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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />MAY 3, 2010 <br />CLERK OF COUNCIL USE ONLY: <br />TITLE: APPROVED <br />RESOLUTION TO PROVIDE WATER ❑ As Recommended <br />SERVICE TO FORMER CUSTOMERS OF ❑ As Amended <br />THE CATALINA STREET PUMP OWNERS El El on 1St Reading <br />❑ Ordinance on 2nd Reading <br />ASSOCIATION ❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />/,X '% ,�_ FILE NUMBER <br />CITY MANAGER <br />RECOMMENDED ACTION <br />Adopt a resolution to accept State grant funding, construct public water system improvements and <br />provide service to former customers of the Catalina Street Pump Owners Association. <br />DISCUSSION <br />The Catalina Street Pump Owners Association ( CSPOA) is a small private water system that serves <br />approximately 54 properties located on Roosevelt Street west of Euclid Avenue. In recent years, the <br />CSPOA system has failed to meet Title 22 drinking water standards. The well serving CSPOA is <br />contaminated with uranium and the Association does not have a regular certified operator and <br />cannot afford to purchase a water treatment system. <br />The State Department of Public Health (DPH) and the Treasurer for CSPOA are now requesting <br />water service to be provided by the City of Santa Ana. In order for service to be provided, public <br />water system services and meters must be constructed at each parcel. The cost to construct these <br />improvements is approximately $120,000. <br />The DPH has filed an application on behalf of CSPOA for a State Revolving Fund grant that will <br />cover 80 percent of the cost to construct public water system improvements. A survey was <br />completed which showed the median household income to be below the State's $48,000 threshold <br />to receive grant funding. Given the results of this survey, the probability of receiving a grant is high. <br />In order to receive a grant, the City of Santa Ana must agree to accept a low interest loan from the <br />State Revolving Fund that will cover the remaining 20 percent of the construction costs of the public <br />water system improvements. Costs to offset this loan will be recovered through connection fees <br />collected from CSPOA customers <br />55C -1 <br />