2.

*Approval of Vouchers

Construction Warrant Numbers 002557 – 002572 $ 190,476.35

Operational Warrant Numbers 099196 – 099498 $1,331,996.61

3.

*Seventh Amendment to Lease Agreement for Building 1378, Suite 118 – Wade Perrow Construction, LLC – Wade Perrow Construction has utilized Building 1378, Suite 118 containing approximately 400 square feet of office space since August 2003. The term of this agreement shall be month to month commencing February 1, 2007. Rent is approximately $14.40 per square foot per annum or $480 per month excluding Washington state leasehold tax. Staff recommends approval.

ABP

4.

*Signatory Airline Lease and Operating Agreement – United Airlines, Inc. – Due to bankruptcy proceedings United Airlines did not execute their agreement at the time other signatory airlines did in 2005. United Airlines has been paying the new rates and charges since January 2005 and has now provided an executed agreement to be finalized. The term is for five (5) years and shall expire on December 31, 2009. Staff recommends approval.

SIA

5.

*Air Cargo Building Lease Agreement – United Airlines, Inc. - Due to bankruptcy proceedings United Airlines did not execute their agreement at the time other signatory airlines did in 2005. The total rent for 3,840 square feet of exclusive space and 224 square feet of common use space within the air cargo building is $24,392. United Airlines has been paying the new rates since January 2005 and has now provided the executed agreement. Staff recommends approval.

SIA

6.

*Third Amendment to Lease and Operating Agreement – EDMO Distributors, Inc. – EDMO Distributors currently lease 80,100 square feet of land upon which they have two office/hangar facilities which they sublease to Western Avionics. The owner of EDMO has requested that their use of premises be amended in order that they may provide aircraft maintenance. An inspection of the premises verified that they were in compliance of the minimum standards. All other terms and conditions of the agreement remain the same. Staff recommends approval.

FF

7.

*Supplemental Lease #2 to Lease Number DTFANM-05-00019 – Federal Aviation Administration – The FAA has utilized 2,952 square feet for administrative offices in Building 11 at Felts Field Airport. The agreement allows for an annual rate increase for operating expenses. The rental rate shall be $10.82 per square foot per annum. The total annual rent shall be $34,340.64 which includes the lease of eight parking spaces at $2,400 per year. Staff recommends approval.

FF

8.

*Supplemental Lease #9 to Lease Number DTFA11-95-15242 – Federal Aviation Administration – The FAA has had their Flight Safety Standards Office in Building 14 at Felts Field Airport. According to the agreement, operating costs are being adjusted to $4.77 per square foot per annum effective February 1, 2007. The base rental rate will remain $10.55 per square foot per annum which, when combined with the operating costs per square foot and tenant improvements, generates an annual rent of $101,217.72. Staff recommends approval.

FF

9.

*Lease Agreement – Steve Vanbatavia – In September 2006, Mr. Vanbatavia entered into a lease agreement for approximately 7,000 square feet of unimproved land at Felts Field Airport to construct an aircraft hangar. He has requested a new lease based on the new terms and rates. The premises have been adjusted to 6,650 square feet. The initial rental rate shall be $0.18 per square foot per annum or $1,197 per annum plus Washington state leasehold tax. Staff recommends approval.

FF

Regular Agenda

10.

Land Lease Agreement – XN Air, LLC – In September 2006, the airport developed taxi lanes and ramp area on the south side of Pilot Drive to facilitate the development of general aviation activities. XN Air has requested a land lease in order to construct two aircraft hangars to support their FBO. The rental rate for the initial five-year period is $0.20 per square foot per annum or $28,699 annually, excluding Washington state leasehold tax, for 143,495 square feet of unimproved land. Staff recommends approval.

SIA

11.

Land Lease Agreement – XN Air, LLC - At the December 20, 2006 meeting, the Airport Board selected XN Air’s proposal to develop, manage and operate a commercial aeronautical service on the east side of the airport north of Pilot Drive. This lease will allow XN Air to begin construction of its proposed terminal facility and to expand its fixed base operation. Effective April 1, 2007, XN Air shall pay the sum of $0.21 per square foot per annum for 91,313 square feet of unimproved land and $0.12 per square foot per annum for 97,293 square feet of adjacent ramp. The annual rent shall be $30,850.89 excluding Washington state leasehold tax. Staff recommends approval.

SIA

12.

Award Contract for Construction, Oil/Water Separator Project – Safco, Inc. – The airport’s industrial stormwater permit requires construction of certain capital improvements. In April 2002, CTE Engineers prepared a report indicating the necessity of installation of oil/water separators through the parking facilities. The design of the project was completed in January 2007, the project legally advertised and four bids were received on February 28, 2007. Staff recommends approval of the lowest responsive bid from Safco, Inc. from Hayden, Idaho, in the amount of $195,208.50. Staff further requests an additional ten percent of the total bid amount for owner’s contingency.

SIA

13.

Award Bid, 2007 Grounds Maintenance Program – Four Seasons Landscaping, Inc. Three bids for the 2007 grounds maintenance program were received on March 2, 2007 and one was deemed nonresponsive. Staff recommends approval of the lower responsive bid from Four Seasons Landscaping in the amount of $124,140.66.

SIA, ABP

14.

Resolution No. 03-07, Adoption of Affirmative Action Plans – The airport updated their affirmative action plans in accordance with Executive Order 11246 as amended and its implementing regulations (41 CFR 60 – 1, 2 and 3). The goal of these plans is to ensure that all qualified persons enjoy equality in employment. Three plans were updated for minorities and women, people with disabilities, and veterans. Staff recommends adoption of Resolution No. 03-07.

SIA, FF, ABP

15.

Airport Police Association Collective Bargaining Agreement – The previous collective bargaining agreement with the Airport Police Association expired on December 31, 2006. A tentative agreement with the bargaining team was reached and the Association voted to accept the current negotiated contract. The Personnel Committee and staff recommend approval of the collective bargaining agreement for the period from January 1, 2007 through December 31, 2009.

SIA

16.

Airport Director Salary Adjustment – In December 2005, Neal Sealock was hired as the airport director and there has been no salary adjustment since then. Based on the review of comparables, the Personnel Committee recommends an increase.

SIA

Staff Reports

• Projects Update
• 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 April 18, 2007 at Felts Field Airport.