1 2 3 4 KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 5 Regular Meeting 6 Monday, July 21, 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 Jonathan Letz, Commissioner Pct. 3 20 James Robles, Assistant Auditor 21 CITY STAFF PRESENT: 22 Sandra Yarbrough, Finance Director 23 VISITORS: 24 Ilse Bailey, Airport attorney Robert Lansford, Lansford Company 25 Jonas Titas, Kerr Economic Development Corporation Barry Hodkin, Mooney International Corporation 2 1 I N D E X July 21, 2014 2 PAGE 3 CALLED TO ORDER 4 1. VISITORS FORUM - 5 2. KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD MEMBER FORUM - 6 3. CONSENT AGENDA 7 3A Approval of June 18, 2014 board meeting minutes 4 8 4. DISCUSSION AND POSSIBLE ACTION 4A Monthly financials (June 2014) 4 9 4B T-hangar update 10 10 4C Facility options: Buildings 18 & 19, the 11 horseshoe-shaped building, and the paint hangar 21 12 4D Mooney lease 31 13 4E Mooney roof consultant 40 14 5. INFORMATION AND DISCUSSION: 5A General update 47 15 6. EXECUTIVE SESSION -- 16 7. ADJOURNMENT 52 17 18 19 20 21 22 23 24 25 3 1 On Monday, July 21, 2014, at 8:40 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, July 21st, 2014. 9 Item 1, Visitors' Forum. At this time, any person with 10 business not scheduled on the agenda may speak with the 11 Airport Board. No deliberation or action may be taken on 12 these items because the Open Meetings Act requires it to be 13 posted for 72 hours. Visitors are asked to limit their 14 presentations to three minutes. Anybody? Item 2; 15 Kerrville/Kerr County Joint Airport Board Forum. At this 16 time, any member of the Airport Board may speak to the -- 17 speak to the board or the public on any matter not scheduled 18 on the agenda. No action can be taken because Open Meetings 19 Act requires the item to be posted for 72 hours. Anybody 20 have anything on that? 21 MR. GRIFFIN: No, sir. 22 MR. KING: Item 3; Consent agenda. All items 23 listed within the consent agenda are considered routine by 24 the board and will be enacted in one motion. There will not 25 be separate discussion of items unless a board member or 4 1 citizen so requests, in which event each item will be removed 2 from the general order of business and considered in normal 3 sequence. I believe the minutes of the -- 4 MR. GRIFFIN: Just the minutes. 5 MR. KING: Minutes of the last meeting. Motion to 6 approve? 7 MR. WALTERS: Motion to approve the minutes of 8 April -- of June 18th, 2014. 9 MR. KING: Second? 10 MR. WOOD: I'll second. 11 MR. KING: Second by Mr. Wood. Any discussion? 12 None being heard, all in favor? 13 (The motion carried by unanimous vote, 4-0.) 14 MR. KING: 4-0. Item 4; discussion and possible 15 action. Monthly financials. James. 16 MR. ROBLES: Morning, everyone. 17 MR. WOOD: Morning. 18 MR. ROBLES: All right, we'll get started on Page 19 1. This is the balance sheet ending June 30th. Total cash 20 and receivables, 376,567.42. Payables at 95,047.50. Page 2, 21 total equity. Revenue in fund balance, 281,509.92. Page 3 22 is the revenue. Monthly revenue is 46,502.38. You can see 23 we're about 12,000 ahead of where we were last year. And 24 also, we have the Brinkman Hangar with 6,000 for the month of 25 June. Page 4, salary and benefits for staff this month is 5 1 16,353.64. Page 5 is personnel, supplies, maintenance, 2 professional services. We did have budget amendments last 3 time, I believe, where we took out 3,000 from chemical and 4 medical supplies; we made that change. And also 4,000 from 5 instruments and apparatus; we also made that change. You can 6 see there's a few items on the -- where we're getting kind of 7 low, I should say. Professional services, we got 4 percent 8 budget. Wearing apparel, general repairs, legal services, 9 something to keep an eye on. 10 MR. GRIFFIN: We're also getting to the end of the 11 year, so -- 12 MR. ROBLES: Yeah. Okay. Page 6, total for all 13 the expenses is 9,701.85. 14 COMMISSIONER MOSER: On Page 6, are there any -- 15 were there any large expenditures, single items or anything 16 scheduled by the end of the year? 17 MR. McKENZIE: On this, no, sir, not within the end 18 of this fiscal year. 19 MS. DUNGAN: Maybe one more mowing cycle, but 20 that's it. 21 MR. McKENZIE: If it rains. 22 MS. DUNGAN: Yes. 23 COMMISSIONER MOSER: In great shape. Okay, thank 24 you. 25 MR. McKENZIE: You're welcome. 6 1 MR. GRIFFIN: How about air conditioning? 2 MR. McKENZIE: The other one went out already. 3 MS. DUNGAN: Those are coming out of RAMP, though. 4 MR. ROBLES: Page 7 is utilities, 588.08. Total 5 expenditures for the month of June is 26,643.57. 6 MR. WOOD: Can I ask a question? On Page 7, I'm 7 just not quite sure I understand something, or maybe you told 8 me before and I forgot. Where the original budget, far 9 left-hand column, says 380,514, and then current budget is 10 461,181, tell me what that's saying. 11 MR. ROBLES: I think most of that is probably 12 coming from -- on Page 6, the T-hangar-airport, Line 13 47-800-675, we put 80,000 that we didn't have in the original 14 budget there. 15 MR. WOOD: Oh, okay. So that's just modifying the 16 budget to agree with what we're doing. 17 MR. ROBLES: Yeah, that's probably something we 18 didn't have right at the beginning of the year. 19 MR. KING: Is that our share? That's our 10 20 percent? 21 MR. ROBLES: That's 10 percent. 22 MR. KING: Okay. 23 MR. WOOD: All right, thanks. I understand now. 24 MR. ROBLES: All right. Page 8 is the capital 25 account, balance of 138,897.64. Page 9, the revenue for this 7 1 month is 64,000.59. Page 10, you can see we have a negative 2 expenditure in there. That was a miscommunication on the 3 billing, but we're getting that sorted out. We should see a 4 check for that amount coming in the month of July. Page 11, 5 total expenditures year-to-date, 228,255.21. 6 MR. GRIFFIN: Any foreseen "gotchas" or anything 7 else? Everything else good? 8 MR. ROBLES: Looks good. 9 MR. KING: Okay. Any questions? Motion to 10 approve? 11 COMMISSIONER LETZ: Steve, I have a question that 12 just popped out here quickly. I don't know if I talked to 13 you about it, or Bruce or Tom. I talked to somebody about it 14 at one point. The money that we're spending on the 15 consultant is going to come -- be reimbursed by the City and 16 County. The question is, I just always thought that it would 17 be reimbursed out of the reserves, and then those reserves 18 could be built up again. Whoever I was talking to said no, 19 the City and County would write a check for that amount and 20 put it back in reserves right away. 21 COMMISSIONER MOSER: We're putting it back in 22 reserves next year. 23 MR. WOOD: Well, next year, but I didn't know if it 24 was coming out of the excess -- I mean, usually in the budget 25 process, there's some money left over; at least there has 8 1 been historically. That would build the reserves back up. 2 And if that is used to repay -- or if funding is coming from 3 the City and County next year, I mean, it's more just a 4 question as to -- it doesn't -- the net effect, it doesn't 5 make any difference, because if the reserves get to a point, 6 it goes back to the City and County anyway. 7 COMMISSIONER MOSER: Yeah. I think it -- I don't 8 think there's anything about using anything left over to do 9 it. It was using reserve right now, because there's money in 10 reserve. City and County would reimburse the reserve. 11 MR. KING: I think we're going to add it -- add it 12 back into the budget, I believe. 13 COMMISSIONER MOSER: Right. We were putting it in 14 our budget for next year. 15 MR. KING: I think we did that because we're 16 depleting our reserves at the rate of 180 -- we've already 17 taken 180,000 out. We're committing 180,000 already. I 18 mean, I guess we'll look at it when the time comes, see what 19 we have left in reserves, but I think we -- 20 COMMISSIONER MOSER: But Jonathan's point is if 21 there's excess at the end of the year, then you just -- 22 COMMISSIONER LETZ: If there's excess at the end of 23 the year, it goes into the reserve account. And I think if 24 the reserves get up to -- there's some number that it gets 25 built up to, and then any excess out of that goes back to the 9 1 City and County. So, it's kind of like -- I mean, it's going 2 to get there either way. It's just -- 3 MR. KING: I understand. 4 COMMISSIONER LETZ: -- which accounting way it's 5 done. 6 MR. KING: We just -- our only concern was we just 7 wanted to be able to build our reserves back up, in case -- 8 'cause the more we cut the budget, get the budget closer and 9 closer together, you know, there's -- there is a -- 10 COMMISSIONER MOSER: Right. 11 MR. KING: -- a realistic -- we probably will not 12 have those kind of reserves, so we wanted to be able to have 13 enough reserves to be able to handle some of the these other 14 projects that it looks like we're going to have to pay for. 15 I think the trend has been for us to -- that we've been 16 paying -- paying for a lot of this stuff out of our budget 17 that, in the past, we probably would have gone to the City 18 and the County and got paid -- and gotten -- just gotten 19 money, or asked for an amendment or something like that. 20 So -- 21 COMMISSIONER LETZ: So we should put it in our 22 budget, the full amount, and if you don't need the full 23 amount, you let us know. 24 MR. KING: Exactly. Have we voted on that? No, we 25 didn't vote. 10 1 MR. WOOD: I move we approve the budget as 2 presented. 3 MR. KING: Okay. Second? 4 MR. GRIFFIN: I'll second. 5 MR. KING: Any discussion? None being heard, all 6 in favor? 7 (The motion carried by unanimous vote, 4-0.) 8 MR. KING: 4-0. T-hangar update. Robert Lansford. 9 MR. LANSFORD: Morning. I guess everybody can see 10 we got some steel in the air, and things are going along 11 pretty good. We're still -- still going to try -- on track 12 for Labor Day completion. What we're looking at is, we may 13 have two days we're going to have some striping and some 14 sealing of the asphalt, so two days beyond that at some point 15 when it's ready. Other than that, everything's going pretty 16 good. 17 MR. KING: Any questions? 18 COMMISSIONER MOSER: City's on schedule? 19 MR. KING: To pave? 20 MR. McKENZIE: We hope so. This afternoon, Robert 21 and I are going to meet with two City folks -- Stuart Barron 22 and Dieter Werner -- out here, and hopefully finalize the 23 paving. Robert's already given them, two weeks ago -- they 24 were out here three weeks ago, and they gave them a date to 25 -- a "go" date. 11 1 MR. LANSFORD: To shoot for. 2 MR. KING: To shoot for. So, his -- his end is 3 going right on schedule. It's going real well. The steel 4 started up, and about the end of this week, it will -- 5 COMMISSIONER MOSER: So they're in communication? 6 MR. McKENZIE: Yes, sir. And this afternoon, we're 7 going to meet at 2 o'clock out here and hopefully get some 8 more things ironed out with the City, so it looks like we're 9 going to -- if I'm wrong, Robert, correct me. 10 MR. LANSFORD: Yeah. That's what we know so far. 11 MR. GRIFFIN: You guys had an aborted start last 12 week. I mean, you've got two hangars worth of steel up in 13 six days of labor. That works out to about 60 days to go on 14 getting the rest of the steel up, before you skin. And if 15 that -- if that track record holds, what are you guys going 16 to do between today and, according to your new schedule, 17 three weeks from now, to make sure we get all that steel up? 18 MR. LANSFORD: Well, you know, any time you start a 19 project, I mean, you -- last week wasn't aborted. 20 MR. GRIFFIN: Well, yeah. You put steel up and 21 took steel down; I'd call that an aborted effort. 22 MR. LANSFORD: Well, that -- that is true. They 23 got -- they had put all the columns up, and asked them to 24 take them down because it was in an unbraceable condition. 25 At this time of year, we have a lot of winds -- 12 1 MR. KING: Yeah. 2 MR. LANSFORD: -- that just come up, and so I 3 didn't want to have anything blown down. 4 MR. GRIFFIN: Well, even -- even with that, we've 5 had a crew on the ground for a week today, plus two -- a day 6 and a half a week before. We've got steel in the air, off 7 the slab for less than two complete hangars. I mean, what -- 8 I ask you the question, what are you going to do between now 9 and mid-August to make sure we get there? 10 MR. LANSFORD: We'll, we're doing everything we 11 can. I mean, the guys are -- 12 MR. GRIFFIN: You're missing my question. Are you 13 going to -- are you going to -- I'm not trying to tell you 14 how to run your business. Are we going to do more boots on 15 the ground? Are you going to be here to manage the 16 day-to-day effort? Have you got a project manager that's 17 going to be here on a day-to-day effort? What -- what are we 18 going to do so that we make sure we get to September 1 and 19 have a complete project? That's -- because the track record 20 from April 19th to today doesn't reflect that. In fact, I'd 21 love to see a schedule that had a week-by-week completion 22 date at this point. We're six weeks out on finishing this 23 project, and I've got a bar that slipped four and a half 24 months, and no explanation. 25 MR. KING: What was the original completion date, 13 1 Robert, when we started the project? 2 MR. McKENZIE: September the 1st. 3 MR. GRIFFIN: Well, our adjusted. 4 MR. McKENZIE: We adjusted. It was September the 5 1st. 6 MR. GRIFFIN: Well, no. According to the 19th of 7 April, our adjusted schedule was in the middle of the second 8 week of August. According to this April 19th schedule. 9 MR. KING: Right. 10 MR. GRIFFIN: So we've -- 11 MR. KING: We've slipped two weeks? 12 MR. GRIFFIN: So we've slipped three weeks. And 13 the steel, according to the schedule, was supposed to be 14 erected totally on the 14th of July, which we've blown past. 15 So, we're slipping the completion date two weeks, yet we 16 don't have any steel in the air, and we're a week past that. 17 MR. KING: Do you think you can finish by September 18 1st, Robert? 19 MR. LANSFORD: We're sure trying. I mean, my subs 20 are giving it all they can, and they -- 21 MR. KING: I'm not going to go out and help you. 22 MR. LANSFORD: No, I understand. 23 MR. KING: I guess, Kirk, if you'd like to go out 24 and help, put your overalls on. Other than that, I don't see 25 what we can do right now, other than -- 14 1 MR. GRIFFIN: What I'm asking is -- 2 MR. KING: I shut my steel construction business 3 down about a month ago; I can't do it any more, so I -- 4 MR. GRIFFIN: What I'm asking is, what are we going 5 to do to make sure we get there? 6 MR. KING: Well -- 7 MR. GRIFFIN: And the track record doesn't -- the 8 track record doesn't represent what's -- 9 MR. KING: I understand. The man has said he's 10 going to get it done by September 1st. 11 MR. GRIFFIN: I just wanted to make sure we've got 12 some kind of project management. 13 MR. KING: I mean, I don't know what you want us to 14 do. 15 COMMISSIONER MOSER: I think Kirk's saying you're 16 slipping a day for every two days or something like that, so 17 if you keep that -- keep that pace up, you'll never get 18 there. 19 MR. GRIFFIN: We're not going to get there. That's 20 all I'm saying. And I'm just -- I'm concerned that we -- 21 that we haven't had the project management attention to it to 22 make sure that the -- that it gets completed when it was 23 stated that it was going to be completed, the middle of 24 August. 25 MR. McKENZIE: I think in Robert's defense, he's 15 1 kept up with it. And I've told everybody, and I'm on the 2 record for this, since January that we wouldn't get into this 3 building before Labor Day weekend. I've made that, you know, 4 public. And he's been diligent about -- about staying on the 5 project. There was some -- it's a construction project. I 6 mean, we've all built stuff. 7 MR. GRIFFIN: I do it day in and day out. I'm not 8 trying to tell him how to run his business. What I'm asking 9 is, according to what's being printed on this piece of paper 10 that we got this morning, okay, I've got five weeks -- 11 MR. WOOD: What you're saying is there's 12 compression in what's before that line, and the line hasn't 13 moved. 14 MR. GRIFFIN: The line hasn't moved. I've got five 15 -- according to this schedule right here, it says we're going 16 to be done in five weeks. 17 COMMISSIONER MOSER: I guess what Kirk's saying, 18 what's the corrective action? 19 MR. GRIFFIN: Yeah. Do we need to -- that's the 20 second part of the question, Tom. 21 COMMISSIONER MOSER: Yeah. 22 MR. GRIFFIN: What do we -- we're down to five 23 weeks. A, our contractor says that he can get it done in 24 five weeks. B, what do we need to do to guarantee -- to 25 support and facilitate that happening? And -- and right now, 16 1 I'm not even getting a real good explanation as to what 2 caused two hangars worth of steel to go up in six and a half 3 days. 4 MR. WOOD: If we're going to slip, we'd rather know 5 right now than last minute. 6 MR. GRIFFIN: That's where I'm going. That's where 7 I'm going. We've made a commitment to 12 people to lease 8 hangars, and yet I'm not getting anything positive back that 9 says we're going to make it five weeks from now. So that -- 10 I'm -- 11 MR. WOOD: Can we ask Robert to come back to us 12 with some sort of an explanation on how we can make sure we 13 get there? 14 MR. McKENZIE: Sure. 15 MR. WOOD: Anything that needs to be done, what can 16 be done. 17 MR. GRIFFIN: I'm not sure that there's an answer 18 there. 19 MR. KING: What -- is there a penalty clause on 20 this thing going past September 1st? 21 MR. GRIFFIN: No. 22 MR. KING: Then -- 23 MR. GRIFFIN: No. 24 MR. McKENZIE: We may go over two weeks. And if we 25 go over two weeks, I've told all the tenants that we're 17 1 shooting for Labor Day weekend, so -- 2 MR. WOOD: Well, it would be nice to know things as 3 far in advance as we knowledgeably can do them. 4 MR. GRIFFIN: Yeah. I mean, we were -- we were 5 told at our last meeting that we would have steel up on the 6 14th of July, and we didn't even start erecting till -- till 7 the 14th of July, so that's where I'm -- that's what's got me 8 irked. And -- and if you got -- 9 MR. KING: Anybody else have anything on this? 10 Robert? 11 MR. LANSFORD: Well, you know, so much of the 12 business is, you know, we depend on -- you know, we depend on 13 the subcontractors that we have. And -- 14 MR. GRIFFIN: You're miss -- you've missed my 15 point. You told us at the last meeting that on the 14th of 16 July we would have -- we would have -- you gave us a schedule 17 and committed to a schedule at our last meeting that -- you 18 weren't here, but you had given the -- had sent it by e-mail 19 to Bruce. 20 MR. LANSFORD: Mm-hmm. 21 MR. GRIFFIN: That you had committed to a 22 completion date on the steel of the 14th of July. We didn't 23 start erecting till the 14th of July. So that -- we're only 24 talking 30 days ago. And -- 25 COMMISSIONER LETZ: I mean, just -- I mean, to try 18 1 to get this moving, -- 2 MR. GRIFFIN: Yeah, please. 3 COMMISSIONER LETZ: -- I think what the board wants 4 is for you to say it will be done by September -- or Labor 5 Day, and if not, let them know now. So, it's either yes now, 6 or it's going to be delayed a little bit. 7 MR. KING: Why don't you give us some weekly 8 updates as far as where we are? I agree -- I agree with Kirk 9 on one -- I mean, I don't know what we can do to solve it. 10 Looks like you brought up a problem that's -- or a topic or a 11 problem that is unsolvable. I mean, I don't know -- other 12 than -- there's no penalty clause in the contract. 13 COMMISSIONER MOSER: I don't see how you say it's 14 unsolvable. 15 MR. KING: Well, what are you going to do? 16 COMMISSIONER MOSER: Well, what's the problem? 17 MR. KING: I don't know. 18 COMMISSIONER MOSER: That's question one. 19 MR. KING: I didn't bring it up. 20 COMMISSIONER MOSER: That's the question for 21 Robert. So, Robert, what's -- 22 MR. KING: He says he's going to finish by 23 September 1st. How can I -- what can I do? 24 MR. GRIFFIN: I can't believe we're managing a 25 million-dollar project on the fact that, to-date, no 19 1 scheduled item -- and we've spent $400,000 to-date; no 2 scheduled item has held to schedule yet. 3 MR. KING: I understand that. I would have 4 suggested when we made the project, we should have probably 5 put a penalty clause at the end of it. 6 MR. WOOD: Everything's moving. 7 MR. KING: That probably -- I'm sure the County has 8 a penalty on -- no penalty on Huser? 'Cause he probably 9 wouldn't have done it. 10 COMMISSIONER LETZ: Penalties cost money. 11 MR. WOOD: The point is, everything on the schedule 12 has moved out except the finish date. 13 MR. GRIFFIN: Yeah. 14 MR. KING: Exactly. 15 MR. WOOD: We either need an explanation of how you 16 really can do it by then, or, "Well, I've analyzed this 17 thing; I've looked at what I think is going to happen. 18 Here's my new projected-to-finish date." 19 MR. KING: How about this, Robert? How about to 20 move this out of here and we can go on to another topic, how 21 about you give us weekly updates on this thing, how long -- 22 how that relates to the finish date. Okay? 23 MR. LANSFORD: Sure, I think that's -- 24 MR. KING: And I think if we could just have some 25 -- if we are going to go past September 1st, then we don't 20 1 have three days notice or two days notice; that there is some 2 sort of a -- there is some sort of cushion in there so we can 3 notify those 12 people that -- I mean, I don't know what the 4 status of those 12 people are. Are they all getting kicked 5 out of hangars on August 31st, Bruce? 6 MR. WOOD: We have that guy that bought a brand-new 7 airplane that Joey's accommodating right now. He's waiting 8 on a T-hangar. 9 MR. KING: But his airplane's not on the ramp right 10 now? 11 MR. WOOD: No, but it could be. 12 MR. KING: He's being accommodated. So, what I'm 13 getting at is, just keep us up-to-date on how far these next 14 -- you know, short time -- very short time, like Kirk did 15 say. 16 MR. GRIFFIN: Five weeks. 17 MR. KING: How these five weeks are going so that 18 three days before the 31st, we don't find out it's going to 19 be two weeks past the 1st. 20 MR. LANSFORD: Right. 21 MR. KING: Can we do that? 22 MR. LANSFORD: You bet. 23 MR. KING: Okay, thank you very much. 24 MR. LANSFORD: Thanks. 25 MR. KING: Did you have anything on this, 21 1 Mr. Walters? 2 MR. WALTERS: I agree with your comments. I hear 3 what Robert's saying, and I think where we are, and I -- I 4 agree with Kirk, too, that, you know, he's -- the dates 5 aren't exactly holding schedule, and -- but let's see what 6 the man can do, and give us weekly updates. 7 MR. KING: That will work perfect. Facility 8 options, Item 4C. 9 MR. McKENZIE: Do you want to take it? 10 MR. GRIFFIN: Let me take this. 11 MR. KING: Go ahead. 12 MR. GRIFFIN: In the four weeks since our last 13 meeting, Bruce has had some inquiries as to hangar space, and 14 we've accommodated them by -- Bruce set a fee and has put 15 three hangars in the old -- not three hangars, three 16 airplanes in the old paint hangar. So, we've got -- we are 17 renting -- currently renting space in the paint hangar for 18 aircraft storage. Okay. So, we're getting revenue off of 19 that building now, for a while there. Let's hope that it 20 continues. In that light, I started looking at the other -- 21 the Building 18 that sits next to the paint hangar, and 22 wondering if we couldn't store airplanes there as well. And, 23 of course, the answer is yes. It has some -- some 24 shortcomings, but I think if we can start producing revenue 25 off of these buildings that we've gotten back in our care, of 22 1 course, I know the County would love it and the City would 2 love it, and our budget would love it as well. 3 There are some things to start thinking about in 4 using that facility. One, it has some old doors on it that 5 aren't worth the -- the metal that they're built out of. We 6 could -- we could remove the slide -- the current sliding 7 doors, and just leave them as open, covered storage for, you 8 know, small air -- smaller airplanes. It will reduce costs, 9 because we -- you know, you're not -- you're going to have 10 some weather, but you're minimizing your exposure. And so 11 along with removing the doors and some cleanup work in 12 those -- in that facility, we probably need to address the 13 approach in and out of it. It has a big gully as you drive 14 down in there, and -- and so I got with an acquaintance of 15 mine that I do business with on dirt work. We came out and 16 shot some elevations. We're probably looking in the ballpark 17 of $17,000 to -- to just ramp the whole thing down to it, all 18 the dirt work, all the -- and the prep, no paving. But it 19 would -- it would make it accessible to other aircraft, to 20 where you could taxi an aircraft all the way into the 21 U-shaped piece of that hangar. And so, you know, if -- as 22 time goes on and the budget allows, I think it's something 23 that we could start doing and start getting a return on that 24 piece of our -- our -- 25 MR. WOOD: Have you looked at return? I mean, if 23 1 you're going to spend $17,000, how long -- and you're going 2 to rent these for a reduced rate 'cause they don't have a 3 door, -- 4 MR. GRIFFIN: Yeah. 5 MR. WOOD: -- how long would that -- 6 MR. GRIFFIN: I -- you know, I haven't -- I wanted 7 to put it out there to you guys. I wasn't trying to -- you 8 know, but, I mean, if we parked -- if we parked eight 9 aircraft in there at $150 a pop, the return's starting to get 10 pretty good. I mean, it's less than a couple years. 11 MR. WALTERS: Do we have demand for eight aircraft? 12 MR. GRIFFIN: How many do we have? 13 MR. McKENZIE: Seven. 14 MR. GRIFFIN: We've got seven still on the T-hangar 15 list. 16 MR. WALTERS: Have you talked to these people? Do 17 you know if they'd go over there? 18 MR. McKENZIE: No, sir. 19 MR. WALTERS: That's what we need to do. 20 MR. WOOD: There's a difference between a T-hangar 21 and an open storage area. 22 MR. GRIFFIN: I know. 23 MR. McKENZIE: That's why I haven't approached 24 them. 25 MR. GRIFFIN: I didn't want to -- I didn't want 24 1 to -- Bruce and I have very preliminarily talked about this, 2 and I wanted to make sure that we didn't go some direction 3 that the board didn't think was worthwhile before we went off 4 and started doing a little more serious inquiries. The fact 5 is, we've got the three pieces in the paint hangar leased 6 with no solicitation. 7 MR. WALTERS: How do people access it? 8 MR. KING: How do they access it? Isn't there, 9 like, grass between there and the building? 10 MR. McKENZIE: If you're going down Runway 3/21, 11 then you taxi down the taxiway that's grown up. 12 MR. GRIFFIN: Yeah. 13 MR. McKENZIE: Then you can taxi; we've got it 14 cleaned up over there now. 15 MR. KING: Right, right, right. 16 MR. McKENZIE: But you can access it. 17 MR. KING: It seems more like this is a -- I mean, 18 two things. It looks like this is more of a project for 19 asking the County and the City to help us out a little bit. 20 Why pay $17,000 when we can add revenue to the budget, add 21 revenue to the airport, with these guys doing some basic road 22 work? 23 MR. GRIFFIN: That's why I wanted to -- 24 MR. KING: We've done that before. We've done this 25 before over there. Not talking hot mix or something like 25 1 that, but -- 2 MR. McKENZIE: Dirt work. 3 MR. KING: It's not -- I mean, I've looked at it a 4 couple times. It's not really -- I mean, it's minor, fairly, 5 compared to what they've done over here. 6 MR. GRIFFIN: It's 1,000 yards of material. 7 COMMISSIONER LETZ: From our standpoint, it would 8 be a winter project. 9 MR. GRIFFIN: Right. 10 COMMISSIONER LETZ: I just say that so -- it's not 11 a rush item. We're not going to get to any project -- 12 special projects until winter. 13 MR. KING: It would be a great winter project. 14 That's what I was thinking, maybe a winter project. We could 15 dig this thing up over there. 16 MR. GRIFFIN: That was -- I was just trying to 17 bring it up and discuss -- 18 MR. KING: No, I agree. 19 MR. WOOD: Could we confirm the -- the potential 20 revenue, you know, like -- 21 MR. GRIFFIN: That's phone calls. 22 MR. WOOD: Ask the people if that would be an 23 option for them, -- 24 MR. GRIFFIN: Sure. 25 MR. WOOD: -- if they can't get into a T-hangar. 26 1 MR. WALTERS: When you do that, I think you need to 2 get people out here to look at it. 3 MR. WOOD: Absolutely. 4 MR. McKENZIE: That's why, when I put people in 5 that paint hangar, I always make it a point to take them over 6 there. I say, "This is what you're getting into." 7 MR. KING: The other thing is, I don't know how you 8 put seven people in a hangar that are basically disinterested 9 parties from each other. And who's moving their airplane 10 around? 11 MR. GRIFFIN: Well, that's what I'm saying. You've 12 got six -- 13 MR. McKENZIE: Six individuals bays. 14 MR. KING: Are you talking about putting those 15 planes in the side? 16 MR. GRIFFIN: Yeah. 17 MR. KING: You better get them out here to look at 18 that. 19 MR. GRIFFIN: I understand. 20 MR. KING: I wouldn't put my tractor in there. 21 Those things are miserable looking. Are they cleaned up? 22 MR. GRIFFIN: Yeah. 23 MR. KING: Is all the heating still above -- all 24 that been taken out? 25 MR. GRIFFIN: No, it's still -- 27 1 MR. WOOD: Are those buildings a part of the roof 2 deal? 3 MR. KING: So they can fall on the airplane, too. 4 MR. GRIFFIN: They're -- when they come out and do 5 the survey, they are going to survey those two buildings. 6 And it's a separate piece, but they are going to survey them, 7 yes, in answer to your question. 8 MR. KING: I would think what we probably should do 9 is get a -- get a plan together to first find out what it's 10 going to take to make those things inhabitable. 11 MR. WALTERS: And that will come when Primero goes 12 out there and makes their assessment. 13 MR. GRIFFIN: Tomorrow -- starting tomorrow. 14 MR. KING: All these little lean-tos on the side 15 have got heating ducts and stuff that run across the top of 16 them, and some of them are held up by one-by-fours. I mean, 17 it's miserable looking. And, I mean, I just would be -- I 18 think we'd be very, very -- 19 MR. GRIFFIN: There are some costs in getting the 20 building prepped to store airplanes. 21 MR. KING: Yeah, cleaned up. There's some stuff 22 that could fall on an airplane real quickly. 23 MR. WOOD: Sounds like a worthwhile project to 24 examine more thoroughly. 25 MR. KING: I agree with the project. I'm saying I 28 1 don't think I'd start calling people up -- I think I'd rather 2 have them look at the house before it's painted than when it 3 doesn't have any siding or anything on it. I mean, it's kind 4 of -- right now, Corey had a very good point. It's not 5 something I'd want to just -- 6 MR. GRIFFIN: No. 7 MR. KING: -- sell somebody. Pretty ugly. 8 MR. GRIFFIN: Primero is going to look at the roof 9 while they're here, so, you know, it's just kind of a 10 follow-on to, okay, now that we've got this, they know what's 11 happening with the roof, or what could happen with the roof, 12 we'll go from there. 13 MR. KING: I think if you come up with a plan, 14 Kirk, and -- 15 MR. GRIFFIN: Very good. 16 MR. KING: -- tie it into the paving of that thing, 17 and then have Charlie come out or Len come out and look at 18 the ditch, find out what the most adequate way to do that 19 with drainage still coming across it, and then after Primero 20 looks at it, look at the building and find out what we're 21 going to do. That's what research is for. I think this is a 22 perfectly good project to spend, you know, $30,000 or $40,000 23 of the airport's money on something we could get some revenue 24 back into it. 25 MR. GRIFFIN: Yeah. 29 1 MR. WALTERS: How do the people get access to it 2 vehicularly? 3 MR. GRIFFIN: That's the -- we have gates over 4 there, but right now they're locked up solid, so the people 5 that are going to the paint hangar -- I don't know what Bruce 6 is doing with them. 7 MR. McKENZIE: They just have to access it -- 8 MR. GRIFFIN: Drive around? 9 MR. McKENZIE: Mm-hmm. 10 MR. GRIFFIN: Yeah. 11 MR. KING: Across the taxiways? 12 MR. McKENZIE: They go across the taxiway and down 13 that way. 14 MR. WALTERS: I don't think we want that. 15 MR. McKENZIE: Well, it's just temporary. The 16 paint hangar's temporary. One of these gentlemen is going 17 into our new hangar, and he had an experimental airplane he 18 built that he didn't want to leave it out on the apron. He 19 understands. He has a radio. I walked through it with him. 20 This is just for the next five or six weeks. 21 MR. KING: That's fine. 22 MR. McKENZIE: The other plane is locked up in a 23 lawsuit; it's just stuck in there, and there's a big 24 litigation over the airplane, so we just stuck it over there, 25 so nobody's going over there. It's just two. 30 1 MR. WOOD: Part of your more in-depth discovery 2 would be to answer that question. 3 MR. GRIFFIN: Yeah. 4 MR. WOOD: Because that was the disadvantage of 5 having T-hangars over there. 6 MR. GRIFFIN: Exactly, yeah. 7 MR. WOOD: It's still a disadvantage. 8 MR. GRIFFIN: If we start leasing it, we're going 9 to have to do something for vehicle access, no doubt. 10 There's no doubt. 11 MR. WALTERS: When we begin to look at the money 12 we'd have to pour into it, we need to also look at 13 improvements or the work that would need to be done to get 14 vehicular access -- 15 MR. GRIFFIN: Yes. 16 MR. WALTERS: -- to that hangar. 17 MR. GRIFFIN: That's part of it. 18 MR. WALTERS: And not by means of going on the 19 taxiway. 20 MR. GRIFFIN: No, it's part of it. 21 MR. WALTERS: It will be through the Mooney end. 22 MR. GRIFFIN: Through the Mooney side, yeah. 23 MR. KING: Yeah, I think that -- 24 MR. GRIFFIN: Bruce and I have already -- we've 25 talked about it. We already have some gates over there, and 31 1 -- and it's a matter of probably putting -- getting openers 2 similar to what we have on this side so that you have a key 3 pad and can open up the gate and access that side. So -- 4 COMMISSIONER MOSER: Let me compliment the board on 5 at least looking at other potential revenue for facilities 6 that are out there, so that's all good. Looks feasible, so 7 put it down on paper. That's very good. 8 MR. GRIFFIN: This was just the first step. By no 9 means is it -- you know, it was just, "Hey, here's an option, 10 and it's feasible. 11 MR. WOOD: We're taking these buildings back. We 12 need to do something with them. 13 MR. GRIFFIN: We need to do something with them, as 14 opposed to just sitting there. 15 COMMISSIONER LETZ: Do something or tear them down. 16 MR. GRIFFIN: Yeah, okay. 17 MR. KING: All right. Item 4D -- anything else on 18 that? 19 MR. GRIFFIN: No, sir. 20 MR. KING: Item 4D -- thanks for this, Kirk. I 21 think it's a good idea. Executive, Mooney lease. Where are 22 we at on that Mooney lease? 23 MS. BAILEY: I don't think we need an executive 24 session, but let me just -- since I have a captive audience 25 that are most of the people who are involved in this, I 32 1 wanted to get some direction. About a month ago, I sent out 2 the most recent version of the lease to Bruce and Mooney's 3 attorney, and Commissioners Moser and Letz, and the City and 4 the County Attorney, the Mayor, City Manager, and Jonas. I 5 have not gotten any feedback. And I had some questions that 6 maybe we can get some feedback on now. First is, I think 7 actually what we're talking about earlier answered my 8 question. One section was about the premises to be vacated 9 and demolished, and I've said here that lessee has 10 surrendered claims on Buildings 17, 18, and 19; that they'll 11 vacate the buildings except for they -- they'll have six 12 months worth of access to the stress rig. I heard in the 13 interim that there was some question about whether or not 14 Mooney wanted to take those back, but my understanding is now 15 they're just -- they're going to leave those to us. Is that 16 right? 17, 18, and 19? 17 MR. HODKIN: Be aware, there are actually two other 18 small buildings. There's 27, there's 30, and there's 16 that 19 fall in that line. Now, 16 -- 16 is a little -- I think it's 20 a telephone -- 21 MS. BAILEY: So those are also buildings that we're 22 taking back? 23 MR. HODKIN: Yeah. 24 MR. KING: What's the number on that building, this 25 little paint storage building? 33 1 MR. HODKIN: 27. 2 MR. KING: That ought to be included there, too. 3 MR. HODKIN: Let me just -- can I expand? 4 MS. BAILEY: Yes. 5 MR. HODKIN: Forgive me. 16 is a telephone switch 6 station, I guess, so I'm not sure what the future for that 7 is. 27 is the one behind the paint shop, which is just a 8 shed, really. And then 30 is the other one we still want 9 access to; that's our drawing vault. So, access to 18, as 10 you called it, is the same clause, but just include Building 11 30 in it, please. 12 MS. BAILEY: What's in -- what's in 30 that you 13 need access to? 14 MR. HODKIN: It's our drawing vault. 15 MR. McKENZIE: All their plans out there from time 16 immemorial are in that building. 17 MR. HODKIN: So we need -- it needs to be away from 18 the main building for security reasons. 19 MS. BAILEY: Oh, okay. 20 MR. HODKIN: I just need a few weeks -- days to do 21 that. 22 MS. BAILEY: I'll add that back in and then let you 23 take a look at it, make sure it's worded how you want it. My 24 next question -- again, I think I know the answer to it, but 25 just to be sure, we had originally made the lease term to 34 1 September 30th, 2033, which would have been the right number 2 of years, assuming that we had executed this lease back in 3 September of last year. I'm leaving that end date the same. 4 In other words, I'm not moving it up every time we delay the 5 lease, because that way we have a specific date and it will 6 just be -- this lease will be less than the -- whatever that 7 number of years is -- '14, 20 years. But, yeah. Then the 8 $6,000 a month is still the correct amount for the lease 9 payments? 10 (Mr. McKenzie nodded.) 11 MS. BAILEY: I guess the only other question I had 12 was, I was asked to add a provision into this lease that tied 13 it to the financial incentives that the City and County are 14 giving for Mooney to fix the roofs, and so that was added in 15 Section 5.06. And all I said was that any improvements made 16 to the lease premises using funds provided to lessee by the 17 owners pursuant to economic development agreements in Texas 18 Local Government Code Chapter 380/381 shall require lessee to 19 comply with all of those terms in addition to the 20 requirements of this agreement, and a violation of any term 21 of the 380 or 381 agreement shall constitute a breach of this 22 lease subject to the default provisions of Article 14, just 23 as if such terms were set out in this agreement verbatim. 24 And then I say that those are going to be attached as 25 Exhibits B and C. So, my understanding is that we're not -- 35 1 even though I think this lease is ready to be executed, it's 2 not going to be executed until we have those Exhibits B and C 3 attached, and those have not yet been executed. 4 MR. WOOD: Is that still a valid requirement, that 5 those things be -- 6 MS. BAILEY: Well, that's my question. 7 MR. WOOD: -- commingled? 8 MR. TITAS: That was the direction from City/County 9 and this board. And those agreements are pending the 10 findings of the consultant. So, exactly -- 11 MR. WOOD: Okay. My only problem is I sure hate to 12 see our lease get complicated any more than it has to be. 13 MS. BAILEY: Well, that's about the least I could 14 complicate it by still making the two subject to -- to each 15 other. And so I'm going to -- I'm assuming from the no 16 feedback that we're good with this, with the discussions -- 17 the addition of those buildings that Barry just talked about, 18 and we'll be ready to go as soon as the agreements are 19 executed. 20 MR. WOOD: But we can't finish this until they 21 finish that. 22 MS. BAILEY: Right. 23 MR. WOOD: And that ties into the -- to the roof 24 analysis. 25 MR. TITAS: Correct. 36 1 MR. WOOD: Okay. All right. 2 MS. BAILEY: So that's where we are. 3 MR. KING: Okay. 4 MR. HODKIN: Can I make a comment? 5 MR. KING: Sure, Barry. 6 MR. HODKIN: I actually responded to David Jackson. 7 He's probably going to send it back to you, Ilse. 8 MS. BAILEY: Okay. 9 MR. HODKIN: I think only one thing that's 10 remaining. I did request that end date for the lease go out 11 to 20 years rather than 19, so -- 12 MS. BAILEY: Oh, okay. 13 MR. HODKIN: -- that's the only thing. 14 MS. BAILEY: Well, if the board doesn't care, it 15 doesn't make any difference to me, so we'll just make that 20 16 years from whatever the date of the execution. 17 MR. HODKIN: Right. 18 MS. BAILEY: Okay. 19 MR. KING: Okay. 20 MR. HODKIN: And I don't have copies, but if 21 anybody -- this is what I'm expecting to be something like 22 Appendix A; that's just a little schematic of the buildings. 23 MS. BAILEY: Great. Yes, that's great. 24 MR. WOOD: Carole can make us all a copy. 25 MR. WALTERS: Is the County and the City's 37 1 position, and yours, Jonas, since Ilse did not receive any 2 comments, that there are no comments and that the lease is 3 acceptable by -- by those people? 4 COMMISSIONER MOSER: I think that -- I don't think 5 we want to take that position, that there's no comments. I 6 think we just each comment. 7 COMMISSIONER LETZ: We rely heavily on the County 8 Attorney on that, and I've not talked to her. 9 MR. KING: Have you talked to the County Attorney, 10 Ilse? 11 MS. BAILEY: Not since I sent this to her. Well, I 12 haven't talked to her about this. I've talked to her about 13 other things, but -- 14 MR. KING: Why don't you send it to them with a 15 little box next to it that says check. (Laughter.) Put a 16 checkmark. 17 MS. BAILEY: That's why I brought it up this time. 18 I wanted to remind everyone that I had solicited input. 19 MR. WOOD: When you send that stuff out to them, if 20 you could just tell them, "Hey, we're going to meet on this 21 date, and we'd love to have comments back so we can talk 22 about it." 23 MR. WALTERS: I think she has. 24 MR. TITAS: Ancillary to that point, all the 25 comments that we've discussed with the County Attorney and 38 1 with City Hall are, I think, now going to be included in the 2 380/381 documents, so a lot of the concerns -- 3 MR. KING: Sure. 4 MR. TITAS: -- would be addressed per the language, 5 say, in tying the lease to the -- 6 MR. KING: Got you. 7 COMMISSIONER MOSER: But I guess the question is, 8 do we have to complete the 380 and 381 agreements before this 9 lease can be executed? 10 MR. TITAS: Per the language. 11 MR. KING: Per the language. 12 MS. BAILEY: That's the way I've got it written. 13 MR. WALTERS: Could we ask that you -- the County 14 and the City to ask the City Attorney and the County Attorney 15 to get their comments to Ilse? 16 COMMISSIONER LETZ: We'll say within -- by the end 17 of next week. 18 MR. WALTERS: If you could, please. 19 COMMISSIONER MOSER: Right, we'll do that. 20 COMMISSIONER LETZ: And, Ilse, on the date, I think 21 it's good to have a date specific. I mean, change the date 22 like Barry suggested, but I'd like it in the lease a lot 23 better if you say expiring on a day, rather than 20 years 24 from now. 25 MS. BAILEY: That's the way it will say it. Right 39 1 now it says September 30, 2033, and what I'll do is change 2 that to whatever date -- 20 years from whatever date we sign 3 it. 4 COMMISSIONER LETZ: Okay. 5 MR. KING: Okay. Anything else on that? 6 MR. HODKIN: Just one final thing, Steve. In my 7 comments back to David -- obviously, 'cause I've not seen B 8 and C -- Exhibits B and C, I couldn't comment on that, but 9 the rest of it is fairly simple. I've no feedback from David 10 on the legalese side of it, so maybe some wording changes 11 from that. 12 MS. BAILEY: I don't think that -- there probably 13 shouldn't be much concern from him, because we haven't made 14 really any changes. 15 MR. HODKIN: Right. 16 MS. BAILEY: Except for that section that ties it 17 to the exhibits that are not yet in effect. 18 MR. HODKIN: Correct. 19 MR. KING: Okay. Thank you, Barry. Anything else, 20 Barry? 21 MR. HODKIN: No. 22 MR. KING: All right. And, Ilse, when we send out 23 a letter to the County and the City and it says, "We're 24 asking for comments by Tuesday, June the 31st," we assume 25 that if there's no comments after June the 31st, then the 40 1 document is correct and agreed to by the City and the County. 2 And we're taking that assumption on a lot of stuff. So, I 3 would encourage the City and the County, if they do receive 4 an e-mail or a letter from you that has -- it's 5 date-specific, that they understand that something is 6 probably going to happen after that date that they're not 7 going to be involved in. Well, they're going to be involved 8 in, but they're not going to have any comments. So -- 9 MR. WOOD: Sure. 10 MR. KING: Item 4E -- this would be one of those 11 situations. 12 MR. GRIFFIN: Yeah. 13 MR. KING: Mooney roof consultant. Okay. So, we 14 have some documents that I just signed. 15 MR. McKENZIE: You signed it; now we have the 16 contract in place. They actually began Wednesday, and they 17 sent a crew up here to just do some basic observation of the 18 building and see what they would need, and in the morning 19 they will start with a complete crew, and the engineer will 20 be up here to start the process. 21 COMMISSIONER MOSER: So you wanted our comments by 22 July 1st; we gave them to you. Never heard anything since 23 then. 24 MR. KING: No. 25 MR. GRIFFIN: We implemented those, and -- 41 1 MR. KING: We put them in. 2 COMMISSIONER MOSER: I just didn't hear anything. 3 MR. GRIFFIN: No, we stuck all those in and sent 4 them to Primero. We got a printed copy back, and that's what 5 Steve signed. 6 MR. McKENZIE: They like it. Steve signed it. 7 COMMISSIONER MOSER: Okay. 8 MR. KING: You did a very good job on that, Tom. 9 COMMISSIONER MOSER: So -- 10 MR. KING: You responded. 11 COMMISSIONER LETZ: I didn't. 12 MR. GRIFFIN: We can give you a copy. 13 COMMISSIONER MOSER: That's what I'd like to do, 14 just a copy. 15 MR. GRIFFIN: Sure. 16 COMMISSIONER MOSER: A copy. 17 MR. GRIFFIN: No, that's easy. 18 MR. McKENZIE: They were good with it. 19 MR. GRIFFIN: We took all the comments, stuck them 20 all in there and shook them up, had a -- shipped them to 21 them, and then I had a teleconference -- Corey was gone, and 22 I had a teleconference with them. We talked through each 23 one. 24 COMMISSIONER MOSER: Very good. 25 MR. GRIFFIN: And they're done. 42 1 MR. KING: I think we beat them into submission, 2 basically what happened. 3 COMMISSIONER MOSER: As long as -- 4 MR. KING: I don't think there was any negotiating. 5 They got tired of -- tired of talking to us. 6 MR. GRIFFIN: They really did. 7 MR. KING: So they just agreed to all the terms. 8 MR. WOOD: For the record, the terms, conditions, 9 and comments were all incorporated into the Primero -- 10 MR. KING: Right. 11 MR. WOOD: -- documents. 12 COMMISSIONER LETZ: In my defense, Steve, Tom and I 13 spent quite a bit of time together. He responded on my 14 behalf. (Laughter.) 15 MR. McKENZIE: There you go. 16 MR. TITAS: Bruce, what's the timing on that? 17 MR. GRIFFIN: The -- the timing, Jonas, is that 18 they're going to start the survey. We should have -- they 19 will take three weeks to write -- to come up with their data 20 and write their report, at which time we'll call a meeting 21 that has us and the Mooney guys and the County and the City, 22 so that we can say, "Okay, here's the recommendations per 23 Primero Engineering for solutions to roof problems." 24 MR. McKENZIE: It will take them -- 25 MR. GRIFFIN: Or here's -- it's going to be 43 1 twofold. It's, "Here's where we found issues and what the 2 issues are," and subsequently, a potential solution to those 3 roof problems. 4 MR. TITAS: So -- 5 MR. McKENZIE: Two to three weeks. 6 MR. TITAS: So, mid-August? 7 MR. GRIFFIN: Mid-August is probably -- 8 MR. WOOD: I'm reading what they said in the 9 schedule part of their contract. 10 MR. GRIFFIN: Oh, yeah. 11 MR. WOOD: It says we can -- we can complete the 12 condition assessment services in about three weeks. And 13 they're going to start like tomorrow. 14 MR. GRIFFIN: Tomorrow. 15 MR. WOOD: We can get the construction document 16 services in about three weeks, and the contract bidding and 17 negotiation services in about two weeks. Now, my question 18 is, are those -- do any of those overlap, or do they -- 19 MR. GRIFFIN: We don't -- they won't do the second 20 two pieces until we have that meeting. 21 MR. WOOD: So that would be like eight weeks. 22 MR. GRIFFIN: But that's -- that's put together. 23 MR. McKENZIE: That's everything. 24 MR. GRIFFIN: The construction documents and the 25 whole bit. We should have the report in three weeks, three 44 1 and a half weeks, to be able to talk with the guys at Mooney 2 and with you guys. 3 MR. TITAS: Okay. 4 MR. GRIFFIN: And say, "Okay, here's what was 5 found, and here are solutions to what was -- what was found." 6 MR. TITAS: Excellent. 7 COMMISSIONER MOSER: Just give us a little heads-up 8 when that meeting's going to be. 9 MR. GRIFFIN: I have a feeling as soon as soon as 10 they want -- 11 MR. KING: We'll send out -- 12 MR. GRIFFIN: -- to schedule a meeting, we'll -- 13 COMMISSIONER MOSER: Okay. 14 MR. KING: We'll send something out to you, Tom. 15 COMMISSIONER MOSER: Okay. 16 MR. KING: Anything else on that? Yes, Barry? 17 MR. HODKIN: In relation back to 4D for a minute, 18 we've already said that 4D can't be completed until 4E is 19 some way along. In that three weeks, eight weeks, whatever 20 timetable the contract -- the roof contractors have got, what 21 do we need to be able to execute Exhibits B and C, and 22 therefore close on the lease? 23 MR. TITAS: Well, the City and County need a dollar 24 figure to put into those agreements, and that's -- that's 25 obviously the largest point. So, they're waiting until they 45 1 get the recommendations from the consultant so that they know 2 exactly what the scope of work will be. Is that -- 3 COMMISSIONER LETZ: I thought the amounts were 4 500,000 each, period. 5 MR. TITAS: Up to, yes. But we're -- 6 COMMISSIONER MOSER: Maybe not. 7 MR. WOOD: Well, you can't say that, because what 8 if they find some structural deficiencies and there's things 9 other than roofing? 10 MR. TITAS: That's why they've capped it at 500 11 each. So -- 12 MR. WOOD: Well -- 13 MR. HODKIN: So -- 14 MR. TITAS: And I'm speaking for other parties 15 here, so I apologize. 16 MR. HODKIN: So that would be after that, so that's 17 at least eight weeks away -- 18 MR. WOOD: That's right. 19 MR. HODKIN: -- before you can get to a number. 20 Then it's a week or two to draft out the documents, so I'm 21 looking at -- I'm looking at three to four months before I 22 get a lease, right? 23 MR. McKENZIE: Realistically. 24 COMMISSIONER LETZ: Depends on what the -- I 25 mean -- 46 1 MR. WOOD: Unless we don't want to tie all this 2 other stuff to the lease. 3 MR. TITAS: Correct. 4 MR. WALTERS: Mooney should have just spent the 5 million dollars themselves and gone on. (Laughter.) 6 MR. HODKIN: You know what? No comment. 7 (Laughter.) 8 MR. KING: You know, they say the wheels of justice 9 move slowly. This does too. 10 COMMISSIONER LETZ: I think the lease will be 11 signed as soon as the agreement -- the form of the agreements 12 are finalized. I mean, to me. I mean, it's not -- and, I 13 mean, we ought to put the amount in later. 14 MR. TITAS: The way -- the direction I've got from 15 Heather and Mike Hayes was that they wanted the scope of work 16 to be put into the lease. 17 COMMISSIONER LETZ: Okay. That's why we have 18 attorneys. 19 (Mr. King left the meeting temporarily.) 20 COMMISSIONER MOSER: Now we know the problem; it's 21 the attorneys. Oh, excuse me, Ilse. 22 MS. BAILEY: This attorney's ready to go. I don't 23 know. 24 MR. McKENZIE: That's right. 25 COMMISSIONER MOSER: That was the trouble, putting 47 1 the 380 and 381 stuff in. 2 MR. WOOD: Barry, we want that lease signed just as 3 much as you do. 4 MR. HODKIN: Yes, sir. 5 (Mr. King returned to the meeting.) 6 MR. KING: Won the lottery. 7 MR. WOOD: Will you fix the roof if you do? 8 MR. KING: No. 9 (Low-voice discussion off the record.) 10 MR. KING: Okay, did y'all get finished on that? 11 Hash that out? Okay. Item 5, information/discussion. 12 General update. Any general update? 13 MR. McKENZIE: Have any of the pilots in the room 14 flown at night in the last three weeks? 15 MR. WOOD: I was going to ask that question. No, I 16 haven't, but I -- 17 MR. KING: I drove. 18 MR. McKENZIE: You need to. 19 MR. KING: I drove three days ago; I was out here 20 getting my airplane. I drove on the taxiways at night going 21 around the runway. I didn't drive on the runway. I wanted 22 to, but I was afraid I was going to get caught. (Laughter.) 23 But I did look at it. It looks really good. There's a few 24 minor tweaks that I'd like to do to it. 25 MR. McKENZIE: Okay. 48 1 MR. KING: I'd like to go out there and get with 2 you at night, maybe. 3 MR. McKENZIE: Sure. 4 MR. KING: And drive around out there. There's a 5 few things, but I have to say that the taxiway is lit very 6 well. 7 MR. McKENZIE: Good. 8 MR. KING: With my headlights on, it looked very 9 well -- it looked very nice. And there's a couple things 10 that maybe we'd like to change on the -- on the exit over 11 here at -- off the runway onto that -- 12 MR. McKENZIE: Foxtrot? 13 MR. KING: Foxtrot. I think maybe I'd like to buy 14 maybe 30 or 40 -- maybe 20 or 30 of those white ones like you 15 put over here, the white -- the middle ones. The lead-in 16 lights. And buy maybe 8 or 10 of those to put out there, 17 just so you can see the turn there. Because there's two blue 18 ones there, but that one blue one, there's a VASI right -- 19 there's a big VASI right there, and it shines right in your 20 face, and you can't really see. 21 MR. McKENZIE: It's a PAPI light. 22 MR. KING: A PAPI light. I can't see that other 23 blue light very well. 24 MR. McKENZIE: What let's do, so there's no 25 misunderstanding, one night let's you and I meet, -- 49 1 MR. KING: That's fine. 2 MR. McKENZIE: -- and let's just go over it. But 3 also -- 4 MR. KING: Other than that, I was very impressed. 5 MR. McKENZIE: We put the red lights you wanted up 6 here. 7 MR. KING: That's very impressive. You taxi up 8 that taxiway now, and when you get to Dugosh, there's a 9 string of red lights across -- 10 MR. WOOD: "Do not enter." 11 MR. McKENZIE: Do not enter. 12 MR. KING: Basically, an airplane won't taxi up 13 there any more. 14 MR. McKENZIE: If you haven't seen it, it's pretty 15 impressive. 16 MR. KING: I was impressed. You can't see them 17 unless you're out there on them. It's really weird; you 18 can't see them from the side here. You can't see anything. 19 I couldn't see it from the -- I thought you hadn't put them 20 in yet. I got out on the taxiway, and it's a big blue line 21 all the way down to the end. You can see from one end of the 22 taxiway to the other. Very impressed. I hope they last. 23 It's really nice. 24 MR. McKENZIE: Good. 25 MR. KING: But there's a few of them I'd like to 50 1 maybe -- 2 MR. McKENZIE: Sure. Well, whenever you want to, 3 one night we'll meet and look at it. 4 MR. KING: And anyone else is welcome to do that 5 too. Up to one. 6 MR. McKENZIE: Absolutely. The next thing is our 7 new -- yeah, up to one. Our next update item is, we poured 8 the concrete slabs last week for our new directional signs 9 that will be going on these four entrances onto the apron. 10 That's going to be E-1, -2, -3, and -4, because that's 11 Taxiway Echo that Mooney's taxiing on right now. That'll 12 alleviate a lot of confusion out here during the day when 13 we're busy as to which taxi lane to turn off of. We've been 14 working on this for about four years, so we finally pulled 15 the trigger on it. We are putting two more cameras up out 16 here in front of the building. We'll -- I'll go over that 17 with you guys offline, tell you where we're going to put 18 them, but we're adding two more security cameras, which will 19 be recording all the time. 20 MR. WALTERS: Is that based on need? 21 MR. KING: Yes, sir. 22 MR. WALTERS: Was there an incident? 23 MR. McKENZIE: No, it's to prevent an incident, 24 hopefully. 25 MR. WALTERS: Okay. All right. 51 1 MR. KING: Okay. 2 MR. McKENZIE: And we have two new air conditioning 3 units that we're going to install down at the Brinkman 4 hangar, two of those offices. Those are original 5 air-conditioners down there, and we are installing them -- 6 we've -- that will happen in the next 10 -- 8 to 10 days. 7 MR. WOOD: Where's that? 8 MR. McKENZIE: We got those through a grant, so 9 it's not -- it's not -- we're not pulling out of that. So, 10 it's -- one of them was for Granger, and the other one was in 11 Kerrville Aviation's new little side facility there. So -- 12 but we got that done with RAMP grant. 13 MR. KING: Window units? 14 MR. McKENZIE: No, they're not. Unfortunately, 15 they're not. I'm sorry, Bill, you wanted to ask something? 16 MR. WOOD: You anticipated my question. 17 COMMISSIONER LETZ: Did you ever look at renting 18 that space, I take it? 19 MR. GRIFFIN: We rented some. 20 MR. McKENZIE: We've rented some of it already. 21 MR. KING: As soon as we find out -- again, it 22 requires some work. 23 MR. WOOD: That's a good question, though. If the 24 people leasing the hangar aren't using it, then we can lease 25 it. 52 1 MR. KING: How many offices do we have that they're 2 not using? 3 MR. McKENZIE: Probably five or six still open. 4 MR. KING: Okay. 5 MR. McKENZIE: Yeah. Five, anyway. 6 MR. WOOD: They got a parking area, and one there. 7 MR. McKENZIE: One here. 8 MR. GRIFFIN: So we've got some office space 9 available. 10 MR. McKENZIE: Anyway, that's all I've got for 11 updates. 12 MR. KING: Okay. Anybody else have anything? 13 MR. GRIFFIN: No, sir. 14 MR. KING: Okay. Motion to adjourn? 15 MR. WALTERS: Motion to adjourn. 16 MR. KING: Second? 17 MR. GRIFFIN: I'll second. 18 MR. KING: All in favor? 19 (The motion carried by unanimous vote, 4-0.) 20 MR. KING: Thank you very much. 21 (The Airport Board meeting adjourned at 9:37 a.m.) 22 - - - - - - - - - - 23 24 25 53 1 STATE OF TEXAS | 2 COUNTY OF KERR | 3 I, Kathy Banik, official reporter for Kerr County, 4 Texas, do hereby certify that the above and foregoing is a 5 true and complete transcription of my stenotype notes taken 6 at the time and place heretofore set forth. 7 DATED at Kerrville, Texas, this 22nd day of July, 2014. 8 _______________________________ Kathy Banik, Texas CSR # 6483 9 Expiration Date: 12/31/14 Official Court Reporter 10 Kerr County, Texas 700 Main Street 11 Kerrville, Texas 78028 Phone: 830-792-2295 12 13 14 15 16 17 18 19 20 21 22 23 24 25