Official Statement Airport Commission City and County of San ...
Official Statement Airport Commission City and County of San ...
Official Statement Airport Commission City and County of San ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Rate Covenant<br />
The <strong>Commission</strong> has covenanted that it will establish <strong>and</strong> at all times maintain rentals, rates, fees <strong>and</strong><br />
charges for the use <strong>of</strong> the <strong>Airport</strong> <strong>and</strong> for the services rendered by the <strong>Commission</strong> in connection with the <strong>Airport</strong> so<br />
that:<br />
(a) Net Revenues in each Fiscal Year will be at least sufficient (i) to make all required<br />
payments <strong>and</strong> deposits into the Revenue Bond Account <strong>and</strong> the General Obligation Bond<br />
Account pursuant to the 1991 Master Resolution, <strong>and</strong> (ii) to make the Annual Service<br />
Payment to the <strong>City</strong>; <strong>and</strong><br />
(b) Net Revenues, together with any Transfer, in each Fiscal Year will be at least equal to<br />
125% <strong>of</strong> aggregate Annual Debt Service with respect to the Bonds for such Fiscal Year.<br />
The <strong>Commission</strong> covenants in the 1991 Master Resolution that if Net Revenues, together with any<br />
Transfer, in any Fiscal Year are less than the amount specified in clause (b) above, the <strong>Commission</strong> will retain <strong>and</strong><br />
direct an <strong>Airport</strong> Consultant to make recommendations as to the revision <strong>of</strong> the <strong>Commission</strong>’s business operations<br />
<strong>and</strong> its schedule <strong>of</strong> rentals, rates, fees <strong>and</strong> charges for the use <strong>of</strong> the <strong>Airport</strong> <strong>and</strong> for services rendered by the<br />
<strong>Commission</strong> in connection with the <strong>Airport</strong>, <strong>and</strong> after receiving such recommendations or giving reasonable<br />
opportunity for such recommendations to be made the <strong>Commission</strong> will take all lawful measures to revise the<br />
schedule <strong>of</strong> rentals, rates, fees <strong>and</strong> charges as may be necessary to produce Net Revenues, together with any<br />
Transfer, in the amount specified in clause (b) above in the next succeeding Fiscal Year.<br />
In the event that Net Revenues for any Fiscal Year are less than the amount specified in clause (b)<br />
above, but the <strong>Commission</strong> has promptly taken all lawful measures to revise its schedule <strong>of</strong> rentals, rates, fees <strong>and</strong><br />
charges, such deficiency will not constitute an Event <strong>of</strong> Default under the 1991 Master Resolution. Nevertheless, if<br />
after taking such measures, Net Revenues in the next succeeding Fiscal Year are less than the amount specified in<br />
clause (b) above, such deficiency in Net Revenues will constitute an Event <strong>of</strong> Default under the 1991 Master<br />
Resolution.<br />
Operation <strong>and</strong> Maintenance <strong>of</strong> the <strong>Airport</strong><br />
The <strong>Commission</strong> has covenanted that it will operate <strong>and</strong> maintain the <strong>Airport</strong> as a revenue producing<br />
enterprise in accordance with the Act. The <strong>Commission</strong> will make such repairs to the <strong>Airport</strong> as are necessary or<br />
appropriate in the prudent management there<strong>of</strong>. The <strong>Commission</strong> has also covenanted that it will operate <strong>and</strong> maintain<br />
the <strong>Airport</strong> in a manner which will entitle it at all times to charge <strong>and</strong> collect fees, charges <strong>and</strong> rentals in accordance<br />
with <strong>Airport</strong> use agreements, if any, or as otherwise permitted by law, <strong>and</strong> the <strong>Commission</strong> will take all reasonable<br />
measures permitted by law to enforce prompt payment to it <strong>of</strong> such fees, charges <strong>and</strong> rentals when <strong>and</strong> as due. The<br />
<strong>Commission</strong> will, from time to time, duly pay <strong>and</strong> discharge, or cause to be paid <strong>and</strong> discharged, any taxes,<br />
assessments or other governmental charges lawfully imposed upon the <strong>Airport</strong> or upon any part there<strong>of</strong>, or upon the<br />
revenues from the operation there<strong>of</strong>, when the same become due, as well as any lawful claim for labor, materials or<br />
supplies which, if unpaid, might by law become a lien or charge upon the <strong>Airport</strong> or such revenues, or which might<br />
impair the security <strong>of</strong> the Bonds. Notwithst<strong>and</strong>ing the foregoing, the <strong>Commission</strong> need not pay or discharge any tax,<br />
assessment or other governmental charge or claim for labor, materials or supplies, if <strong>and</strong> so long as the <strong>Commission</strong><br />
contests the validity or application there<strong>of</strong> in good faith. The <strong>Commission</strong> will continuously operate the <strong>Airport</strong> so that<br />
all lawful orders <strong>of</strong> the FAA <strong>and</strong> any other governmental agency or authority having jurisdiction in the premises will be<br />
complied with, but the <strong>Commission</strong> is not required to comply with any such orders so long as the validity or application<br />
there<strong>of</strong> is being contested in good faith.<br />
Maintenance <strong>of</strong> Powers; Retention <strong>of</strong> Assets<br />
The <strong>Commission</strong> has covenanted that it will use its best efforts to keep the <strong>Airport</strong> open for l<strong>and</strong>ings<br />
<strong>and</strong> take<strong>of</strong>fs <strong>of</strong> commercial aircraft using facilities similar to those at the <strong>Airport</strong> <strong>and</strong> to maintain the powers, functions,<br />
duties <strong>and</strong> obligations now reposed in it pursuant to law, <strong>and</strong> will not at any time voluntarily do, suffer or permit any<br />
C-20