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

and management of the Fuel System is performed by a third-party pursuant to an operation and management
agreement with SFO Fuel.
The Fuel System currently includes a pipeline system, with a loop around the Terminal Complex which
provides redundancy in the event of a pipeline break; various hydrant systems, some of which are leased to SFO
Fuel; storage tanks owned by the Airport and leased to SFO Fuel, with total storage capacity of approximately
132,500 total usable barrels (representing approximately 2.4 days of operations based upon 2009 consumption);
above-ground storage tanks owned by SFO Fuel, operated by Chevron Corporation (“Chevron”) and located on
ground sublet from SFO Fuel pursuant to a tank farm sublease (the “SFO Fuel/Chevron Tank Farm”), with total
storage capacity of approximately 104,000 usable barrels (representing approximately 1.9 days of operations based
upon 2009 consumption); and other related facilities. The Chevron tanks are operated and maintained by Chevron.
SFO Fuel and Chevron recently reported to the EPA that there was inadequate emergency fuel storage
secondary containment at the SFO Fuel/Chevron Tank Farm and therefore, it was out of compliance with provisions
of the Clean Water Act that requires aboveground petroleum storage facilities have secondary containment of at
least the volume of the largest tank, in this case 90,000 barrels plus various miscellaneous regulated adjustments.
There have not been any spills or releases of fuel at the SFO Fuel/Chevron Tank Farm. In response, SFO Fuel
and Chevron reduced the amount of fuel being stored in the tanks to the volume that the current emergency system
can contain. SFO Fuel and Chevron are spending approximately $1 million to enhance secondary containment at
the SFO Fuel/Chevron Tank Farm in the unlikely event of a spill, and expect to spend an additional $2 million on
geosynthetic clay lining to protect a leak within the facility from absorbing into the earth and contaminating
groundwater. The costs of this project will be paid by for SFO Fuel/Chevron not by the Airport.
In early 2007, SFO Fuel finalized an arrangement with an affiliate of Shell Oil for substantial additional
off-Airport jet fuel storage at facilities immediately adjacent to the Airport. The total storage capacity at the Shell
Oil facilities is approximately 186,000 total barrels (representing approximately 3.3 days of operations based on
2009 consumption). In addition, SFO Fuel has entered into other agreements for off-Airport jet fuel terminaling,
storage, and transportation for the benefit of SFO Fuel members and to further supplement its on-Airport facilities.
SFO Fuel may elect in the future to construct additional significant on-Airport jet fuel storage and related facilities,
but has no current plans to do so.
Communications Facilities
The Airport operates state-of-the-art telecommunications facilities at the ITC. The Airport was the first
airport in the United States to offer its tenants separate broadband services from two local service carriers: Pacific
Bell and AT&T Local Services, each of which provides the Airport with OC-48 Synchronous Optical Network
(“SONET”) rings that deliver diverse, redundant, and continuous services to Airport users. The Airport operates a
Gigabyte Ethernet Network that supports an extensive array of Common-Use Terminal Equipment in the ITC. The
CUTE design allows airlines to operate from any service counter in the ITC as well as in their individual offices.
The Airport has also implemented a contingency communications system for use when catastrophic or
other events disable standard communications systems. This contingency system permits the Airport to deploy a
network of wireless services, including cellular telephones and pagers. In addition, the Airport has the capability to
manually perform passenger processing and baggage transport in the event of emergencies.
Through a concessionaire, T-Mobile, the Airport installed a high-speed wireless broadband network
(also known as “Wi-Fi”) for use by passengers, tenants, the Transportation Security Administration (the “TSA”) and
the Commission.
BART Extension to SFO
The San Francisco Bay Area Rapid Transit (“BART”) extension to the Airport opened for full operation on
June 22, 2003. The extension creates a convenient connection between the Airport and the greater San Francisco
Bay Area that is served by BART. According to BART statistics for Fiscal Year 2007-08, a weekday average of
4,859 riders exited at the SFO BART station. An intermodal station in the City of Millbrae provides a direct link
between BART and CalTrain offering additional transit options and connection to the southern parts of the Bay Area
as well as San Francisco. In order to close an approximately $250 million four-year deficit, effective July 1, 2009,
BART increased fares by 6.1% and increased the one-way surcharge levied on riders using the station at the Airport
39