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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INTRODUCTION .................................................................1<br />
REFUNDING PLAN .............................................................2<br />
2010A Bonds .....................................................................2<br />
Series 2010A Swap Agreements........................................4<br />
Additional Notes or Bonds.................................................5<br />
ESTIMATED SOURCES AND USES OF FUNDS..............5<br />
DESCRIPTION OF THE 2010A BONDS.............................5<br />
General ...............................................................................5<br />
Transfer <strong>and</strong> Exchange.......................................................6<br />
Weekly Mode Provisions...................................................6<br />
Redemption Provisions ......................................................7<br />
Optional <strong>and</strong> M<strong>and</strong>atory Tenders for Purchase................10<br />
SPECIAL CONSIDERATIONS RELATING TO THE<br />
2010A BONDS .............................................................12<br />
<strong>Commission</strong> Obligation to Pay Purchase Price ................12<br />
Remarketing Agents are Paid by the <strong>Commission</strong> ...........12<br />
Remarketing Agents Routinely Purchase the 2010A<br />
Bonds for their Own Accounts..................................12<br />
2010A Bonds May be Offered at Different Prices on<br />
Any Date Including an Interest Rate<br />
Determination Date ...................................................13<br />
Ability to Sell the 2010A Bonds other than through<br />
the Tender Process May Be Limited .........................13<br />
SECURITY FOR THE 2010A BONDS ..............................13<br />
Authority for Issuance......................................................13<br />
Source <strong>of</strong> Payment; Pledge <strong>of</strong> Net Revenues ...................13<br />
Rate Covenant ..................................................................14<br />
Contingency Account.......................................................15<br />
Flow <strong>of</strong> Funds ..................................................................15<br />
Flow <strong>of</strong> Funds Chart ........................................................17<br />
Letter <strong>of</strong> Credit.................................................................18<br />
Additional Bonds .............................................................18<br />
Reserve Fund; Reserve Account Surety Bonds ................19<br />
Contingent Payment Obligations .....................................21<br />
No Acceleration ...............................................................22<br />
Other Debt Issuance.........................................................22<br />
Alternate Credit Facilities ................................................23<br />
LETTER OF CREDIT AND REIMBURSEMENT<br />
AGREEMENT ..............................................................24<br />
Letter <strong>of</strong> Credit.................................................................24<br />
Summary <strong>of</strong> Certain Provisions <strong>of</strong> the Reimbursement<br />
Agreement .................................................................24<br />
THE BANK .........................................................................27<br />
CERTAIN RISK FACTORS ...............................................27<br />
Uncertainties <strong>of</strong> the Aviation Industry.............................27<br />
<strong>Airport</strong> Security ...............................................................28<br />
H1N1 Influenza ................................................................29<br />
Climate Change Issues.....................................................29<br />
Expiration <strong>of</strong> Leases .........................................................30<br />
<strong>Airport</strong> Market Access.....................................................30<br />
Credit Risk <strong>of</strong> Financial Institutions Providing Credit<br />
Enhancement, Liquidity Support <strong>and</strong> Other<br />
Financial Products Relating to <strong>Airport</strong> Bonds ..........31<br />
TABLE OF CONTENTS<br />
Page Page<br />
iii<br />
Variable Rate Debt <strong>and</strong> Credit <strong>and</strong> Liquidity Provider<br />
Downgrades ..............................................................32<br />
Seismic Risks ...................................................................32<br />
Competition ......................................................................33<br />
Uncertainties <strong>of</strong> Projections, Forecasts <strong>and</strong><br />
Assumptions ..............................................................33<br />
Limitation <strong>of</strong> Remedies ....................................................33<br />
Initiative, Referendum <strong>and</strong> Charter Amendments ............34<br />
Risk <strong>of</strong> Tax Audit <strong>of</strong> Municipal Issuers ...........................34<br />
Future Legislation ............................................................34<br />
SAN FRANCISCO INTERNATIONAL AIRPORT ...........34<br />
Introduction ......................................................................34<br />
Organization <strong>and</strong> Management ........................................34<br />
<strong>Airport</strong> Senior Management <strong>and</strong> Legal Counsel ..............35<br />
Current <strong>Airport</strong> Facilities .................................................37<br />
<strong>Airport</strong> Security................................................................42<br />
Airline Service..................................................................42<br />
Passenger Traffic ..............................................................47<br />
Cargo Traffic <strong>and</strong> L<strong>and</strong>ed Weight....................................54<br />
Competition ......................................................................56<br />
Existing Airline Agreements ............................................57<br />
Certain Federal <strong>and</strong> State Laws <strong>and</strong> Regulations .............61<br />
Noise Mitigation <strong>and</strong> Variance.........................................62<br />
Employee Relations..........................................................63<br />
Hazardous Material Management .....................................64<br />
CAPITAL PROJECTS AND PLANNING ..........................64<br />
AIRPORT’S FINANCIAL AND RELATED<br />
INFORMATION ...........................................................65<br />
General .............................................................................65<br />
<strong>City</strong> Budget Process .........................................................66<br />
Operating Revenues .........................................................67<br />
Passenger Facility Charge ................................................68<br />
Concessions ......................................................................69<br />
Principal Revenue Sources...............................................73<br />
Off-<strong>Airport</strong> Parking Facilities ..........................................74<br />
SFOTEC ...........................................................................74<br />
Interest Rate Swaps ..........................................................74<br />
Operating Expenses..........................................................79<br />
Payments to the <strong>City</strong> ........................................................79<br />
Risk Management <strong>and</strong> Insurance......................................87<br />
Investment <strong>of</strong> <strong>Airport</strong> Funds ............................................87<br />
Currently Outst<strong>and</strong>ing Bonds...........................................89<br />
Debt Service Requirements ..............................................90<br />
Historical Debt Service Coverage ....................................91<br />
Current <strong>and</strong> Future Financings .........................................92<br />
AIRLINE INFORMATION .................................................93<br />
ABSENCE OF MATERIAL LITIGATION ........................93<br />
General .............................................................................93<br />
Other Matters....................................................................94<br />
RATINGS ............................................................................94<br />
UNDERWRITING ...............................................................94<br />
2010A-1 Bonds ................................................................94<br />
Series 2010A-2 Bonds......................................................94<br />
2010A-3 Bonds ................................................................95