Key Tenets to the Public Asset Monetization Purchase Keep the Public Assets (“System”) in Public Hands Deliver meaningful Upfront Proceeds to the Municipality (“City”) to maximize Sale benefits Capture and pledge all cash flow towards the repayment of debt and the maintenance of the System Professionally manage the System During the Concession Period Return professionally-maintained System and ALL remaining Capital back to the City after Concession / Lease Term 1 Proprietary and Confidential

Public Ownership Structure Owner of Public Assets (“System”) would be an independent Special Purpose Entity (“SPE”) – Could be newly-formed or existing SPE would issue tax-exempt bonds to acquire the System – SPE would not have recourse to or guarantees from the Municipality (“City”) – Acquisition bonds secured solely with System’s revenues Authority governance (charter or indenture) would require System to be operated and maintained for benefit of the underlying City System operations would be professionally managed by highly qualified and well-established private sector firms – Private sector contracts would need to be Qualified Management Contracts under IRS rules 2 Proprietary and Confidential

3 Structural Overview – Maintain Public Ownership Special Purpose Entity Guggenheim Capital and Underwriting Guggenheim Capital and Underwriting Firm A Asset Manager Firm A Asset Manager Firm B Operator Firm B Operator Bond Purchase Agreement Bond Purchase Agreement Asset Management Agreement 1 Asset Management Agreement 1 Concession Agreement Concession Agreement Operator Agreement 1 Operator Agreement 1 1 These agreements are subject to IRS Qualified Management Agreement requirements City Governance Proceeds Senior Lien Bonds Subordinate Lien Bonds Proprietary and Confidential

4 Flow of Funds – Maximizing Value for the Public Good Capital Reserves Constant Reinvestment in Assets Capital Reserves Constant Reinvestment in Assets Public Benefits Assets and All Surplus Cash Revert to City Public Benefits Assets and All Surplus Cash Revert to City Public benefits from modernization and private sector expertise optimizes revenues Private management creates efficiency Public ownership minimizes cost with tax- exempt cost of capital and avoids the need to pay equity returns Revenues Without a need to pay equity returns, all excess cashflow is reinvested into the System with the ultimate return of the assets and surpluses to the City Operating Expenses Senior Lien Debt Service Junior Lien Debt Service Remaining Funds Proprietary and Confidential

Debt TrancheStructuring Assumptions First, Senior Lien Bonds (A-rated) 40 yr fully amortizing fixed rate 1.50x debt service coverage from 2011 NOI Second, Second Senior Lien Bonds (BBB-rated) 40 yr fully amortizing fixed rate 1.25x debt service coverage from 2011 NOI Third, Subordinated Lien Bonds (Not-Rated) 40 yr fully amortizing fixed rate Claim on all remaining cashflows Turbo based on excess cashflows Illustrative Capital Stack 5 Proprietary and Confidential NOI *Preliminary underwriting. Subject to revision upon further review of data.

Debt Service versus projected System NOI Illustrative Debt Structure: Debt Service versus projected System NOI 6

Debt Service Detail: Principal and Interest Illustrative Detailed Debt Structure: Principal and Interest 7