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<br /> <br /> <br /> <br /> REQUEST FOR <br /> <br /> COUNCIL ACTION <br /> <br /> CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: <br /> <br /> DECEMBER 19, 2011 <br /> TITLE: APPROVED <br /> RESOLUTION ACCEPTING LETTER OF ? As Recommended <br /> COMMITMENT FOR THE DIAMOND PARK ? Or Amended <br /> MUTUAL WATER COMPANY ? Ordinance on 2nd Reading <br /> ? Implementing Resolution <br /> ? Set Public Hearing For <br /> CONTINUED TO <br /> <br /> FILE NUMBER <br /> CITY MANAGER <br /> <br /> RECOMMENDED ACTION <br /> <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 /> <br /> DISCUSSION <br /> <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 /> <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 /> <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 /> <br /> 1. Sign the funding agreement. <br /> 2. Approve claims for reimbursement. <br /> <br /> <br /> 55A-1 <br />