1 2 3 4 KERRVILLE-KERR COUNTY JOINT AIRPORT BOARD 5 Regular Meeting 6 Monday, October 17, 2011 7 8:30 a.m. 8 Airport Terminal Conference Room 9 1877 Airport Loop Road 10 Kerrville, Texas 11 12 MEMBERS PRESENT: MEMBERS ABSENT: Stephen King, President 13 Tom Moser, Vice-President Mark Cowden 14 Corey Walters Ed Livermore 15 16 AIRPORT BOARD STAFF PRESENT: Bruce McKenzie, Airport Manager 17 Laurie DeJohn-Ermey, Executive Assistant 18 COUNTY STAFF PRESENT: 19 Guy Overby, Commissioner Pct. 2 Jonathan Letz, Commissioner Pct. 3 20 Jeannie Hargis, Auditor 21 CITY STAFF PRESENT: 22 Mike Erwin, Finance Director 23 VISITORS: 24 25 2 1 I N D E X 2 PAGE 3 CALLED TO ORDER 4 1. VISITORS FORUM 3 5 2. DISCUSSION AND POSSIBLE ACTION: 2A Monthly Financials 5 6 2B F.Y. 2012 Budget 15 7 2C Recommendation of Airport Board members to serve 8 on Planning Committee 56 9 2D Propose dates for Planning Committee to meet 59 10 2E Wildlife Art Exhibit 72 11 2F Property/building lease terms 77 12 2G Discuss salaries and benefits differences in 2012 budget recommended by the Airport Board and that 13 which has been "approved" by the City and County (Executive session) 77 14 3. INFORMATION AND DISCUSSION: 15 3A Concrete rip-rap adjacent Airport Loop 78 16 3B Stieren hangar 79 17 3C Master Plan final draft 81 18 4. EXECUTIVE SESSION 82 19 5. ADJOURNMENT 83 20 21 22 23 24 25 3 1 On Monday, October 17, 2011, at 8:30 a.m., a regular 2 meeting of the Kerrville-Kerr County Joint Airport Board was 3 held in the Airport Terminal Conference Room, Louis Schreiner 4 Field, Kerrville, Texas, and the following proceedings were 5 had in open session: 6 P R O C E E D I N G S 7 MR. KING: All right, I'll call this meeting of the 8 Kerrville/Kerr County Airport Board, October 17th at 8:30, 9 meeting to order. Visitors' forum. At this time, any person 10 with business not scheduled on the agenda may speak to the 11 Airport Board. No deliberation or action may be taken on 12 these items because the Open Meetings Act requires an item to 13 be posted on the agenda 72 hours before the meeting. 14 Visitors are asked to limit their presentations to three 15 minutes. Anybody have anything? I was going to -- I had one 16 little thing I was going to say. I attended the N.B.A.A. 17 National Business Aviation conference last week, and that was 18 in Las Vegas, and it was really a neat thing. I think we 19 should probably, next year, if -- if a couple members can 20 afford to pay their own way, go out there. There were 4,000 21 vendors. It's the largest business trade show for aviation 22 in the world. 23 MR. MOSER: Wow. 24 MR. KING: And just a great -- if it's in aviation, 25 if it's being built in aviation or if it's being sold in 4 1 aviation, it's there. 2 MR. MOSER: It was in Vegas? 3 MR. KING: In Vegas. A huge thing; two and a half, 4 three days -- you can barely get through it in three days. 5 MR. MOSER: Good god. 6 MR. KING: 4,000 vendors. And I met with a lot of 7 airports; there was about 20 or 30 airports there, actually. 8 Brazoria County, I met with those guys, talked to them for a 9 pretty good period, and just airports from all over the 10 United States. There was three different airports from Texas 11 that had displays there, just selling their airport and 12 selling the -- you know, the benefits of the airport. Some 13 of them kind of team up and go -- like, three airports will 14 do, like, the South Texas area, something like that. 15 Brazoria does their own, because they've got a pretty good 16 industry over there, but it was a neat deal. Saw a lot of 17 really, really neat stuff, and talked to a lot of people 18 about different airports and about different businesses and 19 stuff. So, it's -- I mean, I think it would be a good option 20 if we could look -- if we could get some guys, you know, to 21 make -- I saw the Lubbock Aero guys were there. They had 22 nine board members, not from the airport, but from their 23 company board were there, and they were -- they were there 24 two days. I talked to them. It was pretty good. So, that's 25 another option I think we have as far as development, looking 5 1 at maybe, you know, going out there and kind of meeting with 2 a few. 'Cause every company that would ever move here, I 3 promise you, was there. It was unbelievable. I hadn't been 4 there in about five years. It was just amazing. 5 MR. MOSER: How many people were there? 6 MR. KING: 30,000. 7 MR. MOSER: 30,000? 8 MR. KING: 30,000. 9 MR. MOSER: Good god. 10 MR. KING: I mean, it's anywhere from Boeing, 11 Airbus, down to, like, interior shops, paint shops. 12 MR. MOSER: Wow. 13 MR. KING: Amazing. They bring all their big iron 14 there. All right. Anyway, that's just a thought. 15 MR. MOSER: That's a good idea. Is it the same 16 time every year? 17 MR. KING: Yeah, pretty much same time every year. 18 MR. MOSER: Okay. 19 MR. LIVERMORE: A lot of times it's in New Orleans. 20 MR. KING: Item 2, discussion and possible action. 21 Item 2A, monthly financials. Jeannie? 22 MS. HARGIS: This is the end of your year, so on -- 23 on the balance sheet, we had 284,402.29. You did have 24 $19,000 worth of payables you can see there, so your real 25 cash balance at the end of the year is going to be 6 1 $264,700.30. 2 MR. KING: Where's that? 3 MS. HARGIS: Well, that -- I just subtracted it for 4 you, so you -- 5 MR. COWDEN: It's not on there. 6 MS. HARGIS: The accounts payable line is 7 19,701.99. 8 MR. KING: Okay. 9 MS. HARGIS: I had done that -- 10 MR. LIVERMORE: Is -- this is my first time to 11 really read one of these, and I'm going to get together with 12 Jeannie. I mean, this is the first cycle. But we are 13 showing 90,000 under budget; is that right? In revenues? 14 MS. HARGIS: Yes. 15 MR. LIVERMORE: Okay. 16 MS. HARGIS: And total amount of revenue collected 17 was 442,337.39. The next page is just salaries only. 18 MR. MOSER: Say the page, Jeannie, so we'll know. 19 MS. HARGIS: Okay. Page 2. 20 MR. LIVERMORE: Well. There's a Page 1 and a Page 21 2. 22 MS. HARGIS: Right. Page 1 -- 23 MR. LIVERMORE: The bottom number? 24 MS. HARGIS: Yes, the bottom number. We try to 25 number them on the bottom. 7 1 MR. KING: Where was the revenue figure? 2 MS. HARGIS: The revenue figure is on Page 2. 3 It'll be the fourth column. 4 MR. KING: Right. 5 MS. HARGIS: Bottom. Page 3 is just the salaries, 6 and so we ended up with 135,265.38. That includes all 7 benefits. The second -- the fourth page is the different 8 categories; personnel, supplies, maintenance, professional. 9 Those are each added separately as well as on Page 5, and 10 then on Page 6 is the utilities for the airport itself -- I 11 mean for the terminal here, and then the total expenditures, 12 again, the fourth column, 442,337.39. So, we basically 13 zeroed out. 14 MR. MOSER: Mm-hmm, okay. 15 MR. KING: Where are you at? Oh, you're on this 16 set. 17 MR. MOSER: Mm-hmm. 18 MS. HARGIS: And then on Page 7, this is our 19 capital account. Total amount in that fund, 163,987.77. We 20 do have some reimbursement on that one of 20,000. That will 21 be coming in -- actually, 9,000 in payables that's not shown 22 on here, and then we have the 20,000. 23 MR. MOSER: Now, who is that coming from? 24 MS. HARGIS: The paving company. 25 MR. MOSER: Okay, got you. Okay, I remember that. 8 1 MS. HARGIS: Remember, we had to pay it to TexDOT 2 first. 3 MR. MOSER: Mm-hmm. 4 MS. HARGIS: Okay. And Page 8 -- Ed, this is a 5 little confusing. We don't have much revenue in the capital 6 account; it's basically what cash is remaining. The revenue 7 that came in was 56,072.30. That was from RAMP grants. The 8 City and the County both give $25,000 a year towards that. 9 Page 10, total amount of the projects this year, 397,438.60. 10 And then Page 11 shows a negative, because again, you didn't 11 have that much revenue coming in. The last page -- well, 12 it's not the last page. Page 12 is the airport capital 13 projects, and the first one, which is your re -- the 12/30 14 taxiway relocation, shows cash balance to-date of 111,859.29. 15 That -- those funds can be split between the City and the 16 County once that project is finished, but as you know, we 17 just used $20,000 of it, so -- for the paving of the road. 18 So, this project is not finished until it's finaled out; 19 TexDOT finals it out. I think that, you know, as long as 20 there's money moving around, I don't want to -- as much as 21 I'd like the cash back. But the City did ask for that money 22 back. 23 MR. MOSER: We -- Bruce, do we have anything open 24 on that? 25 MR. McKENZIE: Yes, sir. On the 24th, we're going 9 1 to pour about 440 yards of concrete right down here, so we've 2 got about a $70,000 issue that still hasn't been settled yet. 3 MR. MOSER: Okay, got you. 4 MR. McKENZIE: That will take about three weeks to 5 finish that project. 6 MR. MOSER: Okay. 7 MR. McKENZIE: But that should be the last punch 8 list items. 9 MR. WALTERS: On that paving, you were talking 10 about that 20,000. I thought TexDOT said they were going to 11 pay for that. 12 MS. HARGIS: They are going to reimburse us. 13 MR. McKENZIE: Reimburse us. That's all we're 14 waiting for, is the reimbursement. 15 MR. WALTERS: Okay. 16 MR. MOSER: So, 70, 50, so we ought to have about 17 $60,000 or $70,000. 18 MR. McKENZIE: Yes, sir. 19 MR. MOSER: When it all -- 20 MR. McKENZIE: All washes out. 21 MR. MOSER: Okay. 22 MS. HARGIS: Okay. The next project is -- the 23 water line project is finished; everyone has the funds back 24 on that, so that one will come off for this next year. The 25 RAMP grant for 2011, we spent all but 2,033.91. The master 10 1 plan was paid this year, and we'll probably take that off for 2 next year, and then we show that there is 50,000 that still 3 belongs to the City for 2012 and 2013 for their RAMP grant. 4 MR. MOSER: Mm-hmm. 5 MS. HARGIS: Okay. That leaves you a balance of 6 163,987 which goes back to your balance sheet. The next page 7 is -- for your information, is the totals that the TexDOT 8 shows that we have on the books for the projects. 9 MR. MOSER: Mm-hmm. 10 MS. HARGIS: And this is off of a ledger sheet that 11 they give us, so that's pretty much it. I think we came in 12 really well. Revenue-wise, we don't anticipate coming in at 13 100 percent, because we -- if you don't need the money, we're 14 not going to give you an extra 100,000, just like we don't 15 really have it to give to you. So, if we did, I'm not sure 16 we'd give it to you then. But -- (Laughter.) 17 MR. MOSER: Let me make an observation. Since it's 18 -- this is through September, right? 19 MS. HARGIS: Mm-hmm. 20 MR. MOSER: So it's through the end of the year. 21 We ran -- went out of the year -- and this is to Bruce -- 22 went out of the year at 17 percent under budget, which is 23 fantastic. 16.7 percent under budget. We were Airport of 24 the Year, finished $12 million worth of construction that 25 nobody had an issue with on the board. I never -- did 11 1 anybody -- any board member ever have an issue? Get called 2 at night or anything else? I think the accommodations to the 3 customers was there. We got the master plan under way, 4 strategic plan being implemented. So, Bruce, I want to say 5 thank you for a job extremely well done. 6 MR. McKENZIE: Thank you, sir. 7 MR. KING: Thank you, Bruce. 8 MR. LIVERMORE: Absolutely. 9 MR. WALTERS: I agree. 10 MR. McKENZIE: Thank you. 11 MS. HARGIS: Any more questions? We will be tying 12 this up now, sending it off to the auditors, 'cause we are 13 through. So, that's the next goal. And so next month, 14 everything will -- will start all over again. We may not 15 have your budget on next year next time, but I probably will, 16 because I -- I have all the payables in, and we have to copy 17 over budgets and stuff like that. But it's -- there's quite 18 a bit to closing out at the year end, but I think we came out 19 really well. 20 MR. MOSER: Good job, Jeannie. Thank you. 21 MR. KING: Thank you, Jeannie. Motion to approve? 22 MR. COWDEN: I move. 23 MR. WALTERS: Second. 24 MR. KING: Objection? None being heard, all in 25 favor? 12 1 (The motion carried by unanimous vote, 5-0.) 2 MR. KING: Unanimous. 3 MR. ERWIN: Steve? 4 MR. KING: Sure, Mike. Sorry. 5 MR. ERWIN: On Page 7, it says that we have $48,220 6 instead of 50,000. 7 MR. KING: Yeah. Yeah. 8 MR. ERWIN: And we would just like to see that 9 corrected to reflect the 50 that we have available. 10 MR. KING: Right. Right. 11 MR. ERWIN: And -- 12 MR. KING: Okay. 13 MR. ERWIN: And then also next year, with the RAMP 14 grant, that the City's money be contributed at the same pace 15 that the County's money is contributed at. 16 MR. KING: Okay. 17 MR. ERWIN: So instead of, you know -- 18 MR. KING: Spending yours first. 19 MR. COWDEN: Make both -- 20 MR. ERWIN: Both at equal amounts on a monthly 21 basis. 22 MR. KING: That's fine. Yeah, that sounds good. 23 Is that okay with you guys on the county? 24 MS. HARGIS: We'll probably just put it in there as 25 a whole, because it's -- it's too difficult to put in there 13 1 on a monthly basis. 2 MR. KING: Okay, that's good too. All right. All 3 right. 4 MR. WALTERS: I'm just curious. What is the reason 5 why the difference of the amount that he's referencing? 6 MS. HARGIS: There was a shortfall in the RAMP 7 grant the prior year, and so that reduced our amount and his 8 amount. But I'll have to go back and research it, but as you 9 recall, we overspent for the master plan, and so the -- and 10 for the RAMP grant, not this year, but the year before. And 11 so when we went to adjust the books, that's what we did. We 12 took some from ours and some from theirs. 13 MR. KING: Yeah, okay. 14 MS. HARGIS: So I think it ended up being, like, 15 you know, $1,000, or about 1,500. 16 MR. WALTERS: 1,780. 17 MS. HARGIS: Between the two of us. 18 MR. KING: Okay. 19 MS. HARGIS: But I will check and make sure that's 20 correct. 21 COMMISSIONER LETZ: Jeannie, on Page 6, -- 22 MS. HARGIS: Mm-hmm. 23 COMMISSIONER LETZ: -- the bottom, come up to where 24 it says revenue over/under expenditures. Why does it say, 25 under year-to-date, zero? 14 1 MS. HARGIS: Because we zeroed out. We didn't -- 2 we had as much revenue as we had expenses. 3 COMMISSIONER LETZ: Okay. So, you take out -- 4 okay. 5 MS. HARGIS: So it zeroed out, which is what -- 6 COMMISSIONER LETZ: What was the -- so the total -- 7 the deficit. What's the total deficit, the deficit being the 8 contribution from the City and the County? I mean, what was 9 the -- we contributed money. 10 MS. HARGIS: We contributed -- 11 COMMISSIONER LETZ: So -- 228. 12 MS. HARGIS: 228. 13 COMMISSIONER LETZ: So that's the difference -- 14 MR. COWDEN: The difference -- 15 COMMISSIONER LETZ: -- the difference in what the 16 County puts in, okay. 17 MS. HARGIS: So, that's -- that was the additional 18 funds that were needed, which is a whole lot less than it's 19 been in prior years. 20 COMMISSIONER LETZ: Okay. 21 MS. HARGIS: It's been as high as 500,000, and it's 22 been coming down pretty rapidly since I've been here, in the 23 four years I've been here. So, I think that's a good amount. 24 The leases are up. 25 MR. KING: All right. Hope to see that at zero 15 1 someday. 2 MR. MOSER: Heading that way. 3 MR. KING: That is one of our goals, isn't it? 4 MR. MOSER: Yep. 5 MR. KING: Okay, just checking. 6 MR. MOSER: In our strategic plan. 7 MR. KING: Okay, good. Good. I thought it was. 8 Item 2B, fiscal year -- anybody else have anything? 9 MR. McKENZIE: We need to approve the budget -- 10 MR. MOSER: We did. 11 MR. COWDEN: We did. We had a motion. 12 MR. KING: Johnny on the spot there. 13 MR. MOSER: The financials. 14 MR. KING: All right, we've approved that. Item 15 2B, the FY 2012 budget. This -- okay. Anybody have any 16 comments on this -- on this item? 17 MR. MOSER: There's -- 18 MR. KING: I'm always the guy who gets to launch -- 19 who launches the missile here. 20 MR. MOSER: I've got a comment. 21 MR. KING: Wonder why people yell at me all the 22 time. 23 MR. MOSER: I've got a comment. Where are we in 24 the budget process? We submitted a budget. 25 MR. KING: Exactly. 16 1 MR. MOSER: We submitted a budget. It was approved 2 by the County; it wasn't approved by the City. The City 3 marked something up, sent it back to the County. Okay? The 4 City marked something up, sent it back to the County. The 5 City and the County voted on something that the City created. 6 I don't know how they created it. Couldn't see the basis of 7 estimate for it. So, this is what we have, so it's back here 8 for what action? 9 MR. KING: I don't know. 10 COMMISSIONER LETZ: Let me -- correction on that 11 comment. 12 MR. KING: I think Jonathan wants to clarify 13 something. 14 COMMISSIONER LETZ: The County -- the interlocal 15 agreement called only for a lump sum amount, which was 16 110,000 funding from each entity. That's all the County did. 17 The County has never taken any action on what the City has 18 done on changing line items. 19 MR. MOSER: Okay. Where's -- where'd the 110,000 20 come from? 21 COMMISSIONER LETZ: That was in the interlocal 22 agreement. 23 MR. KING: They agreed to fund the airport. 24 MR. MOSER: But that was post the submittal of our 25 budget. 17 1 COMMISSIONER LETZ: Right. Right. 2 MR. MOSER: So wait; don't get things out of 3 sequence there, Commissioner. 4 COMMISSIONER LETZ: Yeah. 5 MR. MOSER: Okay. The 110,000 was -- it was 175. 6 COMMISSIONER LETZ: Right. Correct. 7 MR. MOSER: And both parties agreed to that. 8 COMMISSIONER LETZ: Correct. 9 MR. MOSER: Okay. So now, all of a sudden, we got 10 110. We got some budget which is reflected here. So, I'm 11 not fussing; I'm just trying to understand the process. 12 COMMISSIONER LETZ: Okay. Well, the difference 13 that I'm clarifying is that the County never approved a line 14 item budget for the airport. We've approved -- 15 MR. MOSER: Okay. 16 COMMISSIONER LETZ: In our minds, there is no line 17 item budget. 18 MR. MOSER: Sure. So, did you approve the budget 19 that we submitted? 20 COMMISSIONER LETZ: We -- 21 MR. KING: I don't think you voted. 22 COMMISSIONER LETZ: I'm not sure we voted on it. 23 MR. KING: I don't think they voted on it. 24 MR. MOSER: So, there was no action taken on the 25 budget we submitted? 18 1 COMMISSIONER LETZ: Correct. 2 MR. MOSER: So it went to the City, and the City 3 says, "Oops, we don't like this," so they marked it up and 4 sent it back to you guys with a $110,000 contribution on it. 5 COMMISSIONER LETZ: You -- I wouldn't -- it was 6 more complicated than that. The 110,000 was a number that 7 came up during the City and County trying to come up with a 8 new interlocal agreement. 9 MR. KING: Mm-hmm. 10 COMMISSIONER LETZ: That's where it came from. 11 The -- 12 MR. MOSER: You know, it came from what the City 13 marked up. 14 COMMISSIONER LETZ: Right, came up from -- that's 15 where it -- and the County was aware of some of their -- you 16 know, we discussed some of their items, but we never approved 17 a line item. We approved an amount that we agreed to, with 18 our -- 19 MR. MOSER: My only point I want to make is the 20 Airport Board never -- was never part of those budget 21 mark-ups. 22 COMMISSIONER LETZ: That's correct. 23 MR. MOSER: That's the point I want to make, okay? 24 MR. KING: And I want to make another point. This 25 is so confusing in that we submitted a budget with $175,000 19 1 in it as a contribution from the City and the County, at -- 2 we were led to believe that was the number. I was led to 3 believe that by Mike Erwin in the back of the room here. I 4 have it in the minutes. I've looked at the minutes of the 5 meeting, and in the minutes of the meeting, the City stated 6 that we came up with a budget of $175,000 contribution. We 7 had line items for $175,000 contribution. We proceeded in 8 the meeting -- and I have looked at the minutes -- to cut 9 that budget by approximately 45,000 originally. We cut this 10 budget by 45,000 originally, and in that meeting the City's 11 representative expressed to us that that would not be a great 12 idea to cut it by -- if we cut it, I think the actual words 13 in the minutes are, if you cut that budget -- if you -- if 14 you cut that number, you'll never -- you may never see that 15 money again. Isn't that what you told us, Mike? 16 MR. ERWIN: Yeah, I went back and read those 17 minutes also, and also gave them to both the mayor and 18 Council member Conklin so they could read those. And what I 19 said was you need to write a realistic budget. And I did say 20 that currently, we have 175,000 as part of the interlocal 21 agreement. 22 MR. KING: Mm-hmm. 23 MR. ERWIN: But the Council changed that. 24 MR. KING: But, I mean, I'm just saying the budget 25 we presented to you was based on the number that was given to 20 1 us at that meeting. 2 MR. ERWIN: Yes, sir. 3 MR. KING: $175,000. So, I just want to make it 4 clear for the record that the $175,000 that we put in that 5 budget as a contribution did not just come out of thin air. 6 That was a number that had been talked about by the City to 7 us. And we -- you'll also remember at that meeting that when 8 this meeting was over, I presented that budget to you, Mike, 9 and I asked you to take that budget back to the mayor and the 10 City Manager. And I believe my exact words were, if there's 11 a problem or a question about this budget, would you contact 12 myself or Bruce McKenzie. To this date, I've not had a 13 conversation with Todd, the City Manager, or I've not had a 14 conversation with the mayor about that budget or any budget. 15 The only conversations I think we've had on a budget with 16 anybody was that Ed Livermore and Tom Moser met with Stacie 17 Keeble and -- 18 MR. LIVERMORE: City Manager. 19 MR. KING: -- the City Manager and went over the 20 budget. 21 COMMISSIONER OVERBY: Which budget did y'all go 22 over, the 75 or the 110? 23 MR. MOSER: We went over the one that -- yeah, the 24 175. And we went over the 175 and the 110 and compared the 25 two, and discussed a lot of different -- a lot of line items. 21 1 We didn't walk away with saying, "Okay, this is it." All we 2 did is identify -- 3 MR. KING: Right. Right. 4 COMMISSIONER LETZ: Were you in that meeting, Mike? 5 MR. ERWIN: No, I wasn't in that meeting, but I do 6 have a question. When you and the manager presented -- the 7 Airport Manager presented this to Council, -- 8 MR. KING: Right. 9 MR. ERWIN: -- did you present the budget to 10 Council and have a discussion with them at that point? 11 MR. KING: Oh, we did. No, we presented that 12 budget, because I was under the understanding that you guys 13 had looked at that budget. But then I was told that -- I was 14 told approximately seven minutes before the meeting that 15 Todd -- that the City Manager -- the City has never had any 16 discussions with the Council about a budget that they were 17 getting ready to talk about in an open meeting. That's what 18 Todd told me. Todd told me that. I said, "Have y'all had 19 conversations with the -- with the Council about this budget 20 and given them a recommendation?" And I was told by the City 21 Manager, "No, we did not give them a recommendation." So, I 22 was a little bit -- I was a little perplexed when we came 23 into the meeting, that I was talking to five Council members 24 who had not had any direction from the city staff about a 25 budget that they were getting ready to discuss. So, I would 22 1 assume they must have done it on their own, I guess. Maybe. 2 MR. MOSER: I've got one -- I want to comment on 3 one thing you said, Mike. It's kind of offensive. You said 4 we were to put together a realistic budget. That's what you 5 just said. 6 MR. ERWIN: Yes, sir. 7 MR. MOSER: That infers it was not realistic. I 8 find that offensive. 9 MR. ERWIN: It wasn't my intention to be offensive. 10 MR. MOSER: Well, it was offensive, because I think 11 this board and Bruce worked very hard going line item by line 12 item, cut a lot of things out of it, okay. And I think -- 13 and I've put together a lot of budgets in my life, and I 14 think it was realistic, so I take issue with what you said. 15 MR. KING: I'd also like to remind the City and the 16 County that I -- I specifically told both parties numerous 17 times that I would sit down with -- we would sit down with 18 anybody. In the Council meeting that I was ambushed by -- 19 ambushed by the mayor and the City Council on, with my -- 20 when I was presenting the budget, which I thought they had 21 had discussions with city staff about, I -- in the meeting, I 22 stopped the meeting -- I stopped my portion of the meeting 23 and said, "Why don't we have a budget workshop?" We already 24 had a -- in fact, we had a budget workshop three weeks 25 earlier. We had a budget workshop. It was a -- it was 23 1 attended by the County; attended by you, Mike. You were at 2 that budget workshop. And we worked through -- at that 3 budget meeting, we were working off of a number of 175, okay? 4 There was no number of 110 out there. So, you know, we -- if 5 you give us -- and I've told the Council and the County we 6 would cut this budget down to zero if you guys would -- if 7 you guys would give us reassurance that if we cut the budget 8 to zero, there is ample funding -- there's a funding 9 mechanism to get -- to keep the lights on out here and to 10 keep everything running out here. If we -- you know, we put 11 the budget at 100,000 and we go over that because of the 12 expenses, you know, there's some way to fund it. We -- we 13 mentioned that many, many times, to the Council and to the 14 Commissioners Court. As of yet, the only budget workshop -- 15 the budget workshop we had, the only one we've ever had, was 16 attended by you, and no other member of Council was in 17 attendance. No member of Council; no member -- the City 18 Manager wasn't here or anything. So, I guess you can see our 19 frustration is that -- 20 MR. MOSER: And -- and no feedback. 21 MR. KING: And no feedback. And no feedback. No 22 feedback at all. I mean, I guess our frustration is -- a 23 little bit is that after all of those efforts in trying to 24 get together with the City and the County to discuss a 25 budget, the City took it upon themselves to make us a budget, 24 1 and here's our budget. Now, I read the interlocal agreement. 2 I've read it several times. I've read it with an attorney, 3 and the interlocal agreement says that the Airport Board will 4 present a budget to the City and the County, and in a timely 5 manner -- some timing in there -- and that the City and the 6 County will approve that budget or disapprove that budget. 7 Is that right, Mike? Is that right, Jonathan? 8 COMMISSIONER LETZ: That's correct. 9 MR. KING: Have you read that? 10 COMMISSIONER LETZ: Yes. 11 MR. KING: That -- well, is there a mechanism in 12 there where it says if we do not like your budget, we have 13 Option A of sitting down and rewriting your budget and 14 putting in the numbers that we think you should live by? Is 15 that mechanism in there? 16 COMMISSIONER LETZ: No. 17 MR. KING: I mean, I've read it a couple times, and 18 I'm just trying to find out where that is in that -- that 19 says that. Anybody on this board, have y'all read that? 20 MR. MOSER: I've read it. 21 MR. KING: What does it say? Do you see Item B 22 there? 23 MR. MOSER: It says exactly that. Submitted and 24 approved. 25 MR. KING: I couldn't find -- A or B says submit it 25 1 and approve it or disapprove. There's a mechanism if you 2 disapprove it; you go back to the previous year's budget. 3 That's been in the interlocal agreement ever since I've been 4 on this on board. 5 MR. MOSER: It's still there. 6 MR. KING: So -- so, you know, we get a budget from 7 the City that is put together by the City, without any input. 8 Did you have any input in this budget, Ed? 9 MR. LIVERMORE: None. 10 MR. KING: Corey, did you have any input on this 11 budget? 12 MR. WALTERS: None. 13 MR. KING: Mark? Tom? 14 MR. COWDEN: No. 15 MR. MOSER: No. 16 MR. KING: I had no input. No one's picked up the 17 phone and called me. So, you know, we have a budget that has 18 been put together by the City. Did you have any input in 19 this budget, Jonathan? 20 COMMISSIONER LETZ: In the total number, yes, but 21 not the line items. 22 MR. KING: Not the line items. 23 COMMISSIONER LETZ: I've discussed it with them. I 24 was aware of what was in it, but I didn't make any 25 adjustments. 26 1 MR. KING: Okay. I don't have a problem with the 2 bottom line. The bottom number is not -- for me, I mean, 3 that's what it is. It is what it is. If you say your 4 contribution's going to be $5,000, we'll live with that. 5 We'll figure out a way to make it work. The 110,000 is not a 6 problem. What my concern is, is that -- that this budget is 7 not in line with the interlocal agreement that was approved 8 by the City and the County, so how can we vote on it? I 9 don't see how we can vote on this budget. It's not our 10 budget. If we do this, we're violating the -- I feel like 11 we're violating the interlocal agreement. 12 MR. MOSER: I think there's one other thing that's 13 very significant, and I think we could -- we could work to 14 that bottom -- bottom line number, and we'd probably make it 15 based on what we did this year. Probably make it. I don't 16 know that we could. But the question is, what do we do if we 17 don't? The other thing is, it's not only the bottom line; 18 it's every line in here. We can't do anything from line item 19 to line item, so somebody knows how to run this airport 20 better than we know how to. 21 MR. KING: I thinks there's a mechanism there 22 for -- Mike, is it 20 percent? 23 MR. MOSER: 20 percent. 24 MR. LIVERMORE: Either 20,000 or -- 25 MR. MOSER: So it's 5 percent. 27 1 MR. KING: 5 percent. 2 MR. MOSER: $20,000. 3 MR. KING: That we can move -- 4 MR. MOSER: That we can move line item to line 5 item. 6 MR. KING: Right. What is the mechanism if we 7 don't have enough money? 8 MR. MOSER: We got to go back. If you want to move 9 anything, you have to go back to the City and the County. 10 MR. LIVERMORE: If it rains next year and we have 11 to mow five times, not three times, and we're going to go 12 over that line item, that will exceed the $20,000. 13 MR. MOSER: That's right. 14 MR. LIVERMORE: We have to go to the City Council, 15 apparently, and beg them to be able to mow the grass. 16 MR. MOSER: Well, we have to get their approval. I 17 don't know if we have to beg them. 18 MR. KING: Say the AWAS blows up. Who maintains 19 that AWAS? 20 MR. McKENZIE: Vaisala does. 21 MR. KING: Who pays for that? 22 MR. McKENZIE: Half of it is paid with the RAMP 23 grant; we pay for the other half. 24 MR. KING: Say it gets struck with lightning. We 25 have to fix it. 28 1 MR. McKENZIE: It's very expensive. 2 MR. KING: Do we need -- I guess what we have to 3 do -- 4 MR. MOSER: Well, what it says is if there's an 5 emergency, you've got the authority just to do it. 6 MR. KING: Okay. 7 MR. MOSER: If you -- if there's an emergency, you 8 have -- the president has the authority to do it, and then to 9 notify the City and the County. 10 MR. KING: I guess -- I guess I'm just -- my 11 concern is not over -- they may have all these numbers in the 12 right place. They all may be in the right place. Y'all may 13 all agree with them, okay? My -- I guess my problem is -- is 14 that I don't see how -- I think the proper mechanism -- and 15 I've talked to Rob about it -- Rob Henneke about it. I think 16 the proper mechanism is for us to -- we're going to have to 17 re-present a budget to the City and the County. 18 MR. LIVERMORE: Mike, are you listening? 19 MR. ERWIN: No, sir, I was talking. 20 MR. KING: Don't you think the proper mechanism, 21 Mike -- I don't know; heck, why am I asking you? I'll ask 22 our board. Is the proper mechanism is to resubmit this 23 budget to the City and the County -- 24 MR. MOSER: Yes. 25 MR. KING: -- for approval? 29 1 MR. WALTERS: I think we need to resubmit a budget. 2 MR. KING: A budget -- 3 MR. WALTERS: A budget that the Airport Board feels 4 comfortable in submitting. Whether the City and the County 5 accept our budget is up to them. 6 MR. MOSER: Okay. 7 MR. LIVERMORE: That's right; I agree. 8 MR. MOSER: Okay. And it'll be -- it will be 9 like -- 10 MR. KING: Do you have a problem with that? 11 COMMISSIONER LETZ: I don't, no. But I do want to 12 make a comment as to a little bit of the process that -- I 13 think it needs to at least be on the record. During the 14 summer, when there was a lot of meetings between the City and 15 the County, trying to -- on the interlocal agreement, the 16 County repeatedly requested that the representative from the 17 City meet with the Airport Board on the budget, and the City 18 representatives refused. So, I want that on the record, 19 that, you know, the County was not comfortable with the 20 budget process. And in retrospect, you know, what we did 21 ultimately was to get an interlocal agreement through that 22 kept this board and this Airport Manager in place. 23 MR. KING: Right. 24 COMMISSIONER LETZ: And, you know, the other thing, 25 I think the -- I want to go back to the 175,000 originally. 30 1 The reason the County -- and the County may have voted on 2 that budget. I have to look back at the minutes. I'm not 3 sure if we did or did not approve the budget; I can't 4 remember. But the reason the County was so -- was very 5 comfortable with going with 175,000 is because that number 6 was very similar to the previous year. It was less than the 7 previous year, but basically the same way. 8 MR. MOSER: Correct. 9 COMMISSIONER LETZ: And the owners previously, and 10 in that prior year, required a certain amount of funds be 11 allocated for things like road maintenance, engineering, and 12 things like that. So, that budget was very much in line with 13 that, and we were very confident the Airport Board would not 14 go spend the money, as shown by expenditures last year. 15 Y'all spent a hundred and -- 16 MR. MOSER: $88,000. 17 COMMISSIONER LETZ: 188? 18 MR. MOSER: No, 88,000. 19 MR. KING: 88,000 less than what was budgeted. 20 COMMISSIONER LETZ: Well, but the contribution 21 originally was 393 -- almost 394,000. We ended up 22 contributing 228,000. So, whatever that difference is is the 23 reduction, so we're very comfortable with the Airport Board, 24 the fact that -- we said if you need this much, that was 25 there, and we were committed to spend that much. But we're 31 1 also very confident the Airport Board was going to spend what 2 was actually necessary, and that's why it came in so much 3 less. So, that's why we had no problem with the budget, 4 'cause if it's a little bit higher, if it wouldn't be spent, 5 'cause we knew the way y'all have been operating the airport, 6 just the history side of it. We also knew when we agreed to 7 the 110,000, we knew the actual number. We were -- we had 8 the benefit of being right towards the end of the budget 9 year. We knew that, you know, 110 times two is 220, which is 10 very close to the contribution this year. 11 MR. MOSER: Yeah. 12 COMMISSIONER LETZ: That's why we came to -- agreed 13 to those total numbers. Mike made a comment, and it is 14 accurate that he and Jeannie worked on that line item budget 15 some together. I mean, 'cause, obviously, the County had the 16 records, and they did talk. 17 MR. MOSER: But for the record, Mike and Jeannie 18 have never run an airport. 19 COMMISSIONER LETZ: That's correct. 20 MR. MOSER: So, they developed the budget. I just 21 want that to be on the record, is that's where the budget -- 22 how the budget got developed. 23 COMMISSIONER LETZ: Right. And the County 24 intentionally did not approve that line item budget. The 25 City did, as I understand. 32 1 MR. MOSER: Yeah. 2 COMMISSIONER LETZ: The County did not. The County 3 very clearly, in the motion that I made, said we approved the 4 interlocal agreement that had a gross amount for a budget of 5 110,000, but did not approve the line item, because we don't 6 think that -- we think it needs to have input from the 7 airport. Y'all -- it's your budget. 8 MR. KING: And I don't have a problem with Mike and 9 Jeannie working on a budget. Y'all can work on a budget till 10 your fingers fall off out there if you want to, if that is 11 going to enable you to come to a bottom line. And that's 12 what I think you're doing. I mean, you got to put little 13 numbers in the slots so when they all add up, they come down 14 to a number that you -- you hopefully -- you know, that's got 15 to be your 110. Like I said, I don't have a problem with 16 110. I don't have a problem with 100, 90, 80; it doesn't 17 matter. Whatever you guys -- it's your money. So, I've 18 always told you -- I've bet I've told you at 100 meetings, or 19 100 times, it's your money, not our money. You give it to 20 us -- you fund it to us. We will spend it in the -- in the 21 best way we think to run this airport. So, if you guys need 22 to get together and you have a -- have your own little budget 23 workshop, come up with a budget, come up with your line items 24 and everything that comes up to 110,000, that's fine, okay? 25 But -- but what I don't understand is why this was not 33 1 presented to us prior to the City Council voting on it. I 2 mean, why has there not been a workshop? Why have y'all not 3 come back to -- I mean, why have y'all not come back to this 4 Airport Board when you got to that 110 number? When you got 5 to that 110 number, why didn't someone pick up the phone and 6 go, "Bruce, we've come to a number. We think this is the 7 number." Mike, you talk with Todd all the time. You guys 8 knew at some point 110 was going to be the number you took to 9 the County, 'cause y'all took that number to the County. Who 10 came up with the 110 number? Did you come up with it, 11 Jonathan? 12 COMMISSIONER LETZ: No. 13 MR. KING: When's the first time you heard the 110 14 number? 15 COMMISSIONER LETZ: It was from Todd Parton. 16 MR. KING: When? In a meeting? In an e-mail? 17 COMMISSIONER LETZ: It was in a meeting or over the 18 phone. 19 MR. KING: Okay. Well, when that number -- when 20 Todd came up with that number, pick up the phone and call us. 21 Pick up the phone and call. I mean, I don't know how many 22 times I've said, "Pick up the phone." I said, "Pick up the 23 phone." The phone never rings. It never rings. So, pick up 24 the phone and call us. And then we -- if you say, "Look, 25 this looks like 110 is going to be a really good number for 34 1 us to work off of," then we'll have a budget workshop and 2 we'll come up with our budget -- our line items, and the 3 bottom line will equal 110, and that's the way the mechanism 4 works. I mean, that's -- I'm -- I just -- if I'm missing 5 something here, explain to me how that can not be the proper 6 way to do that. You know, right now we're going through the 7 back door. I mean, somebody just opened the door back up, 8 and we're going to have to -- we're going to have to send a 9 budget -- we're going to have to do the same thing we would 10 have before if we would have been notified what the number 11 was at some point. 12 MR. LIVERMORE: If the phone doesn't ring, it's the 13 City. 14 MR. KING: I don't -- I just don't understand. I 15 mean, I don't understand why we -- why we can't get -- I 16 mean, we want to do everything we can to make this thing 17 work. I mean, we do. But us having to go backwards in the 18 process is not the proper way for us to manage our time. I 19 mean, we're spending a lot of time on this. And this -- you 20 know what this should have been? This should have been not 21 on the agenda, is what it should not have been. 22 MR. MOSER: Well, it has to be -- 23 MR. KING: We've already approved a budget. 24 MR. MOSER: It has to be on the agenda now 'cause 25 of what we have, so let me propose something. Let me propose 35 1 we take the bottom line of what the City and the County have 2 produced. 3 MR. KING: Mm-hmm. 4 MR. MOSER: Let's structure a budget that's 5 consistent with that, line item by line item, in a workshop; 6 have a workshop to do it. City and County should be at the 7 workshop, and then show what our recommendation -- we show if 8 we can make it, okay? And -- and based on last year, we can 9 probably do it, but there are probably going to be risks 10 associated with it. We ought to identify a lot of what those 11 risks are, and we ought to identify, as you said, if we 12 exceed that, what is the mechanism by which we get that -- 13 MR. KING: Mm-hmm. 14 MR. MOSER: -- that corrected or modified. 15 MR. KING: Right. Right. 16 MR. MOSER: Okay? So -- but I think that's what 17 we've got to do, because Bruce has got his hands tied with 18 what we have on the table. And they may not be tied too 19 tight, but he can't -- if I were Bruce, I wouldn't sign up to 20 a budget saying I'm going to live within it, and can't 21 deviate line item by line item. He can't do his job that way 22 and still be -- and still have a performance review based on 23 him managing that budget. So, Item 1, let's have a workshop. 24 Item 2, let's work on the bottom line that the City and 25 County has given us. Item 3, let's identify deviations from 36 1 what we think internally within the budget, or identify risks 2 that go with it, and then resubmit that to the City and the 3 County for their approval. 4 MR. KING: Okay. Wait, Mike. I want to -- I want 5 to clarify one statement I made, Mike, was that when you -- 6 when you came up with the 175 number, I know that that was -- 7 that was a number that you guys thought was going to work. 8 That was the number, okay? And when we worked off of that 9 175 number, that was a number that you indicated that the 10 City -- that Todd, you know, thought would be a number that 11 we could shoot for and everything. And so, you know, it was 12 all done in good faith on your part and on our part that we 13 negotiated that budget at 175. But I guess what I'm just 14 trying to -- I'm trying to make a point of is that when y'all 15 came to the 110 number, the first guys that should have got 16 the call that 110 looked like it was going to be the number, 17 even after y'all had a meeting on the interlocal agreement -- 18 when y'all had a meeting on the interlocal agreement, and 19 y'all said 110 is the number, stamped it, and so you pick up 20 the phone and say, "Hey, guys, don't y'all think you need to 21 get a new budget that's got 110 on it so we can look at it 22 and approve it?" 23 But, no, we got a budget at 110. So I think the -- 24 we kind of got the cart before the horse there, in that, you 25 know, that mechanism -- there's got to be a mechanism in 37 1 place where we have a -- we are notified of the number 2 that -- that you guys are going to fund, and then we can come 3 up with a budget equal to that funding. If not, we're going 4 to have to -- you guys are going to disapprove our budget, 5 and then there's no mechanism for it to come back to us and 6 be reworked. It basically goes to last year. Isn't that 7 correct, Jonathan? So, I mean, I'm just trying to make the 8 process move a little smoother next year, so that we don't 9 have this same situation come up, and that -- you know, we're 10 only, like, six miles away from the city and the county. I 11 mean -- 12 MR. MOSER: No, you're in the city. 13 MR. KING: I think we're -- I mean from the 14 court -- from the city offices. So, I'm just trying to 15 figure out a way to make it work smoother so that we don't 16 have all these problems. 17 COMMISSIONER LETZ: I think one other comment there 18 is just more to -- when you do the budget workshop agenda, -- 19 MR. KING: Yeah. 20 COMMISSIONER LETZ: -- just something I really 21 hadn't thought of until now, a little bit of a concern as 22 well. The management contracts needs to be on there, because 23 the management contract, we were never talked to, really. I 24 mean, we kind of -- these line item numbers were put in 25 there. The management contract was kind of -- the City never 38 1 asked our opinion on the management contract; it just came up 2 with a bottom line number. Things in the management contract 3 that were built in previous years when we had it, and 4 certainly when the City had it, those numbers are all out of 5 the budget this year. So, if it wasn't an identified 6 expenditure, it wasn't included. And I think that the -- the 7 County needs to clarify if there's road work that needs to be 8 done out here, there's no money in the management contract to 9 do road work out here this year, because it was taken out. 10 And I think we need to -- it's an important point, because 11 that's very different than the way the management contract 12 was done last year in the budget, and certainly very, very 13 different than the way when the City had the management 14 contract. 'Cause the City, when they had it, they took the 15 total amount that was projected, and the County paid off that 16 amount monthly. It wasn't -- there was no tie directly to 17 expenditures. So -- 18 MR. KING: I thought you had a different plan on 19 that. Don't you and Mike -- I thought y'all used it. 20 COMMISSIONER LETZ: During the budgeting, the -- I 21 think the County's preference is -- and the City has no 22 objection to it, is to pretty much eliminate the management 23 contract, move the employees to the airport, and pretty much 24 have everything work, you know -- 25 MR. KING: Do you know about that, Mike? Have you 39 1 discussed that? 2 MR. ERWIN: That would have to be a decision made 3 by our Council. That's not something I could make. 4 MR. KING: But have you heard about that? 5 MR. ERWIN: There were a lot of discussions that 6 happened between our two representatives and the County's two 7 representatives. I was not the staff member there. 8 MR. KING: Okay, you weren't there. 9 MR. ERWIN: So some of the things that are being 10 said this morning, I wasn't -- 11 MR. KING: Okay. All right. 12 COMMISSIONER LETZ: That conversation has taken 13 place. 14 MR. KING: Good. 15 COMMISSIONER LETZ: In fact, there was a -- there 16 was some effort to try to work on a -- you know, the hundred 17 -- the budget that y'all ended up with to try to incorporate 18 some of those ideas into it, and it was not practical to do 19 it in the amount of time left. But from my conversations 20 with the City Manager, they're open to discussing that as a 21 concept, and probably that discussion should take place 22 before y'all rework the budget. 23 MR. KING: Well, and I think I also -- if that 24 doesn't work out, we're going to put this out on an RFP; is 25 that correct, next year? Don't we have a -- 40 1 MR. MOSER: That's right. 2 MR. KING: We've agreed to -- 3 MR. MOSER: We agreed to have a definitive request 4 for quotes. 5 MR. KING: Right. 6 MR. MOSER: Line item by line item, or -- or task 7 by task. 8 MR. KING: Right, we'll offer that to the County 9 and the City so they can both bid on it. But I'm hopeful 10 maybe before that happens, y'all can figure out a different 11 way to do it so that there's -- 12 MR. LIVERMORE: To avoid that. 13 MR. KING: To avoid that. Just to avoid that. We 14 can go to a different way, because I think it -- you know, 15 the discussions I've had with you, Jonathan, is, you know, we 16 probably could save $40,000 -- $30,000, $40,000, possibly, if 17 we did it -- if we did it a different way. 18 COMMISSIONER LETZ: Off the 175 number you can save 19 that much. I'm not sure you can save that much off of the 20 110, because the 110 is pretty stripped. 21 MR. KING: Yeah. No, I'm talking about -- how much 22 is your management contract in the budget? 23 MS. HARGIS: 158. 24 MR. KING: 158. Right, okay. But there's got to 25 be some stuff in that 158 that is -- that is numbers that 41 1 are -- 2 COMMISSIONER LETZ: Like engineering. 3 MR. KING: They're in there in case we need them, 4 and if we don't need them, we still pay for it. It's in the 5 management contract. 6 COMMISSIONER LETZ: You do not pay for it. 7 MR. KING: We don't pay for it? 8 COMMISSIONER LETZ: The way the City -- the County 9 ran it, we had it in a management contract, a commitment from 10 the County, but if it wasn't spent, it wasn't -- the City -- 11 I mean, last year we paid 100 percent of it, so it didn't 12 make any difference, but as we go forward this year, the 13 City's contribution will only be what is actually spent. 14 MR. KING: Okay. Okay. Well, we need to talk 15 about -- that needs to be a good discussion, because there's 16 got to be a better way to handle that management contract so 17 that everyone feels like they're being treated fairly, and we 18 can offer the same, you know, basket of eggs to one party as 19 we do another party, and a third party also, if a third party 20 wants to bid on it. Then you have the same baskets and 21 everybody can look at it. 22 COMMISSIONER LETZ: Right. 23 MR. KING: Hopefully you'll figure out a way to do 24 that better before we get there. Okay, back to this -- 25 MR. MOSER: So, should we -- yeah, okay. 42 1 MR. KING: So we can't -- 2 MR. MOSER: So the action here will be to schedule 3 a budget workshop. 4 MR. KING: Well, I guess, first of all, is there 5 any motion to approve this budget? No, we can't approve it. 6 MR. MOSER: Can't approve it. 7 MR. KING: We didn't submit it. We didn't submit 8 it. 9 MR. MOSER: I'm not going to vote to approve 10 something I don't -- I don't know anything about. 11 MS. BAILEY: The procedure -- according to the 12 interlocal agreement, the only possible action at this point 13 is that last year's budget becomes the budget. Although you 14 understand that neither the City nor the County have approved 15 that. You've got to have some budget to operate under right 16 now, so it seems to me like you should just acknowledge that 17 the government interlocal agreement makes that last year's 18 budget in place; call that the budget so that they have funds 19 to work from, and then take the next month or two months, 20 however long it takes, to make a modification of the budget 21 that is agreeable not only to this board, but to the City and 22 the County. 'Cause otherwise, you're operating with no 23 budget at all. 24 MR. MOSER: So, no action is required. 25 MS. BAILEY: Except to make a plan for how you're 43 1 going to -- 2 MR. MOSER: Right. So, we're operating under last 3 year's budget. 4 MS. BAILEY: That's what the interlocal agreement 5 says. 6 MR. MOSER: That's what it says, clearly. 7 MS. BAILEY: So, I think that's not funded. It has 8 not been agreed to be funded by the City and the County. 9 MR. KING: Do y'all have any opinion? 10 COMMISSIONER LETZ: The problem is that that's a 11 new interlocal agreement. 12 MR. ERWIN: It's a new interlocal. 13 MR. MOSER: I believe the new interlocal agreement 14 says the same thing. 15 COMMISSIONER LETZ: I don't think it makes -- from 16 an operational -- 17 MR. MOSER: I think the new interlocal agreement 18 says the same thing. 19 MR. ERWIN: Here you go. 20 MR. KING: The new one says the same thing. 21 MR. ERWIN: Here's the copy of the new one, if you 22 want to identify where it says that. 23 MR. KING: Well, it says -- it doesn't -- didn't 24 y'all leave the language in there about reverting back to the 25 old budget? 44 1 MR. MOSER: I think it does, Mike. 2 MR. KING: Read it. 3 MR. MOSER: I think it does. 4 MR. KING: Mike, we're not going to -- we're not 5 going to argue with you. 6 MS. BAILEY: You got to have some money to operate 7 with; that's my concern. 8 MR. MOSER: I think it says that. I read it. 9 MR. KING: I don't know. 10 (Low-voice discussion off the record.) 11 MR. KING: I just want to -- I just want us to 12 do -- I don't want to leave here not doing the proper thing, 13 the proper procedure for continuing. 14 MR. LIVERMORE: I think, Mr. Chairman, you have 15 explained very carefully and very well how we have landed in 16 the particular corner in which we find ourselves. 17 MR. KING: Right. 18 MS. BAILEY: Should neither not approve the board 19 budget, previous year's board budget shall be automatically 20 adopted for the coming year. 21 MR. MOSER: That's what I just said. That's the 22 new interlocal agreement. I read the damn thing. 23 MR. KING: Okay. So -- so -- 24 MR. MOSER: I think everybody in this room ought to 25 read the agreement. 45 1 MR. KING: I read it. So -- okay. Ed, do you have 2 anything else? So I think -- I mean, I think Tom is -- I 3 don't think it's any -- this is the only way we can do it. 4 It's really the only way we can do it. We don't have the 5 budget that we -- let's go over the chronology here. The 6 budget we presented to the City and the County, the only 7 budget that we've ever voted on and presented to the City and 8 the County was not approved by the City and the County, okay? 9 And, I mean, I think it just stops there. 10 MR. MOSER: Okay. 11 MR. KING: That's it. And so, therefore, we have 12 to go with the interlocal agreement, which says that we will 13 revert back to last year's budget. However, we are -- we're 14 still not going to get funding for more than 110, so we're 15 not really -- 16 MR. MOSER: Right. 17 MR. KING: -- not really jumping across any bridges 18 here. 19 MR. MOSER: But it gives him the authority to keep 20 operating. 21 MR. KING: But it gives Bruce authority to keep 22 operating, and we will set a budget workshop for as soon as 23 we can. 24 MR. MOSER: Right. 25 MR. KING: So that we can come up with a budget, 46 1 and that budget will -- I am fairly certain we'll end up with 2 a number of 110, you know, as a contribution from the City 3 and the County. The contribution will be $110,000. And, 4 however, the numbers to get there will be numbers that we 5 have come up with as an Airport Board, as required by the 6 interlocal agreement, because the interlocal agreement says 7 that the Airport Board will come up with a budget -- will 8 come up with a budget and present that budget. And we will 9 present that budget to the City and the County, and then 10 hopefully they will both approve it and we can go on about 11 our merry way. 12 MR. MOSER: That's it. 13 MR. WALTERS: I'd like to, at that budget 14 workshop -- I mean, I realize that the number is 110, but I 15 think, again, the board has to be confident that the budget 16 that we prepare is what the airport can operate under. 17 MR. MOSER: Right. 18 MR. WALTERS: So it may not be 110; it may be 114 a 19 piece. 20 MR. KING: Okay. 21 MR. WALTERS: And so I'm -- I don't know what it 22 will be. 23 MR. KING: Yeah, I agree. Okay. 24 MR. WALTERS: And I think it should be a -- it will 25 be a budget that the Airport Board feels like the airport can 47 1 adequately operate, and that will be the budget that we will 2 prepare and submit to both the City and County. 3 MR. MOSER: And I agree with you. I think all we 4 need to do is say that's our mark to shoot toward, okay? 5 $110,000 contribution from each, that's our mark, and we'll 6 do everything we can to make it fit within that. And it may 7 be a little bit less than that. Could be. 8 MR. WALTERS: Could be. 9 MR. MOSER: You know. 10 MS. BAILEY: Keep in mind, it's going to be a 11 budget amendment, not a budget. We already have a budget. 12 MR. KING: Exactly. We've already submitted a 13 budget. 14 MR. MOSER: Okay. 15 MR. KING: How's that sound to you guys? 16 COMMISSIONER LETZ: Good. 17 MR. KING: Mike, is that -- I mean, does that sound 18 like a mechanism that will work? Does that sound like the 19 only mechanism we have at this time? 20 COMMISSIONER LETZ: Yes, I would agree. 21 MR. KING: Jonathan? I don't see any other options 22 at this time. I don't see -- we can't vote on a budget that 23 we -- we can't vote -- we can only vote on budgets that we 24 submit to the City and the County. And we haven't had, 25 really, an opportunity to -- 48 1 MR. LIVERMORE: Mr. Chairman, I just -- being the 2 new member here, just to make sure I understand, if we were 3 to do otherwise, if we were to, say, adopt the budget the 4 City has sent us, we would be in violation of -- of the 5 interlocal agreement, would we not? 6 MR. KING: We didn't prepare it, yes. If we 7 haven't prepared the budget -- 8 MR. MOSER: What we'd have to do is have to agree 9 to it and send it back and say we agree, and obviously, they 10 would agree to it, and that would be that. But that would be 11 the procedure. 12 MR. KING: I mean, you know, unless you guys would 13 like to go over this budget right now -- 14 MR. MOSER: No. 15 MR. KING: -- and make changes. Would anyone like 16 to go over this budget, go through it, have a budget workshop 17 now? 18 MR. MOSER: No. I think the thing -- before we do 19 that, Bruce has got to take this; Bruce has got to develop a 20 strawman. Then we have to have the budget workshop using as 21 a basis what Bruce comes up with as an operating budget. And 22 -- and we're just talking about the operating budget now. 23 We're not talking about the capital budget; let's make that 24 very clear. This is -- the 110,000 contribution by each 25 member -- each owner is for an operating budget for this 49 1 year. So -- so let me make the motion that Bruce take -- 2 Bruce establish a budget, okay? Modify it -- an amended 3 budget from what we submitted before. Let's set a date for 4 the -- for the budget workshop, and let's proceed to -- to 5 resubmit that amended budget to the City and the County for 6 approval. 7 MR. LIVERMORE: Second. 8 MR. WALTERS: Second. 9 MR. KING: Discussion? All in favor? 10 (The motion carried by unanimous vote, 5-0.) 11 MR. KING: 5-0. 12 MR. MOSER: Okay, let's set the date. 13 MR. KING: Wow. When can we do that? We should do 14 it real quick. 15 MR. MOSER: Yeah, we should. I don't think it's 16 going to take us long. 17 MR. KING: Anybody have any plans for next week? 18 MR. COWDEN: Next Monday, maybe? 19 MR. LIVERMORE: Monday? 20 COMMISSIONER LETZ: We have Commissioners Court. 21 MR. KING: Commissioners Court. How about the 22 afternoon? 23 MS. HARGIS: Afternoon would be good. 24 MR. KING: Afternoon. Want to do it in the 25 afternoon? 50 1 MR. MOSER: That's great. 2 MR. LIVERMORE: I'm -- I'm worried about Monday. 3 MR. KING: It comes once a week. 4 MR. LIVERMORE: I know. It's a big day. We're 5 leaving the next day on a week-long trip, and I -- something 6 is -- the reason we didn't leave on that day is because 7 something else was on the calendar, and I don't remember. 8 Maybe it's on here. 9 COMMISSIONER LETZ: Monday afternoon isn't going to 10 be great for me, but I don't have to be here. 11 MR. KING: Oh, it's not? Can you come, Guy? 12 COMMISSIONER OVERBY: I can be there. I mean, 13 there's a lot going on next week. I think all my stuff -- 14 MR. MOSER: Well, I think it's important to do it 15 soon. 16 MR. KING: I just don't think we need to go a whole 17 long ways. 18 COMMISSIONER LETZ: We can do it early afternoon. 19 I've got to leave town. 20 MR. KING: We can do it right after your 21 Commissioners Court. We can do it right after your 22 Commissioners Court meeting. 23 MR. MOSER: That's fine. 24 COMMISSIONER OVERBY: Set it at 1:00? 25 MR. KING: We got to wait on Ed here. 51 1 MR. LIVERMORE: I don't see on it here, so I must 2 be remembering something else. 3 MR. KING: Try to set it for 1 o'clock, and then if 4 something pops up -- 5 COMMISSIONER LETZ: I think you need -- subject to 6 the City being able to have someone -- 7 MR. KING: Mike, can you send, like, a platoon of 8 people out here this time? 9 MR. ERWIN: What I'm doing is, I'll talk to the 10 members who have been appointed to the planning committee. 11 COMMISSIONER LETZ: Good idea, yeah. 12 MR. ERWIN: And see if they're able to attend the 13 budget workshop. 14 MR. KING: I would -- I would anticipate that each 15 member will have a plan, and have some ideas. 16 MR. MOSER: Yeah. Let's have that -- have looked 17 at the budget, and Bruce would be able to send everyone your 18 ideas prior to that. 19 MR. McKENZIE: I can do that. 20 MR. KING: Then -- and so we wouldn't be starting 21 from scratch, and just have a blank discussion to start with. 22 So, why don't we -- why don't we try and encourage each 23 member to work -- look at the numbers that Bruce had, come up 24 with some ideas on your own so that we can try to get this -- 25 MR. MOSER: Right. 52 1 MR. KING: -- kind of get this done in a very 2 timely manner. 3 MR. McKENZIE: We also need to plan it around when 4 Kathy can be here, 'cause she needs to be here. 5 THE REPORTER: I can't talk and write at the same 6 time. 7 MR. KING: Okay, we can't talk any more. 8 MR. MOSER: Bruce, can you, like, have that draft 9 to us by Thursday or Friday? 10 MR. McKENZIE: Yes, sir. I'll have it to you by 11 the middle of the day Thursday, hopefully. 12 MR. MOSER: Okay. Middle of the day Thursday, 13 good. That will give everybody a chance -- if you can't be 14 here, Ed, you can take a look at it, and we can talk -- 15 MR. LIVERMORE: I think I can make it. 16 MR. MOSER: Okay, good. Cool. 1 o'clock. 17 MR. KING: Yes, Commissioner? 18 COMMISSIONER LETZ: Just to keep Bruce probably 19 from doing a whole lot of work, wouldn't it make sense to 20 have the meeting of the planning committee or budget, 21 whatever this -- whatever you want to call this meeting, 22 first to find out if we're going to try to switch how we 23 break things out with the interlocal -- with the management 24 contract, so we don't do it twice? 'Cause -- does that make 25 sense? 53 1 MR. MOSER: Say that again? 2 MR. KING: Say that again. 3 COMMISSIONER LETZ: If the management contract's 4 going to be redone so the employees get shifted to the 5 airport, would it make sense to make that decision first? 6 MR. MOSER: Sure. 7 COMMISSIONER LETZ: Before we do another budget? 8 MR. KING: When are you talking about doing that? 9 COMMISSIONER LETZ: Well, could that take place 10 next Monday? Get a direction, and then the following week 11 come up with an actual budget. 12 MR. KING: Are you talking about having a planning 13 -- having a planning committee meeting? 14 COMMISSIONER LETZ: Right. 15 MR. KING: That we -- 16 MR. MOSER: A planning committee for the -- the 17 planning committee? No. No. You're talking about having 18 a -- 19 COMMISSIONER LETZ: Well -- 20 MR. KING: I think he is. 21 COMMISSIONER LETZ: Yeah, have a planning committee 22 meeting, then have a budget workshop after that. I mean, it 23 doesn't make sense to me to do a budget once, and then have 24 it changed again. I mean, 'cause everyone -- I mean, time 25 gets invested every time. 54 1 MR. LIVERMORE: You're saying have a meeting on the 2 24th to make this decision? 3 COMMISSIONER LETZ: Have a planning committee 4 meeting to see how they -- how everybody wants to go forward, 5 trying to figure out -- to get a budget. 6 MR. LIVERMORE: And then have the budget workshop 7 the 31st? 8 COMMISSIONER LETZ: Something like that. 9 MR. KING: Are you guys far enough along in that 10 idea, do you think, to -- to have -- if we had -- if we had 11 the City and -- 12 COMMISSIONER LETZ: The problem is, we -- I mean, 13 we've talked about it. And Jeannie and I have talked about 14 it, and I have talked about it conceptually only, but we just 15 haven't -- 16 MR. MOSER: I don't think y'all ought to put these 17 in series that way. I think we ought to go through with our 18 budget the way we have the agreement, and if the City and the 19 County change, or -- 20 COMMISSIONER LETZ: Okay. 21 MR. KING: If you guys were further along with 22 that, Jonathan, I would, but that's going to be the first 23 meeting. I know that first meeting is going to be -- 24 COMMISSIONER LETZ: Okay. 25 MR. MOSER: We got a bunch of things to discuss at 55 1 that first meeting. 2 COMMISSIONER LETZ: All right. 3 MR. KING: People jockeying -- 4 COMMISSIONER LETZ: That way, at least we're 5 working towards a budget that we -- 6 MR. MOSER: Let's go -- let's take what we 7 submitted; let's take this and let's do what we just said. 8 MR. KING: I don't want to -- I don't want to 9 neglect our duty of the board to submit a budget to the City 10 and the County. 11 MR. MOSER: Right. 12 MR. KING: That can be voted on. So, we need to go 13 ahead and just get -- 14 MR. MOSER: I think it could take you guys a month 15 to figure out the other thing. 16 MR. KING: Took them four months. 17 COMMISSIONER LETZ: That's optimistic. 18 MR. KING: I think you're very optimistic. 19 MR. MOSER: Okay. 20 MR. KING: So, okay, we're going to try to do this 21 Monday. It'll just be a budget workshop, and we encourage 22 all to attend. 23 MR. MOSER: 1 o'clock. 24 MR. KING: As we've said in the past, everyone has 25 input. 56 1 MR. MOSER: Okay. 2 MR. KING: Okay. All right. Recommendation of 3 Airport Board members to serve on the planning committee. 4 Airport Board. 5 MR. WALTERS: I've -- I've thought about this and 6 the purpose of that planning board, and it seems to me that 7 the logical members would be people who have the most history 8 with the airport, and also the most history with the 9 development of the master plan. And to me, that is both Tom 10 and the president, Stephen King, and I recommend that we 11 elect Tom Moser and the Airport Board President, Stephen 12 King, to that planning committee. 13 MR. LIVERMORE: I agree. 14 MR. COWDEN: Is that a motion? 15 MR. WALTERS: I make a motion that we elect Tom 16 Moser and Stephen King to that planning committee based on 17 the most knowledge of the airport and the master plan. 18 MR. KING: What do you think, Tom? 19 MR. MOSER: Second. (Laughter.) 20 MR. COWDEN: Already got a second. 21 MR. MOSER: Oh, we got a second. 22 MR. KING: Discussion? 23 MR. MOSER: I think -- I think Corey hit the nail 24 right on the head. I think there's going to be a lot of 25 discussion about the master -- the strategic plan, what we've 57 1 done, the master plan, and what we've -- what we've done to 2 get to where we are today and where we want to go in the 3 future. To me, that's what planning -- that, to me, would be 4 what a planning committee would be looking at; where we've 5 been, how do we get here, and where do we want to go, and 6 then get directions from that. So I think -- I think Corey 7 said it, hit the nail right on the head. 8 COMMISSIONER LETZ: Just a general comment, 'cause 9 the -- when the discussions came up, the idea was for the -- 10 that core group to include other people as they wanted. So 11 that doesn't mean -- as an example, if there's some 12 discussion around economic development, to ask Ray -- 13 COMMISSIONER OVERBY: Ray Watson. 14 COMMISSIONER LETZ: Ray Watson may come in, or one 15 of the -- the City Attorney, County Attorney, Airport 16 Manager. So, it's not an exclusive group, -- 17 MR. MOSER: Right. 18 COMMISSIONER LETZ: -- in my mind. It's an open 19 group. It should be open to the public to be able to come to 20 the meeting. 21 MR. MOSER: Yeah, Bruce should there. It will be a 22 public -- it will be a public meeting, correct? 23 COMMISSIONER LETZ: So I don't see -- 24 MR. MOSER: Why not? Okay. 25 MR. KING: K.E.D.C. 58 1 MR. LIVERMORE: K.E.D.C. 2 COMMISSIONER LETZ: Right now, the first one is 3 just that core group, I think, you know, as participants, but 4 then -- 5 MR. MOSER: Right. 6 COMMISSIONER LETZ: -- let it evolve as needed. 7 MR. MOSER: So, just for clarification, it will be 8 a public meeting, so -- 9 COMMISSIONER LETZ: Sure. 10 MR. MOSER: -- anybody in the public can be there, 11 and -- okay. Okay. And if there's any -- I'm not sure how 12 you take action or don't take action or whatever. 13 COMMISSIONER LETZ: No action taken. It's not a 14 decision -- I mean, it's really not set up that way. 15 MR. MOSER: Okay. Oh, yeah. All right, good. Who 16 prepares the agenda for that meeting? 17 COMMISSIONER LETZ: I presume for the first one, 18 the City and the County maybe -- well, between the three of 19 us, we'll circulate the agenda. That way everyone gets an 20 option to put on what they want. 21 MR. MOSER: Super. Good way to do it. 22 COMMISSIONER LETZ: I'll get Jody to start that. 23 Then she can -- 24 MR. MOSER: Did we vote? 25 MR. KING: There's a motion on the table. No more 59 1 discussion? All in favor? 2 (The motion carried by unanimous vote, 5-0.) 3 MR. KING: I vote for Tom. Unanimous. All right. 4 Propose dates for planning committee to meet. 5 MR. McKENZIE: Wednesdays are the only -- 6 Wednesdays mornings are the only time Kathy is going to be 7 available to take minutes at those meetings. Wednesday 8 mornings. So, whatever Wednesdays -- 9 MR. KING: We have to have minutes taken at those 10 meetings? 11 COMMISSIONER LETZ: I think it would be a good 12 idea. 13 MR. KING: All right, that's fine. 14 MR. McKENZIE: We want to do that, yes. 15 MR. MOSER: Well, who set -- this is an agenda 16 item, but -- 17 MR. KING: Todd wanted us to put this on here. 18 Mike, what was his thinking? 19 MR. ERWIN: Just so we get started. 20 MR. MOSER: Okay. 21 MR. KING: Okay. 22 MR. ERWIN: On the planning committee meeting. 23 COMMISSIONER LETZ: The other option is -- I mean, 24 this makes a very long day for Kathy on Mondays, but on 25 Commissioners Court days, or on the alternate Mondays, 60 1 there's a time, I think, Kathy, right after lunch -- 2 MR. MOSER: Thinking about -- it's always good to 3 know why you're having a meeting before you have a meeting. 4 So, thinking about why we're having a planning meeting, 5 what -- we don't have any -- the budget is not going to be 6 part of that process, okay? The master plan should be part 7 of the process. The master plan will not be completed 8 until -- 9 MR. McKENZIE: Thanksgiving. That's the final 10 draft. 11 MR. MOSER: Okay, that's final, so we have -- we 12 have a preliminary -- we have a preliminary copy right now. 13 MR. McKENZIE: Yes, sir. 14 MR. MOSER: Which is probably 90 percent what it 15 should be. We can use that to discuss where we are, and that 16 could be a -- a major agenda item. If we could get copies of 17 that, Bruce, to the members of the planning committee, I 18 think that would be constructive. 19 MR. COWDEN: Also, you know, the strategic plan we 20 did a year or so ago could -- could be given to these guys so 21 they're up to speed -- 22 MR. MOSER: Right. 23 MR. COWDEN: -- on what we've accomplished. 24 MR. KING: Yeah. 25 MR. MOSER: So we could -- so the agenda, we could 61 1 talk about the strategic plan that we have. Okay. And that 2 probably needs -- those things need to be updated every year, 3 so there could be some input from the City and the County -- 4 from the planning committee, and the -- the master plan as it 5 exists today. And so those two -- two items, and then if we 6 want to talk about, Commissioner, the -- you know, the 7 administrative contract at a meeting, that would be good too. 8 MR. KING: Third, we need to talk about this -- we 9 may have already gone too far on that, but we need to talk 10 about that marketing plan that TexDOT was offering to us, 11 'cause we've kind of -- we've -- 12 MR. McKENZIE: Stopped it. 13 MR. KING: We stopped that, and I think it's a good 14 opportunity if -- if the mayor and one member of the 15 Council -- and, Mike, I believe you're on that committee; is 16 that correct? 17 MR. ERWIN: Yes, sir. 18 MR. KING: That -- you know, and our meeting where 19 we stopped that, we kind of just put the brakes on that. I 20 know there's been some questions with the other parties that 21 are paying for -- you know, paying for that -- TexDOT, 22 mainly -- as to what we want to do on that. So, I think we 23 should put that on the agenda, because we need to -- if we're 24 going to entertain that, then we need to do that, like, 25 A.S.A.P. That needs to -- we're going to be floating way too 62 1 far down the river. I mean -- 2 COMMISSIONER OVERBY: Steve, what was that amount 3 on that marketing grant they offered? 4 MR. McKENZIE: $47,000 total. 5 COMMISSIONER OVERBY: Okay. 6 MR. McKENZIE: And they will -- you know the story. 7 I won't belabor the point. We've now stopped it for -- I've, 8 you know, talked to Austin; I've talked to Fort Worth, and 9 we've stopped it. 10 MR. KING: Paying for it -- half of it. We've 11 stopped it, but they'll pay for -- what they basically did 12 was that they -- that is not a RAMP grant allowable project, 13 and they have made an exception for us to move that into a 14 RAMP grant allowable project, so it will be RAMP grant 15 allowable. The question I had was, will that come -- will 16 that come out of our RAMP grant funding for this year? 17 MR. McKENZIE: FY '12. 18 MR. KING: FY '12. So, there's really not new 19 money there. It's basically -- it's -- I mean, $25,000 is 20 money that we're not going to get to spend on RAMP grant 21 here. It's -- they've just made it eligible. If we were 22 going to do the marketing plan, if we opted for the marketing 23 plan under normal circumstances, that would be a City/County 24 paid item. 25 MR. McKENZIE: Yes, sir. 63 1 MR. KING: With no input from TexDOT. So, I 2 guess -- I guess what we need to do is we need to talk about 3 it. That would be a great place to do that, would be at that 4 planning session, to talk about it. Do we have any 5 information on it? I mean, do we have some literature as to 6 what they're going to cover? 7 MR. McKENZIE: Oh, yes. It's not literature; I've 8 got the line items. 9 MR. KING: You got some line items what they're 10 going to do and everything? 11 MR. McKENZIE: Yes, sir, absolutely. 12 MR. WALTERS: That's one of the things I'd like for 13 -- I mean, since it's coming out of our RAMP grant money for 14 2012, I mean, do you have a list of items that you think, 15 okay, that we typically would use that money for these items 16 in 2012, or some anticipated items in 2012? 17 MR. COWDEN: What's the priority? 18 MR. WALTERS: Yeah, what's our priority? I mean, 19 our marketing plan in terms of these other items that you're 20 planning for RAMP grant projects in 2012. 21 MR. McKENZIE: Without going back and referring to 22 my notes, what I would like to do is -- is add a security 23 system to this facility this year, which is going to be 24 pricey. 25 MR. KING: What kind -- what type of security? 64 1 MR. McKENZIE: Cameras, gates. And in this 2 building and around this area, ramp, entrance gates -- 3 MR. KING: Right. 4 MR. McKENZIE: -- in here. Because -- I can't talk 5 too much about security, but we need to do that. 6 MR. WALTERS: I think that's something that the 7 board needs to know, and ultimately, this planning committee 8 will need to know too, is what are we sacrificing if we move 9 forward with that marketing -- you know, 'cause I don't know 10 that the board really wants to make a recommendation that we 11 move forward with that marketing plan and spend that money in 12 lieu of doing these other projects that -- 13 MR. McKENZIE: Sure. 14 MR. WALTERS: -- were anticipated for 2012. I 15 think that's really -- 16 MR. KING: I agree. If it's going to -- we need to 17 know whether it's going to impact us, whether we're going to 18 come up in 2012 and go, man, I wish -- you know, glad we 19 spent it on that marketing plan, but that 25,000 really would 20 have come in handy to fix that pothole over here, or 21 something happened over here. I don't want to take away 22 anything, 'cause that is a maintenance -- RAMP grants are for 23 maintenance, for those maintenance items -- normally 24 maintenance items. 25 MR. McKENZIE: We're also using our RAMP grants to 65 1 pay for our stormwater pollution prevention planning. That's 2 allowable. We're using that this year; we're in the throes 3 of that right now. 4 MR. KING: That's something we can discuss with 5 Mike and Jonathan and the other parties. Because, I mean, 6 that -- you know, that -- that's going to be in -- that's 7 going to be something we really need input from the City and 8 County on, because marketing is something that has been 9 talked about by -- by the mayor, and -- and he's a member of 10 that committee, and some other people. And so, you know, I 11 guess if we can present that and let you guys give your input 12 into, "Hey, this sounds like a waste of money," or "This 13 sounds like a good opportunity, you know, for someone else to 14 spend half of that." And so I think that's something we got 15 to -- we need to make a decision on, at least have a 16 recommendation from that planning committee back to this 17 board so that we can vote on it. 18 MR. MOSER: Right. 19 MR. KING: And we need to do it really quick, or 20 we're going to lose that deal. They're going to finish the 21 master plan and we're not going to have it. So, when's the 22 -- when's the master plan supposed to be finished? 23 MR. McKENZIE: Final draft to be ready around 24 Thanksgiving, first part of December. 25 MR. KING: So we're, like, right in on the tail end 66 1 of that deal, so we better -- we need to do that. Okay. 2 COMMISSIONER LETZ: Another item I think would be 3 good to put on the agenda for the planning committee would be 4 Mooney. 5 MR. KING: Yeah. 6 COMMISSIONER LETZ: Just -- I mean, may not have 7 anything on it, but that's something -- 8 MR. MOSER: That's included in the master plan, so 9 it could be a subset of that, but it should be, right. 10 COMMISSIONER LETZ: Okay. 11 MR. MOSER: Specifically should not be avoided. 12 MR. KING: They didn't have a presence at N.B.A.A., 13 by the way. 14 MR. WALTERS: No. 15 MR. KING: I couldn't find them. I looked in the 16 book. 17 MR. MOSER: So we need to set a date. 18 MR. KING: Okay. 19 MR. MOSER: Or propose a date. 20 MR. KING: All right. Well -- 21 MR. LIVERMORE: It's got to be a Wednesday 22 afternoon? Or Wednesday -- 23 MR. McKENZIE: Wednesday morning. 24 MR. WALTERS: Commissioner, you said you could tack 25 it onto their Commissioners Court meeting on Mondays. 67 1 MR. KING: Is there any discussion as to where 2 we're going to meet on these? 3 COMMISSIONER LETZ: I think meet here. 4 MR. KING: All right. 5 MR. MOSER: Good. 6 MR. KING: Well, dates? I think we need to have 7 one A.S.A.P. 8 MR. LIVERMORE: How about next Wednesday? 9 MR. KING: Next Wednesday, maybe? 10 MR. COWDEN: The 26th? 11 MR. KING: Can do you that, Tom? 12 MR. MOSER: Yep. 13 MR. LIVERMORE: Now, I'm unable to -- we are able 14 to sit in on those meetings, aren't we? 15 MR. COWDEN: Yeah, it's a public meeting. 16 MR. LIVERMORE: But I'll be out of town that week, 17 but that is the first time. 18 COMMISSIONER LETZ: Wednesdays are days -- 19 COMMISSIONER OVERBY: I'm in San Antonio for AACOG 20 meetings the last Wednesday of every month. 21 MR. KING: Okay, that's bad. How often does this 22 committee meet? Someone -- 23 COMMISSIONER LETZ: Quarterly. 24 MR. KING: Quarterly? Well -- 25 COMMISSIONER LETZ: How about the first Wednesday 68 1 in November? 2 MR. MOSER: The 2nd? 3 MR. KING: Thanksgiving's right around the corner. 4 MR. MOSER: How about next Friday? 5 MR. KING: I'm just concerned; we need to make a 6 decision on that, on that marketing deal, or TexDOT's going 7 to call us up here one day and go, "Thanks -- thanks for 8 coming by." 9 COMMISSIONER OVERBY: Have they given you a 10 deadline? 11 MR. KING: Well, I think when the master plan -- 12 it's included in the master plan. When they start printing 13 the master plan, it's probably too late. 14 COMMISSIONER OVERBY: Yeah. Little too late. 15 MR. MOSER: So, what other day next week can we do 16 it? 17 MR. KING: We've got a -- have you talked to them 18 lately about it? 19 MR. McKENZIE: Not since I called Michelle and told 20 her to stop. 21 MR. KING: You can call and ask them if it's still 22 on the table. 23 MR. McKENZIE: We're all right till Perry gets 24 towards the finalizing of this master plan, when he starts 25 closing it out. 69 1 MR. MOSER: So, what other day next week can we do 2 it? 3 COMMISSIONER LETZ: How about doing this instead of 4 a budget meeting on Monday? 5 MR. KING: Do this instead of the budget meeting? 6 Well, we could do a budget meeting -- 7 MR. LIVERMORE: Do the budget -- do the budget 8 meeting the following Monday? 9 MR. COWDEN: 31st? 10 MR. MOSER: That's okay. 11 MR. KING: We could do that. I mean, we can do 12 that. I mean, I guess the -- I guess priority-wise, this is 13 probably more important right now than the budget, wouldn't 14 you think? I mean, we've got a -- 15 COMMISSIONER LETZ: Got a budget. 16 MR. KING: We got a budget that's in place. So -- 17 MR. MOSER: That's a good idea. 18 COMMISSIONER LETZ: Not a good budget. 19 MR. KING: Do what? 20 COMMISSIONER LETZ: May not be a good budget, but 21 it's a budget. 22 MR. KING: It's a budget. 23 MR. McKENZIE: It's working. 24 COMMISSIONER LETZ: There's money there. 25 MR. KING: I don't want to lose -- I hate for us to 70 1 go too far, have a meeting, and all of a sudden, TexDOT goes, 2 "Hey, you're late." 3 MR. MOSER: If we do this next Monday, if -- then 4 we need to get copies of the master plan as it exists, Bruce. 5 MR. McKENZIE: Okay. 6 MR. MOSER: To everybody. So, that's a big -- big 7 copying job. 8 MR. McKENZIE: Yeah. 9 MR. KING: What time would that meeting be? 10 MR. COWDEN: 1 o'clock. 11 MR. MOSER: 1 o'clock. 12 MR. KING: I was going to the Rangers game. I can 13 get there. It's the World Series, man. I can get there by 14 7 o'clock. 15 MR. MOSER: Okay. 16 MR. WALTERS: What -- 17 MS. BAILEY: 24th. And then the 31st, if you're 18 going to do -- 19 MR. WALTERS: Well, I'm going to ask if we can -- 20 since everybody's bringing up their schedule, can we do it 21 other than the 31st on this budget meeting? 22 MR. KING: Really? Well -- 23 MR. MOSER: What is next week, the 24th? 24 COMMISSIONER LETZ: Can we take a brief recess so 25 we can talk to Kathy? 71 1 MR. KING: That would be fine. Let's take a brief 2 recess. 3 (Recess taken from 9:51 a.m. to 9:55 a.m.) 4 - - - - - - - - - - - 5 MR. MOSER: So the planning committee meeting, the 6 major item there is the marketing plan, okay. With the 7 background for strategic plan and the master plan. I'm just 8 trying to think here for Bruce, 'cause he's going to have 9 to -- and Laurie's going to have to reproduce that master 10 plan for everybody. 11 MS. DEJOHN-ERMEY: The first planning meeting has 12 to end at 2:30. 13 MR. MOSER: Why? 14 COMMISSIONER LETZ: 'Cause Kathy has to go. 15 MR. MOSER: Well, so it's going to be an hour and a 16 half, so we don't have to reproduce the master plan. 17 MR. KING: Why don't you bring a copy of it, pass 18 it around. 19 MR. MOSER: No, I'm talking to Bruce. Yeah, we'll 20 -- you and I will bring a copy. 21 MR. KING: All right. So, what -- I'd say just get 22 a copy. 23 COMMISSIONER LETZ: Ask them if they want to look 24 at it, which hopefully they do. 25 MR. MOSER: Okay, yeah. 72 1 COMMISSIONER LETZ: Hopefully that's a good -- 2 MR. KING: We're going to have a bunch of copies. 3 MR. MOSER: Here's the deal. Get a copy -- get a 4 copy, Laurie and Bruce, to the City and a copy to the County, 5 okay? 6 COMMISSIONER LETZ: Right. 7 MR. MOSER: And then that will do it. 8 MR. McKENZIE: I was outside. A copy of what? 9 MR. MOSER: Get a copy of the master plan, a copy 10 to the City and a copy to the County, and they'll just be for 11 background. The major -- major item on the agenda is going 12 to be the marketing plan. And so what we need to do is have 13 -- we'll talk about that presentation material on the 14 marketing plan. 15 MR. KING: Okay. Anything else on that item? Item 16 2E -- 17 MR. WALTERS: Are you back? Did you -- 18 MR. KING: Oh. We're back in session. Item 2E, 19 wildlife exhibit. What's that? 20 MR. McKENZIE: Okay. A local artist has offered to 21 place an exhibit in here of his work in our terminal 22 building, no cost to us. And if you'll look at your 23 brochure, the back of it, it's this big one back here that's 24 almost 5 feet long with the elk. And we'll set it out here 25 against this one vacant wall that we do have, and we'll put 73 1 some of his prints above that, and it will add to the motif 2 of our building, and as well as the hill country, and I think 3 it'll enhance the looks of our building. Like I say, I told 4 him we would do this for -- through hunting season, like, 5 till February, and let's see if it's -- 6 MR. MOSER: Which one is it? 7 MR. COWDEN: Have you had -- do we have some kind 8 of written agreement with -- 9 MR. KING: If it gets stolen, broken? 10 MR. McKENZIE: And I told him, I said, "You're on 11 your own with this stuff." And so we've not charged John 12 Dormer anything since this building was built -- 13 MR. COWDEN: I think it's a good idea. 14 MR. McKENZIE: -- to put his paintings around here 15 that are for sale. 16 MS. BAILEY: We need some kind of agreement, hold 17 harmless. 18 MR. McKENZIE: Okay. 19 MS. BAILEY: If it's damaged -- 20 MR. LIVERMORE: But you will have an agreement with 21 him as to his responsibility? 22 MR. McKENZIE: I can, sure. 23 MR. KING: Yeah. Not "can." We need. If those 24 things walk off here, I don't want him coming back to us. 25 Those things are not cheap. I don't know -- 74 1 MR. LIVERMORE: They're beautiful. 2 MR. KING: -- what he gets for that stuff. Come up 3 with some sort of simple -- 4 MR. COWDEN: Hold harmless or something. 5 MR. KING: Do what? 6 MR. COWDEN: Hold harmless. 7 MR. KING: Yeah, some sort of deal. If it falls on 8 somebody, we're not responsible. 9 MR. LIVERMORE: Can -- without getting it 10 over-lawyered, can you -- could we get that done right on the 11 hold harmless? 12 MS. BAILEY: Yeah, I can do that. 13 MR. KING: And just -- yeah, in case it walks off. 14 MR. MOSER: One -- one comment. If he could -- 15 does he have anything native, as opposed to elk? 16 MR. McKENZIE: Well, this is the one that he's got 17 available to bring out here. Now, we what we can do, if we 18 choose to do this continuing, then we can put different 19 displays. He can put these bighorn sheep up. I mean, this 20 is just -- he's got rooms full of this stuff. 21 MR. MOSER: Yeah. All I'm saying is what you just 22 touched on. There is whitetail. We don't grow too many elk 23 around here. 24 MR. McKENZIE: He just -- he offered the elk 'cause 25 it's a bigger, more stunning display. 75 1 MR. MOSER: I think it's wonderful. 2 MR. LIVERMORE: Once we start doing this, we're 3 going to have other local artists come. We need to have a 4 standard -- 5 MS. BAILEY: A policy. 6 MR. LIVERMORE: -- a standard agreement to go 7 forward. 8 MR. MOSER: Good point. 9 MR. McKENZIE: So, is it your wish to let him do it 10 till first of March, for example? 11 MR. LIVERMORE: Yes. 12 MR. McKENZIE: And then we'll revisit the issue. 13 MS. BAILEY: I'll get some kind of agreement 14 drafted. 15 MR. KING: Put in there we got the right to blow it 16 out of here if we don't like it, okay? 17 MR. WALTERS: We can terminate it. 18 MR. LIVERMORE: We need to also -- in that 19 agreement, we maintain the approval of the content. 20 MR. KING: Yeah. 21 MR. LIVERMORE: So we don't get strange things in 22 here that -- 23 MR. KING: Or if it's too big -- it's not too big, 24 is it, Bruce? 25 MR. McKENZIE: It's almost 5 feet long, and it's 76 1 about -- 2 MR. KING: Where are you going to put it? 3 MR. McKENZIE: On that wall next to the men's 4 restroom. There's a big painting up there now. We're going 5 to move the painting. 6 MR. WALTERS: Is it sitting on a pedestal? 7 MR. McKENZIE: Yes, sir. 8 MR. KING: Kind of in the corner? 9 MR. McKENZIE: No, it's right before you get to the 10 men's restroom door. It's that wall. Then there will be 11 prints up on the wall. 12 MR. COWDEN: It will be nice. 13 MR. LIVERMORE: I think it will be lovely. 14 MR. KING: Does he want to pay us anything? 15 MR. McKENZIE: He said he would, but he'd rather 16 not. 17 MR. KING: Oh, pursue that. (Laughter.) 18 MR. MOSER: But he's a local guy? 19 MR. McKENZIE: Yes, sir. 20 MR. KING: Naming rights to the building. 21 MR. COWDEN: He's the guy that did the cross up on 22 the hill. 23 MR. MOSER: Oh, is he? 24 MR. KING: Do we need to vote on it? 25 MR. COWDEN: The cross up on the hill behind Cecil. 77 1 MR. LIVERMORE: He did that? 2 MR. McKENZIE: He's the one that designed it. 3 MR. COWDEN: Designed the cross. 4 MR. KING: Do y'all want to vote on that? 5 MR. MOSER: I don't think -- I think Bruce can -- 6 MR. KING: Bruce, you can take care of it. Okay. 7 Item 2F, building/property lease terms, Airport Board. We -- 8 we want to talk about that? We'll talk about it in executive 9 session. What do you think? We're just going to talk about 10 a couple things. I don't know if we'll even have it on 11 there. Item 2G, discuss salaries and benefit differences in 12 the Airport Board budget recommended by Airport Board and 13 that which has been approved by the City/County. Airport 14 Board. We'll talk about that in executive session. 15 MR. MOSER: I think we make that just part of our 16 budget we're going to resubmit. That's the right way to do 17 it. We're going to redo the budget, so that's -- that should 18 be included in that. Has to be included in that. 19 MR. KING: Right. 20 MR. MOSER: So, no action. 21 MR. KING: Well, unless you want to go in executive 22 session. 23 MR. MOSER: No, that's okay. 24 MR. KING: Okay. Item 3A -- Item 3, 25 Information/Discussion. Concrete -- I want to see what this 78 1 was. What's rip rap? 2 MR. McKENZIE: It's concrete. 3 MR. MOSER: Busted up concrete. 4 MR. McKENZIE: We're going to pour a solid concrete 5 wall just east of the T-hangars down here on the air side, 6 right on the apex of that curve down towards the new concrete 7 ditch, because the erosion has already begun there. And I 8 asked Harry Lorton if we could get that fixed. 9 MR. LIVERMORE: We haven't had any rain. 10 MR. McKENZIE: Well, the little rain we had, I can 11 see it's going to be a problem. And they agreed to do that, 12 so we've been about four months in the planning stages in 13 designing that, so we're there now. We should start on the 14 24th. We're scheduled to start on the 24th, and it should 15 last about two and a half weeks. 16 MR. COWDEN: That's what you were talking about, 17 the $70,000? 18 MR. McKENZIE: Yeah, down here. Yes, sir. 19 MR. MOSER: Is that the rip rap you're talking 20 about? 21 MR. McKENZIE: Yes, that's the rip rap -- concrete 22 rip rap poured on the wall. 23 MR. MOSER: I thought it was that pile of concrete 24 sitting out here. 25 MR. McKENZIE: There's two different definitions, 79 1 but -- 2 MR. MOSER: Yeah, right. 3 MR. McKENZIE: -- in construction terms, "rip rap" 4 is the solid wall. 5 MR. MOSER: Okay. Okay. 6 MR. McKENZIE: But they will not need to get on the 7 air side except just minimally. We're going to pour it from 8 the outside -- 9 MR. MOSER: Okay. 10 MR. McKENZIE: -- with a truck. We just have to 11 build the forms from the inside. 12 MR. KING: Who's paying for that? 13 MR. McKENZIE: We got it included in our project. 14 MR. KING: Okay. Item 3B, another Bruce deal. 15 MR. McKENZIE: I asked them to, and they agreed. 16 MR. KING: Item 3B, Stieren hangar. 17 MR. McKENZIE: George is -- as you've seen in the 18 weekly reports the last two weeks, they are erecting the 19 steel. They're about completed with that phase of it. 20 They'll start putting the steel on the side of -- the 21 sheeting on side of the building; so it's going to start 22 slowing down considerably now that they're -- 23 MR. KING: When do you think he's going to be 24 finished with that? 25 MR. McKENZIE: Probably another 45 days, he should 80 1 be able to move in. 2 MR. KING: Okay. 3 MR. WALTERS: Start paying rent. 4 MR. McKENZIE: He's already given us a check, 5 before I let him break ground. 6 MR. MOSER: Don't you do your developments that 7 way? 8 MR. LIVERMORE: Can -- are we through with the 9 Stieren point? 10 MR. KING: Yeah, I guess. 11 MR. LIVERMORE: Am I allowed to bring up a comment 12 about the weekly report that -- Bruce mentioned it. I don't 13 know if -- it's not on the agenda. 14 MR. COWDEN: I think in conjunction with the 15 Stieren hangar, you can do it. 16 MR. McKENZIE: It's in the weekly reports. 17 MS. BAILEY: As long as you don't deliberate on 18 anything, you can -- 19 MR. MOSER: Speaking of the weekly report... 20 MR. KING: It was in there. 21 MR. COWDEN: That's how we know about it. 22 MR. LIVERMORE: Well, all I'm going to say is that 23 I think the weekly report has -- has increased in its 24 quality, increased in the information substantially that 25 we're sending out. And what I like is that it is beginning 81 1 to paint a picture of the dynamism that is happening at this 2 airport, and there's a lot of things going on, and we're 3 talking with people about it. And, Bruce, you're getting 4 there with it. 5 MR. McKENZIE: Thank you. 6 MR. KING: Thanks, Ed. 7 MR. LIVERMORE: Keep going. 8 MR. KING: Item 3C, master plan final draft. 9 Bruce? 10 MR. McKENZIE: As I previously mentioned, as Tom 11 has asked about, sometime, Perry said, around Thanksgiving, 12 we should receive the final draft of our master plan, minus 13 the marketing plan. It should come in at that point. 14 They're diligently working toward that goal. 15 MR. KING: Okay. 16 MR. McKENZIE: And one more, just, item that is not 17 on here. The MAPA Fly-in starts Thursday, Mooney Aircraft 18 Pilots Association, and I will be closing 3/21 from Thursday 19 through the -- through Sunday. We're going to park them up 20 and down that runway. 21 MR. KING: Does the Chamber know about that? 22 MR. McKENZIE: We e-mailed -- 23 MR. KING: Why don't you gave the Chamber a call, 24 be sure they know about that, in case they want to send 25 anybody out here. 82 1 MR. McKENZIE: Okay. But just so the board knows, 2 we're going to close 3/21. We'll put the X's up, we'll kill 3 the lights at night, and the PAPI's, so the runway will be -- 4 won't be useful at night either. 5 MR. KING: Okay. 6 MR. McKENZIE: And there -- we don't know how many 7 airplanes we're going to get this time. 8 MR. LIVERMORE: How many airplanes can you handle 9 here for a big fly-in? 10 MR. McKENZIE: We've had upwards of 300 out here 11 before, when Mooney was -- in the past, parked up and down 12 that ramp out there. And -- no, not the ramp; the runway. 13 You know, well over 200. 14 MR. KING: He said the air show was here a long 15 time ago. 16 MR. McKENZIE: We had an air show. 17 MR. KING: There was a lot of airplanes. 18 MR. McKENZIE: There was a lot of airplanes here 19 for that. 20 MR. KING: Okay. 21 MR. McKENZIE: Thank you. 22 MR. KING: Anybody have anything else? All right. 23 That concludes the meeting. Do we want to go in executive 24 session? We need to talk about something. We need to visit 25 on a couple things that we cannot discuss in that budget 83 1 session. 2 (The open session was closed at 10:10 a.m., and an executive session was held off the record.) 3 - - - - - - - - - - 4 MR. KING: We went into executive session under 5 Item 2G -- under 2G, under Section 551.074 of the code, under 6 personnel matters. Okay. We went in at 10:10, and we came 7 out at 10:48, and we're now back in open session, and on Item 8 2G in open session. Do we want to take any action on that? 9 MR. WALTERS: No action. 10 MR. KING: No action will be taken on 2G. 11 Therefore, I need a motion to adjourn. 12 MR. WALTERS: Motion to adjourn. 13 MR. COWDEN: Second. 14 MR. KING: All in favor? 15 (The motion carried by unanimous vote, 5-0.) 16 MR. KING: 5-0. 17 (Airport Board meeting was adjourned at 10:50 a.m.) 18 - - - - - - - - - - 19 20 21 22 23 24 25 84 1 STATE OF TEXAS | 2 COUNTY OF KERR | 3 I, Kathy Banik, official reporter for Kerr County, 4 Texas, do hereby certify that the above and foregoing is a 5 true and complete transcription of my stenotype notes taken 6 at the time and place heretofore set forth. 7 DATED at Kerrville, Texas, this 19th day of October, 8 2011. 9 _______________________________ Kathy Banik, Texas CSR # 6483 10 Expiration Date: 12/31/12 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