Agenda packet — Santa Ana City Council, June 4, 2024 (part 13 of 18)

City of Santa Ana, CA
Pavement Condition Index (PCI) Report - All Streets
Sorted by Func Class, PCI Order (0-100)
Street ID Sec ID ConcID Name From To Type Lanes Func Class Area ID Neighborhoods Length Width Area Insp. Date PCI PCT Load PCT Environment PCT Other 91320 9010 91320-9010 ALLEY N/O ORION S/O JUNIPER - 913 ALLEY E/O FAIRVIEW W/O MARINE MARINE ST AC/AC 2 O 95 - NON-NEIGHBORHOOD AREA 95 Alleys 153 20 2,140 3/31/22 38 50 47 4 91140 9010 91140-9010 ALLEY N/O JONQUIL S/O MEMORY - 9FARMERS DR ALLEY E/O FARMERS W/O I-5 FWY AC/AC 2 O 23 - FISHER PARK Alleys 966 30 23,601 3/22/24 38 57 42 1 90300 9060 90300-9060 ALLEY E/O HESPERIAN W/O BRISTO - CDS S/O ELM ST ELM ST AC/AC 2 O 39 - RIVERVIEW Alleys 227 20 3,908 4/4/24 38 30 64 6 90350 9020 90350-9020 ALLEY E/O MAIN W/O BUSH - 90350 15TH ST 16TH ST AC/AC 1 O 25 - FRENCH COURT Alleys 400 15 5,201 5/22/24 38 59 18 24 90760 9010 90760-9010 ALLEY N/O 17TH S/O 19TH - 90760 SHERRY LN CDS E/O SHERRY LN AC/AC 2 O 58 - MEREDITH PARKWOOD Alleys 587 20 11,202 1/11/24 39 74 26 1 90860 9030 90860-9030 ALLEY N/O 3RD S/O 4TH - 90860 SYCAMORE ST MAIN ST AC/AC 2 O 63 - DOWNTOWN Alleys 316 20 5,327 5/23/24 39 81 15 4 90050 9050 90050-9050 ALLEY E/O BRISTOL W/O BAKER - 900 CUBBON ST ALLEY N/O CUBBON S/O BROOK AC/AC 1 O 41 - PICO-LOWELL Alleys 163 15 1,668 5/21/24 40 26 38 36 90380 9020 90380-9020 ALLEY E/O MINNIE W/O RR - 90380 ALLEY N/O BORCHARD S/O WILSHIR ALLEY N/O WILSHIRE S/O MCFADDE AC/AC 2 O 51 - CORNERSTONE VILLAGE Alleys 493 20 7,046 5/21/24 41 92 8 0 91300 9025 91300-9025 ALLEY N/O MYRTLE S/O CHESTNUT - 9OAK ST AC-PCC TRANSITION AC/AC 2 O 09 - EASTSIDE Alleys 206 20 3,577 5/20/24 42 73 22 5 91435 9010 91435-9010 ALLEY N/O WAKEHAM S/O GRANT - 9 MINNIE ST ALLEY E/O MINNIE W/O RR AC/PCC 2 O 51 - CORNERSTONE VILLAGE Alleys 188 20 3,303 2/23/24 43 68 22 10 91300 9030 91300-9030 ALLEY N/O MYRTLE S/O CHESTNUT - 9AC-PCC TRANSITION HICKORY ST PCC 2 O 09 - EASTSIDE Alleys 185 20 3,529 5/20/24 45 84 16 0 90935 9010 90935-9010 ALLEY N/O BORCHARD S/O WILSHIR - MINNIE ST ALLEY E/O MINNIE W/O RR AC/AC 2 O 51 - CORNERSTONE VILLAGE Alleys 186 20 2,334 5/21/24 46 97 3 0 90640 9030 90640-9030 ALLEY E/O TOWNSEND W/O RAITT - 9MCFADDEN AV ALLEY N/O MCFADDEN S/O MONTA V AC/AC 2 O 40 - BELLA VISTA Alleys 406 20 5,264 5/16/24 47 49 51 0 90620 9040 90620-9040 ALLEY E/O SYCAMORE W/O MAIN - 9 5TH ST SANTA ANA BLVD PCC 2 O 63 - DOWNTOWN Alleys 310 18 4,292 5/23/24 48 81 11 9 90790 9020 90790-9020 ALLEY N/O 1ST S/O 2ND - 90790 ALLEY E/O CLARA W/O TOWNSEND CDS E/O ALLEY E/O CLARA W/O TO AC/AC 2 O 21 - ARTESIA PILAR Alleys 60 20 709 5/23/24 48 60 36 3 90050 9020 90050-9020 ALLEY E/O BRISTOL W/O BAKER - 900 HEMLOCK WY ALLEY N/O HEMLOCK S/O CENTRAL AC/AC 2 O ROSEWOOD BAKER OWNERS ASSOCIAT Alleys 180 20 2,512 5/15/24 49 66 24 10 90180 9010 90180-9010 ALLEY E/O EVERGREEN W/O STANDA ST GERTRUDE PL ST ANDREW PL PCC 2 O 12 - DELHI Alleys 990 20 17,091 3/27/24 54 87 11 2 90820 9025 90820-9025 ALLEY N/O 1ST S/O 5TH N - 90820 FIGUEROA ST BEWLEY ST AC/AC 1 O 26 - RIVERVIEW WEST Alleys 330 15 4,344 5/14/24 54 39 61 0 91270 9010 91270-9010 ALLEY N/O MCFADDEN S/O MONTA V TOWNSEND ST ALLEY E/O TOWNSEND W/O RAITT AC/AC 2 O 40 - BELLA VISTA Alleys 146 20 2,387 3/10/22 55 74 26 0 90150 9030 90150-9030 ALLEY E/O CYPRESS W/O ORANGE - 9 ALLEY N/O MCFADDEN S/O CUBBON CUBBON ST PCC 2 O 09 - EASTSIDE Alleys 433 20 7,913 5/23/24 55 81 12 7 91290 9020 91290-9020 ALLEY N/O MCFADDEN S/O WAKEHA ALLEY E/O STANDARD W/O MINNIE MINNIE ST AC/AC 2 O 51 - CORNERSTONE VILLAGE Alleys 198 20 3,075 2/23/24 56 82 18 0 91220 9010 91220-9010 ALLEY N/O MCFADDEN S/O CAMILE - HARBOR BLVD ALLEY E/O HARBOR W/O JACKSON AC/AC 2 O 42 - SANTA ANITA Alleys 380 20 5,219 4/5/24 56 27 43 30 90820 9060 90820-9060 ALLEY N/O 1ST S/O 5TH N - 90820 ALLEY E/O JACKSON W/O LAUREL LAUREL ST PCC 2 O 42 - SANTA ANITA Alleys 165 20 2,964 5/7/24 56 93 7 0 91500 9010 91500-9010 ALLEY N/O WILSHIRE S/O MCFADDE - STANDARD AV ALLEY E/O MINNIE W/O RR AC/AC 2 O 51 - CORNERSTONE VILLAGE Alleys 600 20 9,565 5/21/24 56 72 28 0 91250 9040 91250-9040 ALLEY N/O MCFADDEN S/O CUBBON CYPRESS AV ALLEY E/O CYPRESS W/O ORANGE PCC 2 O 09 - EASTSIDE Alleys 200 18 3,518 5/23/24 56 79 21 0 91250 9050 91250-9050 ALLEY N/O MCFADDEN S/O CUBBON ALLEY E/O CYPRESS W/O ORANGE ORANGE ST PCC 2 O 09 - EASTSIDE Alleys 200 18 3,359 5/23/24 56 77 19 4 91360 9010 91360-9010 ALLEY N/O SAINT ANDREW S/O EDI - GRAND AV LYON ST PCC 2 O 98 - NON-NEIGHBORHOOD AREA 98 Alleys 1,616 20 32,479 5/3/24 57 75 13 11 90545 9010 90545-9010 ALLEY E/O RR W/O GRAND - 90545 ALLEY N/O POMONA S/O EDINGER EDINGER AV AC/AC 2 O 98 - NON-NEIGHBORHOOD AREA 98 Alleys 454 20 7,080 5/9/24 58 66 34 0 91040 9010 91040-9010 ALLEY N/O FLORA S/O WARNER - 910 HALLADAY ST EVERGREEN ST PCC 2 O 12 - DELHI Alleys 630 15 8,345 5/17/24 58 91 9 0 90320 9020 90320-9020 ALLEY E/O LACY W/O GARFIELD - 903 SANTA ANA BLVD ALLEY N/O SANTA ANA BLVD S/O C AC/AC 2 O 06 - LACY Alleys 275 20 3,511 5/23/24 58 33 52 14 90900 9010 90900-9010 ALLEY N/O 5TH S/O HAZARD - 90900 FIGUEROA ST BEWLEY ST PCC 2 O 42 - SANTA ANITA Alleys 299 20 5,202 3/21/24 59 88 12 0 90900 9020 90900-9020 ALLEY N/O 5TH S/O HAZARD - 90900 BEWLEY ST GUNTHER ST PCC 2 O 42 - SANTA ANITA Alleys 304 20 5,470 3/21/24 60 71 9 20 90310 9010 90310-9010 ALLEY E/O JACKSON W/O LAUREL - 90ALLEY N/O 1ST S/O 5TH S ALLEY N/O 1ST S/O 5TH N PCC 2 O 42 - SANTA ANITA Alleys 1,055 20 20,315 5/7/24 60 62 19 19 91350 9020 91350-9020 ALLEY N/O POMONA S/O EDINGER - 9RITCHEY ST BOYD ST AC/AC 2 O 98 - NON-NEIGHBORHOOD AREA 98 Alleys 881 20 24,241 5/17/24 60 100 0 0 90350 9040 90350-9040 ALLEY E/O MAIN W/O BUSH - 90350 CDS S/O 18TH ST 18TH ST AC/AC 1 O 24 - SANTA ANA TRIANGLE Alleys 202 20 2,553 5/18/24 61 44 23 33 90810 9050 90810-9050 ALLEY N/O 1ST S/O 5TH S - 90810 ALLEY E/O JACKSON W/O LAUREL LAUREL ST PCC 2 O 42 - SANTA ANITA Alleys 165 20 2,883 3/25/22 62 66 34 0 90810 9060 90810-9060 ALLEY N/O 1ST S/O 5TH S - 90810 LAUREL ST ALLEY E/O LAUREL W/O SUSAN PCC 2 O 42 - SANTA ANITA Alleys 165 20 2,608 3/25/22 62 62 30 9 90150 9060 90150-9060 ALLEY E/O CYPRESS W/O ORANGE - 9 CAMILE ST MYRTLE ST PCC 2 O 09 - EASTSIDE Alleys 300 18 4,783 5/17/24 62 86 14 0 90150 9090 90150-9090 ALLEY E/O CYPRESS W/O ORANGE - 9 PINE ST WALNUT ST PCC 2 O 09 - EASTSIDE Alleys 370 18 5,803 5/17/24 62 92 8 0 90440 9040 90440-9040 ALLEY E/O ORANGE W/O MAPLE - 90 CHESTNUT AV ALLEY N/O CHESTNUT S/O PINE PCC 2 O 09 - EASTSIDE Alleys 177 20 3,377 5/17/24 62 75 20 5 90380 9010 90380-9010 ALLEY E/O MINNIE W/O RR - 90380 ALLEY N/O MADISON S/O BORCHARDALLEY N/O BORCHARD S/O WILSHIR AC/AC 2 O 51 - CORNERSTONE VILLAGE Alleys 478 20 6,899 5/21/24 62 80 20 0 90150 9010 90150-9010 ALLEY E/O CYPRESS W/O ORANGE - 9 OLD MCFADDEN AV CDS N/O OLD MCFADDEN AV PCC 2 O 47 - MADISON PARK Alleys 127 18 1,614 5/23/24 62 92 8 0 90710 9010 90710-9010 ALLEY E/O WRIGHT W/O MABURY W 17TH ST 18TH ST AC/AC 2 O 32 - PORTOLA PARK Alleys 332 20 3,791 1/8/24 63 69 30 2 91440 9080 91440-9080 ALLEY N/O WALNUT S/O 1ST - 91440 AC-PCC TRANSITION HALLADAY ST PCC 2 O 09 - EASTSIDE Alleys 269 20 4,461 5/20/24 63 81 10 9 90810 9020 90810-9020 ALLEY N/O 1ST S/O 5TH S - 90810 BEWLEY ST GUNTHER PL PCC 2 O 42 - SANTA ANITA Alleys 330 20 4,068 5/23/24 63 76 18 6 90380 9025 90380-9025 ALLEY E/O MINNIE W/O RR - 90380 MCFADDEN AV ALLEY N/O MCFADDEN S/O WAKEHA AC/AC 2 O 51 - CORNERSTONE VILLAGE Alleys 1,100 20 20,997 2/23/24 64 75 20 5 90750 9060 90750-9060 ALLEY N/O 17TH S/O 18TH - 90750 JEFFERSON PL BROADWAY PCC 1 O 02 - FLORAL PARK PCC 02 - Floral Park 554 15 8,529 5/18/24 64 86 11 3 90900 9030 90900-9030 ALLEY N/O 5TH S/O HAZARD - 90900 GUNTHER ST JACKSON ST PCC 2 O 42 - SANTA ANITA Alleys 304 20 5,478 3/21/24 65 87 13 0 90330 9010 90330-9010 ALLEY E/O LAUREL W/O SUSAN - 903 ALLEY N/O 1ST S/O 5TH S ALLEY N/O 1ST S/O 5TH N PCC 2 O 42 - SANTA ANITA Alleys 1,055 20 18,718 5/7/24 65 63 30 7 90150 9080 90150-9080 ALLEY E/O CYPRESS W/O ORANGE - 9 CHESTNUT AV PINE ST PCC 2 O 09 - EASTSIDE Alleys 343 18 5,666 5/17/24 65 80 8 12 90960 9030 90960-9030 ALLEY N/O CHESTNUT S/O PINE - 909 MAPLE ST OAK ST PCC 2 O 09 - EASTSIDE Alleys 348 20 6,069 5/17/24 65 75 22 2 90960 9070 90960-9070 ALLEY N/O CHESTNUT S/O PINE - 909 CEDAR ST STANDARD AV PCC 1 O 09 - EASTSIDE Alleys 405 16 6,015 5/17/24 65 88 7 5 91340 9090 91340-9090 ALLEY N/O PINE S/O WALNUT - 91340OAK ST HICKORY ST PCC 2 O 09 - EASTSIDE Alleys 392 20 7,352 5/17/24 65 79 13 8 90750 9080 90750-9080 ALLEY N/O 17TH S/O 18TH - 90750 MAIN ST ALLEY E/O MAIN W/O BUSH AC 2 O 24 - SANTA ANA TRIANGLE Alleys 168 20 2,889 5/18/24 65 0 100 0 90960 9050 90960-9050 ALLEY N/O CHESTNUT S/O PINE - 909 HICKORY ST HALLADAY ST PCC 2 O 09 - EASTSIDE Alleys 402 20 6,742 5/17/24 66 84 16 0 91340 9100 91340-9100 ALLEY N/O PINE S/O WALNUT - 91340HICKORY ST HALLADAY ST PCC 1 O 09 - EASTSIDE Alleys 402 17 6,377 5/17/24 66 83 8 8 90810 9070 90810-9070 ALLEY N/O 1ST S/O 5TH S - 90810 ALLEY E/O LAUREL W/O SUSAN SUSAN ST PCC 2 O 42 - SANTA ANITA Alleys 165 10 2,800 5/7/24 67 61 28 12 90150 9070 90150-9070 ALLEY E/O CYPRESS W/O ORANGE - 9 MYRTLE ST CHESTNUT AV PCC 2 O 09 - EASTSIDE Alleys 315 18 5,390 5/17/24 67 80 20 0 90150 9100 90150-9100 ALLEY E/O CYPRESS W/O ORANGE - 9 WALNUT ST 1ST ST PCC 2 O 09 - EASTSIDE Alleys 370 18 6,763 5/17/24 67 91 9 0 90250 9020 90250-9020 ALLEY E/O GARFIELD W/O POINSET - SANTA ANA BLVD CIVIC CENTER DR PCC 2 O 06 - LACY Alleys 480 20 7,804 5/20/24 67 89 9 3 90320 9030 90320-9030 ALLEY E/O LACY W/O GARFIELD - 903 CIVIC CENTER DR VANCE ST PCC 2 O 05 - FRENCH PARK Alleys 480 20 8,860 5/20/24 67 78 12 10 91440 9060 91440-9060 ALLEY N/O WALNUT S/O 1ST - 91440 OAK ST HICKORY ST PCC 2 O 09 - EASTSIDE Alleys 393 20 7,124 5/20/24 67 64 15 21 90880 9010 90880-9010 ALLEY N/O 4TH S/O 5TH - 90880 SPURGEON ST FRENCH ST PCC 2 O 06 - LACY Alleys 310 20 6,763 4/24/24 68 55 17 28 90820 9080 90820-9080 ALLEY N/O 1ST S/O 5TH N - 90820 ALLEY E/O LAUREL W/O SUSAN SUSAN ST PCC 2 O 42 - SANTA ANITA Alleys 165 20 2,795 5/7/24 68 68 15 17 90380 9005 90380-9005 ALLEY E/O MINNIE W/O RR - 90380 ALLEY N/O GLENWOOD S/O POMONAALLEY N/O POMONA S/O EDINGER PCC 2 O 98 - NON-NEIGHBORHOOD AREA 98 Alleys 404 25 10,353 5/17/24 69 53 32 15 90440 9080 90440-9080 ALLEY E/O ORANGE W/O MAPLE - 90 WALNUT ST 1ST ST PCC 1 O 09 - EASTSIDE Alleys 370 15 3,779 5/20/24 69 78 12 10 90750 9020 90750-9020 ALLEY N/O 17TH S/O 18TH - 90750 TOWNER ST CDS E/O TOWNER ST PCC 2 O 37 - WEST FLORAL PARK Alleys 114 20 2,275 3/7/22 70 73 27 0 90150 9040 90150-9040 ALLEY E/O CYPRESS W/O ORANGE - 9 CDS S/O BISHOP ST BISHOP ST PCC 2 O 09 - EASTSIDE Alleys 530 18 9,691 5/17/24 70 93 7 0 90440 9050 90440-9050 ALLEY E/O ORANGE W/O MAPLE - 90 ALLEY N/O CHESTNUT S/O PINE PINE ST PCC 2 O 09 - EASTSIDE Alleys 166 20 3,444 5/17/24 70 71 29 0 90170 9020 90170-9020 ALLEY E/O DURANT W/O BROADWAY 15TH ST CDS N/O 15TH ST PCC 2 O 34 - WILLARD Alleys 281 20 5,992 5/21/24 70 74 26 0 90810 9040 90810-9040 ALLEY N/O 1ST S/O 5TH S - 90810 JACKSON ST ALLEY E/O JACKSON W/O LAUREL PCC 2 O 42 - SANTA ANITA Alleys 165 20 2,688 3/25/22 71 69 31 0 90820 9070 90820-9070 ALLEY N/O 1ST S/O 5TH N - 90820 LAUREL ST ALLEY E/O LAUREL W/O SUSAN PCC 2 O 42 - SANTA ANITA Alleys 165 20 2,772 5/7/24 71 61 29 10 90150 9050 90150-9050 ALLEY E/O CYPRESS W/O ORANGE - 9 BISHOP ST CAMILE ST PCC 2 O 09 - EASTSIDE Alleys 477 18 8,684 5/17/24 71 81 19 0 90320 9010 90320-9010 ALLEY E/O LACY W/O GARFIELD - 903 BROWN ST SANTA ANA BLVD PCC 2 O 06 - LACY Alleys 480 20 6,011 5/20/24 71 71 8 21 90960 9020 90960-9020 ALLEY N/O CHESTNUT S/O PINE - 909 ALLEY E/O ORANGE W/O MAPLE AC-PCC TRANSITION PCC 2 O 09 - EASTSIDE Alleys 160 22 3,262 5/17/24 72 81 19 0 91010 9020 91010-9020 ALLEY N/O DYER S/O GOETZ - 91010 CYPRESS AV ORANGE AV PCC 2 O 12 - DELHI Alleys 347 20 5,726 3/18/22 73 86 14 0 90410 9020 90410-9020 ALLEY E/O MINTER W/O LACY - 90410CIVIC CENTER DR VANCE ST PCC 2 O 05 - FRENCH PARK Alleys 483 20 8,409 5/20/24 73 87 9 4 90410 9030 90410-9030 ALLEY E/O MINTER W/O LACY - 90410VANCE ST WELLINGTON AV PCC 2 O 05 - FRENCH PARK Alleys 477 20 8,664 5/20/24 73 73 24 4 91440 9050 91440-9050 ALLEY N/O WALNUT S/O 1ST - 91440 MAPLE ST OAK ST PCC 2 O 09 - EASTSIDE Alleys 345 20 6,607 5/20/24 73 79 21 0 90740 9010 90740-9010 ALLEY N/O 15TH S/O 17TH - 90740 FLOWER ST PARTON ST PCC 2 O 34 - WILLARD Alleys 549 20 8,661 5/21/24 73 56 41 3 90780 9010 90780-9010 ALLEY N/O 18TH S/O 19TH - 90780 AC-PCC TRANSITION AC-PCC TRANSITION PCC 1 O 02 - FLORAL PARK PCC 02 - Floral Park 250 15 4,549 5/18/24 74 84 16 0 90350 9010 90350-9010 ALLEY E/O MAIN W/O BUSH - 90350 14TH ST 15TH ST PCC 1 O 25 - FRENCH COURT Alleys 400 15 5,880 5/21/24 74 69 19 12 90610 9010 90610-9010 ALLEY E/O STANDARD W/O SANTA F - ALLEY N/O MYRTLE S/O CHESTNUT CHESTNUT AV AC/AC 2 O 98 - NON-NEIGHBORHOOD AREA 98 Alleys 156 20 3,095 5/23/24 74 21 29 50 90305 9010 90305-9010 ALLEY E/O I-5 FWY W/O VALENCIA - 9VALENCIA ST 20TH ST PCC 2 O 31 - PARK SANTIAGO Alleys 355 20 6,707 1/11/24 75 85 15 0 90690 9010 90690-9010 ALLEY E/O VALENCIA W/O POINSET - CDS S/O 20TH ST 20TH ST PCC 2 O 31 - PARK SANTIAGO Alleys 655 15 13,617 1/11/24 75 85 15 0 90780 9020 90780-9020 ALLEY N/O 18TH S/O 19TH - 90780 BROADWAY AC-PCC TRANSITION PCC 1 O 91 - NON-NEIGHBORHOOD AREA 91 Alleys 340 15 4,705 5/18/24 75 83 17 0 90250 9010 90250-9010 ALLEY E/O GARFIELD W/O POINSET - BROWN ST SANTA ANA BLVD PCC 2 O 06 - LACY Alleys 480 20 7,928 5/20/24 75 82 14 4 90250 9030 90250-9030 ALLEY E/O GARFIELD W/O POINSET - CIVIC CENTER DR VANCE ST PCC 2 O 05 - FRENCH PARK Alleys 480 20 8,682 5/20/24 75 86 14 0 90940 9010 90940-9010 ALLEY N/O CAMILLE S/O MYRTLE - 90 ALLEY E/O ORANGE W/O MAPLE MAPLE ST PCC 2 O 09 - EASTSIDE Alleys 309 20 5,459 5/20/24 75 87 13 0 90550 9010 90550-9010 ALLEY E/O SHELTON W/O FLOWER - 3RD ST ALLEY N/O 3RD S/O SANTA ANA BL PCC 2 O 28 - FLOWER PARK Alleys 155 20 2,254 5/22/24 75 86 14 0 90150 9020 90150-9020 ALLEY E/O CYPRESS W/O ORANGE - 9 CDS S/O ALLEY N/O MCFADDEN S/O ALLEY N/O MCFADDEN S/O CUBBON PCC 2 O 09 - EASTSIDE Alleys 206 18 3,153 5/23/24 75 75 25 0 90360 9040 90360-9040 ALLEY E/O MAIN W/O CYPRESS - 9036PINE ST WALNUT ST PCC 2 O 09 - EASTSIDE Alleys 370 18 6,163 5/23/24 77 49 24 28 90960 9090 90960-9090 ALLEY N/O CHESTNUT S/O PINE - 909 MINNIE ST CDS E/O MINNIE ST PCC 1 O 98 - NON-NEIGHBORHOOD AREA 98 Alleys 308 15 4,351 5/20/24 78 77 18 5 90860 9040 90860-9040 ALLEY N/O 3RD S/O 4TH - 90860 MAIN ST BUSH ST PCC 2 O 06 - LACY Alleys 315 10 4,962 5/23/24 78 85 15 0 90380 9030 90380-9030 ALLEY E/O MINNIE W/O RR - 90380 ALLEY N/O MCFADDEN S/O WAKEHA ALLEY N/O WAKEHAM S/O GRANT AC/AC 2 O 51 - CORNERSTONE VILLAGE Alleys 533 20 9,087 2/23/24 79 74 26 0 90600 9040 90600-9040 ALLEY E/O STANDARD W/O MINNIE - WAKEHAM AV GRANT ST AC/AC 2 O 51 - CORNERSTONE VILLAGE Alleys 260 20 3,462 2/23/24 79 73 27 0 90360 9010 90360-9010 ALLEY E/O MAIN W/O CYPRESS - 9036WARNER AV ANAHURST PL PCC 2 O 12 - DELHI Alleys 665 20 12,473 5/16/24 79 59 31 10 90620 9030 90620-9030 ALLEY E/O SYCAMORE W/O MAIN - 9 WILSHIRE AV RUSSELL AV PCC 2 O 10 - WILSHIRE SQUARE Alleys 701 20 11,048 5/16/24 79 83 17 0 90600 9030 90600-9030 ALLEY E/O STANDARD W/O MINNIE - ALLEY N/O MCFADDEN S/O WAKEHA WAKEHAM AV AC/AC 2 O 51 - CORNERSTONE VILLAGE Alleys 245 20 3,258 2/23/24 80 79 21 0 90820 9050 90820-9050 ALLEY N/O 1ST S/O 5TH N - 90820 JACKSON ST ALLEY E/O JACKSON W/O LAUREL PCC 2 O 42 - SANTA ANITA Alleys 165 20 2,930 5/7/24 80 82 18 0 90440 9020 90440-9020 ALLEY E/O ORANGE W/O MAPLE - 90 CAMILE ST ALLEY N/O CAMILE S/O MYRTLE PCC 2 O 09 - EASTSIDE Alleys 183 20 2,825 5/17/24 80 82 18 0 90440 9030 90440-9030 ALLEY E/O ORANGE W/O MAPLE - 90 ALLEY N/O CAMILLE S/O MYRTLE MYRTLE ST PCC 2 O 09 - EASTSIDE Alleys 180 20 2,915 5/17/24 80 82 18 0 91280 9010 91280-9010 ALLEY N/O MCFADDEN S/O TOLLIVE - ALLEY E/O HESPERIAN W/O BRISTO HESPERIAN ST PCC 2 O 36 - CENTRAL CITY Alleys 155 30 3,762 5/21/24 80 63 12 25

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City of Santa Ana, CA
Pavement Condition Index (PCI) Report - All Streets
Sorted by Func Class, PCI Order (0-100)
Street ID Sec ID ConcID Name From To Type Lanes Func Class Area ID Neighborhoods Length Width Area Insp. Date PCI PCT Load PCT Environment PCT Other 90430 9020 90430-9020 ALLEY E/O OLIVE W/O FLOWER - 904 SAINT ANDREW PL OCCIDENTAL ST PCC 2 O 11 - SANTA ANA MEMORIAL PARK Alleys 449 18 6,702 3/21/22 82 61 37 3 90470 9020 90470-9020 ALLEY E/O PARTON W/O VAN NESS - 10TH ST LIME ST PCC 1 O 34 - WILLARD Alleys 454 15 7,028 5/21/24 82 38 40 23 90360 9050 90360-9050 ALLEY E/O MAIN W/O CYPRESS - 9036WALNUT ST 1ST ST AC/AC 2 O 09 - EASTSIDE Alleys 370 18 7,715 5/23/24 82 0 75 25 90030 9040 90030-9040 ALLEY E/O BIRCH W/O BROADWAY - RICHLAND ST BISHOP ST PCC 1 O 08 - HENINGER PARK Alleys 396 16 5,683 5/20/24 83 61 26 13 91060 9010 91060-9010 ALLEY N/O GLENWOOD S/O POMONA STANDARD AV ALLEY E/O MINNIE W/O RR PCC 2 O 98 - NON-NEIGHBORHOOD AREA 98 Alleys 597 25 14,006 5/23/24 83 62 38 0 91370 9010 91370-9010 ALLEY N/O SANTA ANA BLVD S/O C - 9LACY ST ALLEY E/O LACY W/O GARFIELD AC/AC 2 O 06 - LACY Alleys 185 20 2,376 5/23/24 83 0 91 9 90750 9050 90750-9050 ALLEY N/O 17TH S/O 18TH - 90750 HELIOTROPE DR GREENLEAF ST PCC 1 O 02 - FLORAL PARK PCC 02 - Floral Park 350 15 4,669 4/8/24 84 0 100 0 90820 9020 90820-9020 ALLEY N/O 1ST S/O 5TH N - 90820 ALLEY E/O NEWHOPE W/O MOUNTA MOUNTAIN VIEW ST PCC 2 O 26 - RIVERVIEW WEST Alleys 160 20 2,582 5/7/24 84 45 36 19 90740 9020 90740-9020 ALLEY N/O 15TH S/O 17TH - 90740 PARTON ST ROSS ST PCC 2 O 34 - WILLARD Alleys 655 18 11,726 5/21/24 84 41 32 27 91340 9040 91340-9040 ALLEY N/O PINE S/O WALNUT - 91340SHELTON ST BOOTH ST PCC 1 O 41 - PICO-LOWELL Alleys 664 15 10,953 5/23/24 84 72 28 0 90810 9010 90810-9010 ALLEY N/O 1ST S/O 5TH S - 90810 NEWHOPE ST ALLEY E/O NEWHOPE W/O MOUNTA PCC 2 O 26 - RIVERVIEW WEST Alleys 170 20 3,221 5/7/24 85 77 23 0 90030 9050 90030-9050 ALLEY E/O BIRCH W/O BROADWAY - BISHOP ST CAMILE ST PCC 1 O 08 - HENINGER PARK Alleys 474 16 6,880 5/20/24 85 69 31 0 90970 9010 90970-9010 ALLEY N/O CIVIC CENTER S/O 10T - 90ALLEY E/O GARNSEY W/O PARTON PARTON ST PCC 2 O 34 - WILLARD Alleys 178 20 2,774 5/21/24 85 44 37 19 90470 9010 90470-9010 ALLEY E/O PARTON W/O VAN NESS - ALLEY N/O CIVIC CENTER S/O 10T 10TH ST PCC 1 O 34 - WILLARD Alleys 571 15 9,036 5/21/24 86 14 64 23 90970 9020 90970-9020 ALLEY N/O CIVIC CENTER S/O 10T - 90PARTON ST ALLEY E/O PARTON W/O VAN NESS PCC 2 O 34 - WILLARD Alleys 165 20 2,626 5/21/24 86 56 44 0 90360 9030 90360-9030 ALLEY E/O MAIN W/O CYPRESS - 9036CHESTNUT AV PINE ST PCC 2 O 09 - EASTSIDE Alleys 343 18 5,190 5/23/24 86 61 20 20 91440 9040 91440-9040 ALLEY N/O WALNUT S/O 1ST - 91440 BOOTH ST FLOWER ST PCC 2 O 41 - PICO-LOWELL Alleys 626 15 9,683 5/23/24 86 71 24 5 90520 9080 90520-9080 ALLEY E/O ROSS W/O BIRCH - 90520 CHESTNUT AV ALLEY N/O CHESTNUT S/O PINE PCC 1 O 08 - HENINGER PARK Alleys 176 15 2,525 3/24/22 87 0 51 49 91340 9080 91340-9080 ALLEY N/O PINE S/O WALNUT - 91340MAPLE ST OAK ST PCC 1 O 09 - EASTSIDE Alleys 347 17 7,028 5/17/24 87 52 48 0 91440 9070 91440-9070 ALLEY N/O WALNUT S/O 1ST - 91440 HICKORY ST AC-PCC TRANSITION PCC 2 O 09 - EASTSIDE Alleys 201 20 2,148 5/20/24 87 74 26 0 90550 9020 90550-9020 ALLEY E/O SHELTON W/O FLOWER - ALLEY N/O 3RD S/O SANTA ANA BL SANTA ANA BLVD PCC 2 O 28 - FLOWER PARK Alleys 165 20 2,235 5/22/24 87 74 26 0 91440 9030 91440-9030 ALLEY N/O WALNUT S/O 1ST - 91440 SHELTON ST BOOTH ST PCC 1 O 41 - PICO-LOWELL Alleys 679 15 9,069 5/23/24 87 0 60 40 90420 9010 90420-9010 ALLEY E/O NEWHOPE W/O MOUNTA ALLEY N/O 1ST S/O 5TH S ALLEY N/O 1ST S/O 5TH N PCC 2 O 26 - RIVERVIEW WEST Alleys 920 20 18,397 5/7/24 88 66 34 0 90520 9040 90520-9040 ALLEY E/O ROSS W/O BIRCH - 90520 HIGHLAND ST RICHLAND ST PCC 1 O 08 - HENINGER PARK Alleys 460 16 6,497 5/15/24 88 70 30 0 90030 9030 90030-9030 ALLEY E/O BIRCH W/O BROADWAY - HIGHLAND ST RICHLAND ST PCC 1 O 08 - HENINGER PARK Alleys 460 16 6,864 5/20/24 88 70 30 0 90030 9070 90030-9070 ALLEY E/O BIRCH W/O BROADWAY - CHESTNUT AV PINE ST PCC 1 O 08 - HENINGER PARK Alleys 343 16 5,830 5/20/24 88 70 30 0 90880 9020 90880-9020 ALLEY N/O 4TH S/O 5TH - 90880 PORTER ST LACY ST PCC 1 O 06 - LACY Alleys 310 10 2,585 5/20/24 88 70 30 0 91290 9030 91290-9030 ALLEY N/O MCFADDEN S/O WAKEHA MINNIE ST ALLEY E/O MINNIE W/O RR AC/AC 2 O 51 - CORNERSTONE VILLAGE Alleys 167 20 2,110 2/23/24 89 69 31 0 90520 9070 90520-9070 ALLEY E/O ROSS W/O BIRCH - 90520 CAMILE ST CHESTNUT AV PCC 1 O 08 - HENINGER PARK Alleys 618 16 9,304 5/15/24 89 58 42 0 90360 9020 90360-9020 ALLEY E/O MAIN W/O CYPRESS - 9036OLD MCFADDEN AV MCFADDEN AV PCC 1 O 47 - MADISON PARK Alleys 374 16 5,354 5/23/24 89 0 89 11 90030 9060 90030-9060 ALLEY E/O BIRCH W/O BROADWAY - CAMILE ST CHESTNUT AV PCC 1 O 08 - HENINGER PARK Alleys 619 16 8,708 5/20/24 90 65 35 0 90340 9010 90340-9010 ALLEY E/O LOGAN W/O LINCOLN - 90 CDS S/O STAFFORD ST STAFFORD ST PCC 1 O 01 - LOGAN Alleys 236 15 3,098 5/22/24 90 49 51 0 90040 9010 90040-9010 ALLEY E/O BOOTH W/O FLOWER - 90 PINE ST ALLEY N/O PINE S/O WALNUT PCC 1 O 41 - PICO-LOWELL Alleys 167 15 2,135 5/23/24 90 68 32 0 90050 9070 90050-9070 ALLEY E/O BRISTOL W/O BAKER - 900 WALNUT ST ALLEY N/O WALNUT S/O 1ST PCC 2 O 41 - PICO-LOWELL Alleys 160 20 3,482 5/23/24 90 0 100 0 90520 9090 90520-9090 ALLEY E/O ROSS W/O BIRCH - 90520 ALLEY N/O CHESTNUT S/O PINE PINE ST PCC 1 O 08 - HENINGER PARK Alleys 166 15 2,496 3/24/22 91 0 100 0 90520 9100 90520-9100 ALLEY E/O ROSS W/O BIRCH - 90520 PINE ST ALLEY N/O PINE S/O WALNUT PCC 1 O 08 - HENINGER PARK Alleys 177 15 2,611 3/24/22 91 0 100 0 90520 9110 90520-9110 ALLEY E/O ROSS W/O BIRCH - 90520 ALLEY N/O PINE S/O WALNUT WALNUT ST PCC 1 O 08 - HENINGER PARK Alleys 193 15 2,634 3/24/22 91 0 100 0 90440 9070 90440-9070 ALLEY E/O ORANGE W/O MAPLE - 90 ALLEY N/O PINE S/O WALNUT WALNUT ST PCC 2 O 09 - EASTSIDE Alleys 190 20 3,714 5/17/24 91 62 38 0 90030 9020 90030-9020 ALLEY E/O BIRCH W/O BROADWAY - CUBBON ST HIGHLAND ST PCC 1 O 08 - HENINGER PARK Alleys 460 16 7,014 5/20/24 91 38 31 31 91430 9010 91430-9010 ALLEY N/O TRASK S/O RANCHERO - 9 FAIRVIEW ST COTTER ST PCC 2 O 56 - EDNA PARK Alleys 310 20 5,453 4/3/24 92 0 100 0 91330 9020 91330-9020 ALLEY N/O PALM S/O 4TH - 91330 AC-PCC TRANSITION MABURY ST PCC 2 O 07 - SADDLEBACK VIEW Alleys 679 18 12,014 5/1/24 92 57 39 4 90700 9010 90700-9010 ALLEY E/O VAN NESS W/O ROSS - 907MCFADDEN AV CUBBON ST PCC 1 O 08 - HENINGER PARK Alleys 482 16 5,690 5/15/24 92 0 45 55 91350 9005 91350-9005 ALLEY N/O POMONA S/O EDINGER - 9MINNIE ST ALLEY E/O MINNIE W/O RR PCC 2 O 98 - NON-NEIGHBORHOOD AREA 98 Alleys 157 20 2,501 5/17/24 92 0 67 33 90260 9010 90260-9010 ALLEY E/O GARNSEY W/O PARTON - 9CDS S/O ALLEY N/O CIVIC CTR S/ ALLEY N/O CIVIC CENTER S/O 10T PCC 1 O 34 - WILLARD Alleys 125 15 2,279 5/21/24 92 0 100 0 90260 9020 90260-9020 ALLEY E/O GARNSEY W/O PARTON - 9ALLEY N/O CIVIC CENTER S/O 10T 10TH ST PCC 1 O 34 - WILLARD Alleys 362 15 5,173 5/21/24 92 0 100 0 90115 9010 90115-9010 ALLEY E/O CENTER W/O DAISY - 9011 MYRTLE ST ALLEY N/O MYRTLE S/O CHESTNUT AC/AC 2 O 57 - CASA BONITA Alleys 166 20 3,836 5/23/24 92 0 75 25 90960 9010 90960-9010 ALLEY N/O CHESTNUT S/O PINE - 909 ROSS ST ALLEY E/O ROSS W/O BIRCH PCC 1 O 08 - HENINGER PARK Alleys 179 16 2,666 5/23/24 92 0 100 0 90520 9060 90520-9060 ALLEY E/O ROSS W/O BIRCH - 90520 BISHOP ST CAMILE ST PCC 1 O 08 - HENINGER PARK Alleys 474 16 6,670 5/15/24 93 49 40 12 90440 9010 90440-9010 ALLEY E/O ORANGE W/O MAPLE - 90 BISHOP ST CAMILE ST PCC 1 O 09 - EASTSIDE Alleys 360 16 4,888 5/17/24 93 55 45 0 90070 9010 90070-9010 ALLEY E/O BROADWAY W/O MAIN - 917TH ST ALLEY N/O 17TH S/O 18TH PCC 1 O 91 - NON-NEIGHBORHOOD AREA 91 Alleys 138 20 2,378 5/18/24 93 0 100 0 90750 9040 90750-9040 ALLEY N/O 17TH S/O 18TH - 90750 FLOWER ST HELIOTROPE DR PCC 1 O 02 - FLORAL PARK PCC 02 - Floral Park 428 15 6,621 4/8/24 94 0 100 0 90820 9010 90820-9010 ALLEY N/O 1ST S/O 5TH N - 90820 NEWHOPE ST ALLEY E/O NEWHOPE W/O MOUNTA PCC 2 O 26 - RIVERVIEW WEST Alleys 170 20 2,472 5/7/24 94 0 100 0 90430 9010 90430-9010 ALLEY E/O OLIVE W/O FLOWER - 904 GLENWOOD PL SAINT ANDREW PL PCC 2 O 11 - SANTA ANA MEMORIAL PARK Alleys 356 18 5,098 5/16/24 94 0 100 0 90960 9025 90960-9025 ALLEY N/O CHESTNUT S/O PINE - 909 AC-PCC TRANSITION MAPLE ST PCC 2 O 09 - EASTSIDE Alleys 176 22 3,161 5/17/24 94 0 100 0 90960 9060 90960-9060 ALLEY N/O CHESTNUT S/O PINE - 909 HALLADAY ST CEDAR ST PCC 1 O 09 - EASTSIDE Alleys 402 14 6,487 5/17/24 94 0 100 0 90960 9080 90960-9080 ALLEY N/O CHESTNUT S/O PINE - 909 STANDARD AV MINNIE ST PCC 1 O 98 - NON-NEIGHBORHOOD AREA 98 Alleys 400 15 5,665 5/17/24 94 0 80 20 91340 9070 91340-9070 ALLEY N/O PINE S/O WALNUT - 91340ALLEY E/O ORANGE W/O MAPLE MAPLE ST PCC 2 O 09 - EASTSIDE Alleys 335 20 6,141 5/17/24 94 0 100 0 90030 9010 90030-9010 ALLEY E/O BIRCH W/O BROADWAY - MCFADDEN AV CUBBON ST PCC 1 O 08 - HENINGER PARK Alleys 481 16 8,117 5/20/24 94 0 62 38 90030 9080 90030-9080 ALLEY E/O BIRCH W/O BROADWAY - PINE ST WALNUT ST PCC 1 O 08 - HENINGER PARK Alleys 370 16 5,042 5/20/24 94 0 50 50 90030 9090 90030-9090 ALLEY E/O BIRCH W/O BROADWAY - WALNUT ST 1ST ST PCC 1 O 08 - HENINGER PARK Alleys 370 16 5,638 5/20/24 94 0 66 34 90970 9030 90970-9030 ALLEY N/O CIVIC CENTER S/O 10T - 90ALLEY E/O PARTON W/O VAN NESS VAN NESS AV PCC 2 O 34 - WILLARD Alleys 165 20 2,565 5/21/24 94 0 100 0 90870 9010 90870-9010 ALLEY N/O 3RD S/O SANTA ANA BL - 9SHELTON ST ALLEY E/O SHELTON W/O FLOWER PCC 1 O 28 - FLOWER PARK Alleys 727 15 11,142 5/22/24 94 0 100 0 90860 9010 90860-9010 ALLEY N/O 3RD S/O 4TH - 90860 BIRCH ST BROADWAY PCC 2 O 63 - DOWNTOWN Alleys 345 10 4,355 5/23/24 94 0 80 20 91340 9010 91340-9010 ALLEY N/O PINE S/O WALNUT - 91340RAITT ST AC-PCC TRANSITION PCC 2 O 36 - CENTRAL CITY Alleys 474 15 6,985 5/23/24 94 0 87 13 91340 9050 91340-9050 ALLEY N/O PINE S/O WALNUT - 91340BOOTH ST ALLEY E/O BOOTH W/O FLOWER PCC 2 O 41 - PICO-LOWELL Alleys 490 15 7,376 5/23/24 94 0 100 0 91340 9060 91340-9060 ALLEY N/O PINE S/O WALNUT - 91340ROSS ST ALLEY E/O ROSS W/O BIRCH PCC 1 O 08 - HENINGER PARK Alleys 179 16 2,370 5/23/24 94 0 100 0 90540 9010 90540-9010 ALLEY E/O ROSS W/O RIVERINE - 905 10TH ST HALESWORTH ST PCC 1 O 34 - WILLARD Alleys 384 15 5,319 2/7/24 95 0 76 24 90850 9010 90850-9010 ALLEY N/O 2ND S/O CAPE COD - 9085CLARA ST ALLEY E/O CLARA W/O TOWNSEND PCC 2 O 21 - ARTESIA PILAR Alleys 554 20 12,462 4/11/24 95 82 18 0 90520 9050 90520-9050 ALLEY E/O ROSS W/O BIRCH - 90520 RICHLAND ST BISHOP ST PCC 1 O 08 - HENINGER PARK Alleys 396 16 6,163 5/15/24 95 0 77 23 90070 9030 90070-9030 ALLEY E/O BROADWAY W/O MAIN - 918TH ST ALLEY N/O 18TH S/O 19TH AC/AC 1 O 91 - NON-NEIGHBORHOOD AREA 91 Alleys 157 16 2,314 5/18/24 95 0 100 0 90970 9040 90970-9040 ALLEY N/O CIVIC CENTER S/O 10T - 90VAN NESS AV ROSS ST AC/AC 2 O 34 - WILLARD Alleys 323 20 5,230 5/18/24 95 0 100 0 91270 9030 91270-9030 ALLEY N/O MCFADDEN S/O MONTA V ALLEY E/O TOWNSEND W/O RAITT RAITT ST PCC 2 O 40 - BELLA VISTA Alleys 210 20 2,816 5/21/24 95 0 100 0 90560 9020 90560-9020 ALLEY E/O SHELTON W/O FLOWER - 9CHESTNUT AV PINE ST PCC 1 O 41 - PICO-LOWELL Alleys 330 15 4,115 5/23/24 95 0 77 23 90060 9010 90060-9010 ALLEY E/O BRISTOL W/O MAGNOLIA EDINGER AV WILSHIRE AV PCC 2 O 20 - MID-CITY Alleys 1,323 20 24,661 2/29/24 96 0 89 11 91390 9010 91390-9010 ALLEY N/O SANTA CLARA S/O NORT - FLOWER ST HELIOTROPE DR PCC 1 O 02 - FLORAL PARK PCC 02 - Floral Park 315 10 2,673 3/29/24 96 0 100 0 90120 9010 90120-9010 ALLEY E/O CENTER W/O TOWNSEND EDINGER AV ALLEY N/O EDINGER S/O ELDER AC/AC 2 O 46 - NEW HORIZONS Alleys 579 20 10,499 4/11/24 96 0 100 0 91020 9010 91020-9010 ALLEY N/O EDINGER S/O ELDER - 910 ALLEY E/O CENTER W/O TOWNSEND TOWNSEND ST AC/AC 2 O 46 - NEW HORIZONS Alleys 190 20 2,746 4/11/24 96 0 100 0 90520 9020 90520-9020 ALLEY E/O ROSS W/O BIRCH - 90520 MCFADDEN AV CUBBON ST PCC 1 O 08 - HENINGER PARK Alleys 481 16 7,566 5/15/24 96 0 100 0 90520 9030 90520-9030 ALLEY E/O ROSS W/O BIRCH - 90520 CUBBON ST HIGHLAND ST PCC 1 O 08 - HENINGER PARK Alleys 460 16 6,659 5/15/24 96 0 100 0 90700 9020 90700-9020 ALLEY E/O VAN NESS W/O ROSS - 907CUBBON ST HIGHLAND ST PCC 1 O 08 - HENINGER PARK Alleys 460 16 5,503 5/15/24 96 0 100 0 90700 9030 90700-9030 ALLEY E/O VAN NESS W/O ROSS - 907HIGHLAND ST RICHLAND ST PCC 1 O 08 - HENINGER PARK Alleys 460 16 5,470 5/15/24 96 0 100 0 90700 9040 90700-9040 ALLEY E/O VAN NESS W/O ROSS - 907RICHLAND ST BISHOP ST PCC 1 O 08 - HENINGER PARK Alleys 396 14 5,148 5/15/24 96 0 100 0 90700 9050 90700-9050 ALLEY E/O VAN NESS W/O ROSS - 907BISHOP ST CAMILE ST PCC 1 O 08 - HENINGER PARK Alleys 474 14 5,684 5/15/24 96 0 100 0 90440 9060 90440-9060 ALLEY E/O ORANGE W/O MAPLE - 90 PINE ST ALLEY N/O PINE S/O WALNUT PCC 2 O 09 - EASTSIDE Alleys 180 20 2,802 5/17/24 96 0 100 0 90960 9040 90960-9040 ALLEY N/O CHESTNUT S/O PINE - 909 OAK ST HICKORY ST PCC 2 O 09 - EASTSIDE Alleys 392 20 7,387 5/17/24 96 0 100 0 91340 9120 91340-9120 ALLEY N/O PINE S/O WALNUT - 91340STANDARD AVE MINNIE ST PCC 2 O 98 - NON-NEIGHBORHOOD AREA 98 Ind 19 - Industrial 384 17 5,553 5/17/24 96 0 100 0 90070 9020 90070-9020 ALLEY E/O BROADWAY W/O MAIN - 9ALLEY N/O 17TH S/O 18TH 18TH ST PCC 1 O 91 - NON-NEIGHBORHOOD AREA 91 Alleys 158 16 2,438 5/18/24 96 0 100 0 90040 9020 90040-9020 ALLEY E/O BOOTH W/O FLOWER - 90 ALLEY N/O PINE S/O WALNUT WALNUT ST PCC 1 O 41 - PICO-LOWELL Alleys 156 15 2,177 5/23/24 96 0 100 0 90950 9020 90950-9020 ALLEY N/O CENTRAL S/O WARNER - 9 BROADWAY CDS E/O BROADWAY PCC 2 O 99 - NON-NEIGHBORHOOD AREA 99 Alleys 230 20 3,700 2/15/23 97 100 0 0 90750 9070 90750-9070 ALLEY N/O 17TH S/O 18TH - 90750 BROADWAY ALLEY E/O BROADWAY W/O MAIN PCC 2 O 91 - NON-NEIGHBORHOOD AREA 91 Alleys 440 15 7,173 5/18/24 97 0 58 42 90340 9020 90340-9020 ALLEY E/O LOGAN W/O LINCOLN - 90 CDS S/O WASHINGTON AV WASHINGTON AV PCC 2 O 01 - LOGAN Alleys 275 20 3,541 5/22/24 98 0 100 0 90640 9010 90640-9010 ALLEY E/O TOWNSEND W/O RAITT - 9EDINGER AV ALLEY N/O EDINGER S/O ELDER AC/AC 2 O 46 - NEW HORIZONS Alleys 654 20 11,890 4/2/24 99 0 100 0 91190 9020 91190-9020 ALLEY N/O LINGAN S/O MCFADDEN - CENTER ST RAITT ST AC/AC 2 O 46 - NEW HORIZONS Alleys 1,250 20 19,154 5/2/24 99 0 0 100 90640 9020 90640-9020 ALLEY E/O TOWNSEND W/O RAITT - 9WILSHIRE AV LINGAN LN AC/AC 2 O 46 - NEW HORIZONS Alleys 1,037 20 16,459 5/17/24 99 0 100 0 90250 9040 90250-9040 ALLEY E/O GARFIELD W/O POINSET - VANCE ST WELLINGTON AV AC/AC 2 O 05 - FRENCH PARK Alleys 305 20 3,607 4/30/24 100 0 0 0 90300 9010 90300-9010 ALLEY E/O HESPERIAN W/O BRISTO - MCFADDEN AV ALLEY N/O MCFADDEN S/O CUBBON AC/AC 2 O 36 - CENTRAL CITY Alleys 171 20 2,142 4/30/24 100 0 0 0 91250 9010 91250-9010 ALLEY N/O MCFADDEN S/O CUBBON RAITT ST PACIFIC AV AC/AC 2 O 36 - CENTRAL CITY Alleys 1,443 20 26,582 4/30/24 100 0 0 0 91250 9020 91250-9020 ALLEY N/O MCFADDEN S/O CUBBON PACIFIC AV GRAHAM LN AC/AC 2 O 36 - CENTRAL CITY Alleys 700 20 11,295 4/30/24 100 0 0 0 91250 9030 91250-9030 ALLEY N/O MCFADDEN S/O CUBBON GRAHAM LN ALLEY E/O HESPERIAN W/O BRISTO AC/AC 2 O 36 - CENTRAL CITY Alleys 388 20 6,633 4/30/24 100 0 0 0 91190 9010 91190-9010 ALLEY N/O LINGAN S/O MCFADDEN - FAIRVIEW ST SULLIVAN ST AC/AC 2 O 46 - NEW HORIZONS Alleys 1,264 20 19,661 5/8/24 100 0 0 0

27.1 2,315,904

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XIII. APPENDIX C – GIS DIGITAL DATA
Introduction
The OCTA GIS Section maintains a spatial inventory of transportation infrastructure which mostly consists of major arterial streets, roads, and highways. A key component of road information is pavement condition. Maintaining an inventory of pavement condition will enhance OCTA’s GIS visualization and analysis capabilities and assist in understanding the transportation investment needs throughout the region. Therefore, a GIS dataset in digital format should be included in this report.

Structure of GIS Data
The GIS dataset must consist of linear geographic features that represent road/street segments. All segments that are part of the report should be included in the GIS dataset. The attribute information of each segment should generally follow the format of the Complete Listing of Current Street Conditions in Appendix B above.

The GIS data requirements are discussed below. Most commercial and open-source GIS software provide industrystandard tools to manage GIS data to meet these requirements.

GIS Digital Data Format
The GIS data must be submitted in either one of the following formats:
• Esri Shapefile, or
• Esri File Geodatabase
Metadata
The GIS data are required to have associated metadata. The minimum metadata items required are:
• Title of Dataset
• Tags (A set of words that can be used by GIS to search for the resource. For example: “pavement”, “transportation”, “roads”)
• Summary (A brief purpose statement of the dataset)
• Description (A brief narrative of the dataset’s content) • Credits (A recognition of those who created or contributed to the resource) Spatial Geometry Type
The spatial geometry of the segment features must be lines that represent the roadway centerline as accurately as possible.

Projection
The GIS data must have spatial reference information and have its coordinate system identified and embedded in or associated with the data file(s). All GIS data submitted to OCTA should be in the following projected coordinate system:
• NAD 1983 State Plane California VI FIPS 0406 (US Feet) - More information about this system can be found at: https://spatialreference.org/ref/epsg/nad83-california-zone-6-ftus/ City Council 33 – 209 6/4/2024
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GIS Feature Attributes
The required segment attributes are:
• Street name
• Unique segment identifier (Segment ID from original source if available) • Name of intersecting road at the beginning of a segment • Name of intersecting road at the end of the segment
• Current pavement condition index (PCI)
• Current PCI inspection date
• Length of road segment in feet
• Width of road segment in feet
• Paved area of road segment in square feet or square yards • Projected PCI at end of Seven-Year Road Maintenance and Rehabilitation Plan Additional attributes such as number of through travel lanes, direction of travel and pavement surface type may be provided.

XIV. APPENDIX D – QUALITY ASSURANCE / QUALITY CONTROL PLAN Introduction
When performing data collection in any field, the need for quality control is paramount as it is essential for accurate planning, analysis and design. This is particularly true for collecting pavement distress data for a pavement management program.

The Quality Assurance / Quality Control (QA/QC) Plan establishes minimum quality standards for performance and procedures for update of the pavement management program.

Objectives
This document constitutes a formal QA/QC Plan for the City of Santa Ana. It was prepared in April, 2020 and last revised in March, 2024.

Specifically, it is intended for the 2024 Pavement Management Plan Update. The focus is on the collection of network-level pavement distress data (defined by National Cooperative Highway Research Program (NCHRP) Synthesis 401 Quality Management of Pavement Data Collection, as “Network-level data collection involves collection of large quantities of pavement condition data, which is often converted to individual condition indices or aggregated into composite condition indices”.

This document also addresses the QA/QC plan requirements of the Orange County Transportation Authority (OCTA)’s “Countywide Pavement Management Plan Guidelines” (Section 2.4), adopted in May 2010.

Structure of QA/QC Plan
The following components are addressed in this QA/QC Plan:
• Condition survey procedures used;
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• Accuracy required for data collection;
• Inspector qualifications and experience; and
• Safety.

Condition Survey Procedures
The governing document in performing condition surveys for the City of Santa Ana is ASTM D6433 “Standard Practice for Roads and Parking Lots Pavement Condition Index (PCI) Surveys.” Both asphalt concrete (AC) and Portland cement concrete (PCC) pavements are included in this protocol. The following distresses are collected for each pavement type:

As required by the Orange County Transportation Authority (OCTA), the City of Santa Ana must prepare and implement a quality assurance / quality control (QA/QC) plan regarding pavement management inspection as they pertain to StreetSaver. For the purposes of this report, Bucknam has demonstrated below how our project team implemented QA/QC procedures during the project.

Our QA/QC plan focuses on the how each pavement inspection is performed, what distresses are collected and ensures that it complies with the OCTA guidelines defined within the “Countywide Pavement Management Plan Guidelines (CPMPG)”.

As shown within the OCTA CPMPG, our staff followed and delivered on the requirements stated within Chapter 2, page 2-5 which require specific QA/QC data (Items A through G). Additionally, Chapter 3 requires numerous data/deliverables from local agencies for OC Measure M2 eligibility. All general PCI budgetary report submittals will follow the Chapter 3 guidelines.

In conjunction with the outlined items within the CPMPG Section 2 we have City Council 33 – 211 6/4/2024
City of Santa Ana, CA Page 17
2024 Citywide Pavement Management Plan – OCTA Submittal Final Report – May 27, 2024
summarized our QA/QC procedures below:
a. Descriptions of condition survey - Our staff follows the required Condition Survey Protocols (CPMPG, Chapter 2); our staff assesses each pavement section for the minimum distresses outlined within Chapter 2, page 2-1. Additionally, based on the pavement conditions found, we collect all MicroPAVER/StreetSaver Army Corps of Engineers(ACOE) distresses, if found within the sample sections; for example, if slippage cracking, potholes, etc. are found our survey technicians record the proper information.
b. How data was collected - Our surveys follow the OCTA accepted walking requirements. All sections that our staff surveys are performed through the walking method, approximately 10% of all sections surveyed were complemented with windshield surveys based on unique conditions found. Our staff physically measures the width of every section as well as measure for any square footage adjustment that need to be added or taken away from a sections “true area” (i.e. cul-desac, bus pads, street width variances, etc.). Samples taken always include a minimum of 2,500 SF coverage unless specific section limits prohibit this. Arterial section samples utilize a 3,500 SF sample size due to the larger section area (this is within the ASTM D6433 sample size calculation.

Field crews typically include one individual for residential pavement sections while Arterial (MPAH) routes utilize a two-person crew for safety, traffic control and increases quality control. c. Accuracy required for data collection - We use a statistical sampling approach for measuring the quality of our field technician’s work. In this manner, 10 percent of the original surveys are resurveyed by a different survey crew than the original, supervised by a field supervisor, and the results are compared to the original surveys. Our QC process involves checking the field crews’ work in a “blind study” fashion. Quality control checks are performed at the end of each survey week. This ensures that all field personnel are properly collecting section samples, distress types and distress severities for all street segments.
 When QA/QC issues are found, our staff documents the issues within MicroPAVER’s/StreetSaver’s user interface. If distress types found are not within the 97% accuracy our QA/QC is expanded beyond our minimum 10% resurvey to 20% of the original survey
d. Random and Systematic Re-Inspections – As described above our staff re-inspects, as a minimum, 10% of the original survey (OCTA only requires 5%). Per the agency’s requests, our staff will submit PCI reports to the agency as project status reports for their review. Agencies will typically review specific pavement sections for PCI accuracy based on recent overlay or slurry seal maintenance; this serves as an initial accuracy check on our surveys (outside Bucknam QC efforts).

Additionally, our staff performs “ride-a-long” surveys with local agency staff to build consensus on how our MicroPAVER/StreetSaver ACOE surveys are performed, recorded and reported on.

Random re-inspections will include a representative selection across the following categories:
• Functional classed (i.e. MPAH, locals);
• Surface types (e.g. AC or PCC);
• Pavement conditions (e.g. good, fair, poor);
• Inspectors;
• Geographical areas, if applicable.

City Council 33 – 212 6/4/2024
City of Santa Ana, CA Page 18
2024 Citywide Pavement Management Plan – OCTA Submittal Final Report – May 27, 2024
For systematic re-inspections, this could be due to noticed trends such as specific treatment types (e.g. open-graded mixed), a specific inspector or geographical area. In these cases Bucknam continues to utilize a 10% re-inspection policy.
e. PCI Comparison with Past Surveys - if previous inspection data is available, new PCI’s calculated through the most recent inspections will be compared to previous PCI’s. If the variance in PCI is greater than +/- 10 PCI points, these sections will be flagged for further investigation and/or reinspection (In the cases that a PCI increases or decreases by 10 points follows the established CPMPG guidelines; Appendix A, page A-18).
f. Schedule of data submittal – Pending on the City’s last major PMP submittal, Bucknam will assist the agency in submitting the following:
 Master Plan of Arterial Highways (MPAH) routes will be surveyed and reported on at least once every two years
 Local streets will be surveyed and reported on every six years  Corresponding MPAH and local PCI reporting and budgetary reporting will be submitted every two years
g. Experience of Inspectors – Bucknam staff have been trained on the use of StreetSaver and the segment calibration/verification and inspection practices. Mr. Peter Bucknam (Project Manager) has completed the MicroPAVER Certification of Professional Development courses. All Bucknam field technicians are trained using the ASTM D6433 survey methodologies and have passed OCTA’s prequalification testing every year since 2010. Bucknam Infrastructure Group inspectors have attended formal training on pavement condition distress surveys. This training was conducted prior to performing any work using the ASTM D6433 protocols, consistent with OCTA’s requirements.
h. Field data collection safety procedures – Bucknam field survey techniques utilize the following procedures:
a. All vehicles are properly marked or flagged with appropriate sign markings indicating that a “PAVEMENT SURVEY IS IN PROGRESS”;
b. All vehicles have the proper flashing amber light beacons placed on the top of the vehicle to allow for proper visibility and line-of-site warning; c. Large MPAH routes are surveyed using two field technicians to increase traffic control warning and safety;
d. While parking or stopping along the survey route, vehicles legally park within the rightof-way or use a parking lot; e. All field technicians wear ANSI – 105 Class II safety vests City Council 33 – 213 6/4/2024
City of Santa Ana, CA Page 19
2024 Citywide Pavement Management Plan – OCTA Submittal Final Report – May 27, 2024
XV. APPENDIX E – PAVEMENT MANAGEMENT DATA FILES
The City of Santa Ana StreetSaver database is available online through MTC StreetSaver’s website; to log in and review PMP data OCTA will need to obtain permission from Santa Ana staff and MTC. Available PMP data and the associated reporting data includes:
• Street names and limits for the City’s public streets • Street identifiers (Branch ID, Section ID)
• Direction
• Begin and end of section
• Length, width and true areas
• Functional Classification (MPAH, Local)
• Number of travel lanes
• Pavement Condition Index (PCI) and date of inspection • Type of recommended treatment
• Cost of recommended treatment
City Council 33 – 214 6/4/2024
City of Santa Ana, CA Page 20
2024 Citywide Pavement Management Plan – OCTA Submittal Final Report – May 27, 2024
XVI. APPENDIX F – GIS MAPS / CURRENT CONDITIONS
City Council 33 – 215 6/4/2024
Public Works Agency
www.santa-ana.org/public-works
Item # 34
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 4, 2024
TOPIC: Resolution for Fiscal Year 2024-25 Senate Bill 1 Local Streets and Roads Funding Program

AGENDA TITLE
Resolution to Maintain Eligibility for the Fiscal Year 2024-25 Senate Bill 1 Local Streets and Roads, Road Repair and Accountability Act Funding Program (Non-General Fund)

RECOMMENDED ACTION
Adopt a Resolution affirming the Fiscal Year 2024-25 Senate Bill 1 projects list and anticipated Road Maintenance and Rehabilitation Account funding in the amount of $8,039,480, to be submitted to the California Transportation Commission for budgeting the Fiscal Year 2024-25 Capital Improvement Program and maintaining eligibility for Road Repair and Accountability Act funding.

RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF SANTA ANA ADOPTING A LIST OF PROJECTS TO BE FUNDED BY FISCAL YEAR 2024-25 SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
GOVERNMENT CODE §84308 APPLIES: No

DISCUSSION
In April 2017, Senate Bill 1 (SB1), the Road Repair and Accountability Act (RMRA) of 2017 (Chapter 5, Statutes of 2017), was passed by the Legislature and signed into law by the Governor of California to address basic road maintenance, rehabilitation, and critical safety needs on both the state highway and the local streets systems. During the RMRA program application period each year, local agencies are required to adopt a Resolution that includes a list of planned eligible projects that will utilize respective fiscal year RMRA funding, and submit the Resolution to the California Transportation Commission (CTC) (Exhibit 1). Each proposed RMRA-funded project must be specifically differentiated from the Highway Users Tax Account (HUTA) funding.

The City will receive funding in an estimated amount of $8,038,480 in Fiscal Year 2024- 25 (FY24-25) from RMRA revenues. Each year, the City must submit a proposed RMRA projects list to the CTC, and as required, provide updates on the project progress. The City Council 34 – 1 6/4/2024
SB1 Fiscal Year Funds
June 4, 2024

Page 2 ends

proposed projects list must include a project description, specific location, proposed schedule for its completion, and the project’s estimated useful life. The proposed RMRA-funded projects will be incorporated into the FY 2024-25 Capital Improvement Program (CIP) Budget, and staff has prepared Fiscal Year FY 2024-25 CIP Project Sheets for each of the projects (Exhibit 2). Staff recommends that the City Council adopt a resolution recognizing the proposed FY 2024-25 RMRA-funded project list.

FISCAL IMPACT
Pursuant to the California Transportation Commission’s Annual Reporting Guidelines for Local Streets and Roads Funding, Staff has identified five FY 2024-25 CIP projects to be funded with anticipated FY 2024-25 RMRA revenues. The proposed FY 2024-25 CIP budget was prepared using the California Department of Finance RMRA May 2024 estimate of $8,039,480.

FY24-25 CIP - SB1 Road Repair and Accountability Act Project List

PROJECT LOCATION COST
Grand Avenue Rehabilitation Edinger Avenue to McFadden
Avenue
$1,122,000
Raitt Street Rehabilitation McFadden Avenue to First Street $1,616,000 Bedford Avenue Rehabilitation
Main Place to North City Limit $173,000
Fairview Avenue Rehabilitation South City Limit to Alton Avenue $3,842,480 Civic Center Rehabilitation Minter Street to Santiago Street $1,286,000 Total: $8,039,480

EXHIBIT(S)

1. Resolution and Proposed List of Projects for FY 2024-25

2. FY 2024-25 RMRA CIP Project Sheets
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Alvaro Nuñez, Acting City Manager
City Council 34 – 2 6/4/2024
Resolution No. 2024-XXX

Page 1 of 4 ends

RESOLUTION NO. 2024-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA ANA ADOPTING A LIST OF PROJECTS TO BE
FUNDED BY FISCAL YEAR 2024-25 SB 1: THE ROAD
REPAIR AND ACCOUNTABILITY ACT OF 2017

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 hereby finds, determines and declares as follows:

A. Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017, was passed by the Legislature and signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide.

B. SB 1 includes accountability and transparency provisions that will ensure the residents of the City of Santa Ana are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year.

C. The City of Santa Ana must establish a list of all projects to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement.

D. The City will receive an estimated $8,039,480 in RMRA funding in Fiscal Year 2024-25 from SB 1.

E. This is the eighth year in which the City of Santa Ana is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1.

F. The City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the priorities of the community for transportation investment.

G. The funding from SB 1 will help the City maintain and rehabilitate seven streets/roads throughout the City this year and future streets/roads rehabilitations, bridge projects, and active transportation projects in the future.

H. The 2020 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in good condition and this revenue will help us EXHIBIT 1
City Council 34 – 3 6/4/2024
Resolution No. 2024-XXX

Page 2 of 4 ends

maintain the overall quality of our road system and over the next decade will allow us the opportunity to enhance our overall streets and roads condition.

I. The SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance, safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

Section 2. The City of Santa Ana adopts the following list of newly proposed projects to be funded in-part or solely with Road Maintenance and Rehabilitation Account (RMRA) revenues for Fiscal Year 2024-25.

Project Name Location Description Proposed
Project
Start date
Proposed
Project
Completion
date
Estimated
Useful
Life
Civic Center
Drive
Minter Street to Santiago Street Road
Rehabilitation -
Grind/Overlay
with associated
concrete work.
7/1/24 12/31/25 20 years
Bedford
Avenue
Main Place to North City Limit Road
Rehabilitation -
Grind/Overlay
with associated
concrete work.
7/1/24 12/31/25 20 years
Grand Avenue Edinger Avenue to McFadden
Avenue
Road
Rehabilitation -
Grind/Overlay
with associated
concrete work.
7/1/24 12/31/25 20 years
Fairview
Avenue
South City Limit to Alton Avenue Road
Rehabilitation -
Grind/Overlay
with associated
concrete work.
7/1/24 12/31/25 20 years
Section 3. The following previously proposed and adopted project may also utilize Fiscal Year 2024-25 Road Maintenance and Rehabilitation Account revenues in its delivery. With the relisting of this project in the adopted fiscal year resolution, the City is reaffirming to the public and the State our intent to fund these projects with Road Maintenance and Rehabilitation Account revenues:

City Council 34 – 4 6/4/2024
Resolution No. 2024-XXX

Page 3 of 4 ends

Project Name Location Description Proposed
Project
Start date
Proposed
Project
Completion
date
Estimated
Useful
Life
Raitt Street McFadden Avenue to First Street
(Previously McFadden Avenue to
Civic Center Drive)
Road
Rehabilitation -
Grind/Overlay
with associated
concrete work.
7/1/24 12/31/25 20 years
Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall attest to and certify the vote adopting this Resolution.

ADOPTED this 4
th day of June, 2024.

Valerie Amezcua
Mayor
APPROVED AS TO FORM:

Sonia R. Carvalho, City Attorney
By:

Jose Montoya
Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers _
City Council 34 – 5 6/4/2024
Resolution No. 2024-XXX

Page 4 of 4 ends

CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Jennifer L. Hall, City Clerk, do hereby certify the attached Resolution No. 2024 -_____ to be the original resolution adopted by the City Council of the City of Santa Ana on June 4, 2024.

Date:

City Clerk
City of Santa Ana
City Council 34 – 6 6/4/2024
CITY OF SANTA ANA FY 24/25CIP

CAPITAL IMPROVEMENT PROJECT WORKSHEET
PROJECT DESCRIPTION:

Reconstruction/resurfacing of existing pavement and
replacement/installation of missing or damaged, curbs, gutters, sidewalks, driveway approaches, and wheelchair ramps within this segment of roadway.

PROJECT NEED:

The City's Pavement Management Program (PMP) has been
developed to prioritize and recommend the most cost-effective roadway repairs, and maximize the return from available funding for street pavement. This segment of Bedford Road pavement rehabilitation is identified as a high priority in the PMP.

PROJECT TITLE:

Bedford Rd Rehab: Main Place to
North City Limit
PROJECT CATEGORY:

Street Improvements
Arterial Street Rehabilitation

LOCATION MAP
AGENCY: DIVISION: CONTACT:

Public Works Design Engineering Gilbert Castillo, Senior Engineer PROJECT COSTS FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 Construction 173,000 - - - - - -
TOTAL 173,000 - - - - - -
SOURCE OF FUNDS FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 RMRA SB1 173,000 - - - - - -
TOTAL 173,000 - - - - - -
City Council 34 – 7
16 6/4/2024
CITY OF SANTA ANA FY 24/25CIP

CAPITAL IMPROVEMENT PROJECT WORKSHEET
PROJECT DESCRIPTION:

PROJECT NEED:

This segment of roadway has been identified as a high priority by the City's Pavement Management System. The pavement is deteriorating due to the weather, age, and heavy usage. Some of the adjacent curbs, gutters, driveway approaches, curb ramps, and sidewalks are also in various states of disrepair and require replacement.

PROJECT TITLE:

Civic Center Rehab: Minter -
Santiago
PROJECT CATEGORY:

Street Improvements
Arterial Street Rehabilitation

LOCATION MAP
AGENCY: DIVISION: CONTACT:

Public Works CIP Engineering Alex Bangean, Senior Civil Engineer PROJECT COSTS FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 Engineering 2,000,000 - - - - - -
TOTAL 2,000,000 - - - - - -
SOURCE OF FUNDS FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 GENERAL FUND 714,000 - - - - - -
RMRA SB1 1,286,000 - - - - - -
TOTAL 2,000,000 - - - - - -
City Council 34 – 8
20 6/4/2024
CITY OF SANTA ANA FY 24/25CIP

CAPITAL IMPROVEMENT PROJECT WORKSHEET
PROJECT DESCRIPTION:

PROJECT NEED:

The City's Pavement Management Program (PMP) has been
developed to prioritize and recommend the most cost-effective roadway repairs, and maximize the return from available funding for street pavement. This segment of Fairview Avenue pavement rehabilitation is identified as a high priority in the PMP.

PROJECT TITLE:

Fairview Ave Rehab: South City
Limits to Alton
PROJECT CATEGORY:

Street Improvements
Arterial Street Rehabilitation

LOCATION MAP
AGENCY: DIVISION: CONTACT:

Public Works CIP Engineering Alex Bangean, Senior Civil Engineer PROJECT COSTS FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 Construction 3,792,480 - - - - - -
Engineering 50,000 - - - - - -
TOTAL 3,842,480 - - - - - -
SOURCE OF FUNDS FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 RMRA SB1 3,842,480 - - - - - -
TOTAL 3,842,480 - - - - - -
City Council 34 – 9
22 6/4/2024
CITY OF SANTA ANA FY 24/25CIP

CAPITAL IMPROVEMENT PROJECT WORKSHEET
PROJECT DESCRIPTION:

PROJECT NEED:

The City's Pavement Management Program (PMP) has been
developed to prioritize and recommend the most cost-effective roadway repairs, and maximize the return from available funding for street pavement. This segment of Grand Avenue pavement rehabilitation is identified as a high priority in the PMP.

PROJECT TITLE:

Grand Ave Rehab: Edinger to
McFadden
PROJECT CATEGORY:

Street Improvements
Arterial Street Rehabilitation

LOCATION MAP
AGENCY: DIVISION: CONTACT:

Public Works CIP Engineering Alex Bangean, Senior Civil Engineer PROJECT COSTS FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 Construction 1,122,000 - - - - - -
TOTAL 1,122,000 - - - - - -
SOURCE OF FUNDS FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 RMRA SB1 1,122,000 - - - - - -
TOTAL 1,122,000 - - - - - -
City Council 34 – 10
23 6/4/2024
CITY OF SANTA ANA FY 24/25CIP

CAPITAL IMPROVEMENT PROJECT WORKSHEET
PROJECT DESCRIPTION:

PROJECT NEED:

The City's Pavement Management Program has been developed to identify total deferred maintenance requirements for the City's arterial network and to move toward preventative maintenance. As one of the City's arterial streets, Raitt Street pavement rehabilitation is identified as a high priority in the Pavement Management Program.

PROJECT TITLE:

Raitt St Rehab: McFadden to 1st
PROJECT CATEGORY:

Street Improvements
Arterial Street Rehabilitation

LOCATION MAP
AGENCY: DIVISION: CONTACT:

Public Works CIP Engineering Alex Bangean, Senior Civil Engineer PROJECT COSTS FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 Construction 1,616,000 - - - - - -
TOTAL 1,616,000 - - - - - -
SOURCE OF FUNDS FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 RMRA SB1 1,616,000 - - - - - -
TOTAL 1,616,000 - - - - - -
City Council 34 – 11
29 6/4/2024
City Clerk’s Office
www.santa-ana.org/city-clerks-office
Item # 35
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 4, 2024
TOPIC: 2024 General Municipal Election

AGENDA TITLE
November 5, 2024 General Municipal Election

RECOMMENDED ACTION

1. Adopt a resolution calling and giving notice of the November 5, 2024 General Municipal Election to be held in the City of Santa Ana for the election of certain officers; RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF SANTA ANA CALLING FOR AND GIVING NOTICE OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024, FOR THE

ELECTION OF CERTAIN OFFICERS AS PROVIDED BY THE PROVISIONS OF

ARTICLE XII OF THE CHARTER OF THE CITY OF SANTA ANA

2. Adopt a resolution requesting the Orange County Board of Supervisors to consolidate the November 5, 2024 General Municipal Election with the Statewide General Election; and
RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF SANTA ANA REQUESTING THE BOARD OF SUPERVISORS OF THE

COUNTY OF ORANGE TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE PURSUANT TO SECTION 10403 AND 10418 OF THE

ELECTIONS CODE

3. Adopt a resolution adopting regulations for candidate statements.

RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF SANTA ANA ADOPTING REGULATIONS FOR CANDIDATES FOR

ELECTIVE OFFICE PERTAINING TO CANDIDATE STATEMENTS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024 GOVERNMENT CODE §84308 APPLIES: No
City Council 35 – 1 6/4/2024
2024 General Municipal Election
June 4, 2024

Page 2 ends

DISCUSSION
Section 1201 of the City Charter provides that municipal officers shall be elected at a general municipal election to be held on the first Tuesday after the first Monday in November of each even-numbered year, along with the statewide general election. The November 5, 2024 election shall be for the election of a Mayor, for a full two-year term, and for three (3) Councilmember seats, in Ward Nos. 1, 3, and 5, each for full four-year term.

Pursuant to the Elections Code and City Charter, the three proposed resolutions are required to be adopted by the City Council prior to the election: i) call and give notice of the November 5, 2024 General Municipal Election for the election of certain officers; ii) request the Board of Supervisors consolidate the election with the statewide general election, and iii) adopt regulations for candidate statements.

The nomination/candidate filing period will open at 8:00 a.m. on Monday, July 15, 2024 and close at 5:00 p.m. on Friday, August 9, 2024. If an incumbent does not file, the filing period is extended for other candidates for that seat only to 5:00 p.m. on Wednesday, August 14, 2024.

Candidates for Mayor and Councilmember may choose to submit a Candidate Statement to be submitted to the voters as part of the Voter Information Guide and/or posted online. Submittal of a Candidate Statement is optional; those candidates who choose to submit a statement will be charged the cost of translating, printing, handling, and mailing such statement to voters. The Orange County Registrar of Voters has provided the following estimated costs for the 200-word Candidate Statement:

Position Printed in Voter
Information Guide and
Posted Online
Posted Online Only
Mayor $1,560.16 $509.82
Ward 1 Councilmember $731.33 $509.82
Ward 3 Councilmember $703.11 $509.82
Ward 5 Councilmember $652.67 $509.82
Ballot measures have been, and still may be, placed on the ballot by separate resolution(s), provided the resolution(s) calling the ballot measure(s) election is filed with the Orange County Board of Supervisors and Orange County Registrar of Voters no later than August 9, 2024, but preferably prior to July 19, 2024.

FISCAL IMPACT
The estimated cost for conducting the November 5, 2024 election is $425,000.

Sufficient funds are included in the City Clerk’s proposed FY2024/25 General Fund budget, Administration, Contract-Services Professional (no. 01107031 62300) which is being brought forward separately for City Council’s consideration.

City Council 35 – 2 6/4/2024
2024 General Municipal Election
June 4, 2024

Page 3 ends

EXHIBIT(S)

1. Resolution – Calling Election

2. Resolution – Requesting Consolidation

3. Resolution – Candidate Statement Regulation
Submitted By: Jennifer L. Hall, City Clerk
Approved By: Alvaro Nuñez, Acting City Manager
City Council 35 – 3 6/4/2024
Resolution No. 2024-XXX

Page 1 of 2 ends

RESOLUTION NO. 2024-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA ANA CALLING FOR AND GIVING NOTICE OF A

GENERAL MUNICIPAL ELECTION TO BE HELD ON
TUESDAY, NOVEMBER 5, 2024, FOR THE ELECTION OF

CERTAIN OFFICERS AS PROVIDED BY THE PROVISIONS

OF ARTICLE XII OF THE CHARTER OF THE CITY OF

SANTA ANA
WHEREAS, under the provisions of Article XII of the Charter of the City of Santa Ana, a General Municipal Election shall be held on Tuesday, November 5, 2024 for the election of municipal officers.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:

Section 1. That pursuant to the requirements of Article XII of the Charter of the City of Santa Ana, there is called and ordered to be held in the City of Santa Ana, California, on Tuesday, November 5, 2024, a General Municipal Election for the purpose of electing a Mayor for the full term of two years, and three Members of the City Council, one member to represent each of the following wards: Ward 1, Ward 3, and Ward 6, each for the full term of four years.

Section 2. That the ballots to be used at the election shall be in form and content as required by law.

Section 3. That the City Clerk is authorized, instructed, and directed to coordinate with the County of Orange Registrar of Voters to procure and furnish any and all official ballots, notices, printed matter, and all supplies, equipment, and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

Section 4. That the vote centers for the election shall be open at seven o’clock a.m. of the day of the election and shall remain open continuously from that time until eight o’clock p.m. of the same day when the vote centers shall be closed, pursuant to Election Code §10242, except as provided in §§14212, 14401 of the Elections Code of the State of California.

Section 5. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.

Section 6. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election in time, form, and manner as required by law.

City Council 35 – 4 6/4/2024
Resolution No. 2024-XXX

Page 2 of 2 ends

Section 7. This Resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall attest to and certify the vote adopting this Resolution.

ADOPTED this ____ day of June, 2024.

Valerie Amezcua
Mayor
APPROVED AS TO FORM:

Sonia R. Carvalho
City Attorney
By:

Laura A. Rossini
Chief Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers

CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Jennifer L. Hall, City Clerk, do hereby attest to and certify the attached Resolution No. 2024 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on _____________________, 2024.

Date:

Jennifer L. Hall
City Clerk, Elections Official
City of Santa Ana
City Council 35 – 5 6/4/2024
Resolution No. 2024-XXX

Page 1 of 3 ends

RESOLUTION NO. 2024-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA ANA REQUESTING THE BOARD OF

SUPERVISORS OF THE COUNTY OF ORANGE TO

CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO
BE HELD ON NOVEMBER 5, 2024, WITH THE STATEWIDE

GENERAL ELECTION TO BE HELD ON THAT DATE
PURSUANT TO SECTIONS 10403 AND 10418 OF THE

ELECTIONS CODE
WHEREAS, the City Council of the City of Santa Ana called a General Municipal Election to be held on November 5, 2024, for the purpose of the election of a Mayor, for a full term of two (2) years, and three (3) Members of the City Council, one member to represent each of the following wards: Ward, 1, Ward 3, and Ward 5, each for a full term of four (4) years; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the city the precincts, vote centers, and election officers of the two elections be the same, and that the county election department of the County of Orange canvass the returns of the General Municipal Election and that the election be held in all respects ad if there were only one election;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:

Section 1. That pursuant to the requirements of §§10403 and 10418 of the Elections Code, the Board of Supervisors of the County of Orange is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 5, 2024, for the purpose of the election of a Mayor and three (3) Members of the City Council, one member to represent each of the following wards: Ward 1, Ward 3, and Ward 5.

Section 2. That the county election department is authorized to canvass the returns of the General Municipal Election pursuant to the provisions of Elections Code §10411. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. The election will be held and conducted in accordance with the provisions of law regulating the statewide election.

Section 3. That the Board of Supervisors is requested to issue instructions to the county election department to take any and all steps necessary for the holding of the consolidated election.

City Council 35 – 6 6/4/2024
Resolution No. 2024-XXX

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Section 4. That the City of Santa Ana recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs.

Section 5. That the City acknowledges that the consolidated election requested by this Resolution will be held and conducted in the manner prescribed by California Elections Code §10418 and, to the extent that anything in this Resolution shall conflict with such provisions, the provisions of Elections Code §10418 shall control and supersede such inconsistent provision(s).

Section 6. That the City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the county election department of the County of Orange.

Section 7. This Resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall attest to and certify the vote adopting this Resolution.

ADOPTED this ____ day of June, 2024.

Valerie Amezcua
Mayor
APPROVED AS TO FORM:

Sonia R. Carvalho
City Attorney
By:

Laura A. Rossini
Chief Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
City Council 35 – 7 6/4/2024
Resolution No. 2024-XXX

Page 3 of 3 ends

Date:

Jennifer L. Hall
City Clerk, Elections Official
City of Santa Ana
City Council 35 – 8 6/4/2024
Resolution No. 2024-XXX

Page 1 of 3 ends

RESOLUTION NO. 2024-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA ANA ADOPTING REGULATIONS FOR

CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO

CANDIDATE STATEMENTS SUBMITTED TO THE VOTERS

AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER
5, 2024
WHEREAS, Section 13307 of the Elections Code of the State of California provides that the governing body of any local agency adopt regulations pertaining to materials prepared by any candidate for a municipal election, including costs of the candidate’s statement;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:

Section 1. GENERAL PROVISIONS.

That pursuant to §13307 of the Elections Code of the State of California, each candidate for elective office to be voted for at an Election to be held in the City of Santa Ana on November 5, 2024 may prepare a candidate’s statement on an appropriate form provided by the City Clerk. The statement may include the name, age, and occupation of the candidate and a brief description of no more than 200 words of the candidate’s education and qualifications expressed by the candidate themselves. The statement shall not include party affiliation of the candidate, nor membership or activity in partisan political organizations. The statement shall be filed in typewritten form in the office of the City Clerk at the same time the candidate’s nomination papers are filed. The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the next working date after the close of the nomination period, except as provided in §13309 of the Elections Code of the State of California.

Section 2. FOREIGN LANGUAGE POLICY.

A. Pursuant to the Federal Voting Rights Act, candidate statements will be translated into all languages required by the County of Orange. The County is required to translate candidate statements into the following languages:

Spanish, Vietnamese, Chinese, Korean.

B. The Orange County Registrar of Voters shall have all candidate statements translated into the languages specified in Section 2.A. above, print all translations of the candidate statements in the voter information guide, and these translations shall be made available at all vote centers and in the City Clerk’s office, upon request.

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Section 3. PAYMENT.

The City Clerk shall provide the total cost of printing, handling, translating, and mailing the candidate statements filed pursuant to this resolution, including costs incurred as a result of complying with the Voting Rights Act of 1965 (as amended), and require each candidate filing a statement to pay in advance to the local agency their pro rata share as a condition of having their statement included in the voter information guide. The City Clerk is not bound by the estimate, and may, on a pro rata basis, bill the candidate for additional actual expense or refund any excess paid depending on the final actual cost. In the event of underpayment, the City Clerk may require the candidate to pay the balance of the cost incurred. In the event of overpayment, the City Clerk shall prorate the excess amount among the candidates and refund the excess amount paid within 30 days following receipt of an invoice from the County of Orange for election services rendered.

The Orange County Registrar of Voters has provided the following estimated cost of translating, posting, printing, handling, and mailing of 200-word candidate statements for candidates for elective office in the City of Santa Ana:

No candidate will be permitted to include additional materials in the sample ballot package/voter information guide.

Section 5. That the City Clerk shall provide each candidate or the candidate’s representative a copy of this Resolution at the time nominating papers are issued.

Section 6. That all previous resolutions establishing Council policy on payment for candidate statements are repealed.

Section 7. That this Resolution shall apply only to the election to be held on November 5, 2024.

Section 9. This Resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall attest to and certify the vote adopting this Resolution.

ADOPTED this ____ day of June, 2024.

City Council 35 – 10 6/4/2024
Resolution No. 2024-XXX

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Valerie Amezcua
Mayor
APPROVED AS TO FORM:

Sonia R. Carvalho
City Attorney
By:

Laura A. Rossini
Chief Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers

Date:

Jennifer L. Hall
City Clerk, Elections Official
City of Santa Ana
City Council 35 – 11 6/4/2024
Finance and Management Services
www.santa-ana.org/finance
Item # 36
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 4, 2024
TOPIC: Water Shutoff Protection Act

AGENDA TITLE
Second Reading of an Ordinance Amending the City of Santa Ana Municipal Code Article II (Solid Waste Collection Regulations) of Chapter 16 (Garbage, Trash and Weeds), Article XII (Sanitation Services Users Charge) of Chapter 18 (Health and Sanitation), and Article II (Water) of Chapter 39 (Water and Sewers) to Comply with the Water Shutoff Protection Act
Legal notice published May 24, 2024 on the Orange County Reporter.

RECOMMENDED ACTION
Conduct a second reading and adopt an ordinance to amend Chapter 16 Article II (Solid Waste Collection Regulations, Chapter 18 Article XII (Sanitation Servicer User Charge), and Chapter 39 Article II (Water and Sewers) of the Santa Ana Municipal Code ORDINANCE NO. NS-3065 entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING ARTICLE II OF CHAPTER 16, ARTICLE XII OF CHAPTER 18, AND ARTICLE II OF CHAPTER 39 OF THE SANTA ANA MUNICIPAL

CODE TO COMPLY WITH THE WATER SHUTOFF PROTECTION ACT
GOVERNMENT CODE §84308 APPLIES: No

DISCUSSION
At the May 21, 2024 meeting, the City Council approved the first reading of an ordinance amending Chapter 16 Article II (Solid Waste Collection Regulations, Chapter 18 Article XII (Sanitation Servicer User Charge), and Chapter 39 Article II (Water and Sewers) of the Santa Ana Municipal Code. The City Council voted 6-0 on the item. Staff return the ordinance to the City Council for its second reading. If adopted by the City Council in today’s meeting, the ordinance will go into effect 30 days after, on July 4, 2024.

FISCAL IMPACT
There is no fiscal impact associated with this action. All administrative fees and charges are collected through the City’s municipal utility billing services.

City Council 36 – 1 6/4/2024
Water Shutoff Protection Act
June 4, 2024

Page 2 ends

EXHIBITS

1. Ordinance No. NS-3065
Submitted By: Kathryn Downs, FMSA Executive Director
Approved By: Alvaro Nuñez, Acting City Manager
City Council 36 – 2 6/4/2024
Ordinance No. NS-XXXX

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ORDINANCE NO. NS-XXXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA AMENDING ARTICLE II OF CHAPTER 16,
ARTICLE XII OF CHAPTER 18, AND ARTICLE II OF
CHAPTER 39 OF THE SANTA ANA MUNICIPAL CODE TO

COMPLY WITH THE WATER SHUTOFF PROTECTION ACT

THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS:

WHEREAS, the California Water Shutoff Protection Act (Health and Safety Code Sections 116900, et seq.) became effective January 1, 2019. The Water Shutoff Protection Act prohibits residential water service from being discontinued under specified circumstances.

WHEREAS, Executive Order N-42-20 which prohibited the discontinuation of water service due to the COVID-19 pandemic, and other applicable orders, expired in February 1, 2022; and,
WHEREAS, the Santa Ana City Council desires to ensure that water service remains fiscally stable and well-maintained for the health and betterment of the community; and,
WHEREAS, the Santa Ana City Council wishes to amend the various sections of the Municipal Code to adhere to the regulations and requirements set forth in the State of California’s Water Shutoff Protection Act to resume permitted water shutoffs due to nonpayment. Due to the fact the City’s refuse, sanitation, sewer services are bundled with water services, various sections of the Municipal Code require revision.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS:

Section 1. Recitals. The recitals above are true, correct and each incorporated herein by reference and adopted as findings by Santa Ana City Council (“City Council”).

Section 2. Section 16-35 of Article II (Solid Waste Collection Regulations) of Chapter 16 (Garbage, Trash and Weeds) of the Santa Ana Municipal Code is hereby amended to read as follows (additions are underlined and deletions are stricken):

Sec. 16-35. Service charges.
(a) Owners and/or occupants of any improved parcel of real property in the city, as shown on the latest county assessment roll, except any parcel receiving bin or rolloff service exclusively, shall pay to the city a solid waste collection service charge (refuse service charge) in such amounts, at such times, and in such manner as EXHIBIT 1
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shall be established by resolution of the city council. Such refuse service charge is imposed to provide for the continuing availability of curbside service and shall be due and payable in accordance with the terms of said resolution regardless of actual use thereof or of any interruptions or delays in such service, except to the extent reductions or refunds may be specifically authorized or directed by the executive director of public works or his or her their designee or by the executive director of finance and management services or his or her their designee. (b) For purposes of administrative convenience, the city council may establish billing units for payment of the said service charge consisting of one (1) or more occupancies within one (1) or more parcels. The said total refuse service charge reflecting the number of billable units shall be billed as provided in section 39-20 as part of the city's regular consolidated municipal utility services account/billing statement but shall be listed as a separate line item on the municipal utility services account/billing statement.
(c) A penalty of ten (10) percent shall be assessed on all unpaid refuse service charge bills thirty (30) days after the billing date. No penalty, however, will accrue until thirty (30) days after the date that the bill has been presented and determined to be delinquent in accordance with section 39-20.
(d) The said refuse service charge and any penalties accrued for failure to make timely payment therefore shall be a civil debt owing to the city. (e) In the event the occupant(s) of any property or premises, having registered a municipal utility services account and transferred municipal utility services into their own name as tenant(s), thereafter quit or otherwise vacate the premises, then responsibility for future municipal utility services charges, including refuse charges, shall revert default to the municipal utility services account of the property owner in accordance with section 39-16. It is the property owner’s obligation to contact the city to update billing records when a tenant vacates or a transfer of responsibility is necessary.
(f) In addition to all other civil remedies for collection of such indebtedness, in the event that the owner and occupant of the premises or property receiving refuse service are the same, then said civil debt against such customer or person shall be subject to special assessment and lien against said property in the manner provided by law. Establishment of a lien against the property shall remove said refuse charge(s) from the city's regular consolidated municipal utility services account/billing statement and toll the accrual of additional penalties therefore under this section and section 39-20.
(g) Charges for bin service, roll-off container service or for collection services more frequent or more extensive than that provided in this article for curbside service shall be paid directly to the city's solid waste collection contractor in accordance with such regulations as shall be established by contract or resolution of the city council.

Section 3. Section 18-603 of Article XII (Sanitation Services Users Charge) of Chapter 18 (Health and Sanitation) of the Santa Ana Municipal Code is hereby amended to read as follows (additions are underlined and deletions are stricken):

City Council 36 – 4 6/4/2024
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Sec. 18-603. Payment of bills and penalties.
(a) Date payment due. Bills for the sanitation charges made pursuant to this article and penalties, if any, are due and payable at the department of finance at the same time and in the same manner as all other parts of the regular consolidated municipal utility services account/billing statement.
(b) Penalties. A penalty of ten (10) percent shall be assessed on all unpaid sanitation charges and/or prior sanitation charge related penalties thirty (30) days after the billing date. No penalty, however, will accrue until thirty (30) days after the date that the bill has been presented and determined to be delinquent in accordance with section 39-20.
(c) Civil debt. Sanitation service charges and any corresponding penalties accrued for failure to make timely payment therefore shall be a civil debt owing to the city.

Section 4. Section 39-15 of Article II (Water) of Chapter 39 (Water and Sewers) of the Santa Ana Municipal Code is hereby amended to read as follows (additions are underlined and deletions are stricken):

Sec. 39-15. Definitions.

As used in this article:

Afterhours means that period of time allotted by the finance director for the performance of unscheduled water service turn on or turn off, occurring after the regularly established hours for the performance of scheduled water service turn on or turn off, as set by the director of finance.

Agency means public works agency, City of Santa Ana.

Applicant means an individual, partnership, association, corporation, receivership, trust, trusteeship, or agency of government, or other legal entity recognized by the laws of the state or of the United States applying for water service.

Backflow preventer means an approved device or means to prevent backflow into the city's potable water system.

Common area amenities means areas within residential, commercial, or industrial developments for the common use of residents or workers managed by the owner or his their agent, including but not limited to, rental offices, club houses, picnic areas, drinking fountains or filling stations, exercise rooms, and swimming pools.

City means the City of Santa Ana.

Cost means charges and/or fees which include the cost to the city of labor, materials, equipment, and overhead.

City Council 36 – 5 6/4/2024
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Customer means an individual, partnership, association, corporation, receivership, trust, trusteeship, or an agency of government or other legal entity recognized by the laws of the state or of the United States receiving water service.

Date of presentation means the date upon which a bill or notice is mailed to the customer at their mailing address of record, or in the event that a customer has signed up for electronic billing, the date upon which electronic notice is given to the customer at their electronic mailing address of record.

Director of finance or finance director means the chief administrative officer of the department of finance and management services or his their authorized designee.

Director of public works means the chief administrative officer of the public works agency, City of Santa Ana, or his their authorized designee.

Department of public works or public works department means the public works agency.

Department of finance or finance department means the finance and management services agency.

Due date means the date by which a bill must be paid by the customer to avoid delinquency charges, penalties, or other fees as a result of late payment, which is fourteen (14) days from the billing statement date, except when the 14th day falls on a weekend, city holiday, or city hall closure day, such bills will be due on the next following city business day. This date will be printed on all account/billing statements provided to customers.

Fee means the amount established by resolution of the city council which is intended solely to cover the reasonable administrative costs (time, materials, overhead) incurred in performing any specified act on behalf of any person or at any person's request for which said person shall be liable.

Gender pronouns: The masculine includes the feminine and neutral genders.

Greywater means untreated wastewater that has not been contaminated by any toilet discharge; has not been affected by infectious, contaminated, or unhealthy bodily wastes; and does not present a threat from contamination by unhealthful processing, manufacturing, or operating wastes. Greywater includes, but is not limited to, wastewater from bathtubs, showers, bathroom washbasins, clothes washing machines, and laundry tubs, but does not include wastewater from kitchen sinks or dishwashers, or as otherwise defined by the California Health and Safety Code.

Main means the distribution pipe line located in a street, highway, public easement, or private right-of-way which is used to serve the general public.

Master meter means a meter, read by the city, that measures water usage for an entire property or structure, which may include common areas.

City Council 36 – 6 6/4/2024
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Meter means any suitable water measuring device or facility which measures or determines the volumetric flow of water.

Multi-family dwelling/accommodation means an apartment building, apartment house, condominium complex, or any other group of residential units located upon a single premises, including mobile home parks, providing the residential units therein meet the requirements for a single family accommodation. Hotels or motels consisting primarily of guest rooms and/or transient accommodations are not classified as multifamily accommodations.

Municipal utility services account/billing statement means the consolidated account and/or billing statement to which refuse service charges, sanitation service charges, sewerage service charges and other sewerage related charges and fees, water commodity consumption charges, and other related water service charges and fees (including fire line service charges), together with corresponding penalties, as applicable, shall accrue and/or are stated.

Parcel means a division of land as shown in the Orange County Assessor's Book.

Person means an individual, partnership, association, corporation or an agency of any governmental organization, receivership, trust, trusteeship, or other legal entity recognized by the laws of the state or of the United States.

Premises or service address means the integral property or area, including improvements thereon, to which water service is provided or for which an application for water service is filed.

Private fire protection service means provision of stand-by readiness to serve water to premises through a separate fire service line connection for fire protection only, such fire service lines to be connected to automatic sprinkling system, hose attachments, or hydrants.

Property owner or owner means the record owner of real property, as shown on the most recently issued equalized assessment roll.

Recycled water means treated wastewater supplied by Orange County Water District from the Green Acres Project, or treated wastewater of comparable quality from such other water recycling system as the city shall designate.

Service area means all area within the city limits and the area served outside the city limits.

Service charge or service related charge shall mean any commodity consumption cost, whether measured by consumption or volume or whether applied as a pass-through adjustment rate, or any fixed amount or variable schedule of amounts authorized herein or authorized elsewhere in this chapter or Code relating to refuse, sanitation, sewerage, and water (including fire line service), as established by resolution of the city council.

Submeter means a device that measures water consumption of an individual unit within a multiunit residential structure or mixed-use residential and commercial City Council 36 – 7 6/4/2024
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structure, and that is owned and operated by the owner of the structure or the owner's agent.

Temporary service means a water service through a city-owned fire hydrant for special outdoor events, fairs, construction work, irrigation of vacant property, and similar uses which, because of their nature, will not be permanent.

Tenant improvement means changes made to the interior and exterior of a commercial or industrial property to accommodate the needs of tenants, including but not limited to, partitions, air conditioning, electrical, plumbing, fire protection, and security.

Theft of water means the taking of water from any city water main, hydrant, service, or facility without a meter or the written permission of the city in the form of a permit or application as provided for in the provisions of this article.

Unit of water means one hundred (100) cubic feet.

Water facilities means water distribution and treatment components, individually or as a whole, operating to provide storage, flow, and pressurized domestic water.

The following components make up water facilities: wells, reservoirs, pipelines, system valves, control valves, fire hydrants, interties, disinfection treatment, instrumentation and controls, power distribution, and supervisory control and data acquisition system.

Water service means the tapping connection, pipe, valves, and other facilities by means of which water is conducted from the main water line, whether public or privately owned, to the meter.

Section 5. Section 39-16 of Article II (Water) of Chapter 39 (Water and Sewers) of the Santa Ana Municipal Code is hereby amended to read as follows (additions are underlined and deletions are stricken):

Sec. 39-16. Application for turning on water and transfer of responsibility. (a) Procedures; registration fee. An application to have water turned on or to transfer responsibility for water charges shall be made to the finance department of the city in conformance with the procedures established by the director of finance. A "registration fee" for the administrative cost therefore shall be made; provided, however, that the reversion of responsibility for water charges from a tenant to a previously registered property owner or other customer possessing the legal right to act as a lessor, at the time of the termination of such tenant's tenancy, shall not constitute a new application for turning on water or transfer of responsibility for water charges and shall not be subject to the "registration fee”. (b) Transfer of responsibility. The customer of record shall remain a customer of record until a transfer of responsibility occurs. If no customer is on file with the City, the customer on record, by default shall be the property owner of the premises where water service is being provided. If there is ever any dispute as to who should be the customer of record, by default, the customer of record shall be the property City Council 36 – 8 6/4/2024
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owner of the premises where the water service is being provided. Within the meaning of this chapter, a transfer of responsibility for water service charges occurs when any of the following conditions are met:
(1) The owner or other customer possessing the legal right to act as a lessor, or his authorized agent, informs the department of finance that a tenant has assumed lawful control of the property or premises or that there has been a change of lawful tenants; alternatively, the initial tenant or a new incoming tenant informs the department of finance that they have assumed lawful control of the property or premises. The property owner, authorized agent, or other customer possessing the legal right to act as an owner or lessor, informs the department of finance that a tenant has assumed lawful possession of the premises or that there has been a lawful change in possession by a new tenant, and the department can confirm with the tenant that such a change occurred, and the tenant agrees to assume responsibility for water service charges moving forward.

Alternatively, a tenant independently informs the department of finance that they have assumed lawful possession of the premises and desires to assume responsibility for water service charges.
(2) A lease or other rental agreement (signed by the owner or his authorized agent) is provided, clearly specifying that the named tenant shall be responsible for municipal utility services in tenant's own name. A triple-net lease or other written agreement obligating a tenant to pay charges for water services and other municipal utility services provided to the property or premises in the name of the owner or lessor shall not constitute a transfer in responsibility, and liability for the payment of water charges shall be deemed to remain with the owner or lessor. A written lease or other rental agreement (signed by the owner, or their authorized agent, and the tenant) is provided, clearly specifying that the named tenant shall be responsible for municipal utility services directly with the utility provider, and the tenant agrees to assume responsibility for water service charges. (3) A recorded deed or other government-issued record is provided indicating that a property was purchased by a new owner, and the new owner contacts the City to assume responsibility for water service charges.

Property owners, whether in the sale or acquisition of real property, are responsible for the transfer of responsibility and determining who is the appropriate customer of record with the City. The customer of record will be held liable for the payment of water service charges and other municipal utility services at the premises.
(4) In accordance with the Water Shutoff Protection Act, California Health and Safety Code §§ 116900, et seq., as amended from time to time. (c) Deposit. Each applicant, except for the property owner of record, shall make a water service deposit at the time of making an application for turning on water or transfer of responsibility in an amount as set forth by resolution of the city council.

The deposit may be refunded or applied as an account credit if and when all municipal utility services account bills rendered have been paid before their delinquent date for a period of one (1) year.

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(d) In the event occupant(s) of any property or premises having registered a municipal utility services account and transferred municipal utility services into their own name as tenant(s), pursuant to a lease or other rental agreement (signed by the owner or his their authorized agent) clearly specifying that the named tenant(s) shall be responsible for municipal utility services in tenant(s)' own name, thereafter quit or otherwise vacate the premises, then responsibility for future charges shall revert to the municipal utility services account of the property owner.

Section 6. Section 39-19 of Article II (Water) of Chapter 39 (Water and Sewers) of the Santa Ana Municipal Code is hereby amended to read as follows (additions are underlined and deletions are stricken):

Sec. 39-19. Water rates, service charges, fees and costs. (a) Water commodity consumption and service charges.
(1) Commodity charges. Quantitative consumption rates shall be charged in the amount which the city council shall establish by resolution and in accordance with applicable law.
(2) Basic service charges. Charges shall be made for services rendered to provide and maintain a potable water supply and to provide standby readiness in the amounts established by and for the purposes described in the resolution adopted by the city council and in accordance with applicable law.
(3) Multi-family per unit charge. Basic service charges shall be applied to developments that meet the definition of multi-family
dwelling/accommodation where the individual units are not individually metered by the city.
(4) Private fire service protection charge (fire line charge). A charge shall be made for the service rendered to provide readiness to deliver relatively large quantities of water for short periods of time for on-site private fire protection and suppression systems in the amounts established by and for the purposes described in the resolution adopted by the city council and in accordance with applicable law.
(b) Fees to establish water service. All applicants, prior to connecting to a water main or prior to an increase in size of an existing water meter or service, shall apply and obtain a permit to do so and pay the following fees in amounts as established by resolution of the city council.
(1) New water service application fee — see section 39-17. (2) Water meter cost and installation fee — see section 39-17. (c) City is authorized to charge/levy the following administrative and other fees and deposits in an amount established by resolution of the city council, excepting any restrictions of imposition of such fees or deposits as detailed in the Water Shutoff Protection Act, California Health and Safety Code § 116900, et seq., as amended from time to time:
(1) Meter turn on or meter turn off fee during weekdays for new water turn on services and delinquent accounts — see section 39-20(e).

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(2) Afterhours turn on or turn off fee during afterhours and holidays for new water turn on services and delinquent accounts when requested by customer — see section 39-20(e).
(3) Special investigation/meter reread fee when requested by customer or when meter was inaccessible at the time the routine meter read was attempted by the city — see section 39-20(c).
(4) Meter removal fee or meter resetting fee (to re-install meter when meter was removed for non-payment or for violation of this Code) — see section 39-20(e).
(5) Meter test fee (when requested by customer) — see section 39-21(a). (6) Temporary construction meter deposit — see section 39-24. (7) Temporary construction meter daily rental fee — see section 39-24. (8) Field collection fee — see section 39-20(j).
(9) Return payment service fee — see section 39-20(m).
(10) Fire flow test application fee — see section 39-28. (11) Fire flow test witness fee — see section 39-28.
(12) Backflow preventer third-and-final notice generation fee — see section 39- 29(e).
(13) Water service deposit — see section 39-16(c).
(14) Backflow device testing administrative fee — see section 39-29(e). (15) Registration fee — application for turning on water and transfer of responsibility — see section 39-16(a).
(16) Tag fee — see Sec. 39-20(d).
(17) Removal of unauthorized "straight pipe" connections fee — see section 39-20(k).
(18) In street cut-off (of water services) fee — see section 39-20(l). (19) Meter read trip fee — see section 39-20(e).
(20) Abstract of billing history fee — Whenever a customer of record or his agent requests a history of charges and/or fees billed to a municipal utility services account registered in the name of the customer, an abstract of billing history shall be provided and an "abstract of billing history fee" shall be added to the customer's next regularly scheduled municipal utility services account/billing statement. Whenever such request is made by a third party pursuant to customer's letter of authorization, the fee shall be payable in advance.

Section 7. Section 39-20 of Article II (Water) of Chapter 39 (Water and Sewers) of the Santa Ana Municipal Code is hereby amended to read as follows (additions are underlined and deletions are stricken):

Sec. 39-20. Payment of water bills and penalties; municipal utility services account/billing statement.
(a) Date payment due. Water commodity consumption charges, and related water service charges (including any fire line charges), and other fees and penalties shall be stated as part of a municipal utility services account/billing statement along with City Council 36 – 11 6/4/2024
Ordinance No. NS-XXXX

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refuse related charges as established pursuant to section 16-38, sanitation related charges as established pursuant to section 18-601 et seq., sewerage related charges as established pursuant to section 39.55.1 et seq., and all above related corresponding associated penalties, and are due and payable to the department of finance on the due date which is on the date of presentation and become delinquent thirty (30) days after the date of such presentation fourteen (14) days from the billing statement date except that when the 30th 14th day falls on a weekend, city holiday, or city hall closure day, such bills shall be due on the next following city business day. Any charge for water supplied to any customer, or any related charges or fees (including fire line charges), together with any refuse service, sanitation service, sewerage service charges, fees, or penalties due to the city from such customer, or due from any person who has applied for water service, as herein provided for, shall be added to any billing being currently rendered to such person, and the same shall become a part of his their current municipal utility services account/billing statement for water service and subject to all of the provisions of this chapter. Partial payments made upon municipal utility services account/billing statements shall be applied in the following order:
(1) Refuse service related charges,
(2) Sanitation related charges,
(3) Sewerage service related charges,
(4) Water service commodity consumption charges and related charges (including fire line service charges) and fees established pursuant to section 39-19, and
(5) Corresponding penalties and fees as provided respectively under sections 16-38(c), 18-603(b), 39-55.2(a), and 39-20(d). (b) Failure of meter to register correctly. If a meter fails to register during any period, or is known to have registered inaccurately, the customer shall be charged for a seasonally adjusted average daily consumption for a period of similar duration determined when the meter was registering accurately.
(c) Meter reread and meter investigation. When a meter box is inaccessible at the time the routine meter read was attempted by the city or when consumption occurs in connection with a previously turned off meter, or when a customer requests that the city verify the accuracy of the read as shown on the bill, the customer shall be charged a "special investigation/meter reread fee" as established by resolution of the city council for sending a field representative to the service address to investigate the meter and obtain a reading or rereading of the meter. If the reading or rereading shows that the previous read is in error, no special investigation/meter reread fee will be imposed; otherwise such charge shall be added to the customer's next regularly scheduled water bill.
(d) Penalties. A penalty of ten (10) percent shall be assessed on the unpaid balance of all unsatisfied municipal utility services account/billing statement charges and fees, and penalties thirty (30) days after the presentation billing statement date, in accordance with subsection (a). Thereafter, a past due delinquency notice shall be presented to the customer. On the next city working day following the seventh (7th) day after the date of presentation of the past due notice, the water service shall be subject to turn off at the premises. Two (2) days before the intended turn off of City Council 36 – 12 6/4/2024
Ordinance No. NS-XXXX

Page 11 of 15 ends

water service, a discontinuance of service notice for non-payment "turn-off tag" shall be affixed to the premises and a "tag fee" imposed for such notification service. Thereafter, service may be discontinued if the bill is not satisfied within the time required by such notice. Once turned off, water service shall remain off until all charges, penalties and fines have been paid, unless an application to have the water turned on is received accompanied by evidence satisfactory to the department of finance of change of ownership or change in tenants. The delinquency notice shall advise the customer that service may be discontinued if the bill remains unpaid after sixty (60) days from the due date. The notice shall be mailed to the service address and mailing address, if different. The notice shall comply with the Water Shutoff Protection Act, specifically California Health and Safety Code § 116908(a)(1), as may be amended from time to time. If written notice of payment delinquency and impending discontinuation is returned undeliverable, the City shall comply with the Water Shutoff Protection Act, specifically California Health and Safety Code §116908(a)(2) as may be amended from time to time, in an attempt to make contact with the customer. Two (2) business days before the intended turn off of water service, a discontinuance of service “tag” for non-payment shall be affixed to the premises and a "tag fee" imposed for such notification service. Thereafter, service may be discontinued if the bill is not satisfied within the time required by such notice. A residential customer may avail themselves of any applicable rights under the Water Shutoff Protection Act, California Health and Safety Code § 116900, et seq., as may be amended from time to time, prior to water service discontinuation. Once turned off, water service shall remain off until all charges, penalties and fines have been paid, unless an application to have the water turned on is received accompanied by evidence satisfactory to the department of finance of change of ownership.

Upon the receipt of such evidence, the application for turning on water or transfer of responsibility for water charges shall be processed as provided for in section 39-16.
(e) Turn off and turn on of service. When the water has been turned off for nonpayment or for the violation of any provision set forth in this code or any ordinance, regulation or requirement of the city, such water shall not be turned on again unless the violation has been corrected and all charges and penalties have been paid, unless the turn off is exempt from such payment by reason of change of person receiving service. A "meter turn on fee" and "meter turn off fee" shall be made for each separate trip to the premises for the purposes of turning on or turning off water service during weekdays for new water turn on services and delinquent accounts and whenever otherwise requested by customer; provided, however, that turn on or turn off of water service during afterhours and holidays for new water turn on services and delinquent accounts when requested by customer, shall be subject to a special "after hours turn on or turn off fee" as established by resolution of the city council. After a water meter has been turned off for a period of seven (7) days, the meter may be removed from the service. A "meter removal fee" as established by resolution of the city council shall be made for the cost of meter removal. A "meter resetting fee" as established by resolution of the city council shall be made for the reinstallation of the meter and the turning on of the water. A City Council 36 – 13 6/4/2024
Ordinance No. NS-XXXX

Page 12 of 15 ends

"meter read trip fee" as established by resolution of the city council shall be payable for each trip to a customer's premises for the purposes of performing a meter read for closing out of service, or for start of service, or for transfer of responsibility for service. Fees as herein provided shall be added to the next water bill issued after date of turn off, turn on, special investigation/reread, meter resetting/reinstallation or other designated trip, provided the amount is not collected in advance of the turn off, turn on, special investigation/reread, meter resetting/reinstallation, or other designated trip. For the purposes of this article, the term "trip" shall not include the regularly scheduled routine reading of customers' meters. (f) Closing bill. Upon the rendering of the final bill for service, the city shall not refund any credit balance or deposit of less than one dollar ($1.00); any checks returned that cannot be delivered or are unclaimed shall be forfeited unless the applicant applies for refund within twelve (12) months.
(g) Individual liability for joint service. Two (2) or more persons who join in one (1) application or contract for service shall be jointly and severally liable thereunder and shall be billed by means of a single periodic bill presented to the person designated in the application process to receive the bill. (h) Change of address. Water service shall not be given to any customer upon change of address until all delinquent charges owing thereon at a former place of residence or business have been paid.
(i) Transfer of charges. When a customer maintains separate water service at multiple premises in the city under the same name or identity of ownership or tenancy, and water service has been discontinued at one (1) premises for nonpayment, the department of finance may transfer the unpaid balance owing from the account to which service has been discontinued to any other account belonging to the customer for which water service remains ongoing. (j) Field collection fee. When a representative of the city collects payment of delinquent charges owing from a customer or customer's agent in the field, in lieu of performing a turn off or removal of customer's meter, a "field collection fee" shall be applied and collected from the customer or his their agent at the same time as all other delinquent charges and fees owing are collected. (k) Removal of unauthorized "straight pipe" connections. Whenever a customer has connected to the city's water service through an unauthorized straight pipe connection, the city shall cause such connection to be removed and a "removal of unauthorized straight pipe connections fee" as established by resolution of the city council shall be made and billed to the customer.
(l) In street cut-off of water services. Whenever, in the discretion of the director of public works any customer's access to the water service must be physically severed by means of an in street cut-off of water service, whether due to authorized turn on of water service, or unauthorized straight pipe connection, or other violation of city code, an "in street cut-off fee" as established by resolution of the city council shall be made and billed to the customer.
(m)Any charge, fee, or deposit owing to the city which has been paid by an instrument such as a check or draft which is dishonored upon presentation for payment, shall be void and of no effect from its inception. The director of finance, may, in his their discretion, withhold the effect of this provision if the instrument is redeemed within City Council 36 – 14 6/4/2024
Ordinance No. NS-XXXX

Page 13 of 15 ends

fifteen (15) days of its return. Payment of charges, fees, or deposits following a dishonor of such instrument upon presentation for payment shall thereafter be made only by credit card, cashier's check, money order, or cash, which amount shall include any applicable penalty, as well as a "return payment service fee". The director of finance shall be authorized to reject payment other than by cash, cashier's check, or money order from such customer or such customer's agent for a period of two (2) years following any such dishonor.
(n) Water service commodity consumption charges and water related charges and fees established pursuant to section 39-19, and any corresponding penalties accrued for failure to make timely payment therefore pursuant to section 39-20 shall be a civil debt owing to the city.

Section 8. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.

Section 9. This ordinance shall become effective thirty (30) days after its adoption.

Section 10. The City Clerk shall certify the adoption of this ordinance and shall cause the same to be published as required by law.

ADOPTED this day of May, 2024.

Valerie Amezcua
Mayor
APPROVED AS TO FORM:

Sonia R. Carvalho, City Attorney
By:

Andrea Garcia-Miller
Assistant City Attorney
City Council 36 – 15 6/4/2024
Ordinance No. NS-XXXX

Page 14 of 15 ends

AYES: Councilmembers ________________________________
NOES: Councilmembers ________________________
ABSTAIN: Councilmembers __________
NOT PRESENT: Councilmembers ______
City Council 36 – 16 6/4/2024
Ordinance No. NS-XXXX

Page 15 of 15 ends

CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, JENNIFER L. HALL, City Clerk, do hereby attest to and certify that the attached Ordinance No. NS-3052 to be the original ordinance adopted by the City Council of the City of Santa Ana on May 217, 2024 and that said ordinance was published in accordance with the Charter of the City of Santa Ana.

Date: ______________________ ________________________________ Jennifer L. Hall
City Clerk
City of Santa Ana
City Council 36 – 17 6/4/2024
City Clerk Office
www.santa-ana.org/city-clerks-office/
Item # 37
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 4, 2024
TOPIC: June 18, 2024 City Council Meeting

AGENDA TITLE
Cancellation or Rescheduling of June 18, 2024 Regular City Council Meeting

RECOMMENDED ACTION

1. Approve resolution canceling the Regular City Council meeting scheduled for June 18, 2024.

RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA ANA CANCELING THE REGULAR CITY COUNCIL MEETING OF JUNE 18, 2024
OR

2. Approve resolution rescheduling the Regular City Council meeting scheduled for June 18, 2024 to a date to be determined by the City Council.

RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA ANA RESCHEDULING THE REGULAR CITY COUNCIL MEETING OF JUNE 18, 2024 TO _______________, 2024.

GOVERNMENT CODE §84308 APPLIES: No

DISCUSSION
Section 409 of the City Charter states that the City Council shall provide for the time, place, and manner of holding its meetings. On July 18, 2023, City Council approved Resolution No. 2023-047 amending the Council rules and procedures to update the time of regular meetings and effect other changes. Section 2(a) of Resolution No. 2023-047 states “Regular meetings of the City Council shall be held on the first and third Tuesdays of each month beginning on January 1, 2014.”
City Council 37 – 1 6/4/2024
June 18, 2024 City Council Meeting
June 4, 2024

Page 2 ends

Subsequently, on November 21, 2023, City Council approved the calendar of regularly scheduled City Council meetings in 2024, as amended. This approved calendar, in accordance with Resolution No. 2023-047, included a regularly scheduled meeting on June 18, 2024, the third Tuesday of the month.

Staff has recently become aware that there is likely to be a lack of quorum on June 18, 2024, which would necessitate the meeting to be canceled, rescheduled, or adjourned to a later date. Section 2(b) of Resolution No. 2023-047 states that “any regular meeting of the Council may be set, canceled, or rescheduled to a different date, time, or location by resolution duly adopted by the affirmative votes of a majority of the City Council or by any other manner as provided by law.”
Accordingly, Staff recommends Council adopt a resolution either canceling the June 18, 2024 regular meeting or rescheduling the June 18, 2024 regular meeting to a different date to be determined by the Council. A meeting rescheduled in this manner would be considered a regular meeting. The primary item of business that would be on the agenda for June 18, 2024 is the second reading of an ordinance adopting the FY 2024/25 budget, which has been determined could be heard at the next regular City Council meeting scheduled for July 16, 2024. An ordinance cannot be adopted at a special meeting.

Staff will make appropriate notifications of the action(s) taken by the City Council.

FISCAL IMPACT
There is no fiscal impact associated with this action.

EXHIBIT(S)

1. Resolution No. 2023-047 – Rules and Procedures

2. 2024 Santa Ana City Council Meetings Schedule

3. Resolution – Canceling June 18, 2024 Meeting

4. Resolution – Rescheduling June 18, 2024 Meeting
Submitted By: Jennifer L. Hall, City Clerk
Approved By: Alvaro Nuñez, Acting City Manager
City Council 37 – 2 6/4/2024
RESOLUTION NO. 2023- 047

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA ANA AMENDING THE COUNCIL RULES AND

PROCEDURES TO CHANGE THE TIME OF REGULAR

MEETINGS, UPDATE THE RULES OF PROCEDURE,

CLARIFY DECORUM REGULATIONS, AND ADDRESS

TELECONFERENCING, AND REPEALING RESOLUTION
NO. 2013- 019.

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 hereby finds, determines and declares as follows:

A. Section 409 of the City Charter and Sections 2- 100 et seq. of Santa Ana Municipal Code call for the City Council to adopt rules and procedures for the scheduling and conducting of meetings of the City Council.

B. The Ralph M. Brown Act found at Chapter 9, Part 1 of Division 2 of Title 5 of the California Government Code beginning with Section 54950 ( the ' Brown Act") sets forth statewide standards for meetings of local agencies including the Santa Ana City Council.

C. The City Council desires to amend the City Council Rules and Procedures to change the time of regular meetings, updates the rules of procedure, clarify decorum regulations, and address teleconferencing.

Section 2. City Council meetings, time and place.
a) Regular meetings of the City Council shall be on the first and third Tuesdays of each month beginning on January 1, 2014. The meeting shall begin between the hours of 3: 00 P. M. and 5: 00 P. M. for Closed Session followed by the Regular Open Meeting at 5: 30 P. M., with the specific time legally noticed and posted on the agenda. The City Council shall publicly convene the meeting and then recess to conduct closed or executive sessions. Regular meetings of the City Council shall be convened in the Council Chamber or as noted on the agenda and at the time specified on the agenda. After being convened, all meetings may be adjourned to such other place or places as the City Council may order.
b) Notwithstanding any other provision of this resolution, any regular meeting of the Council may be set, canceled, or rescheduled to a different date, time, or location by resolution duly adopted by the affirmative votes of a majority of the City Council or by any other manner as provided by law.

The date, time, and location of any meeting set or rescheduled to a City Council 37 – 3 6/4/2024
different date, time, or location shall be noticed and posted in the manner provided by law.
c) Special meetings of the City Council may be held at such locations as stated in the action calling such meetings and otherwise in conformance with the Brown Act. A special meeting may be called by the Mayor or the Mayor Pro Tern, in the Mayor' s noticed absence, by either of them contacting the City Clerk and requesting orally or in writing the call of a special meeting. A majority of the members of the City Council can also call a special meeting by delivering a written notice to the City Clerk of a request for a special meeting. Upon receiving a request from the Mayor, Mayor Pro Tern, or a majority of the City Council, the City Clerk shall notice the special meeting.
d) All meetings are scheduled to terminate at 11: 59 P. M. on the same day it began. At 11: 00 P. M., the City Council shall determine which of the remaining agenda items can be considered and acted upon prior to 11: 59 P. M., and will continue all other items on which additional time is required until a future City Council meeting. A majority vote of the Council is required to extend a meeting beyond 11: 59 P.M. to discuss specified items.

Section 3. Agenda.

The City Clerk shall prepare an agenda for each regular and special meeting of the City Council containing all items known by such officer to be considered. The order of placing items on the agenda prior to posting shall be at the discretion of the City Manager, in consultation with the Mayor. The agenda shall contain such information as required by the Brown Act. In addition, the agenda shall contain the following sections to provide for reporting by the City Council: AB1234 reports, Council Committee reports, and Regional Agency reports.

Section 4. Rules of Procedure.

Procedures before the City Council shall be governed by the most current edition of Rosenberg' s Rules of Order. Application of such procedures shall be vested in the sound discretion of the presiding officer.

Section 5. Decorum; Time limits and other regulations for speaking. a) The City Council shall preserve decorum and an orderly procedure during debate. Councilmembers desiring to speak shall seek recognition from the presiding officer. Upon being recognized, a Councilmember shall confine their comments to the questions under debate. A Councilmember, once recognized, should not be interrupted unless a point of order is raised by another member. The presiding officer should not recognize a Councilmember to speak who has already spoken on a matter under debate until all other Councilmembers who wish to be heard have spoken. A Councilmember should limit them self to three ( 3) minutes at any one time without City Council 37 – 4 6/4/2024
permission of the presiding officer. At the end of each meeting, the presiding officer shall recognize each Councilmember who may speak up to three ( 3) minutes on matters of public or community interest.
b) The agenda for all regular meetings of the City Council shall provide members of the public the opportunity to address the City Council on agendized matters and non- agendized matters as required by the Brown Act. All requests to speak shall be submitted in writing to the City Clerk. No such requests shall be accepted after the public comment session begins without permission of the presiding officer. The agendas for adjourned, special, and emergency meetings of the City Council shall provide for public comment as provided in the Brown Act. c) Subject to (d) below, members of the public shall be given a total of three 3) minutes to: ( i) address the City Council on any and all matters contained on the City Council agenda as well as the agendas of any of the City's related entities, such as the Successor Agency ( formerly the Community Redevelopment Agency) or the Housing Authority, if those entities have meetings scheduled at the same time, and/ or ( ii) address any matters of public interest provided that they are within the jurisdiction or official business of the City of Santa Ana. The presiding officer shall have the discretion to reduce and also to increase the time allotted to speakers. The City Council may, by majority vote, address/ revise the reduced or increased time allotted to speakers. d) For general public hearings, members of the public shall be given three (3) minutes to address the City Council for each duly noticed hearing, unless continued prior to taking testimony.
i. For public hearings related to land use, entitlements, or appeals, the applicant/appellant and/or their representative(s) whose matter is the subject of the public hearing shall be given ten ( 10) minutes for their initial presentation.

Members of the public shall be given three ( 3) minutes to address the City Council on the subject of the public hearing. The applicant/appellant and or their representative( s) shall be given reasonable time for rebuttal comments. e) Upon being recognized by the presiding officer, a speaker should step to the designated speaker location, state their name and address for the record, identify the matter by agenda designation ( if applicable), and direct remarks to the City Council as a body and not to any individual member thereof. A speaker shall not be denied an opportunity to speak if they do not wish to state their name and address for the record.

No person other than members of the City Council and the person having the floor may be permitted to enter into the discussion without permission of the presiding officer. f) It shall be within the sound discretion of the presiding officer to set a maximum time for public comment. In setting any limit, the presiding officer shall take into consideration the level of public interest in the matters in question, the length of the meeting and the need to provide for an orderly and effective meeting. As a means of limiting time while maximizing the public' s opportunity to address the City Council, if a City Council 37 – 5 6/4/2024
group of people seeks to address the City Council on the same matter or topic, the presiding officer may request the group to designate a spokesperson or limited number of speakers to address the City Council.
g) The following rules shall apply to all persons addressing the City Council.

All speakers are requested to:
direct all testimony to the City Council or the presiding officer and not individual Councilmembers,
when speaking on agenda matters, limit comments to the agenda item( s), when speaking on non -agenda matters, limit comments to matters within the jurisdiction or official business of the City of Santa Ana, and, refrain from profane language, racial epitaphs, and libelous or slanderous statements that disturb the decorum of the meeting.
h) The presiding officer shall have the power and responsibility to enforce decorum and order of the meeting as set forth in Section 2- 104( c). Among other means of enforcement, the presiding officer may order the podium microphone turned off and/ or video broadcast interrupted when the presiding officer has determined that an individual or group has disrupted the meeting, or the individual or group has exceeded their allotted time to speak without permission of the presiding officer. i) All cell phones, pagers, or electronic devices belonging to the public, press, or personnel that may be disruptive must be placed on vibrate mode/ quiet or be turned off while a meeting is in session.

Section 6. Teleconferencing.

Remote participation in a City Council meeting shall be governed by the teleconferencing provisions set forth in the Ralph M. Brown Act ( Government Code Section 54950, et seq.) and by a Teleconferencing Policy duly adopted by the City Council.

Section 7. The provisions of Sections 4, 5, and 6 of this resolution shall apply to meetings of committees of the City Council, as may be modified from time to time by such committees.

Section 8. This Resolution shall supersede Resolution No. 2013- 019 and shall take effect immediately upon its adoption by the City Council. The City Clerk shall attest to and certify the vote adopting this Resolution.

ADOPTED this 18th day of July 2023.

City Council 37 – 6 6/4/2024
APPROVED AS TO FORM:

Sonia R. Carvalho, City Attorney
By: IS AttXl
Laura A. Rossini
Chief Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
G1Z. I Z.111T81GiTa' i1: 1
alorAri meVz a ay
Amezcua,
Bacerra, Hernandez, Lopez, Penaloza,
Phan, Vazquez ( 7) None (
0) None (
0) NOT
PRESENT: Councilmembers None (0) CERTIFICATE

OF ATTESTATION AND ORIGINALITY,
JENNIFER L. HALL, City Clerk, do hereby attest to and certify the attached Resolution No. 2023- 047 to be the original resolution adopted by the City Council of the City of Santa Ana on Jul v18, 2023. Date:
cz( c7va nnifer
L. • al uci
r
City
of Santa Ana
City Council 37 – 7 6/4/2024
Draft

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HOLIDAY - CITY HALL CLOSED
CITY HALL CLOSED - 9/80 WORK SCHEDULE
CITY COUNCIL SPECIAL MEETING (July 30 (if necessary); December 10 - Certification of Election Results, per Charter Sec. 400) CITY COUNCIL REGULAR MEETING (January 2, July 2, September 3, and November 5 (Election Day) Canceled) CITY HALL WINTER CLOSURE (As approved by various labor group Memoranda Of Understanding) * Special Meetings may be scheduled 24-hours in advance (as permitted by the Brown Act).

For agendas and meeting location, please refer to the City's website at: www.santa-ana.org/agendas-and-minutes/ *Approved 11/21/2023
April May June
Santa Ana City Council Meetings Schedule
2024
January February March
July August September
October November December
City Council 37 – 8 6/4/2024
Resolution No. 2024-XXX

Page 1 of 2 ends

RESOLUTION NO. 2024-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA ANA CANCELING THE REGULAR CITY COUNCIL
MEETING OF JUNE 18, 2024
WHEREAS, Section 409 of the Santa Ana City Charter states that the City Council shall provide for the time, place, and manner of holding its meetings; and WHEREAS, City Council has adopted Rules and Procedures via Resolution No. 2023-047, of which Section 2(a) states “Regular meetings of the City Council shall be held on the first and third Tuesdays of each month beginning on January 1, 2014;” and WHEREAS, on November 21, 2023, City Council approved the calendar of regularly scheduled City Council meetings in 2024, as amended, which included a regular meeting on the third Tuesday of June, June 18, 2024; WHEREAS, Resolution No. 2023-047, Section 2(b) provides that any regular meeting of the Council may be set, canceled, or rescheduled to a different date, time, or location by resolution duly adopted by the affirmative votes of a majority of the City Council or by any other manner as provided by law. The date, time, and location of any meeting set or rescheduled to a different date, time, or location shall be noticed and posted in the manner provided by law; and
WHEREAS, it is now desirable due to a potential lack of quorum to cancel the previously scheduled June 18, 2024 City Council meeting.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:

Section 1. The regular City Council meeting of June 18, 2024 is hereby canceled.

Section 2. The City Clerk is directed to post a Notice of Cancellation and waive notice to the City Council of said meeting as required by the Government Code.

Section 3. This Resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall attest to and certify the vote adopting this Resolution.

ADOPTED this ____ day of June, 2024.

City Council 37 – 9 6/4/2024
Resolution No. 2024-XXX

Page 2 of 2 ends

Valerie Amezcua
Mayor
APPROVED AS TO FORM:

Sonia R. Carvalho
City Attorney
By:

Laura A. Rossini
Chief Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers

Date:

Jennifer L. Hall
City Clerk
City of Santa Ana
City Council 37 – 10 6/4/2024
Resolution No. 2024-XXX

Page 1 of 2 ends

RESOLUTION NO. 2024-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA ANA RESCHEDULING THE REGULAR CITY
COUNCIL MEETING OF JUNE 18, 2024 TO __________,
2024
WHEREAS, Section 409 of the Santa Ana City Charter states that the City Council shall provide for the time, place, and manner of holding its meetings; and WHEREAS, City Council has adopted Rules and Procedures via Resolution No. 2023-047, of which Section 2(a) states “Regular meetings of the City Council shall be held on the first and third Tuesdays of each month beginning on January 1, 2014;” and WHEREAS, on November 21, 2023, City Council approved the calendar of regularly scheduled City Council meetings in 2024, as amended, which included a regular meeting on the third Tuesday of June, June 18, 2024; WHEREAS, it is now desirable due to a potential lack of quorum on June 18, 2024 to reschedule the previously scheduled June 18, 2024 City Council regular meeting; and
WHERAS, pursuant to Resolution No. 2023-047, Section 2(b), any regular meeting of the Council may be set, canceled, or rescheduled to a different date, time, or location by resolution duly adopted by the affirmative votes of a majority of the City Council or by any other manner as provided by law. The date, time, and location of any meeting set or rescheduled to a different date, time, or location shall be noticed and posted in the manner provided by law.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:

Section 1. The regular City Council meeting of June 18, 2024 is hereby rescheduled to __________, 2024.

Section 2. The City Council meeting of __________, 2024 is considered a regular meeting of the Council.

Section 3. The City Clerk is directed to notice and post the date, time, and location of the __________, 2024 regular City Council meeting in the manner provided by law.

Section 4. This Resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall attest to and certify the vote adopting this Resolution.

City Council 37 – 11 6/4/2024
Resolution No. 2024-XXX

Page 2 of 2 ends

ADOPTED this ____ day of June, 2024.

Valerie Amezcua
Mayor
APPROVED AS TO FORM:

Sonia R. Carvalho
City Attorney
By:

Laura A. Rossini
Chief Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers

Date:

Jennifer L. Hall
City Clerk
City of Santa Ana
City Council 37 – 12 6/4/2024
Finance and Management Services
www.santa-ana.org/finance
Item # 38
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 4, 2024
TOPIC: Water Revenue Bonds

AGENDA TITLE
Resolution of the City of Santa Ana Authorizing the Issuance and Sale of Water Revenue Bonds, Series 2024

RECOMMENDED ACTION

1. Adopt a resolution authorizing the Issuance of the Santa Ana Financing Authority’s Water of Santa Ana Water Revenue Bonds, Series 2024 (“the Bonds”)
RESOLUTION NO. 2024-XXX entitled RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA ANA AUTHORIZING THE EXECUTION AND

DELIVERY BY THE CITY OF A MASTER INSTALLMENT PURCHASE

AGREEMENT, A FIRST SUPPLEMENT TO MASTER INSTALLMENT

PURCHASE AGREEMENT, AN ESCROW AGREEMENT, A CONTINUING

DISCLOSURE CERTIFICATE AND A PURCHASE CONTRACT IN

CONNECTION WITH THE ISSUANCE OF SANTA ANA PUBLIC FINANCING AUTHORITY WATER REVENUE BONDS, SERIES 2024, APPROVING THE

ISSUANCE OF SUCH BONDS IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $47,000,000, AUTHORIZING THE DISTRIBUTION OF AN

OFFICIAL STATEMENT IN CONNECTION WITH THE OFFERING AND SALE

OF SUCH BONDS, AND AUTHORIZING THE EXECUTION OF NECESSARY DOCUMENTS AND CERTIFICATES AND RELATED ACTIONS.

2. Authorize the execution of and approving a form of the Master Installment Purchase Agreement, First Supplement to the Master Installment Purchase Agreement, Escrow Agreement, Bond Purchase Agreement, Indenture of Trust, and Preliminary Official Statement.

GOVERNMENT CODE §84308 APPLIES: No
City Council 38 – 1 6/4/2024
Water Revenue Bonds
June 4, 2024

Page 2 ends

EXECUTIVE SUMMARY
The recommendation is the City Council’s final action to approve the sale of Water Revenue Bonds. The financing team is on track to price and close the bonds in late June 2024.

The Bonds are being issued to provide funds for the following:
• Refund in full the Santa Ana Financing Authority’s Water Revenue Refunding Bonds, Series 2014, of which $8,905,000 is currently outstanding. • Finance a portion of the design, acquisition, and construction of certain improvements to the water system of the City.
• Pay certain costs of issuance of the Bonds.

DISCUSSION
Background
By financing $40 million of water improvements with the issuance of Water Revenue Bonds (“2024 Water Revenue Bonds”), aging infrastructure can be improved and water meters can be installed sooner. In order to achieve the financing, the City would enter into an Installment Purchase Agreement with the Authority, and the Authority would issue the 2024 Water Revenue Bonds not to exceed a par amount of $47,000,000. Debt service will be repaid by the City from net revenues of the City’s water system.

Staff has identified $40 million in water improvements that are high priority and that can be implemented within the next three years.
2024 Projects Estimated Cost
Advanced Water Meters $15,000,000
Walnut Pump Station Improvements 5,000,000
Washington Well Improvements 6,000,000
Garth Pump Station Improvements 5,000,000
Lg. Water Services Vault & Meter Apparatus Imp. 8,000,000 Citywide Facilities Improvements 1,000,000
Total $40,000,000
The documents approved with this action will allow the Series 2014 Bonds to be refunded at a current interest rate of approximately 3.00%. The reduction in interest rate will reduce debt service payments by an estimated $659,000 and generate approximately $582,000 in net present value savings. The net present value savings represents about 6.5% of the amount of debt being refinanced. This compares favorably to the City’s Debt Management Policy and the Government Financing Officers Association (GFOA) target of net present value savings of 3% on municipal refundings.

The proposed resolutions approve all documents and actions needed to authorize the delivery and sale of the 2024 Water Revenue Refunding Bonds, including the following form of financing documents together with any changes or additions deemed advisable by the City Attorney or Bond Counsel (BBK) and approved by the City Manager, City Council 38 – 2 6/4/2024
Water Revenue Bonds
June 4, 2024

Page 3 ends

Assistant City Manager, City Treasurer, or the Executive Director of the Finance and Management Services Agency (a “Designated Officer”).
1) Master Installment Purchase Agreement between the City and the Authority under which the Authority agrees to provide financing for the water improvements, and the City agrees to purchase the completed improvements, in consideration of the payment by the City of semiannual installment payments, to be made from the net revenues of the City’s water system. 2) First Supplement to Master Installment Purchase Agreement between the City and the Authority to create the payment obligation for this series of bonds and assign the Authority’s rights and duties to the Trustee (US Bank) to receive installments and make payments.
3) Escrow Agreement among the City and the Trustee (Bank of New York Mellon Trust Company) to establish an escrow fund to facilitate payment of the 2014 bonds.
4) Bond Purchase Agreement among the City, the Authority, and the underwriter (Ramirez and Co., Inc.), pursuant to the terms and provisions of which the 2024 Water Revenue Bonds will be sold through a negotiated method of sale, such terms and provisions including a true interest cost of the 2024 Water Revenue Bonds not to exceed 4.75% and the underwriter’s discount not to exceed 0.34% of the par amount of the 2024 Water Revenue Bonds.
5) Indenture of Trust between the Authority and the Trustee (US Bank) which sets forth the material terms, covenants, and provisions relating to the 2024 Water Revenue Bonds.
6) Preliminary Official Statement that will be distributed to prospective purchasers of the 2024 Water Revenue Bonds that must contain all facts material to the 2024 Water Revenue Bonds and the City’s water system and must not omit any material facts. The City Council has an obligation to ensure that the Preliminary Official Statement includes all information that would be material to a prospective investor’s decision whether to purchase the 2024 Water Revenue Bonds. While the City’s legal counsel, consultants, and the underwriter have participated in preparing the document, the City is ultimately responsible for ensuring that the Preliminary Official Statement is accurate, contains no misleading information, and does not omit any information necessary to make Preliminary Official Statement not misleading to investors.
7) Continuing Disclosure Certificate included as Appendix E of the Preliminary Official Statement that commits the City to providing certain annual reports and City Council 38 – 3 6/4/2024
Water Revenue Bonds
June 4, 2024

Page 4 ends

notices of listed events to investors in order to allow the underwriter to comply with federal securities laws.

If the proposed Resolutions are adopted by the City Council and the Authority Board, the sale of the 2024 Water Revenue Bonds is expected to be completed on or about the week of June 10, 2024, with a delivery/closing date on or about the week of June 24, 2024, at which time bond proceeds will be available for the water improvements.

FISCAL IMPACT
In accordance with California Government Code Section 5852.1, good faith estimates are provided below with respect to the 2024 Water Revenue Bonds.

The 2024 Water Revenue Bonds are expected to be sold with a premium in order to generate $40 million in project proceeds, $9 million to refinance the Series 2014 Bonds and $348,992 in finance charges. The true interest cost for the 2024 Water Revenue Bonds is estimated to be approximately 3.99%. The final maturity of the bonds will be in 2049, and the total debt service over the 25-year term is estimated to be $78.4 million, with average annual debt service estimated to be $3.1 million.

The Discussion section of this report includes the estimated long-term fiscal impact of the proposed refinancing.

Debt service on the refunding bonds will begin in Fiscal Year 2024-25.

EXHIBIT(S)

1. City Council Resolution No. 2024-XXX

2. Master Installment Purchase Agreement

3. First Supplement to Master Installment Purchase Agreement

4. Escrow Agreement

5. Bond Purchase Agreement

6. Indenture of Trust

7. Preliminary Official Statement
Submitted By: Kathryn Downs, FMSA Executive Director
Approved By: Alvaro Nuñez, Acting City Manager
City Council 38 – 4 6/4/2024
55394.00068\42111517.5
Resolution No.2024-XXX

Page 1 of 6 ends

RESOLUTION NO. 2024-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA ANA AUTHORIZING THE EXECUTION AND

DELIVERY BY THE CITY OF A MASTER INSTALLMENT

PURCHASE AGREEMENT, A FIRST SUPPLEMENT TO

MASTER INSTALLMENT PURCHASE AGREEMENT, AN

ESCROW AGREEMENT, A CONTINUING DISCLOSURE

CERTIFICATE AND A PURCHASE AGREEMENT IN

CONNECTION WITH THE ISSUANCE OF SANTA ANA

PUBLIC FINANCING AUTHORITY WATER REVENUE
BONDS, SERIES 2024, APPROVING THE ISSUANCE OF

SUCH BONDS IN AN AGGREGATE PRINCIPAL AMOUNT
OF NOT TO EXCEED $47,000,000, AUTHORIZING THE

DISTRIBUTION OF AN OFFICIAL STATEMENT IN

CONNECTION WITH THE OFFERING AND SALE OF

SUCH BONDS, AND AUTHORIZING THE EXECUTION OF

NECESSARY DOCUMENTS AND CERTIFICATES AND

RELATED ACTIONS

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 hereby finds, determines and declares as follows:

A. The City of Santa Ana (the “City”) desires to finance the costs of the acquisition, construction and installation of certain water system capital improvements (the “Project”) pertaining to the City’s water system (the “Water System”);
B. The City and the Santa Ana Financing Authority have previously financed costs of the Water System with the issuance of $15,690,000 original principal amount of Santa Ana Financing Authority Water Revenue Refunding Bonds, Series 2014 (the “2014 Bonds”);
C. The City and the Santa Ana Public Financing Authority (the “Authority”) have determined that it would be in the best interests of the City and the Authority to provide the funds necessary to refinance the 2014 Bonds and finance the Project through the offering and sale of bonds of the Authority, designated “Santa Ana Public Financing Authority Water Revenue Bonds, Series 2024” (the “Bonds”);
D. In order to accomplish such financing of the Project, the City and the Authority desire to enter into a new Master Installment Purchase Agreement (the “Master Installment Agreement”) and a First Supplement to Master Installment Purchase Agreement (the “First Supplement”), under which the City will make Installment Payments;
EXHIBIT 1
City Council 38 – 5 6/4/2024
55394.00068\42111517.5
Resolution No.2024-XXX

Page 2 of 6 ends

E. The Authority and the City desire that U.S. Bank Trust Company, National Association, as trustee (the “Trustee”) and the Authority enter into an Indenture (the “Indenture”) in order to provide for the issuance of the Bonds;
F. The Bonds will be issued pursuant to the Marks-Roos Local Bond Pooling Act of 1985, commencing with Section 6584 of the California Government Code (the “Act”);
G. Ramirez & Co., Inc., as underwriter (the “Underwriter”), has submitted to the City and the Authority a proposed form of an agreement to purchase the Bonds in the form of a Bond Purchase Agreement (the “Purchase Agreement”);
H. A form of the Preliminary Official Statement (the “Preliminary Official Statement”) to be distributed in connection with the public offering of the Bonds has been prepared;
I. Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (“Rule 15c2-12”) requires that, in order to be able to purchase or sell the Bonds, the Underwriter must have reasonably determined that the City has undertaken in a written agreement or contract for the benefit of the holders of the Bonds to provide disclosure of certain financial information and certain material events on an ongoing basis;
J. In order to cause such requirement to be satisfied, the City desires to execute and deliver a Continuing Disclosure Certificate (the “Continuing Disclosure Certificate”);
K. In order to cause the refinancing of the 2014 Bonds, there is presented an Escrow Agreement (the “Escrow Agreement”), between the City and The Bank of New York Mellon Trust Company, N.A., the trustee for the 2014 Bonds;
L. The City is a member of the Authority and the Project is located within the boundaries of the City;
M. Senate Bill 450 (Chapter 625 of the 2017-2018 Session of the California Legislature) (“SB 450”) requires that the City Council obtain from an underwriter, municipal advisor or private lender and disclose, prior to authorization of the issuance of bonds, including debt instruments such as the Bonds, with a term of greater than 13 months, good faith estimates of the following information in a meeting open to the public: (a) the true interest cost of the Bonds, (b) the sum of all fees and charges paid to third parties with respect to the Bonds, (c) the amount of proceeds of the Bonds expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the Bonds, and (d) the sum total of all debt service payments on the City Council 38 – 6 6/4/2024
55394.00068\42111517.5
Resolution No.2024-XXX

Page 3 of 6 ends

Bonds calculated to the final maturity of the Bonds plus the fees and charges paid to third parties not paid with the proceeds of the Bonds, and such information has been provided to the City Council in the report of Finance and Management Services Agency; and
N. The City Council has been presented with the form of each document referred to herein relating to the refinancing contemplated hereby, and the City Council has examined and approved each document and desires to authorize and direct the execution of such documents and the consummation of such refinancing; and
O. All acts, conditions and things required by the laws of the State of California and the City Charter of the City to exist, to have happened and to have been performed precedent to and in connection with the consummation of such refinancing authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the City is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such refinancing for the purpose, in the manner and upon the terms herein provided.

SECTION 2. All of the recitals herein contained are true and correct and the City Council so finds.

SECTION 3. The City Council, on behalf of the City, hereby finds that the use of the Act to assist the City in financing the Project and refinancing the 2014 Bonds will result in significant public benefits to the citizens of the City because it is expected that such use will provide demonstrable savings in effective interest rate costs.

SECTION 4. The forms of the Master Installment Agreement and First Supplement, on file with the City Clerk, are hereby approved, and the Mayor may designate, City Manager, the Assistant City Manager, the City Clerk, and the Executive Director and City Treasurer, Finance and Management Services (the “Authorized Officers”), are each hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Master Installment Agreement and First Supplement in substantially said forms, with such changes therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, that the aggregate amount of the principal components of the installment payments shall not exceed $47,000,000 and the true interest cost applicable to the interest components of the installment payments shall not exceed 4.75%.

SECTION 5. The form of Indenture, on file with the City Clerk, with such changes, insertions and omissions therein as an authorized officer of the Authority executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof, is hereby approved; provided, however, that the aggregate amount of the Bonds shall not exceed $47,000,000, and the true interest cost applicable to the Bonds shall not exceed 4.75% and, provided, City Council 38 – 7 6/4/2024
55394.00068\42111517.5
Resolution No.2024-XXX

Page 4 of 6 ends

further, that such changes, insertions and omissions shall be consistent with the terms of the Bonds established by the Purchase Contract as finally executed.

SECTION 6. The issuance of not to exceed $47,000,000 aggregate principal amount of the Bonds, in the principal amounts, bearing interest at the rates and maturing on the dates as specified in the Indenture as finally executed, for the purpose of financing the Project and refinancing the 2014 Bonds is hereby approved.

SECTION 7. The form of Escrow Agreement for the 2014 Bonds, between the City and The Bank of New York Mellon Trust Company, N.A., is hereby approved, and the Authorized Officers are each hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Purchase Contract in substantially said form, with such changes therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof.

SECTION 8. The form of Bond Purchase Agreement, on file with the City Clerk, is hereby approved, and the Authorized Officers are each hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Bond Purchase Agreement in substantially said form, with such changes therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, that the underwriter’s discount for the sale of the Bonds shall not exceed 1.15% of the aggregate principal amount of such Bonds.

SECTION 9. The form of Preliminary Official Statement, on file with the City Clerk, with such changes, insertions and omissions therein as may be approved by an Authorized Officer, is hereby approved, and the use of the Preliminary Official Statement in connection with the offering and sale of the Bonds is hereby authorized and approved. The Authorized Officers are each hereby authorized to certify on behalf of the City that the Preliminary Official Statement is deemed final as of its date, within the meaning of Rule 15c2-12 (except for the omission of certain final pricing, rating and related information as permitted by Rule 15c2-12).

SECTION 10. The Authorized Officers are each hereby authorized and directed to furnish, or cause to be furnished, to prospective investors for the Bonds a reasonable number of copies of the Preliminary Official Statement.

SECTION 11. The preparation and delivery of an Official Statement, and its use in connection with the offering and sale of the Bonds, is hereby authorized and approved. The Official Statement shall be in substantially the form of the Preliminary Official Statement with such changes, insertions and omissions as may be approved by an Authorized Officer, such approval to be conclusively evidenced by the execution and delivery thereof. The Authorized Officers are each hereby authorized and directed, for and in the name of and on behalf of the City, to execute the final Official Statement and any amendment or supplement thereto for and in the name and on behalf of the City.

City Council 38 – 8 6/4/2024
55394.00068\42111517.5
Resolution No.2024-XXX

Page 5 of 6 ends

SECTION 12. The form of Continuing Disclosure Certificate, on file with the Clerk of the Council, is hereby approved, and the Authorized Officers are each hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Continuing Disclosure Certificate in substantially said form, with such changes, insertions and omissions therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced to the execution and delivery thereof.

SECTION 13. The officers, employees and agents of the City are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable in order to consummate the transactions herein authorized and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution.

SECTION 14. All actions heretofore taken by the officers, employees and agents of the City with respect to the transactions set forth above are hereby approved, confirmed and ratified.

SECTION 15. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall attest to and certify the vote adopting this Resolution.

ADOPTED this 4th day of June, 2024.

Valerie Amezcua
Mayor
APPROVED AS TO FORM:

Sonia R. Carvalho, City Attorney
Laura A. Rossini
Chief Assistant City Attorney
AYES: Councilmembers:

NOES: Councilmembers:

ABSTAIN: Councilmembers:

NOT PRESENT: Councilmembers:

City Council 38 – 9 6/4/2024
55394.00068\42111517.5
Resolution No.2024-XXX

Page 6 of 6 ends

CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Jennifer L. Hall, City Clerk, do hereby attest to and certify the attached Resolution No. 2024-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on June 4, 2024.

Date: , 2024
Jennifer L. Hall
City Clerk
City of Santa Ana
City Council 38 – 10 6/4/2024
55394.00068\42092413.3
BBK DRAFT – MAY 13

MASTER INSTALLMENT PURCHASE AGREEMENT
by and between the

CITY OF SANTA ANA
and the

SANTA ANA PUBLIC FINANCING AUTHORITY
Dated as of ___________, 2024
Relating to
Installment Payments Secured by
the Water Revenue Fund of
the City of Santa Ana, California
EXHIBIT 2
City Council 38 – 11 6/4/2024
55394.00068\42092413.3

TABLE OF CONTENTS
Page
-iARTICLE I

DEFINITIONS
SECTION 1.01. DEFINITIONS.................................................................................................... 2 SECTION 1.02. RULES OF CONSTRUCTION........................................................................ 12

ARTICLE II

REPRESENTATIONS AND WARRANTIES
SECTION 2.01. REPRESENTATIONS BY THE CITY............................................................ 13 SECTION 2.02. REPRESENTATIONS AND WARRANTIES BY THE AUTHORITY......... 13

ARTICLE III

ACQUISITION AND CONSTRUCTION OF PROJECT
SECTION 3.01. ACQUISITION AND CONSTRUCTION OF PROJECT;
COMPONENTS ............................................................................................ 14 SECTION 3.02. CHANGES TO THE PROJECT....................................................................... 15

ARTICLE IV

INSTALLMENT PAYMENTS
SECTION 4.01. PURCHASE PRICE. ........................................................................................ 15 SECTION 4.02. INSTALLMENT PAYMENTS; RESERVE FUND PAYMENTS.................. 16

ARTICLE V

SYSTEM REVENUES
SECTION 5.01. COMMITMENT OF THE NET SYSTEM REVENUES................................. 16 SECTION 5.02. ALLOCATION OF SYSTEM REVENUES .................................................... 17 SECTION 5.03. ADDITIONAL OBLIGATIONS...................................................................... 17 SECTION 5.04. MAINTENANCE AND OPERATION OBLIGATIONS ................................ 18

ARTICLE VI

COVENANTS OF THE CITY
SECTION 6.01. COMPLIANCE WITH INSTALLMENT PURCHASE AGREEMENT AND ANCILLARY AGREEMENTS........................................................... 19 SECTION 6.02. AGAINST ENCUMBRANCES ....................................................................... 19 SECTION 6.03. DEBT SERVICE RESERVE FUND................................................................ 19 SECTION 6.04. AGAINST SALE OR OTHER DISPOSITION OF PROPERTY.................... 20 SECTION 6.05. AGAINST COMPETITIVE FACILITIES ....................................................... 20 SECTION 6.06. PROMPT ACQUISITION AND CONSTRUCTION ...................................... 20 City Council 38 – 12 6/4/2024
55394.00068\42092413.3

TABLE OF CONTENTS
(continued)
Page
-iiSECTION 6.07. MAINTENANCE AND OPERATION OF THE WATER SYSTEM; BUDGETS ..................................................................................................... 20 SECTION 6.08. AMOUNT OF RATES AND CHARGES; RATE STABILIZATION FUND............................................................................................................. 20 SECTION 6.09. PAYMENT OF CLAIMS ................................................................................. 21 SECTION 6.10. COMPLIANCE WITH CONTRACTS ............................................................ 21 SECTION 6.11. INSURANCE.................................................................................................... 21 SECTION 6.12. ACCOUNTING RECORDS; FINANCIAL STATEMENTS AND OTHER REPORTS........................................................................................ 22 SECTION 6.13. PROTECTION OF SECURITY AND RIGHTS OF THE AUTHORITY....... 22 SECTION 6.14. PAYMENT OF TAXES AND COMPLIANCE WITH
GOVERNMENTAL REGULATIONS ......................................................... 22 SECTION 6.15. COLLECTION OF RATES AND CHARGES; NO FREE SERVICE............ 23 SECTION 6.16. EMINENT DOMAIN PROCEEDS.................................................................. 23 SECTION 6.17. TAX COVENANTS ......................................................................................... 23 SECTION 6.18. FURTHER ASSURANCES ............................................................................. 23 SECTION 6.19. OPERATE WATER SYSTEM......................................................................... 23 SECTION 6.20. ADDITIONAL COVENANTS......................................................................... 24

ARTICLE VII

PREPAYMENT OF INSTALLMENT PAYMENTS
SECTION 7.01. PREPAYMENT OF INSTALLMENT PAYMENTS ...................................... 24

ARTICLE VIII

EVENTS OF DEFAULT AND REMEDIES OF THE AUTHORITY
SECTION 8.01. EVENTS OF DEFAULT AND ACCELERATION OF MATURITIES ......... 24 SECTION 8.02. APPLICATION OF NET SYSTEM REVENUES UPON
ACCELERATION......................................................................................... 25 SECTION 8.03. OTHER REMEDIES OF THE AUTHORITY................................................. 25 SECTION 8.04. NON-WAIVER................................................................................................. 25 SECTION 8.05. REMEDIES NOT EXCLUSIVE ...................................................................... 26

ARTICLE IX

DISCHARGE OF OBLIGATIONS
SECTION 9.01. DISCHARGE OF OBLIGATIONS.................................................................. 26

ARTICLE X

MISCELLANEOUS
SECTION 10.01. LIABILITY OF CITY LIMITED TO SYSTEM REVENUES...................... 26 City Council 38 – 13 6/4/2024
55394.00068\42092413.3

TABLE OF CONTENTS
(continued)
Page
-iiiSECTION 10.02. BENEFITS OF INSTALLMENT PURCHASE AGREEMENT LIMITED TO PARTIES................................................................................ 27 SECTION 10.03. AMENDMENTS ............................................................................................ 27 SECTION 10.04. SUCCESSOR IS DEEMED INCLUDED IN ALL REFERENCES TO PREDECESSOR............................................................................................ 28 SECTION 10.05. WAIVER OF PERSONAL LIABILITY ........................................................ 28 SECTION 10.06. PARTIAL INVALIDITY ............................................................................... 28 SECTION 10.07. ASSIGNMENT............................................................................................... 28 SECTION 10.08. NET CONTRACT .......................................................................................... 28 SECTION 10.09. CALIFORNIA LAW ...................................................................................... 28 SECTION 10.10. NOTICES........................................................................................................ 28 SECTION 10.11. EFFECTIVE DATE........................................................................................ 29 SECTION 10.12. EXECUTION IN COUNTERPARTS ............................................................ 29 EXHIBIT A - DESCRIPTION OF ENTIRE PROJECT...........................................................A-1 City Council 38 – 14 6/4/2024
55394.00068\42092413.3
1 MASTER INSTALLMENT PURCHASE AGREEMENT
This MASTER INSTALLMENT PURCHASE AGREEMENT, made and entered into as of ___________, 2024, by and between the CITY OF SANTA ANA, a charter city and municipal corporation organized and existing under and by virtue of the Constitution and the laws of the State of California and its Charter (the “City”), and the SANTA ANA PUBLIC FINANCING AUTHORITY, a joint exercise of powers authority and public entity duly organized and existing under and by virtue of the State of California (the “Authority”); WITNESSETH:

WHEREAS, the City expects to have the need from time to time to finance or refinance the acquisition, construction and installation of improvements to its Water System (capitalized terms used herein shall have the meanings given such terms in Section 1.01); WHEREAS, the Authority desires to assist the City with such financings and refinancings; WHEREAS, in order to accomplish such financings and refinancings, the City will incur obligations payable from net revenues of its Water System; WHEREAS, such obligations may be in the form of bonds of the Authority or may be in the form of installment purchase agreements, leases or other contracts; WHEREAS, the proceeds of such obligations will be used to finance and/or refinance the acquisition, construction, installation and improvement of certain municipal water system facilities of the City, as more fully described in Exhibit A hereof and as may be modified from time to time in conformity with the same (the “Project”);
WHEREAS, the City has determined that the Project and the purchase of the Project and/or Components thereof by the City is necessary and proper for City uses and purposes; WHEREAS, the Authority proposes to sell and/or refinance the Project and/or Components thereof from time to time to the City and the City desires to purchase the Project and/or Components thereof from the Authority upon the terms and conditions set forth herein; WHEREAS, concurrently with the prepayment of the Prior Obligations, the City will reacquire the Project and resell the Project to the Authority and then repurchase the Project from the Authority pursuant to a Supplement;
WHEREAS, the City and the Authority have duly authorized the execution of this Installment Purchase Agreement; and
WHEREAS, all acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in connection with the execution and delivery of this Installment Purchase Agreement do exist, have happened and have been performed in regular and due time, Ruin and manner as required by law, and the parties hereto are now duly authorized to execute and enter into this Installment Purchase Agreement.

City Council 38 – 15 6/4/2024
55394.00068\42092413.3
2 NOW, THEREFORE, IN CONSIDERATION OF THESE PREMISES AND OF

THE MUTUAL AGREEMENTS AND COVENANTS CONTAINED HEREIN AND FOR

OTHER VALUABLE CONSIDERATION, THE PARTIES HERETO DO HEREBY AGREE AS FOLLOWS:

ARTICLE I

DEFINITIONS
SECTION 1.01. Definitions. Unless the context otherwise requires, the terms defined in this section shall, for all purposes of this Installment Purchase Agreement and any Supplement, have the meanings set forth below:
“Accountant’s Report” means a report signed by an Independent Certified Public Accountant.
“Acquisition Fund” means the fund by that name established pursuant to any Issuing Instrument.
“Authority” means the Santa Ana Public Financing Authority, a joint exercise of powers authority and public entity duly organized and existing under and by virtue of the laws of the State, or its successors and assigns.
“Authorized City Representative” means the Mayor, the City Manager, Assistant City Manager or the Treasurer of the City or such other officer or employee of the City or other person who has been designated as such representative by resolution of the City Council of the City. “Balloon Indebtedness” means, with respect to any Series of Obligations, twenty-five percent (25%) or more of the principal of which matures on the same date or within a 12-month period (with sinking fund payments on Term Obligations deemed to be payments of matured principal), that portion of such Series of Obligations which matures on such date or within such 12-month period; provided, however, that to constitute Balloon Indebtedness the amount of indebtedness maturing on a single date or over a 12-month period must equal or exceed 150% of the amount of such Series of Obligations which matures during any preceding 12-month period.

For purposes of this definition, the principal amount maturing on any date shall be reduced by the amount of such indebtedness which is required, by the documents governing such indebtedness, to be amortized by prepayment or redemption prior to its stated maturity date. “Bond Counsel” means any attorney at law or firm of attorneys, of nationally recognized standing in matters pertaining to the validity of, and exclusion from gross income for federal income tax purposes of interest on, bonds issued by states and political subdivisions and duly admitted to practice law before the highest court of any state of the United States and acceptable to the City.
“Charter” means the Charter of the City as it now exists or may hereafter be amended, and any new or successor Charter.

City Council 38 – 16 6/4/2024
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3 “City” means the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution, the laws of the State and its Charter. “Code” means the Internal Revenue Code of 1986, and the regulations thereunder, as amended.
“Components” means components of the Project specified in a Supplement. “Consultant” means the consultant, consulting firm, engineer, architect, engineering firm, architectural firm, accountant or accounting firm retained by the City to perform acts or carry out the duties provided for such consultant in this Installment Purchase Agreement. Such consultant, consulting firm, engineer, architect, engineering firm or architectural firm shall be nationally recognized within its profession for work of the character required. Accountants or accounting films shall be independent certified public accountants licensed to practice in the State. “Credit Provider” means any municipal bond insurance company, bank or other financial institution or organization which is performing in all material respects its obligations under any Credit Support Instrument for some or all of the Parity Obligations. “Credit Provider Reimbursement Obligations” means obligations of the City to repay, from Net System Revenues, amounts advanced by a Credit Provider as credit or liquidity support for Parity Obligations.
“Credit Support Instrument” means a policy of insurance, a letter of credit, a stand-by purchase agreement, revolving credit agreement or other credit arrangement pursuant to which a Credit Provider provides credit or liquidity support with respect to the payment of interest, principal or the purchase price of any Parity Obligations. “Debt Service” means, for any Fiscal Year, the sum of (1) the interest payable during such Fiscal Year on all outstanding Parity Obligations, assuming that all outstanding Serial Parity Obligations are retired as scheduled and that all outstanding Term Parity Obligations are redeemed or paid from sinking fund payments as scheduled (except to the extent that such interest is to be paid from the proceeds of sale of any Parity Obligations), (2) that portion of the principal amount of all outstanding Serial Parity Obligations maturing on the next succeeding principal payment date which falls in such Fiscal Year (excluding Serial Obligations which at the time of issuance are intended to be paid from the sale of a corresponding amount of Parity Obligations), and (3) that portion of the principal amount of all outstanding Term Parity Obligations required to be redeemed or paid on any redemption date which falls in such Fiscal Year (together with the redemption premiums, if any, thereon); provided that, (a) as to any Balloon Indebtedness, Tender Indebtedness and Variable Rate Indebtedness, interest thereon shall be calculated as provided in the definition of Maximum Annual Debt Service and principal shall be deemed due at the nominal maturity dates thereof; (b) the amount on deposit in a debt service reserve fund on any date of calculation of Debt Service shall be deducted from the amount of principal due at the final maturity of the Parity Obligations for which such debt service reserve fund was established and in each preceding year until such amount is exhausted; (c) the amount of any interest payable on any Parity Obligation for which there exists a Qualified Swap Agreement shall be the net amount payable by the City as provided in paragraph (iv) or paragraph (viii), as applicable, of the definition of City Council 38 – 17 6/4/2024
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4 Maximum Annual Debt Service; and (d) the amount of payments on account of Parity Obligations which are redeemed, retired or repaid on the basis of the accreted value due on the scheduled redemption, retirement or repayment date shall be deemed principal payments, and interest that is compounded and paid as part of the accreted value shall be deemed payable on the scheduled redemption, retirement or repayment date but not before. For purposes of complying with the rate setting covenants contained herein and satisfying the debt service coverage requirements in connection with the issuance or incurring of Parity Obligations, Debt Service shall not include those portions of Parity Obligations to be paid in such period to the extent the interest that is evidenced and represented thereby is capitalized or is reasonably anticipated to be reimbursed to the Authority by the United States of America pursuant to Section 54AA of the Code (Section 1531 of Title I of Division B of the American Recovery and Reinvestment Act of 2009 (Pub. L.

No. 111-5, 23 Stat. 115 (2009), enacted February 17, 2009)), or any future similar program. “Defaulted Obligations” means Obligations in respect of which an Event of Default has occurred and is continuing.
“Engineer’s Report” means a report signed by an Independent Engineer. “Event of Default” means an event described in Section 8.01. “Fiscal Year” means the period beginning on July 1 of each year and ending on the next succeeding June 30, or any other twelve-month period selected and designated as the official Fiscal Year of the City.
“Independent Certified Public Accountant” means any firm of certified public accountants appointed by the City, and each of whom is independent pursuant to the Statement on Auditing Standards No. 1 of the American Institute of Certified Public Accountants. “Installment Payment Date” means any date on which an Installment Payment is due as specified in or determined pursuant to a Supplement.
“Installment Payments” means the Installment Payments scheduled to be paid by the City under and pursuant hereto and any Supplement.
“Installment Payment Obligations” means Obligations consisting of or which are supported in whole by Installment Payments.
“Installment Purchase Agreement” means this Master Installment Purchase Agreement, by and between the City and the Authority, dated as of ___________, 2024, as originally executed and as it may from time to time be amended or supplemented in accordance herewith. “Issuing Instrument” shall mean any indenture, trust agreement or installment purchase agreement including any Supplement under which Obligations are issued or created. The term Issuing Instrument shall not include a Qualified Swap Agreement. “Maintenance and Operation Costs” means the reasonable and necessary costs spent or incurred by the City, for maintaining and operating the Water System, calculated in accordance with generally accepted accounting principles, including (among other things) all costs of water City Council 38 – 18 6/4/2024
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5 purchased or leased by the City, the reasonable expenses of management and repair and other expenses necessary to maintain and preserve the Water System in good repair and working order, and including administrative costs of the City attributable to the Project and the Installment Purchase Agreement, salaries and wages of employees, payments to employees retirement systems (to the extent paid from System Revenues), overhead, taxes (if any), fees of auditors, accountants, attorneys or engineers and insurance premiums, and including all other reasonable and necessary costs of the City or charges required to be paid by it to comply with the terms of the Obligations, including this Installment Purchase Agreement, including any amounts required to be deposited in the Rebate Fund pursuant to the Tax Certificate, and fees and expenses payable to any Credit Provider (other than in repayment of a Credit Provider Reimbursement Obligation), but excluding in all cases (i) depreciation, replacement and obsolescence charges or reserves therefor, (ii) amortization of intangibles or other bookkeeping entries of a similar nature, (iii) costs of capital additions, replacements, betterments, extensions or improvements to the Water System which under generally accepted accounting principles are chargeable to a capital account or to a reserve for depreciation, (iv) charges for the payment of principal and interest on any general obligation bond heretofore or hereafter issued for Water System purposes, and (v) charges for the payment of principal and interest on any debt service on account of any obligation on a parity with or subordinate to the Installment Payments.

Payments with respect to Maintenance and Operation Obligations shall be considered Maintenance and Operation Costs if they are incurred in connection with the Maintenance and Operation Costs described in the preceding paragraph.
“Maintenance and Operation Obligation” means any contract or lease for the purchase of any facilities, properties, structures, or works, or any loan of credit to or guaranty of debts, claims or liabilities of any other person for the purpose of obtaining any facilities, properties, structures or works, the final payments under which are due more than five years following the effective date thereof; so long as in each case the payments thereunder are to constitute Maintenance and Operation Costs.
“Maximum Annual Debt Service” means, at any point in time, with respect to Parity Obligations then Outstanding, the maximum amount of principal and interest becoming due on the Parity Obligations in the then current or any future Fiscal Year, calculated by the City or by an Independent Certified Public Accountant as provided in this definition and provided to the Trustee.

For purposes of calculating Maximum Annual Debt Service, the following assumptions shall be used to calculate the principal and interest becoming due in any Fiscal Year:
(i) in determining the principal amount due in each year, payments shall (except to the extent a different subsection of this definition applies for purposes of determining principal maturities or amortization) be assumed to be made in accordance with any amortization schedule established for such debt, including the amount of any Parity Obligations which are or have the characteristics of commercial paper and which are not intended at the time of issuance to be retired from the sale of a corresponding amount of Parity Obligations, and including any scheduled mandatory redemption or prepayment of Parity Obligations on the basis of accreted value due upon such redemption or prepayment, and for such purpose, the redemption payment or prepayment shall be deemed a principal payment; in determining the interest due in each year, interest payable at a fixed City Council 38 – 19 6/4/2024
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6 rate shall (except to the extent subsection (ii) or (iii) of this definition applies) be assumed to be made at such fixed rate and on the required payment dates; (ii) if all or any portion or portions of an Outstanding Series of Parity Obligations constitutes Balloon Indebtedness or if all or any portion of a Series of Parity Obligations or such payments then proposed to be issued would constitute Balloon Indebtedness, then, for purposes of determining Maximum Annual Debt Service, each maturity which constitutes Balloon Indebtedness shall be treated as if it were to be amortized in substantially equal annual installments of principal and interest over a term of 25 years commencing in the year the stated maturity of such Balloon Indebtedness occurs, the interest rate used for such computation shall be determined as provided in subsections (iv) or (v) below, as appropriate, and all payments of principal and interest becoming due prior to the year of the stated maturity of the Balloon Indebtedness shall be treated as described in subsection (i) above;
(iii) if any of the Outstanding Series of Parity Obligations constitutes Tender Indebtedness or if Parity Obligations proposed to be issued would constitute Tender Indebtedness, then for purposes of determining Maximum Annual Debt Service, Tender Indebtedness shall be treated as if the principal amount of such Parity Obligations were to be amortized in accordance with the amortization schedule set forth in such Tender Indebtedness or in the Credit Support Instrument established with respect to such Tender Indebtedness, or if no such amortization schedule is set forth, then such Tender Indebtedness shall be deemed to be amortized in substantially equal annual installments of principal and interest over a term of 25 years commencing in the year in which such Series is first subject to tender, and the interest rate used for such computation shall be determined as provided in subsections (iv) or (v) below, as appropriate; (iv) if any Outstanding Parity Obligations constitute Variable Rate Indebtedness (except to the extent subsection (ii) relating to Balloon Indebtedness or subsection (iii) relating to Tender Indebtedness applies), the interest rate on such Parity Obligation shall be assumed to be 110% of the daily average interest rate on such Parity Obligations during the 12 months ending with the month preceding the date of calculation, or such shorter period that such Parity Obligations shall have been Outstanding; provided that in the event that Variable Rate Indebtedness has been issued in connection with a Qualified Swap Agreement, the interest rate for purposes of computing Maximum Annual Debt Service shall be determined by (x) calculating the annualized net amount paid by the City under such Variable Rate Indebtedness and Qualified Swap Agreement (after giving effect to payments made under the Variable Rate Indebtedness and made and received by the City under the Qualified Swap Agreement) during the 12 months ending with the month preceding the date of calculation, or such shorter period that such Qualified Swap Agreement has been in effect, and (y) dividing the amount calculated in clause (x) by the average daily balance of the related Parity Obligations Outstanding during the 12-month period contemplated by clause (x);
(v) if Parity Obligations proposed to be issued will be Variable Rate Indebtedness (except to the extent subsection (ii) relating to Balloon Indebtedness or subsection (iii) relating to Tender Indebtedness applies), then such Parity Obligations shall City Council 38 – 20 6/4/2024
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7 be assumed to bear interest at 110% of the average of the J.J. Kenny High Grade Index during the prior 12 months ending with the month preceding the date of sale of such additional Parity Obligations, or if that index is no longer published, another similar index selected by the City, or if the City fails to select a replacement index, an interest rate equal to 80% of the yield for outstanding United States Treasury bonds having an equivalent maturity, or if there are no such Treasury bonds having such maturities, 100% of the lowest prevailing prime rate of any of the five largest commercial banks in the United States ranked by assets; provided that in the event that such Variable Rate Indebtedness will be issued in connection with a Qualified Swap Agreement, the interest rate for purposes of computing Maximum Annual Debt Service shall be determined by (a) calculating the net amount to be paid by the City under such Variable Rate Indebtedness and Qualified Swap Agreement after giving effect to payments to be made under the Variable Rate Indebtedness and to be made and received by the City under the Qualified Swap Agreement for the period during which the Qualified Swap Agreement is to be in effect and for this purpose any variable rate of interest agreed to be paid thereunder shall be deemed to be the rate at which the related Parity Obligation shall be assumed to bear interest, and (b) dividing the amount calculated in clause (a) by the average principal amount of the related Parity Obligation to be Outstanding during the first year after the issuance of such Parity Obligation;
(vi) if moneys or Permitted Investments have been deposited by the City into a separate fund or account or are otherwise held by the City or by a fiduciary to be used to pay principal and/or interest on specified Parity Obligations, then the principal and/or interest to be paid from such moneys, Permitted Investments or from the earnings thereon shall be disregarded and not included in calculating Maximum Annual Debt Service; (vii) if Parity Obligations are Paired Obligations, the interest thereon shall be the resulting linked rate or effective fixed rate to be paid with respect to such Paired Obligations; and
(viii) in the event that an agreement or commitment which, at the time of calculation is a Qualified Swap Agreement is or is to be in effect with respect to a Parity Obligation which is not Variable Rate Indebtedness, the interest rate of such Parity Obligation for purposes of calculating Maximum Annual Debt Service shall be calculated as follows:
(a) for such a Qualified Swap Agreement which is in effect on the date of calculation, the interest rate shall be calculated in the same manner as is specified in subsection (iv) for a Qualified Swap Agreement issued in connection with Variable Rate Indebtedness which is Outstanding on the date of calculation; and (b) for such a Qualified Swap Agreement which is not in effect on the date of calculation, the interest rate shall be calculated in the same manner as is specified in subsection (v) for a Qualified Swap Agreement to be issued in connection with Variable Rate Indebtedness to be Outstanding after the date of calculation, and for this purpose any variable rate of interest agreed to be paid City Council 38 – 21 6/4/2024
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8 thereunder shall be assumed to be the rate assumed for Variable Rate Indebtedness described in subsection (v).
“Maximum Rate” means, on any day, the maximum interest rate allowed by law. “Moody’s” means Moody’s Investors Service, Inc., a corporation organized and existing under the laws of the state of Delaware, and its successors and assigns, and, if such entity shall for any reason no longer perform the functions of a securities rating agency, “Moody’s” shall be deemed to refer to any other nationally recognized securities rating agency (other than S&P) designated by the City.
“Net Proceeds” means, when used with respect to any insurance, self insurance or condemnation award, the proceeds from such award remaining after payment of all expenses (including attorneys’ fees) incurred in the collection of such proceeds. “Net System Revenues” means, for any Fiscal Year, the System Revenues for such Fiscal Year less the Maintenance and Operation Costs for such Fiscal Year. “Obligations” means (i) obligations of the City for money borrowed (such as bonds, notes or other evidences of indebtedness) or as installment purchase payments under any contract (including Installment Payments), or as lease payments under any financing lease (determined to be such in accordance with generally accepted accounting principles), the principal and interest on which are payable from Net System Revenues; (ii) obligations to replenish any debt service reserve funds with respect to such obligations of the City; (iii) obligations secured by or payable from any of such obligations of the City; and (iv) obligations of the City payable from Net System Revenues under (a) any contract providing for payments based on levels of, or changes in, interest rates, currency exchange rates, stock or other indices, (b) any contract to exchange cash flows or a series of payments, or (c) any contract to hedge payment, currency, rate spread or similar exposure, including but not limited to interest rate swap agreements and interest rate cap agreements. “Outstanding,” when used as of any particular time with respect to Obligations, means all Obligations theretofore or thereupon executed, authenticated and delivered by the City or any trustee or other fiduciary, except (i) Obligations theretofore cancelled or surrendered for cancellation; (ii) Obligations paid or deemed to be paid within the meaning of any defeasance provisions thereof; (iii) Obligations owned by the City or the Authority; and (iv) Obligations in lieu of or in substitution for which other Obligations have been executed and delivered. “Owner” means any person who shall be the registered owner of any outstanding Obligation certificate or other evidence of a right to receive Installment Payments directly or as security for payment of the Obligation.
“Parity Installment Obligation” means Obligations consisting of or payable from Installment Payments which are not subordinated in right of payment to other Installment Payments.
“Parity Obligations” means (i) Parity Installment Obligations, (ii) Obligations the principal and interest of which are payable on a parity with Parity Installment Obligations, and (iii) Qualified Swap Agreements. Notwithstanding the foregoing, any amounts payable with respect to a City Council 38 – 22 6/4/2024
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9 Qualified Swap Agreement which represent termination payments or unwinding payments shall not be deemed to be Parity Obligations unless (a) such Qualified Swap Agreement expressly states that such termination payments or unwinding payments are to be considered Parity Obligations and (b) each Rating Agency which currently maintains a rating with respect to any Parity Obligation confirms in writing to the City that the inclusion of such termination payments or unwinding payments as Parity Obligations will not result in a downgrading, withdrawal or suspension of such rating.
“Paying Agent” means, with respect to an Installment Payment Obligation or Series of Installment Payment Obligations, the bank, trust company or other financial institution, if any, or other entities designated as the place or entity which shall make payment on such Installment Payment Obligation or a Series of Installment Payment Obligations and/or the interest thereon instead of or in addition to the City Treasurer’s office. “Payment Fund” means the fund designated in the Issuing Instrument as the fund into which Installment Payments are to be deposited for the purposes of paying principal or interest on related Obligations.
“Permitted Investments” means investments which pursuant to an Issuing Instrument are permissible for the investment of funds received from the sale of Obligations pursuant to the Issuing Instrument or from other funds held pursuant to the Issuing Instrument. “Prior Obligations” means the Santa Ana Financing Authority Water Revenue Bonds, Series 2014 (Payable Solely from Installment Payments Secured by Water System Net Revenues). “Project” means the construction, replacement and improvements to the Water System described in Exhibit A hereto and as modified with respect to Components in conformance with Section 3.02 hereof.
“Purchase Price” means the principal amount plus interest thereon owed by the City to the Authority under the terms hereof as provided in Section 4.01 and as specified in a Supplement. “Qualified Swap Agreement” means a contract or agreement, payable from Net System Revenues on a parity with Parity Obligations, intended to place Obligations on the interest rate, currency, cash flow or other basis desired by the City, including, without limitation, any interest rate swap agreement, currency swap agreement, forward payment conversion agreement or futures contract, any contract providing for payments based on levels of, or changes in, interest rates, currency exchange rates, stock or other indices, any contract to exchange cash flows or a series of payments, or any contract, including, without limitation, an interest rate floor or cap, or an option, put or call, to hedge payment, currency, rate, spread or similar exposure, between the City and a counterparty; provided that not less than 30 days prior to the City’s execution of such contract or agreement, each Rating Agency which maintains a rating with respect to any Parity Obligation receives notice in writing of the City’s pending execution thereof; and provided further that at the time of origination each Rating Agency which maintains a rating with respect to any Parity Obligation confirms in writing to the City that the City’s execution and delivery of such contract will not result in a downgrading, withdrawal or suspension of such rating. The counterparty to a Qualified Swap Agreement must have, at the date of execution of the Qualified Swap Agreement, City Council 38 – 23 6/4/2024
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10 an unsecured, uninsured and nonguaranteed long-term obligation rated not lower than A by Moody’s and S&P; provided, that such counterparty may satisfy such rating requirements by providing an insurance policy for its obligations under any such swap agreement from an insurer whose unsecured ratings are in the rating categories required above, or alternatively by providing an unconditional, irrevocable, unsecured, uninsured and nonguaranteed guaranty of any other entity, including an affiliated entity, whose unsecured ratings are in the rating categories required above.
“Rating Agencies” means Moody’s and S&P, or whichever of them is then rating Parity Obligations.
“Rebate Fund” means the fund by that name established pursuant to any Issuing Instrument.
“Rebate Requirement” shall have the meaning specified in any Tax Certificate. “Reserve Fund” and “Reserve Account” shall have the meanings given to such terms in any Issuing Instrument or Supplement.
“Reserve Requirement” shall have the meaning given to such term in any Issuing Instrument or Supplement.
“S&P” means Standard & Poor’s Global Ratings, its successors and assigns, and if such entity shall be deemed to refer to any other nationally recognized securities rating agency (other than Moody’s) designated by the City.
“Serial Parity Obligations” means Serial Obligations which are Installment Payments or are payable on a parity with Parity Installment Obligations. “Serial Obligations” means Obligations for which no sinking fund payments are provided. “Series” means Obligations issued at the same time or sharing some other common term or characteristic and designated in the Issuing Instrument pursuant to which such Obligations were issued as a separate issue or series of Obligations.
“State” means the State of California.
“Subordinated Obligations” means any Obligations, the payment of principal and interest on which are subordinated in right of payment to Parity Obligations. “Supplement” means a supplement, supplemental to or amendatory of this Installment Purchase Agreement providing for the payment of specific Installment Payments as the Purchase Price for Components of the Project, executed and delivered by the City and the Authority. “System Revenues” means all income, rents, rates, fees, charges and other moneys derived from the ownership or operation of the Water System, including, without limiting the generality of the foregoing, (i) all income, rents, rates, fees, charges (including standby and capacity charges), insurance proceeds or other moneys derived by the City from the water services, facilities, and City Council 38 – 24 6/4/2024
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11 commodities or byproducts sold, furnished or supplied through the facilities of or in the conduct or operation of the business of the Water System, (ii) investment earnings on, and income derived from, the amounts referred to in the preceding clause (i), including investment earnings on the operating reserves, to the extent that the use of such earnings is limited to the Water System by or pursuant to law, and earnings on any Reserve Fund for Obligations but only to the extent that such earnings may be utilized under the Issuing Instrument for the payment of debt service for such Obligations; (iii) the proceeds derived by the City directly or indirectly from the sale or lease of a part of the Water System; and (iv) any amount received from the levy or collection of taxes which are solely available and are earmarked for the support of the operation of the Water System; provided, however, that System Revenues shall not include: (a) customers’ deposits or any other deposits or advances subject to refund until such deposits or advances have become the property of the City; and (b) the proceeds of borrowings. Notwithstanding the foregoing, there shall be deducted from System Revenues any amounts transferred into a Rate Stabilization Fund as contemplated by Section 6.08(b), and there shall be added to System Revenues any amounts transferred out of such Rate Stabilization Fund to pay Maintenance and Operation Costs. System Revenues shall include reimbursements from the United States of America pursuant to Section 54AA of the Code (Section 1531 of Title I of Division B of the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5, 23 Stat. 115 (2009), enacted February 17, 2009), or any future similar program); provided, however, for purposes of complying with the rate setting covenants contained herein and satisfying the debt service coverage requirements in connection with the issuance or incurring of Parity Obligations. System Revenues shall not include such other reimbursements from the United States of America.
“Tax Certificate” means a certificate relating to the requirements of the Code, signed on behalf of the City and the Authority and delivered in connection with the issuance of Tax-Exempt Installment Payment Obligations.
“Tax-Exempt Installment Payment Obligations” means Installment Payment Obligations in respect of which it is intended that the interest component thereof will be excluded from gross income of the holders thereof (other than any holder who is a “substantial user” of facilities financed with such obligations or a “related person” within the meaning of Section 147(a) of the Code) for federal income tax purposes, whether or not such interest in includable as an item of tax preference or otherwise includable directly or indirectly for purposes of calculating other tax liabilities, including any alternative minimum tax or environmental tax under the Code. “Tender Indebtedness” means any Parity Obligations or portions of Parity Obligations, a feature of which is an option, on the part of the holders thereof, or an obligation, under the terms of such Parity Obligations, to tender all or a portion of such Parity Obligations to the City, a Paying Agent, or other fiduciary or agent for payment or purchase and requiring that such. Bonds or portions of Bonds or that such rights to payments or portions of payments be purchased if properly presented.
“Term Parity Obligations” means Term Obligations which are Parity Installment Obligations or are payable on a parity with Parity Installment Obligations.

City Council 38 – 25 6/4/2024
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12 “Term Obligations” means Obligations which are payable on or before their specified maturity dates from sinking fund payments established for that purpose and calculated to retire such Obligations on or before their specified maturity dates. “Trustee” means a financial institution acting in its capacity as Trustee under and pursuant to the Issuing Instrument, and its successors and assigns. “Variable Rate Indebtedness” means any portion of indebtedness evidenced by Parity Obligations the interest rate on which is not established at the time of incurrence of such indebtedness and has not, at some subsequent date, been established at a rate which is not subject to fluctuation or subsequent adjustment, excluding Paired Obligations. “Water Revenue Fund” has the meaning ascribed thereto in Section 5.02 hereof. “Water Service” means the water storage and distribution services made available or provided by the Water System.
“Water System” means any and all facilities, properties and improvements at any time owned, controlled or operated by the City as part of the Water Revenue Fund (defined in Section

5.02 hereof) for the collection, treatment, distribution, administration, disposal or reclamation of water.
“2014 Master Installment Purchase Agreement” means the Master Installment Purchase Agreement, dated as of August 1, 2014, by and between the City and the Santa Ana Financing Authority.

SECTION 1.02. Rules of Construction. Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neutral genders. Except where the context otherwise requires, words importing the singular number shall include the plural number and vice versa, and words importing persons shall include corporations and associations, including districts, agencies and other public bodies, as well as natural persons. Unless otherwise indicated, references herein to subsections, “Sections” and “Articles” are to such subsections, Sections and Articles of this Installment Purchase Agreement. Unless the context requires otherwise, the terms “herein,” “hereof,” “hereunder” and any similar terms, as used in this Installment Purchase Agreement, shall refer to this Installment Purchase Agreement as a whole and not to any particular provisions of this Installment Purchase Agreement. The term “issue” shall include issuance, creation, incurrence, entering into an agreement or any other act pursuant to which the City may become obligated with respect to an Obligation.

City Council 38 – 26 6/4/2024
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13 ARTICLE II

REPRESENTATIONS AND WARRANTIES
SECTION 2.01. Representations by the City. The City makes the following representations:
(a) The City is a charter city and municipal corporation of the State, duly organized and validly pursuant to the provisions of the Constitution and the laws of the State and its Charter.
(b) The City has full legal right, power and authority to enter into this Installment Purchase Agreement and carry out its obligations hereunder and to carry out and consummate all transactions contemplated by this Installment Purchase Agreement, and the City has complied with the provisions of the Constitution and the laws of the State and its Charter in all matters relating to such transactions. The execution and delivery of this Installment Purchase Agreement is not subject to any voter approval requirement contained in Section 602 of the Charter.
(c) By proper action, the City has duly authorized the execution, delivery and due performance of this Installment Purchase Agreement. (d) The execution and delivery of this Installment Purchase Agreement and the consummation of the transactions herein contemplated will not violate any provision of law, any order of any court or other agency of government, or any indenture, material agreement or other instrument to which the City is now a party or by which it or any of its properties or assets is bound, or be in conflict with, result in a breach of or constitute a default (with due notice or the passage of time or both) under any such indenture, agreement or other instrument, or result in the creation or imposition of any prohibited lien, charge or encumbrance of any nature whatsoever upon any of the properties or assets of the City.
(e) The City has determined that it is necessary and proper for the City uses and purposes within the terms of the Constitution and the laws of the State and its Charter that the City acquire the Project in the manner provided for in this Installment Purchase Agreement, in order to provide essential services and facilities to the persons residing in the City.

SECTION 2.02. Representations and Warranties by the Authority. The Authority makes the following representations and warranties:
(a) The Authority is a joint exercise of powers authority and public entity organized and existing under the laws of the State.
(b) The Authority has full legal right, power and authority to enter into this Installment Purchase Agreement and to carry out its obligations hereunder and to carry out and consummate all transactions contemplated by this Installment Purchase Agreement.

City Council 38 – 27 6/4/2024
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14 (c) By proper action, the Authority has duly authorized the execution, delivery and due performance of this Installment Purchase Agreement. (d) The execution and delivery of this Installment Purchase Agreement and the consummation of the transactions herein contemplated will not violate any provision of law, any order of any court or other agency of government, or any indenture, material agreement or other instrument to which the Authority is now a party or by which it or any of its properties or assets is bound, or be in conflict with, result in a breach of or constitute a default (with due notice or the passage of time or both) under any such indenture, agreement or other instrument, or result in the creation or imposition of any prohibited lien, charge or encumbrance of any nature whatsoever upon any of the properties or assets of the Authority.
(e) The interest components of Tax-Exempt Installment Payment Obligations will not be includable in the gross income of the owners of such Obligations for federal income tax purposes.

ARTICLE III

ACQUISITION AND CONSTRUCTION OF PROJECT
SECTION 3.01. Acquisition and Construction of Project; Components. The Authority agrees to apply proceeds of its Obligations in accordance with Section 5.02 of the Indenture, and in connection therewith, the Authority hereby agrees to cause the Project or any Component thereof to be constructed, acquired and installed by the City, as agent of the Authority. The City shall enter into contracts and provide for, as agent of the Authority, the complete construction, acquisition and installation of the Project or any Component thereof as may be necessary. The City hereby agrees that it will cause the construction, acquisition and installation of the Project to be diligently performed.

It is hereby expressly understood and agreed that, except to the extent of proceeds of Authority Obligations which are deposited in an Acquisition Fund, the Authority shall be under no liability of any kind or character whatsoever for the payment of any cost of the Project or any Components. In the event the proceeds of Authority Obligations deposited in an Acquisition Fund are insufficient to complete the construction, acquisition and installation of the Project or any Components, the City shall cause to be deposited in such Acquisition Fund (or shall otherwise appropriate and encumber) from and to the extent of available amounts on deposit in the Water Revenue Fund (or other lawfully available moneys) an amount equal to that necessary to complete the construction, acquisition and installation of the Project or such Components.

The Authority will not undertake to cause any component of the Project to be constructed, acquired or installed unless and until the City and the Authority have entered into a Supplement specifying the components of the Project to be installed or refinanced, the date of completion, the purchase price to be paid by the City hereunder for that component of the Project, and the Installment Payments or the method of calculating Installment Payments.

City Council 38 – 28 6/4/2024
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15 SECTION 3.02. Changes to the Project. (a) From time to time and at any time, the City may modify or amend the description of the Project, to eliminate any part thereof and/or to substitute another Project or Projects, all without obtaining any consent, by filing an amended Exhibit A with the Authority and the Trustee; provided however, that no such amendment shall substitute a Project or Projects which are not to be owned by the City or shall in any way impair the obligations of the City payable from the Water Revenue Fund and contained in any Supplement executed and delivered prior to any such amendment.
(b) The City may substitute other improvements for those listed as Components in any Supplement, but only if the City first files with the Authority and the Trustee a certificate of an Authorized City Representative:
(i) identifying the Components to be substituted and the Components they replace;
(ii) stating that the substituted Components will be owned by the City and payable from the Water Revenue Fund; and
(iii) stating that with respect to Components financed with Tax-Exempt Installment Payment Obligations, the estimated costs of construction, acquisition and installation of the substituted improvements are not less than such costs for the improvements previously planned.

Substituted Components may include or consist of an undivided interest in such Components, in which event the costs associated with the substituted Components over and above the undivided interest need not be deposited in the Acquisition Fund (or otherwise appropriated and encumbered); provided that the certificate of an Authorized City Representative specifies that the funds necessary to complete the substituted Components are on deposit in the Acquisition Fund or otherwise appropriated and encumbered.

ARTICLE IV

INSTALLMENT PAYMENTS
SECTION 4.01. Purchase Price.
(a) The City will pay the Purchase Price for any Components being purchased as provided in a Supplement. The Purchase Price to be paid by the City to the Authority pursuant to any Supplement hereto, solely from Net System Revenues and from no other sources, is the sum of the principal amount of the City’s obligations under such Supplement plus the interest to accrue on the unpaid balance of such principal amount from the effective date thereof over the term thereof, subject to prepayment as provided therein.
(b) The principal amount of the Installment Payments to be made by the City under a Supplement shall be paid at least five days prior to the date such Installment Payments are payable as specified in such Supplement or at such other earlier time or times and in the manner or manners as specified in such Supplement.

City Council 38 – 29 6/4/2024
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16 (c) The interest to accrue on the unpaid balance of such principal amount shall be paid at least five days prior to the date such interest is payable as specified in a Supplement or at such other earlier time or times as specified in such Supplement, and shall be paid by the City as and constitute interest paid on the principal amount of the City’s obligations thereunder. Interest shall be payable in an amount not exceeding the Maximum Rate, at such intervals and according to such interest rate formulas as shall be specified in a Supplement or by reference to any Issuing Instrument to which such Supplement relates, and shall be payable with such frequency as shall be specified therein.

SECTION 4.02. Installment Payments; Reserve Fund Payments. (a) The City may, subject to any rights of prepayment provided for in a Supplement, pay to the Authority, solely from Net System Revenues and from no other sources, the Purchase Price in installment payments over a period not to exceed the maximum period permitted by law, all as specified in a Supplement.

In the event that a Trustee notifies the City that the amount on deposit in a Reserve Fund or Reserve Account is less than the Reserve Requirement, the City shall deposit or cause to be deposited, solely from Net System Revenues, in such Reserve Fund or Reserve Account such amounts on a monthly basis as are necessary to increase the amount on deposit therein to the Reserve Requirement in the ensuing six months.
(b) The obligation of the City to make the Installment Payments solely from Net System Revenues is absolute and unconditional, and until such time as the Purchase Price shall have been paid in full (or provision for the payment thereof shall have been made pursuant to Article IX), the City will not discontinue or suspend any Installment Payments required to be made by it under this section when due, whether or not the Project or any Component thereof is operating or operable or has been completed, or its use is suspended, interfered with, reduced or curtailed or terminated in whole or in part, and such Installment Payments shall not be subject to reduction whether by offset or otherwise and shall not be conditioned upon the performance or nonperformance by any party of any agreement for any cause whatsoever.

ARTICLE V

SYSTEM REVENUES
SECTION 5.01. Commitment of the Net System Revenues. All Parity Obligations, including Parity Installment Payment Obligations, shall be secured by a prior lien on and pledge of Net System Revenues, and within such lien priority, such Parity Obligations shall be of equal rank without preference, priority or distinction of any Parity Obligations over any other Parity Obligations. The City does hereby grant such prior lien on and pledge of Net System Revenues to secure Parity Obligations. Such lien and pledge shall constitute a first lien on Net System Revenues. This Installment Purchase Agreement constitutes a Parity Obligation under the 2014 Master Installment Agreement. The City hereby represents and states that, except as otherwise stated in the 2014 Master Installment Agreement, it has not previously granted any lien or charge on any of the Net System Revenues except as may be stated in a Supplement; provided, however, City Council 38 – 30 6/4/2024
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17 that out of Net System Revenues there may be apportioned such sums for such purposes as are expressly permitted by this Article V.

SECTION 5.02. Allocation of System Revenues. (a) In order to carry out and effectuate the commitment and pledge contained in Section 5.01, the City agrees and covenants that all System Revenues shall be received by the City in trust and shall be deposited when and as received in the City of Santa Ana Water Revenue Fund (the “Water Revenue Fund”) and which fund the City agrees and covenants to maintain so long as any Installment Payments remain unpaid, and all moneys in the Water Revenue Fund shall be so held in trust and applied and used solely as provided herein. The City shall pay (i) directly or as otherwise required all Maintenance and Operation Costs, (ii) to the Trustee, as assignee of the Authority, for deposit in the Payment Fund for Parity Obligations, the amounts specified in any Issuing Instrument, as payments due on account of Parity Obligations. In the event there are insufficient Net System Revenues to make all of the payments contemplated by clause (ii) of the immediately preceding sentence, then said payments should be made as nearly as practicable, pro rata, based upon the respective unpaid principal amounts of said Parity Obligations.
(b) After the payments contemplated by paragraph (a) above have been made, any remaining Net System Revenues shall be used to make up any deficiency in the Reserve Funds and Reserve Accounts for Parity Obligations. In the event there are insufficient Net System Revenues to make up all deficiencies in all Reserve Funds and Reserve Accounts for Parity Obligations, such payments into Reserve Funds and Reserve Accounts shall be made as nearly as practicable pro rata based on the respective unpaid principal amount of all Parity Obligations. Any amounts thereafter remaining in the Water Revenue Fund may from time to time be used to pay for capital expenditures for the Water System or any other lawful purpose of the City, including payments on account of Subordinated Obligations, provided the following conditions are met:
(1) all Maintenance and Operation Costs are being and have been paid and are then current; and
(2) all deposits and payments contemplated by clause (ii) of paragraph (a) above shall have been made in full and no deficiency in any Reserve Fund or Reserve Account for Parity Obligations shall exist.

SECTION 5.03. Additional Obligations.
(a) The City may not create any Obligations the payments of which are senior or prior in right to the payment by the City of Parity Obligations. (b) Without regard to Section 5.03(c), the City may at any time enter into or create an obligation or commitment which is a Credit Provider Reimbursement Obligation or a Qualified Swap Agreement provided the Obligation to which the Qualified Swap Agreement relates is a Parity Obligation.
(c) After the initial issuance of Parity Obligations hereunder, the City may at any time and from time to time issue or create any other Parity Obligations, provided:
(1) The City is not in default under the term of this Agreement.

City Council 38 – 31 6/4/2024
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18 (2) (i) Net System Revenues, as certified by the City, for the most recent audited Fiscal Year preceding the date of execution of the Parity Obligations, plus (ii) projected Net System Revenues (as described below) are at least equal to 120% of Maximum Annual Debt Service.

The projections described in clause (2)(ii) above may take into account (A) increases in the charges made for service from the Water System which have been adopted by the City prior to the date of issuance or incurrence of such Parity Obligations, but which were not in effect for all or part of such preceding Fiscal Year, and which are scheduled to be effective in the period of Debt Service shown for such Parity Obligations, and (2) an allowance for estimated additional average annual Net System Revenues from any additions or connections to or improvements or extensions of the Water System which have occurred from the end of Fiscal Year preceding the date of execution of the Parity Obligations.
(3) Notwithstanding the requirements described above, Parity Obligations may be issued or incurred to refund outstanding Parity Obligations if, after giving effect to the application of the proceeds thereof, total Debt Service will not be increased in any Fiscal Year in which Parity Obligations (outstanding on the date of issuance or incurrence of such refunding Parity Obligations, but excluding such refunding Parity Obligations) not being refunded are outstanding.
(4) The City may but shall not be required to fund a reserve fund or obtain a reserve fund surety or instrument with respect to any Parity Obligations. If a reserve fund is funded for any Parity Obligations or a qualified reserve fund surety or instrument is obtained with respect to any Parity Obligations, such funded reserve fund or qualified reserve fund surety or instrument shall secure only the related Parity Obligations and shall not support the Bonds or any other Parity Obligations.
(5) Subordinate Obligations. The City further covenants that it shall not issue or incur any Subordinate Obligations unless Net System Revenues or projected Net System Revenues, calculated in the same manner as described in paragraph (b) above, are equal to at least 100% of the sum of Debt Service on all Parity Obligations and Subordinate Obligations outstanding immediately subsequent to the incurring of such additional obligations.

SECTION 5.04. Maintenance and Operation Obligations. Amounts to be paid by the City with respect to any Maintenance and Operation Obligation shall constitute Maintenance and Operation Costs only if at the time such Obligation is entered into the City shall deliver to each Trustee a Certificate of the City to the effect that (i) the making of payments on such Obligation as Maintenance and Operation Costs will not impair the City’s ability to comply with the covenant set forth in Section 6.08(a) hereof during the next five Fiscal Years or five Fiscal Years beyond the commercial operation date of the project being financed with such Obligation, whichever is later, and (ii) the properties, services or commodities to be furnished pursuant to such Obligation can be economically and beneficially utilized by the City. If the amounts to be paid by the City for a Maintenance and Operation Obligation do not constitute Maintenance and Operation Costs, then such amounts shall be paid as Subordinate Obligations, in accordance with Section 5.02(b) hereof City Council 38 – 32 6/4/2024
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19 unless, at the time such Obligation is initially incurred, the City demonstrates compliance with Section 5.03(c), in which event such amounts may be paid as Parity Obligations, in accordance with Section 5.02(a) hereof.

ARTICLE VI

COVENANTS OF THE CITY
SECTION 6.01. Compliance with Installment Purchase Agreement and Ancillary Agreements. The City will punctually pay Parity Obligations in strict conformity with the provisions hereof and any ancillary agreement, and will faithfully observe and perform all the agreements, conditions, covenants and terms contained herein required to be observed and performed by it, and will not terminate the Installment Purchase Agreement for any cause including, without limiting the generality of the foregoing, any acts or circumstances that may constitute failure of consideration, destruction of or damage to the Project, commercial frustration of purpose, any change in the tax or other laws of the United States of America or of the State or any political subdivision of either or any failure of the Authority to observe or perform any agreement, condition, covenant or term contained herein required to be observed and performed by it, whether express or implied, or any duty, liability or obligation arising out of or connected herewith or the insolvency, or deemed insolvency, or bankruptcy or liquidation of the Authority or any force majeure, including acts of God, tempest, storm, earthquake, war, rebellion, riot, civil disorder, acts of public enemies, blockade or embargo, strikes, industrial disputes, lock outs, lack of transportation facilities, fire, explosion, or acts or regulations of governmental authorities.

The City will faithfully observe and perform all the agreements, conditions, covenants and terms contained in the Installment Purchase Agreement, including Supplements, and any Issuing Instrument relating to Parity Obligations required to be observed and performed by it, and it is expressly understood and agreed by and between the parties to the Installment Purchase Agreement that, subject to Section 10.07 hereof, each of the agreements, conditions, covenants and terms contained herein and therein is an essential and material term of the purchase of and payment for each Component by the City pursuant to, and in accordance with, and as authorized under the Constitution, laws of the State and the Charter.

The City shall be unconditionally and irrevocably obligated, as long as any Installment Payment Obligations remain outstanding and unpaid, to take all lawful action necessary or required to continue to entitle the City to collect and deposit such System Revenues in the Water Revenue Fund for use as provided in this Installment Purchase Agreement, provided however, such obligation does not, in any way, limit the City’s ability to undertake any and all legal actions, including any appeals, in the defense of a federal court order dictating a water system configuration other than that approved and adopted by the City.

SECTION 6.02. Against Encumbrances. The City will not make any pledge of or place any lien on the Net System Revenues except as otherwise provided or permitted herein.

SECTION 6.03. Debt Service Reserve Fund. The City may maintain or cause to be maintained each Reserve Fund and Reserve Account at the applicable Reserve Requirement. In the event the amount in any such fund or account falls below the applicable Reserve Requirement, City Council 38 – 33 6/4/2024
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20 the City will replenish such fund or account up to the applicable Reserve Requirement pursuant to Section 5.02.

SECTION 6.04. Against Sale or Other Disposition of Property. The City will not sell, lease or otherwise dispose of the Water System or any part thereof essential to the proper operation of the Water System or to the maintenance of the System Revenues, except as provided herein.

Further, the City will not, except as otherwise provided herein, enter into any agreement or lease which impairs the operation of the Water System or any part thereof necessary to secure adequate Net System Revenues for the payment of the Parity Obligations or which would otherwise impair the rights of the Authority with respect to the System Revenues or the operation of the Water System. Any real or personal property which has become nonoperative or which is not needed for the efficient and proper operation of the Water System, or any material or equipment which has become worn out, may be sold if such sale will not materially reduce the Net System Revenues and if the proceeds of such sale are deposited in the Water Revenue Fund.

SECTION 6.05. Against Competitive Facilities. The City will not, to the extent permitted by existing law, construct, acquire, maintain or operate and will not, to the extent permitted by existing law and within the scope of its powers, permit any other public or private agency, authority, district or political subdivision or any person whomsoever to acquire, construct, maintain or operate within the City any water system competitive with the Water System.

SECTION 6.06. Prompt Acquisition and Construction. The City will take all necessary and appropriate steps to construct, acquire and install the Project, as agent of the Authority, with all practicable dispatch and in an expeditious manner and in conformity with law so as to complete the same as soon as possible.

SECTION 6.07. Maintenance and Operation of the Water System; Budgets. The City will maintain and preserve the Water System in good repair and working order at all times and will operate the Water System in an efficient and economical manner and will pay all Maintenance and Operation Costs as they become due and payable. The City will adopt and file with the Authority, on or before the effective date hereof, a budget approved by the City Council of the City setting forth the estimated Maintenance and Operation Costs for the period from such date until the close of the then current Fiscal Year. On or before August 1, of each Fiscal Year, the City will adopt, and on or before one hundred and twenty (120) days after the beginning of the Fiscal Year, file with the Authority a budget approved by the City Council of the City setting forth the estimated Maintenance and Operation Costs for such Fiscal Year. Any budget may be amended at any time during any Fiscal Year and such amended budget shall be filed by the City with the Authority.

SECTION 6.08. Amount of Rates and Charges; Rate Stabilization Fund. (a) The City hereby covenants to fix, prescribe, revise and collect rates and charges for the services and facilities furnished by the Water System during each Fiscal Year which (together with other funds accumulated from System Revenues and which are lawfully available to the City for payment of any of the following amounts during such Fiscal Year) are at least sufficient, after making allowances for contingencies and errors in estimates, to pay the following amounts in the following order:

City Council 38 – 34 6/4/2024
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21 (i) all Maintenance and Operation Costs of the Water System estimated by the City to become due and payable in such Fiscal Year;
(ii) all Debt Service coming due and payable in such Fiscal Year; and (iii) all payments required to meet any other obligations of City which are charges, liens or encumbrances upon, or payable from, the Net System Revenues.

The City shall fix, prescribe, revise and collect rates and charges for the services and facilities furnished by the Water System during each Fiscal Year which are sufficient to yield Net System Revenues, at least equal to one hundred and twenty percent (120%) of the amounts payable under the preceding clause (ii) in such Fiscal Year.
(b) The City may establish, as a fund within the Water Revenue Fund, a fund denominated the Rate Stabilization Fund. From time to time the City may deposit into the Rate Stabilization Fund, from current System Revenues, such amounts as the City shall determine and the amount of available current System Revenues shall be reduced by the amount so transferred.

Amounts may be transferred from the Rate Stabilization Fund solely and exclusively to pay Maintenance and Operation Costs, and any amounts so transferred shall be deemed System Revenues when so transferred. All interest or other earnings upon amounts in the Rate Stabilization Fund may be withdrawn therefrom and accounted for as System Revenues.

SECTION 6.09. Payment of Claims. The City will pay and discharge any and all lawful claims for labor, materials or supplies which, if unpaid, might become a lien on the Net System Revenues or any part thereof or on any funds in the hands of the City or the Trustee might impair the security of the Installment Payments, but the City shall not be required to pay such claims if the validity thereof shall be contested in good faith.

SECTION 6.10. Compliance with Contracts. The City will comply with, keep, observe and perform all agreements, conditions, covenants and terms, express or implied, required to be performed by it contained in all contracts for the use of the Water System and all other contracts affecting or involving the Water System to the extent that the City is a party thereto.

SECTION 6.11. Insurance.
(a) The City will procure and maintain or cause to be procured and maintained insurance on the Water System with responsible insurers, or provide self insurance reserves, in such amounts and against such risks (including accident to or destruction of the Water System) as are usually covered in connection with water systems similar to the Water System. In the event of any damage to or destruction of the Water System caused by the perils covered by such insurance or self insurance, the Net Proceeds thereof shall be applied to the reconstruction, repair or replacement of the damaged or destroyed portion of the Water System. The City shall begin such reconstruction, repair or replacement promptly after such damage or destruction shall occur, and shall continue and properly complete such reconstruction, repair or replacement as expeditiously as possible, and shall pay out of such Net Proceeds all costs and expenses in connection with such reconstruction, repair or replacement so that the same shall be completed and the Water System shall be free and clear of all claims and liens unless the City determines that such property or facility is not necessary to the efficient or proper operation of the Water System and therefore City Council 38 – 35 6/4/2024
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22 determines not to reconstruct, repair or replace such project or facility. If such Net Proceeds exceed the costs of such reconstruction, repair or replacement, then the excess Net Proceeds shall be deposited in the Water Revenue Fund and be available for other proper uses of funds deposited in the Water Revenue Fund.
(b) The City will procure and maintain such other insurance which it shall deem advisable or necessary to protect its interests and the interests of the Authority, which insurance shall afford protection in such amounts and against such risks as are usually covered in connection with water systems similar to the Water System; provided that any such insurance may be maintained under a self-insurance program so long as such self-insurance is maintained in the amounts and manner usually maintained in connection with water systems similar to the Water System and is, in the opinion of an accredited actuary, actuarially sound.

All policies of insurance required to be maintained herein shall, to extent reasonably obtainable, provide that the Authority and the Trustee shall be given thirty (30) days’ written notice of any intended cancellation thereof or reduction of coverage provided thereby.

SECTION 6.12. Accounting Records; Financial Statements and Other Reports. (a) The City will keep appropriate accounting records in which complete and correct entries shall be made of all transactions relating to the Water System, which records shall be available for inspection by the Authority and the Trustee at reasonable hours and under reasonable conditions.
(b) The City will prepare and file with the Authority annually within the number of days specified below after the close of each Fiscal Year (commencing with the Fiscal Year ending June 30, 2024) --
(1) within 270 days, financial statements of the Water Revenue Fund for the preceding Fiscal Year prepared in accordance with generally accepted accounting principles, together with an Accountant’s Report thereon; and (2) within 60 days, a detailed report as to all insurance policies maintained and self-insurance programs maintained by the City with respect to the Water System as of the close of such Fiscal Year, including the names of the insurers which have issued the policies and the amounts thereof and the property or risks covered thereby, together with a certification from the City to the Authority and the Trustee that it is in compliance with the insurance requirements hereunder.
(c) The City will furnish a copy of the financial statements referred to in (b)(1) above to any Owner of the Bonds requesting a copy thereof.

SECTION 6.13. Protection of Security and Rights of the Authority. The City will preserve and protect the security hereof and the rights of the Authority to the Installment Payments hereunder and will warrant and defend such rights against all claims and demands of all persons.

SECTION 6.14. Payment of Taxes and Compliance with Governmental Regulations.

The City will pay and discharge all taxes, assessments and other governmental charges which may City Council 38 – 36 6/4/2024
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23 hereafter be lawfully imposed upon the Water System or any part thereof or upon the System Revenues when the same shall become due. The City will duly observe and conform with all valid regulations and requirements of any governmental authority relative to the operation of the Water System or any part thereof, but the City shall not be required to comply with any regulations or requirements so long as the validity or application thereof shall be contested in good faith.

SECTION 6.15. Collection of Rates and Charges; No Free Service. The City will have in effect at all times rules and regulations for the payment of bills for Water Service. In each case where a bill remains unpaid in whole or in part after it becomes delinquent, the City may disconnect such premises from the water service, and such premises shall not thereafter be reconnected to the water service except in accordance with City operating rules and regulations governing such situations of delinquency. The City will not permit any part of the Water System or any facility thereof to be used or taken advantage of free of charge by any authority, firm or person, or by any public agency (including the United States of America, the State and any city, county, district, political subdivision, public authority or agency thereof).

SECTION 6.16. Eminent Domain Proceeds. If all or any part of the Water System shall be taken by eminent domain proceedings, then the Net Proceeds thereof shall be applied to the replacement of the property or facilities so taken, unless the City determines that such property or facility is not necessary to the efficient or proper operation of the Water System and therefore determines not to replace such property or facilities. Any Net Proceeds of such award not applied to replacement or remaining after such work has been completed shall be deposited in the Water Revenue Fund and be available for other proper uses of funds deposited in the Water Revenue Fund.

SECTION 6.17. Tax Covenants. There shall be included in each Supplement relating to Tax-Exempt Installment Payment Obligations such covenants as are deemed necessary or appropriate by Bond Counsel for the purpose of assuring that interest on such Installment Payment Obligations shall be excluded from gross income under Section 103 of the Code.

SECTION 6.18. Further Assurances. The City will adopt, deliver, execute and make any and all further assurances, instruments and resolutions as may be reasonably necessary or proper to carry out the intention or to facilitate the performance hereof and for the better assuring and confirming unto the Authority of the rights and benefits provided to it herein.

SECTION 6.19. Operate Water System. The City will operate the Water System in an efficient and economical manner, provided that the City may remove from service on a temporary or permanent basis such part or parts of the Water System so long as (a) Net System Revenues are equal to one hundred twenty percent (120%) of the Debt Service for the then current Fiscal Year and for each Fiscal Year thereafter to and including the Fiscal Year during which the last Installment Payment is due as evidenced by an Engineer’s Report on file with the City, and (b) the City shall have filed with the Trustee an opinion of nationally recognized Bond Counsel to the effect that the removal of such part or parts of the Water System will not adversely affect the exclusion from gross income for federal income tax purposes of the interest on Tax-Exempt Installment Payment Obligations.

City Council 38 – 37 6/4/2024
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24 SECTION 6.20. Additional Covenants. The City may provide additional covenants pursuant to any Supplement, including covenants relating to any Credit Support obtained for Installment Payment Obligations; provided, however, that such additional covenants do not materially and adversely affect the right of Owners of Outstanding Obligations issued prior to any such Supplement.

ARTICLE VII

PREPAYMENT OF INSTALLMENT PAYMENTS
SECTION 7.01. Prepayment of Installment Payments. Provisions may be made in any Supplement for the prepayment of Installment Payments, in whole or in part, in such multiples and in such order of maturity and from funds of any source, and with such prepayment premiums and other terms as are specified in the Supplement. Said Supplement shall also provide for any notices to be given relating to such prepayment.

ARTICLE VIII

EVENTS OF DEFAULT AND REMEDIES OF THE AUTHORITY
SECTION 8.01. Events of Default and Acceleration of Maturities. If one or more of the following Events of Default shall happen, that is to say -- (1) if default shall be made in the due and punctual payment of or on account of any Parity Obligation (other than a Qualified Swap Agreement) as the same shall become due and payable;
(2) if default shall be made by the City in the performance of any of the agreements or covenants required herein to be performed by it (other than as specified in clause (1) above and other than any such agreements or covenants, if any, arising in connection with any Qualified Swap Agreement), and such default shall have continued for a period of sixty (60) days after the City shall have been given notice in writing of such default by the Authority;
(3) if any Event of Default specified in any Supplement or Issuing Instrument shall have occurred and be continuing; or
(4) if the City shall file a petition or answer seeking arrangement or reorganization under the federal bankruptcy laws or any other applicable law of the United States of America or any state therein, or if a court of competent jurisdiction shall approve a petition filed with or without the consent of the City seeking arrangement or reorganization under the federal bankruptcy laws or any other applicable law of the United States of America or any state therein, or if under the provisions of any other law for the relief or aid of debtors any court of competent jurisdiction shall assume custody or control of the City or of the whole or any substantial part of its property; then and in each and every such case during the continuance of such Event of Default the Authority shall upon the written request of the Owners of twenty-five percent (25%) or more of the aggregate City Council 38 – 38 6/4/2024
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25 principal amount of all Series of Parity Installment Obligations Outstanding, voting collectively as a single class, by notice in writing to the City, declare the entire unpaid principal amount thereof and the accrued interest thereon to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable, anything contained herein to the contrary notwithstanding; provided, that with respect to a Series of Parity Installment Obligations supported by a Credit Support Instrument, acceleration shall not be effective unless the declaration is consented to by the related Credit Provider. This subsection however, is subject to the condition that if at any time after the entire principal amount of all Series of Parity Installment Obligations and the accrued interest thereon shall have been so declared due and payable and before any judgment or decree for the payment of the moneys due shall have been obtained or entered, the City shall deposit with the Authority a sum sufficient to pay the unpaid principal amount of all such Series of Parity Installment Obligations and the unpaid payments of any other Parity Obligations referred to in clause (l) above due prior to such declaration and the accrued interest thereon, with interest on such overdue installments at the rate or rates applicable thereto in accordance with their terms, and the reasonable expenses of the Authority, and any and all other defaults known to the Authority (other than in the payment of the entire principal amount of the unpaid Parity Installment Obligations and the accrued interest thereon due and payable solely by reason of such declaration) shall have been made good or cured to the satisfaction of the Authority or provision deemed by the Authority to be adequate shall have been made therefor, then and in every such case the Authority, by written notice to the City, may rescind and annul such declaration and its consequences; but no such rescission and annulment shall extend to or shall affect any subsequent default or shall impair or exhaust any right or power consequent thereon.

SECTION 8.02. Application of Net System Revenues Upon Acceleration. Subject to the provisions of any Issuing Instrument, all Net System Revenues received after the date of the declaration of acceleration by the Authority as provided in Section 8.01 shall be applied as set forth in such Issuing Instrument.

SECTION 8.03. Other Remedies of the Authority. The Authority shall have the right, subject to receipt of consent from any Credit Provider with respect to a particular Series of Parity Installment Obligations--
(a) by mandamus or other action or proceeding or suit at law or in equity to enforce its rights against the City or any councilmember, officer or employee thereof, and to compel the City or any such councilmember, officer or employee to perform and carry out its or his duties under the Law and the agreements and covenants required to be performed by it or him contained herein;
(b) by suit in equity to enjoin any acts or things which are unlawful or violate the rights of the Authority; or
(c) by suit in equity upon the happening of an Event of Default to require the City and its councilmembers, officers and employees to account as the trustee of an express trust.

SECTION 8.04. Non-Waiver. Nothing in this article or in any other provision hereof shall affect or impair the obligation of the City, which is absolute and unconditional, to pay the City Council 38 – 39 6/4/2024
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26 Installment Payments to the Authority at the respective due dates or upon prepayment from the Net System Revenues and the other funds herein committed for such payment, or shall affect or impair the right of the Authority, which is also absolute and unconditional, to institute suit to enforce such payment by virtue of the contract embodied herein.

A waiver of any default or breach of duty or contract by the Authority shall not affect any subsequent default or breach of duty or contract or impair any rights or remedies on any such subsequent default or breach of duty or contract. No delay or omission by the Authority to exercise any right or remedy accruing upon any default or breach of duty or contract shall impair any such right or remedy or shall be construed to be a waiver of any such default or breach of duty or contract or an acquiescence therein, and every right or remedy conferred upon the Authority by the Law or by this article may be enforced and exercised from time to time and as often as shall be deemed expedient by the Authority.

If any action, proceeding or suit to enforce any right or exercise any remedy is abandoned or determined adversely to the Authority, the City and the Authority shall be restored to their former positions, rights and remedies as if such action, proceeding or suit had not been brought or taken.

SECTION 8.05. Remedies Not Exclusive. No remedy herein conferred upon or reserved to the Authority is intended to be exclusive of any other remedy, and each such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing in law or in equity or by statute or otherwise and may be exercised without exhausting and without regard to any other remedy conferred by law.

ARTICLE IX

DISCHARGE OF OBLIGATIONS
SECTION 9.01. Discharge of Obligations. If the City shall pay or cause to be paid or there shall otherwise be paid to the Owners of all Outstanding Installment Payment Obligations of a Series the interest thereon and the principal thereof and the redemption premiums, if any, thereon or if all such Outstanding Obligations shall be deemed to have been paid at the times and in the manner stipulated in the applicable Issuing Instrument, then all agreements, covenants and other obligations of the City hereunder shall thereupon cease, terminate and become void and be discharged and satisfied (but only as to such Series) except for the obligation of the City to pay or cause to be paid all sums due hereunder.

ARTICLE X

MISCELLANEOUS
SECTION 10.01. Liability of City Limited to System Revenues. Notwithstanding anything contained herein, the City shall not be required to advance any moneys derived from any source of income other than the Net System Revenues and the other funds provided herein for the payment of the Installment Payments or for the performance of any other agreements or covenants required to be performed by it contained herein. The City may, however, but in no event shall be City Council 38 – 40 6/4/2024
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27 obligated to, advance moneys for any such purpose so long as such moneys are derived from a source legally available for such purpose and may be legally used by the City for such purpose.

The obligation of the City to make the Installment Payments is a special obligation of the City payable solely from such Net System Revenues and other funds provided for herein, and does not constitute a debt of the City or of the State or of any political subdivision thereof within the meaning of any constitutional or statutory debt limitation or restriction.

SECTION 10.02. Benefits of Installment Purchase Agreement Limited to Parties.

Nothing contained herein, expressed or implied, is intended to give to any person other than the City, the Authority or the assigns of the Authority and any Credit Provider any right, remedy or claim under or pursuant hereto, and any agreement or covenant required herein to be performed by or on behalf of the City or the Authority shall be for the sole and exclusive benefit of the other party.

SECTION 10.03. Amendments. This Agreement may be amended with respect to a Series of Installment Payment Obligations in writing as may be mutually agreed by the City and the Authority, with the written consent of any Credit Provider which is providing insurance until the final maturity or payment in full of one or more maturities of such Installment Payment Obligations, or any other Credit Provider for such Installment Payment Obligations and the Owners of a majority in aggregate principal amount of such Installment Payment Obligations then Outstanding, provided that no such amendment shall (a) extend the payment date of any Installment Payment, or reduce the amount of any Installment Payment without the prior written consent of the Owner of each Obligation so affected, or (b) reduce the percentage of Installment Payment Obligations the consent of the Owners of which is required for the execution of any amendment of this Installment Purchase Agreement.

With the written consent of any Credit Provider, this Agreement and the rights and obligations of the City and the Authority hereunder may also be amended or supplemented at any time by an amendment hereof or supplement hereto which shall become binding upon execution by the City and the Authority, without the written consents of any Owner of Installment Obligations, but only to the extent permitted by law and only upon receipt of an unqualified opinion of nationally recognized Bond Counsel selected by the City and approved by the Authority to the effect that such amendment or supplement is permitted by the provisions of this Agreement and is not inconsistent with this Agreement and does not adversely affect the exclusion of the interest portion of the Installment Payments received by the Owners from gross income for federal income tax purposes, and only for any one or more of the following purposes -- (1) to add to the covenants and agreements of the Authority or the City contained in this Agreement other covenants and agreements thereafter to be observed or to surrender any right or power herein reserved to or conferred upon the Authority or the City, and which shall not adversely affect the interests of the Owners of the Installment Payment Obligations;
(2) to cure, correct or supplement any ambiguous or defective provision contained in this Agreement or in regard to questions arising under this Agreement, as the City Council 38 – 41 6/4/2024
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28 Authority or the City may deem necessary or desirable and which shall not adversely affect the interests of the Owners of the Installment Payment Obligations; and (3) to make such other amendments or modifications which shall not materially adversely affect the interests of the Owners of the Installment Payment Obligations.

SECTION 10.04. Successor Is Deemed Included in all References to Predecessor.

Except as otherwise provided herein, whenever either the City or the Authority is named or referred to herein, such reference shall be deemed to include the successor to the powers, duties and functions that are presently vested in the City or the Authority, and all agreements and covenants required hereby to be performed by or on behalf of the City or the Authority shall bind and inure to the benefit of the respective successors thereof whether so expressed or not.

SECTION 10.05. Waiver of Personal Liability. No official, officer or employee of the City shall be individually or personally liable for the payment of the Installment Payments, but nothing contained herein shall relieve any official, officer or employee of the City from the performance of any official duty provided by any applicable provisions of law or hereby.

SECTION 10.06. Partial Invalidity. If any one or more of the agreements or covenants or portions thereof required hereby to be performed by or on the part of the City or the Authority shall be contrary to law, then such agreement or agreements, such covenant or covenants or such portions thereof shall be null and void and shall be deemed separable from the remaining agreements and covenants or portions thereof and shall in no way affect the validity hereof.

SECTION 10.07. Assignment. The Installment Purchase Agreement and any rights hereunder may be assigned by the Authority, as a whole or in part, without the necessity of obtaining the prior consent of the City. The assignment of the Installment Purchase Agreement or rights hereunder or under a Supplement to a Trustee is solely in its capacity as Trustee and the duties, powers and liabilities of the Trustee in acting hereunder shall be subject to the provisions of the Issuing Instrument,
SECTION 10.08. Net Contract. The Installment Purchase Agreement shall be deemed and construed to be a net contract, and the City shall pay absolutely net during the term hereof the Installment Payments and all other payments required hereunder, free of any deductions and without abatement, diminution or setoff whatsoever.

SECTION 10.09. California Law. The Installment Purchase Agreement shall be construed and governed in accordance with the laws of the State.

SECTION 10.10. Notices. All written notices to be given hereunder shall be given by first class mail, postage prepaid, courier or hand delivery to the party entitled thereto at its address set forth below, or at such other address as such party may provide to the other party in writing from time to time, namely:

If to the City: City of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701
Attn: Department of Finance
City Council 38 – 42 6/4/2024
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29 If to the Authority: Santa Ana Public Financing Authority 20 Civic Center Plaza
Santa Ma, CA 92701
Attn: Executive Director
SECTION 10.11. Effective Date. The Installment Purchase Agreement shall become effective as to Installment Payments provided for in a Supplement upon the execution and delivery of such Supplement or as otherwise specified therein, and shall terminate as to such Supplement when the Installment Payments contemplated by such Supplement shall have been fully paid or prepaid (or provision for the payment thereof shall have been made as provided herein).

SECTION 10.12. Execution in Counterparts. The Installment Purchase Agreement and each Supplement may be executed in several counterparts, each of which shall be deemed an original, and all of which shall constitute but one and the same instrument. (Signature page follows)
City Council 38 – 43 6/4/2024
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S-1
IN WITNESS WHEREOF, the parties hereto have executed and attested this Master Installment Purchase Agreement by their officers thereunto duly authorized as of the day and year first written above.

CITY OF SANTA ANA
By:

City Manager
ATTEST:

Clerk of the Council
APPROVED AS TO FORM:

City Attorney

SANTA ANA PUBLIC FINANCING

AUTHORITY
By:

Executive Director
ATTEST:

Secretary
APPROVED AS TO FORM:

Authority Counsel
-Signature PageMaster Installment Purchase Agreement
City Council 38 – 44 6/4/2024
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A-1

EXHIBIT A

DESCRIPTION OF ENTIRE PROJECT
Pursuant to Section 3.02 of the Installment Purchase Agreement, this Exhibit A may be amended from time to time and at any time to modify or amend the description of the Project, to eliminate any part thereof and/or to substitute a Project or Projects, all without obtaining any consent, by filing an amended Exhibit A with the Authority and the Trustee; provided however, that no such amendment shall in any way impair the obligations of the City contained in any Supplement executed and delivered prior to any such amendment.

City Council 38 – 45 6/4/2024
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BBK DRAFT – MAY 14, 2024

FIRST SUPPLEMENT TO

MASTER INSTALLMENT PURCHASE AGREEMENT
by and between the

CITY OF SANTA ANA
and the

SANTA ANA PUBLIC FINANCING AUTHORITY
Dated as of _____________, 2024
Relating to
Installment Payments Secured by
the Water Revenue Fund of
the City of Santa Ana, California
EXHIBIT 3
City Council 38 – 46 6/4/2024
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TABLE OF CONTENTS
Page
-iARTICLE I DEFINITIONS AND AMENDMENTS.......................................................... 2 Section 1.01. Definitions.................................................................................................... 2 Section 1.02. Definitions in Agreement and Indenture...................................................... 3 ARTICLE II REPRESENTATIONS AND WARRANTIES................................................ 3 Section 2.01. The City hereby makes the following representations:................................ 3 Section 2.02. The Authority hereby makes the following representations and warranties:............................................................................................ 4

ARTICLE III PURCHASE OF PROJECT BY, AND SALE THEREOF TO, THE AUTHORITY; PAYMENT............................................................................. 4 Section 3.01. Purchase and Sale of Project........................................................................ 4 Section 3.02. Payment........................................................................................................ 4

ARTICLE IV PURCHASE OF PROJECT BY, AND SALE THEREOF TO, THE CITY; PAYMENT........................................................................................... 5 Section 4.01. Purchase and Sale of Project........................................................................ 5 Section 4.02. The City agrees to pay as Component Installment Payments, solely from Net System Revenues as provided in the Agreement, the following:............................................................................................. 5 Section 4.03. The Component Installment Payments specified herein are Parity Installment Obligations........................................................................ 5 ARTICLE V PREPAYMENT AND REDEMPTION .......................................................... 6 Section 5.01. Prepayment and Redemption ....................................................................... 6 ARTICLE VI ADDITIONAL COVENANTS ....................................................................... 6 Section 6.01. Additional Covenants................................................................................... 6 ARTICLE VII MISCELLANEOUS ........................................................................................ 7 Section 7.01. Liability of City Limited.............................................................................. 7 Section 7.02. Limitation of Rights..................................................................................... 7 Section 7.03. Assignment .................................................................................................. 7 Section 7.04. Notices ......................................................................................................... 7 Section 7.05. Waiver of Personal Liability........................................................................ 8 Section 7.06. Article and Section Headings, Gender and References............................... 8 Section 7.07. Partial Invalidity........................................................................................... 9 Section 7.08. Law Governing ............................................................................................ 9 Section 7.09. Execution in Counterparts............................................................................ 9 EXHIBIT A – THE PROJECT..................................................................................................A-1 City Council 38 – 47 6/4/2024
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1 FIRST SUPPLEMENT TO

MASTER INSTALLMENT PURCHASE AGREEMENT
This FIRST SUPPLEMENT TO MASTER INSTALLMENT PURCHASE
AGREEMENT, made and entered into as of _________ 1, 2024 (this “Supplement”), by and between the CITY OF SANTA ANA, a charter city and municipal corporation organized and existing under and by virtue of the Constitution and the laws of the State of California and its Charter (the “City”), and the SANTA ANA PUBLIC FINANCING AUTHORITY, a joint exercise of powers authority and public entity duly organized and existing under and by virtue of the State of California (the “Authority”);
WITNESSETH:

WHEREAS, the City previously financed the acquisition, construction and installation of certain improvements to its Water System (the “Project”) (capitalized terms used herein shall have the meanings given such teens in Section 1.01) through the incurrence of certain Prior Obligations, defined herein.

WHEREAS, the City desires to finance and refinance the Project by prepaying the Prior Obligations;
WHEREAS, concurrently with the prepayment of the Prior Obligations, the City will reacquire the Project and will resell the Project to the Authority and then repurchase the Project from the Authority pursuant to this Supplement;
WHEREAS, the City and the Authority have heretofore entered into a Master Installment Purchase Agreement, dated as of ____________ 1, 2024 (the “Agreement”), pursuant to which the Authority has agreed to provide the Project and any Components thereof to the City and the City has agreed from time to time to purchase the Project and/or Components thereof as are specified in a Supplement, and has declared the conditions and terms upon which obligations such as installment payments (the “Component Installment Payments”), and the interest thereon, are to be incurred and secured;
WHEREAS, the Authority proposes to assign without recourse certain of its rights under and pursuant to this Supplement to U.S. Bank Trust Company, National Association, as trustee (the “Trustee”);
WHEREAS, in consideration of such assignment and the execution and entering into of the Indenture, dated as of the date hereof, by and between the Trustee and the Authority, the Authority has agreed to issue its Santa Ana Public Financing Authority Water Revenue Bonds, Series 2024 (Payable Solely from Installment Payments Secured by Water System Net Revenues) (the “Component Obligation Series 2024”);
WHEREAS, a portion of the proceeds of the Component Obligation Series 2024 will be used to provide for the prepayment of the Prior Obligations; and City Council 38 – 48 6/4/2024
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2 WHEREAS, all acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in connection with the execution and delivery of this Supplement do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the parties hereto are now duly authorized to execute and enter into this Supplement;
NOW, THEREFORE, in consideration of the covenants and provisions herein set forth and for other valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto do hereby agree as follows:

ARTICLE I

DEFINITIONS AND AMENDMENTS
SECTION 1.01. Definitions. All of the definitions contained in the Agreement shall apply to this Supplement except as otherwise expressly provided. In addition, the following terms are defined herein.
“Closing Date” means _________, 2024.
“Components” means the components of the Project specified in Exhibit A hereto for which the City will be making Installment Payments as hereinafter specified. “Component Installment Payments” means the Installment Payments herein specified which are to pay the Purchase Price of the Components.
“Component Obligation Series 2024” means the Santa Ana Public Financing Authority Water Revenue Bonds, Series 2024 (Payable Solely from Installment Payments Secured by Water System Net Revenues).
“First Supplement” means this First Supplement to Master Installment Purchase Agreement, by and between the City and the Authority, dated as of ___________, 2024, securing the 2024 Bonds.
“Indenture” means the Indenture, dated as of _____________, 2024, by and between the Trustee and the Authority, as originally executed and as it may from time to time be amended or supplemented in accordance with its terms.
“Person” means an individual, corporation, limited liability company, film, association, partnership, trust or other legal entity or group of entities, including a governmental entity or any agency or political subdivision thereof.
“Prior Installment Agreement” means the Master Installment Purchase Agreement, dated as of August 1, 2014, as supplemented by the First Supplement to Master Installment Purchase Agreement, dated as of August 1, 2014, each by and between the City and the Santa Ana Financing Authority and securing the payment of the Prior Obligations.

City Council 38 – 49 6/4/2024
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3 “Prior Obligations” means the Santa Ana Financing Authority Water Revenue Bonds, Series 2014 (Payable Solely from Installment Payments Secured by Water System Net Revenues). “Trustee” means U.S. Bank Trust Company, National Association, and its successors or assigns, or any successor trustee.

SECTION 1.02. Definitions in Agreement and Indenture. Except as otherwise herein defined and unless the context otherwise requires, the terms defined in the Agreement or the Indenture shall for all purposes hereof and of any amendment hereof or supplement hereto and of any report or other document mentioned herein, have the meanings defined therein, such definitions to be equally applicable to both the singular and plural forms of any of the terms defined therein. With respect to any defined term which is given a different meaning under this Supplement than under the Agreement or the Indenture, as used herein it shall have the meaning given herein.

ARTICLE II

REPRESENTATIONS AND WARRANTIES
SECTION 2.01. The City hereby makes the following representations:
(a) The City is a charter city and municipal corporation of the State, duly organized and validly existing pursuant to the provisions of the Constitution and the laws of the State and its Charter.
(b) The City has full legal right, power and authority to enter into this Supplement and carry out its obligations hereunder, to carry out and consummate all transactions contemplated by this Supplement, and the City has complied with the provisions of the Constitution and the laws of the State and its Charter in all matters relating to such transactions. The execution and delivery of this Supplement is not subject to any voter approval requirement contained in Section 602 of the Charter.
(c) By proper action, the City has duly authorized the execution, delivery and due performance of this Supplement.
(d) The execution and delivery of this Supplement and the consummation of the transactions herein contemplated will not violate any provision of law, any order of any court or other agency of government, or any indenture, material agreement or other instrument to which the City is now a party or by which it or any of its properties or assets is bound, or be in conflict with, result in a breach of or constitute a default (with due notice or the passage of time or both) under any such indenture, agreement or other instrument, or result in the creation or imposition of any prohibited lien, charge or encumbrance of any nature whatsoever upon any of the properties or assets of the City.
(e) The City has determined that it is necessary and proper for the City uses and purposes within the terms of the Constitution and the laws of the State and its Charter and that the City refinance the Project in the manner provided for in this Supplement, in order to provide essential services and facilities to the persons residing in the City.

City Council 38 – 50 6/4/2024
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4 SECTION 2.02. The Authority hereby makes the following representations and warranties:
(a) The Authority is a joint exercise of powers authority and public entity organized and existing under the laws of the State.
(b) The Authority has full legal right, power and authority to enter into this Supplement and to carry out its obligations hereunder and to carry out and consummate all transactions contemplated by this Supplement.
(c) By proper action, the Authority has duly authorized the execution, delivery and due performance of this Supplement.
(d) The execution and delivery of this Supplement and the consummation of the transactions herein contemplated will not violate any provision of law, any order of any court or other agency of government, or any indenture, material agreement or other instrument to which the Authority is now a party or by which it or any of its properties or assets is bound, or be in conflict with, result in a breach of or constitute a default (with due notice or the passage of time or both) under any such indenture, agreement or other instrument, or result in the creation or imposition of any prohibited lien, charge or encumbrance of any nature whatsoever upon any of the properties or assets of the Authority.
(e) The interest components of Component Installment Payments will not be includable in the gross income of the owners of such Component Installment Payments for federal income tax purposes.

ARTICLE III
PURCHASE OF PROJECT BY, AND SALE THEREOF TO, THE AUTHORITY;

PAYMENT
SECTION 3.01. Purchase and Sale of Project. Upon prepayment of the Prior Obligations and the discharge of the City’s obligations under the First Installment Agreement, the City represents and warrants that it is the sole and exclusive owner of the Project. The Authority hereby purchases from the City, and the City hereby sells to the Authority, the Project in accordance with the provisions of this Supplement. All right, title and interest in the Project shall immediately vest in the Authority on the Closing Date without further action on the part of the Authority or the City.

SECTION 3.02. Payment. On the Closing Date, the Authority shall pay to the City, as and for the purchase price of the Project, the amount of $______________, which amount shall be paid from the proceeds of the Component Obligation Series 2024.

City Council 38 – 51 6/4/2024
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5 ARTICLE IV

PURCHASE OF PROJECT BY, AND
SALE THEREOF TO, THE CITY; PAYMENT
SECTION 4.01. Purchase and Sale of Project. The City hereby purchases from the Authority, and the Authority hereby sells to the City, the Project in accordance with the provisions of this Supplement. On the Closing Date, immediately subsequent to the vesting of all right, title and interest in the Project in the Authority pursuant to Section 2.01 hereof, all right, title and interest in the Project shall vest in the City without further action on the part of the City or the Authority
SECTION 4.02. The City agrees to pay as Component Installment Payments, solely from Net System Revenues as provided in the Agreement, the following:

Installment
Payment Date
(September 1)
Interest
Portion of
Installment
Payments
Principal
Portion of
Installment
Payments
Total Component
Installment
Payments
SECTION 4.03. The Component Installment Payments specified herein are Parity Installment Obligations.

City Council 38 – 52 6/4/2024
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6 ARTICLE V

PREPAYMENT AND REDEMPTION
SECTION 5.01. Prepayment and Redemption. The City shall have the following rights and duties to prepay Component Installment Payments:

The Component Installment Payments payable on or after September 1, ____ are subject to prepayment, at the option of the City, upon at least 45 days prior written notice to the Authority and the Trustee specifying the date and amount of such prepayment, on or after September 1, ____, at a prepayment price equal to 100% of the Principal Portion of Component Installment Payments to be prepaid plus the unpaid Interest Portion of Component of Installment Payments up to the date fixed for prepayment.

ARTICLE VI

ADDITIONAL COVENANTS
SECTION 6.01. Additional Covenants. In addition to the covenants specified in the Agreement, the following additional covenants are added with respect to the Component Obligation Series 2024:

The City will not directly or indirectly use or permit the use of any proceeds of the Component Obligation Series 2024 or any other funds of the City or of the Project or take or omit to take any action that would cause the Component Obligation Series 2024 to be “private activity bonds” within the meaning of Section 141 of the Code, or obligations which are “federally guaranteed” within the meaning of Section 149(b) of the Code.

The City covenants that it will not take any action, or fail to take any action, if any such action or failure to take action would adversely affect the exclusion from gross income of the interest represented by the Component Obligation Series 2024 under Section 103 of the Code. The City will not directly or indirectly use or permit the use of any proceeds of the Component Obligation Series 2024 or any other funds of the City, or take or omit to take any action, that would cause the Component Obligation Series 2024 to be “arbitrage bonds” within the meaning of Section 148(a) of the Code. To that end, the City will comply with all requirements of Section 148 of the Code to the extent applicable to the Component Obligation Series 2024. In the event that at any time the City is of the opinion that for purposes of this Section it is necessary to restrict or limit the yield on the investment of any moneys held by the Trustee under the Indenture or otherwise, the City shall so instruct the Trustee in writing, and shall cause the Trustee to take such action as may be necessary in accordance with such instructions.

Without limiting the generality of the foregoing, the City agrees that there shall be paid from time to time all amounts required to be rebated to the United States of America pursuant to Section 148(f) of the Code and any temporary, proposed or final Treasury Regulations as may be applicable to the Component Obligation Series 2024 from time to time. This covenant shall survive payment in full or defeasance of the Component Obligation Series 2024. The City specifically covenants to pay or cause to be paid to the United States of America at the times and in the amounts City Council 38 – 53 6/4/2024
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7 determined under this Section the Rebate Requirement, as described in the Tax Certificate and to otherwise comply with the provisions of the Tax Certificate executed by the City in connection with the execution and delivery of the Component Obligation Series 2024.

Notwithstanding any provision of this Section, if the City shall provide to the Trustee an opinion of nationally recognized Bond Counsel to the effect that any action required under this Section is no longer required, or to the effect that some further action is required, to maintain the exclusion from gross income of the interest on the Component Obligation Series 2024 pursuant to Section 103 of the Code, the Trustee may rely conclusively on such opinion in complying with the provisions hereof, and the covenants hereunder shall be deemed to be modified to that extent.

ARTICLE VII

MISCELLANEOUS
SECTION 7.01. Liability of City Limited. Notwithstanding anything contained herein, the City shall not be required to advance any moneys derived from any source of income other than Net System Revenues and the other funds provided herein for the payment of the Component Installment Payments, and the interest thereon, and other payments required to be made by it hereunder, or for the performance of any agreements or covenants required to be performed by it contained herein. The City may, however, but in no event shall be obligated to, advance moneys for any such purpose so long as such moneys are derived from a source legally available for such purpose and may be legally used by the City for such purpose.

The obligation of the City to pay the Component Installment Payments, and the interest thereon, and other payments required to be made by it hereunder is a special obligation of the City payable, in the manner provided herein, solely from Net System Revenues and other funds provided for herein, and does not constitute a debt of the City or of the State, or of any political subdivision thereof, in contravention of any constitutional or statutory debt limitation or restriction. Neither the faith and credit nor the taxing power of the City or the State, or any political subdivision thereof, is pledged to the payment of the Component Installment Payments, or the interest thereon, or any other payments required to be made hereunder.

SECTION 7.02. Limitation of Rights. Nothing in this Supplement expressed or implied is intended or shall be construed to give to any Person other than the City, the Authority and the Trustee, as assignee of the Authority, any legal or equitable right, remedy or claim under or in respect of this Supplement or any covenant, condition or provision therein or herein contained, and all such covenants, conditions and provisions are and shall be held to be for the sole and exclusive benefit of the City, the Authority and the Trustee, as assignee of the Authority.

SECTION 7.03. Assignment. The City and the Authority hereby acknowledge the transfer, conveyance and assignment by the Authority to the Trustee of all of the Authority’s rights, title and interest under this Supplement, including the right to receive Component Installment Payments, and the interest thereon, from the City, pursuant to the Indenture.

SECTION 7.04. Notices. Any written notice, statement, demand, consent, approval, authorization, offer, designation, request or other communication to be given hereunder shall be City Council 38 – 54 6/4/2024
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8 given to the party entitled thereto at its address set forth below, or at such other address as such party may provide to the other parties in writing from time to time, namely:

If to the City: City of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701
Attn: Department of Finance
If to the Authority: Santa Ana Public Financing Authority 20 Civic Center Plaza
Santa Ana, CA 92701
Attn: Executive Director
If to the Trustee: U.S. Bank Trust Company, National Association U.S. Bank Tower
633 West 5th St., 24th Floor
Los Angeles, CA 90071
Each such notice, statement, demand, consent, approval, authorization, offer, designation, request or other communication hereunder shall be deemed delivered to the party to whom it is addressed (a) if personally served or delivered, upon delivery, (b) if given by electronic communication, whether by telex, telegram or telecopier, upon the sender’s receipt of an appropriate answerback or other written acknowledgment, (c) if given by registered or certified mail, return receipt requested, deposited with the United States mail postage prepaid, 72 hours after such notice is deposited with the United States mail, (d) if given by overnight courier, with courier charges prepaid, 24 hours after delivery to said overnight courier, or (e) if given by any other means, upon delivery at the address specified in this Section.

Any notice to be given to or by the Authority hereunder shall, upon the assignment of the Authority’s rights hereunder to the Trustee, also be given to or by the Trustee.

SECTION 7.05. Waiver of Personal Liability. No official, officer or employee of the City shall be individually or personally liable for the payment of the Component Installment Payments, or the interest thereon, or other payments required to be made by the City hereunder, but nothing contained herein shall relieve any official, officer or employee of the City from the performance of any official duty provided by any applicable provisions of law or hereby.

SECTION 7.06. Article and Section Headings, Gender and References. The headings or titles of the several Articles and Sections hereof and the table of contents appended hereto shall be solely for convenience of reference and shall not affect the meaning, construction or effect hereof, and words of any gender shall be deemed and construed to include all genders. All references herein to “Articles,” “Sections” and other subsections or clauses are to the corresponding articles, sections, subsections or clauses hereof, and the words “hereby,” “herein,” “hereof,” “hereto,” “herewith” and other words of similar import refer to this Supplement as a whole and not to any particular Article, Section, subdivision or clause hereof.

City Council 38 – 55 6/4/2024
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9 SECTION 7.07. Partial Invalidity. If any one or more of the agreements or covenants or portions thereof required hereby to be performed by or on the part of the City or the Authority shall be contrary to law, then such agreement or agreements, such covenant or covenants or such portions thereof shall be null and void and shall be deemed separable from the remaining agreements and covenants or portions thereof and shall in no way affect the validity hereof.

SECTION 7.08. Law Governing. This Supplement shall be construed and governed in accordance with the laws of the State.

SECTION 7.09. Execution in Counterparts. This Supplement may be executed in several counterparts, each of which shall be deemed an original, and all of which shall constitute but one and the same instrument.
(Signature page follows)
City Council 38 – 56 6/4/2024
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S-1
IN WITNESS WHEREOF, the parties hereto have executed and attested this First Supplement to Master Installment Purchase Agreement by their officers thereunto duly authorized as of the day and year first written above.

CITY OF SANTA ANA
By:

City Manager
ATTEST:

Clerk of the Council
APPROVED AS TO FORM:

City Attorney

SANTA ANA PUBLIC FINANCING

AUTHORITY
By:

Executive Director
ATTEST:

Secretary
APPROVED AS TO FORM:

Authority Counsel
-Signature PageFirst Supplement to
Master Installment Purchase Agreement
City Council 38 – 57 6/4/2024
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A-1

EXHIBIT A

THE PROJECT
The acquisition, installation, and construction of water facilities of the City.

City Council 38 – 58 6/4/2024
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ESCROW AGREEMENT
by and between the

CITY OF SANTA ANA
and
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

Dated as of _________, 2024
Santa Ana Financing Authority
Water Revenue Bonds, Series 2014
(Payable Solely from Installment Payments
Secured by Water System Net Revenues)
EXHIBIT 4
City Council 38 – 59 6/4/2024
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1 ESCROW AGREEMENT
THIS ESCROW AGREEMENT (this “Escrow Agreement”), executed and entered into as of August 1, 2014, is by and between the CITY OF SANTA ANA (the “City”) and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as escrow agent (the “Escrow Agent”).

WITNESSETH:

WHEREAS, there are currently outstanding Santa Ana Financing Authority Water Revenue Refunding Bonds, Series 2014 (Payable Solely from Installment Payments Secured by Water System Net Revenues) (the “Prior Bonds”), in the original aggregate principal amount of $15,690,000;
WHEREAS, the Prior Bonds were issued under the Indenture, dated as of August 1, 2014 (as supplemented and amended, the “Prior Indenture”), by and between The Bank of New York Mellon Trust Company, N.A. (the “Trustee”), and the Authority; WHEREAS, the Prior Bonds are payable from component installment payments (the “2014 Installment Payments”) payable by the City under the Master Installment Purchase Agreement, dated as of August 1, 2014 (the “Master Installment Purchase Agreement”), between the City and the Authority, and the First Supplement to Master Installment Purchase Agreement, dated as of August 1, 2014, between the City and the Authority (the “Prior Supplement” and together with the Master Installment Purchase Agreement, the “Prior Installment Purchase Agreement”) and pertaining to the City’s water system;
WHEREAS, the Escrow Agent is the trustee under the Prior Indenture; WHEREAS, the City has determined that a savings will be realized by exercising its option under the Prior Installment Purchase Agreement to prepay said component installment payments, thereby providing the funds necessary to pay, when due, the principal of and interest on the Prior Bonds to and including September 1, 2024 and to redeem the Prior Bonds on September 1, 2024 (the “Redemption Date”) at a redemption price (the “Redemption Price”) equal to ___% of the principal amount of the Prior Bonds plus the accrued but unpaid interest on the Prior Bonds, to the Redemption Date;
WHEREAS, in order to provide the funds necessary to exercise said option, the Authority has issued $________ aggregate principal amount of Water Revenue Bonds, Series 2024 (Payable Solely from Installment Payments Secured by Water System Net Revenues) (the “Bonds”) pursuant to the Indenture, dated as of ____________, 2024 (the “Indenture”), by and between the Trustee and the Authority;
WHEREAS, the Prior Bonds are subject to redemption on the Redemption Date and the City has determined to provide for the call for redemption on the Redemption Date of the Prior Bonds outstanding on the Redemption Date;
NOW THEREFORE, in consideration of the mutual covenants and agreements herein contained, the City and the Escrow Agent agree as follows:

City Council 38 – 60 6/4/2024
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2 Section 1. Definitions. Unless otherwise defined herein, capitalized terms used herein shall have the meanings ascribed to such terms in the Prior Indenture or, if no meanings are ascribed thereto in the Prior Indenture, such terms shall have the meanings ascribed thereto in the Prior Installment Purchase Agreement.

Section 2. The Escrow Fund. (a) There is hereby established a fund (the “Escrow Fund”) to be held as an irrevocably pledged escrow by the Escrow Agent, which the Escrow Agent shall keep separate and apart from all other funds of the City and the Escrow Agent and to be applied solely as provided in this Escrow Agreement.

Pending application as provided in this Escrow Agreement, amounts on deposit in the Escrow Fund are hereby pledged and assigned solely to the payment of (i) the principal of and interest on the Prior Bonds coming due on and prior to the Redemption Date, and (ii) the Redemption Price on the Redemption Date, which amounts shall be held in trust by the Escrow Agent for the Owners of the Prior Bonds.
(b) Upon the execution and delivery of the Bonds, the Escrow Agent is hereby directed to deposit in the Escrow Fund $___________ received from the proceeds of the sale of the Bonds as provided in Section 5.02 of the Indenture, and to transfer $____________ from the funds and accounts under the Prior Indenture to the Escrow Fund. (c) Upon the deposit of moneys pursuant to Section 2(b), the moneys on deposit in the Escrow Fund will be at least equal to an amount sufficient to purchase the aggregate principal amount of defeasance securities permitted by Section 12.01 of the Prior Indenture (“Defeasance Securities”) set forth in Exhibit A hereto (the “Exhibit A Securities”), which principal, together with all interest due or to become due on such Exhibit A Securities, and any uninvested cash held by the Escrow Agent in the Escrow Fund, will be sufficient to make the payments required by Section 4 hereof.

Section 3. Investment of Moneys. The Escrow Agent shall not invest the moneys deposited in the Escrow Fund and such sum shall be held as cash in the Escrow Fund. The report of the Verification Agent stating that the moneys deposited into the Escrow Fund are calculated to be in an amount sufficient to pay the principal, redemption premium and interest on the Refunded Bonds and to redeem the Refunded Bonds on September 1, 2024. The Escrow Agent shall hold all such moneys in the Escrow Fund, and shall apply the same only for the purposes and in the manner provided in this Escrow Agreement.

Section 4. Payment of Prior Bonds. From the maturing principal of the Defeasance Securities held in the Escrow Fund and the investment income and other earnings thereon and any uninvested money then held in the Escrow Fund, the Escrow Agent shall apply such amounts, as follows:
(a) On each interest payment date for the Prior Bonds to and including the Redemption Date, the Escrow Agent shall pay interest on the Prior Bonds in accordance with the terms of the Prior Indenture.

City Council 38 – 61 6/4/2024
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3 (b) On each principal payment date for the Prior Bonds to and including the Redemption Date, the Escrow Agent shall pay the principal of the Prior Bonds in accordance with the terms of the Prior Indenture.
(c) On the Redemption Date, the Escrow Agent shall pay the Redemption Price in accordance with the terms of the Prior Indenture.

To the extent that the amount on deposit in the Escrow Fund on the Redemption Date is in excess of the amount necessary to make the required payments with respect to the Prior Bonds, as shown in the then applicable escrow verification of the nationally recognized firm of independent certified public accountants, such excess shall be transferred to the Trustee for deposit in the Interest Account established under the Indenture.

Section 5. Irrevocable Instructions to Mail Notices. The City hereby irrevocably designates the Prior Bonds for prior redemption on the Redemption Date as indicated in Section 4 hereof and hereby irrevocably instructs the Escrow Agent to give, in accordance with Section 3.02 of the Prior Indenture, mailed notice of redemption of the Prior Bonds.

Section 6. Performance of Duties. The Escrow Agent agrees to perform the duties set forth herein and agrees that the irrevocable instructions to the Escrow Agent herein provided are in a form satisfactory to it.

Section 7. Escrow Agent’s Authority to Make Investments. The Escrow Agent shall have no power or duty to invest any funds held under this Escrow Agreement except as provided in Section 3 hereof. The Escrow Agent shall have no power or duty to transfer or otherwise dispose of the moneys held hereunder except as provided in this Escrow Agreement.

Section 8. Indemnity. To the extent permitted by law, the City hereby assumes liability for, and hereby agrees (whether or not any of the transactions contemplated hereby are consummated) to indemnify, protect, save and keep harmless the Escrow Agent and its respective successors, assigns, agents, employees and servants, from and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursements (including reasonable legal fees, expenses and disbursements) of whatsoever kind and nature which may be imposed on, incurred by, or asserted against, the Escrow Agent at any time (whether or not also indemnified against the same by the City or any other person under any other agreement or instrument, but without double indemnity) in any way relating to or arising out of the execution, delivery and performance of this Escrow Agreement, the establishment hereunder of the Escrow Fund, the acceptance of the funds and securities deposited therein, the purchase of any securities to be purchased pursuant thereto, the retention of such securities or the proceeds thereof and any payment, transfer or other application of moneys or securities by the Escrow Agent in accordance with the provisions of this Escrow Agreement; provided, however, that the City shall not be required to indemnify the Escrow Agent against the Escrow Agent’s own negligence or willful misconduct or the negligence or willful misconduct of the Escrow Agent’s respective successors, assigns, agents and employees or the material breach by the Escrow Agent of the terms of this Escrow Agreement. In no event shall the City or the Escrow Agent be liable to any person by reason of the transactions contemplated hereby other than to each other as set forth in this Section.

The indemnities contained in this Section shall survive the termination of this Escrow Agreement.

City Council 38 – 62 6/4/2024
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4 Section 9. Responsibilities of Escrow Agent. The Escrow Agent and its respective successors, assigns, agents and servants shall not be held to any personal liability whatsoever, in tort, contract, or otherwise, in connection with the execution and delivery of this Escrow Agreement, the establishment of the Escrow Fund, the acceptance of the moneys or any securities deposited therein, the purchase of the securities to be purchased pursuant hereto, the retention of such securities or the proceeds thereof, the sufficiency of the securities or any uninvested moneys held hereunder to accomplish the redemption of the Prior Bonds, or any payment, transfer or other application of moneys or securities by the Escrow Agent in accordance with the provisions of this Escrow Agreement or by reason of any non-negligent act, non-negligent omission or non-negligent error of the Escrow Agent made in good faith in the conduct of its duties. The recitals of fact contained in the “Whereas” clauses herein shall be taken as the statements of the City, and the Escrow Agent assumes no responsibility for the correctness thereof The Escrow Agent makes no representation as to the sufficiency of the securities to be purchased pursuant hereto and any uninvested moneys to accomplish the redemption of the Prior Bonds pursuant to the Prior Indenture or to the validity of this Escrow Agreement as to the City and, except as otherwise provided herein, the Escrow Agent shall incur no liability in respect thereof. The Escrow Agent shall not be liable in connection with the performance of its duties under this Escrow Agreement except for its own negligence, willful misconduct or default, and the duties and obligations of the Escrow Agent shall be determined by the express provisions of this Escrow Agreement. The Escrow Agent may consult with counsel, who may or may not be counsel to the City, and in reliance upon the written opinion of such counsel shall have full and complete authorization and protection in respect of any action taken, suffered or omitted by it in good faith in accordance therewith. Whenever the Escrow Agent shall deem it necessary or desirable that a matter be proved or established prior to taking, suffering, or omitting any action under this Escrow Agreement, such matter (except the matters set forth herein as specifically requiring a certificate of a nationally recognized firm of independent certified public accountants or an opinion of counsel of recognized standing in the field of law relating to municipal bonds) may be deemed to be conclusively established by a written certification of the City. Whenever the Escrow Agent shall deem it necessary or desirable that a matter specifically requiring a certificate of a nationally recognized film of independent certified public accountants or an opinion of counsel of recognized standing in the field of law relating to municipal bonds be proved or established prior to taking, suffering, or omitting any such action, such matter may be established only by a certificate signed by a nationally recognized film of certified public accountants or such opinion of counsel of recognized standing in the field of law relating to municipal bonds.

No provision of this Escrow Agreement shall require the Escrow Agent to expend or risk its own funds or otherwise incur any financial liability in the performance or exercise of any of its duties hereunder, or in the exercise of its rights or powers.

If the Escrow Agent learns that the Department of the Treasury or the Bureau of Public Debt will not, for any reason, accept a subscription of Securities that is to be submitted pursuant to this Escrow Agreement, the Escrow Agent shall promptly request alternative written investment instructions from the City with respect to escrowed funds which were to be invested in securities.

The Escrow Agent shall follow such instructions and, upon the maturity of any such alternative investment, the Escrow Agent shall hold funds uninvested and without liability for interest until receipt of further written instructions from the City. In the absence of investment instructions from the City, the Escrow Agent shall not be responsible for the investment of such funds or interest City Council 38 – 63 6/4/2024
55394.00068\42304978.2
5 thereon. The Escrow Agent may conclusively rely upon the City’s selection of an alternative investment as a determination of the alternative investment's legality and suitability and shall not be liable for any losses related to the alternative investments or for compliance with any yield restriction applicable thereto.

Section 10. Amendments. The City and the Escrow Agent may (but only with the consent of the Owners of all of the Prior Bonds and the Bond Insurer, if any, for the Prior Bonds) amend this Escrow Agreement or enter into agreements supplemental to this Escrow Agreement.

Section 11. Term. This Escrow Agreement shall commence upon its execution and delivery and shall terminate on the date upon which the Prior Bonds have been paid in accordance with this Escrow Agreement.

Section 12. Compensation. The City shall from time to time pay or cause to be paid to the Escrow Agent the agreed upon compensation for its services to be rendered hereunder, and reimburse the Escrow Agent for all of its reasonable advances in the exercise and performance of its duties hereunder; provided, however, that under no circumstances shall the Escrow Agent be entitled to any lien whatsoever on any moneys or obligations in the Escrow Fund for the payment of fees and expenses for services rendered or expenses incurred by the Escrow Agent under this Escrow Agreement or otherwise.

Section 13. Severability. if any one or more of the covenants or agreements provided in this Escrow Agreement on the part of the City or the Escrow Agent to be performed should be determined by a court of competent jurisdiction to be contrary to law, such covenants or agreements shall be null and void and shall be deemed separate from the remaining covenants and agreements herein contained and shall in no way affect the validity of the remaining provisions of this Escrow Agreement.

Section 14. Counterparts. This Escrow Agreement may be executed in several counterparts, all or any of which shall be regarded for all purposes as an original but all of which shall constitute and be but one and the same instrument.

Section 15. Governing Law. This Escrow Agreement shall be construed under the laws of the State of California.
(Signature page follows)
City Council 38 – 64 6/4/2024
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S-1
IN WITNESS WHEREOF, the parties hereto have executed and attested this Escrow Agreement by their officers thereunto duly authorized as of the day and year first written above.

THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A., AS ESCROW
AGENT
By:

Authorized Officer
ATTEST:

Secretary
APPROVED AS TO FORM:

Authority Counsel

CITY OF SANTA ANA
By:

City Manager
ATTEST:

Clerk of the Council
APPROVED AS TO FORM:

City Attorney
-Signature PageEscrow Agreement
City Council 38 – 65 6/4/2024
Stradling Yocca Carlson & Rauth
Draft of May 17, 2024
Error! Unknown document property name.
$______________

SANTA ANA PUBLIC FINANCING AUTHORITY
WATER REVENUE BONDS, SERIES 2024

BOND PURCHASE AGREEMENT
_____, 2024
Santa Ana Public Financing Authority
c/o City of Santa Ana
20 Civic Center Plaza
Santa Ana, California 92701
Attention: Executive Director
City of Santa Ana
20 Civic Center Plaza
Santa Ana, California 92701
Attention: Acting City Manager
Ladies and Gentlemen:

Samuel A. Ramirez & Co., Inc. (the “Underwriter”), acting on behalf of itself and not as an agent or fiduciary for you, offers to enter into this Bond Purchase Agreement (this “Purchase Contract”) with the Santa Ana Public Financing Authority (the “Authority”) and the City of Santa Ana (the “City”) with regard to the Bonds described below, which Purchase Contract, upon the acceptance hereof by the Authority and the City, will be binding upon the Authority, the City and the Underwriter. This offer is made subject to the written acceptance of this Purchase Contract by the Authority and the City and the delivery of such acceptance to the Underwriter at or prior to 11:59 p.m., Pacific time, on the date hereof, and, if it is not so accepted, such offer may be withdrawn by the Underwriter upon written notice to the Authority and the City by the Underwriter at any time before its acceptance.

Each of the Authority and the City acknowledges and agrees that (i) the purchase and sale of the Bonds (as defined below) pursuant to this Purchase Contract is an arm’s-length commercial transaction between the Authority, the City and the Underwriter, (ii) in connection therewith and with the discussions, undertakings, and procedures leading up to the consummation of such transaction, the Underwriter is acting solely as a principal and not as an agent or fiduciary of the Authority or the City, (iii) the Underwriter has not assumed an advisory or a fiduciary responsibility in favor of the Authority or the City with respect to the offering contemplated hereby or the discussions, undertakings, and procedures leading thereto (irrespective of whether the Underwriter has provided other services or is currently providing other services to the Authority or the City on other matters) and the Underwriter has no obligation to the Authority or the City with respect to the offering contemplated hereby except the obligations expressly set forth in this Purchase Contract, and (iv) the Authority and the City have consulted their own legal, financial, and other advisors to the extent they have deemed appropriate.

EXHIBIT 5
City Council 38 – 66 6/4/2024
2 Error! Unknown document property name.

1. Upon the terms and conditions and upon the basis of the representations, warranties, and agreements hereinafter set forth, the Underwriter hereby agrees to purchase from the Authority for reoffering to the public, and the Authority hereby agrees to sell to the Underwriter for such purpose, all (but not less than all) of the $__________ aggregate principal amount of the Santa Ana Public Financing Authority Water Revenue Bonds, Series 2024 (the “Bonds”). The purchase price of the Bonds shall be $__________ (representing the par amount of the Bonds, [plus/less] [net] original issue [premium/discount] of $__________, and less an Underwriter’s discount of $__________). The Preliminary Official Statement with respect to the Bonds, dated _____, 2024 (the “Preliminary Official Statement”), as amended to conform to the terms of this Purchase Contract, and dated the date hereof, and with such changes and amendments as are mutually agreed to by the Authority, the City and the Underwriter, including the cover page, the appendices, and all information incorporated therein by reference, is herein collectively referred to as the “Official Statement.” The Authority and the City represent that they have deemed the Preliminary Official Statement to be final as of its date, except for either revision or addition of the offering price(s), yield(s) to maturity, selling compensation, aggregate denominational amount and maturity value, denominational amount and maturity value per maturity, delivery date, rating(s), and other terms of the Bonds that depend upon the foregoing as provided in and pursuant to Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended (the “Rule”), by delivering a certificate to the Underwriter substantially in the form of Exhibit B attached hereto.

2. The Bonds shall mature on the dates and in the amounts, and will bear interest at the rates, set forth in Exhibit A attached hereto and as further described in the Official Statement. The Bonds shall be issued under and pursuant to the Indenture of Trust, dated as of _____ 1, 2024 (the “Indenture”), between the Authority, U.S. Bank Trust Company, National Association (“U.S.

Bank”), as trustee. Capitalized terms used herein without definition shall have the meanings given to such terms in the Indenture.

The Bonds are being issued to provide funds (i) to provide funds to refund in full the Authority’s Water Revenue Refunding Bonds, Series 2014 (the “Refunded Bonds”), (ii) to finance a portion of the design acquisition and construction of certain improvements to the Water System of the City, and (iii) to pay certain costs of issuance of the Bonds.

3. Public Offering and Establishment of Issue Price.
(a) The Underwriter agrees to make a bona fide public offering of the Bonds at the initial public offering price or prices set forth on the inside cover page of the Official Statement and in Exhibit A attached hereto and subject to Sections 3(c) and 3(d) hereof, the Underwriter reserves the right to change such initial public offering prices as the Underwriter deems necessary or desirable, in its sole discretion, in connection with the marketing of the Bonds, and to sell the Bonds to certain dealers (including dealers depositing the Bonds into investment trusts) and others at prices lower than the initial offering prices set forth in the Official Statement. A “bona fide public offering” shall include an offering to institutional investors or registered investment companies, regardless of the number of such investors to which the Bonds are sold. (b) The Underwriter agrees to assist the Authority in establishing the issue price of the Bonds and shall execute and deliver to the Authority at Closing (defined below) an “issue price” or similar certificate, together with copies of supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit C, with such modifications as City Council 38 – 67 6/4/2024
3 Error! Unknown document property name.
may be appropriate or necessary, in the reasonable judgment of the Underwriter, the Authority and Bond Counsel (as defined herein) to accurately reflect, as applicable, the sales price or prices or the initial offering price or prices to the public of the Bonds. All actions to be taken by the Authority under this section to establish the issue price of the Bonds may be taken on behalf of the Authority by the Authority’s municipal advisor, Urban Futures Incorporated (the “Municipal Advisor”) and any notice or report to be provided to the Authority may be provided to the Municipal Advisor. (c) Except as otherwise set forth in Exhibit A attached hereto, the Authority will treat the first price at which 10% of each maturity of the Bonds (the “10% test”), identified under the column “10% Test Used” in Exhibit A, is sold to the public as the issue price of that maturity. At or promptly after the execution of this Purchase Contract, the Underwriter shall report to the Authority the price or prices at which it has sold to the public each maturity of Bonds. If at that time the 10% test has not been satisfied as to any maturity of the Bonds, the Underwriter agrees to promptly report to the Authority the prices at which it sells the unsold Bonds of that maturity to the public. That reporting obligation shall continue, whether or not the Closing Date has occurred, until either (i) the Underwriter has sold all Bonds of that maturity or (ii) the 10% test has been satisfied as to the Bonds of that maturity, provided that, the Underwriter’s reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Authority or Bond Counsel. For purposes of this section, if Bonds mature on the same date but have different interest rates, each separate CUSIP number within that maturity will be treated as a separate maturity of the Bonds. (d) The Underwriter confirms that it has offered the Bonds to the public on or before the date of this Purchase Contract at the offering price or prices (the “initial offering price”), or at the corresponding yield or yields, set forth in Exhibit A attached hereto, except as otherwise set forth therein. Exhibit A also sets forth, identified under the column “Hold the Offering Price Rule Used,” as of the date of this Purchase Contract, the maturities, if any, of the Bonds for which the 10% test has not been satisfied and for which the Authority and the Underwriter agree that the restrictions set forth in the next sentence shall apply, which will allow the Authority to treat the initial offering price to the public of each such maturity as of the sale date as the issue price of that maturity (the “hold-the-offering-price rule”). So long as the hold-the-offering-price rule remains applicable to any maturity of the Bonds, the Underwriter will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following. (1) the close of the fifth (5th) business day after the sale date; or (2) the date on which the Underwriter has sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.

The Underwriter will advise the Authority promptly after the close of the fifth (5th) business day after the sale date whether it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public. (e) The Underwriter confirms that:
(1) any selling group agreement and any third-party distribution agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer who is a member of City Council 38 – 68 6/4/2024
4 Error! Unknown document property name.
the selling group and each broker-dealer that is a party to such third-party distribution agreement, as applicable:
(i) (1) to report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter, and (2) to comply with the hold-the-offeringprice rule, if applicable, if and for so long as directed by the Underwriter, (ii) to promptly notify the Underwriter of any sales of Bonds that, to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below), and
(iii) to acknowledge that, unless otherwise advised by the dealer or broker-dealer, the Underwriter shall assume that each order submitted by the dealer or broker-dealer is a sale to the public.
(2) any selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer that is a party to a third-party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such third-party distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter or the dealer that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter or the dealer, and (B) comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter or the dealer and as set forth in the related pricing wires. (f) The Authority acknowledges that, in making the representations set forth in this section, the Underwriter will rely on (1) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (2) in the event that a third-party distribution agreement was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in the third-party distribution agreement and the related pricing wires. The Authority further acknowledges that the Underwriter shall not be liable for the failure of any dealer who is a member of a selling group, or of any broker-dealer that is a party to a third-party distribution agreement, to comply with its corresponding agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offeringprice rule, if applicable to the Bonds.

City Council 38 – 69 6/4/2024
5 Error! Unknown document property name.
(g) The Underwriter acknowledges that sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute sales to the public for purposes of this section.

Further, for purposes of this section:
(1) “public” means any person other than an underwriter or a related party;
(2) “underwriter” means (A) any person that agrees pursuant to a written contract with the Authority (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a third-party distribution agreement participating in the initial sale of the Bonds to the public);
(3) a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (i) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other); and
(4) “sale date” means the date of execution of this Purchase Contract by the Authority and the Underwriter.

4. The Authority and the City hereby authorize the use by the Underwriter of (i) the Indenture, (ii) the Master Installment Purchase Agreement, dated as of _____ 1, 2024 (the “Master Installment Purchase Agreement”, between the City and the Authority, as supplemented by a First Supplement to Master Installment Purchase Agreement, dated as of _____ 1, 2024 (the “First Supplement” and, together with the Master Installment Purchase Agreement, the “Installment Purchase Agreement”) each by and between the Authority and the City, (iii) the Continuing Disclosure Agreement, dated as of _____ 1, 2024 (the “Continuing Disclosure Agreement”) between the City and Urban Futures Incorporated, as dissemination Agent, and (iv) the Official Statement, and any supplements or amendments thereto, and the information contained in each of such documents, in connection with the public offering and sale of the Bonds. The Authority and the City consent to the use by the Underwriter prior to the date hereof of the Preliminary Official Statement in connection with the public offering of the Bonds.

The Authority will deliver to the Underwriter, within seven (7) business days after the date of this Purchase Contract and in sufficient time to accompany any confirmation requesting payment from any customers of the Underwriter, copies of the Official Statement in final form (including all documents incorporated by reference therein) and any amendment or supplement thereto in such quantities as the Underwriter may reasonably request in order to comply with the obligations of the Underwriter pursuant to the Rule and the rules of the Municipal Securities Rulemaking Board. As City Council 38 – 70 6/4/2024
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soon as practicable following receipt thereof from the Authority, the Underwriter shall deliver the Official Statement to the Municipal Securities Rulemaking Board.

5. At 8:00 a.m., Pacific time, on _____, 2024, or at such other time or on such other business day as shall have been mutually agreed upon by the Authority and the Underwriter (the “Closing Date”), the Authority will cause U.S. Bank to authenticate and deliver to the Underwriter at the office of The Depository Trust Company (“DTC”) in New York, New York, or at such other place as the Authority and the Underwriter may mutually agree upon, the Bonds in fully-registered book-entry form, duly executed and registered in the name of Cede & Co., as nominee of DTC, and, subject to the terms and conditions hereof, the Underwriter will accept such delivery and pay the purchase price of the Bonds by wire transfer payable in immediately available funds to or upon the order of the City at such place in Los Angeles, California, or New York, New York, as shall have been mutually agreed upon by the Authority and the Underwriter. Such delivery of and payment for the Bonds is referred to herein as the “Closing.” The Bonds shall be made available for inspection by DTC at least one business day before the Closing.

6. The Authority represents, warrants, and covenants to the Underwriter that:
(a) The Authority is a joint powers authority under Article 1 of Chapter 5 of Division 7 of Title 1 of the California Government Code duly organized and validly existing under and by virtue of the Constitution and the laws of the State of California (the “State”). (b) The Authority has the legal right and power to issue and deliver the Bonds and to execute and deliver, and to perform its obligations under, the Indenture, the Installment Purchase Agreement, the Escrow Deposit and Trust Agreement, dated as of _____ 1, 2024 (the “Escrow Agreement”) by and among the Authority, the City and U.S. Bank, as escrow agent, and this Purchase Contract (collectively, the “Authority Documents”). The Authority has duly authorized the issuance and delivery of the Bonds and the execution and delivery of, and performance of its obligations under, the Authority Documents and, as of the date hereof, such authorizations are in full force and effect and have not been amended, modified, or rescinded. When executed and delivered by the respective parties thereto, the Authority Documents will constitute legal, valid, and binding obligations of the Authority in accordance with their respective terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, or similar laws, the application of equitable principles relating to or affecting creditors’ rights generally, the exercise of judicial discretion in appropriate cases, and the limitations on legal remedies against joint powers authorities in the State. The Authority has complied, and will at the Closing be in compliance in all respects, with its obligations under the Authority Documents. (c) The Bonds will be issued in accordance with the Indenture and will conform in all material respects to the descriptions thereof contained in the Official Statement. The Indenture creates a valid pledge of, first lien upon, and security interest in, the Revenues. (d) The information in the Official Statement (excluding any information with respect to DTC and the book-entry only system) is true and correct in all material respects, and the information in the Official Statement does not contain any misstatement of any material fact and does not omit any statement necessary to make the statements, in the light of the circumstances in which such statements were made, not misleading.

City Council 38 – 71 6/4/2024
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(e) The Authority covenants with the Underwriter that for twenty-five days after the Closing Date (the “Delivery Period”), if any event occurs that might or would cause the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, the Authority shall notify the Underwriter thereof, and if in the opinion of the Underwriter such event requires the preparation and publication of a supplement or amendment to the Official Statement, the Authority will cooperate with the Underwriter and the City in the preparation of an amendment or supplement to the Official Statement, at the expense of the Authority and the City, in a form and in a manner approved by the Underwriter.
(f) The Authority will advise the Underwriter promptly of any proposal to amend or supplement the Official Statement and will not effect or consent to any such amendment or supplement without the consent of the Underwriter. The Authority will advise the Underwriter promptly of the institution of any proceedings known to it by any governmental agency prohibiting or otherwise affecting the use of the Official Statement in connection with the offering, sale, or distribution of the Bonds.
(g) If the Official Statement is supplemented or amended, the Official Statement, as so supplemented or amended, as of the date of such supplement or amendment, will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. (h) The Authority is not in breach of or in default under any applicable constitutional provision, law, or administrative rule or regulation of the State or the United States, or any applicable judgment, decree, consent, or other agreement to which the Authority is a party, and no event has occurred and is continuing that, with the passage of time or the giving of notice, or both, would constitute such a default or event of default under any of the foregoing. (i) The authorization, execution, and delivery by the Authority of the Authority Documents, and compliance by the Authority with the provisions thereof, do not and will not conflict with or constitute a breach of or default by the Authority under any applicable constitutional provision, law, or administrative rule or regulation of the State or the United States, or any applicable judgment, decree, consent, or other agreement to which it is bound or by which its properties may be affected.
(j) No authorization, consent, or approval of, or filing or registration with, any Governmental Authority (as defined below) or court is, or under existing requirements of law will be, necessary for the valid execution and delivery of, or performance by the Authority of its obligations under, the Authority Documents, other than any authorization, consent, approval, filing, or registration as may be required under the Blue Sky or securities laws of any state in connection with the offering, sale, or issuance of the Bonds. All authorizations, consents, or approvals of, or filings or registrations with, any Governmental Authority or court necessary for the valid issuance of, and performance by the Authority of its obligations under, the Bonds will have been duly obtained or made prior to the issuance of the Bonds (and disclosed to the Underwriter). As used herein, the term “Governmental Authority” refers to any legislative body or governmental official, department, commission, board, bureau, agency, instrumentality, body, or public benefit corporation.

City Council 38 – 72 6/4/2024
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(k) The Authority shall furnish such information, execute such instruments, and take such other action in cooperation with the Underwriter as the Underwriter may reasonably request in order (i) to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and other jurisdictions of the United States as the Underwriter may designate and (ii) to determine the eligibility of the Bonds for investment under the laws of such states and other jurisdictions, and shall use its best efforts to continue such qualifications in effect so long as required for the distribution of the Bonds; provided, however, that the Authority shall not be required to execute a general consent to service of process or qualify to do business in connection with any such qualification or determination in any jurisdiction. (l) There is no action, suit, proceeding, inquiry, or investigation, at law or in equity, before or by any court, regulatory agency, or public board or body, pending or, to the best knowledge of the Authority, threatened (i) in any way questioning the existence of the Authority or the titles of the officers of the Authority to their respective offices; (ii) affecting, contesting, or seeking to prohibit, restrain, or enjoin the issuance of the Bonds or the execution or delivery of any of the Authority Documents, or the payment or collection of any amounts pledged or to be pledged to pay the principal of and interest on the Bonds, or in any way contesting or affecting the validity of the Bonds or the Authority Documents or the consummation of the transactions contemplated thereby or any proceeding of the Authority taken with respect to any of the foregoing, or contesting the exclusion of the interest on the Bonds from taxation or contesting the powers of the Authority and its authority to pledge the Revenues; (iii) that may result in any material adverse change relating to the Authority that will materially adversely affect the Authority’s ability to apply Revenues to pay the Bonds when due; or (iv) contesting the completeness or accuracy of the Preliminary Official Statement or the Official Statement or any supplement or amendment thereto or asserting that the Preliminary Official Statement or the Official Statement contained any untrue statement of a material fact or omitted to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. (m) Other than in the ordinary course of its business or as contemplated by the Official Statement, between the date of this Purchase Contract and the Closing Date the Authority will not, without the prior written consent of the Underwriter, offer or issue any certificates, bonds, notes, or other obligations for borrowed money or incur any material liabilities, direct or contingent, payable from or secured by a pledge of the Revenues.
(n) Any certificate signed by any official or other representative of the Authority and delivered to the Underwriter pursuant to this Purchase Contract shall be deemed a representation and warranty by the Authority to the Underwriter as to the truth of the statements therein made.

7. The City represents, warrants, and covenants to the Underwriter that:
(a) The City is a charter city and municipal corporation organized and existing under the Constitution, the laws of the State and its charter. (b) The City has the legal right and power to execute and deliver, and to perform its obligations under, the Indenture, the Installment Purchase Agreement, the Escrow Agreement, the Continuing Disclosure Agreement and this Purchase Contract (together, the “City Documents”).

The City has duly authorized the execution and delivery of, and performance of its obligations under, the City Documents and, as of the date hereof, such authorizations are in full force and effect and have not been amended, modified, or rescinded. When executed and delivered by the respective City Council 38 – 73 6/4/2024
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parties thereto, the City Documents will constitute legal, valid, and binding obligations of the City in accordance with their respective terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, or similar laws, the application of equitable principles relating to or affecting creditors’ rights generally, the exercise of judicial discretion in appropriate cases, and the limitations on legal remedies against cities in the State. The City has complied, and will at the Closing be in compliance in all respects, with its obligations under the City Documents. (c) The Bonds will be issued in accordance with the Indenture and will conform in all material respects to the descriptions thereof contained in the Official Statement. The Bonds will be paid from Installment Payments (as such term is defined in the Indenture), which payments have been duly and validly authorized pursuant to applicable law. (d) The Installment Purchase Agreement creates a valid pledge of, first lien upon, Net System Revenues (as such term is defined in the Installment Purchase Agreement). (e) The information in the Official Statement (excluding any information with respect to DTC and the book-entry only system) is true and correct in all material respects, and the information in the Official Statement does not contain any misstatement of any material fact and does not omit any statement necessary to make the statements, in the light of the circumstances in which such statements were made, not misleading.
(f) To assist the Underwriter in complying with the Rule, the City will undertake, pursuant to the Continuing Disclosure Agreement, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Preliminary Official Statement and will also be set forth in the Official Statement. The Official Statement describes the incidences during the last five years in which the City has failed to comply with previous undertakings to provide annual continuing disclosure reports and notices of material events. (g) The City covenants with the Underwriter that during the Delivery Period, if any event occurs that might or would cause the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, the City shall notify the Underwriter thereof, and if in the opinion of the Underwriter such event requires the preparation and publication of a supplement or amendment to the Official Statement, the City will cooperate with the Authority and the Underwriter in the preparation of an amendment or supplement to the Official Statement, at the expense of the City and the Authority, in a form and in a manner approved by the Underwriter.
(h) The City will advise the Underwriter promptly of any proposal to amend or supplement the Official Statement and will not effect or consent to any such amendment or supplement without the consent of the Underwriter. The City will advise the Underwriter promptly of the institution of any proceedings known to it by any governmental agency prohibiting or otherwise affecting the use of the Official Statement in connection with the offering, sale, or distribution of the Bonds.
(i) If the Official Statement is supplemented or amended, the Official Statement, as so supplemented or amended, as of the date of such supplement or amendment, will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

City Council 38 – 74 6/4/2024
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(j) The City is not in breach of or in default under any applicable constitutional provision, law, or administrative rule or regulation of the State or the United States, or any applicable judgment, decree, consent, or other agreement to which the City is a party, and no event has occurred and is continuing that, with the passage of time or the giving of notice, or both, would constitute such a default or event of default under any of the foregoing. (k) The authorization, execution, and delivery by the City of the City Documents, and compliance by the City with the provisions thereof, do not and will not conflict with or constitute a breach of or default by the City under any applicable constitutional provision, law, or administrative rule or regulation of the State or the United States, or any applicable judgment, decree, consent, or other agreement to which it is bound or by which its properties may be affected. (l) No authorization, consent, or approval of, or filing or registration with, any Governmental Authority (as defined above) or court is, or under existing requirements of law will be, necessary for the valid execution and delivery of, or performance by the City of its obligations under, the City Documents, other than any authorization, consent, approval, filing, or registration as may be required under the Blue Sky or securities laws of any state in connection with the offering, sale, or issuance of the Bonds. All authorizations, consents, or approvals of, or filings or registrations with, any Governmental Authority or court necessary for the valid issuance of, and performance by the City of its obligations under, the Bonds will have been duly obtained or made prior to the issuance of the Bonds (and disclosed to the Underwriter).
(m) The City shall furnish such information, execute such instruments, and take such other action in cooperation with the Underwriter as the Underwriter may reasonably request in order (i) to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and other jurisdictions of the United States as the Underwriter may designate and (ii) to determine the eligibility of the Bonds for investment under the laws of such states and other jurisdictions, and shall use its best efforts to continue such qualifications in effect so long as required for the distribution of the Bonds; provided, however, that the City shall not be required to execute a general consent to service of process or qualify to do business in connection with any such qualification or determination in any jurisdiction. (n) There is no action, suit, proceeding, inquiry, or investigation, at law or in equity, before or by any court, regulatory agency, or public board or body, pending or, to the best knowledge of the City, threatened (i) in any way questioning the existence of the City or the titles of the officers of the City to their respective offices; (ii) affecting, contesting, or seeking to prohibit, restrain, or enjoin the issuance of the Bonds or the execution or delivery of any of the City Documents, or the payment or collection of any amounts pledged or to be pledged to pay the principal of and interest on the Bonds, or in any way contesting or affecting the validity of the Bonds or the City Documents or the consummation of the transactions contemplated thereby or any proceeding of the City taken with respect to any of the foregoing, or contesting the exclusion of the interest on the Bonds from taxation or under which a determination adverse to the City would have a material adverse effect upon the financial condition of the Water System (as such term is defined in the Installment Purchase Agreement), or which, in any manner, questions or affects the right or ability of the City to use the Net System Revenues for the Installment Payments or in any manner affects the right or ability of the City to collect or pledge the Net System Revenues; (iii) which, except as described in the Official Statement, may result in any material adverse change to the financial condition of the Water System or to the sufficiency of Net System Revenues to pay the Installment Payments when due; or (iv) contesting the completeness or accuracy of the Preliminary City Council 38 – 75 6/4/2024
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Official Statement or the Official Statement or any supplement or amendment thereto or asserting that the Preliminary Official Statement or the Official Statement contained any untrue statement of a material fact or omitted to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. (o) Other than in the ordinary course of its business or as contemplated by the Official Statement, between the date of this Purchase Contract and the Closing Date the City will not, without the prior written consent of the Underwriter, offer or issue any certificates, bonds, notes, or other obligations for borrowed money or incur any material liabilities, direct or contingent, payable from or secured by a lien on the Net System Revenues superior to or equal to the lien of the Installment Payments on the Net System Revenues.
(p) The financial statements of, and other financial information regarding, the City contained in the Official Statement fairly present the financial position and results of the operations of the City as of the dates and for the periods therein set forth, and, to the best of the City’s knowledge, (i) the audited financial statements have been prepared in accordance with generally accepted accounting principles consistently applied, (ii) the unaudited financial statements have been prepared on a basis substantially consistent with the audited financial statements included in the Official Statement and reflect all adjustments necessary to that effect, and (iii) the other financial information has been determined on a basis substantially consistent with that of the City’s audited financial statements included in the Official Statement. (q) Except as otherwise described in the Official Statement, there shall not have been any material adverse changes in the financial condition of the Water System since June 30, 2023.
(r) Any certificate signed by any official or other representative of the City and delivered to the Underwriter pursuant to this Purchase Contract shall be deemed a representation and warranty by the City to the Underwriter as to the truth of the statements therein made.

8. The Underwriter has entered into this Purchase Contract in reliance upon the representations, warranties, and covenants of the Authority and the City contained herein and in the Authority Documents and City Documents to which each of the Authority or the City, as applicable, is a party, and the performance by the Authority and the City of their respective obligations hereunder, both as of the date hereof and as of the Closing Date. The Underwriter’s obligations under this Purchase Contract are and shall be subject to the following further conditions:
(a) The representations and warranties of the Authority and the City contained herein shall be true, complete, and correct in all material respects on the date hereof and at and as of the Closing, as if made at and as of the Closing, and the statements made in all certificates and other documents delivered to the Underwriter at the Closing pursuant hereto shall be true, complete, and correct in all material respects at the Closing; the Authority and the City shall be in compliance with each of the agreements made by it in this Purchase Contract (unless such agreements are waived by the Underwriter) and there shall not have occurred an adverse change in the financial position of the City or the Water System that materially adversely affects the ability of the City to make the Installment Payments when due or otherwise perform any of its obligations under the City Documents, and there shall not have occurred an adverse change in the financial position of the Authority that materially adversely affects the ability of the Authority to make payments of principal City Council 38 – 76 6/4/2024
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of and interest on the Bonds when due or otherwise perform any of its obligations under the Authority Documents.
(b) At the time of the Closing, the Authority Documents and the City Documents shall be in full force and effect, and shall not have been amended, modified, or supplemented (except as may be agreed to in writing by the Underwriter); all actions that, in the opinion of Best Best & Krieger LLP, Irvine, California, Bond Counsel (“Bond Counsel”), shall be necessary in connection with the transactions contemplated hereby shall have been duly taken and shall be in full force and effect; the Authority shall perform or shall have performed its obligations required under or specified in the Authority Documents to be performed at or prior to the Closing; and the City shall perform or shall have performed its obligations required under or specified in the City Documents to be performed at or prior to the Closing.
(c) At the time of the Closing, the Official Statement (as amended and supplemented) shall be true and correct in all material respects, and shall not omit any statement or information necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(d) Except as disclosed in the Official Statement or in a schedule delivered to the Underwriter at the Closing, no decision, ruling, or finding shall have been entered by any court or Governmental Authority since the date of this Purchase Contract (and not reversed on appeal or otherwise set aside) that has any of the effects described in Section 8(f) hereof. (e) (i) No default by the Authority or the City shall have occurred and be continuing in the payment of the principal of or premium, if any, or interest on any bond, note, or other evidence of indebtedness issued by the Authority or the City, and (ii) no bankruptcy, insolvency, or other similar proceeding in respect of the Authority or the City shall be pending or, to the knowledge of the Authority or the City, contemplated. (f) The Underwriter may terminate this Purchase Contract by written notification to the Authority and the City if at any time after the date hereof and prior to the Closing:
(1) legislation shall have been enacted by the United States or the State or shall have been reported out of committee or be pending in committee, or a decision shall have been rendered by a court of the United States or the Tax Court of the United States, or a ruling shall have been made or a regulation, proposed regulation, or a temporary regulation shall have been published in the Federal Register or any other release or announcement shall have been made by the Treasury Department of the United States or the Internal Revenue Service, with respect to Federal or State taxation upon revenues or other income or payments of the general character to be derived by the City or upon interest received on obligations of the general character of the Bonds, which, in the reasonable opinion of the Underwriter (after consultation with, and receipt of advice from, the City), materially adversely affects the market for the Bonds; or
(2) in the reasonable opinion of the Underwriter (after consultation with, and receipt of advice from, the City or its municipal advisor), any of the following events materially adversely affects the market for the Bonds: (a) the United States shall have become engaged in hostilities that have resulted in a declaration of war or City Council 38 – 77 6/4/2024
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a national emergency or the President of the United States of America shall have committed the armed forces of the United States of America to combat so as to adversely affect the financial markets in the United States of America, (b) any other calamity or crisis in the financial markets of the United States or elsewhere, (c) the sovereign debt rating of the United States is downgraded by any major credit rating agency or a payment default occurs on United States Treasury obligations, or (d) a default with respect to the debt obligations of, or the institution of proceedings under any federal bankruptcy laws by or against, any state of the United States or any city, county, or other political subdivision located in the United States having a population of over 500,000; or
(3) there shall have occurred a general suspension of trading on the New York Stock Exchange or other major exchange, or minimum or maximum prices for trading shall have been fixed and be in force, or maximum ranges for prices for securities shall have been required and be in force on any such exchange, whether by virtue of determination by that exchange or by order of the Securities and Exchange Commission or any other Governmental Authority having jurisdiction, or a general banking moratorium shall have been declared by Federal, California, or New York authorities having jurisdiction and being in force; or
(4) there shall have occurred an adverse change in the financial position, results of operations, or financial condition of the City that, in the reasonable opinion of the Underwriter (after consultation with, and receipt of advice from, the City), materially adversely affects the market for the Bonds; or (5) any legislation, ordinance, rule, or regulation shall be introduced in, or be enacted by, any governmental body, department, or agency of the State, or a decision by any court of competent jurisdiction within the State or any court of the United States shall be rendered that, in the reasonable opinion of the Underwriter, materially adversely affects the market price of the Bonds; or (6) legislation shall be enacted by the Congress of the United States, or a decision by a court of the United States shall be rendered, or a stop order, ruling, regulation, or official statement by, or on behalf of, the Securities and Exchange Commission or any other governmental agency having jurisdiction of the subject matter shall be issued or made to the effect that the issuance, offering, or sale of obligations of the general character of the Bonds, or the issuance, offering, or sale of the Bonds, including all underlying obligations, as contemplated hereby or by the Official Statement, is in violation or would be in violation of, or that obligations of the general character of the Bonds, or the Bonds, are not exempt from registration under, any provision of the federal securities laws, including the Securities Act of 1933, as amended and as then in effect, or that the Indenture needs to be qualified under the Trust Indenture Act of 1939, as amended and as then in effect; or (7) additional material restrictions not in force as of the date hereof shall have been imposed upon trading in securities generally by any governmental authority or by any national securities exchange, which restrictions materially adversely affect the ability of Underwriter to trade obligations of the general character of the Bonds; or
City Council 38 – 78 6/4/2024
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(8) there shall have occurred or any notice shall have been given of any intended review, downgrading, suspension, withdrawal, or negative change in credit watch status by any national rating service to any of the Authority’s or the City’s obligations secured in a like manner, which, in the Underwriter’s reasonable opinion, materially adversely affects the marketability or market price of the Bonds; or (9) the commencement of any action, suit, or proceeding described in Section 6(l) or 7(n) that, in the judgment of the Underwriter, materially adversely affects the market price of the Bonds; or
(10) any event occurring, or information becoming known that, in the reasonable judgment of the Underwriter, makes any statement or information contained in the Official Statement, as of its date, untrue in any material adverse respect, or has the effect that the Official Statement, as of its date, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(g) At or prior to the Closing, the Underwriter shall receive the following documents:
(1) the opinion of Bond Counsel, dated the Closing Date, in substantially the form included in the Official Statement as Appendix C, addressed to the Authority (and accompanied by reliance letters to the Underwriter, the City and U.S.

Bank);
(2) a supplemental opinion of Bond Counsel, in form and substance satisfactory to the Underwriter, dated the Closing Date, addressed to the Underwriter, to the effect that:
(i) the Purchase Contract has been duly executed and delivered by the Authority and the City and (assuming due authorization, execution and delivery by and enforceability against the Underwriter) is valid and binding upon the City, subject to laws relating to bankruptcy, insolvency, reorganization or creditors’ rights generally and to the application of equitable principles; (ii) the Bonds are not subject to registration requirements of the Securities Act of 1933, as amended, and the Indenture is exempt from qualification pursuant to the Trust Indenture Act of 1939, as amended; and (iii) the statements contained in the Official Statement under the captions “INTRODUCTION,” “THE FINANCING PLAN,” “THE BONDS,” “SECURITY FOR THE BONDS,” “TAX MATTERS,” “APPENDIX B—

SUMMARY OF CERTAIN DEFINED TERMS AND PRINCIPAL LEGAL
DOCUMENTS” and “APPENDIX C—FORM OF FINAL OPINION OF BOND COUNSEL,” insofar as such statements expressly summarize certain provisions of the Indenture, the Installment Purchase Agreement, the Bonds, and the opinion of Bond Counsel concerning certain federal tax matters relating to the Bonds, are accurate in all material respects; and
City Council 38 – 79 6/4/2024
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(3) an opinion of the City Attorney of the City, in form and substance satisfactory to the Underwriter, dated the Closing Date, addressed to the Authority and the Underwriter, to the effect that:
(i) the City is a charter city and municipal corporation organized and existing under the Constitution, the laws of the State and its charter; (ii) the City has full legal power and lawful authority to enter into the City Documents and to perform its obligations thereunder; (iii) the resolution of the City approving and authorizing the execution and delivery of the City Documents (the “City Resolution”) was duly adopted at a meeting of the City Council of the City that was called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout, and the City Resolution is in full force and effect and has not been modified, amended, or rescinded as of the Closing Date; (iv) the City Documents have been duly authorized, executed, and delivered by the City and, assuming due authorization, execution, and delivery by the other parties thereto, such documents constitute the legal, valid, and binding agreements of the City enforceable in accordance with their terms, subject to laws relating to bankruptcy, insolvency, or other laws affecting the enforcement of creditors’ rights generally, the application of equitable principles if equitable remedies are sought, the exercise of judicial discretion in appropriate cases, and the limitations on legal remedies against cities in the State; (v) the execution and delivery by the City of the City Documents, and compliance by the City with the provisions thereof, under the circumstances contemplated thereby, do not and will not in any material respect conflict with or constitute a breach of or default under any law, administrative regulation, court decree, resolution, or agreement to which the City is subject to or by which it is bound;
(vi) the Official Statement (excluding therefrom financial statements and other statistical data included in the Official Statement, and any information with respect to DTC and the book-entry only system, as to which no view need be expressed) does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (vii) except as otherwise disclosed in the Official Statement, there is no action, suit, proceeding, inquiry, or investigation, at law or in equity, before or by any court, regulatory agency, or public board or body, pending for which the City has been served or, to the best knowledge of such counsel, threatened (a) in any way questioning the existence of the City or the titles of the officers of the City to their respective offices; (b) affecting, contesting, or seeking to prohibit, restrain, or enjoin the issuance of the Bonds or the execution or delivery of any of the City Documents, or the payment or collection of any amounts pledged or to be pledged to pay Installment Payments or the principal of and interest on the Bonds, or in any way City Council 38 – 80 6/4/2024
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contesting or affecting the validity of the Bonds or the City Documents or the consummation of the transactions contemplated thereby or any proceeding of the City taken with respect to any of the foregoing, or contesting the exclusion of the interest on the Bonds from taxation or under which a determination adverse to the City would have a material adverse effect upon the financial condition of the Water System, or which, in any manner, questions or affects the right or ability of the City to use the Net System Revenues for the Installment Payments or in any manner affects the right or ability of the City to collect or pledge the Net System Revenues; (c) that may result in any material adverse change relating to the City that will materially adversely affect the City’s ability to perform its obligations under the City Documents; or (d) contesting the completeness or accuracy of the Preliminary Official Statement or the Official Statement or any supplement or amendment thereto or asserting that the Preliminary Official Statement or the Official Statement contained any untrue statement of a material fact or omitted to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and
(viii) no authorization, approval, consent, or other order of the State or any other governmental authority or agency within the State having jurisdiction over the City is required for the valid authorization, execution, and delivery by the City of the City Documents;
(4) an opinion of the City Attorney of the City, serving as General Counsel to the Authority, in form and substance satisfactory to the Underwriter, dated the Closing Date, addressed to the City and the Underwriter, to the effect that:
(i) the Authority is a joint powers authority under Article 1 of Chapter 5 of Division 7 of Title 1 of the California Government Code duly organized and validly existing under and by virtue of the Constitution and the laws of the State; (ii) the Authority has full legal power and lawful authority to enter into the Authority Documents and to perform its obligations thereunder; (iii) the resolution of the Authority approving and authorizing the execution and delivery of the Authority Documents and approving the Official Statement (the “Authority Resolution”) was duly adopted at a regular meeting of the governing board of the Authority that was called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout, and the Authority Resolution is in full force and effect and has not been modified, amended, or rescinded as of the Closing Date; (iv) the Authority Documents have been duly authorized, executed, and delivered by the Authority and, assuming due authorization, execution, and delivery by the other parties thereto, such documents constitute the legal, valid, and binding agreements of the Authority enforceable in accordance with their terms, subject to laws relating to bankruptcy, insolvency, or other laws affecting the enforcement of creditors’ rights generally, the application of equitable principles if equitable remedies are sought, the exercise of judicial discretion in appropriate cases, and the limitations on legal remedies against joint powers authorities in the State; City Council 38 – 81 6/4/2024
17 Error! Unknown document property name.
(v) the execution and delivery by the Authority of the Authority Documents, and compliance by the Authority with the provisions thereof, under the circumstances contemplated thereby, do not and will not in any material respect conflict with or constitute a breach of or default under any law, administrative regulation, court decree, resolution, or agreement to which the Authority is subject to or by which it is bound;
(vi) except as otherwise disclosed in the Official Statement, there is no action, suit, proceeding, inquiry, or investigation at law or in equity, before or by any court, regulatory agency, or public board or body, pending for which the Authority has been served or, to the best knowledge of such counsel, threatened (a) in any way questioning the existence of the Authority or the titles of the officers of the Authority to their respective offices, (b) affecting, contesting, or seeking to prohibit, restrain, or enjoin the issuance of the Bonds or the execution or delivery of any of the Authority Documents, or the payment or collection of any amounts pledged or to be pledged to pay the Installment Payments or the principal of and interest on the Bonds, or in any way contesting or affecting the validity of the Bonds or the Authority Documents or the consummation of the transactions contemplated thereby or any proceeding of the Authority taken with respect to any of the foregoing, or contesting the exclusion of the interest on the Bonds from taxation or contesting the powers of the Authority and its authority to make the pledges set forth in the Indenture, (c) that may result in any material adverse change relating to the Authority that will materially adversely affect the Authority’s ability to perform its obligations under the Authority Documents, or (d) contesting the completeness or accuracy of the Preliminary Official Statement or the Official Statement or any supplement or amendment thereto or asserting that the Preliminary Official Statement or the Official Statement contained any untrue statement of a material fact or omitted to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (vii) no authorization, approval, consent, or other order of the State or any other governmental authority or agency within the State having jurisdiction over the Authority is required for the valid authorization, execution, and delivery by the Authority of the Authority Documents
(5) a letter from Best Best & Krieger LLP, Irvine, California, disclosure counsel to the Authority and the City (“Disclosure Counsel”), dated the Closing Date, addressed to the Underwriter, to the effect that, based upon its participation in the preparation of the Preliminary Official Statement and Official Statement as counsel to the Authority and the City and without having undertaken to determine independently the fairness, accuracy, or completeness of the statements contained in the Preliminary Official Statement and the Official Statement, such counsel has no reason to believe that the Preliminary Official Statement, as of its date, and the Official Statement, as of its date and as of the Closing Date (excluding therefrom the reports, financial and statistical data and forecasts therein, the information with respect to DTC and the book-entry system, as to which no view need be expressed), contained or contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; City Council 38 – 82 6/4/2024
18 Error! Unknown document property name.
(6) a certificate of the City, in form and substance satisfactory to the Underwriter, dated the Closing Date, to the effect that; (i) the representations and warranties of the City contained in this Purchase Contract are true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date; and (ii) there has been no material adverse change in the financial condition or results of operations of the City or the Water System from the date of the Official Statement to the Closing Date;
(7) a certificate of the Authority, in form and substance satisfactory to the Underwriter, dated the Closing Date, to the effect that the representations and warranties of the Authority contained in this Purchase Contract are true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date;
(8) a certificate, dated the date of the Preliminary Official Statement, from the Authority and the City, in the form attached hereto as Exhibit B; (9) an opinion of counsel to U.S. Bank, dated the Closing Date, addressed to the Underwriter and to the City, to the effect that:
(i) U.S. Bank is a national banking association duly organized and validly existing under the laws of the United States; (ii) U.S. Bank has duly authorized the execution and delivery of the Indenture and the Escrow Agreement (collectively, the “U.S. Bank Documents”);
(iii) the U.S. Bank Documents have been duly entered into and delivered by U.S. Bank and assuming due, valid and binding authorization, execution and delivery by the other parties thereto, constitute the legal, valid and binding obligations of U.S. Bank enforceable against U.S. Bank in accordance with their respective terms, except as the enforceability thereof may be limited by applicable bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally, or by general principles of equity;
(iv) U.S. Bank has duly authenticated and delivered the Bonds in its capacity as trustee under the Indenture;
(v) acceptance by U.S. Bank of the duties and obligations under the U.S. Bank Documents and compliance with provisions thereof will not conflict with or constitute a breach of or default under any law or administrative regulation to which U.S. Bank is subject; and
(vi) all approvals, consents and orders of any governmental authority or agency having jurisdiction in the matter which would constitute a condition precedent to the performance by U.S. Bank of its duties and obligations under the U.S. Bank Documents have been obtained and are in full force and effect; City Council 38 – 83 6/4/2024
19 Error! Unknown document property name.
(10) a certificate, dated the Closing Date, signed by a duly authorized officer of U.S. Bank, to the effect that;
(i) U.S. Bank is a national banking association organized and existing under and by virtue of the laws of the United States of America, having the necessary power to enter into, accept, and administer the trusts created under U.S.

Bank Documents and to authenticate the Bonds;
(ii) U.S. Bank Documents have been duly authorized, executed, and delivered by a duly authorized officer of U.S. Bank, and the execution, delivery, and performance of U.S. Bank Documents have been duly authorized by all necessary action of U.S. Bank;
(iii) U.S. Bank Documents constitute the legal, valid, and binding obligations of U.S. Bank enforceable in accordance with their respective terms, except as enforcement thereof may be limited by bankruptcy, insolvency, or other laws affecting the enforcement of creditors’ rights generally and by the application of equitable principles, if equitable remedies are sought; (iv) the Bonds have been duly authenticated by a duly authorized officer of U.S. Bank;
(v) no consent, approval, authorization, or other action by any governmental or regulatory authority having jurisdiction over U.S. Bank that has not been obtained is or will be required for the execution and delivery of U.S. Bank Documents or the performance by U.S. Bank of its duties and obligations under U.S.

Bank Documents;
(vi) the execution and delivery by U.S. Bank of U.S. Bank Documents and compliance with the terms thereof will not conflict with, or result in a violation or breach of, or constitute a default under, any loan agreement, indenture, bond, note, resolution, or any other agreement or instrument to which U.S. Bank is a party or by which it is bound, or any law or any rule, regulation, order, or decree of any court or governmental agency or body having jurisdiction over U.S. Bank or any of its activities or properties (except that no representation, warranty, or agreement need be made with respect to any federal or State securities or blue sky laws or regulations);
(vii) U.S. Bank’s action in executing and delivering U.S. Bank Documents will not contravene the articles or bylaws of U.S. Bank and is in full compliance with, and does not conflict with, any applicable law or governmental regulation currently in effect, and such action does not conflict with or violate any contract to which U.S. Bank is a party or any administrative or judicial decision by which U.S. Bank is bound; and
(viii) there is no action, suit, proceeding, or investigation, at law or in equity, before or by any court or governmental agency, public board, or body that has been served on U.S. Bank, or to the best knowledge of U.S. Bank, threatened against U.S. Bank which in the reasonable judgment of U.S. Bank would affect the City Council 38 – 84 6/4/2024
20 Error! Unknown document property name.
existence of U.S. Bank or in any way contesting or affecting the validity or enforceability of U.S. Bank Documents or contesting the powers of U.S. Bank or its authority to enter into and perform its obligations thereunder; (11) a letter from Stradling Yocca Carlson & Rauth LLP, Newport Beach, California, counsel to the Underwriter (“Underwriter’s Counsel”), dated the Closing Date, addressed to the Underwriter, in form and substance acceptable to the Underwriter;
(12) certified copies of the City Resolution, the Authority Resolution, and an incumbency resolution of U.S. Bank;
(13) copies each of the Authority Documents, the City Documents, and the Official Statement, duly executed and delivered by the respective parties thereto; (14) a tax certificate with respect to the Bonds of the Authority and the City, in form satisfactory to Bond Counsel, signed by appropriate officers of the Authority and the City;
(15) evidence that the rating on the Bonds of “_____” by S&P is in full force and effect on the Closing Date;
(16) copies of the statements with respect to the sale of the Bonds required to be delivered to the California Debt and Investment Advisory Commission; (17) evidence that a debt management policy which complies Sections 8855 of the California Government Code has been adopted by the City; (18) a copy of the Blanket Letter of Representations to DTC relating to the Bonds signed by the City;
(19) evidence that the federal tax information form 8038-G has been prepared by Bond Counsel for filing;
(20) copies of the executed certificates or opinions required to be delivered, if any, as a condition of the execution and delivery of the Installment Purchase Agreement on a parity with the existing Parity Obligations (as such term is defined in the Preliminary Official Statement), each in form and substance satisfactory to Bond Counsel and to Underwriter’s Counsel; (21) A verification report related to the refunding of the Refunded Bonds; (22) An opinion of Bond Counsel addressed to the Underwriter and U.S.

Bank to the effect that the Refunded Bonds have been legally defeased; and (23) such additional legal opinions, certificates, proceedings, instruments, and other documents as the Underwriter, Underwriter’s Counsel, or Bond Counsel may reasonably request to evidence compliance by the City with legal requirements, the accuracy, as of the time of Closing, of the City’s representations herein contained, City Council 38 – 85 6/4/2024
21 Error! Unknown document property name.
and the due performance or satisfaction by the City at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the City.

If the City shall be unable to satisfy the conditions to the Underwriter’s obligations contained in this Purchase Contract or if the Underwriter’s obligations shall be terminated for any reason permitted by this Purchase Contract, this Purchase Contract shall terminate and neither the City nor the Underwriter shall have any further obligation hereunder.

9. The performance by each of the Authority and the City of its obligations is conditioned upon (i) the performance by the Underwriter of its obligations hereunder and (ii) receipt by the Authority, the City, and the Underwriter of opinions and certificates being delivered at the Closing by persons and entities other than Authority and the City.

10. No expenses and costs of the City or the Authority incident to the performance of the Authority’s or the City’s obligations in connection with the authorization, issuance, and sale of the Bonds to the Underwriter, such as the costs of preparation (including word processing, printing, and reproduction), distribution and delivery of the Preliminary Official Statement, the Official Statement, and this Purchase Contract, in reasonable quantities, fees of rating agencies, fees and expenses of any municipal advisor to the City and fees and expenses of Bond Counsel or Disclosure Counsel for the City, shall be paid by the Underwriter. Except as indicated above, all out-of-pocket expenses of the Underwriter, including the California Debt and Investment Advisory Commission fee, traveling, and other expenses and the fees and expenses of the Underwriter including but not limited to and fees and expenses of Underwriter’s Counsel, shall be paid by the Underwriter.

11. Any notice or other communication to be given to the Authority under this Purchase Contract may be given by delivering the same in writing to the Authority, c/o City of Santa Ana, 20 Civic Center Plaza, Santa Ana, California 92701, Attention: Executive Director, or to such other person as the Executive Director may designate in writing. Any notice or other communication to be given to the City under this Purchase Contract may be given by delivering the same in writing to the City of Santa Ana, 20 Civic Center Plaza, Santa Ana, California 92701, Attention: Acting City Manager, or to such other person as the Acting City Manager may designate in writing. Any notice or other communication to be given to the Underwriter under this Purchase Contract may be given by delivering the same in writing to Samuel A. Ramirez & Co., Inc., 633 West Fifth Street, Suite 2693, Los Angeles, California 90071; Attention: Public Finance. The approval of the Underwriter when required hereunder or the determination of its satisfaction as to any document referred to herein shall be in writing signed by the Underwriter and delivered to the Authority and the City.

12. For all purposes of this Purchase Contract, a default shall not be deemed to be continuing if it has been cured, waived, or otherwise remedied. This Purchase Contract shall be governed by and construed in accordance with the laws of the State applicable to contracts made and performed within the State.

13. This Purchase Contract may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

14. This Purchase Contract when accepted by the Authority and the City in writing shall constitute the entire agreement among the City, the Authority, and the Underwriter and is made solely for the benefit of the City, the Authority, and the Underwriter (including the successors or City Council 38 – 86 6/4/2024
22 Error! Unknown document property name.
assigns of the Underwriter approved by the City and the Authority). No other person shall acquire or have any right hereunder or by virtue hereof. All of the representations, warranties, and agreements of the City and the Authority contained in this Purchase Contract shall remain operative and in full force and effect regardless of (a) any investigation made by or on behalf of the Underwriter (but, if the Underwriter does discover by its investigation that the Official Statement contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the Underwriter shall so notify the City and the Authority); (b) the delivery of and payment for the Bonds; and (c) any termination of this Purchase Contract.

City Council 38 – 87 6/4/2024
S-1
Error! Unknown document property name.

15. This Purchase Contract shall not be modified or amended without the prior written consent of the Underwriter, the Authority and the City.

Very truly yours,
SAMUEL A. RAMIREZ & CO., INC.

By:

Authorized Officer
Accepted as of __________ a.m./p.m.

SANTA ANA PUBLIC FINANCING AUTHORITY
Executive Director

CITY OF SANTA ANA
Acting City Manager
City Council 38 – 88 6/4/2024
A-1
Error! Unknown document property name.

EXHIBIT A
$______________

SANTA ANA PUBLIC FINANCING AUTHORITY
WATER REVENUE BONDS, SERIES 2024
Maturity
Date
(September 1)
Principal
Amount
Interest
Rate Yield Price
10%
Test
Used
Hold the
Offering
Price
Rule
Used
________________
C Priced to yield to optional redemption date of September 1, 20__ at _____. T Term Bond.

City Council 38 – 89 6/4/2024
B-1
Error! Unknown document property name.

EXHIBIT B
$______________*

SANTA ANA PUBLIC FINANCING AUTHORITY
WATER REVENUE BONDS, SERIES 2024
RULE 15c2-12 CERTIFICATE
The undersigned hereby certifies and represents that the undersigned is the duly appointed and acting representative of the Santa Ana Public Financing Authority (the “Authority”) and the City of Santa Ana (the “City”), and as such is duly authorized to execute and deliver this Certificate on behalf of the Authority and the City, and further hereby certifies and reconfirms on behalf of the Authority and the City as follows:
(1) This Certificate is delivered in connection with the offering and sale of the above captioned bonds (the “Bonds”) in order to enable the Underwriter of the Bonds to comply with Securities and Exchange Commission Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (the “Rule”).
(2) In connection with the offering and sale of the Bonds, there has been prepared a Preliminary Official Statement, setting forth information concerning the Bonds, the Authority and the City (the “Preliminary Official Statement”).
(3) As used herein, “Permitted Omissions” means the offering price(s), interest rate(s), selling compensation, aggregate principal amount, principal amount per maturity, delivery dates, ratings and other terms of the Bonds depending on such matters, all with respect to the Bonds. (4) The Preliminary Official Statement is, except for the Permitted Omissions, deemed final within the meaning of the Rule, and the information therein is accurate and complete except for the Permitted Omissions.

Dated: _____, 2024

SANTA ANA PUBLIC FINANCING AUTHORITY
By:

Executive Director

CITY OF SANTA ANA
By:

Acting City Manager
* Preliminary, subject to change.

City Council 38 – 90 6/4/2024
C-1
Error! Unknown document property name.

EXHIBIT C

FORM OF ISSUE PRICE CERTIFICATE
$______________

SANTA ANA PUBLIC FINANCING AUTHORITY
WATER REVENUE BONDS, SERIES 2024
The undersigned, on behalf of Samuel A. Ramirez & Co., Inc. (“Ramirez”) hereby certifies as set forth below with respect to the sale and issuance of the above-captioned bonds (the “Bonds”).

1. Sale of the General Rule Maturities. As of the date of this certificate, for each Maturity of the General Rule Maturities, the first price at which at least 10% of such Maturity was sold to the Public is the respective price listed in Schedule A.

2. [Initial Offering Price of the Hold-the-Offering-Price Maturities. (a) Ramirez offered the Hold-the-Offering-Price Maturities to the Public for purchase at the respective initial offering prices listed in Schedule A (the “Initial Offering Prices”) on or before the Sale Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this certificate as Schedule B.
(b) As set forth in the Bond Purchase Agreement, dated _____, 2024, by and among Ramirez, the City of Santa Ana and the Issuer, Ramirez has agreed in writing that, (i) for each Maturity of the Hold-the-Offering-Price Maturities, it would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the “hold-the-offering-price rule”), and (ii) any selling group agreement shall contain the agreement of each dealer who is a member of the selling group, and any retail distribution agreement shall contain the agreement of each broker-dealer who is a party to the retail distribution agreement, to comply with the hold-the-offering-price rule.

Pursuant to such agreement, no Underwriter (as defined below) has offered or sold any Maturity of the Hold-the-Offering-Price Maturities at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds during the Holding Period.]

3. Defined Terms.
(a) General Rule Maturities means those Maturities of the Bonds listed in Schedule A hereto as the “General Rule Maturities.”
(b) [Hold-the-Offering-Price Maturities means those Maturities of the Bonds listed in Schedule A hereto as the “Hold-the-Offering-Price Maturities.” (c) Holding Period means, with respect to a Hold-the-Offering-Price Maturity, the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date (_____, 2024), or (ii) the date on which Ramirez has sold at least 10% of such Hold-the-Offering-Price Maturity to the Public at prices that are no higher than the Initial Offering Price for such Hold-the-Offering-Price Maturity.]
(d) Issuer means the Santa Ana Public Financing Authority.

City Council 38 – 91 6/4/2024
C-2
Error! Unknown document property name.
(e) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities.
(f) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter.

The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (g) [Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is _____, 2024. (h) Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).] The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents Ramirez’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in a Certificate as to Arbitrage and Tax Compliance Procedures for the Bonds and with respect to compliance with the federal income tax rules affecting the Bonds, and by Best Best & Krieger LLP in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds.

SAMUEL A. RAMIREZ & CO., INC.

By:

Name:

Dated: _____, 2024
City Council 38 – 92 6/4/2024
C-3
Error! Unknown document property name.

SCHEDULE A
SALE PRICES OF THE GENERAL RULE MATURITIES [AND INITIAL OFFERING PRICES OF THE HOLD-THE-OFFERING-PRICE MATURITIES]
(Attached)
City Council 38 – 93 6/4/2024
C-4
Error! Unknown document property name.
[SCHEDULE B

PRICING WIRE OR EQUIVALENT COMMUNICATION
(Attached)]
City Council 38 – 94 6/4/2024
55394.00068\42092121.3
BBK DRAFT – MAY 14, 2024

INDENTURE
between the

SANTA ANA PUBLIC FINANCING AUTHORITY
and
U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION
as Trustee
Dated as of ______________, 2024
$______________
Santa Ana Public Financing Authority
Water Revenue Bonds, Series 2024
(Payable Solely from Installment Payments
Secured by Water System Net Revenues)
EXHIBIT 6
City Council 38 – 95 6/4/2024
55394.00068\42092121.3

TABLE OF CONTENTS
Page
-iARTICLE I DEFINITIONS; EQUAL SECURITY ............................................................ 2 Section 1.01. Definitions............................................................................................ 2 Section 1.02. Equal Security.................................................................................... 11 Section 1.03. Number, Gender and Variants ........................................................... 11 Section 1.04. Articles, Sections, Etc........................................................................ 11 ARTICLE II ISSUANCE OF 2024 BONDS; REGISTRATION AND TRANSFER OF BONDS.................................................................................................... 12 Section 2.01. Authorization and Purpose of 2024 Bonds........................................ 12 Section 2.02. Execution of 2024 Bonds................................................................... 12 Section 2.03. Transfer and Payment of Bonds......................................................... 12 Section 2.04. Exchange of Bonds............................................................................ 13 Section 2.05. Bond Registration Books................................................................... 13 Section 2.06. Mutilated, Destroyed, Stolen or Lost Bonds...................................... 13 Section 2.07. Temporary Bonds............................................................................... 14 Section 2.08. Validity of Bonds............................................................................... 14 Section 2.09. Book-Entry System............................................................................ 14 Section 2.10. Procedure for Issuance of 2024 Bonds .............................................. 17 ARTICLE III TERMS OF 2024 BONDS ............................................................................ 17 Section 3.01. Terms of 2024 Bonds......................................................................... 17 Section 3.02. Redemption of 2024 Bonds ............................................................... 18 Section 3.03. Form of 2024 Bonds .......................................................................... 20 ARTICLE IV ISSUANCE OF ADDITIONAL BONDS ..................................................... 20 Section 4.01. Conditions for the Issuance of Additional Bonds.............................. 20 Section 4.02. Procedure for the Issuance of Additional Bonds ............................... 21 ARTICLE V ESTABLISHMENT OF FUNDS; DEPOSIT AND APPLICATION OF PROCEEDS............................................................................................. 23 Section 5.01. Establishment of Funds and Accounts............................................... 23 Section 5.02. Application of Proceeds..................................................................... 23 Section 5.03. Use of Moneys in the Acquisition Fund; Costs of Issuance Fund ................................................................................................... 23 ARTICLE VI REVENUES................................................................................................... 24 Section 6.01. Pledge of Revenues............................................................................ 24 Section 6.02. Receipt and Deposit of Revenues in the Payment Fund.................... 25 Section 6.03. Establishment and Maintenance of Accounts for Use of Money in the Payment Fund .......................................................................... 25 Section 6.04. Investment of Moneys in Funds and Accounts.................................. 27 City Council 38 – 96 6/4/2024
55394.00068\42092121.3

TABLE OF CONTENTS
(continued)
Page
-iiARTICLE VII COVENANTS OF THE AUTHORITY ........................................................ 27 Section 7.01. Punctual Payment and Performance .................................................. 27 Section 7.02. Tax Covenants; Rebate Fund............................................................. 28 Section 7.03. Eminent Domain ................................................................................ 29 Section 7.04. Accounting Records and Reports....................................................... 29 Section 7.05. The City’s Budgets ............................................................................ 30 Section 7.06. Installment Purchase Agreement and Other Documents................... 30 Section 7.07. Other Liens......................................................................................... 30 Section 7.08. Prosecution and Defense of Suits ...................................................... 31 Section 7.09. Further Assurances............................................................................. 31 Section 7.10. Continuing Disclosure ....................................................................... 31 ARTICLE VIII THE TRUSTEE ............................................................................................. 31 Section 8.01. Appointment and Acceptance of Duties............................................ 31 Section 8.02. Duties, Immunities and Liabilities of Trustee.................................... 31 Section 8.03. Merger or Consolidation.................................................................... 33 Section 8.04. Compensation .................................................................................... 33 Section 8.05. Liability of Trustee ............................................................................ 34 Section 8.06. Right to Rely on Documents.............................................................. 35 Section 8.07. Preservation and Inspection of Documents........................................ 35 ARTICLE IX AMENDMENT OF THE INDENTURE....................................................... 36 Section 9.01. Amendment of the Indenture ............................................................. 36 Section 9.02. Disqualified Bonds............................................................................. 37 Section 9.03. Endorsement or Replacement of Bonds After Amendment .............. 37 Section 9.04. Amendment by Mutual Consent ........................................................ 37 ARTICLE X EVENTS OF DEFAULT AND REMEDIES OF HOLDERS....................... 37 Section 10.01. Events of Default and Acceleration of Maturities ............................. 37 Section 10.02. Proceedings by Trustee ...................................................................... 38 Section 10.03. Effect of Discontinuance or Abandonment........................................ 39 Section 10.04. Rights of Owners ............................................................................... 39 Section 10.05. Restriction on Owners’ Action .......................................................... 39 Section 10.06. Power of Trustee to Enforce .............................................................. 40 Section 10.07. Remedies Not Exclusive.................................................................... 40 Section 10.08. Waiver of Events of Default; Effect of Waiver ................................. 40 Section 10.09. Application of Moneys ...................................................................... 40 ARTICLE XI DEFEASANCE.............................................................................................. 42 Section 11.01. Discharge of Bonds............................................................................ 42 Section 11.02. Unclaimed Money.............................................................................. 43 City Council 38 – 97 6/4/2024
55394.00068\42092121.3

TABLE OF CONTENTS
(continued)
Page
-iiiARTICLE XII MISCELLANEOUS ...................................................................................... 43 Section 12.01. Liability of Authority Limited to Revenues....................................... 43 Section 12.02. Benefits of Indenture Limited to Parties............................................ 44 Section 12.03. Successor Is Deemed Included In All References To Predecessor ........................................................................................ 44 Section 12.04. Execution of Documents by Owners ................................................. 44 Section 12.05. Waiver of Personal Liability.............................................................. 44 Section 12.06. Acquisition of Bonds by Authority.................................................... 44 Section 12.07. Destruction of Cancelled Bonds ........................................................ 45 Section 12.08. Content of Certificates....................................................................... 45 Section 12.09. Accounts and Funds........................................................................... 45 Section 12.10. Partial Invalidity................................................................................. 45 Section 12.11. Execution in Counterparts.................................................................. 46 Section 12.12. Law Governing .................................................................................. 46 Section 12.13. Notices ............................................................................................... 46 EXHIBIT A – FORM OF 2024 BOND.....................................................................................A-1 City Council 38 – 98 6/4/2024
55394.00068\42092121.3
1 INDENTURE
THIS INDENTURE, made and entered into as of __________ 1, 2024, by and between the SANTA ANA PUBLIC FINANCING AUTHORITY, a California joint exercise of powers authority and public entity duly organized and existing under and by virtue of the laws of the State of California (the “Authority”), and U.S. Bank Trust Company, National Association, a national banking association organized and existing under and by virtue of the laws of the United States, as trustee (the “Trustee”);
WITNESSETH:

WHEREAS, the Authority was incorporated to provide financial assistance to the City of Santa Ana (the “City”);
WHEREAS, the City desires from time to time to acquire, construct, install and improve its water system as more fully described in Exhibit A to the Master Installment Purchase Agreement, dated as of _____________, 2024 (the “Installment Purchase Agreement”), by and between the City and the Authority, and as modified in accordance with the provisions thereof (the “Project”);
WHEREAS, concurrently with the prepayment of the Prior Obligations defined herein, the City will reacquire the Project and will resell the Project to the Authority and then repurchase the Project from the Authority pursuant to the provisions of the Installment Purchase Agreement and First Supplement to Master Installment Purchase Agreement (the “First Supplemental Agreement”), dated as of the date hereof;
WHEREAS, to provide funds for the purchase of the Project, in order that the Project or Components thereof may be sold to the City pursuant to the Installment Purchase Agreement, the Authority desires to issue its Water Revenue Bonds, Series 2024 (Payable Solely from Installment Payments Secured by Water System Net Revenues) (the “2024 Bonds”), in the aggregate principal amount of $___________________;
WHEREAS, the 2024 Bonds will be secured by the payments to be made by the City pursuant to the Installment Purchase Agreement as supplemented by the First Supplemental Agreement;
WHEREAS, in order to provide for the authentication and delivery of the 2024 Bonds and any additional bonds issued hereunder (the 2024 Bonds and any such additional bonds being collectively referred to as the “Bonds”), to establish and declare the terms and conditions upon which the Bonds are to be issued and secured and to secure the payment of the principal thereof, premium, if any, and interest thereon, the Authority has authorized the execution and delivery of this Indenture; and
WHEREAS, the Authority has determined that all acts and proceedings required by law necessary to make the Bonds, when issued and executed by the Authority and authenticated and delivered by the Trustee, the valid, binding and legal limited obligations of the Authority, and to constitute this Indenture a valid and binding agreement for the uses and purposes herein set forth City Council 38 – 99 6/4/2024
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2 in accordance with its terms, have been done and taken, and the execution and delivery of the Indenture have been in all respects duly authorized.

NOW, THEREFORE, THIS INDENTURE WITNESSETH, that to secure the payment of the principal of, premium, if any, and interest on all Bonds at any time issued and outstanding under this Indenture, according to their tenor, and to secure the performance and observance of all the covenants and conditions therein and herein set forth, and to declare the terms and conditions upon and subject to which the Bonds are to be issued and received, and in consideration of the premises and of the mutual covenants herein contained and of the purchase and acceptance of the Bonds by the owners thereof, and for other valuable consideration, the receipt whereof is hereby acknowledged, the Authority does hereby covenant and agree with the Trustee, for the benefit of the respective owners from time to time of the Bonds, as follows:

ARTICLE I
DEFINITIONS; EQUAL SECURITY
SECTION 1.01. Definitions. Unless the context otherwise requires, the terms defined in this section shall, for all purposes of this Indenture and of any Supplemental Indenture, have the meanings set forth below:
“Acquisition Costs” means all costs of acquiring, constructing, installing or improving the Project, including but not limited to:
(i) all costs which the Authority or the City shall be required to pay to a manufacturer, vendor or contractor or any other person under the terms of any contract or contracts for the acquisition, construction, installation or improvement of the Project; (ii) obligations of the Authority or the City incurred for labor and materials (including obligations payable to the Authority or the City for actual out-of-pocket expenses of the Authority or the City) in connection with the acquisition, construction, installation or improvement of the Project, including reimbursement to the Authority or the City for all advances and payments made in connection with the Project prior to or after delivery of the Bonds; (iii) the costs of performance or other bonds and any and all types of insurance that may be necessary or appropriate to have in effect during the course of acquisition, construction, installation or improvement of the Project; (iv) all costs of engineering and architectural services, including the actual outof-pocket costs of the Authority or the City for test borings, surveys, estimates, plans and specifications and preliminary investigations therefor, development fees and sales commissions, and for supervising acquisition, construction, installation and improvement, as well as for the performance of all other duties required by or consequent to the proper acquisition, construction, installation or improvement of the Project; and
(v) any sums required to reimburse the Authority or the City for advances made by the Authority or the City for any of the above items or for any other costs incurred and for work City Council 38 – 100 6/4/2024
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3 done by the Authority or the City which are properly chargeable to the acquisition, construction, installation or improvement of the Project.
“Acquisition Fund” means the fund by that name established under Section 5.01(c) hereof.
“Additional Bonds” means all revenue bonds of the Authority which are secured by Installment Payments authorized by and at any time Outstanding pursuant hereto and executed, issued and delivered in accordance with Article IV hereof. “Annual Debt Service” means, for any Fiscal Year, the sum of (1) the interest payable on all Outstanding Bonds in such Fiscal Year, assuming that all Outstanding Serial Bonds are retired as scheduled and that all Outstanding Term Bonds are redeemed or paid from sinking fund payments as scheduled (except to the extent that such interest is to be paid from the proceeds of the sale of any Bonds), (2) the principal amount of all Outstanding Serial Bonds maturing by their terms in such Fiscal Year, and (3) the principal amount of all Outstanding Term Bonds required to be redeemed or paid in such Fiscal Year (together with the redemption premiums, if any, thereon). “Authority” means the Santa Ana Public Financing Authority, a California joint exercise of powers authority and public entity duly organized and existing under and by virtue of the laws of the State, and its successors or assigns.
“Authorized Denominations” means $5,000 and any integral multiple thereof. “Beneficial Owners” means those individuals, partnerships, corporations or other entities for whom the Participants have caused the Depository to hold Book-Entry Bonds. “Board” means the Board of Directors of the Authority.
“Bond Counsel” means any attorney at law or firm of attorneys, of nationally recognized standing in matters pertaining to the validity of, and exclusion from gross income for federal income tax purposes of interest on, bonds issued by states and political subdivisions and duly admitted to practice law before the highest court of any state of the United States and acceptable to the Authority.
“Bonds” means the 2024 Bonds and all Additional Bonds.
“Book-Entry Bonds” means any Bonds which are then held in book-entry form by a Securities Depository as provided in Section 2.09.
“Business Day” means a day of the year which is not a Saturday or Sunday, or a day on which banking institutions located in California are required or authorized to remain closed, or on which the New York Stock Exchange is closed. If the date for making any payment or the last date for performance of any act or the exercising of any right, as provided in this Indenture, shall not be a Business Day, such payment may be made or act performed or right exercised on the next succeeding Business Day, with the same force and effect as if done on the nominal date provided in this Indenture, and, unless otherwise specifically provided this Indenture, no interest shall accrue for the period from and after such nominal date.

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4 “Certificate of Completion” means a Certificate of the City filed with the Trustee, stating that the Components of the Project being financed with the proceeds of Bonds have been acquired, constructed, installed and improved and that all Acquisition Costs have been paid or provided for. “Certificate of the Authority” means an instrument in writing signed by the Chair, the Vice Chair, the Secretary or any Assistant Secretary of the Authority, or by any other officer of the Authority duly authorized by the Authority for that purpose. “Certificate of the City” means an instrument in writing signed by the Mayor, City Manager, Assistant City Manager, or Treasurer of the City, or by any other official of the City duly authorized by the City for that purpose.
“Charter” means the Charter of the City as it now exists or may hereafter be amended, and any new or successor Charter.
“City” means the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution, the laws of the State and its Charter. “Closing Date” means ______________, 2024.
“Code” means the Internal Revenue Code of 1986, as amended, and the regulations thereunder, and any successor laws or regulations.
“Continuing Disclosure Certificate” means the Continuing Disclosure Certificate, dated as of the date hereof, executed by the Authority, as originally executed and as it may from time to time be amended in accordance with the provisions thereof. “Corporate Trust Office of the Trustee” means the principal corporate trust office of the Trustee in Los Angeles, California or such other or additional offices as may be specified to the Authority by the Trustee in writing.
“Costs of Issuance” means all items of expense directly or indirectly payable by or reimbursable to the City or the Authority relating to the issuance, sale and delivery of the Bonds and the execution and delivery of this Indenture, the Installment Purchase Agreement and the Supplement, filing and recording costs, settlement costs, printing costs, reproduction and binding costs, initial fees and charges of the Trustee (including legal fees), legal fees and charges, insurance fees and charges, financial and other professional consultant fees, fees and charges of rating agencies and/or for credit ratings and fees in connection with the foregoing. “Costs of Issuance Fund” shall have the meaning given to such term in Section 5.01. “Defeasance Securities” means, to the extent permitted by State law, the following obligations which may be used as permitted investments to defease Outstanding Bonds:
(1) Cash deposits (insured at all times by the Federal Deposit Insurance Corporation).

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5 (2) U.S. Treasury Certificates, Notes and Bonds (including State and Local Government Series — “SLGs”).
(3) Direct obligations of (including obligations issued or held in book entry form on the books of the Department of Treasury) the United States of America. (4) The interest component of Resolution Funding Corporation (REFCORP) strips which have been stripped by request to the Federal Reserve Bank of New York in book entry form.
(5) Pre-refunded municipal bonds rated “Aaa” by Moody’s and “AAA” by Standard & Poor’s Global Ratings. If the issue is rated solely by Standard & Poor’s Global Ratings, the pre-refunded bonds must have been pre-refunded with cash, direct U.S. or U.S. guaranteed obligations, or AAA rated pre-refunded municipal bonds. (6) Obligations of the following federal agencies so long as such obligations are backed by the full faith and credit of the United States of America. a. U.S. Export-Import Bank (Eximbank)
Direct obligations or fully guaranteed certificates of beneficial ownership
b. Farmers Home Administration (FmHA)
Certificates of beneficial ownership
c. Federal Financing Bank
d. General Services Administration
Participation certificates
e. U.S. Maritime Administration
Guaranteed Title XI financing
f. U.S. Department of Housing and Urban Development
Project Notes
Local Authority Bonds
New Communities Debentures
U.S. Public Housing Notes and Bonds
“Depository” means the securities depository acting as Depository pursuant to “DTC” means The Depository Trust Company, New York, New York, and its successors. “Escrow Agent” means U.S. Bank Trust Company, National Association, or any successor thereto under the Escrow Agreement.
“Escrow Agreement” means that certain Escrow Agreement, dated as of ______________________, 2024, by and among the City, the Authority and the Escrow Agent, as the same may be amended from time to time, relating to the Santa Ana Public Financing City Council 38 – 103 6/4/2024
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6 Authority Water Revenue Bonds, Series 2014 (Payable Solely from Installment Payments Secured by Water System Net Revenues).
“Event of Default” shall have the meaning set forth in Section 10.01 hereof. “Financial Newspaper” means The Wall Street Journal or The Bond Buyer or any other newspaper or journal printed in the English language publishing financial news and selected by the Trustee, whose decision shall be final and conclusive. “Fiscal Year” means the fiscal year of the Authority which, as of the date hereof, is the period from July 1 to and including the following June 30. “Indenture” means this Indenture, dated as of _____________, 2024, between the Authority and the Trustee, as originally executed and as it may from time to time be amended or supplemented by all Supplemental Indentures executed pursuant to the provisions hereof. “Information Services” means “EMMA” or the “Electronic Municipal Market Access” system of the Municipal Securities Rulemaking Board; or, in accordance with then-current guidelines of the Securities and Exchange Commission, such other services providing information with respect to called bonds as the Authority may designate in a Written Certificate of the Autority delivered to the Trustee.
“Installment Payments” means the Installment Payments scheduled to be paid by the City under and pursuant to the Installment Purchase Agreement and any supplement thereto. “Installment Purchase Agreement” means the Master Installment Purchase Agreement, dated as of ____________, 2024, entered into between the Authority, as seller, and the City, as purchaser, as originally executed and as it may from time to time be amended or supplemented pursuant to the provisions hereof and thereof.
“Interest Account” means the account by that name established under Section 5.01(b) hereof.
“Interest Payment Date” means each March 1 and September 1, commencing September 1, 2024.
“Letter of Representations” means the letter of the Trustee and Authority delivered to and accepted by the Depository on or prior to the delivery of the 2024 Bonds or any Additional Bonds as Book Entry Bonds setting forth the basis on which the Depository serves as depository for such Book Entry Bonds, as originally executed or as it may be supplemented or revised or replaced by a letter to a substitute Depository.
“Moody’s” means Moody’s Investors Service, Inc., a corporation organized and existing under the laws of the state of Delaware, and its successors and assigns, and, if such entity shall for any reason no longer perform the functions of a securities rating agency, “Moody’s” shall be deemed to refer to any other nationally recognized securities rating agency (other than S&P) designated by the Authority.

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7 “Nominee” means the nominee of the Depository, which may be the Depository, as determined from time to time pursuant to Section 2.09 hereof. “Outstanding,” when used as of any particular time with reference to Bonds, means (subject to the provisions of Section 9.02) all Bonds theretofore or thereupon executed by the Authority and authenticated and delivered by the Trustee pursuant hereto, except -- (1) Bonds theretofore cancelled by the Trustee or surrendered to the Trustee for cancellation;
(2) Bonds paid or deemed to have been paid within the meaning of Section

11.01 hereof;
(3) Bonds beneficially owned by the City or the Authority; and (4) Bonds in lieu of or in substitution for which other Bonds shall have been executed by the Authority and authenticated and delivered pursuant hereto. “Owner” means any person who shall be the registered owner of any Outstanding Bond, as shown on the registration books required to be maintained by the Trustee pursuant to Section

2.05 hereof.
“Participants” means those broker dealers, banks and other financial institutions from time to time for which the Depository holds Book Entry Bonds as securities depository. “Participating Underwriter” has the meaning ascribed thereto in the Continuing Disclosure Certificate.
“Payment Fund” means the fund by that name established under Section 5.01(b) hereof. “Permitted Investments” means any of the following to the extent then permitted by law and Section 6.04 hereof (provided that the Trustee shall be entitled to rely upon any investment directions from the Authority as conclusive certification to the Trustee that the investments described therein are so permitted by law and Section 6.05 hereof):
(1) Cash deposits (insured at all times by the Federal Deposit Insurance Corporation or otherwise collateralized with obligations described in the next paragraph). (2) Direct obligations of (including obligations issued or held in book entry form on the books of the Department of Treasury) the United States of America. In the event these securities are used for defeasance, they shall be non-callable and non-prepayable. (3) Obligations of the following federal agencies so long as such obligations are backed by the full faith and credit of the United States of America. a. U.S. Export-Import Bank (Eximbank)
b. Farmers Home Administration (FmHA)
c. Federal Financing Bank
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8 d. General Services Administration
e. U.S. Maritime Administration
f. U.S. Department of Housing and Urban Development (PHAs) g. General Services Administration
h. Government National Mortgage Association (GNMA)
i. Federal Housing Administration Debentures (FHA)
(4) Direct obligations of any of the following federal agencies which obligations are not fully guaranteed by the full faith and credit of the United States of America:
a. Senior debt obligations rated in the highest long-term rating category by at least two nationally recognized rating agencies issued by the Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Corporation (FHLMC).
b. Senior debt obligations of the Federal Home Loan Bank System. c. Senior debt obligations of the Student Loan Marketing Association. d. Obligations of the Resolution Funding Corporation (REFCORP). e. Consolidated systemwide bonds and notes of the Farm Credit System.
(5) U.S. dollar denominated deposit accounts, federal funds and bankers’ acceptances with domestic commercial banks (including the Trustee and any of its affiliates) which either (a) have a rating in one of the two highest short-term rating categories of at least two nationally recognized rating agencies, (b) are insured at all times by the Federal Deposit Insurance Corporation, or (c) are collateralized with direct obligations of the United States of America at 102% valued daily. All such certificates must mature no more than 360 days after the date of purchase. (Ratings on holding companies are not considered as the rating of the bank). (6) Commercial paper which is rated at the time of purchase in the highest short-term rating category of at least two nationally recognized rating agencies and which matures not more than 270 days after the date of purchase.
(7) Investments in (a) money market funds rated in the highest short-term rating category of at least two nationally recognized rating agencies including such funds for which the Trustee, its affiliates or subsidiaries provide investment advisory or other management services or for which the Trustee or an affiliate of the Trustee serves as investment administrator, shareholder servicing agent, and/or custodian or subcustodian, notwithstanding that (i) the Trustee or an affiliate of the Trustee receives fees from funds for services rendered, (ii) the Trustee collects fees for services rendered pursuant to this Indenture, which fees are separate from the fees received from such funds, and (iii) services performed for such funds and pursuant to this Indenture may at times duplicate those provided to such funds by the Trustee or an affiliate of the Trustee; and (b) public sector investment pools operated pursuant to SEC Rule 2a-7 in which the Issuer’s deposit shall not exceed 5% of the aggregate pool balance at any time and such pool is rated in one of the two highest short-term rating categories of at least two nationally recognized rating agencies.

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9 (8) Pre-refunded municipal obligations defined as follows: Any bonds or other obligations of any state of the United States of America or of any agency, instrumentality or local governmental unit of any such state which are not callable at the option of the obligor prior to maturity or as to which irrevocable instructions have been given by the obligor to call on the date specified in the notice; and
a. which are rated, based on an irrevocable escrow account or fund (the “escrow”), in the highest long-term rating category of at least one nationally recognized rating agencies; or
b. (i) which are fully secured as to principal and interest and redemption premium, if any, by an escrow consisting only of cash or direct obligations of the United States of America, which escrow may be applied only to the payment of such principal of and interest and redemption premium, if any, on such bonds or other obligations on the maturity date or dates thereof or the specified redemption date or dates pursuant to such irrevocable instructions, as appropriate, and
(ii) which escrow is sufficient, as verified by a nationally recognized independent certified public accountant, to pay principal of and interest and redemption premium, if any, on the bonds or other obligations described in this paragraph on the maturity date or dates specified in the irrevocable instructions referred to above, as appropriate.
(9) General obligations of states or political subdivisions of states with a shortterm rating in one of the two highest rating categories and a long-term rating in one of the two highest rating categories of at least two nationally recognized rating agencies. In the event such obligations are variable rate obligations, the interest rate on such obligations must be reset not less frequently than annually.
(10) Funds invested in the Local Agency Investment Fund (as that term is defined in Section 16429.1 of the California Government Code, as such section may be amended or recodified from time to time) to the extent deposits and withdrawals may be made by the Trustee.
(11) Certificates of deposit secured at all times by collateral described in (2) and/or (3) above. Such certificates must be issued by commercial banks, savings and loan associations or mutual savings banks, including the Trustee and its affiliates. The collateral must be held by a third party and the bondholders must have a perfected first security interest in the collateral.

The value of the above investments, other than cash, shall be determined as follows:
“Value,” which shall be determined as of the end of the month, means “fair market value,” which may be determined using a computer pricing service including any service contained in the Trustee’s accounting system, provided that the Trustee shall not be liable for any error made by any such service.

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10 “Principal Account” means the account of that name established under Section 5.01(a) hereof.
“Prior Obligations” means the $15,690,000 Santa Ana Financing Authority Water Revenue Refunding Bonds, Series 2014.
“Rebate Fund” means the fund by that name established under Section 7.02(a) hereof. “Rebate Requirement” shall have the meaning set forth in the Tax Certificate. “Record Date” means the fifteenth (15) day preceding an Interest Payment Date, whether or not such day is a Business Day.
“Redemption Account” means the account by that name established under Section 5.01(a) hereof.
“Revenues” means all Installment Payments pursuant to the Installment Purchase Agreement, and the interest or profits from the investment of money in any account or fund (other than the Rebate Fund) pursuant to Section 6.05.
“S&P” means Standard & Poor’s Global Ratings, its successors and assigns, and if such entity shall be deemed to refer to any other nationally recognized securities rating agency (other than Moody’s) designated by the Authority.
“Securities Depositories” means The Depository Trust Company, 55 Water Street, 50th Floor, New York, New York, 10041-0099, Attn.: Call Notification Department, Fax (212) 855- 7232; and, in accordance with then current guidelines of the Securities and Exchange Commission, such other addresses and/or such other securities depositories as the Authority may designate in a Certificate of the Authority delivered to the Trustee.
“Serial Bonds” means Bonds for which no sinking fund payments are provided. “Sinking Account” means the account by that name established under Sections 5.01(a) and 6.03(b) hereof.
“State” means the State of California.
“Supplemental Indenture” means any indenture then in full force and effect which has been duly executed and delivered by the Authority and the Trustee amendatory hereof or supplemental hereto; but only if and to the extent that such Supplemental Indenture is specifically authorized hereunder.
“Tax Certificate” means the certificate delivered with respect to the Bonds on which it is intended that interest thereon will be excluded from gross income pursuant to Section 103 of the Code.

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11 “Term Bonds” means Bonds which are payable on or before their specified maturity dates from sinking fund payments established for that purpose and calculated to retire such Bonds on or before their specified maturity dates.
“Treasurer” means the Treasurer of the City or the Treasurer of the Authority as appropriate.
“Trustee” means U.S. Bank Trust Company, National Association, a national banking association organized and existing under and by virtue of the laws of the United States, or any other association or corporation which may at any time be substituted in its place as provided in Section 8.02.
“2024 Bonds” means the Santa Ana Public Financing Authority Water Revenue Bonds, Series 2024 (Payable Solely from Installment Payments Secured by Water System Net Revenues) authorized by and at any time Outstanding pursuant hereto and executed, issued and delivered in accordance with Section 3.01, and any Bonds issued upon transfer thereof or in exchange therefor or in lieu thereof in accordance with the provisions hereof. “Written Request of the Authority” means an instrument in writing signed by the Chair, the Vice Chair, the Secretary or any Assistant Secretary of the Authority, or by any other officer of the Authority duly authorized by the Authority for that purpose. “Written Request of the City” means an instrument in writing signed by the Mayor, City Manager, Assistant City Manager or City Treasurer, or by any other official of the applicable administrative departments of the City duly authorized by the City for that purpose.

SECTION 1.02. Equal Security. In consideration of the acceptance of the Bonds by the Owners thereof, the Indenture shall be deemed to be and shall constitute a contract between the Authority and the Trustee for the benefit of the Owners from time to time of all Bonds authorized, executed, issued and delivered hereunder and then Outstanding to secure the full and final payment of the interest on and principal of and redemption premiums, if any, on all Bonds which may from time to time be authorized, executed, issued and delivered hereunder, subject to the agreements, conditions, covenants and provisions contained herein; and all agreements and covenants set forth herein to be performed by or on behalf of the Authority shall be for the equal and proportionate benefit, protection and security of all Owners of the Bonds without distinction, preference or priority as to security or otherwise of any Bonds over any other Bonds by reason of the number or date thereof or the time of authorization, sale, execution, issuance or delivery thereof or for any cause whatsoever, except as expressly provided herein or therein.

SECTION 1.03. Number, Gender and Variants. The singular form of any word used herein, including the terms defined in Section 1.01, shall include the plural, and vice versa.

The use herein of a word of any gender shall include all genders. The definition of a word or term shall include all variants of such word or term.

SECTION 1.04. Articles, Sections, Etc.. All references herein to “Articles,” “Sections” and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Indenture as originally executed, as such Articles, Sections or subdivisions may be amended and supplemented from time to time in accordance with the provisions hereof; and the words City Council 38 – 109 6/4/2024
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12 “herein,” “hereof,” “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or subdivision hereof unless the context otherwise requires. The headings or titles of the several Articles and Sections hereof, and any table of contents appended to copies hereof, shall be solely for convenience of reference and shall not affect the meaning, construction or effect of this Indenture.

ARTICLE II
ISSUANCE OF 2024 BONDS;

REGISTRATION AND TRANSFER OF BONDS
SECTION 2.01. Authorization and Purpose of 2024 Bonds. The Authority has reviewed all proceedings heretofore taken relative to the authorization of the 2024 Bonds and has found, as a result of such review, and hereby finds and determines that all acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in the issuance of the 2024 Bonds do exist, have happened and have been performed in due time, form and manner as required by law, and that the Authority is now duly authorized to issue the 2024 Bonds in the form and manner provided herein for the purpose of providing funds to finance or refinance the costs of acquisition, construction, installation and improvement of the Project, and that the 2024 Bonds shall be entitled to the benefit, protection and security of the provisions hereof.

SECTION 2.02. Execution of 2024 Bonds. The Chairman of the Authority is hereby authorized and directed to execute each of the 2024 Bonds on behalf of the Authority and the Secretary of the Authority is hereby authorized and directed to countersign each of the 2024 Bonds on behalf of the Authority and to impress the seal of the Authority thereon. The signatures of such Chairman and Secretary may be by printed, lithographed or engraved by facsimile reproduction.

In case any officer whose signature appears on the 2024 Bonds shall cease to be such officer before the delivery of the 2024 Bonds to the purchaser thereof, such signature shall nevertheless be valid and sufficient for all purposes as if such officer had remained in office until such delivery of the 2024 Bonds.

Only those 2024 Bonds bearing thereon a certificate of authentication and registration in substantially the forms set forth in Exhibit A hereto, executed manually and dated by the Trustee, shall be entitled to any benefit, protection or security hereunder or be valid or obligatory for any purpose, and such certificate of the Trustee shall be conclusive evidence that the 2024 Bonds so authenticated and registered have been duly authorized, executed, issued and delivered hereunder and are entitled to the benefit, protection and security hereof.

SECTION 2.03. Transfer and Payment of Bonds. Any Bond may, in accordance with its terms, be transferred in the books required to be kept pursuant to the provisions of Section

2.08 by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender, at the Corporate Trust Office of the Trustee, of such Bond for cancellation accompanied by delivery of a duly executed written instrument of transfer in a form approved by the Trustee. Whenever any Bond or Bonds shall be surrendered for transfer, the Authority shall execute and the Trustee shall authenticate and deliver a new Bond or Bonds of a like aggregate principal amount of the same maturity and series. The Trustee shall require the payment by the City Council 38 – 110 6/4/2024
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13 Owner requesting such transfer of any tax or other governmental charge required to be paid with respect to such transfer as a condition precedent to the exercise of such privilege.

The Authority and the Trustee may deem and treat the Owner of any Bond as the absolute owner of such Bond for the purpose of receiving payment thereof and for all other purposes, whether such Bond shall be overdue or not, and neither the Authority nor the Trustee shall be affected by any notice or knowledge to the contrary; and payment of the interest on and principal of and redemption premium, if any, on such Bond shall be made only to such Owner, which payments shall be valid and effectual to satisfy and discharge liability on such Bond to the extent of the sum or sums so paid.

The transfer of any Bond is limited as described in the following Section.

SECTION 2.04. Exchange of Bonds. Bonds may be exchanged at the Corporate Trust Office of the Trustee for a like aggregate principal amount of Bonds of the same series and maturity of other Authorized Denominations. The Trustee shall require the payment by the Owner requesting such exchange of any tax or other governmental charge required to be paid with respect to such exchange as a condition precedent to the exercise of such privilege.

The Trustee shall not be required to register the transfer or the exchange of any Bond (i) during any period commencing with the close of business on the fifteenth (15) day next preceding any interest payment date and ending on such interest payment date, (ii) during the period established for selection of Bonds for redemption, or (iii) which has been selected for redemption in whole or in part.

SECTION 2.05. Bond Registration Books. The Trustee will keep at its office sufficient books for the registration and transfer of the Bonds which shall at all times be open to inspection by the Authority during normal business hours with reasonable prior notice, and upon presentation for such purpose the Trustee shall, under such reasonable regulations as it may prescribe, register or transfer the Bonds in such books as hereinabove provided.

SECTION 2.06. Mutilated, Destroyed, Stolen or Lost Bonds. If any Bond shall become mutilated, the Trustee, at the expense of the Owner thereof, shall thereupon authenticate and deliver a new Bond of like series, maturity and Authorized Denomination in exchange and substitution for the Bond so mutilated, but only upon surrender, at the Corporate Trust Office of the Trustee, of the Bond so mutilated. Every mutilated Bond so surrendered to the Trustee shall be cancelled by the Trustee and delivered to, or upon the order of, the Authority.

If any Bond shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Trustee and, if such evidence be satisfactory to the Trustee and indemnity satisfactory to the Trustee shall be given, the Trustee, at the expense of the Owner, shall thereupon authenticate and deliver a new Bond of like series, maturity and Authorized Denomination in lieu of and in substitution for the Bond so lost, destroyed or stolen.

The Trustee may require payment of a reasonable sum for each new Bond issued under this Section and of the expenses which may be incurred by the Authority and the Trustee in the premises. Any Bond issued under the provisions of this Section in lieu of any Bond alleged to be lost, destroyed or stolen shall be equally and proportionately entitled to the benefits of this City Council 38 – 111 6/4/2024
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14 Indenture with all other Bonds secured by this Indenture. Neither the Authority nor the Trustee shall be required to treat both the original Bond and any replacement Bond as being Outstanding for the purpose of determining the principal amount of Bonds which may be issued hereunder or for the purpose of determining any percentage of Bonds Outstanding hereunder, but both the original and replacement Bond shall be treated as one and the same.

SECTION 2.07. Temporary Bonds. The Bonds issued under this Indenture may be initially issued in temporary form exchangeable for definitive Bonds when ready for delivery. The temporary Bonds may be printed, lithographed or typewritten, shall be of such denominations as may be determined by the Authority, shall be in fully registered form and may contain such reference to any of the provisions of this Indenture as may be appropriate. Every temporary Bond shall be executed and authenticated in accordance with the terms hereof. If the Authority issues temporary Bonds it will execute and furnish definitive Bonds without delay and thereupon the temporary Bonds shall be surrendered, for cancellation, at the Corporate Trust Office of the Trustee, and the Trustee shall deliver in exchange for such temporary Bonds an equal aggregate principal amount of definitive Bonds of Authorized Denominations. Until so exchanged, the temporary Bonds shall be entitled to the same benefits under this Indenture as definitive Bonds delivered hereunder.

SECTION 2.08. Validity of Bonds. From and after the issuance of the Bonds the findings and determinations of the Authority respecting the Bonds shall be conclusive evidence of the existence of the facts so found and determined in any action or proceeding in any court in which the validity of the Bonds shall be required to see to the existence of any fact or to the performance of any condition or to the taking of any proceeding required prior to such issuance or to the application of the proceeds of sale of the Bonds. The validity of the issuance of the Bonds shall not be dependent on or affected in any way by the proceedings taken by the Authority for the financing of refinancing of the Project or by any contracts made by the Authority or its agents in connection therewith, and shall not be dependent upon the completion of the acquisition or installation of the Project or upon the performance by any person, firm or authority of his or its obligation with respect thereto. The recital contained in the Bonds that the same are issued pursuant hereto shall be conclusive evidence of their validity and of the regularity of their issuance, and all Bonds shall be incontestable from and after their issuance. The Bonds shall be deemed to be issued, within the meaning hereof, whenever the definitive Bonds (or any temporary Bonds exchangeable therefor) shall have been delivered to the purchaser thereof and the proceeds of sale thereof received.

SECTION 2.09. Book-Entry System.
(a) Prior to the execution and delivery of the 2024 Bonds or any Additional Bonds executed and delivered hereunder, the Authority may provide that such Bonds shall be initially executed and delivered as Book-Entry Bonds, and in such event, the Bonds for each principal payment date of such Bonds shall be in the form of a separate single fully registered Bond (which may be typewritten). Upon initial execution and delivery, the ownership of each such Bond shall be registered in the bond register in the name of the Nominee, as nominee of the Depository.

Payment of principal or interest for any Book-Entry Bonds registered in the name of the Nominee shall be made on the payment date by wire transfer of New York clearing house or equivalent next day funds or by wire transfer of same day funds to the account of the Nominee. Such payments City Council 38 – 112 6/4/2024
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15 shall be made to the Nominee at the address which is, on the regular Record Date or special record date, as the case may be, shown for the Nominee in the bond register of the Trustee. (b) With respect to Book-Entry Bonds, the City, the Authority and the Trustee shall have no responsibility or obligation to any Participant or to any person on behalf of which such a Participant holds an interest in such Book-Entry Bonds. Without limiting the immediately preceding sentence, the City, the Authority and the Trustee shall have no responsibility or obligation with respect to (i) the accuracy of the records of the Depository, the Nominee, or any Participant with respect to any ownership interest in Book-Entry Bonds, (ii) the delivery to any Participant or any other person, other than an Owner as shown in the bond register, of any notice with respect to Book-Entry Bonds, including any notice of prepayment, (iii) the selection by the Depository and its Participants of the beneficial interests in Book-Entry Bonds to be redeemed in the event the Authority redeems Bonds in part, (iv) the payment to any Participant or any other person, other than an Owner as shown in the bond register, of any amount with respect to principal, premium, if any, or interest evidenced and represented by Book-Entry Bonds, or (v) any consent given or other action taken by the Depository as Owner. (c) The City, the Authority and the Trustee may treat and consider the person in whose name each Book-Entry Bond is registered in the bond register as the absolute Owner of such BookEntry Bond for the purpose of payment of principal, redemption premium, if any, and interest with respect to such Bond, for the purpose of selecting any Bonds, or portions thereof to be redeemed, for the purpose of giving notices of redemption and other matters with respect to such Bond, for the purpose of registering transfers with respect to such Bond, for the purpose of obtaining any consent or other action to be taken by Owners and for all other purposes whatsoever and the City, the Authority and the Trustee shall not be affected by any notice to the contrary. (d) In the event of a redemption or any other early withdrawal (e.g., tenders made and accepted in response to the Trustee’s invitation at the direction of the Authority) necessitating a reduction in aggregate principal amount of Bonds Outstanding, or a redemption of part of the Bonds Outstanding, the Depository, in its discretion, (i) may request the Trustee to execute and deliver a new Bond or (ii) if DTC is the sole owner of the Bonds, shall make an appropriate notation on the Bond indicating the date and amounts of such reduction in principal except in the case of final maturity, in which case the Bond must be presented to the Trustee prior to payment. (e) The Trustee shall pay all principal, premium, if any, and interest evidenced and represented by the Bonds only to the respective Owner, as shown in the bond register, or his or her attorney duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the City’s obligations with respect to payment of principal, redemption premium, if any, and interest evidenced and represented by the Bonds to the extent of the sum or sums so paid. No person other than an Owner, as shown in the bond register, shall receive a Bond evidencing the obligation to make payments of principal, redemption premium, if any, and interest evidenced and represented by the Bonds. Upon delivery by the Depository to the Owner, the Trustee, the Authority and the City of written notice to the effect that the Depository has determined to substitute a new nominee in place of the Nominee, and subject to the provisions herein with respect to record dates, the word Nominee in this Indenture shall refer to such nominee of the Depository.

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16 (f) In order to qualify the Book-Entry Bonds for the Depository’s book-entry system, the Trustee shall execute and deliver to the Depository a Letter of Representations. The execution and delivery of a Letter of Representations shall not in any way impose upon the Authority, the City or the Trustee any obligation whatsoever with respect to persons having interests in such Book-Entry Bonds other than the Owners, as shown on the bond register of the Trustee. Such Letter of Representations may provide the time, form, content, and manner of transmission, of notices to the Depository. In addition to the execution and delivery of a Letter of Representations by the Trustee, the Authority and the Trustee shall take such other actions, not inconsistent with this Indenture, as are reasonably necessary to qualify Book-Entry Bonds for the Depository’s book-entry program.
(g) In the event the Authority determines that it is in the best interest of the Beneficial Owners that they be able to obtain certificated Bonds and that such Bonds should therefore be made available and notifies the Depository and the Trustee of such determination, the Depository will notify the Participants of the availability through the Depository of certificated Bonds. In such event, the Trustee shall transfer and exchange certificated Bonds as requested by the Depository and any other Owners in appropriate amounts. In the event (i) the Depository determines not to continue to act as Depository for Book-Entry Bonds, or (ii) the Depository shall no longer so act and gives notice to the Trustee of such determination, then the Authority will discontinue the BookEntry system with the Depository. If the Authority determines to replace the Depository with another qualified Depository, the Authority shall prepare or direct the preparation of a new single, separate, fully registered Bond for each of the Principal Payment Dates of such Book-Entry Bonds, registered in the name of such successor or substitute qualified Depository or its nominee. If the Authority fails to identify another qualified Depository to replace the Depository, then the Bonds shall no longer be restricted to being registered in such bond register in the name of the Nominee, but shall be registered in whatever name or names the Owners transferring or exchanging such bonds shall designate, in accordance with the provisions of Sections 2.06, 2.07 and 2.08 hereof.

Whenever the Depository requests the Authority to do so, the Authority will cooperate with the Depository in taking appropriate action after reasonable notice (i) to make available one or more separate Bonds evidencing the Book-Entry Bonds to any Participant having Book-Entry Bonds credited to its account with the Depository, and (ii) to arrange for another Depository to maintain custody of Bonds evidencing the Book-Entry Bonds.
(h) Notwithstanding any other provision of this Indenture to the contrary, so long as any Book-Entry Bond is registered in the name of DTC, or its nominee, all payments with respect to principal, redemption premium, if any, and interest evidenced and represented by such Bond and all notices with respect to such Bonds shall be made and given, respectively, as provided in the Letter of Representations or as otherwise instructed by the Depository. (i) In connection with any notice or other communication to be provided to Owners pursuant to this Indenture by the Authority or the Trustee, at the direction of the Authority, with respect to any consent or other action to be taken by the Owners, the Authority or the Trustee, as the case may be, shall establish a record date for such consent or other action and give the Depository notice of such record date not less than fifteen (15) calendar days in advance of such record date to the extent possible. Notice to the Depository shall be given only when DTC is the sole Owner of the Bonds. If the Authority determines to invite Owners of Bonds to tender Bonds, and will pay for the same with funds other than moneys in a Sinking Account as hereinafter City Council 38 – 114 6/4/2024
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17 defined, the Authority shall give the Trustee not less than fourteen (14) days’ advance notice of such invitation to tender, together with a copy of the tender notice to be distributed to the Owners.

Such notice shall specify the terms of the tender and the publication date of notice of such tender.

The Trustee shall send such notice to DTC by a secure means (e.g., legible facsimile transmission, registered or certified mail, overnight express delivery) in a timely manner designed to assure that such notice is in DTC’s possession no later than the close of business on the Business Day before the date for mailing of such notice. (The Trustee shall have a method to verify subsequently the use of such means and timeliness of the notice.) The Trustee shall credit any Bonds so tendered against such of the mandatory sinking account payments of the maturity tendered as shall be designated by the Authority.

SECTION 2.10. Procedure for Issuance of 2024 Bonds. The Authority may, at any time, execute the 2024 Bonds for issuance hereunder and deliver them to the Trustee, and thereupon the 2024 Bonds shall be authenticated and delivered by the Trustee to the purchasers thereof upon the Written Request of the Authority and upon receipt of payment therefor from the purchasers thereof.

ARTICLE III
TERMS OF 2024 BONDS
SECTION 3.01. Terms of 2024 Bonds.
(a) The 2024 Bonds shall be designated “Santa Ana Public Financing Authority Water Revenue Bonds, Series 2024 (Payable Solely from Installment Payments Secured by Water System Net Revenues)” and shall be in the aggregate principal amount of $___________. The 2024 Bonds shall be dated their date of delivery, shall be issued only in fully registered form in Authorized Denominations (not exceeding the principal amount of 2024 Bonds maturing at any one time), and shall mature on the dates and in the principal amounts and shall bear interest at the rates as set forth in the following schedule:

Maturity Date
(September 1)
Principal
Amount
Interest
Rate
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18 Subject to the Letter of Representations, the principal of and redemption premiums, if any, on the 2024 Bonds shall be payable in lawful money of the United States of America at the Corporate Trust Office of the Trustee upon presentation and surrender of such 2024 Bonds. (b) (i) The 2024 Bonds shall bear interest at the rates set forth in Section

3.01(a) above, payable on the Interest Payment Dates in each year, commencing on March 1, 2025.

Each 2024 Bond shall bear interest from the Interest Payment Date next preceding the date of authentication thereof, unless such date of authentication is during the period commencing after a Record Date through and including the next succeeding Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or unless such date of authentication is on or before the first Record Date, in which event it shall bear interest from its date of delivery; provided, however, that if on the date of authentication of any 2024 Bonds, interest is then in default on the Outstanding 2024 Bonds, such 2024 Bonds shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment on the Outstanding 2024 Bonds.
(ii) Payment of interest on the 2024 Bonds due on or before the maturity or prior redemption thereof shall be made to the person in whose name such 2024 Bonds is registered, as of the Record Date preceding the applicable Interest Payment Date, on the registration books kept by the Trustee pursuant to Section 2.05 hereof, such interest to be paid by check mailed by first class mail on such Interest Payment Date to such Owner at his address as it appears on such books; provided, that in the event the ownership of such 2024 Bonds is no longer maintained in book-entry form by the Depository, such payment shall be made by wire transfer to any Owner of at least $1,000,000 in aggregate principal amount of 2024 Bonds, in immediately available funds to an account in the United States designated in writing by such Owner to the Trustee prior to the applicable Record Date. Interest on the 2024 Bonds shall be payable in lawful money of the United States of America and shall be calculated on the basis of a 360 day year consisting of twelve 30 day months.

SECTION 3.02. Redemption of 2024 Bonds.
(a) Optional Redemption. 2024 Bonds maturing on or after September 1, _____, shall be subject to redemption, at the option of the Authority, upon at least 45 days prior written notice to the Trustee specifying the date and amount of such redemption, in whole or in part, on any date on or after September 1, ____ (by lot within any maturity and among maturities as specified by the Authority) at a redemption price equal to 100% of the principal amount of Bonds to be redeemed together with accrued interest to the date of redemption without premium. (b) Mandatory Sinking Fund Redemption.

The 2024 Bonds maturing on September 1, 20__ are subject to mandatory sinking fund redemption prior to maturity, in part, on September 1, 20__, and on each September 1 thereafter to maturity by lot, from sinking fund payments at a redemption price equal to the principal amount of such 2024 Bonds to be redeemed, together with accrued interest to the date of redemption, without premium, as follows:

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19 Bonds Maturing on September 1, 20__
Redemption Date
(September 1) Sinking Fund Payment
$
(final maturity)
The amounts in the foregoing schedule shall be reduced in any manner selected by the Authority, as a result of any prior or partial redemption of the Bonds pursuant to subsections (a) of this section.
(c) In lieu of payment at maturity or redemption under this Section 3.02, moneys in the Bond Fund may be used and withdrawn by the Trustee for purchase of Outstanding Bonds, upon the filing with the Trustee of a Certificate of the City requesting such purchase, at public or private sale as and when, and at such prices (including brokerage and other charges) as such Certificate of the City may provide, but in no event may Bonds be purchased at a price in excess of the principal amount thereof, plus interest accrued to the date of purchase. (d) Notice of redemption shall be given by the Trustee, not less than 30 nor more than 60 days prior to the redemption date to (i) the respective Owners of the 2024 Bonds designated for redemption at their addresses appearing on the registration books of the Trustee by first class mail and (ii) the Securities Depositories and the Information Services by certified or registered mail or overnight delivery. Each notice of redemption shall state the date of such 2024 Bonds the CUSIP number (if any) of the maturity or maturities, and, if less than all of any such maturity is to be redeemed, the distinctive certificate numbers of the 2024 Bonds of such maturity, to be redeemed and, in the case of 2024 Bonds to be redeemed in part only, the respective portions of the principal amount thereof to be redeemed. Each such notice shall also state that on said date there will become due and payable on each of said 2024 Bonds thereof and in the case of a 2024 Bond to be redeemed in part only, the specified portion of the principal amount thereof to be redeemed, together with interest accrued thereon to the redemption date, and that from and after such redemption date interest thereon shall cease to accrue, and shall require that such 2024 Bonds be then surrendered at the address of the Trustee specified in the redemption notice. (e) If notice of redemption has been duly given as aforesaid and money for the payment of the redemption price of the 2024 Bonds called for redemption is held by the Trustee, then on the redemption date designated in such notice 2024 Bonds shall become due and payable, and from and after the date so designated interest on the 2024 Bonds so called for redemption shall cease to accrue, and the Owners of such 2024 Bonds shall have no rights in respect thereof except to receive payment of the redemption price thereof.
(f) Failure by the Trustee to give notice pursuant to this Section to any one or more of the Information Services or Securities Depositories, or the insufficiency of any such notice shall not affect the sufficiency of the proceedings for redemption. Failure by the Trustee to mail notice of redemption pursuant to this Section to any one or more of the respective Owners of any 2024 City Council 38 – 117 6/4/2024
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20 Bonds designated for redemption shall not affect the of the proceedings for redemption with the Owners to whom such notice was mailed.
(g) With respect to any notice of optional redemption of the 2024 Bonds, such notice shall state that such redemption shall be conditional upon the receipt by the Trustee on or prior to the date fixed for such redemption of moneys sufficient to pay the principal of, premium, if any, and interest on such 2024 Bonds to be redeemed and that, if such moneys shall not have been so received, said notice shall be of no force and effect and the Trustee shall not be required to redeem such 2024 Bonds. In the event that such notice of redemption contains such a condition and such moneys are not so received, the redemption shall not be made, and the Trustee shall within a reasonable time thereafter give notice in the manner in which the notice of redemption was given, that such moneys were not so received.
(h) All 2024 Bonds redeemed pursuant to the provisions of this Section or Section

6.03(b) shall be cancelled by the Trustee and shall not be reissued, and the Trustee shall deliver a certificate of cancellation to the Authority. In the event of an optional redemption pursuant to Section 3.02(a), the Authority shall provide the Trustee with a revised sinking fund schedule giving effect to the optional redemption so completed.

SECTION 3.03. Form of 2024 Bonds. The 2024 Bonds and the authentication and registration endorsement and assignment to appear thereon shall be substantially in the form set forth on Exhibit A.

ARTICLE IV

ISSUANCE OF ADDITIONAL BONDS
SECTION 4.01. Conditions for the Issuance of Additional Bonds. The Authority may at any time issue Additional Bonds payable from the Revenues as provided herein and secured by a pledge of the Revenues as provided herein equal to the pledge securing the Outstanding Bonds theretofore issued hereunder, but only subject to the following specific conditions, which are hereby made conditions precedent to the issuance of any such Additional Bonds:
(a) The Authority shall be in compliance with all agreements and covenants contained herein and all agreements and covenants contained in the Installment Purchase Agreement.
(b) The Authority shall have satisfied the requirements set forth in Section 5.03 of the Installment Purchase Agreement.
(c) The issuance of such Additional Bonds shall have been authorized by the Authority and shall have been provided for by Supplemental Indenture which shall specify the following:
(1) The purpose for which such Additional Bonds are to be issued; provided that such Additional Bonds shall be applied solely for the purpose of (i) financing or refinancing additional improvements to the Project, including payment City Council 38 – 118 6/4/2024
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21 of all costs incidental to or connected with such financing or refinancing, and/or (ii) refunding any Bonds then Outstanding;
(2) The authorized principal amount and designation of such Additional Bonds;
(3) The dated date and the maturity dates of, and the sinking fund payment dates, if any, for such Additional Bonds;
(4) The interest payment dates for such Additional Bonds, which shall be Interest Payment Dates;
(5) That such Additional Bonds shall be issued only in Authorized Denominations;
(6) The redemption premiums, if any, and the redemption terms, if any, for such Additional Bonds;
(7) The amount; if any, to be deposited from the proceeds of sale of such Additional Bonds in the Interest Account;
(8) The amount, if any, to be deposited from the proceeds of sale of such Additional Bonds in an acquisition fund or construction fund to be established; (9) The Authority may but shall not be required to fund a reserve fund or obtain a reserve fund surety or instrument with respect to any Parity Obligations.

If a reserve fund is funded for any Additional Bonds or a qualified reserve fund surety or instrument is obtained with respect to any Additional Bonds, such funded reserve fund or qualified reserve fund surety or instrument shall secure only the related Additional Bonds and shall not support the 2024 Bonds or any other Additional Bonds;
(10) The forms of such Additional Bonds; and
(11) Such other provisions as are necessary or appropriate and not inconsistent herewith.
(d) The Installment Purchase Agreement shall have been amended so as to increase the Installment Payments by the City thereunder by an amount at least sufficient to pay the interest on and principal of such Additional Bonds as the same become due.

Nothing contained herein shall limit the issuance of any revenue bonds of the Authority payable from the Revenues and secured by a pledge of the Revenues if after the issuance and delivery of such revenue bonds none of the Bonds theretofore issued hereunder will be Outstanding.

SECTION 4.02. Procedure for the Issuance of Additional Bonds. The Authority may, at any time, execute Additional Bonds for issuance hereunder and deliver them to the Trustee, City Council 38 – 119 6/4/2024
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22 and thereupon such Additional Bonds shall be authenticated and delivered by the Trustee to the purchaser thereof upon the Written Request of the Authority, but only upon receipt by the Trustee of the following documents or money or securities, all of such documents dated or certified, as the case may be, as of the date of delivery of such Additional Bonds by the Trustee (unless the Authority shall accept any of such documents bearing a prior date):
(a) An executed copy of the Supplemental Indenture authorizing the issuance of such Additional Bonds;
(b) A Written Request of the Authority as to the delivery of such Additional Bonds; (c) An opinion of Bond Counsel to the effect that (1) the Authority and the Trustee have the right and power to execute and deliver the Supplemental Indenture and the Supplemental Indenture has been duly and lawfully executed and delivered by the Authority and the Trustee, is in full force and effect and is valid and binding upon the Authority and the Trustee and enforceable in accordance with its terms (except as enforcement may be limited by bankruptcy, insolvency, reorganization and other similar laws relating to the enforcement of creditors’ rights and by equitable principles) and no other authorization for the execution and delivery thereof is required, (2) the Supplemental Indenture creates the valid pledge of the Revenues which it purports to create as provided therein, subject to the application thereof to the purposes and on the conditions permitted hereby, (3) such Additional Bonds are valid and binding special obligations of the Authority, enforceable in accordance with their terms (except as enforcement may be limited by bankruptcy, insolvency, reorganization and other similar laws relating to the enforcement of creditors’ rights and by equitable principles) and the terms hereof and entitled to the benefits hereof, and such Additional Bonds have been duly and validly authorized, executed, issued and delivered in accordance herewith, (4) the amendment to the Installment Purchase Agreement required by Section 4.01(d) has been duly authorized, executed and delivered and is valid and binding upon the Authority and the City and enforceable in accordance with its terms (except as enforcement may be limited by bankruptcy insolvency, reorganization and other similar laws relating to the enforcement of creditors’ rights and by equitable principles), and (5) the issuance of such Additional Bonds will not adversely affect the exclusion from gross income for federal tax purposes of interest on any Outstanding Bonds which purport to bear interest which is excluded from gross income pursuant to Section 103 of the Code;
(d) A Certificate of the Authority containing such statements as may be reasonably necessary to show compliance with the conditions for the issuance of such Additional Bonds contained herein; and
(e) Such further documents, opinions, money or securities as are required by the provisions of the Supplemental Indenture providing for the issuance of such Additional Bonds.

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23 ARTICLE V
ESTABLISHMENT OF FUNDS; DEPOSIT AND

APPLICATION OF PROCEEDS
SECTION 5.01. Establishment of Funds and Accounts.
(a) The Trustee shall establish and maintain a special trust fund to be held by the Trustee called the “City of Santa Ana Water System Improvement Project Payment Fund” (the “Payment Fund”). Within the Payment Fund, the Trustee shall establish and maintain an Interest Account (the “Interest Account”), a Principal Account (the “Principal Account”), a Sinking Account (the “Sinking Account”), and a Redemption Account (the “Redemption Account”). (b) The Trustee shall establish and maintain a special trust fund to be held by the Trustee called the “City of Santa Ana Costs of Issuance Fund” (the “Costs of Issuance Fund”). (c) The Authority shall establish and maintain a special trust fund to be held by the Treasurer called the “City of Santa Ana Acquisition Fund” (the “Acquisition Fund”).

SECTION 5.02. Application of Proceeds. Upon the receipt of payment for the 2024 Bonds on the Closing Date, the Trustee and the Authority shall apply the proceeds thereof as follows:
(i) The Trustee shall transfer $______________ to the Escrow Agent for deposit in the escrow fund established under the Escrow Agreement; (ii) The Trustee shall transfer to the Treasurer the amount of $_______________ for deposit in the Acquisition Fund; and (iii) The Trustee shall deposit the amount of $__________ to the Costs of Issuance Fund.

For record keeping purposes, the Trustee may establish such accounts as may be necessary to reflect such transfer of proceeds.

SECTION 5.03. Use of Moneys in the Acquisition Fund; Costs of Issuance Fund. (a) The Treasurer shall hold the moneys in the Acquisition Fund and shall disburse such moneys therefrom to pay Acquisition Costs. Such disbursements shall be made from time to time upon receipt of a Written Request of the City on behalf of the Authority which: (a) states with respect to each disbursement to be made: (i) the requisition number, (ii) the name and address of the person, firm or authority to whom payment is due, (iii) the amount to be disbursed, and (iv) that each obligation therein has been properly incurred, and is a proper charge against the Acquisition Fund and has not been the basis of any previous disbursement; (b) specifies in reasonable detail the nature of the obligation; and (c) is accompanied by a bill or statement of account for each obligation.

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24 (b) If, after payment by the Treasurer of all Written Requests of the City on behalf of the Authority theretofore tendered to the Treasurer under the provisions of this Section and delivery to the Treasurer and the Trustee of a Certificate of Completion, there shall remain any balance of money in the Acquisition Fund, all money so remaining shall be transferred to the Trustee and deposited to the accounts of the Payment Fund as directed by the Authority. (c) The moneys in the Costs of Issuance Fund shall be disbursed from time to time to pay Costs of Issuance. The Trustee shall disburse moneys in the Costs of Issuance Fund from time to time upon receipt by the Trustee of a Written Request of the Authority which: (a) states with respect to each disbursement to be made: (i) the requisition number, (ii) the name and address of the person, firm or corporation to whom payment is due, (iii) the amount to be disbursed, and (iv) that each obligation therein has been properly incurred, and is (a) a proper charge against the Costs of Issuance Fund and has not been the basis of any previous disbursement; (b) specifies in reasonable detail the nature of the obligation; and (c) is accompanied by a bill or statement of account for each obligation. Each such Written Request of the Authority shall be sufficient evidence to the Trustee of the facts stated therein and the Trustee shall have no duty to confirm the accuracy of such facts.

The Trustee shall hold the moneys in the Costs of Issuance Fund and disburse such moneys therefrom in accordance with this Section.

Upon the earlier of the date six months after the Closing Date for the related Series of Bonds or the date of receipt of a Certificate of the Authority stating that all Costs of Issuance have been paid, the Trustee shall transfer any amounts then remaining in the Costs of Issuance Fund to the Acquisition Fund; provided that investment earnings may be transferred to the Rebate Fund as provided in Section 7.02.

ARTICLE VI

REVENUES
SECTION 6.01. Pledge of Revenues. All Revenues and amounts on deposit in the funds and accounts established hereunder (other than amounts on deposit in the Costs of Issuance Fund under Section 5.02 hereof and the Rebate Fund created pursuant to Section 7.02) are hereby irrevocably pledged to the payment of the interest on and principal of the Bonds as provided herein, and the Revenues shall not be used for any other purpose while any of the Bonds remain Outstanding; provided, however, that out of the Revenues there may be allocated such sums for such purposes as are expressly permitted by Section 6.03.

In order to secure the pledge of the Revenues contained in this Section 6.01, the Authority hereby transfers, conveys and assigns to the Trustee, for the benefit of the Owners, all of the Authority’s rights under the Installment Purchase Agreement (excepting its right to indemnification thereunder), including the right to receive Installment Payments from the City, the right to receive any proceeds of insurance maintained thereunder or any condemnation award rendered with respect to the Project and the right to exercise any remedies provided therein in the event of a default by the City thereunder. The Trustee hereby accepts said assignment for the benefit of the Owners of the Bonds subject to the provisions of this Indenture.

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25 The Trustee shall be entitled to and shall receive all of the Revenues, and any Revenues collected or received by the Authority shall be deemed to be held, and to have been collected or received, by the Authority as agent of the Trustee and shall forthwith be paid by the Authority to the Trustee.

SECTION 6.02. Receipt and Deposit of Revenues in the Payment Fund. In order to carry out and effectuate the pledge contained herein, the Authority agrees and covenants that all Revenues when and as received shall be received in trust hereunder for the benefit of the Owners and shall be deposited when and as received in the Payment Fund. Subject to Section 6.05 hereof, all Revenues shall be accounted for through and held in trust in the Payment Fund, and the Authority shall have no beneficial right or interest in any of the Revenues except only as herein provided. All Revenues, whether received by the Authority in trust or deposited with the Trustee as herein provided, shall nevertheless be allocated, applied and disbursed solely to the purposes and uses hereinafter set forth in this Article, and shall be accounted for separately and apart from all other accounts, funds, money or other assets of the Authority.

SECTION 6.03. Establishment and Maintenance of Accounts for Use of Money in the Payment Fund. Subject to Section 7.02, all money in the Payment Fund shall be deposited by the Trustee in the following respective special accounts within the Payment Fund (each of which is hereby created and each of which the Trustee hereby covenants and agrees to maintain) in the following order of priority:
(a) Interest Account,
(b) Principal Account, and
(c) Redemption Account.

All money in each of such accounts shall be held in trust by the Trustee and shall be applied, used and withdrawn only for the purposes hereinafter authorized in this Section. (a) Interest Account. On or before each Interest Payment Date, the Trustee shall transfer from the Payment Fund and deposit in the Interest Account that amount of money which, together with any money contained in the Interest Account, is equal to the aggregate amount of interest becoming due and payable on all Outstanding Bonds on such Interest Payment Date. No deposit need be made in the Interest Account if the amount contained in the Interest Account is at least equal to the aggregate amount of interest becoming due and payable on all Outstanding Bonds on such Interest Payment Date.

All money in the Interest Account shall be used and withdrawn by the Trustee solely for the purpose of paying the interest on the Bonds as it shall become due and payable (including accrued interest on any Bonds purchased or redeemed prior to maturity). (b) Principal Account. On or before September 1 of each year, beginning September 1, 2024, the Trustee shall transfer from the Payment Fund and deposit in the Principal Account that amount of money which, together with any money contained in the Principal Account, is equal to the aggregate principal amount of all Outstanding Serial Bonds maturing on such September 1 plus the aggregate principal amount of all sinking City Council 38 – 123 6/4/2024
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26 fund payments required to be made with respect to Bonds on such September 1. No deposit need be made in the Principal Account if the amount contained therein is at least equal to the aggregate amount of the principal of all Outstanding Serial Bonds maturing by their terms on such September 1 plus the aggregate amount of all sinking fund payments required to be made on such September 1 for all Outstanding Term Bonds.

The Trustee shall establish and maintain within the Principal Account a separate subaccount for Bonds of each series and maturity, designated as the “Sinking Account” (the “Sinking Account”), inserting therein the series and maturity (if more than one such subaccount is established for such series) designation of such Bonds. With respect to each Sinking Account, on each mandatory sinking account payment date established for such Sinking Account, the Trustee shall apply the mandatory sinking account payment required on that date to the redemption (or payment at maturity, as the case may be) of Term Bonds of the series and maturity for which such Sinking Account was established, upon the notice and in the manner provided herein or in the Supplemental Indenture pursuant to which such series of Bonds were issued; provided that, at any time prior to the selection of Bonds for such redemption, at the written direction of the City or the Authority, the Trustee may apply moneys in such Sinking Account to the purchase of Term Bonds of such series and maturity at public or private sale, as and when and at such prices (including brokerage and other charges, but excluding accrued interest, which is payable from the Interest Account) as shall be determined by the Authority, except that the purchase price (excluding accrued interest) shall not exceed the redemption price that would be payable for such Bonds upon redemption by application of such mandatory sinking account payment. If, during the twelve month period immediately preceding the selection of Bonds for redemption, the Trustee has purchased Term Bonds of such series and maturity with moneys in such Sinking Account, such Bonds so purchased shall be applied, to the extent of the full principal amount thereof, to reduce said mandatory Sinking Account payment.

All money in the Principal Account shall be used and withdrawn by the Trustee solely for the purpose of paying the principal of the Bonds as they shall become due and payable, except that any money in any Sinking Account shall be used and withdrawn by the Trustee only to purchase or to redeem or to pay Term Bonds for which such Sinking Account was created.
(c) Redemption Account. In addition to the above accounts, the Trustee shall establish and maintain within the Payment Fund a special account designated the “Redemption Account.” All money in the Redemption Account shall be held in trust by the Trustee and shall be applied, used and withdrawn either to redeem bonds pursuant to Article 3 or for the purposes authorized in this subsection (c). Any moneys which, pursuant to Section 7.01 of the Installment Purchase Agreement, are to be used to redeem Bonds shall be deposited by the Trustee in the Redemption Account. The Trustee shall, on the scheduled redemption date, withdraw from the Redemption Account and pay to the Owners entitled thereto an amount equal to the redemption price of the Bonds to be redeemed on such date.
(d) Any delinquent Installment Payments with respect to the Project shall be applied first to the Interest Account for the immediate payment of interest payments past City Council 38 – 124 6/4/2024
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27 due and then to the Principal Account for immediate payment of principal payments past due according to the tenor of any Bond. Any remaining money representing delinquent Installment Payments shall be deposited in the Payment Fund to be applied in the manner provided therein.

SECTION 6.04. Investment of Moneys in Funds and Accounts. Moneys in the Acquisition Fund shall be accounted for and invested by the Treasurer in any legally permitted investment. Moneys in the Costs of Issuance Fund and the Payment Fund and any accounts therein shall, upon the Written Request of the City, on behalf of the Authority, be invested by the Trustee in Permitted Investments. In the absence of a Written Request of the City, the Trustee shall hold such funds uninvested pending the receipt of a Written Request of the City. The obligations in which moneys in the said funds and accounts are invested shall mature prior to the date on which such moneys are estimated to be required to be paid out hereunder. Prior to the completion of the acquisition, construction, installation and improvement of the Project, any interest, income or profits from the deposits or investments of all funds and accounts (except the Rebate Fund) shall be retained in such fund or account. After the completion of the acquisition, construction, installation and improvement of the Project, any interest, income or profits from the deposits or investments of all funds and accounts (except the Rebate Fund) shall be deposited to the Interest Account of the Payment Fund. The Trustee shall semiannually, on or about March 1 and September 1 of each year, commencing on September 1, _____, and at such times as the Authority shall deem appropriate, value the investments in the funds and accounts hereunder. Except as otherwise provided in this Section, Permitted Investments representing an investment of moneys attributable to any fund or account hereunder and all investment profits or losses thereon shall be deemed at all times to be a part of said fund or account. The Trustee may act as principal or agent in the acquisition or disposition of investments. For investment purposes only, the Trustee may commingle the funds and accounts established hereunder, except the Rebate Fund and any fund or account established pursuant to Article 11 hereof.

The Authority acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the Authority the right to receive brokerage confirmations of security transactions as they occur, the Authority specifically waives receipt of such confirmations to the extent permitted by law. The Trustee will furnish the Authority periodic cash transaction statements which include detail for all investment transactions made by the Trustee hereunder.

ARTICLE VII

COVENANTS OF THE AUTHORITY
SECTION 7.01. Punctual Payment and Performance. The Authority will punctually pay the interest on and the principal of and redemption premiums, if any, to become due on every Bond issued hereunder in strict conformity with the terms hereof and of the Bonds, and will faithfully observe and perform all the agreements and covenants contained herein and in the Bonds.

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28 SECTION 7.02. Tax Covenants; Rebate Fund.
(a) In addition to the other funds and accounts created pursuant hereto, the Trustee shall establish and maintain a fund separate from any other fund or account established and maintained hereunder designated the “Rebate Fund” (the “Rebate Fund”). Within the Rebate Fund, the Trustee shall maintain such accounts or subaccounts as are specified in a Written Request of the City to the Trustee pursuant to the Tax Certificate. The Trustee shall deposit moneys in the Rebate Fund made available by the Authority pursuant to a Written Request of the City. Subject to the transfer provisions provided in paragraph (e) below, all money at any time deposited in the Rebate Fund shall be held by the Trustee in trust, to the extent required to satisfy the Rebate Requirement (as such term is defined in the Tax Certificate), for payment to the federal government of the United States of America, and none of the City, the Authority, the Trustee nor the Owners of the Bonds shall have any right in or claim to such money. All amounts deposited into or on deposit in the Rebate Fund shall be governed by this Section and by the Tax Certificate (which is incorporated herein by reference). The Trustee shall be deemed conclusively to have complied with the provisions of this Section 7.02 and the Tax Certificate if it follows the Written Request of the City, including supplying all necessary information in the manner provided in the Tax Certificate, and except as otherwise expressly provided herein, shall not be required to take any actions hereunder in the absence of written directions by the City, and shall have no liability or responsibility to enforce compliance by the City with the terms of the Tax Certificate or this Section. The Trustee agrees to comply with all Written Requests of the City given in accordance with the Tax Certificate.
(b) Upon a Written Request of the City, an amount shall be deposited into the Rebate Fund by the Trustee from deposits by the City, if and to the extent required, so that the balance of the amount on deposit thereto shall be equal to the Rebate Requirement. Computations of the Rebate Requirement shall be furnished by or on behalf of the City in accordance with the Tax Certificate.
(c) The Trustee shall have no obligation to rebate any amounts required to be rebated pursuant to this Section, other than from moneys held in the funds and accounts created hereunder or from other moneys provided to it by the City or the Authority. (d) The Trustee shall invest all amounts held in the Rebate Fund in Permitted Investments as directed by a Written Request of the City, which directions shall be subject to the restrictions set forth in the Tax Certificate. Money, including investment earnings, shall not be transferred from the Rebate Fund except as provided in paragraph (e) below. (e) Upon receipt of a Written Request of the City, the Trustee shall remit part or all of the amounts in the Rebate Fund to the United States of America, as so directed. In addition, if the City so directs, the Trustee will deposit moneys into or transfer moneys out of the Rebate Fund from or into such accounts or fund as directed by the Written Request of the City. Any amounts remaining in the Rebate Fund after payment or prepayment of all of the Bonds and payment and satisfaction of any Rebate Requirement, or provision made therefor satisfactory to the Trustee, shall, after payment all fees and expenses of the Trustee, be withdrawn and remitted to the City.

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29 (f) Notwithstanding any other provision hereof, including, in particular, Article 12, the obligation to remit the Rebate Requirement to the United States and to comply with all other requirements of this Section and the Tax Certificate shall survive the defeasance or payment in full of the Bonds.
(g) The Authority shall not use or permit any proceeds of the 2024 Bonds or any funds of the Authority, directly or indirectly, to acquire any securities or obligations, and shall not take or permit to be taken any other action or actions, which would cause any 2024 Bonds to be an “arbitrage bond” within the meaning of the Code or “federally guaranteed” within the meaning of Section 149(b) of the Code and any such applicable regulations promulgated from time to time thereunder and under Section 103(c) of the Code. The Authority shall observe and not violate the requirements of Section 148 of the Code and any such applicable regulations. The Authority shall comply with all requirements of Sections 148 and 149(b) of the Code to the extent applicable to the 2024 Bonds.
(h) The Authority specifically covenants to comply with the provisions and procedures of the Tax Certificate.
(i) The Authority shall not use or permit the use of any proceeds of the 2024 Bonds or any funds of the Authority, directly or indirectly, in any manner, and shall not take or omit to take any action that would cause any of the 2024 Bonds to be treated as an obligation not described in Section 103(a) of the Code.
(j) Notwithstanding any provisions of this Section 7.02, if the Authority shall provide to the Trustee an opinion of Bond Counsel to the effect that any specified action required under this Section 7.02 is no longer required or that some further or different action is required to maintain the exclusion from gross income for federal income tax purposes of interest with respect to the 2024 Bonds, the Trustee, the Authority and the City may conclusively rely on such opinion in complying with the requirements of this Section and, notwithstanding Article 8 hereof, the covenants hereunder shall be deemed to be modified to that extent.

SECTION 7.03. Eminent Domain. If the whole of the Project or so much thereof as to render the remainder unusable for the purposes for which it was used or intended to be used by the City shall be taken under the power of eminent domain, the Installment Purchase Agreement shall cease as of the day that possession shall be so taken. The Authority shall take or cause to be taken such action as is reasonably necessary to obtain compensation at least equal to the value of the Project or portion thereof taken by eminent domain. If less than the whole of the Project shall be taken under the power of eminent domain and the remainder is usable for the purposes for which it was used by the City at the time of such taking, then the Installment Purchase Agreement shall continue in full force and effect as to such remainder, and the parties thereto waive the benefits of any law to the contrary. So long as any of the Bonds shall be Outstanding, the net proceeds of any award made in eminent domain proceedings for taking the Project or any portion thereof shall be transferred to the Payment Fund. Any such award made after all of the Bonds have been fully paid and retired and all fees and expenses of the Trustee have been fully paid shall be paid to the City.

SECTION 7.04. Accounting Records and Reports. The Authority will keep or cause to be kept proper books of record and accounts in which complete and correct entries shall City Council 38 – 127 6/4/2024
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30 be made of all transactions relating to the receipts, disbursements, allocation and application of the Revenues, and such books shall be available for inspection by the Trustee, at reasonable hours and under reasonable conditions. Not more than 270 days after the close of each Fiscal Year, the Authority shall furnish or cause to be furnished to the Trustee a complete financial statement covering receipts, disbursements, allocation and application of Revenues for such Fiscal Year, and including a statement of net position and a statement of net activities. The Authority shall also keep or cause to be kept such other information as is required under the Tax Certificate.

SECTION 7.05. The City’s Budgets. The Authority will supply to the Trustee, as soon as practicable after the beginning of each Fiscal Year but in any event no later than September 1 of each Fiscal Year, a Certificate of the City certifying that the City has made adequate provision in its annual budget for such Fiscal Year for the payment of all installments due under the Installment Purchase Agreement in such Fiscal Year. If the amounts so budgeted are not adequate for the payment of all installments due under the Installment Purchase Agreement in such Fiscal Year, the Authority will take such action as may be necessary and within its power to cause such annual budget to be amended, corrected or augmented so as to include therein the amounts required to be paid by the City in such Fiscal Year for the payment of all installments due under the Installment Purchase Agreement in such Fiscal Year, and will notify the Trustee of the proceedings then taken or proposed to be by the Authority.

SECTION 7.06. Installment Purchase Agreement and Other Documents. The Authority will at all times maintain and vigorously enforce all of its rights under the Installment Purchase Agreement, and will promptly collect all installments due for the purchase of the Project as the same become due under the Installment Purchase Agreement, and will promptly and vigorously enforce its rights against any person who does not pay such installments as they become due under the Installment Purchase Agreement. The Authority will not do or permit anything to be done, or omit or refrain from doing anything, in any case where any such act done or permitted to be done, or any such omission of or refraining from action, would or might be a ground for cancellation or termination of the Installment Purchase Agreement by the purchaser thereunder.

SECTION 7.07. Other Liens. The Authority will keep the Project free from judgments, mechanics’ and materialmen’s liens (except those arising from the acquisition, construction and installation of the Project) and free from all liens, claims, demands and encumbrances of whatsoever prior nature or character to the end that the security for the Bonds provided herein will at all times be maintained and preserved free from any claim or liability which, in the judgment of the Trustee (whose determination shall be final), might hamper the Authority in conducting its business or interfere with the City’s operation of the Project, and the Trustee at its option (after first giving the Authority ten days’ written notice to comply therewith and failure of the Authority to so comply within such period) may (but shall not be obligated to) defend against any and all actions or proceedings in which the validity hereof is or might be questioned, or may pay or compromise any claim or demand asserted in any such action or proceeding; provided, however, that in defending such actions or proceedings or in paying or compromising such claims or demands the Trustee shall not in any event be deemed to have waived or released the Authority from liability for or on account of any of its agreements and covenants contained herein, or from its liability hereunder to defend the validity hereof and the pledge of the Revenues made herein and to perform such agreements and covenants.

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31 SECTION 7.08. Prosecution and Defense of Suits. The Authority will promptly from time to time take or cause to be taken such action as may be necessary or proper to remedy or cure any defect in or cloud upon the title to the Project, whether now existing or hereafter developing, and shall prosecute or cause to be prosecuted all such suits, actions and other proceedings as may be appropriate for such purpose and shall indemnify and hold the Trustee harmless from all loss, cost, damage and expense, including attorney’s fees, which it may incur by reason of any such defect, cloud, suit, action or proceeding.

The Authority will defend against every suit, action or proceeding at any time brought against the Trustee upon any claim arising out of the receipt, application or disbursement of any of the Revenues or involving the rights of the Trustee hereunder; provided that the Trustee at its election may appear in and defend any such suit, action or proceeding.

SECTION 7.09. Further Assurances. Whenever and so often as requested to do so by the Trustee, the Authority will promptly execute and deliver or cause to be executed and delivered all such other and further assurances, documents or instruments, and promptly do or cause to be done all such other and further things as may be necessary or reasonably required in order to further and more fully vest in the Owners all rights, interests, powers, benefits, privileges and advantages conferred or intended to be conferred upon them hereby.

SECTION 7.10. Continuing Disclosure. The Authority will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Indenture, failure of the Authority to comply with the Continuing Disclosure Certificate shall not constitute an event of default hereunder; provided, however, that the Trustee may (and, at the written direction of any Participating Underwriter or the holders of at least 25% of the aggregate principal amount of Outstanding Bonds, and upon being indemnified to its reasonable satisfaction therefor, shall) or any holder or beneficial owner of the Bonds may take such actions as may be necessary and appropriate to compel performance, including seeking mandate or specific performance by court order.

ARTICLE VIII

THE TRUSTEE
SECTION 8.01. Appointment and Acceptance of Duties. The Trustee hereby accepts and agrees to the trusts hereby created to all of which the Authority agrees and the respective owners of the Bonds, by their purchase and acceptance thereof, agree.

SECTION 8.02. Duties, Immunities and Liabilities of Trustee. (a) The Trustee shall, prior to an Event of Default, and after the curing of all Events of Default which may have occurred, perform such duties and only such duties as are specifically set forth in this Indenture and no implied duties or obligations shall be read into this Indenture against the Trustee. The Trustee shall, during the existence of any Event of Default (which has not been cured), exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of his own affairs.

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32 (b) So long as no Event of Default has occurred and is continuing, the Authority may remove the Trustee at any time and shall remove the Trustee if at any time requested to do so by the Owners of not less than a majority in aggregate principal amount of the Bonds then Outstanding (or their attorneys duly authorized in writing) or, regardless of the occurrence and continuance of an Event of Default, if at any time the Trustee shall be in breach of the trusts set forth in this Indenture, or shall cease to be eligible in accordance with subsection (e) of this Section, or shall become incapable of acting, or shall commence a case under any bankruptcy, insolvency or similar law, or a receiver of the Trustee or of its property shall be appointed, or any public officer shall take control or charge of the Trustee or its property or affairs for the purpose of rehabilitation, conservation or liquidation, in each case by giving written notice of such removal to the Trustee, and thereupon shall appoint a successor Trustee by an instrument in writing. (c) The Trustee may resign by giving written notice of such resignation to the Authority and by giving notice of such resignation by mail, first class postage prepaid, to the Owners at the addresses listed in the bond register. Upon receiving such notice of resignation, the Authority shall promptly appoint a successor Trustee by an instrument in writing. (d) Any removal or resignation of the Trustee and appointment of a successor Trustee shall become effective upon acceptance of appointment by the successor Trustee; provided that no removal or resignation of the Trustee shall take effect until a successor shall be appointed. If no successor Trustee shall have been appointed and shall have accepted appointment within 45 days of giving notice of removal or notice of resignation as aforesaid, the resigning Trustee, at the expense of the Authority, or any Owner (on behalf of himself and all other Owners) may petition any court of competent jurisdiction for the appointment of a successor Trustee, and such court may thereupon, after such notice (if any) as it may deem proper, appoint such successor Trustee. Any successor Trustee appointed under this Indenture shall signify its acceptance of such appointment by executing and delivering to the Authority and to its predecessor Trustee a written acceptance thereof, and thereupon such successor Trustee, without any further act, deed or conveyance, shall become vested with all the moneys, estates, properties, rights, powers, trusts, duties and obligations of such predecessor Trustee, with like effect as if originally named Trustee herein; but, nevertheless, at the written request of the Authority or of the successor Trustee, such predecessor Trustee shall execute and deliver any and all instruments of conveyance or further assurance and do such other things as may reasonably be required for more fully and certainly vesting in and confirming to such successor Trustee all the right, title and interest of such predecessor Trustee in and to any property held by it under this Indenture and shall pay over, transfer, assign and deliver to the successor Trustee any money or other property subject to the trusts and conditions herein set forth. Upon request of the successor Trustee, the Authority shall execute and deliver any and all instruments as may be reasonably required for more fully and certainly vesting in and confirming to such successor Trustee all such moneys, estates, properties, rights, powers, trusts, duties and obligations. Upon acceptance of appointment by a successor Trustee as provided in this subsection, such successor Trustee shall mail a notice of the succession of such Trustee to the trusts hereunder by first class mail, postage prepaid, to the Owners at their addresses listed in the bond register.
(e) Any Trustee appointed under the provisions of this Indenture shall be a trust company, national banking association or bank having trust powers, having a corporate trust office in California, having (or whose parent holding company shall have) a combined capital and surplus City Council 38 – 130 6/4/2024
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33 of at least two-hundred million ($200,000,000), subject to supervision or examination by federal or state authority. If such bank, national banking association or trust company publishes a report of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority above referred to, then for the purpose of this subsection the combined capital and surplus of such bank, national banking association or trust company shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this subsection (e) the Trustee shall resign immediately in the manner and with the effect specified in this Section.
(f) No provision in this Indenture shall require the Trustee to risk or expend its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder. (g) The Trustee shall not be responsible for the sufficiency, timeliness or enforceability of the Revenues.
(h) The Trustee shall not be accountable for the use or application by the Authority, the City or any other party of any funds which the Trustee has released under this Indenture. (i) The Trustee may employ attorneys, agents or receivers in the performance of any of its duties hereunder and shall not be answerable for the misconduct of any such attorney, agent or receiver selected by it with reasonable care.
(j) Notwithstanding any other provision of this Indenture, in determining whether the rights of the Owners will be adversely affected by any action taken pursuant to the terms and provisions of this Indenture, the Trustee shall consider the effect on the Owners as if there were no policy or policies of municipal bond insurance.

SECTION 8.03. Merger or Consolidation. Any company into which the Trustee may be merged or converted or with which it may be consolidated or any company resulting from any merger, conversion or consolidation to which it shall be a party or any company to which the Trustee may sell or transfer all or substantially all of its corporate trust business provided such company shall be eligible under subsection (e) of Section 8.02 shall succeed to the rights and obligations of such Trustee without the execution or filing of any paper or any further act, anything herein to the contrary notwithstanding.

SECTION 8.04. Compensation. The Authority shall pay the Trustee, or cause the Trustee to be paid, reasonable compensation for its services rendered hereunder and shall reimburse the Trustee for reasonable expenses incurred by the Trustee in the performance of its obligations hereunder.

The Authority agrees, to the extent permitted by law, to indemnify the Trustee and its respective officers, directors, members, employees, attorneys and agents for, and to hold them harmless against, any loss, liability or expense including legal fees and expenses incurred without negligence or willful misconduct on their part arising out of or in connection with the acceptance or administration of the trusts imposed by this Indenture, including performance of their duties hereunder, including the costs and expenses of defending themselves against any claims or liability in connection with the exercise or performance of any of their powers or duties hereunder. Such City Council 38 – 131 6/4/2024
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34 indemnity shall survive the termination or discharge of the Indenture and resignation or removal of the Trustee.

SECTION 8.05. Liability of Trustee.
(a) The recitals of facts herein and in the Bonds contained shall be taken as statements of the Authority, and the Trustee assumes no responsibility for the correctness of the same, and makes no representations as to the validity or sufficiency of this Indenture, the Installment Purchase Agreement or of the Bonds, and shall incur no responsibility in respect thereof, other than in connection with the duties or obligations herein or in the Bonds assigned to or imposed upon it. The Trustee shall, however, be responsible for its representations contained in its certificate of authentication on the Bonds. The Trustee shall not be liable in connection with the performance of its duties hereunder, except for its own negligence or willful misconduct. The Trustee may become the Owner of Bonds with the same rights it would have if it were not Trustee and, to the extent permitted by law, may act as depositary for and permit any of its officers or directors to act as a member of, or in any other capacity with respect to, any committee formed to protect the rights of Owners, whether or not such committee shall represent the Owners of a majority in principal amount of the Bonds then Outstanding. (b) The Trustee shall not be liable for any error of judgment made in good faith by a responsible officer, unless the Trustee shall have been negligent in ascertaining the pertinent facts. (c) The Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Owners of not less than 25% in aggregate principal amount of the Bonds at the time Outstanding relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee under this Indenture. (d) The Trustee shall not be liable for any action taken by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture, except for actions arising from the negligence or intentional misconduct of the Trustee.

The permissive right of the Trustee to do things enumerated hereunder shall not be construed as a mandatory duty.
(e) The Trustee shall not be deemed to have knowledge of any Event of Default hereunder unless and until it shall have actual knowledge thereof, or shall have received written notice thereof at the Corporate Trust Office of the Trustee. Except as otherwise expressly provided herein, and subject to Section 8.02, the Trustee shall not be bound to ascertain or inquire as to the performance or observance of any of the terms, conditions, covenants or agreements herein or of any of the documents executed in connection with the Bonds, or as to the existence of an Event of Default hereunder or thereunder. The Trustee shall not be responsible for the validity or effectiveness of any collateral given to or held by it. Without limiting the generality of the foregoing, the Trustee shall not be responsible for reviewing the contents of any financial statements furnished to the Trustee pursuant to Section 7.04 and may rely conclusively on the certificates provided hereunder to establish compliance with its duties.

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35 (f) The Trustee shall not be considered in breach or in default of its obligations hereunder or progress in respect thereto in the event of enforced delay (“unavoidable delay”) in the performance of such obligations due to unforeseeable causes beyond its control and without its fault or negligence, including, but not limited to, Acts of God or of the public enemy or terrorists, acts of a government, acts of the other party, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, earthquakes, explosion, mob violence, riot, inability to procure or general sabotage or rationing of labor, equipment, facilities, sources of energy, material or supplies in the open market, litigation or arbitration involving a party or others relating to zoning or other governmental action or inaction pertaining to the Project, malicious mischief, condemnation and unusually severe weather or delays of suppliers or subcontractors due to such causes or any similar event and or occurrence beyond the control of the Trustee; provided, however, that the Trustee shall provide notice of any such unavoidable delay to the Authority. (g) The Trustee shall have no responsibility or liability with respect to any information, statements or recital in any offering memorandum or other disclosure material prepared or distributed with respect to the issuance of these Bonds. (h) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Owners pursuant to the provisions of this Indenture unless such Owners shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which may be incurred therein or thereby.

SECTION 8.06. Right to Rely on Documents. The Trustee shall be protected in acting upon any notice, resolution, request, requisition, consent, order, certificate, report, opinion, bond, facsimile transmission, electronic mail or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. The Trustee may consult with counsel, who may be counsel but need not be counsel of or to the Authority, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith and in accordance therewith.

Whenever in the administration of the trusts imposed upon it by this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a Certificate of the Authority, and such Certificate shall be full warrant to the Trustee for any action taken or suffered in good faith under the provisions of this Indenture in reliance upon such Certificate, but in its discretion the Trustee may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable.

SECTION 8.07. Preservation and Inspection of Documents. All documents received by the Trustee under the provisions of this Indenture shall be retained in its possession and shall be subject at all reasonable times to the inspection of the Authority and any Owner, and their agents and representatives duly authorized in writing, at reasonable hours and under reasonable conditions.

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36 The Trustee shall have the right to accept and act upon instructions, including funds transfer instructions (“Instructions”) given pursuant to this Indenture and delivered using Electronic Means (“Electronic Means” shall mean the following communications methods: S.W.I.F.T., e-mail, facsimile transmission, secure electronic transmission containing applicable authorization codes, passwords and/or authentication keys issued by the Trustee, or another method or system specified by the Trustee as available for use in connection with its services hereunder); provided, however, that the City shall provide to the Trustee an incumbency certificate listing officers with the authority to provide such Instructions (“Authorized Officers”) and containing specimen signatures of such Authorized Officers, which incumbency certificate shall be amended by the City whenever a person is to be added or deleted from the listing. If the City elects to give the Trustee Instructions using Electronic Means and the Trustee in its discretion elects to act upon such Instructions, the Trustee’s understanding of such Instructions shall be deemed controlling. The City understands and agrees that the Trustee cannot determine the identity of the actual sender of such Instructions and that the Trustee shall conclusively presume that directions that purport to have been sent by an Authorized Officer listed on the incumbency certificate provided to the Trustee have been sent by such Authorized Officer. The City shall be responsible for ensuring that only Authorized Officers transmit such Instructions to the Trustee and that the City and all Authorized Officers are solely responsible to safeguard the use and confidentiality of applicable user and authorization codes, passwords and/or authentication keys upon receipt by the City. The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance with such Instructions notwithstanding such directions conflict or are inconsistent with a subsequent written instruction. The City agrees: (i) to assume all risks arising out of the use of Electronic Means to submit Instructions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized Instructions, and the risk of interception and misuse by third parties; (ii) that it is fully informed of the protections and risks associated with the various methods of transmitting Instructions to the Trustee and that there may be more secure methods of transmitting Instructions than the method(s) selected by the City; (iii) that the security procedures (if any) to be followed in connection with its transmission of Instructions provide to it a commercially reasonable degree of protection in light of its particular needs and circumstances; and (iv) to notify the Trustee immediately upon learning of any compromise or unauthorized use of the security procedures.

ARTICLE IX

AMENDMENT OF THE INDENTURE
SECTION 9.01. Amendment of the Indenture. The Indenture and the rights and obligations of the Authority and of the Owners may be amended at any time by a Supplemental Indenture which shall become binding when the written consents of the Owners of at least a majority in aggregate principal amount of the Bonds then Outstanding, exclusive of Bonds disqualified as provided in Section 9.02, are filed with the Trustee. No such amendment shall (1) extend the maturity of or reduce the interest rate on or otherwise alter or impair the obligation of the Authority to pay the interest on or principal of or redemption premium, if any, on any Bond at the time and place and at the rate and in the currency provided herein without the express written consent of the Owner of such Bond, (2) except as provided in Sections 4.01 and 4.02 hereof, permit the creation by the Authority of any pledge of the Revenues as provided herein superior to or on a City Council 38 – 134 6/4/2024
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37 parity with the pledge created hereby for the benefit of the Bonds, or (3) modify any rights or obligations of the Trustee without its prior written assent thereto.

The Indenture and the rights and obligations of the Authority and of the Owners may also be amended at any time by a Supplemental Indenture which shall become binding upon adoption without the consent of any Owners, but only to the extent permitted by law and after receipt of an approving opinion of Bond Counsel and only for any one or more of the following purposes:
(a) to make such provisions for the purpose of curing any ambiguity or of correcting, curing or supplementing any defective provision contained herein regard to questions arising hereunder which the Authority may deem desirable or necessary and not inconsistent herewith and which shall not adversely affect the interests of the Owners; (b) to make any other change or addition hereto which shall not materially adversely affect the interests of the Owners, or to surrender any right or power reserved herein to or conferred herein on the Authority; or
(c) to provide for the issuance of any Additional Bonds and to provide the terms of such Additional Bonds, subject to the conditions and upon compliance with the procedure set forth in Article 4.

SECTION 9.02. Disqualified Bonds. Bonds owned or held by or for the account of the Authority or the City shall not be deemed Outstanding for the purpose of any consent or other action or any calculation of Outstanding Bonds provided in this Article, and shall not be entitled to consent to or take any other action provided in this Article.

SECTION 9.03. Endorsement or Replacement of Bonds After Amendment.

After the effective date of any action taken as hereinabove provided, the Authority may determine that the Bonds may bear a notation by endorsement in form approved by the Authority as to such action, and in that case upon demand of the Owner of any Outstanding Bond and presentation of his Bond for such purpose at the Corporate Trust Office of the Trustee a suitable notation as to such action shall be made on such Bond. If the Authority shall so determine, new Bonds so modified as, in the opinion of the Authority, shall be necessary to conform to such action shall be prepared and executed, and in that case upon demand of the Owner of any Outstanding Bond such new Bonds shall be exchanged at the Corporate Trust Office of the Trustee without cost to each Owner for Bonds then Outstanding upon surrender of such Outstanding Bonds.

SECTION 9.04. Amendment by Mutual Consent. The provisions of this Article shall not prevent any Owner from accepting any amendment as to the particular Bonds owned by him, provided that due notation thereof is made on such Bonds.

ARTICLE X

EVENTS OF DEFAULT AND REMEDIES OF HOLDERS
SECTION 10.01. Events of Default and Acceleration of Maturities. If one or more of the following events (herein called “Events of Default”) shall happen, that is to say:

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38 (a) failure in the due and punctual payment of the interest on any Bond when and as the same shall become due and payable;
(b) failure in the due and punctual payment of the principal of or redemption premium, if any, on any Bond when and as the same shall become due and payable, whether at maturity as therein expressed or by proceedings for redemption; (c) failure by the Authority in the performance of any of the other agreements or covenants required herein to be performed by the Authority, and such default shall have continued for a period of 30 days after the Authority shall have been given notice in writing of such default by the Trustee, or to the Authority and the Trustee by Owners of not less than 25% of the Bonds; or
(d) if any event of default shall have occurred and be continuing under Section

8.01 of the Installment Purchase Agreement; or
(e) if the Authority shall file a petition or answer seeking arrangement or reorganization under the federal bankruptcy laws or any other applicable law of the United States of America or any state therein, or if a court of competent jurisdiction shall approve a petition filed with or without the consent of the Authority seeking arrangement or reorganization under the federal bankruptcy laws or any other applicable law of the United States of America or any state therein, or if under the provisions of any other law for the relief or aid of debtors any court of competent jurisdiction shall assume custody or control of the Authority or of the whole or any substantial part of its property; then and in each and every such case during the continuance of such event of default the Trustee may, upon the written request of the Owners of not less than 25% in aggregate principal amount of the Bonds then Outstanding by notice in writing to the Authority, declare the principal of all Bonds then Outstanding and the interest accrued thereon to be due and payable immediately, and upon any such declaration the same shall become due and payable, anything contained herein or in the Bonds to the contrary notwithstanding. This subsection is subject to the condition that if at any time after the entire principal amount of the unpaid Bonds and the accrued interest thereon shall have been so declared due and payable and before any judgment or decree for the payment of the moneys due shall have been obtained or entered, the City shall deposit with the Trustee a sum sufficient to pay the unpaid principal amount of the Bonds due prior to such declaration and the accrued interest thereon, with interest such overdue installments at the rate or rates applicable thereto in accordance with their terms, and the reasonable fees and expenses of the Trustee, and any and all other defaults known to the Trustee (other than in the payment the entire principal amount of the unpaid Bonds and the accrued interest thereon due and payable solely by reason of such declaration) shall have been made good or cured to the satisfaction of the Trustee or provision deemed by the Trustee to be adequate shall have been made therefor, then and in every such case the Trustee, by written notice to the City, may rescind and annul such declaration and its consequences; but no such rescission and annulment shall extend to or shall affect any subsequent default or shall impair or exhaust any right or power consequent thereon.

SECTION 10.02. Proceedings by Trustee. Upon the happening and continuance of any Event of Default the Trustee in its discretion may, and at the written request of the Owners of City Council 38 – 136 6/4/2024
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39 not less than 25% in aggregate principal amount of Bonds Outstanding shall (but only to the extent indemnified to its satisfaction from fees and expenses, including attorneys’ fees), do the following:
(a) by mandamus, or other suit, action or proceeding at law or in equity, enforce all rights of the Owners and require the Authority to enforce all rights of the Owners of Bonds, including the right to require the Authority to receive and collect Revenues and to enforce its rights under the Installment Purchase Agreement and to require the Authority to carry out any other covenant or agreement with Owners of Bonds and to perform its duties hereunder;
(b) bring suit upon the Bonds;
(c) by action or suit in equity enjoin any acts or things which may be unlawful or in violation of the rights of the Owners; and
(d) as a matter of right, have receivers appointed for the Revenues and the issues, earnings, income, products and profits thereof, pending such proceedings, with such powers as the court making such appointment shall confer.

SECTION 10.03. Effect of Discontinuance or Abandonment. In case any proceeding taken by the Trustee on account of any default or Event of Default shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the Trustee, then and in every such case the Authority, the Trustee and the Owners shall be restored to their former positions and rights under this Indenture, respectively, and all rights, remedies and powers of the Trustee shall continue as though no such proceeding had been taken.

SECTION 10.04. Rights of Owners. Anything in this Indenture to the contrary notwithstanding subject to the limitations and restrictions as to the rights of the Owners in Sections

10.01 and 10.02 above and 10.05 below, upon the happening and continuance of any Event of Default, the Owners of not less than 25% in aggregate principal amount of the Bonds then Outstanding shall have the right upon providing the Trustee security and indemnity reasonably satisfactory to it against the costs, expenses and liabilities to be incurred therein or thereby, by an instrument in writing executed and delivered to the Trustee, to direct the method and place of conducting all remedial proceedings to be taken by the Trustee under this Indenture.

The Trustee may refuse to follow any direction that conflicts with law or this Indenture or that the Trustee determines is prejudicial to rights of other Owners or would subject the Trustee to personal liability.

SECTION 10.05. Restriction on Owners’ Action. In addition to the other restrictions on the rights of Owners to request action upon the occurrence of an Event of Default and to enforce remedies set forth in this Article 10, no Owner of any of the Bonds shall have any right to institute any suit, action or proceeding in equity or at law for the enforcement of any trust under this Indenture, or any other remedy under this Indenture or on said Bonds, unless such Owner previously shall have given to the Trustee written notice of an Event of Default as hereinabove provided and unless the Owners of not less than 25% in aggregate principal amount of the Bonds then Outstanding shall have made written request of the Trustee to institute any such suit, action, proceeding or other remedy, after the right to exercise such powers or rights of action, as the case City Council 38 – 137 6/4/2024
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40 may be, shall have accrued, and shall have afforded the Trustee a reasonable opportunity either to proceed to exercise the powers in this Indenture granted, or to institute such action, suit or proceeding in its or their name; nor unless there also shall have been offered to the Trustee security and indemnity satisfactory to it against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee shall not have complied with such request within a reasonable time; and such notification, request and offer of indemnity are hereby declared in every such case, at the option of the Trustee, to be conditions precedent to the execution of the trusts of this Indenture or for any other remedy under this Indenture; it being understood and intended that no one or more Owners of the Bonds secured by this Indenture shall have any right in any manner whatever by his or their action to affect, disturb or prejudice the security of this Indenture, or to enforce any right under this Indenture or under the Bonds, except in the manner in this Indenture provided, and that all proceedings at law or in equity shall be instituted, and maintained in the manner in this Indenture provided, and for the equal benefit of all Owners of Outstanding Bonds.

SECTION 10.06. Power of Trustee to Enforce. All rights of action under this Indenture or under any of the Bonds secured by this Indenture which are enforceable by the Trustee may be enforced by it without the possession of any of the Bonds, or the production thereof at the trial or other proceedings relative thereto, and any such suit, action or proceedings instituted by the Trustee shall be brought in its own name, as Trustee, for the equal and ratable benefit of the Owners of the Bonds subject to the provisions of this Indenture.

SECTION 10.07. Remedies Not Exclusive. No remedy in this Indenture conferred upon or reserved to the Trustee or to the Owners of the Bonds is intended to be exclusive of any other remedy or remedies, and each and every such remedy shall be cumulative, and shall be in addition to every other remedy given under this Indenture or now or hereafter existing at law or in equity or by statute.

SECTION 10.08. Waiver of Events of Default; Effect of Waiver. The Trustee shall waive any Event of Default hereunder and its consequences and rescind any declaration of acceleration, upon the written request of the Owners of at least a majority in aggregate principal amount of all Outstanding Bonds. If any Event of Default shall have been waived as herein provided, the Trustee shall promptly give written notice of such waiver to the Authority and shall give notice thereof by first class mail, postage prepaid to all Owners of Outstanding Bonds if such Owners had previously been given notices of such Event of Default whether or not exhausted; but no such waiver, rescission and annulment shall extend to or affect any subsequent Event of Default, or impair any right or remedy consequent thereon.

No delay or omission of the Trustee or any Owner of the Bonds to exercise any right or power accruing upon any default or Event of Default shall impair any such right or power or shall be construed to be a waiver of any such default or Event of Default, or an acquiescence therein; and every power and remedy given by this Article 10 to the Trustee or the Owners of the Bonds, respectively, may be exercised from time to time and as often as may be deemed expedient.

SECTION 10.09. Application of Moneys. Any moneys received by the Trustee pursuant to this Article 10, together with any moneys which upon the occurrence of an Event of Default are held by the Trustee in any of the funds and accounts hereunder (other than the Rebate City Council 38 – 138 6/4/2024
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41 Fund and other than moneys held for Bonds not presented for payment) shall, after payment of all fees and expenses of the Trustee, and the fees and expenses of its counsel, be applied as follows:
(a) unless the principal of all of the Outstanding Bonds shall be due and payable,
FIRST - To the payment of the Owners of all installments of interest then due on the Bonds, in the order of the maturity of the installments of such interest and, if the amount available shall not be sufficient to pay in full any particular installment, then to the payment ratably, according to the amounts due on such installment, to the Owners, without any discrimination or privilege; SECOND - To the payment of the Owners of the unpaid principal of and premium, if any, on any of the Bonds which shall have become due (other than Bonds matured or called for redemption for the payment of which moneys are held pursuant to the provisions of this Indenture), in the order of their due dates and, if the amount available shall not be sufficient to pay in full the principal of and premium, if any, on such Bonds due on any particular date, then to the payment ratably, according to the amount due on such date, to the Owners without any discrimination;
THIRD - To be held for the payment to the Owners as the same shall become due of the principal of, interest, and premium, if any, on the Bonds, which may thereafter become due either at maturity or upon call for redemption prior to maturity and, if the amount available shall not be sufficient to pay in full such principal and premium, if any, due on any particular date, together with interest then due and owing thereon, payment shall be made in accordance with the FIRST and SECOND paragraphs hereof.
(b) if the principal of all of the Outstanding Bonds shall be due and payable, to the payment of the principal, and premium, if any, and interest then due and unpaid upon the Outstanding Bonds without preference or priority of any of principal, premium or interest over the others or of any installment of interest, or of any Outstanding Bond over any other Outstanding Bond, ratably, according to the amounts due respectively for principal, premium and interest, to the Owners without any discrimination or preference except as to any difference in the respective amounts of interest specified in the Outstanding Bonds.

Whenever moneys are to be applied pursuant to the provisions of this Section 10.09, such moneys shall be applied at such times, and from time to time, as the Trustee shall determine, having due regard to the amount of such moneys available for application and the likelihood of additional moneys becoming available for such application in the future.

The Trustee shall give, by mailing by first class mail as it may deem appropriate, such notice of the deposit with it of any such moneys.

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42 ARTICLE XI

DEFEASANCE
SECTION 11.01. Discharge of Bonds.
(a) If the Authority shall pay or cause to be paid to the Owners of all Outstanding Bonds the interest thereon and the principal thereof and the redemption premiums, if any, thereon at the times and in the manner stipulated herein and therein, then the Owners of such Bonds shall cease to be entitled to the pledge of the Revenues as provided herein, and all agreements, covenants and other obligations of the Authority to the Owners of such Bonds hereunder shall thereupon cease, terminate and become void and be discharged and satisfied. In such event, the Trustee shall execute and deliver to the Authority all such instruments as may be necessary or desirable to evidence such discharge and satisfaction, and the Trustee shall pay over or deliver to the Authority all moneys held by it pursuant hereto which are not required for the payment of the interest on and principal of and redemption premiums, if any, on such Bonds.

Subject to the provisions of the above paragraph, when any of the Bonds shall have been paid and if, at the time of such payment, the Authority shall have kept, performed and observed all the covenants and promises in such Bonds and in this Indenture required or contemplated to be kept, performed and observed by the Authority or on its part on or prior to that time, then this Indenture shall be considered to have been discharged in respect of such Bonds and such Bonds shall cease to be entitled to the lien of this Indenture and such lien and all covenants, agreements and other obligations of the Authority hereunder shall cease, terminate, become void and be completely discharged as to such Bonds.

Notwithstanding the satisfaction and discharge of this Indenture or the discharge of this Indenture in respect of any Bonds, those provisions of this Indenture relating to the maturity of the Bonds, interest payments and dates thereof, tender and exchange provisions, exchange and transfer of Bonds, replacement of mutilated, destroyed, lost or stolen Bonds, the safekeeping and cancellation of Bonds, nonpresentment of Bonds, and the duties of the Trustee in connection with all of the foregoing, remain in effect and shall be binding upon the Trustee and the Owners of the Bonds and the Trustee shall continue to be obligated to hold in trust any moneys or investments then held by the Trustee for the payment of the principal of, redemption premium, if any, and interest on the Bonds, to pay to the Owners of Bonds the funds so held by the Trustee as and when such payment becomes due. Notwithstanding the satisfaction and discharge of this Indenture or the discharge of this Indenture in respect of any Bonds, those provisions of this Indenture contained in Section 8.04 relating to the compensation of the Trustee shall remain in effect and shall be binding upon the Trustee and the Authority.
(b) Any Outstanding Bonds shall prior to the maturity date or redemption date thereof be deemed to have been paid within the meaning of and with the effect expressed in subsection (a) or this Section if (1) in case any of such Bonds are to be redeemed on any date prior to their maturity date, the Authority shall have given to the Trustee in form satisfactory to it irrevocable instructions to mail notice of redemption of such Bonds on said redemption date, said notice to be given in accordance with Section 3.02 hereof, (2) there shall have been deposited with the Trustee either (A) money in an amount which shall be sufficient or (B) Defeasance Securities which are City Council 38 – 140 6/4/2024
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43 not subject to redemption prior to maturity (including any such Defeasance Securities issued or held in book entry form on the books of the Department of the Treasury of the United States of America) or tax exempt obligations of a state or political substitution thereof which have been defeased under irrevocable escrow instructions by the deposit of such money or Defeasance Securities and which are then rated in the highest rating category by the rating agency, the interest on and principal of which when paid will provide money which, together with the money, if any, deposited with the Trustee at the same time, shall, as verified by an independent certified public accountant or other financial consultant acceptable to the Trustee, be sufficient to pay when due the interest to become due on such Bonds on and prior to the maturity date or redemption date thereof, as the case may be, and the principal of and redemption premiums, if any, on such Bonds, and (3) in the event such Bonds are not by their terms subject to redemption within the next succeeding sixty (60) days, the Authority shall have given the Trustee in form satisfactory to it irrevocable instructions to mail as soon as practicable, a notice to the Owners of such Bonds that the deposit required by clause (2) above has been made with the Trustee and that such Bonds are deemed to have been paid in accordance with this section and stating the maturity date or redemption date upon which money is to be available for the payment of the principal of and redemption premiums, if any, on such Bonds.

SECTION 11.02. Unclaimed Money. Anything contained herein to the contrary notwithstanding, any money held by the Trustee in trust for the payment and discharge of any of the Bonds which remains unclaimed for two years after the date when such Bonds have become due and payable, either at their stated maturity dates or by call for redemption prior to maturity, if such money was held by the Trustee at such date, or for two years after the date of deposit of such money if deposited with the Trustee shall at the Written Request of the Authority be repaid by the Trustee to the Authority as its absolute property free from trust, and the Trustee shall thereupon be released and discharged with respect thereto and the Owners shall look only to the Authority for the payment of such Bonds; provided, however, that before being required to make any such payment to the Authority, the Trustee shall, at the expense of the Authority, cause to be published once a week for two successive weeks in a Financial Newspaper, a notice that such money remains unclaimed and that, after a date named in such notice, which date shall not be less than 30 days after the date of the first publication of each such notice, the balance of such money then unclaimed will be returned to the Authority.

ARTICLE XII

MISCELLANEOUS
SECTION 12.01. Liability of Authority Limited to Revenues. Notwithstanding anything contained herein, the Authority shall not be required to advance any money derived from any source of income other than the Revenues as provided herein for the payment of the interest on or principal of or redemption premiums, if any, on the Bonds or for the performance of any agreements or covenants herein contained. The Authority may, however, advance funds for any such purpose so long as such funds are derived from a source legally available for such purpose without incurring an indebtedness.

The Bonds shall be limited obligations of the Authority and shall be payable solely from the Revenues and amounts on deposit in the funds and accounts established hereunder (other than City Council 38 – 141 6/4/2024
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44 amounts on deposit in the Rebate Fund created pursuant to Section 7.02). The Bonds do not constitute a debt or liability of the City or of the State of California and neither the faith and credit of the City nor of the State are pledged to the payment of the principal of or interest on the Bonds.

SECTION 12.02. Benefits of Indenture Limited to Parties. Nothing in this Indenture expressed or implied is intended or shall be construed to confer upon, or to give or grant to, any person or entity, other than the Authority, the Trustee and the registered Owners of the Bonds, any right, remedy or claim under or by reason of this Indenture or any covenant, condition or stipulation hereof; and all covenants, stipulations, promises and agreements in this Indenture contained by and on behalf of the Authority shall be for the sole and exclusive benefit of the Authority, the Trustee and the registered Owners of the Bonds.

SECTION 12.03. Successor Is Deemed Included In All References To Predecessor. Whenever herein either the Authority or any member, officer or employee thereof is named or referred to, such reference shall be deemed to include the successor to the powers, duties and functions with respect to the administration, control and management of the Project that are presently vested in the Authority or such member, officer or employee, and all agreements and covenants required hereby to be performed by or on behalf of the Authority or any member, officer or employee thereof shall bind and inure to the benefit of the respective successors thereof whether so expressed or not.

SECTION 12.04. Execution of Documents by Owners. Any declaration, request or other instrument which is permitted or required herein to be executed by Owners may be in one or more instruments of similar tenor and may be executed by Owners in person or by their attorneys appointed in writing. The fact and date of the execution by any Owner or his attorney of any declaration, request or other instrument or of any writing appointing such attorney may be proved by the certificate of any notary public or other officer authorized to make acknowledgments of deeds to be recorded in the state or territory in which he purports to act that the person signing such declaration, request or other instrument or writing acknowledged to him the execution thereof; or by an affidavit of a witness of such execution duly sworn to before such notary public or other officer. The ownership of any Bonds and the amount, maturity, number and date of holding the same may be proved by the registration books relating to the Bonds at the office of the Trustee.

Any declaration, request or other instrument or writing of the Owner of any Bond shall bind all future Owners of such Bond with respect to anything done or suffered to be done by the Authority in good faith and in accordance therewith.

SECTION 12.05. Waiver of Personal Liability. No member, officer or employee of the Authority shall be individually or personally liable for the payment of the interest on or principal of or redemption premiums, if any, on the Bonds by reason of their issuance, but nothing herein contained shall relieve any member, officer or employee of the Authority from the performance of any official duty provided by any applicable provisions of law or hereby.

SECTION 12.06. Acquisition of Bonds by Authority. All Bonds acquired by the Authority, whether by purchase or gift or otherwise, shall be surrendered to the Trustee for cancellation.

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45 SECTION 12.07. Destruction of Cancelled Bonds. Whenever provision is made for the return to the Authority of any Bonds which have been cancelled pursuant to the provisions hereof, the Trustee shall destroy such Bonds and furnish to the Authority a certificate of such destruction.

SECTION 12.08. Content of Certificates. Every Certificate of the Authority with respect to compliance with any agreement, condition, covenant or provision provided herein shall include (a) a statement that the person or persons making or giving such certificate have read such agreement, condition, covenant or provision and the definitions herein relating thereto; (b) a brief statement as to the nature and scope of the examination or investigation upon which the statements contained in such certificate are based; (c) a statement that, in the opinion of the signers, they have made or caused to be made such examination or investigation as is necessary to enable them to express an informed opinion as to whether or not such agreement, condition, covenant or provision has been complied with; and (d) a statement as to whether, in the opinion of the signers, such agreement, condition, covenant or provision has been complied with.

Any Certificate of the Authority may be based, insofar as it relates to legal matters, upon an opinion of Bond Counsel unless the person making or giving such certificate knows that the opinion of Bond Counsel with respect to the matters upon which his certificate may be based, as aforesaid, is erroneous, or in the exercise of reasonable care should have known that the same was erroneous. Any opinion of Bond Counsel may be based, insofar as it relates to factual matters information with respect to which is in the possession of the Authority, upon a representation by an officer or officers of the Authority unless the counsel executing such opinion of Bond Counsel knows that the representation with respect to the matters upon which his opinion may be based, as aforesaid, is erroneous, or in the exercise of reasonable care should have known that the same was erroneous.

SECTION 12.09. Accounts and Funds. Any account or fund required herein to be established and maintained by the Trustee may be established and maintained in the accounting records of the Trustee either as an account or a fund, and may, for the purposes of such accounting records, any audits thereof and any reports or statements with respect thereto, be treated either as an account or a fund; but all such records with respect to all such accounts and funds shall at all times be maintained in accordance with sound corporate trust industry practice and with due regard for the protection of the security of the Bonds and the rights of the Owners.

SECTION 12.10. Partial Invalidity. If any one or more of the agreements or covenants or portions thereof required hereby to be performed by or on the part of the Authority or the Trustee shall be contrary to law, then such agreement or agreements, such covenant or covenants or such portions thereof shall be null and void and shall be deemed separable from the remaining agreements and covenants or portions thereof and shall in no way affect the validity hereof or of the Bonds, and the Owners shall retain all the benefit, protection and security afforded to them hereunder or any applicable provisions of law. The Authority and the Trustee hereby declare that they would have executed and delivered the Indenture and each and every other article, section, paragraph, subdivision, sentence, clause and phrase hereof and would have authorized the issuance of the Bonds pursuant hereto irrespective of the fact that any one or more articles, sections, paragraphs, subdivisions, sentences, clauses or phrases hereof or the application thereof to any person or circumstance may be held to be unconstitutional, unenforceable or invalid.

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46 SECTION 12.11. Execution in Counterparts. This Indenture may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original; and all such counterparts, or as many of them as the Authority and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

SECTION 12.12. Law Governing and Venue. This Indenture shall be governed exclusively by the provisions hereof and by the laws of the State as the same from time to time exist. Venue shall be held exclusively in the County of Orange.

SECTION 12.13. Notices. Any written notice, statement, demand, consent, approval, authorization, offer, designation, request or other communication to be given hereunder shall be given to the party entitled thereto at its address set forth below, or at such other address as such party may provide to the other parties in writing from time to time, namely:

If to the Authority: Santa Ana Public Financing Authority 20 Civic Center Plaza
Santa Ana, CA 92701
Attn: Executive Director
If to the City: City of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701
Attn: Department of Finance
If to the Trustee: U.S. Bank Trust Company, National Association 633 West 5th St., 24th Floor
Los Angeles, CA 90071
(Signature page follows)
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S-1
IN WITNESS WHEREOF, the SANTA ANA PUBLIC FINANCING
AUTHORITY has caused this Indenture to be signed in its name by its Executive Director and attested by its Secretary and U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION in token of its acceptance of the trusts created hereunder, has caused this Indenture to be signed by one of the officers thereunder duly authorized, all as of the day and year first above written.

SANTA ANA PUBLIC FINANCING

AUTHORITY
By:

Executive Director
ATTEST:

Secretary
APPROVED AS TO FORM:

Authority Counsel
U.S. BANK TRUST COMPANY,

NATIONAL ASSOCIATION,
as Trustee
By:

Authorized Signatory
-Signature PageIndenture
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A-1

EXHIBIT A
FORM OF 2024 BOND
No. _____ $_______________

SANTA ANA PUBLIC FINANCING AUTHORITY
WATER REVENUE BOND, SERIES 2024
(PAYABLE SOLELY FROM INSTALLMENT PAYMENTS

SECURED BY WATER SYSTEM NET REVENUES)

INTEREST
RATE

MATURITY
DATE
DATED

DATE CUSIP
REGISTERED OWNER: CEDE & CO.

PRINCIPAL SUM: ___________________________________________ DOLLARS Unless this bond is presented by an authorized representative of The Depository Trust Company, a New York Corporation (“DTC”), to the issuer or its agent for registration of transfer, exchange or payment, and any bond issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY

TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

The SANTA ANA PUBLIC FINANCING AUTHORITY, a California joint exercise of powers authority, duly organized and validly existing under and pursuant to the laws of the State of California (the “Authority”), for value received, hereby promises to pay (but only out of the maturity date specified above (subject to any right of prior redemption provided for) the principal sum specified above, together with interest thereon from the interest payment date next preceding the date of authentication hereof (unless such date of authentication is during the period commencing after the fifteenth day preceding an interest payment date (the “Record Date”) through and including the next succeeding interest payment date, in which event this Bond shall bear interest from such interest payment date, or unless such date of authentication is on or before the first Record Date, in which event it shall bear interest from _________________, 2024 until the principal hereof shall have been paid at the interest rate per annum specified above, payable on March 1, 2025 and semiannually thereafter on September 1 and March 1 in each year; provided, however, that if on the date of authentication of this Bond, interest is then in default on this Bond, such Bond shall bear interest from the interest payment date to which interest has previously been paid or made available for payment, or if no interest has been paid, from the date of delivery hereof.

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The principal of this Bond shall be payable in lawful money of the United States of America at the corporate trust office of U.S. Bank Trust Company, National Association, as Trustee (the “Trustee”) in Los Angeles, California upon presentation and surrender of this Bond.

Payment of interest on this Bond due on or before the maturity or prior redemption, thereof shall be made to the person in whose name such Bond is registered, as of the Record Date preceding the applicable interest payment date, on the registration books kept by the Trustee at its corporate trust office, such interest to be paid by check mailed by first class mail (or paid as otherwise specified in the Indenture) on such interest payment date to the registered owner at his address as it appears on such books. Interest on this Bond shall be payable in lawful money of the United States of America and shall be calculated on the basis of a 360 day year consisting of twelve 30 day months.

It is hereby certified that all acts and proceedings required by law necessary to make this Bond, when executed by the Authority, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal limited obligation of the Authority have been done and taken, and have been in all respects duly authorized.

This Bond is one of a duly authorized issue of bonds of the Authority designated as its “Santa Ana Public Financing Authority Water Revenue Bonds, Series 2024 (Payable Solely From Installment Payments Secured by Water System Net Revenues)” (the “Bonds”) in the aggregate principal amount of $_____________, all of like tenor and date (except for such variations, if any, as may be required to designate varying numbers, maturities and interest rates), and is issued under and pursuant to the provisions of an indenture, dated as of __________, 2024 (the “Indenture”), between the Authority and the Trustee (copies of which are on file at the office of the Secretary of the Authority and at the corporate trust office of the Trustee).

The Bonds are issued to provide funds to finance and refinance the cost of constructing and improving certain improvement of the water system (the “Project”) of the City of Santa Ana (the “City”). The Bonds are limited obligations of the Authority and are payable, as to interest thereon and principal thereof, solely from the revenues derived from installment payments paid by the City for the purchase of the Project (the “Revenues”). All the Bonds are equally and ratably secured in accordance with the terms and conditions of the Indenture by a pledge of the Revenues, which Revenues shall be held in trust for the security and payment of the interest on, principal of and redemption premiums, if any, on the Bonds as provided in the Indenture.

The Bonds shall be limited obligations of the Authority and shall be payable solely from the Revenues and amounts on deposit in the funds and accounts established under the Indenture (other than amounts on deposit in the Rebate Fund). The Bonds do not constitute a debt or liability of the City or of the State of California and neither the faith and credit of the City nor of the State of California are pledged to the payment of the principal of or interest on the Bonds.

Additional revenue bonds payable from the Revenues may be issued which will rank equally as to security with the Bonds, but only subject to the conditions and upon compliance with the procedures set forth in the Indenture. Reference is hereby made to the Indenture and any and all amendments thereof and supplements thereto for a description of the terms under which the Bonds are issued, the provisions with regard to the nature and extent of the Revenues, and the City Council 38 – 147 6/4/2024
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rights of the registered owners of the Bonds. All of the terms of the Indenture are hereby incorporated herein and constitute a contract between the Authority and the registered owner of this Bond, to all the provisions of which the registered owner of this Bond, by acceptance hereof, agrees and consents. Each registered owner hereof shall have recourse to all of the provisions of the Indenture and shall be bound by all of the terms and conditions thereof.

The Authority has agreed and covenanted that, for the payment of the interest on, the principal of and redemption premium, if any, on this Bond and all other Bonds of this issue authorized by the Indenture when due, there has been created and will be maintained by the Trustee a special fund into which all Revenues (other than deposits to the Rebate Fund created by the Indenture) shall be deposited, and the Authority has allocated such Revenues solely to the payment of the interest on and principal of and redemption premiums, if any, on the Bonds, and the Authority will pay promptly when due the interest on and the principal of and redemption premium, if any, on this Bonds and all other Bonds of this issue authorized by the Indenture out of said special fund, all in accordance with the terms and provisions set forth in the Indenture. 2024 Bonds maturing on or after September 1, ____, shall be subject to redemption, at the option of the Authority, upon at least 45 days prior written notice to the Trustee specifying the date and amount of such redemption, in whole or in part, on any date on or after September 1, _____ (by lot within any maturity and among maturities as specified by the Authority) at a redemption price equal to 100% of the principal amount of Bonds to be redeemed together with accrued interest to the date of redemption without premium.

The Bonds maturing on September 1, 20__ are subject to mandatory sinking fund redemption prior to maturity, in part, on September 1, 20__, and on each September 1 thereafter to maturity by lot, from sinking fund payments at a redemption price equal to the principal amount of such Bonds to be redeemed, together with accrued interest to the date of redemption, without premium, as shown in the Indenture. As provided in the Indenture, notice of redemption of this Bond shall be given by first class mail not less than 30 days nor more than 60 days before the redemption date to the registered owner hereof. If notice of redemption has been duly given and money for the payment of the redemption price is held by the Trustee, then on the redemption date designated in such notice, this Bond shall become due and payable, and from and after the date so designated, interest on this Bond shall cease to accrue and the registered owner of this Bond shall have no rights with respect hereto except to receive payment of the redemption price hereof.

If an Event of Default (as defined in the Indenture) shall occur, the principal of all outstanding Bonds may be declared immediately due and payable upon the conditions, in the manner and with the effect provided in the Indenture; except that the Indenture provides that in certain events such declaration and its consequences may be rescinded by the registered owners of at least a majority in aggregate principal amount of the Bonds then outstanding.

This Bond is transferable only on the books required to be kept for that purpose at the office of the Trustee by the registered owner hereof in person or by his duly authorized attorney upon payment of the charges provided in the Indenture and upon surrender of this Bond together with a written instrument of transfer in a form approved by the Trustee duly executed by the registered owner or his duly authorized attorney, and thereupon a new fully registered Bond or Bonds in the same aggregate principal amount will be issued to the transferee in exchange therefor. The Trustee City Council 38 – 148 6/4/2024
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shall not be required to register the transfer of or exchange any Bond (1) during the period commencing with the close of business on the fifteenth day next preceding any interest payment date and ending on such interest payment date, (2) during the period commencing 15 days before the mailing of any notice of redemption and ending on the day of such mailing, or (3) which has been selected for redemption in whole or in part.

The Authority and the Trustee may deem and treat the registered owner hereof as the absolute owner hereof for the purpose of receiving payment of the interest hereon and principal hereof and for all other purposes, whether or not this Bond shall be overdue, and neither the Authority nor the Trustee shall be affected by any notice or knowledge to the contrary; and payment of the interest on and principal of this Bond shall be made only to such registered owner, which payments shall be valid and effectual to satisfy and discharge liability on this Bond to the extent of the sum or sums so paid.

The rights and obligations of the Authority and of the registered owners of the Bonds may be amended at any time in the manner, to the extent and upon the terms provided in the Indenture, but no such amendment shall (1) extend the maturity of this Bond or reduce the interest rate hereon or otherwise alter or impair the obligation of the Authority to pay the interest hereon or principal hereof at the time and place and at the rate and in the currency provided herein without the express written consent of the registered owner of this Bond, (2) except as otherwise provided in the Indenture, permit the creation by the Authority of any pledge of the Revenues superior to or on a parity with the pledge created by the Indenture for the benefit of the Bonds, and (3) modify any rights or obligations of the Trustee without its prior written assent thereto, all as more fully set forth in the Indenture.

If the Authority shall pay or cause to be paid or there shall otherwise be paid to the registered owners of all outstanding Bonds the interest thereon, the principal thereof and the redemption premiums, if any, thereon at the times and in the manner stipulated herein and in the indenture, then the registered owners of such Bonds shall cease to be entitled to the pledge of the Revenues as provided in the Indenture, and all agreements, covenants and other obligations of the Authority to the registered owners of such Bonds under the Indenture shall thereupon cease, terminate and become void and be discharged and satisfied.

This Bond shall not be entitled to any benefit, protection or security under the Indenture or become valid or obligatory for any purpose until the certificate of authentication and registration hereon endorsed shall have been manually executed and dated by the Trustee. (Balance of this page intentionally left blank.)
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IN WITNESS WHEREOF, the Santa Ana Public Financing Authority has caused this Bond to be executed in its name and on its behalf by the facsimile signature of its Chair and attested to by the facsimile signature of its Secretary, and has caused this Bond to be dated ___________, 2024.

SANTA ANA PUBLIC FINANCING

AUTHORITY
By:

Chair
Attest:

Secretary
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CERTIFICATE OF AUTHENTICATION AND

REGISTRATION
This is one of the Bonds described in the within-mentioned Indenture which has been authenticated and registered on ________________, 2024.

U.S. BANK TRUST COMPANY,
NATIONAL ASSOCIATION, as Trustee
By:

Authorized Signatory
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[FORM OF ASSIGNMENT]
For value received the undersigned do(es) hereby sell, assign and transfer unto_________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ (Name, Address and Tax Identification or Social Security Number of Assignee) the within Bond and do(es) hereby irrevocably constitute and appoint ______________________ _________________________________________ attorney, to transfer the same on the books of the Trustee, with full power of substitution in the premises.

Dated: _______________________
Signature Guaranteed:

Note: Signature guarantee shall be made by a
guarantor institution participating in
the Securities Transfer Agents
Medallion Program or in such other
guarantee program acceptable to the
Trustee.

Note: The signature(s) on this Assignment
must correspond with the name(s) as
written on the face of the within Bond
in every particular, without alteration
or enlargement or any change
whatsoever.

City Council 38 – 152 6/4/2024
PRELIMINARY OFFICIAL STATEMENT DATED JUNE ___, 2024
NEW ISSUE - FULL BOOK ENTRY ONLY RATING: S&P Global Ratings: “____” (See “RATING” herein)
In the opinion of Best Best & Krieger LLP, Irvine, California, Bond Counsel, subject to certain qualifications described herein, under existing statutes, regulations, rules and court decisions, and assuming certain representations and compliance with certain covenants and requirements described herein, the interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, for tax years beginning after December 31, 2022, interest on the Bonds is taken into account in determining the annual adjusted financial stated income of certain corporations for purposes of computing the alternative minimum tax imposed on certain corporations. In the further opinion of Bond Counsel, such interest is exempt from California personal income taxes. See “TAX MATTERS” herein.
$______________*

SANTA ANA PUBLIC FINANCING AUTHORITY
WATER REVENUE BONDS, SERIES 2024
Dated: Date of Delivery Due: September 1, as shown on inside cover The Santa Ana Public Financing Authority Water Revenue Bonds, Series 2024 (the “Bonds”) are being issued pursuant to an Indenture of Trust, dated as of June 1, 2024 (the “Indenture”) between the Santa Ana Public Financing Authority (the “Authority”) and U.S. Bank Trust Company, National Association, Los Angeles, California (the “Trustee”), and will be secured as described in this Official Statement. The Bonds are being issued (i) to refund certain outstanding obligations of the City’s Water System,(ii) to finance a portion of the design, acquisition and construction of certain improvements (the “Project”) to the water system (the “Water System”) of the City of Santa Ana (the “City”), and (iii) to pay certain costs of issuing the Bonds. See “THE PROJECT,” “THE FINANCING PLAN” and “ESTIMATED SOURCES AND USES OF FUNDS.”
The Bonds will be issued in book-entry form, initially registered in the name of Cede & Co., New York, New York, as nominee of The Depository Trust Company (“DTC”), New York, New York. Interest on the Bonds will be payable on March 1 and September 1 of each year, commencing September 1, 20__. Purchasers will not receive certificates representing their interest in the Bonds. Individual purchases will be in integral multiples of $5,000. Payments of principal and interest will be paid by the Trustee to DTC for subsequent disbursement to DTC Participants who will remit such payments to the beneficial owners of the Bonds.

The Bonds are payable from Revenues of the Authority, consisting principally of Installment Payments by the City pursuant to a Master Installment Purchase Agreement, dated as of June 1, 2024, as supplemented by that First Supplement to the Master Installment Purchase Agreement, dated as of June 1, 2024 (collectively, the “Installment Purchase Agreement”) between the City and the Authority. The Authority has assigned, among other things, its right to receive Installment Payments to the Trustee. The Installment Payments are a special limited obligation of the City, payable from and secured by a pledge of and first lien on all Net System Revenues, subject to the parity lien, if any, of outstanding Parity Obligations and any additional Parity Obligations as provided for in the Installment Purchase Agreement, in the Payment Fund held by the City in trust under the Installment Purchase Agreement.

The Bonds are subject to redemption prior to maturity as set forth herein. (See “THE BONDS -- Redemption of the Bonds.”)

THE BONDS ARE LIMITED OBLIGATIONS OF THE AUTHORITY PAYABLE SOLELY FROM AND SECURED SOLELY BY THE

REVENUES PLEDGED UNDER THE INDENTURE AND ARE NOT SECURED BY A LEGAL OR EQUITABLE PLEDGE OF, OR CHARGE OR LIEN UPON ANY PROPERTY OF THE AUTHORITY OR THE CITY, OR ANY OF THE AUTHORITY’S INCOME OR RECEIPTS, EXCEPT THE REVENUES.

THE BONDS ARE NOT A DEBT, OBLIGATION OR LIABILITY OF THE CITY, THE STATE OF CALIFORNIA OR ANY OF ITS POLITICAL

SUBDIVISIONS AND NEITHER THE FULL FAITH AND CREDIT OF THE CITY, THE STATE NOR ANY OF ITS POLITICAL SUBDIVISIONS ARE

PLEDGED TO THE PAYMENT OF THE BONDS, AND NEITHER THE AUTHORITY NOR THE CITY IS OBLIGATED TO LEVY OR PLEDGE ANY

FORM OF TAXATION THEREFOR, AND NEITHER THE CITY, THE STATE NOR ANY OF ITS POLITICAL SUBDIVISIONS IS LIABLE THEREFOR,

NOR IN ANY EVENT SHALL THE BONDS OR ANY INTEREST OR REDEMPTION PREMIUM BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN THOSE OF THE AUTHORITY AS SET FORTH IN THE INDENTURE. NEITHER THE BONDS NOR THE OBLIGATION TO MAKE

INSTALLMENT PAYMENTS CONSTITUTES AN INDEBTEDNESS OF THE CITY, THE STATE OR ANY POLITICAL SUBDIVISION WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION OR RESTRICTION.

This cover page contains information for general reference only. It is not a summary of the security or terms of this issue. Investors must read the entire Official Statement, including the section entitled “RISK FACTORS,” for a discussion of special factors which should be considered, in addition to the other matters set forth herein, in considering the investment quality of the Bonds.

The Bonds are offered when, as and if issued by the Authority, and accepted by the Underwriter, subject to the approval of Best Best & Krieger LLP, Irvine, California, Bond Counsel, and certain other conditions. Certain legal matters will be passed upon for the Underwriter by its counsel, Stradling Yocca Carlson & Rauth, A Professional Corporation, Newport Beach, California, and for the Authority and the City by Best Best & Krieger LLP, Irvine, California. It is anticipated that the Bonds in book-entry form will be available for delivery in New York, New York on [June 27, 2024].

Dated: June __, 2024
* Preliminary, subject to change.

This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

EXHIBIT 7
City Council 38 – 153 6/4/2024

MATURITY SCHEDULE
$__________* Serial Bonds
(Base CUSIP: ___________)
Maturity Date
(September 1)
Principal
Amount
Interest
Rate Yield CUSIP
$__________ _____% Term Bonds Due September 1, ____, Yield: _____%* (CUSIP: ___________)

* Preliminary, subject to change.
 CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of American Bankers Association by S&P Capital IQ. Copyright© CUSIP Global Services. All rights reserved. This data is not intended to create a database and does not serve in any way a substitute for the CUSIP Service Bureau. CUSIP® numbers are provided for convenience of reference only. The Santa Ana Public Financing Authority, the City of Santa Ana and the Underwriters do not take any responsibility for the accuracy of the CUSIP® numbers.

City Council 38 – 154 6/4/2024

SANTA ANA PUBLIC FINANCING AUTHORITY
Valerie Amezcua, Chairman
Thai Viet Phan, Vice Chairman
Benjamin Vazquez, Director
Jessie Lopez, Director
Phil Bacerra, Director
Johnathan Ryan Hernandez, Director
David Penaloza, Director

CITY OF SANTA ANA, CALIFORNIA

COUNCIL MEMBERS
Valerie Amezcua, Mayor
Thai Viet Phan, Mayor Pro Tem, Ward 1
Benjamin Vazquez, Councilmember, Ward 2
Jessie Lopez, Councilmember, Ward 3
Phil Bacerra, Councilmember, Ward 4
Johnathan Ryan Hernandez, Councilmember, Ward 5
David Penaloza, Councilmember, Ward 6

CITY STAFF
Alvaro Nunez, Acting City Manager
Sonia Carvalho, City Attorney
Jennifer L. Hall, Clerk of the Council
Kathryn Downs, Executive Director of Finance & Management Services Nabil Saba, Executive Director, Public Works
Cesar Barrera, Water Resources Manager, Public Works

SPECIAL SERVICES
Bond Counsel and Disclosure Counsel
Best Best & Krieger LLP
Irvine, California
Financial Advisor
Urban Futures Incorporated
Orange, California
Trustee
U.S. Bank Trust Company, National Association
Los Angeles, California
Verification Agent
Causey Demgen & Moore P.C.

Denver, Colorado
City Council 38 – 155 6/4/2024

GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT
No dealer, broker, salesperson or other person has been authorized by the Authority to give any information or to make any representations in connection with the offer or sale of the Bonds other than as contained in this Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person, in any jurisdiction where such offer, solicitation or sale would be unlawful. This Official Statement does not constitute a contract between any Bond Owner and the Authority or the Underwriter.

The information set forth herein has been obtained from sources that are believed to be reliable, but is not guaranteed as to accuracy or completeness, and is not to be construed as a representation, by the Authority. Neither the delivery of this Official Statement nor any sale made hereunder will, under any circumstances, create any implication that there has been no change in the affairs of the Authority since the date hereof. The information and expressions of opinion stated herein are subject to change without notice.

Certain statements included or incorporated by reference in this Official Statement constitute “forward-looking” statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the words “expects,” “forecasts,” “projects,” “intends,” “anticipates,” “estimates,” “assumes” and analogous expressions. The achievement of certain results or other expectations contained in such forward-looking statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those that have been projected. No assurance is given that actual results will meet the forecasts of the Authority in any way, regardless of the optimism communicated in the information, and such statements speak only as of the date of this Official Statement. The Authority disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any changes in the expectations of the Authority with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

All summaries of the Indenture and the Installment Purchase Agreement (as defined herein), and of statutes and other documents referred to herein do not purport to be comprehensive or definitive and are qualified in their entireties by reference to each such statute and document. This Official Statement, including any amendment or supplement hereto, is intended to be deposited with one or more depositories. This Official Statement does not constitute a contract between any Owner of a Bond and the Authority.

The issuance and sale of the Bonds have not been registered under the Securities Act of 1933 or the Securities Exchange Act of 1934, both as amended, in reliance upon exemptions provided thereunder by Sections 3(a)(2) and 3(a)(12), respectively, for the issuance and sale of municipal securities.

The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

While the City maintains an internet website for various purposes, the information provided on that website is not incorporated by reference as part of this Official Statement and none of the information on that website is intended to assist investors in making any investment decision or to provide any continuing information with respect to the Bonds or any other bonds or obligations of the City.

IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR AFFECT

TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.

City Council 38 – 156 6/4/2024

TABLE OF CONTENTS
-iINTRODUCTION ....................................................................1 General ............................................................................1 The Authority and the City..............................................1 Purpose ............................................................................1 Security for the Bonds.....................................................2 Parity Obligations............................................................2 Limited Obligations.........................................................2 Forward-Looking Statements ..........................................3 Summaries Not Definitive ...............................................3 THE FINANCING PLAN.........................................................3 Refunding of Prior Obligations........................................3 The Project ......................................................................4 Environmental Compliance .............................................4 ESTIMATED SOURCES AND USES OF FUNDS.................5
DEBT SERVICE.......................................................................6 THE BONDS ............................................................................7 Description of the Bonds.................................................7 Redemption of the Bonds................................................7 Parity Obligations............................................................9 Subordinate Obligations................................................10 Book-Entry Only System...............................................10 Transfer and Exchange of Certificates...........................10 SECURITY FOR THE BONDS .............................................10 General ..........................................................................10 Net System Revenues....................................................11 Obligations of City Under Installment Purchase
Agreement...............................................................12 Rate Covenant ...............................................................12 Pledge Under the Indenture ...........................................13 Application of System Revenues...................................13 Application of Revenues................................................14 THE AUTHORITY.................................................................16 THE CITY ..............................................................................16 THE WATER SYSTEM.........................................................16 General; Service Area....................................................16 Organization and Staff...................................................17 Water Sales....................................................................18 Land Use........................................................................18 The Project; Future Water System
Improvements..........................................................19 Storage Capacity............................................................19 Water Sources and Supply; Water Purchases................19 MWD Supplies..............................................................24 Water Demand, Deliveries and Sales Revenues............24 Water System Rates and Charges..................................25 Collection Procedures....................................................27 Outstanding Water System Indebtedness.......................28 Largest Customers.........................................................28 Historic Operating Results and Debt Service
Coverage .................................................................29 RISK FACTORS.....................................................................29 Water System Demand and Growth ..............................29 Water System Expenses.................................................30 Parity Obligations..........................................................30 Proposition 218..............................................................30 Constitutional Limit on Appropriations, Fees
and Charges.............................................................31 Limited Recourse on Default.........................................31 No Debt Service Reserve Account ................................31 Limitations on Remedies Available;
Bankruptcy ............................................................. 31 No Obligation or Ability to Tax.................................... 32 Change in Law.............................................................. 32 Geologic and Topographic............................................ 32 Cybersecurity................................................................ 32 Drought Measures......................................................... 33 Climate Change ............................................................ 34 Environmental Regulation ............................................ 35 Risks Associated with OCWD and MWD.................... 35 Impact of State Budget ................................................. 35 Secondary Market for Bonds........................................ 35 Federal Tax-Exempt Status of the Bonds...................... 36 IRS Audit of Tax-Exempt Issues.................................. 36 Taxpayer Protection and Government
Accountability Act Initiative .................................. 36 Global Health Emergencies and
Considerations; Infectious Disease
Outbreak................................................................. 36 TAX MATTERS.................................................................... 37 CONTINUING DISCLOSURE ............................................. 38 NO LITIGATION .................................................................. 39 RATING 39
FINANCIAL ADVISOR........................................................ 39 PROFESSIONAL FEES ........................................................ 39 APPROVAL OF LEGALITY ................................................ 39 UNDERWRITING................................................................. 39 ADDITIONAL INFORMATION .......................................... 40 APPENDIX A – CITY OF SANTA ANA GENERAL
DEMOGRAPHIC INFORMATION.......................... A-1
APPENDIX B – SUMMARY OF CERTAIN DEFINED

TERMS AND PRINCIPAL LEGAL
DOCUMENTS........................................................... B-1 APPENDIX C – FORM OF FINAL OPINION OF
BOND COUNSEL ..................................................... C-1 APPENDIX D – FORM OF CONTINUING
DISCLOSURE AGREEMENT.................................. D-1 APPENDIX E – BOOK ENTRY PROVISIONS................E-1

APPENDIX F - COMPREHENSIVE AUDITED
FINANCIAL REPORT...............................................F-1 City Council 38 – 157 6/4/2024
MAP
City Council 38 – 158 6/4/2024
1 OFFICIAL STATEMENT
$_______________*

SANTA ANA PUBLIC FINANCING AUTHORITY
WATER REVENUE BONDS, SERIES 2024

INTRODUCTION
General
The purpose of this Official Statement of the Santa Ana Public Financing Authority (the “Authority”) is to furnish information regarding the issuance and sale of the Authority’s $_____________* principal amount of Water Revenue Bonds, Series 2024 (the “Bonds”) pursuant to the provisions of an Indenture, dated as of June 1, 2024 (the “Indenture”) between the Authority and U.S. Bank Trust Company, National Association (the “Trustee”). The Bonds will be issued pursuant to the Marks-Roos Local Bond Pooling Act of 1985 (Article 4, Chapter 5, Division 7, Title 1 of the California Government Code) (the “Bond Law”).

The Authority and the City
The Authority was established pursuant to a Joint Exercise of Powers Agreement dated May 8, 2024, between the City of Santa Ana (the “City”) and the Santa Ana Housing Authority (the “Housing Authority”). The Authority was created for the purpose of providing financing for public capital improvements owned and operated by the City and/or the Housing Authority.

The City of Santa Ana, county seat of Orange County and one of the oldest communities in Southern California, is located 35 miles southeast of Los Angeles, 20 miles east of the Ports of Los Angeles and Long Beach, ten miles inland from the Pacific Ocean and 90 miles north of San Diego. The City encompasses an area of approximately 27 square miles and lies on generally level land at an elevation approximately 115 feet above sea level.

The City provides traditional city services, including fire protection services contracted with the Orange County Fire Authority (192 sworn personnel with ten stations) and police protection (384 sworn officers). The City, has over 1,400 employees. The Water System provides water service through the municipal water department to over 45,401 accounts. There are three library locations and 47 parks in the City. Public education for grades K-12 is provided by the Santa Ana Unified School District, the Garden Grove Unified School District, the Orange Unified School District and the Tustin Unified School District.

The City has served as the county seat since the formation of Orange County in 1889. Numerous government offices have taken advantage of the City’s central location and position as county seat. City, county, state and federal offices are conveniently located in the multi-government civic center in the heart of the City.

The City has an industrial base which supports the local economy.

The City Council is composed of six members, in addition to the Mayor. The City Council is elected biannually by ward to four-year terms, in addition to the Mayor, who is directly elected at large for two-year terms.

The Mayor and Mayor Pro-Tem are selected by the City Council. The City has a council/manager form of government. The City Manager is appointed by the City Council to manage the daily affairs of the City and to implement policies established by the Council. For other selected information concerning the City, see “APPENDIX A - CITY OF SANTA ANA GENERAL DEMOGRAPHIC INFORMATION.” Purpose
The Bonds are being issued (i) to provide funds to refund in full the Santa Ana Financing Authority’s Water Revenue Refunding Bonds, Series 2014, delivered in the initial principal amount of $15,690,000, of which $8,905,000 is currently outstanding (the “Prior Obligations”), (ii) to finance a portion of the design acquisition * Preliminary, subject to change. City Council 38 – 159 6/4/2024 2 and construction of certain improvements (the “Project”) to the water system (the “Water System”) of the City, and (iii) to pay certain costs of issuance of the Bonds. The Prior Obligations were issued to refinance outstanding obligations of the Water System and to finance the acquisition and construction of additional improvements to the Water System. See “THE FINANCING PLAN” and “ESTIMATED SOURCES AND USES OF FUNDS” herein.

See “THE WATER SYSTEM” herein for a description of the City’s water system.

Security for the Bonds
The Bonds are payable from Revenues, consisting of Installment Payments made by the City pursuant to a Master Installment Purchase Agreement dated as of June 1, 2024 (the “Master Installment Purchase Agreement”), between the City and the Authority, as supplemented by that First Supplement to Master Installment Purchase Agreement, dated as of June 1, 2024 (the “First Supplement,” and together with the Master Installment Purchase Agreement the “Installment Purchase Agreement”) and funds and accounts held under the Indenture (excluding the Rebate Fund and the Cost of Issuance Fund). Pursuant to the Indenture the Authority has assigned to the Trustee, among other things, its right to receive Installment Payments. The Installment Payments are a special limited obligation of the City, payable from and secured by a pledge of and first lien on all Net System Revenues in the Payment Fund held by the City under the Installment Purchase Agreement subject to the parity lien of outstanding Parity Obligations and additional obligations as provided for in the Installment Purchase Agreement. See “SECURITY FOR THE BONDS.” The Installment Payments are calculated to be an amount sufficient to permit the Authority to pay all scheduled debt service on the Bonds when due. See “APPENDIX B – SUMMARY OF DEFINED TERMS AND PRINCIPAL LEGAL DOCUMENTS.” Parity Obligations
The Water Enterprise currently has two installment sale agreements between the City and the California State Water Resources Control Board which are on a parity with the City’s obligation under the Installment Purchase Agreement, one in the amount of $10,117,365 for the Automated Metering Infrastructure Project (“AMI”), and one for $13,761,712 for the Well 32 Rehabilitation Project. Both projects have an interest rate of

Santa Ana City CouncilJune 4, 2024

Santa Ana City Council
June 4, 2024