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
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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.
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IV.
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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,
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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.
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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.
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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
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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.
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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
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Attest: c , � �' / / ala
City Clerky
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C°-3 0 99
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12 -ORA -1 KP 31.98/32.77
12222 - 07410K
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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
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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.
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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.
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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.
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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.
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• 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.
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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.
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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.
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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
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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