1 2 3 4 5 6 7 8 KERR COUNTY COMMISSIONERS COURT 9 Regular Session 10 Monday, August 12, 2002 11 9:00 a.m. 12 Commissioners' Courtroom 13 Kerr County Courthouse 14 Kerrville, Texas 15 16 17 18 19 20 21 22 PRESENT: FREDERICK L. HENNEKE, Kerr County Judge 23 H. A. "BUSTER" BALDWIN, Commissioner Pct. 1 WILLIAM "BILL" WILLIAMS, Commissioner Pct. 2 24 JONATHAN LETZ, Commissioner Pct. 3 25 ABSENT: LARRY GRIFFIN, Commissioner Pct. 4 2 1 I N D E X August 12, 2002 2 PAGE --- Visitors' Comments 3 3 --- Commissioners Comments 8 1.1 Pay Bills 9 4 1.2 Budget Amendments 10 1.3 Late Bills 31 5 1.4 Read and Approve Minutes 33 1.5 Approve and Accept Monthly Reports 33 6 2.1 Variance request for existing home on Lots 2 & 4, 7 River Oaks Lodge Subdivision 34 8 2.2 Advertisement for regulatory signs, name change, and school zone, set public hearing 36 9 2.3 Name changes for privately maintained roads in 10 accordance with 911 guidelines 39 11 2.4 Discuss damages to buildings due to July flood 40 12 2.5 Resolution authorizing Grantworks to submit an application to TCDP for continuation of Kerrville 13 South Wastewater Collection System Project 50 14 2.6 Resolution authorizing Grantworks to submit an application to TDHCA for HOME Disaster Assistance 53 15 2.7 Resolution authorizing Grantworks to submit an 16 application to TCDP for Disaster Relief Funds 54 17 2.8 Approval of estoppel letter relating to Mooney leases at airport 57 18 2.9 Approval of 2002-2003 Kerr County Community Plan 58 19 2.10 Approval of FY 2003 Kerr Central Appraisal 20 District's Budget 59 21 2.11 Presentation by Kerr County financial advisor and bond counsel regarding proposed issuance of 22 lease revenue bonds to make improvements at the Juvenile Detention Facility, and responsibilities 23 and obligations of County in connection with such financing 62 24 2.12 Discuss FY 02-03 County Budget 81 25 --- Adjourned 120 3 1 On Monday, August 12, 2002, at 9:00 a.m., a regular 2 meeting of the Kerr County Commissioners Court was held in 3 the Commissioners' Courtroom, Kerr County Courthouse, 4 Kerrville, Texas, and the following proceedings were had in 5 open court: 6 P R O C E E D I N G S 7 JUDGE HENNEKE: Good morning, everyone. It's 8 9 o'clock in the morning on Monday, August 12th. We'll call 9 to order this regular session of the Kerr County 10 Commissioners Court. Please stand and join me in a word of 11 prayer, followed by the pledge of allegiance. 12 (Prayer and pledge of allegiance.) 13 JUDGE HENNEKE: At this time, any citizen 14 wishing to address the Court on an item not listed on the 15 regular agenda may come forth and do so. Is there anyone 16 who would like to address the Court on an item not listed on 17 the regular agenda? 18 COMMISSIONER BALDWIN: Judge, I have a friend 19 that's come. I think all of us have received phone calls 20 and comments from neighbors about mosquitoes. 21 JUDGE HENNEKE: Yes. 22 COMMISSIONER BALDWIN: And my good friend Jay 23 Bailey is a constituent of mine and a good friend, and he 24 has a mosquito problem. So, I'll just ask him to come this 25 morning to address the Court, and maybe we can somehow get 8-12-02 4 1 the gate open and figure out what to do about it. If there 2 is anything we can do about it. 3 JUDGE HENNEKE: Morning, Mr. Bailey. 4 MR. BAILEY: Good morning, Judge, and good 5 morning, Commissioners. I am Jay Bailey, and I'm here to 6 talk to you about a problem that I am experiencing; I 7 suspect most everybody in the county's experiencing. My 8 wife got out of her car in our garage the other day, and she 9 thought she heard bees or yellow jackets humming. She 10 looked down and she was covered with mosquitoes. Yes, we 11 had water during the last floods, and we had a lot of 12 contamination. And I've been very concerned, and I 13 called -- of course, the County's kind of been a little 14 behind here, but I called Kerrville City Health Department, 15 and they recommended the Bactimos Briquets, which the 16 gentleman told me I could buy at Lowe's. I went to Lowe's 17 and bought these and other things, and I spent over $75 so 18 that I could put this in my little stagnant ponds and what's 19 left of all that water. And right there where I live, we 20 have, down on the corner, a tank that's full of water, and 21 I'm sure it's full of mosquito larvae. This is to control 22 mosquito larvae and it is not poisonous to any other human 23 or pet or livestock, so they can recommend this. 24 I have been covering myself with Deet every 25 morning -- mosquito spray every morning before I go out to 8-12-02 5 1 water my dogs. I change my dogs', cats', and my chickens' 2 water every day, because if I don't, I find larvae in there 3 and we find mosquitoes coming out. As you know, there's 4 already been a bird that's been found in San Antonio that 5 has this West African Nile virus in it. Before we know it, 6 we're going to hear of somebody around us that has suspected 7 -- has come down with something, because there's mosquitoes, 8 and we've got to control them. So, I ask you gentlemen to 9 please consider this as part of your considerations for 10 expenses. I know it's on top of everything, and you've got 11 a lot to do, but I can tell you, our godmother called us 12 last night, and she said, "My dog's bowl inside my house is 13 full of larvae," and she's having to change it several hours 14 a day. So, just to tell you gentlemen, it's not way away 15 somewhere in Louisiana. It may be right here with us. And 16 I can -- I would appreciate it if you sirs would consider 17 this as a part of the agenda this morning, and begin to 18 either use this or whatever is recommended. I thank you. 19 JUDGE HENNEKE: Thank you, Mr. Bailey. 20 COMMISSIONER BALDWIN: Thank you, Jay. 21 JUDGE HENNEKE: Important issue. 22 COMMISSIONER BALDWIN: It is, Judge, and I 23 would -- would hope maybe we could have some conversation. 24 I know we can't make a decision about that. Mr. Bailey's -- 25 his comments were that he hoped that we could spend some 8-12-02 6 1 funds to fight mosquitoes. I -- and, of course, that is -- 2 that is a part of it, but I can't -- I mean, I can see, you 3 know, like, down in Beaumont, I've seen them drive down the 4 street with their little shotgun-looking mosquito spray, but 5 I can't see the County driving on people's private property 6 and putting briquettes in the creeks. I mean, I just -- we 7 need to figure out a way -- if we're going to address this, 8 we need to figure out a way to do that legally. And I 9 just -- I don't know how to do it. 10 COMMISSIONER LETZ: I think the main thing we 11 can do on that is, with the help of the papers, to publicize 12 the importance of changing water out, buying the briquettes. 13 And -- you know, and I just think public awareness, 'cause 14 the problem -- it's severe right now. I've never seen 15 mosquitoes like we have them this year, and with the rains 16 we had over the weekend, it's going to get worse. But every 17 -- anything from, you know, tires, buckets that are tipped 18 over, anything -- I mean, it just takes a matter of hours, 19 literally, and they'll start -- larvae will be in there. I 20 don't know how long it takes -- a day or so, I guess, for 21 them to go from larvae to mosquitoes. It's not very long. 22 But I just think -- and, you know, the papers, I'm sure, can 23 contact the City, and the Health Department there is 24 probably more attuned to what needs to be done to control 25 mosquitoes than anyone in the county, just to -- you know, 8-12-02 7 1 pesticides and things. 2 MS. VAN WINKLE: We already ran a story on 3 that. 4 COMMISSIONER WILLIAMS: Part of the problem 5 that I've learned about when people call me has to do with 6 water still remaining in the bar ditches down in the 7 right-of-ways; they just haven't drained out or dried up, 8 and become a breeding ground. And some of the folks who 9 call want to know why we can't do something about either 10 spraying or putting some insecticides in those areas 11 where -- where this is happening. And it is happening. 12 And, so I'm not sure what the answer is, but we ought to 13 figure out something we can do. 14 JUDGE HENNEKE: We probably can address that 15 issue. I don't see why we can't. Maybe we can ask the Road 16 and Bridge Department to look at that and get back to us as 17 to what might be feasible. Yes, Mr. Bailey? 18 MR. BAILEY: Sorry to interrupt, sir. 19 JUDGE HENNEKE: That's all right. 20 MR. BAILEY: We live in a retirement 21 community. Most folks don't have the money -- I spent 75 22 bucks for the stuff, and that was out of my budget. So, 23 just to let you know, we need help. 24 JUDGE HENNEKE: Okay. We'll have to see what 25 we can do. Would anyone else like to address the Court on 8-12-02 8 1 an item not listed on the regular agenda? Seeing none, 2 let's go to the Commissioners' Comments. First of all, I'll 3 announce that Commissioner Griffin is not here today. His 4 wife was having surgery in Houston this morning, and he is 5 down there attending to her, and our best wishes to Sandy 6 and her recovery from knee-replacement surgery. 7 Commissioner Baldwin? 8 COMMISSIONER BALDWIN: Yeah. I'll bring you 9 a Tivy High School football update. I know that shocks and 10 surprises most of you. But we completed our first week of 11 two-a-days, and today is the last day of two-a-days for the 12 year. Then they'll go into one -- one time a day practices. 13 But there's some little nicks and bruises, as you can 14 imagine, and have -- one or two kids spent overnight in the 15 hospital, little heat problem. But, other than that, 16 they -- the football team looks absolutely great. This 17 coming Saturday we go to Austin Westlake for a scrimmage, 18 and as some of you know, Austin Westlake is ranked by the 19 coaches as the number one big school in the state. So, 20 that's about all I want to say about that. I'll give you a 21 better report next week, if we make it back. 22 JUDGE HENNEKE: Okay. Commissioner Williams? 23 COMMISSIONER WILLIAMS: Nothing this morning, 24 Judge. 25 JUDGE HENNEKE: Commissioner Letz? 8-12-02 9 1 COMMISSIONER LETZ: I think the only comment 2 I have -- I can't remember if I did this before -- I think I 3 already mentioned this once at the last meeting, but Little 4 League, they did an outstanding job. I think -- I don't 5 think they had lost at our last meeting; I think they were 6 about to play. And 11- and 12-year-olds lost in the 7 championship game, the state championship, got beat quite 8 handily. The team they lost to ended up winning the 9 regional; Fort Worth West or West Side Fort Worth, I 10 believe, is the name of that Little League, and they're 11 advancing to the World Series in Williamsport, Pennsylvania. 12 So, we lost to the best, but it is -- it is a tough loss, 13 but that group of kids really did amazing things. They were 14 not expected to go anywhere near as far as they did. 15 They're kind of -- they just got better and better, so we're 16 real proud of that group of boys. 17 JUDGE HENNEKE: Excellent. I will remind 18 everyone that our next meeting on August 26th is a regular 19 scheduled evening meeting, so if you'll adjust your 20 timetables accordingly, we'll be meeting at 6:30 in the 21 evening on August 26th. Without any further ado, let's jump 22 into the approval agenda. We have some bills to pay, 23 Mr. Auditor. Does anyone have any questions or comments 24 regarding the bills as presented? 25 COMMISSIONER BALDWIN: Judge, I move we pay 8-12-02 10 1 the bills. 2 COMMISSIONER WILLIAMS: Second. 3 JUDGE HENNEKE: Motion by Commissioner 4 Baldwin, second by Commissioner Letz, that the Court approve 5 the -- approve payment of the bills as presented and 6 recommended by the Auditor. Any questions or comments? If 7 not, all in favor, raise your right hand. 8 (The motion carried by unanimous vote.) 9 JUDGE HENNEKE: Opposed, same sign. 10 (No response.) 11 JUDGE HENNEKE: Motion carries. Budget 12 amendments. Number 1 is for Road and Bridge Department. 13 MR. TOMLINSON: Last court meeting, the Court 14 approved a budget amendment for $21,142.45 for worker's 15 comp, and at that meeting we approved an amendment to -- to 16 be transferred from Contract Fees. After that -- after 17 visiting with Leonard, we -- he -- he recommended that we 18 change that to be transferred from the High Water Bridge 19 project, because he was going to use all the dollars in the 20 Contract Fees, so -- line item. 21 COMMISSIONER BALDWIN: I've got a question 22 about all that, real simple question. If we approve this -- 23 which I'm sure we will, but we have another court order just 24 kind of floating around out there from the previous meeting. 25 Would now be the time to clean that up, or do we just let 8-12-02 11 1 them continue to float around for years? 2 JUDGE HENNEKE: No, we'll -- we'll clean it 3 up. This will be in the nature of an amendment to what we 4 did last time. 5 COMMISSIONER BALDWIN: Good. 6 JUDGE HENNEKE: Any questions or comments? 7 COMMISSIONER LETZ: So moved. 8 COMMISSIONER WILLIAMS: Second. 9 JUDGE HENNEKE: Motion by Commissioner Letz, 10 second by Commissioner Williams, that the Court amend the 11 previous order transferring $21,142.45 from Contract Fees to 12 worker's compensation for Road and Bridge Department to 13 transfer the $21,142.45 from funds allocated for High Water 14 Bridge to worker's compensation. Any questions or comments? 15 If not, all in favor, raise your right hand. 16 (The motion carried by unanimous vote.) 17 JUDGE HENNEKE: Opposed, same sign. 18 (No response.) 19 JUDGE HENNEKE: Motion carries. Amendment 20 Number 2 is for the public library. 21 MR. TOMLINSON: Okay. I've had a 22 conversation with the City about -- about this issue, and 23 for the -- for Year 2001-2002, I think in a joint meeting 24 that the Court had with the City -- I have a copy of -- of 25 the request from the City at that time. Their request for 8-12-02 12 1 funding for the library, according to this copy that I have, 2 was $397,180. For some reason that I -- I don't know if 3 it's a typographical error or what, but we only budgeted 4 $377,176, so we're -- we're under budget for the library 5 funding by $20,004. So, I -- I told -- I told Dane Tune at 6 the City that I'd bring this issue to the Court today. The 7 only -- the only thing we can do is to declare an emergency 8 and -- and take the $20,004 from surplus funds from the 9 library fund. 10 COMMISSIONER WILLIAMS: How much is in there, 11 surplus library fund? 12 MR. TOMLINSON: There's approximately $60,000 13 to $80,000 in that fund. 14 COMMISSIONER BALDWIN: Could it be that we 15 actually budgeted that amount because that's what we meant 16 to do? And we shouldn't spend any more than that? Is that 17 a possibility? 18 MR. TOMLINSON: Well, I don't know. My 19 memory is not that good. 20 COMMISSIONER WILLIAMS: Well, I don't recall 21 we had any discussion about cutting the allocation. 22 COMMISSIONER BALDWIN: I'm sure we didn't, 23 but we should have that discussion. We may here in a little 24 while. 25 COMMISSIONER WILLIAMS: We may in a little 8-12-02 13 1 while; you never know. 2 COMMISSIONER BALDWIN: I'll second it. 3 COMMISSIONER WILLIAMS: I'll make the motion. 4 JUDGE HENNEKE: Motion by Commissioner 5 Williams, second by Commissioner Baldwin, that the Court 6 declare an emergency and increase Line Item 19-659-491 by 7 the amount of $20,004, with the funds to come from the Fund 8 19 Surplus Reserves. 9 COMMISSIONER WILLIAMS: Question. This puts 10 us square, then, for the balance of the budget year; is that 11 correct? 12 MR. TOMLINSON: That's correct. And that is 13 the same amount that the City funds. Exact same amount. 14 COMMISSIONER WILLIAMS: Okay. 15 COMMISSIONER BALDWIN: And Fund 19 is library 16 fund only. That can be used -- that money can only be used 17 for library fund only. 18 MR. TOMLINSON: It's designated as a special 19 revenue fund, and that's for -- for the purpose of -- of 20 funding the public library. 21 COMMISSIONER BALDWIN: Okay. 22 JUDGE HENNEKE: Any other questions? If not, 23 all in favor, raise your right hand. 24 (The motion carried by unanimous vote.) 25 JUDGE HENNEKE: Opposed, same sign. 8-12-02 14 1 (No response.) 2 JUDGE HENNEKE: Motion carries. Budget 3 Amendment Request Number 3 for the County Clerk. 4 MR. TOMLINSON: Okay. This request is from 5 the Clerk to transfer $74 from Software Maintenance to 6 Books, Publications, and Dues in her budget. 7 COMMISSIONER BALDWIN: So moved. 8 COMMISSIONER WILLIAMS: Second. 9 JUDGE HENNEKE: Motion by Commissioner 10 Baldwin, second by Commissioner Williams, that the Court 11 approve Budget Amendment Request Number 3 for the County 12 Clerk. Any questions or comments? If not, all in favor, 13 raise your right hand. 14 (The motion carried by unanimous vote.) 15 JUDGE HENNEKE: Opposed, same sign. 16 (No response.) 17 JUDGE HENNEKE: Motion carries. Budget 18 Amendment Number 4 for District Courts. 19 MR. TOMLINSON: This -- this budget amendment 20 lacks $30,000 -- $30,274.76 to be in balance. But I have -- 21 we have $6,470.69 in Special Trials in the 216th Court. I'm 22 recommending that we transfer that balance out, but we're -- 23 with the bills that we have to pay currently, we need $48.64 24 in Books, Publications, and Dues for the 216th Court, $900 25 in Court-Appointed Services for the 216th Court, $20,999.97 8-12-02 15 1 in bills in attorney's fees for -- for the 216th Court, 2 $3,092.30 for Court-Appointed Services for the 198th Court, 3 $7,942.50 for Court-Appointed Attorneys for the 198th Court. 4 Nowhere in the General Fund can I find $30,000 to transfer 5 into these line items for -- for this amendment. The 6 only -- the only thing I see to do is to declare an 7 emergency and pay these bills from -- from surplus funds in 8 the General Fund. 9 JUDGE HENNEKE: Did these bills relate -- 10 they don't relate to the trial that was just completed, do 11 they? 12 MR. TOMLINSON: No. No, they don't. 13 JUDGE HENNEKE: So we'll still have those to 14 come in. 15 MR. TOMLINSON: Still have those, yes. 16 JUDGE HENNEKE: What's the difference between 17 the amount in Special Trials and the amount in the -- have 18 you figured that -- did you figure that? 19 MR. TOMLINSON: It's $30,274.76. 20 JUDGE HENNEKE: That's in addition to the 21 $6,000 for -- 22 MR. TOMLINSON: Yes, that's in addition to. 23 JUDGE HENNEKE: Thirty thousand what? 24 MR. TOMLINSON: 274.76. 25 JUDGE HENNEKE: Okay. 8-12-02 16 1 COMMISSIONER WILLIAMS: What is Fund 10? 2 MR. TOMLINSON: That's the General Operating 3 Fund. I also -- I do have two late bills associated with 4 this amendment, and one is to J. Mitchel Private 5 Investigations for $350, and the other one is to Cindy 6 Snider for $3,092.30 for court transcript. 7 COMMISSIONER LETZ: I move we declare an 8 emergency, take the balance, 30,000 -- 9 JUDGE HENNEKE: 274.76. 10 COMMISSIONER LETZ: -- 274 from reserves. 11 COMMISSIONER WILLIAMS: Second. 12 JUDGE HENNEKE: Motion by Commissioner Letz, 13 second by Commissioner Williams, that the Court approve 14 Budget Amendment Request Number 4, transfer $6,470.69 from 15 Special Trials, declare an emergency, transfer $30,274.76 16 from Fund 10, Surplus Fund Balance, and authorize payment of 17 two late bills, one in the amount of $350 to J. Mitchel 18 Private Investigations, and one in the amount of $3,092.30 19 to Cindy Snider for court transcripts. Any questions or 20 comments? If not, all in favor, raise your right hand. 21 (The motion carried by unanimous vote.) 22 JUDGE HENNEKE: Opposed, same sign. 23 (No response.) 24 JUDGE HENNEKE: Motion carries. Order Number 25 5. 8-12-02 17 1 MR. TOMLINSON: Okay. Number 5 is -- is for 2 County Court at Law. They have court-appointed attorney's 3 bills totaling $2,680.40. Prior to this, we've transferred 4 funds from the County Court budget. Those have -- are 5 depleted. There are no excess funds in the County Court at 6 Law budget for -- for this amendment, so I'm recommending 7 that we declare an emergency and pay -- pay these bills for 8 $2,680.40. 9 COMMISSIONER LETZ: So moved. 10 COMMISSIONER WILLIAMS: Second. 11 JUDGE HENNEKE: Motion by Commissioner Letz, 12 second by Commissioner Williams, that the Court declare an 13 emergency and transfer $2,680.40 from Fund 10, Surplus Fund 14 Balance, to Expense Code 10-427-402 for Court-Appointed 15 Attorneys in the County Court at Law. Do we have any 16 surplus salary money anywhere, perhaps for the constable in 17 Precinct 1? Anything like that? 18 MR. TOMLINSON: We will have. 19 JUDGE HENNEKE: We will have, okay. But we 20 don't have enough yet to -- 21 COMMISSIONER LETZ: He's on vacation. 22 JUDGE HENNEKE: He's on vacation at this 23 time? 24 MR. TOMLINSON: He's still drawing salary 25 right now. 8-12-02 18 1 COMMISSIONER LETZ: I have a comment. Tommy, 2 is there a way to track -- to track the increased costs due 3 to whatever the legislation is that's causing this -- these 4 attorneys to be appointed sooner in the process? Because, I 5 mean, the reason for this is primarily that we're -- the 6 Legislature has mandated that we appoint -- or the judges 7 appoint attorneys earlier in the process. I suspect that's 8 the reason, anyway. 9 MR. TOMLINSON: Yeah, that is the reason. 10 And the answer to your question is yes, we can. In fact, 11 we're mandated by the same law to report those costs to -- 12 to the Legislature. 13 COMMISSIONER WILLIAMS: I think that's 14 something that -- 15 MR. TOMLINSON: That's something that -- 16 well, that report will be filed in November, and it's -- 17 it's for the period ending September 30th. 18 COMMISSIONER LETZ: Along with that report, I 19 would encourage the Court to remind me -- or someone else on 20 the Court remember to do a resolution to Harvey to try to 21 repeal that law, or at least if they're going to do it, have 22 the State pay for it. It's ridiculous. This is one of the 23 clearest state mandates that have been passed down to us 24 that is having disastrous budget effects to us, and we have 25 no control over it. And the judges really don't, either, to 8-12-02 19 1 a degree. They've been mandated to appoint the attorneys 2 sooner. And the only way we can get any relief from this 3 that I can see is through the Legislature. 4 JUDGE HENNEKE: Absolutely. Any other 5 questions or comments? If not, all in favor, raise your 6 right hand. 7 (The motion carried by unanimous vote.) 8 JUDGE HENNEKE: Opposed, same sign. 9 (No response.) 10 JUDGE HENNEKE: Motion carries. Number 6 is 11 for the Law Library. 12 MR. TOMLINSON: We have a bill for $50 for 13 books for the Law Library. They're -- that line item is 14 also depleted, and there's no -- no funds in that budget 15 to -- to pay that, so we're just going to have to declare an 16 emergency and pay this $50 from surplus funds in the Law 17 Library. 18 COMMISSIONER BALDWIN: So moved. 19 COMMISSIONER WILLIAMS: Second. 20 JUDGE HENNEKE: Motion by Commissioner 21 Baldwin, second by Commissioner Williams, that the Court 22 declare an emergency, increase the line item for books in 23 the Law Library by $50, take the funds for such increase 24 from the Fund 18 Surplus Fund Balance. 25 COMMISSIONER LETZ: I guess we can't send 8-12-02 20 1 books back? 2 JUDGE HENNEKE: I guess not. Don't ask me. 3 COMMISSIONER LETZ: I think, Tommy, you 4 may -- or maybe the Judge or someone -- I mean, someone 5 should just let the Law Library know they're out of money 6 and don't accept any more books. 7 JUDGE HENNEKE: Okay. 8 COMMISSIONER LETZ: I mean, pretty simple 9 solution to this one. 10 JUDGE HENNEKE: Any other questions or 11 comments? If not, all in favor, raise your right hand. 12 (The motion carried by unanimous vote.) 13 JUDGE HENNEKE: Opposed, same sign. 14 (No response.) 15 JUDGE HENNEKE: Motion carries. Item Number 16 7, Indigent Health Care. 17 MR. TOMLINSON: This amendment is for the 18 purpose of -- of funding the remainder of the year for the 19 administrative position that -- that we share with -- share 20 costs in with Peterson Hospital. We had budgeted $8,133.96. 21 We've discovered, through, from Peterson Hospital that they 22 had increased that salary without our knowledge, and we'll 23 need an additional $2,082.57 to match that salary for the 24 remainder of the year. We can take this money from -- from 25 Indigent Health Care expenditure line item, but we -- we are 8-12-02 21 1 very, very close to reaching the max on -- on indigent 2 health care, and I'm afraid that we will reach the max. 3 COMMISSIONER LETZ: Can we not tell Peterson 4 Hospital they need to absorb this until the next budget 5 year; that we have a budget and we plan to stick to it? 6 MR. TOMLINSON: We can. 7 COMMISSIONER LETZ: That's my recommendation. 8 COMMISSIONER WILLIAMS: This was done without 9 our prior knowledge? 10 MR. TOMLINSON: Well, that's -- I mean, this 11 is -- this is the first that we -- when we first realized 12 that we didn't have the funds to pay -- pay this person the 13 remainder of the year, so I -- I don't know when it was 14 done, so I can't really answer your question as to why and 15 when. 16 COMMISSIONER LETZ: I mean -- 17 JUDGE HENNEKE: There was some correspondence 18 about an increase in the salary, but I don't recall that it 19 was to be effective until next budget year. I'll have to go 20 back and look. I mean, the arrangement with Peterson 21 Hospital is that we pay half of the costs of the person who 22 does all the administrative work for the Indigent Health 23 Care program. 24 MR. TOMLINSON: I think the biggest problem 25 is our -- is the -- 8-12-02 22 1 JUDGE HENNEKE: And -- 2 MR. TOMLINSON: -- the difference in our 3 fiscal years. 4 COMMISSIONER LETZ: Right, I suspected that. 5 MR. TOMLINSON: We don't know, at our budget 6 process, what they're going to do on January 1. 7 JUDGE HENNEKE: And it's the kind of thing 8 where our obligation is to pay half the cost. Our 9 obligation is not to pay a set dollar amount, but to pay 10 half of the -- half of the costs for the individual. 11 COMMISSIONER BALDWIN: So what you're saying, 12 Fred, is that they could give that person a $10,000-a-year 13 raise, and we're obligated to pay for five, huh? 14 JUDGE HENNEKE: Well, theoretically, they 15 could. This is the same arrangement like the -- like the 16 public library. I mean, our obligation to the public 17 library is to pay half of the operating costs. 18 COMMISSIONER BALDWIN: Yeah. At least we 19 have some conversation with the City on that. 20 JUDGE HENNEKE: Yeah, we have decent dialogue 21 with the City. But, theoretically, if -- if the City 22 increases the operating budget of the library by $200,000, 23 we don't have any choice put to pay $100,000 of that, or 24 just -- you know, we're in breach of that contract. It's 25 the same situation with Peterson. 8-12-02 23 1 COMMISSIONER BALDWIN: Well, I'll be happy to 2 vote no on this one. I'll be happy to hold this budget 3 intact, the way it should be. 4 COMMISSIONER WILLIAMS: Can we have some 5 discussions with Peterson about deferring this until -- 6 MR. TOMLINSON: I have not, no. 7 COMMISSIONER WILLIAMS: Can we? 8 MR. TOMLINSON: Oh, yeah. Yeah, sure we can. 9 JUDGE HENNEKE: I'm surprised at the size of 10 the -- 11 COMMISSIONER LETZ: Big increase. 12 JUDGE HENNEKE: Why don't we just defer this 13 and come back next month -- or in two weeks? Number 8 is 14 Commissioners Court Professional Services. What is this 15 for? 16 MR. TOMLINSON: This -- I have three -- three 17 different bills from -- from attorneys. One is for 18 $5,355.48 for -- from Allison Bass. It's for -- for a suit 19 that -- that they're representing the County in. There is 20 another one for $61.09 to Thomas, Hudson, and Nelson for -- 21 for another -- for another litigation, and then there's a 22 separate one for $2,359.08 from Allison Bass and Associates 23 for yet a different litigation. 24 COMMISSIONER LETZ: Are all these at the 25 jail? 8-12-02 24 1 MR. TOMLINSON: No. One has to do with an 2 employee. The other one is -- is a drainage issue with Road 3 and Bridge. It's a Nancy Cavazos. 4 COMMISSIONER LETZ: Okay. That's the 5 lawsuit -- I know about that. 6 MR. TOMLINSON: And the other one is -- is a 7 jail issue. The first one is a jail issue. 8 COMMISSIONER LETZ: And the first one was 9 jail? 10 MR. TOMLINSON: Yes. 11 COMMISSIONER LETZ: Second one was? 12 MR. TOMLINSON: Cavazos. And the third one 13 was -- was an employee. 14 COMMISSIONER LETZ: Employee? 15 MR. TOMLINSON: Yes. 16 COMMISSIONER LETZ: What's the nature of 17 that? Not the name of the -- 18 MR. TOMLINSON: It's for Lori Ashley. She 19 was employed with the County Clerk's office. 20 JUDGE HENNEKE: Wrongful termination. 21 COMMISSIONER LETZ: So moved. 22 COMMISSIONER WILLIAMS: Second. 23 JUDGE HENNEKE: Motion by Commissioner Letz, 24 second by Commissioner Williams, that the Court approve 25 Budget Amendment Request Number 8, declare an emergency, and 8-12-02 25 1 increase the budget for Professional Services in the 2 Commissioners Court by the amount of $7,775.65, with the 3 funds to come from the funds in Surplus Fund Balance. Any 4 further questions or comments? If not, all in favor, raise 5 your right hand. 6 (The motion carried by unanimous vote.) 7 JUDGE HENNEKE: Opposed, same sign. 8 (No response.) 9 JUDGE HENNEKE: Motion carries. 10 COMMISSIONER BALDWIN: That's terrible. 11 JUDGE HENNEKE: Number 9. 12 MR. TOMLINSON: Okay. Number 9 is for the 13 District Clerk and -- and Jury Fund. The District Clerk has 14 asked for a transfer of $2,000 from Jury-Operating Supplies, 15 and $183.33 from Office Supplies, and to add $2,000 to 16 Postage and $151.88 to Microfilm Records, and $31.45 to 17 Books, Publications, and Dues. I do have a late bill 18 associated with this. It's to the United States Postal 19 Service for $2,000. 20 COMMISSIONER BALDWIN: So moved. 21 COMMISSIONER LETZ: Second. 22 JUDGE HENNEKE: Motion by Commissioner 23 Baldwin, second by Commissioner Letz, that the Court approve 24 Budget Amendment Request Number 9 and authorize issue of the 25 hand check in the amount of $2,000 to United States Postal 8-12-02 26 1 Service. Any further questions or comments? If not, all in 2 favor, raise your right hand. 3 (The motion carried by unanimous vote.) 4 JUDGE HENNEKE: Opposed, same sign. 5 (No response.) 6 JUDGE HENNEKE: Motion carries. Number 10. 7 MR. TOMLINSON: Number 10 is a request 8 from -- from the Sheriff's Office -- actually, for the 9 Sheriff's Office and the jail, to transfer $2,788.06 from 10 Deputy Salaries, Sheriff's Office, $219.80 from Crime 11 Prevention, $2,270.98 from Prisoner Supplies in the jail. 12 We're increasing Employee Medical Exams line item by 13 $219.80; Prisoner Medical, $2,270.98; and Radio Equipment, 14 $2,674.27, and Prisoner Supplies -- I'm sorry, Vehicle 15 Repairs and Maintenance for $113.79. 16 COMMISSIONER WILLIAMS: So moved. 17 COMMISSIONER BALDWIN: Second. 18 JUDGE HENNEKE: Motion by Commissioner 19 Williams, second by Commissioner Baldwin, that the Court 20 approve Budget Amendment Request Number 10 for County Jail 21 and Sheriff's Department. Any questions or comments? If 22 not, all in favor, raise your right hand. 23 (The motion carried by unanimous vote.) 24 JUDGE HENNEKE: Opposed, same sign. 25 (No response.) 8-12-02 27 1 JUDGE HENNEKE: Motion carries. Item Number 2 11 is for Maintenance Department and Environmental Health. 3 MR. TOMLINSON: Okay. This request is from 4 Glenn Holekamp to transfer $1,300 from Leasehold 5 Improvements, $10 from Office Supplies. The request is to 6 add $900 to telephone in Courthouse and Related Buildings 7 Department and $400 to Telephone for the Ag barn, and $10 8 for Environmental Health. 9 COMMISSIONER WILLIAMS: So moved. 10 COMMISSIONER BALDWIN: Second. 11 JUDGE HENNEKE: Motion by Commissioner 12 Williams, second by Commissioner Baldwin, that the Court 13 approve Budget Amendment Request Number 11. Any questions 14 or comments? 15 COMMISSIONER LETZ: Question. 16 JUDGE HENNEKE: Go ahead. 17 COMMISSIONER LETZ: I believe Mr. Holekamp 18 was in here -- there he is. Glenn, why are we spending so 19 much more on telephones? 20 MR. HOLEKAMP: Primarily, it's line charges, 21 plus we had to make some changes with some of the lines. 22 They -- every time you have problems with telephones, they 23 charge at a rate of $40 an hour, and so when you have 24 problems -- and then we had more problems with our phone 25 than anticipated, and plus the line charges, I didn't budget 8-12-02 28 1 enough for this last year. 2 COMMISSIONER LETZ: What's the nature of the 3 problems? 4 MR. HOLEKAMP: Static. It might be some 5 wiring problems in the building. We -- we find one problem, 6 then we got another one. And there's a lot of lines that 7 run -- especially at the Ag Barn -- run in those walls. 8 We've rerouted a lot of them, though. 9 COMMISSIONER LETZ: Okay, thank you. 10 JUDGE HENNEKE: Any other questions or 11 comments? If not, all in favor, raise your right hand. 12 (The motion carried by unanimous vote.) 13 JUDGE HENNEKE: Opposed, same sign. 14 (No response.) 15 JUDGE HENNEKE: Motion carries. Number 12 is 16 for the Court Collections Department. 17 MR. TOMLINSON: This request is from Brad 18 Alford in that department, to transfer $360 out of their 19 Credit History Reports line item to Operating Equipment. 20 COMMISSIONER BALDWIN: That's for a computer 21 monitor, I understand? 22 MR. TOMLINSON: That's correct. 23 COMMISSIONER BALDWIN: So moved. 24 COMMISSIONER LETZ: Second. 25 JUDGE HENNEKE: Motion by Commissioner 8-12-02 29 1 Baldwin, second by Commissioner Letz, that the Court approve 2 Budget Amendment Request Number 12 for the Court Collections 3 Department. Any questions or comments? If not, all in 4 favor, raise your right hand. 5 (The motion carried by unanimous vote.) 6 JUDGE HENNEKE: Opposed, same sign. 7 (No response.) 8 JUDGE HENNEKE: Motion carries. Number 13 is 9 for the County Treasurer. 10 MR. TOMLINSON: This request is to transfer 11 $600 from Notices to Postage. I also have a late bill 12 related to this for $370 to Kerrville Postmaster. 13 COMMISSIONER LETZ: Question. I thought that 14 all of the notices came out of the Commissioners Court 15 budget. What is this -- what is this budget line item for 16 in the Treasurer's? 17 MR. TOMLINSON: I can't answer that one 18 without my records. 19 COMMISSIONER LETZ: I mean, it's just 20 something -- we may find $600 later on today. I believe -- 21 don't they all come out -- Thea, don't all of the notices 22 come out of our own budget? 23 MS. SOVIL: Not all of them. I think some of 24 the other ones come out of different -- 25 MR. TOMLINSON: The Tax Collector has her own 8-12-02 30 1 budget for notices. 2 COMMISSIONER WILLIAMS: Road and Bridge does 3 too. 4 COMMISSIONER LETZ: I think we do all the -- 5 JUDGE HENNEKE: Public hearings. 6 COMMISSIONER WILLIAMS: What's interesting, 7 though, is we're this deep in the budget and we budgeted 8 $600; none of it's been spent. 9 COMMISSIONER LETZ: Right. 10 JUDGE HENNEKE: Any other questions or 11 comments? If not, all in favor, raise your right hand. 12 (The motion carried by unanimous vote.) 13 JUDGE HENNEKE: Opposed, same sign. 14 (No response.) 15 JUDGE HENNEKE: Motion carries. Item Number 16 14 is for Commissioners Court. 17 MR. TOMLINSON: Okay. This request is to 18 transfer $324.90 from Postage to Part-Time Salaries for 19 Commissioners Court. It's for court reporting services to 20 Paula Loetz. 21 COMMISSIONER BALDWIN: So moved. 22 COMMISSIONER WILLIAMS: Second. 23 JUDGE HENNEKE: Motion by Commissioner 24 Baldwin, second by Commissioner Williams, that the Court 25 approve Budget Amendment Request Number 14. Any other 8-12-02 31 1 questions or comments? If not, all in favor, raise your 2 right hand. 3 (The motion carried by unanimous vote.) 4 JUDGE HENNEKE: Opposed, same sign. 5 (No response.) 6 JUDGE HENNEKE: Anything else? 7 MR. TOMLINSON: I have two late bills. 8 JUDGE HENNEKE: Okay. 9 MR. TOMLINSON: One is to Ford Motor Credit 10 for $17,511.52, and it's to pay off -- the payoff on the -- 11 on the 2001 Ford that was totaled in the flood. We have an 12 insurance from TAC, $20,556, that we're going to use to pay 13 this with. 14 COMMISSIONER WILLIAMS: Sure glad it's that 15 way and not the other way around. 16 MR. TOMLINSON: Right. 17 COMMISSIONER BALDWIN: I move we pay. 18 COMMISSIONER WILLIAMS: Second. 19 JUDGE HENNEKE: Motion by Commissioner 20 Baldwin, second by Commissioner Williams, that the Court 21 authorize issuance of a hand check in the amount of 22 $17,511.52 payable to Ford Motor Credit for payment of the 23 2001 vehicle. Any questions or comments? All in favor, 24 raise your right hand. 25 (The motion carried by unanimous vote.) 8-12-02 32 1 JUDGE HENNEKE: Opposed, same sign. 2 (No response.) 3 JUDGE HENNEKE: Motion carries. 4 MR. TOMLINSON: The last one is -- is for 5 $300, payable to the Texas College of Probate Judges, and 6 it's for registration fee for Amy Bowlin. 7 COMMISSIONER WILLIAMS: For who? 8 MR. TOMLINSON: Amy Bowlin. 9 COMMISSIONER BALDWIN: So moved. 10 COMMISSIONER LETZ: Second. 11 JUDGE HENNEKE: Motion by Commissioner 12 Baldwin, second by Commissioner Letz, that the Court 13 authorize a handbill in the amount of -- hand check in the 14 amount of $300 payable to Texas College of Probate Judges 15 for registration fee for Amy Bowlin, the Probate clerk. Any 16 questions or comments? If not, all in favor, raise your 17 right hand. 18 (The motion carried by unanimous vote.) 19 JUDGE HENNEKE: Opposed, same sign. 20 (No response.) 21 JUDGE HENNEKE: Motion carries. 22 MR. TOMLINSON: Just a little history. In my 23 research in county records, I discovered in 1926, the 24 Commissioners Court issued a $9,000 debt for -- 40-year debt 25 for mosquito control. 8-12-02 33 1 JUDGE HENNEKE: Maybe we ought to look at 2 that again. At this time, I would entertain a motion to 3 waive reading and approve the minutes of the Monday, 4 July 8th, Monday, July 8th, Tuesday, July 9th, Wednesday, 5 July 10th, Friday, July 12th, and Monday, July 22nd, and 6 Tuesday, July 30th meetings of the Kerr County Commissioners 7 Court. 8 COMMISSIONER WILLIAMS: So moved. 9 COMMISSIONER LETZ: Second. 10 JUDGE HENNEKE: Motion by Commissioner 11 Williams, second by Commissioner Letz, that the Court waive 12 reading and approve the minutes of those July meetings. Any 13 questions or comments? If not, all in favor, raise your 14 right hand. 15 (The motion carried by unanimous vote.) 16 JUDGE HENNEKE: Opposed, same sign. 17 (No response.) 18 JUDGE HENNEKE: Motion carries. I'd also 19 entertain a motion to approve and accept the monthly reports 20 as presented. 21 COMMISSIONER LETZ: So moved. 22 COMMISSIONER WILLIAMS: Second. 23 JUDGE HENNEKE: Motion by Commissioner Letz, 24 second by Commissioner Williams, that the Court approve and 25 accept the monthly reports as presented. Any questions or 8-12-02 34 1 comments? If not, all in favor, raise your right hand. 2 (The motion carried by unanimous vote.) 3 JUDGE HENNEKE: Opposed, same sign. 4 (No response.) 5 JUDGE HENNEKE: Okay. Moving to the 6 consideration agenda, first item for discussion is Item 7 Number 1, consider a variance request for existing home on 8 Lots 2 and 4, River Oaks Lodge Subdivision. Franklin? 9 MR. JOHNSTON: Mr. Petty is purchasing 2 West 10 River Oaks Lane, a residence in River Oaks Lodge 11 Subdivision, and upon their survey of the lot, he discovered 12 that some steps from a -- a deck and one little corner of 13 the house, I believe -- 14 MR. PETTY: Closet. 15 MR. JOHNSTON: One little corner of the 16 closet coming out of the house actually encroached in a 17 private easement across his property, which was a road 18 across that easement. He's requesting a variance to the 19 setback rule. This house has been in this location over 18 20 years. All -- all the folks in the subdivision have signed 21 a petition saying that they agree with his position that it 22 should stay. The only two that have not signed it are, I 23 believe, out of state on vacation? 24 MR. PETTY: Out of state, yes. 25 MR. JOHNSTON: So it's not a controversial 8-12-02 35 1 thing. I would recommend the variance. 2 COMMISSIONER BALDWIN: You recommend the 3 variance? I so move that we approve the variance. 4 COMMISSIONER WILLIAMS: Second. 5 JUDGE HENNEKE: Motion by Commissioner 6 Baldwin, second by Commissioner Williams, that the Court 7 grant a variance to the setback rules for the existing home 8 on Lots 2 and 4, River Oaks Lodge Subdivision, owned by Mr. 9 and Mrs. William B. Petty, Jr., as reflected on the survey 10 of such lots prepared by Brian -- Byron R. Wilkinson, 11 Registered Professional Land Surveyor Number 1537. Any 12 questions or comments? 13 COMMISSIONER LETZ: Probably, just to make it 14 clear, the variance is from our requirements in our 15 Subdivision Rules. 16 JUDGE HENNEKE: Right. Not a variance from 17 any private easements, only a variance to the setback 18 requirements contained in the Subdivision Rules. 19 MR. JOHNSTON: That's correct. 20 JUDGE HENNEKE: All in favor, raise your 21 right hand. 22 (The motion carried by unanimous vote.) 23 JUDGE HENNEKE: Opposed, same sign. 24 (No response.) 25 JUDGE HENNEKE: Motion carries. Item Number 8-12-02 36 1 2 is consider advertisement for regulatory signs, name 2 changes, and school zone, and set the public hearing for the 3 same. Franklin? 4 MR. JOHNSTON: The name changes, Skyline 5 Drive West to be changed to Nimitz Drive West. Speed 6 limits, Old Mountain Home Loop Northwest, 35 miles an hour. 7 Boardwalk North, 45 miles an hour. Honey Creek West, 8 35 miles an hour. Under the category of No Dumping, 9 Kerrville South Drive South and Pike's Peak South. Stop 10 signs, Beaver Road South stops at Indian Creek Road South. 11 Under the category of School Zone, 20 mile-per-hour speed 12 limit in school zone 200 feet west and east of Our Lady of 13 the Hills High School property on Peterson Farm Road during 14 the hours of 8 a.m. to 9:15 a.m., and during the hours of 15 3 p.m. to 4 p.m. "School Speed Zone Ahead" sign, 500 foot 16 east of the 20 mile-an-hour school zone on Peterson Farm 17 Road. 18 COMMISSIONER LETZ: Our Lady of the Lake 19 opens up this fall? 20 COMMISSIONER WILLIAMS: Next Monday. 21 MR. JOHNSTON: Yeah, next Monday. 22 COMMISSIONER LETZ: Good. 23 JUDGE HENNEKE: It seems to me like the 24 starting date for that morning school zone speed limit 25 should be more like 7:30. I mean, is there -- 8-12-02 37 1 MS. HARDIN: That was the request of the 2 school. 3 JUDGE HENNEKE: The request was 8 o'clock? 4 Okay. All right. 5 MS. HARDIN: I think they start at 8:20. 6 COMMISSIONER WILLIAMS: I might tell the 7 Court that the delay in this appearing on our agenda so late 8 in the game or so close to the school's opening time had to 9 do with the thought that, because the City annexed the 10 property on Peterson Farm Road for the school, that in 11 accordance with the most resent legislation that came out of 12 Austin, that they would have also annexed part of the 13 road -- Peterson Farm Road, and had responsibility for it. 14 As it turns out, the annexation setback line for the school 15 property -- the setback line that the City annexed was about 16 60 feet away from our right-of-way, something like that -- 17 am I correct, Franklin? Fifty, 60 feet? And they believe 18 that in their annexation order, that was not adjacent to the 19 road, and therefore they have no responsibility and the 20 responsibility fell back on the County. That's the reason 21 for it being here and the reason for it being so late in 22 getting here. So, the school asked for us to attempt to 23 expedite it; they needed the signs in place as quickly as 24 possible, and we tried to do that for them. They want a 25 flashing light -- or flashing lights both east and west, and 8-12-02 38 1 those will have to be ordered and put in at a later date at 2 their cost. 3 MR. JOHNSTON: I think that's still a gray 4 area. I'm not sure whether, when the City annexes property, 5 they're supposed to annex the road, but they didn't do it in 6 this case. 7 COMMISSIONER WILLIAMS: It is a gray area, 8 and noting the County Attorney's in the room, I will advise 9 him that there will be a memo forthcoming to ask him to 10 research that to see whether or not they really can finesse 11 it the way they did finesse it, or whether or not that 12 property is, in fact, adjacent to our roadway, which would 13 give the City the obligation and responsibility to take care 14 of it. So, I'm in the process of drafting that, Mr. County 15 Attorney. It will be heading your way soon. 16 COMMISSIONER BALDWIN: I move for approval, 17 Judge. Set the public hearing September 23rd. 18 COMMISSIONER WILLIAMS: Second. 19 JUDGE HENNEKE: Motion by Commissioner 20 Baldwin, second by Commissioner Williams, that the Court 21 approve the advertisement for regulatory signs, name change, 22 and school zone, and set the public hearing for the same for 23 September 23rd, Year 2002, at 10 o'clock a.m. in the 24 Commissioners Court, 700 Main, Kerrville, Texas. 25 MR. JOHNSTON: That school sign is to be put 8-12-02 39 1 up immediately, right? Before the school starts? 2 JUDGE HENNEKE: Right. Any other questions 3 or comments? If not, all in favor, raise your right hand. 4 (The motion carried by unanimous vote.) 5 JUDGE HENNEKE: Opposed, same sign. 6 (No response.) 7 JUDGE HENNEKE: Motion carries. Item Number 8 3, consider name changes for privately maintained roads in 9 accordance with the 911 guidelines. 10 MS. HARDIN: I'd like to strike that first 11 one. The Dominion Ranch is in the process of being 12 replatted, and we have not been able to talk to Mr. Cummings 13 about whether or not he approves that road name change. All 14 the others are unnamed roads that only had numbers that 911 15 has made these requests on. 16 COMMISSIONER WILLIAMS: So moved. 17 COMMISSIONER BALDWIN: Second. 18 JUDGE HENNEKE: Motion by Commissioner 19 Williams, second by Commissioner Baldwin, that the Court 20 approve the name changes for privately maintained roads as 21 presented. Any questions or comments? If not, all in 22 favor, raise your right hand. 23 (The motion carried by unanimous vote.) 24 JUDGE HENNEKE: Opposed, same sign. 25 (No response.) 8-12-02 40 1 JUDGE HENNEKE: Motion carries. Item Number 2 4, consider and discuss damages to County facilities due to 3 the flooding in July 2002. Mr. Holekamp. 4 MR. HOLEKAMP: This -- this agenda item is 5 basically an information item, and possible action on one of 6 the particular buildings. Now, I'll go through -- you have 7 the little memo that I put with it. Extension Office is 8 probably -- and I say "probably" because FEMA has not given 9 us a definitive answer, "Yes, it is covered." But under the 10 guidelines that I have researched, it does meet the criteria 11 of some assistance on that particular building. You saw the 12 estimates which I received from the claims service that was 13 assigned by TAC, our insurance carrier. Those are the 14 estimates of the repairs on the Extension Office. I'll say 15 that one first, because that one is -- might -- is the 16 largest of the four issues, and they -- but I'm -- I would 17 like to maybe start on doing some of those repairs. The 18 carpets have been ripped out now for over a month, and the 19 floors in that particular office are -- still have some glue 20 on them, and it's -- if you stand too long, you may not 21 leave there. But it -- we have it where it's -- they are 22 able to operate out of that building. But I would like to 23 proceed with some repairs on that, particularly the flooring 24 and some of the sheetrock at the bottom of the -- by the 25 floor, because of the -- the mold issue; there's a little 8-12-02 41 1 bit forming. Number two is Facilities Use and Maintenance 2 office at the Ag building. 3 JUDGE HENNEKE: Excuse me. Why don't we take 4 these one at a time? 5 MR. HOLEKAMP: Okay, that'd be fine. 6 JUDGE HENNEKE: Do we -- can we go ahead with 7 the repairs, according to FEMA, on the Extension Agent's 8 office? 9 MR. HOLEKAMP: Yes. Once we -- once we have 10 everything -- this filled in and we keep some evidence of 11 the -- of the damages, which we have, we -- we can do some 12 work to -- to make these buildings happen -- for people to 13 operate out of. So -- and I'll make a call before anything 14 definite is done. I will call -- I expected -- maybe -- 15 Truby, have you heard -- 16 MS. HARDIN: No. I heard from them last 17 week. They still didn't have a date. 18 MR. HOLEKAMP: But Truby and I were in a 19 meeting with them, and they kind of indicated if we get some 20 of these estimates and stuff, that we can proceed with some 21 of the -- some of the work. Now, the only building that's 22 really actually FEMA-affected of mine would be the Extension 23 Office. The rest was rain that came in from the top, which 24 insurance should cover. 25 JUDGE HENNEKE: So, on the Extension Agent, 8-12-02 42 1 is it correct we're looking at $18,914.82? 2 MR. HOLEKAMP: That is the estimate from 3 Baggett Claims, yes, sir. And the deductible with -- with 4 -- on the insurance on that particular building is $25,000 5 on flooding. 6 JUDGE HENNEKE: Okay. 7 COMMISSIONER WILLIAMS: So it's either going 8 to be FEMA or the County that pays for it? 9 MR. HOLEKAMP: Yes, sir. Yes, sir, that's 10 correct. 11 COMMISSIONER LETZ: Where will the money come 12 from in the budget? 13 MR. HOLEKAMP: Well, I was hoping it would be 14 from the FEMA money. 15 COMMISSIONER LETZ: But if we don't get FEMA 16 money -- 17 MR. HOLEKAMP: Well, I'm not going to proceed 18 with -- at the level that they -- they want to do here 19 immediately. I mean, until we know for sure we will get 20 FEMA money. 21 JUDGE HENNEKE: So, what you're asking really 22 is the -- is for us to authorize you to go ahead and do some 23 limited temporary work in order to make the office more 24 functional; is that correct? 25 MR. HOLEKAMP: With the -- with the intent 8-12-02 43 1 that it has to be repaired, yes. I mean, we're going to 2 have to do something. 3 COMMISSIONER WILLIAMS: What would that 4 limited work be, if you haven't got the funding? 5 MR. HOLEKAMP: Well, right now, what needs to 6 be done is we need to go in and take approximately 6 inches 7 to a foot of the sheetrock off of the walls at the bottom by 8 the base boards. The reason for it is -- is there's been 9 some -- the moisture had gotten into it, and we've been -- 10 we've been spraying it with Clorox mixture to keep any kind 11 of mold growth from starting, but it -- that is -- and until 12 we get rid of it, get it cut out of there, we're going to 13 have a problem. So, I would really like to be able to go in 14 and try to get that out. And we'll have one process done, 15 so -- and I really believe that the -- the estimates that 16 these people have given us are very, very liberal. I 17 don't -- I don't see it really costing near that much to fix 18 this particular problem. The -- a lot of the tasks that 19 need to be done here can be done in-house. Really, these 20 numbers are based on hiring professionals. I feel like 21 probably everything can be done with employees and 22 trustee-type work, except possibly laying the tile. 23 COMMISSIONER LETZ: The -- and you have funds 24 in your budget to handle the -- the type of work you're 25 doing? 8-12-02 44 1 MR. HOLEKAMP: Yes, sir. 2 COMMISSIONER LETZ: Okay. 3 JUDGE HENNEKE: All right. 4 MR. HOLEKAMP: All right. Do y'all want to 5 do that one first, or -- 6 JUDGE HENNEKE: If you have the funds, you 7 know, I don't think you need to come to the Court for -- 8 just go ahead. 9 MR. HOLEKAMP: Okay. But, before do I 10 anything, I will get ahold of FEMA. 11 JUDGE HENNEKE: Yeah. 12 MR. HOLEKAMP: To make sure that this is 13 appropriate of what we're -- we're trying to do here, 14 before -- before we're denied later on. 15 JUDGE HENNEKE: Okay. 16 MR. HOLEKAMP: There is one change in all 17 those estimates. They based it on -- on going back with 18 carpet, which was in there, and the Extension people -- both 19 of them are here, actually, Eddie and Amy both, and they've 20 indicated to me they would really like for us to use a good 21 quality tile instead of carpet because of the maintenance 22 issue, and I applaud them for coming forward and asking 23 that, because it is much easier to maintain. But that is a 24 request on their part, which really, dollar-wise, it will 25 not -- that will not impact anything. 8-12-02 45 1 JUDGE HENNEKE: Okay. 2 COMMISSIONER BALDWIN: That's what county 3 agents do, is know about things like that. 4 MR. HOLEKAMP: That's correct. And I 5 appreciate their input. All right. Number two, Facilities 6 Use and Maintenance Office out at the Ag Barn. The estimate 7 there was approximately $6,000 worth of damages -- I believe 8 that's correct. I didn't memorize them yet. Yeah, $6,146. 9 And what we're going to have to do there probably is tear 10 out the plywood walls -- or the paneling walls. We've got 11 water in between that came down in between the walls, and it 12 goes along with the telephone deal too; those wires run in 13 there. And we'll have to change some electrical conduit and 14 stuff like that that's placed in those walls. But there's 15 a -- that one there is -- my recommendation at this time on 16 that is to -- that's an insurance claim; insurance will 17 cover the damages on that particular office. They've got -- 18 the insurance adjuster from Baggett, Mr. Andersen, made the 19 comment, though, as saying that normally if you -- if you 20 have a claim, and you -- you repair it, and then you come 21 back and that same problem happens again, like water from 22 the roof comes down and ruins your walls, they're not going 23 to pay for it a second time. It's shame on you that second 24 time. 25 So, I think on that one there, I would like 8-12-02 46 1 to discuss possibly, as part of a long-range plan -- I don't 2 think that's -- I think we'll take the walls out right now, 3 the paneling, and discuss to what extent the Court wishes to 4 go back with that particular office, and we'll go from 5 there. Currently, the -- the booking office has been moved 6 downstairs here at the courthouse, formerly where Russ 7 Duncan was placed, in that office, and we're running back 8 and forth on the -- showing the facility and that sort of 9 thing. So -- and the same thing with the Exhibit Hall. 10 There was a limit to the amount of damage from that, and 11 it's all caused from the roof -- roof not holding that 12 volume of water that's coming off of the newer barn and the 13 roof itself. They -- it just cannot hold the volume. 14 Then the courthouse here, which were all 15 minor -- in my mind, it was minor, except for there's one 16 corner in the County Court at Law wall on the -- it would be 17 the -- I guess it would be the west end of the courthouse, 18 and it ran down in the wall between the bricks and the 19 interior walls, and it popped out some plaster in J.P. 1's 20 office in the wall. We've had an issue there that it's 21 going to take somewhat -- some repair work. The rest of the 22 damages that we received were ceiling tile, which are 23 minimal, replacement, and the roofing company has indicated 24 that they are going to come and try to find some of those 25 leaks. It may be insurance -- I mean warranty issues. If 8-12-02 47 1 not, I believe that we can deal with them in-house through 2 general repair. I don't think it's a -- it's a major deal 3 here at the courthouse. We're very fortunate in the flood 4 that that was the only damage we had. Any other questions? 5 COMMISSIONER LETZ: So, really, we don't need 6 any action right now. You have the -- you just want to 7 update us as to the status, and then at the Facilities Use 8 and Maintenance Office and in the Ag building, you're going 9 to, as I understand it, do minimum repairs now and then come 10 back to us with a long-range -- 11 MR. HOLEKAMP: Well, yes. What I'm doing out 12 there, as soon as we get some people lined up to do it, 13 we're going to tear the walls out of there, the -- the 14 paneling out, 'cause that's all buckled, and because of the 15 moisture in there. We're going to take the ceiling tile 16 out, so it's going to be like the old days where you just 17 have the subfloor as the -- the ceiling. And we can 18 maintain a -- you know, a rough office as such out there 19 for -- for the people that are stationed out there, but 20 it's -- it's going to be a little difficult, you know, to do 21 a whole lot of hosting of, you know, people wanting to look 22 at the facility. So -- 23 COMMISSIONER LETZ: Okay. 24 MR. HOLEKAMP: But the only thing is on the 25 Extension Office, and I think you -- the question was -- is 8-12-02 48 1 do you have the funds to do it? Now, if we do what they say 2 in here, no, I don't have that kind of money. 3 COMMISSIONER LETZ: Right. 4 MR. HOLEKAMP: But what I'm saying is, if I 5 can get started on the sheetrock and things like this, and 6 be ready to go with tile flooring when the budget allows me 7 to, which would be probably in September, or if FEMA comes 8 through with some money, I'll be ready to go. I'm asking 9 the authority so once that happens, we can go ahead and fix 10 it, 'cause these people have been pretty patient with me 11 with this floor, but there's really nothing I can do until I 12 get final word from FEMA. 13 COMMISSIONER LETZ: I think -- I mean, I 14 don't have any problem with that, but you're still going to 15 have to come back with a budget amendment to get that money 16 into that account, I would think. 17 MR. HOLEKAMP: Oh, yes, sir. When we -- 18 COMMISSIONER LETZ: If FEMA pays. 19 MR. HOLEKAMP: Oh, yeah. 20 COMMISSIONER LETZ: I mean, at some point, to 21 get the repairs completed, it's going to take a budget 22 amendment; you're going to have to come back at that point. 23 MR. HOLEKAMP: Yes, sir. 24 JUDGE HENNEKE: Generally, Tommy, how will we 25 handle this reimbursement from FEMA for repair issues? I 8-12-02 49 1 mean, will it -- will the money come in and then we'll do a 2 budget amendment to transfer it, say, to the Maintenance 3 Department or the Road and Bridge Department, or how does 4 that work? 5 MR. TOMLINSON: We'll treat it as a separate 6 issue. We'll probably pay for it through -- out of the 7 Maintenance budget and reimburse it through FEMA funds. 8 JUDGE HENNEKE: Okay. 9 MR. TOMLINSON: We still have to have a 10 match, though. 11 JUDGE HENNEKE: Yeah. 12 MR. TOMLINSON: I'm sure that part of the 13 work that they're going to do would qualify as a match. 14 MR. HOLEKAMP: Yes. That's what -- those 15 people indicated that labor and stuff would be considered as 16 a match. 17 MR. ODOM: Twenty-five percent. 18 MR. HOLEKAMP: I think Road and Bridge has 19 the same thing on some of the work that they do. 20 JUDGE HENNEKE: Okay. Any other questions 21 for Glenn? Thank you, sir. 22 MR. HOLEKAMP: Thank you. 23 JUDGE HENNEKE: Commissioner Williams, I want 24 to suggest that we might want to consider taking up Items 6, 25 7, and 8 together. 8-12-02 50 1 COMMISSIONER WILLIAMS: That's fine. 2 JUDGE HENNEKE: Do you think that will work? 3 COMMISSIONER WILLIAMS: 6, 7, 8 or 5, 6, 7? 4 JUDGE HENNEKE: 5, 6 and 7. 5 COMMISSIONER LETZ: I think 5 is a different 6 item than 6 and 7. 7 COMMISSIONER WILLIAMS: Well, 5 has to do 8 with the sewer wastewater collection project, and the others 9 have to do with funds for -- 10 JUDGE HENNEKE: Let's take up Item Number 5, 11 consider and discuss approval of a resolution authorizing 12 Grantworks, on behalf of Kerr County, to submit an 13 application to Texas Community Development Program for 14 continuation of the Kerrville South Wastewater Collection 15 System Project. Commissioner Williams. 16 COMMISSIONER WILLIAMS: Mr. Hartzell of 17 Grantworks is here with us this morning. Eric, will you 18 come up front and center? We had a public hearing to talk 19 about a couple items that have to do with obtaining funds 20 for projects and reimbursement on flood damage and so forth. 21 The public hearing was July 30th. It was attended by two 22 persons from the general public at large, none of which 23 spoke in opposition to what the County was attempting to do. 24 Eric, would you like to bring us up to speed with this one? 25 MR. HARTZELL: Sure. Thank you, Commissioner 8-12-02 51 1 Williams and Judge and Commissioners Court. My name is Eric 2 Hartzell with Grantworks. Item 5 is a resolution to apply 3 for continuation of the Kerrville South Wastewater Project 4 that's been funded so far for about $750,000. There's a 5 pending application that's not been -- we have not received 6 the word on. This application would be to continue laying 7 sewer line and connect -- placing connections in the Loyal 8 Valley area of Kerrville South. This is through the 9 Community Development Funds, which is a competitive fund 10 throughout the Alamo area. This project, being a first-time 11 sewer project, would have a fairly decent chance of it being 12 funded. The match is 5 percent of the $250,000 grant 13 amount, which is $12,500, and that would be provided by the 14 Upper Guadalupe River Authority. 15 COMMISSIONER WILLIAMS: I move the resolution 16 as presented, for the County to apply through Grantworks for 17 T.C.D.B. funds in the amount of $250,000 for the 18 continuation of the Kerrville South Wastewater Collection 19 Project. 20 COMMISSIONER LETZ: This is the project -- 21 this is continuing the line that's under construction right 22 now through the golf course, extending that line and hooking 23 up, getting to where the hookups are? 24 MR. HARTZELL: Yeah. Part of that same 25 target area, yes. 8-12-02 52 1 JUDGE HENNEKE: Not specifically that line, 2 because the funds for that line are already in-hand. 3 COMMISSIONER WILLIAMS: Already in place. 4 JUDGE HENNEKE: This is to continue the 5 project and hook up more houses to the lines that are being 6 built with the original funds. 7 COMMISSIONER WILLIAMS: This would get us 8 down to the real source of the problem, the Loyal Valley 9 area. 10 MR. HARTZELL: The first -- the Loyal -- the 11 golf course line is an upgrade to the city system. That 12 will allow it to accommodate the overall flow from the 13 target area. About a third to a half of the first grant is 14 going to be used to upgrade the infrastructure. 15 COMMISSIONER LETZ: Second. 16 JUDGE HENNEKE: Motion by Commissioner 17 Williams, second by Commissioner Letz, that the Court 18 approve a resolution authorizing Grantworks, on behalf of 19 Kerr County, to submit an application for $250,000 to the 20 Texas Community Development Program for continuation of the 21 Kerrville South Wastewater Collection System Project. Any 22 questions or comments? If not, all in favor, raise your 23 right hand. 24 (The motion carried by unanimous vote.) 25 JUDGE HENNEKE: Opposed, same sign. 8-12-02 53 1 (No response.) 2 JUDGE HENNEKE: Motion carries. Item Number 3 6 is consider and discuss approval of a resolution 4 authorizing Grantworks, on behalf of Kerr County, to submit 5 an application to the Texas Department of Housing and 6 Community Affairs for up to $500,000 for HOME, H-O-M-E, 7 Disaster Assistance. 8 COMMISSIONER WILLIAMS: Did you want to 9 combine 6 and 7? 10 JUDGE HENNEKE: Let's just take them 11 separately. 12 COMMISSIONER WILLIAMS: Okay. 13 MR. HARTZELL: All right. Item 6, I would 14 actually, if it's the Court's pleasure, remove that item. 15 The HOME Program has not developed their materials yet. 16 They're running behind on getting their applications ready, 17 so we'd like to come back with that later. 18 COMMISSIONER WILLIAMS: Which one? 19 MR. HARTZELL: The HOME Program, the housing 20 assistance. It's a different agency, and they haven't 21 developed their material. 22 JUDGE HENNEKE: Okay. 23 COMMISSIONER WILLIAMS: Okay. So we we're 24 taking 6 off? 25 MR. HARTZELL: Yeah. 8-12-02 54 1 COMMISSIONER WILLIAMS: Okay. Come back 2 another date. 3 JUDGE HENNEKE: We'll continue on with Item 4 7, which is consider and discuss approval of a resolution 5 authorizing Grantworks, on behalf of Kerr County, to submit 6 application to Texas Community Development Program for 7 $350,000 Disaster Relief funds to be used county-wide to 8 carry out administration, engineering, and eligible disaster 9 relief-related improvements throughout Kerr County. 10 Commissioner Williams. 11 COMMISSIONER WILLIAMS: Eric? 12 MR. HARTZELL: Okay. This item is to apply 13 for the -- for funds that can be used as the 25 percent 14 matching requirement for FEMA funds. This program is the 15 same funds that are used for water and wastewater projects. 16 The State will set aside a certain percentage to be used as 17 disaster relief to meet local match obligations for FEMA. 18 The max number grant is $350,000, and it would be able to be 19 used for that 25 percent for any public infrastructure that 20 the County will be working on through FEMA. 21 COMMISSIONER WILLIAMS: This was one of the 22 topics at the public hearing, correct? 23 MR. HARTZELL: Correct. 24 COMMISSIONER WILLIAMS: The match can be 25 in-kind; is that correct? 8-12-02 55 1 MR. HARTZELL: There actually isn't any match 2 for this $350,000. This actually is the match for FEMA. 3 COMMISSIONER WILLIAMS: Okay. That's better 4 yet. 5 MR. HARTZELL: Yeah, it's cash. 6 COMMISSIONER WILLIAMS: I move the resolution 7 as presented. 8 COMMISSIONER LETZ: Second. 9 JUDGE HENNEKE: Motion by Commissioner 10 Williams, second by Commissioner Letz, that the Court 11 approve the resolution authorizing Grantworks, on behalf of 12 Kerr County, to submit an application to Texas Community 13 Development Program for $350,000 Disaster Relief funds to be 14 used county-wide to carry out administration, engineering, 15 and eligible disaster relief-related improvements throughout 16 Kerr County. 17 COMMISSIONER LETZ: What's the likelihood of 18 getting the full $350,000 on this? 19 MR. HARTZELL: The only thing that prevents 20 the County from getting the full $350,000 would be if the 21 amount that FEMA awards the County is less than 22 $1.4 million. 23 COMMISSIONER WILLIAMS: If it's less than 24 1.4? 25 MR. HARTZELL: That's right. You get 8-12-02 56 1 25 percent of whatever your FEMA -- 2 COMMISSIONER WILLIAMS: That works against 3 us? Did I understand correctly? 4 MR. HARTZELL: You get 25 percent of whatever 5 FEMA gives you. 6 COMMISSIONER WILLIAMS: Right. 7 MR. HARTZELL: So, 25 percent of 1.4 million 8 is 350. That's the max number you can get, though. 9 COMMISSIONER LETZ: Leonard, what's it look 10 like our road damage is going to be to qualify for FEMA? 11 MR. ODOM: Whatever our 25 percent is, is a 12 real cooperation deal. We'll cover our 25 percent plus 13 their 75. So, if you get $350,000, I don't -- 14 COMMISSIONER WILLIAMS: You'd have to have 15 $1.4 million. 16 MR. ODOM: We'd have to have $1.4 million. I 17 don't think I'm at that point at all. Maybe $400,000 to 18 $600,000, maybe. But, then again, there's the Hermann Sons 19 Bridge, and we're not quite sure what FEMA's going to do, 20 because they haven't showed up yet. But then would we go 21 back like we did before and them participate? So, as far as 22 my 25 percent, I feel comfortable, wherever that's at, that 23 this thing will -- I think it's Gus Garcia, is who my 24 contact is. 25 COMMISSIONER LETZ: And you have in your list 8-12-02 57 1 the Flat Rock, Third Creek crossing -- the Third Creek at 2 Flat Rock Park? 3 MR. ODOM: Glenn, I believe, has that -- 4 submitted that. We submitted it, but I think when we met, 5 then we put that together with Glenn's, whatever Glenn had. 6 So, they should be covered. We initially put that in. 7 COMMISSIONER LETZ: All right. Thank you. 8 JUDGE HENNEKE: Did we vote? 9 COMMISSIONER WILLIAMS: We have not voted. 10 JUDGE HENNEKE: Okay. All in favor, raise 11 your right hand. 12 (The motion carried by unanimous vote.) 13 JUDGE HENNEKE: Opposed, same sign. 14 (No response.) 15 JUDGE HENNEKE: Motion carries. 16 COMMISSIONER WILLIAMS: Thank you, Eric. 17 MR. HARTZELL: Thank you. 18 JUDGE HENNEKE: Thank you, Eric. Item Number 19 8, consider and discuss approval of the estoppel letter 20 related to Mooney leases as the airport. This is the second 21 round of the letter, which we authorized sometime back in 22 the spring. It's for purposes of comfort for the lender for 23 Mooney. It's on the agenda for the City for tomorrow. 24 COMMISSIONER BALDWIN: I move for approval. 25 COMMISSIONER WILLIAMS: Second. 8-12-02 58 1 JUDGE HENNEKE: Motion by Commissioner 2 Baldwin, second by Commissioner Williams, that the Court 3 approve the estoppel letter related to Mooney leases at the 4 airport as presented. Any questions or comments? If not, 5 all in favor, raise your right hand. 6 (The motion carried by unanimous vote.) 7 JUDGE HENNEKE: Opposed, same sign. 8 (No response.) 9 JUDGE HENNEKE: Motion carries. One more, 10 then we'll break. Next item, Item Number 9, consider and 11 discuss the approval of the 2002-2003 Kerr County Community 12 Plan. As you gentlemen undoubtedly remember, this is a plan 13 that's required in order to apply for certain federal 14 grants. It's a plan that's prepared by different agencies, 15 working in cooperation with the citizens. It's a good plan, 16 and the citizens have again brought it to the Court and 17 asked us to approve it, which does add some weight to their 18 grant applications. If anyone has any questions about the 19 plan, I'll be happy to try to answer them. 20 COMMISSIONER BALDWIN: I move for approval. 21 COMMISSIONER LETZ: Second. 22 JUDGE HENNEKE: Motion by Commissioner 23 Baldwin, second by Commissioner Letz, that the Court approve 24 the 2002-2003 Kerr County Community Plan as presented. Any 25 questions or comments? If not, all in favor, raise your 8-12-02 59 1 right hand. 2 (The motion carried by unanimous vote.) 3 JUDGE HENNEKE: Opposed, same sign. 4 (No response.) 5 JUDGE HENNEKE: Motion carries. I propose a 6 15-minute break. Let's return at 10:35. 7 (Recess taken from 10:20 a.m. to 10:35 a.m.) 8 - - - - - - - - - - 9 JUDGE HENNEKE: Okay. Let's reconvene this 10 regular session of the Kerr County Commissioners Court 11 meeting. Next item for consideration is Item Number 10, 12 consider and discuss approval of the FY 2002 (sic) Kerr 13 Central Appraisal District budget, a copy of which is in 14 your packet. I saw Mr. Coates here earlier. 15 COMMISSIONER BALDWIN: I did, too. 16 (Discussion off the record.) 17 JUDGE HENNEKE: Does anyone have any 18 questions about the 2003 proposed budget for Kerr Central 19 Appraisal District? 20 COMMISSIONER LETZ: Yes. On salaries, on 21 average, it's going up, looks like, 4 percent? 22 MR. COATES: Well, it's an increase over the 23 allotted amount -- actually, about a 3 percent increase over 24 last year's. We had some employees that left last year, and 25 so we were able to take care of that increase by the -- last 8-12-02 60 1 year's budget overage, basically. I mean, they were 2 allotted, so we realigned the salaries for the year. We had 3 -- we had four employees -- trained employees that have left 4 in the last couple of years. Two of them had R.P.A.'s, 5 which is the highest level you can reach as an appraiser. 6 One of them was working on it, and the other one was 7 clerical. 8 COMMISSIONER LETZ: Okay. Let me ask a 9 different question. 10 MR. COATES: Okay. 11 COMMISSIONER LETZ: Try a different angle 12 here. 13 MR. COATES: All right. 14 COMMISSIONER LETZ: Did you put in a 15 cost-of-living -- 16 MR. COATES: Yes, sir. 17 COMMISSIONER LETZ: The 2.6 cost-of-living 18 adjustment that you have basically in the backup? 19 MR. COATES: Yes, sir -- well, actually, my 20 board put it in, but -- 21 COMMISSIONER LETZ: Okay. Is there -- I see 22 a board member back there. Paula, is that tied -- or was 23 that 2.6 tied to a specific index? Or is that -- or is that 24 just something that was just decided, that that is a 25 reasonable cost-of-living adjustment? 8-12-02 61 1 MR. COATES: That was the Social Security 2 cost-of-living increase at the time. 3 MS. RECTOR: Yeah. 4 COMMISSIONER LETZ: Okay. All right. 5 JUDGE HENNEKE: Any other questions regarding 6 the K.C.A.D. budget? 7 COMMISSIONER LETZ: Overall, looks pretty 8 good. 9 JUDGE HENNEKE: Pretty tight. 10 COMMISSIONER LETZ: Pretty tight. 11 MR. COATES: Thank you. 12 JUDGE HENNEKE: Do we have a motion to 13 approve? 14 COMMISSIONER LETZ: I move we approve the 15 proposed 2003 budget for Kerr Central Appraisal District as 16 presented. 17 COMMISSIONER WILLIAMS: Second. 18 JUDGE HENNEKE: Motion by Commissioner Letz, 19 second by Commissioner Williams, that the Court approve the 20 2003 Kerr Central Appraisal District budget as presented. 21 Any other questions or comments? If not, all in favor, 22 raise your right hand. 23 (The motion carried by unanimous vote.) 24 JUDGE HENNEKE: Opposed, same sign. 25 (No response.) 8-12-02 62 1 JUDGE HENNEKE: Motion carried. Thank you, 2 Fourth. Next item, Item Number 11, is consider and discuss 3 presentation by Kerr County financial adviser regarding 4 proposed issuance of lease revenue bonds by Hill Country 5 Juvenile Facility Corporation to refinance and make 6 improvements to the existing Juvenile Facility 7 Corporation -- Juvenile Detention Facility, and the 8 responsibilities and obligations of Kerr County in 9 connection with such refinancing. Bob Henderson, the 10 County's financial adviser, is here. 11 Before I turn it over to Bob, I want to 12 remind everyone that, based on our previous discussions, the 13 Juvenile Detention Center is -- is over capacity; has been 14 for some time. What is being proposed here is to build an 15 additional 24 beds, which will be used for children before 16 they're actually sentenced, what they call preadjudicated. 17 The need for these -- right now, we have 12 beds for 18 preadjudicated. The need for this is really being driven by 19 the demand for preadjudicated beds from Kerr County, 20 Bandera, Kimball, Kendall, Gillespie, the counties that are 21 served by the two District Judges here in Kerr County, and 22 it's a need that, over the next few years, is going to get 23 to the point the facility will be barely able, if at all, to 24 handle just the kids from the two districts here in Kerr 25 County. So, with that introduction, which we've been 8-12-02 63 1 through before, I'll turn it over to Bob for current status. 2 MR. HENDERSON: Thank you, Judge, members of 3 the Commissioners Court. For the record, my name is Robert 4 Henderson. I'm the Managing Director of Dain Rauscher. We 5 have the honor of being financial advisers to the County for 6 10 years now, and actually, personally, many more years than 7 that, when I was at my previous firm. The last time we came 8 before the Commissioners Court to discuss this issue was 9 actually over a year ago, when the discussion first arose 10 about refinancing the existing debt and to finance an 11 expansion to that facility. Refinancing has become even 12 more attractive in today's market than we saw a year ago. 13 You may recall that the existing debt outstanding is at 14 7.8 percent. I think we can look for very, very 15 substantially lower interest rates in today's market. 16 The primary reason that we are here to 17 discuss the project today is that, since we made the 18 presentation a year -- 15 months ago, we have done some 19 additional investigations, through the work of Tom Spurgeon 20 and his firm of McCall, Parkhurst and Horton, clarifying the 21 exact legal structure of the 1994 lease revenue bonds that 22 we're seeking to refinance and what the legal opportunities 23 are with respect to the structure of this debt. We are here 24 today to present a structure to Commissioners Court that is 25 different than what we talked about last year, and I want to 8-12-02 64 1 explain the structure, and then I'll briefly explain the 2 difference. Very few people say I actually need a 3 microphone, so I think I can holler from over here. 4 In this transaction, we actually have three 5 parties involved. The facility development corporation -- a 6 new development corporation is being created, the Hill 7 Country Facilities Development Corporation. This 8 corporation will acquire the existing facility from the 9 existing facilities development corporation, issue lease 10 revenue bonds, which will be sold to the investors. The 11 investors will provide the money to the development 12 corporation. The development corporation, in turn, will 13 lease the facility directly to Kerr County. Kerr County 14 then will enter into an operating agreement with the 15 Juvenile Board, who will operate the system and maintain the 16 system under the terms of the operating agreement, make 17 payments on the debt back to the facilities development 18 corporation, who in turn would deliver the money to the 19 investors. 20 The difference between this structure and 21 what we presented to Commissioners Court last year was that 22 we thought at the time that the Facility Development 23 Corporation could lease this facility directly to the 24 Juvenile Board and not involve directly the Kerr County 25 Commissioners Court. In '94, what happened was there was a 8-12-02 65 1 lease between the Facilities Development Corporation and the 2 Juvenile Board, with it being noted that the Juvenile Board 3 was acting as agent for Kerr County. That transaction was 4 not approved by the Attorney General's office. Mr. Spurgeon 5 can address that, the legalities, but -- but as he was 6 investigating the statutory authority of the corporation, he 7 found out that Juvenile Board did not have the statutory 8 authority to enter into a lease directly with the Facilities 9 Development Corporation, and therefore, we need to go 10 through this structure. That being the case, we wanted 11 to -- to present this to the Commissioners Court for your 12 consideration and answer any questions that you might have 13 about it. 14 COMMISSIONER LETZ: Can you explain a little 15 bit more -- I guess I should know, 'cause it must be in 16 existence, but the Facilities Development Corporation, who 17 is that? 18 MR. HENDERSON: When -- in 1994, when the 19 lease revenue bonds were originally issued, the structure of 20 that transaction was that the Facility Development 21 Corporation was created, and the board of that corporation 22 is, in fact, the Juvenile Board. 23 JUDGE HENNEKE: The deal was done in 1994. 24 There was no County direct involvement, other than the lease 25 with the Juvenile Board -- 8-12-02 66 1 MR. HENDERSON: That was Recor. 2 JUDGE HENNEKE: -- when the company that 3 built the facility defaulted. 4 COMMISSIONER LETZ: Right. 5 JUDGE HENNEKE: The Commissioners Court at 6 that time set up what's called a public facilities 7 corporation, and its name is the Kerr County Juvenile 8 Facility Corporation, and that currently owns the Detention 9 Center. 10 COMMISSIONER LETZ: Right. 11 JUDGE HENNEKE: Because the financing in 1994 12 was not approved by the Attorney General, in order to 13 refinance the existing debt and get money to expand, the 14 existing facility had to be sold. So, we have set up a new 15 facilities corporation called the Hill Country Juvenile 16 Detention Corporation, which will take title to the 17 facility, and that's why -- and we've already set up that -- 18 the Commissioners Court set up that new public facilities 19 corporation about -- 18 months ago? 20 MR. HENDERSON: Yes, sir. 21 MR. SPURGEON: A year ago. I think it was in 22 August of last year. 23 JUDGE HENNEKE: So that's already in place. 24 But that's -- that's how that all came about and fits 25 together. 8-12-02 67 1 MR. HENDERSON: The purchase option date to 2 acquire the facility from the existing Facilities 3 Development Corporation is February 1, 2003. In order to 4 meet that deadline, we have a time table of events that has 5 been presented and adopted by the Juvenile Board, which has 6 documents being prepared at the end of this month, with an 7 expected sale in October and delivery in November, which is 8 within 90 days of that option price date -- I'm sorry, the 9 option date of February 1, 2003. So, we will be proceeding 10 with this transaction forthwith. 11 COMMISSIONER WILLIAMS: Bob, what is the 12 total amount of bond revenue debt in this -- first, for 13 refinancing, and secondly, for new facilities? 14 MR. HENDERSON: The -- the purchase option 15 price on the 1994 bonds is $1,903,493. That's what it will 16 be on February 1st, 2003. The most recent budget -- and 17 keep in mind this project has largely been on hold since 18 last November. The most recent budget for the expansion of 19 the facility provided by Gondeck -- Wayne Gondeck, an 20 architect in San Antonio engaged by the Board, was 21 $2,651,000. 22 COMMISSIONER WILLIAMS: What would be the 23 anticipated interest rate? 24 MR. HENDERSON: I believe that we can -- we 25 will see an interest rate something in the neighborhood of 5 8-12-02 68 1 to 5 and a quarter percent. We are going to be applying to 2 various municipal bond insurance companies for municipal 3 bond insurance. If we are able to get that municipal bond 4 insurance, we will be under 4.70, but from our purposes, I 5 think we ought to assume that we're not going to get it 6 right now, and I think a worst-case scenario would be 5, 5 7 and a quarter percent. 8 JUDGE HENNEKE: What's the existing interest 9 rate? 10 MR. HENDERSON: 7.8 percent. 11 COMMISSIONER LETZ: What's the current annual 12 debt service? 13 MR. HENDERSON: The current annual debt 14 service on the project is $335,000 per year. If we 15 refinance that debt at $2,651,000, plus the related costs 16 associated with the transaction, we would see those payments 17 be approximately $372,000 over 20 years. That would be an 18 increase of about $38,000 per year. I reviewed just this 19 morning with Mr. Tomlinson the proposed budget for the -- 20 the facility, both as it exists today and with the addition, 21 and he and I concur -- of course, he's here to speak for 22 himself, but it does not appear that $38,000 a year 23 additional debt cash flow would be problematic. And I'll 24 let Tommy address that. If you want to. 25 MR. TOMLINSON: I will if there's any 8-12-02 69 1 questions. 2 JUDGE HENNEKE: Does anyone have any 3 questions? 4 COMMISSIONER WILLIAMS: Who sets the rate, 5 Judge? Who sets the rate of -- reimbursement rate that the 6 counties pay for putting young people -- 7 JUDGE HENNEKE: Well, there's actually two 8 rates; there's the preadjudicated rate and the 9 postadjudicated rate. Preadjudicated means before they're 10 sentenced; postadjudicated is after sentencing. The short 11 answer to your question is, the Juvenile Board sets the 12 rate. The -- the longer answer is, the rate for 13 postadjudicated kids has two components, depending upon how 14 they're in there. And, there's one rate for kids who are 15 receiving state support. There's one rate for kids who are 16 there on -- on various counties' budgets, but it's set by 17 the Juvenile Board and it's set at a -- at a level to -- to 18 fund the operations of the Juvenile Detention Facility. 19 Isn't that right, Tommy? 20 MR. TOMLINSON: That's correct. Bob made the 21 comment about -- that we had 12 beds in our -- or places set 22 aside for preadjudicated children. Part of the purpose 23 for the expansion is to replace those preadjudicated 24 placements in the current facility with postadjudicated 25 placements. Currently, we are -- our fee for preadjudicated 8-12-02 70 1 placements is $83. By -- by adding the new facility, we 2 can -- we can replace those $83-per-day placements with 3 placements for $106 a day. So, we gain the difference 4 between those fees for -- for however many preadjudicated 5 placements we have in the facility. So -- and then for the 6 new facility, or the addition, the -- the State -- or the 7 State requirements or T.J.P.C. requirements for housing 8 preadjudicated placements are much different than they are 9 for -- for the postadjudicated placements. In other words, 10 we -- the demand for -- for personnel is not as great for -- 11 for preadjudicated as they are for postadjudicated. So, 12 we feel that -- by the numbers, we feel like that by 13 combining or refinancing the current debt and -- and adding 14 to the facility, that we can increase our annual cash flow 15 by approximately $300,000 a year. 16 Now, I know that -- that -- I know that some 17 of you can remember when -- when we built the 192-bed jail 18 in 1996, nobody -- nobody planned for that 192-bed jail to 19 be all Kerr County inmates. And we -- you know, in our 20 budget process, we planned to have some revenues from -- 21 from outside sources to fund the operation of that jail. 22 Well, I think it's inevitable that at some point in time, 23 that juvenile facility will be a Kerr County facility. In 24 other words, all of -- you know, it will be primarily for, 25 you know, Kerr County kids. So, I -- this is my way of 8-12-02 71 1 thinking, that -- that this -- this project can -- can 2 extend the life of the facility as it is, without -- without 3 having -- without Kerr County, itself, you know, subsidizing 4 that facility with tax dollars. 5 COMMISSIONER LETZ: Is that facility -- is it 6 similar to the arrangement with the jail? Does the City of 7 Kerrville -- I mean, they're county residents. They're not 8 city -- 9 JUDGE HENNEKE: The City of Kerrville has no 10 juvenile responsibility; it's all the County. 11 COMMISSIONER LETZ: All the County. So, it's 12 all -- that's what I thought. My other question is -- and 13 maybe I'm just dense on understanding; I never have fully 14 understood this, I don't think, in the seven years -- or six 15 years I've been on the Court. But, okay. The Facilities 16 Development Corporation is -- holds title to the facility. 17 Why is the Commissioners Court approving -- considering 18 this? If they control it and they're going to own it and 19 all we're going to do is lease it, why are we involved in 20 the mix? 21 JUDGE HENNEKE: I brought it -- 22 COMMISSIONER WILLIAMS: Thanks for asking 23 that question. 24 JUDGE HENNEKE: The facilities corporation 25 was set up by the Commissioners Court. 8-12-02 72 1 COMMISSIONER LETZ: Right. 2 JUDGE HENNEKE: The reason I asked Bob and 3 Tom to come today was because this is a different structure 4 than what we approved. What we thought we could do a year 5 ago was to do the deal where Kerr County would have no 6 direct involvement, and under the law and the Attorney 7 General's regulations, Kerr County will now have to lease 8 the facility from the development corporation and then turn 9 around and do an operating agreement with the Juvenile 10 Board. That's different. And I was not willing to proceed 11 with the transaction unless we brought it back to the 12 Commissioners Court, explained the difference, and got the 13 go-ahead. So, that's the reason it's here, is because the 14 structure is different. 15 COMMISSIONER WILLIAMS: Well, that poses 16 another question. What, then, is the fallback liability to 17 Kerr County? 18 MR. HENDERSON: These bonds will be subject 19 to annual appropriations by the Kerr County Commissioners 20 Court. So, if the Commissioners Court ever were to decide, 21 in its normal budget process, not to appropriate money for 22 this purpose, then -- then you would have the option to do 23 that, and -- and the bond holders would be at risk for the 24 Commissioners Court doing that. I would have to indicate to 25 you that if you failed to appropriate, it would be, you 8-12-02 73 1 know, considered a negative from a credit perspective; your 2 bond rating would undoubtedly suffer as a result of that, 3 but it is an annual appropriation lease. You would not be 4 held responsible for that debt service payment. 5 COMMISSIONER WILLIAMS: Which poses another 6 question. 7 MR. HENDERSON: Yes, sir? 8 COMMISSIONER WILLIAMS: Based on what Tommy 9 told us with respect to occupancy and the new rate 10 structure, what happens if, as -- as is the case with the 11 jail, it fills up with Kerr County kids? Are we -- are we 12 going to raise the sufficient revenue under that scenario 13 that we would raise with out-of-county occupants? Or are 14 we -- explain that to me. Are we going to have a revenue 15 shortfall because we fill it up like we have the jail? 16 MR. TOMLINSON: That -- that has already 17 happened. When -- in '97, when -- when the development 18 corporation, you know, assumed the current debt, and -- and 19 the Juvenile Board, you know, continued to separate the 20 facility, the level of preadjudicated placements, 21 percentage-wise, they were much less than they are today. 22 And so -- and with -- with -- percentage-wise, with a low -- 23 lower daily rates are replacing higher daily rates, is what 24 is -- essentially what has happened. I foresee that if -- 25 you know, if it becomes primarily a Kerr County facility, 8-12-02 74 1 then -- then we will have no revenue -- outside revenue at 2 some point, just like now, we don't have any outside revenue 3 for -- for our jail operation. So -- 4 JUDGE HENNEKE: I want to jump in here with 5 my Juvenile Judge hat on and say that -- one of the few 6 times in the four years I've been here I'm going to disagree 7 with Tommy. I don't think it's likely to ever become a 8 strictly Kerr County facility, because we don't put that 9 many kids in long-term postadjudication programs. And the 10 ones we do have a variety of needs, and all those needs are 11 not ones that are met at our detention facility. For 12 instance, we send kids down to Corpus Christi to a boot 13 camp. That's a different experience than what they get out 14 at the Detention Center, for a different level of 15 misbehavior, for a different experience than they get at the 16 Detention Center. I don't think I have -- maybe one, two 17 kids at the most in the long-term program out at the 18 Detention Center right now. 19 The other thing is, if we ever filled the 20 facility up with Kerr County kids, those kids have to go 21 somewhere. And it's cheaper to have our own facility, even 22 if we fill it up ourselves, than it is to send them to 23 Sweetwater or New Braunfels or somewhere like that. So, if 24 we ever fill it up and are paying the whole ticket for the 25 Detention Center, we'll be paying less than we would be 8-12-02 75 1 paying if we were sending 70-some kids a year to another 2 facility. So, even if it comes to that, we're money ahead 3 by having our own -- our own facility, 'cause we have some 4 control over that. 5 MR. TOMLINSON: In answer to your question 6 about -- about the rates, you know, it's -- Tanna, the 7 administrator, constantly monitors the -- the rates that 8 other facilities charge within our area, or even statewide, 9 and we -- the Board -- the Juvenile Board has -- has tried 10 to maintain a level of rates for all kinds of placements 11 that are -- that we consider, you know, in the market. And 12 we have -- we have the ability to change rates, you know, 13 when -- when we feel it's necessary. But, at the same time, 14 we -- we don't want to price ourselves out of the market, 15 either. 16 MR. HENDERSON: I might answer the question 17 the same way the Judge did, but from a slightly different 18 angle. The Juvenile Board, through the operating agreement, 19 has the responsibility of operating that -- that facility 20 and will be making payments to the Facility Development 21 Corporation for that debt. Right now, the customers, if you 22 will, of the Juvenile Board is Kerr County and Kendall 23 County and all the other counties that -- that put juveniles 24 into this facility, and so they're getting revenues from all 25 these different sources. The facility will generate enough 8-12-02 76 1 revenues to meet its obligation expenses and debt service. 2 That's -- that's not really an issue. The question is, what 3 piece of that pie is coming from Kerr County? And, as the 4 Judge pointed out, whatever piece of that pie is coming from 5 Kerr County is going to be a function of Kerr County's 6 obligations under the Constitution to deal with this 7 juvenile detention problem. Whether they pay to this Board 8 or whether they ship them somewhere else, you're still going 9 to have that expense. But the -- you know, you've got "X" 10 number of beds in this facility that the Board is operating. 11 Those beds are generating "X" number of dollars of revenues 12 based on -- as Tommy said, on market rates. And -- and, 13 certainly, based on the budget that that system's already 14 operating on, that will be more than sufficient to meet its 15 M & O operations in this debt service. 16 COMMISSIONER WILLIAMS: Question to the 17 Judge. Would the operating agreement between Kerr County 18 and the Juvenile Board require Commissioners Court approval, 19 and would it require a budget like everybody else submits a 20 budget? 21 JUDGE HENNEKE: It will require Commissioners 22 Court approval, and -- and there will be -- the budget will 23 be reflected in the overall County budget. Just -- you 24 know, for years, the Detention budget has been included in 25 the consolidated budgets of the County, and it will continue 8-12-02 77 1 to do so. Sheriff? 2 SHERIFF HIERHOLZER: The only -- and it's not 3 directly related to exactly what you're talking about, but 4 Tommy said a while ago you have 12 pretrial -- or 5 preadjudication beds. Are y'all changing those to post in 6 the new plan? Or -- 7 JUDGE HENNEKE: Well, in the new plan, those 8 will become post and the new wing will have 24 pretrial 9 beds. 10 SHERIFF HIERHOLZER: Okay. 11 JUDGE HENNEKE: So we're going to double the 12 number of pretrial beds and add 12 post-trial beds to the 13 mix. So, instead of having 51 beds, we'll have 75 beds. 14 SHERIFF HIERHOLZER: My concern was just 15 doing away with pretrial beds, what it sounded like. We 16 need a place to put those before adjudications. 17 COMMISSIONER LETZ: Does this take action by 18 us? 19 JUDGE HENNEKE: I would like to have the 20 Court approval so we can go ahead. Again, the reason it's 21 here is because it's a change in the structure. So, 22 recognizing the fact that the actual documents will have to 23 come back for approval, I'd like to get approval from the 24 Court today authorizing Mr. Henderson and Mr. Spurgeon to go 25 ahead with the transaction. 8-12-02 78 1 COMMISSIONER LETZ: What documents would come 2 back for approval? 3 JUDGE HENNEKE: The lease. 4 COMMISSIONER LETZ: Oh, the lease. It has 5 nothing to do with -- 6 JUDGE HENNEKE: The lease from the facilities 7 corporation to Kerr County, the operating agreement between 8 Kerr County and -- 9 COMMISSIONER LETZ: Not the bond documents? 10 JUDGE HENNEKE: No. No, you won't have to 11 wade through those, Jonathan. I'm the only one who gets to 12 do that. 13 COMMISSIONER BALDWIN: Another little slant 14 on the difference between local people and out-of-county 15 people is -- you know, is the way I view Rusty's jail. I 16 prefer our -- if it's going to fill up with local prisoners, 17 I prefer that, 'cause I want the bad people off our streets, 18 and that's the way I look at it. It's not a -- it's not a 19 revenue-type thing. It's bad people running around our 20 neighborhoods, and we want to get them out of there. And is 21 today -- today, and then the approval of the agreements and 22 the approval of the budget is the only time we see you guys. 23 JUDGE HENNEKE: Right. 24 COMMISSIONER BALDWIN: Bottom line is, we 25 have absolutely no control over -- 8-12-02 79 1 JUDGE HENNEKE: No. I mean, you have a 2 practical control and you have the legal control. The 3 Commissioners Court appoints the directors of the facility 4 corporation, so if you don't want Judge Ables, Judge Prohl, 5 and the County Judge to be the directors of the Hill Country 6 Facilities Development Corporation, the Commissioners Court 7 has the ability to change it. It could appoint Commissioner 8 Baldwin to be a director of the -- 9 COMMISSIONER BALDWIN: Let's drop that 10 question and go to the next one. 11 (Laughter.) 12 JUDGE HENNEKE: Any other -- 13 COMMISSIONER BALDWIN: Okay. What are we 14 going to do? Let's do it. 15 JUDGE HENNEKE: I would appreciate a -- a 16 motion to authorize the County's financial adviser and bond 17 counsel to proceed with the transaction as -- as described. 18 COMMISSIONER LETZ: So moved. 19 COMMISSIONER BALDWIN: Second. 20 JUDGE HENNEKE: Motion by Commissioner Letz, 21 second by Commissioner Baldwin, that the Court approve the 22 County's financial adviser and bond counsel to proceed with 23 the refinancing of the Kerr County Juvenile Detention 24 Facility as outlined to the Commissioners Court. 25 COMMISSIONER LETZ: Nadene, have you sketched 8-12-02 80 1 that down for the minutes? 2 MR. HENDERSON: I'll leave it here. 3 JUDGE HENNEKE: Any other questions or 4 comments? If not, all in favor, raise your right hand. 5 (The motion carried by unanimous vote.) 6 JUDGE HENNEKE: Opposed, same sign. 7 (No response.) 8 JUDGE HENNEKE: Motion carries. Thank you, 9 Bob. Thank you, Tom. 10 MR. HENDERSON: Thank you, Judge, 11 Commissioners. 12 COMMISSIONER LETZ: Thank you. 13 COMMISSIONER BALDWIN: Didn't hear much out 14 of the lawyer. 15 COMMISSIONER LETZ: Someday I'll understand 16 that. I'm getting better. 17 MR. HENDERSON: I vowed to only practice law 18 when the lawyer is actually in the room. 19 (Discussion off the record.) 20 JUDGE HENNEKE: Okay. Do we want to take up 21 the next item, or do we want to just adjourn and go home? 22 COMMISSIONER BALDWIN: I'd rather adjourn and 23 go home. At least come in on a full stomach so I can sleep 24 through some of it. 25 COMMISSIONER LETZ: This won't take long. 8-12-02 81 1 JUDGE HENNEKE: Won't take long. Okay. The 2 next item, Item -- whatever it is -- Number 12, I guess; 3 it's to consider and discuss the FY '02-'03 budget. I've 4 handed out to each of you a budget summary, which reflects 5 the budget that I am authored -- offering -- authored and 6 offering today. Just for a little bit of background, after 7 the budget workshops, Mr. Tomlinson and I went through the 8 various department requests, and -- and I indicated to him 9 those items which I thought should be included in the budget 10 and those items which I thought required additional 11 discussion. The total of those requests came up to 12 $17,591,976. When we got the revenue figures from K.C.A.D. 13 and also Tommy's projected non-tax revenues, the total 14 revenues were $16,856,762. So, you know, the problem was we 15 had about $700,000 or more in budget requests than I was 16 willing to insert into the initial draft than we had 17 revenues. 18 So, I went back and -- and scrubbed on the 19 budget some more and came out with a proposal which matches 20 the revenues and the expenses. The problem with that is, 21 based on the decline in non-tax revenues due to the lower 22 interest rates and the inability of the Sheriff to house 23 out-of-county prisoners at the jail, total revenues for this 24 year are up over the total revenues for last year $11,000, 25 which is less than the increase in worker's compensation 8-12-02 82 1 premium. So, programs which are not able to be included in 2 a revenue-neutral budget without additional drastic cuts 3 include cost-of-living increases, longevity step increases, 4 Capital Outlay, including the Sheriff's Department, training 5 funds for the Sheriff's Department, all of those items which 6 I outlined in my memo to you guys of last week. So, the 7 question becomes, which of these programs do we want to fund 8 out of surplus or other revenue sources? Which do we not 9 want to consider? And are there additional cuts that we 10 would like to make in the operating budgets for the various 11 departments? 12 I'd also say that, in order to get down to 13 the revenue-neutral budget, I had to reduce the Road and 14 Bridge department by $400,000. Leonard and I have talked a 15 little bit about this. I've told him that I did not make 16 any detail as to that reduction; I would leave that up to 17 him as the administrator of Road and Bridge Department. 18 And, in the good fashion that Leonard always follows, he 19 said, "Tell me what we have to do and we'll make it work." 20 So, that's -- that's the outline. And I'm here today 21 willing to discuss where we want to go so that we can bring 22 back a budget in two weeks that will be one that we could 23 approve for purposes of setting a tax rate and having the 24 necessary public hearings on the tax rate and the budget. 25 COMMISSIONER LETZ: My first comment -- first 8-12-02 83 1 -- first comment, a priority to me is the cost-of-living 2 adjustment for the employees. I think we have to do that 3 one way or another. Second thing, two or three years ago, 4 or about there, we reduced Road and Bridge's tax rate. They 5 had a very large surplus, and in an effort to try to balance 6 that out, we shifted some of their tax rate, basically, to 7 pay for the building next door and some of the other things 8 we were doing at the time. I think that we need to add that 9 back. I know that's going to make the situation even worse 10 for our other budget, but Road and Bridge is going on a 11 downward spiral at the moment with funding, and it's 12 something that I don't -- I'm not willing to let that 13 happen, you know. So, I think -- I don't think we need to 14 give that full amount back that they had, necessarily, at 15 one point. But I don't -- Tommy, do you recall how much of 16 that tax rate we reduced over the -- you know -- 17 MR. TOMLINSON: I think we actually did it 18 over a two-year period. And I -- I'm not sure how many 19 cents that was, but -- I would have to go back and look. 20 COMMISSIONER LETZ: I would like to -- 21 COMMISSIONER BALDWIN: Three, I think. 22 COMMISSIONER LETZ: Three percent, yeah. I'd 23 like to try some kind of an approach that would maybe put 24 25 percent of what we took away back, and see where that 25 gets us next year, and then we'd look at it again. I mean, 8-12-02 84 1 we need to get at a point where our roads, which is one of 2 our primary functions, along with law enforcement, is on a 3 better ground. If you look at our expenditures over the -- 4 since I've been a Commissioner for the last six years, Road 5 and Bridge, basically -- you know, if you take out -- well, 6 any increase they have is basically salary increases, what 7 we give the employees, and I think they've done an exemplary 8 job in that department. 9 (Discussion off the record.) 10 JUDGE HENNEKE: This is this year's. 11 COMMISSIONER LETZ: This year's? We added a 12 little bit back this year already? Well, I think we need to 13 fund Road and Bridge. And we -- they were well-funded 14 probably, I think, four years ago, five years ago, and we 15 did take some of that tax rate back. I think we need to 16 protect that. I know Leonard is willing to find areas to 17 cut, you know, $400,000 out of his budget. I don't think 18 that's a good solution. I think some of the special 19 projects can certainly be deferred. Some of them can't. 20 The High Water Bridge is something that we need to keep on 21 going forward on. The Hermann Sons Bridge we need to go 22 forward on. Sheppard Rees, I think, can be deferred a 23 little bit, in my opinion. It's not in my precinct, but 24 that can not be canceled, but it can be deferred a long 25 time. But I just think we're going to get into a situation 8-12-02 85 1 of really hurting the road system if we don't address that 2 problem in our budget now. So, I'm in favor of adding, you 3 know, maybe a quarter of a cent back to their -- some amount 4 back to their tax rate. Those are my first two comments. 5 And then, you know, the other thing, I guess, 6 that I think we could do, on Sheriff's cars, I think we can 7 cut back the number. I think there's six in the budget; I 8 think we can go back to four. That will give us a savings. 9 I think we need to keep some of those cars in there. And I 10 also think that we can go to -- and I just need a -- I call 11 it kind of discretionary spending, which -- and I basically 12 said that 80 percent of our budget is nondiscretionary, 13 'cause that's basically salaries, and there's certain things 14 that we just have to spend money on. I don't know if that's 15 a real accurate number or not, but in my calculations, if we 16 would make a -- or reduce each department's budget 5 percent 17 of the -- that 20 percent balance, that would give us 18 $100,000 to work with. 19 I think we have been very generous the past 20 few years. We had some funds; we pretty much gave every 21 department excess funds, or funds to do things that they 22 needed to do. And -- yes, we did. We did, every 23 department. How y'all chose to do it was up to y'all. And 24 I think we just need to cut back every department equally. 25 I don't think we should pick on any one department. I think 8-12-02 86 1 it needs to be across-the-board belt-tightening. Everyone 2 has benefited from the expenditures. That's where we are 3 right now. Everyone should help cut back till we get our 4 heads above water a little bit. 5 COMMISSIONER WILLIAMS: I would concur in 6 what Commissioner Letz talks about with respect to putting 7 into the budget -- finding dollars to put in the 8 cost-of-living for employees, but I also think that the 9 longevity step increases are a part of their compensation -- 10 expected compensation. They work hard for Kerr County. 11 They spend the time in their job learning and improving and 12 serving the public, and I think we would be remiss in not 13 allowing them to continue to earn their step and grade when 14 they get to it. I don't have a problem with cutting back 15 the number of automobiles that we provide the Sheriff each 16 year. I think we've taken a major step in -- in improving 17 his fleet. I would not want to see us eliminate that 18 program, but cutting it back by a couple vehicles certainly 19 would give us a little slack there. I don't have a problem 20 with that. I'm not exactly sure what you're -- what you're 21 saying, Commissioner, with regard to Road and Bridge. Are 22 you saying that we would transfer some -- or add some of the 23 tax rate back that we took away, and not take their 24 $400,000? Not reduce their budget by $400,000? And the 25 amount that you're talking about in tax rate, would that 8-12-02 87 1 offset that? Is that the offset you're proposing? 2 COMMISSIONER LETZ: It would basically reduce 3 the amount of their cut by -- you know, add back, you know, 4 maybe $100,000 of tax rate back to them to make them have -- 5 let them have a $300,000 reduction this year. Just help 6 some. I just think they should not be asked to absorb that 7 much of the deficit, as far as the cuts. 8 COMMISSIONER WILLIAMS: I don't have a 9 problem with that. We're asking all of the department heads 10 to cut back their budget by 5 percent, including 11 Commissioners Court? 12 COMMISSIONER LETZ: And I think -- I don't 13 think we still are going to get there with those -- doing 14 these things. And I do not mind having a slight deficit 15 budget for the -- for a couple years. We know in 2005 -- 16 2005 or 2006? When this thing gets paid off in two more, 17 three more budget years, we will have a -- 500-some 18 thousand -- what's that payment? 523? 19 MR. TOMLINSON: $500,000. 20 COMMISSIONER LETZ: $500,000 will be coming 21 back in. I don't think we want to go into a point that we 22 have too much deficit spending. I think we still need to do 23 some serious belt-tightening, but I'd like to really see the 24 numbers run and then look at it again. 25 JUDGE HENNEKE: Let's be sure we understand 8-12-02 88 1 what we're talking about. Constitutionally, we cannot run a 2 deficit budget. What you're talking about is using funds 3 from surplus. 4 COMMISSIONER LETZ: Use surplus funds. 5 JUDGE HENNEKE: And fund additional programs 6 beyond what the revenues will support. 7 COMMISSIONER LETZ: Correct. 8 COMMISSIONER WILLIAMS: The cutback to Road 9 and Bridge, however, will exceed 5 percent, what you're 10 asking from other department heads. 11 COMMISSIONER LETZ: And I think a lot of 12 that, in talking with Leonard, is -- basically, is deferring 13 some special projects. And -- you know, and this -- I think 14 probably in all precincts, all parts of the county are going 15 to be affected a little bit by that. I -- and that's -- I'm 16 hoping that's what Leonard's doing. I mean, I do not, you 17 know, want to encourage any kind of a maintenance reduction. 18 There are some areas -- I mean, I think Leonard's pretty 19 close to eliminating all the dirt roads in the county. That 20 can be deferred a little bit, some things of that nature. 21 Not our ongoing maintenance that he's developed and has 22 worked very well for the county. 23 COMMISSIONER WILLIAMS: I have one question, 24 which I'd like to direct to Leonard, if I may, please. 25 Leonard, with respect to the damage that we incurred on our 8-12-02 89 1 road system as a result of the floods -- recent floods, and 2 while you don't have that full number in place yet for 3 FEMA -- if I've understood everything correctly, we don't 4 have that total dollar amount yet that we would be asking 5 FEMA. Whatever that dollar amount is, we're going to get 6 with -- get 25 percent Kerr County match. 7 MR. ODOM: Right, sir. 8 COMMISSIONER WILLIAMS: To what extent -- my 9 question is, to what extent does that impact your current or 10 your next year's budget? Or is in-kind sufficient to make 11 that up? 12 MR. ODOM: I believe that in-kind -- that 125 13 to 150 I asked for is what I saw outlaid. But, then again, 14 when that gentleman was up here before that does the grant 15 money -- I have already talked to the gentleman in Austin, 16 so we've got a 25 percent coverage there. Now, I don't 17 know, you know, exactly what that time frame would be, 18 but -- but I feel like any expenditures that we have would 19 probably be -- we should break even. Now, when that may be, 20 I don't know exactly, but it will probably be in the next 21 budget year. But I still have this current budget running, 22 and so, of course, we're not into that budget, per se, now, 23 so I think we'll be covered. We should break even. 24 That's -- that's what we're hoping we're going to do. That 25 25 percent can be covered by our in-house labor, equipment, 8-12-02 90 1 things like that, plus this Rural Development Corporation 2 will be in there to cover my 25 percent. So -- 3 COMMISSIONER WILLIAMS: Okay. 4 MR. ODOM: -- somewhere, when the smoke 5 clears in the fall, we believe that we should break even, or 6 be close to it. 7 JUDGE HENNEKE: I want to say, too, that I 8 don't think -- if there's any money that the County has to 9 contribute to the match, that shouldn't come out of your 10 budget. I mean, that's what we have reserves for. 11 MR. ODOM: That's what the reserves are for. 12 But, then again, if I don't spend it all -- 13 JUDGE HENNEKE: Exactly. 14 MR. ODOM: -- you can, by authorization of 15 statutes, take that money and offset that into the next 16 budget year. So that's where we'll have -- I think we'll 17 come out all right. Maybe the big outlay would be the 18 Hermann Sons -- the temporary crossing again, but we think 19 that we can get the funding there, both ways. 20 COMMISSIONER WILLIAMS: Thank you. 21 JUDGE HENNEKE: Another way to kind of soften 22 the -- the reduction to Road and Bridge is through use of 23 the Schreiner Road Trust in Precincts 1 and 4. Commissioner 24 Griffin and Commissioner Baldwin will need to get together 25 and decide what amount they want to take out of that fund to 8-12-02 91 1 use for any activity in those two precincts, but that's 2 another way to lessen the -- the impact upon your department 3 to the tune of $50,000, $100,000, whatever is appropriate. 4 MR. ODOM: Did I answer your question? 5 COMMISSIONER WILLIAMS: Yes, thank you very 6 much. Appreciate it. 7 COMMISSIONER LETZ: Go ahead. 8 COMMISSIONER BALDWIN: I want to make a 9 comment, and then -- I agree with almost everything said 10 here. The cost-of-living adjustment for our employees is 11 high priority. The Road and Bridge issue is -- is a 12 priority, because we have -- we really have an investment 13 there, a long-term investment that we don't want to see get 14 pushed back any. I disagree with the good Commissioner down 15 there about particular projects. There's a project in my 16 precinct that we have an actual opportunity to get out in 17 front of the growth curve in Kerr County, maybe the first 18 time in history, and all he's worried about is some silly 19 bridge that, every time we get a rain, we have to go find 20 it. 21 (Laughter.) 22 COMMISSIONER BALDWIN: Touché. But 23 another -- another issue that I -- I would like to see us 24 address, make sure that it's put in -- back into the budget, 25 are those things that generate revenue for us. As an 8-12-02 92 1 example, the Department of Public Safety. I don't know how 2 much they bring in through our courts through traffic 3 citations, but it's a lot of money, and they -- you know the 4 secretary over there has been a longtime employee of Kerr 5 County, and as you heard the D.P.S. officer, she's maxed 6 out. I mean, on her duties of things that she can do over 7 there, she's maxed out. Well, D.P.S. will soon be assigning 8 two -- two more troopers to Kerr County, so we're talking 9 about another expansion there. And -- and I don't know how 10 accurate these figures are, but I understand that every 11 trooper -- ballpark -- trooper brings in around 10 grand a 12 year into the county. So, if you add two on, you know, 13 there's a lot of work involved in that. So I would -- you 14 know, those things -- and I'm just using D.P.S. as an 15 example. Those things that actually generate funds for a 16 county need to not only be in there, but possibly enhanced 17 to generate more funds. That's all I have at this time. 18 COMMISSIONER WILLIAMS: I have a question of 19 the Auditor, however. Tommy, with respect to the new 20 budget, in those categories that we had to infuse more 21 dollars this morning, are we accommodating that better in 22 the new budget? We talked about having to expend -- we 23 moved $35,000, $40,000 this morning to cover attorney's fees 24 and so forth in the court system. Are we going to 25 accommodate that line item better in the next budget? 8-12-02 93 1 JUDGE HENNEKE: Yes. 2 MR. TOMLINSON: We will continue. The 3 courts -- I think I remember that -- that the 216th Court 4 allowed 90 -- was it $100,000? 5 JUDGE HENNEKE: I think it was 92. 6 MR. TOMLINSON: $90,000 for -- for that 7 expenditure, and the other one is 70. So, it's -- you know, 8 we don't have any -- you know, a lot of history to fall back 9 on, but that's their -- their best estimate of -- of what it 10 will be. 11 COMMISSIONER WILLIAMS: Thank you. 12 MR. TOMLINSON: The Judge commented on -- on 13 reductions in non-tax revenues as a result of -- of, you 14 know, interest rates and -- and our misfortune of having our 15 jail full. There is another issue that -- that has only to 16 do with Road and Bridge, and that the Tax Collector informed 17 me about, and that I never -- I really didn't realize, but 18 this year has really been a bad year for revenues associated 19 with new car sales. The -- the dealers have just not 20 produced the revenues associated with -- with those 21 transactions as they have in the past. You know, that's -- 22 that's something that may turn around, but it has 23 something -- it had -- has a direct effect on -- on the 24 non-tax revenues that go to Road and Bridge. And also, 25 she's told me that our bus company has changed their 8-12-02 94 1 registration under all their bus fleet from here to Harris 2 County, and so, you know, those all -- 100 percent of those 3 funds go to Road and Bridge. 4 COMMISSIONER LETZ: That's a big number. 5 MR. TOMLINSON: We don't know exactly what 6 that number is, but -- but it has to be substantial. And 7 I -- I realize that there was a -- a problem with -- with 8 revenues associated with this activity when I was doing my 9 projections, so that prompted me to ask the Tax Collector 10 what her viewpoint on what happened, and -- and we both 11 think that that's -- that is a problem. And we know that -- 12 you know, everybody thinks that 9/11 had a -- had an effect 13 on -- on auto sales nationwide, and so that's part of the 14 problem at Road and Bridge. 15 COMMISSIONER WILLIAMS: To what extent have 16 you experienced revenue shortfall this year in sales tax? 17 MR. TOMLINSON: I think the sales tax has 18 been -- I think it' relatively flat, as far as collections. 19 JUDGE HENNEKE: Anything else, Tommy, right 20 now? Sheriff? 21 SHERIFF HIERHOLZER: The only comments I'd 22 like to make, especially with what Mr. Letz said, I think 23 the most important part is the cost-of-living and also the 24 educational and longevity, because I finally got a 25 department that -- we have people, as y'all saw in the 8-12-02 95 1 budget presentation, that are staying longer; we've got 2 people that are getting better education, and we're trying 3 to do that. The deal -- the situation with the cars, the 4 only concern I have is, overall, our fleet, counting our 5 unmarked cars, our investigators and people like that, is 6 over 45 cars. Since y'all started the program, you've 7 done -- we've replaced 18, so we still have a lot of cars 8 that have over 150,000 miles on them. Some of them are in 9 investigation; some of those have over 200,000. If it were 10 to have to be cut back to about four patrol cars, if that's 11 what we're doing, I would ask that we try and do that in a 12 way that maybe we can purchase a couple program cars to 13 replace some of the C.I.D. cars, the used ones or something 14 like that, to replace some of those real high-mileage. 15 'Cause our initial plans were to rotate out of patrol into 16 the those C.I.D. positions. If you cut those back, we're 17 going to have a hard time staying with that plan. And the 18 initial plan was also to be able to rotate out of the patrol 19 into your constables and -- and areas like that. The only 20 other thing that I would like to say is, currently, we are 21 housing over 26 out-of-county inmates. Those are Bandera 22 County's, and I hope we collect, after some of their 23 problems. 24 (Laughter.) 25 SHERIFF HIERHOLZER: But our problem with -- 8-12-02 96 1 with out-of-county housing and what we ran into, there was a 2 time this last year, 192-bed facility, and we hit 208 and 3 209 inmates in jail, so we had to ship back all -- all the 4 out-of-county to get it back down to 80 percent of that 192. 5 We shouldn't really house over 153 in that facility. So, we 6 waver; we go up and down. It's just depending on courts, 7 depending on sentences and time of year and everything. 8 And -- and any time we can put out-of-county ones in there, 9 we do, if we have that space to do it. 10 We lost housing Gillespie County's after we 11 had to ship his back and Milton had to send them up to 12 Comanche. Then the problem we ran into there, when we could 13 take them back, Comanche County's housing rate is $27 a day; 14 ours is $37 a day. Okay. Because Comanche had a very large 15 jail that they built anticipating federal inmates and all 16 that kind of stuff, and that didn't come through, so they 17 lowered their rates trying to at least keep theirs full. 18 But -- so I can't compete with Comanche County, and -- and 19 Gillespie County's Judge decided they weren't going to pay 20 that extra $10 a day just to house them over here. So, that 21 kind of -- it does fluctuate. Now, my deal is, we will keep 22 it with out-of-county inmates as much as we can. I don't 23 believe in housing federal inmates from other states. I 24 think you absorb too much problem with all that type of 25 stuff. But, you know, border protest, some of those are 8-12-02 97 1 okay. But we will keep out-of-counties in there as much as 2 we can. 3 Some of the other discretionary funds, I 4 don't mind trying to cut our budget some by that. This 5 Court's done the Sheriff's Office real well, getting us back 6 up from years of being behind, so we can cut some of that. 7 Some of the things the Judge said about training -- I hate 8 to cut training, but if we had to by that amount, what we'd 9 have to do is go from two times a year out at Thunder Ranch 10 for the firearms training, cut that back down to one time a 11 year, so that we can cut ammo costs and things like that, so 12 we can make it. And I'm kind of like Mr. Odom is; we'll 13 adjust to it if it has to be done. But the cost-of-living, 14 merit raises, educational raises, longevity, I think, would 15 hurt the entire county, 'cause the employees are what make 16 us. And there's a big enough discrepancy already between 17 our employees and other agencies, that I'd hate to see that 18 get made any larger. But, vehicles, I'm just concerned 19 because that is a major safety issue to the guys that have 20 to operate those vehicles, and any time you get ones with 21 over 150,000, 200,000 miles on them, they shouldn't be on 22 the road. 23 JUDGE HENNEKE: Sheriff, the budget that 24 we're discussing at this time does not include any funds for 25 implementation of the long-range plan. 8-12-02 98 1 SHERIFF HIERHOLZER: I understand that. 2 JUDGE HENNEKE: And -- 3 SHERIFF HIERHOLZER: I think the long-range 4 plan is very important. I think the people -- the committee 5 that worked that did a fabulous job. I think it does show a 6 lot of discrepancies, but if we have -- you know, I mean, 7 we're having a hard time, especially jail employees; I need 8 more employees in there. The more the population goes up, 9 the more duties in there and everything. I really do need 10 those -- those jail employees. But, you know, we can make 11 it work. Our overtime budget may have to increase because 12 of the amount of time we have to call people back in to work 13 when somebody else takes off, or things like that. You saw 14 the -- the hourly figures, or the number of employees that 15 it takes, based on the State's rate, to fill one full-time 16 position for a year, and things like that, but we can make 17 it. 18 There are some costs that I can't control. 19 Inmate medical is one that skyrocketed this year. I don't 20 know what to do about that. We've gone over budget this 21 year on it. That's something we've all talked about. 22 Utility costs and that -- if cutting 5 percent or something 23 like that is out of discretionary funds, you know, I can do 24 that. I can't control utility rates, trash rates, things 25 like that. Because our actual operating budget, even 8-12-02 99 1 including utilities and that for the Sheriff's Office part, 2 is less than half a million a year. For the jail, it's less 3 than $400,000 a year. Everything else is -- is salaries. 4 COMMISSIONER LETZ: $50,000 is all you've got 5 to cut. 6 SHERIFF HIERHOLZER: How much? 7 COMMISSIONER LETZ: $50,000. 8 SHERIFF HIERHOLZER: Plus this year, the car 9 situation is, this is also the year that we paid off the 10 first set of six, so the actual budget doesn't increase that 11 much with the cars, 'cause we paid off those first six. 12 We're just going back into it. And with the prices we gave, 13 we're coming out a little bit cheaper, because interest 14 rates have fallen since that first batch of six you got 15 compared to this year. 16 COMMISSIONER WILLIAMS: Let's find out how 17 much we'd be saving if we cut you back from six to four. 18 JUDGE HENNEKE: Saving about $8,000, roughly. 19 SHERIFF HIERHOLZER: You're paying them three 20 years. Yeah, it would be somewhere around $8,000. 21 JUDGE HENNEKE: $62,000 for six cars, 22 including the premium for the Expedition, so if you divide 23 that out, it's about $8,000 per car, $8,500 per car. So -- 24 SHERIFF HIERHOLZER: But the thing is, then, 25 if we cut that, try to get used ones to replace those used 8-12-02 100 1 ones, I don't know if we can get in that lease program, or 2 you're having to pay $13,000, $14,000 outright to them. I 3 don't know where you benefit. 4 JUDGE HENNEKE: Well, that picks up about 5 $17,000 that goes towards something else. 6 SHERIFF HIERHOLZER: Over a three-year 7 period. 8 JUDGE HENNEKE: Okay. Anything else? 9 MS. UECKER: I just have a couple of 10 comments, Judge. 11 JUDGE HENNEKE: Sure. Go ahead, Linda. What 12 happened? 13 SHERIFF HIERHOLZER: Her head got too big for 14 her shoulders. 15 (Laughter.) 16 MS. UECKER: I had surgery last week, so I 17 can't turn my head very well. 18 JUDGE HENNEKE: We're glad to see you. We 19 appreciate you coming in this morning. I know you weren't 20 scheduled to come. 21 MS. UECKER: Thank you. 22 JUDGE HENNEKE: Thanks a lot. 23 MS. UECKER: First of all, I appreciate the 24 task that you have to try to balance this budget. And on 25 Commissioner Baldwin's comment about we need to really focus 8-12-02 101 1 on those funds that generate funds, a lot of times, just 2 because it doesn't generate the funds that we need doesn't 3 make that duty less important, 'cause some of the duties we 4 have do not call for generating funds. Now, I know the 5 figure -- and I think Brad is here, so we can probably help 6 a little bit, but as far as the $90,000 and the $75,000 that 7 was appropriated for court-appointed attorneys, I would say 8 probably half of that, maybe more, is eventually recovered 9 and then goes back into the General Fund. Hopefully, I 10 think we're going to -- we're working on legislation to put 11 more teeth in the legislation that will allow us to do that. 12 So, if any of you hear of legislation that comes across in 13 regards to collections, be sure and support it, 'cause 14 that's what we're trying to do. Right now, the felonies, we 15 don't have the teeth that we need to actually go after the 16 felons, especially those that go to T.D.C. When they're out 17 on parole, then they -- they think they're through. They're 18 not. They're supposed to come back and finish paying their 19 restitution to the County and their fines and costs. 20 I agree that, you know, our number one issue 21 is the cost-of-living and longevity for the employees. 22 However, several years ago, when we did the last salary 23 study, I remember the Court saying, okay, you elected 24 officials, we're going to take care of the employees this 25 year; we'll look at you next year. Then last year, you 8-12-02 102 1 equalized the Commissioners Court salaries, and once again, 2 we'll look at the elected officials next year. And I think 3 it was, like, at a certain percentage. 4 JUDGE HENNEKE: No, that's wrong, Linda. 5 Last year we -- we adjusted the elected officials' salaries 6 to half of what -- to half of what the survey said they 7 should have been. 8 MS. UECKER: Okay. 9 JUDGE HENNEKE: Across-the-board, except the 10 County Judge and the Commissioners, who were capped at less 11 than half. 12 MS. UECKER: Okay. 13 COMMISSIONER LETZ: We got less than 14 everybody else. 15 MS. UECKER: I also remember you stating that 16 we'll look at it again next year. 17 JUDGE HENNEKE: That's right. 18 MS. UECKER: The one thing that I would like 19 to see -- and I think you got it, and I don't know if the 20 rest of us did. Before you finalize this, I would like to 21 see a copy of what you're proposing in your final figures, 22 which we didn't get last year, and as a result, some of the 23 line items that I thought were funded were not. And, just 24 for your information, my budget is -- for this year is -- I 25 mean, I'm going to zero it out, because we did cut last 8-12-02 103 1 year. And, except for some items on my wish list, I just 2 want you to take note that I am proposing less already than 3 what the budget was last year. So, it's not like -- I have 4 never padded a budget, and I don't think any of us have. 5 And that's what makes it real difficult to cut, when you 6 only have -- are proposing necessary items. 7 JUDGE HENNEKE: Well, in response to your 8 question, what I intend to do is to provide to the -- each 9 department head and elected official their budget back -- 10 MS. UECKER: Before approval? 11 JUDGE HENNEKE: -- hopefully by early next 12 week. 13 MS. UECKER: Okay. 14 JUDGE HENNEKE: With what I'm recommending in 15 each line item. 16 MS. UECKER: Okay. 17 JUDGE HENNEKE: And then, when we take it up 18 again on the 26th or before that, you'll have equal 19 opportunity to talk to me and the other Commissioners about 20 any specific questions you have. 21 MS. UECKER: Okay. So you'll give us an 22 opportunity for rebuttal before you go in and say, "This is 23 what it's going to be"? 24 JUDGE HENNEKE: Yes. And one thing I need to 25 get some clarification from the Court on, if they're going 8-12-02 104 1 to ask each department to cut 5 percent, is it 5 percent of 2 their total? Is it 5 percent of discretionary? If it's 5 3 percent of discretionary, how do you define "discretionary"? 4 MS. UECKER: That was going to be my last 5 question, is 5 percent of what? 6 JUDGE HENNEKE: I don't want to make the 7 decision -- 8 COMMISSIONER LETZ: To me, it's 5 percent -- 9 I mean, I consider, personally, salaries as 10 nondiscretionary. Discretionary is office supplies -- you 11 know, those things, all that type of stuff. Things that we 12 have payments on, obviously, we can't -- doesn't make any 13 sense to cut 5 percent of a maintenance contract. Anything 14 that we have any control over, or you can, you know, take it 15 out of one line item, you know, in each department. 16 MS. UECKER: Okay. Well, the main thing is 17 that -- so that we get an opportunity to see, you know, what 18 the proposed cut's going to be. 19 JUDGE HENNEKE: It will be there, sure. 20 MS. UECKER: Thank you. 21 COMMISSIONER BALDWIN: Commissioner Letz, 22 this number 5, is that -- is that a number pulled out of the 23 air? Or is that -- have you worked some numbers? 24 COMMISSIONER LETZ: I've worked some numbers, 25 and I just took some assumptions that 20 percent -- and it 8-12-02 105 1 may be -- now, I don't know how close it is to being 2 accurate, but 20 percent of our overall budget is 3 discretionary spending, 80 percent is nondiscretionary. If 4 you take that 20 percent number and take a 5 percent 5 reduction of that, it will generate about $100,000; very 6 close, 98-point-something thousand, luckily. Now, I'm not 7 sure how the Judge needs to go about doing this task. 8 JUDGE HENNEKE: You guys are going to have to 9 tell me what you want 5 percent cut off of. 10 COMMISSIONER LETZ: I think utilities. I was 11 just talking about it with the Sheriff -- I think the 12 Sheriff left. One way we could make a pretty substantial 13 savings probably is to raise all of our thermostats 14 2 degrees. I know the jail's always cold and this building 15 is always cold. You know, at least my part of it. 16 MS. PIEPER: This courtroom's always cold. 17 COMMISSIONER LETZ: You know, so I think you 18 could do some things like that. Just by raising the 19 thermostats a little bit, cutting a little bit everywhere, I 20 think you can come up with some savings. I think that -- I 21 just believe that every department should look, you know, 22 closer to the budget and make some cutbacks. And I think -- 23 you know, I'm not saying there's excess anywhere; I'm just 24 saying that we need to cut the budget, and my preference is 25 to help get feedback from elected officials as to where they 8-12-02 106 1 want the cuts made in their budgets, rather than us do it 2 arbitrarily. I don't know. 3 JUDGE HENNEKE: We need to tell them what 4 they're supposed to cut. If it's 5 percent of their overall 5 budget, that's easy. They look at the bottom line, look at 6 5 percent. If it's 5 percent of their overall budget minus 7 salary, FEMA, health, retirement -- 8 COMMISSIONER LETZ: Right. 9 JUDGE HENNEKE: -- then they can figure that 10 out. You go much beyond that, and where if it's 5 percent 11 of their overall budget minus salary items, minus 12 maintenance contracts -- 13 COMMISSIONER LETZ: Okay. Do 5 percent minus 14 salaries, FICA, retirement. 15 MS. UECKER: We've been asked for the past 16 several years to cut, you know, which most of us have done. 17 I've done it. Paula's done it. 18 MS. RECTOR: Is that 5 percent of our 19 proposed budget for the year, or last year's budget? 20 JUDGE HENNEKE: 5 percent of what -- what is 21 going to come out -- 22 COMMISSIONER LETZ: Proposed. 23 MS. RECTOR: The proposed? 'Cause I've 24 already cut mine by $24,000 this year alone, and another 25 5 percent, we're talking about cutting into my operating 8-12-02 107 1 expenses, which I'm down to the bone on that right now. 2 MS. UECKER: Yeah, me too. 3 COMMISSIONER LETZ: I mean, the past few 4 years, we have -- or the Judge budgeted a certain amount of 5 money that every department got to use at their discretion. 6 JUDGE HENNEKE: That was the first year. 7 COMMISSIONER LETZ: First year. 8 JUDGE HENNEKE: First year's. 9 COMMISSIONER LETZ: So, I mean, there is 10 money there. 11 MS. RECTOR: I would invite you to find it in 12 my budget. 13 COMMISSIONER LETZ: Well, okay. Do you want 14 roads not to be fixed? I mean, I'm just saying that 15 everyone needs to share in the cost. 16 MS. PIEPER: Can I say something, though? 17 And I don't mean to be ugly to Road and Bridge, but it's 18 much easier to tell somebody that they can drive around that 19 pothole for a couple of months rather than to say, "I'm 20 sorry, I don't have enough money to print out your birth 21 certificate," or something like that, if we're going to cut 22 budgets, because we -- I mean, I -- I know -- 23 COMMISSIONER LETZ: I disagree. 24 MS. PIEPER: -- myself, I've cut my budget as 25 much as it can be cut. I mean -- 8-12-02 108 1 COMMISSIONER LETZ: Okay. Road and Bridge 2 cut theirs; we cut $400,000 to $300,000, we're saying, more 3 than they want to cut, and they're being able to make do. I 4 think every department can make do. It's that simple to me. 5 MS. PIEPER: I mean, we have fixed prices. 6 You know, stamps are 37 cents, and we have to send out tons 7 of notices. 8 COMMISSIONER LETZ: So does Road and Bridge. 9 So does the Sheriff. 10 MR. ODOM: Potholes are tort liability. 11 MS. PIEPER: Drive around it. 12 COMMISSIONER LETZ: Jannett, everyone -- 13 MS. UECKER: We all have liabilities. 14 COMMISSIONER LETZ: Don't y'all want to -- 15 MS. PIEPER: But unless it's a health, 16 safety, or welfare concern, that pothole doesn't have to be 17 fixed right now. But, by law, I have to print out that 18 birth certificate or send that defendant a notice for court. 19 COMMISSIONER LETZ: Okay. If the rest of the 20 Court doesn't want to have that cut, let's not have 21 5 percent. 22 JUDGE HENNEKE: Where are we at, guys? 23 COMMISSIONER BALDWIN: Well, I'm just not 24 sure -- you know, if you -- if we ask them to cut, I'm 25 not -- I can't land on the number 5. I mean, why isn't it 8-12-02 109 1 6? Or -- 2 JUDGE BROWN: If you're going to cut, why 3 don't you let me resubmit mine? 4 JUDGE HENNEKE: We will. 5 JUDGE BROWN: 'Cause I'm going to pad it 6 5 percent. I disagree with the 5 percent. 7 COMMISSIONER BALDWIN: Well -- 8 COMMISSIONER LETZ: Go ahead. 9 COMMISSIONER BALDWIN: I can tell you right 10 now, I'm not going to vote for a tax increase. I will not 11 vote for a tax increase, and I don't think there's three 12 people at this table that will. And, you know, if we have 13 -- if you had -- 14 MS. UECKER: Sometimes you have to, though. 15 At some point, you're going to have to. 16 COMMISSIONER WILLIAMS: We did. 17 COMMISSIONER BALDWIN: We just did. You have 18 so much money coming in and you have so much money going 19 out, and there's only one way to do it. I mean, there's two 20 ways to do it; you can raise the taxes or you can -- you can 21 do a little whacking on it. I'm not voting to raise taxes; 22 I'll answer that right now. 23 COMMISSIONER WILLIAMS: I don't know how 24 Commissioner Letz got to 5 percent, but it's not an 25 unreasonable number. 8-12-02 110 1 COMMISSIONER BALDWIN: Not an unreasonable 2 number. 3 COMMISSIONER WILLIAMS: I think it has to 4 apply probably to the nondiscretionary items. We have 5 obligations to salaries, and we have obligations for 6 workmen's compensation. We didn't even make it this year; 7 we had to transfer money to take care of increases. So, 8 there -- so I think we have to take care of those things 9 which are our obligations, which includes not only the 10 employee components, but it includes contractual obligations 11 as well. So, everything else can get scrubbed again. 12 JUDGE HENNEKE: So, is it the consensus of 13 the Court that we want to ask each department to do a 14 5 percent reduction in their budget, minus salaries -- the 15 amount of the budget, overall budget, minus the salary 16 items? Is that where we are? 17 COMMISSIONER WILLIAMS: Employee-related 18 items. 19 COMMISSIONER BALDWIN: Good place to start. 20 COMMISSIONER LETZ: Right. We need to -- I 21 mean, to get Tommy to rerun the numbers and see where we 22 are. 23 JUDGE HENNEKE: That's what we'll do. 24 COMMISSIONER WILLIAMS: Tommy, one other 25 question real quick. The Sheriff made note that -- well, 8-12-02 111 1 first, let me ask you if -- your projection indicates 2 5.95 percent decrease in non-tax revenues. Did that 3 5.95 percent include all of the out-of-county fees that we 4 would have collected through the Sheriff's Department on 5 housing prisoners, or did you leave some in there? The 6 Sheriff talked about he's still going to be able to take a 7 few. I don't know how many a few is; I don't know how many 8 dollars that would generate. So, is all of it out that he 9 took in from past years? 10 MR. TOMLINSON: I don't remember, but I -- I 11 think -- I don't think there's any revenues -- well, yes 12 there is. There's some revenues from the City for -- for 13 their inmates. To be on the conservative side, I would 14 prefer, I mean, to not budget anything, simply because we've 15 already had the experience that that might not happen. So, 16 I think from -- to be -- to be safe and be conservative with 17 our estimates, I think we need to leave them out. 18 COMMISSIONER WILLIAMS: Okay, that's fine, 19 'cause it really leads me to another point. The Sheriff 20 talked about -- made a plea for restoring the vehicles. I'm 21 thinking that if he does, in fact, generate some non-tax 22 revenues, maybe six months down the line, there will be 23 sufficient money to buy a couple program cars. 24 MR. TOMLINSON: There is a -- there is a 25 provision in the -- in the law that allows you to -- to 8-12-02 112 1 certify additional funds that -- you know, that are 2 collected in the ordinary course of business. You can -- 3 you can -- you can increase the budget or change or, you 4 know, amend the budget by the amount of -- of the revenue 5 that you can certify that's above and beyond what you 6 projected at -- you know, at the beginning or at the budget 7 time. We did that, I think, in two cases this year that 8 we've done that. And I don't recall the specifics about 9 that, but I think we did. 10 JUDGE HENNEKE: But that's for revenue that 11 wasn't anticipated -- 12 MR. TOMLINSON: That's correct. 13 JUDGE HENNEKE: -- at the time you do the 14 budget. 15 MR. TOMLINSON: That's correct. 16 JUDGE HENNEKE: There was a new state program 17 where we got some money back in the tobacco fund; that was 18 an example of that. 19 COMMISSIONER WILLIAMS: I think that's 20 speaking to potentially some extra revenue coming from the 21 Sheriff, though. 22 JUDGE HENNEKE: Yeah. 23 COMMISSIONER WILLIAMS: Potentially. 24 MR. TOMLINSON: But I -- I try to be -- in 25 projecting revenues, it's difficult to -- to do, and I -- my 8-12-02 113 1 philosophy is to be on the conservative side, to approach it 2 that way. Because it's -- it's a lot better to have more 3 than you project than to have a shortfall, and -- in 4 revenues, and that's exactly what happened to us this year, 5 is that some things happened that we didn't foresee. And so 6 we -- that's why we -- that's why we had a shortfall in 7 non-tax revenues, and that hurts. 8 JUDGE HENNEKE: Okay. 9 COMMISSIONER LETZ: My final comment, just to 10 clarify a point, Road and Bridge is cutting 15 to 20 percent 11 of their budget. Everyone else is only being asked for 12 5 percent. I think that's fair. 13 JUDGE HENNEKE: Okay. Just to summarize, so 14 that I have my margin numbers right, we want to include in 15 the budget cost-of-living adjustment, 2 and a half percent, 16 longevity, education step increases, four Sheriff's cars, 17 reduction in the Road and Bridge Department of a projected 18 $300,000, and to ask each department to do an additional 19 5 percent reduction in their spending, without taking into 20 consideration salary and employee -- and employee 21 cost-related items. So, what we're not adding -- the only 22 capital outlay in the budget will be for the Sheriff's cars, 23 money for bond elections. Conference funds are capped at 24 $500 per elected official and department head. We're taking 25 $7,000 out of the Sheriff's Department training funds, and 8-12-02 114 1 there's no money for the long-range plan out at the jail or 2 the Sheriff's Department. 3 COMMISSIONER WILLIAMS: You said educational 4 step increases. Did you mean longevity? 5 JUDGE HENNEKE: Longevity and education. 6 COMMISSIONER WILLIAMS: And education, okay. 7 COMMISSIONER LETZ: Judge, on the bond 8 election item, I think it's up to Commissioner Williams and 9 myself to get that on the agenda at our next meeting. And I 10 think, depending on what the Court decides what they want to 11 do, what direction, if we're going to go forward or not go 12 forward, I think that will answer that question. 13 JUDGE HENNEKE: Okay. All right. 14 MR. ODOM: You will send it -- Judge, you'll 15 send us a memo exactly what you're expecting? Or -- 16 JUDGE HENNEKE: Well, yes. I'll communicate 17 with all the elected officials and department heads. Yours 18 will be a little different than everyone else's, but yeah, 19 everyone will hear from me. Everyone will get a printout of 20 what I expect out of them. 21 MS. PIEPER: Did I hear you say you're only 22 allowing $500 for educational training for elected 23 officials? 24 JUDGE HENNEKE: That's -- 25 MS. PIEPER: That's not going to cut it. 8-12-02 115 1 There's no way we can get our hours in. 2 JUDGE HENNEKE: I don't disagree with you. 3 MS. PIEPER: Commissioners, that's going to 4 be up to y'all, then. Because you know we're required to 5 get our hours in. 6 COMMISSIONER BALDWIN: Going to be up to us? 7 What do you mean? 8 MS. PIEPER: Because we have to get our 20 9 hours a year in, and $500 won't cut it. I have vital 10 statistics school, my elections school, U.T. law school, to 11 get my 20 hours, and there's no way $500 is going to cut it. 12 MR. ODOM: Got to start somewhere. Let's 13 start. 14 COMMISSIONER LETZ: We'll look at it, see 15 where it comes out. Judge, do you want to wait until the 16 next court date, or do you want to have a special meeting 17 next week? 18 JUDGE HENNEKE: I think it's going to push it 19 pretty hard to get the -- if they want actual printouts, 20 it's going to push us pretty hard to do this by the next 21 court date, so I think we'll not schedule a special meeting. 22 After the next court date, if we need to schedule some 23 special meetings in order to meet the schedule for adopting 24 the tax rate and the budget, we can if we need to, but I 25 don't think there's a necessity to have a special meeting 8-12-02 116 1 between now and -- and the 26th. We need that time in order 2 for me to sit down and go through the budget, talk to Tommy, 3 have his department rerun all the printouts, and again 4 distribute it on time so that people have something to look 5 at for the 26th. That's going to push us pretty hard. If 6 we want to go through that whole exercise, it's going to 7 take all of the two weeks. 8 COMMISSIONER BALDWIN: Are we going to -- did 9 we discuss enough about shifting part of the tax rate back 10 into R and B? 11 JUDGE HENNEKE: Well, that will happen just 12 by the fact that, you know, we have to fund it. So -- you 13 know. 14 COMMISSIONER BALDWIN: Maybe -- 15 JUDGE HENNEKE: Now, we're not -- we're 16 not -- there has been no discussion about adding to the 17 surplus. We're simply talking about funding the operation. 18 Now, I'm going to become as popular as a skunk in the school 19 picnic right now, but I'm going to provide some statistics 20 about taxes, because the responsibility of the Commissioners 21 Court is to fund county government. And I appreciate the 22 article in the Times over the weekend. What I hope that 23 article will do is to generate some debate among the 24 citizens in Kerr County as to what level of services do they 25 want -- do they expect, and are they willing to pay for the 8-12-02 117 1 quality of roads and bridges we have? Are they willing to 2 pay for -- for adequate deputies on the streets? Are they 3 willing to pay for the kinds of services that they've come 4 to -- to expect from the District Clerk, the Tax Assessor, 5 the County Clerk, and all the different departments? 6 These are numbers that have been generated by 7 the Auditor of the 19 counties in Texas who have a 8 population of plus-or-minus 10 percent of Kerr County. Kerr 9 County has the third highest market value, the third highest 10 per capita income, the seventh highest total budget, and the 11 14th highest tax rate. Nobody likes to raise taxes. Nobody 12 likes to raise taxes when you have to. Nobody likes to 13 raise taxes for any reason, but there comes a time when you 14 have to fund your government. And Commissioner Letz has 15 suggested that relief is coming in two fiscal years in the 16 form of the 2.80-cent tax increase that we levied last year 17 in order to fund the debt service on the Annex. And we can 18 continue to scrape along until that relief comes, if that's 19 where we want to go. But there comes a point in time when 20 you have to look at your ability to do your constitutional 21 duty of funding county services. 22 And I would hope that we would hear from the 23 people in Kerr County, you know, in the next two weeks and 24 the next month over what level of county services they 25 expect, and are they willing to fund those services, because 8-12-02 118 1 that's the bottom line question. It's not for us to decide; 2 it's for the citizens to decide. Do they want the kind of 3 quality of services they've enjoyed, certainly, in the last 4 three years, or are they willing to accept something lesser? 5 If they want that quality of services, at some point in 6 time, they're going to have to be willing to pay an 7 additional premium for that quality of services. It's not a 8 decision that we should make up here in a vacuum. I'm sure 9 that none of us want to make that decision in a vacuum, but 10 it's a decision the citizens have to understand, and they 11 need to provide us with their input as to what they expect 12 from this Commissioners Court with regard to funding 13 essential county services. 14 People talk about scrubbing the budget. 15 There's no scrubbing to be done in this budget. The 16 5 percent we're asking the department heads to give us back, 17 that's not scrubbing. That's taking money from -- from 18 essential services, because they work hard on their budgets, 19 and they have for four years. We don't have fluff anywhere 20 that we can cut. I mean, the total amount that we provide 21 to the social agencies in Kerr County is $50,000. On a 22 $16.8 million budget, that doesn't even compute, as far as a 23 percentage. The total amount we provide to volunteer fire 24 departments is $77,000. Again, on a -- out of a 25 $16.8 million budget, that doesn't even compute. Where else 8-12-02 119 1 are you going to cut? Are we going to cut the West Kerr 2 County office of the Tax Assessor? I don't think so. That 3 provides an essential service. That's something we're all 4 proud of. 5 Cutting maintenance on the county facilities 6 is -- is a disaster waiting to happen, because if you defer 7 maintenance, eventually, you have a major repair bill, as 8 opposed to -- so, the only place left is personnel. And 9 personnel are the core of our government. They're the core 10 of the services. You cut your personnel costs, and -- and 11 services decline, and you're just spiraling downhill. So, 12 where do we go? And that's the debate that we need to have. 13 That's the feedback we need to get from the citizenry of 14 Kerr County, is what level of services do you expect? Do 15 you want to continue to enjoy the level of service that you 16 have had for the past three years? And, if so, to what 17 extent are you willing to fund those? Because that's -- 18 those are the only answers. We can scrub and scrub and 19 scrub, and hold the tax rate where it is, but if we do that, 20 before too long, there can only be an impact in the 21 services. So, hopefully we'll get some feedback in the next 22 couple of weeks, and we'll come up with it starting on the 23 26th. Anything else? 24 COMMISSIONER BALDWIN: Very well-said, Judge. 25 Very well-said. 8-12-02 120 1 JUDGE BROWN: Hear, hear. 2 JUDGE HENNEKE: If there's nothing else, we 3 stand adjourned. Thank you all. 4 (Commissioners Court adjourned at 12:04 p.m.) 5 - - - - - - - - - - 6 7 8 9 10 STATE OF TEXAS | 11 COUNTY OF KERR | 12 The above and foregoing is a true and complete 13 transcription of my stenotype notes taken in my capacity as 14 County Clerk of the Commissioners Court of Kerr County, 15 Texas, at the time and place heretofore set forth. 16 DATED at Kerrville, Texas, this 16th day of August, 17 2002. 18 19 20 JANNETT PIEPER, Kerr County Clerk 21 BY: _________________________________ Kathy Banik, Deputy County Clerk 22 Certified Shorthand Reporter 23 24 25 8-12-02