RECEIVED
To: Laguna Beach City Council Members
Re: Regular Business 9
Date: October 13, 2026 OCT 13 2026
City Clerk's Office
Dear Councilmembers: City of Laguna Beach, CA
I am in total support of retaining a full-service hospital in Laguna Beach, complete with emergency room facilities and all that entails. And I am supportive of obtaining outside professional help to the extent necessary to ensure that happens.
What I am not in support of is transferring money from the Disaster Contingency Fund, which is already underfunded compared to the City's stated goal of 10% of general fund expenses. This tund was set up for use in declared emergencies or disasters. While the potential hospital closure is a serious issue, it is not a declared emergency or a disaster. In fact, it's been a known risk for years, with the City finally taking steps starting in March of last year, when it adopted a Hospital Action Plan, and then on June 23, 2026, when it formed a 16-member Hospital Task Force co-chaired by Councilmembers Whalen and Rounaghi.
The City adopted the 2026-27 budget after the formation of the task force, so any lack of budgeted funds would fit a description of failure to plan rather than an emergency.
Councilmembers Kempf and Rounaghi directed staff to find savings in the 2026-27 budget.
Funding for this important project should come from those savings, not from money set aside for emergencies.
Last month the City declared a local emergency related to coastal erosion and loss of sand, and tonight plans to declare another local emergency related to Tropical Storm Rachel. In addition to coastal erosion and loss of sand, and their very real effects on coastal structures and infrastructure, the City has seen the failure of the Aliso Beach parking lot, and experienced seawater flooding in part of the downtown area. Further, forecasters are expecting an extremely strong El Nino this winter, lesser versions of which often bring flooding to our coasts.
These are the types of events that our disaster funds were set up to cover, not consulting fees for a project that has been known about for months, if not years.
I am also concerned with having the City Attorney's office manage the project. While it is important that the City have the ability to maintain attorney-client privilege, not everything related to this critical project will require that privilege. While the City legal staff is very competent in its area of expertise, much of what will need to be done in the coming months will be related to the hospital business, which is not a core competence of the legal staff. The City should take care not to set up an administrative structure that might inadvertently keep from the task force, which is made up of people with "medical, healthcare administration, planning and other relevant experience," any and all information that will be necessary for them to come to the best decisions for the community.
So, bottom line. Hire the necessary expertise. Fund it through identified savings in the general fund. Assign responsibility for the project outside of the legal department. And continue, as always, to have the City Attorney's office manage any and all relationships with outside counsel.
With Regards,
Mary Locatelli