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 The water system infrastructure (pipelines, well, and tank) is obsolete and fails frequently, resulting in water outages to DPMWC customers.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