June 6, 2025 The Best Source of News, Culture, Lifestyle for Culver City, Mar Vista, Del Rey, Palms and West Los Angeles

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

(Video) See How CO2 Laser Treatment Removes Wrinkles and Scars

June 5, 2025

June 5, 2025

To Book an Appointment, Go to Mirrormirrormedspa.com To Book an Appointment, Go to https://t.co/bRbXYRnypq pic.twitter.com/SrDuMY9K2Q — Westside Today (@WestsideLAToday) June...

Film Review: Dangerous Animals

June 4, 2025

June 4, 2025

By Dolores Quintana There’s nothing quite like a good shark horror movie, especially since we are heading into summer. With...

Erewhon and LGBTQ Singer Kali Uchis Serve Summer Smoothie for a Good Cause

June 4, 2025

June 4, 2025

The Sincerely Smoothie Blends Passionfruit, Pitaya, and Malk Coconut Milk LGBTQ singer Kali Uchis has teamed up with Erewhon to...

Levain Bakery and Wanderlust Creamery Team Up for a Sweet Cause This Saturday

June 4, 2025

June 4, 2025

Lily Rosenthal and Chef Mason Royal Host a Cookie & Ice Cream Celebration Larchmont’s Levain Bakery will host a community...

Vietnamese Street Food Pop-Up ‘Little C’ Returns to Crustacean for Limited Lunch Series

June 4, 2025

June 4, 2025

After a Sold-Out Debut, the Fan-Favorite Phở-Forward Concept Reopens  Following a sold-out debut, the Vietnamese street food concept “Little C”...

Fogo de Chão Unveils Fiery Off-Menu Cocktail, the Paper Flame

June 4, 2025

June 4, 2025

Tequila-Based Drink Features a Dramatic Tableside Presentation Fogo de Chão has unveiled its first-ever secret cocktail, the Paper Flame, an...

Marelle Launches ‘The Guest List’ With Renowned Chefs and Friends Alan Wong and Raphael Lunetta

June 4, 2025

June 4, 2025

Santa Monica’s New Chef Series Debuts With a Culinary Celebration of California and Hawaiian Flavors Marelle, a coastal dining destination...

Culver City’s Citizen Public Market Launches Summer Lineup of Food and Art

June 4, 2025

June 4, 2025

From Brats to Biryani: Citizen Public Market Unveils Fantastic New Flavors  Culver City’s Citizen Public Market is rolling out a...

(Video) Some of the Damage Caused By Vandals at Malibu High School Overnight

June 4, 2025

June 4, 2025

40 to 50 people, who are suspected to be students or recent alumni, used eggs, flour, and markers to deface...

Biggest Night of the Year: Don’t Miss GMCLA’s ‘Dancing Queens’

June 3, 2025

June 3, 2025

Culminating its 46th season, the Gay Men’s Chorus of Los Angeles will grace the crowd with Dancing Queens, celebrating iconic...

Pluto TV and Oscar-Winning Director Sean Baker Team Up to Host Free Weekend Screenings

June 3, 2025

June 3, 2025

Popcorn Challenge Interactive Event Set for Westfield Century City Mall  The historic Gardena Cinema, one of the last single-screen, family-operated...

Former ‘Real Housewives’ Husband Sentenced to Over 7 Years for $15 Million Client Fraud 

June 3, 2025

June 3, 2025

Federal Judge Rejects Plea for Medical Placement, Orders Restitution and Prison Time Disgraced former attorney Tom Girardi was sentenced Tuesday...

Carjacking Suspect Arrested After Police Chase Ends in Crash in Inglewood

June 3, 2025

June 3, 2025

Suspect Was Wanted for an Armed 2023 Carjacking in Culver City Wanted on multiple felony charges stemming from a 2023...

Malibu High Targeted in Overnight Vandalism Spree; Investigation Underway

June 3, 2025

June 3, 2025

Destruction on Campus Prompts Sheriff’s Probe; Students May Face Charges Vandals caused extensive damage to the school property of Malibu...

A Season of Gratitude: After One Year in Business, Urban Jungle Continues Making its Mark

June 2, 2025

June 2, 2025

Over the last year, Urban Jungle, an indoor and tropical plants nursery, has continued its mission to cultivate a place...