STAFF REPORT
Meeting Date:
October 28, 2025
CONSENT
9 SUBJECT: MEMORANDUM OF UNDERSTANDING WITH THE LAGUNA BEACH COUNTY
WATER DISTRICT FOR SUMMIT DRIVE PAVING
RECOMMENDATION: It is recommended that the City Council:
1. Approve the Memorandum of Understanding between the City of Laguna Beach and Laguna Beach County Water District to perform roadway improvements on Summit Drive between La Mirada Street and Katella Street; and
2. Determine that this action is not a project under Section 15378 of the California Environmental Quality Act Guidelines, and is exempt under Section 15061(b)(3), as there is no possibility it may have a significant effect on the environment
SUMMARY OF THE MATTER
This report recommends that the City Council approve a Memorandum of Understanding (MOU) with the Laguna Beach County Water District (LBCWD) to allow for expanded pavement improvements along Summit Drive between La Mirada Street and Katella Street. LBCWD is currently completing a waterline replacement project in the area, and staff identified an opportunity to cost-effectively expand the pavement work while minimizing future disruptions. The existing roadway is in deteriorated condition and in need of significant repair. The City’s share of the additional work totals $195,833 and is available due to savings in the Zone 5 Street Slurry Seal project. The proposed action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15061(b)(3) and 15301(c).
DISCUSSION
The LBCWD initiated a capital improvement project to replace an aging 8-inch water main along Summit Drive between La Mirada Street and Katella Street, which had a history of leaks. The project includes the installation of approximately 600 feet of new 8-inch PVC pipeline, three new valves, and reconnections of existing water meter services. A location map is provided as Attachment 1.
On June 20, 2024, LBCWD awarded a construction contract to Ferreira Construction following a competitive bidding process from its approved contractor list. The District’s construction scope includes trenching and resurfacing only the area directly above the new waterline. However, City staff observed that the existing roadway pavement within the project limits is in poor condition and in need of broader repair.
To avoid duplicative construction efforts, reduce long-term impacts to the community, and take advantage of cost savings from the District’s existing contract, the City requested that LBCWD perform additional pavement rehabilitation work beyond its original scope. The District agreed to perform this expanded scope, approximately 18,465 square feet of pavement resurfacing and related striping, on the condition that the City reimburse its fair share of the costs.
The total reimbursement amount is $195,833, which reflects the City’s share of the additional work.
Entering into a MOU (Attachment 2) will allow the City to capitalize on the competitively bid unit prices
MEMORANDUM OF UNDERSTANDING WITH THE LAGUNA BEACH COUNTY WATER
DISTRICT FOR SUMMIT DRIVE PAVING
October 28, 2025
secured by the District, enabling a more efficient and cost-effective delivery of roadway improvements.
Under the MOU, LBCWD will complete the expanded pavement work, while the City will provide inspection, acceptance, and payment for the improvements that extend beyond the District’s original waterline project.
FINANCIAL ANALYSIS
The total cost of the City’s fair share of the additional pavement repair and striping is $195,833. Funding is available in the existing budget due to savings from the Zone 5 Street Slurry Seal Project. Specifically, funds are available in account 6323130C-81000-C2315. No additional appropriation is required..
ENVIRONMENTAL ANALYSIS
The proposed action to approve a memorandum of understanding between the City and District is not a project under Section 15378 of the California Environmental Quality Act (CEQA) Guidelines, and is exempt under Section 15061(b)(3), as there is no possibility it may have a significant effect on the environment.
The additional pavement repair is categorically exempt from CEQA pursuant to CEQA guidelines Section 15301(c) (Existing Facilities). The exemption applies to repair, maintenance, and minor alteration of existing public streets involving negligible or no expansion of use. All pavement repairs are within existing rights of way.
The Laguna Beach County Water District Board determined that the pipeline project is statutorily exempt from CEQA under Public Resources Code section 21080.21, which statutorily exempts "any project of less than one mile in length within a public street or highway or any other public right-of-way for the installation of a new pipeline or the maintenance, repair, restoration, reconditioning, relocation, replacement, removal, or demolition of an existing pipeline.”
ATTACHMENTS
1. Location Map (Pg. 3)
2. MOU with LBCWD (Pgs. 4-12)
Submitted By: Mark McAvoy Approved: .David A Kiff
Mark McAvoy, Director of Public
Works & Utilities
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Thomas Perez, City Engineer