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Alcala, Abigail From:Mendoza, Steven Sent:Saturday, March 30, 2024 5:11 PM Cc:EMT - Directors; Nunez, Alvaro; Soto, Daniel Subject:Agenda Review Follow-Up Email for April 2, 2024 City Council Meeting Agenda Attachments:2023 Santa Ana Water Enterprise Financial Plan Summary 1.9.24 final.pdf Dear Mayor, Mayor Pro Tem, and Councilmembers, (BCC) There were some questions on the agenda that we wanted to share. The staff responses are reflected in italics and underlined. Agenda Item No. 14 - Bond Counsel and Disclosure Counsel for Potential Water Enterprise Revenue Bonds 1. What is the anticipated amount of a bond, should staff decide to consider recommending one in the future as described in the staff report? The bond issue could be $40 million or more. That’s based on the attached from the rate consultant indicating a need for $30.2 million of financing (see page 3), plus another $10 million to refund the 2014 bonds. We’re limited by the revenue available for debt service and the ability to construct improvements within 3 years. 2. Why did staff not seek competitive proposals for these services? The City’s existing contract with BBK dated November 2, 2021 includes the ability to provide bond counsel services (Exhibit C). Our Financial Advisor compared the proposed fee of $85,000 to recent debt issues for other cities and found the fee to be competitive. We need to retain bond counsel to help us structure a proposed financing. 3. How does staff plan to engage and educate the community on municipal bond issuances. As the bonds are for an Enterprise (business) function and do not require voter approval, I had no community education plans. These type of bonds were issued by the Water Enterprise in 2014 and in 2004. The 2019 Water Rate Study at https://www.santa-ana.org/documents/2019-water-recycled- water-sewer-rate-study-report/ indicated a need to issue debt for the planned capital projects. Additional information about agenda item no. 14 is attached. Agenda Item No. 13 - CCTV Inspection Services for the Sanitary Sewer System Since the City Council is not considering an adjustment to the Sanitation Services Users Charge at this time, will the users charge not changing have implications relating to the City’s ability to pay for the proposed CCTV services? The Closed Circuit TV (CCTV) service and contract is related to the sewer system/pipelines inspection and condition assessment. In a nutshell the service includes camera inspection of the inside of the sewer pipelines and all the documentation relating to the inspection. The inspection service is funded by the Sewer Enterprise and has no relation to the Sanitation Fee not being increased. The Sanitation Fee is for the cleaning of the City Streets and sidewalks, not related to the Sanitary Sewer. Agenda Item No. 19 - Early Direction for the Fiscal Year 2024-25 Budget Does there exist any overlap with ambulance services provided by the Orange County Fire Authority (OCFA) and those provided by the City, as well as with the reimbursements provided to the City by Public Provider Ground Emergency Medical Transportation Intergovernmental Transfer Program (PP-GEMT) and insurance companies? Further, what are the implications, if any, with how reimbursements are paid to the City and OCFA relating to this program? 1