Repository: UIHistories Project: Board of Trustees Minutes - 1982 [PAGE 161]

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BOARD OF TRUSTEES

[January 15

earned on payments received, should provide approximately $86,250 by February 28, 1993, a sum which, in relation to the $125,000 requirement under the Revenue Bond, is commensurate with Ozark's share of the space in the building. These "reserve account" payments, together with the rental payments, would be applied in accordance with the revenue bond covenants. In return for this additional payment, the University would agree to extend the space rental agreement from February 28, 1994, to February 29, 1996. During this period Ozark would pay a bare rent, exclusive of charges for service, to be determined at that time based on the bare rent then being charged others for like space. The amendment would also provide that in the event Ozark should cease operations at Willard Airport, Ozark may elect to continue making the space rental payments and the "reserve account" payments in the amounts and at the times specified in the agreement as amended or may prepay the same. The chancellor at the Urbana-Champaign campus and the executive vice president have recommended that the present agreement be amended as described. I concur.

On motion of Dr. Donoghue, this recommendation was approved. Agreement for Services with Ozark Air Lines, Willard Airport

(10) The present agreement with Ozark Air Lines for services provided by the University at the Willard Airport Administration Building, including operation and maintenance service, expired June 30, 1980. However, with authorization from the Board of Trustees, it has been extended through January 1981 with the understanding that the rates in the new agreement, when determined, would be retroactive to July 1, 1980. Negotiations for a new agreement have been completed. The new one-year agreement provides that beginning July 1, 1980, Ozark will pay $37,681 annually for operation and maintenance service a n d : $100 per year for the use of 100 square feet for storage space in a " T " hangar, $180 per year for use of Musak music systems, $450 per year for secure storage in the basement of the airport administration building, and a sum equivalent to 28(t per 1,000 lbs. gross landing weight per Ozark aircraft landed at Willard. In addition, Ozark would agree to pay the University its pro rata share of necessary facilities maintenance costs relating to the airport administration building and would agree to maintain a balance in a Facilities Maintenance Fund of $10,828, provided that any unencumbered balance remaining at termination of occupancy of the premises by Ozark will be refunded to Ozark. The fund will be used to meet the costs of facilities maintenance work. The net effect of the new agreement, therefore, is to increase the amount for operation and maintenance services by approximately $7,580 and the landing fee by 3(f per 1,000 lbs. gross landing weight. The agreement would also provide for an appropriate reduction in Ozark's payment for operation and maintenance services in the event that space presently designated as common area is granted to others. The chancellor at the Urbana-Champaign campus and the executive vice president recommend that the comptroller and the secretary be authorized to execute an agreement as described above. I concur. O n m o t i o n of D r . D o n o g h u e , this r e c o m m e n d a t i o n w a s a p p r o v e d .

Agreement to Train Aircraft Maintenance Personnel, Urbana

(11) Saudi Arabian Airlines, an agency of the government of Saudi Arabia, has requested the Institute of Aviation at the Urbana-Champaign campus to train forty-