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The California Coastal Commission on Friday threatened legal action to force Palos Verdes Estates to improve public access at Lunada Bay, the site of one of the state’s best surf breaks as well as a group of aggressively territorial surfers widely known as the Bay Boys, who aim to keep outsiders away.

If the city fails to comply with state requirements, the agency said it could “consider all options to remedy the situation,” according to a letter from enforcement officer Jordan Sanchez released Friday.

Noaki Schwartz, a Coastal Commission spokeswoman, said the agency remained hopeful that the city would comply without further intervention but that options include financial penalties or a lawsuit against the city.

In a letter to the city manager, Sanchez said “your latest submittal did not include a response regarding the public access improvements we suggested as a step toward resolving the situation.”

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