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HomeMy WebLinkAboutC-3004(A-1) - Well site, easement & option to purchaseit CITY OF NEWPORT BEACH OFFICE OF THE CITY CLERK P.O. BOX 1768, NEWPORT BEACH, CA 92659-1768 (714) 644-3005 February 29, 1996 County Recorder's Office P.O. Box 238 Santa Ana, CA 92702 Enclosed is the following document for recordation and return to the office named above: Well Site Easement Agreement and Option to Purchase between the City of Fountain Valley and the City of Newport Beach. C-13cr'11- Sincerely, LaVonne M. Harkless, CMC/AAE City Clerk 3300 Newport Boulevard, Newport Beach RECORDING REQUESTED AND WHEN RECORDED RETURN TO: City Clerk City of Newport Beach Post Office Box 1768 3300 Newport Boulevard Newport Beach, California 92658-8915 Space above this line for Recorder's use only WELL SITE EASEMENT AGREEMENT AND OPTION TO PURCHASE BETWEEN THE CITY OF FOUNTAIN VALLEY AND THE CITY OF NEWPORT BEACH Last Revised January 29,1996 • IP TABLE OF CONTENTS PARAGRAPH PACE NUMBER SUBJECT NUMBER Recitals 3 Executory Agreements 4 1.1 Grant of Easement 4 1.2 Purpose of Easement 4 1.3 Restrictions 4 1.4 Term of Easement 5 1.5 Termination of Easement 5 1.6 Option to Purchase 6 1.7 Consideration 6 1.8 General Plan Conformance 8 1.9 Landscaping and Architectural Review 8 2.0 Municipal Code Restrictions 8 2.1 Water Well Permit 9 2.2 Development Agreement Mitigation Fee 9 2.3 Other Permits 9 2.4 Maintenance and Use of Unoccupied Easement Area 10 2.5 Utility Costs 10 2.6 MWD Allocation Programs/System Interconnect 10 2.7 Notices 11 2.8 Indemnification 12 2.9 Partial Invalidity 12 3.0 Integration, Construction and Amendment 13 3.1 Attorney Fees 13 3.2 Successors 13 3.3 Authorization to Enter Agreement 13 3.4 Assignment 13 3.5 Right of Access 13 3.6 Possessory Interest 13 Signatures 14 Exhibit A Legal Description 15 Exhibit B Site Plan 16 Exhibit C Mitigation Consideration Formula 17 2 • • WELL SITE EASEMENT AGREEMENT AND OPTION TO PURCHASE BETWEEN THE CITY OF FOUNTAIN VALLEY AND THE CRY OF NEWPORT BEACH This Easement Agreement and Option to Purchase (Agreement), by and between the City of Fountain Valley (Fountain Valley) and the City of Newport Beach (Newport Beach) is made this day of 1996, in light of the following: RECITALS 1. Newport Beach is in the process of implementing a Groundwater Development Project which involves drilling four (4) water wells on two (2) sites in Fountain Valley, the construction of facilities related to the wells and the installation of a system to transport the groundwater; 2. Fountain Valley is the owner of property located at the southeast corner of the intersection of Slater Avenue and Dolphin Avenue (Dolphin Avenue site) which the parties believe to be suitable as a water well site; 3. Fountain Valley is willing to grant to Newport Beach, for consideration, an Easement over the Dolphin Avenue site which will allow drilling of two water wells and the construction of related improvements. Fountain Valley is also willing to issue all permits and approvals necessary to authorize the drilling of two water wells and the construction of related improvements on a second well site (Tamura School site); 4. Fountain Valley has amended its Municipal Code to authorize the drilling of wells and the construction of related facilities for the purpose of transporting water outside of Fountain Valley City limits provided those activities are conducted pursuant to an agreement approved by the Fountain Valley City Council; 5. Fountain Valley desires to obtain an additional 1,800 acre feet of water demand allocations from the Metropolitan Water District of Southern California via a transfer from Newport Beach's allocations; 6. Fountain Valley desires to mitigate the potential financial impacts that may occur due to changes in the groundwater level at Fountain Valley well sites which are attributable to Newport Beach groundwater production; 7. Newport Beach is willing to provide a system interconnect to allow Fountain Valley, in emergency situations, to access groundwater produced by Newport Beach; 8. This agreement represents a compromise between the parties regarding the scope, source and nature of Fountain Valley's authority, if any, to control or condition the groundwater production or transmission activities of Newport Beach. 3 EXECUTORY AGREEMENTS The parties do agree as follows: 1.1 Grant of Easement Fountain Valley grants and conveys to Newport Beach an exclusive Easement over the Dolphin Avenue site shown and described in Exhibit A and depicted in Exhibit B and generally described as a parcel of land approximately 63 feet wide and 180 feet long located on the northerly side of Dolphin Avenue and south of Slater Avenue (Easement Area). 1.2 Purpose of Easement Newport Beach is entitled to use the Easement Area for the following purposes: (a) to drill, install, construct, deepen, enlarge, operate, maintain, repair, replace, and redrill two (2) water wells together with related equipment, (including but not limited to water purification facilities, equipment, materials, supplies, and electrical equipment), piping and all other ancillary and incidental facilities necessary to produce, purify and transport groundwater from beneath this Easement Area to Newport Beach's transmission lines (the Facilities); (b) to construct a building, roads, curb cuts and other improvements necessary to inspect, service, maintain, repair, replace, and redrill the Facilities; (c) to engage in any activity necessary or incidental to the construction, installation, operation, maintenance and repair, drilling or redrilling of the Facilities, or the storage of material necessary to pump, purify, fluoridate or transport the water produced from beneath the Easement Area. 1.3 Restrictions Newport Beach shall comply with the following restrictions on the rights granted by the Agreement: (a) the building to be constructed to house the water wells will not exceed 18 feet in height, 40 feet in width or 110 feet in length; (b) the building shall be constructed with an exterior appearance compatible with other buildings near the Dolphin Avenue site; (c) Newport Beach shall insulate the structure housing the water wells, or otherwise mitigate noise, such that the improvements authorized by this Agreement do not significantly increase ambient noise levels on surrounding private property; 4 (d) Newport Beach shall at all times be responsible for maintaining the exterior appearance of all above ground Facilities in a neat and orderly condition; (e) Newport Beach shall allow no nuisance to occur on the property and shall conduct all operations and shall have all Newport Beach representatives on the Easement Area conduct themselves in accordance with the Fountain Valley Municipal Code including, but not limited to, its Noise Ordinance. 1.4 Term of Easement The initial term of this Agreement and Easement shall be twenty-five (25) years, commencing from the date of execution by Fountain Valley (Commencement Date). Newport Beach shall have the option to extend the term of this Agreement and Easement for three (3) additional consecutive twenty-five (25) year periods. Newport Beach shall be considered to have exercised this option to renew unless Newport Beach or any successor notifies Fountain Valley in writing of its intention not to exercise the term -extension option. 1.5 Termination of Easement The Agreement and Easement may be terminated under the following conditions: A. By Newport Beach. Newport Beach may terminate this Agreement upon determination that continued groundwater pumping from the subject area is no longer feasible. Newport Beach shall give Fountain Valley at least one (1) year's written notice of its intent to terminate this Agreement and the notice shall specify the date of termination. Newport Beach's obligation to make payments shall continue until Newport Beach has restored the Easement Area to its original condition by removing the Facilities (including the abandonment of the wells) in accord with all federal, state and other regulatory requirements and by providing Fountain Valley with a quitclaim deed or other document evidencing its termination and abandonment of the Easement Area. Newport Beach has made its own independent investigation of the Easement Area site and underground conditions, and Newport Beach shall not be entitled to damages from Fountain Valley if it so terminates, and its remedy will be limited to a return of any unused portion of the prepaid rent. B. In consideration of the cost of the Facilities, Fountain Valley agrees not to terminate this Agreement without granting Newport Beach an option to purchase as provided in Section 1.6. Fountain Valley shall give Newport Beach one (1) year's written notice of its intent to terminate this Agreement accompanied by an option to acquire fee title 5 to the Easement Area. If Fountain Valley terminates this Agreement and Newport Beach does not exercise the purchase option described in Section 1.6, Newport Beach shall restore the Easement Area to its original condition by removing all improvements and abandoning the wells in accord with all federal, state and other regulatory requirements. 1.6 Option to Purchase Newport Beach shall have the exclusive option to acquire fee title to the Easement Area if Fountain Valley exercises its right to terminate the Agreement pursuant to Section 1.5 (B) and Newport Beach is not in material default under this Agreement. Newport Beach shall exercise this option to purchase by giving Fountain Valley written notice of its intent to purchase the Easement Area within ninety (90) days after Fountain Valley serves written notice of its intent to terminate the Agreement. The purchase price shall be determined by an appraisal prepared by an MAI appraiser selected by the parties. Should Newport Beach exercise such option, it agrees that any subsequent use of the property will be limited to the uses specified in Section 1.2 of this Agreement, and no other use, and Fountain Valley agrees that any use consistent with Section 1.2 of this Agreement will comply with the General Plan, Zoning Ordinance, and Building Ordinance, notwithstanding any other provision of law, including Section 53090, et seq., of the California Government Code. 1.7 Consideration A. The Annual Consideration for this Agreement shall be $25,000.00 per fiscal year (July 1" to June 30'). The Annual Consideration shall be due and paid in advance of the fiscal year for which the payment is due and in no event later than June 30'. Newport Beach shall pay Fountain Valley a prorated share of this Annual Consideration for the first year of the Agreement for that portion of the year between the Commencement Date and the following June 30t°. There will be no adjustment or change in the Annual Consideration for the first ten (10) years of this Agreement. Beginning with the eleventh year of the Agreement, July 1, 2007, the Annual Consideration shall be increased or decreased to reflect the change in the All Urban Consumers Price Index (CPI) for the Los Angeles -Anaheim -Riverside area published by the Department of Labor. The annual adjustment in consideration from the eleventh year until the twenty-fifth year of the initial twenty-five (25) year term shall be computed using the difference in value of this CPI between July 1, 2007, and its value on June 30th each successive year thereafter. The Annual Consideration shall be adjusted at the end of each of the three (3) twenty-five (25) year renewal terms provided in Section 1.4 of this Agreement. The modified Annual Consideration shall be an 6 amount equal to the total of the CPI index adjustments during the twenty-five (25) year term multiplied by the "Annual Consideration" at the beginning of that term. Annual adjustments shall continue thereafter. B. In addition to the Annual Consideration, Newport Beach will pay an annual Mitigation Consideration to compensate Fountain Valley for increased operational costs directly related to lower groundwater levels directly attributed to Newport Beach groundwater production from the Dolphin Avenue site and the Tamura School site. Within thirty (30) days after Newport Beach commences groundwater production from both the Dolphin Avenue and the Tamura School sites, a first year Mitigation Consideration of $24,000.00 shall be paid to Fountain Valley. This figure is based on the aquifer testing performed on Fountain Valley wells and estimates of Newport Beach's pumping impacts as summarized in the report dated November 1995, prepared by the Orange County Water District. The parties have generally agreed to a formula for determining the Mitigation Consideration to be paid each year subsequent to the first year of Newport Beach's groundwater production. The formula is specified in Exhibit C to this Agreement. During the first year of groundwater production by Newport Beach, from both the Dolphin Avenue and the Tamura School sites, Newport Beach and Fountain Valley will engage in additional testing to determine the actual drawdown attributable to Newport Beach groundwater production. Subsequent to the first year of groundwater production by Newport Beach, the Public Works Directors of Newport Beach and Fountain Valley will meet and confer to agree on increases and decreases in the amount of drawdown due to Newport Beach groundwater production (H), the cost of power (P), and plant efficiency (E). The Mitigation Consideration for the second year of this Agreement shall be as determined by the Public Works Directors of Newport Beach and Fountain Valley. The Mitigation Consideration shall be adjusted every fifth year during the term of this Agreement, pursuant to mutual agreement of the Public Works Directors on increases or decreases in drawdown, power costs, or plant efficiency. If a dispute should arise between the Public Works Directors regarding the value of any component to the formula, the dispute will be submitted to a qualified individual (Hearing Officer) who shall conduct a hearing and prepare a tentative decision accompanied by findings of fact and conclusions of Law, relative to the value of the component in dispute. Any member of the Judicial Arbitration and Mediation Service (JAMS) or similar association shall be considered a qualified individual to serve as the Hearing Officer. The Parties shall agree on hearing procedures and rules designed to reduce the cost and time of the proceedings, such as limits on the amount of live testimony, limits on length of legal documents, and stipulations as to undisputed facts. The tentative decision of the Hearing Officer, together with the proposed findings of fact, conclusions of Law and a record of the 7 hearing, shall be submitted to the Fountain Valley City Council for its consideration and determination. The Fountain Valley City Council shall adopt the tentative decision of the Hearing Officer unless it determines that, in light of the entire record before the Hearing Officer, the tentative decision is not supported by substantial evidence. The decision of the Fountain Valley City Council to adopt the tentative decision of the Hearing Officer shall be binding on the Parties until the next adjustment period. In the event Newport Beach disputes any determination of the Fountain Valley City Council that there was not substantial evidence in the record to support the tentative decision of the Hearing Officer, Newport Beach shall have the right to challenge the determination of the Fountain Valley City Council by an action for Declaratory Relief, Writ of Mandate, or other appropriate cause of action brought in the Superior or Municipal Court of Orange County. Newport Beach and Fountain Valley mutually agree that the Fountain Valley City Council's determination regarding the tentative decision of the Hearing Officer constitutes an act which is "specifically enjoined" (as that term is used in California Civil Procedure Section 1085), in accordance with Chapters 8.12 and 14.16 of the Fountain Valley Municipal Code. 1.8 General Plan Conformance On July 13, 1994, the Fountain Valley Planning Comnssion unanimously confirmed that the Newport Beach Groundwater Project is in conformance with the City of Fountain Valley General Plan. Newport Beach has, in good faith, relied upon this decision for expending substantial sums on the design and construction of the Facilities to transport groundwater from the Dolphin Avenue site and intends to expend significant additional funds to construct similar Facilities at the Tamura School site. Unless this Agreement is amended to the contrary, the Easement Area and Tamura School site shall not be subject to any subsequently enacted amendment of Fountain Valley's General Plan, Subdivision or Zoning Ordinances which would impair the ability of Newport Beach to produce groundwater from the Easement Area or the Tamura School site. 1.9 Landscaping and Architectural Review On July 27, 1994, the Fountain Valley Planning Commission approved the proposed building elevations and landscaping for the Dolphin Avenue site. Buildings and landscaping shall be constructed in accordance with the approved plans. Any later modification will be subject to similar review. 2.0 Municipal Code Restrictions The Fountain Valley City Council amended its Municipal Code, Chapters 8.12 and 14.16, to enable the Public Works Director and/or City Council to 8 • • enter into this Agreement authorizing the Newport Beach Groundwater Development Project, the construction of the Facilities, and the transmission of groundwater to Newport Beach. Unless this Agreement is amended to the contrary, the Easement Area and the Tamura School site shall not be subject to any subsequently enacted amendment of Fountain Valley's Municipal Code, which would restrict Newport Beach from maintaining and operating the Groundwater Project provided for in this Agreement. 2.1 Water Well Permit This Agreement contemplates issuance of a Water Well Permit for the Groundwater Project pursuant to relevant provisions of Fountain Valley's Municipal Code. Fountain Valley agrees to process this permit expeditiously and on a timely basis. Fountain Valley's approval shall not be unreasonably withheld. Fountain Valley will process the permit within four (4) weeks of submission of signed improvement plans from Newport Beach. The payment of Annual Consideration for the Easement site, the payment of Mitigation Consideration, the potential for transfer of unused new water demand allocations, and the construction of a system interconnect provides substantial benefits to Fountain Valley and any one of these benefits constitute more than adequate evidentiary basis for a finding by the Fountain Valley Public Works Director that "the public's interest as otherwise provided for" by this Agreement as required by Section 8.12. 2.2 Development Agreement Mitigation Fee Fountain Valley and Newport Beach agree that this document satisfies the criteria for a Development Agreement as established by the State Zoning and Planning Act and the Municipal Code of the City of Fountain Valley. The Fountain Valley City Council adopted a policy which requires a Development Agreement Mitigation Fee for residential, commercial or industrial developments which have the potential to increase the cost of, or the need for, City services. The parties agree that the Mitigation Consideration eliminates the potential for arty increase cost to Fountain Valley resulting from the Groundwater Development Project and that components of the Project, such as the emergency interconnect and the potential for transfer of MWD water demand allocations, have the potential to actually decrease the cost of services to Fountain Valley residents. Fountain Valley agrees that this Agreement and the Groundwater Development Project are exempt from the Development Agreement Mitigation Fee. 2.3 Other Permits Newport Beach shall obtain all permits required to construct the Facilities in the Easement Area. Fountain Valley, as the land owner, will sign all 9 permit applications as required by the local agencies issuing the permits. Fountain Valley will also expedite the plan check and permitting processes for the construction drawings and will issue the necessary encroachment permits for partial closure of Dolphin Avenue during construction of the Project. Fountain Valley's approval of these permits shall not be unreasonably withheld. 2.4 Maintenance and Use of Unoccupied Easement Area Fountain Valley shall be entitled to continue using the unoccupied portions of the Easement Area except when these areas are being used by Newport Beach for construction or maintenance of the Facilities. In consideration of Fountain Valley's use of the unoccupied portion of the Easement Area, Fountain Valley agrees to maintain this unoccupied area. After use of the unoccupied area by Newport Beach for construction or maintenance, Newport Beach shall restore any disturbed portions of the area. 2.5 Utility Costs All utility costs and other expenses related to the Easement Area shall be borne by Newport Beach. 2.6 MWD Allocation Programs/System Interconnect As additional consideration and mitigation for the issuance of all permits necessary to construct wells resulting from the Groundwater Development Project, Newport Beach agrees to the following: A. MWD Allocation Program Newport Beach shall, to the extent allowed by the Metropolitan Water District of Southern California (MWD) and its member agencies (Coastal Municipal Water District and the Municipal Water District of Orange County), provide or transfer some of Newport Beach's unused MWD Water Demand Allocations (up to a maximum of 1,800 acre feet) to Fountain Valley, so that Fountain Valley may benefit from those unused allocations by avoiding certain MWD or member agency costs or charges. Newport Beach shall initially transfer 700 acre feet of MWD Water Demand Allocations to Fountain Valley. The transfer is to take place when water well production begins delivering water to Newport Beach. If the OCWD sets the Basin Production Percentage for Fountain Valley at a value of less than seventy percent (70%0), then Newport Beach shall 10 i • transfer an additional 550 acre feet of MWD Water Demand Allocations to Fountain Valley. If the OCWD sets the Basin Production Percentage for Fountain Valley at a value of less than sixty-five percent (65%0), then Newport Beach shall transfer an additional 550 acre feet of MWD Water Demand Allocations to Fountain Valley. In the event Newport Beach terminates this Agreement at any time under the terms of paragraph 1.5, Fountain Valley shall agree to transfer to Newport Beach, all previous MWD Water Demand Allocations transferred to Fountain Valley. If Fountain Valley has not used all or a portion of the MWD Water Allocations transferred or offered for transfer within twenty-five (25) years of the Commencement Date, then the offer to transfer that portion which has not been used by Fountain Valley will be renegotiated as a part of the Annual Consideration adjustment described in Section 1.7, Consideration, of this Agreement. In this renegotiation the maximum MWD Water Allocation transfer shall remain at 1,800 acre feet. The parties agree and understand that it is a material consideration to Fountain Valley that it obtain usable MWD Water Allocations. B. System Interconnect Newport Beach shall allow Fountain Valley to construct a System Interconnect to the groundwater production facility to be constructed by Newport Beach at either the Dolphin Avenue site or the Tamura School site. The System Interconnect shall be designed to permit Fountain Valley to access water produced by Newport Beach wells in the event of an emergency which disrupts Fountain Valley's water service. The Interconnect shall be designed and constructed at Fountain Valley's sole expense. Newport Beach shall cooperate with Fountain Valley relative to the design and construction of the System Interconnect and any related equipment necessary to Fountain Valley's use of the system in the event of an emergency. Water from the Newport Beach system will not be disinfected and it will be Fountain Valley's responsibility to provide the appropriate level of disinfection for any water taken from the Newport Beach Groundwater Development Project. The Public Works Directors from Newport Beach and Fountain Valley shall adopt a standard operating procedure that will control the use of the System Interconnect in case of an emergency. 2.7 Notices Except as otherwise provided in this Agreement, all notices, payments, transmittals of documentation and other writings required or permitted to be delivered or transmitted to any of the parties under this Agreement 11 shall be personally served or deposited in a United States mail depository, first class postage prepaid, and addressed as follows: If to Fountain Valley City of Fountain Valley 10200 Slater Avenue Fountain Valley, California 92708 Attention: Public Works Director If to Newport Beach City of Newport Beach 3300 Newport Boulevard Post Office Box 1768 Newport Beach, California 92658-8915 Attention: Public Works Director or such other address or person as any party may direct to the other in writing. Except where service is by personal delivery or by registered or certified mail, return receipt requested, service of any instrument or writing shall be deemed completed forty-eight (48) hours after deposited in a United States mail depository. Notices served by personal delivery shall be deemed served when delivered; notices served by registered or certified mail, return receipt requested, shall be deemed served when deposited in the mail. 2.8 Indemnification A. Newport Beach shall indemnify and hold Fountain Valley and its officers, Council Members, employees, and representatives harmless from and against any injury to any person, or any damage to property caused by the negligent performance of this Agreement by Newport Beach, its officers, Council Members, employees, agents, representatives and contractors in connection with the performance of this Agreement, or caused by the use of the property described in the Easement Area. B. Fountain Valley shall indemnify and hold Newport Beach and its officers, Council Members, employees, and representatives harmless from and against any damage to Newport Beach's improvements caused by the negligent or willful act of any officer, Council Member, employee, agent, representative or contractor of Fountain Valley. 2.9 Partial Invalidity If any provision of this Agreement is held by a Court of competent jurisdiction to be invalid, void, or unenforceable, or if any provision of this Agreement is rendered invalid, void or unenforceable as a result of any state or federal legislation enacted subsequent to the effective date of this Agreement, the remaining provisions will nevertheless continue in full force and effect without being impaired or invalidated in any way. 12 • • 3.0 Integration, Construction and Amendment This Agreement represents the entire understanding of Fountain Valley and Newport Beach as to those matters contained herein, and no prior oral or written understanding shall be of any force or effect with respect to those matters covered by this Agreement. This Agreement shall be governed by the laws of the State of California and construed as if drafted by both Fountain Valley and Newport Beach. This Agreement may not be modified, altered or amended except in writing signed by Fountain Valley and Newport Beach. 3.1 Attorney Fees If either party is required to initiate litigation to enforce the terms and conditions of this Agreement or to seek damages by reason of the breach of the terms and conditions of this Agreement, the prevailing party shall be entitled to recover reasonable attorney fees and costs incurred. 3.2 Successors This Agreement, and all of the terms, conditions and provisions herein, shall inure to the benefit of, and be binding upon, Fountain Valley and Newport Beach, and their respective successors and assigns. 3.3 Authorization to Enter Agreement Fountain Valley represents that it is authorized by law to enter into this Agreement and that this Agreement has been authorized by its City Council. 3.4 Assignment Newport Beach shall not assign, sublet or otherwise transfer this Agreement or any right or interest in said premises without the express written consent of Fountain Valley. 3.5 Right of Access Fountain Valley shall at all times have a right of access during business hours to inspect said premises following reasonable written notice to Newport Beach. 3.6 Possessory Interest Newport Beach acknowledges that if the possessory interest granted Newport Beach herein causes a tax upon that possessory interest, that Newport Beach shall pay said tax promptly when due and will keep Fountain Valley indemnified therefrom. 13 • • IN WITNESS WHEREOF, the parties have executed this Agreement on the date first written above: APPROVED AS TO FORM CITY OF FOUNTAIN VALLEY a Municipal Corporation By: City Attorney ATTEST By: II b �� _��& ,� )-km) J.kfalazzo City Clerk By: Georg Scott Mayor APPROVED AS TO FORM CITY OF NEWPORT BEACH a Municipal Corporation / X a ,/ By. z e c --�.tc' By: City Attorney ATTESTES {9ela B,in,rc. in . 4444; LaVonne Harkless City Clerk 14 John Hedges Mayor • • EXHIBIT "A" AN EASEMENT FOR PUBLIC UTILITY PURPOSES FOR THE INSTALLATION AND MAINTENANCE OF A WELL AND APPURTENANT FACILITIES IN THE CITY OF FOUNTAIN VALLEY, COUNTY OF ORANGE, STATE OF CALIFORNIA, OVER, UNDER, AND ACROSS THE FOLLOWING DESCRIBED PARCEL OF LAND: A PORTION OF PARCEL 2 OF THAT CERTAIN RELINQUISHMENT OF HIGHWAY RIGHT-OF-WAY TO THE CITY OF FOUNTAIN VALLEY RECORDED JULY 3, 1968 IN BOOK 8649, PAGE 878 OF OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID ORANGE COUNTY, SAID PARCEL ALSO BEING A PORTION OF THE NORTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 30, TOWNSHIP 5 SOUTH, RANGE 10 WEST, 1N THE RANCHO LAS BOLSAS, AS SHOWN ON A MAP FILED IN BOOK 51, PAGE 12 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID ORANGE COUNTY, DESCRIBED AS FOLLOWS: BEGINNING (P.O.B.) AT THE NORTHWEST CORNER OF THE NORTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 30, SAID POINT BEING THE INTERSECTION OF BUSHARD STREET AND SLATER AVENUE.; THENCE, EASTERLY ALONG THE NORTHERLY LINE OF SAID NORTHWEST QUARTER OF THE SOUTHEAST QUARTER AND ALONG THE CENTERLINE OF SAID SLATER AVENUE, NORTH 89°06'46" EAST, A DISTANCE OF 396.20 FEET TO THE WESTERLY LINE OF SAID PARCEL 2; THENCE, CONTINUING EASTERLY ALONG SAID NORTHERLY LINE, NORTH 89°06'46" EAST, A DISTANCE OF 411.75 FEET; THENCE, SOUTH 0°53'14" EAST, A DISTANCE OF 36.42 FEET TO THE DUE POINT OF BEGINNING (T.P.O.B l; THENCE, NORTII 89°06'46" EAST, A DISTANCE OF 180.00 FEET; THENCE, SOUTH 0°53' 14" EAST, A DISTANCE OF 63.00 FEET; THENCE, SOUTH 89°06'46" WEST, A DISTANCE OF 180.00 FEET; THENCE, NORTH 0°53' 14" WEST, A DISTANCE OF 63.00 FEET TO THE TRUE POINT OF BEGINNING. SUBJECT TO COVENANTS, CONDITIONS, AND EASEMENTS OF RECORD, IF ANY. MORE PARTICULARLY SHOWN ON EXHIBIT "B" ATTACHED HERETO AND MADE A PART HEREOF. PREPARED BY: S—% DEREK J. MCGI GOR L.S. NO. 6496 ---1, LAND ,c., \, , .3. O No.6496 i. Exp. 6/30/23 SHEET 1 OF 2 SHEETS OF CAU ...ii 425-1 15 1— Lu Lu DE Ln co EXHIBIT , NW COR NW 1/4 SE 1/4 SEC 30 Q SLATER AVENUE S 89'106146"W 396.20' iv 4., 3.McG;9�Fio 0 NO. 6496 n Exp. 6130/99 OF CALIF' PREPARED BY: / '- 5 - 9 (o Derek J. McGregor L. No. 6496 „ B„ 807.95' 41 .75 S 0'53114"E 36.42' iN 0'53'14"W 63.00' T.P.O.B. S 89'06136" W 180.00' . S O'5314"E 63.00' 0 100 SCALE: I' - 100 DM° Engineering Civil • Surveying Planning 16 7echnolop Drhe,• SiILe 100 Irvine, CA 92710 (714) 763-9393 FAX (714) 753-9322 DOLPHIN AVENUE WELL SITE SHEET 2 OF 2 SHEETS LEASE AGREEMENT DATE: 6-14-95 ORAWLNG FILE LOCATION: C:\ACAD\.. 8S\425\/05ESul1.DWG CITY OF NEWPORT BEACH GROUNDWATER DEVELOPMENT PROJECT JN 92-425-1 16 EXHIBIT C MITIGATION CONSIDERATION FORMULA Based on the predicted theoretical drawdowns obtained from the analytical modeling, estimated additional energy costs were calculated for each Fountain Valley well due to pumping of the proposed Newport Beach wells. These costs were calculated using the following formula: $/acre feet — (1.032)(H)(P) E where: H = theoretical drawdown (feet) due to proposed Newport Beach wells P = power cost ($0.11 per kw -hour, reported by Fountain Valley staff) E = plant efficiency (65% reported by Fountain Valley staff) assuming: 1. Maximum drawdown based on 300 days of continuous pumping at 9,600 gpm by Newport Beach wells 2. Transmissivity = 450,000 gpd/ft 3. Storativity = 0.0003 The $/acre feet values were calculated for each Fountain Valley well and then multiplied by its three year average annual production (1992-95) to obtain a maximum average annual pumping cost due to drawdown from the Newport Beach wells, as summarized in Table 5. The resultant total additional annual pumping cost for all Fountain Valley wells of $23,304 is believed to be a maximum amount based on the conservative estimates of drawdown, power costs, plant efficiency, and the assumptions listed above. 17