of Laguna Beach for ten years (10) years or more shall receive longevity pay of three and one half percent (3.5%) base salary paid each pay period.

Employees in the job classifications of Public Safety Dispatcher I & II and Senior Public Safety Dispatcher who have been employed full-time in the City of Laguna Beach or full-time in the job classifications of Public Safety Dispatcher or Communications Dispatcher, Police Communications Dispatcher, Police Communications Operator, Communications Operator, Fire/EMS Dispatcher, Public Safety Communications Operator or similar title/naming convention as confirmed by Human Resources in the State of California, for ten years (10) years or more shall receive longevity pay of three and one half percent (3.5%) base salary paid each pay period.

25.0 Bilingual Pay: The City shall agree to establish a separate bilingual pay program for sworn and professional staff employees of the Police Department who are required to speak, read, and/or write in languages other than English as part of the employee’s regular duties of the employee’s position.

The Chief of Police shall designate which languages shall be eligible for bilingual pay.

Employees who are routinely and consistently assigned to positions requiring communication skills in languages other than English. shall be paid seventy-five dollars ($75) per month paid at the rate of $34.62 each pay period. Eligibility shall be determined by successful completion of a language competency test. Such test shall be determined and administered by the Director of Human Resources & Risk Management.

Police Department employees receiving bilingual pay prior to July 1, 1996 shall not be required to complete a proficiency exam; however, they will be subject to all other elements of the program as described above.

The parties agree that to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such (for classic and new members) pursuant to Title 2 CCR, Section 571(a)(4) and Section 571.1 (b)(3) Bilingual Premium. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.
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26 26.0 Assignment Pay:

26.1 Police Records Specialists Assignment Pay: Police Records Specialists will receive five percent (5%) pay for being routinely and consistently assigned to the Police Records Division.

The parties agree that to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such (for classic and new members) pursuant to Title 2 CCR, Section 571(a)(4) and Section 571.1 (b)(3) Police Records Assignment Premium. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

26.2 Homeless Liaison Officer Pay: A Police Officer or Police Corporal selected to the assignment of Homeless Liaison Officer shall receive compensation equal to ten percent (10%) of their base pay at their current step on the salary schedule depending on their rank.

26.3 Canine Handler and Support Services Dog Maintenance Pay: Officers assigned as Canine Handlers shall be paid five percent (5%) base salary paid each pay period as assignment pay for being in the assignment. In addition, employees assigned as Canine Handlers and Support Services Dog Handlers will be paid fourteen (14) hours per month at two thirds (2/3) of their regular rate of pay then paid at time and one half (1.5) for the offduty caring, grooming, feeding, training and otherwise maintaining of their department-issued canine or Support Services dog/equipment.

The parties acknowledge that the Fair Labor Standards Act (“FLSA”), which governs the entitlement to compensation for canine/Support Services Dog duties, entitles the parties to agree to a reasonable number of hours for the performance of off duty canine/Support Services Dog duties. The parties acknowledge that per the case of Leever v. City of Carson City, 360 F.3d 1014 (9th Cir. 2004), the hours for which a canine/Support Services Dog handler should be paid are supposed to be determined after an actual inquiry of the officers and Support Services Dog Handlers assigned in the canine/Support Services Dog special assignment. The parties agree that at this time, 14 hours has been determined to be the time the canine/Support Services Dog handlers spend and to ensure compliance with the law, and agree that officer canine/Support Services Dog handlers must limit their off3333888 of 5554444555 27 duty hours to a maximum of fourteen (14) hours per month (unless expressly directed, or otherwise authorized, to work more hours by a supervisor) because they are only being paid for fourteen (14) hours for such duties per month. The actual time spent is subject to review by a future actual inquiry and the Association reserves the future right to request increasing such hours through the negotiations process as the program develops and in the event that circumstances warrant.

It is the intent of the parties through the provisions of this section to comply with the requirements of the FLSA. In addition, both parties believe that this section of the MOU does comply with the requirements of the FLSA.

The City and Association understand and agree that the Canine/Support Services Dog Handler Maintenance Pay is intended to compensate officer canine-handlers and employees assigned as Support Services Dog Handlers for all off duty hours spent caring, grooming, feeding, training and otherwise maintaining their assigned canine/Support Services Dog/equipment, in compliance with the FLSA and interpretive cases and rulings.

In addition to the canine maintenance time as aforesaid, the City agrees to compensate canine/Support Services Dog handlers for veterinary visits and/or other unusual occurrences that are handled outside of the canine/Support Services Dog handlers’ regular work hours, provided that, absent an emergency, the canine/Support Services Dog handlers shall obtain supervisor approval for such care and shall submit a Variance of Duty Report. Compensation pursuant to this paragraph shall be paid at their regular overtime rate, not the two-thirds (2/3) rate described above.

Unless the Chief of Police agrees otherwise, canine/Support Services Dog handlers are required to live within twenty (20) miles of City Hall. Canine officers and employees assigned as Support Services Dog Handlers will not be compensated for canine/Support Services Dog maintenance when the police service dog is kenneled at a location other than the canine/Support Services Dog handler’s residence.

City agrees to provide canine handlers but not employees assigned as Support Services Dog Handlers with the use of a City patrol vehicle for the transportation of the police canine to and from the canine handler’s personal residence. Employees assigned as canine handlers shall not be compensated in any manner whatsoever for time spent traveling to and from work because they have been provided with a City patrol vehicle. In the rare case where the assigned City patrol vehicle is not available, due to maintenance or any other circumstance, and the canine handler is permitted to rely on their own personal transportation of the police canine to and from any work related event or service, then the handler will be compensated at the current mileage reimbursement rate.
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28 At the conclusion of the police canine's and Support Service dog’s service life, the handler may exercise the option of adopting the retired canine/ Support Services dog at a cost of $1.00 to the handler and will hold the City harmless against any claims arising from alleged incidents involving the canine Support Services dog after its retirement as well as any time or costs incurred by the handler after the canine's Support Services dog’s retirement.

There is no period of probation required as a canine/Support Services dog handler and no permanency or seniority may be obtained for a handler.

Police Officers assigned as canine handlers and employees assigned as Support Services Dog Handlers shall serve at the pleasure of the Chief of Police (i.e., the assignment is an at-will assignment) and may be reassigned at the sole discretion of the Chief.

The parties agree that to the extent permitted by law, the five percent (5%) compensation in this section for being assigned as a Canine Handler is special compensation and shall be reported as such (for classic and new members) pursuant to Title 2 CCR, Section 571(a)(2) and Section 571.1 (b)(2) Canine Officer/Animal Premium. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

26.4 Use of City Vehicles/Motorcycle Duty: Police officers assigned to motorcycle duty may use the motorcycle to commute to and from work if they live within thirty (30) miles of City Hall and within Orange County. (The Chief of Police or their designee may in their sole discretion waive either the thirty (30) miles or County residency limitations.) Employees assigned to motorcycle duty shall receive five percent (5%) of base pay because they are routinely and consistently assigned to operate and/or patrol on motorcycle. These employees are required to clean and maintain their assigned motorcycle while on duty.

The parties agree that to the extent permitted by law, the compensation for Motorcycle Duty is special compensation and shall be reported (for both classic and new members) as such pursuant to Title 2 CCR, Section 571(a)(4) and Section 571.1 (b)(3) Motorcycle Patrol Premium. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

26.5 School Resource Officers: A Police Officer or Police Corporal selected to the assignment of School Resource Officer shall receive compensation equal to five percent (5%) of their base pay at their current step on the salary schedule depending on their rank.

The parties agree that to the extent permitted by law, the compensation for School Resources Officer is special compensation and shall be reported 4444000 of 5554444555
29 (for both classic and new members) as such pursuant to Title 2 CCR, Section 571(a)(4) and Section 571.1 (b)(3) Juvenile Officer Premium.

However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

26.6 Detectives: A Police Officer or Police Corporal selected to the assignment of Detective shall receive compensation equal to five percent (5%) of their base pay at their current step on the salary schedule depending on their rank.

A Sergeant assigned to Detectives (as a Detective Sergeant) will also receive this pay.

The parties agree that to the extent permitted by law, the compensation for Detectives is special compensation and shall be reported (for both classic and new members) as such pursuant to Title 2 CCR, Section 571(a)(4) and Section 571.1 (b)(3) Detective Division Premium. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

26.7 Field or Jailer Training Officers (FTO): A Police Officer selected to the assignment of Field or Jailer Training Officer is routinely and consistently assigned to train employees. Police Officers who are assigned as Field or Jailer Training Officers must successfully complete the P.O.S.T. specialized classroom and certification training before performing their FTO duties. The officers selected to serve as FTOs must maintain the standards of professionalism and the ability to teach, guide and mentor new officers.

Upon completion of the P.O.S.T. specialized classroom and certification training, the Police Officer(s) assigned as FTOs will receive ten percent (10%) above their base pay, as compensation, only when training an officer who is in the field training program.

The duties of the FTO involve being a positive role model, clearly communicating the expectations of a police officer, teaching the trainee the policies of the department, correctly applying concepts learned in the classroom to field training operations, and evaluating the trainee on their progress in the program. Ultimately, the FTO is responsible for ensuring the shift duties are performed properly and completely and communicating any deficiencies to their chain of command.

POST Field Training Officer (FTO) Training Requirements:
(1) Every newly appointed FTO shall:
(A) Successfully complete a POST-certified Field Training Officer Course prior to training new officers, and;
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30 (B) Complete 24-hours of update training every three years following completion of the Field Training Officer Course.

The update training shall be satisfied by:

1. Completing a POST-certified Field Training Officer
Update Course, or

2. Completing 24-hours of department-specific training in the field training topics contained in the Field Training Officer Update
(2) Every reassigned FTO, after a 3 year or longer break in service as an FTO, shall
(A) Successfully complete a POST-certified Field Training Officer Update Course prior to training new officers, and (B) Complete 24-hours of update training every three years.

The update training shall be satisfied by:

1. Completing a POST-certified Field Training Officer
Update or

2. Completing 24-hours of department-specific training in the field training topics contained in the Field Training Officer Update Course
The parties agree that to the extent permitted by law, the compensation for Field Training Officers is special compensation and shall be reported (for both classic and new members) as such pursuant to Title 2 CCR, Section 571(a)(4) and Section 571.1 (b)(3) Training Premium. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

26.8 Communications Training Officer Pay: Employees in the classification of Public Safety Dispatcher who are routinely and consistently assigned as and perform the duties of Communications Training Officers shall receive ten percent (10%) of their base pay for each hour of training that they provide.

The parties agree that to the extent permitted by law, the compensation for Communications Training Officer Pay is special compensation and shall be reported (for both classic and new members) as such pursuant to Title 2 CCR, Section 571(a)(4) and Section 571.1 (b)(3) Training Premium. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

26.9 Shift Differential Pay: If an employee’s regular work schedule has at least 44442222 of 5554444555
31 six (6) hours between the hours of 5:00 p.m. and 5:00 a.m. of each workday, they shall receive a night shift differential of two and one half percent (2.5%) for all hours worked on their shift. These employees are routinely and consistently scheduled to work other than a standard "daytime" shift. Shift differential does not apply to employees working overtime on a non-regularly scheduled day.

The parties agree that to the extent permitted by law, the compensation for Shift Differential Pay is special compensation and shall be reported (for both classic and new members) as such pursuant to Title 2 CCR, Section 571(a)(4) and Section 571.1 (b)(3) Shift Differential. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

26.10 Department Training Officer Pay: An employee who is selected to the assignment of Department Training Officer is routinely and consistently assigned to police administration to provide support for the Police Chief and Command Staff in the operation of the Police Department. They shall receive compensation equal to five percent (5%) of their base pay at their current step on the salary schedule.

The parties agree that to the extent permitted by law, the compensation for Department Training Officer Pay is special compensation and shall be reported (for both classic and new members) as such pursuant to Title 2 CCR, Section 571(a)(4) and Section 571.1 (b)(3) as Police Administrative Officer Pay. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

26.11 Neighborhood Enhancement Team Pay: Any employees in the classifications of Police Corporal and Police Sergeant selected to supervise the Neighborhood Enforcement Team shall receive compensation equal to five percent (5%) of their base pay at their current step on the salary schedule.

26.12 Administrative Sergeant Pay: Any employees in the classification of Police Sergeant selected to the Administrative Sergeant assignment are routinely and consistently assigned to police administration to provide support for the Police Chief and Command Staff in the operation of the Police Department. They shall receive compensation equal to five percent (5%) of their base pay at their current step on the salary schedule.

27.1 Sworn Personnel: Sworn personnel in the Police Department shall receive compensatory time or overtime pay, at the request of the employee and subject to the approval of the Chief of Police, at the rate of time-and-onehalf for all actual hours worked in excess of the employee’s regularly scheduled hours each workday. Employees in the classifications of Police Officer, Police Corporal and Police Sergeant are subject to the 28-day FLSA work period in accordance with section 7(k) of the FLSA.

27.2 Professional Staff Employees: Employees shall receive compensatory time or overtime pay at the rate of time and one-half for all hours worked in excess of forty (40) hours in a given work week.

27.3 Actual Hours Worked: Actual hours worked shall be defined as (1) time the employee is on duty performing assigned tasks and otherwise carrying out the duties of the employee’s position, and (2) leave time taken as vacation, sick, holiday, or bereavement leave. Therefore, compensatory time shall not be counted as actual hours worked when computing hours in excess of a regularly scheduled shift or hours in excess of forty (40) in a work week.

27.4 Hours Worked on Days When in Department-Mandated Training: On any day when a member of the bargaining unit attends Departmentmandated training which is scheduled for a minimum of eight (8) hours, that member will not have to use any leave, regardless of their normal shift.

27.5 Call-Back: Sworn personnel who are called with less than twenty-four (24) hours’ notice to report to work on a regularly scheduled day off, or called back to work following completion of a shift, shall receive a minimum of four (4) hours of pay.

However, if a sworn employee is called back prior to the start of their regularly scheduled shift and the call back time cuts across the time of their regularly scheduled shift, they shall receive time and one half for the hours prior to their shift (not a four hour minimum) and their regular pay from the start of their shift.

Professional staff personnel shall receive compensation at time-and-one-half pay for all hours worked as the result of a call-back.

27.6 Briefing or Shift Preparation Time: Briefing or shift preparation time of up to thirty (30) minutes may be added to an employee's work day.

Compensation for this time shall be paid at the straight-time rate.

27.7 Compensatory Time: A maximum of one-hundred and sixty (160) hours of compensatory time may be accrued by employees
An employee wishing to use their accrued compensatory time off shall 44444444 of 5554444555
33 provide the City with reasonable notice. Reasonable notice is defined as at least ten (10) calendar days. If reasonable notice is provided, the employee’s request may not be denied unless it is unduly disruptive to the department to grant the request. Having to backfill an employee on overtime does not cause the request to be unduly disruptive. A request to use compensatory time off without reasonable notice may still be granted within the discretion of the supervisor or manager responsible for considering the request.

28.0 Alternate Work Schedule: The City and the Association agree to the alternate work schedules including, but not limited to, the "3/12" plan, (for sworn personnel assigned to the “3/12 plan” this is twelve (12) 12 hour and 20 minutes shifts per work period with one additional 12 hour shift worked during the 28-day FLSA work period) the "4/10" plan, and the "9/80" plan for employees represented by the Association. As provided in Article 28.2, there are some employees in the unit who are assigned a traditional 5/40 work schedule.

28.1 Change/Modification: The City may change and/or modify work schedules, or terminate alternate work schedules at its sole discretion. To the extent feasible, the City shall provide the Association with advance notice of any such changes, modifications, or terminations and the reason for the change. In the twenty-eight (28) day schedule cycle (per Section 7(k) of the FLSA), which consists of two pay periods, with overtime eligibility limited to actual hours worked in excess of one hundred sixty (160) hours in any twenty-eight (28) day scheduled cycle, or extra hours worked over a regularly scheduled shift. Nothing in this paragraph, however, shall be construed to limit the right of the City to alter or abandon alternate work schedules.

28.2 Work Schedules For Professional Staff: The Association shall have the right to meet and confer both formally and informally, with the City on issues relating to alternate work schedules. The City shall consider and respond to all issues raised in a complete and timely manner.

Professional Staff employees assigned to a five (5) day, forty-hour (40) work week shall be considered Municipal Employees in accordance with Personnel Rule 8.18.3; i.e., such personnel shall receive compensatory time or overtime pay at time-and-one-half only for actual hours worked in excess of forty (40) hours in a given work week. The FLSA workweek for such employees shall begin at 12:00 a.m. on Monday and end the following Sunday at 11:59 p.m.

Professional staff employees may work a “9/80” schedule. A 9/80 work schedule consists of alternate weeks of four (4) consecutive workdays of nine (9) consecutive hours each, followed by five (5) consecutive workdays, four of which consist of nine (9) consecutive hours each and one (1) day of eight (8) consecutive hours.
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34 For Professional staff employees assigned to a “9/80” work schedule, their designated FLSA workweek shall begin exactly four hours after the start time of their eight (8) hour shift on the day of the week that corresponds with the employee’s alternating regular day off. For example, if the employee’s alternating regular day off is a Friday, their FLSA workweek begins four (4) hours after the start of their workday on Friday.

Dispatchers, Senior Dispatchers and Jailers are assigned to a “3/12” work schedule. A 3/12 work schedule consists of alternate weeks of three (3) consecutive workdays of twelve (12) consecutive hours each, followed by four (4) consecutive workdays, three of which consist of twelve (12) consecutive hours each and one (1) day of eight (8) consecutive hours.

For Dispatchers, Senior Dispatchers or Jailers working the 3/12 work schedule, their designated FLSA workweek shall begin exactly four hours after the start time of their eight (8) hour shift on the day of the week that corresponds with the employee’s alternating regular day off. For example, if the employee’s alternating regular day off is a Friday, their FLSA workweek begins four (4) hours after the start of their workday on Friday.

28.3 Benefit Modification for Those Assigned to Alternate Work Schedules:

The City and the Association agree to the following modifications in benefits for employees assigned to alternate work schedules:
a) The City shall have the right, at its sole discretion, to pay or provide time off for holidays;
b) The City shall have the right, at its sole discretion, to require employees to use vacation or compensatory time in conjunction with scheduled holidays taken off;
c) The City shall have the right, at its sole discretion, to establish the Fair Labor Standards Act (FLSA) "work period" for all employees assigned to alternate work schedules.

29.0 Uniforms:

With the exception of Detectives addressed in Article 30.0 below, employees in the bargaining unit are provided with uniforms to perform their job. The monetary value for the for the purchase, rental and/or maintenance of required clothing, which is a ready substitute for personal attire employees would otherwise have to acquire and maintain is as follows: Sworn $450 annually, $17.31 bi-weekly. Sworn Detectives $350 annually, $13.47 bi-weekly. Professional Staff $200 annually, $7.70 biweekly.

The parties agree that to the extent permitted by law, the monetary value for the purchase, rental and/or maintenance of required clothing is special compensation and shall be reported as such pursuant to Title 2, CCR 571(a)(5) for a unit member 4444666 of 5554444555
35 who are classic members under the Public Employees’ Pension Reform Act (PEPRA). This shall not be reported for “new members”. The City is not permitted to have the value of the uniforms reported as special compensation for “New Members” as defined by PEPRA.

30.0 Investigator Clothing Allowance: Police Officers assigned to the Detective Division shall be provided a monthly clothing allowance of one hundred dollars ($100).

The parties agree that to the extent permitted by law, the monetary value for the purchase, rental and/or maintenance of required clothing is special compensation and shall be reported as such pursuant to Title 2, CCR 571(a)(5) for a unit member who are classic members under the Public Employees’ Pension Reform Act (PEPRA). This shall not be reported for “new members”. The City is not permitted to have the value of the uniforms reported as special compensation for “New Members” as defined by PEPRA.

31.0 Bullet-proof Vests: Bullet-proof vests are provided to sworn employees of the police department. As such, these employees must wear their vests while in the field or attending the police range. The same rule shall apply to any professional employee provided with a bullet-proof vest.

32.0 Layoff:

32.1 Intent of Procedure: For reasons of economy or efficiency, or in the interest or mandate of the public, reductions or curtailments of City services may be required. In such an event, it may be necessary to lay off one (1) or more City employees. The following procedure is intended to give primary consideration to seniority and job performance whenever layoff of employees is necessary.

The City's decision to abolish a position is not subject to the employee's right of appeal or grievance.

32.2 Procedures:

32.2.1 Abolition of a Position: When a position within the Police Department is abolished, all employees in the subject classification shall be listed in order of the employee’s length of service with the City. The Chief of Police shall choose the least senior employee to be laid off for each position abolished.

If in any case length of service should be equal, the Chief of Police or their designee may take job performance into consideration in determining the employee to be laid off. Employees to be laid off shall be given two (2) weeks’ written notice of the action. 4444777 of 5554444555
36 32.2.2 Transfer or Demotion to Avoid Layoff: Any employee who is to be laid off may request, in writing, to be transferred to a vacant position, subject to Personnel Rule 2.10, within the two (2) week notification period.

An employee who has held regular status in a lower classification within the Police Department and/or division may request, within the two (2) week notification period, demotion to a position in the lower classification or an equivalent class in order to avoid layoff. If the employee makes such a request, a list of employees shall be prepared and the subject employee shall have the employee’s name placed among the other names on said list according to the employee’s total length of service in said class and any higher class within the Police Department. Thereafter, the Chief of Police or their designee shall choose an employee to be laid off according to the provisions of this section.

32.2.3 Severance Pay: A regular employee of the City who has been employed for a minimum of two (2) years and has been laid off because of either the abolition of the employee’s position or as a result of a demotion of another employee to avoid layoff will be eligible for two (2) weeks of severance pay. A regular employee who is similarly laid off and who has worked for the City a minimum of ten (10) years will be eligible for three (3) weeks' salary upon layoff.

32.2.4 Reemployment Lists: The names of all Regular employees who were laid off or who were demoted to avoid layoff shall be placed on a reemployment list for two (2) years. Whenever a vacancy occurs in the classes from which employees were laid off, the qualifying employees on the layoff list will be notified of the vacancy, prior to announcing an open or promotional recruitment, and shall be offered the opportunity to apply for the position.

In such an event, the Chief of Police or their designee shall consider the former employee(s) from the layoff list prior to considering other candidates. However, the Chief of Police or their designee shall retain the right not to appoint the former employee(s) and may request an examination to establish a new eligibility list.

33.0 Personnel File Purging: The City and Association agree that disciplinary written reprimands or lesser discipline may be removed from police department, sworn and professional staff employees' personnel files, under the following conditions:
1) The employee shall submit a written request to the Chief of Police requesting the removal of a specific written reprimand; and 2) The written reprimand must be at least five (5) years old.
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37 34.0 Jailers: The only Article of this MOU which applies to Part-Time Jailers is this Article. Each January thereafter, eligible Part-Time Jailers have the option to have the City either A) deposit $2,500 into a flexible spending plan to use for eligible IRS 125 expenses, or B) provide the employee with reimbursement, capped at $2,500 per calendar year for the purchase of their own medical insurance premiums. The Association agrees to hold the City harmless for any tax implications associated with Option B. Eligible Part-Time Jailers are those who have worked for the City as a Jailer for at least 1772 hours in the prior twelve months. Part-Time Jailers may utilize the grievance procedure only to challenge a violation of this Article.

35.0 Release Time: The City agrees to allow the Association (which may include the President or other members of the Association four hundred (400) hours of paid release time to conduct Association business, matters and training subject to the approval (in writing) of the Chief of Police or their designee which shall only be withheld for critical operational needs. Each year in the pay period following January 1) the City will replenish the bank to four hundred (400) hours. As such, the City will add whatever number of hours is necessary so that it has 400 hours.

The Association agrees to reimburse the City the hourly rate of a top step Police Officer to include all statutory add-ons such as PERS, unemployment and Workers’ Compensation if the release time does not result in any overtime cost. In the event that the release time requires overtime of the employee released or overtime of another employee to back fill the released hours, the Association agrees to reimburse the City at the hourly overtime rate of a top step Police Officer working overtime. The decision to require overtime or back fill will be within the City’s sole discretion.

The City shall bill the Association within thirty (30) days after such release time is used and the Association will reimburse the City within thirty (30) days of the billing.

36.0 Management Rights: The parties agree to Section 10.3 – City Rights from the City of Laguna Beach Personnel Rules and Regulations.

37.0 Closing: Except as provided herein, all wages, hours, and other terms and conditions of employment presently enjoyed by affected employees shall remain in full force and effect subject to either party’s rights under the Meyers-MiliasBrown Act.

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38 FOR THE CITY OF LAGUNA BEACH

_________________________ __________________________
Dave Kiff, City Manager Date
_________________________ __________________________
Michelle Bannigan, Date
Director of Finance

_________________________ __________________________
Pat Donegan, Assistant City Attorney Date

_________________________ __________________________
Ian Morgan, Classification Date
And Compensation Consultant

_________________________ __________________________
Peter Brown, Labor Negotiator Date
FOR THE LAGUNA BEACH POLICE EMPLOYEES’ ASSOCIATION
_________________________ __________________________
Brendan Rowland, PEA President Date
_________________________ __________________________
Jacob Kalinski, Legal Counsel for PEA Date
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5551111 of 5554444555

STAFF REPORT
Meeting Date:

September 22, 2026

CONSENT
19 SUBJECT: 31985 AND 31987 COAST HIGHWAY: RESOLUTION FOR APPEAL OF DESIGN REVIEW BOARD APPROVAL OF DESIGN REVIEW 2026-0024, COASTAL DEVELOPMENT PERMIT 2026-0025, AND VARIANCE 2026-0026 FOR

DEMOLITION OF THE EXISTING STRUCTURES AND CONSTRUCTION OF A

NEW SINGLE-FAMILY RESIDENCE WITH A TWO-CAR GARAGE AND OTHER RELATED IMPROVEMENTS AT 31985 AND 31987 COAST HIGHWAY IN THE R-1, RESIDENTIAL LOW-DENSITY ZONE, AND CATEGORICAL EXEMPTION

UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION 15303
RECOMMENDATION: It is recommended that the City Council:

1. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA BEACH, CALIFORNIA, DENYING THE APPEAL AND SUSTAINING THE DESIGN REVIEW BOARD’S APPROVAL OF DESIGN REVIEW 2026-0024, COASTAL DEVELOPMENT PERMIT 2026-0025, AND VARIANCE 2026-0026 FOR DEMOLITION OF

THE EXISTING STRUCTURES AND CONSTRUCTION OF A NEW SINGLE-FAMILY

RESIDENCE WITH A TWO-CAR GARAGE AND OTHER RELATED IMPROVEMENTS AT 31985 AND 31987 COAST HIGHWAY IN THE R-1, RESIDENTIAL LOW-DENSITY ZONE

SUBJECT TO IMPOSING MORE RESTRICTIVE CONDITIONS OF APPROVAL, AND

FINDING THE PROJECT CATEGORICALLY EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION 15303”.

SUMMARY OF THE MATTER
On August 4, 2026, the City Council conducted a public hearing regarding the appeal of the Design Review Board’s approval of Design Review 2026-0024, Coastal Development Permit 2026-0025, and Variance 2026-0026 for the property located at 31985 and 31987 Coast Highway. The purpose of this item is to provide the City Council with an updated resolution denying the appeal and sustaining the Design Review Board’s approval, subject to imposing more restrictive conditions of approval, consistent with the additional analysis and findings by the City Council during the August 4, 2026 appeal hearing. While explained in more detail in the attached City Council Resolution, the added analysis and findings include further discussion on lowering the roof structure of the main residence by one additional foot as conditioned by the City Council and incorporating revisions related to the analysis of public views.

The previous staff report and attachments can be found at:
https://lagunabeachcity.primegov.com/Portal/Meeting?meetingTemplateId=975

FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget. 1111 of 6661111777
APPEAL OF THE APPROVAL OF DR 2026-0024, CDP 2026-0025 AND VAR 2026-0026 AT 31985 AND 31987 COAST HIGHWAY
September 22, 2026

Page 2 of 2 ends

ENVIRONMENTAL ANALYSIS
Pursuant to the California Environmental Quality Act (CEQA), the Project is categorically exempt pursuant to State CEQA Guidelines Section 15303 – New Construction or Conversion of Small Structures, in that the project consists of construction and location of limited numbers of new, small structures. Here, the Project involves the demolition of existing structures and the construction of a single-family dwelling with an attached two-car garage with new vehicular access, elevated decks, grading, retaining walls, pool, spa, pedestrian entry feature, and landscaping. Furthermore, the project is an allowed residential use in the R-1 zone.

Further, none of the exceptions outlined in CEQA Guidelines section 15300.2 apply. The project site does not contain any environmentally sensitive areas except for being an oceanfront property. There will be no cumulative impact resulting from successive projects of the same type in the same place, over time. There are no unusual circumstances resulting in a significant impact on the environment. There will be no damage to scenic resources, including trees, historic buildings, rock outcroppings or similar resources, within a highway officially designated as a state scenic highway as it is proposed less than 3.6 feet above the curb along Coast Highway, which is a highway officially designated as a state scenic highway. The Project is not located on a hazardous waste site or any other site included on a list compiled pursuant to Government Code section 65962.5. The Project will not result in significant adverse impacts to historical resources as defined by CEQA. Consequently, additional environmental analysis is not necessary to meet the requirements of the CEQA.

ATTACHMENTS

1. City Council Resolution
Submitted By: Matthew Schneider Approved: .David A Kiff Matthew Schneider, Director of
Community Development
Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Wendy Jung, Principal Planner Jane Abzug, Assistant City Attorney Anthony Viera, Deputy Director of Community
Development
2222 of 6661111777
RESOLUTION NO. 26.XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA BEACH, CALIFORNIA, DENYING THE APPEAL AND
SUSTAINING THE DESIGN REVIEW BOARD’S APPROVAL OF
DESIGN REVIEW 2026-0024, COASTAL DEVELOPMENT PERMIT
2026-0025, AND VARIANCE 2026-0026 FOR DEMOLITION OF THE

EXISTING STRUCTURES AND CONSTRUCTION OF A NEW

SINGLE-FAMILY RESIDENCE WITH A TWO-CAR GARAGE AND
OTHER RELATED IMPROVEMENTS AT 31985 AND 31987 COAST
HIGHWAY IN THE R-1, RESIDENTIAL LOW-DENSITY ZONE

SUBJECT TO IMPOSING MORE RESTRICTIVE CONDITIONS OF

APPROVAL, AND FINDING THE PROJECT CATEGORICALLY

EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT GUIDELINES SECTION 15303
WHEREAS, the property owner, 888 Pacific Holdings LLC and Rama Krishna1 (“Applicant”), of 31985 and 31987 Coast Highway (the “Property”), applied for Design Review (“DR”) 2026-0024 for demolition of the existing structures and construction of a new single-family dwelling with a two-car garage and new vehicular access, elevator height, elevated decks, grading, retaining walls, pool, spa, pedestrian entry feature, landscaping, and construction in an environmentally sensitive area (due to oceanfront proximity) pursuant to Laguna Beach Municipal Code (“LBMC”) Section 25.05.040(B)(1), Variance 2026-0026 for 1) reconstruction of the funicular and associated access components (stairs, landings, terrace, retaining walls, and gates) and maintaining stairs, walkways, and retaining walls within the bluff pursuant to LBMC Section

25.50.004(B)(4) and 2) to exceed the maximum wall height within the front yard setback pursuant to LBMC Section 25.50.012(B)(3), and Coastal Development Permit (“CDP”) 2026-0025 for the above-described improvements pursuant to LBMC Section 25.07.008(A)(1)(c) in the R-1 (Residential Low Density) zone (the “Project”); and
1 The Project’s agent is Morris Skenderian who is within the definition of Applicant. 3333 of 6661111777
-2- Reso. #
WHEREAS, on February 26, 2026, the Design Review Board (“Board”) held a duly noticed public hearing and considered the Project. After receiving input from staff, the Applicant, and public comments, the Board discussed the Project and approved the Project with a 4-0 vote under Board Resolution No. 2026-0024, conditionally approving the Project and finding the Project categorically exemption pursuant to the California Environmental Quality Act (“CEQA”) Guidelines Section 15303 (the “Board Approval”); and
WHEREAS, on March 10, 2026, Bryan Menne (“Appellant”) of 31988 10th Avenue, filed an appeal of the Board Approval (“Appeal”); and
WHEREAS, public notice was duly provided to consider the Appeal of the Project at the May 13, 2026 City Council meeting in accordance with LBMC Section 25.05.065; and WHEREAS, on May 13, 2026, the City Council held a public hearing on the Appeal and carefully considered the oral and documentary evidence and arguments presented, and took the following actions: (1) directed the applicant to review the Coastal Commission’s public hearing on the Reyna property, located at 31451 Coast Highway (the “Reyna project”), which was held at the same time as the City Council’s May 13, 2026 public hearing on the appeal of the Project, in an effort to guide the City Council’s decision in a manner that would make the Project successful at the California Coastal Commission, if appealed; and (2) continued the public hearing to the August 4, 2026; and
WHEREAS, on August 4, 2026, the City Council held a public hearing on the Appeal and considered all evidence, closed the public hearing, deliberated, and directed City staff to revise the City Council resolution to uphold the Board Approval and conditionally approve the Project subject to imposing more restrictive conditions of approval based on the City Council deliberations 4444 of 6661111777
-3- Reso. #
at its August 4, 2026 meeting; and
WHEREAS, on September 22, 2026, the City Council considered the proposed revised resolution on its consent agenda for the meeting.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:

SECTION 1. The recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

SECTION 2. The City Council hereby makes the following findings in response to grounds for the Appeal stated in Appellants’ notice of Appeal:

1. “Public View Protection, Precedent, and Consistency with Prior Approvals” City Council’s Response
The Appellant asserts that the Project blocks a 45-foot-wide public ocean view corridor and conflicts with policies2 of the Land Use Element (“LUE”), coastal Land Use Plan (“LUP”), 2 LUE Policies 2.8 [“Require building design and siting to be compatible and integrated with natural topographic features, minimize significant alteration of natural topography and/or other significant onsite resources, and protect public views as specified in the Design Guidelines and the Landscape and Scenic Highways Resource Document”]; 2.9 [“Require the use of appropriate landscaping, special architectural treatments, and/or siting considerations to protect public views for projects visible from major highways and arterial streets”]; 2.10 [“Maximize the preservation of coastal and canyon views (consistent with the principle of view equity) from existing properties and minimize blockage of existing public and private views. Best efforts should be made to site new development in locations that minimize adverse impacts on views from public locations (e.g., roads, bluff top trails, visitor-serving facilities, etc.)”], 3.10 [“Require building design and siting to be compatible and integrated with natural topographic features, minimize significant alteration of natural topography or other significant on-site resources, and protect public views as specified in the Design Guidelines and Landscape and Scenic Highways Resource Document by maintaining the low-profile character of structures. Require use of appropriate landscaping, special architectural treatments, and siting considerations for projects visible from major highways and arterial streets. Best efforts should be made to site new development in locations that minimize adverse impacts on views from public locations (e.g., roads, bluff-top trails, visitor-serving facilities, etc.).”],

7.3[“Design and site new development to protect natural and environmentally sensitive resources, such as areas of unique scenic quality, public views, and visual compatibility with surrounding uses and to minimize natural landform alterations. (Sane as Policy 10.2.)”], 10.2 [“Design and site new development to protect natural and environmentally sensitive resources such as areas of unique scenic quality, public 555 of 6661111777
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and the Landscape and Scenic Highways Element. As an initial matter, while the Appellant references the Landscape and Scenic Highways Element generally, the Appeal does not identify any specific policy language with which the Project is inconsistent. In the absence of identified policy conflicts, there is no substantial evidence demonstrating that the Project violates any particular provision of that element. Further, City staff confirmed that the element regulates landscaping and not construction of structures. Notwithstanding, the Project was reviewed for consistency with all applicable General Plan and LUP policies, including those related to scenic resources and public views.

The applicable policies do not require absolute preservation of all existing public or private views, nor do they mandate the creation or maintenance of a fixed-width public view corridor.

Rather, these policies require that new development protect and minimize impacts to public views to the extent feasible, while balancing other considerations such as site constraints, property rights, and compatible development. The Project was evaluated in this context, including analysis of its positioning from Coast Highway and nearby public vantage points such as pedestrian areas and beach accessways.

The Project was also evaluated in the context of the Coastal Commission’s action on the Reyna project, in which the Coastal Commission found substantial issues on two points: (1) the bluff edge determination; and (2) coastal resource (public view impacts). With respect to the bluff edge determination, the Coastal Commission found that its geologist, while relying upon the same language in the City’s Local Coastal Program (“LCP”) to determine the bluff edge as the City’s views, and visual compatibility with surrounding uses and to minimize landform alterations.”].) 666 of 6661111777
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geologist, arrived at the correct calculation for the bluff edge.3 Nevertheless, in applying the Coastal Commission geologist’s bluff edge determination, the Coastal Commission found that the application would result in a taking of property (i.e., only a 700 square-foot residence would be allowed and it would need to be located underground). To avoid the taking, the Coastal Commission relied upon a provision in the Coastal Act to conclude that it could relax the bluff edge setback of 25 feet. (Pub. Res. Code § 30010; McAllister v. California Coastal Commission (2008) 169 Cal.App.4th 912, 939 [government may limit application of resource protection policies to the extent necessary to allow a property owner a constitutionally reasonable economic use the property].) Accordingly, in the Coastal Commission’s analysis, it pivoted to applying the next most stringent setback (i.e., the building stringline), which is a diagonal line that runs from the 3 Land Use Element Actions 7.3.5 [“Prohibit development on oceanfront bluff faces, except public improvements providing public access, protecting coastal resources, or providing for public safety. Permit such improvements only when no feasible alternative exists and when designed and constructed to minimize landform alteration of the oceanfront bluff face to not contribute to further erosion of the oceanfront bluff face, and to be visually compatible with the surrounding area to the maximum extent feasible”]; 10.2.7 [Require all new development located on oceanfront bluffs to be sited in accordance with the stringline but not less than 25 feet from the bluff edge. This requirement shall apply to the principal structure and major accessory structures such as guesthouses and pools that require a structural foundation. The setback shall be increased where necessary to ensure geologic safety and stability of the development.”].) Oceanfront Bluff/Coastal Bluff is defined to mean a bluff overlooking a beach or shoreline or that is subject to marine erosion. Many oceanfront bluffs consist of a gently sloping upper bluff and a steeper lower bluff or sea cliff. The term “oceanfront bluff” or “coastal bluff” refers to the entire slope between a marine terrace or upland area and the sea. The term “sea cliff” refers to the lower, near vertical portion of an oceanfront bluff.

Here, the City Council finds that the Project complies with both the blufftop setback (by an additional 10 feet beyond the required 25 foot setback) and the building stringline setback.

Accordingly, the Project adequately protects the coastal resource (i.e., the bluff).

With respect to the coastal resource impacts, the Coastal Commission found that the Reyna project adversely impacted public views. The Coastal Commission noted Open Space and Conservation Element Policy 7-M, which states the following: “[n]ew development along Pacific Coast Highway shall preserve existing views where feasible and, where topography allows, new development shall be terraced below the grade of Pacific Coast Highway.” For the Reyna project, the Coastal Commission considered the steepest allowable driveway approach to the site and then reduced the height of the single-family residence as much as possible to keep consistency with the required grade for the driveway approach. Accordingly, the Coastal Commission reduced the 888 of 6661111777
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height of the Reyna project to two feet and eleven inches above Coast Highway—since that is what the topography allows.

Here, consistent with the Coastal Commission analysis in the Reyna project, the City Council considered the topography of the site, which gets steeper the further north on the site, and the desire to protect the coastal bluff by continuing to meet and exceed the blufftop setback and building stringline setback, and the maximum grade of the driveway at the maximum of 14 percent slope and the plate heights of the garage and residence. Based upon the evidence, the City Council added the following more restrictive conditions of approval, without finding abuse of discretion of the Board Approval:
a. Relocate the residence to provide a minimum 16-foot south side yard setback and a 10- foot, three-inch north side yard setback, for a combined side yard setback of not less than 26 feet, three inches.
b. Reduce the maximum roof elevation of the garage to no higher than an elevation of 162.00 feet.
c. Reduce the maximum roof elevation of the main residence to no higher than an elevation of 162.50 feet.
d. To preserve views over and across the structure, no improvement, as defined in Section

25.08.018 of the Laguna Beach Municipal Code, shall project above the building envelope established by the maximum roof elevations of the garage and main residence, whether located in front of or behind the residence and garage. e. Within the view corridor between the south side property line and the south corner of the garage, no improvement shall exceed sixteen (16) inches above curb height, 999 of 6661111777
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including groundcover or other at-grade landscaping.

The City Council finds that the Project, as revised by the City Council, reduces the perceived bulk and creates a lower visual profile by lowering the garage and residences’ heights and results in viewing corridors that are not less than 26 feet, 3 inches (a minimum 16-foot south side yard setback and a 10-foot, 3-inch north side yard setback).

While Coast Highway is a public travel corridor, opportunities for the public to safely stop and experience stationary ocean views in the immediate vicinity of the Project site are limited. The Project frontage and surrounding segments of Coast Highway are predominantly lined with red curbs on both sides, restricting vehicle stopping and parking. On the ocean side of the highway, much of shoulder consists of curb cuts for existing driveway improvements, which further restrict parking opportunities. Given these conditions, the Project frontage functions primarily as a passthrough visual corridor rather than a designated or practical public viewing area.

Additionally, the Project site is located along a developed residential stretch of Coast Highway that is not identified as a protected public view corridor under the City’s certified LCP, including the Open Space and Conservation Element. This segment is distinguishable from areas such as the vicinity of Montage Laguna Beach, Thousand Steps Beach, and Aliso Beach, where established access points and designated view corridors support intentional public coastal viewing. 1111000 of 6661111777
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No comparable designated public view corridor exists at or near the Project site.

The City Council finds that the Project, as revised by the City Council, minimizes impacts to public coastal views and the blufftop while maintaining reasonable residential development of the Property.

2. “Bluff Development and Environmental Constraints”
City Council’s Response
The record does not support these assertions. The Project is located on a previously developed infill residential site, and no environmentally sensitive habitat area (“ESHA”) has been identified on the Property. The Project proposes to consolidate two legal lots into a single parcel, thereby eliminating a potential building site farther down the bluff. As a result, development is intentionally concentrated closer to the street, reducing the need for additional bluff encroachment and minimizing disturbance of the lower bluff area. This design approach concentrates improvements in a less environmentally sensitive portion of the site and is consistent with policies encouraging reduced intensity and greater protection of coastal bluff resources. The City Council finds that the Project, as revised by the City Council, minimizes impacts to public coastal views and the blufftop while maintaining reasonable residential development of the Property.

The Board evaluated and approved the requested variances for the funicular and related improvements on the bluff face, finding them consistent with site constraints, surrounding development patterns, and applicable findings. The Board also determined that these features provide a public safety benefit, including enhanced emergency access. The variance findings collectively support the funicular as a justified public safety improvement due to the site’s unique conditions and constrained access to Thousand Steps Beach. The Property’s unusual width and 11111111 of 6661111777
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location along a heavily used beach with a single, steep, and congested stairway (approximately 223 steps) create exceptional circumstances that limit timely emergency response. The proposed funicular secured for first responder use via easement provides a reliable, faster, and safer “express” route for emergency access and patient transport, supplementing existing stair access and aligning with privileges afforded to similarly situated properties. These related improvements to the funicular (i.e., the stairs, walkways and retaining walls) provide an important public service because they provide an alternative route up or down the bluff face for emergency response personnel should the funicular be filled-to-capacity. No general public access is contemplated.

Given the high volume of rescues and medical incidents in the area, the Project enhances public health and safety without detriment to the surrounding neighborhood and is consistent with General Plan policies that allow bluff development for public safety purposes. Moreover, the bluffs that overlook Thousand Steps Beach in this general area are typified not by pristine, natural conditions, but by limited improvements that traverse the bluff face down to the beach, which include private beach access stairs.

The Project was reviewed under the California Environmental Quality Act (“CEQA”) and determined to be exempt, with no substantial evidence of significant environmental impacts requiring further review. The CEQA determination is supported by specific findings that the Project qualifies for a Class 3 categorical exemption (CEQA Guidelines §15303) as it involves demolition of existing development and construction of a single-family residence with accessory improvements in a residential (R-1) zone. The record confirms there is no substantial evidence of unusual circumstances or a reasonable possibility of significant environmental effects. The site, while oceanfront, does not contain environmentally sensitive habitat areas, is not located on a 11112222 of 6661111777
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hazardous materials site, and will not impact historical resources. Additionally, the Project will not result in cumulative impacts, nor will it damage scenic resources along Coast Highway, as the improvements are limited in height and scale relative to the surrounding streetscape. None of the exceptions under CEQA Guidelines §15300.2 apply. Claims regarding infeasibility of the proposed improvements or the need for additional variances are speculative and not supported by the record.

3. “Driveway Access, and Alternative Site Plan Proposal” City Council’s Response
The City’s Zoning Code regulates driveway design, location, and maximum allowable slopes for new development. While certain existing conditions may be considered legal, nonconforming (“grandfathered”), such conditions may not be preserved when a property is redeveloped, nor do they establish a right to replicate or expand nonconforming features. New development is required to comply with current Zoning Code standards to the maximum extent feasible, including provisions related to driveway gradients, safety, and site circulation, unless a variance is granted. The approved Project was reviewed for consistency with these standards, and the proposed driveway configuration was determined to meet applicable Zoning Code requirements and public safety considerations.

With respect to the Appellant’s assertion that the alternative driveway design would provide safer access, the Project was evaluated through the City’s established review process, including consideration of site-specific constraints such as topography, sight distance, and access alignment with Coast Highway. The approved driveway location and design were found to provide safe and functional vehicular access consistent with City standards. The existence of other 11113333 of 6661111777
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driveways in the vicinity with steeper gradients does not establish a requirement or preference for similar configurations, as each property must be evaluated on its own physical characteristics and in compliance with current regulations. The existing driveway for 31987 Coast Highway, which has an approximate slope of 15%, does not conform to the gradient standards set forth in LBMC Section 25.52.008(I)(3) and, as such, cannot and should not be maintained in its current configuration. The Code limits driveway gradients to an average of ten percent within the first twenty feet from the right-of-way, fourteen percent for the next 130 feet, and twelve percent thereafter, unless specific exceptions apply. The proposed Project corrects a nonconforming condition by redesigning the driveway to align with current municipal standards, while responding to the inherent constraints of the site’s hillside topography.

Regarding the proposed alternative site plan, the City’s review authority is limited to the Project as submitted by the Applicant. While Design Review includes consideration of site planning, massing, and neighborhood compatibility pursuant to the City’s Design Review Criteria and adopted Design Guidelines, it does not obligate the decision-making body to redesign a project or require adoption of an alternative concept proposed by a third party. The approved Project was found to be consistent with applicable Design Review Criteria, including those related to scale, massing, and integration with the natural topography, as well as compatibility with the surrounding neighborhood context.

The Appellant’s alternative proposal also assumes the preservation of a fixed public view corridor across private property; however, neither the Zoning Code, Design Review Criteria, nor the City’s Design Guidelines require the dedication or maintenance of such a corridor in this context. As discussed herein, applicable policies require that visual impacts be minimized to the 11114444 of 6661111777
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extent feasible, not eliminated entirely.

The approved Project’s driveway design and overall site plan comply with applicable Zoning Code standards, satisfy Design Review Criteria, and provide safe and functional access.

The Appellant has not demonstrated that the approved design is inconsistent with applicable regulations or that the proposed alternative is required to achieve compliance.

4. “Project is Not Compatible with Neighborhood”
City Council’s Response
With respect to building width and massing, the subject site is atypical in that it consists of two legal lots under common ownership, resulting in an overall site width of approximately 104 feet. This condition distinguishes the Property from the prevailing lot pattern in the area, where parcels are typically 40 to 50 feet in width. It should also be noted that the site was previously developed with two single-family dwellings (one of which was demolished in 2018 pursuant to an issued and finaled building permit in 2018), and the proposed Project contemplates merging two lots into one lot and two single family dwellings into one single family dwelling.

The Project, as revised by the City Council, includes a minimum 16-foot south side yard setback and a minimum 10-foot, three-inch north side yard setback, resulting in a combined side yard setback of not less than 26 feet, three inches. These setbacks exceed the minimum Code requirements of approximately 10.4 feet each side (20.86 feet combined), as well as the typical 4- to 5-foot side yard setbacks associated with standard 40- to 50-foot-wide lots. Additionally, the Project, as revised by the City Council results in setbacks that provide greater separation between the proposed residence and adjacent development. The increased side yard setbacks also create a wider visual opening across the site from Coast Highway, thereby enhancing public view 1111555 of 6661111777
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opportunities while maintaining compatibility with the surrounding neighborhood.

The Design Review Criteria and the City’s Design Guidelines – A Guide to Residential Development emphasize that compatibility is not determined solely by numerical comparisons of building size, but rather by the relationship of a structure to its site, its articulation, and its integration with surrounding development and topography. In this case, the Project incorporates stepped massing, varied roof forms, and articulated elevations that break up building bulk and reduce the perception of scale. In particular, the Project was designed to step with the topography and maintain a single-story building appearance from the highway. Deck and courtyard areas are integrated into the overall design and are consistent with residential use in coastal settings, and their placement does not result in visual or spatial impacts that would render the Project incompatible with the neighborhood.

The City Council further finds that the revised roof elevations and setback configuration improves the relationship of the residence to the unusually wide parcel by increasing the openness between adjacent structures, reducing the perceived horizontal mass of the building as viewed from Coast Highway, and reinforcing the visual pattern of building separation that characterizes this portion of the coastal neighborhood.

Furthermore, the surrounding development pattern along Coast Highway is characterized by a mix of residential structures with varying widths, heights, and architectural forms, rather than a uniform or consistent building envelope. The area is a coastal residential neighborhood situated on a bluff above the shoreline, immediately adjacent to a primary coastal roadway (Coast Highway) with local residential streets extending inland. Development reflects a long-established coastal village pattern, where homes are closely integrated with the natural bluff, beach access 1111666 of 6661111777
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points, and ocean-oriented views. The proposed home is generally compatible with the existing coastal neighborhood character, particularly in terms of height, architectural style, and response to topography. The design aligns with the prevailing pattern of contemporary, multi-level coastal residences along the bluff.

The Project, as revised by the City Council, enhances neighborhood compatibility by reducing the visual presence of the structure along Coast Highway and providing greater spacing between development than the Board Approval.

The Appellant submitted an exhibit as part of the appeal depicting the north elevation and highlighting an area alleged to require a variance. The Appellant’s conclusion is based on a misinterpretation of the elevation drawing, which shows architectural articulation and varying wall planes rather than a uniform building face. While portions of the structure appear taller in the elevation view, compliance with height limits is determined by “the vertical distance from any point on the finished roof surface to the finished floor surface of the lowest floor measured directly below or to the natural or finished grade, whichever is more restrictive or lower4 ,” as verified in
the building sections and not by isolated visual projections in an elevation. The complete plan set, including all sections, demonstrates that no portion of the structure exceeds the maximum allowable building height at any point. As such, the perceived need for a height variance is not supported by the actual code-compliant height measurements reflected in the approved plans.

The Project was reviewed for compliance with the City’s Zoning Code, including standards governing height, floor area, setbacks, and site development regulations. The sections (Figures 1- 3) clearly demonstrate that the structure remains within the maximum allowable height for the 4 Laguna Beach Municipal Code Section 25.08.016(a) Words beginning with “H,” “Height, building.” 1111777 of 6661111777
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zone. The Project complies with the applicable height measurement provisions of the Zoning Code5
, and no variance is required. Due to the Project’s articulated design and the stepping of the building along the site’s down-sloping topography, height is distributed across varying elevations rather than concentrated at a single plane. This design approach is consistent with the City’s height measurement methodology and Design Guidelines, and it ensures that the Project complies with all applicable height limits. In fact, the figure below demonstrates that the originally proposed residence would be set eight feet below the maximum allowed building height at Coast Highway.

Figure 1: Building Site Section A - Sheet A.3.1
Demonstrating Compliance with Maximum Building Height Envelope 5 Maximum building height permitted above curb elevation is 15 feet. Maximum building height permitted above finished or natural grade, whichever is more restrictive, is 30 feet. 1111888 of 6661111777
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Figure 2: Building Site Section B - Sheet A.3.2
Demonstrating Compliance with Maximum Building Height Envelope Figure 3: Building Site Section C – Sheet A3.3 Depicting Proposed Structure is Below Maximum Building Height Requirements (15-feet Above Curb Elevation and 30-feet Above Finished Grade)
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In addition, the reduced roof elevations and revised side yard setbacks required by the City Council further reduce the perceived scale and massing of the residence by increasing the amount of open space surrounding the structure and lowering the residence’s height above the street, thereby improving its visual compatibility with adjacent development and enhancing view permeability from the public right-of-way. Accordingly, substantial evidence in the administrative record supports the finding that the Project complies with applicable Zoning Code standards, including height limits, and satisfies the City’s Design Review Criteria and Design Guidelines related to scale, massing, and neighborhood compatibility.

The Project, as modified by the City Council, provides additional separation from adjoining properties, enhances the public view corridor along Coast Highway, and further reduces the apparent visual mass of the residence while remaining compatible with the established pattern of development in the surrounding neighborhood. The Project will demolish an existing residence that presents a taller, two-story appearance along Coast Highway with a comparatively lowerprofile residence that reads as a one-story structure at the highway, consistent with development patterns in the immediate vicinity, which include both one- and two-story buildings along the highway frontage. In addition, because the Project is located on the upper portion of the subject property, the residence and associated decking would be set back approximately 160 feet northeast of the sandy beach, whereas many surrounding properties contain structures that are situated substantially closer to the beach, including numerous examples within 100 feet. The Appellant has not demonstrated that the Project, as modified by the City Council, is inconsistent with these requirements or that a variance is warranted.

5. “General Plan Consistency and Staff Report Accuracy” 2222000 of 6661111777
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City Council’s Response
It is acknowledged that the Board staff report contains inaccuracies regarding the extent of public ocean view impacts, including the discussion of compliance with LUE Policy 2.10. The record indicates that some level of public view impact will occur. However, the presence of such impacts does not necessarily render them significant or inconsistent with applicable Local Coastal Program policies as those policies do not require the complete absence of impacts to public ocean views from every public vantage point. General Plan Consistency does not require perfect conformity with every policy or the elimination of all impacts. Under established California land use law, a project is considered consistent if, on balance, it aligns with the General Plan’s goals, policies, and objectives. The City retains discretion to interpret and apply its adopted policies, including balancing competing objectives such as protection of visual resources (e.g., LUE Policies 2.8, 2.9, 2.10, 3.10, 7.3, and 10.2, and CLU Policy 2.9) and the reasonable development of private property. The staff report is based on a comprehensive review of the Project, including site inspections, analysis of plans and sections, evaluation of story poles, and application of the City’s adopted policies and guidelines. Moreover, the Board independently reviewed the evidence, considered public testimony, and exercised its own judgment in making the required findings. The decision is therefore supported not only by staff analysis but by the independent evaluation of the hearing body.

The response to Appeal Contention No. 1 is incorporated herein by reference. The City Council finds that the Project, as conditioned by the City Council, protects public coastal views and scenic resources.

With respect to neighborhood compatibility and view equity, the Design Review Criteria 22221111 of 6661111777
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and Design Guidelines require that projects be compatible in scale, massing, and character, and that they reasonably balance the protection of views with site constraints and development rights.

The Project, as conditioned by the City Council, increases the combined side yard setback of not less than 26 feet, three inches, together with the reduction in the maximum roof elevations of the residence and garage, further reduces the perceived scale and bulk of the Project, increases building separation, and creates a wider and more open visual corridor across the site from Coast Highway.

To contextualize this within its surroundings, the Project’s height, bulk, and overall profile are consistent with and in several respects less visually prominent than nearby developed properties of similar zoning designation, with a proposed height of less than 3.6 feet above the curb elevation at Coast Highway on the north side. Adjacent and nearby buildings exhibit a mix of one- and twostory forms, with variation in rooflines and building footprints, and are often accompanied by mature vegetation that further softens their visual presence. The surrounding Coast Highway corridor is characterized by a diverse pattern of development, including multi-level structures of varying size and form due to topographic and lot configuration differences. The Project, as conditioned by the City Council, remains compatible with this established pattern of development while providing greater visual openness and reduced massing than the original proposal. The Project remains within allowable lot coverage limits (35% maximum; 28% proposed) and reduces apparent bulk through articulation and terracing. Front, side, and rear setbacks in the vicinity are consistent with zoning standards, with some properties built closer to property lines. The Project exceeds the minimum required setbacks, creating greater separation than is typical in the area. The modified side yard setbacks substantially exceed the minimum zoning requirements and provide greater separation than is typical within the surrounding neighborhood, while the reduced roof 22222222 of 6661111777
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elevations further lessen the visual profile of the residence as viewed from Coast Highway.

Following its independent review of the administrative record and public testimony, the City Council determined that additional modifications to the Project through more restrictive conditions of approval were appropriate to further implement the General Plan and certified Local Coastal Program. The Council's action reflects its independent exercise of discretion to require increased setbacks, lower roof elevations, and subsequent review of revised plans by the Director of Community Development to ensure that the final construction documents implement the City Council's direction while remaining consistent with all applicable provisions of the Laguna Beach Municipal Code and the conditions of approval. Any revisions beyond the scope of the City Council's action shall require review through the applicable approval process.

6. “Public Input and Process Concerns”
City Council’s Response
The administrative record demonstrates that public input was appropriately solicited, documented, and considered throughout the review process. The public hearing notice noted oral testimony could be provided at the public hearing and accepted written comments until 5:30 p.m. on the business day preceding the hearing, ensuring a reasonable opportunity for participation. The Board agenda similarly provided for in-person and written submissions via mail and email, with a defined deadline to allow adequate time for review. Public correspondence received after agenda posting is distributed to Board members and linked to the agenda to be included as part of the public record. The record includes the notice, agenda, and submitted comments, confirming that public input was received and made available for consideration. Additionally, the staff report accurately summarized written correspondence received from neighboring property owners prior 22223333 of 6661111777
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to the posting of the agenda (incorporated as Attachment 13 of the DRB Staff Report), including concerns related to building size, height, massing, potential view impacts, privacy, setbacks, and construction-related effects6.

In addition to written correspondence, the Board conducted site visits, received oral public testimony during a duly noticed public hearing, and engaged in deliberation prior to rendering its decision. The Board was therefore fully informed of the range of neighborhood concerns and was not limited to the summaries contained in the staff report.

Furthermore, the record reflects that the Applicant conducted early outreach to surrounding property owners prior to finalizing the Project design, including direct meetings and communications with multiple neighbors to understand and respond to potential concerns. This outreach informed the evolution of the Project, including siting, setbacks, and design considerations.

It is important to note that the staff report is intended to provide a summary of key issues and does not reproduce all correspondence verbatim. Allegations that concerns were “misrepresented” reflect a difference in interpretation rather than evidence of procedural deficiency. All submitted correspondence was part of the public record and provided to the Board for independent review.

Accordingly, the City provided adequate public notice, opportunity for input, and fair consideration of community concerns, consistent with applicable legal requirements and due process standards. No evidence has been presented demonstrating that any alleged deficiency in summarizing correspondence prejudiced the Board’s decision or impaired the integrity of the 6 Refer to the Public Correspondence section of the February 26, 2026 DRB Staff Report – Pages 27-28 (May 13, 2026 Agenda Report, Attachment 5).
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review process.

Lastly, the City Council conducted a duly notice public hearing on the Appeal and provided the opportunity for public comment.

7. “Grading Impacts”
City Council’s Response
Grading and structural design were reviewed for compliance with applicable Municipal Code, geotechnical, and safety standards. The Project includes approximately 2,885 cubic yards of export, consisting entirely of cut, and is primarily intended to lower the structure into the existing slope. This design approach is a key component of the Project’s overall strategy to reduce building height, minimize visual prominence, and preserve public and private ocean views to the extent feasible. Grading is confined to the previously developed portion of the site and does not extend into undisturbed areas, the ocean bluff, or the required bluff setback. No environmentally sensitive habitat areas, significant natural features, or watercourses are present or impacted. The Project is designed to follow the site’s sloping topography through a stepped and terraced form, thereby minimizing alteration of the natural landform and ensuring consistency with applicable General Plan policies, including those related to scenic resource protection and site integration.

With respect to construction-related impacts such as haul trips, noise, and traffic, these are temporary in nature and typical of residential construction projects of similar scope. Such impacts are regulated through existing Municipal Code provisions and standard construction management practices, including haul route controls, work hour limitations, and noise regulations. No substantial evidence has been provided to demonstrate that these temporary impacts would result in a significant or unmitigable effect. Moreover, it is precisely the Project’s grading that will allow 2222555 of 6661111777
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the Project to maintain a low, single-story profile at Coast Highway, maximizing public ocean views in accordance with applicable General Plan policy and the View Equity design review criterion.

While the Appellant suggests that a reduced grading alternative may be feasible, the City is not required to adopt an alternative design where the approved Project already meets applicable development standards and policy objectives. In this case, the proposed grading represents a balanced and intentional design solution that minimizes visual and bulk impacts while maintaining reasonable development of the Property. Accordingly, the record supports the finding that the proposed grading is appropriate, limited to the extent feasible, and consistent with the General Plan, Design Guidelines, and applicable Municipal Code requirements.

8. “Incomplete Story Pole Installation”
City Council’s Response
LBMC Section 25.05.040 requires that staking be installed in a manner sufficient to identify the location and envelope of proposed development so that its potential visual impacts can be reasonably assessed. In this case, the Project was staked in accordance with applicable City requirements and was available for public viewing 21 days prior to the hearing. No concerns regarding the adequacy, accuracy, or visibility of the staking were raised by members of the public, the Appellant, or Board members at any point during the public review process or at the duly noticed hearing. Interested parties had a reasonable opportunity to review and understand the Project’s scale and configuration in the field.

Additionally, the Board conducted independent site visits and considered the Project from multiple vantage points, including surrounding public areas and adjacent properties. The Board 2222666 of 6661111777
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also received and reviewed a comprehensive set of materials, including architectural plans, certified staking plan, building sections, and renderings, which supplemented the information conveyed by the staking. Board members further engaged with the Applicant and members of the public, including neighboring property owners, to fully evaluate potential impacts prior to rendering a decision.

The Board Approval was based on substantial evidence in the administrative record, including but not limited to the story pole installation, Project plans, staff analysis, and public testimony. The decision-making body also exercised its discretion to impose Project-specific conditions and modifications to address site design and compatibility considerations.

The Appellant has not identified any specific deficiency in the staking that would rise to the level of a violation of LBMC Section 25.05.040, nor demonstrated that any alleged deficiency resulted in prejudice or impaired the Board’s ability to make informed findings. Accordingly, the record supports the conclusion that the staking was adequate for purposes of design review, and that the Board’s decision was informed, procedurally proper, and consistent with applicable Municipal Code requirements. Accordingly, this appeal contention does not provide a basis to overturn the approval.

SECTION 3. The City Council hereby makes the following findings and facts supporting findings for DR 2026-0024:

Finding No. 1: Physical improvements and site developments related to the Project are designed and located in a manner in overall consistency with the design review criteria specified in Section 25.05.040(H), as set forth below:
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1. Access. Conflicts between vehicles, pedestrians and other modes of transportation should be minimized by specifically providing for each applicable mode of transportation.

Handicapped access shall be provided as required by applicable statutes.

The Project, as conditioned by the City Council, is not expected to create conflicts between vehicular, pedestrian, or other modes of transportation. Site access will continue to be provided from Coast Highway. The required onsite turnaround has been provided, and vehicles will exit the site nosing into traffic. The existing sidewalk will jog at the new driveway apron. A vehicular gate is setback from the sidewalk where vegetation is proposed.

A wall and vehicular driveway gate are proposed within the front setback and have been staked with story poles. A variance is concurrently sought for the encroachment into the setback.

However, the Project, as conditioned by the City Council, reduces the extent of such encroachment. The wall and vehicular driveway gate are consistent with the existing streetscape character, where walls, fences, gates, and garages are commonly located at or near the sidewalk.

The proposed wall and fence height is limited in accordance with the conditions of approval.

2. Design Articulation: Within the allowable building envelope, the appearance of building and retaining wall mass should be minimized. Articulation techniques including, but not limited to, separation, offsets, terracing and reducing the size of any one element in the structure may be used to reduce the appearance of mass.

The Project, as conditioned by the City Council, minimizes the appearance of mass through a terraced and stacked design that follows the natural down slope of the site. The City Council finds that the Project, as revised by the City Council, reduces the perceived bulk and creates a lower visual profile by lowering the garage and residences’ heights and results in viewing corridors 2222888 of 6661111777
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that are not less than 26 feet, 3 inches (a minimum 16-foot south side yard setback and a 10-foot, 3-inch north side yard setback).

3. Design Integrity: Consistency with the applicant’s chosen style of architecture should be achieved by the use of appropriate materials and details. Remodels should be harmonious with the remaining existing architecture.

The architectural style reflects a modern aesthetic, incorporating characteristic elements such as varied height parapet roof forms. Proposed exterior finishes reinforce this style and include a medium tan colored smooth stucco, rough and smooth limestone veneer, and extra dark bronze metal framed doors and windows, fencing, railings, and garage door. Glass deck railings are also proposed.

4. Environmental Context: Development should preserve and, where possible, enhance the city’s scenic natural setting. Natural features, such as existing heritage trees, rock outcropping, ridgelines and significant watercourses should be protected. Existing terrain should be utilized in the design and grading should be minimized.

The Project has been designed to step with the existing gently sloping terrain. No heritage trees, significant natural features, or watercourses are present on the property. The Project includes approximately 2,885 cubic yards of grading export, which is primarily proposed to lower the 2222999 of 6661111777
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building into the slope to preserve neighboring ocean views. As a result, the Project is not expected to adversely affect the City’s scenic natural setting.

5. General Plan Compliance: The development shall comply with all applicable policies of the General Plan, including all of its elements, applicable specific plans, and the certified local coastal program.

The Project complies with the General Plan, including, but not limited to, the following policies:

General Plan Policies
Land Use (LU) Policy 2.8 Require building design and siting to be compatible and integrated with natural topographic features, minimize significant alteration of natural topography and/or other significant onsite resources, and protect public views as specified in the Design Guidelines and the Landscape and Scenic Highways Resource Document.

The Project, as conditioned by the City Council, has been designed to be compatible with and integrated into the site’s existing gently sloping topography through a stepped and terraced building form that follows the natural down slope of the property. The siting and massing of the structure minimizes perceived bulk and reduces visual impacts when viewed from the public rightof-way and surrounding properties. While grading is proposed, it is limited to only cut and is primarily intended to lower the building into the slope, thereby minimizing building height and preserving neighboring and public ocean views. No significant onsite natural resources are present or impacted by the development. As designed, the Project is consistent with LU Policy 2.8 and the applicable Design Guidelines by respecting existing terrain, minimizing topographic alteration to the extent feasible, and protecting public views.
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LU Policy 2.10 Maximize the preservation of coastal and canyon views (consistent with the principle of view equity) from existing properties and minimize blockage of existing public and private views. Best efforts should be made to site new development in locations that minimize adverse impacts on views from public locations (e.g., roads, bluff top trails, visitor-serving facilities, etc.).

The Project has been carefully sited and designed to preserve coastal and canyon views from surrounding properties and public viewpoints to the greatest extent feasible. The stepped and terraced building form follows the natural upslope of the site and reduces perceived height and mass. No public bluff-top trails or visitor-serving facilities are within the Project site. Accordingly, the Project is consistent with LU Policy 2.10 and the principle of view equity by minimizing impacts to existing public and private coastal and canyon views.

LU Policy 3.10 Require building design and siting to be compatible and integrated with natural topographic features, minimize significant alteration of natural topography or other 33331111 of 6661111777
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significant on-site resources, and protect public views as specified in the Design Guidelines and Landscape and Scenic Highways Resource Document by maintaining the low-profile character of structures. Require use of appropriate landscaping, special architectural treatments, and siting considerations for projects visible from major highways and arterial streets. Best efforts should be made to site new development in locations that minimize adverse impacts on views from public locations (e.g., roads, bluff-top trails, visitor-serving facilities, etc.).

The Project has been designed and sited to be compatible with and integrated into the site’s existing gently sloping topography through a stepped and terraced building form that maintains a low-profile appearance. The building is set back from the ocean bluff area that consists of 18,166 square feet (52.3% of the property). The design minimizes perceived height and mass and reduces the need for excessive grading. Proposed grading cut is primarily intended to lower the structure into the slope, thereby minimizing alteration of the natural topography while preserving public and neighboring views.

The Project protects public views consistent with the Design Guidelines and the Landscape and Scenic Highways Resource Document by maintaining roof heights and building massing that remain visually subordinate to the surrounding streetscape.

The Project, as conditioned by the City Council, incorporates appropriate architectural articulation and material variation to reduce visual prominence, and proposed landscaping will further soften building edges and integrate the structure into its hillside setting. The site is visible from designated scenic highways and the beach visitor-serving facilities. The Project, as conditioned by the City Council, minimizes adverse impacts on views from public locations and is consistent with applicable Design Guidelines and scenic resource policies.

LU Policy 7.3 Design and site new development to protect natural and environmentally sensitive resources, such as areas of unique scenic quality, public views, and visual compatibility with surrounding uses and to minimize natural landform alterations. (Same as Policy 10.2.) GOAL:

Protect, preserve, and enhance the community’s natural resources.

The development is integrated with the site’s existing gently sloping topography through stepped and terraced building forms that follow the natural contours of the property and maintain a low-profile appearance when viewed from public vantage points. Building massing, roof forms, and architectural articulation reduce visual prominence and ensure compatibility with the scale and character of surrounding residential development. Grading is proposed primarily to lower the structure into the slope, thereby minimizing alteration of the natural landform and preserving public and private views to the extent feasible.

The building is set back from the ocean bluff area that consists of approximately 18,166 square feet (52.3% of the property). As designed, the Project minimizes impacts to scenic resources 33333333 of 6661111777
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and public views and is consistent with LU Policy 7.3 and the General Plan goal of protecting, preserving, and enhancing the community’s natural resources.

LU Policy 7.10 Require new construction and grading to be located in close proximity to preexisting development to minimize environmental impacts and growth-inducing potential.

The Project is consistent with LU Policy 7.10, which encourages new construction and grading to be in proximity to preexisting development to minimize environmental impacts and reduce growth-inducing potential. The new construction occupies areas already developed, and no expansion into previously undisturbed portions of the lot is proposed. Grading is concentrated within the existing development envelope, minimizing disturbance to natural terrain. By situating the new building largely on the footprint of the prior structure, the Project minimizes impacts on the site’s natural features and limits potential growth-inducing effects, consistent with the intent and objectives of LU Policy 7.10.

LU Policy 10.2 Design and site new development to protect natural and environmentally sensitive resources such as areas of unique scenic quality, public views, and visual compatibility with surrounding uses and to minimize landform alterations. (Same as Policy 7.3) GOAL: Ensure that proposals for new development, subdivisions, and major remodels are sufficiently evaluated to protect public health and safety and natural resources.

The development is integrated with the site’s existing gently sloping topography through stepped and terraced building forms that follow the natural contours of the property and maintain a low-profile appearance when viewed from public vantage points. Building massing, roof forms, and architectural articulation reduce visual prominence and ensure compatibility with the scale and character of surrounding residential development. Grading is proposed primarily to lower the 33334444 of 6661111777
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structure into the slope, thereby minimizing alteration of the natural landform and preserving public and private views to the extent feasible.

The building is set back from the ocean bluff area that consists of approximately 18,166 square feet (52.3% of the property). As designed, the Project minimizes impacts to scenic resources and public views and is consistent with LU Policy 10.2 and the General Plan goal of protecting public health and safety and natural resources.

6. Historic Preservation: Destruction or alteration to historic resources should be avoided whenever possible. See Chapter 25.45 for more information.

Neither the Property nor the existing structures on the Property are historic resources within the meaning of Chapter 25.45 as they are not listed on the Federal, California, or local register and there is no evidence of historicity in the record.

7. Landscaping: Landscaping shall be incorporated as an integrated part of the structure’s design and relate harmoniously to neighborhood and community landscaping themes.

View equity shall be an important consideration in the landscape design. The relevant landscaping guidelines contained in the City’s “Landscape and Scenic Highways Resource Document” should be incorporated, as appropriate, in the design and planned maintenance of proposed landscaping.

Sheets L-04 & L-05 includes the proposed landscape/fuel modification plan. The maintenance of heights and widths of trees and shrubs are noted. The landscaping is consistent with the Landscape and Scenic Highways Resource Document. There are no known neighborhood concerns relative to potential hedge impacts. The Project, as conditioned by the City Council, includes further limitations on the allowable landscaping on the Property. 3333555 of 6661111777
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8. Lighting and Glare: Adequate lighting for individual and public safety shall be provided in a manner which does not significantly impact neighboring properties. Reflective materials and appurtenances that cause glare or a negative visual impact (e.g., skylights, white rock roofs, high-gloss ceramic tile roofs, reflective glass, etc.) should be avoided or mitigated to a level of insignificance in those locations where those surfaces are visible from neighboring properties.

Site lighting is shown on Sheet L-06 and includes 11 low voltage LED recessed fixtures and 10 well lights along the driveway. Low voltage building lighting is shown on Sheet L.1 and includes a total of 120 fixtures (66 step lights, 42 sconces, 3 courtyard up-lights, and 9 recessed cans). All lighting except for the lower-level courtyard up-lights) will be low wattage LED, shielded, and directed downward, consistent with the City’s Good Neighbor Lighting Ordinance to avoid impacts to neighboring properties. Proposed non-reflective materials are specified for roofing, smooth stucco, and limestone stone veneer. Therefore, materials should not cause glare or a negative visual impact to other properties.

9. Neighborhood Compatibility: Development shall be compatible with the existing development in the neighborhood and respect neighborhood character. Neighborhood character is the sum of the qualities that distinguish areas within the City, including historical patterns of development (e.g., structural heights, mass, scale or size), village atmosphere, landscaping themes and architectural styles.

The area is a coastal residential neighborhood situated on a bluff above the shoreline, immediately adjacent to a primary coastal roadway (Coast Highway) with local residential streets extending inland. Development reflects a long-established coastal village pattern, where homes 3333666 of 6661111777
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are closely integrated with the natural bluff, beach access points, and ocean-oriented views. The proposed home is generally compatible with the existing coastal neighborhood character, particularly in terms of height, architectural style, and response to topography. The design aligns with the prevailing pattern of contemporary, multi-level coastal residences along the bluff.

10. Pedestrian Orientation: Commercial development design shall enhance and encourage pedestrian uses. Incorporation of articulated building masses, compact open spaces and courtyards, mixed use developments, use of landscaping as part of design, and orientation to pedestrian access should be maximized.

Design Review Criteria for Pedestrian Orientation is related to commercial development and this residential project is not subject to these criteria.

11. Privacy: The placement of activity areas (e.g., decks, picture windows and ceremonial or entertainment rooms) in locations that would result in a substantial invasion of privacy of neighboring properties should be minimized.

The proposed two-story home will be located closer to Coast Highway than both adjacent oceanfront homes that extend down the bluff. The City Council finds that the Project, as revised by the City Council, reduces the perceived bulk and creates a lower visual profile by lowering the garage and residences’ heights and results in spacing from other residences (a minimum 16-foot south side yard setback and a 10-foot, 3-inch north side yard setback). The proposed pool and spa area is located under the home and designed to not impact neighbor privacy. As such, the Project will not result in a substantial invasion of privacy to neighboring properties.

12. Public Art: Public art is encouraged and shall be displayed where feasible or required by the Art in Public Places ordinance.
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Design Review Criteria for Public Art is related to commercial development and this residential project is not subject to these criteria.

13. Sign Quality: Signs shall be incorporated into the architecture of the structure and shall be made of high-quality materials, be simple in design and be visually compatible with the surrounding physical environment in terms of color, scale and size. Use of natural materials in the construction of signs is encouraged.

Design Review Criteria for Signage is related to commercial development and this residential project is not subject to these criteria.

14. Sustainability: New development should consider architecture and building practices which minimize environmental impacts and enhance energy efficiency by: (a) reducing energy needs of buildings by proper site and structural design; (b) increasing the building’s ability to capture or generate energy; (c) using low-impact, sustainable and recycled building materials; (d) using the latest Best Management Practices regarding waste and water management; and (e) reducing site emissions.

The new construction will meet Title 24 Energy and Building Code requirements, which include insulated windows and energy-efficient lighting. The applicant will be required to provide proof of compliance. The roof plan includes a solar ready flat roof area. Further, the applicant will be required to reuse, recycle, or divert at least 65 percent of the Project’s construction and demolition debris.

15. Swimming Pools, Spas, and Water Features: Swimming pools, spas and water features shall be located, designed and constructed where: (a) geology conditions allow; (b) noise produced by circulatory mechanical pumps and equipment is mitigated; and (c) any 3333888 of 6661111777
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associated fencing or other site improvements are compatible with neighboring properties.

The proposed swimming pool, baja shelf, and spa are located below the home at the rear of the building where impacts to adjacent properties are expected to be minimal. The pool equipment will also be located under the home. The equipment specifications will be reviewed prior to building permit issuance for conformance to the maximum allowed noise levels for singlefamily residential properties. The Project is conditioned to allow pool equipment to be operated between the hours of 9:00 am and 9:00 pm only and to require installation of a timer to ensure compliance. The required pool security requirements will be reviewed during building plan check.

16. View Equity: The development, including its landscaping, shall be designed to protect existing views from neighboring properties without denying the subject property the reasonable opportunity to develop as described and illustrated in the City’s “Design Guidelines.” The “Design Guidelines” are intended to balance preservation of views with the right to develop property.

As conditioned by the City Council, the proposed two-story structure purposely reduces the upper-level massing as viewed from Coast Highway. The Project, as conditioned by the City Council, minimizes the appearance of mass through a terraced and stacked design that follows the natural down slope of the site. The City Council finds that the Project, as revised by the City Council, reduces the perceived bulk and creates a lower visual profile by lowering the garage and residences’ heights and results in viewing corridors that are not less than 26 feet, 3 inches (a minimum 16-foot south side yard setback and a 10-foot, 3-inch north side yard setback).

This significant reduction of upper-level massing and the flat roof designs are intended to provide preservation of views for the adjacent neighbors.

Finding No. 2. The physical improvements and site developments related to the project are designed and located in a manner in overall consistency with all other applicable design guidelines.

The Project is consistent with the Residential Design Review Guidelines and South Laguna Community Design and Landscape Guidelines, as explained above.

Finding No. 3. The physical improvements and site developments related to the project are characterized by appropriately scaled development, diverse and unique architectural designs, pedestrian orientation, and sensitivity to the natural conditions of the site.

The Project is located at the uppermost part of the lot and is consistent with the existing developed neighborhood in mass and scale. The proposed improvements are consistent with the neighborhood diverse and unique architectural styles designs and allow views of ocean from neighboring properties without disturbance to the natural conditions of the site.

Finding No. 4. The project is consistent with any specific plan or any other specific zoning design review criteria.

There are no specific plans or other specific zoning design review criteria applicable to this Project.
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SECTION 4. The City Council hereby makes the following findings and facts supporting findings for CDP 2026-0025:

Finding No. 1: The project is in conformity with all the applicable provisions of the certified local coastal program, including the following review criteria:

1. The proposed development will not encroach upon any existing physical accessway legally utilized by the public or any proposed public accessway identified in the adopted local coastal program land use plan.

The subject property does not contain, nor is it adjacent to, any existing or proposed public accessways identified in the adopted Local Coastal Program Land Use Plan. The proposed development will not alter or encroach upon any legally utilized public accessway.

2. The proposed development will not adversely affect marine resources, environmentally sensitive areas, or archaeological or paleontological resources.

The proposed development will not adversely affect marine resources, environmentally sensitive resources or archeological or paleontological resources in that the proposed single-family development is not located within the bluff. The applicant submitted a Geotechnical Investigation and Determination of the Bluff Edge Location report (Stoney-Miller/Geofirm Consultants, Inc., September 25, 2025) which identified the geologic bluff edge and stated that this conforms to the Coastal Act definition as well as the City’s Land Use Element definition of bluff edge. The City peer review confirmed the bluff edge location (Kling Consulting Group, November 18, 2025).

3. The proposed development will not adversely affect recreational or visitor-serving facilities or coastal scenic resources.

The Project site is in a developed residential area of the city. The proposed Project will not 44441111 of 6661111777
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adversely affect recreational or visitor-serving facilities as there are no recreational or visitorserving facilities either located on the Project site. The proposed development will also not adversely affect coastal scenic resources, including “land based scenic views from public parks, trains, roads and vista points,” view corridors of beach and ocean from Coast Highway, view corridors from coastal canyons, and open-space easements used to mitigate adverse visual impact of access road, inns, and residence.

Oceanfront Bluff/Coastal Bluff is defined to mean a bluff overlooking a beach or shoreline or that is subject to marine erosion. Many oceanfront bluffs consist of a gently sloping upper bluff and a steeper lower bluff or sea cliff. The term “oceanfront bluff” or “coastal bluff” refers to the entire slope between a marine terrace or upland area and the sea. The term “sea cliff” refers to the lower, near vertical portion of an oceanfront bluff.

Coastal Bluff Edge is defined by the California Coastal Act and Regulations define the oceanfront bluff edge as the upper termination of a bluff, cliff, or sea cliff. In cases where the top edge of the bluff is rounded away from the face of the bluff, the bluff edge shall be defined as that point nearest the bluff face beyond which a downward gradient is maintained continuously to the base of the bluff. In a case where there is a step like feature at the top of the bluff, the landward edge of the topmost riser shall be considered the bluff 44442222 of 6661111777
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edge determination, the Coastal Commission found that the application would result in a taking of property (i.e., only a 700 square-foot residence would be allowed and it would need to be located underground). To avoid the taking, the Coastal Commission relied upon a provision in the Coastal Act to conclude that it could relax the bluff edge setback of 25 feet. (Pub. Res. Code § 30010; McAllister v. California Coastal Commission (2008) 169 Cal.App.4th 912, 939 [government may limit application of resource protection policies to the extent necessary to allow a property owner a constitutionally reasonable economic use the property].) Accordingly, in the Coastal Commission’s analysis, it pivoted to applying the next most stringent setback (i.e., the building stringline), which is a diagonal line that runs from the outermost edge of the buildings on the two properties on each side of the Reyna project and across the Reyna project site. In applying this building stringline setback, the Coastal Commission concluded that the proposed single-family residence met the building stringline setback but the accessory improvements, such as the pool, needed to be moved landward of the building stringline setback. With this analysis and application, the Coastal Commission also considered that a further setback was not required in light of the present coastal resources. The Coastal Commission considered a biologist report to conclude that no biological resources or habitat would be disturbed when applying the building stringline setback (as opposed to bluff edge setback) and a coastal hazards analysis to conclude that the bluff is stable and could support the improvements located landward of the building stringline setback. edge. Bluff edges typically retreat over time as a result of erosional processes, landslides, development of gullies, or by grading (cut). In areas where fill has been placed near or over the bluff edge, the original bluff edge, even if buried beneath fill, shall be taken to be the bluff edge. 44443333 of 6661111777
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Here, the City Council finds that the Project complies with both the blufftop setback (by an additional 10 feet beyond the required 25-foot setback) and the building stringline setback.

Accordingly, the Project adequately protects the coastal resource (i.e., the bluff).

With respect to the coastal resource impacts, the Coastal Commission found that the Reyna project adversely impacted public views. The Coastal Commission noted Open Space and Conservation Element Policy 7-M, which states the following: “[n]ew development along Pacific Coast Highway shall preserve existing views where feasible and, where topography allows, new development shall be terraced below the grade of Pacific Coast Highway.” For the Reyna project, the Coastal Commission considered the steepest allowable driveway approach to the site and then reduced the height of the single-family residence as much as possible to keep consistency with the required grade for the driveway approach. Accordingly, the Coastal Commission reduced the height of the Reyna project to two feet and eleven inches above Coast Highway—since that is what the topography allows.

Here, consistent with the Coastal Commission analysis in the Reyna project, the City Council considered the topography of the site, which gets steeper the further north on the site, and the desire to protect the coastal bluff by continuing to meet and exceed the blufftop setback and building stringline setback, and the maximum grade of the driveway at the maximum of 14% slope and the plate heights of the garage and residence. Based upon the evidence, the City Council added the following more restrictive conditions of approval, without finding abuse of discretion of the Board Approval:
f. Relocate the residence to provide a minimum 16-foot south side yard setback and a 10- foot, three-inch north side yard setback, for a combined side yard setback of not less 44444444 of 6661111777
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than 26 feet, three inches.
g. Reduce the maximum roof elevation of the garage to no higher than an elevation of 162.00 feet.
h. Reduce the maximum roof elevation of the main residence to no higher than an elevation of 162.50 feet.
i. To preserve views over and across the structure, no improvement, as defined in Section

25.08.018 of the Laguna Beach Municipal Code, shall project above the building envelope established by the maximum roof elevations of the garage and main residence, whether located in front of or behind the residence and garage. j. Within the view corridor between the south side property line and the south corner of the garage, no improvement shall exceed sixteen (16) inches above curb height, including groundcover or other at-grade landscaping.

While Coast Highway is a public travel corridor, opportunities for the public to safely stop 4444555 of 6661111777
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and experience stationary ocean views in the immediate vicinity of the Project site are limited. The Project frontage and surrounding segments of Coast Highway are predominantly lined with red curbs on both sides, restricting vehicle stopping and parking. On the ocean side of the highway, much of shoulder consists of curb cuts for existing driveway improvements, which further restrict parking opportunities. Given these conditions, the Project frontage functions primarily as a passthrough visual corridor rather than a designated or practical public viewing area.

No comparable designated public view corridor exists at or near the Project site.

4. The proposed development will be sited and designed to prevent adverse impacts to environmentally sensitive habitats and scenic resources located in adjacent parks and recreation areas and will provide adequate buffer areas to protect such resources.

The development is proposed near the street and not within the bluff that slopes down to the beach. The subject property is not located within an environmentally sensitive habitat area or scenic resources located in adjacent parks and recreation areas. Therefore, there will be no adverse impacts to environmentally sensitive habitats and scenic resources. 4444666 of 6661111777
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5. The proposed development will minimize the alterations of natural landforms and will not result in undue risks from geological and erosional forces and/or flood and fire hazards.

The proposed development area of the site does not contain any significant natural landforms. Any grading required for the home is not within the 25-foot bluff setback. The Project is subject to all requirements of the Laguna Beach Building and Fire Codes. Additionally, the site is not located in a designated flood or high fire hazard zone, and the Project will not result in undue risk from geological, erosional, flood, or fire hazards.

6. The proposed development will be visually compatible with the character of surrounding areas, and where feasible, will restore and enhance visual quality in visually degraded areas.

The proposed development is architecturally compatible and in scale with other homes in the surrounding neighborhood, which is not a visually degraded area. The area is a coastal residential neighborhood situated on a bluff above the shoreline, immediately adjacent to a primary coastal roadway (Coast Highway) with local residential streets extending inland. Development reflects a long-established coastal village pattern, where homes are closely integrated with the natural bluff, beach access points, and ocean-oriented views. The proposed home is generally compatible with the existing coastal neighborhood character, particularly in terms of height, architectural style, and response to topography. The design aligns with the prevailing pattern of contemporary, multi-level coastal residences along the bluff. The design also places the structure much farther toward the street away from the bluff when compared with neighboring properties. 4444777 of 6661111777
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7. The proposed development will not have any adverse impacts on any known archaeological or paleontological resource.

There are no known archaeological or paleontological resources in the Project area.

8. The proposed development will be provided with adequate utilities, access roads, drainage and other necessary facilities.

The Project involves the demolition of the existing structures and construction of a new single-family dwelling with an attached two-car garage. The Project site is currently served by existing utilities, access roads, drainage, and other necessary facilities. Given the scope of the proposed development, it is anticipated that the existing infrastructure can accommodate the home without significant impact. No major deficiencies in utility or service capacity are currently known.

9. Other public services, including, but not limited to, solid waste and public roadway capacity have been considered and are adequate to serve the proposed development.

Other public services, such as solid waste collection and public roadway capacity, have been considered and are adequate to serve the proposed development. Since the Project site is already served by these utilities and infrastructure, the new home will not overburden existing public services.

The Project is consistent with all applicable policies of the Certified LCP.

LCP OCEANFRONT AND BLUFF TOP POLICIES (CDP)
Land Use Element (LU) Policy 2.10 Maximize the preservation of coastal and canyon views (consistent with the principle of view equity) from existing properties and minimize blockage of existing public and private views.

The Project has been carefully sited and designed to preserve coastal and canyon views 4444888 of 6661111777
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from surrounding properties and public viewpoints to the greatest extent feasible. The stepped and terraced building form follows the natural upslope of the site and reduces perceived height and mass. No public bluff-top trails or visitor-serving facilities are within the Project site. Accordingly, the Project is consistent with LU Policy 2.10 and the principle of view equity by minimizing impacts to existing public and private coastal and canyon views.

LU Element Action 7.3.3 Design and site new development to avoid hazardous areas and minimize risks to life and property from coastal and other hazards.

A coastal hazards analysis has been provided indicating that the proposed development is safe from coastal hazards (Skelly Engineering. November 25, 2024).

LU Element Action 7.3.4 Require new development to assure stability and structural integrity, and neither create nor contribute significantly to erosion, geologic stability, or destruction of the site or surrounding area or in any way require the construction of protective devices that would substantially alter natural landforms along bluffs and cliffs. 4444999 of 6661111777
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The City’s geotechnical consultant reviewed the geotechnical report and coastal hazards analysis and conceptually approved the Project (Kling Consulting Group, November 18, 2025).

LU Element Action 7.3.5 Prohibit development on oceanfront bluff faces, except public improvements providing public access, protecting coastal resources, or providing for public safety. Permit such improvements only when no feasible alternative exists and when designed and constructed to minimize landform alteration of the oceanfront bluff face, to not contribute to further erosion of the oceanfront bluff face, and to be visually compatible with the surrounding area to the maximum extent feasible.

As further described under the Variance heading below, improvements that provide for public safety access are proposed to be reconstructed within the bluff and all other obsolete improvements will be removed. Thus, the exception to development on oceanfront bluff faces for public improvements providing for public safety is applicable here. While the improvement is not on public land/property, the City is gaining valuable public safety access to nearby public beaches at no cost as the property owner will pay for the entirety of the improvements. The Construction Monitoring Treatment Plan describes procedures to follow as a program to mitigate impacts to any cultural resources found during construction within the bluff (LSA, March 2018). Furthermore, a bluff restoration plan will be required for building plan check review for the removal of obsolete structures prior to obtaining any building permits.

LU Element Action 7.3.6 Require new development on oceanfront blufftop lots to incorporate drainage improvements, removal of and/or revisions to irrigation systems, and/or use of native or drought-tolerant vegetation into the design to minimize threats to oceanfront bluff recession.
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The preliminary grading plan (Sheet C-1) shows drainage improvements and a storm water pump station. The landscape/fuel modification plan (Sheets L-04 & L-05) shows native and drought tolerant vegetation.

LU Element Action 7.3.8 On oceanfront bluff sites, require applications where applicable, to identify and removal all unpermitted and/or obsolete structures, including but not limited to protective devices, fences, walkways, and stairways, which encroach into oceanfront bluffs.

As described under the Variance heading below, all existing obsolete improvements will be required to be demolished.

LU Element Action 7.3.11 Require all coastal development permit applications for new development on an oceanfront or on an oceanfront bluff property subject to wave action to assess the potential for flooding or damage from waves, storm surge, or seiches, through a wave uprush and impact report prepared by a licensed civil engineer with expertise in coastal processes. The conditions that shall be considered in a wave uprush study are a seasonally eroded beach combined with long-term (75 years) erosion; high tide conditions, combined with long-term (75 year) projections for sea level rise; storm waves from a 100- year event or a storm that compares to the 1982/83 El Niño event.

A Coastal Hazards Analysis has been prepared for the Project concluding it is safe from erosion and high tide conditions over a 75-year period and from storm waves from a 100-year event (Skelly Engineering, November 25, 2024).

LCP COASTAL VIEW POLICIES (CDP)
Land Use Element (LU) Policy 2.8 Require building design and siting to be compatible 5551111 of 6661111777
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and integrated with natural topographic features, minimize significant alteration of natural topography and/or other significant on-site resources, and protect public views as specified in the Design Guidelines and the Landscape and Scenic Highways Resource Document.

The Project has been designed and sited to be compatible with and integrated into the site’s existing gently sloping topography through a stepped and terraced building form that maintains a low-profile appearance. The building is set back from the ocean bluff area that consists of approximately 18,166 square feet (52.3% of the property). The design minimizes perceived height and mass and reduces the need for excessive grading. Proposed grading cut is primarily intended to lower the structure into the slope, thereby minimizing alteration of the natural topography while preserving public and neighboring views.

The Project, as revised by the City Council, maintains view opportunities along the public right-of-way. Although the proposed residence in the Project, as revised by the City Council, will continue to occupy a portion of the site, ranging from 1.37 feet at the south end of the site to 3.6 feet at the north end of the site, a member of the public driving or walking down Coast Highway will still be able to see over the structure and view the ocean. 5552222 of 6661111777
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The Project, as conditioned by the City Council, incorporates appropriate architectural articulation and material variation to reduce visual prominence, and proposed landscaping will further soften building edges and integrate the structure into its hillside setting. The site is visible from designated scenic highways and the beach visitor-serving facilities. The Project, as conditioned by the City Council, minimizes adverse impacts on views from public locations and is consistent with applicable Design Guidelines and scenic resource policies.

LU Element Policy 2.9 Require the use of appropriate landscaping, special architectural treatments, and/or siting considerations to protect public views for projects visible from major highways and arterial streets.

The Project, as conditioned by the City Council, incorporates appropriate architectural articulation and material variation to reduce visual prominence, and proposed landscaping will further soften building edges and integrate the structure into its hillside setting. The site is visible from designated scenic highways and the beach visitor-serving facilities. The Project, as 5553333 of 6661111777
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conditioned by the City Council, minimizes adverse impacts on views from public locations and is consistent with applicable Design Guidelines and scenic resource policies.

LU Element Policy 2.10 Maximize the preservation of coastal and canyon views (consistent with the principle of view equity) from existing properties and minimize blockage of existing public and private views. Best efforts should be made to site new development in locations that minimize adverse impacts on views from public locations (e.g., roads, bluff top trails, visitor-serving facilities, etc.) Policy 2.10 includes: Action

2.10.1 Discourage the addition of second stories in established neighborhoods where view equity has historically been achieved through one-story construction.

LU Element Policies 7.3 and 10.2 Design and site new development to protect natural and environmentally sensitive resources, such as areas of unique scenic quality, public views and visual compatibility with surrounding uses and to minimize landform alterations.

The building is set back from the ocean bluff area that consists of approximately 18,166 square feet (52.3% of the property). As designed, the Project minimizes impacts to scenic resources and public views and is consistent with LU Policy 10.2 and the General Plan goal of protecting public health and safety and natural resources.

LUE Policy 3.10 Require building design and siting to be compatible and integrated with natural topographic features, minimize significant alteration of natural topography or other significant on-site resources, and protect public views as specified in the Design Guidelines and Landscape and Scenic Highways Resource Document by maintaining the low-profile character of structures. Require use of appropriate landscaping, special architectural treatments, and siting considerations for projects visible from major highways and arterial 555555 of 6661111777
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streets. Best efforts should be made to site new development in locations that minimize adverse impacts on views from public locations (e.g., roads, bluff-top trails, visitor-serving facilities, etc.).

The Project has been designed and sited to be compatible with and integrated into the site’s existing gently sloping topography through a stepped and terraced building form that maintains a low-profile appearance. The building is set back from the ocean bluff area that consists of approximately 18,166 square feet (52.3% of the property). The design minimizes perceived height and mass and reduces the need for excessive grading. Proposed grading cut is primarily intended to lower the structure into the slope, thereby minimizing alteration of the natural topography while preserving public and neighboring views.

The Project, as revised by the City Council, maintains view opportunities along the public right-of-way. Although the proposed residence in the Project, as revised by the City Council, will continue to occupy a portion of the site, ranging from 1.37 feet at the south end of the site to 3.6 feet at the north end of the site, a member of the public driving or walking down Coast Highway will still be able to see over the structure and view the ocean. 555666 of 6661111777
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The Project, as conditioned by the City Council, incorporates appropriate architectural articulation and material variation to reduce visual prominence, and proposed landscaping will further soften building edges and integrate the structure into its hillside setting. The site is visible from designated scenic highways and the beach visitor-serving facilities. The Project, as conditioned by the City Council, minimizes adverse impacts on views from public locations and is consistent with applicable Design Guidelines and scenic resource policies.

The Design Review Guidelines refers to Public Views:

15.6 Maintain view corridors when feasible.
∙Consider opportunities for public views.
∙Locate a building to retain view opportunities through side yards.

Finding No. 2. Any development located between the sea and the first public road paralleling the sea is in conformity with the certified local coastal program and with the public access and public recreation policies of Chapter 3 of the Coastal Act.

The Project site is located between the sea and the first public road paralleling the sea. As detailed above in the facts supporting Finding Number 1, the proposed development is in conformity with the certified local coastal program.

The proposed development is in conformity with the public access and public recreation policies of Chapter 3 of the Local Coastal Act. Because of the newly acquired public safety 555777 of 6661111777
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component of the proposed development, existing public beach access and coastal recreation areas will be better served by the City’s public safety personnel.

Public Access
Section 30211 Development not to interfere with access
Development shall not interfere with the public's right of access to the sea where acquired through use or legislative authorization, including, but not limited to, the use of dry sand and rocky coastal beaches to the first line of terrestrial vegetation.

Section 30212 New development projects
(a) Public access from the nearest public roadway to the shoreline and along the coast shall be provided in new development projects except where: (1) it is inconsistent with public safety, military security needs, or the protection of fragile coastal resources, (2) adequate access exists nearby, or (3) agriculture would be adversely affected. Dedicated accessway shall not be required to be opened to public use until a public agency or private association agrees to accept responsibility for maintenance and liability of the accessway. (b) For purposes of this section, "new development" does not include:
(1) Replacement of any structure pursuant to the provisions of subdivision (g) of Section 30610.
(2) The demolition and reconstruction of a single-family residence; provided, that the reconstructed residence shall not exceed either the floor area, height or bulk of the former structure by more than 10 percent, and that the reconstructed residence shall be sited in the same location on the affected property as the former structure. (3) Improvements to any structure which do not change the intensity of its use, which do 555888 of 6661111777
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not increase either the floor area, height, or bulk of the structure by more than 10 percent, which do not block or impede public access, and which do not result in a seaward encroachment by the structure.
(4) The reconstruction or repair of any seawall; provided, however, that the reconstructed or repaired seawall is not a seaward of the location of the former structure. (5) Any repair or maintenance activity for which the commission has determined, pursuant to Section 30610, that a coastal development permit will be required unless the commission determines that the activity will have an adverse impact on lateral public access along the beach. As used in this subdivision "bulk" means total interior cubic volume as measured from the exterior surface of the structure.
(c) Nothing in this division shall restrict public access nor shall it excuse the performance of duties and responsibilities of public agencies which are required by Sections 66478.1 to 66478.14, inclusive, of the Government Code and by Section 4 of Article X of the California Constitution.

Section 30214 Implementation of public access policies; legislative intent (a) The public access policies of this article shall be implemented in a manner that takes into account the need to regulate the time, place, and manner of public access depending on the facts and circumstances in each case including, but not limited to, the following:
(1) Topographic and geologic site characteristics.
(2) The capacity of the site to sustain use and at what level of intensity. (3) The appropriateness of limiting public access to the right to pass and repass depending on such factors as the fragility of the natural resources in the area and the proximity of the access area to adjacent residential uses.
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(4) The need to provide for the management of access areas so as to protect the privacy of adjacent property owners and to protect the aesthetic values of the area by providing for the collection of litter.
(b) It is the intent of the Legislature that the public access policies of this article be carried out in a reasonable manner that considers the equities and that balances the rights of the individual property owner with the public's constitutional right of access pursuant to Section 4 of Article X of the California Constitution. Nothing in this section or any amendment thereto shall be construed as a limitation on the rights guaranteed to the public under Section 4 of Article X of the California Constitution.

Here, the Project, as revised by the City Council, includes the provision of a funicular that provides public safety personnel the right to traverse up and down the bluff to the sand more quickly and efficiently than current public access. Although the funicular will not be open to the public, the public will receive a benefit of safer access to the coast.

Finding No. 3. The proposed development will not have any significant adverse impacts on the environment within the meaning of the California Environmental Quality Act.

The Project does not have any significant adverse environmental impacts. The Project qualifies for a categorical exemption pursuant to the California Environmental Quality Act Guidelines, as discussed further herein.

SECTION 5. The City Council hereby makes the following findings and facts supporting findings for VAR 2026-0026. A variance is requested 1) to reconstruct a funicular and associated access components (stairs, landings, terrace, retaining walls, and gates) within the bluff [LBMC Section 25.50.004(B)(4)]; 2) to maintain stairs, walkways, and retaining walls within the bluff 666000 of 6661111777
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[LBMC Section 25.50.004(B)(4)];]; and 3) to exceed the maximum wall height within the front setback [LBMC Section 25.50.012(B)(3)]:

Finding No. 1: There are special circumstances applicable to the property involved, including size, shape, topography, location or surroundings which cause the strict application of the zoning ordinance to deprive such property of privileges enjoyed by other property in the vicinity and under identical zoning classification.

The subject property is unique as compared to its peers that front the isolated cove known as Thousand Steps Beach and this uniqueness provides support for allowing the reconstruction of a bluff face improvement known as a funicular and to retain other bluff face improvements. Similarly, granting additional height for walls is supportable because of the property’s topography and this allowance grants parity with other properties nearby that have been granted the same courtesy.

Each of these is discussed more specifically below:

As to the bluff face improvement that would allow reconstruction of the funicular, the Board finds that the width of the subject property presents a truly unique opportunity to provide for easier and quicker and more reliable access to Thousand Steps Beach. Thousand Steps Beach is one of South Laguna’s largest and most heavily used beaches. Notwithstanding this, access to the beach itself is limited to a single staircase near the intersection of 9th Avenue and Coast Highway. This staircase consists of approximately 223 individual steps and, due to the steepness of the bluff face, feels like many more. Use of this staircase is popular for access to the beach by the general public and is also popular for those interested in walking/running the steps for fitness purposes. Collectively, this makes for a crowded and complex pathway for the City’s first responders to utilize to access Thousand Steps Beach when responding to emergency calls. 6661111 of 6661111777
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Congestion on the stairs and the number of steps and steepness of the bluff all create challenges to providing timely response in emergency situations.

To provide a sense of magnitude, the Marine Safety Chief provided rescue statistics for the 9th and 10th Street beaches covering the period from January 1, 2023, through November 9, 2025.

Statistics were collected for both beaches because they share the same public access point and are adjacent to the property at 31987 Coast Hwy.:

Total Incident Type Definition
1,860 Rescues To physically assist a person from the ocean. 1,315 Medical Aids The immediate treatment or care given to a person suffering from an injury or illness until more advanced care is provided or the person recovers.
34,117 Ordinance
Advisements
An advisement or enforcement of local, state, and federal laws.

A few examples of ordinance enforcement include drinking alcohol, dogs on the beach, smoking, using unpermitted easyups or shade coverings, having bonfires, and laws related to disturbing marine life.
165,473 Public Contacts Non-safety related contacts. These are typically directions to individuals, families, and groups to places such as bathrooms, parking, restaurants, and more, as well as trolley schedules. 96,260 Preventative
Actions
Safety-related contacts pertaining to people too close to or in danger of impacts from: beach, ocean, water, cliff, rock, reef, cave, rip current, lateral current, sand bar, shore break, storm surge, lightning, flood, fog, tide, surf, etc.

Given that the public health safety and welfare sit atop the most important responsibilities of government, granting a variance to reconstruct the existing funicular improvement on the bluff face seems to be a reasonable trade-off of governments interest in protecting the coastline and protecting the public. The funicular would be a privately-owned improvement that is accessible to 6662222 of 6661111777
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the City/first responders all day, everyday pursuant to a recorded agreement that would include maintenance responsibilities and performance standards. The funicular would not be open to the general public as they would continue to utilize the existing stairs. As such, the funicular allows for separation of general public foot traffic from this “express lane” down to the beach by first responders. As a mechanical lift, the funicular provides for a more constant rate of speed up and down the bluff face than does walking the stairs and allows for patient being extracted from the beach to be moved in a more comfortable manner. Most other properties along Thousand Steps Beach are narrow and don’t contain the side yard widths of the proposed development. Because of this ease of access compared to the subject property is constrained and the subject lots additional width provides the right set of circumstances to grant the bluff face improvement variance to allow the funicular to be reconstructed based on government utmost interest to provide for the public health, safety, and welfare.

It should be noted that General Plan Land Use Element Action 7.3.5 prohibits development on oceanfront bluff faces, except public improvements providing public access, protecting coastal resources, or providing for public safety. To support construction of the funicular and related improvements, a condition of approval requiring an easement and agreement with the property owner for City public safety use (Condition No. 23). Plan Sheets A.0.7 and A.0.8 show the proposed easement. The new funicular track that is in alignment with the existing funicular track and the car will meet the Marine Safety and Fire Department requirements to accommodate a gurney and City staff.

Regarding the variance to maintain obsolete structures within the bluff, this request is consistent with the Land Use Element Action 7.3.5, which allows development on oceanfront 6663333 of 6661111777
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bluffs when necessary to provide public access, protect coastal resources, or ensure public safety.

These stairs, walkways and retaining walls and related improvements provide an important public service because they provide an alternative route up or down the bluff face for emergency response personnel should the funicular be filled-to-capacity. Additionally, these improvements are consistent with the historic pattern of development occurring on nearby parcels and that, if removed, would deprive the subject property of this historic feature that other nearby properties have and still do enjoy.

As for those walls and the driveway gate that exceed the 4-foot height limit within the front setback, the Board finds that this request is consistent with nearby pattern of development. Existing walls and fences in the immediate vicinity located along the west side of Coast Highway that exceed the maximum 4-foot height include but are not limited to 31949, 31951, 31995, 32001, and 32021 Coast Highway. These proposed elements are set back ten (10) feet from the back of sidewalk and like many other properties along Coast Highway allows a car to pull out of the traffic flow in order to gain entry to the private property. These improvements also do not interfere with pedestrian flow along the public sidewalk. For these reasons, the Board finds that this variance is reasonable and appropriate and not out of character for its setting.

Finding No. 2: Such variance is necessary for the preservation and enjoyment of a substantial property right of the applicant, which right is possessed by other property owners under like conditions in the same vicinity and zone.

Many other properties fronting on Thousand Steps Beach have direct access down the bluff face to the beach. These conditions have existed for many years and while perhaps not the most desirable situation involving new development, the subject property and its setting offer unique 6664444 of 6661111777
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circumstance that in this one-off condition (as explained in Variance Finding 1) justify granting approval to re-construct/re-establish this access via the funicular.

As to the variance to maintain obsolete structures within the bluff, this request is consistent with the Land Use Element Action 7.3.5, which allows development on oceanfront bluffs when necessary to provide public access, protect coastal resources, or ensure public safety. These stairs, walkways and retaining walls and related improvements provide an important public service because they provide an alternative route up or down the bluff face for emergency response personnel should the funicular be filled-to-capacity. Additionally, these improvements are consistent with the historic pattern of development occurring on nearby parcels and that, if removed, would deprive the subject property of this historic feature that other nearby properties have and still do enjoy.

As for the wall and gate, other properties along Coast Highway with comparable frontage conditions have been granted relief to construct walls and gates exceeding the standard height limits in order to address privacy, security, and noise concerns associated with adjacency to a major arterial roadway. The requested wall-height variance is therefore consistent with development privileges enjoyed by other properties under like conditions.

Finding No.3: The granting of the variance will not be detrimental to the public health, safety, convenience and welfare or injurious to property or improvements in the vicinity in which the property is located.

The subject property is unique as compared to its peers that front the isolated cove known as Thousand Steps Beach and this uniqueness provides support for allowing the reconstruction of a bluff face improvement known as a funicular and to retain other bluff face improvements. 666555 of 6661111777
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Similarly, granting additional height for walls is supportable because of the property’s topography and this allowance grants parity with other properties nearby that have been granted the same courtesy. Each of these is discussed more specifically below:

Congestion on the stairs and the number of steps and steepness of the bluff all create challenges to providing timely response in emergency situations.

To provide a sense of magnitude, the Marine Safety Chief provided rescue statistics for the 9th and 10th Street beaches covering the period from January 1, 2023, through November 9, 2025.

Statistics were collected for both beaches because they share the same public access point and are adjacent to the property at 31987 Coast Hwy.:

Total Incident Type Definition
1,860 Rescues To physically assist a person from the ocean. 1,315 Medical Aids The immediate treatment or care given to a person suffering from an injury or illness until more advanced care is provided or the person recovers.
666666 of 6661111777
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34,117 Ordinance
Advisements
An advisement or enforcement of local, state, and federal laws.

Given that the public health safety and welfare sit atop the most important responsibilities of government, granting a variance to reconstruct the existing funicular improvement on the bluff face seems to be a reasonable trade-off of governments interest in protecting the coastline and protecting the public. The funicular would be a privately-owned improvement that is accessible to the City/first responders all day, everyday pursuant to a recorded agreement that would include maintenance responsibilities and performance standards. The funicular would not be open to the general public as they would continue to utilize the existing stairs. As such, the funicular allows for separation of general public foot traffic from this “express lane” down to the beach by first responders. As a mechanical lift, the funicular provides for a more constant rate of speed up and down the bluff face than does walking the stairs and allows for patient being extracted from the beach to be moved in a more comfortable manner. Most other properties along Thousand Steps Beach are narrow and don’t contain the side yard widths of the proposed development. Because of this ease of access compared to the subject property is constrained and the subject lots additional 666777 of 6661111777
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width provides the right set of circumstances to grant the bluff face improvement variance to allow the funicular to be reconstructed based on government utmost interest to provide for the public health, safety, and welfare.

Regarding the variance to maintain obsolete structures within the bluff, this consistent with the Land Use Element Action 7.3.5, which allows development on oceanfront bluffs when necessary to provide public access, protect coastal resources, or ensure public safety. These stairs, walkways and retaining walls and related improvements provide an important public service because they provide an alternative route up or down the bluff face for emergency response personnel should the funicular be filled-to-capacity. Additionally, these improvements are consistent with the historic pattern of development occurring on nearby parcels and that, if removed, would deprive the subject property of this historic feature that other nearby properties have and still do enjoy.

As for those walls and the driveway gate that exceed the 4-foot height limit within the front setback, the Board finds that this request is consistent with nearby pattern of development. Existing 666888 of 6661111777
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walls and fences in the immediate vicinity located along the west side of Coast Highway that exceed the maximum 4-foot height include but are not limited to 31949, 31951, 31995, 32001, and 32021 Coast Highway. These proposed elements are set back ten (10) feet from the back of sidewalk and like many other properties along Coast Highway allows a car to pull out of the traffic flow in order to gain entry to the private property. These improvements also do not interfere with pedestrian flow along the public sidewalk. For these reasons, the Board finds that this variance is reasonable and appropriate and not out of character for its setting.

Finding No. 4: The granting of such a variance will not be contrary to the objectives of the zoning ordinance or the general plan.

Variances are an appropriate tool to provide relief from certain standards when unique conditions exist relative to location or setting as compared to nearby properties. In this case, the applicant has requested three and the City grants each of these variances. Support for these variances is rooted in the objectives of the City’s General Plan and Zoning Ordinance. More specifically, the funicular bluff-face improvement qualifies as a public-safety-related improvement consistent with Land Use Element Action 7.3.5, which allows development on oceanfront bluffs when necessary to provide public access, protect coastal resources, or ensure public safety. The required agreement and easement further ensure that the improvement serves a broader public benefit.

The front setback wall height variance aligns with General Plan and zoning objectives by allowing site-sensitive design solutions that respond to unique physical conditions while maintaining neighborhood compatibility and visual character along Coast Highway.

Granting the variance to maintain obsolete structures within the bluff is consistent with the 666999 of 6661111777
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Land Use Element Action 7.3.5, which allows development on oceanfront bluffs when necessary to provide public access, protect coastal resources, or ensure public safety. These stairs, walkways and retaining walls and related improvements provide an important public service because they provide an alternative route up or down the bluff face for emergency response personnel should the funicular be filled-to-capacity. Additionally, these improvements are consistent with the historic pattern of development occurring on nearby parcels and that, if removed, would deprive the subject property of this historic feature that other nearby properties have and still do enjoy.

SECTION 6. Based on its review of the entire record before it, the City Council hereby finds and determines, in accordance with CEQA, that the Project is categorically exempt pursuant to State CEQA Guidelines Section 15303 – New Construction or Conversion of Small Structures, in that the project consists of construction and location of limited numbers of new, small structures.

Here, the Project involves the demolition of existing structures and the construction of a singlefamily dwelling with an attached two-car garage with new vehicular access, elevated decks, grading, retaining walls, pool, spa, pedestrian entry feature, and landscaping. Furthermore, the project is an allowed residential use in the R-1 zone.

Further, none of the exceptions outlined in CEQA Guidelines section 15300.2 apply. The project site does not contain any environmentally sensitive areas except for being an oceanfront property. There will be no cumulative impact resulting from successive projects of the same type in the same place, over time. There are no unusual circumstances resulting in a significant impact on the environment. There will be no damage to scenic resources, including trees, historic buildings, rock outcroppings or similar resources, within a highway officially designated as a state scenic highway as it is proposed less than 3.6 feet above the curb along Coast Highway which is 777000 of 6661111777
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a highway officially designated as a state scenic highway. The Project is not located on a hazardous waste site or any other site included on a list compiled pursuant to Government Code section 65962.5. The Project will not result in significant adverse impacts to historical resources as defined by CEQA. Consequently, additional environmental analysis is not necessary to meet the requirements of the CEQA.

SECTION 7. The City Council hereby denies the Appeal and sustains the Design Review Boards’s determination on the Project, as reflected in Board Resolution No. 2026-0024, including all of the conditions of approval contained therein as though they are set forth explicitly herein, based on the findings and facts in this Resolution and subject to the following more restrictive conditions of approval that must be satisfied before issuance of a building permit:
a. Relocate the residence to provide a minimum 16-foot south side yard setback and a 10- foot, three-inch north side yard setback, for a combined side yard setback of not less than 26 feet, three inches.
b. Reduce the maximum roof elevation of the garage to no higher than elevation 162.00 feet.
c. The maximum roof height elevation of the main residence shall be reduced by one (1) foot to elevation 162.50 feet.
d. To preserve views over and across the structure, no improvement, as defined in Section

25.08.018 of the Laguna Beach Municipal Code, shall project above the building envelope established by these maximum roof elevations, whether located in front of or behind the residence.
e. Within the view corridor between the south side property line and the south corner of 7771111 of 6661111777
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the garage, no improvement shall exceed sixteen (16) inches above curb height, including groundcover or other at-grade landscaping.
f. Be subject to review and approval by the Director of Community Development, who shall determine that the revised plans are in full conformance with the City Council's approval and remain consistent with all applicable provisions of the Laguna Beach Municipal Code and conditions of approval. Any revisions beyond the scope of this condition shall require review through the applicable approval process.

In the event of a conflict between Board Resolution No. 2026-0024, which is incorporated herein by reference, and this Resolution, this Resolution shall prevail.

ADOPTED this 4th day of August, 2026.

Mark Orgill, Mayor
ATTEST:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

City Clerk, City of Laguna Beach, California
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STAFF REPORT
Meeting Date:

September 22, 2026

CONSENT

CALENDAR
20 SUBJECT: ADOPTION OF A RESOLUTION AFFIRMING THE CITY’S INTENT TO

IMPLEMENT THE DESIGN REVIEW EFFICIENCY ORDINANCE AND

AMENDED DESIGN REVIEW GUIDELINES IN FULL CONFORMITY WITH

THE COASTAL ACT, AND FINDING THAT NO FURTHER ENVIRONMENTAL REVIEW IS REQUIRED UNDER STATE CEQA GUIDELINES SECTION 15301 RECOMMENDATION: It is recommended that the City Council:

1. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, FINDING THAT ORDINANCE NO. 1730, WHICH

STREAMLINES THE DESIGN REVIEW AND OTHER PERMIT PROCESSES, AND CITY COUNCIL RESOLUTION NO. 26.059, WHICH AMENDS THE DESIGN GUIDELINES – A

GUIDE TO RESIDENTIAL DEVELOPMENT, ARE CONSISTENT WITH THE CERTIFIED LAGUNA BEACH COASTAL LAND USE PLAN AND CHAPTER 6 OF THE CALIFORNIA COASTAL ACT, AFFIRMING THE CITY’S INTENT TO IMPLEMENT ITS CERTIFIED

LOCAL COASTAL PROGRAM IN A MANNER FULLY IN CONFORMITY WITH THE

CALIFORNIA COASTAL ACT, AND FINDING THE ACTION EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER CEQA GUIDELINES SECTION 15301 OR ALTERNATIVELY 15265”, affirming the City’s intent to implement the certified LCP in full conformity with the Coastal Act, satisfying the requirements of Public Resources Code section 30510, subdivision (a);

2. Direct the Director of Community Development to submit the Resolution affirming the City’s intent to implement the certified LCP in a manner fully in conformity with the Coastal Act, together with any appropriate supporting materials, to the California Coastal Commission; and

3. Find that the recommended actions are exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15301.

SUMMARY OF THE MATTER
On July 21, 2026, the City Council adopted Ordinance No. 1730, known as the Design Review Efficiency Ordinance, and Resolution No. 26.059 amending the Design Guidelines – A Guide to Residential Development, to streamline the design review and related permitting processes and directed City staff to submit the local coastal program (“LCP”) amendment to the California Coastal Commission for review.

The Council also adopted Urgency Ordinance No. 1732, an urgency version of the Design Review Efficiency Ordinance, to implement the new provisions while the California Coastal Commission reviews the associated LCP amendment. On August 4, 2026, the Council adopted Urgency Ordinance No. 1733, extending Urgency Ordinance No. 1732 for 22 months and 15 days. 1111 of 888000888
DR EFFICIENCY ORDINANCE AND AMENDED DR GUIDELINES: COASTAL ACT

CONFORMITY
September 22, 2026

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Laguna Beach City CouncilSeptember 22, 2026

Laguna Beach City Council
September 22, 2026