Official Statement Airport Commission City and County of San ...

In addition to these regulatory actions, other laws and regulations limiting GHG emissions have been
adopted by a number of states, including California, and have been proposed on the Federal level. California
recently passed Assembly Bill 32, the Global Warming Solutions Act, which requires the statewide level of GHGs
to be reduced to 1990 levels by 2020. A recently proposed Federal bill, the American Clean Energy and Security
Act of 2009, would, if passed, amend the Clean Air Act to require regulation of aircraft GHG emissions, require a
reduction in emissions from transportation fuels including jet fuel, and generally would cap GHG emissions.
The Airport is unable to predict what Federal and/or state laws and regulations with respect to GHG
emissions will be adopted, or what effects such laws and regulations will have on airlines serving the Airport or on
Airport operations. The effects, however, could be material.
Expiration of Leases
The City, acting through the Commission, has entered into certain long-term lease agreements (the “Lease
Agreements”) with certain of the airlines that operate at the Airport (the “Signatory Airlines”) according to which
the Signatory Airlines pay terminal rents and landing fees under a residual rate-setting system. See “SAN
FRANCISCO INTERNATIONAL AIRPORT–Existing Airline Agreements–Lease Agreements.” The Commission expects
that prior to the expiration of the existing Lease Agreements on June 30, 2011, the Commission may (a) extend the
Lease Agreements, (b) negotiate new long-term agreements, (c) enter into month-to-month agreements, or (d) not
enter into new agreements, and instead set rates and charges from time to time for airlines serving the Airport by
Commission resolution. Any new agreements could be based on either a compensatory or a residual rate-setting
methodology. In any event, the Commission will establish rates and charges that will comply with the requirements
of the rate covenant under the 1991 Master Resolution. For a description of the rate covenant, see “SECURITY FOR
THE 2010A BONDS–Rate Covenant.” If the Commission and the airlines do not execute new agreements by the time
the existing Lease Agreements expire, the Commission would set rates and charges that are consistent with any
applicable parameters established by the FAA, the U.S. DOT or their successors. See also “SAN FRANCISCO
INTERNATIONAL AIRPORT�Existing Airline Agreements–Lease Agreements” and “–Expiration of the Settlement
Agreement and Lease Agreements.”
Airport Market Access
The Commission has Outstanding the following Bonds (collectively, the “Mandatory Tender Bonds”) that are
subject to mandatory tender for purchase:
Mandatory Principal
Bonds Tender Date Amount
Series 2008A-1 Notes May 1, 2010 $49,945,000
Series 2008A-2 Notes May 1, 2010 50,000,000
Series 2009A Bonds September 15, 2010 92,500,000
Series 2009B Bonds September 15, 2010 82,500,000
Series 2008A-3 Notes May 1, 2011 41,065,000
Series 2008A-4 Notes May 1, 2012 25,460,000
Series 2009D Notes December 4, 2012 88,190,000
Payment of the principal portion of the purchase price of the Mandatory Tender Bonds upon mandatory
tender is not secured by a pledge of or lien on Net Revenues but is payable from remarketing proceeds. Payment
of the principal of the Mandatory Tender Bonds upon mandatory redemption thereof is secured by a pledge of,
lien on and security interest in Net Revenues on a parity with the pledge, lien and security interest securing all
previously issued Bonds and any additional Bonds issued under the 1991 Master Resolution, including the 2010A
Bonds.
There are no credit or liquidity facilities in place to pay the Purchase Price of the Mandatory Tender
Bonds upon the mandatory tender thereof for purchase. If for any reason the Commission is unable to purchase
any Mandatory Tender Bonds on their respective mandatory tender dates, such Mandatory Tender Bonds will be
subject to mandatory redemption at a redemption price equal to the principal amount thereof plus accrued interest
thereon. See “AIRPORT’S FINANCIAL AND RELATED INFORMATION–Current and Future Financings.”
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