PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
6b
Date of Meeting
June 23, 2009
DATE: June 12, 2009
TO: Tay Yoshitani, Chief Executive Officer
FROM: James R. Schone, Director, Aviation Business Development
Elizabeth Morrison, Sr. Manager, Corporate Finance
SUBJECT: First Reading of Resolution No. 3624, amending and restating Resolution 3599,
and authorizing Port staff to raise the Customer Facility Charge to a level
sufficient to pay the Port‟s obligations under the Lease Agreement for the
Consolidated Rental Car Facility and requiring Port staff to raise the Customer
Facility Charge to a level sufficient to at all times repay the Project Financing
and Port Investment, as those terms are defined in Resolution No. 3624.
BACKGROUND
On July 1, 2008, the Commission passed Resolution No. 3599, which amended and restated
Resolution 3542. Resolution 3542 originally imposed a Customer Facility Charge (CFC) on
customers renting cars at the Airport. The CFC is used to fund costs associated with the
Consolidated Rental Car Facility (CRCF) including design and construction of the rental car
facility, a bus maintenance facility, off-site roadways, the acquisition of buses and the operation
and maintenance of the buses. The CRCF was originally planned to be funded by the issuance of
special facility revenue bonds secured solely by CFC revenues and on July 1, 2008 the
Commission passed Resolution 3600 authorizing the sale of those bonds. Resolution No. 3599
revised staff„s responsibility to increase the CFC rate without further Commission action to the
higher of:
1. A rate that would generate CFC revenues sufficient to pay the obligations
of certain special facility revenue bonds that were authorized and to be
issued under Resolution 3600.
2. A maximum rate that ranges from $8.00 to $15.00 based on the year from
2008 to 2040.
However, as a result of unfavorable market conditions, no special facility revenue bonds were
ever issued pursuant to Resolution No. 3600.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
June 12, 2009
Page 2 of 3
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
June 12, 2009
Page 3 of 3
RESOLUTION 3624
Resolution No. 3624 amends and restates Resolution No. 3599 to eliminate the specific reference
to special facility revenue bonds that were to be issued pursuant to Resolution No. 3600 and
replaces that language with references to the current financing plan. This is primarily captured in
the definition of “Project Financing,” which includes bonds or notes that the Port issues to fund
the CFCF costs, and the definition of “Port Investment,” which addresses the use of non-CFC
Port funds that may also be used to pay for the costs of the CRCF. The term “Port Investment”
also provides that interest rate for repayment of non-CFC Port cash is either the rate the Port
earns on its investment pool or a market rate established by the Commission as provided in
Section 14.08.120(7) of the Revised Code of Washington. The amendments are intended to
conform to the changes in the financing plan without changing the original intent of Resolution
No. 3599.
REQUESTED ACTION
First Reading of Resolution No. 3624, amending and restating Resolution 3599, and authorizing
Port staff to raise the Customer Facility Charge to a level sufficient to pay the Port‟s obligations
under the Lease Agreement for the Consolidated Rental Car Facility and requiring Port staff to
raise the Customer Facility Charge to a level sufficient to at all times repay the Project Financing
and Port Investment, as those terms are defined in Resolution No. 3624.
