Regular 1.
Special Session
- Meeting Date:
- 10/04/2010
- TITLE
- Resolution Fixing the Form and Details of the Airport Revenue Bonds, Series 2010B
- PRESENTED BY:
- Tom Binford
- Department:
- Airport
Presentation:
PROBLEM/ISSUE STATEMENT
On August 23, 2010, the Council authorized the sale of new Airport Revenue Bonds to finance the planning, design, and construction of the new Car Rental Quick Turn Around (QTA) Facility and set the parameters for the new bond issue. The QTA will be a new car wash and maintenance facility that will be utilized by all on-Airport car rental companies to wash, detail, fuel, and maintain their fleets, and will replace an old, deteriorating facility that was formerly the Airport's ARFF/Airfield Maintenance Operations facility.
On September 13, 2010, the Council approved new five-year agreements with five (5) car rental companies to operate car rental concessions at the Airport, beginning April 1, 2011. The Council also approved the construction contract for the new QTA at its September 13 meeting, subject to the sale of the bonds. Construction of the new QTA is expected to be completed by June 1, 2011.
The City received an earlier than anticipated rating on this new bond issue, which will enable the City to market these bonds earlier as well. Airport staff desires to proceed with the earlier marketing and sale, which will allow the City to subsequently also begin construction earlier and take advantage of the weather prior to Winter. 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. The bonds are Customer Facility Charge (CFC) supported. The attached resolution prescribes the terms and conditions for the issuance of the Airport Revenue Bonds, Series 2010B. This is the last step in the process that began on April 12, 2010, to finance the construction of the new QTA.
On September 13, 2010, the Council approved new five-year agreements with five (5) car rental companies to operate car rental concessions at the Airport, beginning April 1, 2011. The Council also approved the construction contract for the new QTA at its September 13 meeting, subject to the sale of the bonds. Construction of the new QTA is expected to be completed by June 1, 2011.
The City received an earlier than anticipated rating on this new bond issue, which will enable the City to market these bonds earlier as well. Airport staff desires to proceed with the earlier marketing and sale, which will allow the City to subsequently also begin construction earlier and take advantage of the weather prior to Winter. 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. The bonds are Customer Facility Charge (CFC) supported. The attached resolution prescribes the terms and conditions for the issuance of the Airport Revenue Bonds, Series 2010B. This is the last step in the process that began on April 12, 2010, to finance the construction of the new QTA.
ALTERNATIVES ANALYZED
The Council may:
- Approve the resolution; or
- Not approve the resolution.
FINANCIAL IMPACT
The new bond issue is for $6,525,000, with a term of 20 years, at a true interest cost (including issuance costs) of 4.185%.
RECOMMENDATION
Staff recommends that the City Council approve the final bond resolution fixing the form and details of the Airport Revenue Bonds, Series 2010B.