Loading...
HomeMy WebLinkAboutS5 - Revised: MOU between the City of Newport Beach and the California Department of TransportationDATE: TO: FROM: CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER July 18, 1996 Supplemental Agenda Item #5 BY THE CITY COUNCIL CITY OF NEWPORT BEACH JUL 2 2 i! j Honorable Mayor and Members of the City Council Peggy Ducey, Assistant to City Manager �-- SUBJECT: REVISED: Memorandum of Understanding between the City of Newport Beach and the California Department of Transportation Please substitute this revised MOU in Agenda Item #5 for the draft MOU sent in your Council packet. Hoag Hospital and Caltrans comments on the draft MOU were not received until July 17th. Those changes are incorporated into the revised MOU. REVISED DRAFT- AGENDA ITEM #5 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 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. f. 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. g. 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 October 15, 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. Approved as to form: City Attorney Attest: City Clerk City Manager City of Newport Beach California Dept. of Transportation