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5.4 Right of Way As indicated in the Preliminary Plan QIhibit B pipelines for the Project are proposed to be installed within the public right-of-way of COSTA MESA. In order to reduce Project costs, provided that a request is in compliance with all permits and regulatory approvals, COSTA MESA shall allow the Project Facilities or portion thereof (including the aforementioned pipelines) to be constructed, operated, and maintained within its respective right of way at no additional cost. 5.5 Construction In order to reduce Project costs, COSTA MESA shall waive any costs or fees with respect to the permits issued by it in furtherance of the Project, The terms and conditions of the permits shall be consistent with this Agreement, and in the case of a conflict, the terms and conditions of this Agreement shall control. Upon receipt of notification that the Facilities or separately constructed portions thereof have been substantially completed, COSTA MESA shall have its Project Representative conduct a walk-through to promptly review the improvements and provide any comments as to any portion of the Facilities not on OCFCD, COUNTY and/or JWA right-of-way. Upon satisfaction of any and all the comments or items, COSTA MESA shall have its Project Representative provide written approval to SANTA ANA that said Facility components have been constructed in accordance with the Approved Plans or otherwise acceptable. Said notice shall be deemed COSTA MESA'S acceptance of ownership and maintenance responsibility for the portions of the Facilities not on OCFCD, COUNTY and/or JWA right-of-way. 5.6 Contribution 5.6.1 Within forty (40) days of the execution of this Agreement, COSTA MESA shall deposit a lump sum amount of SIX -HUNDRED THOUSAND DOLLARS AND 00A00 ($600,000.00), as indicated in Exhibit C2, into the Project Fimd Account, COSTA MESA has the option to construct a segment of the force main in conjunction with one of their construction contracts; in this case, costs expended to constrict this portion shall off -set their financial contribution as established herein; in which their portion of the $600,000 shall be used. SANTA ANA shall advance COSTA MESA, under separate agreement, the $600,000 and any additional funds required for the construction of a portion of the force main with one of their construction contracts. COSTA MESA shall reimburse SANTA ANA as stipulated per their agreement. 5.7 Operation and Maintenance 5.7.1 Upon COSTA MESA acceptance of certain Facility pipeline and appurtenant components, COSTA MESA or its contractor shall perform the O&M for said improvements with all expenses and costs reimbursed from an O&M Fund, as specified in Section 3.7.3 or Reserve Fund. The Facilities shall be operated and maintained in accordance with the terms as set forth in the O&M Manual, COSTA MESA shall ensure any of its contractors performing O&M on the Facilities abide by the Insurance Requirements as specified in Exhibit G (Insurance, Bonds, and Warranties), and name each Party and JWA as an additional insured, and Santa Ana -Delhi Channel Diversion Project Agreement D15-013 Page 25 of 69 20C-31