1 1 KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 2 Regular Meeting 3 Wednesday, June 8, 2016 4 Airport Terminal Conference Room 5 1877 Airport Loop Road 6 Kerrville, Texas 78028 7 ******************************************************** 8 MEMBERS PRESENT: MEMBERS ABSENT: 9 Stephen King, President Corey Walters, V.P. Bill Wood Ed Livermore 10 Kirk Griffin 11 AIRPORT COUNSEL 12 Patrick O'Fiel, Esquire 13 AIRPORT BOARD STAFF PRESENT: 14 Bruce McKenzie, Airport Manager Carole Dungan, Executive Assistant 15 COUNTY STAFF PRESENT: 16 Tom Moser, Commissioner Pct. 2 17 James Robles, Assistant Auditor 18 CITY STAFF PRESENT: 19 Bonnie White, Mayor 20 VISITORS 21 Robert Dutton, Mooney Joe Kennedy 22 23 24 25 2 1 I-N-D-E-X 2 NO. PAGE 3 *** Call to Order 3 4 1. VISITOR'S FORUM **** 5 2. KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 3 MEMBER FORUM 6 3. CONSENT AGENDA 7 3A. Approval of March 21 Board Meeting Minutes 4 8 4. DISCUSSION AND POSSIBLE ACTION 9 4A. Monthly Financials, March 4 10 4B. Replace Carpet in Terminal Building and 6 11 Paint Interior Walls 12 4C. Update of Minimum Standards 10 13 4D. Leasing of Building at 1994 Airport Loop 16 14 4F. Ground Lease for New Fueling System 25 15 5. INFORMATION AND DISCUSSION 16 5A. General Update 31 17 7. Adjournment 45 18 19 20 21 22 23 24 25 3 1 MR. KING: All right. I call this meeting 2 to order of the Kerrville-Kerr County Joint Airport 3 Board, June 8th, 2016. Call to order visitors' forum. 4 At this time any person with business not scheduled on 5 the agenda make speak to the airport board. No 6 deliberation or action may be taken on these items 7 because the Open Meetings Act requires an item be posted 8 on the agenda 72 hours before the meeting. Visitors are 9 asked to limit their comments to three minutes. Anybody 10 on the visitors' forum? 11 Item 2. The Kerrville-Kerr County Joint 12 Airport Board Member Forum. At this time any member of 13 the Airport Board may speak so the Board and/or public 14 present on any matter not scheduled on the agenda. No 15 deliberate or formal action can be taken on these items 16 because the Open Meeting Act requires an item to be 17 posted for 72 hours before the meeting. If formal 18 action is required, the item will be placed on the 19 agenda for a future meeting. 20 MR. WOOD: I'd like to say one thing. 21 Welcome our new Mayor to our meeting. 22 MAYOR WHITE: Thank you. 23 MR. KING: I was going to say the same 24 thing. 25 MAYOR WHITE: I'll take both of them. 4 1 MR. KING: Thank you for showing up, I 2 appreciate it, and Commissioner Moser, who's a regular 3 here weekly and we appreciate you showing up, it really 4 helps. I talked to the Mayor after this, after she was 5 elected, and it helps us. It questions some matters, it 6 gives us a little by the way of feedback that we don't 7 have to waste time. So we appreciate you guys showing 8 up. 9 The Consent Agenda, all items listed below 10 within the consent agenda are considered routine by the 11 Board and will be enacted with one motion. There will 12 not be separate discussion of items unless a Board 13 Member or citizen so request, in which event the item 14 will be removed from the general order of business and 15 considered in its normal sequence. 16 Approval of the April 18th, 2016 board 17 meeting minutes. 18 MR. GRIFFIN: So move. 19 MR. WOOD: I second. 20 MR. KING: Second by Mr. Wood. Discussion? 21 None being heard, all in favor. Three zero. 22 Discussion and possible action of the 23 monthly financials for April and May. James. 24 MR. ROBLES: Good morning. You should have 25 April and May in front of you. For the month of April, 5 1 a couple of highlights. We did a mowing cycle, so that 2 gives us five left. And looking out the window, I think 3 we got another one going on. We also had a draw for the 4 Mooney roof project, have a hundred and 73 thousand left 5 in there, and finish up that project. 6 The month of May is not near as exciting, 7 standard small bills. I've said this before, I'll say 8 it again, Bruce, Carole and the staff have done a great 9 job controlling our expense. If you look down the right 10 column you'll see a lot of -- 11 COMMISSIONER MOSER: What page you on? 12 MR. ROBLES: Any page really. A lot of 13 their line items have 60, 70, 80, a hundred percent left 14 in them, as of the end of May, which takes us 2/3 of the 15 way through the year. We have 99,173 revenue over 16 expenditure, which is always a good thing. 17 MR. KING: What is the total fund balance? 18 MR. ROBLES: As of May for fund 47, 19 $349,034.85. 20 MR. WOOD: Do we have any big expenditures 21 coming up, Bruce? 22 MR. McKENZIE: Not huge ones. There was one 23 incident that happened and I'll discuss it a little 24 later on in the meeting. But I'll briefly tell you 25 about it right now. The flooding, we lost about 80 foot 6 1 of our chain link fence over behind Mooney on Silver 2 Creek, and the deductible on floods is 25 thousand 3 dollars, so we're going to have to come out of pocket 4 with that one. 5 Now the one where the car hit the fence the 6 other day and went through it out here on the highway, 7 that's covered by insurance. We had a bad week for 8 fences around here. I mean we'll discuss it later, but 9 nothing any bigger than that. 10 MR. WOOD: Okay. 11 MR. KING: Anybody else have any questions? 12 You guys are doing a great job controlling expenses, 13 that's what we like to see. All right. A motion to 14 approve. 15 MR. WOOD: I move. 16 MR. KING: Second? 17 MR. GRIFFIN: Second. 18 MR. KING: Discussion. None being heard, 19 all in favor, three zero. 20 Item 4-B. Replace the carpet in the 21 terminal building, paint interior walls. 22 MR. McKENZIE: We discussed this a couple 23 meetings prior, and we've got some prices, Carole has. 24 And putting new carpet where there is carpet now. And 25 this carpet's over nine years old now. This building 7 1 was nine years old in March. So we moved in March of 2 2007, so -- 3 MR. KING: Which part of the building has 4 carpet? 5 MR. McKENZIE: This and our office, three 6 little offices across the hall and the pilot's lounge. 7 MRS. DUNGAN: And office 121. 8 MR. McKENZIE: And David Brian's office at 9 the end of the hall. 10 MR. KING: Are any of them more worn than 11 the others? 12 MR. McKENZIE: The one in the pilot's lounge 13 is pretty warn. 14 MRS. DUNGAN: And also 121. 15 COMMISSIONER MOSER: This is not too bad. 16 MR. McKENZIE: Those are. And this one 17 is(indicating), and 121 is pretty worn. 18 MR. KING: Is your's pretty worn? 19 MR. McKENZIE: I can live with it. 20 MR. KING: You want some shag or something? 21 MR. McKENZIE: No green shag. No green 22 shag. No, but this was just brought up, we wanted to 23 get some prices on it. 24 MR. WOOD: Are you looking at the same type 25 of carpet? 8 1 MR. McKENZIE: Basically the same type of 2 thing, isn't it, Carole? 3 MRS. DUNGAN: Yes. 4 MR. KING: Personally I think -- I think we 5 just need to replace on an as-needed basis. I mean this 6 one right here I think gets used four times a month, 7 five times a month. 8 MR. McKENZIE: At most. Maybe we can just 9 do the pilots' lounge? 10 MR. KING: Let's look at it and if it needs 11 to be, I mean I want it to show a good -- 12 MR. WOOD: For our tenants. 13 MR. McKENZIE: Nobody's complaining. It was 14 just brought up. 15 MR. KING: Maybe we should just start out at 16 the pilot's. I don't think we're going to get a big 17 discount. 18 COMMISSIONER MOSER: There goes a high 19 roller right there. (Jet taking off.) 20 MR. KING: Yeah. Let's look at -- I mean I 21 don't have a problem changing it out if it needs to be 22 changed out. 23 MR. McKENZIE: We'll look and -- 24 MR. KING: I don't think the Board has a 25 problem either. 9 1 MR. McKENZIE: We just take it on a case by 2 case basis and do that one little room over there if we 3 decide to. And the other is painting these interior 4 walls if we get to that point. And we have one price on 5 that and it was $14,850.00, from a local painting 6 contractor. The other two we're having a difficult time 7 getting these guys to come out and look. 8 MR. KING: Which rooms need to be painted? 9 MR. McKENZIE: Just to paint the interior of 10 the terminal building. 11 MRS. DUNGAN: Everything. 12 MR. McKENZIE: We're looking at it being 13 around ten years old. And this is just FYI stuff. 14 MR. KING: Age doesn't bother me. 15 COMMISSIONER MOSER: Look at the evidence. 16 MR. KING: My wife would say if you come 17 bring that up, my wife's going to repaint my house. 18 It's seven years old. 19 MR. McKENZIE: Well, it was brought up to me 20 so I got the price. 21 MR. KING: Why don't we look at that on an 22 as needed basis. 23 MR. GRIFFIN: That one is over in this area 24 across where the planning area is and that kind of 25 stuff. You look at the corners and they're getting 10 1 pretty dinged up. 2 MRS. DUNGAN: And the soot marks on the 3 ceiling. 4 MR. GRIFFIN: We still have the soot marks 5 from the fireplace. 6 MR. KING: We do? 7 MR. GRIFFIN: But that's kind of a -- that's 8 probably not that big of a deal. 9 MR. McKENZIE: We have the numbers. 10 MR. KING: Does Jason have a helper right 11 now? 12 MR. McKENZIE: Yes, Sir. That's what I 13 thought about. 14 MR. KING: Why don't you give them a bucket 15 of paint and a brush. No, no, I'm not talking about 16 over there, but I mean as far as -- as far as corners 17 and walls. 18 MR. McKENZIE: Touching up. 19 MR. KING: Yeah, I'm no master craftsman, 20 but I can do that. I do that all the time. 21 MR. McKENZIE: Sure. We absolutely can. 22 MR. KING: We'll do that on an as needed 23 basis. I want it to look nice and everything, but I 24 don't want to spend anymore money than I have to. 25 All right, item 4C, minimum standards. 11 1 MR. GRIFFIN: I'll let you. 2 MR. WOOD: At the previous meeting, we 3 brought up the idea of about -- of our minimum standards 4 might be out of date. And Kirk and I did some -- we 5 were kind of appointed do some research for the rest of 6 the Board and we looked in the FAA Advisory Circular 7 150/5190-7, minimum standards for commercial 8 aeronautical activities. And in there there's some 9 justification for doing these reviews. An airport 10 sponsor, which is the Board, can provide for periodic 11 reviews of the minimum standards to ensure the standards 12 continue to be reasonable. To foster a more receptive 13 environment, the FAA encourages airport sponsors, AKA 14 Boards, to include aeronautical users in the process 15 leading to changes in minimum standards. Which means we 16 might involve some of the people that minimum standards 17 apply to, to be involved in the revision. And it also 18 says minimum standards should be updated to reflect 19 current conditions that exist at the airport and not 20 those that existed in the past. And that's in there. 21 And there's a little summary of what Kirk 22 and I did. There's some -- I don't want to read them 23 all, there's some guidelines the FAA establishes, five 24 of them that basically says you apply these standards to 25 everybody equally, and you want to protect the existing 12 1 users who have made investments in order to do what they 2 do. But you also want to make it possible for other 3 aeronautical service providers to be able to come in and 4 do their work in a reasonable way. So with all that in 5 mind, Kirk and I went through the minimum standards -- 6 COMMISSIONER MOSER: Do minimum standards 7 apply only to aircraft operations, or I mean since the 8 airport's got a lot of stuff that's not you know -- 9 MR. WOOD: Well, there might be one 10 mentioned about non aeronautical users. 11 MR. GRIFFIN: It's more really, the way I 12 saw it is it says the bottom line kind of is it says if 13 you take our money, you need to play fair and openly to 14 everybody that walks in the door. 15 COMMISSIONER MOSER: Okay. 16 MR. GRIFFIN: As the Kirk Griffin 17 interpretation of it. 18 COMMISSIONER MOSER: Okay. Well, that 19 sounds reasonable. 20 MR. GRIFFIN: And it sounds reasonable. 21 MR. WOOD: And it's directed 99 percent to 22 aeronautical service providers. But it does have 23 another paragraph where it talks about non aeronautical. 24 That would basically be somebody that wasn't right in 25 the -- well, like it could be a food vendor or 13 1 something. 2 COMMISSIONER MOSER: Okay. All right. Well 3 I think Kirk said it pretty well. If you take our 4 money, we get to make sure you're playing fair. 5 MR. GRIFFIN: You have to open your doors 6 and play fair. And that all reasonable comments and 7 discourses and all the other things that come with it. 8 But yes I have -- 9 COMMISSIONER MOSER: Probably don't want to 10 pay them back what we take from them. 11 MR. KING: I was going to add to that and 12 its opinion proven in the Court system many times, I 13 mean it's all over the nation it's been proven in the 14 Court's where a municipal -- where California's been a 15 big hot bed for that. Like what's the -- 16 MR. GRIFFIN: Santa Monica. 17 MR. KING: Santa Monica. Santa Monica 18 Airport is in a real industrial area, with a lot of 19 business area, and they want to take the Santa Monica 20 Airport, turn it into a -- just get rid of it and move 21 it out of there, and use it for commercial property. 22 Because it's more valuable as commercial property than 23 it is as an airport. But the FAA -- the AOPA petitioned 24 the FAA, and the FAA they filed, there was a big lawsuit 25 and they lost, the City of Santa Monica lost on the 14 1 deal. Because they had to pay them back all the money. 2 COMMISSIONER MOSER: We don't want to do 3 that. 4 MR. KING: They just said send a bill 5 basically. 6 MR. GRIFFIN: And we kind of brought up and 7 we've had discussions with Bruce, you know, our minimum 8 standards were written at the time when this Board 9 didn't exist the way it exists currently. The Airport 10 Manager was responsible for everything out here, didn't 11 have a board to lean back on for support. And so when 12 he wrote that first set of minimum standards, he was 13 trying to be all inclusive and catch everything he could 14 to make sure that if somebody walked in the door, he had 15 something to back him up. 16 COMMISSIONER MOSER: I see. 17 MR. GRIFFIN: And so you take the context 18 that it was written, you can see where he was trying to 19 go. And with the stuff that's out now, it's time for a 20 redo. 21 MR. WOOD: Well, that's it. The second page 22 of this document, there's like a dozen of the parts that 23 we felt like needed to be addressed, so it's not going 24 to be a complete redo. We're just looking at some that 25 we felt warranted attention. And part of that is to 15 1 look at now versus then. And of course, the other two 2 were the -- main two things are to make it fair for the 3 existing folks who have made an investment, and also 4 make it possible for new people to come in, because we 5 would like to attract other type of aeronautical service 6 providers here. You know like maybe a turbine -- 7 MR. McKENZIE: Shop. 8 MR. WOOD: -- shop. To work on turbines. 9 Like something we don't, like maybe avionics. 10 MR. McKENZIE: Exactly. 11 MR. WOOD: And anyway that's what we've done 12 and I'd like to propose that we have another workshop. 13 And we don't restrict ourselves to these 12 that Kirk 14 and I identified. The minimum standards is on the 15 website and anybody can look at them. And anybody who 16 comes to that workshop. And if they have any areas to 17 address we'll address them. But the workshop would be 18 to get the exact wording developed. And we'll call them 19 revised as of 2016. 20 MR. KING: Okay. Anybody else have any 21 questions or discussion on that? Let's take no action 22 on that, we'll just schedule a workshop. 23 MR. McKENZIE: Schedule a workshop whenever 24 necessary. 25 MR. GRIFFIN: Okay. 16 1 MR. KING: Just get Bruce to put out some 2 dates. 3 MR. WOOD: Probably the next month or so. 4 While it's still fresh on my mind. 5 COMMISSIONER MOSER: Would you have proposed 6 wording changes before you have the workshop? 7 MR. WOOD: Yes, yes. We have already. 8 MR. GRIFFIN: We've done that. 9 MR. WOOD: The two of us have already kind 10 of done that. But we want everybody to look at it. 11 MR. KING: And Ed's a good wordsmith, he's 12 pretty good at wording. 13 MR. WOOD: If we have enough ink. 14 MR. KING: Pardon. 15 MR. WOOD: If we have enough ink. 16 MR. KING: It won't be minimum standards 17 anymore. 18 MR. WOOD: It'll be maximum standards. 19 MR. GRIFFIN: Maximum words and minimum 20 standards. 21 MR. WOOD: There you go. 22 MR. KING: There you go. He's not here 23 so -- 24 MR. WOOD: Oh, we love Ed. 25 MR. KING: All right. 4D the leasing of 17 1 building at 1994 Airport Loop Road. 2 MR. McKENZIE: Yes, Sir. We did as 3 requested and also as recommended by our legal council 4 and we put this and advertised it in the paper for 30 5 days or for a month, and we received only one bid the 6 second time, and it was six hundred dollars less than 7 the one we got unsolicited back in February. So it was 8 18 hundred dollars the first bid. The second one we got 9 was 12 hundred dollars. So it's up to the pleasure of 10 the Board as to how we -- 11 MR. WOOD: Well, it'd be nice if Mr. Dunagan 12 would date his letters. 13 MR. McKENZIE: We dated it at the top when 14 we got it. 15 MR. WOOD: But I guess this is the most 16 recent one for 18 hundred. 17 MR. McKENZIE: No; 12 hundred. He walked in 18 unsolicited in the building in February, I'd like to get 19 the building, I'll give you 18 hundred dollars for it. 20 MR. WOOD: But the latest one is 12 hundred. 21 MR. GRIFFIN: Same guy. 22 MR. KING: We can't afford to put out 23 another bid again. We're going backwards. I guess my 24 thoughts on this are -- I think we're trying to comply 25 with -- Mayor, we're trying to comply with the County -- 18 1 a County -- is it an ordinance or directive or what do 2 y'all have over there at the County? What do you all 3 call that? 4 MAYOR WHITE: A policy. 5 MR. KING: Policy. We're trying to comply 6 with the County policy that says if there's buildings or 7 space available that's not, and we -- I think our legal 8 council says that if it's not on the airside of the 9 airport, it's off the actual airside of the airport -- 10 MR. McKENZIE: It's non aviation related. 11 MR. KING: -- it's non aviation related. 12 And we have to go by the County rules and y'all have 13 adopted some rules that you have to bid stuff. 14 MR. O'FIEL: Yeah. Regulated by the 15 Government Code about how County sells or leases 16 properties, municipalities are not regulated while 17 counties are. And so it's jointly owned -- 18 COMMISSIONER MOSER: Isn't it in the City? 19 MR. KING: It's in the City, but it's owned 20 by both. So what we're trying to -- you weren't at the 21 last meeting when we were haggling, trying to figure 22 out. I'll be real honest with you, in the past we've 23 done it the other way. I mean we've leased that 24 building. 25 MR. McKENZIE: The last time it was leased 19 1 was about 12 years ago and that was to the folks that 2 built all the deer feeders, BA Products. 3 MR. KING: Yeah, BA Products. Gibson's 4 built it, it was a Gibson building, and BA Products 5 leased it for a long time. 6 MR. O'FIEL: And I've been in contact with 7 Heather Stebbins, and you have a civil process that, I 8 guess a few months ago about the same time this is 9 coming up. But so if not -- if y'all didn't have that 10 process we had to do kind of like the public auction 11 type process, so we were trying to do a combination of 12 both. 13 MR. KING: So what I suggested was just in 14 talking to -- I talked to a couple of my local 15 commercial realtors in town and they didn't see an ad in 16 the paper. I don't think we had very good -- we didn't 17 get very good -- I mean it's in the paper, and I don't 18 know if you -- 19 COMMISSIONER MOSER: Well, let me ask a 20 question. So you complied with what policy? 21 MR. KING: We complied with your policy. 22 COMMISSIONER MOSER: Well, what's the issue? 23 I mean if we just -- hypothetically, if we said 24 Commissioners' Court says we're going to change it for 25 this case, does that help you in any way? 20 1 MR. KING: Well, the thing we'd like to 2 do -- I mean what I'd like to do, I suggested we do, I 3 had a commercial realtor over here yesterday who looked 4 at the building and he looked at the building. He 5 didn't know about the building. I mean, he had no clue 6 about the building. And he said look, I think I could 7 find a tenant for that building, and it's worth a heck 8 of a lot more than 12 hundred dollars a month. It's a 9 ten thousand square foot building. I mean just for 10 putting hay, you think it would be worth more than that. 11 And it just -- he said, you know, I think you -- but 12 you're going to have to get some people in the community 13 who are in this business, notify them of it that it's 14 available. I said I think you could probably, you know, 15 you're probably going to have to pay somebody a small 16 commission, maybe a flat rate or something like that. 17 You know a thousand, some sort of a flat rate for 18 leasing it for us. But I just think we're going to have 19 to go a different route on it. Unless we want to 20 accept, you know, what I feel is a substandard amount. 21 MR. GRIFFIN: And I think what concerns me 22 here is the amount of the value that it's not worth our 23 risk to lease it at that price. 24 MR. WOOD: And also we got a responsibility 25 to the owners to get a fair return for it, so -- 21 1 MR. KING: I mean I just don't think -- 2 MR. WOOD: We don't have to take the bids. 3 Is there any -- 4 COMMISSIONER MOSER: You're not obligated to 5 take the bids. 6 MR. KING: And the only thing on the table 7 is 12 hundred dollars. 8 COMMISSIONER MOSER: I'd say go the other 9 route. And if the Court and -- if you want us to 10 consider something, changing the policy for a unique 11 situation or something. 12 MR. O'FIEL: Y'all made the procedure a lot 13 easier than it was six months ago. 14 COMMISSIONER MOSER: Okay. 15 MR. KING: I think if we could dredge up a 16 little bit of interest in the thing, we could still go 17 through the bidding process. You know if we had a 18 couple interested parties. I don't think we've taken 19 the right steps to get the right people involved in it. 20 MR. WOOD: What I'd like to see us do is 21 just do it the logical way and notify the County and 22 tell them hey we're doing this, you guys tell us if we 23 can do it or not. 24 MR. O'FIEL: But we coordinated with the 25 County attorney, and just to be clear, all the hangars 22 1 on this side of the fence we do not have to go through 2 that process if they're aeronautical use. 3 MR. McKENZIE: So the airside. 4 MR. KING: So why don't we try to do that. 5 At least get together with some commercial guys and get 6 the word out, you know. 7 COMMISSIONER MOSER: That's property next to 8 you. 9 MR. KING: How about put a 'for lease' sign 10 on it to start with. 11 MR. WOOD: I think a broker -- 12 MR. GRIFFIN: In turn, our current lease 13 with Alamo college has done run out the 31st of July. 14 So we've got a tenant in there legally that until the 15 31st, so we really can't do anything for another month. 16 MR. KING: Right. We can put -- 17 MR. GRIFFIN: We've got some time. When you 18 were in there yesterday were those welding machines 19 still in there? 20 MR. KING: I think, uh-huh. 21 MR. McKENZIE: So they're still occupying 22 it. 23 MR. GRIFFIN: Yeah. 24 MR. KING: So I think so his comment about 25 the building was boy it's a nice building. I mean it's 23 1 ADA compliant. I mean it's move-in ready. I mean 2 anybody could walk into that thing. 3 MR. WOOD: Alamo College did a bunch of work 4 on it. 5 COMMISSIONER MOSER: They spent a lot of 6 money. 7 MR. KING: A lot of money that has been 8 thrown in that building. 9 MR. WOOD: Have we approached them about if 10 they paid a reasonable amount of rent, would they like 11 to continue? 12 MR. McKENZIE: I have approached them with 13 that, but -- 14 MR. KING: They're paying a dollar right 15 now. 16 MR. McKENZIE: And they haven't paid us a 17 dollar yet, so this -- and that was four years ago. And 18 that's my fault. 19 MR. KING: So they're in arrears right now. 20 MR. GRIFFIN: Four bucks. 21 MR. WOOD: It was a worthwhile venture when 22 we did it. They never got enough welders trained to 23 help Fox Tanks or anything. Good idea, but just didn't 24 work out. 25 MR. KING: All right. Let's try that. 24 1 Let's try a different procedure here and see. 2 MR. McKENZIE: So we're going to reject 3 these two? 4 MR. KING: Well, there's only one, one bid. 5 MR. McKENZIE: Okay. 6 MR. KING: For 12 hundred dollars. 7 MR. McKENZIE: Very good. 8 MR. WOOD: Does that have to be a -- to be a 9 sealed bid? 10 MR. McKENZIE: That's what they did last 11 time. 12 MR. KING: Didn't take long. Really quick. 13 MR. McKENZIE: He was standing here when we 14 opened the bids, but he doesn't know what we're going to 15 do, yet. I just need to notify him that the bid is 16 rejected. 17 MR. GRIFFIN: So I make a motion that we 18 reject the current bid. 19 MR. WOOD: And I second that motion. 20 MR. GRIFFIN: And we'll try to do some 21 advertising. 22 MR. WOOD: Pursue other means. 23 MR. KING: No other discussion on the 24 matter. All in favor of rejecting it. You have a 25 motion. 25 1 MR. GRIFFIN: I have a motion. 2 MR. WOOD: And I seconded it. 3 MR. KING: Three zero. Okay. All right. 4 MR. GRIFFIN: You want me to do this? 5 MR. KING: Okay, we're going to kill 4 -- 6 MR. McKENZIE: We're going to kill 4E. 7 MR. KING: Item 4F. Bruce is going to 8 introduce this. I'm going to recuse myself in this 9 matter here, because I'm involved in it. 10 MR. McKENZIE: This item is to lease a .35 11 acre tract of land on the airport to a company named 12 South Texas Refueling, LLC. 13 MR. KING: Sit over here. 14 MR. McKENZIE: And it's to self fuel 15 aircraft, and that's legal in our minimum standards. 16 And I want in an effort of full disclosure, one of our 17 board members is involved in this. And that's why he 18 recused himself. The President of the Board, Steve 19 King. I just want to make this public that this is what 20 it is. It's -- the property's been surveyed. I have 21 the meets and bounds here, our attorney has it. He's 22 working on the lease now. It's 15,327 square feet at 18 23 cents a square feet, that's 27 hundred and 58 dollars a 24 year for the property. And that's what the tenant has 25 agreed to pay, and that's our going rate. 26 1 So it's right next to the fuel form that Joe 2 Kennedy has. It's right next to the two 12 thousand 3 gallon tanks. 4 MR. GRIFFIN: It's right inside of the old 5 fence enclosure there. So it's above where Joey's is. 6 MR. WOOD: So it'll meet all the regulations 7 and -- 8 MR. McKENZIE: Yeah. As far as he has to 9 comply with all the rules and regs. 10 MR. WOOD: Question. Is this a company 11 that's going to offer fuel for sale to the general 12 public? 13 MR. McKENZIE: No. 14 MR. GRIFFIN: It's a self fueling. 15 MR. WOOD: Is an incorporation of people 16 that are just -- 17 MR. KING: Right now it's a single member. 18 It has one member, myself. It's under Section 3D.13 of 19 the self-fueling regulations for the minimum standards. 20 Owners of Aircraft based at the airport who desire to 21 self fuel their aircraft, shall apply for and receive a 22 self-fueling permit from the Airport Manager. And this 23 doesn't apply to a self service fueling deal. 24 I have a 12 thousand gallon double wall tank 25 that I purchased. I mean it's a really -- it's like a 27 1 hundred thousand dollar piece of equipment, and it's 2 been coated over at Fox Paint. It's sitting over at Fox 3 Tank right now. We coated it with epoxy to comply with 4 FAA standards. And like I say I'm going to use it for 5 self-fueling deal and fuel my aircraft. 6 COMMISSIONER MOSER: So is that the lease 7 rate equivalent to -- I mean is that the same rate as 8 everyone? 9 MR. McKENZIE: Yes, Sir. It meets the 10 Federal grant assurances. We treat everybody the same 11 yes, Sir. 12 MR. KING: And we did, we did. While we 13 were being looking at this, I made this application to 14 look at it, we had local -- 15 MR. McKENZIE: Lee Voelkel. 16 MR. KING: -- Lee Voelkel survey that 17 property over there and we found out it was all screwed 18 up. And Joey's tanks weren't even on his lease. I 19 guess back before Joey was here, and Mr. Kennedy was 20 here, I guess they just said go put it over there, and 21 whatever. 22 MR. KENNEDY: Yeah. There was two leases. 23 The reason there was is -- and is and there was 24 Kerrville Aviation. 25 MR. KING: So two leases, but both of his 28 1 leases his tank wasn't on either one of them. So we had 2 Lee resurvey the whole thing and basically do an 3 addendum to Joey's lease. Which makes his lease you 4 know basically in effect. 5 Any other questions? 6 MR. GRIFFIN: I have -- since we only have 7 two members we can't vote on anything. So I mean 8 discussions are fine at this point. We're going to have 9 to -- 10 MR. WOOD: But this does meet our minimum 11 standards. It doesn't violate them. 12 MR. GRIFFIN: No, Sir. The question I think 13 is out there. This is can we -- we can't say go ahead 14 -- you can do a lease without board approval. 15 MR. McKENZIE: Yes, Sir. 16 MR. GRIFFIN: So this -- you don't -- but 17 where I'm going is you don't need a vote by this Board 18 to say I'm going to do this lease. So therefore, we can 19 unless there's any other discussions that need to 20 happen, we can say okay, sounds good, that's the price. 21 COMMISSIONER MOSER: You're saying he's got 22 the authority to do it. 23 MR. McKENZIE: And I've instructed our legal 24 council Mr. O'Fiel to prepare the lease and he said he'd 25 have it ready in about ten days. But we're going to 29 1 clear up the property description. 2 MR. McKENZIE: We're going to put an 3 amendment to Mr. Kennedy's lease with Kerrville 4 Aviation. I've talked with him, he's in agreement with 5 this. This is a smooth transition, it was a straight-up 6 deal. 7 MAYOR WHITE: How long are you contemplating 8 the lease? 9 MR. McKENZIE: The lease will be a 20-year 10 lease with two five-year options. 11 MAYOR WHITE: You going to live that long, 12 Steve? 13 MR. KING: I don't know. 14 MR. McKENZIE: I asked him, 20 years. 15 MR. WOOD: So he's going to be the only 90 16 year old jet pilot I know. 17 MR. KING: I would say this is not unusual, 18 it's not an unusual circumstance. The aircraft just 19 took out of here was based in Houston, and Houston 20 Hobby. That was a large aircraft that left. They have 21 their own self-fueling. It lasts -- I was told a while 22 back, they pump six hundred thousand gallons of their 23 own fuel every year. So many airports, most airports 24 have this option available to their commercial 25 operators. This is everywhere. I mean you going to 30 1 Dallas, anywhere, they all of their own fuel system, 2 because they're wanting to fuel at their own 3 convenience, instead of waiting on somebody. 4 MAYOR WHITE: Do they have their special 5 permit for that, and do we have special insurance for 6 that? 7 MR. KING: I have to provide a million 8 dollars liability insurance. It has to meet the fire 9 marshall's fire code, which it does. It's a UL 142 tank 10 system. Which is a -- it's actually a double wall tank. 11 Which is actually more than what we have out there right 12 now. I mean it's a two year old tank, so it meets all 13 the standards for explosion and everything. I mean it's 14 a really nice system. And everything is set out in the 15 minimum standards what it has to meet, as far as the 16 fire code and stuff, what code it has to meet and all 17 that stuff. So thing's pretty straight forward. 18 MR. WOOD: Is there anything that we have to 19 consider about how you get the fuel from the tank to 20 your airplane? I mean -- 21 MR. KING: In my truck. 22 MR. WOOD: You have a fuel truck. 23 MR. KING: And there's minimum standards in 24 the State about the fuel truck, too. 25 MR. WOOD: I just want to be complete. 31 1 MR. KING: Okay. All right. Anything else? 2 Item -- item 5 information and general 3 discussion. 4 MR. McKENZIE: Yes, Sir. Since Mr. Dutton's 5 here, we'll go through the Mooney situation here. First 6 of all as of yesterday, and I'm looking at it now, your 7 new sign looks great. It's on the side of that building 8 right there. 9 MR. DUTTON: Thank you. 10 MR. KING: Look at that, it looks nice. 11 MR. McKENZIE: Really looks nice. Is it 12 backlit? 13 MR. DUTTON: It's backlit with LED. 14 MR. McKENZIE: Well, that looks a thousand 15 percent better than the -- 16 MR. DUTTON: Yeah. 17 MR. WOOD: It's right there where people 18 that are flying in can see it. 19 MR. McKENZIE: You can see it from the 20 highway. Looks good. 21 MR. DUTTON: Thank you. 22 MR. McKENZIE: The second thing about Mooney 23 is we lack one small area to complete the hot mix paving 24 project over there. And we stopped that two and a half 25 weeks ago, and because of the weather. And I talked to 32 1 the County and as soon as it dries up they need about 2 three days to finish prepping it. Take the City a day 3 to pave it. But everybody's behind now because of the 4 weather. So I'm sorry for the inconvenience. 5 MR. DUTTON: No problem. 6 MR. McKENZIE: But I talked to Mike Jenschke 7 yesterday, so they're happy still. We haven't forgot 8 you. But the weather is -- 9 MR. DUTTON: I say we appreciate it. Thank 10 you for doing that. 11 MR. McKENZIE: I'm glad you're pleased. We 12 haven't forgotten you. Just be patient until we get 13 back in the loop. 14 MR. WOOD: I guess the weather provided us 15 an opportunity to test the new roof pretty well. 16 MR. DUTTON: Well, we found a lot of leaks 17 there, so we've had Crown Roofing back. 18 MR. WOOD: Actually that's good. 19 MR. DUTTON: Yeah, it's good. Might not 20 rain for a while now. We're moving forward there 21 working on the large assembly hangar now, they're 22 getting ready to paint that. 23 COMMISSIONER MOSER: Yeah, we can see it. 24 MR. KING: So how much more do they have? 25 MR. GRIFFIN: That's it. 33 1 MR. McKENZIE: That's the last building, but 2 I'm not putting anymore dates on it, because the last 3 two I've put under I got gunned under. So I'm not sure 4 how long it's going to take to finish it. 5 MR. DUTTON: My guess is probably another 6 two months. 7 MR. McKENZIE: I figured until August. 8 MR. KING: Are they going to come in under 9 budget -- 10 MR. DUTTON: Trying. 11 MR. KING: They're going to spend all the 12 money? 13 MR. McKENZIE: Oh, yeah. 14 MR. KING: They're not going to be overages. 15 MR. WOOD: In this type of the project where 16 the change orders -- 17 MR. DUTTON: Yeah, it's coming along. 18 MR. KING: Anything else? 19 MR. DUTTON: No. We're doing really well 20 there. A lot of interest. A lot of people touring the 21 place of course. A lot of good interest off of 22 customers, potential customers. We had the Sun and Fun 23 air show a couple months ago. Had a lot of interest in 24 the new model airplane. And Oshkosh coming up in July, 25 the 25th of July. 34 1 MR. WOOD: How's the interest in the two 2 doors? 3 MR. DUTTON: A lot of interest in that new 4 airplane. 5 MR. WOOD: That's the biggest improvement. 6 COMMISSIONER MOSER: So are you FAA -- 7 MR. DUTTON: We don't have a certificate. 8 COMMISSIONER MOSER: -- to deliver those 9 yet? 10 MR. DUTTON: Not yet. We're a month or so 11 away from that. 12 COMMISSIONER MOSER: How long? 13 MR. DUTTON: A couple months. 14 COMMISSIONER MOSER: So people are chomping 15 at the bits. 16 MR. KING: So you are building right now. 17 MR. DUTTON: Yes. We have a full assembly 18 line. We're maintaining a force of about a hundred and 19 60, a hundred and 65. 20 MR. McKENZIE: Good. Outstanding. Thank 21 you. 22 MR. KING: So you finished one off of -- I 23 was in Corrigan's yesterday, or day before yesterday, 24 and they said you were bringing a two door down there 25 for them to paint. 35 1 MR. DUTTON: Yeah. 2 MR. KING: Is that a customer? 3 MR. DUTTON: That's going to be our company 4 airplane. So we've got two of the two-door ultras, they 5 call them, flying right now. And we've got more coming 6 off the line. 7 MR. KING: Good. 8 MR. McKENZIE: All right. Thanks, Robert. 9 We are now starting another mowing cycle and that's a 10 good thing. It's finally got dry enough to mow again. 11 We had two incidents with the fences that I mentioned 12 earlier. A car went through the fence through the 13 weekend right across from James Avery, left the scene 14 and made a mess. But the interesting thing about it was 15 he left his license plate was laying on the ground. So 16 when the police officer drove up, he smiled, he said I 17 love these cases. 18 MR. WOOD: Dumb criminals. 19 MR. McKENZIE: And while he was standing 20 there, he found out who it was, just like that. It 21 worked out well, but not for that guy. Anyway, and then 22 we lost about 80 foot of fence in the rain right behind 23 Mooney's facility out of Peterson Farm Road. If you go 24 home that way you'll see it back over there. And we're 25 over there now putting it up, that's what we're doing 36 1 this morning. 2 COMMISSIONER MOSER: On that, if it's flood 3 probably it could be designed to kick up. So you don't 4 lose the fence. 5 MR. McKENZIE: Well, that's true. But that 6 was probably a 20, 25 year event that we had. 7 COMMISSIONER MOSER: Well, no it really 8 wasn't. If -- well, whatever it was, you can still -- a 9 lot of people do those, where you don't tear the fence 10 and they just lift up, so you might look at that. 11 MR. McKENZIE: We're temporarily putting it 12 back up today, so we can just keep the deer out. 13 COMMISSIONER MOSER: Sure. Maybe a long 14 term. 15 MR. McKENZIE: Yes, Sir. That was the two 16 fence issues that we had. And we had a good meeting 17 Tuesday with a gentleman I met at the conference that I 18 went to in Houston a couple weeks ago about the fabric 19 shades over the parking lots. Kirk and I met this 20 gentleman last Tuesday. And that's a national company. 21 And here's their brochure. The guys do amazing work, 22 they just did it at some of the dealerships in San 23 Antonio. I stopped at the Mercedes dealership and the 24 ones they put up there and it's beautiful. So he's 25 going to get us a price to put on the secured parking 37 1 lot, and Kirk came up with a good idea. Maybe we can 2 stage that and we can do it in phases and it won't cost 3 us so much, and we can charge more for the middle and 4 we'll get more interest if we start putting covers on 5 these. 6 MR. GRIFFIN: You know we built the parking 7 Lot 4 years ago. This system that is used here, they 8 have a -- we've got a single row, a double row in the 9 middle and then a single row to the east. This system 10 that they have he said he could cover all of our slots 11 for a hundred and -- 12 MR. McKENZIE: A hundred and 29. 13 MR. GRIFFIN: -- 29 thousand dollars. So 14 it's not a great investment. However, if we're trying 15 to make it to you know where it's not costing us 16 anything. A thought -- and the thought that Bruce and I 17 kind of talked about is to cover that center section, 18 there's not a big cost for bringing him in and not doing 19 a big job, versus coming in and splitting the job, cover 20 that center section, offer them to our current renters 21 at a little bit of an increased price to get our monies 22 back. I have that feeling that if -- if it was there 23 somebody would say well I'll put mine there if it's 24 covered. 25 COMMISSIONER MOSER: Have you talked to the 38 1 people that have their cars and see if they're willing 2 to pay more? 3 MR. McKENZIE: We haven't. But Joe 4 Kennedy's got a waiting list for his covered parking lot 5 over here. But no I haven't specifically -- 6 COMMISSIONER MOSER: Call some of them and 7 ask them if they're interested. 8 MR. McKENZIE: It's an idea. 9 MR. GRIFFIN: So we could probably split the 10 cost and get some revenue with it. And if it's a great 11 deal cover the other two rows. So anyway we're looking 12 at a couple options. 13 MR. KING: What's the life on that stuff? 14 MR. McKENZIE: 15 years is what he said. 15 That's the top end. But even if it's 12 -- 16 MR. GRIFFIN: The return on our investment 17 would probably happen within about three to five, and if 18 the shade lasts for 15 years all you're changing out in 19 15 years is the fabric itself. It's actually a product 20 that's made in South Africa that this guy they've been 21 -- this company is an American company, but the owner is 22 South African, and he started doing this stuff in South 23 Africa about 30 years ago. So it's got a pretty long 24 track record. They do a lot of the car dealerships. 25 They just finished at San -- 39 1 MR. McKENZIE: Angelo. 2 MR. GRIFFIN: -- Angelo and Abilene. They 3 covered almost about a thousand parking places at the 4 Abilene airport. So anyway, neat system, pretty slick. 5 The metal is all fabric coated so it's got a long 6 lifetime. So really the only maintenance is keeping up 7 with the fabric every 15 years. So pretty good deal. 8 MAYOR WHITE: There's a company called 9 Clearspan. Have you checked into them? 10 MR. GRIFFIN: No. Bruce just met this guy 11 at a convention. 12 MR. KING: And probably need to find out all 13 those different companies. 14 MAYOR WHITE: They're very reputable. And 15 very reasonable. I don't know about the aesthetics. 16 MR. KING: Yeah. I mean it was something 17 they can offer. I think Kirk's got a great idea. And 18 you can put it in the first part of it. And the first 19 hailstorm comes out and beats the crap out of other 20 cars, they'll be wanting to put underneath it. 21 COMMISSIONER MOSER: Somebody's needs to run 22 some numbers on it, and see what it's going to be. 23 MR. GRIFFIN: We started that, and Bruce 24 kind of wanted to -- 25 MR. KING: How many spots do we have out 40 1 there? 2 MR. McKENZIE: 48. We have 17 leased. 3 MR. KING: 17 leased. 4 MR. WOOD: That's a good question about the 5 hail. 6 MR. McKENZIE: Oh, we asked him about it. 7 MR. GRIFFIN: And it's warranted against 8 hail damage and what not. 9 MR. McKENZIE: Steve, we've had a couple 10 tenants over there that have come in on a month by 11 month. So there paying us 50 dollars a month. And so 12 that's six hundred bucks a year. They say can we stay 13 here for a few months, sure, and they pay us and it 14 works. And that's all I have for the update. 15 MR. WOOD: Before you get through, just as 16 general interest, you want to tell them about the 17 helicopters? 18 MR. McKENZIE: The black hawks that were in 19 here. 20 MR. WOOD: I thought it was interesting. 21 MR. McKENZIE: Probably had what, 12, 22 something like that. They were going from El Paso to 23 Corpus Christi to board a ship or ships, and that's all 24 the pilots would say, talk about or anything. 25 MR. WOOD: Going somewhere. 41 1 MR. McKENZIE: They were going somewhere. 2 And one of them actually broke down here and was here 3 for a day and a night. But Joe Kennedy, every time they 4 landed he brought them lunch, all these pilots. He fed 5 everybody at his own expense. So they were some happy 6 guys. 7 MR. KENNEDY: Well, it was a gratitude. We 8 oughta appreciate what those guys do. 9 MR. WOOD: Did they buy any gas? 10 MR. McKENZIE: Yes, they bought fuel. 11 That's why they stopped here. They go from El Paso to 12 Corpus. That was a Chinook that came in with the parts. 13 One mechanic in that Chinook came in with a part. 14 MR. WOOD: We have all kind of things happen 15 at this airport. 16 MR. McKENZIE: Oh, it's every week. 17 MR. KING: Anybody have anything else? 18 MR. McKENZIE: I'm good. 19 MR. KING: I was going to point out, you 20 know, we've had a call in the last couple -- in the last 21 year or so for people wanting the mechanic shop to get a 22 turbine mechanic. I understand they've hired a turbine 23 mechanic. 24 MR. McKENZIE: It's my understanding. 25 MR. KING: The guys in San Antonio I was 42 1 talking to last week say he is a really good mechanic. 2 And like he's top line. He came from Cutter Aviation, 3 and he was one of their lead mechanics. And I talked to 4 some guys down at -- Alvin at Navajo Accessories and a 5 couple other guys and they said he was a top -- they 6 were surprised he left Cutter. I think he lives outside 7 of town. 8 MR. KENNEDY: Well, he's got his place for 9 sale and he's trying to buy out here. 10 MR. KING: Yeah. He wants to get up here so 11 I think we're very fortunate. Well he's working over at 12 Dugosh now. But he came from Cutter Aviation, one of 13 the big shops in San Antonio. And from what I 14 understand just talking to people I've talked to know 15 that he is a top notch mechanic. He can work on 16 Citations, King Airs. He's a real authority on King 17 Airs and stuff, so that'll help us out a lot. Somebody 18 we've been looking for. And I think it's going to 19 really -- 20 MR. KENNEDY: You're the one that brought on 21 Chris Reeves. 22 MR. KING: I know. I didn't bring this guy, 23 but I do hear he is a good guy and I hear they're really 24 sad to have him leave. So hopefully we're going to have 25 that problem fixed that we had in the past that having a 43 1 lot of turbine aircraft in this airport, Mayor, we 2 didn't have anybody to work on them. And didn't even 3 work on the based customers or anything, we didn't have 4 anybody to work on them. So this will be good. 5 MAYOR WHITE: Is there a way to put that out 6 for people to know? 7 MR. GRIFFIN: It'll get out. 8 MR. McKENZIE: It'll get out. 9 MR. KING: I think so. That's a good point. 10 MR. KENNEDY: Rob's been doing some more 11 advertising, and fliers and stuff, and advertising we 12 can do it. And the more the word gets out and people 13 know names, like Steve said, people. 14 MR. KING: Yeah. I didn't even know who he 15 was and somebody down in San Antonio brought up that 16 he'd moved up here and very fortunate to have him. So 17 that's really good for the airport. 18 MR. WOOD: I don't know if you were here 19 when he said it, what Bruce said, but I think it's great 20 that you fed those guys. 21 MR. KING: Thanks very much, Joey, for that. 22 MR. KENNEDY: That's kind of a tradition 23 when they come through once a year. 24 MR. KING: I really appreciate that. 25 MR. KENNEDY: Try to take care of our 44 1 military. 2 MR. KING: All right. Anything else? All 3 right, motion to adjourn, from you. 4 MR. GRIFFIN: So move. 5 MR. WOOD: Second. 6 MR. KING: All in favor, three zero. 7 * * * * * * 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 45 1 STATE OF TEXAS * 2 COUNTY OF KERR * 3 I, DEBRA ELLEN GIFFORD, the Official 4 Certified Shorthand Reporter in and for the Kerr County 5 Commissioners' Court, do hereby certify that the above 6 and foregoing pages contain and comprise a true and 7 correct transcription of the proceedings had in the 8 above-entitled Regular Airport Meeting. 9 Dated this the 28th day of June, A.D. 2016. 10 11 /s/DEBRA ELLEN GIFFORD Certified Shorthand Reporter 12 No. 953 Expiration Date 12/31/2016 13 * * * * * * 14 15 16 17 18 19 20 21 22 23 24 25