Title
Ordinance No. 21-61 of the City of Colorado Springs, Colorado Approving and Authorizing the Execution and Delivery of a Notice Regarding Extension of a Standby Bond Purchase Agreement by and Among the City of Colorado Springs, Colorado, Barclays Bank Plc, and Wells Fargo Bank, National Association, as Tender Agent and Paying Agent, and a Letter Agreement by and Among the City of Colorado Springs, Colorado, Barclays Bank Plc, and Wells Fargo Bank, National Association, as Tender Agent and Paying Agent, Relating to the City of Colorado Springs, Colorado, Variable Rate Demand Utilities System Improvement Revenue Bonds, Series 2010c; and Providing Other Matters Relating Thereto.
Presenter:
Tristan Gearhart, Acting Chief Planning and Financial Officer, Colorado Springs Utilities
Aram Benyamin, Chief Executive Officer, Colorado Springs Utilities
Body
Summary:
The Ordinance addresses approval of an extension to a Standby Purchase Agreement ("SBPA") for the Variable Rate Demand Utilities System Improvement Revenue Bonds, Series 2010C. The current SBPA for the Bonds is set to routinely expire this fall. Utilities has elected to renew the existing 2010C SBPA agreement with Barclays Bank PLC for a term of four years.
Background:
The Bond Ordinance for the City's 2010C Bonds require that the City "maintain a Liquidity Facility in full force and effect at all times when the bonds are bearing interest at a Variable Rate other than Auction Mode Rate, except as otherwise provided in Section 1212 of the Bond Ordinance". A Standby Bond Purchase Agreement is one of the acceptable financial instruments to provide liquidity for the City's variable rate bond issues.
Previous Council Action:
City Council approved the Ordinance authorizing the 2010C bonds as well as all corresponding past Standby Bond Purchase Agreements and amendments associated with this issuance.
Financial Implications:
The City's resulting overall cost for liquidity will decrease as a...
Click here for full text