Laguna Beach 3:00pm City Council Study Session Proposed Community Development Department Fees - April 14, 2026

April 14, 2026

Executive Summary

- The Laguna Beach City Council held a study session on April 14, 2026, to review proposed Community Development Department fee increases based on a 2021 cost study updated for CPI inflation, aiming to reduce the city's annual $1.8 million subsidy. - Director of Administrative Services Michelle Banigan presented adjustments to 87 fees, with increases ranging from no change (17 fees) to over 100% (8 fees), while Community Development Director Matt Schneider recommended setting the general City Council appeal fee at $4,500 rather than the full cost recovery amount of approximately $7,000. - Multiple public speakers, including representatives from Village Laguna, the Laguna Canyon Conservancy, and local architects, raised concerns that the 152% appeal fee increase creates a 'pay-to-play barrier' that silences community voices and disproportionately impacts smaller projects and lower-income residents. - Council members discussed implementing tiered fee structures to incentivize applicants who work collaboratively with neighbors and submit quality applications on the first attempt, with higher fees for multiple reviews or hearings. - Councilmember Alex Rounaghi requested analysis of how

Key Decisions

- The City Council directed staff to return on April 28, 2026, with a revised fee proposal incorporating feedback from the study session. - Staff was directed to include analysis of tiered fee structures that would reward applicants who work collaboratively with neighbors and submit quality applications on the first attempt. - Staff was directed to provide specific dollar amounts for the current subsidy impact and comparisons to other jurisdictions' fee practices. - The council indicated support for the proposed $4,500 general appeal fee (instead of full cost recovery at approximately $7,000),