1 2 3 4 KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 5 Budget Workshop 6 Monday, March 16, 2015 7 10:20 a.m. 8 Airport Terminal Conference Room 9 1877 Airport Loop Road 10 Kerrville, Texas 11 12 MEMBERS PRESENT: MEMBERS ABSENT: 13 Stephen King, President Corey Walters, Vice-President 14 Ed Livermore Bill Wood 15 Kirk Griffin 16 AIRPORT BOARD STAFF PRESENT: 17 Bruce McKenzie, Airport Manager Carole Dungan, Executive Assistant 18 19 COUNTY STAFF PRESENT: James Robles, Assistant Auditor 20 21 CITY STAFF PRESENT: Jack Pratt, Mayor 22 Sandra Yarbrough, Finance Director 23 VISITORS: 24 Patrick O'Fiel, Airport attorney 25 2 1 On Monday, March 16, 2015, at 8:30 a.m., a workshop of 2 the Kerrville-Kerr County Joint Airport Board was held in the 3 Airport Terminal Conference Room, Louis Schreiner Field, 4 Kerrville, Texas, and the following proceedings were had in 5 open session: 6 P R O C E E D I N G S 7 MR. KING: Okay. Is this like a -- we have an 8 agenda or something with this meeting? 9 MS. DUNGAN: This is a workshop. 10 MR. KING: This is workshop. 11 MS. DUNGAN: Yes, sir. 12 MR. KING: Of the Kerrville/Kerr County Joint 13 Airport Board budget for FY 15-16. And I'll open this up, 14 and we can just kind of go over it and discuss it. Do you 15 want to make any -- any comments or statements before we 16 start whacking your budget apart here, Bruce? 17 MR. McKENZIE: It's very straightforward. And 18 you'll notice at the top up there the contribution from our 19 owners. We -- we started out taking $7,400 each out of 20 those, and knocked it down to 40,000, but we may circle back 21 to that when we get through and just change that to 35,000. 22 And you're going to see the reasons why as we work through 23 this, but a synopsis was we lost $23,000 when we changed our 24 C.P.I. functioning. So -- 25 MR. WALTERS: You said it may change to 35,000. Is 3-16-15 Airport Board budget workshop 3 1 that for the reduction? 2 MR. McKENZIE: Yes, 5,000 each, instead of -- 3 MR. LIVERMORE: Well, in the -- 4 MR. WOOD: Oh, I got it. 5 MR. McKENZIE: At the top, 5,000 a piece, Corey. 6 Sorry. 7 MR. WOOD: The reduction, not -- 8 MR. WALTERS: Not the number. 9 MR. McKENZIE: Not the number. 10 MR. KING: That would be really good if we could do 11 that. 12 MR. McKENZIE: I know it would, but we would be 13 outside -- 14 MR. LIVERMORE: The budget we're proposing here is 15 the City and the County each is 40,000? 16 MS. DUNGAN: Correct. 17 MR. WOOD: But it may change. 18 MR. LIVERMORE: Right, I understand that. 19 MR. McKENZIE: At the Board's discretion, we may 20 change that. 21 MR. KING: The goal of this board is what? 22 MR. McKENZIE: To get to zero. 23 MR. KING: There we go. I wanted to be sure y'all 24 understand that. When you get to zero, you have to do what? 25 Keep going down. 3-16-15 Airport Board budget workshop 4 1 MR. LIVERMORE: We got to keep getting revenue up. 2 MR. KING: Looks like we got $64,800 off -- revenue 3 off the Brinkman Hangar we didn't have last year, okay? So, 4 just from first blush, 23 minus 64 equals 41 more than we had 5 last year, correct? 6 MR. GRIFFIN: Yes. 7 MR. McKENZIE: And then we lost 23,000. 8 MR. KING: I already took the 23 off of the 64. 9 MR. McKENZIE: Okay. 10 MR. KING: So there is a revenue increase, okay. 11 Let's just go over the revenue real quick here. Last year we 12 had -- on leases, we had 150. This year we're going to have 13 127 -- 128, basically, and that's the C.P.I. change. The 14 Brinkman Hangar is now bringing 64,8. The terminal leases, I 15 guess that's a C.P.I. upgrade, so we're getting a little more 16 off of that. 17 MS. DUNGAN: That's also because we're full. All 18 of our offices are leased. 19 MR. KING: Okay. 20 MR. WOOD: Wonderful. 21 MR. KING: The T-hangar leases, last year we had -- 22 MR. GRIFFIN: We had a rate increase. 23 MR. KING: Had a rate increase, so it went from 98 24 to 102,9. 25 MAYOR PRATT: Steve, can I ask a question there on 3-16-15 Airport Board budget workshop 5 1 T-hangars? 2 MR. KING: Mm-hmm. 3 MAYOR PRATT: Just because looking at the budget, 4 if you put in 12 more T-hangars, what -- how many people are 5 the on the list now? 6 MR. McKENZIE: Ten. 7 MAYOR PRATT: So, you got 10 out of 12 already, 8 okay. 9 MR. KING: Mm-hmm. And there -- Bruce just filled 10 up one here, just filled mine up. 11 MR. LIVERMORE: Yeah, it's good to have a little 12 bit of a surplus on the list. If someone moves out, you move 13 them them right in there real quick. That's what happened. 14 MR. McKENZIE: We're in a good place to have 10 or 15 12 on our list. Always a good place to say -- 16 MAYOR PRATT: You could also say if you add another 17 12, the list would grow even more when you filled that up. 18 People jump on the list when it's a low number. 19 MR. GRIFFIN: Yes and no, mayor. The numbers that 20 are -- correct me, Bruce and Carole. A lot of those numbers 21 -- a lot of those people on the list right now are already on 22 this field; they're just in other facilities, so I'm not 23 sure -- it's a little bit of a shell game. We'd see -- we 24 would see our piece, but other pieces would lose, you know. 25 MAYOR PRATT: All right, then let me -- that leads 3-16-15 Airport Board budget workshop 6 1 to another question. Bruce, how many people did we pull from 2 Fredericksburg? 3 MR. McKENZIE: With these? 4 MAYOR PRATT: With these and the -- plus the list. 5 MR. McKENZIE: Mayor, we probably -- we pulled one 6 for sure, and I think we probably pulled two at the most out 7 of Fredericksburg. 8 MAYOR PRATT: Okay. 9 MR. GRIFFIN: And then we subsequently lost one out 10 of here that went back. 11 MR. McKENZIE: Back over there. 12 MS. DUNGAN: That went back over there. 13 MR. McKENZIE: So, you know, it's kind of a wash. 14 MR. WALTERS: Jumping off in a different subject, 15 but how much of our infrastructure that we did for the new 16 T-hangar building would benefit if we did a second one? Or 17 is there any? 18 MR. McKENZIE: None. 19 MR. WALTERS: None, okay. 20 MR. GRIFFIN: Yeah, we can't even take power off of 21 it. I mean, it's -- 22 MR. WALTERS: All right. 23 MR. McKENZIE: Good question. 24 MR. KING: Okay. So, parking lot, the storage fees 25 are the same. Vehicle surcharge, rentals; we're just going 3-16-15 Airport Board budget workshop 7 1 to say they're about the same. And then the parking lot 2 leases is up about $375. Is that due to some more cars? 3 MR. McKENZIE: We added another one, yes, sir. 4 MR. KING: Good. So, revenue increase over last 5 year just from leasing rental is about $48,000, net. Net. 6 That's after our loss. So, we're -- we go up by 48 grand, 7 correct? And flowage fees, you're saying they're going down, 8 Bruce? 9 MR. WALTERS: Yeah. 10 MR. McKENZIE: Little bit. 11 MR. LIVERMORE: Gosh, you'd think with cheaper 12 fuel, they'd be going up. 13 MR. WALTERS: Not cheaper here. 14 MR. WOOD: I think he's looking at the trend. 15 MS. DUNGAN: Yeah, that's just the trend. 16 MR. KING: Okay. Golly. 17 MAYOR PRATT: I talked to two pilots in the last 18 week. They fly to Hondo to get fuel, from here. 19 MR. WOOD: Well, you know, you've got Hondo and 20 you've got Llano that have cheap fuel, but that's because the 21 City owns -- 22 MR. GRIFFIN: City owns the facility. 23 MR. WOOD: -- the facility. They can do that. 24 MR. GRIFFIN: No overhead. 25 MR. WOOD: Joey did go down after Ed and I talked 3-16-15 Airport Board budget workshop 8 1 to him; he did go down on self-serve. 2 MR. GRIFFIN: Yeah. 3 MAYOR PRATT: Is he still down competitively? 4 MR. LIVERMORE: He was 4.50 when I looked at this 5 the other day. 6 MR. WOOD: We told him if he was within -- within 7 25 cents, that, you know, it would keep people from flying to 8 the other airports. 9 MAYOR PRATT: I know, but he's a buck over some of 10 the other airports. 11 MR. WOOD: I don't think -- I don't think he's a 12 dollar over now, is he? 13 MR. LIVERMORE: I think he's close to 4.50 to 7.50 14 in Llano. I don't know about Hondo. Are you looking it up? 15 MR. GRIFFIN: Yeah. 16 MR. LIVERMORE: Okay. 17 MR. LIVERMORE: I tell you, my plane -- if I wasn't 18 in the hospital, I'd be doing -- I don't do a lot of flying, 19 but I'd be doing even more. 20 MR. KING: 3.50 on self-service. And -- 21 MR. WOOD: That's got to be fairly competetive. 22 MR. KING: Hondo is -- 23 MR. GRIFFIN: 3.50. 24 MR. KING: Hondo's at 4.35. 25 MR. WOOD: 3.50? 3-16-15 Airport Board budget workshop 9 1 MR. GRIFFIN: 3.50. 2 MR. KING: For Hondo? 3 MR. GRIFFIN: Yeah -- or, I'm sorry, Llano. 4 MR. KING: Hondo's 4.35. Castroville's 4.25. Twin 5 Oaks is 4.49. 6 MR. GRIFFIN: Llano's 3.70. Burnet's 3.70. 7 MR. KING: It gets cheaper when you go a little 8 north of here. 9 MR. WOOD: So, 4.50 versus 3.70? 10 MR. GRIFFIN: Spicewood is 3.60. 11 MR. LIVERMORE: S.W.I. always has -- 12 MR. WOOD: Of course, we told him that if he 13 dropped it down, his volume would go up. I'm not sure it 14 did. 15 MR. GRIFFIN: Somewhat. 16 MAYOR PRATT: According to the chart, it went up. 17 MR. KING: Uvalde's 4.36. My brother-in-law 18 dropped his prices in Uvalde considerably to try to make them 19 the lowest in the region. He really picked up a bunch of 20 sales, especially picked up a bunch of the jet traffic. He 21 had people coming in there, like, weekends and stuff; he 22 picked up quite a bit of jet fuel sales, because people were 23 just not -- they were buying maybe 50 gallons or something, 24 and he said they buy now a couple hundred or 300. He's 3.93. 25 Joey is $5. 3-16-15 Airport Board budget workshop 10 1 MR. LIVERMORE: Sherman, Texas, which I understand 2 is not in our market, but it's probably one of the least 3 receptive places in the country, is 3.35. 4 MR. KING: I don't know. I mean, I can -- I mean, 5 obviously, we don't own the system, so all we can do is 6 encourage -- encourage, but I would hope that comes up a 7 little bit. I'd like to see more fuel sales. 8 MR. WOOD: I tried to encourage the Angel Flight 9 people to come in here more, you know, with fuel. And he 10 does have a deal where he'll give you the self-serve price 11 off the truck. 12 MR. KING: Right. Right. 13 MR. WOOD: Angel Flight. 14 MR. KING: Okay. All right. So, that was flow -- 15 fuel flowage fees. Then we get over here to salaries, and -- 16 MR. LIVERMORE: Yeah, it's working on our interest 17 issue. 18 MR. KING: Other expenses. 19 MR. LIVERMORE: Janet Yellen's working on our 20 interest. 21 MR. KING: So, on the salaries, Bruce is staying 22 the same. Looks like, Carole, you're staying the same. 23 Airport maintenance staff was up a little bit. What was that 24 about? We gave -- 25 MR. McKENZIE: We raised it -- 3-16-15 Airport Board budget workshop 11 1 MR. LIVERMORE: We have two guys? 2 MR. McKENZIE: We raised it from $10 -- asking to 3 raise it to $12 an hour so we can -- 4 MR. KING: So we can keep Roy by himself? 5 MR. McKENZIE: No, that's just for the temporary. 6 Seasonal temporary. 7 MS. DUNGAN: That's the seasonal part-time, so we 8 get a little better quality. 9 MR. KING: Okay. So, that's a little bit of a 10 raise. 11 MS. DUNGAN: Yes. 12 MR. KING: All right. And then the rest is all 13 pretty much built in there. Airport -- okay. This actually 14 goes down to the expenses and stuff, right? 15 MR. WALTERS: Let me back up. 16 MR. KING: Go back to that. 17 MR. WALTERS: On retirement, why did our retirement 18 go up from '15 to '16? 19 MR. KING: To 18. 20 MR. WALTERS: I mean -- yeah, but '15 to '16, the 21 year. 22 MR. WOOD: 2015 to 2016. 23 MR. WALTERS: Increased it, like, $3,000. 24 MS. DUNGAN: James will figure it out for us. 25 MR. ROBLES: Yeah, I'll make a note. 3-16-15 Airport Board budget workshop 12 1 MR. KING: That's like 20 percent, isn't it? 2 Everything else is the same. Group insurance stayed the 3 same. Workman's comp stayed the same. Looks like 4 20 percent. Huh. 5 MR. WALTERS: I would like to note that, going back 6 to the -- 7 MR. KING: 16 -- 8 MR. WALTERS: -- our lease rental income, we're up, 9 I think, about 18 percent from our budget. 10 MR. KING: Right. Right. So that's up 11 16.7 percent. James? 12 MR. ROBLES: Okay, let me take a look at that. 13 MR. WALTERS: Okay, thank you. 14 MR. KING: That's a rise of 16 percent, okay, on 15 the expenses. So -- 16 MR. LIVERMORE: We're at the airport section? 17 MR. KING: Yeah, the airport section. 18 MR. LIVERMORE: Well, there's a -- why would 19 chemical and medical double? 20 MS. DUNGAN: That's our -- 21 MR. LIVERMORE: Am I reading that right? 22 MS. DUNGAN: Yeah, that's our chemicals for all the 23 treatment of the thistles and everything. And last year we 24 took some of those funds and transferred them over, 'cause we 25 went short. Remember we had that transfer of about -- about 3-16-15 Airport Board budget workshop 13 1 7,000? That's where we took it from. Well, we didn't buy 2 any chemicals. We need to replenish the chemicals. 3 MR. LIVERMORE: Okay. 4 MR. KING: Okay. 5 MR. LIVERMORE: The other one I was wondering 6 about -- putting you on the spot for a second, you had some 7 thoughts on that mowing contract at one point. 8 MR. GRIFFIN: Yeah, but we're going to discuss that 9 when that happens. 10 MR. KING: Okay. What about -- 11 MR. LIVERMORE: That didn't work out. 12 MR. GRIFFIN: Well, the contract's got another 13 year -- 14 MR. McKENZIE: Several years. 15 MR. GRIFFIN: -- or two. 16 MR. KING: On this professional development, what 17 is that? Can you refresh my memory, professional 18 development? 19 MS. DUNGAN: That is all the seminars. 20 MR. KING: Mm-hmm. 21 MS. DUNGAN: That's the AAAE seminar. That's 22 Bruce -- I mean, Roy's training. 23 MR. McKENZIE: My AAAE membership and meeting that 24 I attend. It's the TexDOT meeting that I attend. And Roy 25 goes to -- you know, I've -- this will be the third year -- I 3-16-15 Airport Board budget workshop 14 1 send him to a class once a year on airport lighting. 2 MR. KING: Right. 3 MR. McKENZIE: Which is helpful. That's what that 4 is. 5 MS. DUNGAN: And that's any seminar y'all want to 6 attend. 7 MR. KING: What about -- how come for four years it 8 was running about 6,000 to 5,000 to 4,000, and then this last 9 year it only ran 2,100? 10 MS. DUNGAN: Because it was closer. 11 MR. KING: They were all closer? 12 MR. McKENZIE: They were in San Antonio. 13 MAYOR PRATT: Travel expenses are included in that, 14 Steve. 15 MR. KING: Really? So they're closer. 16 MS. DUNGAN: Yeah. 17 MR. KING: That's nice. Where are they next year? 18 MR. McKENZIE: This year was in Philadelphia. And 19 the -- the Texas one is in San Marcos. 20 MR. KING: Oh, that's close. Okay. 21 MR. ROBLES: On the retirement, it looks like the 22 part-time was factored in on that proposed budget. And I'm 23 assuming they don't get retirement. 24 MR. KING: No. They retire pretty quick. 25 MR. ROBLES: I'll take them out of the equation. 3-16-15 Airport Board budget workshop 15 1 MR. WALTERS: Okay. 2 MR. LIVERMORE: Where's Roy? Where is he in this 3 thing? 4 MR. ROBLES: Slightly above 16,000. But that's -- 5 MR. McKENZIE: Roy's included in the airport 6 maintenance staff. The airport maintenance staff, Roy and 7 the part-timer are all in that 41,000 -- 44,000. 8 MR. WALTERS: There's 2,800 bucks there. We're -- 9 we're going to to 16. 2,800, okay. 10 MR. LIVERMORE: Where is this? 11 MR. WALTERS: Under retirement, on salaries and 12 benefits. 13 MR. WOOD: We're assuming that. He'll have to 14 figure it. 15 MR. ROBLES: Yeah, I'll get you the exact number. 16 MR. KING: To the plus, okay. All right. So, 17 professional development, we're back at that. So you think 18 that's a good number at 6, Bruce? 19 MR. McKENZIE: That's what we've been using, Steve. 20 MR. KING: Okay. All right. Well, I didn't -- I 21 look at what we spend, is what I look at, and try to -- I'm 22 not trying to -- I'm not trying to deny you that. I just 23 bring it up -- just tell me why it should be the other way. 24 You know, if you think you need to leave it there, okay. 25 MR. McKENZIE: Mm-hmm. 3-16-15 Airport Board budget workshop 16 1 MAYOR PRATT: Steve, I'll give you a good example. 2 In Washington D.C., my motel room was about $200 more than we 3 budgeted, $450 a night. 4 MR. KING: Really? 5 MAYOR PRATT: Going to Philadelphia, you're looking 6 at the same price. 7 MR. KING: Okay. 8 MR. WOOD: Professional services. 9 MR. KING: Yeah, how about -- where are you at, 10 professional services? We have 20,000 in there, and we did 11 20,000 -- we spent more than 20,000 last year? 12 MR. LIVERMORE: 28,5. 13 MR. KING: On those attorneys. 14 MS. DUNGAN: Mm-hmm. Well, yes. 15 MR. KING: Patrick, you're in good shape. 16 MS. DUNGAN: Part of that also, sir, is our 17 Primero. 18 MR. KING: Yeah. 19 MS. DUNGAN: Jeannie and James managed to roll that 20 whole thing so that it carried over from last year, so we 21 didn't incur it this year. 22 MR. KING: Yeah. 23 MS. DUNGAN: Okay? So that's why you see there 24 going in the difference. Our money is there to pay them that 25 last payment. 3-16-15 Airport Board budget workshop 17 1 MR. KING: Mm-hmm. 2 MS. DUNGAN: But our 20,000 we still have for 3 anything as far as engineering or anything other than that we 4 need for professional services. 5 MR. KING: Okay. All right. 6 MS. DUNGAN: Because Jeannie -- I mean Ilse, last 7 year, exhausted legal fees, and then went into professional 8 services. 9 MR. WOOD: With us doing the Mooney roof this 10 coming season, probably we're going to use some legal. 11 MS. DUNGAN: Yep. 12 MR. KING: Well, we hope not. Okay. 13 MR. WALTERS: When you say Ilse exhausted our -- I 14 mean, we're jumping ahead to legal services. We only spent 15 4,931. 16 MS. DUNGAN: Well, on there it says 10,000, but we 17 were at -- I think we reduced that to 5,000 last year. I 18 don't know why it says 10,000, 'cause we got close and then 19 we had to move those funds. 20 MR. GRIFFIN: We budgeted 5,000 for the years 21 before, or spent about 5,000 the years before. 22 MS. DUNGAN: Right. 23 MR. GRIFFIN: We doubled it last year. 24 MS. DUNGAN: For the year. 25 MR. WOOD: So, what is these professional services? 3-16-15 Airport Board budget workshop 18 1 What is that? Is that our legal assistance or -- 2 MR. McKENZIE: Architectural services, inspection 3 services, surveying, analysis, environmental fees, appraisal 4 services, any design service that we have, anything along 5 that line. 6 MR. WOOD: Anything but legal? 7 MS. DUNGAN: Yes. 8 MR. KING: So -- okay. 9 MR. GRIFFIN: That's where we include Garver as 10 our -- 11 MR. McKENZIE: Professional -- 12 MR. GRIFFIN: -- our professional support. 13 MR. KING: I guess, what are we going to do this 14 year that we did last year? Why are we going to do the same 15 thing as last year? I thought you had legal in there. 16 You're talking about -- it's more engineering and 17 professional services. 18 MR. McKENZIE: Mm-hmm. 19 MR. WALTERS: So it's -- most of it was, you say, 20 Primero? 21 MS. DUNGAN: Yes. 22 MR. WALTERS: Okay. 23 MS. DUNGAN: Most of it's Primero right now. 24 MR. KING: Are we paying any more this year? 25 MR. McKENZIE: We still owe them 30,000. 3-16-15 Airport Board budget workshop 19 1 MR. KING: Is this coming out of this 20,000 2 budget? 3 MS. DUNGAN: Correct. 4 MR. McKENZIE: Coming out of this. 5 MS. DUNGAN: We've got 21, and the rest will be out 6 of the 20. 7 MR. LIVERMORE: Who is Primero? That engineering 8 company? 9 MR. McKENZIE: Yes, sir, San Antonio. 10 MR. WOOD: Consultant. 11 MS. DUNGAN: Yes. 12 MR. KING: Okay. Oh, we got a bill, okay. 13 MR. LIVERMORE: Wait a minute. You say we owe 14 Primero 30 grand still? 15 MS. DUNGAN: Yes. 16 MR. LIVERMORE: How are we going to pay that out of 17 20? 18 MR. ROBLES: It's actually a -- 19 MS. DUNGAN: Yeah, it's actually 41,000, 'cause 20 they -- they approved it for us in last year. 21 MR. ROBLES: It's a credit balance right now, so 22 when that 30,000 comes through, we should be at about 9,000. 23 MR. KING: 8,000, 9,000. So, the credit -- a 24 credit balance. 25 MS. DUNGAN: Yes. I'm sorry I didn't make it 3-16-15 Airport Board budget workshop 20 1 clear. 2 MR. ROBLES: They booked it last year; we didn't 3 pay it. 4 MS. DUNGAN: We booked it last year so we'd have -- 5 MR. KING: So, basically we're going to end up 6 taking 9 out of 20 and having 11 left. 7 MR. ROBLES: Correct. 8 MR. KING: 11 left, okay. 9 MR. GRIFFIN: That gets us back to what the 10 previous years were. 11 MR. WALTERS: Bruce, was that -- I think last year 12 you talked about establishing something with a firm so you 13 could have them do some things out here if you needed. 14 MR. McKENZIE: Yes, sir, that was Garver 15 International. 16 MR. WALTERS: And this comes out of this? 17 MR. McKENZIE: It does, but I haven't -- they 18 haven't -- they've come out here and helped me with some 19 things and still haven't charged me anything. 20 MR. McKENZIE: Okay. 21 MR. WALTERS: All right, good. Well, good, I like 22 that. 23 MR. KING: What about -- what happened on fuel and 24 oil supplies, Bruce? Why did you not spend any money last 25 year? Fuel and oil. You got an electric car? 3-16-15 Airport Board budget workshop 21 1 MR. McKENZIE: No. 2 MR. LIVERMORE: No, he spent $3,900. 3 MS. DUNGAN: Yeah. 4 MR. McKENZIE: Spent 3,900. 5 MR. KING: I'm looking at '15. 6 MR. WOOD: Look at '15. 7 MR. KING: Oh, that's what we spent. The green 8 column. Okay, I see. So, you spent 3,900 last year? 9 MS. DUNGAN: Yeah. 10 MR. KING: Okay, I see. Okay. 11 MR. LIVERMORE: So, '15 is what you say is last 12 year? 13 MR. KING: No, '15 is what you spent this year so 14 far. Is that correct, Bruce? 15 MR. LIVERMORE: What you spent last year is '14. 16 MAYOR PRATT: What you spent last year was 3,901 on 17 fuel and oil. 18 MS. DUNGAN: Yes, that's what's -- yes. The 4,500 19 is what we currently budget. We've only spent 480 of that 20 4,500, 11 percent. 21 MR. WOOD: Okay. 22 MS. DUNGAN: We're proposing to stay at 4,500. 23 MR. KING: Right. What I'm saying, this '15 budget 24 spent column, that is just what you've spent out of the 25 budget. 3-16-15 Airport Board budget workshop 22 1 MS. DUNGAN: Right. 2 MR. McKENZIE: This year. 3 MR. KING: The budget we haven't established yet. 4 MS. DUNGAN: No. 5 MR. WALTERS: The budget we're in right now. 6 MR. GRIFFIN: Since October 1, he's only spent 500. 7 MR. KING: Is '14 -- '14 was last year, what we 8 spent last year. 9 MS. DUNGAN: Yes. 10 MR. McKENZIE: We'll start spending a lot of money 11 on gasoline, 'cause it rained. When the grass starts, it's 12 going to really start to grow. 13 MS. DUNGAN: Mm-hmm. 14 MR. KING: Okay. 15 MR. LIVERMORE: I think it's on its way out there 16 right now. 17 MR. GRIFFIN: Yeah, it is. 18 MR. KING: Okay. Anybody else have any questions 19 on that page? 20 MS. DUNGAN: May I make a point before y'all go? 21 MR. KING: Yeah. 22 MS. DUNGAN: If you look at 47-800-110, sod, seed, 23 and planting/landscaping? 24 MR. KING: Which one is that? Say it again. 25 47-what? 3-16-15 Airport Board budget workshop 23 1 MAYOR PRATT: Third from the bottom. 2 MR. LIVERMORE: Sod, third from the bottom. 3 MS. DUNGAN: 110. 4 MR. KING: Okay. 5 MS. DUNGAN: We established that so we can rework 6 the landscaping around here. It's been eight years, and the 7 grass is looking more like clover. Some of our bushes need 8 replacing, and need mulching, need landscaping up around the 9 sign. This is something that I think, to keep up the 10 building and everything, we need to budget. 11 MR. WALTERS: Okay. 12 MS. DUNGAN: So that's an addition. 13 MR. LIVERMORE: Okay. 14 MR. KING: Okay. All right. What -- so what 15 percentage of the budget are we in right now? This month -- 16 this month that you have listed with expenses, what 17 percentage would it be? 18 MR. GRIFFIN: About 50. 19 MR. KING: Almost 50? 20 MR. McKENZIE: Yeah. 21 MR. KING: Right at 50. 22 MS. DUNGAN: This is going to be February. 23 MR. KING: It should be at 50, okay. 24 MR. WALTERS: Buildings and structures. 25 MR. KING: Buildings and structures? 3-16-15 Airport Board budget workshop 24 1 MR. WALTERS: "Projects needed..." Can you 2 summarize what that's about? 3 MR. McKENZIE: Sure, be glad to. Glad you asked. 4 We have accrued more square footage this year than we've ever 5 had. We've got more upkeep now than we've ever had. We've 6 got a 26,000 square foot building, which is the Brinkman 7 Hangar. We've got two big buildings now that are our new 8 T-hangars. That's going to, in my estimation, require more 9 maintenance, and that's why I plugged in another -- 10 additional money here to take care of that. 11 MR. KING: I can agree with you on the -- on the 12 Brinkman Hangar, but I can't see these T-hangars are going to 13 cost us a nickel. The other one didn't cost us a nickel for 14 10 years, hardly. 15 MAYOR PRATT: What's the warranty period on the 16 new -- 17 MR. KING: We got a one-year warranty. When's that 18 run out? 19 MR. McKENZIE: October 1. 20 MR. KING: Okay. So that's -- 21 MS. DUNGAN: Next budget. 22 MR. LIVERMORE: If it runs out October 1, we're 23 covered under the current budget. This is -- 24 MR. GRIFFIN: 2015-2016, you're not. 25 MR. LIVERMORE: -- for '16. Might be interesting 3-16-15 Airport Board budget workshop 25 1 to know, out of that 14,558 we spent in 2014, what all that 2 went for. 3 MS. DUNGAN: We actually went over budget and had 4 to move some money around. 5 MR. KING: I just -- I mean, we spent a bunch of 6 money on that Brinkman Hangar when we first got it, spent a 7 lot of money getting it up to par and everything. I'm just 8 wondering if we're going to spend another 10,000 over and 9 above what we did. What did we spend last year, 15,000? 10 14,5. 11 MR. McKENZIE: On the doors and the -- 12 MR. WALTERS: More than that. 13 MS. DUNGAN: The doors -- 14 MR. McKENZIE: The air-conditioner units. We spent 15 some money. 16 MR. KING: I know. We've spent 7,000 -- when did 17 we take that hangar over? 18 MS. DUNGAN: January 1. 19 MR. McKENZIE: Of '13. 20 MR. KING: Of '13? So the '14 budget -- 21 MR. WALTERS: '14. 22 MR. KING: '14. 23 MR. GRIFFIN: Last year. 24 MR. McKENZIE: Yeah, last year. 25 MS. DUNGAN: '14, yes. We didn't get it -- we 3-16-15 Airport Board budget workshop 26 1 didn't get it -- 2 MR. GRIFFIN: 1 January. 3 MR. McKENZIE: That's right, 1 January. So -- no. 4 MR. KING: So we have not had -- '14? 5 MR. WALTERS: Yeah. 6 MR. WALTERS: Since last year, January 2014. 7 MR. McKENZIE: Okay. Okay. 8 MR. KING: Corey probably knows. He was the one -- 9 MR. McKENZIE: Sorry. Go ahead. 10 MR. KING: So we took it over January 1st. We 11 should know in a year what we spent on that thing. And looks 12 like we -- so part of that was in the '13 budget, correct? 13 MR. McKENZIE: Mm-hmm. 14 MR. KING: The '13-'14 budget. And then part of 15 it's in the '14-'15 budget. So that -- so that '14 -- this 16 '14 budget that we're looking at actual, we spent 14,558. 17 Part of that was Brinkman. 18 MR. GRIFFIN: No, not in '14. We didn't take it 19 over until 1 January of '15. 20 MS. DUNGAN: But we still -- '14 went from January 21 to October. 22 MR. McKENZIE: We took it over in '14, not '15. 23 MR. LIVERMORE: We took it over a year ago this 24 January. 25 MR. KING: Yeah. So, the '14 budget's going all 3-16-15 Airport Board budget workshop 27 1 the way to October of '15 -- the '14 budget. No, it goes all 2 the way to October. October of '14. So, it's in -- so, six 3 months. It was in the October budget -- the '14 budget. 4 MS. DUNGAN: Correct. 5 MR. WALTERS: I don't think, though -- a big part 6 of that, the roof, was -- I think that was in this year's 7 budget. 8 MR. McKENZIE: It was. We just did that. 9 MS. DUNGAN: We just did that. But the -- the A/C, 10 the doors -- 11 MR. WALTERS: That was a big amount. 12 MR. KING: We only spent $7,526. And it -- right? 13 Isn't it? 14 MR. GRIFFIN: Since October. 15 MR. KING: Since October. 16 MR. LIVERMORE: If you've done everything in this 17 year, that's -- that's these numbers right here. 18 MAYOR PRATT: You got six, seven months left. 19 MR. KING: I know. Still got six or seven months 20 left, so you got $7,500 to get there. 21 MR. McKENZIE: If you'd like to reduce that, then 22 we can. 23 MR. KING: I'm just -- 24 MR. GRIFFIN: Here's the other piece in the 25 building and structures. We got to look at what's happening 3-16-15 Airport Board budget workshop 28 1 to this building here. In the last 12 months, we've replaced 2 one A/C unit. We've replaced a water heater -- two water 3 heaters. 4 MR. McKENZIE: Sinks. 5 MR. GRIFFIN: We had to replace the sink. We had 6 to replace this door over here -- glass in this door, and 7 we're getting ready to replace this door at $3,000. 8 MR. WALTERS: That sliding door? 9 MR. GRIFFIN: Mm-hmm. 10 MR. KING: What's wrong with it? 11 MR. McKENZIE: Interior bracing is falling apart. 12 You can't repair them; you have to take them out. 13 MR. KING: That's a bad idea. 14 MR. McKENZIE: But it's opened thousands and 15 thousands of times. 16 MR. KING: I know it has. And it's five years old, 17 six years old. 18 MR. McKENZIE: Eight years old. 19 MR. GRIFFIN: So I have -- where I'm going is, with 20 an eight-year-old facility, I'm afraid we're going to start 21 seeing some costs on this building as well. 22 MR. KING: Yeah. 23 MR. GRIFFIN: We've seen it in the last year; we'll 24 probably see a little bit more. 25 MR. KING: All right. Hey, I'm just trying to look 3-16-15 Airport Board budget workshop 29 1 ahead. 2 MR. GRIFFIN: Well, it's something to look at, I 3 agree. 4 MR. KING: I have -- I also have to justify this to 5 two different people in that meeting, okay? 6 MR. GRIFFIN: I understand. 7 MR. LIVERMORE: They're pushovers. 8 MR. KING: No they're not. They're not. 9 MR. WOOD: You just need to know what your basis is 10 for thinking it goes up 10 grand. 11 MR. GRIFFIN: Yeah. 12 MR. KING: I mean, if I was looking at this, I'd 13 say, okay, y'all spent 14,5; you approved in your budget 14 15,000. This year, half of the year, you spent 14,5 -- 15 7,500, so I would assume the other half of the year, you'll 16 probably spent 7,500. That's 15,000. Now you want 10 more 17 thousand. 18 MS. DUNGAN: We actually went over last year by 19 $6,100 that we took out of contingency, so we actually spent 20 closer to 20,000. 21 MR. KING: How would I know that -- we know that? 22 MS. DUNGAN: I know. That's why I'm here. 23 MR. GRIFFIN: No. Well, but also, same reason 24 we've had the monthly discussions about you guys need to put 25 in what line item, where the numbers are and where you got 3-16-15 Airport Board budget workshop 30 1 them from. 2 MR. KING: Yeah. 3 MR. GRIFFIN: In the future, I think part of what 4 we're -- so what Carole's tying to say is, in other words, 5 too, is that she's trying to -- she and Bruce are trying to 6 get this number to where they can cover the annual cost. 7 MR. KING: I understand. 8 MR. GRIFFIN: Not bum it out of other places. 9 MR. ROBLES: What might be easier is, instead of 10 just spending it out of contingency, just do a budget 11 adjustment. That way you see what the budget has changed to. 12 MS. DUNGAN: Right. 13 MR. ROBLES: And you don't have a bunch of things 14 in contingency. 15 MR. LIVERMORE: We have a contingency item coming; 16 I wanted to bring it up. 17 MR. KING: Okay. We'll leave that 25 there for 18 right now. Let's -- I'll figure that out. Okay. What about 19 instruments and apparatus? Last year we had 7,000. We spent 20 $908 in a year -- in a half a year. We spent three, five, 21 three -- six, three. What are we going to do here? I mean, 22 what do -- what do we -- what do you anticipate that's 23 getting ready to happen? 24 MR. McKENZIE: Well, actually nothing. But it 25 keeps the AWOS up. Anything -- any adjustments I've got to 3-16-15 Airport Board budget workshop 31 1 do to the precision path indicators may have to come out of 2 that. It just gives us a comfort level, Steve. 3 MR. KING: Comfort level doesn't work at the 4 City/County. 5 MR. McKENZIE: Okay, let me recouch my statement. 6 It's a safety issue. 7 MR. KING: What I'm getting at is, well, we might 8 spend it, or we might do this, or we might -- we might. You 9 never can tell. 10 MR. McKENZIE: We can take it out. 11 MR. KING: They don't like "never can tells." What 12 the deal is, is what did you spend last time? What did you 13 spend the last four years? What did you spend the last five 14 years? If you have something you think you're going to spend 15 it on, that's fine. But, you know, hopes and maybes don't 16 really cut it with them. 17 MR. WALTERS: When you look at 2011, '12 and '13, I 18 mean, I think his number sounds reasonable. You know, I 19 mean, yes, in '14 we spent the least amount that we've spent 20 in the last four years. 21 MR. KING: Sure. 22 MR. WALTERS: Was in '11. Bruce, did you buy a big 23 piece of equipment or something? 24 MR. McKENZIE: I'll have to go back and look. 25 MR. KING: Long time ago. 3-16-15 Airport Board budget workshop 32 1 MR. McKENZIE: I don't know. 2 MR. KING: All I'm saying -- I'm just -- 3 MS. DUNGAN: But if we have one of those PAPI's go 4 out, they're expensive to fix. 5 MR. KING: Yeah. 6 MR. McKENZIE: If the Council or the Commissioners 7 Court wants to take it out, that's fine. I mean -- 8 MR. KING: I'm just -- 9 (Multiple people speaking.) 10 THE REPORTER: One at a time, please. 11 MR. KING: I'm trying to play devil's advocate 12 here, because, you know, if anything had happened, if all the 13 runway lights are all struck by lightning, they all go out at 14 the same time, we can't budget for that. 15 MR. McKENZIE: Right. 16 MR. KING: We have to budget some stuff that we -- 17 you know, we think -- not think, but we are trying to cover 18 that could happen. 19 MAYOR PRATT: Let me take -- 20 MR. McKENZIE: That's a salient point. I concur 21 with what you just said. 22 MR. KING: Yeah. 23 MR. McKENZIE: And we can take it out. I mean, 24 I -- 25 MR. KING: I'm not saying take it out, Bruce. I'm 3-16-15 Airport Board budget workshop 33 1 just saying justify it. 2 MR. McKENZIE: And these are safety issues, and if 3 -- and it's okay if we take them out or reduce them, as long 4 as, if we need to do something, the owners understand why 5 we're moving money again. 6 MR. KING: I understand. I understand. 7 MR. WALTERS: How long do we have on our warranty 8 on those taxi lights that we put out there? 9 MR. McKENZIE: They've probably been out there 10 seven or eight months. They go for a year as well. If we 11 need to replace them -- 12 MR. KING: What did they tell us? 13 MR. LIVERMORE: Three years or five years. 14 MR. McKENZIE: They should last five to six years. 15 MR. WOOD: As a compromise, could you knock it down 16 to 5,000 or something? 17 MR. WALTERS: That's what I was thinking. 18 MR. KING: Okay. 19 MAYOR PRATT: I got a question about that, Steve. 20 MR. KING: I don't. 21 MAYOR PRATT: You mentioned if electricity hit and 22 blew those lights out. 23 MR. KING: Yeah. 24 MAYOR PRATT: Is that covered by insurance, or are 25 we self-insured on that? 3-16-15 Airport Board budget workshop 34 1 MR. McKENZIE: We're not self-insured; we have 2 insurance for it. 3 MR. KING: When I said that, what -- here's the 4 deal on the safety issue, is we're going to get it fixed. 5 MAYOR PRATT: That's exactly right. 6 MR. KING: It's going to get fixed. It's not like, 7 "Oh, we didn't have that in the budget; it's not going to 8 happen." 9 MAYOR PRATT: My point is, is the money going to 10 come from outside the budget? 11 MR. KING: Right, but that's why we have 12 contingency. That's why -- 13 MR. McKENZIE: Too much fine print in the insurance 14 policy to know if a lightning strike will be covered. 15 MR. KING: I'd feel comfortable at five. 16 MR. WALTERS: Okay. Let's adjust it to five. 17 MR. KING: Let's go to five, okay. 18 MR. McKENZIE: On apparatus or something. Okay. 19 MR. KING: Okay. All right. Looks like the 20 insurance is all about the same. Legal services. 21 MR. WALTERS: Okay. 22 MR. WOOD: 20,000 contingency. 23 MR. WALTERS: Let's talk about -- I was going to 24 talk about legal services. We can go to contingency first. 25 MR. McKENZIE: Okay. We moved that up, because 3-16-15 Airport Board budget workshop 35 1 Bill's been asking about that for several months. It was 2 down in 507. We had two line items; that was confusing. 3 We're trying to streamline this. That's a great idea, so we 4 moved that up. 5 MR. KING: And we've increased our contingency to 6 20,000. 7 MR. McKENZIE: Yes, sir. 8 MR. KING: Okay. 9 MR. WALTERS: Increased it from what? 10 MR. KING: 10,000. 11 MR. WALTERS: Why did we do that? 12 MR. KING: Did we go through all our contingencies 13 last year? 14 MR. McKENZIE: We moved money last year out of 15 contingency -- 16 MR. KING: I know. 17 MR. McKENZIE: -- to pay some of this. 18 MR. KING: How much did we run out, is what I'm 19 getting at. 20 MAYOR PRATT: Bruce, on the 507, wouldn't you move 21 those numbers from 210 through 214 up to 310? You're going 22 to move the other up there? 23 MR. McKENZIE: From 210? 24 MAYOR PRATT: Yeah. 25 MR. McKENZIE: I don't have a 210. 3-16-15 Airport Board budget workshop 36 1 MR. WALTERS: 310. 2 MAYOR PRATT: 310. 3 MR. WALTERS: He's just saying why don't you move 4 the whole line item up there with all -- 5 MR. McKENZIE: Okay, yeah. 6 MR. KING: I can agree with that. 7 MR. McKENZIE: I see what you're saying. 8 MR. GRIFFIN: I think part of it's the accounting 9 system. You have to leave it in there for -- 10 MS. DUNGAN: Three years. 11 MR. GRIFFIN: You have to show nonactivity. 12 MAYOR PRATT: Well, you could do a plus and -- a 13 plus and a negative. 14 MR. McKENZIE: Where'd James go? 15 MR. GRIFFIN: I think there's a three-year -- you 16 have to leave it in the current state for three years, and if 17 there's any -- 18 MR. ROBLES: If there's any activity in the 19 account, we can't touch it for three years. 20 MAYOR PRATT: No, but we're talking about accounts 21 507 and 310. 22 MS. DUNGAN: Oh, we're moving it from one 23 contingency to the other. 24 MR. ROBLES: We did a budget adjustment for 7,000. 25 MAYOR PRATT: No, I'm talking about with the 3-16-15 Airport Board budget workshop 37 1 contingency. There's two contingencies, 507 and 310. If 2 you're going to move part of it, why can't you move the rest 3 of it? Still the same thing. 4 MR. KING: With all the different numbers in the 5 past year? 6 MAYOR PRATT: The whole line item. 7 MR. ROBLES: I can put the budget in either one 8 that you want to, but I can't delete the account until -- 9 MR. KING: Oh, you can't? 10 MAYOR PRATT: But -- you can move the number, but 11 you can't delete the account. Doesn't make any difference. 12 MR. KING: I see what the mayor's saying. 13 MR. WALTERS: So why did we go from 10 to 20? 14 MR. McKENZIE: I was going to say for -- to give us 15 an "if", but I'm not going to say that any more. 16 MR. ROBLES: We started with 10 last year. 17 MR. LIVERMORE: But if you go back to Corey's 18 point, look at instruments. If you average these five years 19 to the left of the green column, then they're within $27 of 20 7,000. 21 MR. KING: I know, but the first two months, '10 22 and '11, those are years that we were spending money like 23 crazy people out here. This is before we became -- that's -- 24 when did you get here, Bruce? 25 MR. McKENZIE: 2007. 3-16-15 Airport Board budget workshop 38 1 MS. DUNGAN: Well, Bruce was here. Sorry. I was 2 going to try to help you out, Bruce, but damn it, can't help 3 you there. I don't know. I mean, I just look at it -- how 4 much did we spend last year on contingency? 5 MR. LIVERMORE: Well, contingency is kind of the 6 place we were getting money from -- 7 MR. KING: We've gotten -- 8 MR. LIVERMORE: -- to do other things. 9 MR. KING: In six months, we've used 1,280 bucks of 10 it. Is that what y'all are saying? 11 MS. DUNGAN: Yes. 12 MR. McKENZIE: Thus far, yes. 13 MR. WALTERS: Okay. But, you know, I didn't go -- 14 I haven't looked at all of the specific items in 2015, the 15 budget. It's very possible that in 2016, we're trying to 16 slim some of the those numbers down, so we didn't use some of 17 the contingency, because we already had maybe a more inflated 18 number in 2015. 19 MR. KING: Right. 20 MR. LIVERMORE: Yeah. 21 MR. WALTERS: So you may have a good point, that, 22 okay, you know, we're slimming some of these numbers down 23 from what we did last year, but I don't really want to slim 24 my -- cut my contingency number down, because we may need to 25 grab some of that if some of these things -- 3-16-15 Airport Board budget workshop 39 1 MS. DUNGAN: That's what we had to do last year, 2 was remove 7,000, so that -- we had to cover some of the 3 others that -- 4 MR. KING: But you moved it from contingency? Or 5 did you move it from another account? 6 MS. DUNGAN: We moved it from other accounts to 7 contingency, 'cause we were running out. 8 MR. KING: Okay. 9 MR. WALTERS: Okay. 10 MS. DUNGAN: Contingency could get used up so much. 11 MR. WALTERS: I see, okay. 12 MR. KING: Right. 13 MS. DUNGAN: We were cutting our own. 14 MR. ROBLES: I don't think that's actually right. 15 We started with 10,000, was the original budget, but at the 16 end of the year we had a $17,000 budget. 17 MR. WALTERS: Okay. 18 MR. KING: We did have a $17,000 budget. 19 MR. WALTERS: I think 20,000 probably sounds pretty 20 reasonable. 21 MR. KING: Why don't we leave it at 17? Then we 22 don't have to justify any more. 23 MS. DUNGAN: We took half of that from the 24 chemicals last year and moved it. 25 MR. KING: What did -- overall, what was -- that 3-16-15 Airport Board budget workshop 40 1 was a good number. Overall, what is our budget versus -- the 2 budget that we approved versus the budget spent? 3 MR. ROBLES: Last year? 4 MR. KING: Yeah. 5 MR. ROBLES: Okay. 6 MR. KING: Wonder what that was. Not a total. 7 Where were we -- how did we do on our -- the year before? 8 Well, I guess the only one we have is '14. 9 MR. WALTERS: '14. 10 MR. KING: It'd be the '14. How did we do in the 11 '14 budget? Looks like to me -- it's hard to -- be 12 interesting to know where we are on our 2015 for half the 13 year, for it to kind of show how we're doing, see how we're 14 actually doing on our budget. 'Cause, you know, what was -- 15 what we've done since you guys -- I'm relating this back to 16 you guys getting on the board. You know, since we kind of 17 started really getting on this budget and everything, we've 18 always found that, you know, we've actually spent -- we've 19 spent a lot less than what we budgeted almost every year. Of 20 course, we are cutting it every year, so that's -- you know, 21 I don't want to go too far. 22 MR. WOOD: Yeah, dig into our contingency a little 23 bit. 24 MR. KING: Right. But, I mean, I think that's a 25 good sign. I think it's a good sign that you're into your 3-16-15 Airport Board budget workshop 41 1 contingency a little bit, that we're close -- pretty close on 2 the rest. 3 MR. KING: We'll come back to that contingency 4 after James gets that number. Whew. 5 MR. WOOD: Leave the legal services at 10? 6 MR. WALTERS: That's what I want to ask. You know, 7 in '14, you're showing 4,931. Why are we jumping to 10? 8 MS. DUNGAN: We had it at five grand that year. We 9 had to move it over by $8,262, which was a large portion of 10 our professional services budget. 11 MR. KING: Right, but I think we also got to look 12 at last year. Last year was really a weird year. That was a 13 year that we were -- 14 MR. WALTERS: We had a lot going on. 15 MR. LIVERMORE: With Ronny. 16 MR. WALTERS: We had Mooney. 17 MR. KING: We had three problems that they were all 18 happening at the same time. 19 MS. DUNGAN: Yes. 20 MR. KING: I bet if you look at -- I think you 21 should look at the year before, and see what the year before 22 we spent. 23 MS. DUNGAN: 49 -- 4,938. 24 MR. LIVERMORE: Mid-40's. 25 MR. KING: That's what my -- I don't think we can 3-16-15 Airport Board budget workshop 42 1 anticipate another problem like we -- I don't think we -- I 2 don't think we're going to have another problem like we had 3 with the Brinkman Hangar. 4 MR. GRIFFIN: Let's hope not. 5 MR. LIVERMORE: Where'd it come from? We don't 6 even know where it would come from. 7 MR. WOOD: Come from our roof deal, wouldn't it? 8 MR. LIVERMORE: I think that's pretty much a 9 wording thing, isn't it? 10 MR. KING: We shouldn't have much problem with 11 that, should we, Corey? 12 MR. WALTERS: That's why I brought the 10,000 up. 13 I mean, I -- I thought the same thing. I thought, well, last 14 year we had a lot going on. And we -- I mean, we were -- 15 Ilse was involved with, you know, many things. And I was 16 just looking ahead, thinking about this next year. Thinking, 17 and really couldn't come up with something I thought -- 18 MR. LIVERMORE: We had two Ronnys last year. 19 MR. WALTERS: Yeah, but I thought I couldn't really 20 come up with something where I thought that, okay, well, we 21 really need to double our budget for legal services. You 22 know, something that we're really anticipating that's going 23 to be, you know, ahead of us. 24 MR. KING: I mean, I agree with you, Corey. 25 MR. WALTERS: I'm sorry that we're not going to 3-16-15 Airport Board budget workshop 43 1 need you as much as we -- 2 MR. O'FIEL: Oh, no. 3 MR. WALTERS: But I don't think we are. 4 MR. GRIFFIN: I mean, we had the C.P.I. stuff that 5 we reworked all those contracts. 6 MR. LIVERMORE: Why don't we cut that to 6,000? 7 MR. GRIFFIN: That was a big piece, you know. 8 MR. KING: Okay, I'm acceptable with that. 9 MAYOR PRATT: Let me ask a question. 10 MR. McKENZIE: What are you going to? 11 MR. WALTERS: Six. 12 MAYOR PRATT: If we did 12 more T-hangars, would it 13 require more legal? 14 MR. KING: Not really. 15 MR. WALTERS: No. 16 MR. GRIFFIN: No, because all that gets covered by 17 TexDOT. 18 MAYOR PRATT: Okay, I just want to make sure. 19 MR. WOOD: Plus, whatever we did on the first 12, 20 we ought to be able to duplicate on the -- 21 MR. McKENZIE: Second. 22 MR. WOOD: -- second. 23 MR. KING: Okay. James, I'm trying to figure 24 out -- what did you give me here? Current budget? The 25 current budget for '15? This is for the '14-'15, budget. 3-16-15 Airport Board budget workshop 44 1 MR. ROBLES: Yeah, that's the 9/30. 2 MR. KING: This is '14-'15. 3 MR. ROBLES: So that's what we started with. 4 That's -- 5 MR. KING: This was the original budget, and this 6 is what we -- 7 MR. ROBLES: That's the ending budget. 8 MR. KING: What do you mean by that? 9 MR. ROBLES: Through any budget adjustments, 10 anything we added to it. 11 (Multiple people speaking.) 12 THE REPORTER: One at a time, please. 13 MR. KING: But this has a consultant thing. 14 MR. ROBLES: Yeah, that's what that is. 15 MR. KING: That's going to be hard to figure out 16 the -- 17 MR. WALTERS: $100,000. 18 MR. KING: I see what you're saying, yeah. 19 MR. ROBLES: It kind of skews. 20 MR. KING: Skews it, 'cause we're taking money that 21 we -- yeah, that's not right. Okay, go ahead. Go ahead. 22 MR. LIVERMORE: All I was going to say is on the 12 23 more T-hangars, which I'd love to see, but we really can't 24 get into that with TexDOT for a couple years, can we? 25 MR. McKENZIE: That's correct. 3-16-15 Airport Board budget workshop 45 1 MS. DUNGAN: Yeah. We'll see. 2 MR. KING: Okay. 3 MR. LIVERMORE: That's not going to affect this 4 year. 5 MR. McKENZIE: No, sir. 6 MR. KING: What about down here at -- so, legal we 7 dropped to six, so a savings of four. The -- 8 MR. WOOD: Why do we think our water and sewer is 9 going to go up that much? 10 MS. DUNGAN: Because Brinkman is -- has gone up. 11 And -- 12 MR. WALTERS: Ronny's down there running his 13 washing machine? 14 MS. DUNGAN: Yeah. Well, it went -- it went from 15 nothing to, like, $200 -- 16 MR. LIVERMORE: Washing machines. 17 MS. DUNGAN: -- a month. 18 MR. KING: Air conditioning. 19 MR. McKENZIE: We pay for the water, sewer, and air 20 conditioning. 21 MR. KING: And electricity. 22 MS. DUNGAN: Yes. Hopefully he's taking showers. 23 MR. KING: Oh, boy. That -- in retrospect, we 24 probably should rethink that next time we do a lease like 25 that. It's one thing to just store airplanes in a hangar, 3-16-15 Airport Board budget workshop 46 1 but I never realized people would actually be -- 2 MR. GRIFFIN: Living. 3 MR. KING: -- living in the hangar, or officing in 4 the hangar, I mean, full-time people. Corey -- when Corey 5 was in this hangar for a long time, nobody actually -- 6 MR. LIVERMORE: Corey never washes? 7 MR. WOOD: Never took a shower. 8 MR. KING: Never occupied the hangar. He didn't 9 occupy the hangar eight hours a day. 10 MR. WALTERS: Yeah, that's true. 11 MR. KING: I don't think Brinkman ever occupied the 12 hangar. 13 MR. GRIFFIN: Open and close the door. 14 MS. DUNGAN: And, again, this is -- you know, once 15 we have a full year and we know what we can expect, it's 16 easier to budget, but when do you not know -- 17 MR. KING: How long of a lease did we -- 18 MR. McKENZIE: Everybody's got a five-year lease. 19 MR. KING: Boy, these things really look good on 20 the back side, don't they? (Laughter.) Gosh. 21 MAYOR PRATT: It really becomes a sweetheart deal. 22 MR. KING: C.P.I., man. 23 MAYOR PRATT: You know, your -- just a reminder. I 24 don't know where you were during that time, but your sewer 25 rates are based on the water usage for the months of 3-16-15 Airport Board budget workshop 47 1 December, January, and February. 2 MR. KING: Exactly. 3 MAYOR PRATT: That's residential only, okay? 4 That's not -- 5 MR. LIVERMORE: What did we do with contingency? 6 MR. KING: We haven't done anything. 7 MR. WALTERS: We're going to leave it. 8 MR. KING: We don't know. We're going to think 9 about it some more. Okay, so the water -- and I guess we'll 10 just leave it there. That only went up by what, 8 -- 16 -- 11 by $1,500? 12 MR. WALTERS: Went up 250. 13 MS. DUNGAN: 250. 14 MR. KING: 250, okay. 250. 15 MR. WOOD: Well, on the budget. 16 MR. WALTERS: On the budget. 17 MS. DUNGAN: Yeah. 18 MR. KING: Okay. All right. Reserve for capital. 19 You lowered that? 20 MS. DUNGAN: Well, remember, we bought a new 21 tractor. 22 MR. KING: Mm-hmm. 23 MS. DUNGAN: So it went from -- we spent 12,000 of 24 that 21. 25 MR. KING: Mm-hmm. 3-16-15 Airport Board budget workshop 48 1 MS. DUNGAN: So -- 2 MR. McKENZIE: It's at 16. We keep adding to that 3 every year, 'cause we'll need to buy a new pickup sometime. 4 MR. KING: Okay, I don't have any problem with 5 that. We're running out of pages. I can't cut enough; it's 6 harder than I thought. 7 MS. DUNGAN: Hey, we're -- 8 MR. KING: I'm about to come to the conclusion that 9 we got to add revenue now. Okay, light and power. We left 10 it the same. We dropped it on the propane 'cause you went up 11 by 1,500? 12 MS. DUNGAN: Yes, because last year we went over. 13 MR. KING: What are we burning that propane gas 14 for? Is that that -- 15 MR. McKENZIE: The heaters in the building and the 16 water heaters. That's all. 17 MR. KING: That heater up there? 18 MR. McKENZIE: Yes, sir, it's all propane. 19 MR. KING: We should have talked to Corey before we 20 put that in. 21 MS. DUNGAN: Exactly. Remember, the propane has 22 adjusted in price. 23 MR. McKENZIE: A little. 24 MR. WOOD: If we ever get the opportunity -- 25 MR. KING: There's no natural -- 3-16-15 Airport Board budget workshop 49 1 MR. WOOD: -- to replace a unit, we ought to 2 consider going electric instead of propane. 3 MR. McKENZIE: Excellent idea. 4 MR. KING: There's no natural gas out here? 5 MR. McKENZIE: There's no gas. There's a gas line 6 behind Mooney over there, natural gas. 7 MR. KING: That's as far as it goes? 8 MR. McKENZIE: Yes, sir. 9 MAYOR PRATT: Bruce, where the new hangars are, is 10 that a gas line coming through there? 11 MR. McKENZIE: No, sir. The gas line is right 12 behind the paint hangar, and goes all the way -- 13 MAYOR PRATT: I know, but that one -- 14 MR. GRIFFIN: The line that you're thinking of, 15 Mayor, is an old water line. It's an old water line. 16 MAYOR PRATT: Okay. 17 MR. KING: Boy, that was a mistake. 18 MR. LIVERMORE: What? 19 MR. KING: Them putting that propane gas out there 20 when we built this building. Glad I wasn't involved with 21 that. Spent a lot of money on that. Okay, nothing there. 22 Gosh, we've reached the end. 23 MR. WOOD: Well, according to this -- what is 24 M & O? 25 MR. ROBLES: Maintenance and operation. 3-16-15 Airport Board budget workshop 50 1 MR. WOOD: That's all -- I think all our expenses. 2 We went from 379,414 in 2014, and then we're budgeting 3 434,761 till we adjust it for whatever changes we made. 4 MR. KING: Actually went up. How did we go up that 5 much? I'm going to quit this -- 6 MR. WOOD: That's about 50 grand. 7 MR. KING: We're going backwards. I know we got 8 these new buildings and stuff, but -- disappointing. Is that 9 what that says? 10 MR. WOOD: I think so. 11 MS. DUNGAN: Your 434 is the total, yes. 12 MR. KING: Yeah. 13 MS. DUNGAN: 379 is how much we actually spent, 14 yes. 15 MR. KING: That's not what we spent; that's what 16 was approved for the budget that was -- 17 MR. WOOD: It's actual. 18 MR. KING: Is that actual spent or actual budgeted? 19 MS. DUNGAN: No, actually spent. 20 MR. McKENZIE: Spent. 21 MR. KING: What was budgeted? Do we know what was 22 budgeted for '14? That would be real handy to have. 23 MAYOR PRATT: Budgeted for what, Steve? 24 MR. KING: What did we actually budget for '14 25 versus what we spent? 3-16-15 Airport Board budget workshop 51 1 MR. ROBLES: Should be on the handout I gave you. 2 MAYOR PRATT: Yeah. 3 MR. KING: The one you gave me? 4 MR. McKENZIE: It's 404. 5 MR. KING: Okay, we budgeted 380,514. 6 MR. WOOD: That's what we actually spent. 7 MR. KING: No, we spent 379,414. 8 MR. WALTERS: That's pretty close. 9 MR. KING: I should have quit that year. That was 10 the best year we've done. So, we spent -- golly, we got 11 within $1,100. 12 MS. DUNGAN: Mm-hmm. 13 MR. KING: No wonder we can't cut any more. We've 14 peaked. Okay. Oh my gosh, so last year we spent 379; we 15 budgeted 380. This year we're going to budget 54,000 more, 16 but we're not going to ask our owners for any more money; 17 we're asking for a little bit less because of increased 18 revenue. 19 MS. DUNGAN: Yes, because of Brinkman and the 20 T-hangars. 21 MR. LIVERMORE: We haven't dealt with that 22 contingency. 23 MR. KING: No. I'm trying to see what we saved 24 here, hold on. 25 MR. ROBLES: I got 6,000. 3-16-15 Airport Board budget workshop 52 1 MS. DUNGAN: That's all I got. 2 MR. WALTERS: I got 8,883. 3 MS. DUNGAN: Right, 8,883. 4 MR. GRIFFIN: Yeah. We've got the 2,838 out of the 5 retirement. 6 MR. KING: Yes. 7 MR. GRIFFIN: We've got 2,000 -- I'm sorry for 8 instruments and apparatus. 9 MS. DUNGAN: 4,000 out of legal. 10 MR. GRIFFIN: And 4,000 out of legal, yeah. 11 MR. KING: That's 8,800, whatever. 12 MR. LIVERMORE: Instruments went to five? 13 MR. GRIFFIN: Yes, sir. 14 MR. WALTERS: 8,883. 15 MR. GRIFFIN: 8,883 is what I got. 16 MR. WALTERS: So I come up with a 2016 proposed 17 budget number of 425,878. Is that what you got? 18 (Low-voice discussion off the record.) 19 MR. LIVERMORE: How much did we contribute this 20 year to our -- to our -- I hate to use the word "surplus," 21 but extra money? 22 MAYOR PRATT: To your reserve. 23 MR. LIVERMORE: To the reserve, that's what that 24 is. That's the appropriate name for it. 25 MAYOR PRATT: Private business calls it the same 3-16-15 Airport Board budget workshop 53 1 thing. 2 MR. LIVERMORE: What -- what did we contribute to 3 the reserve this year? Do you know? 4 MR. WALTERS: He said 38. 5 MR. ROBLES: I can look that up and see. 6 MR. WOOD: Is that reserve for capital, is that 7 like an asset replacement fund? 8 MR. KING: Yeah, pay back on pickup truck. 9 MS. DUNGAN: Yes. 10 MR. WOOD: You know -- 11 MAYOR PRATT: Basically, your depreciation. 12 MR. WOOD: What kind of -- I know I can't do this 13 because this is a government budget, but like in the church, 14 we have an asset replacement fund that we use to replace any 15 capital items that break -- you know, have to be replaced. 16 And what that does, that allows you to have just an operating 17 budget, which is so much easier to monitor and to -- because 18 all your contingencies and everything are because you don't 19 know what's going to break next year. And if you had an 20 asset -- did a survey of all your assets here that could 21 break, and what that amount could be, and you have an asset 22 replacement fund for reserve for capital that was about that 23 number, that would make your job of doing a budget for 24 operations every year so much easier. 25 MR. LIVERMORE: Can that be done, though? 3-16-15 Airport Board budget workshop 54 1 MR. WOOD: Well, it would take money to put in 2 there. 3 MAYOR PRATT: Well, you know it's going to break; 4 you just don't know when. 5 MR. WOOD: That's right. 6 MAYOR PRATT: And so when it does break, you don't 7 have to go scrambling for money; you have it. 8 MR. WOOD: And it doesn't bust your operating 9 budget. 10 MAYOR PRATT: That's exactly right. 11 MR. WOOD: In that line item. 12 MAYOR PRATT: I mean, it's like in a homeowners 13 association, you got a swimming tool and tennis courts. You 14 know they have to be resurfaced. What's the life expectancy? 15 You build your reserve so that at the end of the life 16 expectancy, you have enough money to replace it. 17 MR. WALTERS: Do you want to give us some money so 18 we can build -- start to build a reserve account? 19 MAYOR PRATT: What do you mean, "give"? 20 MR. WOOD: Take it one time to roll it from City 21 and County to build up our capital reserve. 22 MR. WALTERS: I figured where we are is if you take 23 out the 80,000 of the intergovernmental revenue, that our -- 24 compared to our expenses, that we're $71,117 short, or 25 $35,558 for each the City and the County. 3-16-15 Airport Board budget workshop 55 1 MR. LIVERMORE: How much? 31 -- 2 MR. WALTERS: 35,558. 3 MR. McKENZIE: 12 each. 4 MR. LIVERMORE: Well, we're going down 7,500 as the 5 proposal is here, looks like. 6 MR. WOOD: About. 7 MR. KING: Just add the other half of -- half of 8 the 88 is 4,400. That's where the 12 -- that's where the 9 number comes. 10 MR. WOOD: That's where the number comes from. 11 MR. KING: Yeah. Well -- 12 MR. LIVERMORE: I think we ought to go with what we 13 got there. 14 MR. KING: Okay. 15 MR. LIVERMORE: But we're taking it down $7,478 16 each. 17 MR. WOOD: So, what are any other options that this 18 board has to increase revenue? Just building more T-hangars? 19 Is that the only one? 20 MR. KING: We're going to do a sign out here, 21 $1,200 a year. 22 MR. WOOD: Oh, yeah. 23 MR. McKENZIE: That's right. 24 MS. DUNGAN: Mooney has a lot of plans for 17, 18, 25 and 19 that are ours. 3-16-15 Airport Board budget workshop 56 1 MR. KING: I know. 2 MR. GRIFFIN: That would be an increase in revenue 3 if we can -- we'll have to do a new lease there on Building 4 18 if they choose to -- 5 MR. LIVERMORE: They're going to want those back 6 under the old lease. That's what they're going to say. 7 MS. DUNGAN: No, we have -- 8 MR. WOOD: Sell it back to them, huh? 9 MS. DUNGAN: Yeah. 10 MAYOR PRATT: Well, if they come back and redo the 11 roofs on them, you may have the same thing you just said. 12 MR. GRIFFIN: The other -- 13 MAYOR PRATT: Before we do the roofs, and we'll use 14 them. 15 MR. KING: Yeah. 16 MR. GRIFFIN: The other option, you know, we -- it 17 doesn't look like Mooney's going to ask anything of the old 18 paint hangar, and whether or not -- but it's going to take 19 money to repair that facility to get it to -- 20 MR. WOOD: Lease it. 21 MR. GRIFFIN: -- to lease it. 22 MAYOR PRATT: I think Mooney and everybody's 23 agreed, the old paint hangar's a tear-down. 24 MR. GRIFFIN: Oh, I'm not too sure. It's not going 25 to be used -- it's a loss as a paint facility goes, but the 3-16-15 Airport Board budget workshop 57 1 structure itself is sound. 2 MAYOR PRATT: I understand that. But what's -- of 3 the old paint used, what kind of paint, and what's in that 4 paint that's all over the place? Lead? 5 MR. GRIFFIN: I don't think that's an issue. 6 That's a lot of stuff other than lead. 7 MR. KING: Golly. Okay. All right. So -- 8 MR. LIVERMORE: It's interesting, the total -- 9 well, I'm looking for -- oh, I haven't looked down here. 10 MR. WOOD: The real question is going to be, do we 11 want to leave the City and County at 40,000, or drop it down 12 a little bit? 13 MR. KING: I want to drop it. 14 MR. WALTERS: I agree; I think we ought to drop it 15 down to 35,558. 16 MR. KING: That would make you happy, wouldn't it, 17 Mayor? 18 MAYOR PRATT: No comment. 19 MR. KING: Then we might be able to get the budget 20 down next year. 21 MR. WOOD: Shows we're going the right direction. 22 MR. LIVERMORE: We're working in the right 23 direction, based on -- 24 MR. KING: I know, but -- 25 MR. LIVERMORE: -- last year to the proposed this 3-16-15 Airport Board budget workshop 58 1 new year. 2 MAYOR PRATT: I'd rather see you drop it to an even 3 number. 4 MR. KING: 35? 5 MAYOR PRATT: 35 or 36. I mean, you know, just 6 keep it -- keep it round zeros all the way through. 7 MR. WALTERS: Drop it to 35,000, and take out the 8 difference out of our contingency. 9 MR. KING: Which we reduced to 20. Five -- 10 MR. GRIFFIN: $500. 11 MR. KING: We're going to make the City and the 12 County's contribution 35,000 a piece. 13 MR. McKENZIE: Even? 14 MR. KING: And then whatever the little difference 15 is, take it out of our contingency, and instead of 20,000, 16 we'll have 19,000-something. 17 (Low-voice discussion off the record.) 18 MR. KING: So, we'll just do 19 grand. 19 MR. McKENZIE: Going to make it 35,000 each with 20 the contributions, and the little bit of difference, take it 21 out of contingency, so that will drop it down to about 18. 22 MR. LIVERMORE: That's going to be a decrease over 23 last year -- the current year of about $12,500. 24 MS. DUNGAN: So we're taking 10,000 out of -- 25 MR. McKENZIE: Drop it back to 35,000 even. If 3-16-15 Airport Board budget workshop 59 1 there's any difference, take it out of contingency. 2 MR. LIVERMORE: Each one of them is budgeted to 3 give us 47,478 versus 35. 4 MR. KING: That -- yeah. 5 MR. LIVERMORE: That's 12,000 down from each one of 6 of them in round numbers. 7 MR. KING: Oh, yeah. Yeah. 8 MR. LIVERMORE: That's 24,000. 9 MR. McKENZIE: Back to what Corey said -- 10 MR. LIVERMORE: I'm sorry, Corey. 11 MR. KING: Most of that is increased revenue of 12 $48,087. Okay, we'll go with that. 13 MS. DUNGAN: We do have 255,417.43 in airport 14 money, if you guys wanted to put some of that into a capital 15 fund. 16 MR. KING: Oh, yeah. 17 MR. LIVERMORE: That's off the balance sheet? 18 MS. DUNGAN: Yes, sir. 19 MR. LIVERMORE: Yeah. 20 MR. WOOD: Where else would you put it? 21 MR. KING: Into that hangar over there. 22 MR. GRIFFIN: At least getting that hangar -- 23 MR. KING: To make it something over there where 24 you can lease it. 25 MAYOR PRATT: Which hangar are you talking about? 3-16-15 Airport Board budget workshop 60 1 MR. KING: The paint hangar. At least get it 2 looked at. We need to get it looked at, see what we -- 3 MR. GRIFFIN: We need to get a real cost for that. 4 MR. KING: We've had some interest in it many 5 times -- several times we've had interest in renting it. But 6 it's just got some warts on it that we probably need to -- 7 MR. LIVERMORE: Somebody wanted to put some oil 8 field equipment in there. 9 MAYOR PRATT: He put that in another city. 10 MR. KING: Yeah. 11 MR. LIVERMORE: Would have been a bunch of junk 12 laying around. 13 MR. GRIFFIN: What about -- 14 MR. KING: Okay. 15 MR. McKENZIE: What we'll do is make the 16 connections on this. We'll send it out and let you gentlemen 17 review it, and then we'll have it at our next board meeting 18 in April for your approval. And then immediately after that, 19 we'll present it to the City of Kerrville and Kerr County, 20 and we'll have to get that probably the first council meeting 21 in -- after our board meeting in April, which will be the 22 first one in May, I guess. 23 MR. WALTERS: What's the date of that April 24 meeting? Do you know? 25 MR. McKENZIE: I don't have my calendar. 3-16-15 Airport Board budget workshop 61 1 MS. DUNGAN: April 20th, I believe. 2 MR. WALTERS: 20th is Tuesday, isn't it? 3 MAYOR PRATT: We can do it on the 28th of April, 4 our City Council meeting. 5 MR. McKENZIE: Okay. 6 MR. WALTERS: 20th is Monday, okay. 7 MS. DUNGAN: April 20. 8 MR. KING: That works, all right. Budget -- 9 anybody have any more questions on the budget workshop? Any 10 more input? 11 MR. WOOD: Yeah. Thanks, Carole. 12 MR. KING: Yeah. Thanks, Carole. You did a great 13 job, both you and Bruce. Y'all really -- y'all understand 14 the whole system. 15 MR. LIVERMORE: We need to make sure that it's 16 publicized that we're reducing that again. 17 MR. McKENZIE: Well, and we'll do it when Steve 18 presents it to the Council and the Commissioners Court. 19 MAYOR PRATT: It will receive all the -- 20 MR. McKENZIE: I hope the mayor will help as well. 21 MR. KING: I thought we might get to zero this 22 year, but -- 23 MAYOR PRATT: We were just wishing. Wishing, just 24 like the rest of it. 25 MR. KING: Can we take some money out of that cash 3-16-15 Airport Board budget workshop 62 1 account? (Laughter.) 2 MR. KING: Oh, well. Well, now we just got to 3 figure out a way to increase revenue. I think we've reached 4 the -- 5 MR. GRIFFIN: Think we've reached operational -- 6 MR. KING: Reached operational -- 7 MR. WOOD: No fat left. 8 MR. KING: No fat left. 9 MR. LIVERMORE: There really isn't. 10 MR. KING: Boy, that's -- we spent within $1,100 of 11 our budget last year. That's pretty amazing. 12 MR. GRIFFIN: And that's handling the 13 contingency -- you know, the new -- 14 MR. KING: Moving money around. Okay, thank you 15 very much. The budget workshop is adjourned. Any motion on 16 that? 17 MR. LIVERMORE: Are we going to go back to our 18 executive session? 19 MR. KING: Yeah, if you want to. Okay, so budget 20 workshop is hereby closed. 21 (Budget workshop adjourned at 11:21 a.m.) 22 - - - - - - - - - - 23 24 25 3-16-15 Airport Board budget workshop 63 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 27th day of March, 2015. 8 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 3-16-15 Airport Board budget workshop