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

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Information Provided by the Commission and by Third Parties. This Official Statement presents information with respect to the Commission, the Airport and the Bank. The information contained herein has been obtained from officers, employees and records of the Commission and from other sources believed to be reliable. The information set forth herein is subject to change without notice. The delivery of this Official Statement at any time does not imply that information herein is correct as of any time subsequent to its date. The Commission and the City each maintain a website. Unless specifically indicated otherwise, the information presented on those websites is not incorporated by reference as part of this Official Statement and should not be relied upon in making investment decisions with respect to the 2010A Bonds. Limitation Regarding Offering. No broker, dealer, salesperson or any other person has been authorized to give any information or to make any representations, other than those contained in this Official Statement, in connection with the offering of the 2010A Bonds, and if given or made, such information or representations must not be relied upon as having been authorized by the City and County of San Francisco, the Commission or the Underwriters. This Official Statement does not constitute an offer to sell, or the solicitation from any person of an offer to buy, nor shall there be any sale of the 2010A Bonds by any person in any jurisdiction where such offer, solicitation or sale would be unlawful. The information contained herein has been obtained from officers, employees and records of the Commission and from other sources believed to be reliable. The information set forth herein is subject to change without notice. The delivery of this Official Statement at any time does not imply that information herein is correct as of any time subsequent to its date. Forward-Looking Statements. This Official Statement contains forecasts, projections, estimates and other forward-looking statements that are based on current expectations. The words “expects,” “forecasts,” “projects,” “intends,” “anticipates,” “estimates,” “assumes” and analogous expressions are intended to identify forward-looking statements. Such forecasts, projections and estimates are not intended as representations of fact or guarantees of results. Any such forward-looking statements inherently are subject to a variety of risks and uncertainties that could cause actual results or performance to differ materially from those that have been forecast, estimated or projected. Such risks and uncertainties include, among others, changes in domestic and international political, social and economic conditions, federal, state and local statutory and regulatory initiatives, litigation, population changes, financial conditions of individual air carriers and the airline industry, technological change, changes in the tourism industry, changes at other San Francisco Bay Area airports, seismic events, international agreements or regulations governing air travel, and various other events, conditions and circumstances, many of which are beyond the control of the Commission. These forward-looking statements speak only as of the date of this Official Statement. The Commission disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any changes in the Commission’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Underwriters’ Disclaimer. The Underwriters have provided the following sentence for inclusion in this Official Statement: The Underwriters have reviewed the information in this Official Statement in accordance with, and as part of, their responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information. No Securities Registration. The 2010A Bonds have not been registered under the Securities Act of 1933, as amended, in reliance upon an exemption from the registration requirements contained in such Act. The 2010A Bonds have not been registered or qualified under the securities laws of any state. Ratings of Other Parties. This Official Statement contains information concerning the ratings assigned by the Moody’s Investors Service, Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. and Fitch, Inc. for the Credit Providers, Liquidity Providers, the Swap Counterparties and the Guarantors of the Swap Counterparties, if any (each as defined herein). Such ratings reflect only the view of the agency giving such rating and are provided for convenience of reference only. Such rating information has been obtained from sources believed to be reliable but has not been confirmed or re-verified by such rating agencies. None of the Commission or the Underwriters takes any responsibility for the accuracy of such ratings, gives any assurance that such ratings will apply for any given period of time, or that such ratings will not be revised downward or withdrawn if, in the judgment of the agency providing such rating, circumstances so warrant. ii
INTRODUCTION .................................................................1 REFUNDING PLAN .............................................................2 2010A Bonds .....................................................................2 Series 2010A Swap Agreements........................................4 Additional Notes or Bonds.................................................5 ESTIMATED SOURCES AND USES OF FUNDS..............5 DESCRIPTION OF THE 2010A BONDS.............................5 General ...............................................................................5 Transfer and Exchange.......................................................6 Weekly Mode Provisions...................................................6 Redemption Provisions ......................................................7 Optional and Mandatory Tenders for Purchase................10 SPECIAL CONSIDERATIONS RELATING TO THE 2010A BONDS .............................................................12 Commission Obligation to Pay Purchase Price ................12 Remarketing Agents are Paid by the Commission ...........12 Remarketing Agents Routinely Purchase the 2010A Bonds for their Own Accounts..................................12 2010A Bonds May be Offered at Different Prices on Any Date Including an Interest Rate Determination Date ...................................................13 Ability to Sell the 2010A Bonds other than through the Tender Process May Be Limited .........................13 SECURITY FOR THE 2010A BONDS ..............................13 Authority for Issuance......................................................13 Source of Payment; Pledge of Net Revenues ...................13 Rate Covenant ..................................................................14 Contingency Account.......................................................15 Flow of Funds ..................................................................15 Flow of Funds Chart ........................................................17 Letter of Credit.................................................................18 Additional Bonds .............................................................18 Reserve Fund; Reserve Account Surety Bonds ................19 Contingent Payment Obligations .....................................21 No Acceleration ...............................................................22 Other Debt Issuance.........................................................22 Alternate Credit Facilities ................................................23 LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT ..............................................................24 Letter of Credit.................................................................24 Summary of Certain Provisions of the Reimbursement Agreement .................................................................24 THE BANK .........................................................................27 CERTAIN RISK FACTORS ...............................................27 Uncertainties of the Aviation Industry.............................27 Airport Security ...............................................................28 H1N1 Influenza ................................................................29 Climate Change Issues.....................................................29 Expiration of Leases .........................................................30 Airport Market Access.....................................................30 Credit Risk of Financial Institutions Providing Credit Enhancement, Liquidity Support and Other Financial Products Relating to Airport Bonds ..........31 TABLE OF CONTENTS Page Page iii Variable Rate Debt and Credit and Liquidity Provider Downgrades ..............................................................32 Seismic Risks ...................................................................32 Competition ......................................................................33 Uncertainties of Projections, Forecasts and Assumptions ..............................................................33 Limitation of Remedies ....................................................33 Initiative, Referendum and Charter Amendments ............34 Risk of Tax Audit of Municipal Issuers ...........................34 Future Legislation ............................................................34 SAN FRANCISCO INTERNATIONAL AIRPORT ...........34 Introduction ......................................................................34 Organization and Management ........................................34 Airport Senior Management and Legal Counsel ..............35 Current Airport Facilities .................................................37 Airport Security................................................................42 Airline Service..................................................................42 Passenger Traffic ..............................................................47 Cargo Traffic and Landed Weight....................................54 Competition ......................................................................56 Existing Airline Agreements ............................................57 Certain Federal and State Laws and Regulations .............61 Noise Mitigation and Variance.........................................62 Employee Relations..........................................................63 Hazardous Material Management .....................................64 CAPITAL PROJECTS AND PLANNING ..........................64 AIRPORT’S FINANCIAL AND RELATED INFORMATION ...........................................................65 General .............................................................................65 City Budget Process .........................................................66 Operating Revenues .........................................................67 Passenger Facility Charge ................................................68 Concessions ......................................................................69 Principal Revenue Sources...............................................73 Off-Airport Parking Facilities ..........................................74 SFOTEC ...........................................................................74 Interest Rate Swaps ..........................................................74 Operating Expenses..........................................................79 Payments to the City ........................................................79 Risk Management and Insurance......................................87 Investment of Airport Funds ............................................87 Currently Outstanding Bonds...........................................89 Debt Service Requirements ..............................................90 Historical Debt Service Coverage ....................................91 Current and Future Financings .........................................92 AIRLINE INFORMATION .................................................93 ABSENCE OF MATERIAL LITIGATION ........................93 General .............................................................................93 Other Matters....................................................................94 RATINGS ............................................................................94 UNDERWRITING ...............................................................94 2010A-1 Bonds ................................................................94 Series 2010A-2 Bonds......................................................94 2010A-3 Bonds ................................................................95
Page 1: SAN FRANCISCO INTERNATIONAL AIRPORT
Page 4 and 5: 2010A BONDS MATURITY SCHEDULE The i
Page 8 and 9: Page Page VERIFICATION OF MATHEMATI
Page 10 and 11: The 2010A Bonds will be secured by
Page 12 and 13: Maturity Date (May 1) 2011 2012 201
Page 14 and 15: Interest on the 2010A Bonds will be
Page 16 and 17: Mandatory Sinking Fund Redemption T
Page 18 and 19: Redemption of Credit Provider Bonds
Page 20 and 21: SPECIAL CONSIDERATIONS RELATING TO
Page 22 and 23: “Operation and Maintenance Expens
Page 24 and 25: Fifth, to pay for necessary reconst
Page 26 and 27: Letter of Credit Upon the delivery
Page 28 and 29: Pooled Reserve Account The 1991 Mas
Page 30 and 31: No Acceleration The Bonds are not s
Page 32 and 33: LETTER OF CREDIT AND REIMBURSEMENT
Page 34 and 35: appealable judgment, to be null and
Page 36 and 37: In addition to revenues received fr
Page 38 and 39: In addition to these regulatory act
Page 40 and 41: Each of Moody’s, Standard & Poor
Page 42 and 43: Initiative, Referendum and Charter
Page 44 and 45: Jackson J. Wong was appointed Chief
Page 46 and 47: that supports all airlines in the I
Page 48 and 49: from $1.50 to $4.00. The Airport is
Page 50 and 51: Airport Security In the immediate a
Page 52 and 53: � United Airlines commenced daily
Page 54 and 55: The following table lists the air c
Page 56 and 57:
During Fiscal Year 2008-09 approxim
Page 58 and 59:
Domestic Enplanements. During Fisca
Page 60 and 61:
International Enplanements. Interna
Page 62 and 63:
Cargo Traffic and Landed Weight Car
Page 64 and 65:
TOTAL LANDED WEIGHT BY AIRLINE †
Page 66 and 67:
Settlement Agreement Under the Sett
Page 68 and 69:
Expiration of the Settlement Agreem
Page 70 and 71:
the beneficiaries (the people of th
Page 72 and 73:
Hazardous Material Management Envir
Page 74 and 75:
SUMMARY OF AIRPORT FINANCIAL RESULT
Page 76 and 77:
Aviation Market Stimulus Program In
Page 78 and 79:
On November 21, 2006, Travelex, the
Page 80 and 81:
PRINCIPAL AIRPORT CONCESSIONAIRES
Page 82 and 83:
Off-Airport Parking Facilities Seve
Page 84 and 85:
INTEREST RATE SWAP POLICY MAXIMUM N
Page 86 and 87:
The table below summarizes the inte
Page 88 and 89:
SUMMARY OF PAYMENTS MADE BY THE AIR
Page 90 and 91:
Voter Approved Changes to the Retir
Page 92 and 93:
A decline in the actuarial value of
Page 94 and 95:
Postemployment Health Care Benefits
Page 96 and 97:
Under the Treasurer’s current inv
Page 98 and 99:
Debt Service Requirements The follo
Page 100 and 101:
Current and Future Financings Capit
Page 102 and 103:
Other Matters In the regular course
Page 104 and 105:
federal, state or local tax liabili
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MISCELLANEOUS This Official Stateme
Page 108:
(This Page Intentionally Left Blank
Page 149 and 150:
Introduction APPENDIX B INFORMATION
Page 151 and 152:
APPENDIX C SUMMARY OF CERTAIN PROVI
Page 153 and 154:
Closing Date means the date upon wh
Page 155 and 156:
Interest Payment Date means each da
Page 157 and 158:
the Trustee for cancellation; (b) B
Page 159 and 160:
payment agreement with the United S
Page 161 and 162:
Special Facility means any existing
Page 163 and 164:
Revenue Fund; Allocation of Net Rev
Page 165 and 166:
Moneys in the respective accounts i
Page 167 and 168:
Investments are allocated. Amounts
Page 169 and 170:
Subordinate Bonds The Commission ma
Page 171 and 172:
act or thing the effect of which wo
Page 173 and 174:
filing of any such petition or to t
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moneys, funds and properties pledge
Page 177 and 178:
The recitals, statements and repres
Page 179 and 180:
The Trustee or the Paying Agent, as
Page 181 and 182:
to or greater than the Credit Facil
Page 183 and 184:
(a) such 2010A Bonds sold by the Re
Page 185 and 186:
The Remarketing Agent The Remarketi
Page 187 and 188:
APPENDIX D SUMMARIES OF CERTAIN PRO
Page 189 and 190:
computations made in accordance wit
Page 191 and 192:
APPENDIX E SUMMARY OF CERTAIN PROVI
Page 193 and 194:
statement, it must be available fro
Page 195 and 196:
Duties, Immunities and Liabilities
Page 197 and 198:
APPENDIX F INFORMATION REGARDING TH
Page 199 and 200:
Ambac Assurance’s consolidated fi
Page 201 and 202:
Capitalization of AGM At September
Page 203 and 204:
The available amount of each MBIA s
Page 205 and 206:
complaint also alleges that certain
Page 207 and 208:
APPENDIX G PROPOSED FORM OF OPINION
Page 209 and 210:
APPENDIX H JPMORGAN CHASE BANK, NAT
Page 211 and 212:
The Available Amount (as hereinafte
Page 213 and 214:
JPMorgan Chase Bank, National Assoc
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
IN WITNESS WHEREOF, this Certificat
Page 221 and 222:
(ii) $_______________________ is de
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
The undersigned Transferor acknowle
Page 229 and 230:
The Bank of New York Trust Company,
Page 231 and 232:
Page 233 and 234:
The Bank of New York Trust Company,
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