Settlement Agreement Reached in Wastewater Lawsuit

Click Here to Read Joint Statement

Facts on Coastal Treatment Plant Settlement Agreement

The City of Laguna Beach, South Coast Water District, Emerald Bay Service District and Moulton Niguel Water District have reached a Settlement Agreement on litigation regarding the Coastal Treatment Plant. The following outlines the specific points outlined in the agreement.

• MNWD agrees to uphold past, current and future contractual obligations in accordance to the South Orange County Wastewater Authority Joint Powers Agreement and through February 19, 2030
• Parties agree to the following interpretation of the Coastal Treatment Plant contract:

o Two-thirds vote of Project Committee 15 to pass operations and maintenance budgets at the Coastal Treatment Plant
o Two-thirds vote of Project Committee 15 to approve necessary repair, replacement and rehabilitation projects at the Coastal Treatment Plant
o Contract term expires February 19, 2030

• Moulton Niguel Water District will pay approximately $2.1 million to cover past invoices dating back to July 1, 2016
• Moulton Niguel will pay approximately $2.7 million to reimburse legal costs incurred by Laguna Beach, South Coast and Emerald Bay during the dispute.

Why was there litigation?

Laguna Beach, South Coast and Emerald Bay filed litigation in May 2017 following Moulton Niguel’s dispute of invoices and interpretation of contracts for the Coastal Treatment Plant. A judge ruled in February 2019 that MNWD was responsible to pay the invoices. A settlement agreement was reached between the Parties following that ruling.

Does the Agreement end the legal issue at the Coastal Treatment Plant?

Yes. All legal proceedings relating to this litigation, including a potential jury trial, have been concluded as part of the Agreement.

What is the future of the Coastal Treatment Plant?

This is and will remain a vital wastewater treatment plant to South Orange County. With litigation behind us, we will work to make necessary improvements, and then evaluate its size, cost and technology in an effort to optimize its long-term value to the region.

Coastal Treatment Plant – General Facts
Total Treatment Capacity: 6.7 Million Gallons Per Day (MGD)

• City of Laguna Beach: 2.54 MGD (37%)
• South Coast Water District: 2 MGD (31%)
• Emerald Bay Service District: 0.2 MGD (3%)
• Moulton Niguel Water District: 1.96 MGD (29%)

Location: Aliso & Woods Canyon, an Orange County Wilderness Park
Communities Served: Dana Point, Laguna Beach, Emerald Bay, Aliso Viejo, Laguna Niguel, Laguna Hills, Mission Viejo and portions of San Juan Capistrano