04/11/1988 Meeting (2) - Laserfiche WebLink

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e Res, No. 4084--A resolution publicly approving the City's Airport Revenue Bonds, Series 1988, Mr, Holmer moved, seconded by Ms, Bascom, to adopt the resolution. Ms. Wooten affirmed that all of the airlines have committed themselves to the payment schedules, Mr. Gleason said the City has received letters of intent from United, American, and Horizon airlines, He said the agreements have not yet received the corporate signatures. He said the City is guaranteed of the airlines commitment by the letter of intent and nonsignatory charges, which are higher than the signatory rates. In response to a question from Ms, Wooten, Mr. Gleason said PSA, which is in the process of being acquired by US Air, has not yet signed a letter of intent. Ms. Wooten asked if it is possible to make accurate forecasts on the repayment of the bond. Mr, Gleason said the City has had good responses from the bond underwriters as well as the insurance companies, He said the airlines market is driven by passengers instead of the airlines, which makes for a good revenue-secured risk. e Ms. Wooten asked if the $688,000 in interest cited in the council's airport memo is related to the interest the City has received through the revenue bonds. Because of the uncertainty in the municipal bond market in December 1986, Mr, Wong said staff felt it would be unwise to count on interest earnings on the bond proceeds as revenue sources. Since that time the Tax Reform Act has been put in place, the market has stabilized, and staff feels it is safe to include the interest earnings, Mr. Wong said the $688,000 is the interest earned from the general obligation and revenue bond proceeds. Roll call vote; the motion carried unanimously, 8:0, VII. AIRPORT IMPROVEMENT PROJECT City Manager Mike Gleason introduced the item. Chris Andersen, director of Public Works, presented the staff report, She said the original total project budget was $18.3 million. The apparent low bidder for the terminal expansion project is Wildish Building Company with a bid of $11,107,217. The City's budget estimate for the terminal was $9,8 million, - Ms, Andersen said the City provided six deductive options in the bidding process to stay within budget, However, exercising all six options would still not bring the total budget within the $18.3 million. Opportunities to increase available resources include application for increased FAA grants. They also include recognizing the negotiated airline revenue MINUTES--City Council April 11, 1988 Page 9