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COMMISSIONERS COURT
Special Session
November 23, 1998.
9:00 a.m.
Commissioners Courtroom
Kerr County Courthouse
Kerrville, Texas
PRESENT: ROBERT A. DENSON, County Judge
H. A. "BUSTER" BALDWIN, Commissioner Pct. 1
T. H. "BUTCH" LACKEY, Commissioner Pct. 2
JONATHAN LETZ, Commissioner Pct. 3
BRUCE OEHLER, Commissioner Pct. 4
~'~ pf B.18~BiiME ~ `~'a~
.MEEKER
Clerk Court, Kerr County, Texas
B . pePutY
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I N D E X
PAGE
1.1 Pay Bills 3
1.2 Hudget Amendments
1.3 Late Bills
1.4 Approve and Accept Monthly Reports
2.1 Concept plan - Vista Ridge Subdivision
2.2 Interlocal Agreement - Mental Health &
Chemical Dependency Commitments - Hidalgo Cty
2.3 County-sponsored contracts with Big Brothers
~ Sisters and Kids' Advocacy Place, Inc.
2.4 December 24th holiday
2.5 Resolution approving, submission of grant
application - 216th Narcotics Task Force
2.8 Right-of-Way agreement with City of Kerrville
- sewer line to airport
2.9 Task Force for Mooney Aircraft questions
2.6 Renewing contract with Dain Rauscher
2.7 Financing arrangements for courthouse remodeling
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On Monday, November 23, 1998, at approximately 9:00
o'clock a.m., a Special Session of Commissioners Court was
held in the Commissioners Courtroom, Kerr County Courthouse,
Kerrville, Texas, and the following proceedings were had in
open court:
JUDGE DENSON: Okay. It's about just a minute or
so after 9:00. It's November 23rd, 1998. We have a special
Commissioners Court meeting and agenda to take care of this
morning. First we'll have our invocation. Commissioner
Baldwin's in charge of that, followed by a pledge of
allegiance. If you'll please stand.
(Prayer and pledge.)
JUDGE DENSON: Thank you very much. I understand
the Auditor is running a little bit late this morning, so
he's not going to be here to take up some of those matters
that he usually deals with. I guess we could pay bills,
unless we have questions that would be directed at the
Auditor. Do we have questions about the bills? Anyone?
COMMISSIONER BALDWIN: Judge, I do not.
JUDGE DENSON: Okay.
COMMISSIONER BALDWIN: I'd like to make a motion
that we pay these bills.
COMMISSIONER LACKEY: Second.
JUDGE DENSON: And that includes indigent health.
COMMISSIONER BALDWIN: Yes, sir.
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JUDGE DENSON: All right. I've got a second by
Commissioner Lackey. Further questions? Comments? All in
I favor?
(The motion was carried by unanimous vote.)
COMMISSIONER BALDWIN: Let's see. We're in our
second monthly budget. We don't have amendments yet?
COMMISSIONER LETZ: We have two.
COMMISSIONER BALDWIN: Oh, there are?
COMMISSIONER LACKEY: Yeah, there's two in there.
COMMISSIONER OEHLER: $9.07 to move into County
Water Rights(?) out of Commissioners Court Contingency?
JUDGE DENSON: Correct.
COMMISSIONER BALDWIN: I would assume that these
are bills from last year's budget just kind of transferred
over? Do we do that? Why would we --
COMMISSIONER OEHLER: I think this is probably a
shortfall budget because of having to apply for a water
permit.
COMMISSIONER BALDWIN: Second.
COMMISSIONER OEHLER: We do that annually. You
have to pay for your permit -- pumping permits to get water
for your road. Looks like there was a $4.07 shortfall, to
me.
COMMISSIONER BALDWIN: So, it's just that time of
the year that we pay those kind of --
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COMMISSIONER LEfiZ: Right.
JUDGE DENSON: Right.
COMMISSIONER OEHLER: i move that we approve Budget
Amendment Number 1.
COMMISSIONER BALDWIN: Second.
JUDGE DENSON: Further questions? Comments? All
in favor?
(The motion was carried by unanimous vote.)
JUDGE DENSON: All right. Number 2? That's your
Indigent Health.
COMMISSIONER OEHLER: Well, that's only because we
don't have anybody collecting taxes yet. We have to take it
out of Reserve to pay it. Tax money will reimburse it. I
move we approve Budget Amendment No. 2.
COMMISSIONER BALDWIN: Second.
JUDGE DENSON: Further questions? Comments? All
in favor?
(The motion was carried by unanimous vote.)
JUDGE DENSON: Okay. Tommy, we lust discovered, by
going over these budget amendments without your presence,
that in next year's budget we can reduce your salary
somewhat.
MR. TOMLINSON: Okay.
JUDGE DENSON: You're not needed like we always
thought you were.
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MR. TOMLINSON: 'Sorry I'm late.
COMMISSIONER BALDWIN: Second.
JUDGE DENSON: Okay. Do you have any late bills?
MR. TOMLINSON: No.
JUDGE DENSON: We did pay the bills and we approved
the two budget amendments that had previously been given to
us. Do we have monthly reports?
COMMISSIONER LACKEY: Yeah.
COMMISSIONER BALDWIN: Sure do.
JUDGE DENSON: We need to take care of them this
morning. We're not going to have an opportunity to do it
this afternoon. Do I have a motion to accept and approve
monthly reports?
COMMISSIONER LACKEY: So move
COMMISSIONER LETZ: Second.
JUDGE DENSON: Further questions? Comments? All
in favor?
(The motion was carried by unanimous vote.)
JUDGE DENSON: Okay. At the top of the agenda,
2.1. Consider and discuss concept plan proposed for -- for
proposed subdivision of Vista Ridge Subdivision off State
Highway 173. I guess Franklin Johnston is going to talk
about this?
MR. JOHNSTON: Good morning.
JUDGE DENSON: Good morning.
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MR. JOHNSTON: Commissioner Lackey and I were out
last Thursday, I think, and looked at this. All the lots are
above the minimum; they're all 3 to 5 acres, 6 acres.
They're going to build a road, which will be a public road,
to County standards. And I don't see any problem with it.
COMMISSIONER LACKEY: They went to a lot of
trouble. They've already met with the Highway Department,
911, U.G.R.A. They've met with everyone and got approval on
all of it, so I make a motion that we accept this --
JUDGE DENSON: Concept plan.
COMMISSIONER LACKEY: -- concept plan.
COMMISSIONER LETZ: Second.
COMMISSIONER LACKEY: This is the gentleman right
here.
COMMISSIONER BALDWIN: Mr. Dean.
JUDGE DENSON: Okay.
COMMISSIONER BALDWIN: Do you think we could reduce
his salary, by any chance?
COMMISSIONER LACKEY: Yeah, he's late. We could.
JUDGE DENSON: Okay. We've got a motion and a
second to approve -- approve the concept plan for Vista Ridge
Subdivision. Questions? Comments? Anyone?
COMMISSIONER LETZ: I have a question. What
happens here with that road -- are we just missing a little
piece?
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COMMISSIONER LACKEY: Well, that's going to be
changed lust a little. They're going to cut it a little bit
shorter and that land will go back into the first two lots on
the left there.
MR. JOHNSTON: He was explaining -- I think the
road's going to go up between these two 3.4-acre lots, kind
of make a T at the top.
COMMISSIONER LETZ: Okay.
MR. JOHNSTON: Instead of going off to the side.
And they're going to do a drainage study down in the valley,
which would affect those two lots toward the bottom. Make
sure there's, you know, adequate drainage.
COMMISSIONER LACKEY: How come you didn't get a
pretty colored copy?
COMMISSIONER OEHLER: I have no idea.
COMMISSIONER LACKEY: You didn't get one either?
COMMISSIONER LETZ: No.
COMMISSIONER BALDWZN: Must be this end of the
table.
MR. DEAN: I gave Lee 10 of them, so --
JUDGE DENSON: Okay. All in favor?
(The motion was carried by unanimous vote.)
JUDGE DENSON: Thank you. 2.2, approval of
interlocal agreement for mental health and chemical
dependency commitments, Kerrville State Hospital, between
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Kerr County and Hidalgo.
COMMISSIONER BALDWIN: Standard contract, huh?
JUDGE DENSON: Yes, sir.
COMMISSIONER BALDWIN: I move we approve.
COMMISSIONER LETZ: Second.
JUDGE DENSON: That's authorize County Judge to
sign same. Okay. All in favor?
(The motion was carried by unanimous vote.)
JUDGE DENSON: 2.3, consider and discuss approving
County-sponsored contracts between Kerr County and the
following, and authorize County Judge to sign same. Big
Brothers and Sisters, and Kids' Advocacy Place, Inc.
COMMISSIONER BALDWIN: Standard contract?
JUDGE DENSON: Yes, sir, far as I know.
COMMISSIONER OEHLER: So moved.
COMMISSIONER BALDWIN: Second.
JUDGE DENSON: Further questions? Comments? All
in favor?
(The motion was carried by unanimous vote.)
JUDGE DENSON: Okay. 2.9, consider and discuss
declaring December the 29th, 1998, a holiday. Commissioner,
Precinct 1.
COMMISSIONER BALDWIN: Gentlemen, you see in the
packet here a note that I had received from an elected
official in the courthouse requesting this. And, it says in
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I here that the District Cl'erk's office -- "four of the seven
of us have families out of town and plan to be with those
families." And, of course, she takes a shot, bashes
Commissioners Court a little bit here, but -- so, I have gone
around the courthouse to find out if anyone else is
interested in the 29th, and we have a small petition here
that says, "We, the undersigned Kerr County employees,
respectfully request the Commissioners Court to grant
December 29th as a holiday," and it signed by a bunch of
folks, and your -- and I was the first one to sign it. It's
my opinion, being a Christmas person, that we have some folks
here that do some traveling and need to travel, drive to
Dallas or Houston or wherever, to wrap presents and bake, and
it's just an extreme inconvenience for our employees to get
out of here late on Christmas Eve and to drive to Dallas and
make those pecan pies. So --
(Discussion off the record.)
JUDGE DENSON: She needs to take down whatever
we`re saying.
COMMISSIONER BALDWIN: The -- so, that's our
request, is that we amend the original list and include
December 24th as a holiday. Is that the day -- is that the
day that we have our Christmas party here?
JUDGE DENSON: Yes. Traditionally, yes.
COMMISSIONER LETZ: Personally, I'm only in favor
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of doing that if we give up another holiday. I don't think
we can just go --
COMMISSIONER BALDWIN: Well, let me say this. How
many holidays do we have -- do we have right now?
MS. NEMEC: Twelve.
COMMISSIONER BALDWIN: Twelve. And last year there
was 13. Last year was 13, so the year that we're under right
now, we've cut it down to 12, so if we -- if we include the
29th in here, we're just simply back up to where we've always
been.
COMMISSIONER LETZ: How did we lose a holiday?
M3. NEMEC: We took the -- I mean, 'cause the 29th
is a working day now. See, last year, I think the 29th and
the 25th were given as holidays, or -- no, the 25th and the
26th.
JUDGE DENSON: Right.
M3. NEMEC: So, this year only the 25th was given,
because last year the 25th was on a Thursday and the 26th was
on a Friday.
JUDGE DENSON: And that is correct. And we did
that for the same reasons that Commissioner Baldwin is
talking about now. However, that was my -- at my
encouragement last year that we gave that date, because
people that were out of town celebrating Christmas would have
to travel Christmas Day, itself, to return to work that
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Friday, the 26th, because'it was not a holiday. And because
of those exceptional circumstances, we gave the 26th.
Gentlemen, I'm not opposed or -- I don't object or I'm
not in favor of this, either way. But I have heard -- and I
know this isn't strictly budgetary. But I've heard a lot of
members on this Court talk about, you know, why we set down a
budget and go through all that and then change it during the
year. Every year we approve the budget, we discuss these
holidays. We discussed them this year and we had a 12-month
calendar in front of us. And, we -- and also at that time,
the public, if they want to comment on holidays, that's the
opportunity for them to come forward at a public meeting and
voice their opinions. We chose to make a decision on a
published list of holidays. And now, for some reason, I
guess because of the initiation of the District Clerk, we
want to change those things.
I think the reason for the change that Commissioner
Baldwin has brought up is a good reason, but I do want to
elaborate a little bit more. For years and years -- I know
it goes back 20 years, since I've lived here; I don't know,
under Julius Neunhoffer on forward, that they had a Christmas
party and would feed the employees -- the Commissioners Court
would more or less produce or -- or come up with a party,
like we did last year, on the 24th usually, I believe it is,
depending on how the calendar falls, but at some point in the
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-- just previous to Christmas. And, on that day, while it's
not a published holiday, the 29th, once that Christmas party
is over, this house becomes a tomb. I mean, there are a few
people in the departments. I think some of them actually
lock up; but that, in effect, becomes a holiday, itself.
This year -- if we decide to give the 29th as a holiday this
year and we want to stick with tradition and having the
Commissioners Court lunch, that's going to have to fall on
the 23rd, and we're going to be giving the 23rd as a holiday,
effectively, also. So, I think we all should keep these
things in mind when we make a decision today. I think -- did
Linda say she was going to close her office anyhow?
COMMISSIONER BALDWIN: I didn't hear you.
JUDGE DENSON: Did the District Clerk say she was
going to close her office?
COMMISSIONER BALDWIN: No, she didn't.
JUDGE DENSON: I've heard that talk around the
courthouse.
COMMISSIONER BALDWIN: You have the note here in
your packet of -- that I'd received.
COMMISSIONER OEHLER: Well, I don't believe,
necessarily, if we have the party on the 23rd, that
everybody's going to close their office after noon.
COMMISSIONER BALDWIN: The 23rd?
COMMISSIONER OEHLER: I don't believe they're going
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to close their office. I believe they'll go back to work.
COMMISSIONER BALDWIN: I agree.
JUDGE DENSON: What's been happening in the past --
COMMISSIONER OEHLER: Yeah, I know, but it usually
falls on Christmas Eve, not on the 23rd, which is two days
prior to Christmas. And I don't think you're going to get
that kind of -- I don't believe most of these elected
officials are going to do that. In fact, I don't feel like
any one of them would.
JUDGE DENSON: If you give the 24th off and you
have that Christmas party on the 23rd at noon, I think human
nature -- it's just my guess, and I guess your guess is that
you're going to lose about half the employees in the building
after they eat. Now, and that's not going to be by an
uprising; that's going to be by consent of the elected
officials, skeleton crews or whatever. While the employees
and the elected officials and everybody that works in County
government -- it's important that we think of our benefits
and all, I think the most important people -- and I'm not
trying to get on a soapbox -- are those people out there in
the public that want access to the courthouse for services.
And when we start giving holidays, particularly on days that
maybe members of the public would otherwise have access to
the courthouse, we're getting close to making poor judgment.
But, there are four of y'all to vote. You probably won't get
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a vote out of me. Like I say, I'm not going to oppose or
agree on this. I thought we did that back in September.
COMMISSIONER BALDWIN: Judge, the only reason I'm
supporting it is -- is for the children. And --
JUDGE DENSON: The ones that came about since we
put it in place?
COMMISSIONER BALDWIN: That's right. It's those
children that we -- you know, you feel my pain here.
JUDGE DENSON: You're saying that like our
president.
JUDGE DENSON: It does sound a lot like it, too.
Just think of the grandmothers that we have as employees in
this courthouse, to drive -- some of them, alone -- all the
way to their little grandchildren, and then begin to prepare
for Christmas. Those pecan pies, wrapping those gifts, you
know. That's the -- that's the spirit of America, and Kerr
County.
JUDGE DENSON: Well, you know, maybe what we really
should do, then, if we want to be --
COMMISSIONER OENLER: Are you going to furnish
Kleenex with this?
JUDGE DENSON: -- if we really wanted to represent
the taxpayer properly on this, we should -- a petition should
reflect those people that are going out of town and those
that are not. Those are not could work for the taxpayers and
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those that are --
MR. TOMLINSON: Can't we compromise and have --
have a party on, kind of, the 29th, and close at noon?
COMMISSIONER BALDWIN: That's really what I'd like
to do.
JUDGE DENSON: And that`s, effectively, what we do,
but --
MR. TOMLINSON: Officially.
COMMISSIONER BALDWIN: Do it officially?
JUDGE DENSON: They do it officially?
MR. TOMLINSON: Yeah.
MS. NEMEC: We're not going to get any work done
that day, anyway.
JUDGE DENSON: That's right.
MS. NEMEC: So why not have a party on the -- on
Monday, so nobody will leave early?
JUDGE DENSON: Now, that's --
MS. NEMEC: And we all celebrate Christmas together
and we still have to come back to work, and that way we get a
full day out of people on Wednesday. Monday or Tuesday, have
the party.
JUDGE DENSON: That's a good strategy.
COMMISSIONER BALDWIN: That's not a bad idea.
MS. NEMEC: It's a lot of last-minute things to get
done, anyway, for all of us to have a party right before
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Christmas, anyway. So, let's have it earlier during the
week, and that way everybody works a full day on Wednesday.
COMMISSIONER BALDWIN: We pay for that out of our
pockets?
JUDGE DENSON: Traditionally, that's what --
COMMISSIONER BALDWIN: Or we pay for everything
else?
MS. NEMEC: The meats.
JUDGE DENSON: All the people -- elected officials
and everyone, they bring the covered dishes. Commissioners
Court has always chipped-in to buy the meat, and Bruce has
been barbecuing or whatever.
COMMISSIONER OEHLER: Frying. You want turkey or
beef this year?
COMMISSIONER BALDWIN: That's a good idea. Monday
or Tuesday, have the actual -- we're really not -- we're
off-base here.
MS. NEMEC: Well, because what happens if you have
it on Christmas Eve, then a lot of people are going to say,
Well, I'm not going to get any work done, anyway, so I'll
just take half a day of vacation, and so then you end up
having a skeleton crew in your office, anyway.
COMMISSIONER LETZ: Isn't Monday Commissioners
Court?
COMMISSIONER BALDWIN: Isn't Monday Commissioners
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MS. NEMEC: Yes.
COMMISSIONER OEHLER: There's not going to be much
business going on. Surely we could do it that day.
COMMISSIONER BALDWIN: We could do it.
MS. NEMEC: That afternoon, maybe?
COMMISSIONER OEHLER: At lunch.
COMMISSIONER LETZ: We have business --
COMMISSIONER OEHLER: Either that, or we could --
no, lunch would be better.
COMMISSIONER BALDWIN: I remember -- you know, I
think we do need to change it, 'cause I remember last year,
we had at the party Wednesday, almost all County employees
were here to celebrate and share in the time of -- of
goodness and -- but except for the Sheriff's Department.
There wasn't one Sheriff`s Department --
JUDGE DENSON: The Sheriff did come, I think, for a
few minutes.
COMMIS3IONER BALDWIN: I missed that, I'm sorry.
But, maybe if we moved it to another day, it would be easier
for them to come by, 'cause I really would like to see them
with us.
JUDGE DENSON: Well, there's always a few, like the
Sheriff, herself, and I think Brad may have come and a couple
people. Hut they have their own Christmas party. They do a
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thing on their own.
COMMISSIONER BALDWIN: We could go out there.
JUDGE DENSON: Well, I'm sure you'll get invited.
COMMISSIONER BALDWIN: Okay, I'm through.
COMMISSIONER LETZ: Make a motion. What do you
want to do?
JUDGE DENSON: Let's reconsider what Tommy said.
Tommy, I think, had an excellent idea as far as addressing
the issue that we're talking about. On the 24th, have our
little party and officially declare at noon, the courthouse
closes.
COMMISSIONER BALDWIN: Second. That's a pretty
good motion, Judge. I couldn't word any any better myself.
COMMISSIONER LETZ: i thought you weren't going to
vote.
JUDGE DENSON: I haven't voted.
COMMISSIONER BALDWIN: I move that we declare
December 24th, from 12 noon on, a holiday.
COMMISSIONER LETZ: Second.
JUDGE DENSON: Further questions? Comments? All
in favor?
(Commissioners Baldwin, Lackey, and Letz voted in
favor of the motion.)
JUDGE DENSON: Where are you?
COMMISSIONER OEHLER: I'm opposed. I think you
ought to have the whole day.
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COMMISSIONER BALDWIN: I agree.
COMMISSIONER OEHLER: That's not what you voted on.
COMMISSIONER BALDWIN: No, but I was just getting
something.
JUDGE DENSON: Judge-elect Hennecke?
MS. NEMEC: What would you have done?
JUDGE DENSON: No. But I just -- this is -- it's
good that you're present, because this seems to have happened
a number of times during my term, is that we wrestle with a
calendar back in -- in September, when we establish budget,
and that book is placed down here at the County Clerk's
office with a proposed holiday schedule in it for members of
the public to complain, because there's a couple of days
during the year we have gotten some complaints where we're
closed on a -- one of these sort of unusual-type holidays, I
don't know.
COMMISSIONER OEHLER: Texas Independence Day.
JUDGE DENSON: But -- and people don't have access
to the -- to the courthouse. But, my point is, y'all ought
to sit down as group during September and look at the year
and look how these things fall on Christmas and such, and,
you know, make your decision and stick with it. This
changing during the course of the year is what I don't
particularly enjoy.
COMMISSIONER BALDWIN: Of course, Judge Hennecke's
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proposition of having some nighttime meetings may answer some
of that, too.
COMMISSIONER OEHLER: I have one question. When is
the dinner going to be?
JUDGE DENSON: I don't know. To me --
COMMISSIONER OEHLER: Or are we going to have a
dinner?
JUDGE DENSON: To me, the dinner is really sort of
taking a back seat to all of this. You know, you want to
have some kind of abbreviated-type of deal?
COMMISSIONER OEHLER: Doesn't matter to me.
JUDGE DENSON: Chips and dips? Or --
COMMISSIONER OEHLER: Doesn't matter to me.
MS. NEMEC: I think if have you a dinner on the
29th, you're going to have to start early, 'cause once
12 o'clock comes, everybody's going to be gone. They're not
going to sick around to eat here.
COMMISSIONER BALDWIN: What about all this
fellowship I lust got through preaching about?
JUDGE DENSON: That's going to be out-of-town.
MS. NEMEC: They're going to fellowship somewhere
else, not here.
COMMISSIONER BALDWIN: They're in Dallas cooking
pecan pies.
COMMISSIONER LETZ: We could do the luncheon still
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on Monday.
MS. NEMEC: That's when we should have had the
lunch, on Monday. We should have had the party on Monday and
just had a full day off on Thursday.
JUDGE DENSON: I don't know. Y'all will hear in
the Commissioners Court. We'll just -- that will depend on
whether Bruce wants to took and do whatever.
COMMISSIONER OEHLER: Oh, yeah, put on it me.
JUDGE DENSON: No. I mean --
COMMISSIONER OEHLER: I'd love to. It'll be the
last time for me. Somebody else gets this iob later. I've
done it every year, I guess I ought to finish out with it.
You know, hot ring of sausage or something.
JUDGE DENSON: Well, do y'all want to try and come
up with a plan right now?
COMMISSIONER LETZ: That would be my preference.
JUDGE DENSON: And if we do, I don't know, let's do
something real simple.
COMMISSIONER OEHLER: I've got a bunch of fresh
sausage and stuff that just got back, and I can do some of
that. We can do a little fried turkey or buy smoked turkey
or something like that, bring a covered dish and let's do it.
COMMISSIONER BALDWIN: When?
COMMISSIONER OEHLER: Monday.
COMMISSIONER BALDWIN: Monday.
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COMMISSIONER OEHLER: I don't want to come back
Tuesday after a meeting.
JUDGE DENSON: He has a holiday, see, the remainder
of the week.
COMMISSIONER OEHLER: You bet I do.
JUDGE DENSON: Okay. What --
COMMISSIONER OEHLER: I'll be on vacation for a
long time, too.
JUDGE DENSON: What day is that? The twenty --
COMMISSIONER LETZ: First.
JUDGE DENSON: 21st?
COMMISSIONER LETZ: I believe.
COMMISSIONER OEHLER: Christmas on the 25th, right?
COMMISSIONER SALDWIN: It was last year.
COMMISSIONER OEHLER: I mean on Friday.
JUDGE DENSON: So it will be Monday, the 21st?
MS. NEMEC: It's the 21st.
JUDGE DENSON: We'll have some type of --
COMMISSIONER OEHLER: Lunch.
JUDGE DENSON: Some type of lunch, Christmas party.
The traditional Christmas party. Okay. 2.5, consider and
discuss resolution approving submission of grant application
for funding of 216th Judicial District Narcotics Task Force,
authorize County Judge to sign same. I saw Tommy Ryno back
there. Yeah, there he is. Tommy, how are you doing this
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morning?
MR. RYNO: Pretty good, sir.
JUDGE DENSON: Do you have a little piece that
you'd like to throw in on this, a comment?
MR. RYNO: Well, I don't. think I have anything
tremendously new to add. It's -- you know, the task force
has been around a long time now. It's kind of getting to the
point where, like an old captain told me one time when I
said, "Well, I don't know. He's been around a while; I don't
know if I can tell him anything he hasn't heard." And he
said, "Well, if I haven't heard it, I've probably used it."
Well, I think we're kind of to that stage. Everything is
pretty much the same as it has been on their grant
application. There's been a little bit of an increase, but
that's for some equipment and cost-of-living raises and such
as that, but everything else is -- our goals and missions and
all are the same as they have been.
I think the task force has been very productive in this
area over the years, and done a lot of good. It's -- you
know, it's an area -- sometimes we do have arrests and
seizures, but sometimes it's difficult to measure exactly how
well you're doing. But I think it's -- I think we're serving
also as a pretty good deterrent out there, lust knowing that
we exist and we could pop around the corner any time. And
we've got a bunch of great people over there. Most all of
24

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li~ you know them. And, of course, all of the officers are from
2 II! the surrounding areas, and we're working with DPS Narcotics,
3~`' we're working with the Sheriffs Department, Special
9 Operations, and as well as Drug Enforcement in some areas,
5 and I just -- like I've told all of you at one point or
6 another, I'm just proud to be a part of it.
7i And, kind of getting into this high-tech business that
8>`, we're into nowadays, a guy like me is doing well to hang on.
9~; But, we -- we've got a good group over there and we've got
10 some good equipment that we've accumulated over the years,
11 and, you know, we just, you know, appreciate the support that
12~ we got throughout all the counties, and especially from
13" y'all, and just hope that you feel like keeping us on board
19~: and supporting us.
15 r[ COMMISSIONER BALDWIN: Tommy, I have two questions.
16'~ I think that we just have an old -- old resolution here, just
17~j to show us what -- what's going on today. But, in here, the
18! amount is $675,000?
19 MR. RYNO: Yes, sir.
20 COMMISSIONER BALDWIN: That's an old number, isn't
21 it? That's not the number that --
22I MR. RYNO: No, that's the new number.
23~ COMMISSIONER BALDWIN: That's the new number.
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Okay, good. And then my second question is, how many County
employees are on your force now?
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MR. RYNO: I've gotten two.
COMMISSIONER BALDWIN: Two. Very good. That's
good, thank you.
COMMISSIONER LETZ: I move we approve the grant
application and authorize County Judge to sign same.
COMMISSIONER BALDWIN: Second.
JUDGE DENSON: You say you're starting to feel like
an old dinosaur?
MR. RYNO: Well, I tell you, this computer
business, this high-tech equipment, and I'm dust kind of
hanging on, hoping that they don't give me a test on all that
stuff in order to keep my gob. But, luckily, I got people
over there that know a lot more about it than I do.
JUDGE DEN30N: Well, we understand. A lot of us
find ourselves in the same position.
MR. RYNO: That is amazing, the drug enforcement
business that I've seen. And I don't want to get on any kind
of bill here, but I've been involved here in this County for
18 years, and I can see a tremendous change in the way we
handle the crimes, and -- and, of course, the bad news is the
crooks have gotten lust as sophisticated, so, you know, we've
had to keep up in order to keep up with them. But they --
they are getting wiser, and we're trying to get wiser ahead
of them. But, you know, television, itself, educates the
heck out of them, showing different cameras, and a lot of
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them are the types we do use and the way they do surveillance
on a lot of these police specials and all. And, plus, the
fact that's most aggravating is, you know, it's almost like a
revolving door. Some of them, in my career, I'm catching
them and their kids now, you know. And it's lust repeat,
every few years the same old ones pop back up. It's been a
-- you know, I really like this part of the country, and I
think that y'all know as well as I do the way this place is
growing, and the problems are going to grow with it. We're
just going to have to stay -- stay on top of it. And --
COMMISSIONER BALDWIN: Do you -- I'm sorry go
ahead.
MR. RYNO: No, I just --
COMMISSIONER BALDWIN: Do you have a number of -- a
value of contraband seized in the district, district-wide?
MR. RYNO: I don't have those figures with me, but
we do have all of that. I can get you a copy.
COMMISSIONER BALDWIN: I dust kind of wanted to do
it here in public, but it was a couple of million or
something last year?
MR. RYNO: It was quite a bit. And as -- and I --
and if y'all ever feel different, let me know, but I -- the
task force was formed in this area to fight the street-level
drugs. And, you know, we could go out and work all the time
on the interstate highway or we could, you know, channel in
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other directions, but I don't think that's why the community
wants the task force, and so, by its nature, most of our
seizures are kind of small; you know, one gram or less, or a
joint or two of marijuana or plant of marijuana. And
sometimes we do get the bigger ones, but, of course, we
compete with the border task forces, the ones that are down
on the border and the ones in the bigger cities. And,
naturally, they're getting multi-pounds, and sometimes even
tons of drugs and -- and money seizures and asset seizures,
which we -- we're just not in that category. And, channeling
our enforcement the way we do, we're probably not going to
get there unless we just stumble into something, but I think
think we're attacking the right area of the problem here in
our area.
COMMISSIONER BALDWIN: I agree.
JUDGE DENSON: Let's see. There's matching funds
that's mentioned on an attachment to this resolution -- and
I'm speaking only for informational purposes for the news
media; we have two members of the news media here -- where
Kerr County is providing 537,139, and the City of Kerrville,
531,852 as part of a match that's in this grant. City of
Ingram is kicking in $6,985, and then there's other cities
that -- within those counties of the region. It's been --
this has been going on since, what, Tommy, '88? '87?
MR. RYNO: '87.
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JUDGE DENSON: '87. We appreciate you coming down.
MR. RYNO: Thank y'all very much.
JUDGE DENSON: All in favor?
(The motion was carried by unanimous vote.)
JUDGE DENSON: Okay, let's see. The next item is
more or less a timed item. Mr. Henderson will be here, I
think, around 10:00 to speak with us on that, 2.6, and 2.7,
so I'll just pass on those for the time being and go to 2.8,
consider and discuss right-of-way agreement with the City of
Kerrville for sewer lines to airport. This is Commissioner
Letz.
COMMISSIONER LETZ: This is the current plan. I
think it's the final plan where the right-of-ways are, where
the sewer lines are going to be to go to the airport, north
side of Highway 27, and the agreement is to cover the
property. They're very -- the right of way is very narrow
right along where the fields are, so from Spur 100 to Third
Creek, they're probably going to want to put the sewer line
in on the property the Little Leaague has a lease from the
County. And, this is just to get a -- the easement
agreement, which is attached, which Tom Pollard has form-
approved. It's just to give the City that easement. And, I
told them that I hope that they have it done before Little
League opens up in March, so that we don't have kids running
out on the highway, and they said they would do their best to
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do that. Start out at Spur 100 -- or right in the VA area,
and go out towards the airport. And I signed it on behalf of
Little League. They asked that Little League sign it as more
of a courtesy.
COMMISSIONER OEHLER: So moved.
COMMISSIONER BALDWIN: Second.
JUDGE DENSON: Questions? Comments? All in favor?
(Judge Denson and Commissioners Baldwin, Lackey,
and Oehler voted in favor of the motion.)
COMMISSIONER LETZ: I'm abstaining, as the
president of the Little League league, also.
JUDGE DENSON: We_'ve got an abstention.
Commissioner Letz is abstaining. Make a note of that.
JUDGE DEN30N: Okay. 2, 9, consider and discuss
task force for ongoing Mooney Aircraft questions. I've put
this on the agenda based upon the memorandum I received from
Sherry Cunningham on the 18th of November, which is
self-explanatory. I thought that, being -- kind of being
responsive to her and to the Mooney people who have requested
this, we would put it on the agenda and discuss it. Of
course, we're at a close -- close proximity to a new term,
new Court and all, January the 1st. I've spoken with Judge-
elect Fred Hennecke about this matter, and his suggestion,
which I certainly would endorse, is appointing Bill Williams
as a member of this task force. I think there was some talk
about maybe you being on the airport board?
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MR. WILLIAMS: That's my understanding, Judge.
JUDGE DENSON: And, if that comes into being, then
you'd be an ideal person, I think, to work with the Mooney
people.
MR. WILLIAMS: Okay.
COMMISSIONER LETZ: Judge, just a little additional
information. We discussed this at the KEDF meeting, which is
kind of, I guess, the reason Sherry's kind of a go-between,
the point person to work with Mr. Dopp and Mooney. And I
think that one of the reasons they wanted it on now is they
would like to get this thing going before the first of the
year. And, I think that -- at least as I understand it, we
probably ought to have two members.
COMMISSIONER OEHLER: I agree with that. I think
Larry Griffin ought to be the other one.
COMMISSIONER BALDWIN: I agree.
COMMISSIONER LETZ: I think that the -- I mean,
from the standpoint of equality, if nothing else, the City,
in their memorandums, it has Mayor Low and Bill McRae. I
think we should have equal membership, equal partners in that
whole facility out there. I think one of the reasons for
this -- and this is not necessarily a whole lot to do with
the airport -- I mean, it's indirectly with the airport, but
the concept here is -- and where they're going with their
task force is that the buildings out there are in very bad
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shape of disrepair right now. Mooney is -- appears to, very
hopefully, have turned the the corner a little bit. They've
had a profit for three quarters now -- or three months,
actually. I qet carried away. Three months of profit. And,
they're trying -- I think they're trying to make a go of it.
But, this is a very specific problem that their task force is
going to address, which is going to be the facilities at
Mooney and how best to get City-County property upgraded with
the assistance of Mooney, hopefully, and hopefully there will
be grant funds.
And, I agree, I think Larry really needs to be a part of
this. I think his knowledge of aircraft, aeronautics, and
also a lot of his knowledge on state grants that are
available, is real important. So I think that will be -- you
know, I certainly support Larry, too. You know, that's my
only comments. Bill is fine with me. I'm sure there's a lot
of history that's gone on between KEDF and that board -- and
Mooney, rather, for the last -- you know, since I've been on
the Court, anyway, two years. Since KEDF -- that needs to
really be brought up before, you know, they go for those,
that we're going to have -- I lust mentioned to Bill to get
with me so we can go over that long history, because that
really paints, you know, part of the picture, I think, with
Mooney.
COMMISSIONER OEHLER: I believe those leases come
32
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2 COMMISSIONER BALDWIN: 2003, I believe.
3 JUDGE DENSON: I was going to say --
4 COMMISSIONER OEHLER: 2003?
5 COMMISSIONER LETZ: Before long. But there's also
6 an issue that I think -- well, I don't think, I know Cecil
7 Atkission is one of the members of this. A lot of the reason
8 KEDF asked him to serve is because of his knowledge of
9 aircraft. He feels there's a certain amount of liability
10 that goes, probably, towards the County because of the
11 quality of the buildings and aircraft being made in those
12 buildings, and that if we get them in too bad of shape, even
13 though there may be some -- there's a lot of pretty critical
19 issues to the County and the City and, certainly, Mooney.
15 And this is to come up with a game plan as to how to attack
16 those problems.
17 COMMISSIONER OEHLER: I'll move we appoint Larry
18 Griffin and Bill -- what's Bill's name?
19 JUDGE DENSON: Williams.
20 COMMISSIONER OEHLER: Williams, I'm sorry, to the
21 task force to state Mooney Aircraft problems and questions.
22 COMMISSIONER BALDWIN: I agree. What if -- what if
23 Larry absolutely refuses to do it?
24 COMMISSIONER OEHLER: He won't, because I've
25~~ already talked to him about it.
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COMMISSIONER BALDWIN: I second the motion. But if
he did, I'd like for Mr. Letz to do it.
COMMISSIONER OEHLER: He expressed a desire to do
this to me.
COMMISSIONER LETZ: I think that -- I mean, out of
every one that's going to be on the next Court, Larry's
probably the most important person to have on there, because
I don't know Paul Dopp, but from my understanding of him,
that Larry's knowledge of the industry and being able to talk
the language with Mr. Dopp will be of great assistance to the
County. Probably the same reason that Cecil Atkission is
also serving on this task force.
JUDGE DENSON: Okay. Further questions? Comments
on this subject? All right. All fn favor?
(The motion was carried by unanimous vote.)
JUDGE DENSON: We're out of things to do.
MR. HENNECKE: Sounds like a good time to take a
break.
JUDGE DENSON: 2.6 and 2.7, but we're waiting on
Bob Henderson, our financial adviser, and then at 11 o'clock,
as posted in accordance with the Open Meetings law, we have
an Executive Session.
COMMISSIONER BALDWIN: And, Judge, around
10 o'clock, you have an appointment -- not an appointment, a
short ceremony, very short swearing-in ceremony in this
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room, do you not?
JUDGE DENSON: That's correct, Gloria Anderson to
the 911 Board. So, let's take a break until 10 after 10:00.
(Recess taken from 9:95 a.m. to 10:20 a.m.)
JUDGE DENSON: Okay. It's 10:20, the 23rd of
November '98. We'll at this time take up 2.6 and 2.7, both.
I think we'll be discussing both at the same time, but I want
to introduce to the Court and everyone else that may not know
Mr. Henderson. Mr. Robert V. Henderson is Managing Director
of Dain Rauscher Incorporated. I think Mr. Henderson and
that organization has served as the financial advisers to the
County for what's been told to me to be approximately 12, 19
years. Our Auditor, Mr. Tomlinson, set a meeting between Mr.
Henderson, myself, the Auditor, as well as the County Judge-
elect to talk about the financing arrangements for our
courthouse remodeling that we've been dealing with for quite
some time, so I asked Mr. Henderson if he could come back
today, not only with a contract renewing our financial i
arrangement or advisory arrangement with Mr. Henderson and
his company, but also to discuss the arrangements for
financing this construction, itself. So, at this time, I'll
ask Mr. Henderson to step up to the lectern and proceed.
Good morning and thanks for coming.
MR. HENDERSON: Good morning, and I apologize for
being late. I spent the weekend working up the numbers that
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are in your booklet, and I got to my office this morning and
my secretary saw what I had stapled and was ready to hand
out, and she said I couldn't leave like that. She took it
away from me and she put them in these nice little booklets.
They are very preliminary, and as your Judge just indicated,
I'm sure they're going to get torn up and -- and thrown away
as we go through it, because these are just preliminary
estimates and there are some considerations in terms of the
structure, particularly if light of your existing debt that
you may want to consider.
As the Judge had indicated, I was in town last week
visiting with Mr. Tomlinson and the Judges about the
$2,300,000 figure for the completion of the remodeling of
your old County jail facility. We talked about a number of
alternatives available to the County and, of course, the one
in keeping with the most conservative approach, which is --
which has historically been the case here in Kerr County, is
to do a tax anticipation note with the final maturity not to
exceed 35 years.
If you turn to Tab 2 in your booklet, you'll see that
$2,300,000 extended out over that period of time, and you'll
see that the average annual payments would be approximately
$385,000. The interest rates assumed here are calculated at
an average rate of 4.35 percent. That rate is a current
market rate for a SAA-1 underlying credit rating. As Tommy
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pointed out, and is accurate, Kerr County has an A underlying
credit rating, so I think we could do better than that by
about 15 basis points. Sut I ran more conservative numbers
so that, as we proceed in the coming weeks, if the market
moves away from us, the final results hopefully will not be
appreciably different, except for to improve upon the numbers
we've got here.
I have visited with a couple of underwriters about the
possibility of underwriting these things on very short
notice, and have talked to them about marketing strategy in
the event the Commissioners Court moves forward, and the
consensus between myself and my desk and the underwriters is
that we are better served, given the short maturity, of using
an A underlying credit rating and not attempting to get bonds
insured to take us to a triple A, as we had done on your sail
financing. The reason being, that as quickly as you're
paying this back, the improvement and interest rates that you
would get in the insurance premium would not be sufficient to
cover that insurance premium. We would spend approximately
$12,500 at the bare minimum for that insurance, and the
difference between an A rated piece of paper and an insured
piece of paper would not be sufficient over this short period
of time to recoup that money.
We also have talked about an underwriter that would be
willing to allow us to market these tax notes with a -- a
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what we call a vela-bound official statement, instead of a
formally printed and saddle-stitched official statement, so
when we talk about the cost of issuance, which is on the next
page, there are some costs to that that we can save.
The next page is the estimated cost of issuance, 'cause
I know it's important to you to focus on how much it's going
to cost. The financial advisory contract that we have on
your agenda for your consideration today is renewed at the
same fees that we've had in place, not only in the 5-year
contract that lust expired last year, but even in the
original contract that we put into place some 11 years ago.
So, the fees for our services have not changed in 11 years.
The fee for bond counsel is also their current standard
fee. The Moody's fee -- we, in our bond transaction for the
jail, had gone to both Moody's and Standard and Poor's.
However, I feel like it would be cost-prohibitive on a
transaction this short to do that, so I'm only estimating
going to Moody's. I have not confirmed the fee with them,
but I think that that -- that ought to be fairly close to
what their fee is.
The next page is a projected investment income, which I
think kind of gets to the issue of the timing of the
transaction. As you're aware, you're not really anticipating
needing significant funds for the project until probably
February or March. However, under the federal arbitrage
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laws, on transactions of less than $5 million, for issuers
that issue less than $5 million in a calendar year, you have
to meet both of those standards. We can earn more money on
the -- on the bonds than we're paying in terms of the
interest rate, and we can keep that money. The only
prohibition, really, is this 1978 arbitrage law, which will
require that we spend the full amount of money within 36
months of the closing trap. date. So, the sooner we can
issue that debt as a 9.35 percent -- or actually under 4 and
a quarter, I think, if we were doing it today. The sooner we
can start earning the investment earnings -- and, of course,
the County would be able to keep that extra money.
The next page is the debt service schedule. You'll see
two different sets of interest rates there. One's called the
coupon rate, the other one is called the yield. The yield is
the rate with which the bonds would be reoffered. The coupon
rate is slightly higher. That produces a dollar price
differential. That is the way that the underwriters are
compensated. This is estimated at $16 per bond in terms of
underwriters' compensation.
The last thing I would want to talk to you about in
terms of a go-forward basis is the timetable of events behind
Tab 3. This is a very, very tight schedule, and, in fact, we
cannot meet this schedule unless we presubmit the documents
to the Attorney General's office, even before the
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Commissioners Court would meet in the latter part of the week
of December the 14th to approve it. But, I think it can be
done. No real reason, other than investment earnings, to
rush. If the Commissioners Court wants to take more time to
consider, we can certainly close this thing in January, in
February, whatever the desire of the Commissioners Court.
Behind Tab 9 I've got a report called the Texas
Municipal Report for Kerr County. The reason that I included
it is, if you'll turn to the second page of that report, on
the lower left-hand side, you will see debt service
requirements where it says Hond Debt Service. And you'll
just have the opportunity to notice that your -- your general
obligation debt falls in the year 2000, from $629,000 per
year down to about $535,000. So, when you consider the debt
service structure, which I've outlined in the first table we
went over as the level debt service over seven years, we
could actually minimize the tax rate to the extent the
Commissioners Court desired. By -- by reducing the principal
in the first year, such that we could level out that debt
service, and in that way, in your first year you'd have a
slightly lower tax rate impact. Of course, when you delay
principal, your total interest cost will go up. I'm sure
you're aware of that, but I wanted to point that out, as
well.
I know I went through this very quickly. I'll be happy
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to answer any questions-that you might have.
COMMISSIONER LETZ: Regarding the timing, is there
-- would it be beneficial to the County if we waited until we
received the bids back before we proceeded with this? Does
it make any difference?
MR. HENDERSON: Again, the driving factor behind the
timetable is just that you're able to earn interest rates in
excess of the rates that you're paying. I know that you have
funded out-of-pocket a lot of the improvements, the
demolitions and the architect work that's gone forward. I
also understand we're going to get bids in December, are we
not?
COMMISSIONER LETZ: December 19th.
MR. HENDERSON: December 14th. No, sir, there's no
reason, you know, given that short time frame, if you think
the bids are going to come in, you know, a couple hundred
thousand dollars and different, and you went to borrow that
much less money, which, of course, I'd encourage you to do,
I'm not looking to price this thing until December the 17th
anyway, so, -- so we could literally -- once we know what
your bids are on the 17th, we could state on this timetable
and drop your issue size or increase it, as the case may be,
even within the schedule. And if you want to postpone it
until after January the 1st -- I really think that's what
we'd be talking about. If we don't do it by the 17th, we're
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obviously into Christmas week and the New Year's week, so if
we don't do it on the 17th, I think you're talking about the
second week of January, at the very earliest. I would prefer
to see you wait till the third week of January for market
timing reasons. But if you want to do that, that's -- that's
certainly up to you.
COMMISSIONER LETZ: From a market standpoint, is
there any benefit to doing it early in December, as opposed
to the third week in January?
MR. HENDERSON: To be honest with you, I think we
could probably get a slightly better interest rate the third
week of January than we're going to get the week before
Christmas. I think we're talking about 5, you know, basis
points difference, maybe, all other things being equal. Of
course, the market moves, as you know, very quickly, so we
could lose that. But, all other things being equal, which --
and, again, they're not, because we have that -- you know,
one of the things about waiting till January is we lose 30
days of positive investment earnings. So I think -- you
know, given that, I think we ought to go the week before
Christmas in December. But, again, if you want to wait until
you get those bids, I think we can -- we can do that and
still meet that December 17th timeline. Again, a critical
issue here is the Attorney General's office approval. We
have to submit this to the A.G.'s office, and they require 15
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business days to approve the transaction
There's not, obviously, 15 business days
17th and December the 31st. I lust want
done before the beginning of your next f
your books would look a little clearer.
Tommy feels.
for closing.
between December
to try to get it
fiscal year so your
I don't know how
MR. TOMLINSON: It doesn't matter to me.
MR. HENDERSON: But, in order to meet the 17th,
what we -- I mean the 31st, what we'd have to do is --
pending, of course, approval by the Commissioners Court
today, is ask the attorneys to go ahead and draw up the
documents, submit them to the Attorney General's office, even
before the 17th, so that they could begin their 15-day review
process before the Commissioners Court formally approves it
on the 17th.
MR. TOMLINSON: There will otner cost Iac:~uL~ ~i+c~
-- besides the deal that we need to consider. As far as --
as far as how much money that we're going to borrow. So,
that possibly could take longer than -- than the 17th to
know. What I'm -- I'm thinking about furnishings,
contingencies that we want to add to the bid price for -- for
change orders, those kind of things.
COMMISSIONER LETZ: I'm probably -- with the
construction prices being what they are statewide, I'm
probably more concerned about them coming in higher than
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lower, unfortunately. Though I do -- in talking with the
architect, I think he is expecting seven to nine bids, which
is -- I'll be real happy if we get that many.
MR. HENDERSON: That would be a lot on a project
this size.
COMMISSIONER LETZ: That's what he said. He feels
pretty confident we're going to get that many, based on the
interest and the number of calls and dealings he's had with
people.
COMMISSIONER OEHLER: One thing about going with
the 7-year plan rather than 5-year plan is that there is more
-- there would be more money available that could be budgeted
for this project in the out-of-pocket expenses and your
fixtures and things like that, that you don't have to worry
about so much that being tied to your bid price. 'Cause
there'll always be things that come up when you start
furnishing that building that you didn't expect to pay.
COMMISSIONER LETZ: Right.
COMMISSIONER OEHLER: But, by doing this, you've
saved enough to kind of have a fairly large contingency
in-house to pay for some of those things if it becomes
necessary.
JUDGE DENSON: That does not mean there's more
money to spend.
COMMISSIONER OEHLER: No, it doesn't. But, I mean,
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that is a fact, as bad you as you don't want me to say that.
MR. HENDERSON: I realize I went through that very
quickly. Be happy to slow down and -- and respond to any
questions you have.
JUDGE DENSON: I have none. And, while -- while
I'll defer to the two members on the Court that will continue
on into next year -- and, of course, we have the County
Judge-elect and one of the Commissioners-elect here -- on
putting this off or going forward, there's money on the
table. There's earnings to be made. And, in my regular
thinking, my everyday life,. I lump at those opportunities
usually.
MR. TOMLINSON: I'd like to asx noo one question.
JUDGE DENSON: Yes, sir.
MR. TOMLINSON: If -- if we start this processing,
go through the A.G.'s Office, do you -- and you have to
change the amount, either smaller or larger during that
process, what -- is that a problem? Does that involve --
MR. HENDERSON: I don't think that changing the
amount's a problem. I think what the Attorney General's
office is going to focus on is that the purpose for which the
debt is being issued doesn't change. So, if you try to
change the scope of the project in some way, then the
Attorney General's office is going to want to see that scope
redefined and they're going to want to take some extra time.
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I don't believe changing it up or down a little bit is going
to -- is going to slow them down any with any --
MR. TOMLINSON: In that case, I don't see any
reason to wait.
COMMISSIONER LETZ: I agree. I think we should go
ahead.
COMMISSIONER OEHLER: That's the way I see it.
COMMISSIONER LETZ: Proceed. Then if we need to
adjust the amount, if we need to, based on the bids that are
open -- and, like Tommy says, just 'cause we open the bids
doesn`t mean that we know the amount of all of a sudden,
because it's going to take some time to go through those
bids, I'm sure. At least it will give us some idea if we're
way out of line somewhere.
COMMISSIONER OEHLER: I agree.
COMMISSIONER SALDWIN: Do you want a motion?
JUDGE DENSON: Yeah, we need to approve the
financing arrangement concept and direct Mr. Henderson to
proceed.
COMMISSIONER LETZ: On 2.6, it says renewing the
contract. Do we renew the contract prior to --
COMMISSIONER OEHLER: Yeah.
JUDGE DENSON: Did you bring a contract with you?
MR. HENDERSON: Those should have been sent last
week. Did you not receive those?
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MR. TOMLINSON: I think Thea has one.
COMMISSIONER BALDWIN: Its in here.
COMMISSIONER BALDWIN: They're in here. And I
didn't read all the way through it. My question is, is this
an annual contract? Or is that --
MR. HENDERSON: Well, it -- let me back up and
explain that. The Municipal Securities Rule-Making Board,
M.S.R.B., is a regulatory body that governs the actions of
investment banking firms operating in the public finance
arena, and they promulgated Rule G-23, which requires that if
a firm holds themselves out to be financial advisers for an
entity, they must formalize that relationship with a
long-term contract in order to protect issue, or from
conflicts of interest when some financial advisers try to do
what we call "switch hats" and underwrite an issue for which
they are supposed to be financial advisers. Unfortunately,
G-23 did not specify what the definition of long-term is.
The industry standard has become 5-year contracts. But you
will notice in the contract that there is a provision for a
30-day termination clause any time the Commissioners Court so
desires.
JUDGE DENSON: It's a 60-month contract, or five
years, and a 90-day --
MR. HENDERSON: 90-day.
JUDGE DEN3ON: 90-day termination clause by either
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party?
MR. HENDERSON: Right.
JUDGE DENSON: With written notice.
COMMISSIONER BALDWIN: 60 months.
JUDGE DENSON: And this is the same contract, as
far as provisions, terms?
MR. HENDERSON: Yes, sir.
JUDGE DENSON: Such that the County has had in the
past?
MR. HENDERSON: Yes, sir, it is.
JUDGE DENSON: Okay. So, we do need to take up 2.6
first. That's consider and discuss renewing contract with
Dain Rauscher Investment Services as financial advisers, and
authorize County Judge to sign same.
COMMISSIONER LETZ: So moved.
COMMISSIONER BALDWIN: Second.
JUDGE DENSON: Further questions, comments on this?
All in favor?
(The motion was carried by unanimous vote.)
JUDGE DENSON: Okay. Now, next, we need to approve
the financial arrangement concept for courthouse remodeling
and direct Mr. Henderson to proceed on implementation of
those arrangements.
MR. HENDERSON: And I would like to clarify a couple
of issues about that. First of all, are you satisfied with
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the 7-year structure that I've got in the example? Would you
like me to make an adjustment, given your debt service on --
Tommy, do you have any --
MR. TOMLINSON: No, I don't -- I don't think we
need to change that. We budgeted debt service payment for
this fiscal year in the amount of $381,000, I believe. And
that's right on with what he's --
JUDGE DENSON: That's what's reflected in his
schedule.
MR. HENDERSON: And, a couple other issues just for
clarification for the Court records. What I am recommending,
given the desire on the timetable, is a negotiated sale. I'd
like to recommend Southwest Securities as the underwriter
that we would negotiate the sale of the bonds to. I'm
recommending that we only qo to one rating agency so that we
can save those rating fees, and that we use a vela-bound
official statement and hopefully save you a couple thousand
in cost of issuance there.
JUDGE DENSON: We'll expect you to use the best
professional judgment throughout this.
MR. HENDER3ON: Absolutely. Just want to let you
know where we`re at so far.
JUDGE DENSON: Yes, sir.
MR. HENDERSON: And I know that Tommy and I have
worked on many transactions together, and he likes to become
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very much involved, and he will be my primary contact for the
County and I'll be taking directions from him and, of course,
yourself, Judge, and your successors.
JUDGE DENSON: I'm just going to turn it all over
to Commissioner Lackey.
COMMISSIONER LACKEY: I'm walking out.
JUDGE DENSON: Okay. Let's see.
COMMISSIONER LETZ: Do we have a motion on 2.7?
JUDGE DENSON: Right, I need a motion to approve
the financial arrangement concept for courthouse remodeling,
and direct Mr. Henderson to proceed. That will be my motion.
COMMISSIONER LETZ: Second.
JUDGE DENSON: Okay. Further questions, comments?
Okay. All in favor?
(The motion was carried by unanimous vote.)
MR. HENDERSON: Thank you, Judge. I will be back
in touch with Tommy with the drafts of the documents by early
next week.
here.
JUDGE DENSON: Thanks again fox running back down
MR. HENDERSON: Glad to do it. I apologize for
keeping the Court waiting.
JUDGE DENSON: You must stay on the road all the
time.
MR. HENDERSON: That's why we have telephones, and
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C E R T I F I C A T E
The above and foregoing is a true and complete
transcription of my stenotype notes taken in my capacity as
Official Reporter of the Commissioners Court of Kerr County,
Texas, at the time and place heretofore set forth.
DATED at Kerrville, Texas, this 25th day of November,
1998.
Q71~!
Ka by B ik
Certifi Shorthand Reporter
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I've got a cellular fax machine ordered for my Suburbarn.
You've got to stay in contact.
JUDGE DENSON: Okay. We'll be in recess until our
Executive Session and accompanying matters at 11 o'clock.
(Recess taken from 10:45 a.m. to 11:00 a.m.)
JUDGE DENSON: Let me call the meeting to order.
It's 11 o'clock, and it's the 23rd of November, '98. And
we'll take up 3.2 at this time in Executive Session, and
that's filed on our posting as Personnel, with reference to a
Warrant Coordinator. So, at this time, we'll close our open
meeting and go into Executive Session.
(The open session was closed at 11:01 a.m., and an
Executive Session was held, the transcript of which
is contained in a separate document.}
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C E R T I F I C A T E
The above and foregoing is a true and complete
transcription of my stenotype notes taken in my capacity as
Official Reporter of the Commissioners Court of Kerr County,
Texas, at the time and place heretofore set forth.
DATED at Kerrville, Texas, this 25th day of November,
1998.
i /~1"
Kathy B ik
Certifi Shorthand Reporter
52
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