Adoption of Resolutions Authorizing the City of Alameda and the Alameda Public Financing Authority to Commence Proceedings in Connection with the Substitution of the Letter of Credit relating to the Alameda Public Financing Authority Variable Rate Demand Revenue Bonds, 2003 Series A and Series B (Alameda Point Improvement Project). [City Council and APFA] (Finance 10024051)
The finance director and Bond Staff Balance Council. And I believe the letter of creditors is also joining. So they are coming in momentarily. Coming in. Okay, great. I see Ms.. TOS name on the screen and now I see her in person. Welcome. Hi. Thank you. Good. Good evening. Mayor. And some members of the City Council. My name is Anita. I'm here to present this item for you tonight. With me tonight is also. Up on council. Ryan Quinn, as well as members from. Wells Fargo team who are here to answer any questions you may have. Just a little bit of background in April of 2016. Union Bank was hired by the city to. Provide a letter of credit for the Alameda Public Financing Authority Variable Rate Demand Bonds known as Alameda Point Improvement Project. For $9,080,000.23 Series A and 4,000,003 360,000. For the 2003 Series. B bonds for the taxable taxable bonds. As background, Alameda Public Financing Authority issued a total of approximately 12.4 million and variable rate bonds. Related to allow me to point in 2003, the source of repayment for these bonds as a rental income received from properties managed by the city's Base Reuse Department. Union Bank expired in. The LLC, with Union. Bank expire in June 14 of 2021. Fortunately, the city was able to receive an extension until November 15, 2021. With that extension, however, Union Bank increased the fee from 115 basis point to 125 basis points. Plus they charge a one time fee of 5000 for the one time extension. Union Bank has told us that they will not extend the LLC beyond the November 2021 expiration date. The market for the city's LLC is very limited because of the small size of the outstanding bonds. Typically, banks prefer large deals so they can. Fine spread the cost of the. Transaction over the size of the bonds. So the city reach out to other banks about providing a. Letter of credit only. To banks to express interest. U.S. Bank in Wells Fargo. Wells Fargo stepped. Up and submitted a term sheet which offer a three year. LLC at 100 basis points to the city. So is my. Recommendation that we proceed with the substitution of the letter of credit. A bond counsel, Brian Quinn, is here to answer. Any questions that you may have. Thank you very much. Thank you for that clear and concise report. Ms.. TA And Madam Clerk, I meant to ask, do we have public speakers on this item? We do not. Okay, so I'll close public comment. So then, counsel, I will open the floor to counsel for any clarifying questions for a motion. What's your pleasure? By my count, from every next flight. I'd be happy to move approval of the staff provider resolutions. All right, Councilmember Spencer. All right. Any further council discussion? All right. We really appreciate all you representatives of Wells Fargo, Aspen Council for being here. Welcome. We'll get you home early tonight. Okay. So seeing no discussion. Madam, may we have a roll call vote, please. So, member day. Thank. Yes. Herrera Spencer. I knocked like. High. Villa. I may or as the ashtray. I. That carries by five. All right. Thank you. Thank you, Mr. Two. Thank you to our guests. And we look forward to to working with you going forward. All right. That set a record for the. I hope that's a trend that is just starting to play out tonight. Garrett, thank you all. Good evening. All right. So then I'm going to adjourn that special joint meeting of City Council and Alameda Public Financing Authority. And we will move on to the regular city council meeting and may we have the roll call please. Welcome has been voted five present and there are 64 attendees on the zoom. Thank you for remembering to say that. All right. 64 I'm at 55 change just out and I said it wrong do. That was because the Wells Fargo crew left and took their entourage with them I guess. But anyway. Our next item is item two agenda changes. Do we have any agenda changes? Council member. Not quite. I see your hand up.