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Public Works Agency <br />www.santa-ana.org/public-works <br />Item # 24 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />November 15, 2022 <br />TOPIC: Installment Sale Agreement for Well 32 Project <br />AGENDA TITLE <br />Adopt a Resolution Approving the Construction Installment Sale Agreement with the <br />California State Water Resources Control Board for Financing of the Well 32 Nitrate <br />Treatment Project (Non -General Fund) <br />RECOMMENDED ACTION <br />Adopt a Resolution approving the Construction Installment Sale Agreement (D2202003) <br />with the California State Water Resources Control Board for financing of the Well 32 <br />Nitrate Treatment Project, in an amount up to $6,249,105. <br />DISCUSSION <br />The Public Works Agency Water Resources Division oversees and maintains the daily <br />operations of the City's water and sanitary sewer systems. The water system is comprised <br />of approximately 480 miles of water main, 21 groundwater wells, seven pump stations, <br />10 reservoirs with a storage capacity of 49 million gallons, four pressure regulating <br />stations, and seven connection points to the Metropolitan Water District. The system has <br />an average daily demand of 30 million gallons from its roughly 45,000 service <br />connections. <br />In an effort to find cost-effective solutions to maintaining and improving the City's water <br />system infrastructure, the Water Resources Division has sought out funding mechanisms <br />such as the California State Water Resources Control Board's (Water Board) Drinking <br />Water State Revolving Fund (SRF) (Exhibit 1). The SRF assists public water systems in <br />financing the cost of drinking water infrastructure projects needed to achieve or maintain <br />compliance with Safe Drinking Water Act (SDWA) requirements. Approval of the <br />agreement (Exhibit 2) will allow the City to complete projects that may otherwise be <br />deferred due to insufficient fund balances. <br />The project will rehabilitate Well 32, located in Morrison Park, which has been inactive for <br />over 15 years due to low operating efficiencies and nitrate levels above the state <br />threshold. The Project will construct approximately 3,600 feet of new pipeline to convey <br />the well's flow to the Garthe Reservoir where the water will be blended with other water <br />sources to reduce the nitrate levels to well below the state threshold for drinking water. It <br />