25F - AGMT FOR FINANCIAL ADVISORY

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City of Santa Ana, California Proposal for Municipal Financial Advisory Services March 12, 2020 cash flow in the years with the most meaningful impact on the City's general fund. The refinancing shortened the final maturity of the debt by 2 years to keep the overall economics comparable to a proportional savings structure. On the day of pricing, UFI encouraged the underwriter to go out with aggressive rates, resulting in credit spreads on the final pricing representing the lowest spreads of any TAB sold to date. The refunding generated total cash flow savings of $27.7 million and net present value savings of $15.11 million, or over 27% of refunded par. The front -loaded savings structure resulted in an average annual cash flow savings of $4.76 million in each of 2019, 2020 and 2021 and $1.6 million in 2022. The City's share of the increased residual RPTTF revenues is estimated to be almost $1.4 million in each of 2019, 2020 and 2021 and $470,000 in 2022. Water/Wastewater Experience City of Culver City Wastewater Facilities Revenue Bonds— UFI advised the City of Culver City on the sale of its 2019 A Wastewater Facilities Revenue Bonds, which were issued to refund existing bonds and finance $12 million of capital improvements. UFI was selected as municipal advisor by the City in June 2019 via a competitive bid process. Once selected as municipal advisor, we assisted the City in issuing RFPs for bond/disclosure counsel and making selections of those firms. UFI worked diligently with the City to identify capital projects to be debt financed. At the time of the sale, the City maintained a large amount of excess cash reserves. UFI advised the City on an appropriate reserves level and advised on how to use excess cash for its capital spending program and to address the pension liability allocated to its wastewater enterprise. UFI was instrumental in the credit analysis and structuring of the issues. Given the large variances in payments the City makes to the City of Los Angeles for wastewater treatment, UFI helped to structure the 2019 Bonds to maintain target coverage in line with S&P's fixed -charge coverage methodology. The efforts resulted in the rating being affirmed at AA - and a successful sale. Pension Obligation Bond Experience City of Glendora Pension Obligation Bonds (POBs) — In 2019, through a competitive process UFI was engaged as municipal advisor to the City of Glendora. The scope of services included the development of a pension amortization model to quantify an appropriate par amount for the bonds based on the City's $64 million liability, assisting in the strategy of credit and on the development of the credit presentation, and advising on the pricing of the bonds. In August 2019, the City's Series 2019 Pension Obligation Bonds were awarded a natural "AAA" rating from S&P. To put this into perspective, there are only 16 "AAA" rated cities in California and only 8 "AAA" rated city -issued POBs in California. The taxable bonds priced at historically low interest costs with a final True Interest Cost (TIC) of 2.81%. The savings to the City's pension obligation as a result of the bond sale is estimated at $33 million. vi. Debt issuance expertise We are privileged to have had the opportunity to serve the City as municipal advisor on multiple bond financings. Since 2014, we have served on three financings for the City for a total of $133 million of par. Most recently we served as advisor on the 2019 Gas Tax Bonds refunding. As part of that financing, UFI led a process resulting in the State Controller's Office approval of the refunding of the previous gas tax COPS. Prior to the 2019 financing, we advised on the 2018 Tax Allocation Bond refunding, and the 2014 VUH 25F-24