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5� q,ntAC3� OCT 11 2019 Return ORIGINAL Executed Copy to COTC (M-30/TII) JG�� SERVICE AGREEMENT BY AND BETWEEN THE CITY OF SANTA ANA AND THE CITY OF TUSTIN REGARDING POTABLE WATER SERVICE FOR VARIOUS PARCELS OF UNINCORPORATED REAL PROPERTY A-2019-157 This Service Agreement ("Agreement") is entered into by and between the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("Santa Ana"), and the City of Tustin, a California municipal corporation C Tustin") (each referred to as "Party" and collectively referred to as the "Parties") on the effective date of the reorganization of "Island Parcels" involving the annexation of the "Island Parcels" to Santa Ana and detachment of same territory from the Municipal Water District of Orange County as specified in Section A below. RECTTALS A. As provided by the Cortese -Knox -Hertzberg Local Government Reorganization Act of 2000 (Gov. Code, §§ 56000 et seq.) and the Orange County Local Agency Formation Commission's ("OC LAFCO") policies and procedures, Santa Ana will submit to OC LAFCO an application to annex 57 parcels and detachment of the same parcels from the Municipal Water District of Orange County. The annexation collectively constitutes an island of unincorporated territory within Santa Ana's sphere of influence with Assessor's Parcel Numbers ("APNs") 396- 303-01 to -28, 396-304-01 to -11, 396-312-13, -14, and -15, 396-313-01 to -03, -06 to -11, and 396-314-01 to -06 ("Island Parcels") as shown on Exhibit A. B. Santa Ana is presently without the necessary water system infrastructure to directly provide Potable Water Services to the Island Parcels, but contemplates and fully intends to ensure that the Island Parcels receive adequate Potable Water Service consistent with the level of service contemplated by Santa Ana subsequent to the Annexation, including installation and completion of all necessary water system infrastructure and performance of all customer service functions ("Potable Water Service") following Santa Ana's annexation of the Island Parcels. C. Tustin maintains and operates water lines and facilities that provide Potable Water Services to all developed Island Parcels. D. Santa Ana and Tustin desire to enter into this Agreement, whereby Tustin will provide Potable Water Service to the Island Parcels. Tustin will to provide water service to the Island Parcels until such time Santa Ana has completed water system infrastructure to serve the entire Island Parcels. E. This Agreement constitutes a service agreement in which "[t]wo or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider." (Gov. Code, § 56133(e)(1)). 1 of 7