20110922 Regular City Council Meeting - MinutesMINUTES OF THE ADJOURNED REGULAR CITY COUNCIL -
LIGHT & POWER MEETING OF THE CITY OF VERNON
HELD SEPTEMBBR 22, 2011, IN THE COUNCIL
CHAMBERS OF THE CITY HALL LOCATED AT
4305 SANTA FE AVENUE, VERNON, CALIFORNIA
MEMBERS PRESENT: Gonzales, Maisano, Newmire
MEMBERS ABSENT: Davis, McCormick
The meeting was called to order at 4:00 p.m. by Mayor Gonzales.
The City Clerk announced that there were no changes to the
agenda.
The City Clerk announced that this was the time allotted for
public comment. The Mayor inquired whether anyone in the
audience wished to address the City Council. No one responded.
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1. Financial transaction with Deutsche Bank.
Carlos Fandino, Director of Light & Power, advised that the
City is approving the assignment of an interest rate swap
agreement with Deutsche Bank. The City currently has two
interest rate swap agreements with Morgan Stanley in
connection with the 2004 Light & Power Electric System Series
A and Series B Bonds. Fandino advised that the proposed
Deutsche Bank swap assignment transaction concerns the Series
B Bonds and provides an additional $20 million credit limit.
In response to a question from Councilman Newmire, Director of
Finance Rory Burnett explained that with the approval of the
Deutsche Bank assignment the City would be in a better
position to manage the last two interest rate swap agreements
with different counterparties, Morgan Stanley and Deutsche
Bank, respectively.
.Counsel Michael Montgomery advised that this will be a safety
net for the City. Fandino further explained that should the
market turn, the City will be given back collateral which will
-- be used to pay off the debt.
Montgomery reported that the market was down 5,000 points.
Montgomery explained that the agreement provides the City
Attorney the authority to effectuate anything for this
transaction. The Resolution approves the novation and the
transfer to Deutsche Bank, adopted by title only.
It was moved by Maisano and seconded by Newmire to approve
Resolution No. 2011-161. Motion carried, 3-0.
Director of Light & Power Department Carlos Fandino reported on
a major gas leak from Southern California Gas Company. The leak
is very significant. The department is trying to get the gas
shut off in the area.
Adjourned Regular City Council -
Light & Power Department Minutes
September 22, 2011
In response to Mayor Gonzales, Fandino advised that there is no
fear of an explosion and that the Fire Department had the
situation under control.
Fandino reported that the no -fly zone in the Tehachapi area has
been raised by 500 feet, which will double the value of the
eastern portion of the land.
At 4:09 p.m., it was moved by McCormick and seconded by Newmire,
to adjourn the meeting. Motion carried.
ATT T:
6W,lard &U, i
City Clerk
William J. Davis
Mayor Pro-Tem
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