55C - CATALINA STREET PUMP OWNERS

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Jxs (04/05/10) RESOLUTION NO. 2010- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO ACCEPT STATE GRANT FUNDING, CONSTRUCT PUBLIC WATER SYSTEM IMPROVEMENTS AND PROVIDE SERVICE TO FORMER CUSTOMERS OF CATALINA STREET PUMP OWNERS ASSOCIATION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana finds, determines and declares as follows: A. The Catalina Street Pump Owners Association ("CSPOA") is a privately owned water system that provides domestic water service to approximately 54 residences in the City of Santa Ana. B. The well serving CSPOA is contaminated with uranium and does not meet Title 22 drinking water standards. The CSPOA does not have a regular certified operator and cannot afford to purchase a water treatment system. C. The Treasurer for CSPOA has declared his intent to cease operations and direct CSPOA customers to connect to the City's water system. D. The cost to construct the public water system improvements required to serve the current CSPOA customers is estimated at approximately $120,000. E. The State of California Department of Public Health has filed an application on behalf of CSPOA for the award of a State Revolving Fund grant that will cover 80% of the construction costs. Section 2. Should CSPOA be awarded the State Funds, the City of Santa Ana agrees to accept the State Revolving Fund grant and use the grant funds to cover 80% of the construction costs of public water system improvements. Section 3. Should CSPOA be awarded the State Funds, the City of Santa Ana agrees to accept and repay a State Revolving Fund loan in an amount that will cover the remaining 20% of the construction costs of public water system improvements. Costs to offset this loan will be recovered through connection fees collected from CSPOA customers. Resolution No. 2010-XXX Page 1 of 3 55C-3