Item 23 - Pension Debt Refinancing Update and Underwriter Selection

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(9)CITY OF SANTA ANA Provide assistance in closing the bond issue. J. Prepare a post -sale analysis, including, but not limited to, information on placement of the bonds, market conditions at the time of sale, orders, designations, allocations and results of comparable sales. In addition, the City expects the Underwriter, as part of their responsibilities to investors under Federal securities laws, to conduct such review as is necessary to attain a reasonable basis for belief in the accuracy and completeness of the key representations in the Official Statement. IV. PROPOSED 2021 PENSION OBLIGATION BONDS A. It is the City's current expectation to issue pension obligation bonds by December 31, 2021. Describe how your firm would structure the proposed 2021 POBs on a traditional fixed rate basis assuming a not to exceed par value of approximately $671 million (90% of the UAL) and $372 million (50% of the UAL). Please provide the coupons on a maturity -by -maturity basis and the overall True Interest Cost (TIC). Identify spreads to Treasuries on a maturity - by -maturity basis. Furthermore, provide comparable pricing information that supports your proposed spreads to Treasuries. Also, please include a Sources and Uses of Funds with a detailed breakout of all cost assumptions. B. Given current market conditions and interest rate environment, please recommend the optimal POB structure, including any structuring ideas that may be appropriate for refinancing the UAL. Please discuss any specific structuring considerations that may pertain to POBs in general including the specific bases to be funded with POB proceeds.. In your discussion of any alternative financing ideas that the City should consider, please be clear as to the risks and/or considerations involved with the potential structure. C. The City has no outstanding POBs or outstanding General Fund bonded indebtedness. The City's last General Fund rating was provided by S&P in February 2016 as AA/Stable. Please discuss your credit strategy, including assumed credit rating for the proposed POBs, and any effect you believe the proposed POBs will have on the City's credit. D. Discuss the investors you would target for the City's POBs. Briefly discuss your firm's marketing strategy for placing the City's POBs, including whether or not you would use a formal investor relations program and/or internet roadshow. Describe any challenges in the marketing of POBs by a California municipality in the current market. E. In what circumstances, if any, would you recommend a private placement of POBs rather than a public offering? What would be the pros and cons of such a strategy? F. Describe a recent engagement your firm was involved in a debt issuance in which there were multiple underwriters engaged. V. AGREEMENT The successful proposer would be required to engage Counsel (i.e. Underwriter's Counsel) in drafting various agreements related to this engagement. RFP No. 21-025 Underwriting Services for Pension Refinancing Bonds Page 4 of 24