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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />DECEMBER 19, 2011 <br />TITLE: <br />RESOLUTION ACCEPTING LETTER OF <br />COMMITMENT FOR THE DIAMOND PARK <br />MUTUAL WATER COMPANY <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Ordinance on 15t Reading <br />? Ordinance on 2nd Reading <br />? Implementing Resolution <br />? Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Adopt a resolution accepting a letter of commitment for Proposition 84 funding to construct public <br />water main improvements to serve the Diamond Park Mutual Water Company, and authorize <br />Public Works Agency staff to perform actions as required by the State Department of Public <br />Health. <br />DISCUSSION <br />The Diamond Park Mutual Water Company (DPMWC) is a privately owned water system that <br />provides domestic water service to approximately 90 residences in the city. In recent years, the <br />DPMWC system has failed to meet Title 22 drinking water standards. The well serving DPMWC <br />is contaminated with high levels of nitrates. The DPMWC does not have a regular certified <br />operator and cannot afford to purchase a water treatment system. Therefore, the State <br />Department of Public Health (DPH) together with DPMWC has requested that water main <br />improvements be constructed and service be provided by the City. <br />A resolution was adopted on July 18, 2011 allowing the City to accept a Proposition 84 grant to <br />finance construction costs for the public water system improvements (Exhibit 1). On August 16, <br />2011, the City received a letter of commitment from DPH stating that Proposition 84 funds have <br />been reserved for this project, and authorizing the City to begin construction of the water system <br />improvements (Exhibit 2). The project was advertised for bids and a construction contract was <br />awarded by City Council on November 28, 2011. The project is under construction. <br />City staff is proceeding with securing the required funding agreement from DPH. As a condition <br />for final approval of this agreement, the City must adopt a resolution selecting a legally <br />authorized representative to execute the following actions: <br />1. Sign the funding agreement. <br />2. Approve claims for reimbursement. <br />55A-1