City of Colorado Springs
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File #: 19-611    Version: Name:
Type: Ordinance Status: Mayor's Office
File created: 9/25/2019 In control: City Council
On agenda: 12/19/2019 Final action: 12/19/2019
Title: Ordinance No. 19-98 of the City of Colorado Springs, Colorado authorizing the termination by the City of existing Interest Rate Exchange Agreements delegating to the Utilities Chief Executive Officer or the Utilities Chief Planning and Financial Officer (or the Acting Chief Planning and Financial Officer, as applicable) the authority to determine the financial terms of transactions terminating such agreements; ratifying action heretofore taken and relating to such agreements; and providing other matters relating thereto Presenter: Scott Shewey, Acting Chief Planning and Finance Officer, Colorado Springs Utilities Aram Benyamin, Chief Executive Officer, Colorado Springs Utilities
Attachments: 1. Swap Termination Ordinance 2019 4848-8831-7352_3 clean, 2. Signed Ordinance 19-98.pdf

Title
Ordinance No. 19-98 of the City of Colorado Springs, Colorado authorizing the termination by the City of existing Interest Rate Exchange Agreements delegating to the Utilities Chief Executive Officer or the Utilities Chief Planning and Financial Officer (or the Acting Chief Planning and Financial Officer, as applicable) the authority to determine the financial terms of transactions terminating such agreements; ratifying action heretofore taken and relating to such agreements; and providing other matters relating thereto

Presenter:
Scott Shewey, Acting Chief Planning and Finance Officer, Colorado Springs Utilities
Aram Benyamin, Chief Executive Officer, Colorado Springs Utilities

Body
Summary:
The attached Ordinance addresses the delegation of authority from City Council to the Utilities Chief Executive Officer or the Utilities Chief Planning and Financial Officer (or the Acting Chief Planning and Financial Officer, as applicable) to determine the financial terms terminating existing Interest Rate Exchange Agreements. The delegation of authority will enable the Utilities to react quickly to changing financial market conditions in making the decision to terminate interest rate exchange agreements. This delegation of authority is only applicable for calendar year 2020.

Background:
The City has entered into individual Interest Rate Exchange Agreements associated with its outstanding variable interest rate bonds. Under these Agreements the City and a counterparty exchange payment, thereby creating a synthetically fixed interest rate for the City's variable interest rate bonds. The City wants to strategically exit one or more of these Agreements when financial markets provide an opportunity. The financial markets can change rapidly, and the capability to quickly terminate Agreements can have a large financial impact. Delegating authority to the Utilities Chief Executive Officer or the Chief Planning and Financial Officer will enable...

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