1 2 3 4 KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 5 Regular Meeting 6 Monday, June 16, 2014 7 8:30 a.m. 8 Airport Terminal Conference Room 9 1877 Airport Loop Road 10 Kerrville, Texas 11 12 MEMBERS PRESENT: MEMBERS ABSENT: 13 Stephen King, President Corey Walters, Vice-President 14 Ed Livermore Bill Wood 15 Kirk Griffin 16 AIRPORT BOARD STAFF PRESENT: 17 Bruce McKenzie, Airport Manager Carole Dungan, Executive Assistant 18 19 COUNTY STAFF PRESENT: Tom Moser, Commissioner Pct. 2 20 James Robles, Assistant Auditor 21 CITY STAFF PRESENT: 22 Jack Pratt, Mayor Sandra Yarbrough, Finance Director 23 24 VISITORS: Ilse Bailey, Airport attorney 25 Jonas Titas, Kerrville Economic Development Corporation Mark Armstrong, Kerrville Daily Times 2 1 I N D E X June 16, 2014 2 PAGE 3 CALLED TO ORDER 4 1. VISITORS FORUM - 5 2. KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD MEMBER FORUM 3 6 3. CONSENT AGENDA 7 3A Approval of May 19, 2014 Board Meeting Minutes 9 8 4. DISCUSSION AND POSSIBLE ACTION 4A Monthly Financials (May 2014) 9 9 4B Funds Transfer 15 10 4C Mooney Lease (Executive session as needed) 18, 11 26 4D Mooney Roof Consultant (Exec. session as needed) 19, 12 35 5. INFORMATION AND DISCUSSION: 13 5A General Update 20 14 6. EXECUTIVE SESSION 25 15 7. ADJOURNMENT 40 16 17 18 19 20 21 22 23 24 25 3 1 On Monday, June 16, 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, the 8 Kerrville/Kerr County Joint Airport Board, June 16th, 2014, 9 meeting to order. Visitors' forum. At this time, anybody 10 with business not scheduled on the agenda may speak to the 11 board. No deliberation may be taken -- no deliberation or 12 action may be taken on these items because the Open Meetings 13 Act requires it be posted for 72 hours. Anyone have anything 14 they'd like to say? 15 (No response.) 16 MR. KING: No? Item 2, Kerrville/Kerr County Joint 17 Airport -- joint board -- Board Member Forum. At this time, 18 any board member have anything to speak on that's not on the 19 agenda? 20 MR. LIVERMORE: I've got a housekeeping matter. 21 MR. KING: No deliberation may be taken because the 22 Open Meetings Act requires it to be posted for 72 hours. If 23 action is required, we'll put it on the agenda for a future 24 meeting. Anybody? 25 MR. LIVERMORE: I've got a housekeeping item. 4 1 Yesterday, I had my plane fueled over at the hangar, and the 2 truck had to come down that muddy slope rather than drive 3 around. They said they can't drive around, by rule. What 4 kind of a rule is that? 5 MR. McKENZIE: I've never told them they couldn't 6 drive around at any point. 7 MR. LIVERMORE: Well, for some reason they believed 8 they cannot. 9 MR. McKENZIE: We'll rectify that issue. Thank you 10 for letting me know. 11 MR. GRIFFIN: 'Cause they left two real nice mud 12 trails. 13 MR. LIVERMORE: That's the point, isn't it? 14 MR. McKENZIE: And maybe the management over there 15 told them not to go down there till we got the pavement done. 16 That perhaps could be the cause, but I'll talk to them. 17 MR. GRIFFIN: They went down it anyway. 18 MR. McKENZIE: Okay. All right. Thanks, Ed. 19 MR. KING: You're welcome. Anybody else have 20 anything? I had one thing. I know it was in the paper this 21 morning; Mark had -- the paper had posted a little blurb on 22 our -- what do we call those? 23 COMMISSIONER MOSER: Planning committee. 24 MR. KING: Planning committee, how we had not had a 25 planning committee meeting in two years. We're supposed to 5 1 have one every quarter. And I just wanted to publicly state 2 that, you know, we did -- have tried. We tried to have a few 3 of those planning committee meetings in the beginning, and we 4 had a very -- lack of attendance. Nobody wanted to have 5 them. Is that correct, Bruce? 6 MR. McKENZIE: That's -- yes, sir. 7 MR. KING: Nobody wanted to attend them. That 8 planning committee is an outshoot of some negotiation between 9 the City and the County in a time when we had a different 10 mayor in the -- in the position. The former mayor did not 11 ever attend a meeting of the Airport Board, and therefore, 12 they felt -- the City at that time felt like they weren't 13 involved in the procedures of the airport, what was going on 14 out here. The door's always been open. I believe every 15 meeting we have, it's been open. So they came up with this 16 planning committee deal, and -- and that was supposed to get 17 the City more involved in the loop. Well, since that -- that 18 regime is no longer here, and they've moved on, and we have a 19 new mayor. Our new mayor has been at every meeting we've 20 ever had, I believe, with the Airport Board. And we've had 21 attendance of -- Jonas has been here at almost every meeting, 22 and we've had at least one County Commissioner. 23 MR. McKENZIE: Sandra's been here every meeting. 24 MR. KING: Sandra's been here almost every time. 25 So, the City has had very good representation on this airport 6 1 -- at any Airport Board meeting we've ever had, as has the 2 County. The County usually has two Commissioners here, plus 3 they'll a representative from staff here. So, we -- I don't 4 want the perception to be that we just threw those meetings 5 aside. But it became a little more obvious that those 6 planning committee meetings -- if anyone would like to put 7 anything on the agenda, they're more than welcome to. The 8 Mayor or the County is more than welcome. We have 9 correspondence all the time between the County and City about 10 what to put on the agenda. So, I just wanted to make that 11 clear to the public, that, you know, I don't think we are 12 dodging a meeting. We've actually -- we're going to try to 13 start them back up again, see if anybody will attend them. 14 But I don't -- you know, we're not going to have meetings out 15 here that nobody attends. If we want to have meetings every 16 week, I'll run for county commissioner; I can do that and 17 make money, and get a good salary doing that. But, you know, 18 if no one wants to attend the meetings like we've had in the 19 past, then, you know, we're not going to keep having them. 20 Yes, sir? 21 COMMISSIONER MOSER: Let me comment. 22 MR. LIVERMORE: I have a comment. 23 COMMISSIONER MOSER: Steve hit the nail right on 24 the head, and it was for that -- it was communication between 25 the County and the City. And if we see there's not a need 7 1 for it, we can change -- modify the interlocal agreement to 2 eliminate the requirement to have one at least once a year. 3 So, that's it. We can do that. 4 MR. LIVERMORE: I would just like to say that this 5 is kind of a burr in my saddle. The previous 6 administration -- and it was the previous mayoral 7 administration; this was his attempt to have eight people 8 supervised by five. 9 COMMISSIONER MOSER: I don't agree with that. 10 MR. LIVERMORE: That's exactly it. 11 MAYOR PRATT: Let me just add something, if I can, 12 Steve. A lot of the staff that was covered in the planning 13 committee prior was being covered with -- since I've been 14 here, it's been covered in meetings like this. So, a lot of 15 planning that was done in the past under the guidelines of an 16 Airport Planning Committee has been done in these meetings, 17 and so you combine the -- the accomplishments of the past 18 into one meeting rather than two. 19 MR. KING: I agree, Mayor. And at our next 20 meeting -- we are going to have a Planning Committee meeting. 21 I hope everyone attends and we have representatives from both 22 sides and the airport. I'm going to propose maybe we do it 23 once a year, twice a year, something like that. But, you 24 know, I want the public to realize that any meeting we have, 25 there's a representatives of the City and the County here, 8 1 and prior to the meeting they are sent a request for agenda, 2 any items to be put on the agenda. The County and the City 3 both are very good at recommending stuff that we might put on 4 our agenda. And also, we have a pretty good phone system out 5 here that works really well now. It seems to work better now 6 in the last three or four or five years. But the City can 7 get in here, and the County can get in here; they can 8 actually talk on the phone together, and when they talk, they 9 kind of find out what's going on at out the airport. It's a 10 really neat system. So, we'll go from there. If anybody 11 else has a question, we'll be more than happy to address it. 12 MR. WALTERS: I'd like to add one more thing. This 13 is not the only forum in which the Airport Board members have 14 communication with either or both the City and the County 15 about airport matters. There's many times Bruce, all the 16 airport members -- board members individually, have 17 conversations about the business that we have here at the 18 airport with County Commissioners and the Mayor and City 19 staff. So, we feel like we've had -- we have a lot of 20 communication with both the City and the County. 21 MR. KING: All right. I just wanted to -- I just 22 wanted to be sure everybody was clear on that; that, you 23 know, it's not like we're shirking our duties, I don't think. 24 But we are going to have a meeting. We're going to have one, 25 and we're going to determine whether there is a need to have 9 1 it in the future. Item 3, Consent Agenda. All items listed 2 below within the consent agenda are considered routine by the 3 board and will be enacted in one motion. No separate 4 discussion of items unless a board member or citizen request, 5 in which event the item will be removed from the general 6 order of business and considered in normal sequence. 7 Approval of the meetings -- the minutes of the April 19th -- 8 May 19th, 2014 board meeting minutes. 9 MR. LIVERMORE: So moved. 10 MR. KING: Motion offered by Mr. Livermore. 11 Seconded? 12 MR. WALTERS: I second. 13 MR. KING: By Mr. Walters. Discussion about the 14 minutes? All in favor? 15 (The motion carried by unanimous vote, 5-0.) 16 MR. KING: 5-0. Discussion and possible action, 17 Item 4. 4A, monthly financials. James Robles, from the 18 County. 19 MR. ROBLES: Good morning, everyone. 20 MR. WOOD: Morning, James. 21 MR. ROBLES: How about them Spurs? (Laughter.) 22 MR. LIVERMORE: How about them? 23 COMMISSIONER MOSER: Even got the colors. 24 MR. ROBLES: I was trying to go with the U.S.A. 25 World Cup match. All right. Page 1, this is for the month 10 1 of May, ending May 31st. Total cash and receivables, 2 421,374.94. Payables, 96,707.17. Page 2, total equity, 3 revenue, and expenses in fund balance, 324,667.77. Total 4 liabilities and equity, 421,374.94. Page 3, monthly revenue, 5 23,715.87. If you look underneath the lease rental income 6 section, Line 47-325-601, you'll see "Brown Hangar lease" 7 there. We're going to change that name to "Brinkman Hangar 8 lease." They didn't want to kill another tree to correct 9 that, but you'll see it on the June financials. I guess 10 y'all wanted to track that separately. Page 4, salary and 11 benefits total, 15,893.98. Page 5, this is a breakdown of 12 personnel, supplies, maintenance, professional services. The 13 total for that will be on the next page, 16,667.72. 14 MR. WOOD: I've got a question. 15 MR. ROBLES: Yes, sir? 16 MR. WOOD: There was a big difference in 17 year-to-date in the prior year under 47-800-202, building and 18 structures. I'm sure there's an explanation, but I couldn't 19 remember what that was for. 20 MR. ROBLES: Are you talking about the maintenance 21 mowing contract? 22 MR. WOOD: No. 23 MR. McKENZIE: 202, that's building and structures. 24 We had -- we put a new water heater in recently; that was 25 $2,800, which was unexpected. The water heater quit. It's 11 1 one of those on-demand, so we do not burn any propane. We 2 don't -- we're not heating water all the time. 3 MR. WOOD: Okay. 4 MR. McKENZIE: It's just -- 5 MR. WOOD: I just wanted to point that out. 6 MR. McKENZIE: And we're going to go over that in 7 just a second. I've got a budget amendment for -- 8 MR. WOOD: Okay. 9 MR. GRIFFIN: Could we -- on 47-800-201, we started 10 a mowing contract; we got halfway through it. 11 MR. McKENZIE: He finished it last week. He did; 12 he finished everything last week. I checked it. But we're 13 going to mow again, hopefully, beginning toward the end of 14 the week. 15 COMMISSIONER MOSER: Oh, you're not. 16 MR. McKENZIE: I knew that was coming. 17 MR. LIVERMORE: He's already heard that from me. 18 MR. McKENZIE: But I've heard complaints about the 19 grass being too tall. 20 COMMISSIONER MOSER: Give it another couple weeks. 21 MR. McKENZIE: We'll try. We'll try. 22 MR. LIVERMORE: Well, I think we ought to also just 23 try to stretch our mowing into the budget so we don't -- you 24 know, if you can delay a month, maybe we'll end up not having 25 one. 12 1 MR. McKENZIE: Okay, sure. 2 MR. KING: Does he mow along the runway? Who mows 3 that? 4 MR. McKENZIE: We do with our big mowers. 5 MR. KING: We do, or he does? 6 MR. McKENZIE: He does when he does his big mowing, 7 but we keep them trimmed constantly. 8 MR. KING: Yeah. 9 MR. McKENZIE: We do that with our mowers. 10 MR. KING: Couldn't we maybe, you know, push that 11 process back about two weeks if we ran our mower down the 12 side? 13 MR. McKENZIE: And we did last week. We -- 14 MR. LIVERMORE: It's been trimmed up. 15 MR. KING: Okay. 16 MR. McKENZIE: Yes, sir, we did that. 17 MR. ROBLES: Okay. Page 7, total utilities for the 18 month -- 19 COMMISSIONER MOSER: What page are you on? 7? 20 MR. ROBLES: Yes, sir. 1,717.19 21 COMMISSIONER MOSER: I was going to comment on 6. 22 Again, to Bruce and company, 65 percent of the budget 23 remaining on total expenditures, that's great. Two-thirds of 24 the way through the -- through the year. 25 MR. McKENZIE: Thanks. 13 1 MR. ROBLES: Okay. Page 8, capital account. 2 Balance is 73,882.05. Page 9, we have revenue, 126,413.61. 3 Page 10, expenditures, 157,841.70. Page 11, year-to-date 4 expenditures, 202,714.71, leaving a balance of 13,078.36. 5 MR. KING: Yes, sir? 6 MR. GRIFFIN: Back on Page 6, I know we've 7 discussed it, and we got a line item in there on 800-675 on 8 our 10 percent of the new T-hangar project, when do we pay 9 the State our 10 percent? 10 MR. McKENZIE: As we receive -- 11 MR. GRIFFIN: So it just -- it piecemeals as 12 everything else does? 13 MR. McKENZIE: Yes, sir. 14 MR. GRIFFIN: We don't lump sum it or something? 15 MR. McKENZIE: No, sir. We have to pay our 16 contractor as we go along, and he's so far submitted two pay 17 estimates, and he's been paid two pay estimates since the 18 project has started. 19 MR. KING: Are we paying our money or the State's 20 money right now? 21 MR. McKENZIE: The State sends us a check for their 22 part, and when it gets here, we put our 10 percent with it 23 and pay the bill. 24 MR. KING: Okay. 25 MR. GRIFFIN: So, as of May 31st, we haven't spent 14 1 any? Is that what I'm reading here, James? I mean -- 2 MR. ROBLES: As of May 31st, yeah. 3 MR. GRIFFIN: Okay. 4 MAYOR PRATT: I got a question on that, then, 5 Bruce. Are we withholding for -- 6 MR. McKENZIE: 10 percent. 7 MAYOR PRATT: 10 percent. So, we're -- are we 8 contributing to that 10 percent? 9 MR. McKENZIE: Yeah. TexDOT's holding the 10 10 percent. 11 MAYOR PRATT: TexDOT's holding -- 12 MR. KING: Oh, they're holding it? 13 MR. McKENZIE: They're holding the 10 percent. 14 MR. GRIFFIN: Okay. That -- that then makes sense. 15 MR. McKENZIE: Till we kind of -- 16 MR. GRIFFIN: Okay. That's why this is the way it 17 is. Okay, that makes sense. Thanks. 18 MAYOR PRATT: You're welcome. 19 MR. KING: Okay. Any questions on the budget -- I 20 mean on the financials? All right. Thank you very much, 21 James. 22 MR. McKENZIE: Thank you, James. 23 MR. KING: Motion to approve? 24 MR. WOOD: I make a motion we approve the budget as 25 presented. 15 1 MR. KING: The financials as presented. 2 MR. WOOD: Or financials. 3 MR. KING: Financials. Seconded? 4 MR. GRIFFIN: I'll second. 5 MR. KING: Second by Kirk. Discussion? None being 6 heard, all in favor? 7 (The motion carried by unanimous vote, 5-0.) 8 MR. KING: All in favor, 5-0. Funds transfer? 9 MR. McKENZIE: This is -- I've got two items on 10 this, the first one being we have a little bit of excess 11 money in our chemical and medical supplies line item, as well 12 as a little excess in the instruments and apparatus. I would 13 like to take $3,000 out of the chemical and medical line item 14 and 4,000 out of the instruments and apparatus, and put that 15 into contingency fund to hold us to the end of the year. And 16 the reason for that is, we've doubled our legal fees this 17 year because of -- the Brinkman hangar situation was the 18 genesis of most of it. None of us knew it was going to fall 19 that way. But we just wanted to make sure we get to the end 20 of the year, and I think that will catch everything that we 21 need to do, if we'll just move that $7,000 into the 22 contingency. And we're still in good -- we're still fine. I 23 just need to move a little money around line item-wise. 24 MR. LIVERMORE: To make the accounting work? 25 MR. KING: Yeah. 16 1 MR. WALTERS: You said -- you're talking about 2 doubling our legal fees. Was that pursuant to the Ronnie 3 Solomon situation? 4 MR. McKENZIE: Yes, sir. Ronnie Solomon situation, 5 that's correct. 6 MR. WALTERS: Okay. 7 MR. McKENZIE: Thank you. More specifically, 8 that's correct. 9 MR. KING: Okay. 10 MR. McKENZIE: And I would just like to have the 11 board's permission to just -- it's -- we still have it; we 12 just need to move it. 13 MR. KING: Do we need a motion on that? We don't 14 need a motion, do we? 15 MR. McKENZIE: I just need your permission to do 16 it. 17 MR. KING: You got my permission. 18 MR. McKENZIE: Okay, thank you. 19 MR. KING: Huh. 20 MAYOR PRATT: Bruce, how much are you moving out of 21 103 versus 205? 22 MR. McKENZIE: I'm moving $3,000 out of 103, Mayor, 23 and I'm going to move $4,000 out of 205. 24 MAYOR PRATT: Thank you. 25 MR. KING: So how much will that -- 3,000 out of 17 1 103? 2 MR. LIVERMORE: A motion is not required to do 3 that? 4 MR. KING: I guess not. How much out of 103? 5 MR. McKENZIE: $3,000. 6 MR. KING: 3,000 out of 103? 7 MR. McKENZIE: Yes, sir. 8 MR. KING: And the other one was what, 105? 9 MR. McKENZIE: 205. That would be 4,000, for a 10 total of 7,000 to put in our contingency fund. 11 MR. KING: Okay. 12 COMMISSIONER MOSER: I don't know if you need board 13 approval on that. You don't need City and County; I think, 14 less than $10,000. 15 MR. McKENZIE: Five percent of the budget. 16 COMMISSIONER MOSER: Five percent, okay. 17 MR. McKENZIE: Yes, sir, way less than that. 18 MR. KING: Okay. 19 MR. WOOD: The main thing is just to communicate to 20 the financial people so they can make that change. 21 MR. McKENZIE: We'll get with those folks as well. 22 And the -- may I go to the next one? 23 MR. KING: Yeah. 24 MR. McKENZIE: We are on the agenda for Kerr County 25 for next Monday and the City for next Tuesday to ask for 18 1 permission to move $100,000 out of our reserves into -- in 2 order to pay for our consultant for this Mooney roof 3 situation. We just need to officially go to these folks. 4 They all know it's coming, but we need to go to them in a 5 meeting and request it. And I've -- Steve, I've got us on 6 the agenda Monday and Tuesday -- Monday morning and Tuesday 7 evening. 8 MR. KING: At 6:00? 9 MR. McKENZIE: 6 o'clock. 10 MR. KING: What day is that? 11 MR. McKENZIE: Next Monday. 12 COMMISSIONER MOSER: Monday morning at 9 o'clock. 13 MS. DUNGAN: 23rd and 24th. 14 MR. McKENZIE: One's at 9:30 at Commissioners 15 Court, and the other ones at 6:00 at the City. 16 COMMISSIONER MOSER: That's a timed item? 17 MR. McKENZIE: Yes, sir, it is for the county. I 18 don't know what time it will be on the agenda down at the 19 city, but at 6 o'clock. 20 MR. KING: All right. That's the 100,000? 21 MR. McKENZIE: That's for the 100,000 for the 22 consultant. 23 MR. KING: Okay. Anything else on 4B? 24 MR. McKENZIE: No, sir, that's all I've got. 25 MR. KING: Item 4C, the Mooney lease. Where are we 19 1 at on this thing? 2 MS. BAILEY: I'd like to go into executive 3 difference session to talk about the Mooney lease and the 4 Mooney roof consultant for a little bit before you deal with 5 that. 6 MR. KING: Okay. Is it super secret or what? 7 MS. BAILEY: Well, I mean, it's appropriate for 8 executive session. 9 MR. KING: Is it? Where are we at on the lease? 10 Let me just -- overall on the lease, are we close? 11 MS. BAILEY: Yeah. Yeah, we're close. 12 MR. KING: Have we had correspondence back from 13 both parties -- from all parties involved? 14 MS. BAILEY: I think so. 15 MR. KING: You think so? Okay. All right. Do you 16 want to -- 17 MR. LIVERMORE: Do you want to go ahead and finish 18 with Item 5, maybe, and come back to it? I don't know that 19 the item amounts to anything. 20 MR. KING: How about on 4D, on the roof consultant? 21 Should we talk about that all in executive session, or are we 22 going to talk about any of that in open session? 23 MS. BAILEY: I'd like to talk about it in 24 conjunction -- 4C and 4D together before you talk about them 25 in open session. I think you have open session stuff to say, 20 1 but -- 2 MR. WALTERS: I can go ahead and say this in open 3 session. Kirk and I have had communication with the roofing 4 consultant. We're awaiting their revised proposal back. We 5 do have an agreed upon overall fee, which is itemized and 6 broken down at $100,000. 7 MR. GRIFFIN: And we were hoping to have it today. 8 We just haven't gotten it yet, so we could then meet with you 9 guys and go over everything we got covered in it. 10 MR. WALTERS: I think the guys just got a little 11 backed up. 12 COMMISSIONER MOSER: I think the County put 130,000 13 in, you know, for that fund transfer, and it's reimbursing 14 you, so good. 15 MR. GRIFFIN: We're in good shape. We just got to 16 get the data out of them so we can have our meeting. 17 COMMISSIONER MOSER: Sure. 18 MR. GRIFFIN: And press on. 19 MR. KING: Okay. What we'll do is we'll take -- 20 we'll find out what Ilse, our attorney, has to say in 21 executive session, and then we'll go back into open session 22 and discuss that in open session. Okay? If there's anything 23 we can discuss. Item 5, general update. 24 MR. McKENZIE: The first thing, we are now at full 25 capacity on our new T-hangars, and all the deposits have been 21 1 received. So, we're at full capacity, and we still have a 2 waiting list, so we're now -- you have 28 hangars, and 3 they're occupied. 4 COMMISSIONER MOSER: How big a waiting list? 5 MR. McKENZIE: Still have eight. 6 COMMISSIONER MOSER: Good. 7 MR. McKENZIE: Yes, sir. 8 MR. LIVERMORE: Is that a waiting list that you 9 have vetted, a quality waiting list? 10 MR. McKENZIE: It's a waiting list of about the 11 last six to eight weeks, so it's -- 12 MR. KING: Yeah. 13 MR. McKENZIE: I am going to contact those 14 gentlemen and request a $300 deposit for them to stay on the 15 list. That's the new M.O. If you want on the list, it's a 16 $300 nonrefundable deposit. 17 MR. WALTERS: I talked to one of the gentlemen who 18 has leased one of the T-hangars. He said he was a pilot; did 19 not have a plane, and he waited on getting a plane because 20 there was no hangar space on the field. And now that he has 21 a hangar space, he's pursuing getting an aircraft to fill it. 22 MAYOR PRATT: Send him down to Mooney. 23 MR. LIVERMORE: I think he bought one. Guy out of 24 Lubbock? 25 MR. WALTERS: Yes, sir. 22 1 MR. LIVERMORE: I think he might have bought one. 2 COMMISSIONER MOSER: He'll probably buy fuel. 3 MAYOR PRATT: I got something on the update, Steve. 4 MR. KING: Yes? 5 MAYOR PRATT: You know, when we started this 6 T-hangar project, the State said that we were the first, and 7 it was sort of an experimental -- 8 COMMISSIONER MOSER: Beta. 9 MAYOR PRATT: New Braunfels has just got a new 10 contract for 12 new T-hangars, so they're just taking the 11 cookie and recutting it over in New Braunfels. 12 MR. LIVERMORE: Are they doing the design-build? 13 MAYOR PRATT: Yes, sir, just like we have. 14 MR. McKENZIE: So it's working. 15 MAYOR PRATT: It's working. 16 MR. McKENZIE: That's good. That's good. To 17 continue on, we did -- for those of you that haven't been out 18 here, we did pour the first slab. The first building slab 19 has been poured. The second building slab should be poured 20 this week, hopefully. The Brinkman hangar leases should be 21 done. We're aiming for 1 July to have all that complete, and 22 looks like we will. Our attorney says that she'll have 23 everything completed by -- 24 MS. BAILEY: I'm trying to get those leases out 25 this week. 23 1 MR. WOOD: Is this fully leased? 2 MR. McKENZIE: And it's fully leased, but -- yeah, 3 it's fully leased. It's fully leased. You were going to -- 4 MR. WALTERS: I was just going to -- back to the 5 T-hangars on the general update, are we still on schedule? 6 MR. McKENZIE: Well, they sent us -- Robert sent 7 us -- Robert Lansford, our contractor, sent me the schedule, 8 but it cuts off at the end of July. Kirk and I have been 9 talking about this for a couple of weeks. We may be pushed 10 back in the construction. We didn't pour us another slab 11 last week, so we may get pushed into the middle of September, 12 but it's moving along at a pretty good clip now, so -- 13 MR. GRIFFIN: I think the biggest hangup right now 14 is getting the building on-site. 15 MR. McKENZIE: And it should ship next Monday, the 16 steel. 17 MR. GRIFFIN: That's our critical path right now. 18 If you -- in talking with Robert last week, although we 19 didn't have it on a piece of paper, the critical path runs 20 straight through the building showing up and then the 21 erection of the steel. So -- 22 MR. WALTERS: What is our completion date -- our 23 original completion date? 24 MR. GRIFFIN: We were showing the third week of 25 August. 24 1 MR. McKENZIE: Labor Day weekend. 2 MR. GRIFFIN: So we had about a week pad to Labor 3 Day. So, that's -- it's getting -- it's pushing it. 4 COMMISSIONER MOSER: Is the steel on schedule? 5 MR. GRIFFIN: The steel has been a little bit late, 6 and that was because of the -- the problems that were found 7 late in the drawings, in getting the approval. He didn't get 8 it ordered until we had everything blessed by the city guys, 9 and that was due to the fact of an error in the drawings that 10 he got out of his architect, not -- not the -- the stuff 11 plowed through the city like Sherman went through Georgia. 12 MR. WOOD: So the City actually caught some stuff? 13 MR. McKENZIE: No, Robert caught it. 14 MR. GRIFFIN: He caught it before he submitted -- 15 Robert caught it before he submitted it to the City. 16 MR. McKENZIE: That's why it went through the city 17 so fast. 18 MR. WOOD: Better than catching it after. 19 MR. GRIFFIN: Absolutely. 20 MAYOR PRATT: Absolutely. 21 MR. GRIFFIN: So that was the hangup, was in their 22 design and drawing phase. 23 MR. McKENZIE: The only other thing I've got is 24 this week we're scheduled to put our LED taxiway lights in. 25 They will be on-site Tuesday or Wednesday, providing the 25 1 weather's okay. Take him about three days to do it. 2 MR. GRIFFIN: I'm anxious to taxi over them. 3 MR. KING: See what they look like. 4 MR. GRIFFIN: Yeah. 5 MR. McKENZIE: And that's all I have. 6 MR. GRIFFIN: I'll have to come out at night just 7 to taxi. 8 MR. KING: Okay. All right. Well, I guess 9 we'll -- we'll go into executive session under 4C and 4D, 10 under Sections 551.071, 551.072, and 551.087 on both of those 11 items. And then we'll not take any action in executive 12 session; we'll come back as quickly as possible into open 13 session, and if we have any discussion, we'll bring it forth. 14 Okay? 15 MAYOR PRATT: Need a motion. 16 MR. KING: Need a notion to go into executive. 17 MR. LIVERMORE: So moved. 18 MR. KING: Okay. Second? 19 MR. WOOD: Second. 20 MR. KING: Mr. Wood. All in favor? 21 (The motion carried by unanimous vote, 5-0.) 22 MR. KING: 5-0. 23 (The open session was closed at 9:02, and an executive session was held off the record.) 24 - - - - - - - - - - 25 MR. KING: We're back out of executive session at 26 1 9:23. We took no action in executive session. But on the 2 Mooney -- on the Item 4C, the Mooney lease, what we -- what 3 our counsel has hold told us on this, County and City both, 4 is that we are very close to having those leases finished. 5 We just need to -- we need to have some language -- what 6 you're saying, Ilse, is at the end of the lease, we need some 7 sort of language in there tying those back to the 380 and 381 8 agreements? 9 MS. BAILEY: Right. I think that's the -- my 10 recommendation was not to put the detail in the lease, 11 because it's not really lease appropriate, but instead to say 12 that somehow that the lease is subject to the executed 380 13 and 381 agreements that I understand the City and the County 14 are working on with Mooney that incorporate most of these 15 provisions. 16 COMMISSIONER MOSER: What you're looking at here, 17 that's not a 380 or 381. 18 MR. KING: No. 19 MR. McKENZIE: Oh, no. No, it's not. 20 MS. BAILEY: But it looks like it's -- 21 COMMISSIONER MOSER: So why does the 380/381 get 22 into the lease? 23 MS. BAILEY: Well, our instructions from the owners 24 were that the lease needs to be made subject to whatever plan 25 or agreement the City and the County make with Mooney, and my 27 1 understanding is that that was going to be a 380 and 381 2 agreement, but I'm -- I'm not privy to all that. So I'm just 3 saying that whatever we put in the lease, if the lease is 4 going to be subject to a financial agreement between the 5 owners and Mooney, that we're not going to put the details of 6 that agreement in the lease; we're going to say the lease is 7 subject to whatever you would come out -- come up with. Does 8 that make sense? 9 COMMISSIONER MOSER: Not really. I don't know why 10 the Airport Board doesn't just have the authority for the 11 lease. 12 MS. BAILEY: We do. 13 COMMISSIONER MOSER: Okay. 14 MR. KING: We do. 15 COMMISSIONER MOSER: Why put the City and the 16 County 380 and 381 -- 17 MAYOR PRATT: I think what she's talking about, 18 Tom, is that the -- let me talk about the 380, and you can 19 talk about the 381. 20 COMMISSIONER MOSER: Okay. 21 MAYOR PRATT: But it's -- it's the number of jobs 22 and those type things that go into the 380 agreement. 23 MR. TITAS: Performance measures. 24 MAYOR PRATT: And the performance measures that go 25 in there. That if -- if they quit production or are down, 28 1 you know, a certain amount of time without producing, then 2 the lease is terminated. 3 MR. TITAS: That is correct. Rather than have that 4 in the lease, is that what you're talking about? 5 MR. WALTERS: We're talking about -- about making 6 that -- we're going to have a provision in the lease that 7 says that the tenant -- that the lease is subject to the 8 tenant performing its obligations under the 380 and the 381. 9 MR. TITAS: Rather than have they must have "X" 10 employees. 11 MR. WALTERS: Exactly. 12 MS. BAILEY: Yeah, 'cause that's not lease 13 appropriate. 14 MR. TITAS: Okay. We're just clarifying. 15 MR. WOOD: We need to make the lease as simple as 16 we can. 17 MAYOR PRATT: Absolutely. Because why take 18 language that you have somewhere else and duplicate it? Just 19 tie it together. 20 MR. KING: You guys are going to have 380 and 381 21 agreements with them, and what we're saying, instead of 22 putting those 380 -- putting those in the lease, we'll just 23 make them that this lease is subject to those 380 and 381 -- 24 MR. WALTERS: The tenant's performing its 25 obligations under the 380 and 381 agreement. 29 1 COMMISSIONER MOSER: Do we have that in the draft 2 lease? 3 MS. BAILEY: Not yet, no. 4 COMMISSIONER MOSER: So you're going to send that 5 to us? 6 MR. WALTERS: It will be pretty much exactly the 7 way we just said it. 8 COMMISSIONER MOSER: Okay. Just put it in writing 9 so that we can see it. Can do you that? 10 MS. BAILEY: Well, I can, except that my thought is 11 that it will say, you know, new section, "Lease is subject to 12 the County and the City's 380 and 381 agreement as per 13 attached Exhibits A and B." But you guys have to come up 14 with attached Exhibits A and B. 15 COMMISSIONER MOSER: Just send it to us, will you, 16 please? 17 MS. BAILEY: Mm-hmm. 18 MR. WALTERS: I have a question. Is Mooney a 19 signator to the 380 and 381 agreement? 20 MAYOR PRATT: Yes. 21 MR. WALTERS: Okay. 22 MR. TITAS: It'll be a contract with them. 23 MR. KING: Okay. When do y'all think that's going 24 to happen? 25 MAYOR PRATT: I think we're not that far away. 30 1 MR. TITAS: The City has a draft. I haven't -- I 2 don't know -- I'm meeting with Heather on Wednesday, and I'll 3 find out exactly where the County is. 4 MR. WALTERS: Can I ask you a question? When do 5 you propose to present these to Mooney and David Jackson? 6 MR. TITAS: As soon as possible. Hopefully within 7 two weeks, three weeks. 8 MR. WALTERS: I mean, I assume you're going to send 9 it to their -- 10 MR. TITAS: By all means. 11 MR. LIVERMORE: They have agreed to this. 12 MR. KING: That's a different document. That's 13 not -- 14 MR. LIVERMORE: Okay. 15 MR. KING: This thing here, okay, that -- that's on 16 the lease, okay? That's the lease. And you agree, Tom, as 17 far as one -- one Commissioners Court member, that's kind of 18 how we'd like to handle the lease? 19 COMMISSIONER MOSER: I think so. But -- 20 MR. KING: We're going to send it to you. 21 COMMISSIONER MOSER: -- send it to me so that we 22 can have the County Attorney -- 23 MR. KING: Right, take a look at it. 24 COMMISSIONER MOSER: -- take a look at it, yes. 25 MR. KING: Okay. We're going to do that. 31 1 COMMISSIONER MOSER: All right. 2 MR. KING: Now, on the -- as a sidebar to that 3 thing, we have this document that was produced by the City 4 and the County, I suppose. 5 COMMISSIONER MOSER: No. 6 MR. KING: Who produced it? 7 MAYOR PRATT: Final version is the city's version. 8 That's the city's version. 9 MR. KING: This is the city's version? 10 MAYOR PRATT: It is a takeoff from what Tom had 11 presented, and -- and what the City presented. 12 MR. KING: Mm-hmm. 13 MAYOR PRATT: And we did not accept some of Tom's 14 recommendations. 15 MR. KING: I understand. And so this probably 16 needs to go -- what -- as the Airport Board, this -- for the 17 public who's probably unaware of this as much as we are, the 18 airport roof repair, what it is basically is a concept and a 19 process, and it kind of walks you through how this whole 20 system would work with the Airport Board supervising the job, 21 but not -- Mooney being responsible for the job and bidding 22 the job and paying -- and then paying for the job and then 23 being reimbursed for the job, and our consultant being 24 involved in it -- that we hired being involved in the process 25 as our representative. And it's just -- it's got a whole 32 1 bunch of things in here. What -- what the Airport Board -- 2 we've read this over and looked at it. What we need to see 3 is, we'd like to have the same document back to us with three 4 signatures at the bottom down here. 5 MAYOR PRATT: Okay. 6 MR. KING: One from the City, one from the 7 County, -- 8 MAYOR PRATT: And one -- 9 MR. KING: -- and one from David Jackson 10 representing Mooney. 11 MAYOR PRATT: -- from David Jackson or Mooney. 12 MR. KING: Believe me, if it's got Mooney's name on 13 it, David Jackson will have looked at it. 14 MAYOR PRATT: We want Mooney's signature. 15 MR. KING: We want Mooney's signature. When these 16 three people have all signed that, then we'll give this thing 17 some validity. 18 MR. TITAS: But that document was formed from the 19 direction of the County to -- 20 MR. KING: Right. 21 MR. LIVERMORE: That's really at your level. 22 That's not at this level. 23 MAYOR PRATT: I understand. 24 MR. TITAS: But we wanted your input to -- 25 MR. KING: That's a work -- we consider that a work 33 1 in progress. It's not going to be part of the lease. That's 2 going to be a -- that's not going to hold up our process at 3 all. 4 MR. TITAS: Are there any red flags in that 5 document that you see that you guys do not agree to, anything 6 like that that we can incorporate? 7 MR. KING: Numerous. 8 MR. WALTERS: That's between y'all. 9 MAYOR PRATT: We're just talking about the board. 10 We're not talking about the City/County issues right now. 11 MR. WOOD: I'd like to define this document. Are 12 these our marching orders, or going to be when you guys -- 13 are these going to be our marching orders as to what -- how 14 you'd like to have the roof repaired, administrated? 15 MR. TITAS: That's the process, yes. 16 MAYOR PRATT: The process, but not the marching 17 orders. It's the way you got the consultant, who's going to 18 be -- 19 MR. WOOD: All of it's contingent on getting the 20 board -- 21 MR. TITAS: That's exactly right. 22 MR. WOOD: We don't know what the extent's going to 23 be. 24 MAYOR PRATT: That's exactly right. 25 MR. KING: So we don't think this document -- this 34 1 thing y'all are working on here, I'd like to see David 2 Jackson look at it first, because I think that will probably 3 answer a lot of my questions. But -- 4 MR. TITAS: I think the idea was to have all of 5 the -- 6 MR. KING: Right. 7 MR. TITAS: -- the stakeholders' input before we 8 take it over to the private entity. 9 MR. KING: Okay. Well, I think we can -- we can 10 look at it again. We can all look at it, give you our 11 comments on it, but we have numerous -- 12 MR. WOOD: This is the first I've seen it, so I 13 want to take time. 14 MR. KING: Our attorney has comments on it, as far 15 as legality issues. 16 MS. BAILEY: I've been talking to Heather Stebbins 17 about it, and -- and if she's comfortable with it after she 18 reviews it based upon our conversations, then I think from 19 the board's point of view, we're -- we're in favor of making 20 the tenancy of Mooney subject to whatever agreement the three 21 other parties come up with. We don't feel like it's our 22 business to get involved in the details of all that. Just as 23 long as it meets statutory requirements and meets the 24 requirements of the Local Government Code that we're not 25 avoiding the bid process, I think we're happy. 35 1 MR. TITAS: Well, this is just for any input and 2 comments that you might have before we have a final draft. 3 MR. KING: Got it. And on the consultant -- Mooney 4 consultant under Item 4D, we are -- we're just moving forward 5 with that. We're going to go ahead and hire the consultant. 6 We're -- as soon as they get back to us. We're going to hire 7 them, hire the consultant, have the work done, have the 8 report generated. And then once the report is generated, 9 we're going to get together with the owners and present that 10 to the owners, and I guess to Mooney, and we'll go forward 11 from there. Anything -- 12 MR. WALTERS: Well, we do -- once we get the 13 proposal back, do we need to go before the City Council and 14 Commissioners Court for approval? 15 MR. KING: Right, okay. So that's why we're moving 16 forward on that, and there's no other attachments to that. 17 MAYOR PRATT: Is there going to be any delay as 18 to -- let me rephrase that. Is getting started contingent 19 upon you guys meeting again to approve it? 20 MR. KING: No. 21 MAYOR PRATT: Okay, so we can move forward. 22 MR. KING: I don't think so. Is it? 23 MR. GRIFFIN: Well, I assume once we get -- I guess 24 not. I assume once we get the okay next week -- 25 MR. KING: We've given them direction, I believe, 36 1 already. 2 MR. McKENZIE: Once we get the funding approval 3 from these folks, then we can march on. 4 COMMISSIONER MOSER: So, Monday and Tuesday next 5 week is when you're going to present the cost and what 6 they're going to do? 7 MR. McKENZIE: No, just the cost. We don't -- they 8 haven't started the process yet. 9 COMMISSIONER MOSER: But you're going to have -- 10 MAYOR PRATT: I understand. I'm saying what's -- 11 what's going to start the process, other than the funding? 12 MR. KING: You mean -- 13 MR. McKENZIE: Once we get the funding, then we can 14 turn those guys on to start examining the -- 15 MAYOR PRATT: Okay. So, there's no meeting 16 required to do that? 17 MS. BAILEY: Not for the -- 18 MAYOR PRATT: I just want to make sure -- we got to 19 make sure that they understand down there that we're trying 20 to meet the deadline as soon as possible rather than waiting 21 on another meeting. 22 MR. KING: No, I think at our meeting when we 23 appointed the committee of Corey and Kirk, I believe we 24 instructed them to hire the consultant -- to negotiate and 25 hire the consultant and develop a scope of work that needed 37 1 to be done on the -- you know, to get us to the -- to the 2 paper that we need. And we're basically -- as long as you 3 have -- funding is approved, I believe we're ready to go. 4 MR. GRIFFIN: As soon as we get this thing from 5 them, we'll send it to you guys electronically so that you 6 can -- 7 MAYOR PRATT: I think when that committee was 8 formed, that Tom and I were on that committee. 9 MR. GRIFFIN: But we haven't -- 10 MAYOR PRATT: I haven't heard from anybody. 11 MR. GRIFFIN: All we've done is talked with them 12 and said, hey, based on what they had submitted to us before, 13 we had comments after we met, sitting in here with them. 14 Then we have yet to get -- we've kind of held -- they came 15 back with a proposal that then we talked to them about and 16 said, "Hey, we've got to be under $100,000," and so they went 17 off to put that package together. We haven't seen it again. 18 MR. WALTERS: We've negotiated services and we've 19 negotiated the contract price. 20 MAYOR PRATT: Okay. 21 MR. GRIFFIN: But we haven't seen anything from 22 them to have a meeting about what you're talking about. 23 MR. WALTERS: When we get the revised proposal 24 back -- I mean, they sent us an original, they sent us the 25 revision. We then asked them to send us -- we had a 38 1 discussion with them. We're waiting for this -- what will 2 be -- we hope will be the final proposal, including all of 3 our comments. When we get that, then Kirk and I would be 4 happy to sit down with you, Mayor, and you, Tom, and go 5 through that proposal to make sure that y'all are satisfied. 6 COMMISSIONER MOSER: Good. That could probably 7 happen this week. 8 MR. GRIFFIN: We're hoping. We were -- 9 MAYOR PRATT: That's what I'm trying to find out. 10 MR. KING: But they don't figure there's any reason 11 to get together with you guys just to tell you that we're 12 waiting on information from this consultant. 13 MAYOR PRATT: I understand. So -- 14 MR. KING: And we've told them that time is of the 15 essence, and I've told Corey and Kirk both that, you know, we 16 don't want to be -- 17 MR. WOOD: Drop them an e-mail and tell them what's 18 going on. 19 COMMISSIONER MOSER: It would be nice -- 20 MR. KING: Nice if we could have that before 21 y'all's meeting. I know what you're about to say. 22 COMMISSIONER MOSER: That's exactly what I was 23 going to say. Be nice to have that for Monday -- the Monday 24 and Tuesday meeting. 25 MR. GRIFFIN: It would be very nice, yes. 39 1 MR. WALTERS: I promise you, right after this 2 meeting, I'm on the phone to Tom Kita to find out where our 3 document is. 4 MR. KING: Any other questions on this? Any more 5 questions from the owners? 6 MAYOR PRATT: None. 7 MR. KING: From the press? Okay. Any from anyone 8 else in the audience? 9 MR. LIVERMORE: Ready to go. 10 MR. KING: We're ready to go. 11 MR. TITAS: If you guys have any comments on this 12 process -- 13 MR. KING: We will. 14 MR. TITAS: -- send it to me or Tom. 15 MR. KING: Thank you very much, Jonas. Appreciate 16 it. Okay. 17 MR. LIVERMORE: Move we adjourn. 18 MR. KING: Motion to adjourn. 19 MR. WOOD: Second. 20 MR. KING: Second? Oh, Ed? Ed made the motion, 21 and -- 22 MR. WOOD: Bill seconded. 23 MR. KING: -- Bill made the second. Discussion? 24 None being heard, all in favor? 25 (The motion carried by unanimous vote, 5-0.) 40 1 MR. KING: 5-0. Thank you. 2 (Airport Board was adjourned at 9:37 a.m.) 3 - - - - - - - - - - 4 5 6 7 STATE OF TEXAS | 8 COUNTY OF KERR | 9 I, Kathy Banik, official reporter for Kerr County, 10 Texas, do hereby certify that the above and foregoing is a 11 true and complete transcription of my stenotype notes taken 12 at the time and place heretofore set forth. 13 DATED at Kerrville, Texas, this 17th day of June, 2014. 14 15 _______________________________ Kathy Banik, Texas CSR # 6483 16 Expiration Date: 12/31/14 Official Court Reporter 17 Kerr County, Texas 700 Main Street 18 Kerrville, Texas 78028 Phone: 830-792-2295 19 20 21 22 23 24 25