HomeMy WebLinkAbout55C - RESO - WATER SRVS TO DIAMOND PARKREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JULY 18, 2011
TITLE:
RESOLUTION TO PROVIDE WATER
SERVICE TO FORMER CUSTOMERS
OF DIAMOND PARK MUTUAL
WATER COMPANY
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 15` Reading
? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Adopt a resolution to accept Proposition 84 grant funding, construct public water system
improvements and provide service to former customers of the Diamond Park Mutual Water
Company.
DISCUSSION
The Diamond Park Mutual Water Company (DPMWC) is a small private water system that serves
90 properties in the Valley Adams Neighborhood. The water company was founded in 1930.
In recent years, the DPMWC system has suffered from severe deficiencies, including water that
is high in nitrates and unsafe to drink. The company is non-functional in all areas, including
financial, technical, operational and managerial. Also, 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 the DPMWC are
requesting that water service be provided by the City. To provide these services, water mains, fire
hydrants and meters must be constructed. The cost to construct these improvements is
approximately $1,000,000.
A resolution was adopted by the City on May 3, 2010 allowing the City to accept a State
Revolving Fund (SRF) grant to cover 80 percent of the construction costs for the public water
system improvements (Attachment 1). 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.
The DPH has recently learned that Proposition 84 grant funding is available. They have filed
another application on behalf of DPMWC for this funding, and thus another resolution is needed.
If successful, a Proposition 84 grant will pay for up to 100% of construction costs of the public
water system improvements. This funding will either be in lieu of, or in addition to, the funding
provided by the SRF grant.
55C-1
Resolution to Provide Water Service to
Former Customers of DPMWC
July 18, 2011
Page 2
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 Account (accounting unit 06617647 66301). The cost of construction will be
reimbursed to the City from the State grant, Proposition 84 grant and connection fees charged to
property owners.
APPROVED AS TO FUNDS AND ACCOUNTS:
Raul Godinez II Francisco Gutierrez
Executive Directo Executive Director
Public Works Agency Finance & Management Services Agency
RG/BI/Ic
Exhibit: Resolution
55C-2
Jxs (07/11 /11)
RESOLUTION NO. 2011-
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
water system 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 their 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 Proposition 84 grant that will cover up to 100% of the
construction costs.
Section 2. Should DPMWC be successful, the City of Santa Ana agrees to accept
the Proposition 84 grant and use the funds to cover the construction costs of public water
system improvements. The State has also applied for a State Revolving Fund (SRF) grant
for these improvements. The combined funds of these two grants will cover 100% of the
construction cost of the public water system improvements.
Resolution No. 2011-XXX
Page 1 of 3
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As (07/11/11)
Section 3. 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 4. 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 )2011.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Joseph Straka, Interim City Attorney
By:
Jose Sandoval
Chief Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN
NOT PRESENT
Councilmembers
Councilmembers
Resolution No. 2011-XXX
Page 2 of 3
55C-4
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CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Clerk of the Council, do hereby attest to and certify that the attached
Resolution No. 2011-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
Resolution No. 2011-XXX
Page 3 of 3
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