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

Initiative, Referendum and Charter Amendments
The ability of the Commission to comply with its covenants under the 1991 Master Resolution and to
generate revenues sufficient to pay the principal of and interest on the 2010A Bonds may be adversely affected by
actions and events outside the control of the Commission, including without limitation by actions taken (or not
taken) by voters.
Under the State Constitution, the voters of the State have the ability to initiate legislation and require a
public vote on legislation passed by the State Legislature through the powers of initiative and referendum,
respectively. Under the Charter, the voters of the City can restrict or revise the powers of the Commission through
the approval of a Charter amendment. The Commission is unable to predict whether any such initiatives might be
submitted to or approved by the voters, the nature of such initiatives, or their potential impact on the Commission or
the Airport.
Risk of Tax Audit of Municipal Issuers
The Internal Revenue Service (the “IRS”) includes a Tax Exempt and Government Entities Division
(the “TE/GE Division”). The TE/GE Division has a subdivision that is specifically devoted to tax-exempt bond
compliance. The number of tax-exempt bond examinations (including of the issuance of securities such as the
2010A Bonds) has increased significantly under the TE/GE Division. The Commission can provide no assurance
that if an IRS examination of the Bonds issued by the Commission as tax-exempt bonds was undertaken that it
would not adversely affect the market value of the 2010A Bonds. See “TAX MATTERS.” The Commission has not
been the subject of an audit, is not currently the subject of any ongoing audit, nor has it been notified by the IRS
regarding the possibility of any such audit.
Future Legislation
The Airport is subject to various laws, rules and regulations adopted by the local, State and federal
governments and their agencies. The Commission is unable to predict the adoption or amendment of any such laws,
rules or regulations, or their effect on the operations or financial condition of the Airport.
Introduction
SAN FRANCISCO INTERNATIONAL AIRPORT
San Francisco International Airport, which is owned and operated by the City, is the principal commercial
service airport for the San Francisco Bay Area. The Airport is located 14 miles south of downtown San Francisco in
an unincorporated area of San Mateo County between the Bayshore Freeway (U.S. Highway 101) and the San
Francisco Bay. According to final data for Calendar Year 2008 from the Airports Council International (the “ACI”),
the Airport ranked 10th in the United States in terms of passengers and 14th in terms of air cargo tonnage.
According to 2008 U.S. Department of Transportation (“U.S. DOT”) Statistics, the Airport is also a major domestic
origin and destination point (10th in the United States) and one of the nation’s principal gateways for Pacific traffic
and serves as a domestic hub and Pacific gateway for United Airlines.
Organization and Management
Under the Charter, the Commission is responsible for the operation and management of the Airport, which
is a department of the City. The Commission consists of five members appointed by the Mayor for four-year
overlapping terms. All appointments are subject to rejection by a two-thirds vote of the Board of Supervisors and
any member may be removed by a three-fourths vote of the Board of Supervisors for official misconduct.
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