1 1 KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 2 Special Meeting 3 Budget Workshop 4 Wednesday, March 21, 2016 5 8:30 a.m. 6 Airport Terminal Conference Room 7 1877 Airport Loop Road 8 Kerrville, Texas 78028 9 ******************************************************** 10 MEMBERS PRESENT: Stephen King, President 11 Bill Wood Kirk Griffin 12 Ed Livermore 13 MEMBERS ABSENT: Corey Walters, Vice President 14 AIRPORT COUNSEL 15 Patrick O'Fiel 16 AIRPORT BOARD STAFF PRESENT: Bruce McKenzie, Airport Manager 17 Carole Dungan, Executive Assistant 18 COUNTY STAFF PRESENT: Jonathan Letz, Commissioner Pct. 2 19 Brenda Doss, Auditor 20 CITY STAFF PRESENT: Jack Pratt, Mayor 21 Sandra Yarbrough, City of Kerrville 22 VISITORS Jennifer Riley, Kerrville Daily Times 23 Chris Coons, CP&Y Trey Hughes 24 Ross Dunagan, FDP 25 2 1 MR. WALTERS: Call this meeting to order of 2 the Kerr County -- Kerrville/Kerr County Joint Airport 3 Board, Monday, March 21st. This is a budget workshop 4 meeting that will be held at 8:30 to go over the budget. 5 All right. 6 You want to start in here just so it -- like 7 we did last year. We just go down each one of these 8 items and let's look at them individually, is that 9 correct? 10 MAYOR PRATT: Steve, just for the record, 11 this is a Special Meeting called for a budget workshop, 12 so you can take a minute. 13 MR. KING: Okay. So it's a special meeting 14 called for the budget workshop. 15 Are you typing? 16 THE REPORTER: Yes. 17 MR. KING: Okay. So we'll go down each item 18 individually, so we can look at these things on the 19 revenue. I think that's pretty -- let's see here. 20 MR. WOOD: I suggest we make that 30 and 30. 21 MR. KING: Where is that? 22 MR. WOOD: For the City and County. 23 MR. KING: Yeah, I want to look at the whole 24 thing. And I think there's some places we can cut out. 25 I mean what was our total overage last year. How far 3 1 are we in this year, Bruise? 2 MRS. DUNGAN: We had a difference of 80 3 thousand. 4 MR. McKENZIE: It's about 80, yeah. 5 MR. KING: About 80, yes. And what's our 6 surplus, our current surplus? 7 MR. McKENZIE: Three hundred and something 8 thousand. I don't remember. 9 MR. KING: I think three hundred and 10 something thousand. 11 MR. LIVERMORE: The balance, too. 12 MR. KING: Okay, all right. Let's go 13 through the income, is pretty much what it is. The flow 14 fee is what it is. The interest income -- 15 MR. LIVERMORE: Mr. Chairman, I think on the 16 income, is this going to come up in another part of our 17 discussion this morning? The note that the income is 18 again beginning to flat line. And there's excellent 19 reasons, solid reasons why that is. And we're -- we're 20 reaching the limit of what our facility's -- we're 21 running out of facility. 22 MR. KING: I agree. I agree. Which we knew 23 that would be coming. So let's go over here to page 2 24 on salaries and benefits. Airport manager, there was a 25 slight increase given to airport manager and airport 4 1 personnel, the office personnel. Y'all familiar with 2 that? 3 MR. WOOD: Yeah, we voted on it. 4 MR. KING: All right. Maintenance staff. 5 So we anticipate -- so is Jason back on full-time? 6 MR. McKENZIE: Yes, Sir. 7 MR. KING: He's back on full-time, okay. 8 Y'all jump in here if you have a question. Retirement, 9 workman's comp, okay. Start off with expenses here 10 under item 008, professional development, we have five 11 thousand; last year we had six. We spent -- is that so 12 far is that actual in 2015. Actual, that's up to what 13 date? 14 MR. WOOD: That was the whole year, yeah. 15 MR. McKENZIE: That was last year. We spent 16 $3,499.00. 17 MR. KING: I can live with that. Under the 18 professional services, we have 20 thousand last year. 19 We spent -- we spent $9,341.00? 20 MR. McKENZIE: Uh-huh. 21 MR. WOOD: Well, in '15 we spent 9341. So 22 far this year we spent 21. 23 MRS. DUNGAN: Remember, that's our Primero. 24 MR. KING: But that all came from the major 25 consultant, right? All the -- 5 1 MR. WOOD: Yeah. Which is not a yearly 2 deal. 3 MR. KING: Which is not a yearly deal. 4 MR. GRIFFIN: Which in April, May time's 5 out. 6 MR. KING: I'm going to put that down at 7 possibly relook at that, okay. Office supply -- 8 MR. LIVERMORE: You talking about item 47, 9 810? 10 MR. KING: Yes. Because it's not a 11 recurring figure. 12 Office supplies, that's -- 13 MAYOR PRATT: Steve, can I -- 14 MR. KING: Yeah, sure. 15 MAYOR PRATT: When you're talking about 16 professional services there and you had the consultant 17 Valero there, that was really part of the -- you know if 18 you hadn't had the asset going on, the roof repair, then 19 that would be correct, but since you have the -- the 20 asset and the consultants type of the asset, that 21 would -- should be under capital budget. 22 MR. KING: That should be in what? 23 MAYOR PRATT: Under the capital budget, if 24 you have one. This depends on how they did it in 25 accounting. I yield to her. 6 1 MR. KING: I don't know how they did it. 2 Should that have been in the professional services part 3 of it, or would that have been as part of our capital 4 expenditures? 5 MAYOR PRATT: And I'm yielding to you on 6 that. 7 MRS. DOSS: It was recorded, I believe -- 8 when it was first recorded it was put in the -- in the 9 operating side, because I don't think the contract had 10 been approved, and -- 11 MR. KING: Okay, okay. I see what you're 12 saying. 13 MAYOR PRATT: But when you look at next year 14 and so forth, it looks like you're way out of whack, if 15 it's not in the capital budget. 16 MR. KING: Yeah. And that's why I'm 17 considering it, considering a look at that. Because I 18 don't think that's going to be a recurring -- that's not 19 going -- that's not a reoccurring expense even for the 20 capital budget or even in the operating budget. I think 21 it's -- I don't think we're going to spend 20 thousand 22 dollars next year, but I understand what you're saying. 23 Office supplies. I don't have a problem 24 with that. 25 Small tools and equipment, okay. 3000 is 7 1 what we did in '15. We spent 14 hundred, and 14 2 hundred, and 14 hundred and 14 hundred. We haven't 3 spent that much this year. 4 MR. WOOD: You're looking at office 5 supplies. 6 MR. KING: Yeah, sorry, sorry. 7 MR. GRIFFIN: Yes, spent right at 29. 8 MR. KING: 29 -- three thousand. But this 9 year we haven't spent but what? 10 MR. McKENZIE: Two hundred. But we're just 11 now getting into the spring. 12 MR. KING: All right. Okay. Chemicals, 13 four thousand. What's the deal on that? 14 MR. McKENZIE: We didn't have to use too 15 much of our chemical surplus that we had last year but 16 we may this year, that's why I put that back in here. 17 MR. KING: Does that include spraying the 18 weeds? 19 MR. McKENZIE: Yes, Sir. Yes, Sir. Well, 20 no. That's included in all of the things around the 21 airport. Lighting, taxiways, around this building, the 22 entrance road, the signs. 23 MR. KING: Okay. All right. Fuel -- 24 MR. WOOD: Interesting grouping, chemical 25 and medical supplies. 8 1 MR. LIVERMORE: Yeah. I was going to relate 2 that, too. 3 MR. KING: Right. Fuel and oil. 45 hundred 4 dollar budget, we spent 24 hundred last year. This year 5 we spent 354. What are you anticipating there? 6 Anticipating oil will go back up, I hope. 7 MR. McKENZIE: It's already started back up. 8 MR. WOOD: Is that for the vehicles. 9 MR. McKENZIE: It's for all of our lawn 10 mowers, all of our machines, yes, Sir. And last year 11 was a dry year. 12 MRS. DUNGAN: We didn't mow as much. 13 MR. McKENZIE: We didn't mow as much, right. 14 MR. KING: Okay, let me look at that. I 15 think we can probably knock that to four thousand 16 dollars, personally. What do y'all think? I mean it's 17 never been above four thousand. 18 MR. WOOD: Why don't we just put a tic mark 19 by it. 20 MR. KING: All right. Janitorial supplies, 21 2000 dollars. Last year was 1212, it was 21 before. So 22 far it's 360. All right. If anyone just pipe in when I 23 say that. Okay. 24 Postage -- 25 MR. WOOD: It's never been that much. 9 1 MR. KING: I know. Put a mark by that one 2 too. 3 Computer software. It's fairly in line if 4 you look at the last two. 5 Sodding, landscaping, $3,000.00. What we 6 all got going on? 7 MR. McKENZIE: We're going to try to do 8 something with the -- 9 MR. KING: You got zero there. 10 MR. McKENZIE: Well, for next year. But 11 this year, this is in the budget for this year, we're 12 going to try to do something with this lawn. 13 MR. KING: Okay. So you were going to try 14 to spend some of the three thousand dollars you haven't 15 spent any of it yet? 16 MR. McKENZIE: Yes, Sir. We will this year. 17 MR. KING: Wearing apparel. What would 18 wearing apparel be? 19 MR. McKENZIE: That's all of the uniforms 20 for Jason and part-time. 21 MR. KING: Yeah. Okay, that looks pretty in 22 line. 23 Mowing contract 45 thousand. Last year you 24 dropped it to thirty-seven five. 25 MR. McKENZIE: Yes, Sir. 10 1 MR. KING: Okay, I don't have a problem with 2 that. 3 Buildings and structures. We approved 25 4 thousand last year, the year before we spent 15 5 thousand, 14 to 15. Pretty in line with 15 thousand. 6 MR. WOOD: Put a tic mark on that one, too. 7 MR. McKENZIE: We cut it to five thousand 8 dollars this year. 9 MR. KING: You cut it five grand. 10 MR. McKENZIE: Yes, Sir. 11 MS. DUNGAN: We just don't know again, with 12 taking on Brinkman and the new T-hangar and the paint 13 hangar if we're going to have more bills coming out of 14 building and structures for that. That's why we went to 15 20 thousand. 16 MR. KING: Okay. I put a mark next to it. 17 Vehicle maintenance, I think that's 18 adequate. 19 Office equipment, you got a thousand this 20 year. You haven't spent anything yet? 21 MR. McKENZIE: No, Sir. 22 MR. KING: Last year you spent nothing? 23 MR. McKENZIE: No, Sir. 24 MR. KING: The year before you spent 483, 25 992 and 858. That's obviously if something breaks, is 11 1 that what you're saying? 2 MR. McKENZIE: Right. Correct. 3 MR. KING: Okay. Comments. 4 MR. WOOD: Well, I think that's appropriate 5 since we hadn't spent anything in the last two years. 6 MR. KING: Okay. 7 MR. WOOD: Chances are we will. 8 MR. KING: Okay. Don't have a problem with 9 that. 10 Instruments and apparatus, five thousand. 11 So again five thousand. Last year in '15, we spent 36 12 hundred. 13 MR. LIVERMORE: We just don't know. 14 MR. KING: I don't know. We ran across that 15 at that -- does that cover that ASOF(phonetic)? 16 MR. McKENZIE: The AWOS. I did that with 17 the ramp grant because that was quite costly. 18 MRS. DUNGAN: With the radio transmitter 19 and -- 20 MR. McKENZIE: We put a new Unicom system 21 in. And I had -- not a system but new radio, and I had 22 to send that back and have it worked on, and that was 23 several hundred dollars. It's the little things that 24 nobody sees everyday. 25 MR. KING: We found out that the people that 12 1 maintain our AWOS decided they didn't want to do it 2 anymore. So they're going to basically going to go out 3 of business for everybody. The whole country. 4 MR. McKENZIE: Yeah, they're going out. 5 MR. KING: Yeah, they said they don't want 6 to do it anymore. So everybody pretty much hanging 7 there. They want to build them, but they don't want to 8 maintain them. They're looking for people to -- someone 9 to take over their business. Okay. 10 Control devices, nothing. 11 Repairs in general. What would repairs in 12 general cover? 13 MR. McKENZIE: Just what it says. Just a 14 catch all, anything and everything around this -- around 15 the entire airport including this building or anywhere 16 buildings. 17 MR. KING: Okay. So that could also be part 18 of buildings and structures? 19 MR. McKENZIE: It could be, yes. It could 20 be. 21 MR. WOOD: It's like a leaking toilet or 22 something like that, if you have to call a plumber. 23 MR. McKENZIE: Which we did have to last 24 week. 25 MR. KING: Property insurance, County, 7500. 13 1 You have -- you have no insurance this year or what? 2 Y'all haven't paid it yet? Hasn't been paid? 3 MRS. DOSS: It's annual, and it hasn't been 4 paid. 5 MR. KING: It was five thousand last year, 6 and we don't know what the bill's going to be. 7 MRS. DOSS: Right. 8 MR. KING: Liability insurance, same thing. 9 Liability insurance we have 22 hundred. We spent 22 10 hundred in '14. We only spent 644 in '15, and we spent 11 934 so far this year. 12 MR. LIVERMORE: Is that a monthly or 13 quarterly payment? 14 MRS. DOSS: That's annual. 15 MR. KING: Is that the annual payment for 16 the year 934? 17 MRS. DOSS: Uh-huh. 18 MR. LIVERMORE: Why are we thinking it's 19 going to be so much more? 20 MR. WOOD: I guess 'cuz it was 2200 in 2014. 21 MR. McKENZIE: I left it in there because I 22 was following the precedent, yeah. 23 MR. KING: It was 2200 in '14? 24 MRS. DOSS: Uh-huh. 25 MR. O'FIEL: Insurance went down. 14 1 MR. KING: Insurance went down. I mean it 2 seems like that should be a known item there. 3 Equipment rental, 27 hundred dollars. We 4 used 2625 in '15. 5 MR. WOOD: Sounds reasonable to me. 6 MR. KING: Okay. Advertising, all right, 7 that seems normal. 8 Management contract, okay. 9 MR. LIVERMORE: None. 10 MR. KING: Legal services. Six thousand in 11 the budget. We spent 45 hundred in '15. We spent 512 12 so far this year. 13 MR. GRIFFIN: It seems another 500 Patrick's 14 good. 15 MR. KING: Do what? 16 MR. GRIFFIN: I say we're halfway through 17 the year, I say another 500 Patrick's probably good with 18 that. 19 MR. O'FIEL: Y'all probably have a lot of 20 work on Mooney. 21 MR. WOOD: What do we have going on this 22 year that we might need Pat to do? 23 MR. GRIFFIN: What we've got with building 24 19 stuff, and getting through there, and up to speed. 25 MR. LIVERMORE: And this building back 15 1 behind. 2 MR. WOOD: We definitely need something in 3 there. 4 MR. KING: Okay, leave it alone. 5 Phone service, I see you dropped that a 6 little bit. Well, from two years ago. 7 Cell phones, no. 8 Water and sewer, leave it the same. 9 Internet. 10 Light and power. You upped the light and 11 power, I see. 12 MRS. DUNGAN: Because we went over last 13 year. 14 MR. KING: Because we went over last year. 15 I wonder why we went over last year? 16 MRS. DUNGAN: Because there was a new -- 17 MR. McKENZIE: Plus take up. 18 MR. WOOD: Plus we -- 19 MR. GRIFFIN: Took on more. 20 MR. WOOD: -- took on more buildings. 21 MRS. DUNGAN: Brinkman and the new T-hangar. 22 MR. KING: Okay. Dues and subscriptions, no 23 problem. Contingency, 18 thousand last year, 18,754. 24 The year before we spent 63 hundred, 10 thousand, 19 25 thousand, and now we spent nothing this year, is that 16 1 correct? 2 MR. McKENZIE: Thus far. 3 MR. WOOD: Put a tic mark by it. 4 MR. KING: Yeah, put a checkmark by it. We 5 were over 80 thousand, so I mean somewhere in here we 6 saved a lot of money in here. 7 MAYOR PRATT: Steve -- 8 MR. KING: Yes, Sir. 9 MAYOR PRATT: On the light and power, if you 10 had an actual last year of 20 thousand, why would you 11 budget only 16 thousand this year? 12 MR. McKENZIE: We didn't. We budgeted 13 20,100 dollars. 14 MR. WOOD: He's talking about '16. 15 MRS. DUNGAN: For this year. 16 MR. McKENZIE: Because we didn't know until 17 the budget process. 18 MRS. DUNGAN: We didn't know what it was 19 going to be. 20 MAYOR PRATT: Well, shouldn't you increase 21 that budget then? 22 MR. KING: We did. I think 16 to 20 23 thousand. 24 MR. WOOD: But on the other hand, we've only 25 spent 54 hundred through half the year. I guess one 17 1 thing it's been a mild winter. So maybe we haven't used 2 as much. 3 MAYOR PRATT: Well, we haven't -- that's my 4 point, I mean. Our electrical cells, if you would, are 5 down because of no winter, but we're anticipating one 6 heck of a summer. 7 MR. WOOD: Right, right. 8 MAYOR PRATT: All right. So your electric 9 is going to go up. 10 MR. WOOD: Well, I think 20 would be 11 representative, Jack. 12 MR. KING: It was 20 in '15. 13 MAYOR PRATT: I just don't want you to run 14 short in the budget on that. 15 MR. KING: I agree, I agree. Thank you. 16 Reserve for capital. This is a different 17 account than we were talking about, Bruce, is that 18 correct? 19 MR. McKENZIE: Yes. 20 MR. KING: So what is this account used for? 21 MRS. DUNGAN: That's where we place money 22 for the purchase of a new vehicle or -- 23 MR. McKENZIE: That's how it started. New 24 mowers is how we started that. And then it's for if we 25 need a new pickup, we try to put back every year. 18 1 MR. KING: So what did we spend 12 thousand 2 on this year? 3 MRS. DUNGAN: That was a new mower. 4 MR. KING: Lawn mower. 5 MRS. DUNGAN: Uh-huh. 6 MR. KING: So, okay. So we spent 16 7 thousand last year -- we had in the budget last year 16, 8 the year before that we spent twelve one. That was a 9 new mower, too, hu, in '15? 10 MR. McKENZIE: The prior year, yes, Sir. 11 MR. GRIFFIN: Well, we bought some lights. 12 MR. McKENZIE: Well, I did that with the -- 13 some of the grant money as well, yeah. 14 MR. KING: Okay. 15 MR. GRIFFIN: Our new X's. 16 MR. McKENZIE: Yeah. The electronic X's, 17 yeah. 18 MAYOR PRATT: I hate to keep asking 19 questions, Sir, but I've got to have an understanding 20 here. If you're paying 7500 or whatever it is for 21 mowing -- 22 MR. McKENZIE: No. That 7500 is the gross 23 mowing of the 540 acres. These lawn mowers is what we 24 mow around up and down these three miles of runway. 25 MAYOR PRATT: So it's a separate mowing. 19 1 MR. KING: Yeah. They don't mow everything. 2 MR. McKENZIE: They got four big lawn mowers 3 that we mow with. Taxi ways, runways, buildings. 4 MR. WOOD: Do we own the mowers that they 5 use to mow the big part? 6 MR. McKENZIE: No. 7 MAYOR PRATT: That was the reason I asked 8 the question. 9 MR. KING: And the reasoning for that in the 10 contract we didn't want the mowing contract guys to mow 11 around the lights, because we felt like that was -- we 12 had a pretty good chance of getting lights knocked out 13 and then we wouldn't know the light was out until the 14 night. And so we decided to go ahead and exclude that 15 from the mowing contract and do that ourselves. And 16 that's what Jason does. 17 Okay. Over to the terminal, supplies zero. 18 Phone services 500. In the budget last year we spent 19 nothing, okay. What's that? We're not spending any -- 20 MR. LIVERMORE: Not spending any money, how 21 can that be? 22 MR. McKENZIE: It's what we pay those phones 23 that we have out there in the pilot's planning area. We 24 may or may not ever have to pay for that. I just don't 25 want them to come back and say we need money for that, 20 1 because the pilots need those two phones in there. I 2 just put it in there as a catchall. 3 MR. KING: Who's paying for it now? 4 MR. McKENZIE: The County. 5 MR. KING: You think they're going to find 6 out about it and might charge us? 7 MR. McKENZIE: Maybe. 8 MRS. DUNGAN: I keep waiting for John 9 Trolinger. 10 MR. KING: I probably shouldn't have brought 11 that up. 12 MR. WOOD: What is that for the monthly 13 usage fee? 14 MR. McKENZIE: It's for all year. 15 MR. WOOD: But it's usage; it's not paying 16 for a phone line. 17 MR. McKENZIE: I always want to make sure, 18 we need to always be able to talk to Houston Center and 19 be able to talk to flight service. 20 COMMISSIONER LETZ: It says fire alarm. 21 MR. McKENZIE: Yeah, there is, in the attic. 22 COMMISSIONER LETZ: Also that a part of this 23 phone? 24 MR. KING: I guess we need to leave in it 25 there since we mentioned it. Hand signals or something 21 1 like that maybe could have avoided that and saved us 500 2 dollars. Okay. 3 Light and power 11 thousand last year, 11 4 thousand this year. We've spent three thousand. Last 5 year before it was ten thousand. 6 MR. WOOD: I think that's a good number, 7 because like Jack says probably have a lot of 8 air-conditioning this summer. 9 MR. KING: Propane. Six thousand last year, 10 six thousand this year. 11 MR. LIVERMORE: We don't ever seem to use 12 the budget on that. 13 MR. GRIFFIN: No; we have in the past. We 14 went over two years prior to it. 15 MR. KING: But then I jumped on them about 16 leaving heaters on out there. 17 MR. McKENZIE: We turned them off. 18 MR. KING: It all goes right up the vent and 19 outside. 20 MR. McKENZIE: That's why we sealed that off 21 out there. 22 MR. KING: We should get one of those, an 23 electric one that just looks like a flame, a fire or 24 something. 25 MR. McKENZIE: We do, we have one. That's 22 1 what that is. But it runs off of propane. 2 MR. KING: No, I just want an electric one, 3 a fake fire or something like that. 4 MR. LIVERMORE: We've never spent this 5 amount of money, unless I'm not reading the numbers 6 right. 7 MR. McKENZIE: You're correct, Ed. 8 MR. WOOD: Checkmark. 9 MR. KING: Checkmark. I think we knock 10 that, because I think that's -- it doesn't heat 11 anything. It's just for aesthetics. 12 MR. LIVERMORE: It's for this thing right 13 here. 14 MR. McKENZIE: No. The entire building is 15 on propane. The heaters in the attic are on propane. 16 There's two big heating units which runs off propane, 17 which was a big mistake when they built the building. 18 MR. KING: Major mistake. 19 MAYOR PRATT: When the heaters go out you 20 need to replace them with electric. 21 MR. McKENZIE: That's where we're headed 22 right there. 23 MR. WOOD: Well, we only spent 17, and it's 24 a mild winter. 25 MR. KING: Well, propane's down by a lot. 23 1 MR. LIVERMORE: Oh, really. 2 MR. KING: Oh, yeah. I can tell you that 3 right now. I'm no expert, but I am. So I think we can 4 knock that down. 5 Water and sewer, it seems like we spend 6 about the same every year. Okay. Is that it? 7 MR. McKENZIE: That's it. 8 MR. KING: Ramp grant, we all know about 9 that. Okay, let's go back at these things and look at 10 them. 11 MR. McKENZIE: Okay. 12 MR. KING: Professional services. I mean -- 13 MR. LIVERMORE: I would leave it where it's 14 at, because in this world out here you just don't know 15 -- wait a minute. I think I'm on the wrong thing. 16 MR. WOOD: This was something we talked 17 about in previous meetings where Bruce needed the 18 flexibility if we had something come up -- am I right? 19 MR. McKENZIE: Yes, Sir. 20 MR. WOOD: Where we had something come up if 21 he had to get a consultant on something and there's no 22 money in the budget for it, it gives him some 23 flexibility to do a project if we need it. 24 MR. KING: And I agree with that, but I keep 25 looking at here, the fact is you have to -- the fact 24 1 it's still on the table is the fact that you were 80 2 thousand dollars under your budget last year. How much 3 were you the year before? 4 MR. McKENZIE: I don't remember that, do 5 you? 6 MR. KING: It was considerable. 7 MRS. DUNGAN: A part of it, I think -- 8 MR. KING: So as long as we're proposing a 9 budget and we're saving money in the budget and we're 10 under by a considerable amount we have the discretion at 11 five percent, isn't that true, five percent. 12 MR. McKENZIE: We can move money up to five 13 percent of our budget without permission. 14 MR. KING: Which is considerable. That 15 would be a considerable sum of money. 16 MR. LIVERMORE: That would be 20 thousand 17 dollars. 18 MR. McKENZIE: 20 grand. 19 MR. KING: 20 grand to even move. Is that 20 total or is that any -- 21 MR. McKENZIE: Total. 22 MR. KING: During the budget year. 23 MR. McKENZIE: Uh-huh. 24 MR. KING: I would think you could drop it a 25 little bit. I mean I would say maybe to 15? 25 1 MR. GRIFFIN: Yeah. 2 MR. WOOD: That's what I would do. 3 MRS. DUNGAN: Remember, that in that 4 professional services is our automatic 7500 for our 5 audit. That's right off the top every year, 7500. 6 MR. KING: Just for the audit. 7 MRS. DUNGAN: Yes. So anything above that 8 would be something that Bruce would need. 9 MR. WOOD: Why don't we have the audit in 10 there as a separate line item if that's a yearly 11 automatic thing. 12 MRS. DOSS: We could do that. 13 MR. LIVERMORE: I think we should. 14 MR. KING: That's a great idea. All right, 15 let's just put it 15. We'll just live dangerously and 16 take a chance. Is that okay? All right. 17 MR. O'FIEL: Is that going to be 15, or 18 after it's separated? 19 MR. McKENZIE: No, just put it 15. 20 MR. KING: Just put 15 thousand, and then 21 y'all can do it next time. We'll approve it as written. 22 I had a mark on chemicals and medical 23 supplies. 24 MR. McKENZIE: We could probably knock that 25 down to -- 26 1 MR. KING: Two. 2 MR. McKENZIE: -- two. 3 MAYOR PRATT: I have a question on that. 4 MR. LIVERMORE: Two thousand you think so? 5 MR. McKENZIE: Well, I think so. I've got a 6 bit of an inventory up there that could carry us over 7 before I had to add to our inventory, but I can probably 8 live with 2000 this year -- this coming year, rather. 9 MR. KING: Yes, Sir, you have a question on 10 that? 11 MAYOR PRATT: We're expecting a hot winter, 12 we're also expecting -- I mean a summer. We're 13 expecting rain. Mosquitos, the mosquito spraying come 14 under that? 15 MR. McKENZIE: Oh, no, we don't spray. 16 MAYOR PRATT: You don't spray. This Zika 17 virus, that's the reason I'm asking. 18 MR. McKENZIE: We never have. 19 MAYOR PRATT: Yeah, I know but -- okay. 20 MR. KING: Okay. Item fuel and oil 21 supplies. I think three thousand. 22 MR. GRIFFIN: 35 maybe. I mean if we look 23 back, we've gone 36, 45, 35, 39, 25. 24 MR. McKENZIE: How about 35. 25 MR. KING: Yeah. 27 1 MR. GRIFFIN: Take a thousand off. 2 MR. KING: Okay. All right, postage. Why 3 did I put a mark at postage, that don't seem right. I'm 4 not -- okay. 5 Back over to building structures 20 6 thousand. 7 MR. GRIFFIN: Just depends on how much 8 breaks. 9 MR. KING: I know. 10 MR. GRIFFIN: And last year we got eaten up 11 with AC units over at Brinkman's. 12 MR. KING: All right. So we shouldn't have 13 that problem this year. 14 MR. WOOD: That was just repair. We didn't 15 replace them, we just repaired. 16 MR. McKENZIE: No. We replaced two units. 17 MR. WOOD: Well, that's good. They won't 18 break next year. 19 MR. GRIFFIN: Right. 20 MR. McKENZIE: And if we lease one of those 21 offices that is not being utilized with one of those 22 condensing units, I mean if it's possible, well we can 23 gamble. 24 MR. LIVERMORE: We have an office over there 25 yet to lease? 28 1 MR. McKENZIE: We've got four over there to 2 lease. 3 MR. LIVERMORE: I thought those were all 4 taken. 5 MR. WOOD: See that's a source of possible 6 revenue. 7 MR. KING: How about seventeen five. 8 MR. McKENZIE: Okay. 9 MR. KING: Okay. Next item I have marked 10 was liability insurance. 11 MR. LIVERMORE: That has varied a lot. 12 MR. WOOD: I just don't have a feel for 13 that. 14 MR. KING: I don't either. Can we -- 15 MR. McKENZIE: The City does the liability. 16 MS. YARBOROUGH: We don't know until the end 17 of September what it's going to be from the insurance 18 company, that's going to be advance. Depends on 19 experience every year. 20 MR. WOOD: Yeah, we actually spent 22 21 hundred in 2014. 22 MR. LIVERMORE: And then last year -- 23 MR. KING: Well, insurance across the board 24 has been less. I say we go to 1750. 25 MR. WOOD: Yeah, why not. 29 1 MR. KING: I mean if we have to -- if it's 2 three hundred dollars or two hundred, four hundred 3 dollars, we can take that out of reserve and put that in 4 there. 5 MR. McKENZIE: 17 and a half. 6 MR. KING: Yeah. We'll have less on for 7 next year. But my experience that insurance it's been 8 less for the last couple of years. 9 MR. McKENZIE: Okay. All right. 10 MR. KING: Okay. The next item is -- 11 MR. LIVERMORE: Contingency. 12 MR. KING: -- contingency. There we go, 13 contingency. 14 MR. LIVERMORE: Goes back to go Kirk's 15 comment, unexpected you know what. 16 MR. WOOD: Yeah. But I don't see -- 17 MR. KING: You budget on expected expenses; 18 not on unexpected expenses. 19 MR. LIVERMORE: Yeah. True. 20 MR. KING: And if you budget on unexpected 21 expenses, we'd have a five hundred thousand dollars on 22 maybe's. I think we can knock that down, guys, back 23 down to -- 24 MR. WOOD: Ten. 25 MR. KING: -- ten. I really do. That's my 30 1 personal opinion. We haven't used it this year, we used 2 63 hundred last year. I'm trying to think -- 3 MR. LIVERMORE: What the ten grand even was 4 even money, well how can that be? 5 MRS. DUNGAN: We used -- because we used it 6 all. We had it budgeted at ten thousand. 7 MR. WOOD: It probably wasn't any one time 8 expense. 9 MR. LIVERMORE: Oh, I see, so that was the 10 budget and they used it all and must have gotten some 11 from somewhere else. 12 MRS. DUNGAN: Exactly. 13 MR. WOOD: I think as we improve on all our 14 known budgeted items, then the contingency is used less. 15 MR. KING: Let's try ten. 16 MR. McKENZIE: Ten, okay. 17 MR. KING: And the last thing is propane. 18 MR. LIVERMORE: Testimony from our expert? 19 MR. KING: I don't know, I just hate that 20 propane. 21 MR. McKENZIE: Go down to five. 22 MR. KING: Yeah, I'll go with that. 23 MR. WOOD: Depends on if we have a El Nino 24 or La Nina next year. 25 MR. LIVERMORE: I hope we use it all. 31 1 MR. KING: Go back to the Counsel and the 2 Commissioners' Court to get more money. 3 MR. GRIFFIN: That totals up to $23,050. 4 MR. McKENZIE: Is that what it is. 5 MR. KING: Off? Really? 6 MR. McKENZIE: 2350. 7 MR. WOOD: Did you add that up already? 8 MR. GRIFFIN: Yeah. Not bad for an Aggie, 9 hu. 10 MR. O'FIEL: I need a calculator and you 11 come out with the numbers. 12 MR. GRIFFIN: 23,050. 13 MR. KING: Is that what you got, too? 14 MR. WOOD: That's what I got. 15 MR. KING: Why don't we have somebody else 16 check that just in case. Not doubting you. 17 MR. GRIFFIN: Yeah, you are. 18 MR. KING: No, no, no. 19 MR. LIVERMORE: So three hundred and 95 20 thousand in round numbers. No, wait a minute. Am I on 21 the wrong -- just a minute. No, no. I think so. 22 MR. KING: I think you're right. Are you 23 adding that, Carole? 24 MR. GRIFFIN: And do we split that in half 25 and take that off of our top two line items? 32 1 MR. GRIFFIN: If somebody will verify that 2 11 thousand is a good number. 3 MR. LIVERMORE: Take off where? 4 MR. McKENZIE: The top two. 5 MR. GRIFFIN: Off of that. 6 MR. LIVERMORE: You looking for revenue? 7 MR. McKENZIE: Is that right, Carole? 8 MR. WOOD: Well, we took 8754 out of 9 contingency II, so that's an odd number. 10 MR. LIVERMORE: How much -- we're taking 23 11 grand off of it in round numbers, is that right? Off 12 the budget expense side? 13 MR. O'FIEL: On page one we took off 8 14 thousand. 15 MR. LIVERMORE: I propose that we reduce -- 16 MR. GRIFFIN: Let's verify our numbers. 17 MR. WOOD: I got 20,754. 18 MRS. DUNGAN: I got 19 -- 19 MR. GRIFFIN: Let's review this. 20 MR. WOOD: You got five thousand taken off 21 on the professional services. And you got two thousand 22 taken off chemical and medical. We got one thousand off 23 of fuel and oil. 24 MR. O'FIEL: So it's 8 thousand on page one. 25 MR. WOOD: Yes. Then you've got -- we made 33 1 that 17,500, what is that 25 hundred? Then we've got 2 450. We made that 1750, didn't we? 3 MR. KING: Yes. 4 MR. GRIFFIN: It's 450 -- 5 MR. LIVERMORE: 28 thousand. 6 MR. KING: Plus 8000 -- 7 THE REPORTER: Excuse me, one at a time, 8 please. 9 MR. KING: And then the thousand on the last 10 one. 11 MR. WOOD: And then a thousand. So the 12 numbers add up are 8 thousand, 25 hundred, 450, 8754, 13 and one thousand. 14 MR. LIVERMORE: But what's the total, Bill? 15 MR. WOOD: I'm not an Aggie, so -- 20,704? 16 MR. O'FIEL: Yes. 17 MR. KING: That's what I got. 18 MRS. DUNGAN: Yes, that's what I got. 19 MR. LIVERMORE: I would propose just to 20 round it to 20 thousand off of the ten thousand each off 21 the County and the City. 22 MR. KING: Well, we'll go exact. 23 MR. WOOD: They got to make it add up. 24 MR. KING: 20,704. So what's the budget 25 going to be? The total budget's going to be 417 minus 34 1 20, 704, correct? 2 MR. McKENZIE: Uh-huh. 3 MR. KING: So what's the total revenue minus 4 expenses. 5 MR. WOOD: So we could knock 10,352 off each 6 of the -- 7 MR. KING: Off of each of them? 8 MR. McKENZIE: Uh-huh. 9 MR. KING: That's 21,735. 10 MR. LIVERMORE: I personally like to deal in 11 round numbers, just helps to remember things. 12 MR. KING: Why? Okay. I'll give you -- can 13 I get change for -- I'd like to do business with you, 14 because I think I could take advantage of you. 15 MR. LIVERMORE: Yeah, well, you won't. 16 MR. KING: Just round it off, we'll just 17 round up and down. 18 MR. LIVERMORE: Whatever. 19 MR. KING: I'm just kidding. I mean I just 20 -- I don't know if it's a number, a number's a number to 21 me. 22 MAYOR PRATT: Steve, I've got a question. 23 Probably for Bruce more than anything. In our strategic 24 planning meeting last week or whatever it was, we talked 25 about a capital budget in '17 or '18 for -- for 12 more 35 1 T-hangars. 2 MR. KING: Right. 3 MAYOR PRATT: Bruce made a comment that the 4 grant may only cover ten, but there was members on both 5 sides City and County that said maybe we need to 6 consider 12 anyway. And so, that extra cost, does that 7 need to -- and we talked about go ahead and doing the 8 planning now, rather than waiting so that if the funding 9 came up, that we'd already have a plan in place. So -- 10 MR. KING: Well, I think what we're going to 11 do, part of that we're going to address with our -- we 12 were going to address with in the regular meeting. 13 We're going to take -- we're going to open an -- start a 14 capital account. 15 MR. McKENZIE: Correct. 16 MR. KING: We're going to start a capital 17 account, and we're going to take money out of our cash 18 surplus, which is considerable at this moment, and move 19 it into that capital account as sort of a savings 20 account for a situation just like that, Mayor, that we 21 can -- we can take, you know, a hundred and 50 thousand 22 or something like that and have it over there and -- 23 MAYOR PRATT: But that's for the capital. 24 But I don't know whether the planning is going to be 25 under the capital or not. And so we talked about doing 36 1 the planning, don't wait until TxDot gives us the money, 2 but go ahead and do the planning now, so that if funding 3 came early, that we'd have the plan in place. 4 MR. LIVERMORE: You're talking about being 5 shovel ready, so called. 6 MAYOR PRATT: Yes. 7 COMMISSIONER LETZ: Do you have enough funds 8 in your professional services to allow for it? 9 MAYOR PRATT: That's exactly right. I mean 10 it's nice -- it would be nice to get money back. 11 MR. McKENZIE: Sure it would. 12 MAYOR PRATT: But on the other side of the 13 coin, we don't want to cut our planning short either. I 14 can't speak to the County; I can speak to the City. 15 MR. KING: Right. I'm trying to think of 16 where that -- well, I guess I'm not understanding that 17 as far as adding that to the professional services 18 account. You talk about for the planning of that, for 19 the planning of the -- 20 COMMISSIONER LETZ: Drawings, whatever, 21 yeah. Dirt work, engineering -- 22 MAYOR PRATT: Engineering, everything out 23 there before you start putting the T-hangars up. 24 MR. McKENZIE: That will all come through 25 part of the TxDOT grant. 37 1 MR. LIVERMORE: But he's talking about 2 trying to be in front of that. 3 MR. McKENZIE: Well, then we'll have to pony 4 up the money. 5 MR. KING: And I think we could take that 6 out of the capital account, couldn't we? 7 MR. McKENZIE: We could. 8 MR. KING: I mean wouldn't that come out of 9 your capital account? That's what I was talking about 10 maybe putting 150,000 -- 11 MR. McKENZIE: We could, yeah. 12 MR. KING: -- or something, and use that to 13 cover to get ahead of them, if they say -- 14 MAYOR PRATT: That's fine. I want to make 15 sure that's not left out. 16 MR. KING: I agree, I agree. And I think 17 that is what the reasoning having that on that item is 18 to cover that, and to try and like you said to ahead of 19 them and to be able to say we could go ahead and do the 20 pad or something like that, and -- 21 MR. McKENZIE: Do the engineering first. 22 MR. KING: And if it came next year or the 23 year after next, we could also add the capital next year 24 and maybe have a couple of hundred thousand dollars in 25 there when they're ready for that. 38 1 MR. WOOD: We have a reserve for capital 2 item in here, which we talked about for, I think -- 3 MR. KING: I think that was for vehicle 4 maintenance. 5 MR. WOOD: I mean you could always say it's 6 capital use -- capital for other things, too. 7 MAYOR PRATT: If we do the planning and we 8 spent the money in advance, TxDot gives us the grant, 9 they will reimburse -- they could reimburse, our -- our 10 planning fees, so our expenses, so -- 11 MR. KING: Okay. I understand what you're 12 saying now. 13 COMMISSIONER LETZ: Because, Steve or Bruce, 14 when in doing the capital account, which I support 15 doing, I would itemize what projects you're putting the 16 money towards. And that's the only project right now, 17 so that you can say a lump sum specific. 18 MR. KING: I agree, I agree. What that 19 capital account would be used for in other words? 20 COMMISSIONER LETZ: Right. Whether it be 21 T-hangars 150 thousand. If you add something else next 22 year have another line item for that item. 23 MR. KING: I agree with you, I think that's 24 a good idea. Have different items under the capital 25 account to show where we're specifically trying to put 39 1 the money. It's not just a stash, a place to stash the 2 money. 3 MAYOR PRATT: No, it's got to be itemized. 4 MR. KING: I agree, I agree. We'll do that. 5 MR. WOOD: Well, we do the 20,704 we saved 6 out of the budget items. Where do we want to apply it? 7 MR. KING: Well, reduce the budget. 8 MR. LIVERMORE: He wants to reduce the 9 contributions. 10 MR. McKENZIE: The contributions. We'll 11 reduce this. 12 MR. KING: The contribution now would be 13 21,735. 14 MR. McKENZIE: Down from 500 thousand. 15 MR. KING: Is that what she came up with? 16 MR. WOOD: I had 25, but you're right, it's 17 35. 18 MR. KING: I think are we still waiting for 19 Carole? 20 COMMISSIONER LETZ: She's putting it in a 21 spread sheet. 22 MR. KING: Oh, putting it in the computer so 23 we can do that. 24 MR. WOOD: I got that number, too. 25 MR. GRIFFIN: Is our workshop over? 40 1 MR. KING: Yeah, I think we can probably end 2 the workshop and go into regular session, and we approve 3 that budget. 4 MR. GRIFFIN: Because we got an agenda item. 5 MR. WOOD: So basically knocked ten grand 6 off of each? 7 MR. McKENZIE: Uh-huh, the contribution. 8 MR. KING: We're not revenue neutral this 9 year, but I have a really good feeling about next year. 10 MR. McKENZIE: Me too. 11 MR. KING: If we can get some more revenue. 12 Okay, so we'll end this budget workshop session with 13 10,352 we reduce it. End this budget workshop session 14 at 9:24. We don't have to vote on that or anything? 15 MR. McKENZIE: No. 16 * * * * * * 17 18 19 20 21 22 23 24 25 41 1 STATE OF TEXAS * 2 COUNTY OF KERR * 3 I, DEBRA ELLEN GIFFORD, the Official 4 Certified Shorthand Reporter in and for the Kerr County 5 Commissioners' Court, do hereby certify that the above 6 and foregoing pages contain and comprise a true and 7 correct transcription of the proceedings had in the 8 above-entitled Airport Meeting. 9 Dated this the 31st day of March, A.D. 2016. 10 11 /s/DEBRA ELLEN GIFFORD Certified Shorthand Reporter 12 No. 953 Expiration Date 12/31/2016 13 * * * * * * 14 15 16 17 18 19 20 21 22 23 24 25 1 1 KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 2 Regular Meeting 3 Wednesday, March 21, 2016 4 Airport Terminal Conference Room 5 1877 Airport Loop Road 6 Kerrville, Texas 78028 7 ******************************************************** 8 MEMBERS PRESENT: 9 Stephen King, President Bill Wood 10 Kirk Griffin Ed Livermore 11 MEMBERS ABSENT: 12 Corey Walters, Vice President 13 AIRPORT COUNSEL 14 Patrick O'Fiel 15 AIRPORT BOARD STAFF PRESENT: 16 Bruce McKenzie, Airport Manager 17 Carole Dungan, Executive Assistant 18 COUNTY STAFF PRESENT: 19 Jonathan Letz, Commissioner Pct. 2 Brenda Doss, Auditor 20 CITY STAFF PRESENT: 21 Jack Pratt, Mayor 22 Sandra Yarbrough, City of Kerrville 23 VISITORS 24 Jennifer Riley, Kerrville Daily Times Chris Coons, CP&Y 25 Trey Hughes Ross Dunagan, FDP 2 1 I-N-D-E-X 2 NO. PAGE 3 1. VISITOR'S FORUM 3 4 2. KERRVILLE-KERR COUNTY JOINT AIRPORT 3 BOARD MEMBER FORUM 5 3. CONSENT AGENDA 6 3A. Approval of February 17, 2016 Board 7 7 Meeting Minutes 8 4 DISCUSSION AND POSSIBLE ACTION 9 4A. Monthly Financials, February 8 10 4B. Approval of FY 2016-2017 Airport Budget 10 11 4C. Establish Capital Reserve Account in 11 Fund 47 12 4F. Possible Demolition of Building 17 and 21 13 a portion of Building 18 14 4G. Updating of Building 19 27 15 5 INFORMATION AND DISCUSSION 16 5A. General Update 35 17 6 Executive Session *** 18 4D. Possible Lease of Building at 1994 37 Airport Loop 19 4E. Economic Development 39 20 7 ADJOURNMENT 41 21 22 23 24 25 3 1 MR. KING: I call this meeting to order of 2 the Kerrville-Kerr County Joint Airport Board, the 3 Regular Meeting, March 21st, 2016. Call to order. 4 Visitor's Forum, at this time, any person 5 with business not scheduled on the agenda may speak with 6 the airport board. No deliberation or action can be 7 taken on these items because the Open Meetings Act 8 requires an item be posted on an agenda 72 hours before 9 the meeting. If formal action is required, the item 10 will be placed on an agenda for a future meeting. 11 Anyone being heard? No one. 12 Item 2 Kerrville-Kerr County Joint Airport 13 Board forum. At this time, any members of the 14 Kerrville- Kerr County Joint Airport Board may speak to 15 Board and/or public present on any matter not scheduled 16 on the agenda. No deliberate or formal action may be 17 taken because the Open Meeting Act requires an item to 18 be posted for 72 hours before the meeting. If formal 19 action is required, the item will be placed on the 20 agenda for future meeting. Anyone? 21 MR. LIVERMORE: I'd like to bring up 22 something. We had our airport planning meeting about oh 23 a week ago -- 24 MR. McKENZIE: Last Tuesday. 25 MR. LIVERMORE: -- and I thought it was a 4 1 very successful meeting. We had a good crowd here. The 2 biggest part of the event though was taking the group 3 for a tour of both Mooney and the paint hangar, which I 4 think was very educational for all of us. The Mooney 5 operation's astounding, really, what's going on over 6 there. I propose because I think it's important we have 7 a relationship with both owners, in order to enhance 8 that into the future, I think we oughta have another 9 tour and invite all the candidates, City and County, to 10 come out and not only see the airport, quick tour of the 11 airport, but I'd like for them to go through the Mooney 12 operation, see the same type of -- same type of 13 presentation that we had over there, it was terrific. 14 I'd like for them to see the paint hangar, perhaps the 15 building behind the road, over here, what's it -- 16 MR. McKENZIE: 1994 Airport Loop. 17 MR. LIVERMORE: I think these folks oughta 18 be informed. And it's a good outreach for the airport, 19 and to pay dividends for us. 20 MR. KING: All right, thank you very much. 21 I had one thing -- 22 MR. LIVERMORE: And I'd like to schedule 23 that well enough in advance, so that, you know, 24 hopefully we don't have conflict and people can come. 25 MR. KING: When was that a couple weeks ago 5 1 we went to the TxDOT meeting. I attended the TxDot 2 meeting, and on the last day of the TxDOT meeting on 3 Friday or Thursday night? 4 MR. McKENZIE: Thursday night. 5 MR. KING: Thursday night they have a 6 general presentation, what would you call it, say a 7 little meeting with -- 8 MR. McKENZIE: It's a banquet. 9 MR. KING: A banquet, where they give awards 10 to the different airports in the State of Texas, they 11 give an award for the best reliever airport, they give 12 an award for the best airport of the year, which we've 13 won a couple of years ago and stuff like that, and then 14 they give several different awards. One of the awards 15 they do give, one of the larger awards they give is 16 airport manager of the year. It's three hundred 17 airports in the State of Texas that qualify as airports 18 that are like ours, and all three hundred of those 19 airport managers are in the running for that, and this 20 year Bruce McKenzie, our airport manager, was given that 21 award as airport manager of the year. 22 MR. LIVERMORE: Well deserved, too. 23 MR. KING: And I just can't tell ya how -- 24 how welcome Bruce was to get that award. I mean you 25 don't know how many airport managers came up to him, and 6 1 to me at that meeting, and said you know how deserving 2 he was of it. And Bruce makes a -- I've -- it's amazing 3 but he makes a habit of talking to every person there at 4 that meeting. It's amazing of how many people know 5 Bruce and how -- what a great honor it was for him to 6 get that award. I mean your airport is a big deal but 7 when your airport manager is recognized by the TxDot and 8 all the different people involved, as airport manager of 9 the year was a great -- a very, very great honor. And I 10 was glad I was there to share with you. 11 MR. McKENZIE: Thank you. 12 MR. LIVERMORE: We're very proud of that. 13 MR. O'FIEL: Congratulations. 14 MR. McKENZIE: Thank you. 15 MR. KING: We need to get that in the paper, 16 we need to have that in the paper. 17 MS. RILEY: I'm here today. 18 MR. KING: Bruce was totally surprised. We 19 actually were able to keep it a secret the whole time. 20 And his family was there, and I flew over for the 21 presentation, and it was -- and he was totally shocked 22 when they put the Kerrville Airport picture up there. 23 They had a picture of the airport, and his first words 24 were you gotta be kidding. So it was a great honor, and 25 it got Kerrville a lot of recognition, and it's such a 7 1 great honor then Dave Fulton the head of TxDOT 2 recognizes your airport manager as the best man in the 3 State of Texas. So thanks, Bruce, for everything you 4 do. 5 MR. McKENZIE: Thank you. 6 MRS. DUNGAN: We will be having a little 7 reception. 8 MR. KING: Okay, good. And he got a plaque 9 and everything, and we got some good pictures. 10 Consent Agenda -- anybody else have 11 anything? Consent Agenda, all items listed below within 12 the consent agenda are considered routine by the Board 13 and will be enacted with one motion. There will not be 14 separate discussion of items unless a Board Member or 15 citizen so request, in which event the item will be 16 removed from the general order of business and 17 considered in its normal sequence. 18 Approval of the February 17th board meeting 19 minutes, item 3A. Any motion to approve? 20 MR. LIVERMORE: I was not here. 21 MR. WOOD: I so move. 22 MR. KING: Moved by Mr. Wood. 23 MR. GRIFFIN: I second. 24 MR. KING: Seconded by Mr. Griffin. And all 25 in favor. 8 1 MR. LIVERMORE: Abstain. 2 MR. KING: Three zero, and Mr. Livermore 3 will been abstaining, and Mr. Walters is not in 4 attendance. 5 Item 4 discussion and possible action, with 6 monthly financials, Brenda. 7 MRS. DOSS: Yes. Right now their remaining 8 budget should be at about 58 percent, because we have 9 seven months left and most of the expenditure items it 10 seems to be really close to that. No items out of the 11 ordinary noticed. Does anyone have any questions? 12 MR. GRIFFIN: No, Ma'am. 13 MR. WOOD: Is our budget we use in our 14 budget workshop, is this through 2016 spent, is that 15 current with this? 16 MRS. DUNGAN: The February -- 17 MRS. DOSS: February -- 18 MRS. DUNGAN: Yes, Sir. 19 MRS. DOSS: Sorry, I didn't do the 20 worksheet, I think Carole did. 21 MRS. DUNGAN: That's me. 22 MR. KING: Any question on it? 23 MR. WOOD: So there weren't any big, big 24 changes in this that were affected? 25 MR. McKENZIE: No. 9 1 Mr. Wood: Okay. 2 MR. LIVERMORE: All right, there was a 3 comment earlier, unless I just don't remember, about the 4 cash that we have on hand. And I think it's greater 5 than the number that we -- someone, I don't remember who 6 said it, didn't I hear 370. It looks like it was 440, 7 445. Anyway -- 8 MR. KING: What is the cash on hand? 9 MRS. DOSS: 441. 10 MR. LIVERMORE: 441, is that correct? 11 MRS. DUNGAN: Yes. 12 MRS. DOSS: Yes. Some of those are payables 13 though. 14 MR. LIVERMORE: Oh, there's payables against 15 that? 16 MRS. DOSS: Yes, Sir. And T-hangar 17 deposits. 18 MR. McKENZIE: But the actual cash is 337 19 though. 20 MRS. DOSS: No, the actual cash is 441. 21 Fund balance is 337. 22 MR. LIVERMORE: Okay. Okay. All right, 23 yeah. 24 MR. KING: All right. Anybody else have 25 questions on those financials? Motion to approve? 10 1 MR. LIVERMORE: So move. 2 MR. WOOD: Second. 3 MR. KING: All in favor? Excuse me, 4 discussion? None being heard, all in favor. Four zero. 5 Item 4B approval of FY 2016, 2017 Airport 6 Budget. 7 MR. WOOD: I make a motion we approve it as 8 amended. 9 MR. KING: Do you have a copy of it? 10 MR. LIVERMORE: I will second the motion. 11 MR. GRIFFIN: Just for the record, did you 12 come up with the 21,735. 13 MR. KING: 21,735. 14 MR. McKENZIE: You can have that one if you 15 want it. She can make me another one. 16 MR. KING: So the contribution from our 17 owners will be 21,735 each for the year, down from 35 18 thousand last year. 19 MR. LIVERMORE: 70 total to 43. 20 MR. KING: 47 the year before that. 80, 90, 21 110, 228 and 601. So I think we put that on a graph 22 it's going really good. 23 MRS. DUNGAN: Real steep. 24 MR. KING: Now if the graph can get to the 25 bottom before I pull the rip cord and get out of here, 11 1 we'll be in good shape. Okay. 2 Motion to approve the budget. 3 MR. LIVERMORE: I think we have. 4 MR. WOOD: Yeah, I moved. 5 MR. LIVERMORE: And I seconded. 6 MR. KING: All in favor. Four zero. 7 Euphoria caught on. 8 Establish a capital reserve account for fund 9 47. Bruce and Brenda. 10 MR. McKENZIE: We discussed this last week 11 and it's been discussed in the budget workshop just 12 awhile ago, to probably try to move it at least a 13 hundred thousand and maybe a hundred and 50 thousand, 14 that's at the pleasure of the board, into a capital 15 reserve account for all the items noted above that we 16 just discussed. 17 MR. KING: I agree, I understand that. 18 Jonathan, do we need to specifically -- if we move 150 19 thousand, do we need to specifically like dedicate that 20 for something? I mean is that -- 21 COMMISSIONER LETZ: I don't know that you 22 have to, but I think it's a good idea to. I mean 23 it's -- 24 MR. KING: It's better you think? 25 COMMISSIONER LETZ: Because then if you have 12 1 multiple projects you can track the project. If you 2 start spending money on engineering on the site then you 3 pull it out of this line item, and if you have -- you 4 want to put a line up maybe put a hundred thousand in 5 that and 50 thousand in hangar and something like that. 6 MR. KING: I see what you're saying. 7 COMMISSIONER LETZ: That way you can track 8 where the money is. 9 MR. KING: I think a hundred thousand for 10 future hangar development, T-hangar development, and we 11 could do like 50 thousand -- 12 MR. McKENZIE: 50 thousand for building 13 improvement. 14 MR. KING: I.E. hangar 19. 15 COMMISSIONER LETZ: To me it's just better 16 that you have -- not that I think that either the City 17 or the County would do it, but if you have it designated 18 for a project, it's much more -- for a project as 19 opposed to money that's just sitting over there 20 unallocated. 21 MR. McKENZIE: Exactly, that's a good point. 22 MR. LIVERMORE: Well, do you need a motion 23 to effect that? 24 MR. KING: I think we have to sign a 25 Resolution and go to the City and County, correct? 13 1 MRS. DOSS: Yes. 2 MR. KING: To get that approved. 3 MRS. DOSS: Well, I think the Board can 4 approve that. 5 MR. KING: You think so. 6 MRS. DOSS: Yes. 7 MR. GRIFFIN: Because we're not changing the 8 values, we're just changing how we're bookkeeping it. 9 MRS. DOSS: Right. And GASB requires you 10 you have to commit it the highest form of board action, 11 which would be a Resolution. And then if you want to 12 change it you again have to adopt another Resolution. 13 So if you want to commit a hundred thousand to the 14 hangar projects, if you want to spend less than that and 15 you spend it on something else, then you would have to 16 come back and do another Resolution. 17 MR. KING: Another Resolution. 18 MRS. DOSS: Yes, Sir. 19 MR. McKENZIE: And we have the Resolution 20 ready to sign though. 21 MR. KING: And the Resolution does that need 22 to say where we're putting the monies? 23 MRS. DOSS: It has to be for a specific 24 project. I just put future construction because at the 25 time, I didn't know. 14 1 MR. McKENZIE: Or we can do another one. 2 This is not an emergency. 3 MR. KING: No, we can do another Resolution. 4 I think Jonathan's correct, we probably should if we're 5 going to put let's say we're going to put a hundred and 6 50 thousand, let's put a hundred for future hangar 7 construction, and the other 50 thousand would be for -- 8 MRS. McKENZIE: Building improvement. 9 MR. KING: -- building improvement. You 10 know for current buildings, for current existing -- 11 existing building, you know, improvements. And then if 12 we don't -- 13 MR. LIVERMORE: But that's something you'd 14 bring to a future meeting? 15 MR. McKENZIE: If we were going to do it, 16 yes, Sir. For example, if we were going to improve the 17 paint hangar -- 18 MR. LIVERMORE: I'm talking about the 19 Resolution -- 20 MR. McKENZIE: We could bring the Resolution 21 to our meeting in April. Once we get it delineated 22 exactly what we want. Brenda didn't know, she just put 23 construction. 24 MR. KING: So we need a motion on that, I 25 guess? Do we need a motion to approve that, or just a 15 1 Resolution? 2 MR. McKENZIE: You need a motion to approve 3 what you're going to put in these line items, I would 4 think, Patrick. 5 MR. O'FIEL: I think it does. 6 COMMISSIONER LETZ: If your Resolution you 7 have right now is for the hundred and fifty thousand, 8 you can pass that Resolution and then come back and 9 designate it later. 10 MR. KING: Okay. Okay. Can we make the 11 Resolution -- does the Resolution say any specific 12 number? Oh, it does, it has a place to fill it in. So 13 the Resolution has that place to fill it in. Okay, then 14 we can do that. Okay. Yeah, the Resolution I see what 15 she's made up, okay. 16 Okay. So we can put a hundred thousand 17 dollars committed for future capital projects, and then 18 we can delineate what those -- what those two, where the 19 money goes in the actual capital account. Did you see a 20 copy of that, Jonathan? 21 COMMISSIONER LETZ: No, but it's fine. 22 MRS. DOSS: A hundred thousand or a hundred 23 and fifty? 24 MR. KING: So you got a hundred and fifty 25 now? 16 1 MR. WOOD: Yeah. Yeah. 2 MR. KING: I would say a hundred and fifty 3 thousand. 4 MR. McKENZIE: Okay. 5 MR. KING: Does that sound good to you, 6 Kirk? 7 MR. GRIFFIN: Yeah. 8 MR. LIVERMORE: Do we need to say divide it 9 now or is that -- 10 MR. McKENZIE: No. Come back later and do 11 that. 12 MR. KING: Okay. How about you want to have 13 a motion that we establish this account? 14 MR. LIVERMORE: Well, I'll make the motion. 15 I'm not exactly sure how to word it, but I will make a 16 motion to establish a reserve capital account in the 17 amount of 150 thousand dollars for the purpose -- for 18 two purposes, construction of -- 19 MR. McKENZIE: New T-hangars. 20 MR. LIVERMORE: New T-hangars and 21 improvement of the existing facility, facilities, to be 22 determined later. Is that correct? 23 MR. KING: I would say new hangars, new 24 hangers so we're not limited just to T-hangars. Yes, 25 Ma'am, Brenda. 17 1 MRS. DOSS: I think if we're going to adopt 2 this Resolution, I think you have to read the Resolution 3 at the meeting. 4 MR. KING: What? 5 MRS. DOSS: Read it. 6 MR. KING: Read it. This Resolution here? 7 MRS. DOSS: Isn't that right? 8 MR. KING: Okay. 9 MR. LIVERMORE: You have to read the whole 10 thing. 11 MR. KING: Okay. All right. I'll read the 12 Resolution. 13 Kerrville-Kerr County Joint Airport Board, 14 Kerrville, Texas. Resolution number 0001. Do we have 15 any other Resolutions? 16 MRS. DOSS: Not that I know of. 17 MR. KING: 0001, okay. A Resolution 18 committing general fund balance in the amount of 19 $150,000.00 in accordance with governmental accounting 20 standards board statement 54. 21 Whereas, the Governmental Accounting 22 Standards Board statement number 54 GASB, G-A-S-B 54, 23 fund balance reporting and governmental fund type 24 definitions, modifies the definitions and types of 25 resources that may be reported in governmental funds 18 1 effective for financial reporting periods beginning 2 after June 15, 2010, and implemented by the 3 Kerrville-Kerr County Joint Airport Board in fiscal year 4 2011; and whereas the objective of GASB 54 is to provide 5 for the reporting for governmental fund balances based 6 upon a hierarchy that shows from the highest to the 7 lowest, the level or form of constraints on fund 8 balances and accordingly, the extent to which 9 governments are bound to honor them as follows: Non 10 spendable, restricted, committed, assigned unassigned; 11 and whereas GASB 54 allows the governing body to 12 formalize the commitment of unassigned fund balance to a 13 specific(sic) purposes, whereas the Kerrville-Kerr 14 County Joint Airport Board is the highest level of 15 decision-making authority, and has authority to commit, 16 assign and evaluate fund balance classifications and 17 identify the intended uses of committed or assigned 18 funds; and whereas, the committed fund balance 19 classification reflects amounts subject to internal 20 constraints self-imposed by Kerrville-Kerr County Joint 21 Airport Board; whereas once the committed fund balance 22 imposed, it requires the constraint to be removed by the 23 Kerrville-Kerr County Joint Airport Board prior to 24 redirecting the funds for other purposes; and whereas 25 the Kerr County Joint Airport Board feels that this 19 1 designation of these funds are in the best interest of 2 the taxpayers and residents of the County; whereas Kerr 3 County Joint Airport Board has unreserved funds 4 available for this purpose; and whereas the 5 Kerrville-Kerr County Joint Airport Board rescinds any 6 prior Resolutions committing Fund Balance, if any; and 7 whereas, the Kerr County Joint Airport Board elects to 8 commit unassigned Fund Balance for specific commitment, 9 and to apply such requirements to its financial 10 statements beginning with the current financial 11 statement -- current period financial statement with the 12 fiscal year ending September 30th, 2016; and now 13 therefore be it resolved that Kerrville-Kerr County 14 Joint Airport Board in accordance with the provisions of 15 GASB 54 hereby commits the following portions of its 16 fiscal year end September 30th, 2016 fund balance as 17 follows: General Fund Balance of $150,000.00 is 18 committed for future capital projects. These funds are 19 anticipated to be accrued over a multi-year period. The 20 funds so designated cannot be used for any other purpose 21 other than directed above, unless the Kerr County 22 Airport Board adopts another Resolution to remove or 23 change the constraint. 24 Passed and approved on the 21st day of 25 March, 2016, by the Kerrville-Kerr County Joint Airport 20 1 Board. 2 Is that it? 3 MR. LIVERMORE: Is that my motion? 4 MRS. DOSS: Uh-huh. 5 MR. LIVERMORE: Well, the motion, the 6 wording that I -- that's all withdrawn and that is the 7 motion, is that correct, Bruce? 8 MR. McKENZIE: For approval of the 9 Resolution. 10 MR. KING: For approval of the motion, as 11 read. 12 MR. LIVERMORE: Well, then I move that we 13 approve the Resolution 001 -- 14 MR. KING: Uh-huh. 15 MR. LIVERMORE: -- as read. 16 MRS. DUNGAN: All signatures are required. 17 MR. KING: Right, and it will be signed by 18 the President, Steven King, Corey Walters, Vice 19 President, Kirk Griffin, Board Member, Ed Livermore, 20 Board Member, Bill Wood, Board Member, and Bruce 21 McKenzie Airport Manager. 22 MR. LIVERMORE: That's my motion. 23 MR. KING: We have a motion to approve the 24 Resolution as read. Any second? 25 MR. GRIFFIN: I'll second it. 21 1 MR. KING: Second by Mr. Griffin. Any 2 discussion? 3 MR. GRIFFIN: No, Sir. 4 MR. KING: All in favor? Four zero, 5 approved. 6 MR. LIVERMORE: Should we go to item 4F, Mr. 7 Chairman and come back to the executive items later? 8 MR. KING: Okay, yeah. Item 4F, we're going 9 to skip to item 4F, possible demolition of building 17 10 and a portion of building 18, Bruce. 11 MR. McKENZIE: Yes, Sir. You've all 12 probably noticed building 17, maybe you haven't noticed, 13 it is in a terrible state of disrepair. The ceiling has 14 already fallen in, the roof is collapsing, it's a 15 dangerous structure. I've put signs all around it 16 saying keep out. As well as the two wings on building 17 18. My recommendation to this body is that we demolish 18 those structures. And along those lines, I had them 19 tested environmentally for asbestus, and we pulled 33 20 samples from those three buildings, and all three 21 samples were negative for asbestus. So at that point I 22 got prices from two different contractors. One locally 23 to raise the buildings, and one contractor out of San 24 Antonio to do the same. One with leaving the slab, one 25 without leaving the slab. But those buildings need to 22 1 go, because I think it will greatly enhance the appears 2 of our airport. The aesthetics will change greatly if 3 those buildings are gone. In my opinion -- 4 MR. LIVERMORE: The money for this will come 5 out of what fund is it coming out of? 6 MR. McKENZIE: Well, we can pay for it, or 7 we can perhaps -- I haven't talked to Megan Castle about 8 this yet, but maybe we can get some of this paid for 9 with a grant, or perhaps our owners would help us pay 10 for it. I don't know. It's their buildings, so -- 11 MR. LIVERMORE: I'm looking for cheering 12 from the audience on -- 13 MR. WOOD: Does this include hauling off all 14 of the stuff. 15 MR. McKENZIE: I don't want to give the 16 names because if we're going to go out for bids on this 17 then the word's out. But the price from the San Antonio 18 contractor, who is an extremely reputable contractor, to 19 demolish those three buildings including the slab was 20 $71,500.00. To leave the slabs is $54,000.00. The 21 local contractor wanted 79,000. 22 MR. KING: To knock those buildings down? 23 MR. McKENZIE: Yes, Sir. And not touch the 24 slabs. So it's quite a variance of a quote -- quoting 25 process. 23 1 MR. LIVERMORE: This probably -- 2 MR. McKENZIE: Since this does not -- I'm 3 sorry, go ahead. 4 MR. LIVERMORE: This probably isn't a good 5 idea, but this just is an idea or a thought. Would the 6 fire department want to burn those buildings down for 7 training as a training exercise? 8 MR. McKENZIE: Well, if they burned them 9 they'd have to put them out as a training exercise, and 10 we want them gone. 11 MR. KING: We can wait until the end. We 12 don't have to put them out immediately. 13 MR. McKENZIE: That's a good point. That's 14 a great point. 15 MR. KING: I don't know. I mean I think we 16 should -- 17 MR. McKENZIE: Or we could knock the 18 buildings down. 19 MR. KING: I told Bruce I think we should 20 explore this with the City and the County, and see if 21 they have any -- I think -- didn't they -- I don't 22 remember when Mamacita's -- didn't Hoji(phonetic) when 23 he bought Mamacita's -- 24 COMMISSIONER LETZ: We didn't -- we didn't 25 come in. We demoed quite a bit of our own stuff. 24 1 MR. KING: I think for some reason, as I 2 remember, some of the old building, the Old Republic, I 3 think he got a deal with the SWAT team or something, 4 they went in there and attacked them or something, and 5 knocked a lot of them down or something. It was just my 6 memory, it's been a long time ago. 7 COMMISSIONER LETZ: I think it's worth 8 exploring on that. 9 MR. KING: It's worth exploring. I mean 10 before we just willingly spend $70,000.00, let's look at 11 the opportunity. Somebody may have -- you know the City 12 and the County may want to practice tearing things up. 13 I don't know. And I mean just seems -- 14 MR. LIVERMORE: I agree with you. I agree 15 with you. I think there oughta be more -- 16 MR. KING: Can't hardly mess this one up. 17 MR. McKENZIE: No, just tear it up, haul it 18 off. 19 MR. KING: It's not like we're trying to 20 save anything. 21 COMMISSIONER LETZ: You might want to check 22 with Len Odem and see what their schedule is, but it's 23 about a day project to tear it down. 24 MR. KING: Yeah, but not something that has 25 to be done at all once either. 25 1 COMMISSIONER LETZ: Probably be easier from 2 an equipment standpoint to get a dumpster and pack it in 3 there and get the material out of there. 4 MR. KING: Do y'all have a track hoe? 5 COMMISSIONER LETZ: Yeah. 6 MR. McKENZIE: Yeah, they do. Part of it 7 is, Commissioner, the two metal buildings could be taken 8 apart and salvaged, that metal across the road over 9 here, now, if you wanted to. Now the wooden building 10 is just trash. 11 COMMISSIONER LETZ: When we did the AG 12 barn -- 13 MR. KING: Did y'all tear that down? 14 COMMISSIONER LETZ: Yeah. And actually we 15 almost paid for -- of course metal prices were a lot 16 higher then, we almost paid for the rental of the 17 equipment we had to use in bigger equipment than we had, 18 and the hauling, paid for by the salvage. It was 19 almost -- took a lot of time, and there's a huge slab on 20 that one. 21 MR. LIVERMORE: Well, I think we oughta 22 explore those options before and might save a lot of 23 money. 24 MR. KING: I agree. We should think outside 25 the box and get a competition between the City and the 26 1 County, and get like the Mayor, and the County Judge -- 2 MR. LIVERMORE: The County Commissioners. 3 MR. KING: -- and a track hoe, and they 4 could compete on tearing things up. I don't know 5 just -- 6 MR. LIVERMORE: Roller derby. 7 COMMISSIONER LETZ: Add some spice to it. 8 MR. KING: Add a little spice to it, and 9 lighten the whole mood of everything, and I think tear 10 something up. I don't know, there's got to be some way 11 we can use our current assets to tear something up. It 12 just doesn't -- it seems like we could at least get the 13 operation started. So let's look into that, let's talk 14 to the City and the County. I think I want the City and 15 the County to both participate if we're going to do it. 16 I'd rather not just go with the County. 17 MR. LIVERMORE: But we shouldn't allow this 18 to just linger and linger. Because it's really a 19 liability. 20 MR. KING: I agree. Well, Bruce and I 21 talked about it, if you get rid of the wings and that 22 building, and that building if they're ever going to put 23 a Museum over there, that was in the same place, wasn't 24 it, Bruce? 25 MR. McKENZIE: Yes, Sir. 27 1 MR. KING: That's where they want to put a 2 museum. But even it does have a marketability of that 3 one building, as far as renting it and everything, if 4 you get rid of those two wings, it really opens that up 5 and turns that into just a hangar with a nice ramp area 6 in front of it, and not all this collateral damage 7 around it. So it does help the -- it helps the airport 8 in the ability, I think, to gain some more revenue off 9 another hangar of there's. It's really a good hangar, 10 too. 11 MR. McKENZIE: It's a great hangar. 12 MR. KING: It's a great hangar, okay. Let's 13 explore that. Bruce, you explore that a little bit, 14 okay. 15 MR. McKENZIE: Yes, Sir. 16 MR. KING: Okay. Item -- update on building 17 19, paint hangar. 18 MR. McKENZIE: All right. At the last 19 meeting you asked me to explore putting bi fold doors on 20 that structure. I got one local contractor who is a 21 very reputable contractor, I got a local structural 22 engineer to look at it, that's two. And then I got one 23 of the Premier Hangar Door people in Texas to come look 24 at it and they're out of San Antonio. And all three of 25 those gentleman told me almost the same thing on three 28 1 different days, it'll cost at least 50 thousand dollars 2 a door to put bi fold doors over there to make a long 3 story short. Structurally it's not sound enough. 4 You'll have to put a let of steel in it, up. Kirk's 5 looked at it several times with me and Kirk told me the 6 same thing. 7 MR. LIVERMORE: Do the current doors work? 8 MR. McKENZIE: Yes, Sir. They work. 9 MR. LIVERMORE: Efficiently. 10 MR. McKENZIE: They work fine. We need to 11 lubricate those steel wheels on the bottom perhaps. 12 Just rip off some of that rubberized edging, 13 aesthetically fix it up, but my -- 14 MR. LIVERMORE: How heavy are the doors to 15 open. 16 MR. KING: Not much? 17 MR. LIVERMORE: Does it take a lot of 18 physical effort -- 19 COMMISSIONER LETZ: My youngest son can do 20 it. My ten-year old boy can do it. 21 MR. LIVERMORE: He moved them. 22 COMMISSIONER LETZ: Yes. 23 MR. GRIFFIN: The doors on those are easier 24 to move than on my hangar. 25 MR. LIVERMORE: Sounds like a complaint 29 1 coming. 2 MR. KING: You can push them with one hand 3 and open. It's amazing they still roll and they haven't 4 had any lubricant in 20 years. 5 MR. McKENZIE: With that being said, my 6 recommendation is let's leave the doors alone, we can 7 fix the bathroom. We just need one toilet over there 8 and one lavatory. There's two big bathrooms over there, 9 we don't need that. What we need to do is get a road 10 built in there, and get the paving done around it, and 11 minimally, let's for example we could probably take 20 12 thousand dollars, and that's a high number and fix that 13 building up. 14 MR. LIVERMORE: What would it cost and maybe 15 this is part of your plan, what would it cost to paint, 16 to spray paint those walls in there just to make them -- 17 MR. McKENZIE: Inside or -- 18 MR. LIVERMORE: Yes, Sir, interior. 19 MR. McKENZIE: I think exterior is going to 20 cost you 50 thousand dollars to paint that building. 21 But 40 to 50 that's what I was told. I'm not a painting 22 contractor, but they say that's expensive. I don't know 23 about inside. Ed, inside they're fine, it's a hangar. 24 The other thing is we can kill all the 25 electrical in that building except for two lights in 30 1 each hangar bay. Kirk and I walked around and looked at 2 it and said we just need two lights in each one of 3 these. It's got explosion proof lights everywhere. We 4 just shut the power back and have two lights. 5 MR. WOOD: Well, you need a couple 6 receptacles. 7 MR. McKENZIE: And a little bit of 8 electrical. Electrical is antiquated over there, it is 9 bad. 10 MR. WOOD: Refresh my memory, but just going 11 to leave those lifts? 12 MR. McKENZIE: No, Sir. We'll unbolt them 13 and take the lifts off. But we're not going to take the 14 piston out. The minute you pull that piston you got an 15 environmental nightmare, because there's a reservoir 16 down there. 17 MR. WOOD: So somebody's looked at it and 18 those things can be unbolted? 19 MR. McKENZIE: Well, I've looked at it, and 20 Steve looked at it, and Kirk looked it, and we all 21 decided we can unbolt them. 22 MR. GRIFFIN: And in talking to the guys 23 also at Mooney, we think we can unbolt them and then at 24 a minimum bolt a plate over the top of them. 25 MR. KING: And just bolt a plate over the 31 1 top of it. 2 MR. WOOD: And not too big of a cost to get 3 those out of there, because I don't think anybody with 4 an airplane would want those things there. 5 MR. McKENZIE: You just need a big impact 6 wrench to get them off. But that's the long and the 7 short of it. The doors are out of the question. If we 8 want to move forward the next thing that would need to 9 happen is to get the our owners to see if they would 10 participate with us in doing the paving and building 11 that road. That's the next logical step before we do 12 anything to that building, let's get a road in there. 13 MR. LIVERMORE: How do we -- how do we ask 14 that question? 15 COMMISSIONER LETZ: Didn't you already talk 16 to Len about that, or did you talk to Len about 17 something else the other day? 18 MR. McKENZIE: We talked to him, Jonathan, 19 about this paving we're going to start in two weeks over 20 at Mooney. Now, I've taken Charlie over there and 21 looked at it in the pickup, just drove, and Charlie's 22 got an idea, but we didn't pursue it past that. 23 MR. KING: Well, what I think we oughta do 24 let's get the numbers together, we have the numbers 25 together -- 32 1 MR. McKENZIE: We've got the numbers right 2 here. 3 MR. KING: Let's get a presentation together 4 and get it on the agenda of the City and the County. 5 And I'll take it with you to the City and the County and 6 we'll propose basically to pay for the materials out of 7 our funds, and if they will provide the equipment to do 8 the work, basically do the labor on it, do the labor on 9 it. 10 MR. McKENZIE: Labor and equipment. 11 MR. KING: And the City can build -- the 12 County can build the road and chip seal that, and the 13 City can do the work on the apron and the little 14 taxiway, and use their hot -- 15 MR. McKENZIE: They have a laydown machine. 16 MR. KING: Their laydown machine for that. 17 And so it will be about equal -- 18 MR. McKENZIE: That's my plan. 19 MR. KING: Equal contributions from both 20 parties. 21 MR. WOOD: And I'd like to add, that doing 22 that work, it would apply to opening up the west side of 23 the airport, not just being hangar 19. 24 MR. KING: That's a great -- I think in the 25 long run it's going to be something that we look at five 33 1 years from now and say boy why didn't we do this sooner, 2 why didn't we do this sooner. Because the only flat 3 ground left on this airport is over there. I mean it's 4 about the most logical place to build stuff. And it has 5 access from another road over there. And I mean it's -- 6 it worked perfectly with private T-hangars and private 7 hangars and stuff like that, you know. 8 Then the next -- down the road we could get 9 a taxiway built the length of the runway. And I mean we 10 would open up a lot of acreage over there that has low 11 building cost, very, very low construction cost as far 12 as the site. 13 COMMISSIONER LETZ: Bruce, when you're 14 talking with the County on the road, I would ask them to 15 engineer it or material wise to make it a much bigger 16 than not to have cars driving on it so you have it built 17 for trucks down the road and bigger equipment. 18 MR. McKENZIE: You mean weight grain 19 capacity, is that what you're referring to? 20 COMMISSIONER LETZ: Yeah, thicker based. 21 MR. KING: Yeah. If we do build anything in 22 there, I agree. 23 COMMISSIONER LETZ: So that we don't have to 24 tear up a road that's pretty new and -- 25 MR. KING: Great idea, good idea. 34 1 MR. McKENZIE: Certainly, yeah. Charlie's 2 the man to talk to about that. So would it be 3 appropriate to make this presentation in the budget at 4 the same time, so we can do this sometime toward the end 5 of April. You okay with that, Steve? 6 MR. KING: Yeah, I'd be fine with that. 7 MR. McKENZIE: So when you're here we can 8 make sure -- 9 MR. KING: Yeah, I don't have any problem 10 with that. Okay. So if you'll just get that together. 11 MR. McKENZIE: Yes, Sir. 12 MR. KING: We've all looked the numbers 13 already, of the Board, and we looked at the numbers and 14 kind of agreed with that. Don't you, Kirk? 15 MR. GRIFFIN: Yeah. 16 MR. KING: So item 4D and 4E, we're going to 17 visit with that in -- we need to visit about that in 18 executive session. And then we'll come out of there and 19 have any discussions about both of those. We won't make 20 any decisions in executive session. 21 But one of them is economic development on 22 the airport, is going to be discussed, and the other one 23 is a possible lease of a building, over the old BA 24 Products hangar, and I don't think it's necessary to 25 discuss that in open session completely. There's a 35 1 couple items that we need to discuss in executive 2 session. 3 MR. LIVERMORE: You need a motion to 4 remove -- 5 MR. McKENZIE: May I give you the general 6 update before we do that? 7 MR. KING: Oh, sure. 8 MR. McKENZIE: I've got two things. This is 9 a situation at this time of the year where I'm in 10 trouble when I do and I'm in trouble when I don't, but 11 we're going to start mowing this airport this week 12 before the wild flowers come up, and then I'm not mowing 13 it again until there's no more, if the grass gets to be 14 three feet tall. You know, and that's why we're going 15 to try to mow it this week. He said that he could start 16 before Easter, which is this week. And let's get it 17 mowed the first time, and then we'll just let the wild 18 flowers run their course and then we'll start our mowing 19 cycles regularly. But I need to get one time covered, 20 because it's already significantly higher than it used 21 to be in several places. 22 The other one is we're going to -- 23 MR. LIVERMORE: And the big reason just to 24 have it in the record that you need to go ahead with 25 that is that higher grass attracts animals -- 36 1 MR. McKENZIE: Yes, Sir. 2 MR. LIVERMORE: -- which like to lodge in 3 that environment, and that creates a safety issue on the 4 runways. 5 MR. McKENZIE: Correct, thank you. The 6 second issue is as I mentioned previously, is we are 7 scheduled to begin the small -- well it's not a small, 8 the smaller paving project over at Mooney, and Charlie 9 Hastings is -- and I have worked this out, and he should 10 be able to move in there the first week of April, and 11 we'll begin the demolition of the old asphalt, and 12 City's going to pave it, we've already got it pretty 13 well scheduled. Just so you guys will know. That's all 14 I've got on the update. 15 MR. KING: And we want to thank the County 16 for participating. 17 MR. McKENZIE: Absolutely. 18 MR. KING: They're saving the tax payers a 19 lot of money by using existing equipment, existing 20 labor. 21 MR. McKENZIE: Absolutely. 22 MR. KING: Any other thing, any other 23 updates? 24 MR. McKENZIE: That's it. 25 MR. KING: Okay. So we'll -- do we need a 37 1 motion for that or we just move into -- 2 MR. LIVERMORE: I think you just move in. 3 It seems like what we've done. 4 MR. McKENZIE: Stop this meeting and go into 5 executive. 6 MR. KING: So we're going to move item 4D 7 under executive session, under 551.087 and 551.072. And 8 under 4E we're going to go under 551.087 and 551.072, 9 and we'll make no decisions or no action in those 10 executive session, we'll come back into regular session 11 and take care of that. 12 So we'll recess the meeting, and go into 13 executive session, at 9:57. 14 (Executive Session was had.) 15 MR. KING: Okay. So we came out of the 16 executive session at 10:43, and we'll go back into 17 regular session at 10:44. 18 We discussed items 4D and 4E in executive 19 session, no action was taken, because it's not allowed. 20 And on item 4D, possible lease of a building at Airport 21 Loop. We received a -- Bruce received a proposal 22 from -- an unsolicited proposal from Flyin Diesel 23 Performance & Offroad LLC, to lease our BA Product's 24 hangar/Alamo Community College hangar, I guess we'll 25 call it, the Alamo Community College. The lease on that 38 1 is not up until when? 2 MR. McKENZIE: July. 3 MR. KING: The lease is not up until July on 4 that with Alamo Community College. We had an 5 unsolicited offer to lease it to Flyin Diesel who is our 6 neighbor next door to that hangar, and they're wanting 7 to expand their operations and move over there. And I 8 think Mr. Dunagan's here, Ross. 9 MR. DUNAGAN: Yes, Sir. 10 MR. KING: What we to want do on this is 11 keep your proposal. But we feel like A: The airport 12 board's not looked at that hangar. Nobody's looked at 13 the hangar because Alamo Community College has the 14 hangar for the last three years, and basically they were 15 a tenant so we weren't barging in on their operations. I 16 looked at it a couple weeks ago just by accident by 17 driving by it and saw it was open. But the Board would 18 like to go over and look at the hangar and first of all 19 evaluate what we have, to see it, okay. And then I 20 think -- I think we probably need to look at -- we need 21 to do our due diligence on that part of it, look at the 22 hangar and then we need to see what you are proposing to 23 lease, and for the amount, and then I think we need to 24 probably, I don't know, how do you say this? 25 MR. McKENZIE: We need about 30 days. 39 1 Mr. King: We need about 30 days to evaluate 2 whether we can -- 3 MR. WOOD: We have an obligation to our 4 owners to get best return on the building. 5 MR. KING: To be sure that we're doing the 6 right thing with leasing to you without anyone else in 7 the community knowing the property is even available for 8 lease. Because it's not really -- we've just found out 9 in the last 30 days that we were going to go ahead and 10 take the hangar back, and we're not going to renew the 11 other lease from Alamo Community College, so it's kind 12 of just all come up. So while we appreciate your offer 13 right now, I think we need 30 days, and I'll limit it to 14 30 days. If you could just give us -- and anyway the 15 lease is not up until July anyway. So if you could just 16 give us 30 days to evaluate what we have here, and 17 what -- how your proposal relates to what we have, and 18 and be sure we're not stepping on any toes with our 19 owners as far as just making a deal unsolicited. Can 20 you do that for us? 21 MR. DUNAGAN: Yes. 22 MR. KING: I appreciate your offer on the 23 deal and we'll try to get back with you within the 30 24 day period. 25 And so item 4E, we are going to -- we're 40 1 just discussing economic development on the airport as 2 it relates to the minimum standards, and than what we 3 have currently written at our airport, and so what we're 4 going to do is we've instructed our attorney to look at 5 those minimum standards. They haven't been reviewed 6 since they were put together. And to look at them 7 overall as it relates to different things, working on 8 aircraft, your own people working on aircraft, bringing 9 people in on the airport to work on aircraft and stuff 10 like that. And all pretty much of an overview of the 11 minimum standards. Let him look at it. 12 Then we're going to propose a workshop down 13 the road on the minimum standards to look at them and 14 see whether they need to be changed or modified or 15 anything since its been a long time -- since they were 16 written, I don't think they've even been looked at. So 17 we're not -- the only action we're taking on that item 18 is instructing our attorney to look at it, because he's 19 never read them. Let him read them, get some legal 20 advice on that. And then have a workshop on the minimum 21 standards to kind of review, to be sure we're not 22 missing out on anything as far as development goes and 23 also so we're not -- to be sure we're not discriminating 24 against anyone. Okay. 25 All right, those are the only items we have. 41 1 MR. LIVERMORE: Mr. Chairman, I move we 2 adjourn. 3 MR. KING: A motion was made. Seconded -- 4 MR. WOOD: I second it. 5 MR. KING: And all in favor. Four zero. 6 Thank y'all very much. 7 * * * * * * 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 42 1 STATE OF TEXAS * 2 COUNTY OF KERR * 3 I, DEBRA ELLEN GIFFORD, the Official 4 Certified Shorthand Reporter in and for the Kerr County 5 Commissioners' Court, do hereby certify that the above 6 and foregoing pages contain and comprise a true and 7 correct transcription of the proceedings had in the 8 above-entitled Regular Airport Meeting. 9 Dated this the 4th day of April, A.D. 2016. 10 11 /s/DEBRA ELLEN GIFFORD Certified Shorthand Reporter 12 No. 953 Expiration Date 12/31/2016 13 * * * * * * 14 15 16 17 18 19 20 21 22 23 24 25