Title
Ordinance No. 14-56 of the City of Colorado Springs, Colorado Approving and Authorizing the Execution and Delivery of a Remarketing Agreement Between the City of Colorado Springs, Colorado and Barclays Capital Inc. Relating to Utilities Revenue Bonds; and Ratifying Certain Action Heretofore Taken
Body
From:
Jerry Forte, P.E., Chief Executive Officer, Colorado Springs Utilities
Summary:
The attached Ordinance addresses the approval and appointment of Barclays Capital, Inc. ("Barclays") as Remarketing Agent for Variable Rate Demand Utilities System Improvement Revenue Bonds, Series 2007A ("the 2007A Bonds").
George K. Baum and Company presently serves as Remarketing Agent for the 2007A Bonds but elected to resign pursuant to Section 1202 of Ordinance No. 07-125 adopted on August 28, 2007. Barclays' response to a competitive RFP was judged to provide the best overall value to the City as the replacement Remarketing Agent. Barclays will replace George K. Baum and Company as soon as practical following approval of the Ordinance by City Council.
Previous Council Action:
City Council approved the following Ordinances authorizing the 2007A Bonds. Subsequent Amending Ordinances approved by City Council for the 2007A Bonds are also listed.
Bond Issue Authorizing Ordinance Amending Ordinances
2007A 07-125 (8/28/2007) 09-103 (8/28/2009)
13-51 (8/27/2013)
Background:
The Bond Ordinances for the City's variable rate bond issues provide that the owners of the bonds may elect (or may be required) in certain instances to tender their bonds for purchase. The Remarketing Agent is an important counterparty in efforts to obtain new owners for tendered bonds within the specified time period for settlement. The Remarketing Agent is also responsible for resetting the weekly variable interest rate that is payable to bond owners, thereby ensuring that the interest rate paid by Colorado Springs Utilities on the bonds...
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