HomeMy WebLinkAbout09 - Hoag Hospital Methane Gas Mitigation SystemTO: Mayor and Members of the City Council
FROM: Public Works Department
December 8, 1997
CITY COUNCIL AGENDA
ITEM NO. 9
E CITY OF NEWPORT BEACH
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ITC 81997
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SUBJECT: HOAG HOSPITAL METHANE GAS MITIGATION SYSTEM
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RECOMMENDATIONS:
Approve the design and relocation of the Hoag Hospital Methane Gas Mitigation
System; and
• Based on the re-evaluation of the certified Environmental Impact Report, concur
that there are no conditions described in California Environmental Quality Act
Guidelines Section 15162 or Section 15163 which would require the preparation
of a Subsequent EIR or Supplemental EIR; and
• Authorize the City Manager to execute a Cooperative Agreement between Hoag
Hospital and the City of Newport Beach.
BACKGROUND:
In the early 1980s, the City constructed a methane gas system that extracted methane
gas from a series of deep wells and burned it through a flare located on what is now
the Hoag Hospital lower campus. When Hoag purchased the property in the late
1980s, they also assumed responsibility for the operation and maintenance of the
flare. In 1994, when Hoag Hospital proposed development of the lower campus, the
City included a condition that Hoag upgrade the methane mitigation system to "scrub"
the gas to remove the hazardous hydrogen sulfide. In 1996, the City, Hoag Hospital
and Caltrans formed a partnership to design this new system. Caltrans agreed to
contribute 50 percent, up to $750,000, of the total cost to construct, operate and
maintain the system, with Hoag Hospital committing to cover the remaining project
costs. Since Caltrans was prohibited from making a direct contribution to Hoag
Hospital as a private organization, the City was asked to act as the Project Manager,
which includes financial management of the Project. The City is finalizing an
agreement with Hoag Hospital to permit the City to transfer the Caltrans funds to Hoag
to begin construction of the project. A draft of the agreement is attached to this report.
The design of the new mitigation system is complete, and includes a sophisticated
vacuum system that extracts the methane gas from the three underground wells and
piping systems. The gas is run through a chemical system that removes the hydrogen
sulfide from the gas, then pipes the clean gas to the upper Hoag Hospital campus to
generate energy for the hospital. The by-product of the scrubbing system is an inert
material similar to chemical fertilizer that can be easily and safely disposed. The
system includes an enclosed flare that could burn the gas if necessary. However, if
the gas can be used for energy, the flare would only be used as a back-up emergency
system.
SUBJECT: HOAG HO: AL METHANE GAS MITIGATION SYSTEM
December 8, 1997
Page 2
Hoag also intends to move the mitigation system from the middle of the lower campus
to the far end near Superior Avenue. Three residential neighborhoods are affected by
the Project: Villa Balboa, Balboa Coves and Newport Townhomes. City staff and/or
Geo -Science, the technical consultants hired by Hoag, have made presentations to all
three Associations. Newport Townhomes opposed the relocation of the system when
the Coastal Commission reviewed the project a few months ago, citing safety concerns
as well as an adverse affect on property values. All three Associations were notified
when the Public Works Committee reviewed this issue at the October 27th meeting,
and have been informed of the Council review this evening.
Due to questions raised by Newport Townhomes, the City retained the environmental
planning firm of LSA Associates, which prepared the original Environmental Impact
Report, to compare the final engineering plans with the certified EIR to determine if the
conditions had changed such that a Subsequent EIR or Supplemental EIR should be
prepared for the project. LSA has determined that the project will not result in any new
impacts or any change in the severity of impacts previously identified. Therefore, no
conditions exist which would require a Subsequent or Supplemental EIR (Guidelines
Section 15162 and 15163). A copy of LSA's report is attached for the information of
the City Council.
The Public Works Committee approved the design and relocation of the methane gas
mitigation system and directed staff to forward the Hoag/City Cooperative Agreement
to the City Council.
Respectfilljy submitted,
PUBLIC WORKS DEPARTMENT
DON WEBB, DIRECTOR
By:
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Peggy Ducey
Assistant to the City Manager
P 1 . i,
LSA
December 2, 1997
Ms. Patricia Temple
Planning Director
City of Newport Beach
Planning Department
3300 Newport Boulevard
Newport Beach, CA 92663-3884
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Subject: Environmental Review of Proposed Hoag Memorial Hospital
Methane Gas Recovery and Flare System Upgrade
Dear Ms. Temple:
LSA Associates, Inc. (LSA) has reviewed the engineering plans prepared for the
proposed Hoag Hospital Methane Gas Recovery and Flare System Upgrade and
compared the potential project specific impacts with the overall Master Plan
impacts analyzed in EIR No. 142 and the Supplemental EIR. A description of
the proposed project and our analysis and conclusions are provided below for
your use.
PROJECT DESCRIPTION
The proposed project involves removing the existing methane gas flare and
constructing a new, larger capacity flare and hydrogen sulfide scrubber system.
Presently, a methane gas recovery and flare system exists on the lower campus.
The existing flare is located adjacent to the Hospital's main entrance driveway,
which provides access to and from Pacific Coast Highway. The existing blower
is operating at its current rated capacity of 140 cubic feet per minute (cfm),
which is about twice the capacity of the existing flare.
The new system is planned to be located at the far west end of the existing
lower campus parking lot, which parallels PCH. The new system would include
a standby blower and numerous safety, shutdown, and monitoring features. It
is designed for an increased capacity of 175 cfm, with future capability to 200
cfm. The methane gas currently recovered on site contains approximately
4,000 parts per million (ppm) of hydrogen sulfide gas. A scrubbing system is
proposed as part of the project to extract the hydrogen sulfide so that it can be
piped to the hospital boilers for burning. The new system will allow for two
operating conditions: the recovered methane gas can be burned in the new
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flare system, or the recovered gas can be scrubbed of hydrogen sulfide, which
will be burned in the Hoag boiler system. The existing flare system will be
dismantled, and parts will be recycled for use in the proposed flare.
The project includes the installation of the following structures and facilities: a
61 by 44 foot facility enclosure, bounded by an 8 foot high forest green fabric
fence; a roll back entrance gate; two 29 foot high by 8 foot diameter scrubber
tanks; one 35 foot tall flare stack; two blower packages used to pump the gas
from the wells to the scrubber (less than five feet above grade); an air cooler; a
main control panel; a garbage bin; and underground sulfur treatment system
piping leading to the existing hospital boiler tie-ins. Installation of the sulfur
piping will require excavation of a temporary, five foot deep trench traversing
the existing paved parking lot. The new flare system would be located approxi-
mately 270 feet southwest of the nearest residential structure in the Villa Bal-
boa/Sea Faire condominium complex.
ANALYSIS
The project boundaries and limits of trenching are within the project boundary
of the Hoag Master Plan, analyzed in Final EIR No. 142. The proposed project
has been analyzed in relation to each environmental topic addressed in the
Master Plan EIR, and the conclusions are discussed below.
Earth Resources
The flare system upgrade will not result in any impacts relative to earth re-
sources that were not previously analyzed in EIR No. 142. The project will not
involve any cuts into the existing bluff slopes. Only minor excavation for foun-
dation construction, and minor trenching for pipe installation will be needed.
As noted in EIR No. 142, no known faults traverse the lower campus, and the
probability of ground rupture is considered remote. The new flare location will
not result in increased seismic risks as compared the existing flare location.
No new impacts related to earth resources beyond those analyzed in EIR No.
142 would occur.
Hydrology/Water Quality
The flare system upgrade will not result in increased runoff, as the site is al-
ready paved and impervious. The flare system will not involve the release of
hazardous substances into the storm or waste water system. The new system
will be located within a 200 foot wide strip of land, located immediately north
of and parallel to PCH, which is within the 100 to 500 year flood zone. The
flooding potential is considered minor, and does not constitute a new or signif-
icant impact.
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No new impacts related to hydrology or water quality beyond those analyzed in
EIR No. 142 would occur.
Biological Resources
No additional habitat areas will be affected by the project beyond those identi-
fied in EIR No. 142. The project site has already been paved for the existing
parking lot, and no natural vegetation exists on site. No wildlife is expected to
utilize the site.
No new impacts related to biological resources beyond those analyzed in EIR
No. 142 would occur.
Cultural Resources
The construction of the flare system will not involve extensive excavation and,
therefore, is not expected to impact archeological or paleontologic resources.
No surface evidence of archeological resources are present on site, although
this does not rule out the possibility of subsurface resources. Also, as stated in
EIR No. 142, "the project area lies within a sensitive zone with the potential to
yield significant fossils from the Pleistocene and Miocene deposits. Therefore,
monitoring during grading will be required." It was determined in EIR No. 142
that monitoring during construction would reduce potential impacts to a level
of insignificance. Monitoring was conducted during previous grading activities
for the existing parking lot. The depth of the trench for the sulfur treatment
system piping will not be below previous disturbance; therefore, no additional
monitoring will be required.
Land Use
EIR No. 142 analyzed potential land use impacts that could occur based on
those uses allowed under the Hoag Planned Community Development Permit
(PCDP) provisions and Development District regulations. Land uses allowed
for the lower campus include support services (including power/mechanical/
auxiliary support and storage) and a methane gas flare burner, with collection
wells and associated system components. These uses were analyzed in EIR No.
142, and mentioned specifically under Section 3.2, Project Description. The
Land Use Section of EIR No. 142 determined that impacts of the Master Plan to
relevant City of Newport Beach planning programs and LCP land use plan
designations were insignificant. The zoning for the site allows the flare to be
placed in any location that a building could be placed. The new flare will be
replacing the existing flare and, therefore, does not represent an unaccounted
for land use change.
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Transportation/Circulation
The new flare system is not expected to generate additional trips beyond those
generated by the existing flare for periodic visits by maintenance personnel.
During construction, some parking spaces at the west end of the lower campus
parking lot may need to be used for construction equipment. The flare facility
will permanently occupy a portion of the parking lot that could otherwise be
used for approximately seven parking spaces. These impacts to available park-
ing are insignificant, and no new impacts related to traffic/circulation beyond
those analyzed in EIR No. 142 would occur.
Air Quality
The purpose of the existing flare system is to recover and burn off methane gas
that seeps from natural, subsurface sources below the hospital site. The exist-
ing flare burns the gas collected from three extraction wells and a subsurface
collection system located at Balboa Coves. The methane extraction system is
intended to improve local air quality by preventing the methane gas from
reaching the surface. The new flare will increase the capacity of the recovery
system from 140 to 175 cubic feet per minute, allowing more methane to be
recovered and burned.
Construction of the new flare will require issuance of a permit from the South
Coast Air Quality Management District (SCAQMD). As part of the permit appli-
cation, Hoag will need to submit for approval by SCAQMD a plan that demon-
strates compliance with the requirements of those SCAQMD rules governing
flare systems. The following mitigation measure was included in EIR No. 142
to ensure that necessary permits have been acquired from the SCAQMD prior to
construction:
7-2 Prior to issuance of grading and building permits for each phase of
development, the project sponsor shall provide evidence for verifica-
tion by the Planning Department that the necessary permits have been
obtained from the SCAQMD for regulated commercial equipment in-
corporated within each phase.
The hospital has complied with this measure by obtaining a construction per-
mit (#329157, issued on September 19, 1997) from AQMD.
AQMD has indicated that no air dispersion modeling is needed because the
project is substantially under air quality emissions thresholds.
Adverse effects that could occur if hydrogen sulfide was to be released rapidly
during an emergency are discussed below under "Public Health and Safety."
No new long-term or short-term impacts related to air quality beyond those
analyzed in EIR No. 142 would occur. As no increase in traffic is expected as a
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result of the project, no additional air quality impacts associated with vehicular
exhaust are expected.
Noise
The new flare system will generate noise levels similar to the existing flare. As
with the existing system, the noise generation will be intermittent based on
when the flare and blowers are in operation. The new flare will include muf-
fling equipment to prevent excessive operation noise. The following mitigation
measure, included in EIR No. 142, will reduce noise levels to within applicable
standards:
8-3 Prior to issuance of a grading and/or building permit the project spon-
sor shall demonstrate to the City that existing noise levels associated
with the on-site exhaust fan are mitigated to acceptable levels. Simi-
larly, the project sponsor shall demonstrate that all noise levels gener-
ated by mechanical equipment associated with the Master Plan are
mitigated in accordance with applicable standards.
This will include meeting City standards from 10:00 p.m. to 7:00 a.m. for noise
as measured at the property line.
The new flare will be situated directly adjacent to the steep bluff slopes above
the existing parking lot. These slopes will help to attenuate noise generated by
the flare and protect the Villa Balboa condominiums from noise impacts. Noise
generated by the flare machinery is not expected to exceed the traffic noise
levels generated along PCH during daylight and evening hours.
Visual/Aesthetics
The proposed flare system is in conformance with structural height limitations
for the Lower Campus, and will not obstruct ocean or bay views from the Villa
Balboa condominiums or linear view park. The maximum structure heights
allowed by the PCDP in Zone A, which is where the new flare would be located,
range from 45 to 48 feet above grade (or 65 to 68 feet above mean sea level).
Height limits for the project site are 26/35 feet, as defined in the City's Zoning
Code. In the 26/35 height limitation zone, the height limit shall be 26 feet;
however, a structure may exceed 26 feet (up to a maximum of 35 feet) after the
adoption of a Planned Community District, a Specific Area Plan, or a Use Per-
mit. The new flare stack will be 35 feet in height, and each of the scrubber
tanks will be 29 feet in height, which is below these height limitations for a site
with an adopted PCD. The new flare structure will not obstruct the line of
sight running from the view parks and condominiums to the ocean or bay.
The flare system upgrade will result in the placement of mechanical equipment
in an area currently used as a paved parking area. The flare system will intro-
duce industrial type mechanical equipment into a portion of the site that cur -
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rently has visually clean lines. This will affect the visual character of the Lower
Campus as viewed from the Villa Balboa condominiums and view parks. The
following mitigation measure included in EIR No. 142 was designed to mini-
mize such impacts:
9-3 Prior to issuance of a building permit, the project sponsor shall submit
plans to the City Planning Department which illustrate that all me-
chanical equipment and trash areas will be screened from public
streets, alleys and adjoining properties.
Trash bins will be on site approximately two days every 90 days for disposal of
sulfur retaining chemicals.
Landscaping plans identify larger than typical (up to 48 inch boxes) box trees,
so landscape coverage will be provided with the first planting of the boxed
trees. However, due to the height of the stack and blower tanks, it may not be
possible to completely obscure the facility from view.
When the flare is operational, no flame will be visible. The flare will be
shrouded by a pipe.
Public Health and Safety
The existing and proposed flare facilities are intended to prevent public health
and safety impacts by collecting and properly disposing of the methane gas
seeping from below the Hospital environs, thereby preventing chronic expo-
sure and reducing the potential for explosion. The new flare will continue this
beneficial function, with an increase in methane handling capacity from 140 to
175 CFM.
As noted in the project description, the new system will be designed to remove
(scrub) hydrogen sulfide from the incoming methane gas stream, which will
then either be sent to the hospital's boiler or flared. In no case will hydrogen
sulfide be flared. Hydrogen sulfide gas is lethal at high concentrations, and is
much more dangerous than methane. The design for the site includes three
hydrogen sulfide monitors and three methane sensors. A safety system, includ-
ing alarms, warning lights, and automatic shutdown capabilities, will be in-
stalled to ensure that a harmful release of high concentration gas does not
occur.
At the time EIR No. 142 was prepared, there were no specific plans as to how
the methane could be utilized. Thus, a sulfur treatment/methane recovery
system such as the one proposed was not yet planned, and health risks related
to an accidental release of harmful gases was not evaluated in the EIR. The
plans for the sulfur treatment system contain numerous safety features. In no
case will hydrogen sulfide be flared. For this reason, it is not expected that the
project would result in a significant threat to public health and safety. AQMD
has stated that emissions will be substantially below threshold levels.
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The impact analysis in EIR No. 142 noted that a temporary increase in the level
of underground methane may occur while the existing flare was being disman-
tled and replaced by a new system. The following mitigation measure was
included to ensure that temporary adverse effects did not occur:
10-12 The Project Sponsor may remove the flare system, contain the gas and
utilize the gas for Lower Campus facilities. During the containment
process and removal of the flare, the project sponsor shall ensure that
methane levels are monitored throughout the project area to ensure
that this transition does not create an upset in methane levels or cre-
ate odors or risk of explosion. (EIR No. 142, page 4-199)
This mitigation measure is applicable to the proposed project, and will reduce
potential health and safety impacts.
Public Services and Utilities
No new impacts related to public services and utilities beyond those analyzed
in EIR No. 142 would occur. One of the projects' objectives is utilize the
scrubbed methane gas in the hospital's boilers, thereby decreasing the hospitals
dependence on gas supplied by the City.
Construction Activities
Temporary construction impacts, such as construction noise and an increase in
fugitive dust, will occur during construction of the new flare system. EIR No.
142 stated that construction noise would cause an unavoidable, significant
impact to adjacent residences. Construction of the new flare system will not
require a significant amount of grading and, therefore, construction noise is
expected to be limited.
Population, Employment and Housing
No new impacts related to population, employment, and housing beyond those
analyzed in EIR No. 142 would occur.
Public Amenities
The project will not directly impact plans for the 0.28 acre view park or 20 foot
wide linear park planned to be built along the bluffs as part of the Hospital
Master Plan. The flare facility will not block ocean or bay views from either of
the parks. However, the presence of the flare stack, blower tanks, and associ-
ated mechanical equipment directly below the view park may detract from the
park visitors' experience. This impact is not considered significant, since the
view parks themselves are beneficial amenities included in the Hospital Master
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Plan. Mitigation Measure 9-3 included in EIR No. 142 and discussed above will
help to shield this equipment from the view of park visitors.
Conclusions
The conclusions and findings in EIR No. 142 have been reviewed; the proposed
project does not result in any increase in impacts or changes in the EIR condi-
tions. All of the mitigation measures included in EIR No. 142 are still valid.
There are no conditions described in CEQA Guidelines Section 15162 that
would require a subsequent EIR. The proposed project will not result in any
new, significant impacts not previously discussed. In accordance with CEQA
Guidelines Section 15063 (b) (1) (B), the previously prepared EIR adequately
analyzes the relocated flare system.
Please call me or John Staight if you have any questions.
Sincerely,
LSA ASSOCIATES, INC.
O�
Carollyn Lobell
Principal
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09-26-1997 07:34AN FROM
TO 6443020 P.02
PATIENT RELATIONS "ax :714-574-6860 Sep 25 16:12 P.01
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VILLA�EPZS,
September 21, 1997
California Coastal Commission
South Coast Area
P.O. Box 1450
Long Beach, CA 90802-4416
Dear Meg Vaughn, Coastal Program Analyst
^SLJBJBCf: PerznitNo.5-92-368-A1
Hoag Memorial Hospital Presbyterian
Relocation and Upgrade of Methane Gas Elimination System
Thank you for sending me the staff report to the Commission regarding the subject permit. The
issue was discussed at the recent Board meeting of the Villa Balboa Community Association
which includes 449 condominium residences adjoining Hoag's property near the existing and
proposed location of the gas elimination. system. We all agree that it would be desirable if the
ground did not contain the methanr gas, however that is not the case. Since it does we find it
desirable that the City and Hoag have collaborated on a mitigation measure to reduce the impact
on the local residences and proposed buildings planned by Hoag. The issue was brought -rp by
the residences and considered by the Board. The Board resolved that we should send you a letter
in support of the planned relocation and upgrade or the methane gas ellmination system as
long as the cvnstruoted, operated and maintained facility is consistent with the summary included
in your staff report to the Commission. Please provide this letter to the Commission for their
considemtivn at the forthcoming Commission meeting which I believe is in Dana Point in,
October 1997.
If you have need to contact me I can be reached at home at 714.548-6180 ur at work at 714429-
2020 Ext, 2221. My home address is 200 Paris Lanc, No. 113, Newport Beach, CA 92663,
Sincerel
Frank Jones, sident
Villa Balboa Community Association
Copies to: Jeanne )Brady, Manager, Villa Balboa
Hoag Hospital
C:W)f Documents,Pcm7uil\VBCA\70921cee.doc
Managing Agent: Villageway Management, Inc.
P.O. Rnx 4708 • Irvine, CA 926M-4708 • (714) 553-1876 a FAX (714) 2$0-9009
TOTAL P.02
SEP -26-1997 08:06 93% P.02
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COOPERATIVE AGREEMEN7�'
This AGREEMENT entered into on , 1997, is between the CITY OF
NEWPORT BEACH, a municipal corporation of the State of California, referred to
herein as CITY, and HOAG MEMORIAL HOSPITAL PRESBYTERIAN, a California
Nonprofit Public Benefit Corporation, referred to herein as HOSPITAL.
RECITALS
WHEREAS, there is a methane gas field underlying the West Newport Beach area,
surfacing in the area around Hoag Hospital, Balboa Coves and Pacific Coast
Highway. In late 1995, Hoag Hospital requested that State Senator Ross Johnson
introduce legislation to fund a new methane gas mitigation system (PROJECT) to be
located on the lower campus of Hoag Hospital. Because the methane gas surfaced at
Pacific Coast Highway and Hoag Drive, the State of California, Department of
Transportation (STATE) agreed to cooperate with Hoag Hospital to partially finance
the proposed mitigation system, and
WHEREAS, per Caltrans' request, CITY became the project manager to oversee the
construction of the PROJECT and manage the State financing. In partnering on
PROJECT, STATE desires remediation system that only relieves gas seepage along
and related to the Pacific Coast Highway; HOSPITAL desires remediation of gas
necessary to develop HOSPITAL's lower campus, and
WHEREAS, on September 9, 1996, CITY and STATE entered into a Cooperative
Agreement under District Agreement No. 12-304, referred to herein as CITY/STATE
AGREEMENT, and attached hereto as Exhibit "A", and
WHEREAS, the parties hereto intend to define herein the terms and conditions under
which IMPROVEMENTS are to be constructed, financed and maintained.
I. Term.
A. The term of this AGREEMENT shall be for twenty (20) years, commencing
upon execution of AGREEMENT.
B. Upon expiration or termination of this AGREEMENT, both parties shall be
relieved of any further obligations under this AGREEMENT, although
each shall continue to have available all remedies for any breach of this
AGREEMENT occurring prior to the date of termination.
C. All obligations under this AGREEMENT are subject to the appropriation
of the resources by the Legislature and the allocation of resources by the
California Transportation Commission, as stipulated in CITY/STATE
AGREEMENT.
II. Use.
A. AGREEMENT governs the construction, maintenance, and operation of a
methane gas mitigation system, including the construction of a methane
gas extraction system, a scrubbing system to remove the sulfur and other
impurities from the methane gas, and a transportation system to route the
methane gas to HOSPITAL for use as energy. HOSPITAL agrees to
PROJECT on HOSPITAL property. PROJECT will be in compliance with
site plan and related drawings dated and approved by CITY.
B. Any and all construction work performed pursuant to this AGREEMENT,
including installation, operation, and maintenance of PROJECT, shall be
subject to prior review and approval of CITY. HOSPITAL agrees to
construct PROJECT in accordance with construction documents as
approved by CITY. HOSPITAL agrees to furnish CITY a complete set of
full-sized reproducible record documents for PROJECT.
C. CITY agrees to expedite review and approval of construction documents
and to waive all CITY permit fees, unless CITY must use outside
contractors for review and approval process, for the review of
construction documents for PROJECT. City agrees to obtain necessary
encroachment permits for required work as part of PROJECT within the
STATE right-of-way, in accordance with STATE's standard permit
procedures, as described in CITY/STATE AGREEMENT.
D. CITY and HOSPITAL shall jointly provide documentation necessary to
the STATE to help assure allocation of resources by the California
Transportation Commission. CITY and HOSPITAL agree that time is of
the essence in obtaining funding from the California Transportation
Commission, and that construction documents will be submitted to the
STATE by no later than for consideration by the California
Transportation Commission.
E. HOSPITAL agrees to obtain and comply with all necessary certificates,
permits and/or other approvals which may be required from any federal,
state or local authority. CITY agrees to cooperate with HOSPITAL to
obtain necessary certificates, permits or other approvals. Required
permits may include, but are not limited to a Coastal Development Permit
from the California Coastal Commission for construction of the PROJECT
as well as a permit to construct, and annual Permit(s) to Operate, as
required, from the South Coast Air Quality Management District for
PROJECT.
F. HOSPITAL shall maintain PROJECT free from hazards or risk to public
health, safety or welfare.
G. If existing public and/or private utilities conflict with the construction of
PROJECT, CITY will make necessary arrangements with the owners of
such utilities for their protection, relocation or removal in accordance with
CITY/STATE AGREEMENT.
III. Operation and Maintenance of Project.
A. Once PROJECT is constructed and is operational, all assets in
connection with CITY's PROJECT that are located on HOSPITAL
property shall be owned., operated and maintained by HOSPITAL.
B. HOSPITAL will contract with outside agency specializing in the operation
and maintenance of PROJECT. Contractor shall oversee daily operation
of PROJECT and provide routine as well as long-term maintenance and
repairs. Routine maintenance shall include, but not be limited to .....
HOSPITAL shall prepare an annual PROJECT replacement and
refurbishment schedule that assures the ongoing operation of the
PROJECT during term of AGREEMENT.
C. Methane Gas produced by PROJECT has a monetary value since it will
be used by HOSPITAL to generate energy and therefore defray
HOSPITAL overall energy costs. HOSPITAL shall provide on a semi-
annual basis the amount of gas produced by PROJECT, and its
equivalent dollar value based on methods outlined in Attachment 1.
D. The value of the methane gas used by HOSPITAL shall be calculated as
outlined in Attachment I.
E. HOSPITAL'S fair share of PROJECT cost shall be offset by the calcualted
value of the methane gas used for energy.
IV. Alterations and Additions.
A. HOSPITAL or any contractor or person selected by HOSPITAL shall not
make or suffer to be made any alterations, additions or improvements in
or to or about PROJECT without prior written consent of CITY.
B. Upon written approval of CITY, HOSPITAL may augment/modify
PROJECT to accommodate future HOSPITAL development, as described
in the DEVELOPMENT AGREEMENT, with allowed modifications to
include, but not limited to additional connections to PROJECT from
existing and future HOSPITAL development. CITY may connect
additional venting systems, extraction systems, or pipes originating
outside of HOSPITAL property to PROJECT at any time during term of the
AGREEMENT.
V. Project Cost and Reimbursement Procedures.
A. HOSPITAL shall bid PROJECT, per the CITY approved construction
documents, and obtain not less than three bids to construct PROJECT.
HOSPITAL shall also bid the cost to operate and maintain PROJECT on
an annual basis. Prior to the commencement of any PROJECT
construction, CITY and HOSPITAL will agree in writing the estimated
PROJECT construction and operational costs, and of that cost, the
STATE and HOSPITAL'S fair share of the total cost of the PROJECT.
B STATE's fair share of the cost of PROJECT, described in the CITY/STATE
AGREEMENT, shall be up to fifty percent (50%) of the total cost of
constructing, operating and maintaining PROJECT during the term of this
AGREEMENT, not to exceed a maximum total cost to STATE of seven
hundred and fifty thousand dollars ($750,000.00).
C. HOSPITAL agrees to pay for total cost of PROJECT, which are related to
the design and construction of methane and hydrogen sulfide mitigation
devices required for the development of structures on its lower campus,
and its fair share of cost of PROJECT for methane gas mitigation along
Pacific Coast Highway.
D. CITY agrees to reimburse HOSPITAL for PROJECT expenditures
incurred by HOSPITAL as part of design and construction of PROJECT
as follows:
1. HOSPITAL shall submit invoices on a monthly basis for all design
and construction costs incurred during the previous month.
Invoices shall related to design and construction and cost as
approved previously by CITY.
2. CITY shall forty-five days to review and reimbursement
HOSPITAL for the submitted invoices.
7. Entry by City.
A. HOSPITAL hereby agrees that CITY shall have right, during normal
business hours and in the accompaniment of a representative of
HOSPITAL, have the right to enter the PROJECT area and inspect same
to determine if the same complied with each and every term and
condition of this AGREEMENT.
B. CITY shall have right to immediate access to PROJECT in the event that
CITY deems there is a risk to public health and safety by PROJECT.
C. HOSPITAL agrees to notify CITY immediately if operation of PROJECT is
compromised, or if at any time, PROJECT is not operating.
8. Indemnification.
A. Neither CITY nor any officer or employee thereof is responsible for any
damage or liability occurring by reason of anything done or omitted to be
done by HOSPITAL under or in connection with any work, authority or
jurisdiction delegated to HOSPITAL under this AGREEMENT. It is
understood and agreed to that, pursuant to Government Code Section
895.4, HOSPITAL shall fully defend, indemnify and save harmless the
CITY, all officers and employees from all claims, suits or actions of every
name, kind and description brought for or on account of injury (as defined
in Government Code Section 810.8) occurring by reason of anything
done or omitted to be done by HOSPITAL under or in connection with
any work, authority or jurisdiction delegated to HOSPITAL under this
AGREEMENT.
B. Neither HOSPITAL nor any officer or employee thereof is responsible for
any damage or liability occurring by reason of anything done or omitted
to be done by CITY under or in connection with any work, authority or
jurisdiction delegated to CITY under this AGREEMENT. It is understood
and agreed that, pursuant to Government Code Section 895.4, CITY
shall fully defend, indemnify and save harmless HOSPITAL from all
claims, results or actions of every name, kind and description brought for
or on account of injury (as defined by Government Code Section 810.8)
occurring by reason of anything done or .omitted to be done by CITY
under or in connection with any work, authority or jurisdiction delegated
to CITY under this AGREEMENT.
C. In the event of any lawsuit or claim filed by any third Party, the Parties to
this Agreement shall cooperate with one another and the defense of the
action then shall share equally all cost and expenses reasonably
incurred in the defense of the claim or action.
7. Insurance.
(pending per input from City Risk Manager)
No alteration or variation of the terms of this AGREEMENT shall be valid unless made
in writing and signed by the parties hereto, and no oral understanding or agreement
not incorporated herein shall be binding on any of the parties hereto.
IN WITNESS WHEREOF, the parties have executed this AGREEMENT by their duly
authorized officers.
HOAG MEMORIAL HOSPITAL PRESBYTERIAN CITY OF NEWPORT BEACH
ICY,0
President
BY:
Mayor
Attest:
City Clerk