1 2 3 4 KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 5 Regular Meeting 6 Monday, May 19, 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 Ed Livermore Corey Walters, Vice-President 14 Bill Wood Kirk Griffin 15 16 AIRPORT BOARD STAFF PRESENT: Bruce McKenzie, Airport Manager 17 Carole Dungan, Executive Assistant 18 COUNTY STAFF PRESENT: 19 Tom Moser, Commissioner Pct. 2 Jeannie Hargis, Auditor 20 James Robles, Assistant Auditor 21 CITY STAFF PRESENT: 22 Jack Pratt, Mayor Sandra Yarbrough, Finance Director 23 Justin MacDonald, Councilperson 24 VISITORS: 25 Granger MacDonald Mark Armstrong 2 1 I N D E X May 19, 2014 2 PAGE CALLED TO ORDER 3 1. VISITORS FORUM 3 4 2. KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 5 MEMBER FORUM 3 6 3. CONSENT AGENDA 3A Approval of April 21, 2014 board meeting minutes 5 7 4. DISCUSSION AND POSSIBLE ACTION 8 4A Monthly financials 5 9 4B Board member recommendations for additional terms, Corey Walters, Bill Wood, & Kirk Griffin 14 10 4C Letter to TexDOT Aviation for Runway 3/21 11 reconstruction 15 12 4E Brown Hangar lease 24 13 4F Amend FY 2014 budget "Recommendation for Allocation of Reserve" 30 14 4G Mooney International roof maintenance and 15 structural issues 43 16 4H Primero Engineering report 59 17 5. INFORMATION AND DISCUSSION: 5A General Update 65 18 5B Solar taxiway lighting 65 19 5C Fly-In results 71 20 5D New T-hangars schedule/leasing 71 21 5E Monthly fuel flowage spreadsheet 75 22 6. EXECUTIVE SESSION 23 4D Gemini Aviation update (Executive session) 77 24 7. ADJOURNMENT 78 25 3 1 On Monday, May 19, 2014, at 8:30 a.m., a regular 2 meeting of the Kerrville-Kerr County Joint Airport Board was 3 held in the Airport Terminal Conference Room, Louis Schreiner 4 Field, Kerrville, Texas, and the following proceedings were 5 had in open session: 6 P R O C E E D I N G S 7 MR. KING: I'll call this meeting to order of the 8 Kerrville/Kerr County Joint Airport Board, May 19th at 8:30. 9 Call to order. Visitors forum. Any person with business not 10 scheduled on the agenda may speak. No deliberation or action 11 may be taken because the Open Meetings Act requires that it 12 be posted for 72 hours. Visitors are asked to limit their 13 presentations to three minutes. Anybody like to speak? 14 MR. MACDONALD: Why are you staring at me? 15 MR. KING: You look like the kind of guy that likes 16 to talk. 17 MR. MACDONALD: I don't ever say much, Steve. 18 MR. KING: Okay. All right, Item 2. 19 Kerrville/Kerr County Joint Airport Board member forum. At 20 this time, any member of the board may speak on an item 21 that's not on the agenda. No action may be taken because the 22 Open Meetings Act requires it to be posted for 72 hours. If 23 action is required, it will be placed on the agenda for a 24 future meeting. Anybody have anything? 25 MR. GRIFFIN: I'd just like to stay thanks to Bruce 4 1 and Carole and Joey and his staff for doing what they did to 2 host the fly-in, such it was. There was a lot of effort put 3 into it from those guys' standpoint, although we didn't have 4 much participation from the other side. So, thanks for doing 5 that. 6 MAYOR PRATT: What was the participation? 7 MR. GRIFFIN: Well -- 8 MR. McKENZIE: About 31 airplanes in during the 9 day. They were all gone by probably 4 o'clock that 10 afternoon, and then we had a hangar dance that night that 11 didn't -- 12 MAYOR PRATT: I was going to say, how many were at 13 the hangar dance? 14 MR. McKENZIE: 14. Didn't go too well. 15 MR. WOOD: Well, on the other hand, the Mooney 16 fly-in was a big success. 17 MR. GRIFFIN: It did well. 18 MR. McKENZIE: Very good. 19 MR. WOOD: And everybody worked hard on that. 20 MR. GRIFFIN: Part of the problem with the fly-in 21 was Mother's Day weekend, college graduation weekend. Every 22 state school and university was graduating Friday/Saturday. 23 MAYOR PRATT: They were almost on top of each 24 other. 25 MR. GRIFFIN: Yeah. Yeah. 5 1 MR. KING: And Hondo had a big fly-in. 2 MR. GRIFFIN: And then Hondo was this weekend, 3 so -- yeah. 4 MR. McKENZIE: Okay. Nobody else? Consent agenda. 5 Items on the consent agenda are considered routine by the 6 board and may be enacted in one motion. No discussion on 7 items unless the board or a citizen requests. Approval of 8 the -- Item 3A, approval of the May -- April 21st board 9 meeting minutes. 10 MR. GRIFFIN: I'll make a motion that we approve 11 them as written. 12 MR. KING: Second? 13 MR. WOOD: I'll second. 14 MR. KING: Second by Mr. Wood. Discussion? None 15 being heard, all in favor? 16 (The motion carried by unanimous vote, 4-0.) 17 MR. KING: Four-zero. Mr. Livermore is not in 18 attendance. Item 4, discussion and possible action. Monthly 19 financials, April '14. James? 20 MS. HARGIS: You're going to get Jeannie. 21 MR. KING: Oh, Jeannie. 22 MS. HARGIS: Okay. We were out of town when we 23 e-mailed these, so Page 1 is your balance sheet for Fund 47. 24 The total amount of cash and receivables, 426,414.88. And 25 then on Page 2 is your total liabilities and equity funds; 6 1 again, 426,414.88. Page 3 is your revenue. Total for the 2 month of April, 32,913.38. You're at 47.94 percent, so 3 you're a little bit lower there than you probably should be. 4 I think our contribution came over, but it was put into last 5 month, we noticed, so that may have caused it to be off. Our 6 Treasurer posted it in the wrong month. Page 4 is your 7 salary and benefits, 14,860.54. Page 5, personnel, supplies, 8 maintenance, professional services. Page 6 is the total of 9 all those, third column, 9,161.39. 10 COMMISSIONER MOSER: Page 6 is 93 percent; that's 11 pretty good. 12 MS. HARGIS: Mm-hmm. Page 7 is the supplies for 13 the terminal, that 9,465 -- excuse me, 1,139.53, for a total 14 expenditures year-to-date, 25,161.46. So, the expenditures 15 are way below what they would have been this time last year, 16 so that's really good. Which leaves you a revenue of 17 59,064.06. 18 COMMISSIONER MOSER: Jeannie, on Page 7, the 19 revenue over/under expenditures, is that -- that's just for 20 the terminal? The 108 percent? 21 MR. GRIFFIN: Yes. 22 MS. HARGIS: No, that's not just the terminal, 23 that's everything. 24 COMMISSIONER MOSER: Okay, that was my question. 25 So -- so, we're good. Okay, good. 7 1 MS. HARGIS: Page -- I mean, Fund 48, Page 8, cash 2 and liabilities, 105,310.14. Page 9, we basically had a 3 little bit of interest, which was 29 cents for the month for 4 the revenue. And -- and I don't -- Page 10 is missing in my 5 little packet there -- thanks. The total of $368.01, which 6 came out of the RAMP grant. And that's pretty much it for 7 the month, which leaves you a balance of $367.72. The reason 8 is we don't have any more RAMP grant coming in on that 9 project. So, as far as your reserves are concerned, the 460 10 that we showed on the first page, save and except any 11 expenditures you have for the remainder of the year, would be 12 your reserve. 13 MR. GRIFFIN: Jeannie, I know we're -- I know how 14 we're paying Robert Langford for our T-hangar project. I 15 mean, we're not really giving him the -- the State is -- 16 we're just the funnel to get -- 17 MS. HARGIS: No, actually, it's coming in to us. 18 MR. GRIFFIN: It does come to us? And we write -- 19 MS. HARGIS: Yes. 20 MR. McKENZIE: That's correct. 21 MR. GRIFFIN: Where is that showing up? 22 MS. HARGIS: Fund 48, which is on -- 23 MR. GRIFFIN: It's on Page 10. 24 MS. HARGIS: -- Page 10. 25 MR. GRIFFIN: Yeah. 8 1 MS. HARGIS: We haven't really had -- we have the 2 one invoice -- 3 MR. GRIFFIN: Right. 4 MS. HARGIS: -- for the 39, and that's all we've 5 had. So -- 6 MR. McKENZIE: Your second check should be in the 7 bank today from TexDOT. 8 MS. HARGIS: We don't issue the check until we get 9 it from TexDOT. 10 MR. GRIFFIN: Right, I understand. 11 MS. HARGIS: So it will show up in May. 12 MR. GRIFFIN: Okay. We're kind of in a -- we're 13 just playing catch-up. 14 MS. HARGIS: Yeah. Unfortunately, you got the lag 15 of it going to Austin -- 16 MR. GRIFFIN: And then back. 17 MS. HARGIS: And then us sending the check. It's 18 an automatic deposit into our account, and then we then turn 19 around and pay it out. 20 MR. GRIFFIN: The T-hangar improvements is our 21 T-hangar new build, and to-date, we've spent 39,5? 22 MS. HARGIS: Yes. 23 MR. KING: And do they approve the bills? We send 24 the bills to them? 25 MS. HARGIS: Yes. 9 1 MR. KING: They approve it, send the money to us, 2 and we distribute it? 3 MS. HARGIS: Yes. 4 MR. KING: Where's our money in this deal? 5 MR. GRIFFIN: That's kind of where I was going. 6 MR. KING: I never see our money. 7 MR. GRIFFIN: Are we the tail end? 8 MR. KING: We just pay all the releases of the 9 bills? 10 MS. HARGIS: Generally speaking, you use the grant 11 money first, then you use your money on the end. 12 MR. GRIFFIN: Okay. 13 MS. HARGIS: That's the general -- and it's a 14 reimbursable grant, because you may not need to use that much 15 of your money at the very end. It's 20 percent of what it 16 was, but it could come in less, could come in more. 17 MR. KING: So, what -- 18 MS. HARGIS: You know, some grants require that you 19 do it as you go along. This one doesn't, and when it doesn't 20 require it, then I don't pay it out. 21 MR. KING: Okay. So, what are the -- when that 22 time comes, where does that money come from? Out of reserve? 23 MS. HARGIS: It will have to come out of reserves. 24 MR. KING: We'll have to do a budget amendment? 25 MS. HARGIS: I think we already did. We set up a 10 1 transfer in our original budget for this. 2 MR. GRIFFIN: When we went to the City and the 3 County, we asked for that capability to transfer. 4 MR. KING: Okay. 5 MR. GRIFFIN: To pay our 10 percent out of our 6 reserve funds. 7 MAYOR PRATT: Yeah, that was approved several 8 months back. 9 MR. KING: Jeannie, what are our cash reserves 10 right now? Where -- what is that number? 11 MS. HARGIS: Well, your cash number's on Page 1. 12 I would have to add the revenue that you haven't received yet 13 and take the total expenditures. But right now in the bank, 14 you have 426,414. 15 MR. KING: But some of that's dedicated for -- 16 MS. HARGIS: Some of it's dedicated for the current 17 budget. 18 MR. KING: And for the -- how about the 19 liabilities, as far as severance and stuff like that? Isn't 20 that dedicated? 21 MS. HARGIS: The severance is on here. 22 COMMISSIONER MOSER: She's saying this is in as 23 part of the reserve. 24 MS. HARGIS: That is part of the reserve right now. 25 MR. KING: Right. What is the unencumbered part of 11 1 the reserve? 2 MS. HARGIS: Again, I would have to add -- 3 MR. KING: Ballpark. 4 MS. HARGIS: Ballpark? 5 MR. KING: Ballpark. 6 MS. HARGIS: Let me see. We have 221,000 left to 7 come in for revenue. 8 MR. KING: Mm-hmm. 9 MS. HARGIS: For my expenditures, that hangar 10 project is still in there. That's -- it's still in Fund 47. 11 MR. KING: So, the -- 12 MS. HARGIS: It should be about right, because you 13 should have about 200 and something thousand left to spend on 14 your expenditures, which would give 221 coming in, and 15 probably about 225 going out. That's total expenditures if 16 you spent all of your budget that you have left to spend. 17 MR. KING: Mm-hmm. 18 MS. HARGIS: So, really, that's pretty close to 19 what you have. Maybe 400. 20 MR. KING: Maybe that? Okay. Okay. 21 MS. HARGIS: I mean, that's just looking at it and 22 trying to add it in my head. 23 MR. KING: I got you. 24 MAYOR PRATT: Next month, will the -- will the 25 consultant -- the liability for the consultant show up? 12 1 MS. HARGIS: Not till -- if it's approved by both 2 the City and the County. 3 MR. KING: As soon as we hire him. 4 MR. GRIFFIN: It's already been approved. It's 5 just whether we hire him this month or next or whatever, so 6 yeah. 7 MS. HARGIS: There's an item on the agenda for them 8 to ask for that. 9 MAYOR PRATT: I understand. I don't know where 10 it's going to show up. 11 MS. HARGIS: Well, we'll put it under allocation 12 for consultants. We'll add it to that line item. 13 MR. KING: Right. Do we have to take that back to 14 the City and the County? I don't think I asked for that. 15 MR. McKENZIE: You have to take it back. 16 MR. KING: I don't think I asked -- I don't think, 17 at the County or the City meeting, I don't think I asked for 18 that. 19 MS. HARGIS: No, you have not. 20 MR. KING: I just think we gave an informational -- 21 MS. HARGIS: You just, I think -- 22 MR. KING: Informed them. 23 MS. HARGIS: Right. 24 MR. KING: Okay. 25 MS. HARGIS: I don't even know if you had to -- 13 1 when you delivered the budget, I'm not sure you even informed 2 them. I think the consultant -- I mean, both the reps know, 3 but -- 4 MAYOR PRATT: No, he did -- he did inform the City. 5 MR. KING: I informed the County also. 6 COUNCILMAN MACDONALD: Yes, you did tell us. 7 MR. KING: Okay. Thank you, Councilman. Are you 8 still a councilman? 9 COUNCILMAN MACDONALD: Till tomorrow. 10 MR. KING: Then you'll just be Justin. 11 MS. HARGIS: But at that time, I don't think you 12 really had a figure that you were requesting. 13 MR. KING: Okay. Okay. 14 MAYOR PRATT: He was just told by Todd to do a 15 budget amendment. 16 MR. KING: Right. 17 MAYOR PRATT: That's all. 18 MR. KING: Any more questions on these financials? 19 MS. HARGIS: But if you want a real strong number, 20 I'll e-mail -- 21 MR. KING: If you don't mind, 'cause I think we're 22 getting ready to take some money out of this. Looks like we 23 have some money we're trying to dedicate. I'd like to know 24 where we are before we -- 25 MS. HARGIS: Okay. 14 1 MR. KING: -- commit ourselves. Any questions on 2 the budget -- I mean on the financials? None being heard, 3 motion to approve? 4 MR. WOOD: I'll make a motion we approve the budget 5 as presented. 6 MR. KING: The financials as presented? 7 MR. WOOD: Financials. 8 MR. WALTERS: I second. 9 MR. KING: Mr. Walters seconds. Discussion? None 10 being heard, all in favor? 11 (The motion carried by unanimous vote, 4-0.) 12 MR. KING: Four-zero. Okay, that's monthly 13 financials. Item 4B, board member recommendations for 14 additional terms, Corey Walters, Bill Wood, and Kirk Griffin. 15 MR. McKENZIE: Steve, these three gentlemen have 16 agreed to serve another term on this board. I just need 17 direction from you to send a letter to the two owners, the 18 City of Kerrville and Kerr County, recommending that they be 19 accepted to serve another term on the board, just to make 20 this official. 21 MR. KING: All right. 22 MR. McKENZIE: I don't need a motion or anything. 23 I just need you to direct me to do it in a public setting. 24 MR. KING: You can do that if you want, if they're 25 really that fired up. (Laughter.) 15 1 MR. McKENZIE: No comment. 2 MR. GRIFFIN: He's not going to comment to that 3 part of it. 4 MR. KING: There's no undue force or anything 5 causing them to do that? 6 MR. McKENZIE: We'll send them a letter, then. 7 MR. KING: Okay, letter to TexDOT Aviation for 8 Runway 3/21 construction. 9 MR. McKENZIE: This is a reconstruction. 10 MR. KING: Reconstruction. 11 MR. McKENZIE: That runway is over 70 years old. 12 Runway 3/21 is the smaller runway. It runs in front of 13 Mooney. Not much has been done to that in 70 years. The 14 last seven years, I've done four things to it to try to keep 15 it together, and it's held together. Those of you that land 16 on it frequently know, but it's getting in a condition where 17 we're going to need to do something in the next coming years, 18 sooner rather than later. I had the good fortunate of having 19 two TexDOT Aviation airport planners on the airport last 20 month, Chris Monroe and Sandra Braden, and we visited the 21 site, and they both concurred with what I said, that we need 22 to put that on the list to be reconstructed, only 2,600 feet 23 of it. We reconstructed 1,000 feet of it in our big project, 24 so 1,000 feet of that runway is fine. It's just 2,600 feet 25 of it, to include 2,600 feet of the parallel taxiway, which 16 1 is Taxiway Foxtrot. Those -- we need to do that in concert 2 if we're -- if we're going to do this. All I'm asking 3 permission from this board is to send a letter to TexDOT and 4 get in the queue -- to just get in the queue to reconstruct 5 that runway, and that takes three years to get in the queue. 6 So at the end of 2017, we'll be there, and we can begin the 7 process of trying to reconstruct just that 2,600 feet of that 8 runway, and it's going to need it. And I want to go on 9 record as saying it needs -- it's going to need something -- 10 COMMISSIONER MOSER: Bruce, what is the -- 11 MR. McKENZIE: -- pretty quick. 12 COMMISSIONER MOSER: -- what's the cause? I know 13 we addressed that when we did the master plan. We said we 14 didn't need to do anything to the runways. 15 MR. McKENZIE: That's correct. 16 COMMISSIONER MOSER: Yeah, and we did that. So, 17 what is the degradation? 18 MR. McKENZIE: The degradation is lateral cracking. 19 It's getting very bad. I have slurry-sealed that runway, 20 Tom -- Commissioner, twice in the last seven years, and I've 21 crack-sealed it twice in the last two years, just to stop 22 that cracking best that we could. 23 COMMISSIONER MOSER: And keep it sealed. 24 MR. McKENZIE: The dry weather that we've had over 25 the last three years has not been conducive. It's starting 17 1 to heave, like the country will do a little bit, but it's 2 just -- it's 70 years old. 3 MR. TITAS: Is there a ballpark budget number for 4 that? 5 MR. McKENZIE: I didn't get into that, but I know 6 it's going to cost -- it's going to cost around a million 7 dollars to do that, I'm thinking. It's a 90/10 project. 8 COMMISSIONER MOSER: Is that what it is, 90/10? 9 So, what you want to do is just get in the queue? 10 MR. McKENZIE: Get in the queue. 11 COMMISSIONER MOSER: And in the meantime, do a 12 better evaluation? 13 MR. McKENZIE: And we can continue to evaluate it. 14 And as we move through that process, I also want to 15 reconstruct Taxiway Echo, which is the one that you see that 16 parallels this apron here. That taxiway needs to be 17 reconstructed. If we're going to do that, we might as well 18 do it right and do the one right here, and that is 1,100 feet 19 of Taxiway Echo right here. We need to put that in the queue 20 to do it now. Along with that, after three years, we will 21 have accrued another $450,000 of Non-primary Entitlement 22 Funds that we can put toward that, just like we did these 23 T-hangars. We have 450,000. So, it's all positive as far as 24 the funding mechanism goes. And I've talked to them about 25 it, and they concur that we need to get in the queue now. 18 1 MR. KING: For what? 2 MR. McKENZIE: The reconstruction of 2,600 feet of 3 3/21, 2,600 feet of Foxtrot, and 1,100 feet of Echo. 4 MR. KING: And I guess during that -- when they 5 look at it, they'll look at the value, basically, in 6 reconstructing that runway? 7 MR. McKENZIE: Oh, yeah, we'll get to that. It 8 will be a while, Steve; it's not going to happen too fast, 9 but as we move through the next couple of years. 10 MR. KING: How long is that runway now that they 11 shortened it? 12 MR. McKENZIE: 3,600 feet. It -- we lost 400 feet 13 from the construction. We had 4,000; now it's 3,600. 14 COMMISSIONER MOSER: So, in the meantime, let's 15 just say you get in the queue and you make an assessment. 16 Does TexDOT have the staff to help make an assessment of 17 integrity? 18 MR. McKENZIE: Sure. They'll -- 19 COMMISSIONER MOSER: And the necessity? 20 MR. McKENZIE: Yes, they will help us with that. 21 COMMISSIONER MOSER: Seventy years doesn't mean 22 anything to me. 23 MR. McKENZIE: It's just an old runway. 24 COMMISSIONER MOSER: Well, but that doesn't mean 25 anything to me either, okay? There are lots of things around 19 1 a lot older than 70 years. 2 MR. McKENZIE: I concur. 3 COMMISSIONER MOSER: Yeah. 4 MR. WALTERS: Bruce, do we get to use our N.P.E. 5 funds for our 10 percent? 6 MS. DUNGAN: Mm-hmm. 7 MR. McKENZIE: The 10 percent has to come from us. 8 The 450 will come off the top. Then if it gets down to 9 600,000, then we're just in for $60,000. 10 MR. WALTERS: Okay. 11 MAYOR PRATT: Now, Echo, is that included in that 12 million dollar figure you threw out there? 13 MR. McKENZIE: (Witness nodded.) 14 MAYOR PRATT: That included it? 15 MR. McKENZIE: This one right here, yes, sir. I'm 16 giving you round numbers, Mayor. 17 MAYOR PRATT: I understand, but I just want to 18 know, 'cause you said a million dollars, and then you added 19 Echo, so I'm just wondering. 20 MR. KING: Bruce, are you talking about resurfacing 21 Echo? 22 MR. McKENZIE: Reconstructing. 23 MR. GRIFFIN: Tearing it up, putting base down? 24 MR. McKENZIE: Base alignment, geo-grid, come back 25 and correctly -- 20 1 MR. GRIFFIN: Like we did the other stuff? 2 MR. KING: Yeah. 3 MR. McKENZIE: Now, we -- 4 MR. KING: You think we can also put in there maybe 5 a -- put a request for a turnoff so people don't have to taxi 6 all the way to Comfort to turn off? 7 MR. McKENZIE: We can certainly do that. 8 MR. KING: That's probably the most -- the most -- 9 MR. McKENZIE: Absolutely, we can do that. 10 MR. KING: -- the most -- 11 MR. WOOD: Irritating thing. 12 MR. KING: Not irritating. The most -- I'm asked 13 that question more than anything at this whole airport. 14 MR. McKENZIE: Me too. 15 MR. KING: Is when they're going to put a place 16 where they don't have to taxi to Comfort to turn off. 17 MR. McKENZIE: I understand. 18 MR. KING: I get that all the time. You wouldn't 19 believe how many times I've -- 20 MR. WOOD: When I said irritating, that was from a 21 pilot's perspective, not -- 22 MR. MACDONALD: It would add to the efficiency for 23 any traffic, to get people off faster. 24 MR. KING: Exactly. It would definitely add to the 25 efficiency. 21 1 MR. McKENZIE: We can queue that up as well, if 2 that's -- 3 MR. KING: To me, that's something that they really 4 messed up when they built this thing, redid all of that and 5 took it out, and I didn't realize how bad it was until I 6 heard everybody talk about it, especially for our flight 7 trainers for our flight schools and stuff. People -- I mean, 8 they -- they just taxi forever, turn off and then taxi the 9 same distance coming back. All right. What's the 10 utilization of that runway over there since y'all shortened 11 it? 12 MR. McKENZIE: It's still used. 13 MR. KING: I no longer fly in on that runway. 14 MR. McKENZIE: It's not used much, but it's still 15 used. We just have to maintain our federal grant assurances 16 by keeping the airport in the state it was in when we got 17 our -- 18 MR. KING: Okay. 19 MR. McKENZIE: There's a lot of things in the 20 equation here. 21 MR. GRIFFIN: It's used quite a bit, Tom, but the 22 traffic doesn't get as far out as your house is. 23 COMMISSIONER MOSER: I see it all the time. 24 MR. WOOD: Well, it's a very efficient runway for 25 the T-hangar tenants. 22 1 MR. GRIFFIN: Well, that and the smaller guys use 2 it all the time. 3 MR. KING: Okay. 4 MS. HARGIS: Steve? 5 MR. KING: Yes? 6 MS. HARGIS: If we could go back, I'll answer your 7 question. 8 MR. KING: Okay. Item 4A? 9 MS. HARGIS: Yeah. If you go to Page 1, and 10 then -- actually, go to Page 2, the second line item down, 11 designated cap replacement. See 64,000? That's our share of 12 the grant -- 13 MR. GRIFFIN: Okay. 14 MS. HARGIS: -- that we're talking about. 15 MR. KING: Oh, there's the designated cap 16 replacement. 17 MS. HARGIS: Mm-hmm. So, we haven't transferred it 18 yet, but it's shown as a liability. 19 MR. GRIFFIN: Okay. 20 MR. KING: Okay. 21 MS. HARGIS: Okay. So, with that in mind, and 22 the -- if you look down at the 331,367, -- 23 MR. KING: Right. 24 MS. HARGIS: -- that's -- that would be your 25 reserve less those payables. What I've done is I've -- I've 23 1 totaled up the expenditures that we would have. 2 MR. KING: Mm-hmm. 3 MS. HARGIS: If you take the total amount of 4 revenue that would come in, which is 221,080 left to come in, 5 expenditures of 199,477, that would leave you a positive of 6 surplus of 21,603. And then you add that to your 331, so 7 you've got about 352,000. 8 MR. KING: Okay, 352. 9 MS. HARGIS: That's taking out the 84,000 and 64. 10 MR. KING: Yeah. Yeah. 352, okay. Thank you very 11 much, Jeannie. Okay. Any -- back to Item 4C. Anybody else 12 have anything on that? That's fine, Bruce. Never hurts to 13 ask. 14 MR. McKENZIE: Okay. I just would like to get in 15 the queue. We can always change it. 16 MR. KING: Yeah, that's fine. 17 MR. McKENZIE: But the longer we wait, the longer 18 they'll push it out. Okay, thank you. 19 MR. KING: I don't have a problem or anything. 20 Anybody have a problem with that? Item 4D, Gemini Aviation 21 update. Mr. Gandy? I thought James was going to come talk 22 to us. 23 MR. McKENZIE: That's what's he told me. 24 COMMISSIONER MOSER: He sent a letter. 25 MR. KING: We'll move that down. The letter -- 24 1 MR. KENNEDY: He told me this morning he gave you 2 the information, but he didn't think he needed to be here 3 unless y'all had any questions. 4 MR. KING: Well, he's in the area, right? 5 MR. KENNEDY: As far as I know, yeah. 6 MR. KING: We can grab him, okay. Okay, is that -- 7 you want to just talk about that in executive session, maybe? 8 MR. WALTERS: Yeah. 9 MR. KING: About the letter? We'll do that, okay. 10 Item 4E, Brown Hangar lease, formerly known as the Brinkman 11 Hangar. On that, we have received our information from our 12 architect, Mr. -- 13 MR. McKENZIE: David Martin. 14 MR. KING: -- David Martin. He gave us a very nice 15 -- very good report on the hangar and everything. Jonas -- 16 have you seen it, Jonas? 17 MR. TITAS: No, I haven't. 18 MR. KING: Why don't we forward a copy to the City 19 and County and to Jonas? It's really good; told us exactly 20 what needs to be done to the hangar to bring it up to very 21 good standards. I think it would be easily accomplished 22 following those -- that directive. If you add a couple 23 hundred thousand dollars to the pool, probably be easy to 24 accomplish. But we have -- we have forwarded a copy of that 25 report and a letter to Mr. Solomon, who we had -- what would 25 1 you say? We had -- we were trying to -- 2 MR. GRIFFIN: We entered into negotiation. 3 MR. KING: A potential lessee of the hangar. We 4 have forwarded him that information, and we have given him 5 10 days to respond to the letter. And we've given him three 6 directives that we'd like for him to get back with us on if 7 he is interested. And in the letter, it was also stated that 8 at the end of 10 days -- I believe, Ilse, at the end of 10 9 days, the -- 10 MS. BAILEY: That his option expires. 11 MR. KING: His option expires and terminates. 12 MS. BAILEY: Yes. 13 MR. KING: The letter was sent when? 14 MR. McKENZIE: Thursday. 15 MR. KING: The 14th? It was sent the 14th. And we 16 anticipate an answer or not an answer from him in the next 17 five days. 18 MR. McKENZIE: This week. 19 MR. KING: So, at that point, depending on what his 20 answer is, we will either move forward with some more 21 questions for him about his proposed use of the hangar, or 22 non-use of the hangar, or if he does not respond, then we 23 will move forward with leasing the hangar to another 24 interested party or parties that we have who have made a 25 proposal. 26 1 MR. McKENZIE: Correct. 2 MR. WALTERS: I'd like to clarify. We didn't give 3 him an option. It was only -- the letter provides that if we 4 don't receive those items, that then we'll consider the 5 negotiations terminated. 6 MR. KING: Okay. 7 MR. WALTERS: There was never an option to lease. 8 MR. KING: Okay. 9 COMMISSIONER MOSER: When you said three 10 directives -- 11 MR. KING: Well, we'd like to sign a lease. 12 MR. GRIFFIN: The runway letter. 13 COMMISSIONER MOSER: I haven't seen the letter. 14 MR. GRIFFIN: It's in the packets. That's why I 15 said that, Tom. 16 COMMISSIONER MOSER: I'm sorry. 17 MR. KING: Basically, just sign the lease, show 18 funds, and deposit the first month's rent. Show funds that 19 he can complete the improvements, and then give us a deposit. 20 And so -- 21 MS. BAILEY: Steve, one thing. Since the 10 days 22 would be Saturday, I think that, probably, if he were to 23 respond on Monday -- 24 MR. KING: That's fine. 25 MS. BAILEY: -- the 26th, that would be acceptable. 27 1 MAYOR PRATT: That's Memorial Day. 2 MS. BAILEY: Oh. Well, then Tuesday. 3 MR. KING: Tuesday, okay. 4 MS. BAILEY: I just didn't want to obligate him at 5 a time when we would not be here. 6 MR. KING: Okay. 7 MR. WOOD: I have a question. 8 MR. KING: Yes? 9 MR. WOOD: In the letter, we talk about report for 10 the building code requirements for a change of occupancy from 11 storage to any other use. Was that all determined by David 12 Martin's company, or did he talk to the people at the City 13 that do the inspections? Or -- in other words, do we know 14 that if everything in this report is done, then it would 15 pass? 16 MR. KING: As I understand it, you -- you 17 basically -- Justin probably can help me with this, but you 18 basically -- it is the duty of the architect to propose these 19 changes to the City, and then the City will tell you whether 20 those are adequate or whether added changes need to be made. 21 MR. WALTERS: To answer your question, there's no 22 guarantee. 23 MR. KING: No guarantee. 24 MR. WOOD: So the inspectors haven't looked at 25 this? 28 1 MR. KING: They haven't. 2 MR. WOOD: Prepared by an engineer with him 3 studying the codes? 4 MR. KING: Studying the codes. And -- 5 MR. WOOD: Okay. 6 MR. KING: -- then there was an independent 7 engineer out of San Antonio that actually prepared the -- 8 prepared that part of the report. 9 MR. WOOD: Okay. 10 MR. KING: So, I think -- I mean, they didn't throw 11 this together on the weekend. 12 MR. WOOD: It's a starting point. 13 MR. KING: It's fairly in-depth, and I think it's 14 good information for -- whatever comes out of this with 15 Mr. Solomon, I think it's good information, 'cause I think 16 we'd know, you know, this switch is 54 inches high and needs 17 to be 48, so you got to move it. And, I mean, it addresses 18 all the codes, I think, that they could come up with in the 19 building, and the air conditioning system, water system. It 20 addresses everything. It's very in-depth. So, we're hopeful 21 that this information will be something that we can use to -- 22 as a future tenant, if someone would like to change the use 23 of the building, then we can go from there. But we do not 24 anticipate -- if Mr. Solomon does not respond, or he declines 25 to respond, then the intended use of the building will not 29 1 change; it will be used for storage, and we will be 2 contacting those -- the interested party hopefully here 3 within 24 hours of, you know, either the deadline or the 4 response. Sound like a deal? 5 MAYOR PRATT: I have a question. If he doesn't 6 respond, are you going to follow up with a letter? 7 MR. GRIFFIN: This letter was sent certified 8 already. 9 MAYOR PRATT: I understand, but a follow-up letter. 10 MR. WALTERS: We will. 11 MR. KING: Yeah, we'll just confirm -- 12 MAYOR PRATT: I think you need to confirm it. 13 MR. KING: We will. We'll send him a "thank you 14 very much" letter, and appreciate it. Okay. Anything else? 15 Anybody else have anything on that? All right. Our goal is 16 to have the thing leased by the end of the month. 17 MR. McKENZIE: Right. 18 MR. KING: To have someone giving us money for this 19 hangar. 20 MR. MACDONALD: Which month will that be? 21 MR. GRIFFIN: May. 22 MR. KING: It will be a month that has an "M" in 23 it. (Laughter.) 24 MR. MACDONALD: Next March? (Laughter.) 25 MR. McKENZIE: Don't say that. 30 1 MR. KING: '14, we really hope. 2 MR. GRIFFIN: November. 3 MR. KING: So we hope that the negotiations will 4 conclude and we can -- or they will either continue, 5 conclude, and we will move on. All right. Anybody else have 6 anything on that? Granger, do you have anything on that? 7 MR. MACDONALD: No, thank you. 8 MR. KING: Item 4F, amend the 2014 Recommendation 9 for Allocation of Reserve. That's the consultant fee. 10 Executive session as needed. What are we going to do about 11 this? 12 MR. McKENZIE: I put that on there so you could 13 indeed talk about that. You could talk about that, if you 14 would like to, in open session, or if you want to put a cap 15 on that, however you want to do it. The next three are all 16 germane to each other. 17 MR. KING: I don't have a problem. 18 MR. WALTERS: Well, I'd like -- I mean, since we 19 just received it, and everybody hasn't had an opportunity to 20 make comments on the last proposal, why don't we take that in 21 executive session so we can talk about that a little bit? 22 MR. KING: Okay. 23 MR. WOOD: Well, I got a question. Is this 24 specifically -- there's two items in my mind. One is what 25 Bruce said at the last meeting, to have, like, a general 31 1 consulting fee in the budget for whatever might come up, and 2 then there is the real consulting fee that we have with the 3 Mooney roof. What are we talking about in 4F? 4 MR. GRIFFIN: The latter, the Mooney roof. 5 MR. WOOD: The Mooney roof? Okay. 6 MR. GRIFFIN: Yeah. 7 MR. KING: Talking about the consulting fee to -- 8 MR. McKENZIE: The roof. 9 MR. GRIFFIN: The one that Bruce was talking about 10 was if we have to change a light, or -- 11 MR. WOOD: Yeah, right. Just stuff that comes up 12 during the year. 13 MR. GRIFFIN: Right. Right. 14 MR. WOOD: Okay, thanks. I just wanted to clarify. 15 MR. GRIFFIN: I think. I think that was the intent 16 behind those. 17 MR. McKENZIE: Exactly. 18 MR. GRIFFIN: Okay. 19 MR. WALTERS: So, under this recommendation for 20 allocation of reserve, is that to put a ballpark amount? Or 21 just the recommendation? 22 MR. KING: I mean, I think at some point we have to 23 come up with a number. 24 MR. McKENZIE: He put a number and put a cap on it, 25 I would think, Corey. 32 1 MR. WALTERS: Okay. 2 MR. KING: That will be done in open session. 3 MR. WOOD: So, is this just to get that money that 4 we're going to have to pay for a consultant into our budget 5 so it shows up? 6 MR. McKENZIE: That's correct. And that's at 7 the -- 8 MR. WOOD: All right. 9 MR. McKENZIE: -- the advice of the City Manager. 10 That was his exact verbiage; we need a location for reserve 11 to move this in. 12 MR. KING: I guess I have to ask, is there 13 information that we're going to discuss in executive session 14 that's sensitive? I'm trying to figure out why we're going 15 into -- 16 MR. WALTERS: No, but I -- no, I guess we don't. 17 But I don't think that y'all have -- you're aware of it, but 18 we did get the revised proposal back from Tom Kita and David 19 Marks, and they're -- when we threw in the assessment of the 20 hammer house and the structural integrity and getting their 21 structural engineers involved, their proposal went from 22 $98,000 to $128,000. Now, I've got some questions, and I'm 23 sure Kirk's got some questions after looking at their 24 proposal, and I've already sent David Marks an e-mail asking 25 a couple of questions on their last proposal, which I've not 33 1 gotten a response to. So, I mean, if we want to accept, you 2 know, 128 -- put a figure in that of 128,000, then we can get 3 these answers and negotiate afterwards. 4 MAYOR PRATT: Yeah, that's my only question, is how 5 much negotiation is going on with that number? 6 MR. WALTERS: Right. Well, none yet. 7 MR. GRIFFIN: Yeah. We haven't had an opportunity 8 to, but -- 'cause we just got this Friday. So -- 9 MR. WALTERS: Right. 10 COMMISSIONER MOSER: I think you ought to get a 11 number, and then make -- make a budget adjustment. 12 MR. KING: We have a number. 13 MR. GRIFFIN: We've got a number. I mean, it's not 14 a budget adjustment. It's what you put in the -- 15 MR. KING: I mean, the scope of the work changed. 16 COMMISSIONER MOSER: Amendment. 17 MR. KING: Corey, we can talk about this in open 18 session, I think. You've talked to the guy. You've been 19 pretty involved as far as talking to them. Can they explain 20 to you how the scope changed so much that -- 21 MR. WALTERS: Well, that's -- I asked him in my 22 e-mail to him on Friday when I just got it -- I just got 23 the -- you know, the report, and my first comment was, you 24 know, "Can you provide the specifics of the changes in the 25 scope of the work from the original to this current proposal, 34 1 and how it relates to the increase from $98,000 to $128,000?" 2 MAYOR PRATT: Or how the work -- the workload 3 increased 30 percent. 4 MR. WALTERS: Yeah. Well, same thing. 5 MAYOR PRATT: Yeah, but if -- 6 MR. WALTERS: So -- and so that's -- and I've not 7 gotten a response to that. Because when I look at this, I 8 mean, one of the things that I'm seeing is that really -- 9 and, Kirk, I'd like to get your opinion on it too. It looked 10 like the 28,000, most of it was related to -- or I can't 11 tell, 'cause it's not broken down, but the biggest part of 12 the change is related to the structural integrity of that 13 hammer house. 14 MR. GRIFFIN: Here's where I think -- and not 15 having seen their numbers and how they put their numbers 16 together, but I think here's where they're coming from, is 17 we're asking these guys to baby-sit this project from 18 beginning to end, through completion and handing us the keys, 19 saying, "Okay, you guys are back with a good, structurally 20 sound, weatherproof facility." 21 MR. WALTERS: But we asked them to do that in the 22 original, too. 23 MR. GRIFFIN: Just as far as the roof was 24 concerned. 25 MR. WALTERS: That's true. 35 1 MR. GRIFFIN: And so here -- here's where I think 2 they're coming from, is they're saying, okay, we've 3 potentially -- there's three buildings over there that are 4 really the potential "gotchas" in the system. You know, 5 there's the hammer house, there's the Quonset hut and the 6 scabbed-on pieces on it, and there's the scabbed-on pieces on 7 the west side of the -- I can't remember what Mooney calls 8 it. They call it their completion center, which is the 9 hangar that's on this side of -- the east side of the 10 facility. What we're now asking these guys potentially to do 11 is to baby-sit that program where we're tearing walls out and 12 doing things that they don't -- they're -- that 30K is 13 protecting the cancer and how deep the cancer goes, and how 14 much of the cancer we have to remove before we can put the 15 facility back into operation. Or not even back into 16 operation, but say declare it stable and good. 17 I think it's -- I think it's really them covering 18 that concern and that unknown, because it's -- it is a great 19 unknown. Until you start pulling cladding off of -- off of 20 columns and that kind of stuff, you don't know what's going 21 on in there. And I think they're kind of trying to bet on 22 the outcome a little bit to make sure that -- I know I would. 23 As a contractor, if you came to me and said, "I want you to 24 come do this," I'd say, "Hey, sounds great, but man, until we 25 get this thing open, we don't know what we're dealing with." 36 1 And they -- because they haven't done their three and a half 2 week inspection that they've -- that's the next step of this. 3 We don't know what that is. It might be that we press 4 forward and retain them, and leave that 30K as a -- as a 5 negotiable item based on the -- their findings as they do the 6 structural investigation. 7 MR. WALTERS: That's reasonable. 8 MR. GRIFFIN: It -- 9 MAYOR PRATT: I just -- I got a problem with the 10 wording there, because you got to negotiate the first 98,000, 11 too. 12 MR. KING: Evidently, we're not. I mean, they 13 haven't -- did they -- in their meeting, did y'all discuss 14 any negotiation on the first 98? I mean, -- 15 MAYOR PRATT: There was no discussion at all. 16 MR. KING: -- "Would y'all do it for 75?" 17 MR. GRIFFIN: Well, because we changed -- the first 18 thing we did was we changed the scope. 19 MR. KING: Changed the scope. 20 MR. GRIFFIN: So we didn't even get to the 21 negotiation piece, because the first thing we did was we 22 said, "Hey, we know we've got some issues with some of the 23 facilities," and so we instantly changed the scope, and we 24 were trying to more define the scope so that they could come 25 back with a new number. 37 1 MAYOR PRATT: I'd like to see a negotiation on the 2 entire amount. 3 MR. GRIFFIN: And I agree. You're right. 4 COMMISSIONER MOSER: Put this in the big picture, 5 too. You're talking about half a menu, for a ballpark for 6 all of their -- all their work that they do have, or for that 7 duration. And you're right, you know; they didn't look at 8 trusses and they didn't look at columns, and -- 9 MR. GRIFFIN: They were solely -- the first 10 go-around, they were solely looking at the roof. 11 COMMISSIONER MOSER: What they have on the -- just 12 the gut feeling, looks pretty darned good. 13 MR. GRIFFIN: Yeah. 14 COMMISSIONER MOSER: For what they're doing. Yeah, 15 you can -- you can negotiate, but still -- 16 MR. GRIFFIN: No, we need to; there's no doubt. 17 It's just when we walked -- after our meeting that Friday, we 18 walked in here, and the first thing we did was we changed the 19 scope of work. 20 COMMISSIONER MOSER: Right, precisely. 21 MR. GRIFFIN: And so that 98 went out the window at 22 that point. 23 MR. WALTERS: There was no point negotiating when 24 we didn't know what the number -- 25 MAYOR PRATT: I understand. But now you do. 38 1 MR. GRIFFIN: Now we do. 2 MR. KING: Do you think that they're also -- I 3 think one thing I'd like to ask them, do you think they're 4 thinking that if we have to do some construction in that 5 building over there other than the roof, that they're going 6 to also maintain they're going to -- 7 MR. GRIFFIN: I think they feel that -- 8 MR. KING: If we start having to take columns and 9 trusses out, they're going to oversee that also? 10 MR. GRIFFIN: Yes, sir. 11 MR. KING: Seems like they've added a bunch of 12 stuff in here that they may not even have to do. 13 MR. GRIFFIN: Until we get in -- yes. 14 MR. KING: I mean, I think there's got to be a way 15 you can -- 16 MR. WALTERS: I think we could -- 17 MR. KING: -- move it down. What if we tear the 18 building down? 19 MR. WALTERS: Well, I think we could get them to 20 itemize this so that -- or go back to them and say, you know, 21 "We'd like to see an itemization," so if we get in there and 22 we find out that we're not going to do this, that it's not 23 thrown in the bulk price; that we have the opportunity to 24 pull that out. 25 MAYOR PRATT: Precisely. 39 1 MR. KING: I think that's a great idea. I think 2 you got to scale this thing back a little bit, because when I 3 see 128,000, I see a -- I don't see a million dollar project. 4 I see them thinking a million, two; a million, five. 'Cause 5 I don't think anyone in their right mind is going to charge 6 us 13 percent -- or, you know 13 percent of the cost to go 7 over here to spend five weeks. I mean, how much -- what's 8 their projected time before they get -- before they get into 9 actually approving bids and stuff like that? What is their 10 total -- they're going to spend three weeks over there, three 11 and a half? 12 MR. GRIFFIN: Three and a half weeks. 13 MR. KING: Then spend another two weeks in -- 14 MR. GRIFFIN: In review. 15 MR. KING: -- review. That's five and a half 16 weeks, and then they're going to spend -- 17 COMMISSIONER MOSER: All the way through 18 completion. 19 MR. GRIFFIN: We don't have that detail yet. 20 MR. KING: Yeah. 21 MR. GRIFFIN: And that's what we need to know. 22 MR. KING: I multiplied it; I did some hourly 23 numbers on it. It was -- it comes to a fairly large number 24 when you try to throw all that into about five and a half 25 weeks. 40 1 MR. GRIFFIN: 13 to 15 percent. 2 COMMISSIONER MOSER: It's not five and a half 3 weeks, though, Steve. 4 MR. KING: It's going to be more than that, but 5 they're not going to have six or seven guys over there doing 6 construction. They'll have one guy over there, like a TexDOT 7 guy standing around, being sure that they're doing the right 8 stuff. And I still -- the job's not going to last a year, 9 either. You know, the job is going to be completed in a -- I 10 mean, I don't think it's going to be that long a job. It's 11 just -- I'm looking at -- when I saw that number, I was like, 12 "Man, I wish I was in their business." 13 MR. WOOD: I got a question. 14 MR. KING: When I bid something -- when we bid 15 something in my business, we go out -- I mean, you can give 16 me 128,000, but we're going to -- you know, there's other 17 people out here. They have to know that they've been chosen; 18 they're not the only company that was -- there's -- you know, 19 we'll throw the thing back out to five more companies or 20 something like that. 21 MR. GRIFFIN: It's the same -- 22 MR. KING: Just 'cause we picked them doesn't mean 23 we're paying them. 24 MR. GRIFFIN: It's the same discussion we got into 25 at the City Council -- that you got into, is that this has 41 1 become a public deal. We've now got to change the way we do 2 it. And, of course, this is just the first one we retained. 3 It's the same question we had two weeks ago at our last 4 meeting when I said, you know, how do we go and essentially 5 sole source this when what it may bring up is, after we meet 6 with these guys and understand their numbers, we go -- we 7 need to go find somebody else? I don't know, but we got to 8 get with them and justify the numbers, of course. 9 MR. KING: I agree. I just think we can -- like 10 Corey said, or you both said, you know, we got to itemize 11 this thing out a little bit where we can have some 12 protection. 13 MR. GRIFFIN: I understand. 14 MR. KING: Protection in case this thing goes up 15 and it looks like we need to replace the decking. 16 MAYOR PRATT: You just need a line item bid. 17 MR. KING: So we can save some of our money. 18 'Cause I'll remind y'all that this is coming out of reserve. 19 MR. WOOD: The price for the initial study. After 20 they do that, then you can get your itemized -- yeah. 21 MR. GRIFFIN: I think that's what we had the last 22 time. We just didn't get that far, because we started 23 changing the scope of work as to what we wanted them to look 24 at. 25 MR. KING: Okay. 42 1 MR. WOOD: Steve, I had a question. I don't want 2 to confuse things, but after all this gets resolved and you 3 get into the business of this, you got Mooney over there 4 that's still trying to build airplanes. Is somebody from 5 there going to get involved a little bit to see what we're 6 talking about and how it would impact them? 7 MR. GRIFFIN: I think as soon as -- well, I'll 8 answer that. 9 MR. KING: That's fine. 10 MR. GRIFFIN: Try and give an answer. I think 11 where we are and what we've stated to-date, Bill, is that 12 once we get this going, we -- in fact, we had Barry here at 13 the last meeting and said, "Hey, we want to make sure that 14 we've got a couple guys from your -- whether it's you or your 15 maintenance guy or whomever, as part of this group as we sit 16 down and meet and talk about things," because it definitely 17 impacts their production. 18 MR. WALTERS: Well, it was -- once we get the 19 findings of their assessment, -- 20 MR. WOOD: We -- 21 MR. WALTERS: -- then at that point, then I think 22 that's when we get Mooney involved, and let them know what, 23 you know, the recommendations are of the consultant. Kirk 24 and Steve and I also talked about that. We don't really 25 think that we ought to wait until the assessment is complete, 43 1 but we ought to -- we feel like we ought to get, you know, 2 maybe Bruce to go ahead and talk to Barry and Tom Bowen. 3 MR. KING: On that, I'm going to open up Item 4G 4 also, 'cause 4G is basically the same thing. It's -- that's 5 the discussion of the Mooney roof maintenance and structural 6 issues. Is that okay? 7 MR. WALTERS: Yes. 8 MR. KING: So that we're not -- I want to be sure 9 we're following the rules here, so under that, y'all go 10 ahead. 11 MR. WALTERS: Is the fact that we felt like we 12 should get -- you know, talk to Mooney and have them explore 13 the possibility of, you know, using other facilities that 14 they have to move other operations -- I mean, some of their 15 other work, so that maybe we don't have to salvage that 16 hammer house. Maybe they can use the delivery center to move 17 some equipment and do some things over there. That might 18 save us a considerable amount of money. 19 MAYOR PRATT: How much money have they invested 20 already in the hammer house? Didn't they dig that -- 21 MR. KING: They put some equipment in there. 22 MAYOR PRATT: I thought they -- 23 COMMISSIONER MOSER: They're going to fill that 24 hole. That was the salt pit. That was the heat treat. 25 They're going to put in a new heat treat facility. 44 1 MR. KING: I think what Corey's discussing, I think 2 we need to have a meeting with them, with Barry and Tom, and 3 just say, "Look, guys, let's see if we can't streamline the 4 whole situation over here." Let's look at -- let's look at 5 other options. 6 MR. WOOD: Something they want to use, right. 7 MR. KING: This is a 60-year-old building. 8 MR. WALTERS: We don't want to spend good money 9 after bad. 10 MR. KING: Exactly. 11 MR. WOOD: Unsalvageable building. 12 MR. KING: That has a hammer in the middle of it. 13 We could build a building around the hammer if they need 14 that. We can build a 1,500 square-foot building around it, 15 put a walkway to it, and they could use that all they wanted 16 to. So, I mean, I think we have to look at -- we need to 17 kind of think a little bit outside the box on this instead of 18 just looking at it like, okay, we're going to fix this 19 60-year-old building, you know, come heck or high water. And 20 I think -- I mean, it's just -- I want to find out what their 21 thinking is on that. 22 MR. GRIFFIN: And there's another piece to that, 23 and I thought of it actually over the weekend. I've got a 24 little bit of a concern -- and we may need to go look at our 25 lease -- contract with them. 45 1 COMMISSIONER MOSER: You don't have a lease. 2 MR. KING: Month-to-month. 3 MR. GRIFFIN: Or month-to-month, but we're 4 hopefully getting it. In the last -- since they've resumed 5 operations over there, they've -- they've redone their 6 delivery building, at a cost to them. They've added a 7 bathroom on the back of the hammer house, which is, of 8 course, the worst structure in the facility, at a cost to 9 them. At some point, if we -- if we, the Airport Board, as 10 the representative of the City and the County, negotiate with 11 these guys over time, do we not need to make sure that we 12 understand -- we have a say in what they're doing to all of 13 the facility now? I mean, are we opening that door that 14 says, "If you guys want to go add money to this facility, we 15 have a say in which facility you add it into"? Adding the 16 $127,000 bathroom to the hammer house, which may structurally 17 be the worst structure on the campus, if I look at it from 18 the ownership standpoint, that might not be where I would 19 have added that bathroom. And I'm not trying to stop them 20 from doing what they want to do with the facility, but if 21 we're going to step up and say, "Yea, verily, I'm the owner, 22 and I'm the..." 23 MR. WOOD: Responsible for paying for the 24 maintenance. 25 MR. GRIFFIN: For the maintenance and all those 46 1 kind of -- types of things, well, really, I'm afraid we're 2 really opening ourselves into that discussion. 3 MAYOR PRATT: Aren't you into a discussion, though, 4 that may not even be apropos? Because you haven't got the 5 report yet. 6 MR. GRIFFIN: Separate -- separate from just the 7 roof. 8 COMMISSIONER MOSER: They're modifying facilities. 9 MAYOR PRATT: But that's going to come from the 10 consultant. 11 MR. GRIFFIN: No. no, no, no. No, if -- if they -- 12 if they chose to upgrade their delivery building -- 13 MR. McKENZIE: Big office building. 14 MR. GRIFFIN: -- it's the smallest little building 15 out by itself. They did an extensive remodel on that. 16 That's probably one of the most sound buildings to start with 17 anyway, so -- so the fact that they upgraded a building that 18 we'll have for the next 25 years, I'm not concerned about. 19 But adding a bathroom to the hammer house, which we're 20 sitting here as a group loosely talking about maybe the best 21 thing to do is to get rid of the hammer house, now you've got 22 a bathroom sitting out there. If you get rid of the hammer 23 house, you've got the bathroom on the campus sitting out by 24 itself. 25 MS. BAILEY: Well, Kirk, that issue really goes to 47 1 all of our tenants. You know, to what extent do we allow 2 them to make modifications to the building without our -- 3 without our input? 4 MR. WOOD: Controlling if they do it, how they do 5 it, with the right codes. 6 MR. GRIFFIN: With the Mooney situation, we're 7 getting ourselves into new ground. 8 MS. BAILEY: Right. 9 MR. GRIFFIN: I'm just trying to -- I started 10 thinking about going, okay, you know, they went out and 11 sole-sourced them. They went out -- I don't know if they 12 sole-sourced it or not, but it's our facility. Then -- 13 COMMISSIONER MOSER: They built -- they modified 14 it. 15 MR. GRIFFIN: They modified it, and we didn't have 16 a say in any of the modifications, or to what standards, or 17 to -- 18 COMMISSIONER MOSER: Not done to A.D.A. or anything 19 else. 20 MR. GRIFFIN: It's within the city, and they had to 21 have a building permit, so we -- we assume, and probably 22 rightfully so, that they did all the proper things, but we 23 don't have any insight into that. And if we're -- you know, 24 based on what we're talking about with this roof, we now have 25 to maintain that $127,000 bathroom. Is it to our standards? 48 1 Is it where -- you know, and those kinds of things. 2 MR. WALTERS: Okay, two questions. One, I mean, 3 you know, in all -- and, Ilse, I don't know what the Mooney 4 lease says. I mean, generally when you -- between landlord 5 and tenant, I would say, you know, 90 percent of the time, it 6 says, you know, you can't modify any of my building without 7 my consent. 8 MS. BAILEY: That's what I'm thinking. I just 9 don't have an independent recollection of what the lease 10 says. I'll have to look at it. 11 MR. WALTERS: But, you know, and maybe we need to 12 send -- you know, those guys probably haven't read the lease 13 either, and they -- they're probably not aware of that. 14 Maybe we need to send them a letter just to let them know, 15 any modifications to the lease premises, you know, need to be 16 -- we need to receive a copy of what you're proposing to do, 17 and get our consent and get our approval. 18 MR. KING: We can do that, I think, with that 19 meeting we're talking about over there. 20 MR. GRIFFIN: Well, but it's -- we're setting a new 21 standard. We're going down a path that we've never been down 22 before here. 23 MR. KING: Well, we actually -- 24 MR. WOOD: It applies to the Brown hangar, too, 25 when we lease that to somebody. 49 1 COMMISSIONER MOSER: Applies to the new T-hangars. 2 MR. WOOD: Sure, the new T-hangars, anything we 3 own. 4 MR. KING: It also applies to the Alamo Colleges 5 building over here that they modified over here already. 6 They actually modified the bathroom -- modifying the 7 bathrooms to make them A.D.A. compliant. We addressed this 8 issue. 9 MR. GRIFFIN: No, you're right. 10 MR. WALTERS: I have a question, though. So, I 11 mean, we still don't have a signed lease with Mooney 12 International, so what -- 13 COMMISSIONER MOSER: That's my point. 14 MR. WALTERS: You know, and if Mooney International 15 is currently a holdover tenant, or we have a temporary lease 16 with them, under what lease agreement are we occupying -- are 17 we under? 18 MS. BAILEY: Under the same terms and conditions as 19 the old lease, except for the amount -- an amount of rent 20 that we've negotiated differently. But, I mean, just general 21 landlord/tenant laws, if you're a holdover, your holding over 22 under the same terms, unless the terms change. 23 MR. WALTERS: Okay. Do we -- 24 MR. TITAS: And it's just a month-to-month, 25 correct? 50 1 MS. BAILEY: Month-to-month. 2 MR. WOOD: I think our new lease needs to address 3 the things Kirk's talking about. In the past, all those 4 buildings sprung up over there as they were needed. 5 MR. GRIFFIN: Exactly. 6 MR. WOOD: And they were totally uncontrolled. 7 It's whoever decided they needed the building, they built it 8 to some standards, but -- 9 MS. BAILEY: I do have the lease here now. It says 10 in Article 5 that prior to any construction, alteration, or 11 changes to the lease premises, lessee shall submit to the 12 Airport Manager engineered plans and specifications of the 13 construction and a site use plan with all drainage, utility 14 services, existing or proposed, indicated thereon, so forth 15 and so on. So, yes, we do have a requirement. It just was 16 overlooked, and probably has been overlooked by many of our 17 other tenants as well. 18 MR. WALTERS: Instead of waiting for meeting with 19 Mooney, which could happen three and a half weeks down the -- 20 why don't we just send them a simple letter and cite that 21 language, and just say, you know, "Please be aware..." 22 MR. GRIFFIN: To remind you, right. 23 MAYOR PRATT: I might even suggest you send it to 24 every owner out there. 25 MR. GRIFFIN: Every tenant. 51 1 MAYOR PRATT: Every tenant. Send it to every 2 tenant to remind them. 3 MR. KING: I think that's a good idea. 4 MS. BAILEY: Well, and just more global -- that 5 specifically, but I think all the tenants need to be reminded 6 that not only construction, but other business that they do, 7 they need to make sure -- 8 MAYOR PRATT: That way they don't think you're 9 singling them out. 10 MR. TITAS: And in such a way that you're not -- 11 MS. BAILEY: Not attacking. 12 MR. GRIFFIN: No. 13 MAYOR PRATT: You're not singling them out. 14 MR. TITAS: -- keeping them from making 15 improvements. That's an asset. 16 MS. BAILEY: I wouldn't like to discourage that at 17 all. 18 MR. KING: I agree. Just make the letter, you 19 know, as soft as you can, because all these things have one 20 thing in common. It's their money, not ours. We're not 21 having to come up with it. 'Cause the next letter you're 22 going to get is, "We would like you to upgrade our bathrooms, 23 because they're not A.D.A. compliant, and it's your hangar." 24 MR. McKENZIE: I know. 25 MR. GRIFFIN: And that's -- 52 1 MR. KING: "It's your hangar, not ours. We're 2 leasing it." 3 MR. GRIFFIN: That's why I brought the topic up, 4 because we're opening a door here. 5 MR. KING: Let's try to be as -- you know, just -- 6 I think that's a great idea. Send it to all of our tenants, 7 and let's try to make it as -- basically, as, you know -- 8 COMMISSIONER MOSER: Good weekend thought. 9 MR. KING: Good thought. I just don't want to open 10 up a can of worms, and they're like, "Okay, guess what? You 11 fix it. It's yours." 12 MR. GRIFFIN: Absolutely. 13 MR. KING: That's like me asking one of my renters 14 to put a new stove in because the stove doesn't work. 15 MR. GRIFFIN: No, I -- 16 MR. KING: "Hey, I'm renting it." 17 MR. GRIFFIN: But we've opened that door now, and I 18 just wanted to make sure we had a discussion on it before -- 19 MR. KING: That's fine. 20 MR. GRIFFIN: -- something came back. 21 MR. KING: Send it to everybody, 'cause those guys 22 are doing the same thing over here. 23 MR. GRIFFIN: Oh, yeah. 24 MR. KING: They've been to our meeting twice saying 25 they're going to spend $25,000 fixing up their bathrooms over 53 1 there. So, basically send them the same letter. 2 MR. WALTERS: I don't think it's a demand. I think 3 it's just, you know -- 4 MR. McKENZIE: A reminder. 5 MR. WALTERS: -- a reminder that the -- 6 MR. WOOD: Friendly reminder. 7 MR. KING: Keep us up-to-date. 8 MR. WALTERS: We need to have copies of what you're 9 doing, you know. 10 MR. McKENZIE: Absolutely. 11 MAYOR PRATT: They need to have -- they need to 12 have approval too. 13 MR. WALTERS: Yeah. 14 MR. KING: I don't have a problem with that. Okay, 15 anything else on that? 16 MR. GRIFFIN: Sorry to derail. 17 MR. WOOD: Good point. 18 MR. WALTERS: Can I -- we're getting a little bit 19 off this point. 20 MR. GRIFFIN: Yeah, get back on -- 21 MR. WALTERS: That's fine. I'll bring up something 22 else later. 23 MR. WOOD: What are we going to do with 4F? 24 MR. GRIFFIN: We're not there yet. I think on 25 4G -- 54 1 MR. KING: Well, I would think that you and Corey 2 need to -- 3 MR. GRIFFIN: We need to sit down with Primero. 4 MR. KING: Sit down with those guys, tell them 5 they've just exceeded my anticipated budget by $28,000, so -- 6 I haven't told anybody we're spending 128 on this thing yet. 7 MR. GRIFFIN: Right. 8 MR. WOOD: Could they rewrite their proposal to 9 give a firm price for the study, and then after they've done 10 the study, -- 11 MR. GRIFFIN: The contract management. 12 MR. WOOD: -- give us a detailed breakdown? 13 COMMISSIONER MOSER: Or else do it where you 14 itemize it where you can select things that they're going 15 to -- services performed. Like you said, if you eliminate 16 the hammer house, then you do not need to do a structural 17 integrity of the columns. 18 MR. GRIFFIN: Right. 19 MS. BAILEY: But what I think it is, I think these 20 guys are really up-and-up guys. I think if we ask them to -- 21 to package it a certain way, by all means, they will. 22 They're not trying to hide it. From the discussions that we 23 had Friday -- a couple Fridays ago, they're not -- they're 24 not trying to hide anything. And I think they probably have 25 the numbers broken out that way. They were just trying to 55 1 give us the package that we'd seen before with an adjusted 2 number in it, and so I really think that where we are is we 3 can sit down and go through it line by line, and we'll figure 4 out where that extra 30K is and what it entails. We just 5 didn't have enough response time to get -- 6 MR. WOOD: There's no -- 7 MR. KING: Let's not only do that; let's also 8 negotiate. There's no reason -- 9 MR. GRIFFIN: We need to understand. 10 MR. KING: No shame in asking. 11 MR. GRIFFIN: No, we need to ask. 12 MR. WOOD: And don't get into too much detail. You 13 know what all the details are. 14 MR. GRIFFIN: Right. 15 MR. KING: Right. 16 MR. GRIFFIN: I think, based on their history, they 17 have a pretty good feel as to what the project management 18 piece of this effort is. Not until you get into the survey 19 do you find out how much structural issues you have. 20 MR. KING: I can understand that. 21 MR. GRIFFIN: Yeah. 22 MR. WALTERS: You know, I mean, I'm uncomfortable 23 with the whole public money process of telling somebody they 24 got the job, and then negotiating with them after. 25 MR. GRIFFIN: Me too. 56 1 MR. KING: 100 percent. 2 COMMISSIONER MOSER: That's the normal procedure. 3 MR. WALTERS: I know it is, but I'm just saying, I 4 just, you know -- 5 MAYOR PRATT: Doesn't mean that they get the job. 6 MR. WALTERS: I know it doesn't, but you know what? 7 If I'm in their position, I'm sitting here probably thinking, 8 You know what? I'm feeling pretty good where I'm at right 9 now. 10 MR. KING: I'm kind of like Corey. This whole -- 11 MAYOR PRATT: I'm sitting over here saying, "Don't 12 say that," okay? Because you're -- you're saying, "I don't 13 have a problem." I got a problem. 14 MR. KING: Well, we -- Corey and I and Kirk, we 15 come from the private side of the world, and it's just -- 16 this is so foreign, to basically say, "Let me show you my 17 wallet. Here you go; here's my wallet. How much do you 18 think this is going to cost?" You know, and that's what we 19 do, basically, out here, is we -- 20 MR. WOOD: "How much you got?" 21 MR. KING: But -- 22 MR. GRIFFIN: I'm not sure how to throw that one 23 up. 24 MR. KING: But it is a little foreign. We tell 25 them, "Hey, we think we'd like to spend..." -- you know, how 57 1 much? "Here, you're hired." 2 COMMISSIONER MOSER: You can also do a cost-plus 3 with them, something like that, not a fixed price on 4 something like this, 'cause you don't know what you're doing. 5 There's other ways to contract. 6 MR. GRIFFIN: Oh, yeah. 7 MR. KING: Anyway, we're going to instruct Corey 8 and Kirk to go back to these guys, find out if there's any 9 way we can lessen their feeling that they're going to lose 10 money on this thing or something, or lessen something, and 11 then also negotiate with them. And explain to them that you 12 are dealing with someone -- we don't have a lot of money. 13 They didn't hit the lottery here when they found us. 14 COMMISSIONER MOSER: Let me make the point, if you 15 do a firm, fixed-price contract, you better define the scope. 16 You have -- 17 MR. GRIFFIN: Absolutely. 18 COMMISSIONER MOSER: If you can't define the scope, 19 then there's other ways of doing it. But right now, what 20 we're talking about, we don't know what the scope is, and 21 we're apprehensive about a firm, fixed price. Not defining 22 the scope is incompatible with a firm, fixed price. 23 MR. WALTERS: We have the scope. 24 MR. KING: They've just -- 25 COMMISSIONER MOSER: You don't know if the -- what 58 1 kind of structural engineering, blah, blah, blah. 2 MR. WALTERS: We have the scope. We just don't 3 have the itemization of the prices related to the scope, 4 which is what we need. 5 COMMISSIONER MOSER: Okay. 6 MR. KING: I think they just -- they've thrown a 7 big old net over the top of it, and they're going to cover 8 everything they can. 9 MR. GRIFFIN: At this point. 10 MR. KING: At this point, I would like to kind 11 of -- first of all, we don't have $128,000. Just tell them 12 that. We don't have that. 13 MAYOR PRATT: That's right. 14 MR. KING: That's just -- that's not -- that's not 15 something I'm going to vote for, $128,000, unless they come 16 up with some real numbers that they're actually going to 17 spend that much money over there, and not end up spending -- 18 you know, back to the same deal we did with these two 19 T-hangars, where we spent $800,000 on T-hangars that should 20 have cost 500,000. So, we -- you know, this deal here, I 21 think we would be negotiating with them saying that, you 22 know, we're not -- Corey's already not excited about this 23 extra $30,000. And I don't want him to explain where it is, 24 because I can explain anything. I'll -- you know, I can 25 explain where the $30,000 is; there it is right there. 59 1 MAYOR PRATT: Justify anything. 2 MR. KING: I can justify it. So, let's just -- 3 just get it back to where -- 4 MAYOR PRATT: In the meantime, move, 'cause it's 5 going to rain again. 6 MR. KING: I know. I know. 7 MR. WALTERS: Well, I did explain to him -- to Tom 8 Kita when I sent the e-mail, I said, "I don't think that we 9 were expecting a $28,000 increase, you know, $30,000 10 increase." 11 MR. KING: Yeah, exactly. Okay. So -- well, we'll 12 work on that. You guys will work on that. All right. So, 13 that -- Item 4H, that's that report, right? 14 MR. McKENZIE: Yes. 15 MR. KING: Do y'all want to talk about that in 16 executive session, the report? Y'all pretty much know what 17 to do. 18 MR. WOOD: Everybody's got it. 19 MR. KING: And the Mooney -- do we need to talk 20 about Mooney any more? We do need to have that meeting with 21 them. Let's talk to them about paring down that situation 22 over there, see if there's any way they can help us. 23 MR. WALTERS: Can I ask one question? Where do we 24 stand with a lease? 25 MR. KING: Yeah, what about that? That's what I 60 1 was going to ask you. What about the City and County? We -- 2 our owners, when we -- I mean, eons ago, I think my son was 3 in college back then, we talked about the -- this lease, and 4 then we said, "Okay, we're going to stop on this lease," 5 because there might be some economic incentives and some 6 other stuff, and all those things that might need to take 7 place. And then I had a meeting -- I had a couple of 8 meetings with the City and the County, and we talked about 9 you guys sending us some problems y'all might see in the 10 lease, or things y'all might want to add to the lease. 11 MR. WALTERS: We're all done with that. 12 MR. KING: Why don't we sign the lease? What's -- 13 COMMISSIONER MOSER: You haven't given us a lease 14 yet. 15 MR. WALTERS: No, we need to -- we've already 16 gotten comments back. 17 COMMISSIONER MOSER: So it hasn't changed? 18 MS. BAILEY: No, it hasn't changed. 19 MR. KING: Why don't we do this? Why don't we -- 20 so we'll be assured that the City and the County have the 21 lease, y'all have the lease, and we'll -- let's take seven 22 days for comments. 23 MR. WALTERS: We've already gotten comments. 24 MR. KING: Y'all -- everybody -- that includes 25 everybody's finished comments? 61 1 MR. WALTERS: Everybody's finished. Isn't that 2 right, Ilse? 3 MS. BAILEY: Yes. 4 MR. WALTERS: We got the County Attorney's 5 comments; we got the City Attorney's comments. 6 MS. BAILEY: Yes. 7 MR. KING: Is there anything -- is there anything 8 that -- but when I was in the meetings I had, they had some 9 things they wanted to add to the lease, and they were going 10 to send me an e-mail with those. Todd was going to send us 11 an e-mail. 12 MS. HARGIS: Which County Attorney? Rob? 13 MS. BAILEY: Heather. 14 MR. KING: I know Todd was going to send us a 15 couple of things he wanted to put in the lease. 16 MR. WOOD: Let's revise it and resubmit it. 17 MR. KING: Let's go ahead and get that done. 18 MAYOR PRATT: Take the comments you already have, 19 revise it, then resubmit it. 20 COMMISSIONER MOSER: Right. 21 MS. BAILEY: It has not changed since the last time 22 I sent it to the City and the County. 23 MR. KING: Did you ever -- did you ever get any 24 revisions and updates? 25 MAYOR PRATT: The comments -- 62 1 MR. WALTERS: We didn't get any. 2 MR. WOOD: I thought you said we did. 3 MR. WALTERS: No, when we got them back, there were 4 not -- when we sent it to them, Heather says, "Looks fine." 5 MR. KING: Mayor, I think Todd had some. 6 MAYOR PRATT: In our meeting, we had a couple 7 things we wanted to add. 8 MR. TITAS: I was at that meeting, too. They were 9 not -- that was not submitted. I have those. 10 MR. KING: Would you just send those notes to Ilse 11 so we can take a look? I think those were not -- 12 MR. WALTERS: Why don't you let Todd send them to 13 the City Attorney, and have the City Attorney send them to 14 Ilse. 15 MR. TITAS: Okay. 16 MR. KING: I think those comments Todd had, though, 17 were not legal or typographical errors; they were things that 18 they wanted addressed in -- 19 MR. TITAS: Terms. Additional terms. 20 MR. KING: Terms they wanted added to the lease. 21 Why don't you get Todd to get those things to Ilse. Ilse, 22 you distribute those to -- you can't do that, can you? 23 MR. McKENZIE: Todd needs to give them to Mike 24 Hays. 25 MAYOR PRATT: You can submit it to the board. 63 1 MR. KING: Can you distribute those to us? 2 MS. BAILEY: We -- I mean, we can't discuss it 3 outside an open meeting, but I can send it to everyone, as 4 long as you don't talk amongst yourselves about it. 5 COMMISSIONER MOSER: Send it to everybody. Send it 6 to the City and County. 7 MS. BAILEY: Yes. My other question -- my other 8 question, though, is do we need to have full action by the 9 Council and the Commissioners Court as they go ahead? Or do 10 they have someone designated to tell us, yes, it's good to 11 go? I don't want -- 12 COMMISSIONER MOSER: The County doesn't have 13 anybody designated to do that. 14 MS. BAILEY: Will they do that? 15 COMMISSIONER MOSER: Sure. 16 MS. BAILEY: 'Cause what I don't want to do is for 17 you to say it's good to go, and somebody else says -- 18 COMMISSIONER MOSER: You're not going to get any 19 Commissioner to say it's good to go. 20 MS. BAILEY: Exactly. I want the Court to tell me 21 it's good to go, and the Council to tell me it's good to go. 22 MR. KING: That's fine. I just would like to move 23 the process along. If nobody has any objections, let's sign 24 a lease with these guys, get them signed up. Then they'll be 25 happier and we'll be happier. And they just -- I mean, if 64 1 there's no objections. Let's move on, okay? 2 COMMISSIONER MOSER: Actually, Ilse's going to get 3 all of the comments, put them in a completed document, send 4 them to everybody; Airport Board, City, County, and then -- 5 MS. BAILEY: Then all the entities will take 6 necessary action to approve it. 7 MR. TITAS: And I'll pull it up today and find out 8 exactly what all those are. 9 MR. KING: There's only, like, three or four 10 things, -- 11 MR. TITAS: Yeah, it was -- 12 MR. KING: -- as I remember. I just never saw 13 those in -- 14 MR. WALTERS: Just -- if you would just have Mike 15 write them the way he'd like to see them. 16 MR. TITAS: Exactly. 17 MR. WALTERS: And give it to Ilse. 18 MR. TITAS: And funnel it. 19 MR. KING: That's right. Then we'll look at the 20 lease. If we want to strike them or discuss more about it, 21 then it will be in the lease. Okay, good idea. 22 MR. WALTERS: And we'd appreciate it if it's not 23 just a concept; that Mike Hays will actually write the 24 language. 25 MR. TITAS: Sure. 65 1 MS. BAILEY: He's pretty good about doing that; he 2 sends me back red-line copies. 3 COMMISSIONER MOSER: And Ilse's going to send it 4 out. 5 MR. KING: Okay. Item -- anything else on this? 6 Item 5, general update. Bruce? 7 MR. McKENZIE: Mm-hmm. I took the advice of the 8 board at the last board meeting regarding our lighting the 9 taxiway. 10 MR. KING: I forgot about that, yeah. 11 MR. McKENZIE: And we're just going to do the blue 12 lights on the outside. That's what -- seemed like that was 13 the concurrence of the board, and not do the green center 14 line lights initially. Let's do the outside blue lights. 15 And the only place we're going to do the green lights are on 16 the four ingress and egress, the four taxi lanes. That will 17 give the pilot clear sight as to the outside and the center 18 line of every taxi lane off of 12/30. 19 MR. KING: However, are you going to -- 20 MR. McKENZIE: Going to come back into -- into the 21 taxiway. 22 MR. KING: Four or five lights or so? 23 MR. McKENZIE: Yeah, we're going to come into the 24 taxiway with them. 25 MR. KING: How many are we talking, total? 66 1 MR. McKENZIE: I don't have the amount, but 2 probably 200 or 300. It's $25,000, and I went ahead and I 3 moved forward with that process. 4 MR. KING: 25,000? 5 MR. McKENZIE: $25,000 RAMP grant, yes, sir. 6 MR. KING: Okay. 7 MR. McKENZIE: They've been ordered, and they 8 should be in and completed about the middle of June. 9 MR. KING: Oh, we're done? 10 MR. McKENZIE: It will be here, yes, sir. I think 11 you'll be quite pleased with it. 12 MR. KING: I was always quite pleased. 13 MR. McKENZIE: 370. 14 MR. KING: 370 lights we're going to have to 15 replace every five years. 16 MR. McKENZIE: The airports I've talked to have had 17 them in some of them five years, and haven't had that issue. 18 MR. KING: Really? 19 MR. McKENZIE: No, sir. 20 MR. KING: Okay. Good luck. 21 MR. WALTERS: So, when -- 22 MR. McKENZIE: We're going to be lighted. 23 MR. WALTERS: When they install them, will you have 24 our maintenance guy, Roy -- 25 MR. McKENZIE: Already talked to him. He'll be 67 1 right there with him. 2 MR. WALTERS: So when they pop off, he knows how to 3 reapply. 4 MR. KING: He can put them back down and 5 everything. 6 MR. McKENZIE: Yes, sir. I've already talked to 7 Roy. 8 MR. KING: I like the project, Bruce. I just don't 9 like the maintenance on them, personally. But we'll see how 10 it works. How far apart will the blue lights be spaced? 11 MR. McKENZIE: Fifty feet. 12 MR. KING: Fifty feet? Is that standard airport 13 spacing? 14 MR. McKENZIE: Yes, sir. 15 MR. KING: That's how far -- we don't have lights 16 right now? 17 MR. McKENZIE: No, sir, we have no lights on our 18 taxiways now. 19 MR. KING: No reflectors on the sides? 20 MR. McKENZIE: We have reflectors, but no lights. 21 MR. KING: What are you going to do about those 22 reflectors? 23 MR. McKENZIE: Take out every one of them. 24 MR. KING: You have to take them off? 25 MR. McKENZIE: Yes, sir, take all those up, and 68 1 we're going to leave the -- put the blue lights on the 2 outside. 3 MR. KING: Okay. 4 MR. McKENZIE: The blue lights will be on the 5 outside. There's blue reflectors on the outside now. 6 MR. KING: There is blue reflectors? 7 MR. McKENZIE: We'll take those out. Now, the 8 green ones that were in the middle, we're going to leave in 9 the middle, the reflectors. 10 MR. WALTERS: I never knew there was reflectors out 11 there on the outside. 12 MR. McKENZIE: They're hard to see. They're around 13 some of the taxiways, Corey. Now, they're not solid, but 14 they're in areas around the airport. There's -- 15 MR. KING: You're going to leave the reflectors in 16 the middle? 17 MR. McKENZIE: The green ones. 18 MR. KING: The green ones, the ones you can't see 19 anyway? 20 MR. McKENZIE: The ones you can't see anyway. 21 MR. KING: They're the ones where if you go over 22 them with your nose wheel, they go bam. 23 MR. WALTERS: Why are we going to leave those? 24 MR. McKENZIE: They reflect -- but they reflect. 25 They do reflect at night. 69 1 MR. KING: In day or night? 2 MR. McKENZIE: At night. They reflect on my pickup 3 lights. 4 MR. GRIFFIN: With the truck headlights, not with 5 your -- 6 MR. WALTERS: Your truck headlights are a lot 7 better than our -- 8 COMMISSIONER MOSER: Why don't you leave the blue 9 reflectors on the outside too? 10 MR. GRIFFIN: Yeah, why not space them in between? 11 COMMISSIONER MOSER: Why take them up? 12 MR. McKENZIE: Just to make sure we don't get into 13 a situation where were in noncompliance with our market. 14 MR. KING: I don't mind the ones on the outside. 15 The ones in the middle, if they're working, that's fine, but 16 those are just a real pain in the butt to run over, 17 personally. I mean, they really are. 18 MR. McKENZIE: But they're not on the center line; 19 they're 18 inches off the center line. 20 MR. KING: I have a 50-foot wingspan; I try to stay 21 in the middle. 22 MR. GRIFFIN: He's trying to tell you, they're 18 23 inches off center. 24 MR. KING: Boy, that's a -- they're not -- there's 25 a line there also? There's no line down the middle. There's 70 1 a line? 2 MR. McKENZIE: Yeah, there's a line down the 3 middle. 4 MR. KING: There's a line of reflectors. 5 MR. McKENZIE: There's a yellow line. 6 MR. KING: You're saying those reflectors are off 7 the center line? 8 MR. McKENZIE: 18 inches off the center line. 9 MR. KING: Boy, that doesn't seem right. 10 MR. McKENZIE: That's the standard way. 11 MR. KING: When you have 50-foot wings, even in the 12 middle, your wings are over the grass already. 13 MR. McKENZIE: I understand. 14 MR. WOOD: If you're hitting those reflectors, you 15 need to move over 18 inches. 16 MR. KING: There it is. I've never seen them lit 17 up. 18 MR. GRIFFIN: Learn something new all the time. 19 MR. McKENZIE: I also incorporated in that -- 20 you've been asking me about the "no outlet" sign. We're 21 going to put five and five on each side of the center line 22 that are red, and they're LED lights. At night, they're 23 going to be red; you're going to see that. You have to pay 24 attention when you drive up -- when you taxi up there at 25 night, or the daytime. It's going to reflect red. 71 1 MR. WALTERS: Good. 2 MR. McKENZIE: Maybe you'll pay attention to the 3 "no outlet" sign. This is incorporated in this as well. 4 MR. KING: Okay. 5 MR. GRIFFIN: Good idea. 6 MR. KING: That's good. Okay. 7 MR. McKENZIE: The fly-in results, I went over this 8 a while ago. It was dismal, at best. The new T-hangar 9 scheduling and leasing, I mean, the scheduling, Robert, as of 10 Friday afternoon, is still staying with the schedule. The -- 11 MR. GRIFFIN: Yeah. 12 MR. McKENZIE: -- foundation folks are supposed to 13 be in here this week. They moved equipment in last week; 14 they're supposed to be in sometime this week to start the 15 foundation process. And he may -- he said he may adjust that 16 next month. 17 MR. GRIFFIN: Okay. I was going to say -- and just 18 for everybody's, kind of -- if we look at this schedule, 19 we're sitting on the 19th of May; we're about three and a 20 half weeks late on starting the foundation, according to the 21 schedule, and about two weeks late on the hangar delivery 22 itself. 23 MR. McKENZIE: Okay. And the reason for that is 24 the -- he was not going to commit to erect a tube for that 25 until the City gave him a set of plans back that were 72 1 approved. 2 MR. GRIFFIN: Right. 3 MR. McKENZIE: Now they're -- now he's in the queue 4 to get the steel delivered. 5 MR. GRIFFIN: And that's what I was going to say, 6 Bruce. We're -- we're on -- the hangar delivery's not on the 7 critical path; however, the foundation is. And so basically 8 what Robert's telling us, just kind of a synopsis of what I 9 got from him on Friday, is that we're -- we're pushing the 10 critical path to get the third week of August, so we may -- 11 next month he'll have a better feel for -- 12 MR. McKENZIE: Correct. 13 MR. GRIFFIN: -- what his actual final -- 14 MR. McKENZIE: That's correct. That's why I've 15 always said since last February, it will probably be Labor 16 Day weekend. 17 MR. GRIFFIN: So we're still shooting for about 18 Labor Day. But just realizing that our -- we're -- we've 19 eaten up all the pad to get to the third week of August. 20 MR. KING: Right, okay. 21 MR. McKENZIE: We've leased -- I've got five 22 T-hangars leased. I went through 18 to get five, and I'm -- 23 the rest -- we are going to fill the hangars. But that's -- 24 MAYOR PRATT: How many remaining? 25 MR. McKENZIE: 44, 24, 35 -- I've still got 35 73 1 left. 2 MAYOR PRATT: How much? 3 MR. McKENZIE: I've still got at least 27 left. 4 MAYOR PRATT: 27 left. So out of 27, you hope to 5 get seven more? 6 MR. McKENZIE: Yes. 7 MR. WOOD: When you say you went through 18 and you 8 got five, that means when you asked them for the first -- 9 MR. McKENZIE: They never -- 10 MR. WOOD: -- month's rent -- 11 MR. McKENZIE: They ran into her office within an 12 hour. 13 MR. WOOD: But there was 13 of them that said, 14 "Thanks, but no thanks"? 15 MR. McKENZIE: That's right. 16 MR. GRIFFIN: The good thing is that the names that 17 are lower on the list are the guys that have inquired more 18 recently. We had to -- we had to go back and ask the old 19 ones -- 20 MAYOR PRATT: I understand. I'm just trying to get 21 an indication, but I want to know how many of those came from 22 another airport of those five. 23 MR. McKENZIE: None so far. 24 MAYOR PRATT: None, okay. 25 MR. McKENZIE: A couple of them are, Mayor. That 74 1 I -- they're just ready. When I call them, they're going to 2 go, but I've got to get to them. 3 MAYOR PRATT: Because that's really what we want. 4 MR. GRIFFIN: But it's twofold. One is if we're -- 5 some of these airplanes are moving out of the bigger hangars 6 into there, but that opens up space in the bigger hangars for 7 other aircraft, so -- 8 MR. WOOD: There is a new resident out at Comanche 9 Trace waiting to buy his airplane until he knows he's got a 10 hangar for it. 11 COMMISSIONER MOSER: When's your anticipated 12 schedule to contact all these people? 13 MR. McKENZIE: Already started last -- started last 14 Monday. 15 MAYOR PRATT: Already got five. 16 COMMISSIONER MOSER: I understand. So that when do 17 you think it will be complete? 18 MR. McKENZIE: That's a subjective question, 19 because I've got to call them, and, I mean, it may be two 20 days before I get ahold of them, and then I'm going to give 21 them 24 hours -- Steve and I talked about it, to give them 24 22 hours to either make a move or you're out. You know, that 23 could -- that process could take three days with just one 24 individual, but I've got five in four days. 25 COMMISSIONER MOSER: Super. 75 1 MAYOR PRATT: But you could go through -- if you 2 got seven hangars, you can go through seven people at one 3 time, okay, so you're not going to go one and one and one. 4 You can go to seven straight. 5 MR. McKENZIE: I'm pretty sure -- I know we've got 6 it nailed. 7 MAYOR PRATT: That will just speed up the process. 8 MR. McKENZIE: We're getting there. 9 MR. KING: Okay. 10 MR. McKENZIE: And then you wanted a fuel flowage 11 spreadsheet every month, so it's in the back of your packet. 12 MR. KING: Okay. 13 MR. WOOD: Did Joey say anything about why he 14 bought so much avgas? 15 MR. GRIFFIN: He's right there. 16 MR. WOOD: There he is. You spent a lot of money 17 on avgas this month for people. 18 MR. KENNEDY: Avgas is just expensive. But we just 19 happened to have gotten a load at the end of the month. 20 MR. WOOD: Okay. 21 MR. KENNEDY: We had the MAPA fly-in. 22 MR. WOOD: Yeah. 23 MR. KENNEDY: Which we only sold maybe 2,000 24 gallons. 25 MR. KING: Okay. 76 1 MR. McKENZIE: That's all I've got. 2 MR. KING: Do you want to go back and take that 3 Item 4D under executive session? 4 MR. WALTERS: Yeah, let's do it. 5 MR. KING: We're going to take Item 4D, Gemini 6 Aviation, James Gandy update, in executive session under 7 Section 551.071, -.072, and -.087. So, we'll recess for five 8 minutes, and then -- 9 MAYOR PRATT: Need a motion. 10 MR. KING: I need a motion to do that. 11 MR. WALTERS: Motion -- I make a motion that we 12 take into executive session the Gemini Aviation -- 13 MR. KING: 4D. 14 MR. WALTERS: -- 4D, Gemini Aviation, James Gandy 15 update and proposal and letter. 16 MR. KING: All right. And seconded by somebody? 17 MR. WOOD: I'll second. 18 MR. KING: Discussion? None being heard, all in 19 favor? 20 (The motion carried by unanimous vote, 4-0.) 21 MR. KING: Okay. So, we'll take a break, and we'll 22 talk about that. 23 (The open session was closed at 9:54 a.m., and after a 5-minute recess, an executive session was 24 held off the record.) 25 - - - - - - - - - - 77 1 MR. KING: Okay, we went into executive session at 2 10:05; we came out of executive session at 10:38, and we are 3 going to take some action on Item 4D, the Gemini Aviation 4 hangar -- or Gemini Aviation business proposed at the 5 airport. We are going to -- what are we going to do, Ilse? 6 MS. BAILEY: We're going to -- as per the 7 requirements of Section 2F of the airport code, we're going 8 to approve the F.B.O. subcontracting with Gemini Aviation, 9 d/b/a Dugosh, to do aircraft repair services at the F.B.O., 10 and subject to Mr. Gandy providing us four items that we told 11 him we needed; the Articles of Incorporation, rates and 12 charges, the lease that he has with Joey, and -- 13 MR. McKENZIE: D/B/A certificate. 14 MS. BAILEY: And the D/B/A certificate. 15 MR. KING: Okay. Someone like to put that in a 16 motion, basically what she said? 17 MR. WOOD: I'll make a motion that we do the things 18 Ilse said. 19 MS. BAILEY: I wish everyone would do that for me. 20 MR. KING: Second? 21 MR. GRIFFIN: I'll make it. 22 MR. KING: Second by Kirk. Any discussion on that? 23 No discussion being heard, all in favor? 24 (The motion carried by unanimous vote, 4-0.) 25 MR. KING: Four-zero. The motion is approved. 78 1 Okay. 2 MR. GRIFFIN: Make a motion we adjourn. 3 MR. KING: Motion to adjourn. 4 MR. WOOD: I second. 5 MR. KING: All in favor? 6 (The motion carried by unanimous vote, 4-0.) 7 MR. KING: Four-zero. We're adjourned at 10:40. 8 Okay, thank you. 9 (Airport Board adjourned at 10:40 a.m.) 10 - - - - - - - - - - 11 12 STATE OF TEXAS | 13 COUNTY OF KERR | 14 I, Kathy Banik, official reporter for Kerr County, 15 Texas, do hereby certify that the above and foregoing is a 16 true and complete transcription of my stenotype notes taken 17 at the time and place heretofore set forth. 18 DATED at Kerrville, Texas, this 21st day of May, 2014. 19 20 _______________________________ Kathy Banik, Texas CSR # 6483 21 Expiration Date: 12/31/14 Official Court Reporter 22 Kerr County, Texas 700 Main Street 23 Kerrville, Texas 78028 Phone: 830-792-2295 24 25