Laguna Beach council approves five‑year LAZ transit contract, asks staff to study service reductions

Laguna Beach — The City Council voted unanimously Tuesday to authorize a new five‑year contract with LAZ Transportation to continue operating Laguna’s trolley and on‑demand services, while directing staff to study targeted service reductions and to seek community input before implementing any new passenger fares.

What the council approved: City staff recommended reappointing LAZ, which has run Laguna’s system since 2021, as the contractor on a proposed 5‑year Professional Services Agreement. Councilors agreed to the award and to a staff study of three graded service‑reduction packages ("light," "medium," "hard") that would identify where hours or routes could be reduced with the smallest public harm; they also asked staff to analyze annual and multi‑month passes and to propose outreach to school and community groups about cost‑sharing options for charter routes.

Fares and grants: Staff outlined fare options for on‑demand rides ($2–$5 per trip) and explained that several canyon routes are eligible for OCTA grant matches that cover up to 50% of some rides. The council voted to delay implementing fares on the trolley itself, noting operational complexities of onboard payment collection and the trolley’s role in reducing downtown congestion. Staff will return with community‑based proposals and three options for service reductions.

Why it matters: The trolley and on‑demand services reduce parking pressure in the village and provide a mobility option for residents and visitors; they’re largely funded from the city’s parking fund and state grants. Staff warned that rising contract costs (fuel, insurance, labor) mean the city must identify sustainable funding and/or adjust service to keep the program viable.

Next steps: Staff will (1) execute the LAZ agreement, (2) conduct targeted community outreach and rider surveys tied to a new transit app to better understand unique ridership patterns, and (3) return with the three candidate service‑reduction packages and pass/subscription options for council review.

Speakers and sources: Presentation by Alexis Braun, Acting Director of Transit and Community Services, with operational detail from Transit Supervisor Andre Chisum. Public comment included resident riders and transit advocates who favored preserving weekend service and urged ridership analysis before any cuts.