Chapter 11.04
Airport Improvements and Revenue Financing

Sections:

11.04.010    Statement of policy.

11.04.020    City Council authority.

11.04.030    Loan agreements for financing – Council authority.

11.04.040    Loan agreements for financing – Covenants included.

11.04.050    Contracts – City liability limitations.

11.04.060    Use charges for airport services and facilities.

11.04.070    Financial accounting procedures.

11.04.010 Statement of policy.

It is the policy of the City to improve the Livermore Municipal Airport by the construction of capital improvements under the special circumstances set forth in Chapter 2.40 LMC and this title, and to limit the repayment of funds required for such capital improvements in the manner set out in this chapter. (Ord. 2065 § 1(A), 2018; 1960 code § 3A.1)

11.04.020 City Council authority.

A. The City Council may, on behalf of the City:

1. Authorize capital improvements of the Livermore Municipal Airport;

2. Negotiate the advance of funds for the payment of the cost of such improvements and enter into contracts for the repayment of funds so advanced; and

3. Pledge to the punctual payment of funds so advanced all or any portion of the revenues derived from the Livermore Municipal Airport and its facilities and services which now exist or which may hereafter be constructed as provided.

B. The City Council, in determining the cost of such capital improvements, may include any and all costs and estimated costs incurred or to be incurred in connection with the obtaining of such improvements, and all engineering, inspection, fiscal and legal expenses and interest which it is estimated will accrue during the construction period and for six months thereafter. (Ord. 2065 § 1(A), 2018; 1960 code § 3A.2)

11.04.030 Loan agreements for financing – Council authority.

The City Council may authorize the execution of a loan agreement to finance improvements at the airport. The payment of interest at the rate allowed by state law and a term for repayment of the principal not to exceed 15 years from the date of the actual advance of funds shall be included among the terms and conditions of the loan agreement. Such contract shall provide the terms and conditions upon which the special loan herein authorized shall be subject to prior payment at the option of the City, and may contain other terms, covenants and conditions as the City Council, in its discretion, may determine. The City Council may authorize the execution and delivery of a revenue note to evidence the obligation to repay moneys advanced out of such revenues, which note shall state on its face that it is issued under and subject to the terms and conditions of the loan agreement. (Ord. 2065 § 1(A), 2018; 1960 code § 3A.3)

11.04.040 Loan agreements for financing – Covenants included.

A. Any loan agreement executed for the purpose of obtaining the advancement of funds may contain appropriate covenants as to:

1. The purpose or purposes to which the proceeds of the loan shall be applied, and the use and disposition thereof;

2. The use and disposition of the revenues derived from rates, charges and fees for the use of the airport and its facilities and services pledged to the payment of the loan, including the creation and maintenance of reserve funds and operating funds;

3. The borrowing of additional moneys payable from revenues from the airport and its facilities and services;

4. The operation and maintenance of the airport and its facilities and services, the revenues from which are pledged to the payment of the loan;

5. The insurance to be carried on the airport facilities, the revenues of which are pledged to the payment of the loan, and the use and application of the proceeds of such insurance;

6. Books of account of the airport and the inspection and audit thereof.

B. The provisions of this section and of any contract or loan agreement shall be enforceable by mandamus or other appropriate suit action or proceeding in any court of competent jurisdiction. (1960 code § 3A.4)

11.04.050 Contracts – City liability limitations.

No contract providing for the advancement of funds or any note issued thereunder shall ever be or become a liability on the part of the City of Livermore, or an indebtedness of the City, and under no circumstances shall the repayment of any moneys advanced pursuant to such contract or note ever be or become a charge against or be payable out of the general funds of the City, and neither the City nor any officer thereof shall be beholden for the payment of any moneys advanced under any such contract, except solely from the revenues pledged to the repayment of such moneys; provided, however, that the City Council, it its sole discretion, may apply to the payment at, or prior to the maturity of any loan, any funds of the City legally available for the payment of such loan. (Ord. 2065 § 1(A), 2018; 1960 code § 3A.5)

11.04.060 Use charges for airport services and facilities.

A. It shall be the duty of the City Council to make certain that reasonable rates, fees and charges for the use of the airport and its facilities and services, the revenues of which are pledged to the payment of the loan, shall at all times, so long as any obligation under a loan agreement is outstanding, be fixed and established, so the airport and its facilities and services shall always remain self-supporting.

B. Such rates, fees or charges so prescribed shall be calculated to be at least sufficient to pay:

1. The principal and interest of all moneys advanced for such capital improvements; and

2. All expenses of operation and maintenance of the airport and its facilities and services, the revenues of which are pledged to the payment of the loan. (Ord. 2065 § 1(A), 2018; 1960 code § 53A.6)

11.04.070 Financial accounting procedures.

A. It shall be the duty of the Administrative Services Director, the airport management, and all other officials of the City who have, directly or indirectly, charge of the finances of the Livermore Municipal Airport, to set up suitable accounts and to account for all revenues of the airport and its facilities and services pledged to the payment of the loan, and, at the direction of the City Council, to establish a special fund for the purpose of accounting for such revenues. The City may agree in any loan agreement to accumulate, by deposits of such revenues, a balance in the account equal to the amount of interest and installment(s) of principal becoming due in the next succeeding year on moneys advanced for such capital improvements. Any revenues in excess of the maximum so required to be accounted for through such account may be used by the City for any lawful purpose.

B. To further provide for the separation of revenues pledged to the payment of the loans, separate special funds shall be maintained in the city treasury. One fund, the airport operations fund, will be used for general airport purposes to account for the receipts and expenditures of all airport revenues. Airport revenues derived from all general aviation aircraft hangar facilities (T-hangars and shelters), either: (1) now existing, or (2) constructed from the proceeds of the loan, and which may be pledged toward the payment of the loan, shall be accounted for in the aircraft hangar facilities funds, and shall be deposited in the above special fund bank accounts, as may be required by the terms and conditions of the loan agreement.

C. In the event general airport revenues other than revenues derived from general aviation aircraft hangar facilities are pledged to the payment of a loan to finance other capital improvements at the airport, moneys in an amount equal to the annual amount needed for payment of principal and interest shall be separated annually from the airport operations fund and transferred into the airport capital projects fund, and the use of those moneys shall be restricted to the purpose of paying such annual principal and interest when due under the terms of the loan agreement. (Ord. 2065 § 1(A), 2018; Ord. 1908 § 25, 2010; 1960 code § 3A.7)