1 2 3 KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 4 Regular Meeting 5 Monday, October 19, 2015 6 8:30 a.m. 7 Airport Terminal Conference Room 8 1877 Airport Loop Road 9 Kerrville, Texas 10 11 MEMBERS PRESENT: MEMBERS ABSENT: 12 Stephen King, President Corey Walters, Vice-President Ed Livermore 13 Bill Wood Kirk Griffin 14 15 AIRPORT BOARD STAFF PRESENT: Bruce McKenzie, Airport Manager 16 Carole Dungan, Executive Assistant 17 COUNTY STAFF PRESENT: 18 Tom Moser, Commissioner Pct. 2 Jonathan Letz, Commissioner Pct. 3 19 Brenda Doss, Auditor James Robles, Assistant Auditor 20 21 CITY STAFF PRESENT: Jack Pratt, Mayor 22 Sandra Yarbrough, Finance Director 23 VISITORS: 24 Joey Kennedy, Kerrville Aviation Rod Wehmeyer, Dugosh Aircraft 25 David Behrens, Dugosh Aircraft 2 1 I N D E X October 19, 2015 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 9-21-2015 Board Meeting Minutes 4 8 4. DISCUSSION AND POSSIBLE ACTION 4A Monthly Financials 4 9 4B Dugosh Aircraft - Kerrville Hangar 1 Lease 10 10 4C Engagement letter for independent auditor 13 11 4D Building 19 (Paint Hangar) structural integrity 14 12 4E 2015-2016 holiday schedule 26 13 5. INFORMATION AND DISCUSSION: 14 5A General Update 27 15 6. EXECUTIVE SESSION -- 16 7. ADJOURNMENT 34 17 18 19 20 21 22 23 24 25 3 1 On Monday, October 19, 2015, 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, October 19th, 9 2015. Visitors' forum. At this time, any person with 10 business not scheduled on the agenda may speak to the Airport 11 Board. No deliberation or action maybe taken on these items 12 because the Open Meetings Act requires it to be posted for 72 13 hours before the meeting. Visitors are asked to limit their 14 presentations to three minutes. Anyone want to be heard? 15 Item 2. Kerrville/Kerr County Joint Airport Board 16 forum. At this time, any member of the Kerrville joint -- 17 Kerrville/Kerr County Joint Airport Board may speak to the 18 board or the public present on any matter not scheduled on 19 the agenda. No action may be taken on these items because 20 the Open Meetings Act requires 72 hours notice. If formal 21 action is required, it will be placed on the agenda for a 22 future meeting. Anybody? 23 Consent agenda, Item 3. All items listed below on 24 the consent agenda are considered routine by the board and 25 will be enacted in one motion. There will not be separate 4 1 discussion of items unless a board member or citizen so 2 requests, in which event the item will be removed from the 3 general order of business and considered in a normal 4 sequence. 3A, approval of the September 21st board minutes. 5 MR. LIVERMORE: So moved. 6 MR. KING: Anybody have -- 7 MR. LIVERMORE: So moved. 8 MR. KING: I have a motion. Second? 9 MR. WOOD: I'll second. 10 MR. KING: Mr. Wood. Any discussion on the 11 minutes? All in favor? 12 (The motion carried by unanimous vote, 4-0.) 13 MR. KING: 4-0. Mr. Walters -- Mr. Walters is not 14 here; we have four people. Item 4, discussion and possible 15 action. Monthly financials. James? Who's going to -- oh, 16 James is here. 17 MR. GRIFFIN: He's here. 18 MR. KING: Anything we need to look at? 19 MR. ROBLES: I think we had a couple questions. 20 MR. KING: Okay. 21 MR. LIVERMORE: Yeah, okay. Do you want me to go 22 ahead? Well, I was looking through this, and I noticed that, 23 for example, on page -- I never know these page numbers, but 24 I think it's 3. The -- it's just interesting to note, since 25 this is the end of the fiscal year, so this is a fairly 5 1 complete financial report compared -- you know, year over 2 year, that our City and County contribution, the reduction is 3 showing there. For example, the prior year, which I guess 4 was the '14, the City and County each contributed a little 5 over 80,000. In this particular year, it's 47. And as 6 everyone knows, it's going down to -- what is it? 7 MR. McKENZIE: 35. 8 MR. LIVERMORE: 35 in the new year. So, I just 9 thought that was interesting to see that and point it out. 10 Our rental income is -- where is it? My eyes aren't falling 11 on it. The T-hangar leases are up dramatically, which, 12 again, that shows the progress that's been made there. Our 13 fuel is basically level. And I was wondering, Bruce, what 14 the instrument repairs were about. 15 MR. McKENZIE: That's the AWAS, and we have to have 16 the REIL's adjusted, the runway end identification lights. 17 We have to have the PAPI's taken care of. Any maintenance to 18 the electronic X's that we used last week to shut the runway 19 down, things like that, instruments and apparatus. 20 MR. GRIFFIN: Ceilometer. 21 MR. McKENZIE: We got a new ceilometer, thank you. 22 MR. GRIFFIN: That is about the biggest -- 23 MR. McKENZIE: We got a new ceilometer on our AWAS 24 system. 25 MR. LIVERMORE: Okay. 6 1 MR. McKENZIE: But things of that nature. 2 MR. WOOD: Looking at Page 3, as Ed referred to, I 3 can see that parking lot leases are down considerably over 4 where they were last year. I wonder if there's a -- 5 MR. McKENZIE: The reason for that, Bill, is 6 because sometimes these gentlemen and ladies who have -- 7 different folks that put their cars out there -- vehicles, 8 sometimes they pay a year in advance; sometimes they pay 9 month-to-month. And I think we've lost one. Is that -- 10 MS. DUNGAN: Two. 11 MR. McKENZIE: We've lost two through attrition. 12 We just -- they moved. So -- 13 MR. WOOD: Okay. 14 MAYOR PRATT: Does that mean there were no gains? 15 MR. McKENZIE: No one's -- 16 MR. KING: Have we purged the parking lot lately? 17 MR. McKENZIE: Yes. 18 MR. KING: Gone through and checked it out? 19 MR. McKENZIE: We do that. 20 MS. DUNGAN: I do that quarterly. 21 MR. KING: You found no violators? 22 MR. McKENZIE: We've found them before, but we -- 23 MS. DUNGAN: We've found them before. We hunt them 24 down. 25 MR. KING: Okay. 7 1 MR. WOOD: Good job, Carol. 2 MR. KING: Anybody else have anything? Anything 3 else, James? 4 MR. ROBLES: No. I think it's noteworthy that 5 y'all collected 83,703 more than y'all spent, so good job. 6 MR. McKENZIE: Thank you. 7 MR. KING: That's good. 8 MR. ROBLES: As for the capital side, we still have 9 352,000 left on the roof. 10 MR. KING: On the what? 11 MR. ROBLES: Mooney roof. 12 MR. KING: On the Mooney roof. 13 MAYOR PRATT: What was the amount? 14 MR. ROBLES: 352,000. 15 MR. KING: Okay. Anybody else have anything? 16 Motion to approve? 17 MR. WOOD: I move we approve the report. 18 MR. KING: Second? 19 MR. GRIFFIN: I'll second. 20 MR. KING: Kirk. And no discussion? All in favor? 21 (The motion carried by unanimous vote, 4-0.) 22 MR. KING: 4-0. Item 4B, Dugosh Aircraft. 23 COMMISSIONER LETZ: Steve, quick comment, going 24 back to your Mooney roof. If you look at your numbers, that 25 doesn't include Mooney's portion, correct? 8 1 MR. ROBLES: No. 2 COMMISSIONER LETZ: That's ours. 3 MR. LIVERMORE: The public portion. 4 MAYOR PRATT: And I had another question. Are you 5 showing retainage separate, or -- 6 MR. ROBLES: I believe. I haven't looked at that 7 in a while. 8 MS. DOSS: I know the architect retainage is 9 separate. 10 MR. ROBLES: Yeah, I think they subtract it out. 11 MR. McKENZIE: We have that separate. That's 12 separate, you're correct. 13 MAYOR PRATT: Why the architect? 14 MR. McKENZIE: Primero, our engineering firm. 15 MAYOR PRATT: Okay. 16 MR. LIVERMORE: That's separate in it. 17 MR. McKENZIE: Yes, sir. 18 MR. LIVERMORE: I noticed that was separate. 19 MAYOR PRATT: But the contractor themselves -- 20 MS. DUNGAN: Right now it's all in one. 21 COMMISSIONER LETZ: 'Cause I'm just thinking of our 22 other projects we have; I think it's separate, I believe. 23 MR. KING: So -- James, so we spent 150,000, 24 basically, less this year than we did last year, on the 25 financials? 9 1 MR. ROBLES: On which fund? 2 MR. KING: On the total. Total expenditures. Is 3 that what that Page 11 is telling us? 4 MR. ROBLES: Yes, that's correct. That's for the 5 capital account. 6 MR. LIVERMORE: That's capital. 7 MR. KING: That's the capital account. Let me go 8 back one. You're right, that was capital. So, on 9 expenditures, it was 904 versus one million? 10 MR. WOOD: Total expenditures is 147 versus 316. 11 MR. KING: No, total expenditures for the whole 12 airport, the operating fund. 13 MR. WOOD: I was -- 14 MR. McKENZIE: Page 1. 15 MR. LIVERMORE: Carol's got a number, Mr. Chairman, 16 that is kind of interesting. It shows the operational fund 17 balance, how it's gotten healthier over the last two or 18 three, four years. She's got a spreadsheet on that. We've 19 added about $100,000, in round numbers, -- 20 MR. KING: Right. 21 MR. LIVERMORE: -- to our -- to our fund balance. 22 MR. KING: Okay. 23 MR. LIVERMORE: In about, what, three years? Five 24 years. 25 MS. DUNGAN: Five years. 10 1 MR. KING: So, James, where on this sheet is total 2 expenditures -- total expenditures for this year versus last 3 year? 4 MR. ROBLES: Page 7. 5 MR. KING: 7? 6 MR. ROBLES: 7, yeah. 7 MR. KING: Okay, there we go. There we go. Prior 8 year, 528,000. Year-to-date, -- 9 MR. ROBLES: 362. 10 MR. KING: -- 362. Okay, that's the number I was 11 looking for. 12 MR. LIVERMORE: But, really, in addition to that, 13 the -- as I said earlier, the really nice numbers, you can -- 14 you can sure see that trend of the subsidy decreasing. 15 MR. KING: Right. 16 MR. LIVERMORE: And that's what we're after right 17 now. 18 MR. KING: Okay. Item 4B, Dugosh Aircraft, 19 Kerrville Hangar 1 lease. Joey and Rod. 20 MR. KENNEDY: I'll really just defer to Rod. 21 Basically, in a short of it, James Gandy had some issues come 22 up in his personal life, I guess, or whatever that he could 23 no longer stay in the country, and I'll leave it at that, and 24 basically just disappeared. So, we've been kind of 25 scrambling to continue to operate. I'm obligated to provide 11 1 the services under my lease, so we've been working with the 2 guys that were left over there doing that, and so it looks 3 like we've got a new principal and some guys getting 4 involved, and they're going to continue to operate Dugosh as 5 they have, and make a few changes to accommodate the local 6 aircraft more. So -- but I'll let Rob Wehmeyer and Dave 7 Behrens tell you more. 8 MR. WEHMEYER: And I appreciate you letting us have 9 a couple minutes to kind of talk a little bit. I'm Rod 10 Wehmeyer. I live in Boerne. Some of you may know my 11 brother, Corey Wehmeyer, who worked with Joey for a number of 12 years, so kind of familiar with the area and -- and the 13 business out here. And my partner, David -- and I'm sure 14 everybody kind of knows David. With -- with Mr. Gandy's 15 business closing rather abruptly, our partnership started 16 rather quickly, and I'm not sure if David likes "Dave" or 17 "David," and he's not sure how to pronounce my last name, so 18 we're trying to work out the details. (Laughter.) So -- but 19 it's like Joe said; our -- 'cause we look at about -- we look 20 to our future and our vision and what we really want to do. 21 We both share kind of the same interests, and that was not to 22 be a maintenance facility that focuses on one brand, but 23 really be here to support and serve, really, kind of the 24 165-plus aircraft on this field. So, that's kind of our -- 25 our future and our plans to move forward. So, you know, 12 1 we're trying to kind of get things figured out. 2 We -- I think we're kind of off and running, so 3 that's really kind of the gist of it. I have a day job. 4 Kind of our partnership that we've hammered out, Dave is 5 going to be running the day-to-day operations. Like, my role 6 is really kind of the business component of it, is to help 7 kind of steer the business in the right direction and be a 8 support for him. But that's kind of the -- I guess the 9 highlights for me. Dave? 10 MR. BEHRENS: And I'll just -- I'm on the 11 maintenance side, so if y'all have any problems, you can get 12 in touch with us. 13 MR. LIVERMORE: I will say that I've had a couple 14 of -- of jobs done by these -- by the new company in the last 15 few weeks or so, and it's been very acceptable. Glad you're 16 here. 17 MR. WOOD: Have you kept quite a few of the people 18 working there? 19 MR. BEHRENS: Everybody's still there, except -- 20 some of y'all may have known Vanette. She retired, so I've 21 got a new lady -- secretary; her name is Brandy. And -- but 22 basically, we're all still there except for her and James. 23 MR. McKENZIE: And Rod -- Rod's flying a Mooney, 24 and is one of our T-hangar tenants as well. 25 MR. WEHMEYER: Oh, yeah, the new addition down 13 1 there. Good job there. 2 MR. KING: Okay. Any other questions? Do we need 3 to approve anything? 4 MR. LIVERMORE: Do we need to approve it? Is there 5 anything that actually -- action that needs to be taken? 6 MR. WOOD: It's Joey Kennedy's -- 7 MR. McKENZIE: He just needs to make the board 8 aware. He wants everyone to be aware of what's going on. 9 That's what this is. 10 MR. KING: Okay. 11 MR. LIVERMORE: Good. 12 MR. KING: Well, thank you very much. I wish you 13 well. 14 MR. WOOD: Glad to have you. 15 MR. WEHMEYER: Thank you. 16 MR. KING: Item 4C, engagement letter for the 17 independent auditor. 18 MS. DOSS: This is a standard engagement letter. 19 It has all the elements that the A.I.C.P.A. requires, and it 20 was chosen by Bruce and myself to go with the firm. They're 21 at the same rate that they were last year. 22 MR. McKENZIE: When will that be ready? 23 MS. DOSS: It will be ready by the end of the year. 24 MR. McKENZIE: The City needs it by January, so 25 that's good. 14 1 MS. YARBROUGH: That's wonderful. 2 MR. McKENZIE: Thank you. That's great. And you 3 signed it and I've signed it. 4 MR. KING: I already signed it. 5 MR. McKENZIE: And I signed it. 6 MR. KING: I signed it a while ago. 7 MR. McKENZIE: You're good to go. 8 MS. DOSS: Okay. 9 MR. KING: Okay, good. Any other questions on 10 that? None being heard, we'll move to Item 4D, paint -- 11 Building 19, the paint hangar, structural integrity. 12 MR. McKENZIE: At the last meeting, we had a 13 discussion regarding the inside of the building. We got the 14 approaches and the infrastructure talked through. The inside 15 of the building, there's several things that I'd like to 16 visit with you about. One is the interior walls. The 17 question was were they load-bearing walls or not? They are 18 not. They're cinder-block walls, and they're not 19 load-bearing. Once we really got in there and -- and 20 investigated it, they're not load-bearing walls. I also 21 talked to Mike Jenschke whose been at Mooney for decades; he 22 said that they were not load-bearing walls as well. Plus I 23 had another contractor here in town look at it, and he said 24 they're not load-bearing walls, so we're -- I'm not a 25 structural engineer, but we're reasonably sure -- you can see 15 1 the trusses up there. It's not a load-bearing structure. 2 That's one thing. The second thing, y'all have probably all 3 noticed over the years, there's a big structure on top of 4 that paint hangar. 5 MR. KING: Mm-hmm. 6 MR. McKENZIE: It's about a 12 by 10 by 5 or 7 something. That's the heater that was put up there many 8 years ago. By the way, the year that that hangar was -- it's 9 over 50 years old, is where I'm going with it. That building 10 is over 50 years old, so it's an old structure. We've 11 discovered that in the last four weeks. It's an old 12 building. But that structure, the heater was put up there to 13 keep the paint hangar, you know, a comfortable temperature in 14 the wintertime. It's got plenty -- I mean, it's huge. But, 15 anyway, if we ever do anything with that building, we're 16 probably -- best thing to do would be to just lift that off, 17 set it on a trailer and take it right down there across the 18 road to run it across the scales. That's probably where 19 we're at with that. And Mike Jenschke concurred with me; he 20 said it's gone. So, the walls are load-bearing, and what's 21 holding that up, the only thing that's in that building, 22 there's four big -- looks like drill pipe inside the 23 cinder-block. That's holding that up. 24 MR. KING: Holding what up? 25 MR. GRIFFIN: The heater. 16 1 MR. McKENZIE: That's holding the structure up. 2 MR. KING: Oh, really? 3 MR. McKENZIE: It's inside. It's in the building, 4 but it's inside the cinder-block; it's built around it. 5 MR. GRIFFIN: Some of the walls are cinder-block, 6 and some of them are just metal, so what they did was they 7 put four posts right in the center of the building to support 8 the weight on the roof of the heater, and then wrapped it in 9 metal or indoor cinder-block, depending on which wall it is. 10 MR. KING: So, they're not supporting the roof? 11 MR. GRIFFIN: They're not supporting the roof. All 12 they're doing is taking the load of the heater. 13 MR. McKENZIE: Taking the heater load. 14 MR. GRIFFIN: The roof load is suspended on the 15 outside walls of the building. 16 MR. McKENZIE: And the other question that was 17 asked was about the integrity of the roof, if it leaked or 18 not. When we were blessed nine days ago with six-tenths of 19 an inch of rain, I went to the building, and I did not 20 observe it leaking any, nor did I observe where it had leaked 21 anywhere. So, from that standpoint, the roof appears to be 22 sound. 23 MR. LIVERMORE: Check it again. 24 MR. KING: How big is the hangar? 25 MR. McKENZIE: 10,000 square feet, 100-by-100. 17 1 MR. GRIFFIN: If you took all that cinder-block 2 out, you'd have one big hangar. 3 MR. KING: One big 10,000-square-foot hangar. 4 MR. GRIFFIN: The only real -- the only 5 semi-permanent wall in there that you probably have to leave 6 is the one that's around the electrical room, is a 7 cinder-block structure. You can just leave it there. The 8 building -- the structural integrity of the building is not 9 dependent on those walls at all, but it just makes the 10 electrical room -- isolates it from the rest. 11 MR. KING: Is it a concrete floor? 12 MR. GRIFFIN: All concrete. 13 MR. McKENZIE: Yes, sir, it's all concrete. 14 MR. WOOD: You know, I guess our effort has been to 15 try to figure out what to do with that building, how to make 16 money off of it. And, of course, we probably have to have 17 further discussion, but it sounds like, just listening to it, 18 that if you take that heater off and get rid of the posts and 19 make a storage hangar out of it, that'd be the cheapest way 20 for us. You don't want to upgrade the electrical and 21 everything. 22 MR. GRIFFIN: And you could -- it wouldn't 23 be cost-prohibitive to take those interior walls out at all 24 and still have a great structure. That's kind of what was 25 discovered. 18 1 MR. WOOD: The advantage of it is, I think, the 2 size of it. 3 MR. GRIFFIN: Yeah, absolutely. The doors are 4 almost 50 feet, so, you know, you can get a -- if those 5 interior walls were gone, you could get a large aircraft in 6 there. 7 MR. WOOD: Storage space is the revenue. 8 MR. GRIFFIN: Yeah, and you're going to run -- 9 MR. KING: Four doors? 10 MR. GRIFFIN: Four doors, yeah. 11 MR. LIVERMORE: The doors work? 12 MR. GRIFFIN: They all work. 13 MR. McKENZIE: They all slide. 14 MR. GRIFFIN: They need some new weatherstripping 15 on them, but they all move very, very easily. 16 MR. WOOD: So, should we -- 17 MR. McKENZIE: The problem with it -- it's not a 18 problem; it's what we discussed last time, is ingress and 19 egress. 20 MR. KING: Right, sure. 21 MR. McKENZIE: We have to put in a road from off of 22 Peterson Farm Road. 23 MR. KING: Right. 24 MR. WOOD: One of the costs associated with making 25 it a revenue-producer would be getting -- 19 1 MR. GRIFFIN: Access. 2 MR. WOOD: -- access and taking the big heater off. 3 MR. McKENZIE: Yeah, we need to take the heater 4 off. 5 MR. GRIFFIN: Getting those interior walls gone. 6 MR. McKENZIE: We'll scale the heater across the 7 road and be done with it. 8 MR. WOOD: So, what we've got to do is look at the 9 cost and compare that to the revenue we might get. I feel 10 like we'd fill it up if we got that -- 11 MR. McKENZIE: We could. 12 MR. LIVERMORE: Airplane storage? 13 MR. GRIFFIN: Yeah, that would fit. 14 MR. LIVERMORE: That one would? 15 MR. KING: Okay. 16 MR. GRIFFIN: Several of them. 17 MR. KING: Do you know -- do you know how many feet 18 of road we'd have to have to get over there? 19 MR. GRIFFIN: It's from the gate to the building. 20 It looks about 850. 21 MR. McKENZIE: I was going to say 900 feet. 22 MR. KING: 900 feet? 23 MR. GRIFFIN: Yeah, 900 feet by, maybe, 30 foot 24 paved surface street. Anyway, it's less than 1,000 feet, and 25 30 feet wide. 20 1 MR. KING: Okay. 2 MR. McKENZIE: We wouldn't have to hot mix; we 3 could just use a chip seal. 4 MR. GRIFFIN: There is a small area that would 5 require a couple culverts be placed in, just because it is 6 the drainage off of that -- so -- but other than that, we've 7 got the base material. We've goat a hillside of base 8 material. And, you know, so that -- this car access is 9 fairly easy after we solve the gate. And the airport 10 security issue, we have to add some fencing. 11 MR. LIVERMORE: What about taxiing on the runway? 12 MR. GRIFFIN: That's -- we have to rebuild the 13 taxiway, yeah. 14 MR. LIVERMORE: It's there? 15 MR. GRIFFIN: It's there. 16 MR. LIVERMORE: We just have to -- 17 MR. McKENZIE: It's in disrepair, yes. 18 MR. WOOD: So, really, we just need to look at the 19 expenses involved and look at the type of payout, how much 20 rent we could do, and see if it's worth doing. 21 MR. GRIFFIN: The structure's good. 22 MR. LIVERMORE: That's really impressive. 23 MR. GRIFFIN: That one's in good shape. The old 24 U-shaped engineering building, that's a different story. 25 MR. KING: Does have it lights in it? 21 1 MR. GRIFFIN: It's got lights. 2 MR. McKENZIE: It does, Steve, but they're not up 3 to code. They're -- the lights are explosion-proof lights, 4 because that's where they painted. Some work and some don't, 5 and they're not up to code. 6 MR. GRIFFIN: It wouldn't cost a whole lot to strip 7 that out and -- 8 MR. WOOD: Put some -- 9 MR. GRIFFIN: -- put some new lights in. 10 MR. McKENZIE: Like we have in the new hangar, LED 11 fluorescents, just a few of them, just to give the folks a 12 little bit of light. 13 MR. KING: Okay. How is the floor inside the 14 building? As I recall, it's concrete. 15 MR. McKENZIE: It's concrete. There's four lifts 16 that could be a potential problem, because those lifts all 17 have reservoirs beneath them that are probably made out of 18 steel, and they're leaking. You know they are. So, if we 19 touch that, it could be a problem, unless we just remove 20 those. 21 MR. GRIFFIN: You could take the top off and put a 22 seal -- 23 COMMISSIONER MOSER: Seal it. 24 MR. McKENZIE: Seal them off and not try to take 25 the tanks out. 22 1 MR. KING: Yeah. 2 MR. McKENZIE: We don't want to get into that. 3 MR. LIVERMORE: Could you fill the tank with 4 concrete, or is that what you're saying we wouldn't want to 5 do? 6 MR. McKENZIE: We don't want to go down below the 7 grade of that concrete, because then that -- that will 8 trigger a Phase I environmental study, and that will 9 immediately trigger, almost guaranteed, a Phase II, because 10 of those reservoirs under that. We don't want to get into -- 11 just like Tom said, seal it -- or like Steve said. 12 COMMISSIONER LETZ: I don't want to ask, but what's 13 in the reservoirs? 14 MR. McKENZIE: Hydraulic lifts, you know, like in 15 the old filling stations. They used to raise the planes up 16 so they could paint under the wings. 17 MR. GRIFFIN: It literally looks like an old gas 18 station lift. 19 MR. McKENZIE: That's what it is. I'm sure those 20 reservoirs -- 21 MR. GRIFFIN: Nothing fancy about it. 22 MR. McKENZIE: But they could be removed, like Tom 23 said. 24 MR. GRIFFIN: Because you could unbolt it and seal 25 it off with a steel plate or something. 23 1 MR. KING: Okay. Well, I guess, you know, you just 2 need to figure out -- Bruce, you need to figure out how much 3 it costs to build a road across there. 4 MR. McKENZIE: Okay. 5 MR. KING: A road and -- 6 MR. WOOD: Taxiway. 7 MR. KING: -- taxiway. Just get the materials. 8 Get the materials, and we'll -- 9 MR. McKENZIE: Materials only? 10 MR. KING: Well, start with materials, and then 11 we'll go to our favorite road-building crew. (Laughter.) 12 COMMISSIONER MOSER: And tear out the walls. 13 MR. KING: I think the walls -- I've looked at it 14 before. The walls are not big. That's something somebody 15 could do with a -- 16 MR. GRIFFIN: Easily. A local contractor. We've 17 got plenty of guys capable of doing that. 18 MR. KING: There's lots of room in there. You can 19 push all that stuff over, push -- 20 MR. GRIFFIN: Absolutely. 21 COMMISSIONER MOSER: Maybe somebody on the board 22 could do that; probably would want to do it. 23 MR. GRIFFIN: Maybe if anybody has some aggressions 24 that they want to work out. 25 MR. KING: Aggression, there we go. So, get that, 24 1 maybe, Bruce, and kind of see where we're at. 2 MR. McKENZIE: Okay. 3 MR. KING: I mean, the rent on it, I mean, I think 4 is probably -- even at $3 a foot, is 30,000 a year in rent, 5 you know. If we could get adequate taxiways and stuff in 6 there, so -- 7 MR. McKENZIE: Right now, you can put four -- four 8 single-engine aircraft in there; for example, four Mooneys. 9 That's what they used to put in there. Or you can take the 10 walls out, put one of those in there. 11 MR. KING: Well, it's bigger than that hangar -- 12 same size hangar -- isn't that hangar that y'all are going to 13 work maintenance out of -- is that 10,000? 14 MR. McKENZIE: No. 15 MR. KING: I don't think that one's 10,000. 16 MS. DUNGAN: His? 17 MR. KING: That's 20,000. 10,000 is, I mean, a 18 fairly good size hangar. You can put a lot of airplanes in 19 there, so -- with multiple doors. If we just had an access 20 out of two doors -- let's say we just had two doors, and we 21 used two doors for access, then that would make it a lot 22 easier. So, okay. I think it's worth pursuing, especially 23 in light of the shortage of space on this airport right now. 24 MR. McKENZIE: Yes, sir. 25 MR. KING: A lot of people looking for space. 25 1 COMMISSIONER MOSER: How much space was the guy 2 from Hondo looking for? 3 MR. McKENZIE: 12,000. But he said he could 4 come -- 5 COMMISSIONER MOSER: We're only off by 2,000. 6 MR. McKENZIE: I showed him that hangar, and he -- 7 he liked it initially, and then he kind of backed off because 8 of the tail heighth. He's working on Falcons. He could get 9 a Hawker in there, but he can't get a Falcon in, and he can't 10 get, I think, anything bigger than that. 11 MR. KING: How high is the door? 18 feet? 12 MR. McKENZIE: It's 17 or 18 feet, maybe. You need 13 about 20. You need 23 for a -- 14 MR. KING: Okay. Well, let's pursue it a little 15 more. I mean, it's something we have, an asset we have. We 16 could get, you know, 30,000 a year in income out of it. I 17 bet we can pay it out in a couple years. Okay. 18 MR. WOOD: Better than sitting there idle. 19 MR. KING: I think if you can knock all those walls 20 out, it looks a lot more appealing. 21 MR. GRIFFIN: I think so. I agree. 22 MR. McKENZIE: It does. 23 MR. KING: I really do. I don't think knocking 24 those walls out will be a big problem. I think we can do 25 that with a backhoe or something, shoving with a bucket, 26 1 shoving some stuff over. Okay. All right, what else? 2 Anything else on that? 3 MR. McKENZIE: No, sir, that's all I have. 4 MR. KING: Holiday schedule. 5 MR. McKENZIE: This is the same as it was last year 6 and the years before. This is the new fiscal year. I'm just 7 bringing it to the board for your approval for the coming 8 year. 9 MR. KING: Okay. Do we get the same holidays? 10 MR. McKENZIE: Sure. And we don't take all of them 11 that the other folks take. 12 MR. KING: Okay. All right. Item 5A, general 13 update. 14 MR. McKENZIE: We need to approve that. 15 MR. KING: Oh, you need to approve the holiday 16 schedule? 17 MR. McKENZIE: Yes, sir. 18 MR. KING: Oh, really? Okay. We need a motion to 19 approve the holiday schedule. 20 MR. GRIFFIN: So moved. 21 MR. LIVERMORE: So moved -- I'm sorry. 22 MR. KING: It was a tie. Second? 23 MR. LIVERMORE: Second. 24 MR. KING: Mr. Livermore seconded that. Any 25 discussion on that? Item -- excuse me. All in favor? 27 1 (The motion carried by unanimous vote, 4-0.) 2 MR. KING: 4-0. Item 5, information and 3 discussion. General update. 4 MR. McKENZIE: As have you been watching the last 5 several days, we have now completed the resealing of Runway 6 3/21, 2,600 feet of it. It's now been restriped, as well as 7 the parallel taxiway, and it's been restriped as well. We -- 8 last weak we did Echo. That's been reopened. It's been 9 sealed and restriped. 10 MR. KING: Mm-hmm. 11 MR. McKENZIE: The only thing -- and I also did the 12 little taxiway between our old T-hangars and Mr. Drane's 13 hangar; that taxiway-slash-road needed to be sealed. It's 14 sealed and looks really nice now. The only thing they lack, 15 and they're going to do it today -- they're scheduled to do 16 it today, is the little parking area adjacent to Brinkman 17 parking lot. While I have them here, I'm doing that parking 18 lot. Everything on that end of the airport should be in good 19 shape for several years. 20 MR. KING: They're doing a good job. 21 MR. McKENZIE: Yes, sir. 22 MR. GRIFFIN: Very nice. 23 MR. KING: And that's a local group, right? 24 MR. McKENZIE: Yes, sir. They just completed a job 25 at the airport in McGregor as well. 28 1 MR. KING: That's good. 2 MR. McKENZIE: So that went real well, and it looks 3 good. And next year we want to try to do our 6,000-foot 4 runway. 5 MR. KING: How much did that cost? 6 MR. McKENZIE: $35,000. 7 MR. KING: 35,000. Can we do some jobs for the 8 state, maybe? (Laughter.) We'll subcontract that guy and 9 charge them 500,000 and do it? Sounds like a pretty good 10 deal. We might find the source of our revenue. 11 MR. LIVERMORE: The less said... 12 MR. KING: We'll be in a -- 13 MAYOR PRATT: You're being quoted over there in the 14 corner. 15 MR. KING: Well, the state wanted to do it for 16 800,000, right? 17 MAYOR PRATT: It's being recorded over there, 18 Steve, okay? 19 MR. KING: Shoot, I'm just looking for sources of 20 income. 21 MR. LIVERMORE: Just as a thought, Mr. Chairman, 22 just so y'all know, I've had a couple-three conversations, 23 informal, not specific, just with some local restaurant 24 operators. 25 MR. KING: Oh, yeah? 29 1 MR. LIVERMORE: Just to make sure they saw the news 2 story or whatever and knew that we were open to a discussion 3 about a food operation out here. And that's all it is, 4 just -- 5 MR. KING: Okay. 6 MR. LIVERMORE: -- just kind of make sure they 7 knew. 8 MR. KING: Anything else? 9 MR. WOOD: Any takers? 10 MR. LIVERMORE: No takers yet. 11 MR. KING: Any free food? No? How about a food 12 trailer? Have you thought of that? 13 MR. LIVERMORE: Actually -- well, that's 14 interesting. They're going to have five of those every day 15 at the new James Avery. 16 MR. KING: See? 17 MR. LIVERMORE: They're going to plug in over 18 there, and there's a thought that a lot of those people would 19 want to eat over here if we had such a place. 20 MR. KING: I thought maybe we could ease into it 21 with a food truck. We have got a few trucks in Seaside, 22 Florida, where I just came back from. It's a very nice area, 23 too. 24 MR. LIVERMORE: I think they're going to be real 25 nice across the street. 30 1 MR. KING: Okay. Anybody else have anything? Is 2 that it, Bruce? 3 MR. McKENZIE: Yes, sir. 4 MR. KING: Everything else is okay? How many are 5 we down, the one employee? Have we lost our part-time 6 employee? 7 MR. McKENZIE: Lost our part-time, and we lost -- 8 Jason had a motorcycle accident over the weekend and broke 9 his foot. He was sitting right in there a while ago with a 10 cast on, so I don't know. I've got to talk to him after the 11 meeting to see where we stand. 12 MR. KING: Really? 13 MS. DUNGAN: He has an appointment with Dr. -- oh, 14 gosh, the orthopedic surgeon -- Mitchell on Wednesday, 15 because he broke his big toe in two places, and may have to 16 have surgery to repair it. 17 COMMISSIONER MOSER: Good thing Carol can drive a 18 tractor. 19 MR. McKENZIE: Both of us might be out there. 20 MR. KING: Really? 21 MR. GRIFFIN: Good thing the grass isn't growing 22 too fast. 23 MR. KING: I want to go on record; I did tell him 24 to be careful on that motorcycle. 25 MR. LIVERMORE: I've argued with him so much about 31 1 that. I asked him not to buy the thing. 2 MR. KING: Oh my gosh. 3 MR. WOOD: I was just going to ask if there's 4 anything about the Mooney roof that we need to talk about? 5 MR. McKENZIE: I haven't heard anything. Very 6 little since the last update when Barry was here last time. 7 They were still a little bit uneasy with the pace of work 8 over there. I saw an e-mail about that. Now, I haven't seen 9 anything in probably the last 10 days over there; it's been 10 quiet. And I know that those folks, some of their management 11 staff has been up here talking to mine. That part I do know, 12 so -- and I haven't heard anything since then. So -- 13 MR. GRIFFIN: The Cram Roofing guys have moved a 14 new semi in over there. 15 MR. KING: They have? 16 MR. GRIFFIN: There's some new hardware over there, 17 so maybe something has happened, 'cause I noticed it this 18 weekend. 19 MR. McKENZIE: But beyond that, Bill, as far as I 20 know, it's still moving along. 21 COMMISSIONER MOSER: Still scheduled to be complete 22 in January-February? 23 MR. McKENZIE: February. 24 COMMISSIONER MOSER: December, January, February. 25 MAYOR PRATT: The end of February. 32 1 COMMISSIONER MOSER: End of February? 2 MR. McKENZIE: If the weather doesn't -- 3 MR. WOOD: The main concern I've got is, have they 4 resolved what they're going to do about the extras? Are they 5 going to cut some of the work out in order to pay for the 6 extras? Or -- 7 MR. GRIFFIN: I think they're working on that. 8 MAYOR PRATT: They're working on that. 9 MR. GRIFFIN: And it's not -- the amount is not 10 great. 11 MR. McKENZIE: Yeah. A million and a half dollar 12 contract, the change order, if there's going to be one, was 13 at $20,000, so you're looking at less than one percent. 14 MR. WOOD: Lucky. 15 MR. GRIFFIN: Yeah, so it's not a -- 16 MR. McKENZIE: To-date, that's what we got. 17 MR. GRIFFIN: That's what we have, I understand, 18 right now. 19 MR. McKENZIE: Right. 20 MR. KING: I saw Jerry at Wing King; we met, and he 21 said he was -- his main concern was pace of work, the pace of 22 the work. He was concerned about how long it was taking. He 23 was concerned about the change orders, because he didn't 24 really know that much about them. He wasn't sure, said he 25 really hasn't had much disclosed to him. 33 1 MR. McKENZIE: Sure. 2 MR. KING: Anyway, all right. Anything else? What 3 about Jason? Is it -- going back to our laborer, is there a 4 chance we could get that part-time guy to help out a little 5 bit more? I mean, if we moved a few things around in our 6 brand-new budget we're starting? 7 MR. McKENZIE: I can try. Maybe. 8 MR. KING: Maybe for a couple of months. He's 9 got -- it's not a huge number as far as what we're paying the 10 guy. I mean, could you take that into consideration? 11 MR. McKENZIE: Certainly, we can. I need to talk 12 to George and see. My understanding, he took a job with a 13 beer distributor in Fredericksburg. 14 MS. DUNGAN: It didn't go through. 15 MR. McKENZIE: It didn't go through, then. See, 16 this just happened, so I just -- 17 MR. LIVERMORE: Did Jason just injure it this 18 morning? 19 MR. McKENZIE: He was in here this morning with a 20 cast on. 21 MR. LIVERMORE: Was he riding his motorcycle this 22 morning? 23 MR. McKENZIE: No, he was in his wife's car. 24 MR. LIVERMORE: 'Cause I saw someone when I was 25 coming in on a motorcycle going that way. 34 1 MR. McKENZIE: I don't know, maybe he is. 2 MS. DUNGAN: No, his wife brought him in. I made 3 sure of that. 4 MR. KING: Okay. Anyway, why don't you look into 5 that? 6 MR. McKENZIE: Sure. 7 MR. KING: That's an option. We might have the 8 money. 9 MR. McKENZIE: Okay. 10 MR. KING: Seems like we do pretty good. 11 MR. McKENZIE: Okay, thank you. 12 MR. KING: Anything else? Anybody else from the 13 crowd -- crowd of people in the audience? Nope. 14 MR. LIVERMORE: Do y'all want to contribute more 15 money, you two guys? 16 COMMISSIONER MOSER: Looks like you don't need it. 17 MR. KING: I know. That's what I -- motion to 18 adjourn? 19 MR. WOOD: You better be quiet; they might ask for 20 a refund. 21 MR. LIVERMORE: I'm going to adjourn. 22 MR. KING: All in favor? Thank you very much. 23 (Airport Board meeting adjourned at 9:08 a.m.) 24 - - - - - - - - - - - 25 35 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 19th day of October, 8 2015. 9 _______________________________ Kathy Banik, Texas CSR # 6483 10 Expiration Date: 12/31/16 Official Court Reporter 11 Kerr County, Texas 700 Main Street 12 Kerrville, Texas 78028 Phone: 830-792-2295 13 14 15 16 17 18 19 20 21 22 23 24 25