2.

*Approval of Vouchers

Construction Warrant Numbers  002649 – 002665       $   140,241.92

Operational Warrant Numbers    100724 – 100993       $1,320,444.35

3.

*Fifth Amendment to Lease Agreement – Aries Northwest, LLC – Aries Northwest dba Westside Motorsports has leased approximately 37,100 square feet of improved land since July 1, 2001 for a motorcycle training course.  The term of the agreement shall be extended one year commencing July 1, 2007.  The rent shall be $4,823 per year or $0.13 per square foot per annum excluding Washington state leasehold tax.  Staff recommends approval.

ABP

4.

*Lease Agreement – Century Archives Northwest, LLC – Century Archives  will utilize 800 square feet of office space and 2,133 square feet of warehouse space in Building 1200, Suite 104.  The term of the agreement shall be five years commencing upon beneficial occupancy.  They shall pay $14.88 per square foot per annum for the office space and an additional $6.00 per square foot per annum for the warehouse space excluding Washington state leasehold taxes.  Staff recommends approval.

ABP

5.

*Consent to Assignment Lease Agreement – F & M Bank to Banner Bank - F & M Bank provided notice to the airport that a merger had been approved and will begin operating as Banner Bank effective August 17, 2007.  Banner Bank will continue leasing Building 1200, Suite 100 under the same terms and conditions of the lease formerly held under the name F & M Bank.  Staff recommends approval.

ABP

6.

*Lease Agreement for Building 1378, Suite 101 – Northern Commanders, LLC – Northern Commanders is an aircraft charter service that relocated to Spokane and will utilize 824 square feet as office space.  The term of the agreement is month to month and commenced August 1, 2007.  Rent shall be approximately $13.40 per square foot per annum or $920.13 per month excluding Washington state leasehold tax.  Staff recommends approval.

ABP

7.

*First Amendment to Lease Agreement for Building 1423, Bay C – Sean and Jayne McLaughlin d/b/a Waterglider – Lessee has requested an additional six-month term of the agreement from August 1, 2007 to January 31, 2008.  The rent for 1,590 square feet shall be $5.32 per square foot or $4,229.40 for the six-month period excluding Washington state leasehold tax.  Staff recommends approval.

ABP

8.

*Lease Agreement – Blue Wings, LLC – Mr. Craig Clifford and his son have requested a lease for approximately 11,000 square feet of unimproved land to construct an aircraft storage hanger at Felts Field.  The term of the agreement shall be twenty-five years commencing upon beneficial occupancy with the option to renew for one 25-year period.  The initial rental rate shall be $0.18 per square foot per annum or $1,980 per year plus Washington state leasehold tax.  Staff recommends approval.

FF

9.

*Lease Agreement – Gary Ely – Mr. Ely has requested a lease for approximately 7,600 square feet of unimproved land to construct an aircraft storage hangar at Felts Field.  The term of the agreement shall be twenty-five years commencing upon beneficial occupancy with the option to renew for one 25-year period.  The initial rental rate shall be $0.18 per square foot per annum or $1,368 per year plus Washington state leasehold tax.  Staff recommends approval.

FF

10.

*Amendments to Building Lease Agreements – Felts Field Aviation, Inc. – Felts Field Aviation has leased various buildings at Felts Field since 1985 in support of their fixed base operations.  The amendments adjust the rental rates of the agreements and the premises for some of the agreements effective May 1, 2006.  Staff recommends approval.

FF

11.

*First Amendment to Lease Agreement – Felts Field Hangar, LLC – In April 2007, Felts Field Hangar entered into a lease agreement for approximately 16,563 square feet of unimproved land to construct an aircraft hangar building.  The 7460-1 application has been approved by the FAA.  The term of the agreement is twenty-five years commencing July 17, 2007 with the option to renew for one 25-year period.  The initial rental rate shall be $0.18 per square foot per annum or $2,981.34 per year plus Washington state leasehold tax.  Staff recommends approval.

FF

12.

*Lease Agreement – Terry McGuire – Mr. McGuire has entered into a new lease under the new terms and rates.  His leasehold has also been amended to reflect Parcel A comprised of 5,650 square feet and Parcel B comprised of 744 square feet.  The term of the agreement shall be twenty-five years commencing upon beneficial occupancy with the option to renew for one 25-year period.  The initial rental rate shall be $0.18 per square foot per annum or $1,150.92 per year plus Washington state leasehold tax.  Staff recommends approval.

FF

13.

*First Amendment to Lease Agreement – Terry McGuire – Effective August 2007, Mr. McGuire entered into a new lease agreement to construct an aircraft hangar building. The 7460-1 application has been approved by the FAA.  The term of the agreement is twenty-five years commencing July 17, 2007 with the option to renew for one 25-year period.  The initial rental rate shall be $0.18 per square foot per annum or $1,150.92 per year plus Washington state leasehold tax.  Staff recommends approval.

FF

14.

*First Amendment to Lease Agreement – Sky Blues Brothers, LLC – In May 2007, Sky Blues Brothers entered into a lease agreement to construct an aircraft hangar building and the 7460-1 application has been approved by the FAA.  The term of the agreement is twenty-five years commencing July 17, 2007 with the option to renew for one 25-year period.  The initial rental rate for 15,400 square feet shall be $0.18 per square foot per annum or $2,772 per year plus Washington leasehold tax.  Staff recommends approval.

FF

15.

*Lease Agreement – Jeffery Alan Smith – Mr. Smith has requested a lease for approximately 7,700 square feet of unimproved land to construct an aircraft storage hangar.  The term of the agreement shall be twenty-five years commencing upon beneficial occupancy with the option to renew for one 25-year period.  The initial rental rate shall be $0.18 per square foot per annum or $1,386 per year plus Washington state leasehold tax.  Staff recommends approval.

FF

16.

*First Amendment to Lease Agreement – Christian Sturm – In May 2007, Mr. Sturm entered into a lease agreement to construct an aircraft hangar building and the 7460-1 application has been approved by the FAA.  The term of the agreement is twenty-five years commencing July 17, 2007 with the option to renew for one 25-year period.  The initial rental rate for 6,650 square feet shall be $0.18 per square foot per annum or $1,197 per year plus Washington state leasehold tax.  Staff recommends approval.

FF

17.

*First Amendment to Lease Agreement – Ziegler Lumber Company – In 2002, Ziegler Lumber Company leased approximately 10,755 square feet of unimproved land to construct an aircraft storage hangar at Felts Field.  The agreement allows for a rental adjustment every five years.  The rental rate for the five-year period commencing August 1, 2007 shall be $0.16 per square foot per annum or $1,720.80 annually.  Staff recommends approval.

FF

18.

*Resolution No. 07-07, In the Matter Confirming the Condemnation of Specified Leasehold Interests – In October 2006, the Board of Spokane County Commissioners and the City Council of Spokane adopted Joint Resolution 6-0830 authorizing Spokane Airports to acquire the unexpired leases and removal of specified buildings by eminent domain that obstruct the line of sight from the new air traffic control tower.  The Airport Board has duly exercised the power to acquire the unexpired leases and removal of the buildings as directed by the FAA.  Resolution No. 07-07 confirms that the action of the Airport Board is a public necessity.  Staff recommends approval.

SIA

Regular Agenda

19.

Resolution No. 05-07, In the Matter of Establishing a Development Policy for Non-Aeronautical Property – The airport has a parcel of land consisting of approximately 80 acres that has been designated for non-aeronautical development known as the Airport Tech Park Development and is zoned for light industrial.  It is necessary to establish a leasing policy for the undeveloped acreage.  Staff recommends approval.

SIA

20.

Land Lease Agreement – Worthy Enterprises, LLC – Staff has been negotiating with Mr. Worthy on a lease of airport property designated for non-aeronautical development so that he may develop the area with a variety of office buildings and commercial facilities.  The property will be developed in phases with the first phase consisting of approximately 18 acres.  The term of the agreement shall be for a period of fifty years commencing July 23, 2007.  The annual rental rate shall be $100,000 or six percent of the revenues, whichever is greater.  Staff recommends approval.

SIA

21.

Productive and Safe Working Environment Policy Update, No. 06-07 – In February 2006, the Airport Board adopted the Productive and Safe Working Environment Policy No. 03-06.  Upon review of the policy, staff and legal counsel recommend updating the policy prohibiting employees from possessing weapons or threatening use of weapons while on duty or on airport property except for commissioned law enforcement personnel.

SIA

22.

Award Contract, Construction Services for 2007 Miscellaneous Pavement Projects Inland Asphalt Company – Bid documents for this project were prepared, the project legally advertised and a pre-bid meeting was held on July 31, 2007.  Two bids were received on August 7, 2007.  Staff recommends acceptance of the lowest bid and award to the low bidder, Inland Asphalt Company of Spokane in the amount of $503,795.41.  Staff further requests authorization of expenditures of up to $50,000 of the total cost for construction contingency and miscellaneous expenses incurred for this project work.

SIA

23.

Award Contract, Construction Services for Geiger Subsurface Facility Removal and Fence Project – NRC Environmental Services – This project involves the removal of underground storage tanks and other petroleum related facilities, cleanup of contaminated soil, decommission of water supply wells and perimeter fence installation.  Bid documents were prepared, the project legally advertised and a pre-bid meeting was held on July 24, 2007.  Two bids were received on August 3, 2007.  Staff recommends acceptance of the lowest bid and award to the low bidder, NRC Environmental Services of Spokane in the amount of $208,450.43, which includes Washington state sales tax and alternate A1 option.  Staff further requests authorization of expenditures of up to $20,000 of the total cost for construction contingency and miscellaneous expenses.

SIA

24.

Award Contract, Construction Services for Concourse A & B Carpet and Lighting Project – Halme Builders, Inc. – Bid documents for this project were prepared, the project legally advertised and a pre-bid meeting was held on July 24, 2007.  Three bids were received on August 3, 2007.  Staff recommends acceptance of the lowest bid and award to the low bidder, Halme Builders, Inc. of Davenport, Washington, in the amount of $160,728.  Staff further requests authorization of expenditures of up to $15,000 of the total cost for construction contingency and miscellaneous expenses incurred for this project work.

SIA

25.

Award Contract, Design and Construction Management Services for Terminal Ramp Construction Project – Reynolds, Smith and Hills, Inc. (RS&H) – This project involves the design and construction management services for ramp renovation around A & B terminal concourses.  The existing ramp will also be expanded to accommodate return overnight parking at the existing C Concourse.  Statements of qualifications from architectural firms were received and evaluated.  Staff recommends award of a contract for design and construction management services to RS&H, pending FAA approval, in the amount of $976,507.  Staff further requests authorization of expenditures of up to $43,900 for advertising, printing and other miscellaneous expenses incurred for this project.

SIA

Staff Reports

·         Development Standards

·         Airport Director’s Report

The Airport Board may take action on other routine business issues as they may arise while the Board is in session.

Executive session to follow for discussion of litigation, personnel and real estate.

Note:  The consent agenda (*) may be considered in a single action.  Any Board member or anyone in the gallery may ask for the separation of any item from the consent agenda for individual consideration.  Please notify the Board Clerk if you wish to make such a request.

The next scheduled Board meeting will be September 19, 2007 at Felts Field Airport Maintenance Building.