1 2 3 KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 4 Special Meeting 5 Wednesday, August 12, 2015 6 8:30 a.m. 7 Airport Terminal Conference Room 8 1877 Airport Loop Road 9 Kerrville, Texas 10 11 MEMBERS PRESENT: MEMBERS ABSENT: 12 Stephen King, President Corey Walters, Vice-President 13 Ed Livermore Bill Wood 14 Kirk Griffin 15 AIRPORT BOARD STAFF PRESENT: 16 Bruce McKenzie, Airport Manager Carole Dungan, Executive Assistant 17 18 COUNTY STAFF PRESENT: Tom Moser, Commissioner Pct. 2 19 Brenda Doss, Auditor James Robles, Assistant Auditor 20 Courtney Thompson, Assistant Auditor 21 CITY STAFF PRESENT: 22 Jack Pratt, Mayor 23 VISITORS: 24 Dave Bryant Steve Huser, Huser Construction 25 Robert Fenner 2 1 I N D E X August 12, 2015 2 PAGE 3 CALLED TO ORDER 4 1. VISITORS FORUM 3 5 2. KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 6 MEMBER FORUM - 7 3. CONSENT AGENDA 3A Approval of special meeting July 1, 2015, 8 and July 20, 2015 Board Meeting Minutes 4 9 4. DISCUSSION AND POSSIBLE ACTION 4A Monthly Financials - July 4 10 4B Runway 3/21 Rehabilitation Project 9 11 4C Use of Building 19 13 12 5. INFORMATION AND DISCUSSION: 13 5A General Update 34 14 6. EXECUTIVE SESSION -- 15 7. ADJOURNMENT 40 16 17 18 19 20 21 22 23 24 25 3 1 On Wednesday, August 12, 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. KING: All right, I'll call the meeting to 8 order, the Kerrville/Kerr County Joint Airport Board, 9 August 12, 2015. Item 1, Visitors' Forum. At this time, any 10 person with business not scheduled on the agenda may speak to 11 the Airport Board. No deliberation or action may be taken on 12 these items because the Open Meetings Act requires it to be 13 posted for 72 hours. Visitors are asked to limit their 14 presentations to three minutes. Anyone? 15 MR. McKENZIE: I think Brenda was going to tell us 16 about the new auditor. 17 MS. DOSS: Yes. 18 MR. KING: Okay. 19 MS. DOSS: Pressler Thompson has notified me that 20 they will be able to do the audit this year, so we should 21 have an engagement letter to submit at the next meeting. 22 MR. KING: Okay, thank you. Item 2, Kerrville/Kerr 23 County Joint Airport Board member forum. At this time, any 24 member of the board may speak to the board or the public on 25 something not scheduled on the agenda. No formal action may 4 1 be taken on these items because the Open Meetings Act 2 requires it be posted for 72 hours before the meeting. If 3 formal action is required, item will be placed on the agenda 4 for a future meeting. Anybody? None being heard, Item 3, 5 consent agenda. All items listed below within the consent 6 agenda are considered routine by the board and will be 7 enacted in one motion. There will not be separate discussion 8 unless a board member or citizen requests, and in the event 9 the item will be removed to the general order of business and 10 considered in normal sequence. Item 3A, approval of our 11 meeting -- minutes of the meeting for July 1st and July 20th 12 board meeting. Anybody have any problems with either one of 13 those? 14 MR. LIVERMORE: I move they be approved. 15 MR. KING: All right, moved. Second? 16 MR. WALTERS: I second. 17 MR. KING: Was everybody here at those meetings? 18 Pretty much? All in favor? 19 (The motion carried by unanimous vote, 5-0.) 20 MR. KING: Opposed? None being heard, 5-0. Item 21 4, discussion and possible action. The monthly financials by 22 James. 23 MR. ROBLES: A few items to go over. Mr. Livermore 24 just brought up Page 1 on the balance sheet, the T-hangar 25 lease receivable. That was a prior period adjustment. We 5 1 need to reverse that off. And directly underneath it is the 2 prepaid insurance. We just put that in. That's to pay for 3 the insurance between -- before the beginning of the fiscal 4 year begins; that's your portion. Also, I think it's 5 important to note that if you look on Page 5, we do have a 6 couple items that are over budget, our phone service and the 7 light and power, which we knew that one was going to go over. 8 MR. LIVERMORE: Which one is it? Phone service? 9 MR. ROBLES: Yes, the cell phone service, 800-401, 10 and the light and power. We can do a budget adjustment to 11 adjust those if y'all would like. 12 MR. GRIFFIN: Would it be better to wait until the 13 end of the year? 14 MR. ROBLES: We could do that, I guess. There's 15 two ways we can do it. 16 MR. GRIFFIN: It's not a great amount of money. 17 MR. ROBLES: No, it's not. 18 MR. GRIFFIN: As opposed to doing it three times 19 before now and then. 20 MR. ROBLES: Exactly. We could wait to the end and 21 know the exact amount of the transfer. 22 MR. KING: Oh, that one there, okay. 23 MR. WALTERS: And this one here. 24 MR. KING: Over by $4 or $5. 25 MR. ROBLES: Also, the mowing contract, we have two 6 1 cycles left. I think at the last meeting we predicted we 2 were only going to use one of them. 3 MR. McKENZIE: We may not need that, James. 4 Depends on the rain. 5 MR. ROBLES: Looks pretty short to me right now. 6 Also, you guys are 118,000 over -- revenue over expenditures 7 this year, and you have 55 percent of your budget remaining 8 with about 15 percent of the year left, so y'all have done a 9 great job on controlling the expense side -- Mr. McKenzie for 10 that. 11 MR. KING: 115,000 left? 12 MR. ROBLES: I'm sorry? 13 MR. KING: You have 115,000? 14 MR. ROBLES: No, we have 15 percent of the year 15 left. 16 MR. KING: But you have 115,000 above expenses? 17 MR. ROBLES: Yes. 18 MR. KING: Okay. 19 MR. ROBLES: 118,000. Slightly inflated, because 20 we have a credit in the professional service line. We still 21 owe the contractors out here for the roof, 30,000. I think 22 Bruce indicated we're not going to pay that this fiscal year, 23 so we'll have to set up -- I believe it was a payable account 24 for next year -- 25 MS. DOSS: Yes. 7 1 MR. ROBLES: -- and carry that over. We'll adjust 2 that before next meeting so we can see it. 3 MR. KING: Okay. 4 MR. ROBLES: Other than that, everything looks 5 pretty good, if y'all have any questions. 6 MR. KING: Questions, anybody? 7 COMMISSIONER MOSER: I think Page 7 shows that on 8 total expenditures, same thing that James is saying. There's 9 36 percent of the budget remaining, and about 15 percent of 10 the year, so that's outstanding. Good job. 11 MR. KING: Well, thanks. Okay. 12 MR. WOOD: Just for a point of interest, if you 13 look on Page 10 on the Mooney roof project, you can see 14 647,000 has been -- 15 MR. KING: Expended. 16 MR. WOOD: -- expended. And somebody said it's 17 probably all the materials. 18 MR. KING: Yeah. Okay. 19 MR. WOOD: Just -- 20 MR. KING: We'll have an update on that in the 21 update section. 22 MR. McKENZIE: We're going to have a complete 23 update on it in September; we'll have numbers and a report on 24 that in September as well. 25 MR. KING: I had a tour of it. Long way to go. 8 1 MR. McKENZIE: Oh, they've got a long way to go. 2 MR. KING: They haven't done much. 3 MR. McKENZIE: The Hammer House. 4 MR. KING: No, I mean they haven't done much as far 5 as moving off of one building. 6 MR. McKENZIE: Mm-hmm. 7 MR. KING: Other than tightening a whole bunch of 8 screws. 9 MR. McKENZIE: Which means they probably are not 10 going to finish by Thanksgiving. 11 MR. KING: Yeah, I was surprised. I mean, there's 12 a lot of work to do; it's amazing. 13 MR. McKENZIE: It is. 14 MR. WALTERS: What was the start date? 15 MAYOR PRATT: April. 16 MR. McKENZIE: They started in April, right -- no, 17 they started mobilizing the end of April, and they started 18 working in May, just before the -- 19 MR. WALTERS: What was the date of completion? 20 MR. McKENZIE: Supposed to be done by Thanksgiving. 21 MR. WALTERS: Not going to happen. 22 MR. KING: Okay, no turkey dinner for them. Okay. 23 Item -- okay, do we want to approve the financials? 24 MR. WOOD: Do we have to make a motion on it? 25 MR. KING: I need a motion. 9 1 MR. WOOD: I move we accept the financials as 2 presented. 3 MR. KING: Second? 4 MR. GRIFFIN: I'll second. 5 MR. KING: Discussion? All in favor? 6 (The motion carried by unanimous vote, 5-0.) 7 MR. KING: 5-0. 8 MR. WOOD: What happens if we don't approve them? 9 (Laughter.) 10 MR. GRIFFIN: James doesn't get paid or something. 11 COMMISSIONER MOSER: Budget gets reduced. 12 MS. DUNGAN: Then I have a heart attack. 13 MR. KING: Okay. Item 4B, Runway 3/21 14 rehabilitation project. Bruce? 15 MR. McKENZIE: Thank you, sir. I received three 16 quotes on that project, and if you look in your packets, I've 17 got an aerial picture that I've taken, and I've marked out 18 what exactly we're going to be rehabbing, slurry seal and 19 restriping. It will be these lines here, and the Taxiway 20 Echo. Let me show everybody so we're on the same page. It's 21 from the end to right where those lines are. This is new 22 down here. We did it in our other project, and we'll do this 23 taxiway out here. See what it is, Steve? 24 MR. LIVERMORE: What is this right here? Oh, 25 that's just a -- 10 1 (Low-voice discussion off the record.) 2 MR. McKENZIE: The prices that I've got on these 3 quotes were $94,000, $59,000, and $35,000 and some change on 4 each one of them. The low bidder is a local contractor from 5 Ingram. He had a wonderful presentation. He met the spec -- 6 the TexDOT specs. It's Sealcoat Specialists from Ingram, 7 Texas. They just completed a project for the airport at 8 McGregor; they have a large runway like we do. I checked his 9 references; I talked with the Airport Manager at McGregor, 10 and he had nothing but praises for these folks. So -- 11 COMMISSIONER MOSER: It's all to the same specs? 12 MR. McKENZIE: It's all to the same spec. So, that 13 being said, I'll be glad to answer any questions. That's to 14 crack-seal the runway, that's to put the sealcoat on it, two 15 coats of -- of product, and then restripe the runway and 16 renumber it. As well as Taxiway Echo, which is right behind 17 Steve. 18 MR. LIVERMORE: Bruce, do you need a motion? 19 MR. McKENZIE: I need a motion to -- to let me move 20 forward with letting these gentlemen start this in October. 21 MR. LIVERMORE: What is the name? 22 MR. McKENZIE: Sealcoat Specialists from Ingram, 23 Texas. 24 MR. LIVERMORE: I move that we accept Sealcoat 25 Specialists' bid on this project. 11 1 MR. McKENZIE: It's a quote. 2 MR. KING: A quote. 3 MR. LIVERMORE: Quote, I'm sorry. 4 MAYOR PRATT: Can I ask a question? 5 MR. McKENZIE: You bet. 6 MAYOR PRATT: What would be the process after the 7 quote? Are you going to -- you got a quote. How do you seal 8 it where you don't end up with more money at the end? 9 MR. McKENZIE: I don't understand the question. 10 MAYOR PRATT: Well, it's a quote, and so -- 11 MR. McKENZIE: But it's -- but once he signs this 12 and we sign this, it's a firm, fixed price. 13 MAYOR PRATT: Okay, so it is a bid. 14 MR. GRIFFIN: It's a bid. 15 MR. KING: So, is he going to go -- I mean, there's 16 no outs on this deal? 17 MR. McKENZIE: Mm-hmm, that's it. 18 MAYOR PRATT: What's the difference in product 19 between his product he's using and the others that had a 20 higher price? 21 MR. McKENZIE: It's different -- well, I don't know 22 why their prices are higher. 23 MAYOR PRATT: Yeah. I mean -- 24 MR. McKENZIE: I don't know. That's why I ran 25 these references, and they were spotless. So -- 12 1 COMMISSIONER MOSER: That's the reason I asked is 2 it the same spec, too. You said it was. 3 MR. KING: And he's done airports before? 4 MR. McKENZIE: Yes, sir. 5 MR. KING: Okay. 6 MR. McKENZIE: He has. 7 MR. KING: Okay. 8 COMMISSIONER MOSER: And it's in the budget? 9 MR. McKENZIE: We can do it after 1 October. We 10 can do -- 11 MR. KING: So you're going to pay for it how out of 12 the budget? 13 MR. McKENZIE: RAMP grant. 14 MR. KING: RAMP grant? 15 MR. McKENZIE: Yes, sir. 16 MR. LIVERMORE: That won't influence any further 17 expenditures that we have? 18 MR. KING: This will not affect our entitlement 19 funds -- or what do you call those? 20 MR. McKENZIE: Primary entitlement funds. 21 MR. KING: Primary entitlements, okay. 22 MR. McKENZIE: We can leave those be. Don't 23 increase -- 24 MR. KING: And TexDOT's okay with this? 25 MR. McKENZIE: Yes, sir. I visited with them about 13 1 it. Yes, sir, I did. 2 MR. KING: All right. Second? 3 MR. WALTERS: I second. 4 MR. KING: Discussion? 5 MR. LIVERMORE: Sounds great. Good job on getting 6 quotes. 7 MR. KING: Good job on getting the quotes. 8 MR. LIVERMORE: Quotes, bids, whatever. 9 MR. KING: Yeah. Hold on. All in favor? 10 (The motion carried by unanimous vote, 5-0.) 11 MR. KING: 5-0. 12 MR. LIVERMORE: Like the presidium or whatenever, 13 da. 14 MR. KING: Item 4C, what do y'all want to do on 15 that? What are we going to do on 4C? 16 MR. McKENZIE: I think David Bryant and Steve Huser 17 would like to address the board. 18 MR. KING: Okay. Item 4C, use of Building 19. 19 That is the paint hangar, correct? 20 MR. McKENZIE: Yes, sir. 21 MR. KING: Is that right? 22 MR. McKENZIE: It is. 23 MR. KING: Okay. Which is currently vacant. 24 MR. McKENZIE: That's correct. 25 MR. KING: We have control over this building, 14 1 correct? 2 MR. McKENZIE: We do. And as I was instructed, I 3 visited with the chief building official, Danny Batts. I had 4 him on site, as well as the fire marshal, which is Chris Lee, 5 as well as Jason Lackey, the assistant fire marshal, as well 6 as two and a half hours was spent -- was spent with an 7 electrician to see what it would take to bring that building 8 up to code electrically. And I forwarded all that 9 information to David Bryant for his information, as I was 10 instructed to do at the last meeting, and they've got the 11 information now. 12 MR. KING: Gentlemen, do y'all want to -- 13 MR. LIVERMORE: Can you give us what that number 14 was? 15 MR. McKENZIE: Sure. The electrical, just to get 16 the electrical up to code was -- I haven't got the itemized 17 line item yet, but it's going to be between $28,000 and 18 $30,000 just to get it electrically up to code. 19 MR. KING: Who was that from? 20 MR. McKENZIE: Guadalupe Electric. And Danny Batts 21 and Chris Lee have both written a very detailed list of, you 22 know, their -- their issues with it, and what they don't have 23 an issue with as well. But it's going to -- we can go 24 through this, or -- it's going to take some work to fix it. 25 MR. LIVERMORE: I mean, do you have any estimate at 15 1 all? I know -- 2 MR. McKENZIE: Probably -- 3 MR. LIVERMORE: -- that quote is not a bid; it's an 4 estimate. 5 MR. McKENZIE: It would be a shot in the dark. 6 MR. WOOD: Where did we get that $28,000 -- 7 MR. McKENZIE: From Guadalupe Electric. 8 MR. WOOD: Did they give you an itemization? 9 MR. McKENZIE: He's going to. He hasn't yet, but 10 he -- 11 MR. WOOD: I'd like to see that. 12 MR. McKENZIE: -- he said -- I'm just looking at 13 this, and I pressed him, and he said 28, 30 grand, three 14 weeks with three men to get it to code. 15 MR. WOOD: Well, if you're not going to be painting 16 anything, I don't know why you'd have to have explosive-proof 17 motors. 18 MR. McKENZIE: If you're going to be working on 19 airplanes and there's full tanks in there, I mean, it's -- 20 the fire marshal and the chief building official did a -- 21 they went over this pretty -- pretty seriously. 22 MR. KING: And they agree with changing the use on 23 the building? 24 MR. McKENZIE: Danny -- the chief building official 25 said we're not changing the use to a degree that he's real 16 1 concerned about that, but we still have to meet certain 2 requirements, like forward drains in case there's a fuel 3 spill, things of that nature. And he deferred to the fire 4 marshal about the electrical. 5 MR. WOOD: How were they using it as a paint hangar 6 if they weren't doing all that stuff? 7 MR. McKENZIE: It was built over 40 years ago, 8 Bill. That's a -- 9 MR. WOOD: Yes, I guess the codes have changed over 10 40 years. 11 MR. LIVERMORE: I bet they've changed a lot. 12 MR. KING: Dave -- Mr. Bryant? 13 MR. BRYANT: Good morning. Doesn't it have some 14 kind of drainage in it now? Or a trench? 15 MR. McKENZIE: There's a trench around it, but I 16 don't know where the cachement basin is, and I don't know 17 what they were catching it in. I don't know. I wasn't over 18 there when they painted, so I don't know. 19 MR. BRYANT: My thought is if you guys can bring 20 the building up to code, I'd be happy to rent it. 21 MR. LIVERMORE: There you go. 22 MR. BRYANT: I'm not going to -- you know, I don't 23 want to put that kind of investment into a hangar that's not 24 going to be my hangar. So -- 25 MR. KING: I can understand that. 17 1 MR. BRYANT: Whatever the going rent is when it's 2 to code, I'll be happy to pay that. And cosmetically, it's 3 fine the way it is to me. I can fix that kind of stuff up. 4 But this list of items right here is just kind of 5 overwhelming for me just to -- you know, it would be like 6 going in and renting a house that needs a new furnace and new 7 electrical put in it. That's where I'm at. 8 MR. LIVERMORE: I can understand that. 9 MR. KING: I can understand that, Dave. 10 MR. BRYANT: But, I mean, I'm interested in the 11 hangar, and -- 12 MR. KING: We're interested in it, too. 13 MR. WOOD: I think a question for us, though, is -- 14 if we look at it like we own it, which we represent the 15 people that do own it, can we get enough rent out of it to 16 justify spending all that money to get it in compliance? 17 Basic question, like anybody would. 18 COMMISSIONER MOSER: What would the rent be? 19 MR. McKENZIE: About $31,700 a year. 20 COMMISSIONER MOSER: 31,000 a year. Is there any 21 way to do an abatement on the rent, to -- and have them 22 repair the building? 23 MR. McKENZIE: You have to bear in mind as you work 24 through this, there has to be access to that building. 25 MAYOR PRATT: Not only that. You need to know how 18 1 long the lease is going to be. 2 MR. McKENZIE: How long the lease is going to be. 3 MAYOR PRATT: Before we consider any abatements. 4 MR. HUSER: And there's really two issues. There's 5 one issue, the code issue to the buildings, which are things 6 like electrical and -- 'cause the sewer system, where does it 7 go, and how do you deal with the code issue? And that's some 8 number. And then the second number is, how do you get to it? 9 MR. KING: Right. 10 MR. HUSER: And so, you know, it's kind of strange, 11 'cause it's a -- structurally, it's a pretty good old 12 building. It's not real pretty, but it's not a bad building. 13 It's just -- it's not easy to get to. And, you know, it's 14 been vacant a long time and it's got some issues, and so -- 15 MR. KING: Have you looked at it, Steve? I mean, 16 you're a contractor, obviously, in town here. Have you 17 looked at the electrical in the thing? 18 MR. HUSER: No. 19 MR. KING: Would you have any interest in doing 20 that? I mean, you've got a pretty good grasp on that. I 21 mean, I'm just -- this is the same thing we come up with 22 every time we want to rent a building at this airport. I 23 mean, we come up with a building inspector and a fire guy who 24 comes in and tells us a whole bunch of stuff, which we have 25 to believe because we don't know any better, and we just 19 1 basically can't move forward on anything. I mean, we have to 2 basically store hay, is about the only thing we can do in 3 these buildings. We can't even do that. 4 MR. HUSER: No, you really can't. 5 MR. KING: That's not even aviation-based. I'm 6 trying to figure out what we could store. Airplanes. 7 MR. HUSER: You know, Steve, I'd be glad to look at 8 it. I think the issue really is the building is probably a 9 third of what it costs. The rest of it is the taxiways and 10 the gates and the driveways to it. I mean, it's a shame, 11 because it's kind of like you look around here, and there's a 12 shortage of places to put airplanes. 13 MR. KING: Yeah. 14 MR. HUSER: And you got people on waiting lists, 15 people wanting to do things, but -- and it's kind of like you 16 got this little house that, you know, everybody in town would 17 love to rent it, except that the roof's falling in and the 18 air conditioning doesn't work, and you can't figure out, 19 "Well, why can't we rent it?" And the reality is that it 20 takes so much money to get it back to -- to a point where you 21 could rent it -- I mean, if you invested in the building and 22 the taxiways, Bruce told me the other day when we met that he 23 had a waiting list of people that wanted to put airplanes in 24 it. So -- so, I mean, whether it's a business or it's just 25 more hangar space in that 10,000-foot building, you're under 20 1 the sprinkler requirements. It's just old. 2 MR. KING: Yeah. 3 MR. HUSER: You know? 4 MR. LIVERMORE: Did the fire marshal address the 5 issue -- and I'm just trying to scan through this -- of 6 access for a fire truck in the event of an emergency? 7 MR. McKENZIE: You have to have a road to the 8 facility. 9 MR. LIVERMORE: And where would that road have to 10 come from? 11 MR. McKENZIE: Well, it can come through the Mooney 12 facility -- through the Mooney campus if we can clear the 13 gate issue, or we would have to build a new road off of 14 Peterson Farm Road. 15 MR. LIVERMORE: They're going to have to go all the 16 way around like this? 17 MR. McKENZIE: And it's my understanding in the 18 city limits, that -- or anywhere, that they won't go off of 19 the pavement with a fire truck. Is that -- 20 MAYOR PRATT: You got the weight. 21 MR. McKENZIE: The weight-bearing capacity, and I 22 understand that. So -- and we've talked about it. Kirk and 23 I have talked about it. We can get a road built in there; 24 that's simple, but it's just getting it paved in some 25 fashion. 21 1 MR. WOOD: You also got to get airplanes into it. 2 MR. McKENZIE: And we've got to repair that taxiway 3 that's perpendicular to 3/21. It needs to be widened. 4 COMMISSIONER MOSER: So, bottom line is you have to 5 get a ballpark estimate on what it would take to get it up to 6 being rentable, and then what the revenue would be, when the 7 payback would be. That's sort of bottom line. Do we know 8 that? 9 MR. GRIFFIN: Bruce and I have talked about it. We 10 just talked about it a day and a half ago. I think where we 11 are, Tom, really, is -- is with -- where we know David is now 12 and his approach, and the fact that he came back and gave us 13 a firm -- said, "Hey, if you get it fixed, we'll rent it." 14 We need to go off and really develop that number, because we 15 don't have it all racked up. We've got the pieces, but we 16 don't have the road and the gate and some of the power stuff. 17 COMMISSIONER MOSER: I think if you had that, then 18 the City and County can look at it. You know, we own it, 19 okay? So it's not doing anything but deteriorating, and if 20 you -- we're either going to have to -- 21 MR. GRIFFIN: Right. 22 COMMISSIONER MOSER: -- you know, keep it and fix 23 it, get some revenue out of it, or bulldoze it. 24 MR. GRIFFIN: Do something with it. 25 COMMISSIONER MOSER: Do something. 22 1 MAYOR PRATT: How many employees would be employed 2 if you rented that building? 3 MR. KING: I was -- 4 MR. WALTERS: That's a question for Dave. 5 MR. GRIFFIN: How many do you perceive, three or 6 four? 7 MR. BRYANT: Probably five. 8 MAYOR PRATT: Initially five. And potentially? 9 MR. KING: Who knows? I don't know. I mean, I 10 think it's -- I think it's more of a -- instead of an 11 employment opportunity, I think it's providing a service to 12 the airport that's needed. I mean, you know, we have -- I 13 don't know. I mean, I look at it from Corey and I -- like, 14 our perspective. We both have turbine aircraft. If we -- we 15 want to get -- if a tire blows out on our airplane, we can't 16 get it fixed; I got to call a mechanic out of San Antonio to 17 come up here and jack my airplane up and change a tire. 18 It'll probably cost me $1,000 to $1,500 to change a tire on 19 my airplane. 20 MR. WALTERS: If I have something as simple as 21 trying to get an oxygen bottle refilled, it took them an hour 22 and a half. They had three guys looking around, trying to 23 figure out how to do it. 24 MR. KING: We just have some of the -- it's a 25 service. It's a service issue, in that we have a really good 23 1 maintenance facility over here for small aircraft, you know, 2 light aircraft, but we don't have any sort of maintenance 3 facility that can handle about -- you know, 40 percent or 4 50 percent of the turbine airplanes that taxi up out here, if 5 one of them breaks down, end up calling maintenance out of 6 San Antonio or maintenance out of Houston or somewhere like 7 that, and they send a mobile unit up here at a cost of, you 8 know, $6,000 or $8,000, just to drive up here. I mean, it's 9 a -- it's something that we have a great airport and 10 everything, but we have a -- we have an extreme lack of 11 facilities for what you would call medium to -- I would say 12 medium maintenance, not heavy maintenance. It wouldn't be -- 13 you know, we're not talking working on Gulfstreams and stuff, 14 but -- 15 MR. BRYANT: Mid-size. 16 MR. KING: Mid-size. David's got an airplane -- 17 David flies an aircraft for a customer who -- I mean, you 18 can't get your airplane worked on here. I mean, what do you 19 do if you have an issue with your aircraft? You have to get 20 someone up here? 21 MR. BRYANT: I have a mechanic that works for me. 22 MR. KING: That's right, you have a mechanic. I 23 mean, and we actually have two aircraft on the field now that 24 have mechanics that work for their aircraft. 25 COMMISSIONER MOSER: So, would this help that? 24 1 MR. KING: That work on their aircraft. They're 2 employed by their owner for that particular reason, because 3 they can't -- you know, they don't have any place to have 4 their airplane fixed. 5 MR. WOOD: So, the basic issue is that if Mooney 6 doesn't want to use that building, which they say they don't, 7 what are we going to do with it? 8 MR. WALTERS: They don't want to use it right now. 9 COMMISSIONER MOSER: Right now. Why don't you do 10 what Kirk said? Why don't you put together a cost and a 11 potential revenue and a pro forma, and -- 12 MR. GRIFFIN: Kind of what we were trying to get 13 out of today is to go put that piece together and figure out 14 what it would take for the airport in total, -- 15 COMMISSIONER MOSER: And see what the options are. 16 MR. GRIFFIN: -- and go from there. 17 MR. WOOD: Well, if you read Danny's email to 18 Bruce, it says if you're going to use it for repair instead 19 of paint, you're actually lowering the hazard. 20 MR. GRIFFIN: Right. 21 MR. WOOD: So it doesn't trigger new codes. It 22 refers to the 2008 National Electrical Code. So, that's why 23 I wanted to see an itemized list of what they want to do with 24 it, 'cause I have a hard time figuring out how much -- why 25 it's going to cost that much. I'd be happy to help you look 25 1 at it. 2 MR. GRIFFIN: I don't think that the codes -- or 3 the application of the codes will not be as strict if all 4 we're doing is maintenance and/or even just aircraft storage. 5 It's when you start having volatiles and spraying things and 6 that kind of stuff. 7 MR. WOOD: Exactly. 8 MR. KING: I agree. How about this? Whether it's 9 Dave that rents the building or whoever rents the building, 10 why don't we, as an airport board, let's pursue the 11 feasibility and the cost of having that building put back 12 into service. 13 MR. WOOD: Yeah. 14 MR. KING: We know what the rent is. I mean, we 15 know what the revenue stream would be. That's pretty much a 16 given. We just need to know what it's going to cost us to do 17 it. I mean, we have two issues; we have a building, and we 18 have the access to the building. Access to the building, we 19 can -- we can gerrymander that around through the city and 20 the county. And we -- you know, we can -- we've been able 21 to -- in the past, we've been able to work those things out. 22 You know, we've been able to get little taxiways built and 23 stuff like that with the cooperation of the City and the 24 County. And -- and so, I mean, I think that's something we 25 could fix. 26 1 MR. WOOD: Let's get it all put together, present 2 it to the City and County. 3 MAYOR PRATT: We don't want any gerrymandering. 4 MR. KING: Well, I actually was going to say 5 jerry-rigging. But I think we -- I think we can handle that 6 side of it. And we just -- the unknown is the cost of 7 putting the building back together to get it to where we -- 8 you know, we always -- what happens on these things is we get 9 -- we've done this -- you know, this is at least the second 10 time we've done this. When we get it from the city -- from 11 the city inspector, we don't really know what is required. I 12 mean, they're very vague about it. Danny did a really good 13 report on this one, I have to admit. But, you know, there's 14 a bit of vagueness just due to the fact that they don't want 15 to -- you know, everybody's trying to cover their tail on 16 these things in case something happens. 17 MAYOR PRATT: Well, let -- let me speak to that. 18 They don't have a plan. They just got a walk-through, so 19 don't blame it on the city. 20 MR. KING: No, I'm not. 21 MAYOR PRATT: You got to have a plan. So, they're 22 going to be vague until you give them a plan and say -- 23 MR. KING: Right. 24 MAYOR PRATT: -- this is what you need. You know, 25 this is -- this is the end result; now give us your best 27 1 opinion. 2 MR. McKENZIE: That being said -- 3 MR. WOOD: I think this is a good -- 4 MAYOR PRATT: He did a good job. 5 MR. KING: I'm saying this is more information than 6 we've received on any other thing we've done. I think we can 7 go from here. But, I mean, I think we can come up with our 8 -- with a plan. We can come up with a plan as to what we 9 want to use the building for. I mean, we're not using it for 10 building nuclear weapons or anything. I mean, it's -- it's 11 pretty basic, what we're using this building for. It's a 12 maintenance facility, which we already have one on the field 13 right over here, so it's not -- I mean, I think we can come 14 up with our own plan and then submit it to them. And let's 15 get some firm -- get some real -- real numbers from these 16 electricians, you know, and not bring it up to -- like Bill 17 says, bring it up to 2015 code if that's what's required. If 18 we can only go to 2008, you know, just -- let's try to get 19 within the code that is required, the minimum code that's 20 required for the building to be safe. 21 MR. McKENZIE: And we can -- go ahead, Corey. 22 MR. WALTERS: I was going to -- I'd like to bring 23 up one other thing. It's very probable that -- well, not 24 probable, but very possible that once we get these numbers, 25 that this -- the income is not going to be -- you know, meet 28 1 the return that we'd like to see it for a project. So, you 2 know, one of the other things that I'd like for us maybe to 3 consider once we get those numbers is if we can have -- I 4 think competition for the airport and a maintenance facility 5 that offers things that we don't presently have is a positive 6 for the airport. And I think it would be -- maybe we should 7 look at utilizing our own land, and maybe even look at the 8 airport consider building a building and leasing it for this 9 service. 10 MR. McKENZIE: Mm-hmm. 11 MR. WOOD: I agree with what you're saying, and 12 just evaluating that payback on the rent is not the whole 13 story. 14 MR. WALTERS: It's not all of it. 15 MR. WOOD: All that stuff y'all talked about. 16 MR. WALTERS: And maybe -- I don't know what the 17 number is, but let's just say it's 200,000 to 250,000. Is 18 our money best spent putting it in that 40-, 50-year-old 19 building over there, however old it is, or is that money best 20 spent to put in a newer facility on land that we already own 21 for -- to lease for this service? 22 MR. KING: Good point. That's a good point, I 23 agree. We could do a cost eval -- I think what Corey said is 24 very important, is that, you know, we have -- it doesn't -- 25 it always doesn't have to make sense economically. It has to 29 1 make sense economically, but also we have to take into 2 consideration what we offer at this airport, because that's 3 what brings in more aircraft. I guarantee you, if I was an 4 turbine aircraft owner, that's the first thing I'd look at, 5 is where am I going to get this thing fixed? It costs a lot 6 of money to fly these things around. 7 MR. WOOD: It's a small community, and once we had 8 something like that, he knows other jet pilots and all that; 9 he would have a lot of service. 10 MAYOR PRATT: That's what I was going to say, Bill, 11 is that, you know, it's not about maintenance for your plane 12 or your plane. It's about what you attract to this airport. 13 MR. KING: Exactly. 14 MAYOR PRATT: You got fuel sales coming and going, 15 and that's the taxes that we're interested in. And, you 16 know, when you build that up, and you build up your rents and 17 stuff like that, your ad valorem tax, then you got to 18 consider all that, and that is what we want to look at -- to 19 see. Is this an economically -- sure, it's -- I think the 20 more you can do to attract new business to Kerrville, the 21 better off we are. 22 MR. KING: I agree, Mayor. I think you're very 23 correct on that. I mean, we always talk about attracting 24 larger aircraft here, big aircraft you want to get out of San 25 Antonio and stuff. But, you know, for those guys to come 30 1 here, they're giving up -- they're giving up a lot down 2 there. They're giving up the ability to taxi an airplane, 3 you know, 350 -- you know, a quarter of a mile down the 4 runway and having it worked on. They can do anything they 5 want to with it. They've got a service center -- a Cessna 6 service center down there now. If you've got a Cessna 7 aircraft, you've got one of the service centers, you know, in 8 the United States right there; they can fix anything on a 9 Cessna -- on a Cessna product, on a jet product. So, you 10 know, we're -- I think you're very correct that it's not -- 11 I'm not saying it's just for Corey and I, obviously. But 12 that type of aircraft, the turbine aircraft, you know, the 13 medium-sized jets and stuff, you know, to lure them up here 14 and get them to come stay with us and -- and use our fuel and 15 stuff like that, you got to offer them services. You got to 16 -- you know, that's the first thing I would look at if I was 17 going to move up here if I wasn't already here, is the fact 18 that what am I going to do if something breaks? 19 MR. WOOD: You also could use another avionics shop 20 here. 21 MR. KING: Right. 22 MR. WOOD: Which there's no place but one right 23 now. 24 MR. KING: Anyway, let's -- 25 MR. LIVERMORE: I think what Corey's saying is we 31 1 really need to look at the option of building a new -- 2 replacing the facility. And I personally -- 3 MR. WOOD: To do that, we need this study to see. 4 MR. WALTERS: We need to see what this would cost. 5 MR. LIVERMORE: Yeah. 6 MR. WALTERS: And whether it's -- it would be like 7 throwing -- putting those monies towards that building is the 8 right thing to do, or should we consider building another 9 building and leasing it out? 10 MR. KING: Okay. All right, I think that's good. 11 We'll -- Bruce, can you start on that? 12 MR. McKENZIE: I just need some clarification, 13 because Danny told me this before. This is where we always 14 run into the wall. He says he wants plans, and when he says 15 that, a plan, he means something right here, by a -- provided 16 by an engineering or architectural consulting firm as to 17 exactly what we're going to do with that building. We may 18 tell them what we want, but they're still -- we're going to 19 end up back where we are right here. He's going to say, "You 20 have to give us a plan." 21 MR. GRIFFIN: I think that that's a -- 22 MR. McKENZIE: I just want to leave here with some 23 clear direction. 24 MAYOR PRATT: Let me speak to what Bill is saying. 25 MR. GRIFFIN: Yeah. I think really where we are, 32 1 Bruce, is that's a fallout of what we decide to use that 2 facility for. If you decide -- if we have -- if we do this 3 trade here that we've kind of talked about, whether that 4 building's feasible or doing something like Corey mentioned, 5 at that point in time, then you say -- then you say, "Okay, 6 this is the purpose of that building," and then you go 7 develop that plan. You know, if it becomes a maintenance 8 building, then we'd have to -- but we don't want to go talk 9 to an engineer and architect until we say it's going to be a 10 maintenance facility, it's going to be a hangar, it's going 11 to be whatever. 12 MR. McKENZIE: So -- 13 MR. GRIFFIN: There's no -- my take on it, and my 14 recommendation is we don't talk to an engineer or an 15 architect until the airport determines what we want to use 16 that building for. 17 MAYOR PRATT: I agree. But I think what Danny's 18 saying here is that he's -- what he tells you, you develop 19 your plan like Steve and the rest of them are suggesting, 20 without the architectural standpoint. But when you take that 21 to the City, what they tell you is not going to be in stone 22 until it's got an architectural stamp on it. 23 MR. McKENZIE: That's why I'm going -- 24 MAYOR PRATT: That's basically what he's saying. 25 MR. WOOD: We may need to figure out what that's 33 1 going to cost to have a P.E. look at it and get it done. 2 MR. McKENZIE: So, I should approach it from the 3 standpoint we're going to put a maintenance facility there, 4 and we need access to it, both air side and land side access? 5 MR. WALTERS: Yes. 6 MR. McKENZIE: Is that correct? And hold it there; 7 just get numbers for that. 8 MR. GRIFFIN: What it's going to take. 9 MR. McKENZIE: I just wanted -- okay. I'll have 10 that at the -- 11 MR. WOOD: I can't think of a whole lot of stuff 12 you'd need to do aircraft maintenance there. 13 MR. McKENZIE: It's the electrical, the lights. 14 MR. WOOD: Service and lighting. 15 MR. McKENZIE: And access to it. 16 MR. BRYANT: Can you guys put some tools in there 17 too? (Laughter.) 18 MAYOR PRATT: Yeah. Rent just went up. 19 MR. KING: Thank you very much, Dave. 20 MR. WOOD: That will work. 21 MR. KING: I think we -- 22 MR. WOOD: Thanks for nudging us into this, because 23 I think it's something we need to do. 24 MR. KING: And you're correct; it's our building. 25 Okay. Any more discussion on that? Nothing being heard, 34 1 we'll move to general update. 2 MR. McKENZIE: We'll have a -- we'll have a 3 complete update on the Mooney roof project in September, 4 where we are with it, the money we've spent on it. 5 MAYOR PRATT: Is that going to be a regular 6 meeting? 7 MR. McKENZIE: Probably. I don't see we why we 8 should have another meeting. It'll be on the 21st of 9 September. 10 MAYOR PRATT: 21st, okay. 11 MR. McKENZIE: I believe that's the third Monday, 12 so we'll have -- 13 MR. LIVERMORE: Maybe I should have mentioned this 14 earlier, but are you -- I didn't mean to interrupt. 15 MR. McKENZIE: No, that's fine. Go ahead. 16 MR. LIVERMORE: Are you through? 17 MR. McKENZIE: I'll finish. Go ahead. 18 MR. LIVERMORE: Well, I was just in Paine Field in 19 Seattle where there's a small company up there that builds 20 small airplanes called Boeing, and I tell you, that 21 airport -- has anyone ever been on Paine Field? It's a mess. 22 There are -- there are Boeing 787's that were -- that were 23 not produced correctly sitting there, plus 11 or 12 of them 24 sitting there, you know, parked out and taken apart and 25 trying to find some stuff -- third world, probably, to buy 35 1 them or something. And -- but I mean to tell you, that 2 airport is covered up with new airplanes, things that are in 3 process, but it just looks like it was all put -- everything 4 just kind of almost grew like this building we're dealing 5 with over here, just a day at a time. There's, you know, not 6 a lot of clear thought. And I know we're not going to do 7 that, but we would like to have the opportunity to have 8 Boeing on this field, but it's not -- I was really surprised, 9 'cause I've spent quite a bit of time going around the 10 airport, and it -- it's really a very confusing place. A lot 11 of things laying around that I don't know we'd get away with, 12 or probably should. 13 MR. McKENZIE: Is that -- 14 MR. LIVERMORE: Yeah, I'm done. 15 MR. McKENZIE: We've done a lot of improvements 16 around here in the last three weeks, four weeks. We have a 17 new employee. He's done a good job. You've seen a lot of 18 it. Those of you that are here every week have seen it. 19 It's amazing what Jason's helped us do. So, we aerated the 20 yard last Friday, front and back. We fertilized it this 21 weekend. We've painted the segmented circle, poisoned 22 everything around the fence line. You know, we've cut down 23 the dead trees. Just a lot of things have happened, which is 24 a good thing for us. This other update is the Billy Snow 25 orange Mooney sold last Friday. 36 1 MR. KING: Oh, good. 2 MR. WALTERS: The one that was over there? 3 MR. McKENZIE: The one that's still sitting there. 4 It sold to -- a gentleman in Center Point bought it. He came 5 to see me. He anticipates rebuilding that aircraft and 6 flying it, but that's fine. But Mr. Snow, as I understand 7 now -- the papers were signed yesterday -- is out of the 8 picture now. 9 MR. LIVERMORE: That plane will be leaving? 10 MR. McKENZIE: Well, he says it will be sitting 11 there for a little while till he makes arrangements with 12 perhaps Mr. Williams to get it in the hangar. So, I hope 13 there's room for him to work on that airplane in the hangar, 14 because he cannot work on the airplane outside on the apron 15 or on the grass. He can't -- you can't work on airplanes on 16 the field unless you're in a building. 17 MR. KING: Right. 18 MR. McKENZIE: So, he -- he needs to address that. 19 And if he starts work on it, I'll visit with him about it. 20 But the airplane sold. 21 MR. WOOD: Well, if it's -- 22 MR. McKENZIE: Or they bargained for it; I don't 23 know what happened. 24 MR. WOOD: If working on it gets it out of here, 25 I'd give him a little slack. 37 1 MR. McKENZIE: I'm going to give him a little, but 2 not much. But that's good. But it wouldn't take two or 3 three days to take it apart and move it, I don't think, would 4 it? 5 MR. LIVERMORE: Take the wings off. 6 MR. WOOD: Take the wings off. 7 MR. McKENZIE: Actually, they did do that 8 yesterday. There was a plane loaded up yesterday; fuselage 9 and the wings came out of one of those hangars down there. 10 They rolled it off, so it won't take long. They did that in 11 a day. 12 MR. WALTERS: Disassembling, I think, would be 13 fine. To have him actually do any other work on it I think 14 would just cause other people to think that maybe they could 15 do the same. 16 MR. McKENZIE: That's correct, yeah. If he wants 17 to disassemble it, I'm going to cut him some slack, but if he 18 starts working on it -- that's a great point, Corey. Thank 19 you. 20 MR. LIVERMORE: It would be nice to not have to 21 look at that any longer. 22 MR. WALTERS: I agree. 23 MR. McKENZIE: So we hope it leaves. 24 MR. KING: Right. 25 MR. McKENZIE: That's all I've got, Steve. 38 1 MR. KING: That's it? Okay. 2 COMMISSIONER MOSER: I think the City ought to be 3 complimented for their work they did on the -- 4 MR. KING: I was going to say. 5 COMMISSIONER MOSER: -- on the parking lot. Great 6 job. It was not easy, and -- 7 MR. WOOD: Glad we got that behind us. 8 COMMISSIONER MOSER: -- looks like it's a great 9 improvement. 10 MR. McKENZIE: That was -- they did an excellent 11 job. 12 MR. LIVERMORE: They did it quick, too. I mean, it 13 was just done. 14 COMMISSIONER MOSER: Precisely. 15 MR. KING: They did a really good job. You were on 16 a cruise or something when that happened. I called and 17 talked to the city streets guy -- what's his name? 18 MR. WOOD: Joel Meyners. 19 MR. KING: And they did a very good job. They had 20 a good plan, and they -- they were very fortunate, it rained 21 right -- the only time it rained, it rained right in the 22 middle while they were working on it, so they got to see 23 where the water was puddling, and they were able to put that 24 big drainage ditch in. I think the only issue they had was a 25 cactus garden that Mooney had established at one end of it 39 1 that had to go away, or had to be transferred to another 2 area. But they did a really good job. The City really did a 3 good job on that. I was very -- very impressed, and they got 4 out there and did it in a hurry. So, Mooney's -- I've talked 5 to Tom Bowen about it last week; I went over and did a tour 6 of the Mooney facility to see how the roof project was going, 7 and he showed me the parking lot. It looks really good. 8 He's very happy with it. 9 MR. McKENZIE: Good. 10 MR. KING: Hope it rains so we can use it again. 11 But it's doing very good. 12 MR. McKENZIE: Good. 13 MR. KING: The Mooney roof project's going on. 14 They're doing an amazing job, but there's just a lot more to 15 it than I thought there was. But they're basically replacing 16 the Hammer House roof. They might as well have just demo'd 17 the whole thing, built a new roof over it. It's not only -- 18 it's about halfway. Not -- they haven't even done -- 19 MR. WOOD: Are we going to expect an extra -- or 20 somebody going to get an extra for all that? 21 MR. KING: I don't know. I just know that they're 22 putting purlins -- they've taken all the wood down, and 23 they're putting purlins down. 24 MR. McKENZIE: New joists. Putting some new 25 joists. 40 1 MR. KING: All new metal, completely new roof. 2 They basically cut the old roof off an adjacent big section; 3 they pick it up with a crane and move it away. 4 MR. LIVERMORE: Wow. 5 MR. WOOD: We can ask those questions in September. 6 MR. KING: And they tore up pretty much that 7 parking lot that we were going to rebuild -- we talked about 8 rebuilding on the west end over there. It's their -- where 9 their completion center is. They've destroyed that with the 10 crane that they're moving all the roofs with. So, we 11 probably need to -- we'll address that down the road. 12 MR. McKENZIE: We -- we're supposed to, in October, 13 start working on those three areas over there for them. 14 MR. KING: Yeah, okay. Anyway, it looks good. Any 15 other updates? 16 MR. McKENZIE: No, sir. 17 MR. KING: Okay. Motion to adjourn -- anything 18 else? Motion to adjourn? 19 MR. LIVERMORE: So moved. 20 MR. WOOD: Second. 21 MR. KING: Seconded. All in favor? 22 (The motion carried by unanimous vote, 5-0.) 23 MR. KING: 5-0. Thank you very much. 24 (Airport Board meeting adjourned at 9:15 a.m.) 25 - - - - - - - - - - 41 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 14th day of August, 8 2015. 9 _______________________________ Kathy Banik, Texas CSR # 6483 10 Expiration Date: 12/31/16 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