Ratemaking Overview

Settlement & True-Up

Not available

Extraordinary Coverage Protection (ECP)

No Extraordinary Coverage Protection. Pure compensatory — Port of Oakland bears cost risk. No airline safety net or settlement mechanism.

Landing Fee Methodology

Not available

Terminal Rental Rate

Not available

Common Use & Gate Allocation

Additional Bonds Test

Additional Intermediate Lien Bonds may be issued if: (a) Net Revenues for any 12 consecutive months out of 24 preceding months ≥ 110% of Maximum Annual Debt Service for all Intermediate Lien Bonds, Senior Lien Bonds and DBW Loans after issuance; or (b) consultant certifies rate covenant compliance during construction period and Net Revenues for three fiscal years following completion ≥ 110% of Maximum Annual Debt Service. Refunding bonds require no coverage test if Maximum Annual Debt Service does not increase. Intermediate Lien Notes up to 10% of Net Revenues allowed with simpler test.

Rate Covenant

Net Revenues must be at least 1.10 times actual debt service on Intermediate Lien Bonds and all Permitted Prior Lien Obligations (less amounts paid from other borrowings, capitalized interest, and additional pledged security). Pledged Revenues must be sufficient to pay debt service, reserve fund deposits, ongoing legal obligations, and current Operation and Maintenance Expenses.

Flow of Funds

Under City Charter Section 717(3), Port Revenue Fund moneys applied in priority: First, general obligation bonds (none outstanding); Second, revenue bonds (including Intermediate Lien Bonds) and debt service requirements per indenture terms; Third, operation and maintenance costs; Fourth, pension expenses; Fifth, capital improvements; Sixth, reserve funds for general obligation bonds; Seventh, reserve funds for revenue bonds (including Intermediate Lien Common Reserve Fund); Eighth, other reserve funds; Ninth, transfer to City General Fund if surplus exists.