Item 15 - Purchase of Real Property for Santa Ana Water Resources Elevated Tank

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Public Works Agency www.santa-ana.org/public-works Item # 15 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 15, 2022 TOPIC: Purchase of Real Property for Santa Ana Water Resources Elevated Tank AGENDA TITLE: Purchase and Sale Agreement of Real Property at 1415 French Street for Santa Ana Water Resources Elevated Tank Site (Non -General Fund) RECOMMENDED ACTION Authorize the City Manager to execute a purchase and sale agreement with Santa Ana Unified School District for the purchase of real property located at 1415 French Street (APN 398-151-01), in the amount of $781,000, plus normal closing costs and escrow fees, for a total amount not to exceed $860,000, subject to non -substantive changes approved by the City Manager and the City Attorney. DISCUSSION The Public Works Agency's Water Resources Division oversees and maintains the daily operations of the City's water distribution system. The water system is composed of approximately 480 miles of water main, 21 groundwater wells, seven pump stations, 10 reservoirs with a storage capacity of 49 million gallons, four pressure -regulating vaults (PRVs), and seven connection points with Metropolitan Water District of Southern California (MWD). Originally constructed in 1928, the City's elevated water storage tank (Elevated Tank) is a familiar Orange County historic landmark. The Elevated Tank is capable of holding up to 1 million gallons of potable water and helps maintain a consistent pressure range throughout the Low Pressure Zone found south of Interstate 5. As such, it is a critical component of the City's water system infrastructure. In 1917, the City entered into a 99-year lease with the Santa Ana Unified School District (SAUSD) for a portion of the property which now contains Davis Elementary School, and since 1928 has housed the Elevated Tank and related equipment. The lease expired in 2016, and the City and SAUSD have had ongoing discussions since that time on how to proceed. In a closed session meeting on October 19, 2021, the City Council directed staff to proceed with the negotiation for purchase of an approximately 14,412 square -foot portion of the property needed for the City's water system equipment.