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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approximately $881.9 million in projects. Of this total, approximately $416 million was financed through the<br />
issuance <strong>of</strong> the Series 2009E Bonds <strong>and</strong> $128.7 was financed with Commercial Paper. This Capital Plan also<br />
includes approximately $233.1 million in projects that will be funded with grants, $68.0 million in Passenger<br />
Facility Charges allocated to fund capital projects, $19.9 million in interest income <strong>and</strong> $15.5 million from operating<br />
revenues to support capital projects. A five year capital plan for the period between Fiscal Year 2010-11 <strong>and</strong> Fiscal<br />
Year 2014-15 is expected to be approved by the <strong>Commission</strong> in spring 2010.<br />
The Capital Plan includes the $383 million renovation <strong>of</strong> Terminal 2 <strong>and</strong> Boarding Area D, which will<br />
provide an additional 14 domestic gates (13 narrow-body <strong>and</strong> one wide-body). The renovation, which is expected to<br />
achieve Leadership in Energy <strong>and</strong> Environmental Design (LEED) Silver Certification, includes reconstruction <strong>of</strong><br />
more than 575,000 square feet <strong>of</strong> public space, installation at a new baggage facilities, new CTX explosive detection<br />
baggage screening machines, construction <strong>of</strong> two 500-square foot children’s play areas <strong>and</strong> seismic upgrades. The<br />
primary construction contract was awarded in spring 2008 <strong>and</strong> completion is expected in spring 2011.<br />
In accordance with the Lease Agreements, the Airlines are notified about projects contained in the five-year<br />
Capital Plan with costs that exceed the capital project review threshold that is indexed to inflation <strong>and</strong> adjusted<br />
annually. For Fiscal Year 2009-10, the capital project review threshold is $624,129. Following Airline review, the<br />
five-year Capital Plan is submitted to the <strong>Commission</strong> for approval. The Capital Plan includes projects related to<br />
health, safety <strong>and</strong> security enhancements; improvements to the airfield, groundside activities, terminals <strong>and</strong><br />
customer service functions; environmental mitigation; utilities infrastructure upgrades; cost savings <strong>and</strong> revenue<br />
generating enhancements; <strong>and</strong> seismic retr<strong>of</strong>it <strong>of</strong> certain facilities. See also “SAN FRANCISCO INTERNATIONAL<br />
AIRPORT–Existing Airline Agreements–Lease Agreements–Airline Review <strong>of</strong> Capital Improvements.”<br />
See also “AIRPORT’S FINANCIAL AND RELATED INFORMATION–Passenger Facility Charge–PFC<br />
Applications.”<br />
At the beginning <strong>of</strong> each Fiscal Year, the <strong>Airport</strong> convenes the Capital Project Review Committee (the<br />
“CPRC”), which is comprised <strong>of</strong> <strong>Airport</strong> senior management. The CPRC members meet over a three month period,<br />
evaluate new <strong>and</strong> existing capital projects against established criteria <strong>and</strong> select projects for funding in the Capital<br />
Plan. In developing the Plan, the CPRC considers available funding <strong>and</strong> the projected impact <strong>of</strong> capital projects on<br />
<strong>Airport</strong> debt service <strong>and</strong> the operating budget.<br />
General<br />
AIRPORT’S FINANCIAL AND RELATED INFORMATION<br />
A summary <strong>of</strong> historical financial results as reported in the <strong>Airport</strong>’s annual financial statements for the last<br />
five Fiscal Years is shown in the table below. See also APPENDIX A–“FINANCIAL STATEMENTS JUNE 30, 2009 AND<br />
2008 (WITH INDEPENDENT AUDITORS’ REPORT THEREON).” The financial statements include reporting <strong>of</strong> the costs<br />
<strong>and</strong> obligations <strong>of</strong> the <strong>Airport</strong> related to the post-employment health care <strong>and</strong> other non-pension benefits as required<br />
under the Governmental Accounting St<strong>and</strong>ards Board <strong>Statement</strong> No. 45. See also “–Payments to the <strong>City</strong>–Employee<br />
Benefit Plans.”<br />
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