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5.4 Right of Way <br />As indicated in the Preliminary Plan Exhibit B) pipelines for the Project are proposed to be <br />installed within the public right -of -way of COSTA MESA. In order to reduce Project costs, <br />provided that a request is in compliance with all permits and regulatory approvals, COSTA <br />MESA shall allow the Project Facilities or portion thereof (including the aforementioned <br />pipelines) to be constructed, operated, and maintained within its respective right of way at no <br />additional cost. <br />5.5 Construction <br />In order to reduce Project costs, COSTA MESA shall waive any costs or fees with respect to the <br />permits issued by it in furtherance of the Project. The terms and conditions of the permits shall <br />be consistent with this Agreement, and in the case of a conflict, the terms and conditions of this <br />Agreement shall control. <br />Upon receipt of notification that the Facilities or separately constructed portions thereof have <br />been substantially completed, COSTA MESA shall have its Project Representative conduct a <br />walls- through to promptly review the improvements and provide any comments as to any portion <br />of the Facilities not on OCFCD, COUNTY and/or JWA right -of -way. Upon satisfaction of any <br />and all the continents or items, COSTA MESA shall have its Project Representative provide <br />written approval to SANTA ANA that said Facility components have been constructed in <br />accordance with the Approved Plans or otherwise acceptable. Said notice shall be deemed <br />COSTA MESA'S acceptance of ownership and maintenance responsibility for the portions of <br />the Facilities not on OCFCD, COUNTY and/or JWA right -of -way. <br />5.6 Contribution <br />5.6.1 Within forty (40) days of the execution of this Agreement, COSTA MESA shall deposit <br />a lump sum amount of SIX - HUNDRED THOUSAND DOLLARS AND 00 /100 ($600,000.00), <br />as indicated in Exhibit C2, into the Project Fund Account. COSTA MESA has the option to <br />construct a segment of the force main in conjunction with one of their construction contracts; in <br />this case, costs expended to construct this portion shall off -set their financial contribution as <br />established herein; in which their portion of the $600,000 shall be used. SANTA ANA shall <br />advance COSTA MESA, under separate agreement, the $600,000 and any additional funds <br />required for the construction of a portion of the force main with one of their construction <br />contracts. COSTA MESA shall reimburse SANTA ANA as stipulated per their agreement. <br />5.7 Operation and Maintenance <br />5.7.1 Upon COSTA MESA acceptance of certain Facility pipeline and appurtenant <br />components, COSTA MESA or its contractor shall perform the O &M for said improvements <br />with all expenses and costs reimbursed from an O &M Fund, as specified in Section 3.7.3 or <br />Reserve Fund. The Facilities shall be operated and maintained in accordance with the terms as <br />set forth in the O &M Manual. COSTA MESA shall ensure any of its contractors performing <br />O &M on the Facilities abide by the Insurance Requirements as specified in Exhibit G <br />(Insurance, Bonds, and Warranties), and name each Party and JWA as an additional insured, and <br />Santa Ana -Delhi Channel Diversion Project Agreement D15 -013 <br />25G -29 <br />Page 25 of 74 <br />