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HomeMy WebLinkAbout1989ORDINANCE NO. 1989 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALFIRORNIA, AUTHORIZING THE ISSUANCE OF AIRPORT REVENUE BONDS FOR THE PURPOSE OF FINANCING APPROVED PROJECTS AT THE PALM SPRINGS INTERNATIONAL AIRPORT, AND PROVIDING THE PROCEDURES AND MATERIAL TERMS FOR THE ISSUANCE OF SUCH BONDS. City Attorney's Summary This ordinance authorizes the issuance of Airport Revenue Bonds, in order to provide funds for various improvements at the Palm Springs International Airport. The ordinance further provides for the procedures that will be followed in issuing such bonds. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES ORDAIN AS FOLLOWS: SECTION 1. Findings. A. The City of Palm Springs (the "City") owns and operates the Palm Springs International Airport (the "Airport") and the Federal Aviation Administration (the "FAA") has approved, and from time to time, will approve, applications of the City to impose and use a Passenger Facility Charge ("PFC") for the purpose, among others, of financing various approved projects for the Airport (the "Approved Airport Projects"). B. The PFC revenues are permitted to be applied to pay debt service on bonds issued by the City to finance Approved Airport Projects. C. The City is a charter city under the Constitution and laws of the State of California, and has adopted a City Charter. D. Section 200 of the City Charter provides that the City shall have the power to make and enforce all laws and regulations with respect to municipal affairs, subject only to such restrictions and limitations as may be provided in the City Charter and in the Constitution of the State of California. E. Pursuant to its municipal affairs powers as a charter city, the City Council wishes to adopt this Ordinance for the purpose of authorizing the issuance of revenue bonds by the City the proceeds of which shall be applied to finance Approved Airport Projects, such revenue bonds to be secured by a pledge of and lien on the PFC revenues, and providing the terms and provisions upon which such revenue bonds are issued. Ordinance No. 1989 Page 2 SECTION 2. Authorization of Bonds. Pursuant to its municipal affairs powers as a charter city, the City Council hereby authorizes the issuance of its Airport Revenue Bonds (the "Bonds"), for the purpose of providing funds to finance Approved Airport Projects. The City Council hereby finds and determines that the issuance of the Bonds for the purpose of financing Approved Airport Projects constitutes a municipal affair of the City for all purposes of the City Charter and the Constitution of the State of California. SECTION 3. Material Provisions of Bonds. The Bonds shall be issued from time to time under one or more indentures of trust (the "Indenture") between the City and a trustee (the "Trustee"). The Bonds shall be subject to the following limitations: (a) Interest on the Bonds will be calculated at a fixed rate, which shall not exceed the maximum rate of interest permitted by law. (b) Principal of and interest and redemption premium (if any) on the Bonds shall be payable from the PFC revenues. The Bonds shall not constitute an obligation of the City for which the City is obligated to levy or pledge any form of taxation, and shall not constitute an obligation of the general fund of the City. (c) The proceeds of the Bonds, except to the extent required to pay the costs of issuing and underwriting the Bonds and except to the extent required to fund a reserve for the Bonds, shall be deposited with the Trustee and applied for the sole purpose of financing Approved Airport Projects. SECTION 4. Procedures for Issuing the Bonds. At any time following the adoption of this Ordinance, the City Council shall consider taking action by resolution approving the final form of the Indenture and a Preliminary Official Statement describing the Bonds, authorizing the manner of sale of the Bonds and approving documents relating to such sale, and approving other matters which are necessary or advisable in order to consummate the issuance and sale of the Bonds. Such resolution may be adopted prior to the effective date of this Ordinance, provided that the Bonds shall not be sold prior to the date on which this Ordinance takes effect in accordance with Section 315 of the City Charter. SECTION 5. Severability. If any section or provision of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, the remaining sections and/or provisions of this Ordinance shall remain valid. The City Council hereby declares that it would have adopted this ordinance, and each section or provisions thereof, regardless of the fact that any one or more section(s) or provision(s) may be declared invalid or unconstitutional or contravened via legislation. SECTION 6. Publication of this Ordinance. As provided in Section 313 of the Palm Springs City Charter, the City Clerk shall cause notice of this Ordinance to be Ordinance No. 1989 Page 3 ADOPTED THIS 22ND DAY OF MAY, 2019. ATTEST: ANTHONY E MMC CITY CLERK ROBERT MAYOR CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) ss. CITY OF PALM SPRINGS) e I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. 1989 is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on May 1, 2019, and adopted at a regular meeting of the City Council held on May 22, 2019, by the following vote: AYES: Councilmembers Holstege, Mayor Moon NOES: None ABSENT: None ABSTAIN: None Middleton, Roberts, Mayor Pro Tern Kors, and IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this cis day of x "ZD IC7 . THONY J. EJI CITY CLER