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HomeMy WebLinkAboutC-3099 - Memorandum of Understanding, Methane Gas Mitigation System, Hoag HospitalCOOPERATIVE AGREEMENT This AGREEMENT entered into on September 1, 1998, 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 • f 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 construct 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 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. 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. 2 IV. 0 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. OPERATION AND MAINTENANCE OF PROJECT. A. Once PROJECT is constructed and 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 shall either contract with outside agency or shall have in- house staff qualified in the operation and maintenance of PROJECT, and shall oversee daily operation of PROJECT and provide routine as well as long -term maintenance and repairs. HOSPITAL shall submit to CITY copies of reports required by the South Coast Air Quality Management District related to the operation and maintenance of the PROJECT. C. HOSPITAL's fair share of total PROJECT cost shall include the annual maintenance, operational and repair costs, documented to CITY on an annual basis. D. Methane Gas produced by PROJECT may have a monetary value if it can be used by HOSPITAL to generate energy and therefore defray HOSPITAL overall energy costs. HOSPITAL shall provide on an annual basis the amount of usable gas produced by PROJECT, and its equivalent dollar value based on commercially equivalent rates. These rates shall be determined on January 1 of each year and based upon the average rates of the previous year. E. HOSPITAL'S fair share of PROJECT cost shall be offset by the calculated value of the methane gas used for energy. 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 required permits and approvals. B. Upon receipt of applicable City permits as may be required, HOSPITAL may augment or modify PROJECT to accommodate future HOSPITAL development, as described in the DEVELOPMENT AGREEMENT between the City of Newport Beach and Hoag Memorial Hospital Presbyterian (Ordinance # 94 -8), with allowed modifications to include, but not limited to additional connections to PROJECT from existing and future HOSPITAL development. The CITY may request, and HOSPITAL will not unreasonably deny requests, to add additional venting systems, 3 extraction systems, or pipes originating outside of HOSPITAL property to PROJECT to help resolve methane gas problems in the immediate vicinity of PROJECT, provided that said modifications shall not be required by development or redevelopment of property outside of HOSPITAL property. Development or redevelopment does not include public infrastructure projects. Said modifications to PROJECT by HOSPITAL and CITY shall not be made in the event modifications may result in negative impacts to PROJECT gas collection efficiency, both on and off HOSPITAL property, without adequate mitigation. Adequate mitigation may include, but shall not be limited to, additional hardware to the PROJECT. In the event modifications to PROJECT are required, associated costs shall be borne solely by the party responsible for the modifications. HOSPITAL shall at all times maintain PROJECT at optimum efficiency of its intended purpose of minimizing to the maximum extent feasible surface migration of subsurface soil gases within the PROJECT area. V. PROJECT COST AND REIMBURSEMENT PROCEDURES. A HOSPITAL shall bid PROJECT. HOSPITAL shall also bid the cost to operate and maintain PROJECT. B STATE's fair share of the cost of PROJECT, described in the CITY /STATE AGREEMENT, shall be fifty percent (50 9/o) 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. CITY agrees to reimburse HOSPITAL for PROJECT expenditures incurred by HOSPITAL for construction of PROJECT as follows: 1. HOSPITAL shall submit invoices for all design and construction costs incurred. 2. CITY shall have forty-five days to review and reimburse HOSPITAL for the submitted invoices. VII. ENTRY BY CITY. A. HOSPITAL hereby agrees that CITY shall have the right, during normal business hours and in the accompaniment of a representative of HOSPITAL, 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 the right to immediate access to PROJECT in the event that CITY deems there is a risk to public health and safety by PROJECT. F1 0 0 C. HOSPITAL agrees to notify CITY immediately if operation of PROJECT is compromised, or if at any time, PROJECT is not operating for a period of time that might cause a public health and safety risk. VIII. 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 in the defense of the action and then shall share equally all cost and expenses reasonably incurred in the defense of the claim or action. IX. INSURANCE. A. Insurance is to be placed with insurers with a Best's rating of no less than A: VII and insurers must be a California Admitted Insurance Company. Upon request, HOSPITAL shall furnish City with certificates of insurance and with original endorsements effecting coverage required by this Agreement. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf, on forms provided by City. City reserves the right to require complete, certified copies of all required insurance policies, at any time. 5 • • HOSPITAL shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by HOSPITAL, agents, representatives, employees or subcontractors. B. MINIMUM SCOPE OF INSURANCE Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage "occurrence" form number CG 0001 (Edition 11/85) or Insurance Services Office form number GL 0002 (Edition 1/73) covering Comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability. 2. Workers' Compensation insurance as required by the Labor Code of the State of California and Employers Liability insurance. C. MINIMUM LIMITS OF INSURANCE Coverage limits shall be no less than: 1. General Liability: $1 million combined single limit per occurrence for bodily injury, personal injury and property damage. If Commercial Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Workers' Compensation and Employers Liability: Workers' compensation limits as required by the Labor Code of the State of California and Employers Liability. D. DEDUCTIBLES AND SELF- INSURED RETENTIONS Any deductibles or self - insured retentions must be declared to and . approved by City, approval of which will not be unreasonably withheld. E. OTHER INSURANCE PROVISIONS: The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability 0 The coverage shall contain no special limitations on the scope of protection afforded to City, its officers, officials, employees or volunteers. For acts deemed the liability of HOSPITAL, HOSPITAL's insurance coverage shall be primary insurance and/or primary source of recovery as respects City, its officers, officials, employees and volunteers. Any insurance or self- insurance maintained by City, its officers, officials, employees and volunteers shall be excess of the HOSPITAL's insurance and shall not contribute with it. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its officers, officials, employees and volunteers. HOSPITAL's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. The insurance afforded by the policy for contractual liability shall include liability assumed by HOSPITAL under the indemnification /hold harmless provision contained in this Agreement. 2. Workers' Compensation and Employers Liability Coverage The insurer shall agree to waive all rights of subrogation against City, its officers, officials, employees and volunteers for losses arising from work performed by HOSPITAL for City. 7 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 BY: ��k O� BY: President City Manager yy� Ala Attest: c , � �' / / ala City Clerky �+u Foa'� C°-3 0 99 01;s 5 81 12 -ORA -1 KP 31.98/32.77 12222 - 07410K 1; F� f r Hazardous Gas Remediation At Route 1 and between Route 55 and Superior Ave. District Agreement No. 12-304 COOPERATIVE AGREEMENT This AGREEMENT entered into on 19 96 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 0 District Agreement No. 12 -304 1. STATE and CITY , pursuant to Street and Highways 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 remediation system that will only relieve gas seepage along and related to the 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 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. 1 District Agreement No. 12 -304 5. Upon completion and acceptance of the PROJECT, to furnish STATE a complete set of full-sized fihn positive reproducible As -Built plans for IMPROVEMENTS and all relevant connections with PROJECT. 6. To invoice STATE for STATE's fair share of the cost of IMPROVEMENTS which shall be fifty percent (50 %) of the total cost of constructing, operating and maintaining 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 or copy those records and accounts for audit purposes. 8. To obtain separate agreements with both Hoag Hospital and the Balboa Cove Homeowners Association indemnifying STATE from any liability resulting from construction, operation, and maintenance of PROJECT. 1. To issue, at no cost to CITY and CITY's contractor, the necessary encroachment permits for required work within the STATE's highway 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. 2 District Agreement No. 12 -304 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). STATE will deposit with CITY within twenty five (25) days of receipt of 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 STATE's fair share as determined by CITY, but in no event more than two hundred and fifty thousand dollars ($250,000). STATE shall deposit an additional one third of 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) within thirty (30) days after the completion of PROJECT and IMPROVEMENTS. u 1 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 resource by the California Transportation Commission. 2. Construction by CITY of IMPROVEMENTS referred to herein, which lie within 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. 3 • District Agreement No. 12 -304 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 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 home 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 assignees will accept control of and maintain, at its own costs 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. 4 District Agreement No. 12 -304 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 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 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 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 Parry, 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. R District Agreement No. 12 -* 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. ,3 15 District Agreement No. 12-304 IN WITNESS WHEREOF, the parties have executed this Agreement by their dulb-13 authorized officers. STATE OF CALIFORNIA Department of Transportation JAMES W. van LOBEN SELS Director of Transportation WALT H. HXGEN District Division Chief Design/ Construction Approved as to Form and Procedure: Attorney Department of Transportation Certified as to Form and Procedure: �') Accounting Administrator Certified as to Funds: District Budget Manager 7 CITY OF Newport Beach BY: Mayor Attest:�%,,,.� , City Clerk Approved as to Form and Procedure: -�a('04 City Attorney j � -moo y 9 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE CALIFORNIA DEPARTMENT OF TRANSPORTATION The City of Newport Beach (City) and the California Department of Transportation (Caltrans) have entered into this Memorandum of Understanding (MOU) on the W% day of 1996, based upon the following: a. There is a natural gas field underlying the West Newport Beach area. Methane and hydrogen sulfide gas from the field rises to the surface in the area around Balboa Coves, Hoag Hospital and along the Pacific Coast Highway. b. The City and the State of California have cooperated in the past to mitigate this gas hazard by constructing various gas venting, collection and disposal systems, the most recent constructed in 1978 by the City and Caltrans on the State highway right -of -way known as the Cagney Tract. The Cagney tract system proved successful for many years in reducing a substantial part of the gas problem. c. The Cagney Tract System includes a gas extraction, collection and flare system that connects to deep wells located on the Cagney Tract property and venting pipes that crossed the Pacific Coast Highway. In 1984 Hoag Hospital purchased the Cagney Tract from Caltrans and assumed operation of the gas extraction and flare system. d. Gas seepage around the Balboa Coves /Hoag Hospital area has worsened in recent years, with methane and hydrogen sulfide concentrations at some times exceeding safe levels in some locations. The City has closely monitored the gas levels to ensure that the safety of the public is protected. e. To further mitigate the gas hazard, the City, in cooperation with the Orange County Sanitation District, constructed a perforated pipe gas venting line along the south side of Pacific Coast Highway and connected it to the gas mitigation system now operated by Hoag Hospital utilizing an existing venting pipe crossing PCH. This pipe was also found to be disconnected and was reconnected to this system. Following the hook -up of all venting pipes to the existing system, gas concentrations declined from 88 -99% in sampled locations. Though the gas hazard was significantly reduced, the current extraction and flare system is not capable of accommodating the increased gas load. To further mitigate this problem, the existing gas extraction and mitigation system must be upgraded and expanded to accommodate the increased gas load. f. The parties agree that the current gas hazard is significant enough to warrant Caltrans and the City to cooperate on improving the gas mitigation system. THE CITY AND CALTRANS AGREE AS FOLLOWS: 1. Caltrans agrees to pursue programming through the California Transportation Commission to fund a portion of the proposed methane gas mitigation system for the West Newport natural gas reservoir, in cooperation with the other property owners in the area. The gas mitigation system will include the components necessary to collect and combust the gas. The final approved system will be designed to meet air quality requirements imposed by AQMD as well as any other requirements imposed by other regulatory agencies, including the State Department of Conservation. 2. Upon the approval of the California Transportation Commission, Caltrans will fund up to 50% of the total cost of construction, operation, and maintenance of the gas mitigation system, up to a maximum total cost of $750,000. Caltrans' financial contribution to this system will satisfy their obligation for the operation of the mitigation system for the next twenty years. 3. Caltrans funding will finance only the system components that will remediate the gas seepage along the Pacific Coast Highway. Caltrans will not fund any costs associated with Hoag Hospital gas utilization for power generation, nor any remediation necessary for Hoag Hospital to develop the lower campus. 4. The City agrees to waive all in -house costs associated with the project, including permit, plan check, and inspection fees. The City will not waive fees that are ultimately paid to outside agencies or organizations. 5. The City will not request reimbursement for any professional services or system components already constructed, including the venting pipes constructed along south Pacific Coast Highway. 6. The City will act as the lead agency for this project, to coordinate the responsibilities of all affected property owners, act as the financial clearinghouse, and provide overall administration of the project. The City will waive any indirect administrative charges associated with the obligation of serving as the project administrator. 7. The City and Caltrans will adopt a more comprehensive Cooperative Agreement, consistent with this MOU, on or before November 1, 1996, that will detail actual financial and administrative responsibilities and procedures for the project. 8. The City will also pursue agreements with the other participating property owners, including Hoag Hospital, Balboa Coves, and the commercial properties along PCH, that will specify their responsibilities in this project. 9. The City and Caltrans will pursue other potential solutions to the gas hazard including the possibility that an unidentified abandoned well located under Pacific Coast Highway could be the source of the hazardous gases. This investigation will not unduly delay the proposed mitigation plan. 10. Upon execution of this MOU, the City shall request the author of SB 1410 to withdraw that bill from consideration during the 1996 legislative session. it anaer City of Newport Beach C iforni t. of Transportation