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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JANUARY 16, 2018 <br />TITLE: <br />APPROVE PURCHASE AGREEMENT OF <br />VACANT LAND FOR FUTURE WATER <br />WELL FACILITY <br />(NONGENERAL FUND) <br />(STRATEGIC PLAN NO. 6, 1) <br />r - <br />J <br />CIkJ MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1B1 Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />1. Authorize the City Manager and Clerk of the Council to execute a purchase agreement for the <br />real property located at 651-657 E. Washington Avenue (APNs 398-150-02 and 398-152-16), <br />and goodwill, if any, with Pacific Legacy Real Estate & Investments, Inc., in an amount of <br />$1,083,750, subject to nonsubstantive changes approved by the City Manager and City <br />Attorney. <br />2. Approve an Appropriation Adjustment recognizing $1,083,750 from prior year fund balance in <br />the Water Utility revenue account, and appropriating the same into the Water Utility Capital <br />Projects expenditure account. <br />DISCUSSION <br />The City of Santa Ana Public Works Agency manages the Water Enterprise which is charged <br />with satisfying the water demands of the City's 340,000 -plus residents and businesses. On <br />average, the City provides about 31 million gallons of high quality potable water per day. The <br />Water Enterprise meets the water demands of the community primarily from two sources: <br />imported surface water and local groundwater. The majority of water supplied to the community <br />(about 75 percent) comes from local groundwater sources, which is less costly than the imported <br />surface water sources. To accomplish this, the City's Water Enterprise owns and operates 21 <br />active groundwater wells. <br />In an effort to plan for the continued efficiency and operability of the City's water systems and <br />supplies for future generations, the Public Works Agency has conducted and completed various <br />studies, including a Water System Master Plan, an Urban Water Management Plan, and a <br />computerized water system model. These studies allow the Public Works Agency to responsibly <br />plan for the future needs of the community and to plan water system infrastructure improvements <br />necessary to meet those needs. One of the primary needs identified is the replacement of older <br />ground water wells with new ones to retain groundwater source reliability. <br />20D-1 <br />