Item 23 - Pension Debt Refinancing Update and Underwriter Selection

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i' RAMIREL Ramirez & Co. Investor Model - California City O: Transactions 2017 to Present ? i f0 N C L C f6 O a1U N C C "a . O N y d = d i 10 i= m d d O O C O lag L � 3 > tO i N Rank Investor o w v t7 a a u w z c 2 O a = m 2 c m` 1 Wells Cap Mgmt - - -lm - - - - -JIM - 12 2 Delphi Cap Mgmt - - - - - - - - - 9 3 Earnest Partners - - - - - - - - - - 9 4 Invesco - - - - - - - - - - - - 9 5 JP Morgan - _ - _ - _ - - - - - - - - - 9 6 New Eng Asset Mgmt - - - - - - - - - 9 7 Wellington Mgmt - - - - 9 8 40/86 Advisors 8 9 ACORE Capital - - - - 8 10 Acres Capital - - - - - - - - - 8 11 Bain Capital - - - - - 8 12 Berkshire Hathaway - - - - 8 13 BlackRock 8 14 Flaherty & Crumrine 8 15 GSAM - - - - - - - 8 Expand Investor Demand: Our proprietary database has identified 186 investors that have only purchased one or two POB transaction in the primary or secondary market. We will conduct an aggressive marketing campaign to generate demand from this investor base. Key investors include: AIG, Allianz, Northern Trust, Nuveen, PineBridge, Whitehaven, Eaton Vance, Federated, among others. New Cross -Over and Non -Traditional Buyers: The resurgence of California POBs started with our 2017 Brawley POB, primarily sold to hedge funds and cross -over investors, such as Hopwood Lane, Multi -Bank, Spring Lake Asset Management and Wall Street Access. The POB market has evolved and today, the largest buyers are large bond funds and insurance companies such as Wells Capital and Allstate. As the market has matured, Hedge Funds, SMAs, professional retail investors, pension funds and local governments have become the non-traditional buyers that could expand demand for the City's transaction. Below we list key cross -over buyers within these sectors. The list is not exhaustive and represents only specific cross- over buyers identified in our proprietary POB investor model. ■ Hedge Funds and Proprietary Trading Desks: Manteio Capital LLC, Maritime Capital, Merrill Lynch Prop Trading Desk, Bluefin Trading, Centiva Capital, Morgan Stanley Arb, among others. ■ SMAs and Professional Retail: Santa Barbara Asset Management ■ Pension Funds and Local Gov: Ventura County and Los Angeles DWP (purchased Pomona POBs) Aggressive Scale and Willingness to Underwrite Unsold Bonds: It is critical to enter the market with an aggressive scale after a thoughtful and comprehensive premarketing effort. This approach has produced better than expected results in every POB transaction our team has lead. Additionally, we took this approach on the City's last two transactions to deliver superior results. Our willingness to underwrite was also evident in the City's Gas Tax Refunding Bonds, Series 2019 where our team underwrote unsold bonds without any changes to the scale. We consistently put capital at risk to support the most aggressive pricing and this approach delivers exceptional results for our issuer clients. Complete Transparency to the City and UFI: We commit to provide full disclosure and a transparent process. We will provide (i) access to Ipreo Gameday on the pricing day to ensure access to real time investor order information, and (ii) ongoing market feedback through the structuring process and pricing. POB Marketing Challenges. The most important marketing challenges for POBs in the current market are 1) identifying active POB buyers and 2) articulating the credit strengths of the specific issuer to investors. Leveraging our leadership in the POB space, we have identified the top POB investors above and based on our history with the City, we can articulate the Santa Ana story better than any competitor. Our team is uniquely qualified to address the most critical challenges and lead the City's upcoming POBs. 14