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Page 1: 2005_annual_report

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n Table of Contents

Transmittal Letter . . . 1

Authority Board Profile . . . 2

2005 Overview . . . 3

Building A Wider Ride . . . 4

Moving Projects Along . . . 6

Financial Statements . . . FS1–FS30

Keeping it Safe . . . 8

Connecting to the Community . . . 10

Traffic Statistics . . . 12

Our People . . . 13

The Kansas Turnpike opened for traffic onOctober 25, 1956, after only 22 months of construction. The roadway was established as a toll facility to meet the need for a modernhighway without increasing the tax burden onKansas residents. The Kansas Legislatureauthorized the Turnpike Authority to sell bondsto private investors to pay for the tollway.

With the Turnpike completed in 1956 inadvance of the Federal Interstate System, theFederal Highway Administration designatedsections of the Turnpike as part of that systemin 1957. By doing so, the federal governmentavoided the cost of building parallel roadways.

The Authority does not now, nor has it ever,received state or federal tax dollars for its construction and ongoing operational expenses. Unlike other Kansas highways,motorists only pay for the cost of Turnpikeoperations when they use it.

Our Mission is…to provide safe, high-quality highwaytransportation servicesto our customers for the lowest reasonable cost.

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n Transmittal Letter

Dear Governor Sebelius:

On behalf of the Kansas Turnpike Authority Board and Turnpike staff, it ismy pleasure to present the 2005 KTA Annual Report, detailing our high-lights and financial performance from that year.

Efforts to widen the roadway between Topeka and Lecomptonwere well underway in 2005. KTA engineering and maintenancestaffs worked with contractors to ensure the project remainedon schedule. In fact, at year-end we were 46 percent completewith 42 percent of project days elapsed. The project is scheduled to be completed in spring 2007.

During the year, the implementation of an improved TravelAdvisory Radio communications system was completed.Customers now are alerted to adverse weather conditionsand/or emergency roadway situations through a fully opera-

tional Travel Advisory Radio. The KTA’s goal is to provide this information inas close to real time as possible. Twenty-two signs with lights on top areinstalled along the roadway to inform customers to tune to 1610 AM onthe radio when the lights are flashing.

In the important area of customer safety, I am pleased to report that in2005, Troop G of the Kansas Highway Patrol provided 19,479 services ren-dered, and continued to pursue those involved in criminal activity on theTurnpike. There was an increase of arrests in critical areas, which included seizures of drugs, cash and property. Patrol personnel participatedin a Safety Belt demonstration during the Memorial Day holiday weekendat the Topeka Service Area. This demonstration taught travelers the importance of wearing their safety belts and how to properly install childsafety seats. There was also an increase in the number of safety belt, childrestraint, and driving under the influence arrests in 2005.

As we come to the end of the Turnpike’s 49th year serving travelers inKansas, we look forward to moving people and goods through this greatstate safely and at the lowest possible reasonable cost for years to come.

We thank you for your personal interest and continued support.

Sincerely,

Mary E. TurkingtonChairman

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Leading the Way

he Authority consists of a five-mem-ber board of directors. The Governor of Kansasappoints two members, each serving four-yearterms. Two members serve by reason of theirlegislative positions: one is the chairman of theKansas Senate Transportation Committee andone is a member of the House TransportationCommittee, appointed by the Speaker of theHouse. The fifth member is the Secretary of theKansas Department of Transportation. Together,the board elects one of their members chairman.

n Board Members

MARY E. TURKINGTON, chairman,was appointed as a member of theAuthority on May 1, 1997, and wasappointed to serve a third four-yearterm on the Authority Board

through April 2009. Ms. Turkington retired asexecutive director of the Kansas Motor CarriersAssociation. She represented the highwaytransportation industry before the KansasLegislature and worked with state and federalagencies on transportation issues during hertenure with KMCA. She serves on many civicand business boards and is active in variousother organizations in the highway safety field.

REP. GARY K. HAYZLETT serves asvice chairman of the Authority. He has been a member since 1997and is chairman of the HouseTransportation Committee. He has

served in the Kansas Legislature since 1990 invarious leadership capacities and on manycommittees. Rep. Hayzlett is a businessmanand has financial interests in Lakin, KS.

SEN. LES DONOVAN, theAuthority’s secretary-treasurer, wasappointed to the board in January2001. He is the chairman of theSenate Transportation Committee.

Sen. Donovan has been a member of theKansas Senate since 1997, and was previouslya member of the Kansas House ofRepresentatives. He is regional vice presidentof the Kansas Auto Dealers Association and amember of the Wichita Chamber ofCommerce. He also is a Wichita businessman.

DEB MILLER was appointedSecretary of the KansasDepartment of Transportation andbecame a member of the Authorityin January 2003. She will serve as a

member of the Authority for the duration ofher term as KDOT Secretary. Miller has morethan 18 years experience in the field of trans-portation, most recently having served for fouryears as chief planner for HNTB, a national firmof architects, engineers and planners.

PAUL DUGAN, SR., was appointeda member of the Authority in May2004. He is an attorney whoreceived his law degree fromWashburn School of Law, Topeka,

KS, and has practiced in Wichita since 1964.He served as General Counsel to the Authorityfrom 1993 to 1996. He served in the KansasHouse of Representatives from 1969 to 1973and as Lieutenant Governor from 1979 to1983.

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n 2005 OverviewMichael L. JohnstonPresident/CEO

In 2005, the project to widen the Turnpike tothree lanes in each direction between the EastTopeka and Lecompton Interchanges continuedto make progress. The ambitious project, award-ed in 2004 to Perry, Kansas, company, Hamm,Inc., is intended to add additional capacity in thesection of the Turnpike with the heaviest trafficvolumes to avoid future traffic congestion. Thisproject is tangible evidence of the TurnpikeAuthority’s long-standing commitment to thehighest level of customer service and safety.

The replacement of the current Emporia Inter-change is another example of our commitmentto invest in new facilities where needed. The current interchange is operating above capacityduring peak periods and the project to replace itwill begin in the fall of 2006. The scope of thisproject will also include needed improvements tomore efficiently connect the Turnpike to US-50,I-35, and the City of Emporia. Both KDOT andthe City of Emporia will financially participate inthe project to the extent that improvementsinvolve their respective jurisdictions. This newinterchange, together with other improvements,will substantially improve customer service. The project should be complete in 2008.

During the past year, the Turnpike was alsopleased to honor our state’s military personnelwith the installation of signs commemoratingthe Purple Heart Trail as designated by theGovernor. Three service areas—Belle Plaine,Emporia and Topeka—feature these signs that identify the Trail’s progress through Kansas.

An assignment for an El Dorado high schoolgeography class grew into a special project at theMatfield Green Service Area on the Turnpike.The class discovered that the 38th Parallel line—brought to the world’s attention at the conclu-sion of the Korean Conflict—crosses Kansas nearMatfield Green. With the help of the students, a sign memorializing the 38th Parallel and itsconnection to Kansans who served in theKorean Conflict was installed.

MICHAEL L. JOHNSTONhas been the President/CEO ofthe Kansas Turnpike Authoritysince January 1, 1995. Prior tojoining the Turnpike, he was acabinet officer in GovernorJoan Finney’s administration,

serving briefly as Secretary of the Departmentof Human Resources and later as Secretary ofthe Department of Transportation. He is also aformer state senator and served 14 years in theKansas Legislature, the last six as the SenateDemocratic leader. His background includesserving as a member and chairman of theKansas Public Employees Retirement System.

Originally from Parsons, KS, Johnston foundedand served as president of the MidwestMortgage Corp., a mortgage brokerage firmthat he operated in Parsons until leaving theSenate to join Governor Finney’s administration.Johnston has served on numerous boards at thelocal, state and national levels. He currentlyserves on the board of Economic Lifelines, is adirector of the Prairie State Bank and a memberof the Wichita Diocesan Catholic School Council.

We continue to see the positive influence K-TAGhas on the Turnpike’s business and the level ofservice we offer to our customers. The yearended with 82,075 customer accounts and183,483 transponder devices (tags) in service.The electronic toll collection program (K-TAG)now handles over one-third of our customertransactions.

Finally, the Turnpike looks forward to 2006 whenwe will celebrate our golden or 50th anniversary.The Turnpike opened for business on October25, 1956. As we move forward to an importantmilestone in our business, we are reminded thatthe nature of the transportation business is thatour work is never complete and that good customer service is a journey, not a destination.

The following report details some of the infor-mation discussed here and is a synopsis of theyear’s activities and an outline of future plans.

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ork began on the widen-ing project between Topeka and Lecomptonpromptly after the dawn of the New Year.Completed in 2005 were several important elements of the project, including rock ledgeblasting, overhead bridge construction, utilityrelocation, underground drainage pipe installation andasphalt work.

By the end of 2005, work was nearly half complete but required only 42 percent of theoriginal estimate of time necessary to completethe project. The next half of the construction isscheduled to take the majority of the project’stime as traffic is shifted to accommodate theadditional lane work. By early 2006, traffic onthe east end of the project, between mileposts189 and 195, was shifted to the outer two lanesso work could begin on the inside lanes andmedian area.

The Turnpike Authority Board approved thewidening project at the end of 2002. Based onpast traffic figures and projected increases, theAuthority felt it necessary to widen the roadway

Building a Wider Ride

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BLASTING

between Topeka and Lawrence in order tomaintain the level of service normally expectedby Turnpike customers.

To better communicate with customers, the KTA erected billboards in the construction zone directing customers to the Turnpike’sWider Ride web site. This web site, found atwww.widerride.com, contains photos, illustrations, statistics and even a humorous element of “construction terminology.”

BRIDGING

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BORING

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www.widerride.com

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urnpike bridges are routinelyinspected by KTA consulting engineers HNTBCorp. In 2005, HNTB inspectors found thatmany of the original Turnpike bridges were displaying problems common to structures oftheir age. The Turnpike continues its BridgeDeck Replacement Program to ensure safestructures by repairing or reconstructing thosebridges with the greatest need.

Completed in 2005 were three asphalt overlayprojects totaling 48 miles of roadway. Rampsleading to the Emporia and Lawrence ServiceAreas were also resurfaced during the summerof 2005.

In 2006, KTA engineering staff will be workingwith Sedgwick County and City of Wichita engineers to further improve the 143rd StreetBridge at milepost 53. Other projects requiringpartnerships and communication include theTurnpike bridge crossing Greenwich Road inWichita and Plaza 042 in South Wichita wherethe Turnpike meets I-135 and 47th Street South.

n Emporia Interchange

In 2005, plans moved ahead for replacementof the Emporia Interchange. Traffic at the interchange has grown to the point where itfrequently operates beyond its design capacity.In addition, the interchange replacement project will include making changes to improveconnections to I-35, K-50, and the City ofEmporia itself. KDOT and the City of Emporiaare helping fund the total project cost for work

Moving Projects Along

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on their respective systems. The new Turnpikeinterchange will add two additional lanes tothe number currently available. Work is sched-uled to begin in the fall of 2006 and should becomplete in 2008.

n Proposed Interchange

At the request of the Leavenworth CountyCommission, the Turnpike engaged VollmerAssociates LLP to conduct a traffic study todetermine whether a new Turnpike Interchangewould be financially feasible at MP 212 inLeavenworth County. The study was completedin the fall of 2005 and showed that an inter-change at that location would serve enoughnew customers to justify the investment. Theproposed interchange would serve the south-ern Leavenworth County area near the City ofTongonoxie.

n Travel Advisory Radio

In 2004, 22 signs with lights on top wereinstalled along the roadway to alert customersof an “Urgent Message When Flashing” on theTurnpike’s Travel Advisory Radio at 1610 AM.This was the first in a multi-step process tokeep customers informed of weather, traffic,safety and other important roadway information. The improved system allows messages to bebroadcast through any or all ofthe nine towers, and roadway flashing lights to be turned on at the click of a computermouse. Kansas Highway Patroldispatchers from the TurnpikeHeadquarters in Wichita operatethe new TAR system.

n K-TAG

K-TAG customer service representatives tookpart in an extensive tag replacement programin 2005 to proactively contact customerswhose tag batteries were low. Most of the tagsin use electronically alert the KTA when their batter-ies begin to fail. Although the customer may not notice a problem with thetag, service representatives attempt to switchout the tags prior to tag failure.

Registration of online account information continued to increase in 2005. New features to the K-TAG online statements included theability to attach PDF versions of the statementdirectly to the customer’s e-mail as well as theoption to change credit cards online. At theend of the year, 39 percent of transactions representing 35 percent of revenue were collected electronically through the K-TAG program.

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Dispatchers use sophisticated softwareto monitor weather and traffic to broad-cast advisories across the TAR system.

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ansas Highway Patrol personnel assigned to Troop G, the dedicatedTurnpike troop, drove1.7 million miles for routine patrolling in providing exceptional customer service. TheTurnpike awarded twoExceptional CustomerService Awards to KHPpersonnel.

Also in 2005, Troop G troopers seized largequantities of illegal substances, cash and property valued at more than $7.5 million.They were once again vigilant to removeimpaired drivers from the roadway, andincreased Driving Under the Influence (DUI)arrests. Many of these impaired drivers areidentified by Turnpike customers who reportthe suspicious drivers directly to PatrolDispatch. In addition, Toll Collection employ-ees at our 22 toll plazas regularly report suspicious drivers.

Keeping it Safe

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n K-9 Dog Patrol

In April, the Kansas Turnpike made a contribution to the Sumner County K-9Program Fund. The Sumner County Sheriff’sOffice is raising money to secure a new patroldog when their current K-9 dog Brando retires.

“Sumner County has been a big assistance to Troop G when we ask them to use Brandoto help with traffic stops when drug transporta-tion is suspected,” explained Troop GCommander Captain John Walters. “This dona-tion will help to ensure a canine is available tohelp all law enforcement officers in SumnerCounty, including the Turnpike.”

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Troopers seizeda significantamount ofdrugs in 2005.

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New personnel assigned to the KTA’s Troop Greceive information about specific Turnpike regulations and customer service during orientation.

At the K-9 fund check presentation are: (left to right) Trooper Aaron Amrein, Lt. Joe Bott, Sumner Co.Sheriff Gerald Gilkey, Sumner County Deputy Chad Moore, Master TrooperDallas Gilmore and Master Trooper Dave Heim.

n Maintenance Safety

Turnpike Maintenance Department work areaswere inspected for safety by the KansasDepartment of Labor for the sixth year in a row.Since 2000, these work areas have seen as muchas a 100 percent reduction in specific hazards.The total number of hazards has decreased 80.8percent between 2000 and 2005.

n Employee Safety

While creating and maintaining a safe roadwayis a main priority for the KTA, Turnpike person-nel also focused on how its own employeescould assist in creating a safer work environmentin 2005. Programs that supported this initiativewere defensive driving, CPR and First Aid train-ing, and the creation of a Safety Committee

for toll departmentemployees. The SafetyCommittee providedanother avenue of communication toaddress any concernscollectors may have inhandling traffic and daily tasks in a safe environment.

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Employees take CPRand first aid training.

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he majority of the construction onthe Turnpike was completed 50 years ago, in1956. Turnpike officials plan to observe the50th anniversary of the roadway’s opening onOctober 25, 2006. For the past 50 years, it has been the goal of the Turnpike not only toprovide safe, high-quality transportation services, but also to be a good neighbor tocommunities the Turnpike directly serves. In2005, KTA maintenance crews assisted withcleanup after ice storms severely affected communities along the roadway.

In this respect, the KTA continues its charitablecontributions to local non-profit organizationsand was proud to donate to national hurricanerelief efforts. We extend our consolations toour sister toll agencies in the Gulf Coast region whose employees experienced bothprofessional and personal losses.

n Safety Demonstrations

A safety belt rollover demonstration was heldat the Topeka Service Area in May. The demon-stration kicked off the start of the MemorialDay Holiday weekend. Travelers could view theKansas Highway Patrol rollover machine, whichgraphically depicts what could happen to a person during a rollover accident with and with-out the use of safety belts. Customers taking abreak on their trip received free beverages,food, maps, and safety brochures.

KTA Safety Coordinator Steve Rust again provid-ed defensive driving courses for the Wichita areathrough a partnership with Via Christi Hospitals.

Connecting tothe Community

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Jeff Halloran from the Kansas Safety BeltEducation Office talks with a driver about theproper usage of child safety seats and distributesfree kids’ games and books.

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Robert Donovan presentsBarb Sigley with the“Outstanding CustomerService” cash award andplaque.

The 38th Parallel

Ray Rhodd, Commander of Kansas Chapter 684Military Order of the Purple Heart speaks duringa ceremony at the Belle Plaine Service Area.

n Historical Markers

Kansas Governor Kathleen Sebelius proclaimed the Eisenhower Interstate Highway System in Kansas as the “Purple Heart Trail,” which is part of the national Purple Heart Trail. Signs were installed at three serviceareas to commemorate the Purple Heart Trail through Kansas. The Purple Heart Trail signswere dedicated to three area military person-nel who had lost their lives in the line of duty:SGT. Jamie Maugans, 1LT Michael L. Gandy,and SGT. Kenneth G. Bradstreet.

A sign was also installed near the MatfieldGreen Service Area to acknowledge the prox-imity of the 38th Parallel line. The 38th Parallelline was brought to worldwide attention at theconclusion of the Korean Conflict. The idea ofa sign showing where the 38th Parallel crossesin Kansas began as a project for an El Doradogeography class so they could show the relationship of the 38th Parallel to the manyKansans who took part in that Conflict. Inshort, the 38th Parallel is a constant reminderof the sacrifice of many Kansans.

n Outstanding Service

Barb Sigley, Plaza 50 toll collector and trainer,received the Donovan Drive OutstandingCustomer Service Award during the first quar-ter of 2005. Robert Donovan, vice presidentand general manager of Wichita’s DonovanAuto and Truck Center, presented Barb with aplaque and a check for $500 during a surprisereception in April. The award is presentedquarterly by the company to someone in theWichita area who demonstrates outstandingcustomer service in the performance of the job.

“Barb Sigley was nominated by one of her cus-tomers who said that she greets her customerswith ‘good morning,’ a big smile and ‘have agreat day,’” Robert Donovan commented.“She has a personality that is so perky, it iscontagious.”

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Michael Johnston, KTAPresident/CEO, participates in the installation of signs recognizing the Turnpike location of the 38th Parallelnear the Matfield Green Service Area.

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Tracking the Traffic

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ALL TRAFFIC K-TAG TRAFFIC

2005 2004 2005 2004

Vehicles 32,200,485 32,319,851 12,250,191 38.04% 11,714,186 36.24%Passenger 27,891,984 28,116,123 10,380,442 37.22% 9,962,518 35.43%Commercial 4,308,501 4,203,728 1,869,749 43.40% 1,751,668 41.67%

Miles Traveled 1,386,949,597 1,401,176,257 426,465,466 30.75% 405,409,403 28.93%Passenger 1,122,740,267 1,141,674,642 319,716,393 28.48% 304,010,195 26.63%Commercial 264,209,330 259,501,615 106,749,073 40.40% 101,399,208 39.07%

Toll Revenue 74,432,480 72,370,799 26,216,737 35.22% 24,315,152 33.60%Passenger 44,795,678 43,991,067 13,063,351 29.16% 12,035,382 27.36%Commercial 29,636,802 28,379,732 13,153,386 44.38% 12,279,770 43.27%

Average Toll $2.31 $2.24 $2.14 $2.08 Passenger $1.61 $1.56 $1.26 $1.21 Commercial $6.88 $6.75 $7.03 $7.01

Ave. Trip Miles 43 43 35 35Passenger 40 41 31 31Commercial 61 62 57 58

13,530 13,750 13,354 13,57214,253 14,544 14,020 14,29513,983 14,132 13,809 13,84017,199 17,204 17,310 17,3575,086 5,268 5,162 5,3866,431 6,465 6,552 6,6203,357 3,422 3,426 3,4943,202 3,256 3,242 3,3106,451 6,219 6,590 6,3796,536 6,314 6,648 6,4466,530 6,296 6,724 6,4926,462 6,172 6,661 6,3756,695 6,364 6,763 6,4387,160 6,751 7,218 6,7687,740 7,386 7,848 7,4566,386 6,246 6,478 6,312

11,507 11,348 11,507 11,28310,044 9,938 10,204 10,1089,206 8,960 9,292 9,0687,526 7,187 7,593 7,296

2005 2004

South North South NorthMP Interchange Bound Bound Bound Bound236 Eastern Terminal204 Lawrence: US 59, US 40202 Lawrence: US 59, S. Iowa St.197 Lecompton, Lawrence: K-10183 Topeka: I-70182 Topeka/Valley Falls: K-4/I-70W177 Topeka: I-470W, US 75, Topeka Blvd.147 Council Grove, Osage City: US 56127 Emporia: I-3592 Cassoday: K-17776 El Dorado: US 7771 El Dorado: US 25457 Andover: 21st St53 Wichita: K-9650 Wichita: US 54/400, Kellogg Ave45 Wichita: K-1542 Wichita: I-135, I-235, 47th St39 Haysville-Derby: 71st St33 Mulvane: K-5319 Wellington: US 1604 Southern Termimal

AVERAGE NUMBER OF VEHICLES TRAVELINGBETWEEN PLAZAS DAILY

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The Kansas Turnpike Authority provides full-time employment to 435Kansans who administer and operate the Turnpike. Employees work atheadquarters buildings in Wichita and Topeka, as well as at 21 toll inter-changes and nine maintenance facilities. In addition, the Authority paysthe Kansas Highway Patrol for the costs of patrolling the Turnpike.

n Executive Staff

Alan D. Bakaitis, Toll Operations DirectorEric Becker, Maintenance Director**Lisa C. Callahan, Public/Employee Relations DirectorJudy L. Eskridge, Executive AssistantJon Glaser, Chief Financial Officer & Asst. Sec.-Treas.David Jacobson, P.E., Chief Engineer**Captain John Walters, Commander Troop GMarty R. Wiltse, Chief Information OfficerTom Wurdeman, P.E., Chief Engineer**retired December 22, 2005

**assumed position December 22, 2005

n General Counsel

Gates, Biles, Shields & Ryan PADan Biles

n Consulting Engineers

HNTB CorporationScott N. Smith, P.E., Senior Vice President

n Traffic Engineers

Vollmer Associates LLPGerald V. Nielsten, P.E., Partner

n Trustee

Security Bank of Kansas CityRaymond J. Hintz, Vice President & Trust Officer

n Co-Trustee

BNY Trust of MissouriCheryl Rain, Assistant Vice President

Kansas Turnpike Authority9401 E. Kellogg DriveWichita, KS 67207-1804Website: http://ksturnpike.comEmail: [email protected]

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9401 E. Kellogg DriveWichita, KS 67207-1804

Website: http://ksturnpike.comEmail: [email protected]