July 12 1989 Minutes MINUTES OF THE REGULAR MEETING OF THE BOARD OF
DIRECTORS OF THE SALINA AIRPORT AUTHORITY
JULY 12, 1989 - 8:00 A.M.
TERMINAL BUILDING - SALINA MUNICIPAL AIRPORT
The meeting was called to order at 8 :05 A.M. by Chairman Stephenson.
Attendance was taken. Chairman Stephenson, Directors Walker, Morrison
Roth and Ott were present. Also present were Executive Director
Rogers, Operations Director Kneubuhl and Attorney Bengtson. Mayor Joe
Warner, Gerald Cook, Jack Mahoney and Gordon Fiedler were guests.
Chairman Stephenson advised that Agenda Item No. 10, review of bids
received for an addition to Jim Palmer ' s building #824 , will not be
reviewed today, as Palmer has decided to wait a while on the addition.
Chairman Stephenson stated that an addition to the Agenda would be
14A, which will be discussion of a lease for Building #450.
Chairman Stephenson asked if the Board members had any additions or
corrections to the minutes of the June 14 , 1989 regular Board meeting.
In absence of any corrections to the minutes as mailed, Chairman
Stephenson declared the minutes approved.
Executive Director Rogers presented the financial reports for the
month ending June 30, 1989. Chairman Stephenson presented a breakdown
of expenses by category report that had been prepared by Harrison and
Arnett, Accountants. Stephenson asked if the directors felt it would
be a helpful report to view. Director Ott stated he felt the
directors needed more time to view it. Director Roth asked that
starting next month copies of the report be sent to the directors so
it can be reviewed prior to the Board meeting. Chairman Stephenson
instructed that the financial reports be filed for audit.
Chairman Stephenson introduced Gerald Cook, Salina Area Chamber of
Commerce. Cook stated about six months ago the Chamber was approached
by the Kansas Board of Regents about the possibility of Kansas Tech
moving into the Marymount College buildings. The Regents advised they
had no money to purchase the campus. About one and one-half months
ago, Stan Koplick, Kansas Board of Regents, came to Salina and
discussed the possibility of a merger of Kansas Tech and Kansas State
University, locating the merged schools at Marymount College, and
selling the Kansas Tech campus to the Salina Airport Authority.
Kansas State University' s four-year engineering school would be moved
to Kansas Tech, Salina, and the name of the school would be Kansas
State University at Salina. One item that was not agreed on was
Koplick' s request for $300, 000/year of maintenance funds to upgrade
the facility. Cook stated in order for this chain of events to take
place, the Airport Authority would need to purchase the entire Kansas
Tech campus. The money derived from the sale of the campus would be
used by the Board of Regents to pay for the Marymount campus. Money
needed from the Airport Authority to buy the Kansas Tech campus would
be approximately three million dollars. The hangars and aeronautical
center would be then leased back to the Board of Regents for use by
Kansas Tech.
Cook stated if this all happens, it will do two things for Salina:
( 1) . Turn the Marymount College closing into an asset.
( 2) . Provide better strength for Kansas Tech with their position
with the State.
Cook stated the K-State Salina campus would expect to have 1, 000 -
1, 500 students within five years. The plan has been very well
received by the Board of Regents and Kansas State.
Chairman Stephenson stated the Board' s principal concern would be how
the Airport Authority would handle the financing of the purchase of
the existing KCT campus. Gerald Cook stated that they would not want
to weaken the Airport Authority in any way. Director Ott stated that
with the purchase and the leasing back of the building, it would
increase the Airport Authority' s cash flow. Cook stated the Airport
Authority would be leasing back approximately two-thirds of the
buildings.
Executive Director Rogers stated he has talked to the Army Guard about
the possible lease of some of the Kansas Tech buildings. The Guard
has an immediate need for space, but it will take some time for them
to arrange for funding. Director Walker stated the Airport Authority
would like to make this work in any way possible, and he feels it
would be a matter of simply working it out. Rogers stated he would
like to know if this is the direction the Board would want to go.
Director Ott moved, seconded by Director Walker, that the Chairman
continue with negotiations on the Kansas Tech property. Motion
carried unanimously.
Chairman Stephenson stated the Union Pacific Railroad is going to
convey ownership of the tracks at Centennial and Water Well Road to
the Salina Airport Authority. Saline County is wanting to remove the
railroad tracks located within the roadway of the new Water Well road
east of Centennial Road in order to pave the road. The County has
drawn up an agreement that will permit them to remove the tracks as
soon as the Airport Authority receives a bill of sale from Union
Pacific Railroad. The roadway will be constructed in such a manner
that when the tracks are needed in the future, the asphalt will be
able to be saw cut and new railway roadbed and tracks will be able to
be put in place. Director Roth moved, seconded by Director Ott, that
the Board approve the Agreement with Saline County. Motion carried
unanimously.
Executive Director Rogers stated the County is asking for a temporary
construction easement to be used during the construction of the Water
Well Road overpass. The easement totals . 390 acres and involves
property that is located both north and south of Water Well Road west
of Centennial Road on Airport Authority property. Director Morrison
moved, seconded by Director Ott, to approve the temporary construction
easement as submitted by Saline County. Motion carried unanimously.
Executive Director Rogers stated that in the May 24, 1989 Board
meeting the Board approved a resolution authorizing the acceptance of
an amendment to the Grant Agreement for FAA project AIP-09. The
resolution failed to designate the Executive Director as being
authorized to attest to the Chairman' s signature and to affix the
Airport Authority seal on the grant agreement amendment. In order to
make this change, an amended resolution has been drawn up authorizing
the Executive Director to attest to the Chairman' s signature and to
place the Airport Authority seal on the amendment. Director Roth
moved, seconded by Director Morrison, that the Board approve the
amended resolution, as presented. Motion carried unanimously.
Executive Director Rogers stated that in the sale of the former ASI
hangar to the Kansas National Guard last September, it was agreed that
the Airport Authority would complete certain improvements to the
hangar. The total sale price for the hangar was $392 , 000. This
amount included $42 , 000 that was to fund improvements to the hangar.
Bids for the improvements to the hangar were received on June 22 ,
1989. Bill Medina Construction of Salina, submitted the low bid of
$42 ,900 for the installation of a helicopter washrack and certain
interior modifications. Director Morrison moved, seconded by Director
Walker, that the Board approve the low bid as submitted by Bill Medina
Construction of $42, 900. Motion carried unanimously.
Executive Director Rogers reported on his opportunity to go to Pinion
Canyon training center with the Kansas Army National Guard and watch
our Salina unit during their annual training. The unit will be at the
training center for two weeks.
Executive Director Rogers reported that Building #673 is in need of
new roofing this year. Slick' s Agri Farm Center currently leases the
building. The building has a flat tar and gravel roof on it and we
propose to re-roof the building with a standing seam metal roof that
will be sloped in order to provide better drainage on the building.
Total dollars budgeted for re-roofing on buildings during 1989 is
$75, 000. No other buildings are in needing to be re-roofed this year.
Bids were received on June 22, 1989. Salina Building Systems
submitted the low bid of $43 ,644 . Director Roth moved, seconded by
Director Morrison, that the Board approve the low bid of $43 ,644
submitted by Salina Building Systems for the re-roofing of Building
#673 . Motion carried unanimously.
Executive Director Rogers stated that Schwan' s Sales continues to grow
and need more space. The Transportation Division needs additional
growth area. A fifth addendum to Schwan' s Lease for the ramp area
provides for additional acreage to be used by Schwan' s for the
installation of two underground storage fuel tanks. The addendum
increases the area leased from 13 . 27 acres to 14. 23 acres. Rental for
the . 963 acres will be $82 per month, increasing ramp area rent from
$1,089 .12 to $1,171. 12. Rogers stated that Larry Bengtson will see
that the language will include that the installation will comply with
all State and Federal regulations. Director Walker moved, seconded by
Director Morrison, that the Board approve the fifth addendum to
Schwan' s north ramp lease as presented. Motion carried unanimously.
Executive Director Rogers advised that farm tenant Dennis Johnson has
asked the Airport Authority to assist in payment for herbicides and
fertilizers placed on his acreage. 40% of herbicide/fertilizer costs
would be deducted from our 40% received from the crops. Rogers
advised that none of the other farmers have asked for this assistance.
Discussion followed on whether the same assistance should be offered
the other tenant farmers. Director Morrison moved, seconded by
Director Roth, that the farm leases be amended to pay 40% of all
fertilizers/herbicides. Motion carried unanimously.
Executive Director Rogers gave an update on the International Pilot
Training Center. Rogers stated the size of the building has been
reduced. The building is being designed so additions can be made as
needed. New bids will be received on July 27. The Board of Regents
has approved the agreement with Bricom. The final agreement with
Board of Regents and the Salina Airport Authority has nearly been
finalized. The deadline to have all contracts signed is August 1.
Ground breaking will be in September.
Executive Director Rogers stated Jarvis Construction has vacated
Building 450. A lease has been prepared to lease the building to A.
C. Stewart Co. for $300/month. A. C. Stewart Co. is working with
Rickel Manufacturing to do some of the components of their spraying
equipment. Director Roth moved, seconded by Director Ott, that the
Board approve the lease on Building 450 to A. C. Stewart Co. Motion
carried unanimously.
On a motion duly made, the meeting adjourned at 9: 30 a.m.
Minutes approved at the August 9, 1989 regular Board meeting.
Secretary