1 2 3 KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 4 Regular Meeting 5 Monday, March 16, 2015 6 8:30 a.m. 7 Airport Terminal Conference Room 8 1877 Airport Loop Road 9 Kerrville, Texas 10 11 MEMBERS PRESENT: MEMBERS ABSENT: 12 Stephen King, President Corey Walters, Vice-President 13 Ed Livermore Bill Wood 14 Kirk Griffin 15 AIRPORT BOARD STAFF PRESENT: 16 Bruce McKenzie, Airport Manager Carole Dungan, Executive Assistant 17 18 COUNTY STAFF PRESENT: Tom Moser, Commissioner Pct. 2 19 James Robles, Assistant Auditor 20 CITY STAFF PRESENT: 21 Todd Parton, City Manager Jack Pratt, Mayor 22 Sandra Yarbrough, Finance Director Mike Hayes, City Attorney 23 24 VISITORS: Tom Bowen, Mooney International Jonas Titas, KEDC 25 Joey Kennedy, Kerrville Aviation Patrick O'Fiel Ilse Bailey, Airport attorney Fred Vogt 2 1 I N D E X March 16, 2015 2 PAGE 3 CALLED TO ORDER 4 1. VISITORS FORUM 3 5 2. KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 6 MEMBER FORUM 7 7 3. CONSENT AGENDA 3A Approval of Feb. 16th Board Meeting Minutes 9 8 4. DISCUSSION AND POSSIBLE ACTION 9 4A Monthly Financials 9 10 4B Future use of Mooney Buildings 17, 18 & 19 11 11 4C Mooney roof construction agreement (Executive Session as needed) 18 12 4D Airport Planning Committee summary 52 13 4E Advertising policy and advertising request 14 (Executive Session as needed) 67 15 4F Airport minimum standards (Executive Session as needed) 68 16 4G Airport Board member terms (Steve King and 17 Ed Livermore) 70 18 4H Recommendation for Airport Board Attorney (Executive Session as needed) 72 19 5. INFORMATION AND DISCUSSION: 20 5A General Update 75 21 6. EXECUTIVE SESSION 77 22 7. ADJOURNMENT 78 23 24 25 3 1 On Monday, March 16, 2015, at 8:30 a.m., a regular 2 meeting of the Kerrville-Kerr County Joint Airport Board was 3 held in the Airport Terminal Conference Room, Louis Schreiner 4 Field, Kerrville, Texas, and the following proceedings were 5 had in open session: 6 P R O C E E D I N G S 7 MR. KING: I'll call this meeting to order of the 8 Kerrville-Kerr County Airport Board, March 16th, 2015. Call 9 to order. Item 1, visitors forum. At this time, any 10 business -- any person with business not scheduled on the 11 agenda may speak to the Airport Board. No deliberation or 12 action can be taken on these items because the Open Meetings 13 Act requires it to be posted for 72 hours. Visitors are 14 asked to limit their presentations to three minutes. 15 Anybody? 16 MAYOR PRATT: Yes. 17 MR. KING: The mayor. Yes, sir? 18 MAYOR PRATT: Good morning, Airport Board members. 19 On February 26th, I received a notice of the Airport Planning 20 Committee meeting set for March the 11th. The Airport 21 Manager was immediately notified that I would be -- would be 22 on city business in Washington, D.C. on that date, and 23 therefore not available for the meeting, and I asked for the 24 meeting to be rescheduled. I was informed that Commissioner 25 Moser did not want to reschedule, and had a sense of urgency. 4 1 Therefore, the meeting was purposefully held, denying the 2 citizens of Kerrville representation at the planning meeting. 3 I even asked for the purpose of the meeting, and was told 4 because Commissioner Moser just wanted to have the meeting, 5 and with one agenda item presented. That agenda item was 6 airport development and capital improvements, but didn't have 7 any details. The City also has another representative on 8 that committee, and that's Councilman Conklin on the planning 9 committee, and even he wasn't even given the courtesy of a 10 meeting notice. 11 I don't just feel uneasy about the situation and 12 the way it was handled; I'm downright very disappointed and 13 upset. So, again, the citizens of Kerrville were denied 14 representation at the meeting. I don't quite understand how 15 the Airport Board -- and the planning committee is part of 16 that function -- how the Airport Board can treat either of 17 its owners in this manner. Meetings should be coordinated 18 for mutual agreement on dates and times. Therefore, they 19 won't appear as a kangaroo court that blatantly disregards 20 the rights of city or county citizens to be represented by 21 its appointed officials. Yes, there has been great progress 22 made here at Kerrville-Kerr County Airport, and the City, 23 County, and Airport Board work collaboratively together, and 24 hopefully that will continue. 25 It seems like someone may have gotten upset when a 5 1 meeting was held with -- or by Senator Cornyn's office or 2 staff, and that person was not invited. Let me make it very 3 clear to the Board that the meeting was called by Senator 4 Cornyn's office and staff, and not the City. They determined 5 the participants, not us. In the meeting with Senator 6 Cornyn's staff, there was never a mention of extending any 7 runway. And contrary to what you may have been told, the 8 County Judge represented the County at that meeting, so the 9 County did have representation. Now, as to the function of 10 the planning committee, nothing has changed. Nothing was 11 volleyed. All of you in your careers, as I, have probably 12 had ideas, suggestions, recommendations made to you, your 13 committee, your department, your division, or the company. 14 One of the very first questions asked is, "Where is the 15 backup data used in the particular situation presented?" 16 For example, I could have just gotten up here and 17 said, "I'm very disappointed by the way the meeting was 18 handled, especially with its timing and lack of notice to 19 Carson," and then sat down, and you would just accept that 20 statement, but then question me for data. The City of 21 Kerrville has and will continue to create ideas and be 22 innovative in its thinking process. That process includes 23 continuous strategic thinking, gathering data, observing that 24 data, scrutinizing the data, and evaluating that data. And 25 when we feel comfortable with the results, then and only then 6 1 would we bring the results to the planning committee and/or 2 the Airport Board with a recommendation. 3 The message I'm trying to deliver here is, don't 4 try to discourage any owner, whether it be the City or 5 County, from thinking outside the box with other entities or 6 individuals, regardless of who they might be. We owe it to 7 our citizens to continuously look for improved ways to 8 deliver services, improve the economy, and create revenues 9 for our taxpayers, and we will continue to do that. You see, 10 city of Kerrville citizens pay both city and county taxes, 11 and because of that, there are many instances of double 12 taxation on our citizens, so don't shortchange them. You 13 see, we haven't usurped the planning committee. We were just 14 exploring a vision and sharing that vision with an entity 15 that has the ability to suggest funding alternatives and 16 other possible suggestions. In other words, seeking data. 17 Now, as to a contract between the City, County, and Mooney, 18 the Airport Board's responsibility is to also protect the 19 owners from any potential liability, and that responsibility 20 has not been achieved. And since that is on the agenda, I'll 21 stop here. We'll cover it more on that particular item when 22 we reach that agenda item. Thank you for your time and your 23 service. 24 MR. KING: Thanks, Mayor. Anybody else have a -- 25 like to make a statement or -- 7 1 COMMISSIONER MOSER: I think it's on the agenda. 2 MR. KING: I think it will be. Item 2; 3 Kerrville-Kerr County Airport Board member forum. At this 4 time, any member of the Kerrville-Kerr County Airport Board 5 may speak to the Board or public present on any matter not 6 scheduled on the agenda. No deliberation or formal action 7 may be taken on these items because the Open Meetings Act 8 requires it to be placed on the agenda for 72 hours before. 9 If formal action is required, it will be placed on the agenda 10 for a future meeting. So, that -- I'll speak to that. So, 11 what the mayor was talking about, that's on the agenda, 12 Bruce; is that correct? 13 MR. McKENZIE: Yes, sir. 14 MR. KING: Okay. And we can -- 15 MS. BAILEY: 4D. 16 MR. KING: 4D; that's the planning meeting. Okay, 17 what about the meeting that you've scheduled for Thursday, 18 Jack? Is that on the agenda also? The one that you've 19 scheduled with the City and the County and Mooney to discuss 20 items that are pertinent to the Airport Board? Is that 21 meeting on the agenda? Have you called -- have you notified 22 all the rest of the -- 23 MAYOR PRATT: Bruce is the one that scheduled that 24 meeting. 25 MR. McKENZIE: No, sir. 8 1 MR. KING: I believe he has been asked to be on the 2 schedule, as I have been asked to be on the schedule. But 3 the meeting was called -- I'm just wondering about that 4 meeting. Is that meeting -- do we need to have a talk about 5 that? 6 COMMISSIONER MOSER: I think that meeting was 7 called by Mooney. 8 MAYOR PRATT: That was called by Mooney; that's not 9 called by us. 10 MR. KING: I'd just like to know why would that 11 meeting be called by Mooney? I don't know whether that's 12 about Airport Board matters. Why would that not be brought 13 to the Airport Board, instead of being held at a private 14 meeting that my members cannot attend? These are the kind of 15 meetings I really don't like. I don't like my members not 16 being able to discuss items that are discussed by the City 17 and the County and one of our renters here at the airport. 18 MAYOR PRATT: I have no idea of what you're talking 19 about, because, see, I was only notified of a meeting and 20 asked if I was available. 21 MR. KING: I got all the e-mails, Jack. 22 MAYOR PRATT: I understand that, and I was only 23 asked for -- we did not -- we did not initiate the meeting. 24 MR. KING: We'll discuss that at a later time. 25 Anyway, I'm just saying there's a little more going on in 9 1 this thing than you just standing up giving a speech. Okay, 2 the consent agenda, Item Number 3. All items listed below in 3 the consent agenda are considered routine by the Board and 4 will be enacted in one motion. There will be not be -- 5 MR. LIVERMORE: So moved. 6 MR. KING: Okay. All in favor -- second? 7 MR. WALTERS: I second. 8 MR. KING: All in favor? 9 (The motion carried by unanimous vote, 5-0.) 10 MR. LIVERMORE: I didn't mean to speak too soon. 11 MR. KING: 3A, approval of the minutes. 12 MR. LIVERMORE: That's what we just did. 13 MR. KING: That's what we just did? Sorry about 14 that. Item 4A, monthly financials. James, is there anything 15 on the financials that's different that we need to know about 16 on this thing? 17 (Mr. Robles shook his head negatively.) 18 MR. KING: Thank you, sir. Any member like to 19 discuss the financials? Have any questions for James about 20 them? 21 MR. GRIFFIN: Just while we're discussing 22 financials real quick, -- excuse me -- since we're going to 23 do it later on officially, but just so that -- I just want to 24 thank Jeannie for her years of service to us. And this -- 25 this is her last meeting -- excuse me -- and she's not here, 10 1 but -- 2 COMMISSIONER MOSER: He's choked up. 3 MR. GRIFFIN: All choked up. I still want to say 4 thank you. So, anyway, that's it. 5 MR. WOOD: I have a comment, just that I looked at. 6 Looking at the financials. 7 MR. KING: Financials? 8 MR. WOOD: Page 7, revenue over expenditures, we're 9 doing better this year by $35,000 than we did last year, 10 probably due to the new T-hangars, is the only big 11 difference, I think. 12 MR. LIVERMORE: Well, and Brinkman. 13 MR. McKENZIE: Brinkman Hangar. 14 MR. WOOD: To a lesser extent. 15 MR. GRIFFIN: Not as much. 16 MR. WOOD: Anyway, I just wanted to make that 17 comment, something positive. 18 MR. KING: That's good. All right. We need to 19 approve the financials. 20 MR. GRIFFIN: So, I make a motion to approve the 21 financials. 22 MR. KING: Second? 23 MR. WALTERS: I second. 24 MR. KING: By Mr. Walters. Discussion? None being 25 heard, all in favor? 11 1 (The motion carried by unanimous vote, 5-0.) 2 MR. KING: 5-0. Item 4B, Mr. Bowen with Mooney. 3 Hey, Tom, how are you doing? 4 MR. BOWEN: Hey, Steve. Well, Airport Board, I 5 appreciate the -- 6 MR. KING: Before you start, I'd like to thank you 7 very much for bringing this to the Board and bringing it -- 8 putting it on the agenda. I appreciate that. That's -- this 9 is the way we like to handle things that are -- you know, 10 when one of our clients out here at the airport has something 11 they'd like to discuss with the Airport Board, I think it's 12 good if it's brought to the Board and put on the agenda, 13 discussed by the Board, and then we can all be able to listen 14 to it. 15 MR. BOWEN: I appreciate the opportunity. I'm a 16 little embarrassed because I don't have a lot to say, because 17 there's been a lot going on. But we are actively in Building 18 19, I believe. Bruce, is that -- 19 MR. McKENZIE: Yes, sir. There's pictures in 20 your -- 21 MR. LIVERMORE: 19 is -- 22 MR. McKENZIE: That's the paint hangar. 23 MR. LIVERMORE: Oh, yeah. 24 MR. BOWEN: 18. 25 MR. McKENZIE: You're in the back half. 12 1 MR. BOWEN: So, we have a certification project now 2 active with the F.A.A. on a new, super-secret -- can't 3 divulge what it is, but it's going to involve some extensive 4 static testing and structural testing. So, we are actively 5 in the building right now. We're going to redo the doors, 6 because the big -- the big sliding door's no longer really 7 functional, so we're going to go ahead and weld those doors 8 shut. 9 MR. KING: Are you talking about 18? 10 MR. LIVERMORE: The U-shaped building or the -- 11 MR. McKENZIE: No, 18 is the U-shaped building. 12 MR. LIVERMORE: Okay. 13 MR. BOWEN: The U-shaped building, but the little 14 annex that sticks out toward Peterson Farm Road. 15 MR. LIVERMORE: That one? 16 MR. BOWEN: Is it still called Peterson Farm Road? 17 I haven't been around for a while. 18 MR. KING: Got you. 19 MR. BOWEN: So we're redoing that facility right 20 now with new lighting, and rearranging the doors so they're 21 safe, because right now they're not really safe. And we're 22 building up the test fixture with the new airplane, and 23 you'll be shot if you stick your head in the hangar. Just 24 kidding. And getting ready to do an F.A.A. approved 25 and conformed series of structural tests. That's the only 13 1 activity we really have going on in those two buildings. But 2 our intent is -- and Dr. Chen will be here later this week, 3 and I'll be going over the whole program plan with Dr. Chen, 4 and how we're going to move forward on the museum concept, 5 which will encompass that building as well. 6 MR. LIVERMORE: You're still in 18 -- both 7 activities are in the same building? 8 MR. BOWEN: Correct. Yes, sir. 9 MR. LIVERMORE: Okay. 10 MR. BOWEN: So, again, I apologize for lack of 11 detail, but I -- that is the update and activities right at 12 this moment. 13 MR. KING: What part of 18 -- are y'all using all 14 of 18 right now? 15 MR. BOWEN: No, we're just using that back -- 16 MR. KING: The back part where the structure is 17 right now? 18 MR. BOWEN: Yeah. 19 MR. KING: Where the old structure was? 20 MR. BOWEN: Where the old structure lab was. 21 COMMISSIONER MOSER: Structure of the structure. 22 MR. BOWEN: Yes. 23 MR. LIVERMORE: Tom, there's a lot of wood 24 construction in that building. I guess that's not going to 25 be an issue for you? 14 1 MR. BOWEN: We'll just have to see. We'll have to 2 dig into it and see. I know there's some mold issues there. 3 When we get started on actually getting -- you know, 4 presenting a plan to the Board and start getting quotes and 5 people -- experts to look at the building and tell us what 6 we're up against for the museum part of it. 7 MR. LIVERMORE: Mm-hmm. 8 MR. BOWEN: There are issues there for sure. A lot 9 of it appears that needs to be taken down, rebuilt. But -- 10 and I don't have my -- my graphics, but our concept for at 11 least the front part of the museum is to eliminate Building 12 17 completely, and -- 13 MR. LIVERMORE: That's the old engineering 14 building? 15 MR. BOWEN: That's the old engineering building. 16 That has some very serious issues, as I understand it. And 17 then have the museum -- the actual functional part of the 18 museum start with that horseshoe building. 19 MR. LIVERMORE: Mm-hmm. 20 MR. BOWEN: And then build a new annex to it as a 21 reception area. 22 MR. LIVERMORE: Yeah. 23 MR. KING: Okay. 24 MR. GRIFFIN: Excuse me. I know you said Dr. 25 Chen's going to be here, but your museum piece of the 15 1 building, this end of it, do you guys have a time frame that 2 you're even conceptually looking at? You know, are we 3 talking two years? Five years? Ten years? I mean, I know 4 you guys have got money set aside, and you're doing all those 5 things in the 501(c)(3), but have you put together any kind 6 of rough order of magnitude schedule? 7 MR. BOWEN: Actually -- 8 MR. GRIFFIN: And if you need to wait till he's 9 here at the end of the week, that's fine. 10 MR. BOWEN: Actually, I can tell you the delay is 11 because of funding. 12 MR. GRIFFIN: Right. 13 MR. BOWEN: Only -- only Friday, we were released 14 by the F.A.A. to start licensing airplanes. Only Friday, 15 after all this time. So, finally we have our own destiny, if 16 you will. 17 MR. GRIFFIN: Okay. 18 MR. BOWEN: So the airplane that was auctioned 19 to -- 20 MR. GRIFFIN: Right. 21 MR. BOWEN: -- be the seed funding for the museum 22 actually isn't delivered; it's still over there in the 23 hangar. 24 MR. GRIFFIN: Right. 25 MR. BOWEN: So -- 16 1 MR. WOOD: Thank you, F.A.A. 2 MR. GRIFFIN: Okay. Well, good. 3 MR. BOWEN: So, you know, that -- that when we 4 deliver that airplane in the next, probably, two weeks, then 5 that money will be used -- 6 MR. GRIFFIN: Right. 7 MR. BOWEN: -- for seed funding. We do have the 8 501(c)(3) in place. We have the tax-exempt certificate with 9 the State of Texas in place. It is called the Mooney 10 Education Foundation, and we are partnering with the Lone 11 Star Museum and -- where are they now? They're at Ellington 12 Field, right? 13 MR. GRIFFIN: Ellington. 14 MR. BOWEN: To stand up an education component. 15 MR. GRIFFIN: Mm-hmm. 16 MR. BOWEN: That will be the primary mission of the 17 museum, besides the preservation of Mooney history, but it'll 18 be also education as well. 19 MR. LIVERMORE: So, you have your type certificate? 20 MR. BOWEN: We've always had a type certificate; 21 it's our production certificate -- 22 MR. LIVERMORE: Oh. 23 MR. BOWEN: -- that we're -- 24 MR. LIVERMORE: Okay, got you. 25 MR. BOWEN: You know, and it's all good. I mean, 17 1 oversight is good from the F.A.A. after such a long layoff. 2 What we didn't have is we didn't have the -- the future plan; 3 you know, how many airplanes did they want to do oversight 4 on? So, we finally got all that worked out last week. 5 MR. LIVERMORE: Great. 6 MR. GRIFFIN: Thank you. 7 MR. BOWEN: Again, I apologize for the lack of 8 detail. 9 MR. KING: Tom, what about the paint facility? Do 10 y'all have any plans for that? What are y'all going to do 11 about painting? Have y'all discussed that? 12 MR. BOWEN: Right now we're using two local 13 painters, one in Hondo and one in San Marcos. That is not a 14 long-term solution, so it's definitely something that we want 15 to explore with the City, the County, and the Board, -- 16 MR. KING: Mm-hmm. 17 MR. BOWEN: -- about what possible options there 18 are. 19 MR. KING: Okay. Okay. 20 MR. BOWEN: Again, I don't know the facility, the 21 old Building 19. 22 MR. KING: Yeah. 23 MR. BOWEN: I haven't even been in it since I've 24 been back, so I couldn't possibly even tell you. 25 MR. KING: Yeah. I wouldn't go painting in there 18 1 right now. 2 MR. LIVERMORE: Yeah, don't expect to be surprised 3 positively when you go in it. (Laughter.) 4 MR. KING: I guess that's it. Anybody else have 5 any questions? Thanks, Tom. Like I said, I appreciate 6 you -- 7 MR. McKENZIE: Appreciate it. 8 MR. KING: -- coming and bringing this to the 9 Board. 10 MR. GRIFFIN: Congrats. 11 MR. KING: Item 4C, Mooney roof construction. 12 Executive session, if needed. Bruce McKenzie. 13 MR. LIVERMORE: I'd like an executive session on 14 that. 15 MR. KING: Would you? 16 MR. McKENZIE: Before we make -- respectfully, 17 before we do that, the one that we thought we were -- the 18 construction agreement we thought we had settled on is in 19 your packet. 20 MR. KING: Mm-hmm. 21 MR. McKENZIE: Friday afternoon, that changed a 22 little -- a little bit. And I've talked to Mike Hayes 23 several times. Mike and I had a lot of conversations Friday 24 after -- after 2 o'clock Friday afternoon, and there's been a 25 few -- couple of changes made in it. I've got those here. 19 1 I'll be glad to give them to you. And before we go into 2 executive session, maybe we can stave that off, possibly, if 3 Mike can explain -- and he agreed to come out here and 4 explain to us the minor -- the changes that they would like 5 to make to this agreement, but with the Airport Board and 6 Mooney. The agreement's between us and Mooney. 7 MR. KING: Right. 8 MR. McKENZIE: And so I'll -- with that, with your 9 permission, Steve, I'd like to let -- 10 MR. KING: Sure. 11 MR. McKENZIE: -- Mike visit with us a little bit. 12 MR. KING: I figured Mike was here for a reason. 13 Mike, where are y'all at on this? I was -- I was out of town 14 for an extended period of time, but I was getting some 15 e-mails about this. What is -- 16 MR. LIVERMORE: There's another one? 17 MR. GRIFFIN: This is some updates. 18 MR. KING: What's the status of this thing? 19 MR. HAYES: What's the status of the agreement? 20 MR. KING: Yeah. 21 MR. HAYES: I think it's still -- I mean, we may 22 have reached -- and I don't know if you want to speak to 23 this. 24 MR. BOWEN: No, I'm actually out of the loop on 25 that. 20 1 MR. HAYES: I guess at some point Friday, Bruce got 2 back to me and said that Mooney wanted to change -- they 3 wanted to cap their liability for -- basically for 4 construction costs. 5 MR. KING: Mm-hmm. 6 MR. HAYES: And so it took -- it took, I don't 7 know, several times talking to Bruce about it, but that's 8 basically what they want to do. They want to cap their -- 9 their construction liability at $700,000. Easy change. 10 MR. KING: That's for their share? 11 MR. HAYES: That's for their share. Easy change. 12 But as I pointed out to Bruce, if we're capped, "we" being 13 the Joint Airport Board, and the Joint Airport Board's capped 14 at a million, they're capped at $700,000, then the agreement 15 needs to address what happens if it goes over. Under state 16 law, since this is essentially a public works contract, the 17 contractor has a legal right to go above -- 25 percent above 18 the bid price, and so when you add 25 percent to the 1.5 19 million dollar contract, then you're north of 1.7 million 20 dollars by, I think, $50,000, roughly. So, you know, I 21 wouldn't be doing my job unless I said, "Hey, then we need to 22 figure out what happens if it goes above the $1.7 million." 23 And that's where we are. I mean, obviously, you all have a 24 budget. City and County have a budget in terms of what 25 they've funded y'all at, and so that's -- that's kind of 21 1 where we are. That's the big -- I think the only issue 2 that's left. 3 MR. WALTERS: Outstanding. The only outstanding 4 issue. 5 MR. HAYES: The only outstanding issue, yeah. 6 MR. WOOD: Well, I have a question. And for 7 projects -- and you've been in construction; you know this. 8 When you have overruns, it's because you have change orders. 9 MR. GRIFFIN: That's because you run into things 10 you didn't know you were going to run into, and that's the 11 nature and the basis of the project changes somewhat. Who is 12 going to be in that position, like a project manager, who's 13 looking at these issues and deciding what we're going to do 14 and what we're not going to do? 15 MR. McKENZIE: Primero Engineering in San Antonio, 16 Texas. Tom Kita and David Mack. 17 COMMISSIONER MOSER: That's incorrect. 18 MR. GRIFFIN: Well, they represent us. They 19 represent us in that discussion. 20 MR. McKENZIE: That's right. 21 MR. WOOD: Those are our people that are going to 22 perform that function. 23 COMMISSIONER MOSER: May I comment on that? 24 MR. GRIFFIN: Well, let me see if I can 25 short-circuit Bill's answer real quick. The contract is with 22 1 Mooney, and so the roofing contract itself is with Mooney. 2 Therefore, it's -- Tom and Steve, over at Mooney, it's their 3 -- it's their facility supervisor and their maintenance guys. 4 MR. WOOD: So, a call may have to be made that 5 says, "No, if it's going to go over, we aren't doing that." 6 MR. GRIFFIN: Exactly. 7 MR. WOOD: So that's where you control it. 8 MR. McKENZIE: That's correct. 9 MR. GRIFFIN: Yeah. And so that -- yeah. I'm 10 sorry. 11 COMMISSIONER MOSER: I just want to go back a step 12 on this. I think it's really important. Before Mooney came 13 here, we had a facility over there that was in total 14 disrepair. Mooney comes in; roof's got to be fixed. 15 City/County said we'll each put in half a million dollars to 16 fix it, because there was some discussion that it would be -- 17 that we could do that for a million dollars. It was a 18 conscientious decision to give the authority to Mooney to 19 enter into that contract, so that's very important. The 20 contract is with Mooney and the contractor; therefore, 21 they're the ones that do change orders and so forth. It's up 22 to them if they're going to stay within or go over the 23 million. The bid came in for a million and a half, and 24 that's fine. They said that they would cover -- 25 approximately a million and a half. They said they would 23 1 cover the other half million. 2 I think when you look at this thing, the City and 3 the County own a facility over there that's in great 4 disrepair. Mooney has stepped up and has done everything 5 they said they were going to in this facility, including 6 $3 million worth of infrastructure, et cetera, et cetera, and 7 doing some other things. So, I think what the theory was, 8 the mayor and myself and -- and Jonathan Letz, and I can't 9 remember who else, sat down with Mooney initially on this. 10 We said that's the way to do it. We would have a consultant 11 as an adviser. The consultant doesn't have any authority 12 on -- on executing the contract. He represents -- he 13 represents the Airport Board in doing that from a technical 14 perspective and from a project management perspective, and 15 he's been very effective in that. So, I think we ought to 16 make it very, very clear. What Mooney is doing is they're 17 saying they'll go up to 700,000. That's even above and 18 beyond, okay? 19 Now, Mike my have a point there about, you know, 20 whether we got $50,000 of risk. If Mooney decides they want 21 to make a change order that takes them up above that, that's 22 their prerogative to do, okay? With -- with counsel and 23 advice from the consultant. So, they have the responsibility 24 to execute putting that building in shape. Or if they want 25 to come back and say, "We don't want to do anything here, 24 1 'cause we can revamp our operations," that was the other 2 reason we gave that to Mooney, okay? They have the 3 flexibility to understand what their operations are and what 4 their needs are. So, I think it's -- it was very simple the 5 way it was set up. We'll come back to the thing in a minute. 6 The City, after the contract was signed, decided 7 they -- I don't know, Mike, what caused this, but the City 8 wanted more agreement with the -- with Mooney that they were 9 going to fulfill their part. Now, they were taking our 10 commitment that we were going to do it, so, you know, we -- 11 we in the county were looking at this as a partnership 12 between City, County, Airport Board, and Mooney on fixing 13 that thing. Their word -- you know, and I think what Mike 14 has drawn up here, we've looked at drafts of it. We looked 15 at, you know, it seemed like a draft every -- coming out very 16 frequently on this thing. I don't think the County has any 17 issue with what's being proposed by the City here. I think 18 it's okay. I don't know that it's necessary, but I think 19 it's important for us to -- to recognize that this is a 20 partnership with Mooney, and they've got the authority to do 21 it, and we need to keep that perspective. 22 MR. WOOD: I appreciate you saying that. And my -- 23 where I was coming from with my question is that I'd hate to 24 have the Airport Board be put in the position where we're 25 responsible for something that we really are not -- 25 1 COMMISSIONER MOSER: You're not responsible for it. 2 You're not responsible for it. It's very clear Mooney 3 International is responsible. 4 MR. WOOD: Okay. 5 COMMISSIONER MOSER: Very clear. 6 MR. LIVERMORE: So, if it goes over -- 7 COMMISSIONER MOSER: It's their responsibility. 8 They sign the contract. 9 MR. GRIFFIN: At the initial million. If it goes 10 over, it's their responsibility. 11 COMMISSIONER MOSER: That's correct. 12 MR. LIVERMORE: Then what is the point of this 13 limitation here, then? 14 COMMISSIONER MOSER: I don't know. 15 MR. WOOD: It could just well be an internal Mooney 16 thing to say, "Well, we're going to watch this. We're not 17 going to go over 700,000." 18 MAYOR PRATT: But if they do go over 700,000, then 19 who's going to pay the bill? 20 COMMISSIONER MOSER: Mooney is. 21 MAYOR PRATT: Even though we capped it at 700,000 22 with that language? 23 COMMISSIONER MOSER: Mooney signed the contract. I 24 don't -- if it's a million, nine, or a million .01, Mooney 25 has the contract -- correct me if I'm wrong here, Mike -- 26 1 Mooney has the contract with the contractor to execute the -- 2 execute you the business. Not -- not the Airport Board, not 3 the City, not the County. Mooney's got that responsibility. 4 MR. WALTERS: I think it goes back to what Mike's 5 talking about. Again, there's no language in here that says 6 when it goes over a million, seven, what's it -- who's going 7 to pay, and what's the process? 8 COMMISSIONER MOSER: If it goes -- why do we care? 9 Mooney has the contract, okay? It's their authority to 10 execute the contract that they've signed with the contractor. 11 If they sign one for a million and a half, if that goes over, 12 it's Mooney's responsibility. 13 MR. KING: Who wanted the $700,000 language, Mike? 14 Where'd this 700,000 -- where'd that come from? 15 MAYOR PRATT: Barry. 16 MR. KING: Barry did? 17 COMMISSIONER MOSER: Because there was this 18 contract -- this agreement that was drafted by the City and 19 given to Mooney to make sure that they execute their 20 contract, okay? It didn't have anything in there about, you 21 know, the agreement -- the agreement early on was Mooney had 22 the authority to execute that contract, whether it was for a 23 million or a million, two, or two million. They've got the 24 authority to execute that. They -- but the City and the 25 County, through the Airport Board, has limited our input to a 27 1 million. How they do it, and consistent with the technical 2 consultant -- of the consultants, that that's only check and 3 balance that we have in there. 4 MR. WALTERS: Tom, you were sitting here saying 5 that this is a partnership, but then you're also saying, 6 "Okay, well, if it goes over 700,000, well, Mooney, you're on 7 your own." 8 COMMISSIONER MOSER: That's it. 9 MR. WALTERS: "It's your responsibility." 10 COMMISSIONER MOSER: That's it. If it goes over a 11 million, Mooney's on their own. If it goes over a million. 12 If it goes over a million. 13 MR. KING: I can understand that if you left this 14 language out, Tom, but if you put this language in the 15 contract, it looks like Mooney is -- I mean, this is -- looks 16 like they -- 17 COMMISSIONER MOSER: That's not in the contract. 18 MR. KING: No, no. But, I mean, I think there's 19 going to be a signature missing if we don't have it in the 20 contract. I mean, he agreed not to put it in the contract? 21 COMMISSIONER MOSER: I -- I'm innocent on this. 22 MR. KING: No, no. I don't think it came up out of 23 thin air. You didn't put it in the contract, did you? 24 MR. HAYES: No. 25 MAYOR PRATT: No. 28 1 MR. KING: Well, why do they want it in the 2 contract? 3 COMMISSIONER MOSER: They didn't want it in the 4 contract. 5 MR. KING: Well, somebody does. It's written in 6 red here. 7 MAYOR PRATT: Barry did submit it as a requirement 8 for the contract. Yes, he did. 9 MR. KING: What I'm getting at -- what I'm getting 10 at is, if what you're saying is correct, and they have total 11 control over what they spend over there, if you give them a 12 700,000 limit, what keeps them from spending $4 million? 13 COMMISSIONER MOSER: Wait, go back one. This not a 14 contract; this is an agreement. 15 MR. KING: This is an agreement. What I'm 16 saying -- but we -- if Jerry wants -- or Barry wants some 17 sort of a limit on what they have over there to spend, what 18 happens if it goes -- and they're in control of the spending, 19 what if it goes over that? 20 COMMISSIONER MOSER: See, that's what I object to 21 in this agreement. They have the authority. They have the 22 authority. Mooney's got the authority to do what they want 23 to do in that contract. 24 MR. KING: Right. 25 COMMISSIONER MOSER: Period. I don't know why 29 1 we're -- why we're restricting them, okay? To 700,000, or 2 500,000 or whatever. 3 MR. GRIFFIN: Let me try a little bit different 4 take. 5 MR. WALTERS: First let me say -- you don't know 6 what the purpose of this is, or why we have the agreement? 7 COMMISSIONER MOSER: Not really. 8 MR. WALTERS: And I agree that the basis of this 9 agreement is that we wanted -- that the Joint Airport Board 10 wanted -- and I -- or I felt like strongly that we wanted to 11 make sure that we weren't putting our money in first, and 12 then Mooney come in later and then maybe not have their 13 money. 14 COMMISSIONER MOSER: Mm-hmm. 15 MR. WALTERS: That was the purpose of this 16 agreement, so that there was a formula that said we put in 17 some, you put in some. 18 COMMISSIONER MOSER: Yeah, okay. 19 MR. WALTERS: And so that was -- that's the 20 foundation of this agreement. 21 MAYOR PRATT: That was the agreement reached 22 between Barry and I, that -- that the County -- 23 COMMISSIONER MOSER: Between you and Barry; that's 24 interesting. 25 MAYOR PRATT: Between -- well, the County wasn't 30 1 involved in initiating this contract. 2 COMMISSIONER MOSER: We weren't invited. 3 MAYOR PRATT: So, you know, the -- the agreement 4 was that the County, City, and Mooney would participate in 5 paying the invoices on an equal one-third basis, less 6 retainage. I think that's what you're talking about. 7 MR. WALTERS: That's exactly what I'm talking 8 about. 9 COMMISSIONER MOSER: Right. 10 MR. WOOD: What would be nice is if this contract 11 defined everybody's responsibilities as well as obligations. 12 COMMISSIONER MOSER: You keep calling this a 13 contract. It's not a contract. 14 MR. WOOD: Whatever you want to call it. 15 Agreement. And then talk about cash flow. I mean -- 16 MR. HAYES: Now, one way to think about it -- and 17 everyone's kind of saying correct stuff here. There's a 18 construction contract between Mooney and the contractor, the 19 roofing contractor. There's a contract apparently between 20 the Joint Airport Board and this consultant. And 21 Commissioner Moser's right; at the end of the day, if Mooney 22 wants to spend $4 million on a roof -- 23 COMMISSIONER MOSER: Wait a minute, I'd like them 24 to hear this. Hey, guys, you need to hear what he's saying. 25 MR. KING: Go ahead, Mike. 31 1 MR. HAYES: There's basically three contracts 2 involved here. There's a consultant contract between the 3 Joint Airport Board and their engineer/consultant who created 4 the specs. Then there's a construction contract that 5 apparently Mooney has entered into with a roofing firm. And 6 I've never seen that contract, but I assume that Mooney is on 7 the hook for the full $1.5 million. And then Mooney, 8 rightfully so, and apparently based on discussions with the 9 Joint Airport Board, said, "Well, let's create a kind of a 10 funding mechanism to fund the construction contract," and 11 that's what this contract -- that's all this contract does. 12 MR. WALTERS: Right. 13 MR. HAYES: When the City -- when the City puts 14 public money into anything, we want to make sure at the end 15 of the day -- we're constitutionally required to, at the end 16 of the day, make sure we have a contract, that when we put in 17 public money, we're getting the bang for the buck. And in 18 this case, we -- we want a roof, obviously. And that's all 19 this contract does. It's a funding mechanism. It's a 20 funding contract. 21 MR. LIVERMORE: So, this agreement is a funding 22 mechanism? 23 MR. HAYES: That's all that is. 24 MR. WALTERS: And which I think is a good 25 agreement, and I think it benefits -- you know, at least it 32 1 benefits what I was hoping we would do. Actually, I was -- 2 my initial concept was I wanted Mooney to put all their money 3 in first before we start, you know, putting in our million 4 dollars. It came out two-thirds/one-third, which I still 5 think is acceptable. So, I'm in total support of this 6 agreement. I do agree that it does seem a little 7 contradictory to go, okay, it's -- "Mooney, it's your 8 contract. Anything over, you know, the contract amount, or 9 anything over a million, you know -- you know, anything over 10 the contract amount is yours, because the contract is with 11 you, and you're the sole responsibility party, but yet now 12 you're coming in and saying we're going to put a limitation 13 of 700,000 on it." 14 COMMISSIONER MOSER: That was the only -- that was 15 the only, I think, significant comment that the County had in 16 seeing this, is the fact that it was doing exactly that. The 17 agreement on the funding source, we absolutely agree. That's 18 good. And what Mike says, 100 percent agreement with. But 19 to say anything above a million and a half is -- is Mooney's 20 responsibility, well, that's already existing in the existing 21 contract between Mooney and the contractor. I don't know why 22 we need to get into that aspect of it. Just eliminate -- 23 eliminate the 700,000 and all that, and we're good to go. 24 MR. LIVERMORE: It's what Bill said earlier; the 25 only thing that would make this -- we've got a firm contract 33 1 at a million and a half, no change orders. 2 COMMISSIONER MOSER: No, we don't. 3 MR. LIVERMORE: Well, Mooney does. Mooney does. 4 MR. McKENZIE: No contract has been signed yet. 5 MR. LIVERMORE: But the contract's on the table. 6 MR. McKENZIE: It's on the table. 7 MR. LIVERMORE: It's pending, so it's a -- it's a 8 firm, fixed price. The only thing that's going to make it go 9 over is what Bill Wood's saying; "Well, we want this, we want 10 that added to it." 11 COMMISSIONER MOSER: And that will probably happen. 12 There's always -- 13 MR. WOOD: Why don't you just change A to say it's 14 Mooney's responsibility to manage the contract such that you 15 don't have a big overrun? 16 COMMISSIONER MOSER: Don't even need to say that. 17 That's their prerogative. We don't have to say, "Don't have 18 a big overrun." If they want to put a platinum roof up 19 there, they ought to be able to do it, as long as our 20 consultant agrees. 21 MR. WALTERS: Let me ask you this. Have -- has the 22 County and the City discussed at all about if it does go over 23 700,000 for Mooney, then what is the process and who's going 24 to pay for what? 25 COMMISSIONER MOSER: The 700,000 came out last 34 1 Friday, Corey. You know, it -- I don't care if it's 700,000 2 or 900,000 or 300,000, okay? It's their prerogative and 3 their responsibility. Why are we specifying -- 4 MR. WALTERS: So, basically what you're saying is, 5 you're accepting the agreement if we take out the 700,000? 6 COMMISSIONER MOSER: Just put the -- put the 7 funding -- put the cash flow on how the contract is paid. I 8 think that's good; a third, a third, and a third, okay? If 9 it goes above that, then it's -- it's our -- it's Mooney's -- 10 Mooney's responsibility. 11 MR. WALTERS: Okay, I'm asking you a question. Is 12 this agreement acceptable to you if the 700,000 weren't in 13 there, the cap of 700,000 in there for Mooney? 14 COMMISSIONER MOSER: Yeah. 15 MR. WALTERS: Okay. 16 COMMISSIONER MOSER: Well, I'm surprised Mooney -- 17 and I mentioned this the other day. I'm surprised Mooney 18 would just say -- you know, take this agreement, say, "Yeah, 19 we're responsible for everything above and beyond." If -- if 20 I were Mooney, okay, and something came up -- there's more 21 rotten timber in there than we thought, okay? And they said 22 this is not going to be a million dollars; it's going to be 23 over that, Mooney could come back and say, hey, how do -- you 24 know, "We want to work with both the owners of this facility 25 to figure out what to do here." If I were Mooney, that's 35 1 what I'd do. 2 MR. KING: Well, they will come, maybe. 3 COMMISSIONER MOSER: Yeah. 4 MR. KING: What I'm -- I don't understand is -- 5 Mike, so you -- Jack and Mike, y'all would accept it without 6 the red -- the red thing in there? Is that what y'all would 7 accept? 8 MAYOR PRATT: We'd accept it without the 700,000. 9 MR. HAYES: Right. 10 MR. KING: Well, then -- 11 MR. LIVERMORE: Will you accept it with the 12 700,000? 13 MAYOR PRATT: Then -- then where's the protection 14 for the City and County and the Airport Board? 15 MR. LIVERMORE: That's what I'm asking. 16 MAYOR PRATT: It's not there. 17 MR. GRIFFIN: Well, the problem, Mayor, is what -- 18 it's in the fifth -- sixth "whereas"; it says the City 19 Council and the Commissioners Court have pledged funding the 20 amount of $500,000. That's the end of the dollars, period. 21 MR. WALTERS: Why don't -- let me ask you this. So 22 what we're talking about is basically that Barry came back 23 and said, "We want a cap of 700,000." From what I'm hearing 24 here, both the City and County are saying that's 25 unacceptable. So, if that's unacceptable -- 36 1 COMMISSIONER MOSER: That's not what the County's 2 saying. 3 MR. HAYES: Go ahead. 4 MR. WALTERS: That's exactly what you're saying. 5 You're saying that Mooney is responsible, so why do we even 6 have the 700,000. 7 COMMISSIONER MOSER: Well, okay, yeah. Period. 8 Why even have that term in it? 9 MR. WALTERS: So, you're saying -- the City and 10 County in here are saying this agreement, without the cap of 11 700,000, is what we will do, so it sounds like somebody needs 12 to go back to Mooney, or maybe it's us, the Airport Board, 13 and present it to them and say, "This is all that we're 14 willing to do." 15 MR. GRIFFIN: Let me address this -- let me kind of 16 support what Corey is saying here in a different manner. We 17 had seven bids come in in this process, ranging from 1.43 to 18 3.47 mil, okay? Had Mooney chosen the 3.47 million, we were 19 still only giving them a million dollars, the 500,000 from 20 each entity. Mooney at that point would have been liable for 21 $2.47 million. It just so happened that when it lined up at 22 500K a piece, everybody said, "Oh, good, we're equal 23 partners." But who's going to pay if it goes over the 500K 24 that Mooney signed the contract for? 25 MAYOR PRATT: Mooney had always said that -- that 37 1 they were willing to go along to -- within a certain range. 2 MR. GRIFFIN: Well -- 3 MAYOR PRATT: If it came in that the 3.-whatever 4 came in as a bottom range, I think we'd be having a different 5 discussion right now. 6 MR. GRIFFIN: But what I'm saying is, had Mooney 7 chosen to go with the $3.47 million roofer, they would have 8 been liable for 2.47 million, not us. 9 COMMISSIONER MOSER: Right, precisely. 10 MR. GRIFFIN: And we would have said, "Gosh we got 11 a heck of a good deal, because they're putting in two and a 12 half and we're only putting in a half. 13 MR. LIVERMORE: Half a million. 14 COMMISSIONER MOSER: It was the County's position 15 that when they agreed to put in a half million, we got a good 16 deal. 17 MR. GRIFFIN: Well, and so -- 18 COMMISSIONER MOSER: If they agreed to put in 19 300,000, we got a good deal. 20 MR. GRIFFIN: I don't think we would have had this 21 discussion at the 3.47 million price tag. Because Mooney's 22 already committing to -- to two and a half million dollars 23 worth of roof. 24 MR. WALTERS: Well, let's just deal with the 25 contracts that we have. 38 1 MR. GRIFFIN: We don't have any yet. That's the 2 deal. 3 MR. WALTERS: Or the amounts that we have. I 4 suggest that if the prior agreement was acceptable to the 5 County and to the City, before we made the red-line of the 6 $700,000 cap, we send that back to Mooney and say, "This is 7 what we're -- what we will approve to accept, and we're not 8 going to give you the limitation on 700,000, 'cause it's your 9 responsibility. We're putting in a million. That's all 10 we're putting in." 11 MR. WOOD: Can I add something? 12 MR. WALTERS: Does anybody have an issue with that? 13 MAYOR PRATT: I don't have an issue. 14 MR. WOOD: I agree with what Corey said, but here's 15 the problem that I see. 16 COMMISSIONER MOSER: Wait, Bill, just -- before you 17 go there, it sounds like that that's -- that's agreeable. 18 That's the way -- that was the draft before. We went over 19 it. That's the one -- I think that was about last Thursday 20 or something like that, that draft. County didn't have any 21 issue with that. 22 MR. WALTERS: The agreement, Bruce, that you sent 23 out previously that was before we got the last e-mail, that 24 was -- 25 MR. WOOD: Let me just add one thing. You got 39 1 three partners, and Partner number 1 says, "This is all I'm 2 paying." Number 2 says, "This is all I'm paying." Number 3 3 says, "This is all I'm paying." Then you have a contract 4 that has an unknown in it, that nobody knows who's going to 5 take care of it if it gets over that point. 6 MR. WALTERS: No, it's Mooney. 7 COMMISSIONER MOSER: One thing you've got wrong, 8 Bill, is -- is there was not an agreement between the City 9 and the County and Mooney, okay, to limit what Mooney's -- an 10 amount that they were going to pay. All we said was -- the 11 City and County said we're putting in a million, period. 12 You've got the authority to go contract and fix that. 13 MR. WOOD: That's what I said. And Mooney says, 14 "We're putting in 700,000, period." And what the problem 15 is, -- 16 COMMISSIONER MOSER: Forget the 700,000. 17 MR. WOOD: -- is that leaves an agreement or 18 contract that doesn't finish the project, possibly. And 19 nobody knows who will. And I think what Corey said, if you 20 just say the City and County are putting in half a million 21 each, -- 22 COMMISSIONER MOSER: That's the way it was. 23 MR. WOOD: -- and then Mooney's going to control 24 the project, and the 700,000 can be an internal Mooney 25 discussion. 40 1 COMMISSIONER MOSER: That's what I'm -- I've been 2 saying for the last 10 minutes. 3 MR. KING: Okay. Okay. 4 COMMISSIONER MOSER: I agree with you. 5 MR. KING: We're in agreement about that. So, 6 y'all understand that, Mike? The only way -- the 700,000 7 cap, we don't have any control over. They're paying all the 8 bills and they're ordering all the work. Looks like to me -- 9 I mean, once we gave them control of the work, and all -- I 10 mean, at some point we gave Mooney control to get -- to make 11 the bid, to do the work, say where you want to spend the 12 money, do all that stuff. Then at that point, we don't have 13 any control over it any more. We lose total control of it, 14 so we cannot be -- they can't put it on us. We can't control 15 that and pay for something that we didn't expend. Now, if 16 we'd like to rewrite that, try to get some control over the 17 spending, then that's a different deal, but we don't have any 18 control over spending. I can't just -- that's why you say, 19 "I'll give you a check for a million dollars, but you get to 20 control the spending." And if you guys just go crazy over 21 there and want to spend 2 million, and then come back to me 22 and say, "Where's the other 300,000 coming from?" I don't 23 have any control over it. If we don't have control over it, 24 then we can't exceed our -- we can't be liable for exceeding 25 our part. 41 1 MAYOR PRATT: The City and County can't just turn 2 over a million dollars without some kind of control over how 3 that's used. 4 MR. KING: And I'm in agreement with Corey; this 5 document is a -- is a good document in that it does specify 6 how people -- who's putting their money in and when it's all 7 going to be paid and stuff like that. But, I mean, I still 8 think the problem is -- is that the people who -- the guy who 9 needs to sign this document's not here. Neither one of them 10 are here. And we're all agreeing to it, but somebody needs 11 to talk to them about that. 12 MAYOR PRATT: Well, the guy that was going to sign 13 it, I don't -- 14 MR. KING: Barry needs to. 15 MAYOR PRATT: -- I don't think he was a signator; I 16 think Jerry was the signator, and Barry was only speaking for 17 that. 18 MR. KING: Right. 19 MAYOR PRATT: Okay? So Jerry's here -- 20 MR. KING: This week. 21 MAYOR PRATT: -- this week. 22 MR. BOWEN: Yeah. 23 MAYOR PRATT: Okay. And so we'll find out then. 24 MR. KING: Todd, did you have something? I think 25 that's you back there. 42 1 MR. PARTON: Yeah, it is. It is. One of the other 2 things that's important to note is that Mike referred to the 3 purchasing portion, and what happens with public bid 4 contracts, -- 5 MR. KING: Mm-hmm. 6 MR. PARTON: -- they can also go down 25 percent. 7 MR. KING: Sure. 8 MR. PARTON: And having us do a third, a third, a 9 third would also begin to address that issue as well. So, 10 invoices come in. And should the project be cut -- and, 11 again, Mooney's controlling the contract. Mooney says, "Hey, 12 we're going to remove some buildings -- going to remove some 13 areas that are no longer needed to address the work that's 14 out there." That could always happen on their side. So, a 15 third, a third, a third, you've got partnerships coming in 16 putting in equal money. So, if that project -- 17 MR. GRIFFIN: I got to interrupt you. That wasn't 18 the original agreement. Again, it wasn't -- the agreement 19 wasn't an equal partnership. The agreement was we were 20 giving them 1.0 million dollars, end of story. So if you 21 guys want to make this an equal partnership, that's a totally 22 different item. 23 COMMISSIONER MOSER: That's exactly right. 24 MR. GRIFFIN: And, dang it, quit trying to make it 25 an equal partnership. The original bid happened that Mooney 43 1 came to us about 18 months ago for 9.7 -- or 900 -- 2 COMMISSIONER MOSER: Just a little under a million. 3 MR. GRIFFIN: 970K. You guys were willing to give 4 them a million dollars, and they only wanted 970. It wasn't 5 an equal partnership, and now you want to make it an equal 6 partnership, and that's not where we're at. 7 MAYOR PRATT: We're not trying to make it an equal 8 partnership. 9 MR. GRIFFIN: He just said those words, mayor. 10 THE REPORTER: I'm sorry, I've got a technical 11 difficulty here. 12 (Discussion off the record.) 13 MR. WALTERS: Have we decided -- I think we're at a 14 point where we know what we're going to do with this 15 agreement. 16 MR. KING: Hold on, I got a question. What -- 17 wait. So, Mike, does this agreement say that if Mooney 18 spends a million, two over there, we divide that three ways? 19 MR. HAYES: No. 20 COMMISSIONER MOSER: No, it doesn't. 21 MR. KING: Okay, that's all I wanted to know. 22 MR. PARTON: But the way it's constructed, the 23 invoices come in; it's paid a third, a third, a third. On an 24 invoice basis, not on a total project basis. That's what I 25 was trying to explain. 44 1 MR. KING: Where does it say that? 2 MR. WALTERS: It doesn't say that. It says -- this 3 agreement says that the Joint Airport Board pays two-thirds 4 and Mooney pays a third. 5 MR. PARTON: On an invoice basis. So, an invoice 6 comes in for work completed. Two-thirds gets paid, less 7 retainage. 8 MR. WALTERS: That's right. 9 MR. PARTON: That's what the Airport Board 10 releases. 11 MR. GRIFFIN: Until our million dollars is spent. 12 Then after our million dollars is spent, I don't care where 13 the other third -- or the other -- 14 MR. KING: Wait, wait, wait. But if you're doing 15 it a third, a third -- if you're doing it on two-thirds and a 16 third, then their money is getting spent at the same time as 17 your money. Is that what you're saying? 18 MAYOR PRATT: Exactly right. 19 MR. WOOD: That was the agreement. 20 MR. GRIFFIN: But at a million dollars, we're 21 capped. 22 MR. KING: What if it never gets to a million? 23 What if it gets to 800,000? 24 MR. GRIFFIN: Then we're done. 25 MR. KING: Then we only put in 800,000, and Mooney 45 1 puts in -- 2 MR. GRIFFIN: Zero. 3 MR. KING: No. What if the bill is 1.2 million, 4 and we paid on a third/two-thirds deal? 5 MR. GRIFFIN: Right. 6 MR. WOOD: So, your question is -- 7 MR. KING: Theoretically, we would pay 800,000, and 8 Mooney would pay 400,000. 9 MR. GRIFFIN: And I think we committed a million 10 dollars to the project, so then we're going to have to sit 11 down and decide if we commit to that extra $200,000. 12 COMMISSIONER MOSER: That's right. 13 MR. GRIFFIN: City and County originally agreed 14 to -- 15 MR. KING: Already paid all the bills. You've 16 already paid the bills. 17 MR. GRIFFIN: But we're repaying money at that 18 point. That's a different -- that's part of this agreement. 19 COMMISSIONER MOSER: Right. 20 MR. KING: Oh, my head hurts now. 21 MR. GRIFFIN: Yeah. 22 MAYOR PRATT: Let me see if I can -- 23 MR. KING: Explain it to me. 24 MAYOR PRATT: Using that scenario, you're assuming 25 there will be no change orders. 46 1 MR. GRIFFIN: Yes, you have to. 2 MR. LIVERMORE: What if it could be less? 3 MR. McKENZIE: It's not a chance. 4 MR. LIVERMORE: No chance it's going to be less? 5 MR. McKENZIE: It's a signed contract. 6 MR. LIVERMORE: Well, if they cut out work, I guess 7 maybe. But the chances of that -- 8 MR. KING: What do you think, Todd? 9 MR. PARTON: Under a public contract, which this 10 is, it can go over 25 percent. It can also come under 11 25 percent. 12 MR. KING: Okay. 13 MR. PARTON: I'm not saying it will; I'm just 14 saying that the agreement, the way it's set up, has everybody 15 paying a third. And it could be, under the way we got this 16 constructed, that if they're less than the 500 they thought 17 they put in, we're less than a million ultimately that we 18 said we would put in. So, I'm just pointing that out, that 19 the price of it could go either way. Because the comment was 20 made earlier this is ironclad; this is the price, period. It 21 may not be. 22 MR. KING: Yeah. 23 MR. PARTON: It might not be. There's some wiggle 24 room to the plus side or to the minus side on this project. 25 MR. GRIFFIN: That's to be dealt with at that 47 1 point. 2 MR. PARTON: And we don't control the work. 3 COMMISSIONER MOSER: Just put in this agreement the 4 condition if it came in for less than a million -- less than 5 a million dollars, then -- then it's a third, a third, and a 6 third, up to this -- up to whatever the number is; you 7 choose. 900,000, okay? 8 MR. WALTERS: Mike, let me -- 9 COMMISSIONER MOSER: Wait, let me finish. Say it 10 comes in at less. Then just put in this agreement that the 11 funds -- you know, that's it. You know, the contract is 12 complete, 900,000 or whatever it is, less than a million. 13 And -- and the City gets its money back, County gets its 14 money back, and Mooney is on the hook for less money. 15 MR. WALTERS: Mike, under this agreement, if it 16 goes -- if the contract -- if the scope of work was reduced 17 and the contract amount was reduced, and we came in at the 18 $800,000, under this agreement, could Mooney come back to us 19 and say, "You owe us an additional 200"? 20 MR. HAYES: No, no, no. 21 MR. WALTERS: Okay, they could not. 22 MR. HAYES: There's nothing in here that deals 23 with -- 24 MR. WALTERS: Okay. 25 MR. HAYES: -- a lesser amount. 48 1 MR. KING: Okay. 2 MR. WALTERS: I don't have a problem with it if 3 Mooney can't come back and say, you know, "You said that 4 you'd put in a million dollars, and the contract -- even 5 though the contract was less, you know, you still owe us 6 200,000." If that's -- if they can't enforce that, then I 7 don't have a problem with the contract as-is. 8 MR. HAYES: All right. 9 MR. WALTERS: Not this one, but the previous one 10 where we take out the $700,000. 11 MAYOR PRATT: You're talking about the contract 12 without the 700,000? 13 MR. WALTERS: That's right. 14 MR. KING: Yes, okay. Do we need to vote on that 15 or anything? I mean, it's not even approved yet. 16 MAYOR PRATT: I think you need to do something to 17 take it forward. 18 MR. GRIFFIN: I think we need to -- based on what 19 Corey just said, if we all agree with Corey, we need to 20 approve the draft of 3-5-15. 21 MR. LIVERMORE: Are these two documents identical, 22 except -- 23 MR. GRIFFIN: Except for those two red lines, yes. 24 MR. KING: Okay. Tom? 25 MS. BAILEY: You didn't have a problem with the 49 1 first red line, did you? 2 MR. KING: Tom, do you think you, or the people 3 that you hang out with down there, are going to agree with 4 that? I'm talking to Tom Moser. 5 COMMISSIONER MOSER: I'm just verifying, 'cause I 6 don't have a copy. We agree with the one -- that was last 7 Thursday, right, that didn't have the 700,000 in there? That 8 was -- yeah. Yeah, to my knowledge, we agree with that. We 9 don't have any issue with that at all. 10 MR. KING: Okay. 11 MR. GRIFFIN: I think we need to make a motion that 12 this is our version that we'd like to see press forward. 13 MR. KING: Okay. 14 MR. WALTERS: Which one is that? 15 COMMISSIONER MOSER: We'll have to take this back. 16 MR. GRIFFIN: 3-5-15, the original one. I'll make 17 a motion for that. 18 MR. KING: Hold on. Hold on. 19 COMMISSIONER MOSER: I was going to say, we've got 20 to approve that at Commissioners Court, which will be next 21 Monday. 22 MR. KING: I understand. I understand. But 23 there's nothing? 24 COMMISSIONER MOSER: But there isn't anything 25 that -- Ilse, do you see anything? 50 1 MS. BAILEY: No. 2 MR. KING: Okay. 3 COMMISSIONER MOSER: I don't think there's a 4 problem. 5 MR. KING: Don't tell me that. 6 MR. LIVERMORE: Where is Mooney on this? 7 MR. McKENZIE: Two things. Barry will be out of 8 town all this week, and the second thing, this $700,000 9 number is coming from Mooney. 10 MR. WALTERS: I understand that. 11 MR. McKENZIE: That's what -- okay, as long as 12 everyone understands. 13 MR. WOOD: As long as this contract says Mooney has 14 control over the project where they can limit the total 15 money, then that's -- they get that. 16 MR. KING: I would think that Mooney is in the 17 perfect position. They're in charge of spending the money, 18 and if they don't want to spend any more than that, don't 19 spend it. 20 COMMISSIONER MOSER: Right. 21 MR. KING: To me, you got the perfect storm here. 22 COMMISSIONER MOSER: City and County and airport's 23 in a perfect position if they go above whatever it is. 24 MR. KING: They control the outgo on this deal. 25 So, I mean, I don't -- I don't know why you want to limit 51 1 your outgo when you control it. So, you know, I would say 2 don't spend any more than that. 3 MR. WOOD: That's an internal function. 4 MR. KING: Right. 5 MR. WALTERS: So, I think where we're at is that we 6 need a motion that the Board approves the draft dated 3-5-15, 7 to present this agreement to Mooney for their acceptance. 8 MR. GRIFFIN: After -- 9 MR. WALTERS: Signature. 10 MR. GRIFFIN: -- the City and the County say -- 11 COMMISSIONER MOSER: I agree with his motion. Send 12 it to Mooney. If they approve it, then the City and County 13 can approve it. 14 MR. KING: Okay. 15 MR. LIVERMORE: Did you make the motion? 16 MR. GRIFFIN: Corey did. I'll second. 17 MR. WALTERS: I make a motion that we approve the 18 draft, 3-5-15, of the construction agreement between 19 Kerrville-Kerr County Joint Airport Board and Mooney 20 International Corporation for roof reconstruction, and that 21 we -- we approve this agreement to present to Mooney for -- 22 MAYOR PRATT: Signature. 23 MR. WALTERS: Signature -- execution. And 24 execution. 25 MR. GRIFFIN: I'll second. 52 1 MR. KING: Any discussion? All in favor? 2 (The motion carried by unanimous vote, 5-0.) 3 MR. KING: 5-0. 4 MR. McKENZIE: Hey, Steve? And, Mike, you'll get 5 us a clean copy of the 3-5-15 document? 6 MR. HAYES: Yes. 7 MR. McKENZIE: Thank you. 8 MR. KING: Item 4D -- oh, great. (Laughter.) On 9 Item 4C, do you need to go into executive session on that 10 now? 11 MR. LIVERMORE: I'd kind of like to, yes. 12 MR. WOOD: Can we hold that till the end of the 13 meeting? 14 MR. LIVERMORE: That will be fine. That will be 15 fine to me. 16 MR. WOOD: So these folks don't have to leave. 17 MR. KING: Airport planning summary, Item 4D. 18 Mr. Moser. 19 COMMISSIONER MOSER: Okay, thanks. The -- the 20 planning committee was -- was established at the 21 recommendation of -- of then Mayor Wampler when there 22 appeared to be not good communication between the City and 23 the County, okay? That was -- that was even after the 24 Airport Board was established. The Airport Board is 25 responsible for the operation of the airport. It was -- it 53 1 was a good suggestion to form this planning committee. I 2 want to read what the purpose is. The purpose of the 3 committee is to receive and discuss in detail from the Board 4 information regarding the operations of the airport and its 5 finances. Number two, discuss short- and long-term planning 6 for the operations, management, and economic development of 7 the airport. And number three, formulate recommendations to 8 be presented to each party regarding the short- and long-term 9 goals of the airport. That's the purpose. The -- the 10 purpose of it, too, was to -- the implementation of it was to 11 have two people from -- two principals from the City, two 12 principals from the County, and their supporting staff, 13 whatever they wanted, to make it a party of three for each, 14 and the same for the Airport Board. Two members of the 15 Airport Board, and probably the Airport Manager. 16 The -- the reason I suggested that Bruce set up an 17 Airport Planning Committee meeting several weeks ago -- and I 18 think we had about -- we said, "Let us do it whenever." I 19 don't think there was a date set. We said, "Let's choose a 20 date and set up this planning committee as soon as possible." 21 The purpose of that was the thing that we were just 22 discussing a while ago, and that is the roof. Now, the -- in 23 my judgment, okay, the way that issue should have been 24 handled is, if there was an issue -- and I think -- I think 25 Mike Hayes and the Mayor had a good point on -- on funding by 54 1 the City for the contract like this. There has to be some 2 limit and some control, knowing that the taxpayers' money is 3 being spent appropriately. That would be a perfect thing to 4 bring to an airport planning committee, rather than a 5 unilateral discussion between the City and Mooney. 6 I happened to hear about it, and I said, "Well, 7 good." Ilse, our acting County Attorney at that time, got a 8 draft from Mike. We didn't understand what that was about, 9 but that was okay. Planning Committee would have been a 10 perfect place to bring that back, because that is a capital 11 investment over there, and that's what the purpose of the 12 planning committee is. Nothing to do with operations; that's 13 a capital investment. So, the second thing is, when we -- a 14 number of years ago -- Steve will remember this. And I don't 15 remember the exact date when we started our master plan for 16 this airport. How long ago was that, Mike -- I mean, Bruce? 17 Four years ago? 18 MR. McKENZIE: We started thinking about four years 19 ago. 20 COMMISSIONER MOSER: About four years ago. We said 21 when we started that, we said we need to figure out how to 22 develop this entire airport, because it was kind of a dirt 23 daubers nest the way we were doing it. We said we didn't 24 want to do that any more. Let's lay out a plan. We spent a 25 couple hundred thousand dollars doing it. At the beginning 55 1 of that plan, we said no change in runways. We're not 2 putting a control tower in. We're not doing any of that 3 stuff. Pick -- determine how to best develop this airport. 4 That's what it was. We specifically said no extension of 5 runways or anything like that. We're through. We just spent 6 $15 million in here, and that was enough of that. So I was 7 surprised to see presented to Senator Cornyn's staff, okay, a 8 concept which showed an extension of the runway from 6,000 9 feet to 7,400 feet. Totally surprised at that. And a 10 control tower. We talked about control towers ad nauseam; 11 said we're not ever going to do that. And a customs 12 facility. 13 We've addressed customs facilities at the Airport 14 Board. We said there were -- there were people that use this 15 airport that want a customs facility. We said good -- and 16 that's in the record. You can do a customs facility; we'll 17 give you a place to put it. It will cost you a million 18 bucks, and you can hire T.S.A. to do it. If you want to 19 pay -- the users want to pay to develop and put a customs 20 facility in, do it. So, I think this is -- this would have 21 been a perfect thing to bring to the planning committee to 22 say, "Why don't we consider that?" Okay? My only purpose in 23 having a planning committee is -- was to say, "Where are 24 these things? What is the data? What is the data that 25 supports extending the runway? What is the data that 56 1 supports a control tower? What is the data that supports a 2 customs facility?" 3 Rather than giving it to somebody in Washington, 4 D.C., that I have no idea what their objective was, what 5 their purpose was. Whether they're looking for something to 6 put in the Appropriations Committee for two years from now, I 7 have no idea. But it was -- it was, you know, a unilateral 8 thing that -- that I think is inappropriate. And that's what 9 the planning committee is for. And that's -- you know, it's 10 a good mechanism -- it's a good forum in which to discuss 11 these kinds of things before we go -- go present them to 12 somebody outside of this -- this group of people in this 13 meeting right now. So, that was the purpose of it. And -- 14 and hopefully, you know, when we set up the meeting, we were 15 going to have everybody there, okay? So, we've -- we had 16 everybody there. The City wasn't there, so that was it. So 17 that was the reason we put this on the agenda today, just to 18 make sure we communicate that. That's the end of this item. 19 MR. KING: Anybody else have anything on that? 20 Mayor, I think you've already expressed your opinion. Corey? 21 MAYOR PRATT: It's on the record. 22 MR. WALTERS: Yeah, I do have one thing to say. 23 And this addresses the items that the mayor brought up about 24 the Airport Planning Committee meeting, and what you brought 25 up about the meeting with Senator Cornyn. One, I think 57 1 you're right, and as you've explained the purpose of the 2 Airport Planning Committee, why it was originally established 3 was for Airport Board members to meet with both the owners of 4 the airport, the City and the County. I think it was 5 ill-advised to have any meeting -- any Airport Planning 6 Committee meeting without representation from the City. I 7 think if the City couldn't be there, y'all should have 8 postponed the meeting so that they -- until they could have. 9 I think it's also incorrect procedure from the City 10 to have a meeting with Senator Cornyn's office to discuss 11 expanding the airport or any type of changes out here without 12 first discussing with their partner, the County, and also 13 without discussing with the airport, whether it be a Board 14 member or the Board themselves collectively, or our Airport 15 Manager. And I believe that's -- that was done by the City. 16 And I think that in the future, I would appreciate, and I 17 believe our president would appreciate if either the City or 18 the County, if they have discussions with -- you know, 19 certainly an office such as our U.S. Senator that represents 20 the state of Texas, that would have -- you know, have an 21 impact on our airport, that they first discuss it with the 22 Airport Manager and/or the Board, or bring it to the Airport 23 Manager first, and the Airport Manager will discuss it with 24 the Board. 25 MR. WOOD: I concur. 58 1 MR. LIVERMORE: I concur. Jack, I want to make 2 sure I understood what you said earlier. Did you say that 3 Senator Cornyn's office -- someone in his office or him was 4 the ones that brought up this extending the runway, the 5 control tower, and -- who brought that up? Where'd the idea 6 come from? 7 MAYOR PRATT: No, we were exploring -- I'm going to 8 use Corey's words, talking about data, gathering data. We 9 were -- we were putting out, exploring ideas, and sharing and 10 trying to get data as to what type of assistance was 11 available to the City and County for something like that, so 12 that if we came up with data that supported any of those 13 items, then we could come to the Airport Planning Committee 14 or the Board with data behind it. If the data shows that 15 it's not realistic, then it dies. Those are ideas. That's 16 what -- and we'll continue to do that. 17 COMMISSIONER MOSER: Senator Cornyn's staff is 18 going to provide the data? 19 MAYOR PRATT: About funding. About -- yeah. 20 COMMISSIONER MOSER: How about -- how about in 21 terms of needs and requirements? 22 MAYOR PRATT: Well, those -- that's other data, 23 too. 24 COMMISSIONER MOSER: That's the data that's 25 missing. 59 1 MAYOR PRATT: Well, Tom, we haven't got there yet. 2 MR. KING: Well, I don't know. I'm confused. 3 Fred, do you have any input on that? One of my former board 4 members who probably is -- let me see, he ran TexDOT 5 Aviation. 6 MR. VOGT: TDOT, Tennessee. The other T. 7 MR. KING: Basically a sister, the same thing; you 8 know how that works. What -- what's your feeling? When 9 funding comes from Washington down to TexDOT, TexDOT 10 distributes to us, I mean, should we -- 11 MR. VOGT: Coming from the -- you know, the F.A.A., 12 Bill, the justification for a runway extension, which, when I 13 was on this Board, we explored, and a control tower, that's 14 way, way, way out, somewhere never to be brought into the 15 circle. And it would be brought in by TexDOT coming to this 16 Board and asking for that extension, or that runway -- runway 17 extension or control tower. I don't see that coming to pass. 18 When you go directly to a senator or a congressman, you're 19 actually asking to go in there and put something in the 20 budget as a name place, and then F.A.A. has to run around and 21 try to justify it. So, it's kind of a back door to do that. 22 Your -- your job is to converse with TexDOT Aviation -- 23 TexDOT Aeronautics. So we killed that one, I thought, a long 24 time ago. 25 MAYOR PRATT: And we never talked about extension 60 1 of a runway. 2 MR. KING: Oh my gosh, Jack. 3 COMMISSIONER MOSER: It says it on the paper. 4 MR. KING: Look at our master plan. You never 5 talked to the senator about that? 6 MAYOR PRATT: That was never mentioned to the 7 staff. 8 MR. KING: To their staff. 9 COMMISSIONER MOSER: Did you give them a copy of 10 it? Did you give them a copy of the layout that says 11 7,400-foot, control tower, unmanned? 12 MR. TITAS: That was in the packet, but it was 13 never discussed. 14 COMMISSIONER MOSER: Did you give it to them? 15 Don't play semantics. 16 MR. KING: I think just what it comes down to -- 17 and, Todd, let me say -- look. Oh, gosh, this Board, a long 18 time ago, used to have two councilmen and two commissioners 19 on it, and someone in their right mind, thank God, at a 20 higher level than us took them off of the Board. And there 21 was a reason for that, and it had legal issues. It had -- 22 personally, I think it had moral issues, as far as I'm 23 concerned, and it had safety issues. 24 MAYOR PRATT: Steve, I agree with all of that. 25 MR. KING: Okay. 61 1 MAYOR PRATT: I'll just state that that was a good 2 idea. 3 MR. KING: I didn't form this planning committee; 4 Mayor Wampler formed this. And believe me, I -- I was 5 wondering why we were doing that and everything. But the 6 reason it was formed is because he didn't feel like the 7 County and City could talk to the Airport Board in the open 8 meetings and stuff, and therefore, maybe they could have the 9 planning committee get a little more -- Fred, is that 10 correct? It was formed so we could have a little more of a 11 -- a way to pass information -- you know, thoughts like, 12 "Hey, you know, there's a lady who has an airplane here, and 13 she wants to get a customs, maybe she wants to turn this into 14 a customs airport. She might be willing to put some money 15 up. Would y'all guys look at it?" So we started making 16 phone calls. We did all this stuff. We talked about it. We 17 got her some numbers and stuff, and she went, "I don't want 18 to pay that much money. I'll just stay in San Antonio at the 19 customs." So, I mean, that was what this thing did, so it 20 kind of was a way to just get information back and forth from 21 all three parties involved and everything. 22 And what it really did -- what I was hoping -- what 23 I hoped it did was it kind of kept people from, you know, 24 getting a rope out and turning into a cowboy and going and 25 doing stuff on their own, and then coming to us later on. Or 62 1 we get slammed by -- TexDOT calls us, and TexDOT calls Bruce 2 up and goes, "There's a senator's office calling us wanting 3 to know about some runway extension, if we could fund that 4 or, you know, if it's needed down there, if we funded it or 5 something like that," you know. Because, I mean, we don't 6 have a whole lot of interaction with Senator Cornyn. We have 7 a lot of interaction with TexDOT, and that's our funding 8 mechanism, and that's the people who approve our funding, and 9 that's the people who we want to stay in great graces with. 10 So, I mean, I just -- and I understand, Jack, maybe it was -- 11 it's a -- you know, it was good idea from your side of -- 12 point of view, but from our -- personally, from my side of 13 the view, my point of view on this thing is that, you know, 14 we -- we try to run as much stuff through the airport as we 15 can, so we can bounce it off of these four guys that work on 16 the Board, you know? 17 I mean, it -- just having meetings and talking 18 about stuff that is related to the airport that's not -- that 19 these guys aren't involved in I just think is unfair to them. 20 I mean, that's unfair to their service. They're volunteering 21 their time right now to come out here and do this, and they 22 don't know anything about what's going on. You know, we've 23 got -- we try to get rid of all these meetings that just 24 happen all of a sudden, you know. It's like I get an e-mail; 25 there's a meeting. "Oh, by the way, I'm sorry we didn't 63 1 include you on the original e-mail when we got the meeting 2 organized, but now we're going to put you on the e-mail, 3 because we forgot you're the Airport Board president." So, 4 you know, we're going to have a meeting, and we want to talk 5 about stuff that's all about the airport. We want to talk 6 about a museum, we want to talk about a paint thing, we want 7 to talk about a parking lot, we want to talk about some 8 internal road systems and stuff, and we'd like to visit with 9 you about that. Well, I don't know what that -- why isn't 10 that in here at the Airport Planning Committee? Or why is 11 that not here at the Airport Board meeting like Tom did? Tom 12 wanted to talk about the -- the museum stuff over there; he 13 put it on the agenda, came over here and started talking 14 about it. I don't know why everyone else can't talk about it 15 like that. I mean, do y'all -- am I wrong about that, Board? 16 I mean, is that -- don't you think that should be here? 17 COMMISSIONER MOSER: Let me add something to that. 18 I first heard about that, got an e-mail -- I think Jack and I 19 both got the e-mail at the same time from Barry; said that 20 Jerry Chen was going to be in town and he would like to meet 21 with us, and there was the things to discuss. And Barry's -- 22 Barry's question was, "Should the Airport Board be there?" 23 And I said, "Definitely. Steve King should be there, and he 24 can decide who else he wants there." And he said that -- did 25 I recommend that we invite the Judge? And I said absolutely, 64 1 include the Judge in that meeting, because that would be a 2 good idea. I didn't know what the purpose was, but if it 3 was -- president of Mooney International was here and they 4 wanted to meet with somebody from the City and the County, as 5 the e-mail said, I think that was appropriate. But 6 definitely -- and my response to him was, "Steve King should 7 be there," period. 8 MR. KING: I mean, the original e-mail -- 9 COMMISSIONER MOSER: So it was Mooney's -- Mooney's 10 request for the meeting. It was -- 11 MR. KING: I agree; I just don't understand. 12 "Jerry's in town next week. Hopefully we'll sign the latest 13 agreement while he's here. Is it possible to have a meeting 14 to further discuss a few items that are on our radar; museum, 15 paint facility, new product build location, car park, 16 internal roadway. Tom, if you want other Commissioners and 17 Judge in the meeting, that would be okay. I'm out of town 18 next week. Try to get an agreement on the attendees, time, 19 location if possible." I'm not mentioned in that e-mail. 20 COMMISSIONER MOSER: No. 21 MR. KING: Next e-mail, "Jack, can you make it? 22 Steve, oh, I'm sorry, I forgot you." 23 COMMISSIONER MOSER: I put you on the e-mail 24 because -- 25 MR. KING: Okay. They want to talk about the 65 1 contract that you guys are talking about, with -- with the 2 City and the County. No problem. I don't have a problem; 3 y'all go talk about that. But I don't understand -- 4 MAYOR PRATT: We don't have any idea what he wanted 5 to talk about. 6 MR. KING: It says right there -- 7 COMMISSIONER MOSER: But that was in -- 8 MR. KING: -- this is what he wants to talk about. 9 It says he wants to talk about a museum, paint facility -- 10 COMMISSIONER MOSER: That was Mooney's -- 11 MAYOR PRATT: That was Mooney's, but we don't know 12 anything other than what the e-mail says. 13 MR. KING: When you start talking to him -- you 14 don't understand. When y'all start talking to him in a 15 meeting, okay, and he says, "Oh, I tell you what I want. I 16 want this and I want that. I want this and I want that." 17 Then you're making decisions. You are talking about -- and 18 you are expressing your opinions of what these guys right 19 here need to discuss. 20 MAYOR PRATT: I think you're taking the wrong 21 concept. He wanted to talk to us. If there was anything 22 that we needed to bring back to the planning committee or to 23 the board, then we would have done that. 24 COMMISSIONER MOSER: Exactly. I agree with Jack 25 100 percent. 66 1 MR. KING: I'm not going to go to the meeting. 2 COMMISSIONER MOSER: It was Mooney's -- Mooney's 3 request to have a meeting. And the response to that was, 4 "The Airport Board needs to be there." That was -- 5 MR. LIVERMORE: Are we calling it a public meeting, 6 then, so we can be there? 7 MAYOR PRATT: No, he's talking about a 8 representative from the Airport Board. 9 MR. KING: Oh, okay. Okay, private meeting. 10 COMMISSIONER MOSER: That's what that was. So we 11 saw -- and I think Jack did, too -- we saw a shortcoming in 12 that request for meeting that didn't include the Airport 13 Board, and so therefore the response was, include -- include 14 the Airport Board representation in that meeting. I think, 15 you know, it was -- you know, I don't want to throw stones at 16 Mooney. It's a great thing that they're -- I don't have any 17 idea what an internal road thing is, but I was going to 18 listen. 19 MR. KING: I agree. I've had lunch with Jerry and 20 Tom and these guys, and you know what we talk about? 21 Airplanes. Oshkosh. We talk about all kinds of things. You 22 know, we never sit down and talk about what we want out of 23 the Airport Board. 24 COMMISSIONER MOSER: I think -- 25 MR. KING: We don't talk about that. I've had 67 1 lunch with him and Tom. You know, we had a -- that's not 2 what we talk about. We don't talk about things that are 3 brought up -- you know, things that could be brought up on 4 our agenda, put on the agenda items and stuff like that. 5 COMMISSIONER MOSER: You're talking to Mooney; 6 you're not talking to City and County. 7 MR. KING: I'm not talking to -- Tom, I'm just 8 saying -- I don't know. It doesn't seem right to me. But if 9 y'all guys think it's right, y'all guys talk. But would you 10 please, when you are through talking about it, would you 11 bring it back to the Airport Board so we can talk -- the 12 planning committee so the rest of these guys can actually 13 hear about it? Or at least two of them can. All right, any 14 more on that? Advertising policy, Item 4E. 15 MR. McKENZIE: Thanks. We discussed this at the 16 last Board meeting, and the three Board members that were 17 here concurred that they would like to lease the back of our 18 entrance sign on Airport Loop Road to AeroMax U.S.A. to 19 advertise his business. He has an office here in our 20 facility. It was brought up that we perhaps did not have an 21 advertising policy, which we do. And we also, at the 22 recommendation of the -- our board member, Bill Wood, added 23 one sentence to that, and we think that makes it a solid -- a 24 more solid advertising policy. And my request is that the 25 Board approve this so we can sell the back of this sign for 68 1 $1,200 a year to AeroMax, which is Harry Ingram here in our 2 facility, to advertise his business on the back of that sign. 3 And he's an aircraft broker and a certified appraiser -- 4 aircraft appraiser. 5 MR. LIVERMORE: I'm very much in favor of this. 6 Bill, do you want to -- 7 MR. WOOD: Yeah. I make a motion we approve the 8 policy. 9 MR. LIVERMORE: I second it. 10 MR. KING: Discussion? None being heard, all in 11 favor? 12 (The motion carried by unanimous vote, 5-0.) 13 MR. KING: Aye. Item 4F, minimum standards. I'd 14 like to see us, at some point -- I talked to Bruce about 15 this. I'd like to see us form a little committee or 16 something to at least go over the minimum standards. Let's 17 look at them. We haven't looked at them in 10 years, 18 probably, since they were done. I think that we would be 19 remiss if we didn't go through them and at least see what's 20 in there, because I don't think there's any member on this 21 Board, or anyone in this room that had anything to do with 22 making them. So -- 23 MR. McKENZIE: Ilse was here. 24 MR. KING: Ilse, were you here? 25 MS. BAILEY: Yeah. 69 1 MR. KING: Okay, Ilse. 2 MR. LIVERMORE: But she's leaving. 3 MR. KING: And she's leaving. 4 MR. WOOD: Do it before she leaves. 5 MR. KING: Before we have to actually -- before we 6 have to actually -- you know, I think it -- just think it's 7 good if we look at them, see what's actually in them. 8 COMMISSIONER MOSER: These are minimum standards? 9 Give me an example. Minimum standards of what? 10 MR. KING: Oh, gosh. 11 COMMISSIONER MOSER: I said an example. 12 MR. KING: What time Joey has to be open every day. 13 Isn't it -- 14 MR. KENNEDY: The minimum standards are guidelines 15 set by -- F.A.A. recommends that an airport have a set of 16 minimum standards which guarantees a fair and equal playing 17 field for all operators on the airport and so forth. 18 COMMISSIONER MOSER: Good. 19 MR. KENNEDY: These are guidelines, like if you 20 want to be a -- 21 COMMISSIONER MOSER: You answered my question. 22 MR. KING: Yeah, it encompasses -- covers 23 everything. 24 COMMISSIONER MOSER: Got it. 25 MR. KING: So, yes, we just need to look at them. 70 1 Does that sound like a good deal to y'all? Okay, we'll give 2 it -- get a couple of guys together; we can talk about it. 3 Airport Board terms. This is a great time for this. 4 (Laughter.) 5 MR. McKENZIE: Thank you. We have two board 6 members whose terms will expire 1 June of this year. And 7 I've spoken to both of them, and before this meeting, they 8 both agreed to serve. (Laughter.) 9 MR. KENNEDY: Give you a chance to reconsider. 10 MR. McKENZIE: So I'm asking -- 11 MR. LIVERMORE: Currently, there's two openings. 12 MR. McKENZIE: That's where we're going. Now that 13 we have a full board -- 14 MR. WALTERS: Is that why Fred showed back up? 15 MR. VOGT: No, Fred did not show up to go back on 16 the board. I'm here for Jeannie. (Laughter.) 17 MR. McKENZIE: Now that we have a full board, which 18 we did not have at our last meeting, if the board -- the 19 first move is to see if the Board agrees that Steve King and 20 Ed Livermore -- if they agree they would like to continue to 21 serve on the board, we'll need a vote on that. Then we can 22 take it to our two owners, the City of Kerrville and Kerr 23 County, for their concurrence on those motions. 24 MR. WALTERS: Like I said, Fred, your timing is 25 great. 71 1 MR. WOOD: I make a motion we approve them 2 re-upping. 3 MR. WALTERS: I second. 4 MR. KING: I would say that I'm not going to serve 5 any more after this. This is it; I'm done. This -- I've had 6 enough of this operation -- board. And it's been a great 7 experience, but if approved, I'm out of here. I won't 8 guarantee that I won't leave before it's over with, so you 9 can kind of go with that. I mean, my deal has always been 10 with this board to get us to zero, where we didn't have to 11 pay -- we don't have to get any money from Jack; didn't have 12 to get any money from Tom. We're very close. I mean, I'm 13 going -- we're going to have a budget workshop here in a 14 minute, and I'm trying to beat some more money out of them, 15 but it's -- I was actually hoping we could get to zero this 16 year and I could just say good-bye, have a nice day, y'all 17 enjoy the rest of your lives, and be like Fred, and not have 18 to come back here ever again. But I don't know if we're 19 going to get that done. So, I will -- I will agree to serve, 20 if approved, but just know that that's my goal. That's the 21 only goal I got, is to try to get the thing to -- you know, I 22 wanted to build T-hangars; we got that done, and I'm pretty 23 much kind of feeling like that that's the only thing left, is 24 to get to not getting money from you guys, so that's the 25 only -- what I'll be working towards. 72 1 MR. LIVERMORE: I share his goal of getting the 2 airport to revenue-neutral, maybe even a profit. And I enjoy 3 my service, and I'm probably a little longer term than maybe 4 Steve is. But -- but, actually, I think -- 5 MR. KING: Good for you. 6 MR. LIVERMORE: -- it's just two years, is all; 7 isn't it? 8 MR. McKENZIE: Mm-hmm. 9 MR. LIVERMORE: That's it anyway, so I'm 10 term-limited at that point. 11 MR. KING: Okay. 12 MR. McKENZIE: So, we need a motion and a vote. 13 MR. KING: I don't think we can vote on our own 14 deal. 15 MR. LIVERMORE: I'm going to abstain. 16 MR. WOOD: I made a motion already. 17 MR. WALTERS: I seconded. 18 MR. GRIFFIN: All in favor? 19 (The motion carried by unanimous vote, 3-0-2.) 20 MR. KING: 3-0, with two abstentions. 21 MR. VOGT: Aye. Just to make sure there's no hole. 22 (Laughter.) 23 MR. KING: Okay, recommendation for an Airport 24 Board attorney. 25 MR. McKENZIE: Yes, sir. As y'all know, Ilse's 73 1 leaving and going on a terrible assignment to Aviano, Italy. 2 And -- 3 COMMISSIONER MOSER: Hmm? 4 MR. McKENZIE: -- so I've been looking since late 5 fall, and I've -- the long and the short of it is, I would 6 like to recommend -- this is Patrick O'Fiel, who's -- most of 7 you have met him this morning. I would like to recommend him 8 for our attorney. 9 MR. GRIFFIN: If he still wants it. 10 MR. McKENZIE: If he still wants it. (Laughter.) 11 MR. LIVERMORE: Patrick, still here? 12 MR. O'FIEL: Still here. 13 MR. McKENZIE: To be the board's -- to be the 14 board's legal representative. And we'll have a memorandum of 15 understanding, as we do with Ilse, that if we're not 16 satisfied with him, we can dismiss him. If he's not 17 satisfied with us, or doesn't have time for this any more, we 18 can go our separate ways. It's just an agreement. It's what 19 we have with Ilse. 20 MS. BAILEY: And I've told Patrick that I'll be 21 available to, you know, answer any questions. So he has -- 22 he has me as an unpaid consultant. 23 MR. LIVERMORE: Patrick, are you familiar with -- 24 in general; I understand not specifically, but with the 25 general law that we operate under and the arrangements -- 74 1 MR. O'FIEL: It's going to be a new area for me. 2 You know, I don't specialize in municipal law. You know, I 3 am representing the City of Ingram right now, so getting into 4 it with them, but it's going to be a new area for me, so I 5 will have a learning curve that I don't expect y'all to pay 6 for. 7 MR. LIVERMORE: Okay. 8 MR. WOOD: As long as you got Ilse. 9 MR. O'FIEL: I'll have her on speed-dial. 10 (Laughter.) 11 MR. KING: In Italy. 12 MR. O'FIEL: Right. 13 MR. LIVERMORE: Five hours away or whatever. 14 MS. BAILEY: Right. 15 MR. KING: Put that in our budget. 16 MR. GRIFFIN: E-mails are cheap. 17 MR. WALTERS: I do have a question, just on 18 compensation. 19 MR. McKENZIE: The same as we're paying Ilse now. 20 Stays the same. 21 MR. WALTERS: Okay. 22 MR. KING: I thought that was very -- very 23 admirable, Patrick, to take that on at that rate. We can't 24 find any other attorneys that will do it for that. Thank you 25 very much. 75 1 MR. O'FIEL: Thank you. 2 MR. LIVERMORE: Well, do we need a -- 3 MR. KING: Need a motion for that. 4 MR. LIVERMORE: I so move. 5 MR. McKENZIE: Let's do it. 6 MR. KING: Second? 7 MR. LIVERMORE: I moved. 8 MR. KING: Somebody moved. 9 MR. GRIFFIN: I'll second. 10 MR. KING: Discussion? None being heard, all in 11 favor? 12 (The motion carried by unanimous vote, 5-0.) 13 MR. KING: 5-0. Thank you, Patrick. We appreciate 14 it. 15 MR. O'FIEL: Thank y'all. 16 MR. KING: Thank you very much, Ilse. 17 MR. WOOD: Thank you, Ilse. 18 MR. LIVERMORE: You're going to Italy? 19 MS. BAILEY: Yes, for three years. 20 COMMISSIONER MOSER: Three years? 21 MR. KING: General update? 22 MR. McKENZIE: I don't have anything right now. 23 We've had enough. 24 MR. KING: No update, really? I guess we'll -- 25 motion to adjourn? 76 1 MR. LIVERMORE: No, what about executive session? 2 MR. KING: Executive session. Who wants to go into 3 executive session? 4 MR. LIVERMORE: I do. 5 MR. KING: Do we have to go? 6 MR. LIVERMORE: If you don't want to -- 7 COMMISSIONER MOSER: You can. 8 MAYOR PRATT: You got to make a motion and you got 9 to have a second. 10 MR. KING: What would that be under? Could you 11 explain to me which item? 12 MR. LIVERMORE: Well -- 13 MR. KING: We have a bunch you can pick from. 14 MR. LIVERMORE: Mooney roof; just choose that one. 15 Future use of Mooney buildings, that sort of thing. 16 MR. KING: That one. Is that it? 17 COMMISSIONER MOSER: Steve, you can also -- you can 18 also go to your workshop, and then just -- and reconvene this 19 for executive session after that. 20 MR. KING: Want to do that? 21 MR. McKENZIE: I think that would be a good idea, 22 because we're going to have a reception for Jeannie the last 23 few minutes here. 24 MR. KING: Can we do that, Ed? Let's do that 25 first. We'll just -- we'll -- what do you call it? 77 1 MS. BAILEY: Recess. 2 MR. KING: Recess. We'll recess the meeting -- 3 thank you, Mayor. Recess the meeting and bring it back after 4 our Airport Board budget meeting. 5 (Recess taken from 9:57 a.m. to 10:21 a.m., and a budget workshop was held, the transcript of which 6 is contained in a separate document.) 7 - - - - - - - - - - 8 MR. KING: Okay. The meeting of the Kerr County -- 9 Kerrville-Kerr County Joint Airport Board, March 16th meeting 10 was in recess. I'm going to open it back up. We're going to 11 go into executive session on Item 4C, under Sections 551.071 12 and 551.072 and 551.074 to 551.087. And -- 13 MAYOR PRATT: You need a motion on that, Steve. 14 MR. KING: Yeah, I think I need a motion to go into 15 executive session. 16 MR. LIVERMORE: I so move, to go into executive 17 session. 18 MR. KING: Seconded by? 19 MR. GRIFFIN: I will. 20 MR. KING: Seconded by Mr. Griffin. All in favor? 21 (The motion carried by unanimous vote, 5-0.) 22 MR. KING: 5-0. All right, we'll be in executive 23 session, and it shouldn't take very long. 24 (The open session was closed at 11:22 a.m., and an executive session was held off the record.) 25 - - - - - - - - - - 78 1 MR. KING: Okay, we went into executive session at 2 11:24; we're out of it at 11:41. We took no action in 3 executive session, and we will take no action on Item 4C. 4 Motion to adjourn? 5 MR. LIVERMORE: So moved. 6 MR. WOOD: Second. 7 MR. KING: Seconded by Mr. Wood. All in favor? 8 (The motion carried by unanimous vote, 5-0.) 9 MR. KING: Everyone. 10 (Airport Board meeting adjourned at 11:42 a.m.) 11 - - - - - - - - - - 12 13 STATE OF TEXAS | 14 COUNTY OF KERR | 15 I, Kathy Banik, official reporter for Kerr County, 16 Texas, do hereby certify that the above and foregoing is a 17 true and complete transcription of my stenotype notes taken 18 at the time and place heretofore set forth. 19 DATED at Kerrville, Texas, this 18th day of March, 2015. 20 21 _______________________________ Kathy Banik, Texas CSR # 6483 22 Expiration Date: 12/31/16 Official Court Reporter 23 Kerr County, Texas 700 Main Street 24 Kerrville, Texas 78028 Phone: 830-792-2295 25