RECOMENDATION
Adoption of a resolution authorizing the removal of U.S. Bank Trust National Association as the trustee for existing Airport Revenue Bonds and appointing BNY Western Trust Company as the trustee for the existing Airport Revenue Bonds effective August 14, 2001 and to authorize other related actions
BACKGROUND
On June 26, 2001, the City Council took various actions related to the issuance of the Series 2001A Airport Revenue Bonds. One of these actions was to replace U.S. Bank Trust National Association, the trustee for the existing Airport Revenue Bonds, with U.S. Trust Company of California (now known as BNY Western Trust Company) effective with the closing of the new Series 2001A Airport Revenue Bonds. As described below, it is necessary to revise the City Council’s authorization in order to make the appointment of the new trustee effective on August 14, 2001.
ANALYSIS
The new trustee, formerly known as U.S. Trust Company of California, has completed a merger and is now known as BNY Western Trust Company (“BNY”).
On August 1, the existing trustee informed City staff that it does not want to continue to act as the trustee past the opening of business on August 14, 2001. Although the planned closing date for the Series 2001A Airport Revenue Bonds is 8 a.m. on August 14, it is possible (though unlikely) that the transaction could be delayed. BNY is willing to act as trustee for the existing bonds, whether or not there is a delay in the closing for the new bonds. Accordingly, it is recommended that the City Council adopt a resolution removing U.S. Bank and appointing BNY as the trustee of the existing Airport Revenue Bonds, effective with the opening of business on August 14, 2001 whether or not the Series 2001A closing occurs on this date and authorizing the Director of Finance, or the Director’s authorized designees, to take the necessary actions to effectuate this appointment.
The Council action appointing BNY Western Trust as the trustee for the new Series 2001A Airport Revenue Bonds.
PUBLIC
OUTREACH
Not applicable.
RICHARD DOYLE
City Attorney
By
Danielle Kenealey
Sr. Deputy City Attorney