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STIFEL March 11, 2021 Kathryn Downs Executive Director of Finance & Management Services Agency City of Santa Ana 20 Civic Center Plaza Santa Ana. CA 92701 Re: Proposal to Provide Underwriting Services Dear Kathryn, Thank you for the opportunity to present our qualifications to provide underwriting services to the City of Santa Ana (the "City") on its proposed pension obligation bonds (the "POBs"). Whether the City decides to refinance all or a portion of its unfunded pension liabilities, this is likely to be the largest and most important financing the City undertakes for decades to come. We understand the magnitude of that sheer fact and, in turn, the magnitude that even a 1 or 2 basis point difference can have. So why entrust this borrowing to Stifel? We could argue many reasons, but most important is our consistency setting the lowest FOB credit spreads and our proven track record of selling POBs successfully in all types of markets for a wide range of California cities with different attributes (i.e. ratings, name recognition, size, etc.). Additionally, please consider the following! #1 California Bond Underwriter. #1 Taxable Bond Underwriter_ #1 Pension Bond Underwriter_ Since 2019, Stifel has brought to market 569 California bond issues totaling $14.3 billion, making us the #1 underwriter by number of issues with a market share of 24%. During the same time, Stifel has led 118 taxable financings totaling $3.6 billion and senior managed 7 pension obligation bonds totaling $989 million, which includes the recent sale of the $287 million City of Orange PORs. Additionally, Stifel is set to lead manage next week's $363 million Huntington Reach PORs. Our primary market presence keeps Stifel's sales professionals in constant dialogue with the buyers of California credits to understand their portfolio needs and credit apprehensions. Distribution Platform that Combine to Deliver Aggressive Pricing. Stifel is one of the few underwriting firms doing business in California that underwrites California bonds from a California underwriting desk. In fact, the firm has 3 California underwriters on 2 California underwriting desks. Our underwriters' knowledge of California communities facilitates our ability to match buyers with communities and credits that meet these investors' varying investment criteria. Furthermore, our sales platform includes 22 institutional municipal sales specialists, approximately 200 fixed -income generalists and 280 retail sales professionals among 36 California private client offices. Sale of taxable bonds to overseas buyers is led by Michael Levy, the Head of Institutional Sales for Stifel Europe. Michael oversees 20 institutional sales people covering European corporations, sovereign funds, pension funds and other European - based asset managers. We will leverage all corners of this distribution network to drive down interest rates on the City's PCBs. Selectnentn 1®, lP iy Incomparable Experience with Local Credits. I;n=c20-G Stifel has extensive experience working with a ; public agencies throughout Orange County. < < M C9',ie�' The accompanying map highlights issuers forI m, which we have served since 2016. This vast "' ® "' experience of working with all of the City s � J C. neighbors provides our banking and underwriting team with n better ^° ®, understanding of local credits and Insights on ..cn� ,, xoac roe: appropriate pricing levels. w�«��n.�. „�. I, . City Council 23 — 200 5/18/2021