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KERR COUNTY COMMISSIONERS COURT
Special Session
Friday, May 1, 2009
9:45 a.m.
Commissioners' Courtroom
Kerr County Courthouse
Kerrville, Texas
PRESENT: PAT TINLEY, Kerr County Judge
H.A."BUSTER" BALDWIN, Commissioner Pct. 1
WILLIAM "BILL" WILLIAMS, Commissioner Pct. 2
JONATHAN LETZ, Commissioner Pct. 3
BRUCE OEHLER, Commissioner Pct. 4

Q
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I N D E X
May 1, 2009
PAGE
1.1 Consider/discuss, take appropriate action to
authorize and/or request Kerrville/Kerr County
Joint Airport Board to make application to
and/or request Kerrville Economic Improvement
Corporation to fund Phase 2 of the Kerrville/
Kerr County Airport drainage and taxiway project 3
--- Adjourned 18
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On Friday, May 1, 2009, at 9:45 a.m., a special meeting
of the Kerr County Commissioners Court was held in the
Commissioners' Courtroom, Kerr County Courthouse, Kerrville,
Texas, and the following proceedings were had in open court:
P R O C E E D I N G S
i
JUDGE TINLEY: Let me call to order this special
meeting of the Kerr County Commissioners Court posted and
scheduled for this date and time, Friday, May 1, 2009, at
9:45 a.m. It is that time now. The agenda item is to
consider, discuss, and take appropriate action to authorize
and request Kerrville/Kerr County Joint Airport Board to make
application to and/or request Kerrville Economic -- Kerrville
Economic Improvement Corporation to fund Phase 2 of the
Kerrville/Kerr County Airport drainage and taxiway project.
I put this on the agenda. By way of background, as I'm sure
all of you recall -- Mr. Bobertz and Bruce McKenzie, Airport
Manager, are here. You recall back in -- I believe it was in
December, the Court was initially exposed to a presentation
by the Airport Board and the Airport Manager to the entire
project going on; that we were in Phase 1, we're going to be
going into Phase 2. I believe that was a meeting over at
Buzzie's. And then, subsequent to that, they went -- the
Airport Board provided that presentation to -- they came to
us again, to the Court. They went to the City Council. They
went to Economic Improvement Corporation, Lions, Rotary,
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Kiwanis, all sorts of -- for the primary purpose of educating
and providing a basis for support for the ongoing nature of
My clear understanding, and the understanding of
others that I talked to, was that was part and parcel of a --
of a program so that the Airport Board subsequently would end
up going to the E.I.C. to obtain the -- the local match
required for the funding of Phase 2, inasmuch as the E.I.C.
had provided the local match funding for Phase 1 of this same
project.	It was	brought	to my attention Monday evening, I
believe,	that --	that the	interlocal agreement under which
the Airport Board currently operates pursuant to the
authority of the owners, the City and the County, under
Paragraph 3(G)(2), provides that the board, meaning the
Airport Board, following the prior written consent of each
party -- that's City and County -- has the authority to apply
for and to execute grant funding agreements. Well, the
E.I.C. funds, in all probability, would be grant funding type
funds, and would require such an agreement.
So, further, we were advised, oh, about the middle
of last month, as I'm sure the letter got circulated among
the members of the Court, that what we thought was going to
be a funding requirement for this coming October had suddenly
been moved up to June, so we were under a pretty tight time
frame. So, based upon that, I did not want this Court, as
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' one of the owners at the airport, to be an obstacle for the
board to be able to go forward and make that application to
E.I.C., as I had envisioned that they would do from the very
beginning of this whole process. So, I knew we were going to
be meeting later this morning, so I promptly posted this
agenda to authorize the Airport Board, on behalf of the
County, to move forward to the E.I.C. for that -- for that
funding for Phase 2. That's the background.
COMMISSIONER BALDWIN: This is May. Next month's
June.
JUDGE TINLEY: That's right.
COMMISSIONER BALDWIN: That's pretty quick.
JUDGE TINLEY: Yep.
COMMISSIONER WILLIAMS: Judge, you might point out,
too, that the funding -- or the match requirement has been
reduced from a 10 percent, that we've heretofore understood
and participated with, to a 5 percent match for City and
County, and that takes the number down from 400,000 to
200,000. Correct?
COMMISSIONER LETZ: Per entity.
COMMISSIONER WILLIAMS: Per entity.
JUDGE TINLEY: Well, yeah.
COMMISSIONER WILLIAMS: Would have been an $800,000
total match. Now it's 400,000.
JUDGE TINLEY: The entire funding match came down
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to approximately 400,000, that's correct, because it became a
95/5 instead of a 90/10, as was the first one.
COMMISSIONER WILLIAMS: Correct.
JUDGE TINLEY: That's right.
COMMISSIONER BALDWIN: It said in there, as far as
a motion and a -- a vote here, it's -- you read in there
something about "authorize the board in writing"?
JUDGE TINLEY: It says following the prior written
consent of each party, has authority to apply for.
COMMISSIONER BALDWIN: Written consent.
JUDGE TINLEY: I would take that to mean if this
Court approves this agenda item, there's a Commissioners
Court order approving it; I think that's clear, written
authority for them to be authorized as required by this
section to proceed with that.
COMMISSIONER BALDWIN: That's exactly where I'm
going, where I was headed with that. I didn't know if we
needed to get -- authorize you to write a letter, or --
COMMISSIONER WILLIAMS: No.
COMMISSIONER BALDWIN: -- or just the court order
itself would be sufficient.
JUDGE TINLEY: It occurs to me that the court order
would be way adequate.
COMMISSIONER WILLIAMS: I would move that
25 ~ Commissioners Court take -- authorize the Kerrville/Kerr
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County Joint Airport Board to make application to Kerrville
Economic Improvement Corporation to fund Phase 2 match of the
Kerrville/Kerr County Airport drainage taxiway project.
I COMMISSIONER LETZ: Second.
JUDGE TINLEY: We have a motion and a second.
Question or discussion on the motion? All in favor of the
motion, signify by -- yes, sir?
MR. BOBERTZ: There's one further development. It
was discovered, I think -- and it came up in Council meeting.
My name's Roger Bobertz. I'm the current president of the
Airport Board. It came up in Council meeting that they had
discovered a -- a fund reserve of $250,000 that was in the
airport account. It was to be used for Phase 2. So, if we
apply that to the $400,000, 5 percent match, that leaves
$150,000, which reduces the obligation of each of the owners
to $75,000. And --
COMMISSIONER BALDWIN: Would you do me a favor and
say all of that again? You found some money?
MR. BOBERTZ: Yes.
COMMISSIONER LETZ: The City found some money.
MR. BOBERTZ: Yeah. The City's Finance Director
found some money.
COMMISSIONER BALDWIN: Did I walk in the right
meeting? (Laughter.) The City found some money. That's --
I mean, where was the money?
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MR. BOBERTZ: The money --
COMMISSIONER BALDWIN: In the Airport Board or the
library, or where?
MR. BOBERTZ: No, it's -- it's in the City's
general fund, but it's allocated to the airport. The City,
for the present, is doing all of the accounting and
bookkeeping for the airport, so we rely on them to manage our
books for us, subject, of course, to audit. And apparently
during the previous incarnation of the Airport Board, which
was a previous interlocal agreement, the City was operating
the airport on -- the Airport Manager was a City employee, et
cetera, and the City Manager was the principal spokesman for
financial matters. And my understanding, which is a little
-- obviously, it's obviously subject to question, is that the
Airport Manager at the time, and the City Manager at the
time, allocated funds to be placed aside in reserve for this
taxiway relocation drainage project. Both of those
individuals have since moved on, so -- and in reviewing the
books for the airport, the City Finance Director found this
account of $250,000 that was previously allocated to the
airport, and is now available for expenditure on projects
such as this.
COMMISSIONER OEHLER: Are they going to say that
those are their funds and not any part of ours?
COMMISSIONER BALDWIN: Yeah, that's the question.
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Is it -- is that City/County money?
MR. BOBERTZ: It's airport money now. It was
allocated by the City to the airport.
COMMISSIONER BALDWIN: Allocated by the City --
MR. BOBERTZ: Yes.
COMMISSIONER BALDWIN: -- to the airport.
MR. BOBERTZ: Right.
COMMISSIONER WILLIAMS: Not City.
COMMISSIONER BALDWIN: Not from the County. City.
MR. BOBERTZ: No.
COMMISSIONER BALDWIN: To the airport.
MR. BOBERTZ: No, just the City side.
COMMISSIONER BALDWIN: I see.
COMMISSIONER WILLIAMS: Well, that may all be the
case, and it probably needs to get sorted out as to who,
what, where, when, and why. But I think -- I think the
purpose of this is to move it forward, and that -- and the
process of going for E.I.C. Now, if that shakes itself out
and that pot of gold is, in fact, alive, well, and burning a
hole in somebody's pocket, then that's -- that's a plus
somewhere down the line. But I'd like to kind of see the
process move forward here, and then let all the little --
COMMISSIONER BALDWIN: Sure.
COMMISSIONER WILLIAMS: -- subordinate things come
into play.
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COMMISSIONER OEHLER: Well, if we go ahead and
approve this, that approves the application for funds no
matter what the dollar amount is.
COMMISSIONER WILLIAMS: Exactly right.
COMMISSIONER BALDWIN: Yeah.
COMMISSIONER LETZ: It gives -- the Airport Board
has the -- this isn't requiring the Airport Board to do
anything; it's just saying we authorize you to go apply for
funds.
MR. BOBERTZ: We have your permission.
COMMISSIONER LETZ: Whatever amount you want,
however you want, or if you want. I mean, you do not have
to.
JUDGE TINLEY: Well, it would relate to Phase 2.
COMMISSIONER LETZ: Well, right.
JUDGE TINLEY: That's the only limitation.
COMMISSIONER BALDWIN: But no amount.
JUDGE TINLEY: No. No.
MR. BOBERTZ: No. I raise this point only to make
sure you understood the strong possibility that we're only
talking about $75,000, not $200,000.
COMMISSIONER OEHLER: That's great --
COMMISSIONER BALDWIN: Thank you.
COMMISSIONER OEHLER: -- if it works out that way.
COMMISSIONER WILLIAMS: Reach in your other pocket,
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money, I must say.
JUDGE TINLEY: What other moneys have you found?
MR. BOBERTZ: We found an account about two months
ago that we used for two purposes. One was to fund an
engineering study for the fire water flow problem we have at
the airport, and the -- another piece of it was used to -- to
prefund the severance pay for the Airport Manager, should the
Airport Manager ever be eligible for severance pay.
JUDGE TINLEY: Okay.
COMMISSIONER WILLIAMS: How much was in that
account? Do you recall?
i MR. BOBERTZ: Help me, Bruce. I think it was a
hundred something.
MR. McKENZIE: About 140,000 or 150,000.
COMMISSIONER LETZ: 140,000.
MR. McKENZIE: Yes, sir.
JUDGE TINLEY: And this was another amount that was
suddenly found?
MR. McKENZIE: The Finance Director found, yes,
sir. He was fairly thorough in looking at the last three or
four years, and he discovered those moneys were available.
They are there. Just like the 250,000 Mr. Bobertz was
talking about, the money is there, been verified.
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MR. BOBERTZ: And I think that the -- the reason
these -- these funds have been discovered is a creature of
the new -- the new interlocal agreement and the departure of
the City Manager and the Airport Manager. Those things are
more or less in the same -- same level of activity, and
because of that, some things got obscured. Otherwise, I'm
sure this would be up in front of everybody.
COMMISSIONER LETZ: I think it goes back partially
-- I mean, I don't think either -- I won't speak for either
one of you, but they probably don't know a great deal about
how the County works, either. I've been at some of the
meetings, and they -- like, it goes back, I think, to how
excess funds from one -- or for a given year were handled in
the past. There was money budgeted, you know, put aside
for -- whether it be for Phase 2 or whether it was just
excess over operations.
MR. BOBERTZ: Yes.
COMMISSIONER LETZ: And that money was in an
airport fund that the City had, and the Airport Board didn't
have, really, knowledge of what those funds were. And the
City had two personnel changes. It was kind of lost for a
while.
COMMISSIONER WILLIAMS: I think that's exactly
right, Commissioner. And, Bruce, you can -- you can maybe
help me out on this in terms -- 'cause you, for many years,
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were a City employee and you operated under this policy. I
believe it was the City's policy that they tried to have a --
have about a 5 or a 7 percent reserve in each account at the
end of the year.
MR. McKENZIE: That was the goal.
COMMISSIONER WILLIAMS: Yeah, the goal. And then
if they achieved that, then this rolled back to their
reserves. And I -- you know, years ago I questioned -- on
the joint Airport Advisory Board, I questioned what happened
to the County's piece of that if, in fact, you got to the
bottom line and had a 5 percent or 7 percent left in your
account. So, you know, all that needs to get fleshed out.
COMMISSIONER LETZ: And it was my understanding
that the -- that's another whole agenda item, actually.
COMMISSIONER WILLIAMS: Yeah.
COMMISSIONER LETZ: But, anyway, it's just the --
it's reserve funds that are dedicated on the City's books to
the airport for airport use.
COMMISSIONER WILLIAMS: Sure.
COMMISSIONER LETZ: That's -- you know.
COMMISSIONER WILLIAMS: That's where they need to
22 I be used.
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JUDGE TINLEY: Was the City not providing the
Airport Manager or the Airport Board regular reports of their
financial position?
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MR. BOBERTZ: Yes.
COMMISSIONER LETZ: Yes and no, though. I don't --
'cause I was on the board during that period. Recent --
generally, those funds, the only thing presented as long as I
was involved with the -- with the airport, the few years I
was on the board, was kind of annual operations. I don't
know that I have ever seen a total fund picture for the
airport. I mean, you all may have, but I only recall ever
getting annual operations, you know, kind of looking at the
annual thing. And then the -- the grant part of it and how
all the disbursements went through the City, I've never seen
that.
JUDGE TINLEY: What -- am I hearing that, yeah,
they were providing you with regular financial reports, but
they were only partial reports, so we only do part of the
financial information? Is that what I'm hearing?
MR. BOBERTZ: Let me try to -- as the world looks
I to me .
JUDGE TINLEY: Okay.
MR. BOBERTZ: The first pile of money we found, the
$140,000, you know, I grew up in a corporate world where, at
the end of the fiscal year, if you did not spend all the
money authorized for your budget -- your department, it
disappeared. It was gone. And I think all the rest of the
Airport Board members assumed that. We came to the end of
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last fiscal year and we had roughly $140,000 of unspent
allocation due to the excess revenues and underspent budgeted
expenses. And somebody asked the -- the Finance Director,
"Is that money gone?" He said, "No, that's still money
authorized for the Airport Board, and it's available for your
use."
JUDGE TINLEY: And that was approximately when?
MR. BOBERTZ: That was the 140,000, and that was
approximately -- October? November?
MR. McKENZIE: Last year, before Thanksgiving.
JUDGE TINLEY: Okay.
i MR. BOBERTZ: End of the prior fiscal year, where
the numbers emerged. The existence of this -- this $250,000
reserve, that's a surprise to me. I don't know where it was.
I think it was a surprise to the City Finance Director.
COMMISSIONER WILLIAMS: Surprise, surprise.
COMMISSIONER OEHLER: At least it was found.
COMMISSIONER LETZ: I think the question would need
to go to the City, Judge, because -- and the reason I'm
saying that --
JUDGE TINLEY: It would.
COMMISSIONER LETZ: -- is the Airport Board is
learning, and this is the first year of, really, operations.
JUDGE TINLEY: I guess my question --
COMMISSIONER LETZ: They've never seen the account
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JUDGE TINLEY: I guess my question is, when the 140
fell out of the sky, did it not occur to anybody on the board
or to Bruce to say, "Gee, that was nice. Is there any more?"
Apparently not.
MR. BOBERTZ: No, because that was a specific set
of circumstances, you know. Excess revenue, underspent
budgeted expenses.
COMMISSIONER WILLIAMS: Well, that 140 was a recent
vintage.
MR. BOBERTZ: Yeah, it was left over from --
COMMISSIONER LETZ: Last year.
MR. BOBERTZ: -- fiscal 2008.
JUDGE TINLEY: Oh, okay.
COMMISSIONER WILLIAMS: Whereas the other, Judge,
could go back several years, where they rolled it into their
reserve.
MR. BOBERTZ: Yes.
COMMISSIONER WILLIAMS: Am I correct, Bruce?
MR. McKENZIE: Yes, sir.
MR. BOBERTZ: Yes, that's the way I understand it.
MR. McKENZIE: That's my understanding.
MR. BOBERTZ: The City determined, back in the days
when they were operating the airport, that they should start
building a reserve for this taxiway project.
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JUDGE TINLEY: So, my question to you as to whether
or not you were only getting part of your financial picture
would have to be yes, that's all you were getting, because
there were obviously -- there was a $140,000 component, and
then some sort of -- maybe a capital projects or something,
here's another 250. That certainly, I think, was relevant to
what you folks needed to know for purposes of -- of operating
an airport and planning for future operations, but you
weren't given the benefit of that information. That's what
I'm hearing.
MR. BOBERTZ: The 140 was laying there right in
front of us. We just had to ask the question.
JUDGE TINLEY: Okay.
MR. BOBERTZ: 'Cause we were assuming it went away.
The 250, I think, is something that got started, as
Commissioner Williams pointed out, a few years ago. It was
an accumulating reserve set up by the City. Some of the key
people involved in accumulating it have moved on, and
knowledge of that reserve faded away until someone started
looking hard at it.
JUDGE TINLEY: But the Finance Manager for the City
reported to you that that was just discovered early this
week?
MR. BOBERTZ: Yes.
JUDGE TINLEY: Okay.
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MR. BOBERTZ: And --
JUDGE TINLEY: Okay. Any other questions or
comments on the motion? All in favor of the motion, signify
by raising your right hand.
(The motion carried by unanimous vote.)
JUDGE TINLEY: All opposed, same sign.
(No response.)
JUDGE TINLEY: The motion does carry. We've got
nothing else on this agenda, so for the special Commissioners
Court meeting posted for 9:45 this date, we will be
adjourned.
(Commissioners Court adjourned at 10:07 a.m.)
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JANNETT PIEPER, Kerr County Clerk
BY: _ _ l~ ___ __ _
Kathy nik, Deputy County Clerk
Certified Shorthand Reporter
STATE OF TEXAS ~
COUNTY OF KERR ~
The above and foregoing is a true and complete
transcription of my stenotype notes taken in my capacity as
County Clerk of the Commissioners Court of Kerr County,
Texas, at the time and place heretofore set forth.
DATED at Kerrville, Texas, this 4th day of May, 2009.
5-1-09
ORDER NO. 31287
KERRVILLE/KERB COUNTY JOINT AIRPORT BOARD FUNDING PHASE II
DRAINAGE AND TAXIWAY PROJECT
Came to be heard this the 1st day of May, 2009, with a motion made by Commissioner
Williams, seconded by Commissioner Letz, the Court unanimously approved by a vote of
4-0-0 to:
Authorize the Kerrville/Kerr County Joint Airport Board to make application to the
Kerrville Economic Improvement Corporation to fund Phase II match of the
Kerrville/Kerr County Airport drainage and taxiway project.