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