June 27, 2025 #1 Local News, Information and Event Source for the Century City/Westwood areas.

City Council votes to renegotiate or terminate deals with two banks regarding wastewater systems

 

Fix L.A., an advocacy group, convinced city leaders to get out of "toxic" deals with Bank of New York Mellon and Dexia, a European bank. (Thinkstock)
Fix L.A., an advocacy group, convinced city leaders to get out of “toxic” deals made in 2006 with Bank of New York Mellon and Dexia, a European bank. (Thinkstock)

The City Council voted Wednesday to try to renegotiate or terminate so-called interest-rate swap deals the city made with two banks in 2006 to finance wastewater system upgrades.

The action came after Fix L.A., an advocacy group that includes city employees and residents, pressed city leaders to get out of what they called “toxic” deals with Bank of New York Mellon and Dexia, a European bank.

On a 14-0 vote, the council instructed its financial staff to try to renegotiate the deals and report back in a month on the status of negotiations.

The council also asked City Attorney Mike Feuer to explore “legal remedies” against the two banks if the city cannot rework the loans.

If the banks refuse to negotiate, City Administrative Officer Miguel Santana will have to report back with the pros and cons of pursuing termination of the deals. Santana told the council today the banks have already refused to renegotiate and that terminating the deals would prove costly for the city.

Councilman Paul Koretz, the author of the motion, responded that Santana “has absolutely no credibility on this issue.”

Koretz suggested that the city attorney take the lead in renegotiating the deals.

It was unclear if Feuer has the authority to take on the renegotiation process, with Councilman Bernard Parks noting that the city charter may not allow it.

“If it were at all possible, I would like the City Attorney do it,” Koretz said.

The city struck the deals with the banks in 2006, essentially refinancing more than $300 million in bonds that were issued in the 1980s and locking in what was then considered a low fixed interest rate. But interest rates eventually dropped even lower thanks to a national recession. Officials from Fix L.A. contend the city has paid more than $100 million in interest to the banks.

Related Posts

Café UCLA Pops Up in Westwood to Honor Arthur Ashe’s Historic Wimbledon Win

June 27, 2025

June 27, 2025

Three-Day Celebration Includes Giveaways in Tribute to the Iconic Athlete and Activist UCLA will commemorate the 50th anniversary of Arthur...

Captain America Hits the Skirball Big Screen for Heroic Outdoor Movie Night

June 27, 2025

June 27, 2025

Museum-Goers Can Also Catch a Superhero-Themed Drawing Session The Skirball Cultural Center will host an outdoor screening of Captain America:...

Demolition Underway at Beverly Grove Squatter Site After Mystery Fire Renews Safety Fears

June 27, 2025

June 27, 2025

Crews Begin Tearing Down Long-Vacant Apartments on First and Flores  Demolition has begun at a group of long-abandoned apartment buildings...

(Video) Welcome to the Urban Jungle — where nature meets the city and style meets soul

June 26, 2025

June 26, 2025

Whether you’re chasing that gritty city energy or carving out a green oasis in your space, we’re here to help...

Santa Monica Police Arrest Shooting Suspect After Officer Ambushed Near Downtown Mall

June 26, 2025

June 26, 2025

Man Linked to Waymo Vehicle Gunfire Taken Into Custody Following Tense Manhunt The suspect wanted in connection with a shooting...

Brentwood Weekend Specials: $9 Wine & Street Tacos, Blush-Inspired Lattes & Beauty Swag

June 26, 2025

June 26, 2025

Street Tacos and Wine Meets Self-Care in Brentwood and Santa Monica Brentwood Fine Wines will welcome back local culinary favorite...

Michelin Stars Shine Bright on LA: Somni West Hollywood and Providence Earn Top Honors

June 26, 2025

June 26, 2025

Two Restaurants in Los Angeles Receive Three Stars as Michelin Guide Celebrates Bold Flavors The MICHELIN Guide California 2025 celebrated...

Cherished Culver City Ice Cream Vendor Abducted in Broad Daylight

June 26, 2025

June 26, 2025

Ambrocio “Enrique” Lozano’s Disappearance Led To Grassroots Action Ambrocio Lozano, also known in the neighborhood as Enrique, was abducted around...

Brentwood Home by Landry Design Group Wins Top National Architecture Award

June 25, 2025

June 25, 2025

Landry Design Group Wins Gold Nugget Awards for Brentwood, Crestwood Projects Landry Design Group (LDG) earned two top honors at...

(Video) WISE & Healthy Aging Helps Loved Ones Boost Their Quality of Life

June 24, 2025

June 24, 2025

See How the Nonprofit’s Innovative Programs Advance the Dignity of Life for Older Adults See How the Nonprofit’s Innovative Programs...

Masked Federal Agents Detain Iranian Asylum Seeker and Wife in Westwood

June 24, 2025

June 24, 2025

31-Year-Old Woman was Hospitalized After Possible Medical Emergency On Tuesday, June 24, between 11:00 a.m. and 11:30 a.m., near the...

Los Angeles Leaders Push to Ban Masks for Federal Agents Amid Immigration Raids

June 24, 2025

June 24, 2025

Concerns Grow Over Anonymous ICE and CBP Officers in Los Angeles   A growing coalition of California lawmakers and local leaders...

(Video) Food Fight: Chefs Join Forces to Raise Money to Protect Immigrant Families in Venice

June 24, 2025

June 24, 2025

Estrano, Little Dynamite, Sunday Gravy, Kabob Senpai Answer the Call From Turk’s Pizza Party. Dave Turkel Put This Food Resistance...

Squatter-Plagued Beverly Grove Buildings Could Be Razed After Hazard Cleanup

June 24, 2025

June 24, 2025

Demolition of Three Abandoned Apartments May Begin in Two Weeks Three abandoned apartment buildings in Beverly Grove may soon be...

From Westwood to DTLA, Angelenos March Against Military Escalation in Iran

June 23, 2025

June 23, 2025

Protestors Rally at the Westwood Federal Building This Weekend Following President Donald Trump’s authorization of airstrikes on three Iranian nuclear-related...