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Internet Roadshow: Given the size of the offering, we recommend the use of a slides -only online investor <br />i, presentation to provide an overview of the City's credit and the POBs. <br />Internal Sales Call: Our banking team will orchestrate a call internally with our sales team prior to pricing to <br />address details of the transaction, as well as highlight key credit metrics relevant to the City's general fund <br />and the nature of the POBs. <br />One -On -One Investor Calls: Finally, we have seen increased interest from investors for one-on-one calls with <br />issuers relating to sensitive credit types, such as POBs. BofA's credit strategies team, in connection with BofA's <br />sales team, could help assist in arranging these calls, as investors express interest. <br />Retail Marketing Plan. To maximize local retail participation within the City, Orange County and the State, we <br />would employ the following strategies: <br />Establish Local Retail Priority: We could provide first priority for orders placed during the order period to be <br />filled for: 1 City of Orange and potentially Orange Count residents as well as Money Managers identified <br />�— () Y g p Y g Y Y g (� <br />by zip codes), (2) California Retail, and (3) National Retail investors. <br />Dedicated California Retail Liaison: Grace Gaoaen, our lead California -based retail marketing specialist, will <br />oversee our in -State and local retail marketing to ensure we solicit individual retail orders from our Merrill <br />and Bank of America Private Bank retail financial advisors in advance of the bond sale. <br />Print and Electronic Advertisements: To drive further attention to the City's website or landing page, the City <br />could also place print and/or electronic advertisements in local publications. <br />Proposed6. Structuring Ideas and Marketing Plan for <br />Provide a brief summary of your specific structuring ideas including the assumptions of which Ca1PERS UAL bases to fund the maximize savings based on <br />the two scenarios described above. Describe how Proposer would lead the transaction as a senior manager. Specifically, provide your strategies and <br />approaches to help ensure the transaction is executed efficiently. <br />Proposed Work Approach. BofA is fully committed to designing a plan of finance as well as a credit and marketing <br />approach that meets the City's goals. As the City's senior manager, BofA will work with the City and its municipal <br />advisor during next phases of the City's financing process (per the City's February 2nd presentation), as detailed <br />below, to help ensure that the transaction is executed efficiently. <br />0 Prepare various bond structuring options (e.g. unfunded actuarial liability ("UAL") funding level, selection of <br />amortization bases, payment structure and term) and sensitivity analysis based on various reinvestment scenarios <br />utilizing BofA's proprietary modeling and optimization capabilities <br />0 Develop a finance plan that directly addresses the City's objectives and can be tailored further based on City staff <br />and Council feedback, sensitivity analyses and market conditions <br />0 Ongoing participation in financing team and City Council calls/meetings; help address City Council questions <br />4evelop a Specific Plan and Implementation <br />0 Comprehensive review of bond and disclosure documentation <br />0 Ongoing market and financing updates <br />0 Prepare rating agency materials/presentations and rating negotiations with direct involvement of BofA's in-house <br />rating/credit specialists <br />0 Implement a marketing plan that leverages our extensive investor relationships with taxable bonds and experience <br />with POBs to reach a broad investor audience <br />0 Manage underwriting syndicate, solicitation of price views and development of consensus scales <br />0 Leverage our large capital position and capabilities as the #1-ranked senior managing municipal underwriter <br />nationally with the objective to price the City's bonds at the most competitive pricing levels available in the market <br />0 Underwrite bonds to support the City's pricing at market levels <br />Structuring Approach. The City and its municipal advisor have spent an extensive amount of time analyzing the <br />City's pension liability and evaluating potential funding strategies. As the City works toward refining its analysis <br />and educating stakeholders, BofA can be instrumental in working with the City and its municipal advisor to <br />evaluate potential financing options (e.g. UAL amortization base selections, UAL funding levels and payment <br />1Wiil_19 1 Page 8 BofA SECURITIES ���� <br />