New positive attitude in town

Cindy Frazier

Laguna Beach is doing very well, thank you, despite a few recent

landslides and the state’s propensity to take municipal funds to

balance its own budget, Mayor Elizabeth Pearson-Schneider told

members of the Laguna Beach Chamber of Commerce Tuesday.

“Everything’s really good,” Pearson-Schneider said, summing up her

annual “State of the City” address.

The mayor praised her City Council, calling it “one of the best”

in years, and noted what she sees as a new sense of working together

among the council and community members.

“There is a new civility on the council,” she said. “No arguing,

no bickering and projects are being brought to fruition that have

languished for years. Groups are working together and neighbors are

coming into the council and want to be part of the process.

“In 12 years in city government, this is the best environment I

have experienced. We can get so much done. Let’s keep it positive.”

The city is balancing its budget, which hovers around $50 million

a year -- but with little room to spare, since the city takes in

about the same amount, the mayor said.

“There is some bad news in the financial picture, because the

state has taken $600,000 from our budget, which has a big impact,”

she said.

Another financial strain comes from the fact that the city’s

payment for retirement benefits has increased due to some poor

investments made by the Public Employees Retirement System.

The city is also forking over some $2 million for Worker’s

Compensation -- considered a large amount for a city this size, the

mayor said.

On the fiscal plus side, the city is reaping

better-than-anticipated revenues from the controversial Montage

Resort and Spa development in South Laguna.

The city paid for a park and parking garage adjacent to the large,

ocean view hotel, borrowing from various funds to do so.

That investment has paid off, the mayor said.

“The money is now coming in so fast from hotel bed taxes that we

will pay off all the loans by next fall, and then we will have an

extra $3 million a year,” Pearson-Schneider said.

That doesn’t take into account the sales taxes generated by the

luxury hotel -- to the tune of $300,000 a year from liquor and food

sales -- as well as another $200,000 in additional property taxes

from private residences on the site.

The city also takes in $50,000 a year from parking fees related to

hotel usage.

The mayor credits City Manager Ken Frank with being the guiding

force behind the successful Montage project.

“We are in very good hands [with Frank],” she said.

The mayor urged Chamber members to have their voices heard in the

current debate over residential preferred parking, which has come to

the forefront in the wake of the Montage project, as well as in other

business locations.

“This has become an issue because Montage employees are parking in

neighborhoods near the hotel,” Pearson-Schneider said.

Business parking also is an issue in central Laguna.

“We want a balanced approach [to the parking issue], one that is

positive for both sides,” she said.

Pearson-Schneider arrived at the Chamber luncheon with numerous

city officials in tow, which she introduced to the crowd.

The city is looking for a replacement for longtime Police Chief

Jim Spreine, who will retire soon after 24 years, the mayor said.

“We have several excellent candidates from within the department,

and have had some interest in the job from people in other cities,”

she said.

In other areas, the city is moving forward.

Mark Klosterman, head of the Marine Safety Division, said a marine

protection officer is now on the job to patrol sea life within the

city’s boundaries.

“This is unique to the city, our own fish and game officer,”

Klosterman said. “This position grew out of our frustration with the

impacts of abuse and misuse of marine resources.”

Also in the area of marine safety, Klosterman said the city will

break ground in the future on a new lifeguard headquarters, and that

the lifeguards who watch over swimmers will soon have enclosed

towers, to avoid overexposure to the sun.

Rich Swanson, of administrative services, told the chamber members

that the city is now enjoying the benefits of a new computer system

and a wireless Internet service, putting Laguna Beach “on the leading

edge” of technology for cities.