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

Off-Airport Parking Facilities
Seven off-Airport parking facilities are operated by private companies. These parking facilities offer
approximately 8,550 public remote parking spaces for Airport patrons, including a covered 1,500 space facility that
is located near the long-term parking facility operated by the Airport. These off-Airport parking facilities are in
addition to the spaces currently available at the Airport. In Fiscal Year 2005-06, parking volume decreased
approximately 3.2%. However, revenues increased approximately 6.6% to $52.8 million due to an adjustment in the
time and structure of the grace period in the parking garages and the re-opening of the Airport's long-term parking
garage in June 2006. In Fiscal Year 2006-07, parking volume increased approximately 2.3% and revenues increased
approximately 10.3% to $58.3 million due primarily to a 43.7% increase in patronage at the new long-term facility.
In Fiscal Year 2007-08, parking volume increased by approximately 3.7% and revenues increased by approximately
14.6% or $8.5 million due primarily to increased passenger traffic at the Airport, an enhanced marketing program
that increased market share and a restructuring of parking rates. In Fiscal Year 2008-09, parking volume decreased
by approximately 1.5%, however revenues increased by approximately 3.3% or $2.2 million due to an increase in
long-term parking rate of $1 per day and an increase in hourly parking rates of $1 per day in November 2008. See
also “SAN FRANCISCO INTERNATIONAL AIRPORT–Current Airport Facilities–Ground Transportation and Parking
Facilities–Public Parking.”
SFOTEC
The twenty-two airlines which operate in the ITC formed the San Francisco Terminal Equipment
Company, LLC (“SFOTEC”) to use, operate and maintain certain Airport-owned common-use equipment and
systems related to handling flights and passengers at the ITC. This equipment, which includes computer check-in
systems with baggage and boarding pass printers, flight information systems, baggage handling systems, passenger
loading bridges, systems for delivering preconditioned air to aircraft and ground power for aircraft, was acquired by
the Airport with approximately $100 million of Airport bond proceeds. SFOTEC also manages the daily assignment
of the ITC joint use gates, holdrooms, ticket counters and baggage systems to the airlines operating in the ITC in
accordance with Airport-approved protocols.
In November 2000, the Airport and SFOTEC entered into a five-year services contract, which contract was
renewed through June 30, 2011, pursuant to which SFOTEC is obligated to maintain, operate, repair and schedule
the common use of such equipment; pay the associated utility and custodial costs; and provide non-discriminatory
access to such equipment for all ITC carriers, whether or not they are members of SFOTEC. See “AIRPORT’S
FINANCIAL AND RELATED INFORMATION–Passenger Facility Charge.” The costs of operating and maintaining the
equipment are shared by all airline users of the equipment. The user fees for airlines that are members of SFOTEC
are determined pursuant the terms of the SFOTEC Members Agreement, while the user fees of non-member airlines
are negotiated between SFOTEC and the non-member airlines. Charter airlines are currently the only non-member
airlines that use the equipment.
Interest Rate Swaps
General
Pursuant to the 1991 Master Resolution, the Commission may enter into one or more Interest Rate Swaps
in connection with one or more series of Bonds. An Interest Rate Swap is an agreement between the Commission or
the Trustee and a Swap Counterparty under which a variable rate cash flow (which may be subject to an interest rate
cap) on a principal or notional amount is exchanged for a fixed rate of return on an equal principal or notional
amount. The Swap Counterparty must be a member of the International Swaps and Derivatives Association and
must be rated in one of the three top rating categories by at least one rating agency. The 1991 Master Resolution
provides that, if and to the extent provided in any Supplemental Resolution authorizing the issuance of a series of
Bonds, regularly scheduled swap payments may be paid directly out of the account or accounts in the Debt Service
Fund established with respect to such series of Bonds, and thus on a parity with debt service on the Bonds.
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