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