TITLE
Recommendation to adopt resolution authorizing City Manager to execute all documents necessary to amend the Escrow Deposit and Trust Agreement relating to the Long Beach Bond Finance Authority (LBBFA) 2012 Lease Revenue Refunding Bonds Series A and Series B, creating additional accounts to administer, without interruption, Lease No. 17448 between the City of Long Beach and American Golf Corporation. (Districts 3,4,5)
DISCUSSION
On November 13, 2012, the City Council approved the issuance of the LBBFA 2012 Lease Revenue Refunding Bonds Series A and B for the refunding of various outstanding City bonds, including Skylinks Bonds Series 2003, in order to benefit from historically low fixed interest rates. Under the 2012 Lease Revenue Refunding Bonds, the LBBFA and Bank of New York (escrow bank) entered into a Escrow Deposit and Trust Agreement (2003 Escrow Agreement), dated December 13, 2012. The 2003 Escrow Agreement governs those moneys held to retire the 2003 Skylinks Bond Series 2003 on May1, 2013.
Three additional trust accounts must be added to the LBBFA 2012 Lease Revenue Refunding Bonds Series A and B Trust Agreement to appropriately account for and administer the Lease cash flows. An amendment to the 2012 Lease Revenue Refunding Bonds Series A and Series B will add the Revenue Fund, the Golf Course Fund and the Capital Improvement Fund.
This matter was reviewed by Deputy City Attorney Gary J. Anderson and Budget Management Officer Victoria Bell on March 6, 2013.
TIMING CONSIDERATIONS
City Council action is requested on March 19, 2013 to create the three administration accounts under the 2012 Lease Revenue Refunding Bond Series A and B trust agreement prior to the May 1, 2013 bond call date.
FISCAL IMPACT
The recommended action continues the administration for the Skylinks debt without change or interruption. There is no fiscal impact or local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF A FIRST AMENDMENT TO ESCROW DEPOSIT AND TRUST AGREEMENT RELATING TO THE LONG BEACH BOND FINANCE AUTHORITY'S LEASE REVENUE REFUNDING BONDS, 2012 SERIES A, AND TAXABLE LEASE REVENUE REFUNDING BONDS, 2012 SERIES B, AND APPROVING RELATED DOCUMENTS AND OFFICIAL ACTIONS
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER