1 2 3 KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 4 Regular Meeting 5 Monday, March 17, 2014 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 Bill Wood Corey Walters, Vice-President 13 Ed Livermore Kirk Griffin 14 15 AIRPORT BOARD STAFF PRESENT: Bruce McKenzie, Airport Manager 16 Carole Dungan, Executive Assistant 17 COUNTY STAFF PRESENT: 18 Tom Moser, Commissioner Pct. 2 Jonathan Letz, Commissioner Pct. 3 19 James Robles, Assistant Auditor 20 CITY STAFF PRESENT: 21 Jack Pratt, Mayor Sandra Yarbrough, Finance Director 22 23 VISITORS: Ilse Bailey, Airport Board attorney 24 Shawna Fahrenthold, Alamo Community College District Jonas Titas, Kerr Economic Development Corporation 25 2 1 I N D E X March 17, 2014 2 PAGE 3 CALLED TO ORDER 4 1. VISITORS FORUM 3 5 2. KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD MEMBER FORUM 3 6 3. CONSENT AGENDA 7 3A Approval of February 2014 Board Meeting Minutes 3 8 4. DISCUSSION AND POSSIBLE ACTION 4A Monthly Financials - February 4 9 4B Alamo Community College District possible new 10 lease agreement 9 11 4C On-call contract for airport consulting and engineering 30 12 4D FY-15 draft budget 35 13 4E Lease of Mooney Building 19 (Paint Hangar); 14 negotiation & possible execution of new lease agreement (Executive Session as needed) 36 15 4F Brinkman Hangar - Discussion, negotiation & 16 possible execution of new lease agreement (Executive Session as needed) -- 17 4G Mooney International lease agreement 18 (Executive Session as needed) 39 19 6. EXECUTIVE SESSION 68 20 5. INFORMATION AND DISCUSSION: 5A General Update 68 21 7. ADJOURNMENT 70 22 23 24 25 3 1 On Monday, March 17, 2014, 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 the meeting to order of the 8 Kerrville/Kerr County Joint Airport Board, March 17, 2014. 9 Visitors forum. Any person with action -- any person with 10 business not scheduled on the agenda may speak to the board. 11 No action may be taken; it has to be posted for 72 hours. 12 Visitors are asked to limit their presentations to three 13 minutes. Anybody? Item 2; Kerrville/Kerr County Airport 14 Board forum. At this time, any member of the Airport Board 15 may speak to the board. It cannot be on the -- subject 16 matter cannot be on the agenda. No formal action can be 17 taken, because the Open Meetings Act requires it be posted 18 for 72 hours. If formal action is required, item will be 19 placed on the agenda for a future meeting. Anybody? 20 Consent agenda, Item 3. All items -- all listed 21 items within the consent agenda are considered routine by the 22 board and will be enacted in one motion. There will not be a 23 separate discussion of items unless a board member or citizen 24 requests it, in which event each item will be removed from 25 the general order of business and considered in its normal 4 1 sequence. Approval of the February '14 minutes. Anyone have 2 anything on these minutes? 3 MR. LIVERMORE: I was not at the meeting, so I 4 shouldn't make the motion. 5 MR. WALTERS: I'll make a motion that we approve 6 the minutes. 7 MR. KING: Mr. Walters. Seconded by? 8 MR. GRIFFIN: Second. 9 MR. KING: Discussion? None being heard, all in 10 favor? 11 (The motion carried by unanimous vote, 4-0.) 12 MR. KING: Four-zero. Mr. Wood is absent today, so 13 we're voting with just four people. Discussion/possible 14 action. Monthly financials, February. James? 15 MR. ROBLES: Morning, everyone. 16 MR. LIVERMORE: Morning. 17 MR. ROBLES: We got February here. Page 1, total 18 cash and receivables for Fund 47, 405,559.20. Payables at 19 95,047.50. Page 2, total revenue and expenses in fund 20 balance, 310,511.70. Total liability in equity, 405,559.20. 21 Page 3, the monthly revenue, 38,960.69. Page 4, expenditures 22 for the terminal, 14,092.04. Page 5, personnel, supplies, 23 maintenance, professional services. Total can be seen on 24 Page 6, 14,773.82. 25 MR. LIVERMORE: I have a question. 5 1 MR. ROBLES: Yes, sir? 2 MR. LIVERMORE: I wonder why -- this may not be -- 3 this is really more probably to Bruce. I wonder why fuel 4 sales seem to be running so far behind last year. 5 MR. McKENZIE: I don't know the reason. It's 6 just -- the traffic has not dwindled exponentially; it's been 7 about the same. Just not buying enough fuel. 8 MR. KING: Jet fuel or av? 9 MR. McKENZIE: After last month, it started going 10 up. 11 MAYOR PRATT: Compared to other airports in the 12 area? 13 MR. McKENZIE: Oh, yeah. All fuels, everything. 14 MAYOR PRATT: Is it -- 15 MR. GRIFFIN: To answer your question, no, it's 16 very competitive to all the -- 17 MR. McKENZIE: We're competitive. 18 MR. KING: You know, is it jet fuel or avgas? 19 MR. McKENZIE: Jet fuel, mainly. 20 MR. KING: Is it down? 21 MR. McKENZIE: It's not down too much. It's been 22 remaining flat the last several months. It hasn't gone up or 23 down much the last several months. It's on the last 24 quarterly report as well. 25 MR. WALTERS: I think Joey reported that to us last 6 1 month. 2 MR. McKENZIE: Month or two ago. 3 MR. WALTERS: Month or two ago. 4 MR. KING: That fuel was down a little bit? 5 MR. WALTERS: No, that it was flat. 6 MR. McKENZIE: It's pretty flat. 7 MR. KING: Where did you -- where were you coming 8 up with the concern over this? Who was that that voiced 9 that? 10 MR. LIVERMORE: I just -- just wondered. 11 MR. KING: Is it down? 12 MR. LIVERMORE: Yeah, I think so. Unless I'm 13 reading the numbers wrong. Year-to-date revenue, 9,600, 14 versus 13,000. Pretty good decrease. 15 MR. McKENZIE: And also we might not have received 16 our last check from Avfuel. 17 MS. DUNGAN: We're always two weeks behind. 18 MR. LIVERMORE: Well, but we were two weeks behind 19 a year ago. 20 MR. CARLSON: Right. 21 MR. KING: Can you get -- we used to have a deal 22 where -- I may not be seeing it. Joey gave us running 23 totals, or we had some running totals versus last year. 24 MR. McKENZIE: Yes, sir. 25 MR. KING: On a monthly basis. 7 1 MR. McKENZIE: We put them in a quarterly report on 2 a graph. 3 MR. KING: Okay. 4 MR. McKENZIE: The Mayor asked us to start doing 5 that last year, and we did. 6 MR. KING: What did it show? 7 MR. McKENZIE: It's showing almost -- it just ebbs 8 and flows, but it's basically been flat over the last -- 9 MR. KING: So we should end up with the same amount 10 of money at the end of the year? 11 MR. McKENZIE: When we end up at the end of the 12 year, we're probably going to end up with the same amount of 13 money, yeah. 14 MR. KING: Okay. All right. I think that's 15 something important to watch, because we have to be very 16 cognizant of what -- you know, if our customers are not 17 purchasing gas here, we need to find out why they're not 18 purchasing gas here. Because it's easy not to purchase 19 gas -- you know, a lot our people are in the state, and it's 20 just as easy to purchase in Houston as it is in Kerrville, 21 Texas, when you're flying over here. So... 22 MR. McKENZIE: And we're -- and the F.B.O. has cut 23 the self-service fuel considerably. 24 MR. WALTERS: I wouldn't be surprised, though, if 25 you looked at our budget from a year ago compared to, you 8 1 know, that, you're going to see that same spread. Because I 2 would imagine, you know, that you're going to see a big 3 pickup that will happen in the spring and the summer, and 4 then we'll get back to our numbers. 5 MR. KING: Could be. 6 MR. LIVERMORE: Very likely. I mean, sounds 7 reasonable, but I was just wondering. 8 MR. KING: I agree. Okay. We just need to monitor 9 that. 10 MR. ROBLES: Page 7, utilities for February in the 11 terminal, 2,068.37. Total expenditures for February, 12 30,934.23. 13 COMMISSIONER MOSER: Hey, James, just a 14 clarification, probably a technical thing. On the bottom of 15 Page 7, the revenue over/under, year-to-date is 37,000. It 16 shows unencumbered balance the exact same amount, but it's a 17 negative. What's -- I know that's something -- 18 MR. ROBLES: Yeah, the amount that you're over 19 that, that you're able to spend with -- you know, getting 20 back to zero. 21 COMMISSIONER MOSER: Oh, I see, got you. I 22 understand. Good deal, thank you. 23 MR. ROBLES: Page 8, capital account. We have a 24 fund balance of 105,887.33. Page 9 and 10 is the revenue and 25 expenditures. We have no activity for this month, other than 9 1 60 cents of interest. We should probably expect to see that 2 reimbursement from TexDOT coming in in the next month. We 3 had a mixup with checking account numbers; I believe it went 4 to the City. 5 MAYOR PRATT: We spent it. You don't get it back. 6 (Laughter.) 7 MR. McKENZIE: I got the check; Sandra gave it to 8 me. 9 MR. ROBLES: All right. Page 11 shows a fund 10 balance of 45,083.64. 11 MR. KING: Any questions? 12 MR. McKENZIE: Thank you, James. 13 MR. KING: Thank you very much, James. Any 14 questions on that? Motion to approve? 15 MR. WALTERS: I'll make a motion that we approve 16 the financials for February. 17 MR. KING: Mr. Walters. Second by? 18 MR. LIVERMORE: I'll second. 19 MR. KING: Mr. Livermore. Any discussion? None 20 being heard, all in favor? 21 (The motion carried by unanimous vote, 4-0.) 22 MR. KING: Four-zero. Alamo -- Item 4B, Alamo 23 Community College District, possible new lease agreement. 24 Shawna? 25 MS. FAHRENTHOLD: Morning. 10 1 MR. KING: How are you doing? 2 MS. FAHRENTHOLD: I'm well. I presented last month 3 about what, you know, we had spent in upgrades to the 4 building. Since that time, I got the cost that it's going to 5 take for the ADA things that we're going to have to complete 6 there to make the building ADA-compliant, and in front of the 7 building parking-wise and that, and the cost on that is going 8 to be right around $10,000 to make it compliant with the 9 regulations and requirements. So, it was put back on the 10 agenda just to see if we could discuss it further, you know, 11 and executing a new one or extending the current lease. 12 MR. McKENZIE: Ilse prepared another lease similar 13 to the one that they've had the last two years, and it's -- 14 if you want to do another two-year lease, that's entirely up 15 to the board. We had a two-year lease at one dollar. 16 MS. BAILEY: Yes, sir. I just -- I just updated it 17 with a couple of minor tweaks. The dates changed to 2014 18 through 2016, at a dollar again, lease. So, if you want to 19 approve this lease, then we could go ahead and execute that. 20 MR. WALTERS: I think you had mentioned before that 21 you're going to increase your marketing campaign to try to, 22 you know, get more use out of the building as well? 23 MS. FAHRENTHOLD: Right. We're going to increase 24 marketing. That's -- this is a really busy week for us. We 25 were off on spring break last week, so this is a really busy 11 1 week for me, I should say, and then next week that's going to 2 be my focus, is to start marketing more. I've taken out ads 3 in the paper. We are -- you know, we're going to do social 4 media, Facebook. We're going to do, you know, what we can to 5 get the word out that we're there. We have -- we have enough 6 students right now to do another class after we're done with 7 the high school class. But I got word since I met with you 8 guys last that my instructor that I have is going to retire 9 for health reasons, and we have someone else lined up. We've 10 just got to get them through the hiring process. So, we 11 might have a little gap here trying to get us back on top of 12 the game, but we -- but we do have people calling who are 13 going -- we were even off on spring break last week, and I 14 came in this morning and asked my secretary if we had many 15 calls on the voicemail, and she said, you know, that we'd had 16 some. There was one for somebody who wanted welding. So -- 17 so we're still getting calls, and we've still -- we've got 18 people who are interested, but we do -- we do have to market 19 more, and we will do that. 20 MR. LIVERMORE: What's the goal for -- I mean, I'm 21 entirely in favor of your program and the lease, so don't 22 take my question as being critical, but what is the goal for 23 how many -- how many people -- and not necessarily young 24 people, are they? Just people -- are we trying to train a 25 year? What I'm reading, I sent you an article a month or so 12 1 ago, Bruce, that -- 2 MR. McKENZIE: I did get that. 3 MR. LIVERMORE: -- there's apparently welding, 4 particularly in the oil -- oil tanks. 5 MS. FAHRENTHOLD: When we did the grant -- when we 6 started working on the grant for Fox Tank, we -- my 7 supervisor wrote the grant, and she said in her research that 8 there was a shortage of, like, 300,000 welders across the 9 nation. 10 MR. LIVERMORE: Yeah. 11 MS. FAHRENTHOLD: So, there's jobs. You know, our 12 goal originally was to train people that were going to work 13 here locally. There's, you know, several welding places 14 locally, so that they could get back in the community. I 15 said last month, and I'll say again that, you know, some of 16 these people are going to Eagle Ford Shale and working, 17 'cause they're making more money, but they're coming home to 18 their families on the weekend, and they're spending their 19 money here, so we're still reaping some of that benefit, even 20 though they're not working necessarily under our wings here. 21 You know, our goal is to train as many people as we can get 22 through the door. You know, we don't have a limit. I mean, 23 I'm limited by class, because I can only have 10 welders. I 24 can only have 10 students at a time. But -- but if I can -- 25 if I can have the students lined up, I would run it 13 1 consecutively until we ran out of... 2 MR. LIVERMORE: So the issue, then, is -- is 3 making -- making it more aware -- 4 MS. FAHRENTHOLD: Right. 5 MR. LIVERMORE: -- to the broader population, and 6 to encourage more and more people to seek that type of 7 training. Is there anything that is keeping people from 8 seeking that type of training? 9 MS. FAHRENTHOLD: Sometimes -- and this something 10 that we ran into late last year, was the funding. You know, 11 they're not able to come in and say, here's, you know, $620 12 for me to take this 80 hours of training. And the schools 13 that -- colleges can use what we call TPEG funds, which is a 14 Texas Pell grant fund, but they were out of funding, and so 15 we weren't able to give people financial aid to help them, 16 and so we -- that -- that caused us a lot -- because a lot of 17 people just can't come up with $620 to pay. And so -- 18 MR. LIVERMORE: Are we working -- what have we done 19 to solve the problem? 20 MS. FAHRENTHOLD: I've talked to some -- some 21 groups. We do have TPEG funding now through colleges; 22 there's some funds designated for us for people who qualify. 23 MR. LIVERMORE: Mm-hmm. 24 MS. FAHRENTHOLD: Someone who was in a meeting is 25 meeting with a church group that may be interested in 14 1 providing some scholarships to some of the these students, 2 and just exploring, you know, what we can to help them find 3 funding to take the class. We do -- we do payment plans. 4 We've come up with, you know, all -- all ways of trying to 5 make the burden easier for someone to take the course. 6 MAYOR PRATT: How much is designated for the 7 training there from those funds? 8 MS. FAHRENTHOLD: From those funds? I don't know 9 the exact amount. They told me that they -- that they 10 earmarked us some money, and I can find that out and let you 11 know. 12 MAYOR PRATT: That would be important. Ed, in 13 answer to your question a little bit more, -- 14 MR. LIVERMORE: Yes, sir? 15 MAYOR PRATT: -- when it was first started with Fox 16 -- for Fox Tank, -- 17 MR. LIVERMORE: Mm-hmm. 18 MAYOR PRATT: -- Fox Tank was paying for the 19 tuition for that training. What they found out is they paid 20 for the tuition, and they ended up going somewhere else. 21 MR. LIVERMORE: Mm-hmm. 22 MAYOR PRATT: So Fox Tank doesn't use that training 23 as much. 24 MR. KING: Was there any -- Shawna, is there any 25 funding available in the state for Fox Tank, as far as a -- a 15 1 tax credit or something like that? Or some sort of credit 2 for hiring one of your employees? 3 MS. FAHRENTHOLD: The grant was originally written 4 with Fox Tank as a partner. 5 MR. KING: Right. 6 MS. FAHRENTHOLD: That we did, and we were given 7 "X" amount of money to -- to provide training. The 8 stipulation in that was that Fox Tank had to hire the person. 9 They had to be an employee of Fox Tank, and then the training 10 was then covered by the grant. And we -- you know, we worked 11 with Mr. Fox, and he told us -- you know, 'cause he's the 12 expert in that field of welding, and I'm not -- that, you 13 know, 80 hours was a good base training for someone to learn 14 the skill, and then there was some on-the-job training that 15 could be done. 16 MR. KING: Mm-hmm. 17 MS. FAHRENTHOLD: And we were working with 18 Workforce Solutions, and they would -- if the person 19 qualified, they would pay half of the person's -- 20 MR. KING: That's what I was getting at. 21 MS. FAHRENTHOLD: -- wage to do on-the-job 22 training. 23 MR. KING: Right. 24 MS. FAHRENTHOLD: So, having said that, the grant 25 was written that he had to hire the employees. We would 16 1 train them for the two weeks; then they could go in and do 2 on-the-job training. 3 MR. KING: Mm-hmm. 4 MS. FAHRENTHOLD: Then he started working on his 5 API certification, and so we were on hold waiting on that, 6 and then when he got that, I guess, you know, his demand for 7 tanks was so high that they couldn't release people to come 8 get trained. And so, you know, we were kind of in a holding 9 pattern waiting. You know, I didn't want to start a class 10 and then Fox Tank need me to train people, so we were kind of 11 in limbo for a little bit. You know, and now we're just -- 12 we're just setting up the classes as we can and training 13 people as we can. 14 MAYOR PRATT: She said that the basic thing 15 there -- the word "basic." They provide the basic training 16 for welding. But without that API certification, guys can't 17 weld on those tanks. 18 MR. KING: Right. 19 MR. LIVERMORE: Yeah. 20 COMMISSIONER MOSER: Fox Tank does get tax 21 abatement. 22 MR. KING: I know. That was my interest in the 23 deal, was that, I mean, we -- we obviously didn't have 24 anything to do with it, but the City and the County 25 negotiated some pretty good deals with those guys over there. 17 1 COMMISSIONER MOSER: Right. 2 MR. KING: That -- I don't know. It just seems 3 like that -- 4 MS. FAHRENTHOLD: And we found, too, in talks with 5 him that when he was hiring people, he was hiring experienced 6 welders. 7 MR. KING: Sure. 8 MS. FAHRENTHOLD: Because that's what he needed. 9 And I understand that, you know. But, you know, your base of 10 experienced welders in a smaller area is not -- I mean, at 11 some point, you're going to have to get some people who are 12 not as experienced. 13 MR. LIVERMORE: Replenish. 14 MR. KING: Sure. Sure. 15 MAYOR PRATT: What other training do you do out 16 there? 17 MS. FAHRENTHOLD: What? 18 MAYOR PRATT: What other training do you do out 19 there? 20 MS. FAHRENTHOLD: Welding. 21 MAYOR PRATT: That's it? 22 MR. KING: Welding, yeah. 23 MS. FAHRENTHOLD: I have to buy -- purchase 24 equipment to do other types of training, and as I explained 25 to the board last month, I spent, you know, last year's 18 1 budget basically on getting that building -- 2 MR. KING: Yeah. 3 MS. FAHRENTHOLD: -- usable. 4 MR. LIVERMORE: Well, there's -- you know, it's my 5 recollection that we set this up, just like you said, for a 6 local impact, a direct local impact. But, you know, there's 7 kind of a broader purpose here, too. The money is -- comes 8 -- the ultimate funding is coming from the state of Texas 9 somehow, isn't it? 10 MS. FAHRENTHOLD: Right now -- 11 MR. LIVERMORE: Mm-hmm. 12 MS. FAHRENTHOLD: Right now, the students who come 13 through, some get some funding and some are self-pay. 14 MR. LIVERMORE: I see. 15 MR. KING: What about the Griffin scholarship? 16 MS. FAHRENTHOLD: The Griffin -- and I checked on 17 that. 18 MR. KING: Did you check on that? 19 MS. FAHRENTHOLD: I did, and it is totally 20 academic. It is totally academic, and we're -- I have asked 21 someone to speak with him in regards to maybe changing that 22 to -- to some C.E. type funding. 23 MR. KING: Or maybe just setting aside -- I don't 24 know what that total scholarship is a year. It's a 25 considerable amount. 19 1 MS. FAHRENTHOLD: It's big. 2 MR. KING: It's a large amount. And I was on the 3 committee when that was established, and I believe -- I mean, 4 if we could, you know, just set aside $20,000, $10,000, I 5 mean, it's a large number, as I remember. 6 MS. FAHRENTHOLD: It's the largest -- 7 MR. KING: Have y'all tried to talk to -- 8 MS. FAHRENTHOLD: I have not personally. I -- I'm 9 not -- 10 MS. FAHRENTHOLD: He has someone else handling it, 11 doesn't he? 12 MS. FAHRENTHOLD: Yes. 13 MR. KING: Who took over from him? 14 MS. FAHRENTHOLD: The wife of... 15 MR. KING: The one who got -- 16 MS. FAHRENTHOLD: Yes. And I can see his face, but 17 for the life of me, his name is not going to roll off my 18 tongue. 19 MR. KING: I think that would be -- 20 MR. WALTERS: Are you talking about Richard's wife? 21 MR. KING: No. 22 MS. FAHRENTHOLD: John -- John Spikes. Virginia 23 Spikes. The scholarship is handled by the Alamo Colleges 24 Foundation. So -- and I've been told that I can't directly 25 go straight to him; I have to kind of go through the 20 1 foundation to -- 2 MR. KING: Okay. 3 MS. FAHRENTHOLD: -- to do that. And so we'll -- 4 we'll do our best to see if we can... 5 MR. KING: I just -- 6 MS. FAHRENTHOLD: It would be nice. 7 MR. KING: I think if you maybe came at it from the 8 angle of, you know, we're not asking for the right to any of 9 that money being moved around to anyplace, but maybe 10 stipulating, you know, $20,000 or $25,000 on a trial basis to 11 see if that actually would promote the program. 12 MS. FAHRENTHOLD: Right. 13 MR. KING: I don't see why he would have a problem 14 with that. 15 MS. FAHRENTHOLD: Yeah. 16 MR. KING: Because I know in the discussions I've 17 had with him, it's all about, you know, educating the local 18 -- the local youth, is the reason it was all established, was 19 to give the local youth an opportunity to go to college or 20 learn a skill. 21 MS. FAHRENTHOLD: Right. And, you know, as I say a 22 lot, that not everybody's college material. 23 MR. KING: No, I know. Exactly. 24 MS. FAHRENTHOLD: Some people just need a technical 25 skill, and they can make as much money as some people who 21 1 have college degrees. And -- but then they eventually come 2 back to me, it seems like. You know, they go out and work in 3 the world, and then they decide that they need an Associate's 4 or a Bachelor's to move on up, and so they come back. But -- 5 MR. KING: Okay. 6 MS. FAHRENTHOLD: -- they might start with a 7 technical. 8 MR. KING: Okay. 9 COMMISSIONER LETZ: If I can ask a question, is 10 there a -- a number of students you need to go through the 11 program for the program to remain viable? Does that make 12 sense? That's kind of, I think -- 13 MR. LIVERMORE: Yes. 14 COMMISSIONER LETZ: Kind of where Ed was going. 15 MS. FAHRENTHOLD: Well, fortunately, we -- because 16 of the grant, we were able to purchase -- 17 COMMISSIONER LETZ: Right. 18 MS. FAHRENTHOLD: -- all of the equipment through 19 there. 20 COMMISSIONER LETZ: Right. 21 MS. FAHRENTHOLD: And at this -- I don't -- I don't 22 have to have 100 students go through it to make it viable. I 23 mean, as long as we have a class of -- the minimum is six, 24 that the payment that they make for those covers the cost of 25 the instructor. And as long as we cover the cost of the 22 1 instructor and some of the utilities, we're happy. 2 COMMISSIONER LETZ: Okay. 3 MS. FAHRENTHOLD: So, I mean, there's no -- there's 4 no concern about the program going away, as far as we're 5 concerned. I mean, it'll be there, and we will find a way to 6 make it work. Hopefully we'll have more students -- 7 COMMISSIONER LETZ: Right. 8 MS. FAHRENTHOLD: -- go through, but if we don't, 9 it'll still be available. 10 MAYOR PRATT: Your minimum is six? 11 MS. FAHRENTHOLD: The minimum in a class is six. 12 COMMISSIONER MOSER: That's in a class. 13 MAYOR PRATT: Yeah, I understand. And then that's 14 an eight-week class? 15 MS. FAHRENTHOLD: It's 80 hours. And it depends 16 how we -- if we do it in the daytime or if we do it in the 17 evenings, or -- 18 MAYOR PRATT: So, what does that normally run? I'm 19 trying to get an annual number. 20 MS. FAHRENTHOLD: Normally run? We've been doing 21 them in two-week classes. 22 MAYOR PRATT: Okay, you do two-week classes, so six 23 times 26, that would -- assuming they went consecutive. 24 MR. KING: Potentially, yeah. 25 COMMISSIONER MOSER: But it sounds like her 23 1 operating costs -- and that's the real thing, and I think 2 it's what Jonathan said. Operating costs is the function of 3 the students and the professor, so when you get six people, 4 you turn it on, and if not, the capital equipment's sitting 5 there. Go back to the thing you mentioned about the ADA and 6 the $10,000. What's required on that, or where -- what's 7 needed to be done on that? 8 MS. FAHRENTHOLD: We have to change the handling on 9 the doors, and it has to be lever type. That -- and I'm real 10 sad about this, but the little flower bed that's right in 11 front can't be there. It has to -- we'll have to jackhammer 12 all of that out, re-cement that. There's going to have to be 13 poles and placards -- you know, signs set for that. We may 14 have to do some leveling of the ground there. 15 COMMISSIONER MOSER: Is this something that Alamo 16 College is prepared to do? 17 MS. FAHRENTHOLD: Yes, we're prepared. 18 COMMISSIONER MOSER: That's the question. You're 19 not coming to the -- 20 MS. FAHRENTHOLD: No, no. 21 COMMISSIONER MOSER: -- board and -- 22 MS. FAHRENTHOLD: I'm not asking for that. 23 COMMISSIONER MOSER: Okay. 24 MS. FAHRENTHOLD: What I came and asked for is -- I 25 didn't want to spend the $10,000, and then not have an 24 1 execution of a lease or an extension of a lease. 2 MR. KING: Sure. 3 MS. FAHRENTHOLD: After having already spent the 4 140-plus thousand for the repairs on the building. So, you 5 know, there's some interior stuff, you know. We did make the 6 bathroom ADA-compliant in the original stuff, but there's 7 just some other stuff that we have to make compliant. 8 COMMISSIONER MOSER: Okay. 9 MR. KING: Shawna, I think it's a great program. I 10 mean, I think everybody else understands this doesn't cost 11 Kerrville or Kerr County a nickel. I mean, there's nobody 12 throwing any money into this. Alamo Community, once they 13 provide a facility on any of their -- any of their programs, 14 they provide the professors, they provide the electricity, 15 they provide the -- they provide everything. It doesn't 16 cost -- you know, nobody's coming out of their pocket for 17 anything on this thing, other than we are providing the 18 building for 50 cents a year. Which -- but, I mean, so it's 19 -- it's a win-win deal if we can get people in the program. 20 You know, all would I ask if we do -- if we do go ahead and 21 renew the lease is that if the program doesn't look like -- 22 if it's waning or slowing down, looks like it's not going to 23 make it or something like that, let us know so we -- my worst 24 fear is the building sits there for a year or two, and nobody 25 uses it for a year, and it just sits there and nothing 25 1 happens to it. 'Cause that's what happens to buildings; they 2 don't -- 3 MR. WALTERS: That's what I was going to ask Ilse 4 about. If they abandon the building, or they abandon the use 5 of the building, do we have the right to terminate? 6 MS. BAILEY: It does have a termination provision 7 in the contract. Let me look at it. 8 MR. WALTERS: I've got one other other question. I 9 mean, on a two-year lease -- I don't have a problem with a 10 two-year lease; I think it's a great program that y'all are 11 doing as well, but does it make a difference whether you have 12 a one-year lease or a two-year lease in terms of your 13 hiring -- training people? I mean, do you -- you know, if 14 somebody says, "Well, hey, how do I know you're going to be 15 here, and I'm coming over to train your people and you're 16 hiring me, how do I know that you're going to go on?" 17 MS. FAHRENTHOLD: We're hiring instructors adjunct, 18 so it's not -- it's not full-time. It's not something that I 19 would have to say, you know, we're hiring you full-time. 20 MR. WALTERS: Okay. 21 MS. FAHRENTHOLD: And we're going to have the 22 program for this long. The benefit of having the adjuncts is 23 they're on an as-needed basis. 24 MR. KING: Yeah. So, doing a one-year lease? 25 MR. WALTERS: That's what I was just thinking. If 26 1 we didn't have a right in there to vacate -- you know, or to 2 terminate because they vacated -- 3 MS. BAILEY: Article 12 has a whole bunch of 4 provisions regarding default, one of them being that they 5 abandon the premises for 60 days or conduct other business, 6 then we shall -- that terminates their rights under -- 7 MR. WALTERS: So, we do -- 8 MS. BAILEY: Yes. 9 MAYOR PRATT: Is that abandonment of the premises, 10 or abandonment of the use of the premises? 'Cause they got 11 their capital equipment in there. 12 MS. BAILEY: It's abandonment for a period of 60 13 days of the conduct of its business activities at the airport 14 shall terminate its rights under the agreement. 15 MAYOR PRATT: Activities. That's the key. 16 MR. KING: I mean, you guys have spent $145,000 on 17 a building that we had left abandoned for five years, six 18 years. You know, it was growing weeds around it, is all it 19 was doing, so we appreciate your -- we appreciate you guys 20 coming and doing a capital improvement on the building. I 21 would -- 22 MR. WALTERS: I would say -- 23 MR. KING: I would ask for a motion to approve 24 another lease on this for two years. 25 MR. WALTERS: I make the motion that we approve 27 1 another lease for two years. 2 MR. LIVERMORE: I second that motion. 3 MR. KING: Any discussion? 4 MR. LIVERMORE: I think the main thing is that -- 5 yeah, please, if I may. Again, don't think of these comments 6 as critical, because we're in favor of the program, a lot. 7 And I think if we have any -- speaking for me, if I have any 8 qualms about it, it's just that I want to see more -- more 9 people being trained for jobs that apparently are really out 10 there. And I'm -- I would love for those jobs to remain in 11 Kerr County, but, I mean, there's a bigger purpose here, and 12 that's to -- the state of Texas is what needs these jobs. 13 And they may not all be here, but as you say, a lot of those 14 people come back on the weekends, and the money's still spent 15 here and so forth. And I just really would like to see 16 people -- you know, a lot more people being trained and going 17 out in the real world and getting good jobs. 18 MR. KING: Is there any certification that they 19 receive when they finish the 80 hours? 20 MS. FAHRENTHOLD: They get a certificate from us 21 that they've completed the 80 hours. But the welding 22 certificate is the one where you don't have to -- you can -- 23 I could go take it today. I would fail miserably, but -- 24 because I'm not trained. 25 MR. KING: Right. 28 1 MS. FAHRENTHOLD: So -- but they're able to go and 2 get -- 3 MR. KING: Sure. Do we know what their level -- we 4 know what Fox is asking for over there as far as certificates 5 and welders? I mean, are they asking -- I've been through 6 that plant once, and believe me, it wasn't -- when they first 7 started, that was -- it wasn't -- you're not talking General 8 Motors over there. 9 MS. FAHRENTHOLD: API -- sorry. I think they want 10 them to be certified for the API requirement. They have to 11 be? 12 COMMISSIONER MOSER: They have to be. 13 MAYOR PRATT: Yeah. 14 MR. KING: For the API? That's the -- or they've 15 got another certification, I think, even beyond API. Is 16 there a second one? 17 MR. McKENZIE: ASME. But -- 18 MS. FAHRENTHOLD: And they -- Fox Tank even tested 19 the guy that we hired to do the welding training to see that 20 he would pass their test for their welding standards. 21 MR. KING: Sure. 22 MS. FAHRENTHOLD: So that he could teach. 23 MR. KING: Did he? 24 MS. FAHRENTHOLD: Yes. 25 MR. KING: Many of those API/ASME standards are not 29 1 the -- they're not the welding of the tank. It's not the 2 welding of the tank; it's the construction of the tank. It's 3 the materials, the thickness of the tank, the pressure rating 4 of the tank. It's not -- it's not necessarily -- I mean, 5 pipeline welding has to be done by certified people, 'cause 6 it's X-rayed and -- and -- 7 MAYOR PRATT: That is the test that every welder 8 gets when you apply. 9 MR. KING: Sure. 10 MAYOR PRATT: They weld and they cut out a strip 11 and put that in a big vise, and they see if that weld holds. 12 MR. KING: Sure. 13 MAYOR PRATT: And that's one level. And then the 14 next level is the X-ray. 15 MR. KING: Sure, right. 16 MR. WALTERS: Did you say that they have to -- 17 after they've completed your course, they have to go to San 18 Antonio to take a test, and it's -- that test is like -- and 19 getting that certification is, like, $250? 20 MS. FAHRENTHOLD: Mm-hmm. Yes, that is true. 21 MR. KING: Okay. Well, I just think we need to -- 22 it just needs to be marketed a little better. 23 MS. FAHRENTHOLD: I agree. 24 MR. KING: And I'd like -- obviously, I'd like to 25 see some help across the street, but I can understand. His 30 1 business has done really well, and sometimes we get caught in 2 the backwash. And, anyway -- okay. We've got a motion; we 3 have a second. A vote. All in favor? 4 (The motion carried by unanimous vote, 4-0.) 5 MR. KING: Four-zero. 6 MR. WALTERS: Thank you very much. 7 MR. KING: Thank you very much. 8 MR. LIVERMORE: Appreciate it. 9 MR. KING: Appreciate it. Item 4C, on-call 10 contract for airport consulting engineering. 11 MR. McKENZIE: Yeah. At the last meeting, the 12 board asked me to get another price with another engineering 13 firm, which I did. I went to a third one that I have a good 14 relationship with, and they were a little hesitant to give me 15 their per-hour pricing. When it hits the street, it hits the 16 street. But if you -- as you can see, they parallel 17 considerably with most of this. So, I'm not going to belabor 18 the point. I'd like to hire somebody to assist me from time 19 to time with questions that I have, and that's all this is 20 about. And I would -- 21 COMMISSIONER MOSER: What are you looking at, 22 Bruce? You said it parallels looking at one thing from KSA? 23 MR. McKENZIE: The one from Garver. 24 COMMISSIONER MOSER: Oh, Garver. Okay, got you. 25 MR. LIVERMORE: Bruce, are these issues that come 31 1 up occasionally, are they something that there's no one on 2 the city or County staff that can handle these matters? 3 MR. McKENZIE: This is strictly aviation-related. 4 MR. LIVERMORE: Okay. 5 MR. McKENZIE: These are things that sometimes I 6 need somebody to back me up. 7 MR. LIVERMORE: Mm-hmm, okay. 8 MR. McKENZIE: And, like I say, this is grant 9 eligible. It's RAMP grant eligible. I won't use it unless I 10 absolutely need it, and it will be for hopefully just small 11 increments at a time. That's all -- most of the time, it's 12 things over the phone I need help with. It's like calling 13 your attorney or your C.P.A.; that's what it boils down to. 14 MR. KING: Don't use that example. 15 MR. McKENZIE: Okay. (Laughter.) I retract that 16 statement, pardon me. 17 MR. LIVERMORE: Present company excluded. 18 MR. McKENZIE: Present company excluded. 19 MS. BAILEY: I don't usually charge for a phone 20 call. 21 MR. WALTERS: Is this something we've got to 22 rearrange our budget for? 23 MR. McKENZIE: No, this has already been approved. 24 It's in the RAMP grant. It's been -- you've already approved 25 it. 32 1 MR. WALTERS: Okay. 2 MR. LIVERMORE: Do you have a recommendation of who 3 you would like us to choose? 4 MR. McKENZIE: Garver's the folks that did our 5 master plan. I've got a great rapport with them. I've got a 6 good rapport with KSA, a good rapport with Parkhill, Smith 7 and Cooper. I mean, I know all these folks, so -- 8 COMMISSIONER MOSER: Bruce, how do you compare 9 these two? I mean, one is specific of whether it's the 10 engineer, technician, whereas the other one is T-1 and T-3 11 and blah, blah, blah. 12 MR. McKENZIE: That's the point. They -- every 13 firm is going to do it a little bit differently. 14 COMMISSIONER MOSER: So you -- 15 MR. McKENZIE: So if you take the mid-range of 16 those, they compare with KSA's. If you take Garver's 17 mid-range, it compares with KSA, with the exclusion of the 18 survey crews. I don't -- I'm not going to use their survey 19 crews; I want to use local people to do our survey work. 20 I'll use everything locally that I can, except when I have a 21 question. 22 COMMISSIONER MOSER: Where's KSA located? 23 MR. McKENZIE: They are in Midland, Lubbock, 24 Amarillo, Austin, and Houston. 25 MAYOR PRATT: KSA has the reimbursement expenses 33 1 for travel; I didn't see any for Garver. Big difference. 2 MR. KING: Are we anticipating these guys coming 3 here? 4 MR. McKENZIE: No, sir. 5 MR. KING: This is mainly questions over the phone, 6 most likely? 7 MR. McKENZIE: Yes, sir. 8 MR. WALTERS: I would imagine, Mayor, that when you 9 get their contract, it's probably going to have the 10 reimbursable costs. 11 MAYOR PRATT: They're already here. That was my 12 point. 13 MR. WALTERS: Talking about Garver? 14 MAYOR PRATT: Yes. 15 MR. WALTERS: They're located here in Kerrville? 16 MR. McKENZIE: No. 17 MAYOR PRATT: But they're doing a contract here. 18 MR. WALTERS: Oh, yeah. But -- but if they're not 19 outside of the work, so -- of their existing work. 20 MR. McKENZIE: The folks we deal with are in the 21 Dallas area. 22 MR. KING: Are they? 23 MR. McKENZIE: Yes, sir. 24 MR. KING: And Garver's doing this thing with us 25 for Robert? 34 1 MR. McKENZIE: Yes, sir. 2 MR. KING: Why don't you ask them all the questions 3 while they're here, too? 4 MR. McKENZIE: From time to time, things come up. 5 MR. KING: When you're eating lunch with them and 6 stuff, that's a good time. 7 MR. McKENZIE: And I have. 8 MR. WALTERS: Obviously, you know, Bruce feels like 9 he needs this service to -- 10 MR. KING: I agree. 11 MR. WALTERS: -- to operate, you know, to do his 12 job, and I think we need to make it available to him. 13 MR. KING: I agree. We -- I don't have any problem 14 with it. We can look at it on a six-month basis, see how we 15 do in six months. See what the cost is, see whether there's 16 something that we need to address again. 17 MR. LIVERMORE: Well, the issue is we've got to 18 choose somebody. Don't we? 19 MR. McKENZIE: No, I can -- I'll do that. 20 MR. GRIFFIN: Just got to let him spend the money. 21 MR. LIVERMORE: Oh, okay. I thought we had to make 22 a choice. 23 MR. KING: But you are going to designate one? 24 MR. McKENZIE: Correct. That's correct. 25 MR. KING: One guy? 35 1 MR. McKENZIE: Correct. 2 MR. WALTERS: If he's comfortable with Garver, let 3 him make the choice. 4 MR. KING: You're the one that's got to deal with 5 them; I don't. Okay. So, we need a motion on that or not? 6 MR. McKENZIE: Please. 7 MR. KING: How about a motion to -- 8 MR. LIVERMORE: What's the motion? 9 MR. KING: Allow Bruce to pick a phone-call 10 contractor. 11 MR. GRIFFIN: There you go. 12 MR. WALTERS: I make a motion we vote for Bruce 13 McKenzie to engage in a contract for services based on the 14 fee schedule here for airport questions as needed -- on an 15 as-needed basis. 16 MR. KING: That's a good motion. 17 MR. GRIFFIN: I'll second that. 18 MR. KING: Second by Mr. Griffin. Discussion? 19 None being heard, all in favor? 20 (The motion carried by unanimous vote, 4-0.) 21 MR. KING: Four-zero, okay. Item 4D, the budget. 22 Draft budget. 23 MR. McKENZIE: I have forwarded this to the board. 24 This is the first cut at the budget. This is the first cut 25 at it, but we need to have this completed by the May meeting 36 1 -- at the May meeting, 'cause we have to turn it in to the 2 City by 1 June, and the County as well. So, this is just to 3 look at. I didn't mean for us to go over this today 4 blow-by-blow, because we don't have time; there's other 5 pressing things going on here about 10:30. But this is just 6 for you to look at and start reviewing, and let's talk about 7 it. If you guys want to have a workshop, we can. I don't 8 know that we'll need one, but at the next meeting we can set 9 aside a time, if you so desire, and we'll go ahead line by 10 line. 11 MR. LIVERMORE: This is just for us to start 12 thinking about it? 13 MR. KING: Yeah. Why doesn't everybody look at 14 this budget for the next meeting; we can maybe discuss it 15 line by line, find out what -- what we need to approve, 16 disapprove, or whatever. 17 MR. McKENZIE: Exactly. 18 MR. KING: Would that be all right? 19 MR. LIVERMORE: Mm-hmm. 20 MR. KING: Okay. That was easy. Item 4E, the 21 lease of Mooney Building 19, the paint hangar, negotiation 22 and possible extension of a new lease agreement. Executive 23 session as needed. What is that? 24 MR. McKENZIE: The next three are executive 25 session. I've shown this building, and I need to visit with 37 1 the board about -- I've shown it to a tentative client. 2 MR. KING: Yep. 3 MR. KENNEDY: And the other two are obviously 4 self-explanatory. We need to go in executive session; I 5 recommend we do that for the next three items. 6 MR. LIVERMORE: Do we need a motion to -- 7 COMMISSIONER MOSER: Question. Building 18, is 8 that part of your discussion under Mooney International? 9 MR. McKENZIE: It will be under Mooney 10 International, you bet. 11 COMMISSIONER MOSER: Okay. 12 MR. LIVERMORE: 18 or 19? 13 COMMISSIONER MOSER: 18. 19 was identified. 14 MR. WALTERS: Two separate buildings. 15 MR. LIVERMORE: Right. I got my numbers backwards. 16 MR. McKENZIE: Yes, sir. 17 MR. KING: And on 18, what is the date we're 18 getting that back? 19 MR. McKENZIE: 25th of this month. March 25. 20 MR. KING: We're getting 18, 19 -- 21 MR. McKENZIE: 17, 18, and 19. And I'm going to 22 talk to those folks tomorrow when I'm over there and ask them 23 if they have any problem with 21. That's the little 24 ante-building out here where they stored their product. 25 COMMISSIONER MOSER: Just for clarification, so 38 1 you're saying March 25th, you get Building 17, 18, and 19 2 back? 3 MR. McKENZIE: Yes, sir. 4 COMMISSIONER MOSER: But we don't have a lease with 5 Mooney, so how do we get that back? 6 MR. KING: 'Cause we don't have a lease with them. 7 MS. BAILEY: We have a month-to-month. 8 COMMISSIONER MOSER: Month-to-month lease. It's 9 part of the month-to-month lease? 10 MS. BAILEY: And we've just notified them, as part 11 of their month-to-month lease, they're no longer going to be 12 able to occupy -- 13 COMMISSIONER MOSER: Okay. 14 MS. BAILEY: -- those premises. 15 COMMISSIONER MOSER: Got you. 16 MAYOR PRATT: At least their payment's not going to 17 change. 18 MR. McKENZIE: And they've agreed to that. So 19 you'll know, they've agreed to that, and we've changed their 20 lease from $6,600 a month down to 6,000. 21 COMMISSIONER MOSER: Okay. 22 MR. McKENZIE: We took those three buildings out. 23 They agreed to that. 24 COMMISSIONER MOSER: Okay, good deal. Thank you. 25 Super. 39 1 MS. BAILEY: If you're going to make a change on 2 that other small building, if they agree to it, I don't see 3 that you need -- you probably don't need to pay me to write a 4 letter. You can say, "This just solidifies our agreement 5 that we're just also going to take that." 6 MR. McKENZIE: I have a meeting with him in the 7 morning at 10:00. 8 MR. WALTERS: So, under the month-to-month lease 9 that we have with them, do we need to modify the description 10 of the lease premises excluding those buildings? 11 MS. BAILEY: Well, we -- we have essentially, by 12 them having the -- we made a new diagram, and I've sent them 13 a copy of that. 14 MR. WALTERS: Okay. 15 MS. BAILEY: So we've essentially done that. 16 MR. WALTERS: Okay. 17 MR. KING: On item 4G, the Mooney lease agreement, 18 I want to -- Bruce, are we -- we need to be sure we are 19 keeping the City and the County up to date on this. 20 MR. McKENZIE: Mm-hmm. And -- 21 MR. KING: I'm -- I know the City -- I had 22 discussed it with them. The County, I'm a little concerned 23 about. I want to be sure they have -- do they have copies of 24 the lease that we've -- 25 COMMISSIONER MOSER: No. 40 1 MR. KING: -- seen the proposals? 2 COMMISSIONER MOSER: No. 3 MR. KING: I'll get you that today. Well, why 4 don't we send -- why don't we -- whatever we send to the 5 City, the County needs to have the same information, 'cause I 6 believe they own half of it. Isn't that correct? 7 MR. McKENZIE: They do. 8 MR. KING: Not sure; I'll look back on that. 9 MR. McKENZIE: They do. 10 COMMISSIONER MOSER: There's not anything -- just 11 to ease your burden, if you have a meeting on that with the 12 City, feel free to invite the County there, or vice-versa. 13 There's no need for -- 14 MR. KING: I agree. 15 COMMISSIONER MOSER: -- having separate meetings 16 for discussing the same things. 17 MR. KING: I think what -- we're going to discuss 18 this in executive session, but just to kind of move the ball 19 along and everything, I'd like to see the County -- the City 20 has already received this. They've looked at this lease that 21 we've proposed, and then they've given some feedback on that 22 lease. And I'd like to see the County review this lease, 23 your liaison and whoever you'd like. 24 COMMISSIONER MOSER: All you got to do is submit it 25 to us and ask for a meeting. 41 1 MR. KING: Very, very helpful. 2 MS. BAILEY: When we originally did it, we did get 3 feedback from both, from the County and the City. 4 COMMISSIONER LETZ: No, you didn't. 5 COMMISSIONER MOSER: No, you didn't. 6 MS. BAILEY: I got some back from Rob. 7 COMMISSIONER LETZ: He doesn't make decisions; he's 8 form approval only. 9 COMMISSIONER MOSER: You have not gotten anything 10 back from the County. 11 MS. BAILEY: I've not gotten anything back from the 12 Commissioners, but we did submit it over there, and we did 13 get some feedback. 14 COMMISSIONER MOSER: I haven't seen it. 15 MR. KING: You will see it, I promise you that. I 16 didn't know that until this morning. So, we -- we need to 17 work here on an even playing field, so the County has to -- 18 you know, we would like the County's input on that, and 19 Jonathan and Tom. 20 COMMISSIONER MOSER: Input on what? 21 MR. KING: I'd like your input on the Mooney lease. 22 COMMISSIONER MOSER: Why don't you send it to us? 23 MR. KING: Before you leave this room, it will 24 probably be over there. 25 COMMISSIONER MOSER: Right, okay. 42 1 MR. KING: Thank you very much. 2 MAYOR PRATT: Steve, can I -- 3 MR. KING: Yeah. 4 MAYOR PRATT: -- say something? 5 MR. KING: Yeah. 6 MAYOR PRATT: In addition to that, when y'all go 7 in, Mooney International has presented a -- a proposal that 8 they received for roofing of those buildings. 9 MR. KING: Mm-hmm. 10 MAYOR PRATT: Since we're a government, we can't 11 accept that, because we have to go out for competitive bids, 12 okay? So, I think that needs to come from the airport, that 13 y'all need to do that on behalf of the City and County, to 14 solicit bids for the roofing. And the City has committed to 15 their 50 percent of that. The bid that was received was 16 900-something thousand; let's just call it a million dollars 17 in round figures. So, we're committed to that, contingent 18 upon the County funding their 50 percent of it. And so y'all 19 -- I think y'all need to go out for a bid. 20 COMMISSIONER LETZ: We don't even know the deal. 21 COMMISSIONER MOSER: And, therefore, let me make 22 it -- 23 COMMISSIONER LETZ: This is the first I've heard of 24 it. 25 MAYOR PRATT: That came from Chen. It doesn't come 43 1 from anything. It came from Chen. 2 COMMISSIONER MOSER: Let me make it very clear. We 3 had a meeting with Dr. Chen, informal with K.E.D.C. They 4 disclosed some of the information to us. We've seen nothing 5 formally about a million-dollar roof, okay? We don't know 6 about that. I presented it -- 7 MR. LIVERMORE: I read it in the paper. That's 8 probably when you read it. 9 COMMISSIONER MOSER: Hold on just a second. I 10 presented it to Commissioners Court; "Here's some 11 information, just to give you a heads-up." You know, it's 12 pending. We haven't seen a thing as far as a proposal from 13 Mooney International. We haven't seen anything on a request 14 for capital improvements of a million dollars for a roof. 15 So, I think we need to get organized on this. Rather than 16 just having informal meetings and information that's flowing 17 up -- 18 MR. WALTERS: Can I -- let me make a comment. 19 MAYOR PRATT: And -- let me finish that first. And 20 we were -- the City was at the same meeting; that's where we 21 got the information, same time they did. That's all we've 22 seen. 23 COMMISSIONER MOSER: Right. 24 MR. WALTERS: We have a lease -- the airport has a 25 lease presently that says that the tenant is responsible for 44 1 the maintenance of all the improvements. Why would we want 2 to submit -- give them a letter that says, "You need to go 3 out for competitive bid," when it's your responsibility to 4 fix those roofs -- the tenant's responsibility to fix those? 5 COMMISSIONER MOSER: Exactly. 6 MR. WALTERS: I don't think we want to send a 7 letter that says, "You need to do this," and get competitive 8 bids for something that we have, you know, no responsibility 9 for. 10 MAYOR PRATT: You misunderstood my statement. 11 Those buildings belong to the City and County; they're our 12 assets. 13 MR. WALTERS: I understand that. 14 MAYOR PRATT: Those buildings were not under Mooney 15 International, okay? Mooney International is now occupying 16 them. The City and the County have been negligent over years 17 and years of a lease agreement, of forcing Mooney to bring 18 the buildings -- keep them up to standards. 19 MR. WALTERS: We recognize that. We've had that 20 discussion. 21 MAYOR PRATT: Okay. So -- 22 MR. WALTERS: The board has. 23 MAYOR PRATT: So, what we're saying is -- is that 24 Mooney wanted -- Mooney wanted money from the City to -- and 25 the County to stay here. We're saying we're not going to 45 1 give the money to Mooney. We will bring our own asset up to 2 standards. 3 MR. WALTERS: I understand that. 4 MAYOR PRATT: That's where -- 5 MR. WALTERS: But that's still contrary to the 6 present lease that we have. 7 COMMISSIONER MOSER: Correct. 8 MR. WALTERS: I mean, are you asking us to modify 9 our lease? 10 MAYOR PRATT: I -- I'm not asking you to do 11 anything. I'm telling you what the situation is. 12 MR. WALTERS: I think if y'all -- if the City is 13 doing that in conjunction with the County, then we need 14 direction in that area. 15 COMMISSIONER MOSER: County's not doing anything. 16 MR. KING: I think what -- 17 MR. WALTERS: I'm just saying -- 18 COMMISSIONER MOSER: We're not against it, but 19 we -- 20 MR. WALTERS: I don't want to -- I don't think the 21 board -- the Airport Board, that we want to send a letter 22 to -- to our tenant saying, "You need to get competitive 23 bids," for something that we have no responsibility for as 24 the landlord, because it's their responsibility as the 25 tenant. 46 1 COMMISSIONER LETZ: The Mayor just said he thinks 2 the City and County will -- I take issue with what the Mayor 3 said, because I don't recall any tenants ever coming to us 4 asking us to redo the -- the roof, and we said, "No, we're 5 not going to do it." 6 COMMISSIONER MOSER: Never have. 7 COMMISSIONER LETZ: That's never happened. 8 MR. WALTERS: I understand your point, but 9 presently that responsibility of maintaining those 10 improvements are with our tenant. 11 COMMISSIONER LETZ: Right. 12 MAYOR PRATT: I understand that. 13 COMMISSIONER MOSER: I think it's not very 14 complicated. I think you're negotiating, looking at a new 15 lease, and if they come forward and say part of the new lease 16 is we need to have these things improved, that should be part 17 of the new lease package. Then we, the City and the County, 18 can take a look at that and decide what we want to do with 19 our facilities that we're leasing to them. 20 MR. WALTERS: Right. 21 COMMISSIONER MOSER: I think it's that simple. And 22 then we'll make a decision on do we agree with what the 23 Airport Board recommends to the City and the County? 24 MR. WALTERS: Well, if the City and County agree to 25 that under a new lease, that you're going to replace the 47 1 roofs -- 2 MR. KING: They're not going to replace them; 3 they're going to fix the roofs. 4 MR. WALTERS: Okay, replace or fix. Repair or, you 5 know, replace. 6 COMMISSIONER MOSER: It's replacing. 7 MR. KING: No, they want to put the laminate -- 8 they want to put the -- 9 MR. McKENZIE: Membrane across. 10 MR. KING: Yeah, it's overlay. 11 MR. WALTERS: Regardless. Regardless of whether 12 it's replace or renovate or repair. 13 COMMISSIONER MOSER: All right. 14 MR. WALTERS: That's -- then in that situation, 15 then the City and the County can go and competitively bid the 16 roofs. Why do we need to take -- then Mooney's out of it. 17 COMMISSIONER MOSER: True. 18 MR. WALTERS: So why -- again, it goes back to the 19 question, why do we need to write Mooney a letter and say, 20 you know, you need to get competitive bids? 21 MR. KING: I don't think that was the... 22 MR. WALTERS: That's exactly what -- 23 MAYOR PRATT: That's not what I said. 24 MR. KING: I don't know. This thing needs -- we 25 need to -- there needs to be a meeting of the County and the 48 1 City and get together, and maybe a couple Airport Board 2 members available to sit down and find out what the City and 3 the County want, what -- 4 COMMISSIONER MOSER: Can't do anything till we 5 understand what's needed. 6 MR. WALTERS: I agree with you. 7 COMMISSIONER MOSER: And when they said they need 8 it. The other thing that's going to do is show us your pro 9 forma, why you think this is good. The same thing we've been 10 discussing now for three or four months. We're -- we haven't 11 seen a thing come from the Airport Board to the City or the 12 County. 13 MR. WALTERS: I mean, if you want -- if you're 14 curious about getting competitive pricing, why don't you get 15 consent from -- request from Mooney consent to go on the 16 premises, which we probably already have it in our lease 17 anyway, and -- and obtain -- have the City and County obtain 18 competitive pricing if they so desire. 19 COMMISSIONER LETZ: I think what Tom's saying -- 20 COMMISSIONER MOSER: I'm saying something -- why 21 doesn't -- why doesn't Mooney International, through the 22 Airport Board, say, "We propose the following: We've got a 23 new lease coming up, and here's what we would like to have as 24 part of this new lease." It's not complicated. 25 MR. KING: Tom, I think -- 49 1 COMMISSIONER MOSER: Then we'll figure out what to 2 do. 3 MR. KING: I think one thing -- and I think we've 4 tried. We've been wanting to sign a lease with Mooney for 5 five months, okay? We've been told by the City and the 6 County, "Hold on, don't sign a lease. Don't sign a lease. 7 Don't do anything, because we've got some things that we want 8 to talk to Mooney about," some economic development and this 9 stuff. 10 MR. WALTERS: Excuse me. I think -- just briefly, 11 I don't think the County's asked -- well, no -- yes, y'all 12 did ask us. Both of you did. 13 MR. KING: We put the brakes on it. 14 MR. WALTERS: That's correct. 15 MR. KING: We felt like it was our duty as Airport 16 Board to enter a lease with Mooney. I mean, that's where 17 it's going to come from. We enter a lease with everybody out 18 here. That's where it comes from. You were on the board, 19 Tom; you know how it works. So, we have a lease. We've had 20 a lease -- proposed lease several times that we've had 21 negotiations. We've had -- we've had discussions with 22 Mooney; they've come back, red-lined this. We've come back, 23 and then at some point about two months ago, it was, "Wait a 24 minute, why don't we all slow down here, because we've got 25 some things that we want to get done with Mooney." Well, 50 1 that -- when you say that, when that's said to us, then that 2 appears to me that y'all have some negotiations there, 3 something to talk to Mooney about. Now, we're not in the -- 4 we're not in the economic development business. We're in the 5 leasing the buildings and getting money back for us so we can 6 put it in our budget. That's what our primary reason for 7 being here is. 8 COMMISSIONER LETZ: Is there a lease that y'all 9 have? 10 MR. KING: Yeah. 11 COMMISSIONER LETZ: Does it have them pay for 12 redoing the roof? 13 MR. WALTERS: Absolutely. 14 MR. GRIFFIN: It says they're to maintain the 15 facility. 16 MR. LIVERMORE: The old lease. 17 MAYOR PRATT: It's a separate company, though. 18 MR. KING: I haven't haven't seen a letter. I 19 wasn't at that meeting. I wasn't in on any meeting where 20 Chen or -- 21 COMMISSIONER LETZ: Me either, never met the man. 22 MR. KING: -- anyone that said, "Hey, we need a new 23 roof." 24 COMMISSIONER MOSER: I was there. 25 MR. KING: Did they say, "We need a new roof"? 51 1 MR. GRIFFIN: They went to E.I.C. 2 COMMISSIONER MOSER: That's the meeting -- Jonas 3 was here. What was -- the purpose of the meeting was just to 4 kind of give us a heads-up, what's going on. It was not a 5 formal meeting to request anything. 6 MR. TITAS: They had submitted an application 7 for -- an E.I.C. application for the new lease agreement. 8 COMMISSIONER MOSER: But the County doesn't get 9 involved in E.I.C. stuff. 10 MR. LIVERMORE: What we're seeing -- what we're 11 seeing -- 12 MR. KING: One at a time. My court reporter 13 here... 14 COMMISSIONER MOSER: Sorry, Kathy. 15 MAYOR PRATT: E.I.C. -- they came to E.I.C. E.I.C. 16 said, "We don't think we can get this passed by Council." I 17 mean, I'm -- I'm paraphrasing, okay? And we had this meeting 18 with -- the County was there, City was there, Jonas was 19 there. 20 MR. KING: I wasn't there. 21 COMMISSIONER LETZ: I wasn't there. 22 MAYOR PRATT: K.E.D.C. was there. So -- and with 23 Chen, and with -- Bruce, were you there? You weren't there. 24 Where they presented a proposal for a reroofing job, if you 25 will, overlay. And that was not a formal deal, obviously. 52 1 But it was turned down -- well, Jonas, what was that -- what 2 was that with the E.I.C.? 3 MR. TITAS: It was a K.E.D.C. meeting, and the 4 Airport Board was invited, County was invited, City was 5 invited, and we were trying to create a forum for those 6 questions to be asked or the application to be reviewed, for 7 the pro forma to be analyzed, and for us to deliberate the 8 next steps. 9 MR. KING: Did they formally ask the City and the 10 County to pay for that roof? 11 MR. TITAS: As part of the letter, correct. 12 MR. KING: There's a letter? 13 COMMISSIONER LETZ: They asked E.I.C. to pay; they 14 didn't ask the County. 15 COMMISSIONER MOSER: Didn't ask the County. 16 MR. TITAS: Correct. It was addressed as part of 17 an E.I.C. funding application. 18 MR. KING: I'm confused. 19 MR. LIVERMORE: Well, here's the thing. It seems 20 to me, because I'm just sitting here listening to all of 21 this, and we -- we, even on this board, have had a sense -- a 22 strong sense that we should not plow forward until some 23 greater decision was made beyond us. And it just seems 24 like -- 25 MR. GRIFFIN: We were told to cease and desist. 53 1 MR. LIVERMORE: Yeah. And it just seems like that 2 what we've got here is kind of a hydra-headed creature, and 3 we need -- 4 MAYOR PRATT: I think -- 5 MR. LIVERMORE: -- to chop over here, chop over 6 here, and then chop over here. 7 COMMISSIONER MOSER: Let me tell you what the issue 8 is. 9 MR. LIVERMORE: We need to bring this to a focus, 10 because between all that, all these parties, we really only 11 have one interest here. 12 COMMISSIONER MOSER: Let me tell you what the 13 interest is. It's alleged -- 14 MR. LIVERMORE: It's what? 15 COMMISSIONER MOSER: It's alleged. Without seeing 16 anything formally, it's alleged that Mooney International 17 would like to have the City and the County perform -- do a 18 million dollars worth of repairs on the roof. It's alleged, 19 okay? Now, if the Airport Board can negotiate a lease that 20 doesn't have that in there, that's good. Just come forward 21 -- I mean, you got the lease. Do it. But if you need the 22 City and the County to contribute a million dollars, -- 23 COMMISSIONER LETZ: Or any amount of money. 24 COMMISSIONER MOSER: -- or any amount of money, we 25 need to see what it is. We haven't seen anything. 54 1 MR. WALTERS: Let me answer your question. The 2 lease that David Jackson has presently, that is from us to 3 them, does not have any requirement for the airport to have 4 any maintenance responsibilities on those buildings. That's 5 where it is from our point of view, from our position right 6 now. So, we have -- I don't believe Ilse's gotten something 7 back from David that says otherwise. 8 MS. BAILEY: They're ready to sign the lease that 9 we have negotiated between their changes and our changes. 10 That lease has the standard language that requires them to 11 maintain the property in the -- you know, in good condition, 12 which we've never enforced. But we don't have any additional 13 requirements in that lease. My understanding is -- 14 MR. WALTERS: Requirements such as us being 15 responsible to make improvements to -- 16 MS. BAILEY: Correct. 17 MR. WALTERS: The airport being responsible to make 18 improvements to those premises? 19 MS. BAILEY: Correct. Now, if there is some 20 commitment of money from somewhere -- it doesn't matter if 21 it's private money, E.I.C., City/County. If someone has 22 committed to Mooney that they will give "X" number of 23 dollars, and that amount has somehow been identified as an 24 amount sufficient to fix the roof, we can add into our 25 contract -- 55 1 MR. WALTERS: Sure. 2 MS. BAILEY: -- that Mooney must spend up to a 3 million dollars by such-and-such a date to fix the roof. And 4 we can add that in, and I believe that Mooney will agree to 5 it. But we don't have any of that in there right now, 6 because we've not received any direction from all of the 7 owners. 8 MR. WALTERS: And my feeling is -- you know, with 9 the City and the County, you know, my recommendation is, you 10 know, and it's probably obvious to you all, why give them a 11 million-dollar -- a million dollars and let them -- 12 MR. KING: Or not. 13 MR. WALTERS: -- make the improvements? 14 MR. KING: I don't think that's the intent. 15 MR. WALTERS: Yeah, I realize that. That's what 16 I'm saying. 17 MAYOR PRATT: Not going to happen. 18 MR. KING: The intent, as I understand it -- 19 MR. WALTERS: If improvements are going to get 20 done, I would suggest that the City and County make them 21 themselves. 22 MR. KING: Well, I think they wanted to run it -- 23 the intent, as I understand -- and there's a big -- there's 24 a -- the problem here is that half of the -- seems like half 25 of the puzzle is not here, because the County doesn't know 56 1 anything about the project. I mean, so -- 2 COMMISSIONER MOSER: No, but I sat in a meeting 3 just observing, taking notes. 4 MR. KING: I think maybe before we go any further 5 with this plan, maybe the County and the City need to get 6 together. 7 MAYOR PRATT: With the board, with two 8 representatives. 9 MR. KING: A couple of members of the board, and 10 let's talk about what you guys would like -- what you guys 11 want to do on this roof that was mentioned by Dr. Chen. And, 12 I mean, I think the board would be willing to -- if you guys 13 paid -- come up with the money and wanted to do something, we 14 probably would run it through us and put out RFP's and give 15 y'all those numbers. But, I mean, I think that's got to come 16 from the City and the County. This can't come from one side 17 of the -- one, I don't think there's any use in us putting 18 out an RFP for something that you don't know about. 19 COMMISSIONER MOSER: I can -- look, I was at the 20 meeting. I know what it is. I saw the thing; it was $3 a 21 square foot. That was a good deal. Carson was there; he 22 said that's an excellent roof. I know all of that, just 23 sitting and observing as a citizen, okay? Or as a member of 24 Commissioners Court. 25 MR. LIVERMORE: There's been no formal -- 57 1 COMMISSIONER MOSER: But there hasn't been anything 2 to say, "City and County, would you please fix your roof so 3 we can move forward with this lease?" That's all -- that's 4 what we need. 5 MR. KING: From who? 6 COMMISSIONER MOSER: From the Airport Board or from 7 Mooney. 8 MR. KING: I don't care about the roof. I didn't 9 bring it up. Nobody -- the airport didn't bring up fixing 10 the roof. 11 COMMISSIONER MOSER: Hasn't been brought up by 12 anybody, Steve, except informally, looking for E.I.C. to fund 13 a million dollars. 14 MR. KING: Then we'll continue with our lease -- 15 working on our lease after we get input from the County on 16 it, which I'd like to get some input from the County after 17 they receive the lease, and then we'll go on with the roof 18 thing when y'all can come up with a proposal. How's that? 19 COMMISSIONER LETZ: Doesn't seem to me that we need 20 to -- I don't understand why we're even talking about 21 spending a million dollars. Corey says -- and Ilse says 22 they're ready to sign a lease that doesn't have a million 23 dollars in it, so why don't we let them fix the roof? 24 MR. GRIFFIN: Two separate things. Our current 25 lease is what Corey and Ilse are talking about. That's been 58 1 negotiated with Mooney; we're ready to go. 2 COMMISSIONER LETZ: Right. 3 MR. GRIFFIN: We were told two months ago to stop. 4 COMMISSIONER LETZ: Because there -- because of 5 E.I.C. 6 MR. GRIFFIN: Okay. 7 COMMISSIONER LETZ: Because there was a request to 8 E.I.C. 9 MR. GRIFFIN: No matter what -- I'm not going to go 10 into why, but we were told to stop, and we stopped. You're 11 now saying, "Okay, you guys can go negotiate that contract," 12 as far as we're concerned, is what we were told. You know, 13 so let us go negotiate that contract. What Steve's saying is 14 if we need to go negotiate the roof as a separate thing, give 15 us that input. We'll do whatever, and we'll go renegotiate 16 that contract at that point when it happens. 17 MR. KING: If you'll come up with some money -- 18 MR. GRIFFIN: They're not associated with each 19 other. $6,000 is separate from the roof. 20 MR. KING: If you'll come up -- you guys come up 21 and decide y'all want to paint the buildings, I don't care 22 what it is, then we'll -- we'll -- if you guys have the money 23 and everything, we'll go get RFP's, and we'll come up with 24 some actual numbers, and you guys can approve it. 25 COMMISSIONER MOSER: Why can't we do the following? 59 1 If Mooney International wants to have the roofs fixed, why 2 wouldn't that be part of their proposed lease? "We want a 3 lease that's contingent on the roofs being repaired." Right 4 now, it doesn't saying anything about repairing the roofs. 5 If they came forward with a lease and said to you guys -- and 6 said, We want to sign this lease, but you got to fix the roof 7 plus fix the faucet or something -- I don't know what else 8 they want; they probably want some other things. Identify 9 those, and then you'll say, "Hey, we don't have the money to 10 do that. We have to go to our owners and see if they're 11 willing to do it." That's the way to start the ball rolling. 12 MR. KING: That's fine. We haven't gotten that 13 letter. 14 MR. WALTERS: Well, I would imagine -- 15 COMMISSIONER MOSER: Neither have we. 16 MAYOR PRATT: Let me interject something here. 17 MR. WALTERS: I would imagine that right now, you 18 know, because this seems to have come up here recently, the 19 roof, you know, in the last 30 or 60 days, -- 20 COMMISSIONER MOSER: Right. 21 MR. WALTERS: -- that our draft has been sitting 22 over with David Jackson for a couple months, so I would 23 imagine that that probably will come back from David as, 24 "Hey, we no longer can accept this lease that, you know, 25 we've talked about previously." 60 1 COMMISSIONER MOSER: Right. 2 MR. WALTERS: "We want to put something in there on 3 the roof." 4 COMMISSIONER MOSER: That's what you got to find 5 out, and we'll see something -- 6 MAYOR PRATT: Let me interject something here. By 7 our discussion that we've just had, it's very evident that 8 it's a very complicated process. You got a City, you got a 9 County, you got an Airport Board. All have different 10 responsibilities. Nobody has a written procedure as to how 11 to handle whatever they want. But we got a new employer out 12 here, a new owner who doesn't understand all the complicated 13 mess, and we're saying, "Well, they haven't done this, that, 14 or the other." They don't know what they're supposed to -- 15 it's our job to make business friendly. 16 MR. LIVERMORE: Right. 17 MAYOR PRATT: And we haven't done that. 18 MR. LIVERMORE: That's what I'm trying to say. 19 MAYOR PRATT: It's not about want. It's not about 20 facts. It's about reality and what we should be doing. 21 MR. WALTERS: If the owner of Mooney hasn't looked 22 -- read his lease to realize what his responsibilities are, 23 then he's remiss, and his attorneys are not doing their jobs 24 as well. 25 MR. GRIFFIN: I think he has, Corey. That's why he 61 1 went to E.I.C. for money in the first place. I think he read 2 the lease. 3 MR. WALTERS: Why don't -- at this point, why don't 4 we ask Ilse to ask David if he's prepared to execute, you 5 know, on behalf of his client, the lease that -- that is in 6 front of them that we have negotiated back and forth? And if 7 he is, and if it says, "We're going to do the roof," then 8 fine; we'll present it and say they never even asked us about 9 the roofs. 10 MS. BAILEY: Let me just say something before we 11 get too much further down that road. The agreement that is 12 on the table right now, that David Jackson and our board has 13 said is satisfactory, was -- we were asked to hold up on 14 that, because we were told we want that to be part of a whole 15 economic negotiation from a bigger picture. 16 COMMISSIONER LETZ: If they want a new roof. 17 MS. BAILEY: Well -- 18 MAYOR PRATT: Or for any change. 19 MR. WALTERS: It wasn't just -- 20 COMMISSIONER LETZ: If they want us to spend money. 21 COMMISSIONER MOSER: Jonathan, that is exactly -- 22 COMMISSIONER LETZ: That's exactly it. 23 COMMISSIONER MOSER: If they don't want us to spend 24 any money, go for it. If they want us to spend money -- 25 MS. BAILEY: Can I just finish? So, we were 62 1 prepared, and I think David Jackson was also prepared on his 2 client's behalf, to entertain additional provisions or 3 changes in those provisions based on whatever package the 4 City and the County came up with. We've not been given that 5 information about what those additional terms need to be. As 6 soon as we have them -- as soon as we have them, we'll put 7 them in there, and I feel like we can work out an agreement. 8 But I can't go make another proposal back to David Jackson 9 without that direction from the owners that we're waiting on. 10 COMMISSIONER LETZ: We don't know what they want. 11 They haven't asked. 12 COMMISSIONER MOSER: We don't know what they want, 13 Ilse. What do they want? 14 MS. BAILEY: Okay. It's -- I'm just saying that 15 the airport's not holding up the lease. We're waiting on 16 direction from the owners. 17 COMMISSIONER MOSER: What do they want? 18 MR. KING: I don't know. I've never talked to 19 them. I met Mr. Chen out here one day; that's it. He never 20 calls me and asks me -- or we don't visit on the phone a lot. 21 I don't know. 22 COMMISSIONER MOSER: Tell him to put in the lease 23 what they want. 24 COMMISSIONER LETZ: If they don't want the City and 25 the County to spend any money, y'all have it; go with the 63 1 lease. If they want us to do something, then it has to be 2 tied together. It's that simple. 3 COMMISSIONER MOSER: It's not complicated. 4 MR. WALTERS: Just like Steve mentioned before, we 5 were at that point, and -- 6 MR. KING: Y'all told us to stop. 7 MR. WALTERS: -- City and County told to us hold 8 up. 9 COMMISSIONER MOSER: Because we anticipated they 10 were going to ask for improvements. 11 MAYOR PRATT: Let me see if I can get this off of 12 dead center. Let's have a meeting between the City, County, 13 and two representatives from the Airport Board, and let's 14 move forward. 15 COMMISSIONER MOSER: With -- 16 MR. KING: Let's -- 17 COMMISSIONER MOSER: -- with a proposed -- what 18 they want. 19 COMMISSIONER LETZ: With Mooney. 20 MAYOR PRATT: Let's find out what we need to do. 21 MR. WALTERS: Can we do this? Can we ask Ilse to 22 go ahead and ask David Jackson, "Are you prepared to execute 23 the lease that you have in your hand right now?" And he's 24 either going to say yes or he's going to say, "No, actually, 25 some new things have come up. We got -- my clients want me 64 1 to put these things..." 2 COMMISSIONER MOSER: Okay. 3 MR. WALTERS: He'll give it to us. 4 COMMISSIONER MOSER: Right. 5 MR. WALTERS: And then we'll get that back, get 6 that in our hands, and then we'll set up a meeting with you 7 all. 8 COMMISSIONER MOSER: Perfect. 9 MR. KING: Then I know the City is going to have 10 some -- they have some things they would like to see in the 11 lease. I know there's -- there's some changes they would 12 like made to the lease. I'm sure the County, as soon as they 13 get the lease, will have some changes they'd like to make to 14 it. There's probably some stuff y'all would like to see made 15 in the lease. So, why don't we do that? Why don't we find 16 out where where David stands first, what he's -- what his 17 position is, and then let's get back something from him. 18 Then let's get a meeting together with the County and the 19 City after the County's looked at their lease that you sent 20 them, which y'all already have in your e-mail. Then we'll 21 have a meeting with you guys and go forward. 22 COMMISSIONER MOSER: Okay. All right. 23 MR. KING: Okay? 24 COMMISSIONER MOSER: Super. 25 MR. KING: Does that sound like a deal? 65 1 MS. FAHRENTHOLD: I think that's what we've been 2 saying. 3 MR. KING: We're not opposed to signing a lease. 4 We've been ready to sign a lease for two months. It's just 5 we don't want to infringe on y'all's rights, because y'all 6 are the owners. 7 COMMISSIONER MOSER: Well, I'm going to say one 8 more thing, and Corey said it perfectly, okay? And Jonathan 9 did. If the lease doesn't require any money from the City 10 and the County, sign it. Go for it. 11 MR. KING: Sure. 12 COMMISSIONER MOSER: If it does, what is it you 13 want? Okay? And let's just discuss what those needs are. 14 MR. KING: And after we sign the lease, if there's 15 nothing required in there, and the City and County would like 16 to go fix the roof on their building over there because it 17 leaks like a sieve, then y'all can come up with that. That's 18 y'all's, and y'all do that. 19 COMMISSIONER LETZ: But the lease you've negotiated 20 says they're responsible for the roof. 21 MR. WALTERS: It does, but if you come up with 22 something else, we'll make an amendment to the lease. 23 MR. KING: I think just as just a practical point 24 of view, y'all could say, you know, "We're so happy that 25 y'all are here that if our building still leaks, we'd like to 66 1 fix our roof." 'Cause, you know, it is your asset. I mean, 2 it's -- whether Mooney's in the building or not in the 3 building, it's still your asset. 4 COMMISSIONER MOSER: Right. And it is, Steve. 5 But, you know, the roof is an obvious thing, 'cause you go in 6 there, and if it's raining, you better wear a raincoat. I 7 don't know what else needs to be fixed. There's the 8 electrical, plumbing. What else needs to be fixed? I -- 9 there's probably other things that need to be fixed. 10 MR. KING: We're only aware of the roof. 11 MAYOR PRATT: That's all we've been approached on. 12 MR. KING: That's all I've ever heard about. 13 MAYOR PRATT: That's all that's been requested. 14 MR. LIVERMORE: Let's don't bring up any other 15 issues. Let them come up with those issues. 16 MR. KING: So, that -- okay. So, all right. Any 17 more discussion on that? Anybody else like to talk about 18 that? 19 MR. WALTERS: Hopefully not. 20 MR. KING: Hopefully not. 21 MR. WALTERS: Executive session? 22 MR. KING: We'll just go to executive session and 23 discuss Item 4E, 4F -- I don't know that we'll need to -- 24 we'll leave 4G open, even though I think we've discussed it 25 pretty in-depth, under Section 551.071, .072, and .087 on all 67 1 three -- actually, on the first two, on E and F, and 551.072 2 and 551.087 on Item 4G. I will suggest that the County and 3 the City -- I really -- I don't like the feeling I'm getting 4 in this meeting here that the County and City are not talking 5 again, and I'd like to see y'all talk a little more. I 6 saw -- 7 COMMISSIONER MOSER: We talk all the time, Steve. 8 Jack and I probably talk four times a week. 9 MR. KING: I only see one person informed and one 10 person not informed. 11 MAYOR PRATT: Well, he was at the meeting that I 12 was at. That's the only information I have, and he got the 13 same information we've been talking about. 14 COMMISSIONER MOSER: But I informed the Court 15 exactly what it was, what the potential new employees were, 16 that we were probably going to be asked for a million 17 dollars. I said that we probably were, but we've never been 18 asked. 19 MR. WALTERS: Formally asked. 20 COMMISSIONER MOSER: Right. Yeah, you can't take 21 just some notes that somebody hands us and say, "Let's go 22 find a half a million bucks." 23 MR. KING: We'll get it straight. Thank you very 24 much. 25 (Discussion off the record.) 68 1 (The meeting was recessed at 9:47 a.m., and an executive session was held off the record.) 2 - - - - - - - - - - 3 MR. KING: All right, we'll go back in at 37 after 4 the hour -- 38 after the hour. I thought you had to leave at 5 10:00. 6 MR. GRIFFIN: Thirty. 7 MR. McKENZIE: Right now. 8 MR. KING: Okay. Anyway, on Item 4E, we just -- 9 we're going to get a proposal from whoever's looking at it. 10 We're not taking any action on that. On the Brinkman hangar, 11 Item 4F, there's nothing new to really report on that. On 12 Item 4G, the Mooney lease, we took no action on that. We had 13 discussed that in open session, and there was nothing more to 14 look at. General update? 15 MR. McKENZIE: Just our T-hangars are going well. 16 I was remiss at the beginning of this meeting, and I 17 apologize. Condolences to Ilse; she lost her father this 18 week. I appreciate her being here today. 19 MR. LIVERMORE: I didn't know that. 20 MR. KING: Thanks for being here, Ilse. 21 MR. McKENZIE: Thank you for coming here. 22 Appreciate it. No, I don't have anything, Steve, other than 23 our T-hangars are going well. There's a meeting with TexDOT 24 at 11 o'clock over here. 25 MR. WALTERS: I have a question. What's the status 69 1 of the plans to the City? 2 MR. KENNEDY: We should -- Robert has them, and he 3 should give them to me today, I think. 4 MR. WALTERS: Okay. 5 MR. McKENZIE: That was Friday afternoon when we 6 talked. We ought to have them today or tomorrow for sure. 7 We'll get them to the City -- he will. 8 MR. KING: The plans for those? 9 MR. McKENZIE: For the hangars, for the City to 10 review. The paving plan -- 11 MR. KING: If you haven't been over there to look 12 at the pad, you should. The County's done a magnificent job. 13 MR. GRIFFIN: Like a bowling alley. 14 MR. KING: They've done a wonderful job. It's 15 unbelievable. Even our contractor said that. Our contractor 16 said that -- 17 MR. LIVERMORE: He wished he could hire the County 18 more. 19 MR. McKENZIE: He said, "I wish I could use him on 20 a lot of our other projects." Which Len replied, "No." 21 (Laughter.) 22 MR. GRIFFIN: Send money. 23 MR. LIVERMORE: Well, I'd like to just make a -- a 24 kind of a comment with regard to T-hangars. Last week I was 25 at Steamboat Springs, Colorado, and I was involved with a 70 1 conversation there about hangars. You cannot believe the 2 difference in construction costs here versus there. It's -- 3 I'm talking about lots -- 4 MR. KING: Higher? 5 MR. LIVERMORE: Several times higher out there. 6 MR. KING: Really? 7 MR. LIVERMORE: Same items would probably be seven, 8 eight times higher. Unbelievable. 9 MR. KING: We got a good deal. All right, anything 10 else? Anybody else have anything? All right. Motion to 11 adjourn? 12 MR. LIVERMORE: I move. 13 MR. KING: Mr. Livermore, seconded by -- 14 (Mr. Griffin raised his hand.) 15 MR. KING: -- Mr. Griffin. All in favor? 16 (The motion carried by unanimous vote, 4-0.) 17 MR. KING: Four-zero. Thank you, guys. 18 (Airport Board meeting was adjourned at 10:39 a.m.) 19 - - - - - - - - - - 20 21 22 23 24 25 71 1 STATE OF TEXAS | 2 COUNTY OF KERR | 3 I, Kathy Banik, official reporter for Kerr County, 4 Texas, do hereby certify that the above and foregoing is a 5 true and complete transcription of my stenotype notes taken 6 at the time and place heretofore set forth. 7 DATED at Kerrville, Texas, this 19th day of March, 2014. 8 9 _______________________________ Kathy Banik, Texas CSR # 6483 10 Expiration Date: 12/31/14 Official Court Reporter 11 Kerr County, Texas 700 Main Street 12 Kerrville, Texas 78028 Phone: 830-792-2295 13 14 15 16 17 18 19 20 21 22 23 24 25