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

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