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Council increases airport rental-car fee, advances terminal financing and adopts three resolutions

Redmond City Council · November 12, 2024
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Summary

Council approved three resolutions: snow-and-ice control, an increase to the airport customer facility charge (CFC) to $5/day effective Jan. 1, 2025, and a reimbursement intent resolution to support terminal financing; Zach Bass and staff outlined a $180M terminal expansion and a $13M quick-turnaround facility plan.

The Redmond City Council voted on Nov. 11 to adopt three resolutions that affect public works and airport capital projects and to advance financing for the airport terminal expansion.

Snow and ice control plan (Resolution 2024-27): Anthony Orkees, streets division manager, presented the 2024–25 snow and ice control plan describing equipment, six plow zones, three contracted response scenarios, and public communication tools including a live GIS map. The council moved and adopted Resolution 2024-27 by voice vote.

Airport customer facility charge (Resolution 2024-30): Zach Bass, airport director, explained a proposal to increase the airport’s customer facility charge — a per-day fee on rental cars restricted to car-rental-related capital — from $3/day (with a 7-day cap) to $5/day with no cap, effective Jan. 1, 2025. Staff said the airport processes about 80,000 rental transactions annually (≈400,000 rental-car days) and that the change is projected to raise annual CFC revenue from about $600,000 to roughly $1 million. The revenue increase would help fund a Quick Turnaround Area (QTA) that the airport now estimates at $13 million (up from prior $8–9M estimates). The council moved and adopted Resolution 2024-30 by voice vote.

Resolution 2024-29 — reimbursement intent and terminal update: Finance staff and the airport provided an update on the terminal expansion. Zach Bass said the terminal expansion is about 75% designed, would add a second-floor concourse with roughly seven jet bridges, and is budgeted at about $180 million after a newly awarded $10 million Connect Oregon grant. Staff explained they plan to bond for approximately $90 million of the financing; Resolution 2024-29 formally declared the city’s intent to reimburse certain expenditures from anticipated tax-exempt bond proceeds, a standard procedural step ahead of debt issuance. The council moved and adopted that resolution by voice vote.

Next steps and financial notes: Staff outlined a financing timeline (underwriter RFP, rating presentation in spring, bond sale in mid-summer) and said more design, guaranteed maximum price and bid packages will be forthcoming. The council did not vote on any construction contracts tonight; they acted on the policy and financing steps required to proceed with bonding and design.