12-18-2002 MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF
DIRECTORS OF THE SALINA AIRPORT AUTHORITY
DECEMBER 18, 2002
M. J. KENNEDY AIR TERMINAL CONFERENCE ROOM
Call to Order
The meeting was called to order at 8:00 A.M. by Chairman Vanier.
ARendance
Attendance was taken. Chairman Vanier, Directors Bolen, Hassler, Miller and Morris were present. Also
present were Executive Director Tim Rogers; Manager of Operations, Maintenance and ARFF Ryan Rocha;
Manager of Administration and Finance Shelli Swanson; Manager of Special Projects Don Kneubuhl;
Board Attorney Greg Bengtson and Administrative Assistant Cathy Lentz. City Commissioner Monte
Shadwick; Sheriff Glen Kochanowski; Bill Powell, League of Women Voters; Darren Stineman, Salina
Journal; and Todd Pittinger, KSAL Radio were guests.
Additions to the A~enda
Chairman Vanier asked if there were additions to the Agenda. Executive Director Rogers stated there are
no additions.
Minutes
Chairman Vanier asked if the Board members had any additions or corrections to the minutes of the
November 20, 2002 regular Board meeting. Director Bolen moved, seconded by Director Hassler, to
approve the minutes as written. Motion carried unanimously.
Airport Activity and Financial Reports
Executive Director Rogers reviewed the Airport Activity Report for November, 2002. Rogers indicated
that aircraft operations and fuel flowage numbers continue to look good for the year to date. Rogers
reported that Midway Aviation will have as many as four postal service flights per day through the year-
end.
Manager of Administration and Finance Swanson reviewed financial reports for November, 2002.
Swanson stated the farm revenue is now due and coming in. Swanson reviewed capital expenditures.
Swanson stated this month there are two requests for disbursements from the Facility Improvement Fund.
These include the following:
1.) Bob & Joe Smith Salvage, Inc. $20,000
(Progress payment on demolition ofbldgs. #624, #634 & #654 - balance on project = $27,500)
2.) APAC-Kansas, Inc. - Shears Division $6,919.95
(Parking lot construction at bldg. #313 - Two Rivers Vending facility)
Total request for disbursement from improvement fund: $26,919.95
Manager of Administration and Finance Swanson stated Contractor applications and certifications for
payment that have been reviewed by Director Miller and paid are as follows:
1 .) Commercial Contractors $29,179.22
(Final contractor payment for Bldg. #394 remodel)
2.) ABS Abatement, Inc. $13,130.11
(Payment in full on asbestos abatement contract for Bldgs. #313, #394 & #820)
Total request for Board ratification on disbursement from the improvement fund: $42,309.33
Director Hassler moved, seconded by Director Bolen, to approve the disbursement requests from the
Facility Improvement Fund totaling $26,919.95 and to ratify the disbursements to contractors in the
amount of $42,309.33. Motion carried unanimously.
Chairman Vanier asked that the November, 2002 financial statements be filed for audit.
Auditor Selection
Executive Director Rogers stated the Board, acting as an audit committee, has already selected the CPA
firm of Clubine & Rettele, Chartered as the SAA auditors for 2002-2004. Rogers presented the firm's
letter of agreement for the three-year term. Rogers stated that at the end of the three-year term, the SAA
will again solicit statements of interest and qualifications from interested CPA firms and select a new
firm for another three-year term. The Government Finance Officers Association and the Government
Accounting Standards Board recommend this auditor rotation. Director Bolen moved, seconded by
Director Miller, to approve the proposed letter of engagement with Clubine & Rettele, Chartered, for the
SAA's 2002, 2003 and 2004 fiscal year audits. Motion carried unanimously.
Law Enforcement Contract
Executive Director Rogers recognized Sheriff Glen Kochanowski. Rogers stated witlh the additional
flight beginning in January, there is a need to increase staffing for security to comply with Transportation
Security Administration (TSA) regulations. By the terms of the proposed Contract, the Saline County
Sheriff's Department would assume the responsibility for providing an armed law enforcement officer
(LEO) at the passenger security checkpoint at the times the TSA is screening air carrier passengers. The
presence of an armed LEO is required by federal regulations (49 CFR Part 1542).
Executive Director Rogers stated that the Salina Police Department and Saline County Sheriff's
Department have been involved with security screening since September 11, 2001. Discussions with
both the Police Department and Sheriff's Department resulted in the determination that the Sheriff's
Department would assume the LEO duties. Rogers stated today he is asking authorization from the
Board to work with Saline County legal counsel, Mike Montoya, and SAA attorney, Cn'eg Bengtson, to
complete the proposed contract. Discussion followed on how other communities are handling the use of
LEO services during screening. Director Miller moved, seconded by Director Hassler to authorize
Rogers and Attorney Bengtson to continue to work with the Sheriff's Department and Saline County to
complete the law enforcement contract. Motion carried unanimously.
2003 Budget
Executive Director Rogers highlighted the following 2003 Budget items:
I. 2003 Budget Report Comments - Significant Budget Variables
II.
A. Vacant Building Leasing
i.e. Building #1021 assumptions - 6 months of rental revenue totaling $72,000.
(Note - 3 year-end prospects, one showing on 12/16).
The budget assumptions state our goals for leasing vacant buildings. Staff
feels we are better off setting ambitious goals and then work hard to achieve
them, instead of relaxing and assuming that vacant buildings will eventually be
leased.
B. FuelFlowage Fees
1. Due to primary runway construction, fuel flowage fees will be lower -just
hard to estimate how low.
2. Aircraft will be able to use Runway 12/30 during 17L/35R rehabilitation.
3. The SAA communication plan is intended to make users know that 12/30 is
available and emphasize the fact that the Airport is not closed.
C. FAA Grant Fundin~ - Timing
1. Congress must still pass the FY 2003 DOT appropriations bill.
2. Runway 17L/35R will require FAA discretionary funds which are always the
last to be released.
D. SAA Tenants - Stability
1. Currently, all current tenants appear to be doing O.K.
2. Monitor Accounts Receivable closely.
3. Monitor tenant's financial statements, as appropriate.
E. State of Kansas Budget Cuts
1. SAA tenants CAP, KHP, KSUS.
F. 2003 Insurance Premiums- Good News
1. Most recent estimate - 12/17/03 - $103,809. Down $7,546 from $111,355 in
Budget Report.
2. Only a 19.4% increase over 2002 actual and - We're happy!
How to Best Manage the 2003 Budget in Light of Variables
A. Formal Quarterly Reviews to Monitor Trends and Results.
1st Quarter Review - April 16, 2003 Board meeting.
a. Runway 17R/35L construction nearly complete.
b. Leasing progress.
2. 2nd Quarter Review - July 16, 2003 Board meeting.
Runway 17L/35R construction underway.
Leasing progress - If#1021 is not leased, there may be a need to
reduce expenditures.
3rd Quarter Review - October 15, 2003 Board meeting
a. Runway 17L/35R construction near scheduled completion.
b. Leasing progress
c. Fuel Flowage amounts - Results and Impacts.
B. Based Upon Quarterly Budget Reviews:
1. Adjust cash expenditures, operating expenditures and capital
proj ects/expenditures.
2. $107,500 in capital expenditures have been identified as 2nd half items.
3. Maintain ending cash balances.
Unrestricted $387,970
Restricted $135,000
Total $522,970
a. Cash balance goals are important in order to enable the SAA to make
decisions such as:
Accelerate G.O. Bond debt payment
· Finance future capital projects
· Consider self insurance actions
4. Document all Budget changes and revisions in the SAA Board .Agenda memo.
Executive Session
At 8:46 A.M. Director Bolcn moved to recess thc open meeting for 30 minutes for an executive session
for the following:
1.) Personnel matters of non-elected personnel for the reason that public discussion of thc executive
director's 2002 performance appraisal would violate the privacy rights of the executive director.
The Open meeting shall resume in thc M. J. Kennedy Air Terminal Building Conference Room at 9:15
A.M.
Director Hasslcr seconded thc motion. Motion carried unanimously.
Thc Open meeting was recessed at 8:47 A.M.
The Open meeting resumed at 9:15 A.M.
Final Action on the 2003 Budget Reoort
Director Bolcn moved, seconded by Director Morris, to approve thc 2003 Budget Report. Motion carried
unanimously.
Staff Reports
Executive Director Rogers reported that with the opening of the new control tower, the SAA installed a
new TARDIS monitor. The Kansas Air National Guard is in need of a monitor at the Bombing Range,
and the SAA has agreed to transfer our surplus monitor to the Guard.
Announcements
Executive Director Rogers stated that the Government Finance Officer's Association has awarded a
Certificate of Achievement for Excellence in Financial Reporting to the SAA for its comprehensive
annual financial report for the fiscal year ending December 31,2001. This marks the 10t~ consecutive
year that the SAA has received the GFOA's highest form of recognition in governmental accounting and
financial reporting. A news release with this announcement will go out today.
Upon a motion duly made, the meeting adjourned at 9:23 a.m.
Minutes approved at the January 15, 2003 Board meeting.
Secretary