Good evening.

Thank you for joining the um budget and special budget and finance committee.

Um I am Supervisor Connie Chan, the chair of this committee, and joined by Vice Chair uh Rafael Supervisor Raphael Mendoman, uh our clerk is Brent Halipa, and this and I want to thank SFGov TV, Matthew Icknow uh for broadcasting this uh meeting.

Um Mr.

Clerk, do you have any announcement?

Thank you, Madam Chair.

Just a friendly reminder for those in attendance to please make sure to silence all cell phones and electronic devices as to not interrupt our proceedings.

How the Board of Supervisors and its committees are convening hybrid meetings that allowing personal attendance and public comment, also providing remote access and public comment via telephone.

How public comment will be taken on each item on this agenda, and those attending in person will be allowed to speak first.

And then we will take those who are waiting on the telephone line.

Uh for those watching remotely and streaming through sfgovtv.org.

The public comment call in number streaming across the screen, and when connected, you will hear meeting discussions, but you'll be muted in the listing mode only when your item of interest comes up in public comment that's called.

Those joining us in person should like to speak and those on telephone to dial star three to be added to the speaker line.

If you're on your telephone, please remember to turn down uh your TV and all listening devices you may be using, and each speaker will be allowed up to two minutes to speak unless otherwise stated.

Alternatively, you may submit public comment in writing in either of the following ways.

Email them to my self, the budget and finance committee clerk at BRENT dot J A L I P A at SFGO V dot or G.

If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file.

You may also send your written comments via U.S.

Postal Service to our office and city hall.

That's one, Dr.

Carlton B.

Goodlett.

Place, room 244, San Francisco, California, 94102.

And finally, Madam Chair, items acted upon today are expected to appear on the Board of Supervisors' agenda of June 27th, unless otherwise stated.

Madam Chair.

Thank you, Mr.

Clerk.

And before we call the items, I would like to make the motion to excuse uh Supervisor Safayi for the remaining of this uh for for this meeting.

And on that motion to excuse uh member Safai, Vice Chair Mandelman.

Chair Chan.

I Chan, I we have two eyes with uh with uh member Safe excused.

Thank you, and the motion passes.

And with that, um Mr.

Clerk, could you please call all three uh item one, two, and three together?

Uh yes, madam chair one to second uh items number one and two are resolutions approving the 2023 lease use agreement between the city and county acting by and through its airport commission.

Item one with 29 airlines, item two is with 11 airlines to conduct flight operations at uh the San Francisco International Airport for a term of 10 years from July 1st, 2023 through June 30th, 2033, referring the plan department's uh determination under CEQA and to authorize the airport direction uh director to enter into a modifications to the lease that do not materially increase the obligations or liabilities to the city and are necessary to effectuate the purposes of the leases or these resolutions.

Item number three is a resolution approving the issuance of not to exceed approximately six billion aggregate principal amount of San Francisco International Airport's second series refunding revenue bonds to refinance bonds and subordinate bonds, approving the issuance of not to exceed approximately sixty million aggregate principal amount of San Francisco International Airport Special Facilities Bonds to refund bonds issued to finance fuel storage and delivery facilities, approving the issuance of not to exceed approximately 262.5 million aggregate principal amount of San Francisco International Airport Special Facilities Bonds to refund bonds issued to finance the airport hotel, approving revolving lines of credit and term loans in an available principal amount, together with the aggregate outstanding principal amount of subordinate bonds issued as commercial paper notes not to exceed 600 million, approving the purchase of bonds or subordinate bonds by the airport, approving the maximum interest rates, maturity dates and number of issues of such capital bonds, capital plan bonds, refunding bonds, subordinate bonds, and special facilities bonds, approving certain resolutions of airport commission and approving certain other related matters as defined.

And members of the public who are joining us remotely and wish to comment, please call 415-655-0001.

Enter the meeting ID of 2591 092 6245.

Then press pound twice.

Once connected, press star three to enter the speaker line.

Your prompt will indicate that you've raised your hand and when the system indicates you have been unmuted.

There will be your cycle to begin your comments.

Madam Chair.

Thank you, Mr.

Clerk.

And I want to say that on the record that all three items uh, particularly one, uh particularly three has been heard and presented.

And I want to say that on the record that all three items uh, particularly one uh particularly three has been heard and presented uh and with the BLA report uh previously, and that was on um May 17.

And then for item one and two, uh, we are going to have the presentation from the airport.

Uh both items has uh a budget and legislative analyst report, uh, but I assume it's going to be brief.

Um so with that, thank you.

And finally, thank you.

Good evening, Chair Chan, uh, Vice Chair Mandelman.

I'm Kathy Widener with the San Francisco International Airport, and I will first present on items one and two, both of which are um lease and use agreements between the San Francisco International Airport and 40 signatory airlines for a 10-year term from July 1st, 2023 through June 30th, 2033.

The lease and use agreement is the mechanism that allows airlines to provide flight operations and rent terminal space at the airport.

The agreement also provides a common set of lease provisions such as rent fees and permitted uses of terminal space and supports the legal framework for the airport to make an annual service payment to the city.

This new agreement replaces the 2011 agreement, which will expire on June 30th, 2023, which was approved by the Board of Supervisors as well as subsequent addition of airlines.

The 2023 lease retains the residual rate sending methodology for terminal rentals and landing fees based on the airport's rates and charges and the annual service payment to the city's general fund.

The 2023 lease has been offered to all air carriers operating at San Francisco Airport and will continue to be offered to all airlines through the remainder of this term, including new entrants.

The lease and use agreement will generate six billion dollars in airline revenue over the term of the lease and gives the airport the financial stability to plan for the future and to continue our post-pandemic recovery.