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

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Certain <strong>of</strong> the airline maintenance, cargo <strong>and</strong> other facilities have been financed by bonds issued by the<br />

California Statewide Communities Development Authority, which has the authority to issue tax-exempt private<br />

activity bonds. These bonds are separately secured by leases or loans with the respective airlines <strong>and</strong> are not<br />

payable from Net Revenues. If United Airlines moved its maintenance operations from its Maintenance <strong>and</strong><br />

Operations Center <strong>and</strong> related facilities, United Airlines would remain responsible under the lease until the thencurrent<br />

expiration date.<br />

Seismic Design <strong>of</strong> <strong>Airport</strong> Facilities<br />

The <strong>Airport</strong> exists in a zone 4 seismic area. Seismic zones aid in identifying <strong>and</strong> characterizing certain<br />

geological conditions <strong>and</strong> the risk <strong>of</strong> seismic damage at a particular location <strong>and</strong> are used in establishing building<br />

codes to minimize seismic damage. The five seismic zones are: zone 0 (no measurable damage), zone 1<br />

(minor damage), zone 2 (moderate damage), zone 3 (major damage) <strong>and</strong> zone 4 (major damage <strong>and</strong> greater<br />

proximity than zone 3 to certain major fault systems).<br />

The ITC was designed to meet the structural <strong>and</strong> code requirements for a building <strong>of</strong> its type located in<br />

seismic zone 4 <strong>and</strong> to meet the st<strong>and</strong>ards <strong>of</strong> an “essential facility” (i.e., a facility that is immediately occupiable<br />

following a maximum credible seismic event). In addition, the more recent buildings <strong>and</strong> facilities constructed by<br />

the <strong>Airport</strong>, including the other terminal buildings, the AirTrain System <strong>and</strong> the <strong>Airport</strong>’s garages were designed to<br />

comply with then-current seismic design st<strong>and</strong>ards. These structures include the inbound <strong>and</strong> outbound freeway<br />

ramps <strong>and</strong> elevated circulation roadways serving the ITC; Garages A <strong>and</strong> G <strong>and</strong> the vehicle bridge connecting these<br />

two garages; Concourse H (the AirTrain/BART Station), the elevated guideway, eight stations, <strong>and</strong> the maintenance<br />

facility for the AirTrain system; the Rental Car Center; <strong>and</strong> the Communications Center located in a portion <strong>of</strong> the<br />

North Connector Building that links Terminal 2 to Terminal 3.<br />

In 2006, the <strong>Commission</strong> engaged an architectural firm to perform a feasibility study <strong>and</strong> seismic analysis<br />

<strong>of</strong> Terminal 2, which was constructed in 1951, <strong>and</strong> Boarding Area D <strong>and</strong> the FAA control tower, both <strong>of</strong> which are<br />

structurally integrated with Terminal 2 <strong>and</strong> were constructed in 1981. The analysis concluded that these facilities<br />

are highly susceptible to significant damage as a result <strong>of</strong> a major earthquake in the vicinity <strong>of</strong> the <strong>Airport</strong> which<br />

could render them inoperable for an extended period <strong>of</strong> time, <strong>and</strong> that they require significant structural upgrades in<br />

order to meet today’s stringent seismic code requirements <strong>and</strong> remain operable following a significant seismic event.<br />

The analysis also indicated that it is not cost effective nor operationally feasible to seismically upgrade the existing<br />

FAA control tower <strong>and</strong> that the FAA control tower should be relocated to a less seismically vulnerable site at the<br />

<strong>Airport</strong>.<br />

The <strong>Airport</strong> therefore is pursuing the construction <strong>of</strong> a replacement control tower in a new location with the<br />

FAA. The FAA has identified a preferred location for the new control tower, based on the results <strong>of</strong> their recent<br />

siting study. The <strong>Airport</strong> <strong>and</strong> the FAA are also discussing funding sources for the new control tower. In 2008,<br />

Congress appropriated an initial $1.5 million to the FAA to fund tower design activities at the <strong>Airport</strong>. The current<br />

Capital Plan provides for the renovation <strong>of</strong> Terminal 2 <strong>and</strong> Boarding Area D, including the required seismic<br />

upgrades for Boarding Area D. The Capital Plan also includes the anticipated FAA funding for the new control<br />

tower. The FAA has developed contingency plans for the operation <strong>of</strong> air traffic control functions from a temporary<br />

site in the event the FAA control tower is rendered inoperable. Such remote operations could result in a reduction in<br />

air traffic control service levels <strong>and</strong> capabilities, <strong>and</strong> may have a significant impact on the airspace system<br />

supporting the <strong>Airport</strong>. See also “CAPITAL PROJECTS AND PLANNING.”<br />

In April 2007, the <strong>Airport</strong> completed the first phase <strong>of</strong> a two phase project to install <strong>and</strong> construct<br />

improvements to the upper level roadway at the domestic terminals to increase seismic stability. The first phase <strong>of</strong><br />

the improvements consisted <strong>of</strong> seismically retr<strong>of</strong>itting the upper level viaduct adjacent to Terminals 1 <strong>and</strong> 2,<br />

installation <strong>and</strong> construction <strong>of</strong> related improvements, utilities <strong>and</strong> lighting systems. In September 2008, the <strong>Airport</strong><br />

received authorization from the State to proceed with the second <strong>and</strong> final phase <strong>of</strong> this project, which is located<br />

adjacent to Terminal 3. The contract for this project was awarded <strong>and</strong> construction commenced in March 2009.<br />

Completion <strong>of</strong> this project is expected in December 2010. In addition, the <strong>Airport</strong> maintains contingency plans to<br />

deal with major seismic events. See also, “CERTAIN RISK FACTORS–Seismic Risks.”<br />

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