1 2 3 4 KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 5 Special Meeting 6 Wednesday, July 1, 2015 7 8:30 a.m. 8 Airport Terminal Conference Room 9 1877 Airport Loop Road 10 Kerrville, Texas 11 12 13 MEMBERS PRESENT: MEMBERS ABSENT: Corey Walters, Vice-President Stephen King, President 14 Ed Livermore Bill Wood 15 Kirk Griffin 16 AIRPORT BOARD STAFF PRESENT: 17 Bruce McKenzie, Airport Manager 18 COUNTY STAFF PRESENT: 19 Tom Moser, Commissioner Pct. 2 Jonathan Letz, Commissioner Pct. 3 20 21 CITY STAFF PRESENT: 22 23 VISITORS: David Bryant, Hill Country Aviation 24 Steve Huser, Huser Construction 25 2 1 I N D E X July 1, 2015 2 PAGE 3 CALLED TO ORDER 4 1. VISITORS FORUM 3 5 2. DISCUSSION AND POSSIBLE ACTION 6 2A Proposed lease of Building 19 (Paint Hangar) 7 (Executive Session as needed)Monthly 5 8 2B Recommendation for Airport Maintenance Supervisor position (Executive Session as needed) 14 9 3. EXECUTIVE SESSION 15 10 4. ADJOURNMENT 19 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 1 On Wednesday, July 1, 2015, at 8:30 a.m., a special 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. WALTERS: I'll call to order this special 8 meeting of the Kerrville/Kerr County Joint Airport Board on 9 Wednesday, July 1, 2015, and I'll call to -- we'll start off 10 with the visitors' forum. At this time, any person with 11 business not scheduled on the agenda may speak with the 12 Airport Board. No deliberation or action can be taken on 13 these items because the Open Meetings Act requires an item be 14 posted on the agenda 72 hours before the meeting. Visitors 15 are asked the limit their presentations to three minutes. Do 16 we have anybody that would like to speak on any item not on 17 the agenda? 18 COMMISSIONER MOSER: I do. I would like to say 19 something. I'd like to comment on the condition of the 20 parking lot at Mooney. I was over there the other day. 21 Fortunately, I had my hip boots on and was able to get from 22 my car into the car shack. It is atrocious, and we need -- 23 "we," the Airport Board, City/County, need to do something 24 really quick. When the people come in there to buy a 25 $700,000 airplane, it looks like the Grapes of Wrath over 4 1 there. It's terrible. But more important, for the 2 employees. I literally had to -- I walked -- you know, in 3 the visitor's spot, I walked up next to the fence, was able 4 to do it. But where the -- where the employees have to do it 5 is terrible. So, I would encourage the Airport Board to look 6 at that and come back to the City and County. I talked to -- 7 to the Judge yesterday and talked to -- Jonathan and I 8 talked. Well -- 9 COMMISSIONER LETZ: He advised; I didn't say 10 anything. 11 COMMISSIONER MOSER: Anyway, I talked to Charlie 12 Hastings, and I think we're ready to move, or, you know, you 13 guys need to hire somebody to blade that thing or whatever, 14 come back to us with what it takes, if you could. 15 MR. WALTERS: I think at the -- I wasn't present at 16 the last Airport Board meeting, but I believe -- it's my 17 understanding the board gave Bruce directive to take some 18 action toward getting that parking lot improved with 19 pavement, and I'll let Bruce kind of discuss where he is on 20 that. 21 COMMISSIONER LETZ: Well, I don't know if you can 22 do that. 23 MR. GRIFFIN: Can't discuss it. What you passed on 24 is fine, 'cause you just stated a fact. 25 MR. McKENZIE: But I'll be glad to talk to everyone 5 1 after the meeting about that, because I had clear direction, 2 and I followed -- I stayed in my lane with that. 3 COMMISSIONER MOSER: Yeah. 4 MR. McKENZIE: I'll be glad to explain that to 5 everybody after -- and it is moving forward. I know we can't 6 talk about this. 7 MR. WALTERS: That's right, excuse me, 'cause we 8 can't discuss this; it's not on the agenda. 9 COMMISSIONER LETZ: Okay. 10 MR. WALTERS: Okay, we'll go to the agenda items, 11 starting with 2A, the proposed lease of Building 19, Paint 12 Hangar. We've received a proposal from Hill Country Aviation 13 and Dave -- with Dave Bryant, and I'll let Dave talk about 14 his proposal or what he -- if you'd like to. 15 MR. BRYANT: Yeah. I wanted to see if we could get 16 the electricity turned on over there, so -- 17 MR. WALTERS: Do you mind standing up? There you 18 go. 19 MR. BRYANT: I want to see if we could get the 20 electricity turned on in that building -- I don't know how 21 easy that is to happen -- so I could see what's powered, what 22 needs to be fixed and things like that. I was talking to 23 Bruce about the other hangar as an option. He said it would 24 seem like it would be an easier thing to happen over there, 25 the other hangar. 6 1 MR. WALTERS: Which hangar is that? Building 18? 2 MR. GRIFFIN: Building 18, the U-shaped building? 3 MR. BRYANT: Yeah. I don't really like that hangar 4 very much, but -- 5 MR. McKENZIE: I just really -- I wasn't really 6 making a suggestion. I wanted to show you what was 7 available. 8 MR. BRYANT: Sure. 9 MR. McKENZIE: And that may or may not be available 10 because of Mooney. They haven't agreed to let it go yet. 11 They may want their new museum over there; we need to take 12 that into consideration. So, what's on the agenda is 13 Building 19, so -- which is the Paint Hangar. 14 MR. BRYANT: Okay. Well, I wasn't sure about that. 15 Well, I want to start a maintenance operation in that hangar, 16 and also store aircraft in there, and employ several 17 mechanics to work on aircraft. That's about it. Maintain 18 aircraft in there, store aircraft, and it would be nice to 19 have a road -- an access to it, and a taxiway to it. I just 20 wanted to see how viable that would be to happen. 21 MR. WOOD: Can we -- I think it's okay in the open 22 meeting to -- just to relay some of the background we have 23 when we had Ronnie wanting to lease the Brinkman hangar, just 24 to make Dave aware of what can happen. Number one, there's a 25 question about whether it's a change of use. It was a paint 7 1 hangar, and now it's going to be an aircraft storage and -- 2 and aircraft maintenance hangar. I don't know if the city 3 inspectors will consider that a change in use or not. But 4 there's a whole lot of things that could happen, Dave, that 5 would impede you going forward with that. What they would 6 want you to do is to show them drawings of what the new use 7 is going to look like and everything. Then they'll decide if 8 you need all this disability stuff. 9 MR. McKENZIE: A.D.A. 10 MR. WOOD: A.D.A., fire protection. I mean, 11 there's a whole plethora of stuff that they might ask you to 12 do, and we don't know, because they don't tell you ahead of 13 time. 14 MR. BRYANT: What's the size of that hangar? Do 15 you have that information? 16 MR. McKENZIE: 10,000 square feet, the Paint 17 Hangar. It's 100-by-100. 18 MR. WOOD: So -- 19 MR. BRYANT: I think anything smaller than 12,5 20 doesn't have to have the -- my information, doesn't have to 21 have fire. That's just what I heard. 22 MR. WOOD: That may be true. But it's their 23 interpretation, is what it will end up being. 24 MR. BRYANT: Who can I contact over there in the 25 city? 8 1 MR. McKENZIE: The building codes -- the director 2 of the building code, and also the fire marshal are the two 3 gentlemen you'd need to visit with. 4 MR. WOOD: I'm just saying this 'cause I don't want 5 you to go forward and waste your time, -- 6 MR. BRYANT: Sure. 7 MR. WOOD: -- and then it turn into all that. And 8 we'll talk about it, I guess, in executive session about any 9 other issue, but that's the number-one problem that I see in 10 going forward with this, the resistance that you might meet. 11 MR. BRYANT: I understand that. But I don't 12 know -- I don't know if there's a big difference between 13 painting and aircraft maintenance and storage. I don't know 14 if that's -- 15 MR. WOOD: I don't either. 16 MR. BRYANT: -- a change. 17 MR. WOOD: It's what they think of it is what it 18 will end up being. 19 MR. BRYANT: I'll get in contact with those guys. 20 MR. HUSER: I was helping David a little bit -- I'm 21 Steve Huser. And, really, the thought process was it's -- 22 it's not much of a building, and it's largely -- well it's 23 storing the City of Kerrville's Christmas decorations now, 24 and looks like a good opportunity to make something out of 25 it. And so our thought process was to put together a 9 1 proposal for you guys to see if that was even something that 2 you would even consider. We're not trying to buy the 3 building; we're just going to lease it, and so we'd be 4 willing to, you know, walk through with the City and all 5 that. But, I mean, right now it's not accessible by vehicle 6 or airplane. Well, if you get a four-wheel drive airplane, 7 you might could get to it. (Laughter.) But our -- our 8 thought process was simply to try to -- to develop a 9 maintenance operation on the field, and to try to create some 10 additional revenue for the airport. 11 But -- but our real thought process is, do you even 12 want to rent it? I mean, we can't -- I can't tell you what 13 Mooney's going to do or, you know, whether they want a new -- 14 you know, whether they want to keep it or you want to keep 15 it, or -- but I think David's identified an opportunity -- a 16 business opportunity for his company, and it would be easier 17 if that opportunity stayed at the airport -- at this airport. 18 And, really, that's about the only location that we've been 19 able to identify that would work. So, the real question is 20 if you guys, as a board, would give us some indication 21 whether you would be willing to even consider that, then I 22 think we put in the -- you know, we'd at least go set up a 23 meeting with the City and all of that. But we don't want to 24 chase our tail either. I mean, if you don't -- if you can't 25 even tell us which building you want to rent, how do we -- 10 1 how do we go forward to figure out which one of your 2 buildings you might want to rent unless you can give us some 3 direction? 4 And that's really the purpose of the letter, was 5 not to say this is a final lease. It was just to say, "Do 6 you want to rent a building?" And if so, we can put together 7 the business plan. You know, we can go talk to the fire 8 marshal and all that, but there's no reason to do that unless 9 that's what you want to do. And we tried to indicate in that 10 letter what we perceived to be some of the key issues, like 11 access to that facility. And if the timing is just not right 12 for leasing that, well, then we can sure cut this whole 13 process and go look somewhere else. But there's lots of 14 details. It's just -- is that something you guys want to 15 consider or not? And it's -- it is difficult to get to, and 16 it does require some investment on the part of the airport to 17 make it work, so, yeah -- 18 MR. WOOD: I'm all for it, more businesses and more 19 ways to generate revenue and utilize existing buildings. I 20 think what we want to do is to make sure that there's not 21 obstacles in the way that you don't know about, and even we 22 may not know about. And a lot of that has to do with what 23 Mooney's intentions are, whether they're going to build a new 24 airplane here, whether they're going to put their museum 25 here. You know, we don't -- we just want to make sure that 11 1 we don't make a misstep, and you don't make a misstep. 2 MR. HUSER: Sure. 3 MR. WOOD: But I'd love to have you here at the 4 airport, personally. 5 MR. WALTERS: Let's, I mean, make it very clear; 6 one of the primary goals of the airport is to produce more 7 revenue and to try to make our airport make money, and not 8 cost money for our owners. So, we have property, we have 9 assets, and we're definitely interested in generating income 10 out of those assets of the airport. And we greatly 11 appreciate your interest in the building, and there are a few 12 things that I believe that some of the members would like to 13 discuss, so we'll probably go into executive session to 14 review. But, you know, I think that -- and we appreciate 15 your proposal, and we think that competition is a healthy 16 environment for the airport, and we will certainly welcome 17 the additional services to the field. 18 COMMISSIONER LETZ: Question, if that's all right. 19 What's y'all's timeline? 20 MR. HUSER: Well, it's sitting there empty. 21 COMMISSIONER LETZ: I mean, but is this something 22 y'all would like to do A.S.A.P.? Or -- 23 MR. BRYANT: Right now. Right -- I'd like to do it 24 A.S.A.P. I have aircraft I can put in there right now. 25 MR. WALTERS: These are some of the things that -- 12 1 you know, that we really need a business plan which would 2 describe all these things. You know, the timing, the number 3 of employees. You know, once you know the -- the 4 improvements that are going to be needed to the facility, 5 we're going to need a list of those improvements and a value 6 associated with those. Those are things that we need to 7 consider to take your proposal to the next step. 8 MR. HUSER: I guess we would request from you some 9 action on our request of whether you're even interested in 10 that. I mean, the hangar is absolutely worthless to us 11 without a new taxi -- some sort of ability, either permission 12 to tug airplanes or some kind of a, you know, road to get to 13 the hangar. So, I guess if you came back to us and said, 14 "We're interested in pursuing a lease with you guys on a 15 certain basis," then it would be worth our time to go to the 16 fire marshal and go to the City, and I think we would want to 17 do that in conjunction with support from the Airport Board 18 and the Airport Manager that that's where we were trying to 19 get to, and what would it take to do that? And then if that 20 was your intention, we'd go deal with the City and make sure 21 there wasn't some ridiculous, you know, grandfathered clause 22 that we had to comply with, and then based on that, we'd be 23 glad to put together a business plan. But to ask for a 24 business plan from a guy that's just saying, "Would you be 25 interested in leasing your hangar?" that's completely 13 1 inaccessible right now, I don't think that's fair, Corey. I 2 mean -- 3 MR. WALTERS: Well, I think coming -- I mean, we 4 have some things that we have to do ourselves. We have to 5 get a cost estimate for extending the taxiway and getting 6 vehicular access to the building also. So, you know, we have 7 a little background work that we need to do. But, I mean, I 8 think if we come back and ask you to, you know, prepare a 9 business plan and provide the list of improvements, and you 10 get some cost estimates and provide some financial 11 statements, that's also going to be a directive that says 12 that we're interested in your proposal. 13 MR. HUSER: Well, what I would ask you to do is 14 tell us if you're even interested in considering it. 15 MR. WALTERS: We are interested. 16 MR. HUSER: And you know that there's roads and you 17 know that there's gates, and you know that those things have 18 to be done. And then if you say, "Yeah, we will be willing 19 to do that in some reasonable period of time," you know -- 20 MR. WALTERS: I think that's part of the reason why 21 we're here today and have it on our agenda, is that we are 22 interested. And, you know, we're probably going to discuss 23 this in executive session amongst the board members, and -- 24 and probably come out and visit, you know, further on it. Is 25 that fair? 14 1 MR. BRYANT: Sure. 2 MR. HUSER: When do you think you could give us 3 some indication of your willingness to go forward? 4 MR. WALTERS: I think probably in just about 10 5 minutes. 6 MR. HUSER: That's great. You know, quite 7 honestly, there's an opportunity -- David's, you know, 8 identified an opportunity for his business to go forward with 9 the maintenance, and it's a little bit like fresh fruit, you 10 know. I mean, if you don't move forward, pretty soon 11 somebody else has either stepped into that void, or those 12 airplanes that need maintenance are, you know, taken 13 somewhere else. And so, you know, we want to move forward, 14 too. And -- 15 MR. WALTERS: And so do we. 16 MR. HUSER: Okay. 17 MR. GRIFFIN: Okay. I make a motion that we go 18 into executive session to discuss this opportunity. 19 MR. WALTERS: Okay. 20 MR. LIVERMORE: Well, we have another item. 21 MR. WALTERS: We have another item. Let's go on to 22 Item 2B. That item is for the recommendation of the Airport 23 Maintenance Supervisor position, and that's recommended by 24 our Airport Manager. 25 MR. McKENZIE: And I would like to discuss that 15 1 with you in executive session, -- 2 MR. WALTERS: Okay. 3 MR. McKENZIE: -- please. 4 MR. WALTERS: Do we have a motion to go into 5 executive session for Item 2A -- 6 MR. LIVERMORE: So -- 7 MR. WALTERS: -- and 2B? 8 MR. LIVERMORE: So moved. I didn't mean to take 9 your motion. 10 MR. GRIFFIN: That's fine. 11 MR. LIVERMORE: All right. I move that we go into 12 executive session to discuss both Items 2A and 2B. 13 MR. WALTERS: Okay. We have a motion to go into 14 executive session for Item 2A under Section 551.072, and 2B 15 under Section -- executive session under Section 551.074. 16 All in favor -- 17 MR. WOOD: I second the motion. 18 MR. WALTERS: Oh, ask for a second, excuse me. All 19 in favor? 20 (The motion carried by unanimous vote, 4-0.) 21 MR. WALTERS: All right, we'll go into executive 22 session at 8:48. 23 (The open session was closed at 8:48 a.m., and an executive session was held off the record.) 24 - - - - - - - - - - 25 MR. WALTERS: We're coming out of executive session 16 1 at 9:36, and back into the meeting. On Item 2A, the proposed 2 lease of Building 19 and the proposal by Hill Country 3 Aviation, there's some items -- some background items -- 4 there's some items that we need to do, David, on this before 5 we move forward with your proposal, and relative to the 6 building itself; what it's going to take us to get it 7 leasable, talking about power, water, sewer, things of that 8 sort that we don't know, that we -- we've asked Bruce to 9 obtain, you know, the necessary steps to see what it's going 10 to take to get that building in proper shape. 11 MR. BRYANT: Okay. 12 MR. WALTERS: So there's also some other items, 13 such as the cost for extending the taxiway, and also the -- 14 getting the access to the building. We need to get it -- you 15 know, an assessment on what those costs are for the airport 16 as well. We want to get these things and get the answers to 17 these first before we tell you to start spending money or 18 spending energy to do the things that we're then going to 19 need from you, such as the -- the business plan, the list of 20 improvements, talking with the City, you know, costs, budget, 21 financial statement, those things. We need to get this 22 information first before we ask you to do those things. We 23 are interested in your use, and we are interested in your 24 proposal. We're not saying that we're agreeable with the 25 specifics that you've outlined here in the proposal, but 17 1 we're certainly interested in trying to take it to the next 2 step. 3 MR. BRYANT: Okay. 4 MR. WALTERS: And as soon as we have our answers, 5 then Bruce will -- and that we feel comfortable that we're 6 ready to move forward with the next step with you, Bruce will 7 get with you and let you know, and then ask to you proceed on 8 these things for us to consider for your proposal. 9 MR. BRYANT: That sounds good to me. 10 MR. GRIFFIN: And one thing, and this is a question 11 for you guys. Can we ask that maybe we can get a status at 12 our regular scheduled board meeting in a couple weeks here? 13 MR. McKENZIE: Absolutely. 14 MR. GRIFFIN: To just make sure we kind of know 15 where it's going. And, actually, it might be -- we might 16 have the answer for you, is where I'm going, David. 17 MR. McKENZIE: Mike told us to have the answer by 18 then. 19 MR. GRIFFIN: So that you've got a timeframe -- 20 MR. BRYANT: That's -- 21 MR. GRIFFIN: -- that you're working to. So, our 22 next scheduled board meeting will be the third Monday -- 23 MR. McKENZIE: 20th of July. 24 MR. GRIFFIN: -- of July, and at that point, 25 hopefully we can then say, "Okay, you go do your stuff and 18 1 we'll get together." 2 MR. BRYANT: Okay. 3 MR. WALTERS: We greatly appreciate your interest 4 in the building, and we're -- you know, we'd love to see, and 5 excited that, you know, there might be an opportunity for a 6 use for the building, and a use that would be complementary 7 to the airport. 8 MR. BRYANT: Thank you. 9 MR. GRIFFIN: Okay? 10 MR. LIVERMORE: David, we've got a building there 11 that's basically been out of use for 10 years, and we just 12 need to learn a lot about the property we have. 13 MR. BRYANT: Sure, understandable. 14 MR. GRIFFIN: We don't want to lease you something 15 that's -- yeah. 16 MR. WALTERS: On the next item, Item 2B, regarding 17 the airport maintenance supervisor position, we're asking 18 Bruce to move forward to approve the applicant and the hiring 19 of that position, and take whatever necessary steps to do so. 20 Is there any other business at hand? 21 MR. BRYANT: I'm good -- oh, the left PAPI is still 22 out. 23 MR. McKENZIE: Yeah, I know. I've got the folks 24 coming. 25 MR. BRYANT: Okay. 19 1 MR. McKENZIE: I know all about it. Thank you, 2 though. 3 MR. WALTERS: Do we have a motion to adjourn? 4 MR. LIVERMORE: I so move. 5 MR. WALTERS: Second? 6 MR. WOOD: I'll second. 7 MR. WALTERS: All in favor? 8 (The motion carried by unanimous vote, 4-0.) 9 MR. BRYANT: Thank you, guys. 10 MR. WALTERS: We're adjourned. 11 (Airport Board meeting was adjourned at 9:41 a.m.) 12 - - - - - - - - - - 13 14 STATE OF TEXAS | 15 COUNTY OF KERR | 16 I, Kathy Banik, official reporter for Kerr County, 17 Texas, do hereby certify that the above and foregoing is a 18 true and complete transcription of my stenotype notes taken 19 at the time and place heretofore set forth. 20 DATED at Kerrville, Texas, this 1st day of July, 2015. 21 22 _______________________________ Kathy Banik, Texas CSR # 6483 23 Expiration Date: 12/31/16 Official Court Reporter 24 Kerr County, Texas 700 Main Street 25 Kerrville, Texas 78028 Phone: 830-792-2295