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HomeMy WebLinkAbout05 - City/Caltrans Cooperative Agreement for Methane Gas Mitigation:V#3 TO: FROM: CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER September 9, 1996 Agenda Item 5 _._.f'Y THE CR,y OF Honorable Mayor and Councilmembers Peggy Ducey, Assistant to the City Manager QN` SEP9 , SUBJECT: City/Caltrans Cooperative Agreement for Methane Gas Mitigation BACKGROUND On July 22nd, the City Council approved a Memorandum of Understanding with Caltrans to construct a methane gas mitigation system in the Hoag/Balboa Coves area. The MOU identifies the City as the project coordinator, but not a direct financial contributor to the project. Caltrans is to contribute up to $750,000, or 50% of the total cost to construct and operate the mitigation system for twenty years. This MOU was to be followed by a more comprehensive Cooperative Agreement that specifically delineates the roles and responsibilities of each party. DISCUSSION The Agreement specifies the City's obligations as follows: • Construct project in accordance with approved plans. • Provide as -built plans to Caltrans. • Retain for audit purposes all financial documents for three years. • Obtain separate agreements with Hoag Hospital and other affected property owners specifying their responsibilities and financial contribution in the mitigation project. Caltrans' obligations are to: • Allocate up to $750,000 toward the cost of project construction and operation. • Deposit with City monthly advances that can be drawn down as work is completed. • Issue all necessary encroachment permits for project work in State right-of-way. Caltrans and the City have agreed to mutual indemnity provisions regarding this project. The City and Hoag Hospital will have a similar provision in their agreement. At this time, the City is exploring two project options to mitigate the gas seepage. Option 1 is to upgrade and expand the existing flare on the Hoag Hospital lower campus. Once constructed, Hoag would operate and maintain the system. The methane gas would be scrubbed to remove the hydrogen sulfide and then either burned through the flare or used by the hospital for power generation. The hydrogen sulfide extracted from the gas would be disposed of in accordance with federal and state hazardous materials regulations. This project has already been designed by Hoag and is ready to begin construction at any time. Option 2, now being studied, involves piping the methane gas to the County Sanitation District of Orange County (CSDOC) to be processed with the methane gas produced through their waste reclamation process. Parsons Engineering Science, Inc. is now studying whether the naturally occurring methane gas from the Hoag area is compatible with the CSDOC methane system, and if so, what the cost would be to construct the pipeline. Parsons will complete the analysis by October 1, 1996. RECOMMENDATION Authorize the City Manager to execute the Cooperative Agreement between the City of Newport Beach and Caltrans. *S COOPERATIVE AGREEMENT This AGREEMENT entered into on Rew ised 6)19tRL 12 -ORA -1 KP 32.23/32.77 12222-07410K Hazardous Gas Remediation At Route 1 and Hoag Drive District Agreement No. 12-304 19 is between the STATE OF CALIFORNIA, acting by and through its Department of Transportation, referred to herein as STATE, and CITY OF NEWPORT BEACH a body politic and a municipal corporation of the State of California, referred to herein as CITY District Agreement No. 12-304 RECITALS 1. STATE and CITY, pursuant to Street and Highway Code Section 114, are authorized to enter into a Cooperative Agreement for improvements to State highways within CITY. 2. CITY contemplates the remediation of methane and hydrogen sulfide in the vicinity of PCH and Hoag Drive, referred to herein as, "PROJECT". City's PROJECT may include the remediation of gas in conjunction with the power generation and remediation necessary to Hoag Hospital's development of its lower campus.. 3. STATE desires a remediation system that will only relieve gas seepage along and related to Pacific Coast Highway ("IMPROVEMENTS") and has requested CITY to construct IMPROVEMENTS as part of CITY's PROJECT. 4. The parties hereto intend to define herein the terms and conditions under which IMPROVEMENTS are to be constructed, financed and maintained. SECTION I CITY AGREES: 1. To design PROJECT and IMPROVEMENTS and to submit plans and specifications for IMPROVEMENTS to STATE for review and comment prior to construction. 2. To provide for the administration of the construction contract for PROJECT and include IMPROVEMENTS as part of PROJECT construction. 3. To obtain necessary encroachment permits for required PROJECT work within STATE right of way, in accordance with STATE's standard permit procedures, as more specifically defined in Articles (2), (3), and (4) of Section III of this Agreement. 4. To construct PROJECT and IMPROVEMENTS in accordance with plans and specifications of CITY. 2 District Agreement No. 12-304 5. Upon completion and acceptance of PROJECT furnish STATE a complete set of full-sized film positive reproducible As -Built plans for IMPROVEMENTS and all relevant connections to PROJECT. 6. To invoice STATE for STATE's fair share of the cost of the IMPROVEMENTS which shall be fifty percent (50%) of the total cost of constructing, operating and maintaining the IMPROVEMENTS not to exceed a maximum total cost to STATE of seven hundred and fifty thousand dollars ($750,000.00) . 7. To retain all records and accounts relating to construction of PROJECT and IMPROVEMENTS for a period of three (3) years from date of final payment, and to allow STATE access to view a copy of those records and accounts for audit purposes. . 8. To obtain separate agreements with both Hoag Hospital and the Balboa Coves Homeowners Association indemnifying STATE from any liability resulting from construction, operation, and maintenance of the PROJECT. SECTION II STATE AGREES: 1. To issue, at no cost to CITY and CITY's contractor, the necessary encroachment permits for required work within STATE rights of way, as more specifically defined in Articles (2), (3), and (4) of Section III of this Agreement. 2. To provide, at no cost to CITY, a qualified STATE Representative who shall have authority to accept or reject work and materials or to order any actions needed for State highway public safety or the preservation of STATE property, and to assure compliance with all provisions of the encroachment permit(s) issued to CITY and CITY's contractor. 3. To pay fifty percent (50%) of the total cost of constructing, operating and maintaining the IMPROVEMENTS, but in no event more than seven hundred and fifty thousand dollars ($750,000.00). STATE will deposit with CITY, within twenty five (25) days of receipt of c District Agreement No. 12-304 billing therefore (which billing will be forwarded fifteen (15) days prior to CITY's bid advertising date of a construction contract for PROJECT), a sum equal to one third of the STATE's fair share as determined by CITY, but in no event more than two hundred and fifty thousand dollars ($250,000.00). STATE shall deposit an additional one third of the STATE's fair share within sixty (60) days after the initial payment to CITY. STATE shall deposit the remaining two hundred and fifty thousand dollars ($250,000.00) within one thirty (30) days after the completion of PROJECT and IMPROVEMENTS. SECTION III IT IS MUTUALLY AGREED: 1. All obligations of STATE under the terms of this Agreement are subject to the appropriation of the resources by the Legislature and the allocation of resources by the California Transportation Commission. 2. Construction by CITY of IMPROVEMENTS referred to herein, which lie within the STATE highway right of way or affect STATE facilities, shall not be commenced until an encroachment permit has been issued by STATE to CITY authorizing such work. 3. CITY shall obtain the aforesaid encroachment permit through the office of State District Permit Engineer. Receipt by CITY of the approved encroachment permit shall constitute CITY authorization from STATE to proceed with work to be performed by CITY or CITY representatives within STATE rights of way or which affects STATE facilities, pursuant to work covered by this agreement. CITY authorization to proceed with said work shall be contingent on CITY compliance with all provisions contained within the encroachment permit. 4. CITY's construction contractor shall also be required to obtain an encroachment permit from STATE prior to commencing any work within STATE rights of way or which affects STATE facilities. The application by CITY contractor for said encroachment permit shall be made through the office of State District Permit Engineer and shall include proof said 4 District Agreement No. 12-304 contractor has payment and performance surety bonds covering construction of PROJECT and IMPROVEMENTS. 5. In the construction of the work, said representatives of CITY and STATE will cooperate and consult with each other, and all work within STATE's right of way shall be accomplished to the satisfaction of STATE's representative. 6. If existing public and/or private utilities conflict with the construction of IMPROVEMENTS, CITY will make all necessary arrangements with the owners of such utilities for their protection, relocation or removal. CITY will inspect the protection, relocation or removal of such facilities. If there are costs of such protection, relocation, or removal which STATE and CITY must legally pay, the total cost will be borne by CITY. If any protection, relocation, or removal of utilities is required, such work shall be performed in accordance with STATE policy and procedure. CITY shall require any utility owner performing relocation work in STATE's right of way to obtain a STATE encroachment permit prior to the performance of said relocation work. 7. Upon completion of construction of IMPROVEMENTS to the satisfaction of the STATE representative, CITY or CITY's assignee will accept control of and maintain, at it own cost and expense, those portions of IMPROVEMENTS lying within STATE's right of way. 8. Upon completion of all work under this Agreement, ownership and title to all materials, equipment and appurtenances installed within STATE's right of way will automatically be vested in STATE. No further agreement will be necessary to transfer ownership to STATE. 9. This Agreement is not intended to create duties or obligations to or rights in third parties to this Agreement or affect the legal liability of either party to the Agreement by imposing any standard of care with respect to the maintenance of State highways different from the standard of care imposed by law. 10. Neither STATE nor any officer 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 5 District Agreement No. 12-304 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 the State of California, all officers and employees from all claims, suits 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 CITY under or in connection with any work, authority or jurisdiction delegated to CITY under this Agreement. 11. 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 STATE under or in connection with any work, authority or jurisdiction delegated to STATE under this Agreement. It is understood and agreed that, pursuant to Government Code Section 895.4, STATE shall fully defend, indemnify and save harmless CITY from all claims, results 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 STATE under or in connection with any work, authority or jurisdiction delegated to STATE under this Agreement. 12. 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. 13. 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. 14. This Agreement shall terminate upon completion of construction of PROJECT and IMPROVEMENTS and upon final payment to CITY by STATE, pursuant to Section II, Article (3) of this Agreement, or on December 31, 2001, whichever is earlier in time. 34 District Agreement No. 12-304 15. IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized officers. STATE OF CALIFORNIA Department of Transportation JAMES W. van LOBEN SELS Director of Transportation M. WALT H. HAGEN District Division Chief Design/Construction Approved as to Form and Procedure: CITY OF NEWPORT BEACH John W. Hedges Mayor Attest: City Clerk Approved as to Form and Procedure: Attorney City Attorney Department of Transportation Certified as to Form and Procedure: Accounting Administrator Certified as to Funds: District Budget Manager 7