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REQUEST FOR <br /> COUNCIL ACTION <br /> CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: <br /> MAY 3, 2010 <br /> TITLE: APPROVED <br /> RESOLUTION TO PROVIDE WATER ? As Recommended <br /> SERVICE TO FORMER CUSTOMERS OF ? As Amended <br /> THE CATALINA STREET PUMP OWNERS ? Ordinance on 1St Reading <br /> ? Ordinance on 2nd Reading <br /> ASSOCIATION ? Implementing Resolution <br /> ? Set Public Hearing For <br /> CONTINUED TO <br /> ' FILE NUMBER <br /> CITY MANAGER <br /> RECOMMENDED ACTION <br /> Adopt a resolution to accept State grant funding, construct public water system improvements and <br /> provide service to former customers of the Catalina Street Pump Owners Association. <br /> DISCUSSION <br /> The Catalina Street Pump Owners Association (CSPOA) is a small private water system that serves <br /> approximately 54 properties located on Roosevelt Street west of Euclid Avenue. In recent years, the <br /> CSPOA system has failed to meet Title 22 drinking water standards. The well serving CSPOA is <br /> contaminated with uranium and the Association does not have a regular certified operator and <br /> cannot afford to purchase a water treatment system. <br /> The State Department of Public Health (DPH) and the Treasurer for CSPOA are now requesting <br /> water service to be provided by the City of Santa Ana. In order for service to be provided, public <br /> water system services and meters must be constructed at each parcel. The cost to construct these <br /> improvements is approximately $120,000. <br /> The DPH has filed an application on behalf of CSPOA for a State Revolving Fund grant that will <br /> cover 80 percent of the cost to construct public water system improvements. A survey was <br /> completed which showed the median household income to be below the State's $48,000 threshold <br /> to receive grant funding. Given the results of this survey, the probability of receiving a grant is high. <br /> In order to receive a grant, the City of Santa Ana must agree to accept a low interest loan from the <br /> State Revolving Fund that will cover the remaining 20 percent of the construction costs of the public <br /> <br /> water system improvements. Costs to offset this loan will be recovered through connection fees <br /> collected from CSPOA customers <br /> 55C-1 <br /> <br />