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Pension Debt Refinancing Update and Underwriter Selection <br />May 18, 2021 <br />Page 2 <br />Request for Proposal (RFP) — Underwriter Services <br />The City advertised Request for Proposal (RFP) No. 21-025 on February 19, 2021 via <br />PlanetBids. In addition, UFI submitted the RFP directly to ten (10) established <br />underwriting firms serving the municipal sector with experience in refinancing pension <br />debt. A summary of the RFPs and offers received is as follows: <br />• 15 Vendors were notified <br />• 11 Vendors downloaded the RFP <br />• 0 Santa Ana vendors notified <br />• 10 Proposals received <br />UFI evaluated all 10 proposals and recommended the City interview seven of the firms. <br />A committee reviewed the proposals and conducted the interviews. The committee <br />included the following: <br />• City staff - Executive Director of Finance and Management Services Agency <br />(FMSA) and Assistant Director of FMSA <br />• Stradling Yocca Carlson Rauth — Validation Counsel <br />• Urban Futures Inc. — Financial Advisor <br />The Committee evaluated proposals based on the following factors: <br />• Experience of firm personnel <br />• Distribution capabilities (i.e. ability to identify investors who will purchase the <br />bonds) <br />• Structuring of transaction ideas / analysis of transaction / related marketing plan <br />for sale of debt <br />• Proposed fees <br />The Committee determined the best approach was to select multiple underwriters, <br />referred to as a "Syndicate", with one underwriter acting as the Senior Manager and two <br />additional underwriters serving as Co -Managers. This approach ensures the City sells <br />bonds at the lowest interest rate, to reduce borrowing costs and increase pension debt <br />refinancing savings. <br />After evaluating proposals and conducting interviews, the Committee recommends the <br />following Underwriting Syndicate: <br />• Bank of America Securities, LLC (BofA) , Senior Manager (Los Angeles, CA) <br />• Stifel Financial Corp. (Stifel), Co -Manager (Los Angeles, CA) <br />• Ramirez & Co, Inc. (Ramirez), - Co -Manager (Los Angeles, CA) <br />BofA maintains a significant international presence with capacity to market and sell to <br />both national and international investors; has experience issuing large pension debt <br />refinancings within the State of California; and has experience leading various <br />Underwriting Syndicates. Stifel specializes in municipal bonds, including pension debt <br />