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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