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Jxs (12/02/11) <br />RESOLUTION NO. 2011- <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF <br />SANTA ANA TO ACCEPT A LETTER OF COMMITMENT <br />FOR THE DIAMOND PARK MUTUAL WATER COMPANY <br />BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS <br />FOLLOWS: <br />Section 1. The City Council of the City of Santa Ana finds, determines and <br />declares as follows: <br />A. The Diamond Park Mutual Water Company (DPMWC) is a privately <br />owned water system that provides domestic water service to <br />approximately 90 residences in the City of Santa Ana. <br />B. The well serving DPMWC is contaminated with nitrates and does not <br />meet Title 22 drinking water standards. The water system infrastructure <br />(pipelines, well, and tank) is obsolete and fails frequently, resulting in <br />water outages to DPMWC customers. <br />C. The Board of Directors of DPMWC has by resolution declared their intent <br />to cease operations and direct their customers to connect to the City's <br />water system. <br />D. The cost to construct the public water system improvements required to <br />serve DPMWC is estimated at approximately $978,026. <br />E. The State of California Department of Public Health has filed an <br />application on behalf of DPMWC for a Proposition 84 grant that will cover <br />up to 100% of the construction costs. <br />F. The City has received a Letter of Commitment (LOC) from the DPH <br />promising a grant in the amount of $1,121,727 to fund costs for this <br />project. <br />Section 2. The Council authorizes the Executive Director of Public Works to be <br />the legally authorized representative for the City of Santa Ana to execute the following <br />actions as required by the LOC: <br />A. Sign the funding agreement; <br />Exhibit 1 Resolution No. 2011-XXX <br />Page 1 of 3 <br />55A-3