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Agenda Item 20.

City Council Meeting

Meeting Date:	02/15/2022
FROM:	Bill Gallardo

Subject:

Approve Water Meter Shutdown Indemnity and Release Agreement with Buena Vida Maintenance Corporation

RECOMMENDATION

Approve Water Meter Shutdown Indemnity and Release Agreement with the Buena Vida Maintenance Corporation, authorizing the shutdown of Water Meter Nos. 2 and 3 within the Solana Neighborhood at Buena Vida Community.

BACKGROUND/DISCUSSION

In November 2018, residents of the Solana Neighborhood contacted the City of Brea, noting that their water bill was higher than anticipated, requested to have the water system become public and be maintained by the City. This 90-unit residential Solana Neighborhood is located within the Buena Vida Community development project, at the southwest corner of Valencia Avenue and N. Rose Drive. Serving this Neighborhood is a private water system consisting of four (4) separate 6-inch water meters with a monthly charge of $709.45 per month per meter.

Subsequently, a sub-committee made of current City Council members was created to assist in the resolution of the requests. This committee met with the Solana Neighborhood representatives and determined that the water system would not be converted to public, while requesting that the developer of the Solana Neighborhood, Pulte Home Company, LLC (Pulte), investigate the water system's capabilities to operate in the scenario that two water meters are shut down.

Pulte coordinated with the Engineer of Record of the Solana Neighborhood, Hunsaker & Associates, Inc., to acquire flow testing reports evaluating the water flows within the system in the scenario that the water meters at the intersection of Calle del Sol and Buena Vida Drive (Water Meter No. 2) and the intersection of La Entrada Drive and Buena Vida Drive (Water Meter No. 3) be shut down. See Attachment A for an exhibit showcasing the water meter locations. The completion of the reports and subsequent fire flow testing identified that the water system would exceed the fire flow requirements in the scenario. As such, the City and Pulte jointly determined that shutting down two of the four Solana Neighborhood water meters would be feasible, allowing for adequate flow for fire suppression and household water use to the residential units within the Solana Neighborhood after such shutdown.

City staff, in coordination with the City Attorney, subsequently worked to prepare an Agreement between the City of Brea and the Buena Vida Maintenance Corporation (Community Association), the homeowner's association for the Solana Neighborhood, to memorialize the Community Association's indemnity obligations and releases in favor of the City of Brea in exchange for the City's shutdown of two of the four Solana Neighborhood water meters. With the shutdown of the Water Meter Nos. 2 and 3, the Community Association would no longer be charged the monthly water rate for those two meters. Upon approval and execution of the Agreement, City staff will facilitate the water meter shutdown to coincide with the March 2022 water meter reading cycle. See Attachment B provided for the Water Meter Shutdown Indemnity and Release Agreement executed by Buena Vida Maintenance Corporation.

COMMISSION/COMMITTEE RECOMMENDATION

The Finance Committee reviewed staff’s recommendation at their February 8, 2021 meeting and recommended to proceed.

FISCAL IMPACT/SUMMARY

Developer of the Solana Neighborhood, Pulte, determined that shutting down two of the four Solana Neighborhood water meters would be feasible, allowing for adequate flow for fire suppression and household water use to the residential units within the Solana Neighborhood. Shutting down two 6-inch meters would yield $1,418.90 per month, or $17,026.80 per year, of reduction in revenues to the Water Fund (Fund 420). There is no General Fund impact.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Ryan Chapman, P.E., Principal Engineer
Concurrence: Michael Ho, P.E., Acting Director of Public Works

Attachments
Attachment A - Exhibit
Attachment B - Agreement