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Resolution to Provide Water Service to <br />Former Customers of DPMWC <br />May 3, 2010 <br />Page 2 <br />In order to receive a grant, the City must agree to accept a low interest loan from the State <br />Revolving Fund that will cover the remaining 20 percent of the construction costs of the public <br />water system improvements. Costs to offset this loan will be recovered through connection fees <br />collected from DPMWC customers. <br />ENVIRONMENTAL IMPACT <br />A Notice of Exemption and Statutory Exemption (ER# 2010 -065) has been prepared for this project. <br />FISCAL IMPACT <br />Funds for construction of the water system improvements are available in the Water Capital <br />Construction program (accounting unit 06617647 - 66220). Construction costs will be reimbursed to <br />the City from the State grant and connection fees charged to property owners. <br />r— <br />Raul Godinez II <br />Executive Director <br />Public Works Agency <br />RG /RB /mz <br />Exhibit: 1. Resolution <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />Francisco Gutierrez <br />Executive Director <br />Finance & Management Services Agency <br />