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Finance and Management Services <br />www.santa-ana.org/finance <br />Item # 14 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />April 2, 2024 <br />TOPIC: Bond Counsel and Disclosure Counsel Related to Water Revenue Bonds <br />AGENDA TITLE <br />Legal Services Agreement with Best Best & Krieger LLP for Bond Counsel and <br />Disclosure Counsel for Potential Water Enterprise Revenue Bond Issuance (Non- <br />General Fund) <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute an agreement with Best Best & Krieger LLP for <br />bond counsel and disclosure counsel services related to a potential water enterprise <br />revenue bond issuance for a not-to-exceed amount of $88,000 for a term expiring <br />September 30, 2025 (Agreement No. A-2024-XXX). <br />GOVERNMENT CODE §84308 APPLIES: Yes <br />DISCUSSION <br />The City’s 2019 Water Enterprise rate study indicated the future need to issue debt and <br />raise capital for improvements to the City’s water delivery system. Over the last several <br />years, the Water Enterprise has been making progress on improvements, such as well <br />rehabilitation, pump stations, and the Advanced Metering Infrastructure (AMI) project. <br />Following an updated analysis by the water rate study consultant, it has been <br />determined that at least $30 million in additional capital is needed to maintain the <br />delivery of vital water projects. <br />The water enterprise has existing revenue bonds issued in 2014, which refunded 2004 <br />bonds and provided additional capital for improvement projects. The potential 2024 <br />revenue bonds would likely refund the 2014 bonds and provide the additional capital. <br />In preparation of funding future improvements via a bond, the City is gathering a bond <br />team. Best Best & Krieger LLP (BBK)’s attorneys are experienced to provide the <br />services and have worked on past City bond issuances. The City’s Financial Advisor, <br />Urban Futures, Inc., has compared the proposed fees to recent bond issuances for <br />other agencies and found them to be competitive. If bonds are issued, BBK’s fees will <br />be paid from bond proceeds. If bonds are not issued, the Water Enterprise will be