RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
Attn:City Clerk’s Office
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
WITH A COPY TO:
Attn:City Clerk
City of Fountain Valley
10200 Slater Avenue
Fountain Valley,CA 92708
AND A COPY TO:
Attn:General Manager
Laguna Beach County Water District
306 Street
Laguna Beach, CA 92651
EXEMPT FROM RECORDING FEES PER GOV. CODE SECTION 6103
Space above this lineforRecorder's use only.
WATER WELL PERMIT AND ENCROACHMENT AGREEMENT
(Water Well Permit Number
This WATER WELL PERMIT AND ENCROACHMENT AGREEMENT
day of(“Agreement”) is made and entered into this
between the CITY OF NEWPORT BEACH, a Californiamunicipal corporation and charter city,organized and existingunder and by virtueof itsCharter and the Constitution, and the laws of the State of California(“Newport Beach”), the CITY OF FOUNTAIN VALLEY, a Californiamunicipal corporation,organized and existingunder and by virtueof the laws of the State of California(“Fountain Valley”),and the LAGUNA BEACH COUNTY WATER DISTRICT, an incorporated County Water Districtand Special Districtunder the CaliforniaWater Code Section 30000 et. seq. (“LBCWD”). Fountain Valley, Newport Beach, and LBCWD are sometimes hereinafterindividuallyreferred to as “Party” and hereinaftercollectivelyreferredto as “Parties.”
, 2025, by and
RECITALS
WHEREAS, LBCWD is the vested owner of property located at 17902 Bushard Street, in the City of Fountain Valley, California,as legallydescribed in Exhibit “A,” attached hereto and incorporated herein by reference (“Property”),and Newport Beach intends to become a jointproperty owner via a separate agreement and transaction;
ATTACHMENT A
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WHEREAS, LBCWD and Newport Beach have entered intoa separate standalone Memorandum of Understanding establishinga framework for collaboration on the use of the Property fora new water wellfacilitythatwould supply groundwater from the Orange County Ground Water Basin (“Basin”)to the LBCWD’s and Newport Beach’s water customers:
WHEREAS, Newport Beach desires to construct certain standard Improvements as furtherdescribed inSection 2 of thisAgreement (“Improvements”) on the Property and withinthe Bushard Streetand TalbertAvenue rights-of-way(“Rights-of-Way”); WHEREAS, the Property and Rights-of-Way are located within the jurisdictional boundary of Fountain Valley:
WHEREAS, the Basin is an unadjudicated groundwater basin that serves communities in north and centralOrange County:
WHEREAS, CaliforniaGovernment Code Section 53091(e) exempts facilitiesfor production, generation, storage, treatment, or transmission of water from the zoning ordinances of any county or city:
WHEREAS, pursuant to the California Environmental Quality Act (“CEQA’) Guideline Section 15051(a), Newport Beach is designated the lead agency for CEQA purposes: and
WHEREAS, the partieshereto desire to enter into thisAgreement providing for fulfillmentof the conditions required by Fountain Valley to permit Newport Beach to construct,operate, and maintain Improvements associated with the Improvements.
NOW, THEREFORE, in consideration of the mutual promises, the parties hereto agree as follows:
1. Recitals.Allpartiesacknowledge that the above Recitals are true and correct and are hereby incorporated by reference intothisAgreement.
Improvements. The approved Improvements shallinclude:
Two water wells,includingallrelatedappurtenances, to be constructed to approximate depths of 700 feet and 300 feet.
A 15-foottall,2,400-square-foot water well housing structure.
An 8-foot-tallconcrete masonry block wall to be constructed along the property boundaries, which willinclude two 20-foot-wide slidinggates to provide access to the Property from Bushard Street.
Prior to the issuance of any construction permits, Newport Beach shall submit a report prepared by a licensed engineer, demonstrating that the proposed 18-inch reinforced concrete storm drain to connect the Property to the existing Fountain Valley storm drain infrastructurein the Talbert
2. a.
b.
c.
d.
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Avenue right-of-wayhas adequate residualcapacity to sustain flows under the City’s25-year design storm standards. The storm drain will connect from a catch basin on the Property, extending south within the Bushard Street right-of-way,to the existingFountain Valley storm drains within the Talbert Avenue right-of-way.Ifthe City Engineer determines thatthe existingstorm drain system lacks the required capacity, Newport Beach shall, at itssole cost and expense, design and construct whatever Improvements the engineer deems necessary to accommodate the required flow.
A 24-inch water main to connect the new water wells to the existingNewport Beach water main within Talbert Channel. The water mains shall extend from the Property south, withinthe Bushard Street right-of-way,then west withinthe Talbert Avenue right-of-way,connecting to the existingNewport Beach water main in Talbert Channel. The Improvements described in Sections 2(d) and 2(e) are collectivelyreferredto herein as “Right-Of-Way Improvements.”
e.
f. Other Property and Right-of-Way Improvements deemed necessary by Newport Beach to construct, operate, and maintain the water wells. This may include,but isnot limitedto,a concrete transformer pad, an emergency generator, landscaping, water treatment facilities,and parking and driveway Improvements.
3. Cooperative Work. Fountain Valley, Newport Beach, and LBCWD desire to work cooperatively together so that the Improvements can be completed in a manner that minimizes the cost to and impact on the public while allowing the Partiesto accomplish theirrespectivemissions. The specificterms and conditionsgoverning the elements of thisAgreement are set forthhereinafter.
Fountain Valiev Municipal Code. This Agreement satisfiesall requirements of Fountain Valley Municipal Code Section 14.16.040, which requires an agreement approved by the Fountain Valley City Council for the development of any well or facilitiesintended forthe purpose of transportingor conveying water outside of the city.
Newport Beach’s Specific Obligations.
4. 5.
Newport Beach shallconstruct allImprovements on the Property and inthe Rights-of-Way.
Newport Beach shall(and shallcause itsagents and contractorsto)comply with allapplicable laws, regulations, and ordinances in connection with performing the work.
Newport Beach shallprepare and submit plans and specificationsfor the design and construction of the Improvements to Fountain Valley for review, comment, and to ensure the plans and specificationsare in substantial conformance with allapplicable laws, regulations,and ordinances. a.
b.
c.
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d. Newport Beach shall secure all necessary approvals (e.g. permits, encroachments, etc.)from the Cityof Fountain Valley to install and maintain the Improvements.
Newport Beach shall ensure the Improvements are compliant with CEQA and shalltake allnecessary actions as required by CEQA. e.
f. Newport Beach shall maintain all Improvements in accordance with generally prevailing standards of maintenance and pay all costs and expenses incurred indoing so. However, nothing herein shall be construed to require Newport Beach to maintain, replace, or repairany Fountain Valley owned pipeline, conduit, or cable located in or under said Permitted Improvements, except as otherwise provided herein.
IfFountain Valley or other publicfacilitiesor Improvements are damaged by the installationor presence of Right-of-Way Improvements, Newport Beach shallbe responsible for the cost of repairsand restorationof these public facilitiesor Right-of-Way Improvements to theirconditionatthe time of entry into thisAgreement.
Newport Beach agrees to pay the following public benefitand mitigation fees to Fountain Valley;
$82,000 one-time payment formitigationof potentiallost revenue in permits, plan checks, and fees;
An annual public benefitpayment of $10,000 for loss of potential property tax revenue. This payment shallbe automaticallyadjusted and compounded by the percentage change in the Consumer Price Index (“CPI”):
g-
h.
(i)
(ii)
(iii) $45,000 one-time payment forencroachment intothe rights-of-way to include the placement of the water main, storm drain,and allcurb, gutter,and sidewalk Improvements.
$100,000 one-time publicbenefitpayment foruse towards Fountain Valley’s Public Safety use or projects,or towards future Fountain Valley water or well system improvements or rehabilitations.
As a benefitto Fountain Valley,Newport Beach shall,at itssole cost,design and constructa pipelinestub out fora futureSystem Interconnect adjacent to the groundwater production facilityat the Bushard Street site. Newport Beach agrees to cooperatively work with Fountain Valley and allow a connection and water use of the future System Interconnect ifrequested by Fountain Valley. A System Interconnection would be designed and constructed by Fountain Valley,permittingFountain Valley access to water produced by Newport Beach wells in the event of an emergency that disrupts Fountain Valley's water service. Newport Beach shall cooperate (iv)
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with Fountain Valley relativeto the design and constructionof the System Interconnectand any relatedequipment necessary to Fountain Valley'suse of thesystem inthe event ofan emergency. Water from the Newport Beach system willnot be disinfected,and itwillbe Fountain Valley'sresponsibility to provide the appropriatelevelof disinfectionforany water taken from the Newport Beach Groundwater Development Project.The Public Works Directorsfrom Newport Beach and Fountain Valley shalladopt standard operatingprocedures thatwillcontrolthe use ofthe System Interconnect in case of an emergency.
Newport Beach shalldesign and construct,at itssole cost, an 8-inch C900 water main that ties the 8-inch Asbestos Cement water main on La Amapola Circle to the 8-inch Asbestos Cement water main on Bushard Street with isolatinggate valves ateach end ofthe tie-in.Newport Beach shall dedicate an easement for the pipelineand shall cooperate with Fountain Valley relativeto the design and construction of the water main extension. The new pipeline and connections improve Fountain Valley’s water quality circulationand neighborhood redundancy. The estimated value of this improvement and easement is$200,000.
The payments described in Section 5(h) shallbe made by Newport Beach to Fountain Valley as follows:
The $82,000 one-time payment for mitigation of potential lost revenue shallbe paid withinthirty(30) days of the Effective Date of thisAgreement.
The annual publicbenefitpayment of $10,000 for loss of potential property tax revenue, as adjusted annually by CPI shallbe due on the anniversary of the EffectiveDate, with the firstpayment due withinthirty(30) days of the EffectiveDate of thisAgreement.
The $45,000 one-time payment forencroachment intothe rights-of- way shallbe paid priorto the issuance of any constructionpermit issued by Fountain Valley.
The $100,000 one-time public benefit payment for use towards Fountain Valley’sPublic Safety use or projects,or towards future Fountain Valleywater or wellsystem improvements or rehabilitations shall be paid within thirty(30) days of the Effective Date of this Agreement.
J-
k.
(i)
(ii)
(iii)
(iv)
Fountain Valiev’s Specific Obliqations.6.
Fountain Valley permits Newport Beach to construct,reconstruct, install, maintain, use, operate, repair, and replace said Right-of-Way Improvements and appurtenances incidentalthereto, within a portion of Right-Of-Way, , in a locationthat is in substantialconformance with the a.
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plans and specificationson filewith Fountain Valley. Fountain Valley permits Newport Beach to take all reasonable measures necessary or convenient inaccomplishing the aforesaid activities.
b. Fountain Valley shall issue allrequired permits to construct, reconstruct, install,maintain, use, operate, repair,and replace all Improvements that meet applicablebuildingcode requirements, the approval of which shall not be unreasonably withheld,conditioned,or delayed.
Unless specified herein. Fountain Valley shall not charge an in-lieu, application,plan check, permit issuance, encroachment, inspection,impact, or any other fee for any work related to the construction,reconstruction, modification, alteration,installation,maintenance, use, operation, or repair of the Improvements.
Fountain Valley shall not connect, modify, alter,or otherwise utilizeany infrastructureconnected to the Right-of-Way Improvements, except as provided below:
Should Fountain Valley be required to exercise itsprimary rights associated with said Rights-of-Way, including but not limited to, the maintenance, removal, repair,renewal, replacement, or enlargement of existingor future publicfacilitiesor Improvements, Fountain Valley may modify or alterportionsof permitted Improvements, as required, and in such event:
c.
d.
(i)
(ii) Fountain Valley shall notify Newport Beach at least 30 days in advance of its intention to accomplish such work, unless an emergency situationexists,in which case Newport Beach shall be notifiedas soon as possible, but no later than 72 hours after commencement of the emergency work.
Newport Beach, at itssole cost and expense, shall be responsible for arranging for any renewal, replacement, or restoration of permitted Right-of-Way Improvements to the conditions that existed immediately before Fountain Valley commenced work in the rights- of-way.
Fountain Valley agrees to bear allcosts of work on City-owned facilities.Newport Beach agrees to bear allcosts to remove, alter, and replace the permitted Right-of-way Improvements affected by such work.
(iii)
(iv)
LBCWD’s Specific Obligations.7.
LBCWD shall provide any required authorization required by Fountain Valley for issuance of permits forthe Improvements.
a.
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LBCWD shall provide required access to Newport Beach to construct, operate, and maintain the Improvements.
Term. This Agreement willbe in fullforceand effectuntilthe Parties mutually agree to terminate thisAgreement inwriting.
Notices. Allnotices or other communications required or permitted herein shallbe in writingand willbe personallydeliveredor sent by registeredor certifiedmail, postage prepaid, return receipt requested, delivered or sent by electronic transmission to the following;
To Newport Beach:
b.
8. 9.
City of Newport Beach
Attn:City Manager
100 Civic Center Drive
Newport Beach, CA 92660
Email: [email protected]
Phone; 949-644-3001
City of Fountain Valley
Attn:City Manager
10200 Slater Avenue
Fountain Vailey,CA 92708
Email; [email protected]
Phone; 714-593-4402
To Fountain Valley:
Laguna Beach County Water District
Attn:General Manager
306 3^d Street
Laguna Beach, CA 92651
Email: [email protected]
Phone: 949-494-1041
To LBCWD :
Indemnification.Newport Beach and LBCWD shaii defend, indemnify and hold harmless Fountain Valley, its City Council, Board of Directors, boards and commissions, officersand employees from and against any and allloss,damage, liability,claims, suits,costs and expenses whatsoever, including reasonable attorneys'fees (when outsideattorneys are so utilized),regardless of the merit or outcome of any such claim or suitarisingfrom or in any manner connected with the design, construction,maintenance, or continued existence of the Right-of-Way Improvements.
Insurance: Newport Beach and LBCWD shall maintain commercial liability insurance with coverage limitsof no iessthan Two MillionDollars($2,000,000) per occurrence and Four MillionDollars($4,000,000) aggregate. The City of Fountain Valley shallbe named as an AdditionalInsured with respect to the construction and/or operations in Fountain Valiey’s public rights-of-way.
10. 11.
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No Attorneys’ Fees. In the event of any dispute or legalaction arisingunder this Agreement, the prevailingparty shalln^ be entitledto attorneys’fees.
Standalone Agreements. This Agreement shall not be construed to nullify, override,modify, change, or otherwise alterany standalone agreement between any of the Parties.Allother standalone agreements shall remain in effect and full force as dictated by those agreements.
Cessation of Operations. Ifthe Improvements cease operations for a continuous period of twenty-four(24) months, the Parties agree to meet and confer in good faithto renegotiate thisAgreement.
Ten-Year Evaluation. The Parties agree to meet and confer in good faithto evaluate the terms of thisAgreement ten (10) years after the Effective Date. This evaluation shall include, but is not limited to, review of the impacts of the Improvements, including the annual in-lieuproperty tax payment, the Annual MitigationConsideration methodology, insurance requirements, and the condition of any right-of-wayImprovements. Any modificationto thisAgreement shallrequire mutual written consent of all Parties.
12. 13.
14. 15.
Force Maieure. Except for the payment of money, no Party willbe liable forany delays or other non-performance resultingfrom circumstances or causes beyond itsreasonable control,includingwithout limitation,fireor other casualty, act ofGod, strikeor labordispute,war or other violence, actsof thirdparties,or any law, order, or requirement of any governmental agency or authority.
Governing Law. The laws of the State of California shallgovern thisAgreement and allmatters relatingto it,and any actionbrought relatingto thisAgreement shall be adjudicated in a court of competent jurisdictionin the County of Orange, California.
16. 17.
Waiver. A waiver by eitherparty ofany breach, of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character.
18. Modification. Alteration,change, or modificationof thisAgreement willbe in the form of a writtenamendment, which willbe signed by all Parties.
Entire Agreement. This Agreement constitutes the entire understanding and agreement between the Parties and supersedes allprevious negotiations and agreements between the Partiespertainingto the subject matter hereof.
Severability.Ifany term or portionof thisAgreement isheld to be invalid,illegal,or otherwise unenforceable by a court of competent jurisdiction,the remaining provisionsof thisAgreement shallcontinue in fullforce and effect.
19. 20.
21.
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Agreement Execution and Authorization. Each of the undersigned represents and warrants that he or she is duly authorized to execute and deliverthisAgreement and that such execution is binding upon the entityon whose behalf he or she is executing thisAgreement.
Counterparts Deemed Original:This Agreement may be executed in one or more counterparts (includingby e-mail,other electronictransmission, and/or facsimile), allparties need not be signatoriesto the same documents, and allcounterpart signed documents shallbe deemed to be one and the same originalinstrument.
22. 23.
[SIGNATURES ON NEXT PAGE]
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IN WITNESS WHEREOF, the partieshereto have caused thisAgreement to be executed on the dates written below.
CITY OF NEWPORT BEACH,
a Californiamunicipal corporation
Date;
By;
Grace K. Leung
City Manager
APPROVED AS TO FORM:
CITY ATTORNEY’S OFFICE
ATTEST:
Date: Date:
IBy: By:>
Aaron CFHarp
City Attorney
Lena Shumway
City Clerk
CITY OF FOUNTAIN VALLEY,
a Californiamunicipal corporation
Date:
By:
Ted Bui
Mayor
APPROVED AS TO FORM:
ATTORNEYS FOR THE CITY
ATTEST:
Date: September 23, 2025 Date:
1/1
By:
By:
Vanessa Lassooy
Attorney forthe City
Rick Miller
City Clerk
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LAGUNA BEACH COUNTY WATER DISTRICT,
a CaliforniaSpecial District
Date:
By;
Keith Van Der Maaten
General Manager
APPROVED AS TO FORM:
GENERAL COUNSEL
ATTEST:
Date: Date;
By:By:
General Counsel
[END OF SIGNATURES]
ATTACHMENTS: ExhibitA — Legal Description
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EXHIBIT A
LEGAL DESCRIPTION
All that certain real property situated in the County of Orange, State of California, described as follows:
THAT PORTION OF PARCEL 2, IN THE CITY OF FOUNTAIN VALLEY, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 95, PAGES 41 TO 42 INCLUSIVE OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OR SAID COUNTY, SHOWN AND DESCRIBED AS " NOT A PART' OF THE MAP OF TRACT 16434, IN THE CITY OF FOUNTAIN VALLEY, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 851, PAGES 22 TO 23,
INCLUSIVE OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
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