HomeMy WebLinkAbout55B - DIAMOND APKR MUTAL WATER COREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
MAY 3, 2010
TITLE:
RESOLUTION TO PROVIDE WATER
SERVICE TO FORMER CUSTOMERS
OF THE DIAMOND PARK MUTUAL
WATER COMPANY .;
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1s` Reading
❑ Ordinance on 2ntl Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Adopt a resolution to accept State grant funding, construct public water system improvements
and provide service to former customers of the Diamond Park Mutual Water Company.
DISCUSSION
Diamond Park Mutual Water Company ( DPMWC) is a small private water system that serves
approximately 90 properties in the Valley Adams Neighborhood. The water company was
founded in 1930.
In recent years, the DPMWC system has suffered from many severe deficiencies, including the
following:
• The water is high in nitrates and is unsafe to drink.
• The private water company is nonfunctional in all areas, including financial, technical,
operational, and managerial.
• Frequent water system leaks and equipment failures cause the water service to be unreliable.
The State Department of Public Health (DPH) and the residents served by DPMWC are now
requesting that water service be provided by the City. For this to occur, public water system
improvements (water mains, fire hydrants, and meters) must be constructed. The cost to
construct these improvements is approximately $1,000,000.
The DPH has filed an application on behalf of DPMWC for a State Revolving Fund grant that will
cover 80 percent of the cost to construct the public water system improvements. A survey was
completed which showed the median household income to be below $28,000 for this area. Given
the results of this survey, the probability of receiving a grant is high.
55B -1
Resolution to Provide Water Service to
Former Customers of DPMWC
May 3, 2010
Page 2
In order to receive a grant, the City must agree to accept a low interest loan from the State
Revolving Fund that will cover the remaining 20 percent of the construction costs of the public
water system improvements. Costs to offset this loan will be recovered through connection fees
collected from DPMWC customers.
ENVIRONMENTAL IMPACT
A Notice of Exemption and Statutory Exemption (ER# 2010 -065) has been prepared for this project.
FISCAL IMPACT
Funds for construction of the water system improvements are available in the Water Capital
Construction program (accounting unit 06617647 - 66220). Construction costs will be reimbursed to
the City from the State grant and connection fees charged to property owners.
r—
Raul Godinez II
Executive Director
Public Works Agency
RG /RB /mz
Exhibit: 1. Resolution
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez
Executive Director
Finance & Management Services Agency
Jxs (04/05/10)
RESOLUTION NO. 2010-
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA TO ACCEPT STATE GRANT
FUNDING, CONSTRUCT PUBLIC WATER SYSTEM
IMPROVEMENTS AND PROVIDE SERVICE TO
FORMER CUSTOMERS OF DIAMOND PARK MUTUAL
WATER COMPANY
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana finds, determines and
declares as follows:
A. The Diamond Park Mutual Water Company ( DPMWC) is a privately
owned mutual water company that provides domestic water service to
approximately 90 residences in the City of Santa Ana.
B. The well serving DPMWC is contaminated with nitrates and does not meet
Title 22 drinking water standards. The water system infrastructure
(pipelines, well, and tank) is obsolete and fails frequently, resulting in
water outages to DPMWC customers.
C. The Board of Directors of DPMWC has by resolution declared intent to
cease operations and direct their customers to connect to the City's water
system.
D. The cost to construct the public water system improvements required to
serve DPMWC is estimated at approximately $1,000,000.
E. The State of California Department of Public Health has filed an
application on behalf of DPMWC for a State Revolving Fund grant that will
cover 80% of the construction costs.
Section 2. Should DPMWC be awarded the State Funds, the City of Santa Ana
agrees to accept the State Revolving Fund grant and use the grant funds to cover 80%
of the construction costs of public water system improvements.
Section 3. Should DPMWC be awarded the State Funds, the City of Santa Ana
agrees to accept and repay a State Revolving Fund loan in an amount that will cover
the remaining 20% of the construction costs of public water system improvements.
Costs to offset this loan will be recovered through connection fees collected from
DPMWC customers.
Resolution No. 2010 -XXX
Page 1 of 3
l : J
Section 4. Upon completion of the public water system improvements, the City
of Santa Ana will make available water service to DPMWC customers, contingent upon
each customer paying all required fees and complying with city codes and regulations
for service.
Section 5. This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote
adopting this Resolution.
ADOPTED this day of
APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
Jose Sandoval
Chief Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
Resolution No. 2010 -XXX
Page 2 of 3
2010.
Miguel A. Pulido
Mayor
55B -4
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Clerk of the Council, do hereby attest to and certify that the attached
Resolution No. 2010 -XXX to be the original resolution adopted by the City Council of
the City of Santa Ana on
Date:
Clerk of the Council
City of Santa Ana
55B -5
Resolution No. 2010 -XXX
Page 3 of 3
6,