Laguna Beach town hall spotlights Caltrans relinquishment, undergrounding costs and liability

City Manager David Kiff laid out the citystaffposition and options Thursday at a town hall about Laguna Canyon Road, describing an ongoing Caltrans relinquishment process that would transfer ownership of the roadway to the City of Laguna Beach and include an estimated $14.4 million payment Caltrans says would bring the road to a "state of good repair." Kiff said staff is continuing to gather accident and claim data, insurance estimates and answers from utilities before recommending a path to the City Council.

The discussion centered on three linked questions: whether the city should accept Caltransrelinquishment, how (or whether) to underground utility lines along Laguna Canyon Road, and how to measure and pay for the safety and liability risks that could follow city ownership. Kiff told the meeting that the city would likely return to the council in October or November with a recommendation and that staff plans another town hall and more data collection in the meantime.

Kiff described the formal steps already underway: state authorization (completed in 2020), a city request to Caltrans (filed in 2024), and a negotiated calculation of the amount Caltrans says is needed to bring the road to its internal standards. "That amount is the amount you've seen discussed. It's about 14,400,000.0 that would be given to the city in this relinquishment," Kiff said. He emphasized that Caltransdefinition of "state of good repair" does not include the kinds of lane-width changes, traffic-calming measures or extensive undergrounding that many residents want.

Staff and multiple residents focused on cost and risk. Kiff referenced a 2020 HDR…