Regular 3.
Regular City Council Meeting
- Meeting Date:
- 08/23/2010
- TITLE
- Public Hearing and Resolution Regarding New Airport Revenue Bonds, Series 2010B
- PRESENTED BY:
- Tom Binford
- Department:
- Airport
Presentation:
PROBLEM/ISSUE STATEMENT
Preliminary steps were initiated to structure the future bond financing for the new Quick Turn Around (QTA) Facility; a new car wash and maintenance facility that will be utilized by all On-Airport rental car companies to wash, detail, and maintain their fleets. On April 12, 2010, the Council approved the Airport's Recovery Zone Facility Bond Application for this purpose. On April 12, 2010, the Council also approved refinancing/refunding the outstanding Series 2000 Airport Revenue Refunding Bonds to reduce interest costs, and authorized the selection of an underwriter for the bonds. Through a request for proposal process, Piper Jaffray & Company was selected as the bond underwriter for both the refunding bonds and the future QTA bonds. The Series 2010A Refunding Bonds were sold at a negotiated sale within certain parameters set by resolution and approved by the Council on May 24, 2010. The refinancing/refunding process was completed on June 30, 2010, and the Refunding Bond sale closed on July 28, 2010.
Planning and design work on the new QTA Facility was completed and competitive bids were requested for the construction. Bids will open on August 24, 2010. It is anticipated that the Council will consider an award for a construction contract at its September 13, 2010 meeting.
This resolution authorizes the sale of new bonds to finance the QTA project, sets parameters for the new bond issue, and authorizes the Financial Services Manager to approve the parameters relating to the bonds and to sign a bond purchase agreement. This authority allows the City to act quickly on the bond sale, but within parameters that the City Council sets. Proceeds from the sale of the Airport Revenue Bonds Series 2010B will be used to (1) pay a portion of the costs of designing, engineering, and constructing the new QTA Facility, (2) fund the debt reserve requirements for these bonds, and (3) pay the cost of issuance of the bonds.
Planning and design work on the new QTA Facility was completed and competitive bids were requested for the construction. Bids will open on August 24, 2010. It is anticipated that the Council will consider an award for a construction contract at its September 13, 2010 meeting.
This resolution authorizes the sale of new bonds to finance the QTA project, sets parameters for the new bond issue, and authorizes the Financial Services Manager to approve the parameters relating to the bonds and to sign a bond purchase agreement. This authority allows the City to act quickly on the bond sale, but within parameters that the City Council sets. Proceeds from the sale of the Airport Revenue Bonds Series 2010B will be used to (1) pay a portion of the costs of designing, engineering, and constructing the new QTA Facility, (2) fund the debt reserve requirements for these bonds, and (3) pay the cost of issuance of the bonds.
ALTERNATIVES ANALYZED
The Council may:
- Approve the resolution; or
- Not approve the resolution.
FINANCIAL IMPACT
The bonds will be sold to the underwriter on terms and at a purchase price within the limitations and parameters outlined in the attached resolution.
RECOMMENDATION
Staff recommends the Council hold the public hearing and approve the resolution after the public hearing.