1 2 3 4 KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 5 Special Meeting 6 Monday, January 9, 2014 7 8:30 a.m. 8 Airport Terminal Conference Room 9 1877 Airport Loop Road 10 Kerrville, Texas 11 12 MEMBERS PRESENT: MEMBERS ABSENT: 13 Stephen King, President Corey Walters, Vice-President 14 Ed Livermore Bill Wood 15 Kirk Griffin 16 AIRPORT BOARD STAFF PRESENT: 17 Bruce McKenzie, Airport Manager Carole Dungan, Executive Assistant 18 19 COUNTY STAFF PRESENT: Tom Moser, Commissioner Pct. 2 20 Jonathan Letz, Commissioner Pct. 3 Jeannie Hargis, Auditor 21 James Robles, Assistant Auditor 22 CITY STAFF PRESENT: 23 24 VISITORS: Charlie Thomas, L.D. Brinkman 25 Jonas Titas, KEDC 2 1 I N D E X January 9, 2014 2 PAGE 3 CALLED TO ORDER 4 1. VISITORS FORUM 3 5 2. DISCUSSION AND POSSIBLE ACTION 6 2B Mooney International Lease Agreement (Executive Session as needed) 8 7 2A Brinkman Hangar – Discussion, Negotiation and 8 Possible Execution of New Lease Agreement (Executive Session as needed) 11 9 3. ADJOURNMENT 13 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1-9-2014 Airport Board 3 1 On Monday, January 9, 2014, 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 will call this meeting to 8 order of -- special meeting of the Kerrville/Kerr County 9 Joint Airport Board, January 9th, 2014. Visitor's Forum. At 10 this time, any person with business not scheduled on the 11 agenda may speak to the Airport Board. No deliberation or 12 action may be taken on these items because the Open Meetings 13 Act requires an item be posted for 72 hours before the 14 meeting. Visitors are asked to limit their presentations to 15 three minutes. Anybody have anything? 16 MR. THOMAS: I do. 17 MR. KING: Charlie? Mr. Charlie Thomas. 18 MR. THOMAS: I got a surprise visit from our 19 insurance company yesterday. 20 MR. LIVERMORE: From who? 21 MR. THOMAS: Our insurance company. And they were 22 -- just showed up here at the airport wanting to take 23 pictures of the hangar. And so I told them, I said, "Well, 24 I'm not exactly sure why you need those." And they said, 25 "Well, no, it's in your policy." I said, "Well, I'm not sure 1-9-2014 Airport Board 4 1 exactly what -- what our provisions are." I said, "You know, 2 we're occupying space under the -- under the holdover 3 provisions of our lease, but the airport or the City or the 4 County, whoever it is, took possession of the hangar December 5 -- or January 1, and is in charge of all that. So, really, 6 all I would like is some -- maybe some clarification as to 7 what kind of coverage I'm supposed to be -- commercial 8 aviation is supposed to be providing. Currently, under our 9 holdover provisions, our renting or whatever, I'm not exactly 10 sure exactly -- you know, he asked me, and I said, you know, 11 I'm not really sure. So, is there a way I could get some 12 clarification on that, just so I know what we're supposed to 13 be doing? 14 MS. BAILEY: I think I can answer that. Since you 15 are holding over under that -- that lease, I think the terms 16 of that lease continue, so whatever insurance you were 17 required to do previously, you have to continue to do. I 18 guess the only issue is that you probably have to do it as a 19 month-to-month policy instead of buying it for a year. Or I 20 guess you could pay it for however long and then cancel it 21 when you get out. 22 MR. THOMAS: If that's the case, are we still -- 23 are we still leasing the entire hangar? 24 MS. BAILEY: Under the holdover provision, I think, 25 yeah, it's still -- it's -- 1-9-2014 Airport Board 5 1 MR. THOMAS: So I need insurance on the entire 2 hangar? 3 MS. BAILEY: Yes. I think so, yeah. 4 MR. THOMAS: Are we still responsible, then, for 5 all the utilities and everything else? 6 MR. McKENZIE: I'm taking the utilities out of your 7 name -- I took the utilities out of your name. 8 MS. BAILEY: We took the utilities -- 9 MR. McKENZIE: I've done that. 1st of January, I 10 took all the utilities out of your name. 11 MR. THOMAS: Well, that's what I thought, but I 12 also thought you said y'all were taking over the hangar 13 effective January 1. 14 MR. McKENZIE: The verbiage -- we're taking it 15 over, but it's a holdover policy. But we took -- we're 16 trying to make it as easy on everybody as we can, 'cause this 17 is a convoluted process. We wanted to take that 18 responsibility away from y'all. You're responsible for the 19 security still, -- 20 MR. THOMAS: Right. 21 MR. McKENZIE: -- if you want to keep the security, 22 and that's fine, till we get these new folks signed up. And 23 then -- but the insurance -- 24 MS. BAILEY: I think we have to insure the 25 building, but they have to insure the liability. 1-9-2014 Airport Board 6 1 MR. THOMAS: That's what I was thinking. That's 2 what I'm wondering. Am I responsible for the building? Or 3 -- or, obviously, we're going to have to have liability 4 insurance. 5 MR. KING: Kirk, you can't talk -- we can't speak 6 on this. 7 MR. McKENZIE: The liability's on us. 8 MS. BAILEY: Well, not liability, but the premises 9 insurance, the fire. 10 MR. McKENZIE: Right. 11 MS. BAILEY: Extended coverage, all that, is our 12 responsibility. So, you just -- you have to keep the 13 liability. 14 MR. THOMAS: Okay. 15 MS. BAILEY: General liability and that sort of 16 stuff. 17 MR. THOMAS: And not the maintenance or anything 18 else? 19 MR. McKENZIE: No, we're -- that part of it's ours, 20 Charlie. 21 MR. THOMAS: Okay. I just wanted to be clear. 22 MR. McKENZIE: No, no. 23 MR. THOMAS: 'Cause I want to make sure that we're 24 upholding whatever responsibilities we're supposed to be 25 doing. 1-9-2014 Airport Board 7 1 MR. McKENZIE: We appreciate that, but we -- the 2 lights and whatever else, that's -- 3 MR. THOMAS: Okay. 4 MR. McKENZIE: -- that's ours. 5 MS. BAILEY: If the lights go out, we have to fix 6 it. It's ours. 7 MR. THOMAS: Great. Okay. Well, that clarified 8 it. 9 MR. McKENZIE: Work for you? 10 MR. THOMAS: Yep, that's what I need to know. 11 MR. KING: Okay? 12 MR. McKENZIE: Yes, sir. 13 MR. KING: Anybody else have anything? Okay. I 14 would like to say that, you know, we had the passing of Judge 15 Tinley. We don't have our other forum here, but we had the 16 passing of Judge Tinley, and I think we all should, you know, 17 hold his family in our prayers. And he was a great friend to 18 the airport and did a lot for us, and he really was a good 19 guy just to go talk to about things, and we really -- we're 20 going to miss him. And also, Tom -- Tom's wife has passed 21 yesterday, and we -- we hold you guys in our prayers and 22 stuff, Tom. Anything y'all need, let us know, okay? All 23 right. 24 MR. WOOD: I think that Judge Tinley's funeral is 25 going to be Tuesday? Tuesday, at the Methodist Church, I 1-9-2014 Airport Board 8 1 think. 2 MR. KING: Okay. 3 MR. WOOD: I was talking to the pastor, and that's 4 what he told me. 5 MR. WALTERS: Do you know what time? 6 MR. WOOD: Not yet. 7 COMMISSIONER MOSER: Nelwyn's funeral is Saturday 8 at 2:00. 9 MR. KING: Saturday, okay. 10 MR. WALTERS: Where? At where? 11 COMMISSIONER MOSER: Methodist Church. 12 MR. McKENZIE: Saturday, 2 o'clock. 13 MR. KING: Okay. Let's skip to Item 2B, to the 14 Mooney -- Mooney lease agreement. Does anybody on the board 15 have any reason we need to take this in executive session to 16 discuss anything on this deal? 17 MR. WALTERS: I do. 18 MR. KING: You do? Okay. There's been some 19 questions from various agencies, various parts of our 20 government that have been delivered to me in the past few 21 days, and I just want to make it clear that the Airport Board 22 is -- is -- we're not taking any action on this -- on this 23 lease. That we have -- it is our duty as the Airport Board, 24 in the interlocal agreement, to come up with all leases for 25 tenants of the airport. However, we are -- we do understand 1-9-2014 Airport Board 9 1 that this lease has some special considerations that the City 2 and the County are probably going to talk -- to be in 3 negotiations with Mooney about. We still will hold our -- 4 our duty to come up with a base lease for the property, and 5 -- and some sort of rent, and all the policies that are 6 involved in that lease and all the -- the things that, you 7 know, they will be -- since we are -- you know, we will be 8 their landlord. So, we will -- we have come up with that, 9 and we do have a couple leases that we've looked at a couple 10 of times with their attorney. But I want to make it clear, 11 we're not taking any action on that lease until the County 12 and the City have the time to put forth their input on the 13 lease, and I'm sure they're going to have some things they 14 would like to add to the lease. Not necessarily change to 15 the lease, but add to it. So, is that okay with the Airport 16 Board? 17 MR. LIVERMORE: Absolutely. 18 MR. WOOD: Yeah. 19 MR. KING: I just wanted to make that clear so 20 everyone is straight on that. Okay. 21 MR. McKENZIE: Steve? And Jonas is here, if he 22 wants to make my comments. He's been involved on this, too, 23 on the city and the development end of it. If you'd like to 24 comment, you can. If you don't want to -- 25 MR. TITAS: Sure. We're working with Mooney. 1-9-2014 Airport Board 10 1 We're working through a couple programs, whether it be local 2 and state, and we're going through -- there's various 3 processes and procedures along with each one of those. And 4 we are -- we're working through, but we don't have anything 5 definitive to report at this point, either. Obviously, they 6 have come and would like some public and state support, and 7 we're working to see what levels and forums might be 8 available, but not -- really nothing concrete. They haven't 9 really completed any formal application for any -- any local 10 incentives at this point. 11 MR. KING: And did you get a copy of the lease? 12 MR. TITAS: I did. I did, thank you. 13 MR. KING: You've got a copy, and we're going to 14 forward a copy to the City Manager and to whoever else. 15 COMMISSIONER MOSER: Jonathan. 16 MR. KING: Jonathan and Tom so that they have a 17 copy of that, so they can use that to see where we've 18 actually gone with this thing. 19 MS. BAILEY: I have one that's got a couple more 20 changes that I'll forward. It's just more recent than this 21 one. 22 MR. McKENZIE: As soon as I get it. 23 MR. WOOD: Just as a point of interest, I take all 24 these aviation magazine subscriptions, and on the internet, 25 one of them showed an interview at Kerrville at Mooney with a 1-9-2014 Airport Board 11 1 bunch of cars parked out there, and it showed a bunch of 2 airplanes, you know, that are in various stages of completion 3 inside the building. And their -- according to the article, 4 their intention is to get started working on those airplanes. 5 So, it looks like, you know, as far as that article went -- 6 which, you know -- 7 COMMISSIONER MOSER: I think Steve summed it up 8 very well. 9 MR. KING: Okay. All right. Anyway, that's where 10 we're at on that. If anyone has any questions, they can 11 address that to me, the County, or the City. Okay. On Item 12 2A, the Brinkman hangar, discussion and possible action, 13 anybody -- I may go back to 2B. Did I understand you wanted 14 to talk about something in executive session on that? 15 MR. WALTERS: I do. 16 MR. KING: Okay, then we will take that in 17 executive session. Under the Brinkman hangar, discussion and 18 possible action, what do you want to do on that? 19 MR. LIVERMORE: Executive session. 20 MR. KING: Okay. Well, then I guess we'll move 21 into executive session under Item 2A and 2B, and discuss that 22 -- discuss those two items under Sections 551.071 and 551.072 23 and 551.087 under both -- both topics. Does anybody in the 24 audience have anything they'd like to throw out there on any 25 one of those items before we do that? There are a lot of 1-9-2014 Airport Board 12 1 people here. I don't think y'all came here -- 2 MR. LIVERMORE: To shoot marbles. 3 MR. KING: -- to get coffee or something. Nobody? 4 Okay. Nothing being heard, then we'll adjourn -- recess? 5 We'll recess, and -- for about three minutes, and then go 6 into executive session. 7 (Airport Board meeting recessed at 8:50 a.m., and an executive session was held off the record.) 8 - - - - - - - - - - 9 MR. KING: We went into executive session at 8:50 10 -- 8:50 a.m., and we came out at 9:50 -- 9:50, back into 11 regular session. And on Item 2B, the Mooney lease, we did 12 not take any action. On Item 2A, the Brinkman hangar, we are 13 going to continue to negotiate and try to get an acceptable 14 lease for both parties on that with Mr. Solomon, and we will 15 report back when we have that. That's it? 16 MR. McKENZIE: And we're going to have a special 17 called board meeting Monday morning at 8:30 to talk about the 18 T-hangars. 19 MR. KING: T-hangars. And there will be a special 20 meeting Monday -- at what time? 21 MR. McKENZIE: 8:30, for the T-hangars, to talk 22 about that. You can't be here, can you? That's okay. No, 23 I'm talking to her. 24 MR. LIVERMORE: Oh. 25 MR. McKENZIE: We'll just write it down. We'll 1-9-2014 Airport Board 13 1 take care of it. It won't last long. 2 MR. KING: Won't last long. Okay. Motion to 3 adjourn? 4 MR. LIVERMORE: So moved. 5 MR. WALTERS: Second. 6 MR. KING: Second by Mr. Walters. All in favor? 7 (The motion carried by unanimous vote, 5-0.) 8 MR. KING: Okay, thanks. 9 MR. WALTERS: Thank you very much. 10 (Airport Board meeting adjourned at 9:53 a.m.) 11 - - - - - - - - - - 12 13 STATE OF TEXAS | 14 COUNTY OF KERR | 15 I, Kathy Banik, official reporter for Kerr County, 16 Texas, do hereby certify that the above and foregoing is a 17 true and complete transcription of my stenotype notes taken 18 at the time and place heretofore set forth. 19 DATED at Kerrville, Texas, this 9th day of January, 20 2014. 21 _______________________________ Kathy Banik, Texas CSR # 6483 22 Expiration Date: 12/31/14 Official Court Reporter 23 Kerr County, Texas 700 Main Street 24 Kerrville, Texas 78028 Phone: 830-792-2295 25 1-9-2014 Airport Board