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 ...
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computations made in accordance with the requirements <strong>of</strong> the Lease <strong>and</strong> Use Agreements <strong>of</strong> the l<strong>and</strong>ing fee rate<br />
<strong>and</strong> the Terminal Area rental rates for the next fiscal year. The signatory airlines <strong>and</strong> the <strong>City</strong> then use their best<br />
efforts to adjust the Terminal Area rentals <strong>and</strong> l<strong>and</strong>ing fees to their mutual satisfaction.<br />
If at any time during the fiscal year, the actual expenses (including debt service) <strong>of</strong> the Terminal Area <strong>and</strong><br />
the Groundside Area are projected to exceed by ten percent or more the actual revenues in the Terminal Area <strong>and</strong><br />
Groundside Area, the <strong>Commission</strong> may, after using its best efforts to reduce expenses, <strong>and</strong> upon 60 days notice to,<br />
<strong>and</strong> in consultation with, the signatory airlines, increase the Terminal Area rentals. The Lease <strong>and</strong> Use Agreements<br />
require the signatory airlines to pay such increased rentals or such lesser amount which equals the projected<br />
deficiency for the remaining months <strong>of</strong> the then-current fiscal year. L<strong>and</strong>ing fees may similarly be increased in the<br />
event the actual expenses (including debt service) <strong>of</strong> the Airfield Area <strong>and</strong> <strong>Airport</strong> Support Area are projected to<br />
exceed by ten percent or more the actual revenues in such areas.<br />
Airline Review <strong>of</strong> Capital Improvements<br />
Under the Lease <strong>and</strong> Use Agreements, the <strong>City</strong> agrees, with a limited exception described below, to use its<br />
best efforts to finance all capital improvements through the issuance <strong>of</strong> <strong>Airport</strong> Revenue Bonds. A “capital<br />
improvement” is defined under the Lease <strong>and</strong> Use Agreements as any item <strong>of</strong> expenditure with a cost (including<br />
design <strong>and</strong> planning costs) exceeding $100,000 in 1981 dollars <strong>and</strong> a useful life <strong>of</strong> more than three years.<br />
Proposed capital improvements with a cost in excess <strong>of</strong> $300,000 in 1981 dollars are subject to certain<br />
review procedures established under the Lease <strong>and</strong> Use Agreements. A majority in interest <strong>of</strong> the signatory airlines<br />
(defined to mean more than 50% in number <strong>of</strong> the signatory airlines who, on the date in question, also account for<br />
more than 50% <strong>of</strong> the aggregate revenue aircraft l<strong>and</strong>ed weight l<strong>and</strong>ed by the signatory airlines at the <strong>Airport</strong> during<br />
the immediately preceding fiscal year) may require the <strong>Commission</strong> to defer a given capital improvement for six<br />
months so that such airlines can present their views with respect to such capital improvement. The <strong>Airport</strong>,<br />
however, may budget <strong>and</strong> spend up to $2 million in 1981 dollars (as adjusted by a formula in the Lease <strong>and</strong> Use<br />
Agreements) per year from current revenues on capital improvements without airline approval, or a greater amount<br />
as may be approved by a majority in interest <strong>of</strong> the airlines. Capital improvements which are required by (i) a<br />
federal or state agency having jurisdiction over <strong>Airport</strong> operations, or (ii) an emergency which, if the improvements<br />
are not made, would result in the closing <strong>of</strong> the <strong>Airport</strong> within 48 hours, are not subject to the review procedures.<br />
Other Lease <strong>and</strong> Use Agreement Covenants<br />
The <strong>City</strong> covenants under the Lease <strong>and</strong> Use Agreements to operate the <strong>Airport</strong> in such a manner as to<br />
maximize revenues from concessionaires, lessees <strong>and</strong> other non-airline users.<br />
The <strong>City</strong> also agrees that no charges, fees or tolls <strong>of</strong> any nature, direct or indirect, shall be charged by the<br />
<strong>Commission</strong>, directly or indirectly, against any signatory airline, its passengers, its suppliers or others for the<br />
privilege <strong>of</strong> purchasing, selling, using, storing, withdrawing, h<strong>and</strong>ling, consuming, loading, unloading or delivering<br />
any personal property <strong>of</strong> the airline or its suppliers or for the privilege <strong>of</strong> transporting personal property or persons<br />
to, from or on the <strong>Airport</strong>. In addition, the <strong>City</strong> agrees that no other charges, fees or tolls <strong>of</strong> any nature shall be<br />
charged by the <strong>Commission</strong> against any signatory airline or its employees or passengers for any <strong>of</strong> the premises,<br />
facilities, rights, licenses <strong>and</strong> privileges granted under the Lease <strong>and</strong> Use Agreements to the airline or its employees<br />
or passengers. However, the <strong>Commission</strong> is permitted to impose a passenger facilities charge or other similar<br />
charge on passengers not prohibited by federal law; provided, however, that any revenues generated thereby shall be<br />
deposited in the <strong>Airport</strong> Revenue Fund, <strong>and</strong> shall be used only for <strong>Airport</strong> purposes.<br />
The airlines have each agreed to make certain accommodations to permit new entrants to operate at the<br />
<strong>Airport</strong> in the signatory airlines’ exclusive leased space. See “SAN FRANCISCO INTERNATIONAL AIRPORT–Existing<br />
Airline Agreements.”<br />
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