Laguna Beach seeks permits for new 5-year plan to increase public parking fees

Laguna Beach sought feedback this summer from residents about parking rates and the potential expansion of paid public parking, and now, city staff is pursuing permits to put its plans into action.

The City Council at its Sept. 23 meeting authorized staff to advance the application process for related coastal development permits to the Planning Commission.

Alexis Braun, acting director of transit and community services, noted the city would like to bring about a new five-year parking rate plan, much like the phased implementation that was introduced in 2021.

That plan imposed an immediate increase of $1 an hour for parking spaces in all lots and meters during the non-summer months, with a bump of up to 10% annually during the summer, a busy period not just because of the town’s beaches, but also its renowned art festivals that draw crowds.

Revenue from parking fees, Braun said, is put toward parking enforcement, improvements such as pay stations and lot resurfacing, and transit programs such as the free trolley and on-demand ride services.

“The city proposes establishing an additional five-year parking rate structure that builds on the success of the existing parking and transportation programs, with the goal of enhancing coastal access, reducing traffic congestion, emissions and minimizing neighborhood impacts,” Braun said.

Over the summer, as the end neared for its current five-year, incremental parking rate plan, Laguna Beach charged $6.45 per hour for a downtown parking spot, while non-downtown spaces cost $3.60 an hour.

The plan to renew that five-year rate structure would see a downtown spot go for $10.20 per hour in the summertime and $5.85 in the offseason by 2030. The citywide offseason average would climb from $2.50 to $3.50 hourly.

A staff report estimated that increased parking rates could lead to an additional $500,000 to $1 million in revenue annually.

City Manager Dave Kiff advised the council to separate the permit applications, one for the five-year incremental rate structure and another tied to additional locations for paid parking.

Councilman Bob Whalen said that when the city pushed through its parking rate plan in 2019, it was challenged at the state level. Laguna Beach largely falls within the coastal zone, giving the California Coastal Commission final authority in matters concerning coastal access protection.

“Our current subsidy of the transit operations is not necessarily sustainable, right?” Mayor Alex Rounaghi said. “[The Coastal Commission] shouldn’t assume that we’re always going to have that. The way for us to continue doing that is to be able to have our parking go up with all the costs. … I think there’s a compelling case here.”

Kiff seemed to agree, suggesting that budgetary strain caused, in part, by the provision of its public transit program, is a story that ought to be told.

“I think now is the time, just for our own implications, but also for [the Coastal Commission],” Kiff said. “I think we’ve expressed some concerns about how the gap, the surplus of the parking fund is getting smaller and smaller as the transit costs get higher. We have used the parking fund to do other things, like capital parking projects, and if we don’t have that anymore, it’s not a good thing.”

Kiff said that as the permits come up for public hearings, expanding paid parking into neighborhoods will be a consideration. South Laguna residents, in particular, packed the room and expressed interest in the idea during a town hall meeting on Aug. 27.

“We had that discussion at the town hall — would we go into the neighborhoods of South Laguna,” Kiff added. “I think there’s generally consensus, yes, but the devil’s in the details in terms of what are the time limits there. … It wouldn’t be limited necessarily to South Laguna.”

Adding paid public parking along the inland portion of Coast Highway in South Laguna is another consideration. The council directed city staff to work with Caltrans to obtain an encroachment permit.

Braun said the proposed spaces would have a four-hour time limit to encourage turnover and help maintain coastal access.