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10. Please briefly describe how the project will achieve the claimed benefits. The proposed project will construct a groundwater well with a pumping capacity of 2,500- 3,000 gpm or approximately 4,032 AFY. This increased groundwater pumping capacity will enable the City to reduce its reliance on imported water supplies supplied by MWD simply through the operation of the Flower Street Well. 11. Briefly describe how the community/area benefiting from this project is being impacted by the current drought. The City of Santa Ana relies on a water supply portfolio comprised of imported water received from MWD and groundwater pumped from the Orange County Groundwater Basin. In addition to the shortages in imported water supplies, the City of Santa Ana itself is experiencing Severe Drought conditions as per the U.S. Drought Monitor. The less -than - average levels of annual rainfall have led City water customers to become increasingly reliant on potable water sources. 12. How will this project alleviate the impacts described in your answer to Question 11? By increasing its groundwater pumping capacity, the proposed Flower St. Well project will allow the City of Santa Ana to be less reliant on imported water. Without the Flower St. Well project, the City of Santa Ana will continue to contribute to the demand for the limited and crucial supply of imported water that has already been severely compromised by drought in California. The ability to pump from a managed groundwater source will maintain a sustainable water supply and ensure a reduction in the reliance on imported water sources. 13. Please complete the following budget table for the project. (Identify funding sources in Question 15) BUDGET CATEGORY Grant Amount All Other Cost Total Cost (a) Project Administration (b) Land Purchase / Easement (C) Planning / Design / Engineering 600,000 600,000 / Environmental Documentation (d) Construction /Implementation 4,400,000 1,500,000 5,900,000 TOTAL COSTS 5,000,000 1,500,000 6,500,000 14. Please describe why state funding is needed for this project. If state funding is not secured, what will happen to the project? Award of this grant will allow the City to start implementation of this Project without further delay. The City of Santa Ana is in need of funding for construction of this Project to offset the cost to the City's residents. The City of Santa Ana's Median Household Income is $66,145 as compared to the Statewide MHI of $75,235. Any offset in cost to the City will significantly benefit the residents of Santa Ana. City Council 36 — 5 12/21/2021