HomeMy WebLinkAboutC-5709(A) - Notice of Assignment for Pelican HillSince 1364
February 24, 2015
David Kiff
City Manager's Office
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
Re: Notice of Assignment — Pelican Hill
Dear Mr. Kiff:
The Irvine Company LLC ("TIC") owns and operates the Pelican Hill Resort and Golf
Club, located at Pelican Point Drive and Cameo Shores Road, Newport Beach,
California, 92657 ("Property"). On March 1, 2015, TIC intends to transfer the Property to
its affiliate, PH Finance LLC, a Delaware limited liability company. As TIC will no longer
be the entity that owns the fee interest in the Property, TIC will need to assign, and PH
Finance LLC will assume, TIC's rights and responsibilities under the following
agreements and plans: (1) Agreement Re: Low -Flow Diversion System at Pelican Hill
Golf Club, dated May 4, 2007 ("Diversion Agreement"); (2) Memorandum of
Understanding Between the City of Newport Beach and The Irvine Company, LLC for
Irvine Coast Marine Life Refuge Area of Special Biological Significance Exception
Process, dated January 13, 2012 ("MOU"); and (3) Water Quality Management Plan for
the Pelican Hill Resort, approved August 31, 2005 ("WQMP"). This letter provides the
City with notice of the pending assignment and assumption of these agreements and
plans effective March 1, 2015 ("Effective Date").
In accordance with Section 14 of the Diversion Agreement, attached hereto as Exhibit A,
TIC will assign its rights and obligations under the Diversion Agreement to PH Finance
LLC as Successor Owner. PH Finance LLC as Successor Owner agrees to be fully
bound by the terms and provisions of the Diversion Agreement.
In accordance with Section 8 of the MOU, attached hereto as Exhibit B, TIC will assign
all right, title or interest in or to this MOU to PH Finance LLC as Successor Owner, an
entity which is under common control with TIC.
In accordance with the WQMP, the cover page and Owner's Certification of which is
attached hereto as Exhibit C, once TIC transfers its interest in the Property to PH
Finance LLC as Successor Owner, PH Finance LLC as Successor Owner shall bear the
responsibility to implement and amend the WQMP.
550 Newport Center Drive, Newport Beach, California 92660-7011 949.720.2000
Mr. David Kiff
February 24, 2015
Page 2
After the Effective Date, any notice required under the Diversion Agreement, the MOU, or the
WQMP should be to Dean S. Kirk at PH Finance LLC:
PH Finance LLC
550 Newport Center Drive
Newport Beach, CA 92660
Phone: 949.720.2878
Fax: 949.720.2448
Email: dkirkCcirvinecompanv.com
Please contact us should you have any questions.
THE IRVINE COMPANY LLC
By: .RAwx. S • ` 0C
Name: Dear. S. Kir4C.
Title: V . P. nvtror•n,e)r Soh.\ A-Cairs
PH FINANCE LLC
By: sum- . 4fNit
Name: De -ay, S • k.rk-
Title: V.P. Envlronv,ne,rc\at AVAckirs
cc: Stephen Badum
David Webb
Robert Stein
Dan Miller
Steve Friedlander
EXHIBIT A
Agreement Re: Low -Flow Diversion System at Pelican Hill Golf Club
0
Agreement Re: Low -Flow Diversion System
at Pelican Hill Golf Club
This Agreement Re: Low -Flow Diversion System at Pelican Hill Golf Club
("Agreement") is made and entered into as of , 2007 (the "Effective Date"), by and
between the City of Newport Beach, California, a municipal corporation organized and existing
under and by virtue of its Charter and the Constitution and the laws of the State of California
("City"), and The Irvine Company LLC, a Delaware limited liability company ("TIC'). City and
TIC are sometimes referred to herein individually as a "Party" and collectively as the "Parties."
RECITALS
A. WHEREAS, TIC is the owner of the Pelican Hill Golf Club (the "Golf Club") in
Newport Beach, California. A portion of one of the golf courses operated by the Golf Club (the
"Golf Course') surrounds the residential community known as. Pelican Point ("Pelican Point").
The homeowners association for Pelican Point is known as the Pelican Point Community
Association (the "PPCA"). The PPCA is the owner of the storm drain system within Pelican
Point that discharges to the beach adjacent to Pelican Point. Pelican Point and the Golf Course
are depicted on Exhibit A, attached hereto.
B. WHEREAS, in order to enhance maintenance of water quality management
practices for Pelican Point, the Golf Club and a portion of the Cameo Highlands residential
community, as well as portions of Pacific Coast Highway and adjacent City'streets (collectively,
the "Drainage Sources") that drain urban runoff onto the Golf Course, TIC desires to design and
construct a low -flow diversion system. ("Project Improvements") within the Golf Course in the
approximate location depicted on Exhibit A. TIC's proposed plan to design and construct the
Project Improvements is voluntary on its part and is not a condition to any of TIC's developments
in Newport Beach.
C. The Project Improvements are intended to divert dry weather flows from the
Drainage Sources into a vault structure within the Golf Course, from which such flows will be
pumped through a new force main located within the Golf Course to an existing Irvine Ranch
Water District ("IRWD") manhole. The flows will continue through existing IRWD sewer
facilities and City's sewer facilities and pump system that routes the flows through City sewer
lines. The construction of the Project Improvements is intended to eliminate dry -weather
drainage from the existing storm drain discharge at Pelican Point and reduce impacts from such
drainage on off -shore Areas of Special Biological Significance.
D. WHEREAS, because of the benefits to be derived by. the Golf Club, the City, the
State of California, Pelican Point and surrounding communities from construction of the Project
Improvements, TIC and City desire to enter this Agreement regarding their respective obligations
with respect to implementation of the Project Improvements.
E. WHEREAS, the ultimate, long-term goal is to divert dry weather flows from the
Drainage Sources by including a diversion in a future sewer upgrade project to be constructed by
the State of. California, the City or parties other than TIC at Crystal Cove State Park, or, absent
that, to assure improved best management practices and the use of best available technology to
eliminate pollutants from dry weather flows.
30209-0078/362700.4 5/4/07
NOW, THEREFORE, in consideration of the above recitals and the mutual promises
contained herein, TIC and City hereby agree as follows:
1. Term. The term of this Agreement shall commence on the Effective Date, and,
unless otherwise terminated as provided in Sections 7 and 15 below, shall remain in
effect for so long as TIC chooses to operate the Project Improvements. Time is of the
essence in the performance of the obligations of each Party under this Agreement.
2. Description of Proiect Improvements. The Project Improvements will consist of the
vault structure, outlets, pump station, storm drain and other improvements described
in more detail on Exhibit B attached to this Agreement. The maximum flow of water
diverted pursuant to this Agreement shall not exceed fifteen (15) gallons per minute
at any time.
3. Project Location: Permits. The Project Improvements will be located within the Golf
Course property owned by TIC. TIC shall be responsible for obtaining all permits for
construction from City prior to commencement of construction. City's approval of
TIC's permit application(s) for the Project Improvements shall not be unreasonably
withheld or delayed.
4. Design of Proiect Improvements. TIC shall, at its sole cost and expense, cause the
design of the Project Improvements. The design shall include, but not be limited to, a
shut off system satisfactory to City that allows the City to stop diversion of flow at
any time. City shall notify TIC if City stops diversion of flow at any time within
twenty-four (24) hours of such stoppage. The plans for such improvements will be
subject to the approval of City's Public Works Department (the approved plans are
hereinafter referred to as the "Approved Plans"). City's approval of any plan
submittals from TIC regarding the Project Improvements shall not be unreasonably
withheld or delayed.
5. Construction of Project Improvements. TIC shall, at its sole cost and expense, cause
the construction of the Project Improvements in accordance with the Approved Plans.
If, prior to construction of such improvements, TIC desires to materially change the
design of the improvements from that shown on the Approved Plans, such changes
must be approved by City in advance of construction thereof. After completion of
such improvements, TIC shall not materially alter the constructed improvements
from their original condition as installed per the Approved Plans without the prior
written approval of City. City's approval of any proposed alterations to the
improvements shall not be unreasonably withheld or delayed.
6. IRWD Approval. TIC shall be responsible for obtaining IRWD approval, if IRWD's
approval is needed, for the diversion of flow through IRWD's sewer lines and all
costs and expense associated therewith.
7. Operation and Maintenance of Completed Improvements. TIC shall be responsible
for all costs for the operation and maintenance of the completed Project
Improvements within the Golf Course. City and TIC will cooperate with each other
to establish, prior to the completion of construction of the Project Improvements,
operational procedures in compliance with Orange County Sanitation District #5
("OCSD") requirements for the completed Project Improvements. Among other
things, the operational procedures shall require TIC to comply with any rule or
30209-0078/362700.4 5/4/07
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regulation related to the operation of the Project Improvements; to stop diverting
water if the flow being diverted exceeds fifteen (15) gallons per minute or is
comprised, in whole or in part, of non -dry weather flow or pollutants that could cause
treatment and disposal problems (as determined by any regulatory agency) at the
OCSD treatment plant ("Pollutants of Concern"); and to allow City to stop
temporarily the diversion of water if City determines that stopping the flow is
necessary due to downstream capacity or Pollutants of Concern problems or to allow
maintenance and repairs of the downstream City sewer system. Further, in the event
that OCSD notifies City that the capacity of the OCSD treatment facilities is
insufficient to handle the flows or that OCSD is being adversely affected by
Pollutants of Concern from the Drainage Sources, or if OCSD elects to impose
charges for acceptance of flows into the OCSD facilities, then City and TIC shall
meet to determine alternate methods of handling the excess flows or cost-effective
changes to the Project Improvements so that the OCSD sewer capacity is not
exceeded or Pollutants of Concern problems aer addressed or whether the payment of
charges to OCSD is acceptable. If the Parties are unable to determine alternative
methods or changes mutually acceptable to the Parties, or if either Party determines
that the charges imposed by OCSD are unacceptable, then this Agreement may be
terminated at the option of TIC or City by providing thirty (30) days to the other
Party.
8. Utilities. TIC shall be responsible for all utility costs and expenses related to the
Project Improvements. City shall only be responsible for any utility costs and
expenses associated with City's Cameo Shores Pump Station. City shall cooperate
with TIC and the applicable utility companies in allowing electrical and telephone
connections in the Cameo Shores Road right-of-way.
9. City as Project Sponsor. City agrees to act as the sponsor of the Project
Improvements before any wastewater treatment agency with jurisdiction over the
Project Improvements.
10. City Coordination with Neighboring Communities. City shall use best efforts to
institute education programs, mailers and otherwise coordinate with homeowner
associations for Cameo Highlands and Pelican Point to minimize drainage from such
communities into the Project Improvements. .At a minimum, City will provide a
mailer to the property management companies of such communities to be distributed
annually to residents of each community regarding proper irrigation practices and
control of overwatering in connection with their landscape maintenance.
11. Project Coordination, City designates Robert Stein, telephone (949) 644-3322, fax
(949) 644-3308, to act as its representative with respect to all matters under this
Agreement. TIC designates Scot Scialpi, telephone (949) 720-2817, fax (949) 720-
2448, to act as its representative. Either Party may change its designated
representative by providing written notice of same to the other Party.
12. Indemnification. TIC shall defend, indemnify and hold harmless City, its City
Council, boards and commissions, officers and employees from and against any and
all loss, damage, liability, claims, suits, costs and expenses whatsoever, including
reasonable attorneys' fees when outside attomeys are used (collectively, the
"Claims") arising from or related to (a) TIC's design, installation, operation and
maintenance of the Project Improvements, and (b) TIC's performance of its
30209-0078/362700.4 5/4/07
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obligations hereunder; provided, however, that TIC's obligations under this Section
shall not apply to the extent that any Claim is caused by the negligence or willful
misconduct of City or its contractors.
13. Notices. All notices required or permitted under this Agreement shall be in writing
and shall be deemed to have been duly given upon delivery, if personally delivered,
or within 48 hours of deposit in the United States mail, if sent by prepaid first-class
mail, addressed as follows:
If to City: City of Newport Beach
Public Works Department
3300 Newport Boulevard (P.O. Box 1768)
Newport Beach, CA 92658-8915
Attn: Robert Stein
If to TIC: The Irvine Company LLC
550 Newport Center Drive
Newport Beach, CA 92660
Attn: Eric Prevette
Either Party may change its address for notice by providing written notice of such
changed address to the other.
14. Assignment. TIC may assign its rights and obligations under this Agreement to a
subsequent owner of the property on which the Project Improvements are located,
any affiliate of TIC (that is, any entity controlling, controlled by or under common
control of TIC), or any person or entity that has, in City's reasonable opinion, the
financial and administrative capacity and is otherwise capable of performing TIC's
construction and maintenance obligations hereunder (each, a "Successor"). Any
such assignment must be in writing, must contain the Successor's agreement to be
fully bound by the terms and provisions of this Agreement, and a copy of such
assignment must be delivered to City. After the effective date of any such
assignment by TIC, TIC shall have no further rights or obligations hereunder.
15. Termination.
A. In the event TIC fails or refuses to timely perform any of its obligations under
this Agreement in the manner required or if TIC violates any provisions of this
Agreement, TIC shall be deemed in default. If such default is not cured within a
period of ten (10) working days, or if more than ten (10) working days are reasonably
required to cure the default and TIC fails to commence to cure its default or provide
City with adequate assurance of due performance within ten (10) working days after
TIC receives written notice of default from City, City may terminate the Agreement
forthwith by giving written notice. City may, in addition to the other remedies
provided in this or authorized by law, terminate this agreement by giving written
notice of termination.
B. This Agreement may be terminated by either Party upon thirty (30) days prior
written notice as provided in Section 7 above.
30209-0078/362700.4 5/4/07
4
C. This Agreement shall automatically terminate if IRWD refuses to allow the
diversion of water through IRWD sewer lines, if OCSD refuses to accept the flows to
be diverted under this Agreement; or if any rule, regulation, law, statute or ordinance
prohibits the diversion contemplated by this Agreement.
16. Costs and Expenses. TIC shall be responsible for any and all costs and expenses that
are related in any way to the Project Improvements not expressly attributable to City.
17. Authority. The Parties to this Agreement represent and warrant this Agreement has
been duly authorized and executed and constitutes the legally binding obligation of
their respective organization or entity, enforceable in accordance with its terms.
18. Amendment. This Agreement may be amended only by a written instrument
approved and executed by the Parties.
19. Controlling Law and Venue. The laws of the State of California shall govern this
Agreement, and any action brought relating to this Agreement shall be adjudicated in
a court of competent jurisdiction in the County of Orange.
20. Successors. This Agreement shall be binding upon and inure to the benefit of TIC
and City and the successors and assigns of each Party.
21. Entire Agreement. This Agreement, together with the Exhibits attached hereto,
constitutes the entire agreement between City and TIC pertaining to the subject
matter hereof, and all prior and contemporaneous agreements, representations,
negotiations and understandings of the Parties, whether written or oral, are hereby
superseded and merged herein.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and
year first above written.
"TIC"
The Irvine Company LLC
a Delaware limit d 1'- • ity company
By:
By:
L. K. ' Prevette
Executive Vice President,
Resort Properties
I ��
Mary K. Wl stbrook
Assistant Secretary
30209-0078/362700.4 5/4/07
5
"City"
City of Newport Beach,
a California municipal corporation APPROVED A$ TO FORM:
By:
Homer Bludau
City Manager
ATTEST:
LaVonne Harkless
City Clerk
30209-0078/362700.4 514/07
6
By:
( City Attorney
I
_—a—_
Exhibit A
Depiction of Pelican Point, the Golf Course, and Protect Location
PELICAN POINT DIVERSION SYSTEM EXHIBIT
LEGEND
IWJER$WED MDR(
EXISTING SEWfR
PROPOSED FORCE MY
PROPOSED AL7ERAL4Ir FORE MAW
• PROPOSED PUMP STATION
4
f
�a-� �81`SCI E fACUTC1V
•.,.r i
^ + PACFICOCEAN
•
30209-0078/362700.4 5/4/07
STANUC CONSULTING INC.
19 if:3 MIRTH Coille
Wiled. Cs 4:hla
5talltec 90.921.6G:13 Mutual
bl. 204 55750a I DATFt Z -26-O7
Exhibit B
Description of Proiect Improvements
The lift station will have the following equipment and appurtenances:
a. Pre -cast concrete wet well 6ft diameter, 18 ft deep with a concrete top and 3.5'
x 4.5' aluminum access hatch door.
b. Duplex submersible pumps with capacity and total dynamic head 15 gpm at
68 ft each. The pumps will be equipped with 230 volt (single phase) 1.5 HP
motor with 3500 RPM speed each.
c. Pump discharge piping and force main, 1%:" size. The piping will be PVC
pipe from the pumps through flow meter and schedule 40 PVC pipe from the
meter box to the connection at the City of Newport Beach sewer manhole near
the cul-de-sac of Pelican Point Drive
d. Alternate 1 Y2" line from the pump station to the Crystal Cove State Park side
of the Golf Course
e. Check valve and isolation valves on the pump discharge riser in the wet well.
f. Package pump control system including pump control panel, water level float
switches.
g. Magnetic flow meter in the force main near the wet well.
h. Variable frequency drives (VFD), 240V (single phase), 2 HP, one for each
pump. The VFD will be installed at the pump control panel.
i. A pump shutoff system accessible to City on a 24-hour basis.
j. Power Service meter cabinet located in Cameo Shores Road.
k. Power cable and telephone cables in conduits will be connected from the
points of connection in Cameo Shores Road through the service meter cabinet
to the pump control panel. The conduits will be installed along the force main
in the common trench.
30209-0078/362700.4 5/4/07
8
EXHIBIT B
Memorandum of Understanding
Between the City of Newport Beach and the Irvine Company, LLC
for Irvine Coast Marine Life Refuge Area of Special Biological Significance Exception Process
TO:
FROM:
CITY OF
NEWPORT BEACH
City Council Staff Report Agenda Item No.
January 24, 2012
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Public Works Department
Stephen G. Badum, Public Works Director
949-644-3311, sbadum@newportbeachca.gov
PREPARED BY: Bob Stein, Assistant City Engineer
rstein@newportbeachca.gov
APPROVED:
TITLE: Memorandum of Understanding to Accommodate The Irvine
Company under the City Exception Process to the California Ocean
Plan for Discharges to Areas of Special Biological Significance
ABSTRACT:
It is expected that the State Water Resource Control Board (State Board) will grant the
City an Exception to the California Ocean Plan to allow existing storm water discharge
into Areas of Special Biological Significance (ASBS). The Exemption will include
conditions (called "Special Protections") that the City will be required to fulfill. The Irvine
Company (TIC) has requested that it be covered under the City's Exemption.
RECOMMENDATION:
Approve and execute the Memorandum of Understanding .(MOU) with TIC to include
TIC under an Exception to the California Ocean Plan for selected discharges into ASBS
expected to be granted to the City by the State Board.
FUNDING REQUIREMENTS:
As proposed by the State Board, the City's annual costs for routine monitoring as
required by the Exemption are estimated at $20,000 per year. If the MOU with TIC is
approved, the annual cost would increase City costs about $10,000 per year.
The current adopted budget includes sufficient funding for this activity. It will be
expensed to the NPDES Administration account in the Public Works Department, 5060-
8080.
Memorandum of Understanding to Accommodate The Irvine Company under the City Exception Process
to the California Ocean Plan for Discharges to Areas of Special Biological Significance
January 24, 2012
Page 2
DISCUSSION:
The ASBS support many of the beneficial uses outlined in the California Ocean Plan of
which the most relevant relate to recreational uses of the beach and support of the
special habitat within the ASBS. In 2005, the State Board advised the City that any
direct storm drain discharges into the Newport ASBS (see attached location map) along
Newport Coast that contained any constituents of anthropomorphic origin would be in
violation of the California Ocean Plan. There are 23 existing storm drain discharge
points into Newport ASBS. Three of the storm drains are City drains (18 -inch diameter)
that capture runoff from the Shorecliffs and Cameo Shores communities. The remaining
drains are small (less that 6 -inch diameter) and drain residential properties adjacent to
the beach.
TIC and the Pelican Point Community Association each received an identical letter in
2005 from the State Board prohibiting discharges from the Pelican Point watershed into
the Irvine ASBS. The small Pelican Point watershed includes the Pelican Point
community, portions of the Pelican Hill Golf Course, and portions of Cameo Highlands
and adjacent Coast Highway. TIC and the Pelican Point Community Association were
the only non-governmental agencies to receive these notifications. It is unclear why they
were singled out. In 2006, the City executed an agreement with the Pelican Point
Community Association to include it in the City's ASBS protection program.
Over the past six years, the City, with assistance from TIC, has attempted to work with
the State Board to define appropriate Special Protections for the Exception to allow for
storm water discharge from these drains. During this period, the City hired a consultant
to monitor flow and water quality from these storm drains as well as water quality within
the near shore receiving waters. TIC has also been monitoring flow and water quality
emanating from the Pelican Point watershed and within the near shore receiving waters.
Additionally, TIC constructed a pump station to capture all dry weather flows from this
watershed and divert these -flows to the City's sanitary sewer system in Cameo Shores.
These flows are then pumped through a series of pump stations to the Orange County
Sanitation District plant in Huntington Beach. TIC operates and maintains the Pelican
Point pump station.
It is expected that once the Exception is approved, there will be requirements for annual
monitoring similar to what is currently being performed by the City and TIC. In asking to
be covered under the City's Exemption, TIC has requested the City relieve TIC of future
routine monitoring responsibilities and to incorporate the monitoring of the Pelican Point
watershed into the City's monitoring of drains near Buck Gully and Morning Canyon.
While adding to the City's monitoring costs, from a practical point of view it makes
sense for a single consultant to perform the monitoring. The monitoring is a benefit not
only to TIC, but to property owners in the Pelican Point and Cameo Highland
communities. By assuming responsibility for the routine monitoring, the City partially
offsets costs incurred by TIC for construction, operation and maintenance of the Pelican
2
Memorandum of Understanding to Accommodate The Irvine Company under the City Exception Process
to the California Ocean Plan for Discharges to Areas of Special Biological Significance
January 24, 2012
Page 3
Point pump station. As outlined in the MOU, TIC would still be responsible for
participating in future projects needed to reduce pollutant Toads entering the ASBS.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California
Environmental Quality Act ("CEQA") pursuant to Section 15306 (Information Collection)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
has no potential to have a significant effect on the environment.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
eidum
r s Director
Attachments: A. Proposed MOU between the City and The Irvine Company
B. MOU between the City and the Pelican Point Community
Association (2006)
ATTACHMENT A
MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF NEWPORT BEACH
AND THE IRVINE COMPANY, LLC FOR
IRVINE COAST MARINE LIFE REFUGE AREA OF SPECIAL BIOLOGICAL
SIGNIFICANCE EXCEPTION PROCESS
THIS MEMORANDUM OF UNDERSTANDING ("MOU") is made and entered into
as of , 2012 ("Effective Date") by and between the City of Newport Beach,
a California municipal corporation ("City") and The Irvine Company, LLC, a Delaware
limited liability company ("TIC").
RECITALS
. WHEREAS, the State Water Resources Control Board ("Board") has begun an
active campaign to issue exceptions to Section III.E.1 of the Ocean Plan that requires
that: 'Waste shall not be discharged to areas designated as being of special biological
significance" ("ASBS");
WHEREAS, the City is seeking an exception to allow the City and those entities
operating under the City's exception to discharge runoff into the ASBS ("Exception
Process");
WHEREAS, TIC received a letter dated October 18, 2004 from the Board
informing TIC, under the Ocean Plan, that it is not authorized to discharge any waste
from its storm drain system to the ASBS, and that TIC may, if it believes its discharges
will not compromise protection of ocean waters for beneficial uses, request coverage
under the exception process to the Ocean Plan in order to continue to discharge dry
and wet weather runoff into ASBS No. 33 (the Irvine Coast Marine Life Refuge Area of
Special Biological Significance ). A copy of this letter is attached hereto as Exhibit "A"
and incorporated herein by reference.
WHEREAS, it is anticipated that the special protections specified under the
Exception Process will require annual inspections and flow and constituent monitoring
at the end of pipe discharging directly to ASBS No. 32 (Newport ASBS) and in the
Pelican Point Subwatershed. (defined below) portion of ASBS No. 33 (collectively,
"Newport Beach ASBS") receiving waters during the dry and rainy season. A map
depicting the Newport Beach ASBS is attached hereto as Exhibit "B" and incorporated
herein by reference;
WHEREAS, it is anticipated that the Exception Process will require preparation of
a Storm Water Pollution Prevention Plan ("SWPPP") that will define steps to be
implemented to prevent anthropogenic impacts from wet weather flows to the Newport
Beach ASBS;
WHEREAS, City has provided funding; conducted flow, water quality, toxicity and
bioaccumulation testing; conducted public use studies; and investigated tidal and
Iongshore current transport mechanisms that pertains to the Newport Beach ASBS;
WHEREAS, City has participated in funding regional ocean monitoring programs
to characterize benthic community health of intertidal and subtidal marine life species
within the Newport Beach ASBS;
WHEREAS, City has participated in regular coordination and public meetings
with the Board, as well as coordination meetings with other agencies in Southern
California with MLR ASBS concerns;
WHEREAS, City is implementing projects to reduce impacts to the Newport
Beach ASBS;
WHEREAS, TIC has constructed a facility to capture dry weather flow within the
Pelican Point subwatershed, which includes City, Caltrans, Pelican Point Homeowners
Ownership Association and TIC owned property (collectively, "Pelican Point
Subwatershed"), and pumps these flows into the City's sanitary sewer. The Pelican
Point Subwatershed is depicted in Exhibit "B";
WHEREAS, on March 28, 2006, City agreed to submit relevant data to the Board
relating to the Newport Beach ASBS and authorized the Mayor to write a letter to the
Board stating that the City is interested in working with the Board's Exception Process
for the Newport Beach ASBS provided that the City's participation leads to an outcome
within the Exception Process that is reasonable and attainable ("City's Response");
WHEREAS, TIC desires to be included under the City's coverage under the
Exception Process contemplated by the City's Response;
NOW, THEREFORE, IT IS AGREED by and between the undersigned parties as
follows:
1. TERM
The term of this MOU shall commence on the Effective Date and shall continue until the
expiration of the Exception Process, unless terminated earlier as set forth herein.
2. INCORPORATION OF RECITALS
The above Recitals are hereby incorporated by reference into the operative part of this
MOU.
3. SCOPE OF MOU
3.1 City will include TIC in its coverage under the Exception Process as
contemplated in the City's Response and represent TIC at coordination and public
meetings with regard to the Newport Beach ASBS.
3.2 City shall use its best efforts to work with TIC to implement measures to
reduce runoff and subsurface inflow, if any, emanating from TIC owned lands within the
Pelican Point Subwatershed.
Page 2 of 7
3.3 The parties agree that the City, in its sole and absolute discretion, shall
have the right to take action to withdraw the City from the Board's Exception Process at
any time. If the City elects to withdraw from the Board's Exception Process, the parties
agree that TIC may continue with the Board's Exception Process in its own name to the
extent allowed by the Board or withdraw from the Board's Exception Process. The
parties hereto also agree that, at any time (including after granting of the Exception
Process), TIC shall have the right to withdraw TIC from the Board's Exception Process
or to withdraw from the City's coverage under the Board Exception Process and
terminate this MOU pursuant to Section 6.1.
4. COOPERATION
4.1 TIC agrees that, subject to the withdrawal provision of Section 3.3, upon
granting of the Exception Process it will comply with all applicable mandates, conditions
and obligations of the Board's ASBS program including, but not limited to, the Exception
Process for the Newport Beach ASBS.
4.2 TIC shall cooperate with City staff to initiate and complete requirements of
the Exception Process including specific measures to reduce any significant dry
weather runoff and subsurface inflow flowing to the Newport Beach ASBS from TIC
owned lands within the Pelican Point Subwatershed and institute measures to reduce
the amount of materials, if any, defined by the Board as harmful to marine life, entering
the the Newport Beach ASBS from TIC owned lands within the Pelican Point
Subwatershed, in each case TIC's costs to be borne by TIC.
4.3 TIC shall provide reasonable and periodic access to TIC owned lands to
allow City staff and consultants to perform monitoring functions as needed to meet the
requirements of the Board.
5. COSTS
5.1 City will fund water quality monitoring, ecological studies and preparation
of the SWPPP as required to implement the Exception Process.
5.2 TIC shall be responsible for expenses associated with monitoring or
reducing dry -weather flows and harmful materials, if any, from TIC owned lands within
the Pelican Point Subwatershed and expenses associated with maintaining the Pelican
Point dry -weather flow diversion pump station to the extent that TIC elects to continue to
operate the pump station which it operates on a voluntary basis. TIC shall reimburse
City for any and all expenses attributable to TIC within thirty (30) days of receipt of
invoice from the City. Nothing in this MOU shall obligate TIC to continue to maintain or
operate the Pelican Point dry -weather flow diversion pump station or to maintain the
current use of or to not modify the current use of TIC owned land within the Pelican
Point Subwatershed.
5.3 For all issues involving mutual costs or TIC costs, City will obtain written
concurrence from TIC prior to initiating any non -emergency services or work, including,
but not limited to, studies or projects, for which the City will seek to recover costs and
Page 3 of 7 •
expenses from TIC. If TIC fails to give its written concurrence for a cost that the City
deems necessary City may immediately terminate this MOU. TIC will pay all costs
attributable to it under this MOU, within thirty (30) days of receipt of invoice from City,
including all costs incurred prior to termination.
6. TERMINATION
6.1 This MOU may be terminated by the City or TIC on not less than ten (10)
calendar days prior written notice to the other party if (i) the City or TIC elects to
withdraw from the Board Exception Process or the City's coverage under the Board
Exception Process pursuant to Section 3.3 hereof; (ii) the City or TIC determines, in its
sole and absolute discretion, that the other party is not fulfilling its obligations under this
MOU; or (iii) TIC elects to stop maintaining and operating the Pelican Point dry -weather
flow diversion pump, station. Upon any termination of this MOU pursuant to this Section
6.1, each party shall be responsible for amounts then owed under the MOU and
subsequently the parties shall have no further obligations under this MOU.
Notwithstanding the termination provisions provided above, the City may terminate this
MOU at any time without cause on not less than ten (10) calendar days prior written
notice to TIC.
6.2 The granting of the Boards Exception Process is a condition subsequent
to the continued effectiveness of this MOU, the MOU shall be rendered null and void
should such an exception not be issued.
6.3 If any condition or requirement imposed by the Board or Regional Water
Quality Control Board is deemed by either party to be unreasonable and/or
unattainable, either party may terminate this MOU pursuant to Section 6.1.
6.4 TIC's coverage under the City's Exception Process shall immediately
cease with any termination of this MOU.
7. NOTICES
7.1 All notices, demands, requests or approvals to be given under the terms of
this MOU shall be given in writing, and conclusively shall be deemed served when
delivered personally, or on the third business day after the deposit thereof in the United
States mail; postage prepaid, first-class mail, addressed as hereinafter provided. All
notices, demands, requests or approvals from TIC to City shall be addressed to City at:
Attn: Stephen Badum
Public Works Department
City of Newport Beach
3300 Newport Boulevard
PO Box 1768
Newport Beach, CA 92658
Page 4 of 7
5
7.2 Ali notices, demands, requests or approvals from City to TIC shall be
addressed to TIC at:
Attention: Clay A. Halvorsen
General Counsel
The Irvine Company
550 Newport Center Drive
Newport Beach, CA 92660
8. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS
Except as specifically authorized under this MOU, neither City nor TIC shall assign its
right, title or interest in or to this MOU without the prior written consent of the other
party. Notwithstanding the foregoing, TIC, may assign all right, title or interest in or to
this MOU to an entity which controls, is controlled by or is under common control with
TIC.
9. HOLD HARMLESS
9.1 This MOU is entered into without admission of liability or waiver
whatsoever, including with regard to the law governing ASBS, MLR ASBS, or water
quality control in general, and each party reserves to itself all rights and remedies it may
hold.
9.2 To the fullest extent permitted by law, TIC shall indemnify, defend and
hold harmless City, its City Council, boards and commissions, officers, agents,
volunteers, and employees (collectively, the "Indemnified Parties") from and against any
and all claims (including, without limitation, claims for bodily injury, death or damage to
property), demands, obligations, damages, actions, causes of action, suits, losses,
judgments, fines, penalties, liabilities, costs and expenses (including, without limitation,
attorney's fees, disbursements and court costs) of every kind and nature whatsoever
(individually, a Claim; collectively, "Claims"), which may arise from or in any manner
relate (directly or indirectly) to any breach of the terms and conditions of this MOU by
TIC, any work performed or servicesprovided under this MOU by TIC including, without
limitation, defects in workmanship or materials or TIC's presence or activities conducted
under this MOU (including the negligent and/or willful acts, errors and/or omissions of
TIC, its principals, officers, agents, employees, vendors, suppliers, subconsultants,
subcontractors, anyone employed directly or indirectly by any of them or for whose acts
they may be liable or any or all of them).
9.3 Notwithstanding the foregoing, nothing herein shall be construed to
require TIC to indemnify the Indemnified Parties from any Claim arising from the sole
negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity
shall be construed as authorizing any award of attorney's fees in any action on or to
enforce the terms of this MOU. This indemnity shall apply to all claims and liability
regardless of whether any insurance policies are applicable. The policy limits do not act
as a limitation upon the amount of indemnification to be provided by TIC.
Page 5 of 7
10. CONTROLLING LAW AND VENUE
The taws of the State of California shall govern this MOU and all matters relating to it
and any action brought relating to this MOU shall be adjudicated in a court of competent
jurisdiction in the County of Orange.
11. COUNTERPARTS
This MOU may be executed in two (2) or more counterparts, each of which shall be
deemed an original and all of which together shall constitute one (1) and the same
instrument.
12. NO ATTORNEY'S FEES
In the event of any dispute or legal action arising under this MOU, the prevailing party
shall not be entitled to attorney's fees.
13. NO DAMAGES
The parties acknowledge that City and TIC would not have entered into this MOU if
either were to be liable in damages under, or with respect to, this MOU or any of the
matters referred to in this MOU. Accordingly, (I) TIC covenants on behalf of itself and its
successors and assigns, not to sue the City for damages or monetary relief for any
breach of this MOU by City or arising out of or connected with any dispute, controversy,
or'issue between City and TIC regarding this MOU or any of the matters referred to in
this MOU or any future amendments or enactments thereto, the parties agreeing that
declaratory and injunctive relief, mandate, and specific performance shall be TIC's sole
and exclusive judicial remedies and (ii) City covenants on behalf of itself and its
successors and assigns, not to sue TIC for damages or monetary relief for any breach
of this MOU by TIC or arising out of or connected with any dispute, controversy, or issue
between TIC and City regarding this MOU or any of the matters referred to in 'this MOU
or any future amendments or enactments thereto, the parties agreeing that declaratory
and injunctive relief, mandate, and specific performance shall be City's sole and
exclusive judicial remedies; provided, however, that City may seek recovery for
amounts due City from TIC pursuant to Section 5 of the MOU prior to the termination of
this MOU.
Page 6 of 7
to
IN WITNESS WHEREOF, the parties have caused this MOU to be executed on
the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: t 3 1.
By:
Aaron C. a
City Attorney
ATTEST:
Date:
CITY OF NEWPORT BEACH,
A California municipal corporation
Date:
��. By:
Mayor
THE IRVINE COMPANY, LLC,
A Delaware limited liability company
Data,• / " /) ► Z ,,
By: B
Leilani I. Brown Da lel T. Miller
City Clerk Senior Vice President
Entitlement & Public Affairs
Date: /
By:
CI - . Halvorsen
or Vice President, General Counsel
ATTACHMENTS: Exhibit "A": Letter dated October 18, 2004 from the Board to TIC
Exhibit'B": Newport Beach ASBS and Pelican Point
Subwatershed Depiction
Page 7 of 7
EXHIBIT A
State Water Resources Control Board
Terry Tamminen
Secretary for 6nvlranrnenral
Pm,enlon
October 18, 2004
Executive Office
1001 f Street • Sacrarento, California 95814 • (916) 341.5615
Mailing Addreu: P.O. Box 100 • Sacramento, California • 95812-0100
Fax (916) 341-5621 • http//www.awrcb.ca.gov
Mr. Donald Bren, Chairman
The Irvine Company
550 Newport Center Drive
Newport Beach, CA 92660
Dear Mr. Bren:
Arnold Schwatzenegger
Governor
PROHIBITION OF WASTE DISCHARGES INTO THE IRVINE COAST MARINE LIFE
REFUGE AREA OF SPECIAL BIOLOGICAL: SIGNIFICANCE
The California Ocean Plan (Ocean Plan), adopted by the State Water Resources Control Board
(State Board) and approved by the U.S. Environmental Protection Agency (U.S. EPA), lists
34 coastal marine waters which the State Board has designated as Areas of Special Biological
Significance (ASBS). ASBS are defined as "those areas designated by the State Board requiring
protection of species or biological communities to the extent that alteration of natural water
quality is undesirable."
The Ocean Plan, Section f.E.1., requires that: "Waste* shall not be discharged to areas
designated as being of special biological significance. Discharges shall be located a sufficient
distance from such designated areas to assure maintenance of natural water quality conditions in
these areas." "Waste" is defined as the "total discharge, of whatever origin." Your discharge of
storm water (dry and wet weather runoff) into the Leine Coast Marine Life Refuge Area of
Special Biological Significance is subject to the prohibition against waste discharges to an
ASBS.
The Ocean Plan, Section ULL1, allows the State Board to grant exceptions to this prohibition,
provided that the exception "will not compromise protection of ocean waters for beneficial uses,
and, [t]he public interest will be served." Prior to granting an exception, the State Board must
hold a public hearing, and there must be compliance with the California Environmental Quality
Act (CEQA). The U.S. EPA must also concur.
Information regarding the Ocean Plan, ASBS, or existing exceptions to the Ocean Plan may be
found at http://www.swrcb.ca.sov/pltspols/oplans/index.htnii
California Environmental Protection Agency
oled Paper
{12
Mr. Donald Bren - 2 - October 18, 2004
Because you do not already have an exception issued by the State Board for discharges to the
ASBS, you are required to cease discharging. You may, however, request an exception to the
prohibition if you believe your discharge will not compromise protection of ocean waters for
beneficial uses, and the public interest will be served. Please notify the State Board prior to
January 1, 2005 whether you intend to cease discharging to the specified ASBS or whether you
will seek an exception. We will discuss further steps with you subsequently. Your response
should be sent to Dominic Gregorio of the Division of Water Quality, Ocean Standards Unit,
with a copy sent to the Santa Ana Regional Water Quality Control Board.
The State Board staff will hold a workshop, at a date and location as yet to be determined, for
those parties interested in pursing an exception. The purpose of this workshop will be to provide
information on the procedures for applying for an exception and possible funding sources that
may be available to address discharges into ASBS. You will receive an invitation to this
workshop in the near future.
If you have any questions, please feel free to contact Stan Martinson, Chief, Division of Water
Quality, at (916) 341-5458 (marts@swrcb.ca.gov) or Dominic Gregorio, Division of Water
Quality, Ocean Standards Unit, at (916) 341-5488 (gregd@swrcb.ca.gov) .
Sincerely,
Original signed by Tom Howard for
Celeste Cantu
Executive Director
cc: Mr. Larry McKenney
Orange County Watershed & Coastal Resources Office
P.O. Box 4048
Santa Ana, CA 92702-4048
Mr. Dave Schaub
Department of Parks and Recreation
P.O. Box 942896
Sacramento, CA 94296-0001
Mr. Gerard J. Thibeault, Executive Officer
Santa Ana Regional Water Quality Control Board
3737 Main Street, Suite 500
Riverside, CA 92501-3339
California Environmental Protection Agency
0 Recycled Paper
�4
Mr. Donald Bren - 3 - October 18, 2004
bcc: Board members, EXEC
Tom Howard, EXEC
Sheila Vassey, OCC
Betsy Jennings, OCC
John Norton, OSI
Stan Martinson, DWQ
John Ladd, DWQ
Gerald Bowes, DWQ
Bruce Fujimoto, DWQ
Frank Palmer, DWQ
Frank Roddy, DWQ
Dominic Gregorio, DWQ
w34tandardstaneralDO—VERSION 413nailD. Brea -Irvine Co.dac
California Environmental Protection Agency
0 Recycled Paper
EXHIBIT B
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ATTACHMENT B
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THIS MEMORANDUM OF UNDERSTANDING ("MOU") is made and entered into as of the
signed by the Mayor, City of Newport Beach, is,
BY AND BETWEEN
►i`f 7
The CITY OF NEWPORT BEACH, a
Municipal Corporation hereinafter referred to as "City",
Pelican Point Community Association, a California
corporation, hereinafter rekrmd to as'Telican Point".
WHEREAS, the State Water Resources Control Board (Board) has begun an active campaign to
enforce Section II1.E.I of the Ocean Plan that requires: "Waste shall not be discharged to areas designated
as being of special biological slX0can&' (ASBS);
WHEREAS, Pelican Point received a letter on December 5, 2005 from the Board informing Pelican
Point Community Association (Pelican Point), under the Ocean Plan, is not authorized to discharge any
waste from its storm drain system to the ASBS, and that Pelican Point may, if it believes its discharges will
not compromise protection of ocean wasters for beneficial uses, request coverage under the exception
process to the Ocean Plan in order to continue to discharge dry and wet weather runoff into the Irvine Coast
Area of Special Biological Significance (ASBS) and supply specific information by May 31, 2006 to
support the Board's consideration of an exception to the Ocean Plan for discharges to the Irvine Coast
i
ASBS;
Page 1 of i
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1 WHEREAS, City has created the Newport Coast Watershed Program and has initiated a number of
2 flow, water quality, ecological, and groundwater studies as initial planning stops toward protecting the
3 watershed and adjacent coastline;
4 ' WHEREAS, City has agreed to submit relevant data to the Board relating to the Newport Beach
5 Marine Life Refuge ("MLR") ASBS and the Irvine Coast MLR ASBS and have the Mayor write a letter to
t3 the Board stating that the City is interested in working with the Board's Exception Process for the Newport
7 Beach MRL ASBS and the Irvine Coast MRL ASBS provided that the City's participation loads to an
8 outcome within the Exception Process that is reasonable and attainable ("City's Response");
9 WHEREAS, Pelican Point desires to be included in the City's Newport Coast Watershed Program
10 and City's Response;
11 WHEREAS, Pelican Point does not have the technical expertise, financial resources and sufficient
12 time to prepare the specific information requested by the Board for consideration of an exception to the
13 Ocean Plan;
14 WHEREAS, the City has provided funding and conducted flow and water quality testing that
15 pertains to the Pelican Point watershed area;
16 NOW, THEREFORE, IT IS AGREED by the parties hereto as follows:
17 A. CITY will include Pelican Point into its Newport Coast Watershed Program and City's
18 Response. The parties agree that tho City, in its sole discretion, shall have the right to take action to
19 withdraw the City from the Board's Exception Process at any time. If the City elects to withdraw from the
20 Board's Exception Process, Pelican Point shall be allowed to continue with the Board's Exception Process
21 in its own name or withdraw from the Board's Exception Process. The parties hereto also agree that, at any
22 time, Pelican Point shall have the right to request that the City withdraw Pelican Point from the Board's
23 Exception Process.
24 8. City agrees that:
25
28
Page 2 of 2
1.0
•
1 1. In City's sole discretion, it may fund future studies and monitoring as needed to
2 implement all or parts of the Newport Coast Watershed Program and the associated reasonable and
3 attainable drainage requirements and conditions from the Board.
4 2. City shall use its best efforts to work with The Irvine Company (TIC) for waste and
5 discharge issues emanating from the golf course and TIC properties.
8 C. Pelican Point agrees that:
7 1. It will comply with all reasonable and attainable mandates, conditions and
8 obligations set by the Board including, but not limited to, the Board Exception Process for the Newport
9 Coast Watershed Program.
10 2. Pelican Point shall cooperate with City staff to initiate and complete specific
11 reasonable and attainable measures to significantly reduce dry weather runoff flowing to the Irvine Coast
12 ASBS and institute reasonable and attainable measures to significantly reduce the amount of materials,
13 defined by the Board as harmful to marine life, entering the Irvine Coast ASBS, at Its own cost.
14 3. Pelican Point shall be responsible for expenses associated with reducing dry -weather
16 flows and harmful materials from common association areas.
18 4. Pelican Point shall provide reasonable and periodic access to City staff and consultants to
17 perform monitoring functions as needed to meet the requirements of the Board;
18 5. The parties agree that for all issues involving mutual costs, City will obtain written
19 concurrence from Pelican Point prior to initiating any services or work, including, but not limited to,
20 studies or projects, for which the City will seek to recover costs and expenses from Pelican Point.
21 6. The parties agree that if the Board does not grant the exception or if any condition or
22 requirement imposed by the Board or Regional Water Quality Control Board is deemed by the City to be
23 unreasonable and unattainable, the City shall have no further obligations under this MOU.
24 7. The parties agree that if the City determines, in its sole discretion, that Pelican Point
25 or its members are not fulfilling their obligations under this MOU or otherwise, it may provide notice to
28 Pelican Point thereof and shall have no further obligations under this MOU.
Page 3 of 3
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IN WITNESS WHEREOF, the City has caused this MOU to be executed by the Mayor and attested by its
clerk, and Pelican Point has caused this MOU to be executed by its President of Pelican Point Board
attested by its Secretary, all thereunto duly authorized by Minute Orders of the Clty Council and the
Pelican Point respectively, on the date written opposite their signatures.
Pelican Point
a California Corporation
Date: By:
Date: I1--01.8-04
ATTEST:
City Clerk of the Council
THE CITY OF NBWPORT BEACH,
A municipal corporation
By:
Apprgyed as to form:
City Attorney
Page 4 of 4
22
EXHIBIT C
Water Quality Management Plan
DRAFT
WATER QUALITY MANAGEMENT PLAN (WQMP)
FOR
THE PELICAN HILL RESORT
Vesting Tentative Tract No. 16566: PA030075 — Pelican Hill Lower Casitas
Vesting Tentative Tract No. 16567: PA030078 — Pelican Hill Upper Casitas
Vesting Tentative Tract No. 16568: PA030076 — Pelican Hill inn
Tract No. 14131, Lot 2: PA030077 — Pelican Hill Golf Club
. County of Orange No. WQOS-0032
Prepared For:
THE IRVINE COMPANY
550 Newport Center Drive
Newport Beach, California 92660
(949) 720-2000
Prepared ay:
KMCh COMPO b■I
TIKC
19 Technology Drive
Irvine, Celifbmia 92618
(949) 923.6000
May 31, 2005
Revised August 23, 2005
OWNER'S CERTIFICATION
WATER QUALITY MANAGEMENT PLAN FOR
PLANNING APPLICATION #PA030075, PA030076, PA0030077 AND PA0030078 AND
VESTING TENTATIVE TRACT NO. 16566, VESTING TENTATIVE TRACT NO. 16567:
PA030078, VESTING TENTATIVE TRACT NO. 16568 AND TRACT NO. 14131, LOT 2
This Water Quality Management Plan has been prepared for The Irvine Company by The Keith
Companies, Inc. It is intended to comply with the requirements of the County of Orange
Resources and Development Management Department (RDMD), Vesting Tentative Tract No.
16566, Vesting Tentative Tract No. 16567, Vesting Tentative Tract No. 16568 and Tract No.
14131, Lot 2, and Site Development Permit/Planning Application Number PA030075-Condition
No's. 34, 35 and 36; PA030076-Condition No's. 28, 29, and 30; PA0030077-Condition No's. 33,
34, and 35; PA0030078-Condition No's. 30, 31, and 32 requiring the preparation of a Water
Quality Management Plan (WQMP) and requiring coverage under the Statewide National
Pollutant Discharge Elimination System (NPDES) General Permit for Construction Activity.
These discretionary Planning Applications were approved by the County of Orange Planning
Commission on November 9, 2004.
The undersigned is aware that Best Management Practices (BMPs) are enforceable pursuant to
County Ordinance No. 0-97-3987. The undersigned, while Owner of the subject property, is
responsible for the implementation of the provisions of this plan, and will ensure that this plan is
amended as appropriate to reflect up-to-date conditions on the site consistent with:
1. The current Orange County Drainage Area Management Plan (DAMP); and
2. The intent of the non point source National Pollution Discharge Elimination System
(NPDES) Permit for Waste Discharge Requirements for the County of Orange, Orange
County Flood Control District and the incorporated cities of Orange County within the
Santa Ana Region Storm water Runoff Management Program.
Once the undersigned transfers its interest in the property, its successors -in -interest shall bear the
aforementioned responsibility to implement and amend the WQMP. An appropriate number of
approved -signed copies of this document shall be available on the subject site in perpetuity.
Tax IRvINE COMPANY
550 Newport Center Drive
Newport Beach, ifornia 926• t.
(949) 720-2000
Signature
Print Name
Title
Date
Ott •03
l .t4 t O +t. b t (LAE. cTo R.
AUG. 31l2e;t7s
PLANNING & DEVELOPMENT SERVICES DEPARTMENT
NPCES urban Runoff Condition Approval
EVIEINlD BY:
/iAl-y .+. DATE Q /OS
Me amotraa SERVICE OI11SCN
I
February 24, 2015
Since 1864
Katherine Faick
Environmental Scientist Areas of Special Biological Significance
State Water Resources Control Board
1001 I Street
P.O. Box 100
Sacramento, CA 95812-0100
Re: The Irvine Company's Exception From Ocean Plan ASBS Prohibition
Dear Ms. Faick:
As you know, the State Water Resources Control Board ("State Water Board") granted
an exception to the Ocean Plan prohibition against waste discharges into the Irvine
Coast Area of Special Biological Significance ("ASBS") to The Irvine Company LLC
("TIC") in connection with the Pelican Hills Resort and Golf Course, located at Pelican
Point Drive and Cameo Shores Road, Newport Beach, California, 92657 ("Property") per
State Water Board Resolution No. 2012-0012 ("General Exception"). The General
Exception covers four discharge points grouped together in three locations: IRV 021
and IRV 022; IRV 027; and IRV 031. We write to notify the State Water Board that TIC
intends to transfer the Property to its affiliate, PH Finance LLC, a Delaware limited
liability company, ("Successor Owner") on March 1, 2015. As TIC will no longer be the
entity that owns the fee interest in the Property, future correspondence related to the
General Exception should be sent to Dean S. Kirk of PH Finance LLC at 550 Newport
Center Drive, Newport Beach, CA 92660.
Additionally, we previously confirmed in 2012 that compliance and monitoring activities
for discharges from IRV 31 are being handled by the City of Newport Beach pursuant to
a Memorandum of Understanding between TIC and the City ("MOU"). TIC has assigned
the MOU to the Successor Owner, and Successor Owner will continue to coordinate with
the City regarding the City's participation in any regional water and reference area
monitoring that may be required for IRV 31 in accordance with the MOU. As we
previously noted, the outlet pipe at IRV 31 is only 16 inches in diameter and does not
require outlet or receiving water reference area monitoring under the ASBS General
Exception.
With regard to discharges from IRV 21, 22 and 27, we previously noted that discharge
points from the Property that drain to IRV 21, 22 and 27 are all landward of the Pacific
Coast Highway and are not discharges under the ASBS General Exception. This
condition has not changed.
550 Newport Center Drive, Newport Beach, California 92660-7011 949.720.2000
Ms. Katherine Faick
February 24, 2015
Page 2
Please contact me at 949.720.2878 should you have any questions.
Best regards,
%.JUO•AA
Dean S. Kirk
Vice President
Environmental Affairs
17,s,i,z,
cc: Stephen Badum, City of Newport Beach
vDave Webb, City of Newport Beach
Robert Stein, City of Newport Beach
Steve Friedlander, Pelican Hill Golf Course