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DATE: July 16, 2021 TO: SAA Board of Directors FROM

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DATE: July 16, 2021 TO: SAA Board of Directors FROM EXECUTIVE DIRECTOR 3237 Arnold Ave. Salina, Kansas 67401 Telephone (785) 827-3914 • FAX (785) 827-2221 • email [email protected] DATE: July 16, 2021 TO: SAA Board of Directors FROM: Tim Rogers and Shelli Swanson SUBJECT: July 21, 2021, SAA Regular Board Meeting Enclosed are items for your review prior to Wednesday's meeting. Please note that the meeting will be held in the first-floor conference room, Hangar 600, 2720 Arnold Ct. A map showing the location of Hangar 600 is enclosed in your board meeting packet. The meeting is also available via the following GoToMeeting link. https://global.gotomeeting.com/join/898301309 Wednesday’s meeting will address the following 2021 Airport Authority operating plan priorities. • Complete the SAA’s 2020 financial audit and publish the 2020 Comprehensive Annual Financial Report. • Scheduled air service development for the residents of Salina, Saline County and North Central Kansas. • Complete phased M.J. Kennedy Air Terminal improvements to accommodate increased passenger demand. • Maintain Airport Authority industrial center buildings. • Maintain the Salina Regional Airport system of runways and taxiways. Please note the following agenda comments. Agenda Item #5 – Review of Airport Activity and Financial Reports for the Month Ending June 30, 2021 (Rogers and Swanson) Airport Activity – Air Traffic (Rogers) The Salina air traffic control tower (ATCT) recorded 7,142 operations during June 2021 which was a 22% increase as compared to the June 2020 total of 5,846. For the year-to-date, a total of 40,124 operations have occurred at the Salina Airport which is 80% more than the June 2020 YTD total of 22,302. Airport Activity – Fuel Flowage (Rogers) The June 2021 fuel flowage came in at 159,725 gallons which was 80% more than the June 2020 total of 105,987 gallons. For the year-to-date, a total of 931,494 gallons has been delivered on the Airport which is 11% more than the 2020 YTD total of 837,609 gallons. June, July and August fuel flowage will continue the upward trend. Airport Activity – Passenger Enplanements (Rogers) During June 2021 SkyWest enplaned 1,979 passengers, which was a 768% increase over the May 2020 total of 228 passengers. The June YTD total passenger count was 6,267 which was a 36% increase over the June 2020 YTD total of 4,603. Passenger enplanements are expected to continue an upward trend during the remainder of CY 2021. Page 1 Financial Reports – Comments and Notes (Swanson) As we reached the mid-point of 2021, total operating revenue came in 8% over budget and is tracking $132,310 ahead of the same period in 2020. Full occupancy in Hangar 959, increased overall facility occupancy and a busy FOL calendar has spurred the increase in revenue performance and we expect this to continue through the 2nd half of 2021. As of this writing, Hangars 509, 600 and 606 are nearly full with summer FOL activity. Total operating expenses arrived 8% over budget YTD and June posted a $24,902 net income before depreciation making up some ground after the spike in utility costs in Q1. YTD net income before depreciation reached $31,891 and beat budget by $8,828. Financial Reports – June Significant Expenditures/Payables Report Enclosed Financial Reports – Accounts Receivable Past Due 31 days or more as of July 16, 2021 (Swanson) Account Amount Days Comments Shane Brown $245 31-60 Storage Igloo Rent Kenny’s Body Shop $578 31-90 Storage Igloo Rent Short-term Leasing Activity On June 17, the SAA entered into a one-month agreement with 1 Vision Aviation for leasing approximately 20,000 sq. ft. in Hangar 600. This agreement will generate $9,400 in Hangar rental income and support 1 Vision with temporary overflow space for aircraft maintenance work that will not presently fit in Hangar 959. At the end of June, in support of STRAT air flights, Fort Riley leased 21,026 sq. ft. in Hangar 600 and equipment that will generate $8,585 in rental income during their 17-day stay. On July 13, 2021, the SAA entered into a 32-day lease with Sierra Nevada Corp. for the leasing of Hangar 509 and ground support equipment. This short-term agreement will generate $36,023 in rental for the term during the month of July. SNC is also purchasing fuel during their flight-test operations based at Salina that will result in additional fuel flowage fees to the airport. Agenda Item #6 – Review of the Airport Authority’s January through June 2021 (Q2) 10-Year Financial Trend Analysis (Swanson) At the Meeting Shelli will review the SAA’s June 2021 (Q2) 10-year financial trend analysis that is included in your packet. Agenda Item #7 – Presentation of the Salina Airport Authority’s 2020 Comprehensive Annual Financial Report (Rogers and Swanson) Danielle Hollingshead with Adams Brown Beran & Ball, CPAs will attend the meeting via GoToMeeting to present the completed 2020 Comprehensive Annual Financial Report to the board. Ms. Hollingshead will confirm that the audit confirms the following: • No “deficiencies in internal control that we consider to be material weaknesses.” • “no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.” • “Salina Airport Authority complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2020.” The report’s schedule of Findings and Questioned Costs confirm that there were no findings of material Page 2 weakness, significant deficiency, noncompliance or questioned costs associated with the SAA’s financial statements or federal awards. A full copy of the report can be found at https://www.salinaairport.com/media/36647/2020-cafr-final.pdf Agenda Item #8– Consideration and Approval of a Grant Funding Agreement Between the Salina Airport Authority and Saline County (Rogers and Swanson) On June 8, 2021 the Saline County commissioners approved an Airport Authority request for a $1,640,000 American Rescue Plan Act grant to fund a SkyWest Airlines Transportation Services Agreement. The proposed Saline County grant agreement and associated SkyWest agreement is enclosed. Currently the Salina to/from Houston flight is in the SkyWest scheduling system for October 2021. The SLN/IAH schedule has not been uploaded to United’s reservation system and is not yet available for sale. The final scheduling of the flight is dependent on the availability of aircraft and pilots. Related to the SLN/IAH flight, 1 Vision Aviation is negotiating an agreement with SkyWest to begin a new line of regional jet checks and maintenance at SLN. Recommendations: First, approval of the proposed grant funding agreement between the Salina Airport Authority and Saline County and authorize Chair Gunn to sign the agreement. Second, authorize the executive director to sign the Salina Airport Authority and SkyWest Airlines Transportation Services Agreement. Agenda Item #9 – Consideration and Approval of a Construction Contract with Bettis Asphalt & Construction, Inc for the Rehabilitation of the South 7,500 ft. of Runway 17/35 (Rogers and Swanson) On June 23 Chair Gunn signed and accepted FAA Airport Improvement Program (AIP) Grant No. 42 that funds the rehabilitation of the south 7,500 feet of Runway 17/35. The initial amount of the multi-year grant is $3,116,021. Total project cost is $4,321,531. A second installment of $1,000,000 in AIP grant funds will be received in CY 2022. A third and final installment of $84,958 is scheduled for CY 2023. It is possible that both the CY22 and CY23 AIP grant installments will also fund the SAA’s 10% local share. A copy of the project budget summary is enclosed. With the FAA AIP grant agreement signed the Airport Authority can proceed with signing a construction contract for the Runway 17/35 rehabilitation project. On April 29, 2021 the Airport Authority received and opened bids for the Runway 17/35 rehabilitation construction work. Bids were received from APAC Kansas and Bettis Asphalt & Construction, Inc. The low bid of $3,664,898 was submitted by Bettis Asphalt. This was the first time in over a decade that the Airport Authority had received more than one bid for an airport paving project. A Notice of Award was issued to Bettis following the acceptance of the AIP No. 42 grant agreement. Enclosed is the contract agreement between the Salina Airport Authority and Bettis Asphalt & Construction. The contract amount is $3,664,898. The Runway 17/35 work is scheduled to be completed within a 55-day time frame – July 25 to September 3, 2022. All contract terms and conditions have been approved by the FAA. Recommendation: Approval of the proposed Contract Agreement with Bettis Asphalt & Construction, Inc in the amount of $3,664,898 and authorize the executive director to sign the agreement. Page 3 Agenda Item #10 – Consideration of Bids Received for the Purchase of M. J. Kennedy Air Terminal Concourse Passenger Seating (Rogers and Swanson) Concourse Furniture Bid Tab Design Central One Office Solution Concourse seating 42,037.50 44,290.00 Bar height tables & chairs 6,360.00 7,629.02 Power Outlet Options 7,440.00 3,639.72 Waste Receptacle 1,600.00 907.50 Labor and Installation 1,440.00 5,000.00 Total $58,877.50 $61,466.24 Recommendation: Approval of the $58,877.50 bid received from Design Central for the MJ Kennedy Air Terminal Concourse Furniture and authorize the executive director to sign the purchase order documents. Agenda Item #11 – Consideration of Bids Received for Parking Lot Repairs at Building No.
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