REPORT TO THE CITY COUNCIL
FROM: HENRY L. THOMPSON, Director of Aviation
Airports Department
SUBJECT
Title
RESOLUTION - Declaring its official intent to use proceeds of indebtedness to reimburse the City for certain expenditures related to the Terminal Expansion Project at Fresno Yosemite International Airport (Requires 5 votes).
Body
RECOMMENDATION
Staff recommends that City Council adopt a Resolution declaring the City’s official intent to use the proceeds of indebtedness to reimburse certain expenditures related to the Fresno Yosemite International Airport Terminal Expansion Project.
EXECUTIVE SUMMARY
The City of Fresno has undertaken an expansion of Fresno Yosemite International Airport (FAT) Terminal facilities (Project) to meet the growing air travel needs of the region. The vision for this Project began in 2018 and has proceeded through the planning, environmental, and design phases. Funding for the estimated $145,000,000 project has been identified and committed from numerous sources with an estimated $70,000,000 required through debt service support in the form of Airport Revenue Bonds. In accordance with federal regulations the City is required to declare its official intent to reimburse prior expenditures for the Project with proceeds of a bond issuance. The proposed resolution meets that requirement.
BACKGROUND
Council awarded Phase 1 of a progressive design build contract to Q&D Construction to provide preconstruction services for FAT’s Terminal expansion program. The project is fully designed, and the Department is finalizing funding sources for Phase 2 to construct and complete the Terminal Expansion.
The attached resolution is necessary for the City to establish compliance with federal regulations (26 CFR § 1.150-2) by officially declaring its intent to use proceeds of indebtedness to reimburse itself for prior expenditures. This declaration does not bind the City to make any expenditure, incur any indebtedness or proceed with the Project. The Department anticipates returning to Council in March 2023 to authorize the issuance, sale, and delivery of Airport Revenue Bonds and to approve a Phase 2 construction contract with Q&D Construction.
On September 29, 2022, Fresno City Council approved the execution of an agreement with Unison, Inc.to undertake a feasibility study for the purpose of issuing debt. That study is underway and preliminary results supports the feasibility of debt for the FAT Terminal Expansion Project.
ENVIRONMENTAL FINDINGS
An Initial Study and Mitigated Negative Declaration (IS/MND) was prepared to evaluate the FATforward, Passenger Terminal and Parking Expansion Project pursuant to the California Environmental Quality Act (CEQA) and adopted State CEQA Guidelines (Title 14, California Code of Regulations [CCR], Chapter Three). The City of Fresno Airports Department is the “lead agency” for this project (CEQA Guidelines, §15367). Based on the IS/MND, the following findings are made: (1) the project will not generate significant effects on the environment, and (2) when all applicable mitigation measures have been applied, the project will result in a less than significant impact on the environment.
A Public Notice of Intent to Adopt a Mitigated Negative Declaration for FATforward was published in the local newspaper on December 20, 2019, as required for public review and comment. A Notice of Determination was recorded with the Fresno County Clerk’s office on February 27, 2020.
FISCAL IMPACT
There is no impact to the General Fund or to the ratepayers of the City of Fresno from this action.
Attachments:
- Resolution