KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD Special Meeting Monday, June 2, 2014 8:30 a.m. Airport Terminal Conference Room 1877 Airport Loop Road Kerrville, Texas MEMBERS PRESENT: Corey Walters, Vice-President Bill Wood Kirk Griffin Ed Livermore NOT PRESENT: Stephen W. King, President AIRPORT BOARD STAFF PRESENT: Bruce McKenzie, Airport Manager Carole Dungan, Executive Assistant COUNTY STAFF PRESENT: None VISITORS: Willy Carroll, LDB Corporation Joe Kennedy, Pres. Kerrville Aviation 2 1 I N D E X June 2, 2014 2 PAGE 3 CALLED TO ORDER 3 4 1 VISITORS FORUM 3 5 2 DISCUSSION AND POSSIBLE ACTION 6 2A Brinkman Hangar Lease(s) (Executive Session as needed) 3 7 Executive Session 18 8 3 ADJOURNMENT 20 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 1 On Monday, June 2, 2014, at 8:30 a.m., a 2 special meeting of the Kerrville-Kerr County Joint 3 Airport Board was held in the Airport Terminal 4 Conference Room, Louis Schreiner Field, Kerrville, 5 Texas, and the following proceedings were had in open 6 session: 7 P R O C E E D I N G S 8 MR. WALTERS: Opening this special 9 meeting of the Kerrville-Kerr County Joint Airport 10 Board on Monday, June the 2nd at 9:08 a.m. and call to 11 order. 12 Visitors forum, at this time any person with 13 business not scheduled on the agenda may speak with the 14 Airport Board. No deliberation or action can be taken 15 on these items. Because of the Open Meetings Act, it 16 requires a matter be posted on the agenda 72 hours 17 before the meeting. Visitors are asked to limit their 18 presentation to three minutes. 19 Do we have anybody that would like to speak 20 at this time? Please do so. None -- none heard. None 21 requested. 22 Discussion and possible action, we have item 23 2A, the Brinkman Hangar Lease(s) and executive session 24 as needed. Bruce, I'll let you take it from -- 25 MR. McKENZIE: All right. Thank you, 4 1 Corey. In your packet you'll see a schematic, and this 2 schematic was derived from the work done by David 3 Martin -- 4 MR. GRIFFIN: Uh-huh. 5 MR. McKENZIE: -- that was employed to 6 evaluate the hanger, and we took that along with the 7 plans that we found in Charlie Thomas' office that we 8 finally located, and that's where the -- the graphics 9 came from. 10 We have an offer on the table to lease half 11 of this hangar which would be the -- we're going to 12 call it east and west for the lack of simplicity. 120A 13 that you see marked in Exhibit A, that's half of the 14 Brinkman Hangar, which we have now determined we're 15 going to remain calling it the Brinkman Hangar, for 16 $3,000 a month. 17 MR. WALTERS: That is located on the 18 north side of -- 19 MR. GRIFFIN: Northwest side. 20 MR. McKENZIE: Northwest side, yes, 21 sir. Uh-huh. 120A is marked in your exhibit. 22 MR. LIVERMORE: But that includes 130 23 134, 103 -- 24 MR. McKENZIE: It includes 130, 134A, 25 and then offices 102 and 103 on the right-hand side, 5 1 Ed. 2 MR. LIVERMORE: Yeah. I've got them 3 here. 4 MR. McKENZIE: It includes that space 5 and those two offices and the -- for three -- the offer 6 was $3,000 per month. 7 MR. LIVERMORE: Now, we still have 8 office 102 and 100. 9 MR. McKENZIE: 101 and 100. 10 MR. LIVERMORE: 101 and 100? 11 MR. McKENZIE: Yes, sir. That's 12 correct. 13 MR. LIVERMORE: That's not in this -- 14 not in that deal. 15 MR. McKENZIE: That's correct. 16 MR. WALTERS: I have a question. I 17 understand that -- that -- that Granger wants to make 18 some improvements in terms of adding a shower to the 19 premises, his proposed lease premises. Do we know 20 where that shower will be? 21 MR. McKENZIE: He hasn't indicated as 22 of yet, Corey, where it's going to be, but the obvious 23 place would be in that first restroom there that's 24 adjacent to office 100 because the plumbing is intact 25 there, but I have not had that conversation with 6 1 Granger. 2 MR. LIVERMORE: But he's not renting 3 office 100 -- 4 MR. McKENZIE: That's correct. This is 5 the -- 6 MR. LIVERMORE: -- or 101. 7 MR. McKENZIE: That's correct. Uh-huh, 8 but it's going to be very difficult as I understand it, 9 and Kirk and I have looked at this several times, to 10 put a bathroom or a shower over there in 102 or 103 11 because the logistics of the plumbing is just -- 12 MR. WALTERS: Yeah. 13 MR. McKENZIE: And I'm not a builder 14 but -- 15 MR. LIVERMORE: Well, does that -- 16 MR. CARROLL: Well, 'cause there is -- 17 MR. LIVERMORE: Huh? 18 MR. CARROLL: I'm sorry. 19 MR. McKENZIE: No, go ahead. 20 MR. CARROLL: There is a shower there 21 actually in the -- right by -- right by the south -- 22 the south -- what, 330 corner of Granger's area. Right 23 in there, there is a shower. We're using it for a 24 cleaning closet right now. 25 MR. GRIFFIN: Really? 7 1 MR. McKENZIE: Oh, by 102 -- 2 MR. GRIFFIN: Okay. 3 MR. McKENZIE: Do you have a -- do you 4 have a picture of this, Willy? You looking at the same 5 thing we are? 6 MR. CARROLL: Yeah. 7 MRS. DUNGAN: Yeah. 8 MR. McKENZIE: Yeah. Show -- what 9 number? 10 MR. CARROLL: Right about there I think 11 it is. 12 (Discussion off the record.) 13 MR. McKENZIE: So there's a shower in 14 there? 15 MR. CARROLL: Uh-huh. Yeah. It's all 16 cleaning closets full of -- 17 MR. McKENZIE: Yeah. That's what I was 18 thinking. That's why -- 19 MR. WALTERS: Where is it at? 20 MR. GRIFFIN: Right between the 21 bathrooms I guess. Is that where you're saying, Willy? 22 MR. WALTERS: Oh. Oh, okay. I know 23 where. I thought it was full of cleaning -- 24 MR. CARROLL: It is. 25 MR. WALTERS: Okay. 8 1 MR. GRIFFIN: Well, then that probably 2 resolves -- 3 MR. McKENZIE: Only time I've ever 4 opened it, it was full of stuff. 5 MR. GRIFFIN: Cleaning supplies. 6 MR. McKENZIE: So perhaps that -- 7 perhaps that will meet his criteria. 8 Thanks, Willy. That's Willy Carroll. 9 MR. LIVERMORE: Well, where -- 10 MR. WALTERS: Okay. 11 MR. LIVERMORE: That's a shower. 12 MR. WALTERS: Well, let's just -- if it 13 does -- my question is in some of this is let's say if 14 he says, You know what? That's too kind of out in the 15 open or something, and I really want to put it in the 16 bathroom, et cetera, et cetera. Does he understand 17 that -- I mean, if he adds that there, that those are 18 still kind of facilities for the tenants? He's not 19 thinking that he gets that as a private shower or 20 bathroom facility, does he? 21 MR. McKENZIE: We haven't had that 22 conversation. 23 MR. GRIFFIN: Yeah. I can't imagine 24 that he would think that it was 'cause he's -- 25 MR. LIVERMORE: Well, it looks to me 9 1 like it opens right out into the -- 2 MR. GRIFFIN: Well, it does. It opens 3 right into the hangar. I mean, you could take that 4 breakroom area and make a shower or an ADA-compatible 5 bathroom out of it but... 6 MR. WALTERS: Well, I'm just wondering. 7 I mean, let's say if he says, No, I don't want to, you 8 know, use the shower that's there or whatever. I still 9 want to move it, you know, and create one, take out one 10 of the other stalls and put it in where that 11 bathroom -- the existing bathroom is. I mean, I just 12 think that that's probably a conversation that we need 13 to have that, you know, it's not -- 14 MR. GRIFFIN: Agreed. 15 MR. WALTERS: That's not your private 16 bathroom, you know, Granger. 17 MR. GRIFFIN: I think we ought to let 18 you have that conversation. 19 MR. WALTERS: I mean, that's fine. 20 MR. WOOD: I -- I have a question, and 21 maybe I've missed out on something, but how did Granger 22 end up with that? Were there bids or were there -- 23 MR. McKENZIE: Yes, sir. 24 MR. WOOD: -- special requests? 25 MR. McKENZIE: Yes, sir. We -- we put 10 1 this all out to the public many, many months ago. I 2 don't have the dates, but it was many months ago. 3 MR. GRIFFIN: We're -- this is based 4 off of the existing bids that we received prior to the 5 agreement with Ronnie Salamon. 6 MR. WOOD: Uh-huh. 7 MR. McKENZIE: And this is in writing. 8 Originally Granger offered us 2500 a month for half of 9 it, and now he's come back and said he'd give us 3,000 10 for half. 11 MR. KENNEDY: Were the other parties 12 that were -- that put in proposals and requests for 13 that given the opportunity to change their proposals as 14 well? I have a question. 15 MR. WALTERS: I think you did change 16 your -- your initial proposal. 17 MR. KENNEDY: Not since any 18 discussion -- I've not had a single discussion with 19 anyone about the situation with the board since the 20 board sat here and told us that we were going to have 21 an opportunity to lease half of that hangar to pursue 22 the people that we were discussing this stuff with 23 which got the plug pulled because someone at the board 24 level openly discussed the names of the people we were 25 discussing in public and somebody from EIC called -- 11 1 contacted them and they pulled the plug, and since that 2 point we've not had any discussion with anyone, nor 3 have we had an opportunity to change our -- our bid or 4 anything -- or not bid, but proposal. 5 MR. WALTERS: I mean, I recall, Joe, 6 you had came in with a proposal for all of it, and then 7 later on 'cause -- 8 MR. KENNEDY: And then -- 9 MR. WALTERS: -- you modified your 10 proposal for half of it. 11 MR. KENNEDY: Then we were told -- yes. 12 Then we were told that -- that we were going to -- you 13 were going to do something different with the half, and 14 we all changed our proposals for half, and my 15 understanding was that all those proposals at that 16 point were the same, and now it sounds like 17 Mr. McDonald has upped his proposal from that original 18 time. 19 Was his proposal this amount originally when 20 we all turned in proposals? That would be my question 21 'cause if he's had an opportunity to change that 22 proposal and no one else was given one, it's kind of an 23 issue. 24 MR. LIVERMORE: (Inaudible.) 25 THE REPORTER: I didn't hear you, 12 1 Mr. Livermore. 2 MR. LIVERMORE: I was sort of thinking 3 out loud. I said maybe we should just let everyone 4 give us a new proposal. Might make more money. 5 MR. WOOD: Well, the point of my 6 question was I don't recall the entire board sitting 7 and discussing, you know -- after we established that 8 the apparent winning bid, Ronnie Salamon, was not going 9 to work out, I don't recall us going back and looking 10 at all the bids again. That's the only thing I'm 11 saying. 12 MR. GRIFFIN: We didn't. 13 MR. LIVERMORE: We didn't. 14 MR. GRIFFIN: We haven't. 15 MR. McKENZIE: We were going off of 16 everything that was previously turned in, and I've got 17 -- I've got those right here. 18 MR. WALTERS: I think, Bruce -- we 19 didn't do it in terms of, okay, let's go back out. I 20 think, Bruce -- 21 MR. GRIFFIN: Took the existing. 22 MR. WALTERS: -- took the existing 23 proposals and also based on a conversation that Steve 24 King had with Granger for -- to lease half of it. 25 MR. WOOD: Right. 13 1 MR. WALTERS: And I think then Bruce 2 said, okay. Well, I'm going to take that to the board 3 in an effort to try to as soon as possible generate 4 income out of the hangar more than what we're getting 5 today. 6 MR. LIVERMORE: Yeah. 7 MR. McKENZIE: That's correct. 8 MR. WOOD: So that's -- that's where we 9 are now then. Okay. 10 MR. GRIFFIN: Does that -- 11 MR. LIVERMORE: Joe, do you want to 12 submit a new proposal? 13 MR. KENNEDY: We would have had we been 14 given the opportunity to. 15 MR. LIVERMORE: No. I didn't ask you 16 that. 17 MR. KENNEDY: We were ready to do 18 the -- 19 MR. LIVERMORE: Joe, Joe, I want to ask 20 you, yes or no, do you want to submit a new proposal? 21 MR. KENNEDY: Yes. 22 MR. LIVERMORE: Okay. Thank you. 23 Well, then I think we should allow it. 24 MR. WALTERS: And -- let's take -- 25 let's discuss that in executive session. 14 1 MR. McKENZIE: Sure. 2 MR. WALTERS: I'm not saying we should 3 or shouldn't. I'd just like to get all the members to 4 discuss this in executive session. 5 MR. GRIFFIN: That's fine. 6 MR. LIVERMORE: Okay. 7 MR. WALTERS: At this time I -- 8 MR. LIVERMORE: I move -- do you want 9 me to move -- I move we enter executive session. 10 MR. KENNEDY: Before we do that, can I 11 make one other -- one other comment on the issue? 12 There's also some discussion around the airport that 13 I'm -- our -- our chairman of our board sat in this 14 room and made an open statement that the object was to 15 either attract new airplanes in leasing this hangar 16 or -- or a business, something that would create jobs 17 to do things like that, and his exact words were, We 18 don't want to just shuffle airplanes around on the 19 airport because that doesn't do anything better -- 20 anything new for the airport. 21 I'm understanding now that there's been some 22 contact between board members and existing customers of 23 Kerrville Aviation to solicit my customers that we've 24 worked long and hard to obtain -- 25 MR. GRIFFIN: And I take offense to 15 1 that, Joe, because the answer to that is no. 2 MR. LIVERMORE: Joe, the word -- 3 MR. KENNEDY: And I know if that's -- 4 MR. LIVERMORE: The word "solicit" is 5 not correct. 6 MR. GRIFFIN: Yeah. Don't -- don't go 7 there. Don't go there. 8 MR. KENNEDY: I don't know if that's -- 9 that's true or not, but -- but I would caution -- 10 MR. GRIFFIN: No. You said it -- Joe, 11 you said that it was true. 12 MR. KENNEDY: No. I said that I've 13 been hearing that that had -- might have been taking 14 place. I just would like to caution -- if -- 15 MR. GRIFFIN: Don't threat -- don't try 16 to direct the board, Joe. 17 MR. KENNEDY: No, I'm not. No, I'm 18 not. I -- 19 MR. GRIFFIN: Don't caution this board. 20 MR. KENNEDY: Okay. I don't think it's 21 healthy for a -- 22 MR. GRIFFIN: Okay. 23 MR. KENNEDY: -- a tenant to have to 24 feel like he's in competition with his landlord, and I 25 know -- 16 1 MR. GRIFFIN: Joe -- 2 MR. KENNEDY: -- that the FAA frowns 3 upon it. 4 MR. GRIFFIN: -- at -- at no point 5 did -- have we done or will we -- 6 MR. KENNEDY: Okay. 7 MR. GRIFFIN: -- do anything to put 8 a -- 9 MR. KENNEDY: And that's fine. 10 MR. GRIFFIN: -- to be in competition 11 with you. We're not in competition with you. 12 MR. KENNEDY: Okay. 13 MR. GRIFFIN: We rent hangar space 14 today. 15 MR. KENNEDY: Okay. 16 MR. GRIFFIN: And if -- and if we have 17 a facility that somebody can move into and they choose 18 to move into that facility versus the facilities that 19 you offer, that's been existing on this field for 17 20 years since those first T-hangars were built. So, you 21 know, I -- don't -- don't -- don't caution this board. 22 Don't tell this -- don't try to tell this board what to 23 do. 24 MR. KENNEDY: Well, I'm not in any way. 25 MR. GRIFFIN: Well, you -- you did. 17 1 MR. KENNEDY: Okay. 2 MR. GRIFFIN: Okay. I understand your 3 input, and I understand where you're coming from, but 4 for six -- for almost 17 years now this airport has 5 leased hangar space. This hangar space isn't any 6 different than that. Okay. 7 MR. KENNEDY: Okay. 8 MR. WALTERS: I mean, it -- this 9 board's job is -- is to -- is to do what they feel like 10 is in the best interest of the ai rport and what's in 11 the best interest of its owners, and we have a facility 12 over there that we're trying to generate income on 13 which will benefit the owners, and -- and, yes. I 14 understand your point is you feel like, you know, well, 15 it may -- you know, some of that may be competition to 16 you. We're not asking you to -- you know, try to run 17 your business, and I don't think you should ask us to 18 try to run ours. 19 MR. KENNEDY: I know. 20 MR. WALTERS: Okay. We'll move into 21 executive session. 22 MR. GRIFFIN: Do we have a second or -- 23 MR. WOOD: I second. 24 MR. LIVERMORE: Oh, did you? 25 MR. WOOD: Well, I didn't, but I did. 18 1 I am now. 2 MR. WALTERS: Okay. We move into 3 executive session at 9:21. 4 (Open session was closed at 9:21 a.m. 5 and an executive session was held off 6 the record.) 7 MR. WALTERS: We're coming back into -- 8 out of executive session coming back into open session 9 at 10:44, and we've been discussing the Brinkman Hangar 10 lease(s), and I'd like to ask for a motion for -- to 11 lease space based on the proposals that we've received 12 for the Brinkman Hangar, for spaces at the Brinkman 13 Hangar building. 14 MR. WOOD: All right. I make a motion 15 that based on the original proposals that were received 16 from all parties, that as the -- since the first bidder 17 did not agree to the leases, we're going to the second 18 leaseholder, and he's agreed to lease space 120A and 19 two offices. We went to the third acceptable bidder 20 and he wants to lease 120D plus office 111. We went to 21 the fourth bidder. He wants 120C with office 112, and 22 then space 120B is available, and that's offered to 23 Kerrville Aviation if they want it, and the motion is 24 to go ahead with these leases subject to getting all 25 the lease verbiage worked out. 19 1 MR. WALTERS: Do I have a second? 2 MR. GRIFFIN: I'll second. 3 MR. WALTERS: And I'm going to, excuse 4 me, abstain from voting on that motion. 5 MR. WOOD: Any discussion? 6 MR. WALTERS: Any discussion? 7 Call for a vote. 8 MR. LIVERMORE: Aye. 9 MR. WOOD: Aye. 10 MR. GRIFFIN: Aye. 11 MR. WALTERS: Motion carries three-zero 12 by Mr. Livermore -- 13 MR. LIVERMORE: One abstention. 14 MR. WALTERS: Pardon me? 15 MR. LIVERMORE: One abstention. 16 MR. WALTERS: And one abstention. 17 Mr. Livermore, Mr. Griffin, Mr. Wood. 18 (Motion carries 3-0, one abstention.) 19 MR. GRIFFIN: Good deal. All right, 20 Bruce. It's all yours. 21 MR. McKENZIE: Okay. 22 MR. WALTERS: If there's no other 23 business before the board, we'll conclude this meeting 24 at 10:46. 25 MR. GRIFFIN: Motion we close. Second? 20 1 MR. LIVERMORE: Oh, I'm sorry. 2 MR. GRIFFIN: Make a motion to -- 3 MR. LIVERMORE: I'm sorry. I was 4 thinking of something else. What? 5 MR. WALTERS: Make a motion. 6 MR. LIVERMORE: I move we adjourn. Is 7 that what you need? 8 MR. WALTERS: Yes. 9 MR. GRIFFIN: Yeah. I second. We're 10 good. 11 MR. WALTERS: All in favor. 12 (The motion carried by unanimous vote.) 13 (Meeting adjourned at 10:47 a.m.) 14 15 16 17 18 19 20 21 22 23 24 25 21 1 REPORTER'S CERTIFICATE 2 THE STATE OF TEXAS ) 3 COUNTY OF KENDALL ) 4 I, Lisa C. Greenwalt, Certified Shorthand 5 Reporter in and for the State of Texas, do hereby 6 certify that the above and foregoing contains a true 7 and correct transcription of my stenotype notes taken 8 at the time and place which were reported by me. 9 WITNESS MY OFFICIAL HAND this the 9th day of 10 June , 2014. 11 12 ___________________________ 14 Lisa C. Greenwalt, CSR 6067 Expiration Date: 12/31/2015 15 Greenwalt Court Reporting 245 Waring-Welfare Road 16 Boerne, Texas 78006-7926 (830) 537-4223 17 18 19 20 21 22 23 24 25