1 2 3 4 5 6 7 8 KERR COUNTY COMMISSIONERS COURT 9 Special Session 10 Tuesday, September 7, 2010 11 10:00 a.m. 12 Commissioners' Courtroom 13 Kerr County Courthouse 14 Kerrville, Texas 15 16 17 18 19 20 21 22 23 PRESENT: PAT TINLEY, Kerr County Judge H. A. "BUSTER" BALDWIN, Commissioner Pct. 1 24 WILLIAM "BILL" WILLIAMS, Commissioner Pct. 2 JONATHAN LETZ, Commissioner Pct. 3 25 BRUCE OEHLER, Commissioner Pct. 4 2 1 I N D E X September 7, 2010 2 PAGE 3 1.1 Consider/discuss, approve record vote on the proposed 2010 Kerr County tax rate and set 4 dates and times of first and second public hearings on said tax rate 4 5 1.10 Report on construction progress at Sheriff's 6 Office Annex building project and request for waiver of liquidated damages during period 7 contractor corrects damaged or improperly installed roof panels caused by subcontractor 30 8 1.2 Recognition of Pam Cornett and presentation 9 of retirement plaque for 37 years in county government and pin for working 15 years in 10 Kerr County 41 11 1.3 Consider and discuss amending Court Order Number 31823 to change the name of second 12 early voting location to Kerr County Courthouse, Ingram Annex, at 3324-A Junction Hwy., Ingram, 13 Texas, in accordance with Chapter 43 of Texas Election Code 43 14 1.4 Consider/discuss approving changing the polling 15 location in Precinct 119 from Foursquare Gospel Fellowship Church to River Oaks Mall Number 845A 16 in accordance with Chapter 43, Texas Election Code 44 17 1.5 Consider/discuss, take appropriate action to approve contract with Government Technologies, 18 Inc., for imaging services for the Environmental Health Department as discussed at July 20, 2010 19 budget workshop 45 20 1.6 Consider/discuss, take appropriate action concerning request from Mountain Home Volunteer 21 Fire Department to use Kerr County's Fleet I.D. number with Ford Motor Company to facilitate 22 savings on purchase of Ford F-550 truck 46 23 1.7 Consider/discuss, take appropriate action to lift hiring freeze for Juvenile Detention Facility 24 to allow hiring of part-time employees as may be necessary to be in compliance with TJPC ratios 25 and requirements 49 3 1 I N D E X (Continued) September 7, 2010 2 PAGE 3 1.8 Consider/discuss, take appropriate action to lift hiring freeze for District Clerk to allow her to 4 replace a key employee that is resigning effective September 15, 2010 (Executive Session, as needed) 50 5 1.9 Receive information from County Attorney 6 regarding pending or potential litigation matters (Executive Session) -- 7 --- Adjourned 90 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 4 1 On Tuesday, September 7, 2010, at 10:00 a.m., a special 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 TINLEY: Good morning, ladies and gentlemen. 8 Let me call to order this special meeting of the Kerr County 9 Commissioners Court posted and scheduled for this date and 10 time, Tuesday, September 7th, 2010, at 10 a.m. It is that 11 time now. We have a rather short agenda, but a very 12 important agenda. First item on the agenda is to consider, 13 discuss, and approve by record vote the proposed 2010 Kerr 14 County tax rate, set dates and times of the first and second 15 public hearings on that tax rate. Ms. Bolin? 16 MS. BOLIN: Okay. The last I heard, we were 17 looking at a tax rate for the county of .4271, which is a 18 3-cent increase, and for lateral roads at .0382, which is a 19 .006 increase. 20 COMMISSIONER WILLIAMS: Give me the Road and Bridge 21 again? 22 MS. BOLIN: .0382. 23 JUDGE TINLEY: Do you have dates for the proposed 24 public hearings? 25 MS. BOLIN: I do. 9-7-10 5 1 JUDGE TINLEY: Okay. 2 MS. BOLIN: September the 15th and September the 3 20th. 4 JUDGE TINLEY: Are either of those regular meeting 5 dates? 6 MS. BOLIN: No, they're not. 7 JUDGE TINLEY: Would -- would the notice 8 requirements permit us to, for example, hold one of those on 9 the next regular meeting date, the 13th? 10 MS. BOLIN: No, sir. The next one would be on the 11 14th. 12 JUDGE TINLEY: Okay. It's a minimum of seven days? 13 MS. BOLIN: The first one would be with -- yes, 14 seven days. 15 JUDGE TINLEY: Not less than seven? 16 MS. BOLIN: Correct. 17 JUDGE TINLEY: Okay. Okay. 18 COMMISSIONER LETZ: How about the second one? 19 Could that not go to our second Commissioners Court meeting? 20 MS. BOLIN: From 3 to 14 days after the first one. 21 JUDGE TINLEY: 14th. 22 COMMISSIONER LETZ: Yeah, that would work. 23 JUDGE TINLEY: Twenty -- 27. You could go to the 24 27th, couldn't you? 25 MS. BOLIN: That would not allow me the time to 9-7-10 6 1 print my notice of tax revenue increase. That has to be at 2 least seven days before the meeting -- before the adoption. 3 JUDGE TINLEY: Seems to me it would allow you 4 additional time in which to do that. 5 MS. BOLIN: If we had it on the twenty -- 6 JUDGE TINLEY: If we had the second public hearing 7 on the 27th. 8 MS. BOLIN: We have to adopt by the 29th, and seven 9 days from the 29th is -- 10 MS. HARGIS: 22nd. 11 MS. BOLIN: Thank you. I just went blank. 22nd. 12 JUDGE TINLEY: Could we not adopt after the public 13 hearing on the 27th? 14 MS. BOLIN: I believe so. 15 JUDGE TINLEY: And would it not be permissible to 16 hold the second public hearing on the 27th? 17 MS. BOLIN: No. The second public hearing -- 3 to 18 14 days. Schedule another meeting to adopt 3 to 14 days from 19 the second public hearing. So I have to put a notice in the 20 paper after the second public hearing. 21 COMMISSIONER OEHLER: Should be less than three 22 days to the -- 23 MS. BOLIN: Can't be less than three days before 24 the date you adopt. 25 JUDGE TINLEY: Okay. 9-7-10 7 1 MS. BOLIN: It just has to be on our web site at 2 least seven days before the meeting. 3 JUDGE TINLEY: And you're proposing for the 4 finalization to occur on the 29th? 5 MS. BOLIN: Yes, sir. 6 JUDGE TINLEY: What time are you proposing these 7 public hearings for on those two dates, the 15th and the 8 20th? 9 MS. BOLIN: Generally we have them at 10:00. 10 JUDGE TINLEY: 10 a.m.? 11 MS. BOLIN: Mm-hmm. 12 JUDGE TINLEY: Okay. Anything further? 13 MS. BOLIN: I need a record vote on the proposed 14 tax rate. 15 JUDGE TINLEY: Understood. You want separate 16 motions, I assume, one on the tax rate and one on 17 establishment of the public hearings? 18 MS. BOLIN: Correct. 19 JUDGE TINLEY: All right. Anything else? 20 MS. BOLIN: That's it. Are we ready to do that or 21 not? 22 COMMISSIONER LETZ: No. 23 JUDGE TINLEY: Well, we'll see. 24 MS. BOLIN: I was hoping. Okay. 25 JUDGE TINLEY: Okay. I have a public participation 9-7-10 8 1 form here filed by Mrs. Jo Von Bryan. Ms. Von Bryan, if you 2 wish to be heard on this matter, if you'll come forward, give 3 us your name and address, and tell us what's on your mind, 4 please. 5 MS. VON BRYAN: Yes, sir. 6 JUDGE TINLEY: Thank you. 7 MS. VON BRYAN: My name is Jo Von Bryan. My 8 mailing address is P.O. Box 290334, Kerrville. My 9 residential address is 1724 Hiawatha, Kerrville. I wish to 10 complain about the proposed rate increase in the county taxes 11 as published in the newspaper today. It seems to me that 12 when my income either remains the same or decreases, then I 13 reduce my expenditures. It seems to me that any other body, 14 whether it's a government body or business, should abide by 15 the same common sense rules. I currently receive two small 16 checks each year -- each month, one a small one from Social 17 Security, another one from retired teachers pension, T.R.S., 18 Teacher Retirement System of Texas. In both of those cases, 19 I have been notified, either individually or through the 20 media, that there will be no increase in either one of those 21 for the coming year. Therefore, I am reducing my 22 expenditures. And it seems to me that the same policy is 23 wise policy for anyone or any organization. Therefore, I'm 24 against the increase in the county tax rate. 25 JUDGE TINLEY: Thank you, ma'am. Anyone else wish 9-7-10 9 1 to be heard with respect to this agenda item? Commissioners? 2 COMMISSIONER LETZ: Well, Judge, I've thought about 3 this since our last meeting, and I would recommend two 4 changes to your proposed budget, initially. Maybe some more 5 later, but initially, two. First, delete the cost-of-living 6 increase completely; be no cost-of-living adjustment. And 7 second would be on the insurance side, we do not increase the 8 employee -- or do not add an employee contribution. We do 9 change the dependent coverage for -- Eva, for spouses, it 10 needs to go to...? We talked about it. I didn't bring my 11 notes. 12 MS. HYDE: 250. 250. Put them both at 250. 13 COMMISSIONER LETZ: 250. And the child coverage is 14 250, spouse coverage at 250. And family -- 15 MS. HYDE: At 450. 16 COMMISSIONER LETZ: -- at 450. 17 COMMISSIONER WILLIAMS: And the COLA went? 18 COMMISSIONER LETZ: None. 19 COMMISSIONER WILLIAMS: Okay. 20 COMMISSIONER BALDWIN: Are you through? 21 COMMISSIONER LETZ: Yes. 22 COMMISSIONER BALDWIN: Okay. I have -- since the 23 beginning, have talked about that I think the way to reduce 24 this thing is you have to look at a conglomerate of issues 25 that we deal with. One is reducing staff. We've kind of 9-7-10 10 1 swung at that a few times. In my opinion, we haven't done 2 anything solid. We didn't hit the ball, but I think that 3 it's a -- it is -- as opposed to raising taxes, it's an 4 absolute must to do. That issue, and then the issue of 5 taking a look at those things that we fund, the list of 6 things that are outlined or in the state law, or in the law, 7 period, or the Constitution that we shall fund. We don't 8 have any question that we fund those and go on. Then the 9 other list of things that -- through the years that we've 10 just picked up and started funding, and most of those are in 11 the County-sponsored part of the budget. 12 And I just want to bring up three of those out of 13 all that group. One is the library commitment, the trapper 14 contract, and economic development, just those three. If you 15 eliminated those three, it's around $250,000. We haven't 16 even taken a look at that. I know it's painful to do, but 17 these are different times and we need to take different 18 actions. And the third part was to -- the tax increase. 19 There's no way that I will support the 3-cent tax increase 20 that's in the -- in the budget that's lying in wait up here, 21 I hope. But I had a thought. I would -- I would consider 22 raising taxes by one penny if that penny was dedicated to the 23 reserves of the budget. Can't raise taxes to pay increased 24 salaries or any other issue. So, I'm going to be opposed to 25 the -- the budget up in the clerk's office. 9-7-10 11 1 COMMISSIONER WILLIAMS: I support the notion that 2 the cost-of-living has to go by the boards this year. 3 There's just no way we can go to the public, seek to balance 4 the budget, and then dole it out as a cost-of-living. So I 5 think our employee group, although painful as it is, is going 6 to have to understand, this is an extraordinary time, and 7 it's not going to get any better during this budget year. We 8 talked about cuts in -- in staffing, and we talked about and 9 did, in fact, enact a hiring freeze. As I look down today's 10 agenda, I see two or three ways where we can figure out a way 11 to get around the hiring freeze, which doesn't make a lot of 12 sense if you're going to hire -- send everybody back up to 13 their office and say, "Figure out how to get around this." 14 COMMISSIONER BALDWIN: It almost lasted a month, 15 didn't it? 16 COMMISSIONER WILLIAMS: Yeah, almost lasted a 17 month, right. So, I think we've got to strengthen that. I 18 would not be opposed to moving those cut dates up from 19 mid-budget year to January 1 and effect a more meaningful 20 reduction in force. I don't want to be part of a situation 21 where we are micromanaging and telling elected officials and 22 department heads how they're going to do their departments. 23 They're going to have to figure it out. They're big people. 24 They're smart, and they know what their work is all about. 25 They know what their needs are and they know how they can, in 9-7-10 12 1 effect, suck it up and make it happen until times get a 2 little better. The only thing that I'm hanging out there on 3 right now is whether there should be two cents or three. 4 I'll reserve that for a little later in this discussion. 5 COMMISSIONER OEHLER: Well, you know I'm not going 6 to support a tax increase. That's just the way it is. 7 COMMISSIONER LETZ: I guess my question would be to 8 -- seems to me, Commissioner Oehler and Baldwin, the only way 9 that we can get there is through -- primarily through cutting 10 some services, the library and some of those, and those I'm a 11 little reluctant to do, because we entered into an agreement 12 with the City and have lived by that agreement, and I think 13 it's not appropriate to change that. So, you get -- the 14 other option -- the other way you get the number is through 15 staff reductions, and to get there, you're looking at 30 to 16 35, maybe 40 people. And I'm trying to figure out where 17 that's going to come from. We have mandated by law that we 18 can't touch a lot of them, such as the jail. We have to have 19 that staffing. If you count the District Clerk, Tax Office 20 and County Clerk total, that's, what, 35 people maybe? I 21 just -- I don't see where those numbers are going to come 22 from. In those other departments -- I'll just bring that as 23 an example in the courthouse. There's no way you can get 24 there without cutting law enforcement. You have to cut at 25 least one full patrol. You're talking about cutting probably 9-7-10 13 1 one, you know, person from almost every department, and then 2 cutting Road and Bridge to get to that number. So, I'd like 3 to kind of -- I mean, it sounds good to say, "I want to cut 4 staff," but I'd like to see a proposal where we cut that 5 staff. 6 JUDGE TINLEY: Commissioner, when the budget was 7 filed, it was filed with the -- based upon the apparent 8 consensus from the discussion that employees would be 9 required to participate financially in the health benefits 10 program. The cost-of-living increase was included in the 11 budget to partially -- partially offset the hit that the 12 employees are going to take as a result of that. And even at 13 that, without any -- without any cost-of-living increase, and 14 without regard to the employees not having to participate for 15 their own part in the cost of the health benefits program, 16 I've had the H.R. folks run some numbers, and you've been 17 furnished with copies of them, and depending upon the 18 classification of the employee, the grade, the step, and so 19 forth, the -- the cost comes out -- even at the end of the 20 day, what the employee walks out the door with each pay 21 period is reduced from just a little less than $1,000 a year 22 all the way up to approximately $2,000 a year. 23 Now, I can certainly understand the desire that 24 there may be to hold the line, but when you're telling these 25 folks that are carrying this county on their back that we 9-7-10 14 1 want them to carry a little bit heavier load for less money, 2 I don't think that's fair to them. Now, I understand folks 3 that say, "Well, my Social Security's not going up. My 4 pension's not going up." But it ain't going down, either. 5 Even if you delete the COLA and the cost of the employees, 6 these folks are going to be walking out the door with 7 anywhere between slightly less than 1,000, close to $2,000 at 8 the end of the day. 9 COMMISSIONER LETZ: Judge, I don't understand -- 10 explain that. If we're not charging the employees for 11 insurance and we're not giving them a COLA, how does their 12 salary go down? 13 JUDGE TINLEY: Well, the numbers are going to 14 change January 1. 15 COMMISSIONER LETZ: Well, then they should talk to 16 Washington, because that's something that the current 17 administration did, and I don't think that it's our job to 18 increase pay because Washington decreased income -- or 19 increased taxes. 20 COMMISSIONER WILLIAMS: I agree with that. 21 COMMISSIONER LETZ: I just -- I -- you know, 22 everyone in this county has that same issue confronting them, 23 so -- 24 COMMISSIONER OEHLER: Yeah. Doesn't matter whether 25 you're in the private sector or public sector; it still 9-7-10 15 1 happens. 2 COMMISSIONER LETZ: All I can do is -- I can't 3 control what happens in Washington. I can control a little 4 bit what happens in this county in this budget. 5 COMMISSIONER BALDWIN: Judge, are you referring to, 6 like, the Bush tax cuts and those kind of things? 7 JUDGE TINLEY: No, they've already got plugged in 8 some -- some adjustments to the payroll tax system that are 9 going to take place January 1. What we're talking about are 10 disposable dollars that our employees walk out the door with 11 when they get that -- when they receive their pay for working 12 for Kerr County. The other thing that I think we need to not 13 set in concrete is, we've talked about what the insurance 14 benefits -- the health benefits plan would include and what 15 the limitations would be on it, and whether or not there will 16 be required participation by employees for their own behalf 17 or on behalf of the dependents, spouses, so forth. But we 18 won't set that in concrete until probably October at the 19 earliest, maybe on into November, because that contract 20 doesn't come up for renewal until January, and all the 21 numbers are not in. As all of us know, the numbers don't 22 look good, and we may well have to take some very, very 23 drastic steps with respect to that plan in order to stay 24 within that budget number of 2.287 mil, which is what we've 25 got plugged in right now. If those numbers don't improve 9-7-10 16 1 significantly, I think -- I think we've got a bucket of cold 2 water in the face that's facing us. I don't like it, but the 3 facts are going to be what the facts are. 4 I -- I certainly didn't think, when I filed a 5 budget which included a 3-cent tax increase for Kerr County 6 and a 6/10 of a cent for Road and Bridge, it was going to be 7 popular. That certainly wasn't my present -- my purpose. I 8 don't like doing it. But, you know, the -- put the politics 9 aside. We've got to be concerned about the financial 10 stability and integrity of Kerr County on a go-forward basis. 11 And we've got creditors that certainly are going to determine 12 how we are viewed in the industry. We have got long-term 13 debt service that we've got to take care of. We've got 14 obligations under those debt instruments. And, essentially, 15 all of this increase will go to reserves, and that's where it 16 needs to go. Under the proposal that's been laid out by Mr. 17 Letz, with the exception possibly of some additional 18 contributions for -- for dependents under the health benefits 19 program, but as we all know, those -- those amounts were 20 woefully inadequate based upon the amount of claims that we 21 had from that sector of our covered individuals. Those need 22 to be adjusted drastically, if -- if covered at all. We've 23 got a serious deficiency -- gap between what the cost to this 24 county is for that class of insured and what we're taking in 25 to cover it. But that's an issue for another day, and that 9-7-10 17 1 may be one of the serious issues we have to face come 2 October, maybe early November. 3 But right now, we need to be concerned about our 4 reserves. In the event we're unable to take care of our just 5 obligations promptly as they become due, or we get out of 6 compliance with our debt instruments and the agreements we 7 have with creditors, we've got a much more serious issue. 8 Unfortunately, I think you're going to see a lot of counties 9 get into that position because of trying to do the 10 politically popular thing of holding the line, as it were. 11 We have one opportunity each year to establish our income. 12 We're not like the private sector; if we see that our profit 13 margin, as it were, is not adequate, we can raise the price 14 of our goods or services. We don't have that. We can't do 15 that. We get one shot at it. We don't have the opportunity 16 to make any adjustments down the road, and we cannot operate 17 on the gambling side of that equation. And that 3 cents for 18 Kerr County and 6/10 of one cent for Road and Bridge, that, 19 in my mind, is a minimum for us to remain financially stable 20 and on a strong basis to have the faith and trust of our 21 creditors and be able to go forward. I don't want to be one 22 of these local government entities that ends up having a 23 problem down the road because they did something merely 24 because it was politically popular. 25 COMMISSIONER BALDWIN: You realize that in the 9-7-10 18 1 letter to the editor today, you've already been reduced from 2 judge to commissioner. (Laughter.) 3 JUDGE TINLEY: Well, maybe I'll go further down 4 than that. I'll go to buck private. I've been there before, 5 Commissioner. 6 COMMISSIONER OEHLER: I don't think it's an issue 7 of being popular and doing what the public wants you to do. 8 I think that's not the -- that's not the case. It has to do 9 in my mind between right and wrong. And yes, things may have 10 -- they seem to -- you know, again, our revenues are down; 11 there's no question. At some point in time they will come 12 back, we hope. But I just don't -- you know, I don't see it. 13 I'm sorry, but I -- you know, I would rather take a pay cut 14 and have a job than I had to stay level, even with having to 15 pay more for things. I mean, this is not all of our doing. 16 It's just like Jonathan said. You know, we -- there's some 17 of it that we have a choice to make and pass some of the cost 18 on, which is not a popular thing to do, but it sometimes is 19 necessary, and I think we're in one of those times. And I 20 would much rather take a 2 and a half percent pay cut across 21 the board and make up some money that we need, and then as 22 time goes on, if things get better again, it won't be that 23 hard to go back up when you have the money. Values are not 24 going to stay where they are forever. They may be here for 25 another year or so. 9-7-10 19 1 But as far as our obligation to meet our debt 2 service, I believe those -- those amounts are already figured 3 in our tax rate, the way we've got it scheduled to pay it 4 back and what we have borrowed, so that, to me, is not an 5 issue. It's an issue of what we can afford to -- to pay at 6 this particular time, and what other people are doing to meet 7 their obligations. And -- but I don't think it's a 8 popularity thing. I think it's a right and wrong issue with 9 me. And -- and, you know, you can justify this either way. 10 I mean, I can argue the thing either way, just like what 11 you're doing, but drastic times call for drastic measures, 12 and I think that's where we are. 13 COMMISSIONER LETZ: Just -- the only comment I'd 14 like to make to the lady that made the comments earlier is 15 that, unfortunately -- or fortunately, government is not like 16 private business completely. We're mandated by the 17 Constitution of Texas to do a lot -- most of what we do. We 18 have very few discretionary items. We can cut law -- we can 19 cut our numbers down. We have to staff, by the Constitution, 20 Tax Office, District Clerk. We just have to do these things; 21 we don't have a choice. If we don't fund those to the level 22 of them being able to do their work, we -- they can go to 23 court, sue us, and then we're required to do it. We'd just 24 waste more tax dollars. So, we can't just automatically 25 reduce the jail, for example. We have to staff that 9-7-10 20 1 according to state law. We don't have a choice; we can't lay 2 off jailers. Most of our departments are like that. We have 3 an obligation to take care of the county roads, bridges. You 4 know, we really don't have a lot -- an overstaffed group 5 there. 6 I think I made a proposal originally that reduced 7 our employees by 10 at some point during the year. I think 8 the Judge's budget has it midyear. We can move that up 9 sooner; I don't have a problem with that. I think we do have 10 10 employees that are built into the budget right now that we 11 can reduce. I think we -- I don't say we're overstaffed, but 12 I think we can get by with less. I just don't see how we can 13 get much above that. And it may actually be about 12 to 14 14 to get the dollar figure we need. But I just don't see where 15 we're going to come up with, you know, 30-plus employees, 16 what departments are going to come out of it. And if I could 17 have a proposal that I could look at, then I could -- you 18 know, maybe y'all have looked at something I don't see, but 19 unless I can see another proposal, I just can't say we're 20 going to cut 30 people out, you know, without knowing where 21 they're going to be. 22 COMMISSIONER OEHLER: I don't believe we can -- you 23 know, that it would be -- be responsible to cut 30. I think 24 that's too many. I believe that -- I believe, realistically, 25 that there's a way to do up to 14 or 15. 9-7-10 21 1 COMMISSIONER LETZ: I agree. 2 COMMISSIONER OEHLER: That's realistic. It depends 3 on how many of that staff is reduced as to what our 4 liability's going to be on the people that -- you know, if 5 they quit's one thing. If they retire, it's something else. 6 And if we separate them, then it's a whole 'nother issue, and 7 we really still have some -- some liability to pay. 8 COMMISSIONER LETZ: Right. 9 COMMISSIONER OEHLER: So that all factors into it. 10 COMMISSIONER LETZ: But, see, I don't -- from what 11 I've been told from pretty much the Auditor, you can't get to 12 no tax increase with 14 employees going down and a 2 and a 13 half percent reduction. I mean, say you took that proposal 14 on. We still are about $600,000 short of where we need to 15 be. You know, you just can't get there. I don't see how 16 the -- you know, I don't see how we can not have a tax 17 increase. And I really don't see how we can have it less 18 than, really, close to three cents because of our reserve 19 situation. 20 COMMISSIONER WILLIAMS: I think it all boils down 21 to protecting the financial integrity of Kerr County, and 22 there are a lot of reasons why we don't want some of these 23 draconian things to happen because we fail to do that. So, I 24 think we need to add to the reserves so as to be able to 25 protect our integrity moving forward, and to avoid the 9-7-10 22 1 embarrassment of going into the financial markets on 2 short-term -- short-term lending. I think that would be the 3 wrong thing to do. 4 JUDGE TINLEY: Commissioner, if we have to borrow 5 operating capital in a financial market, I assure you, the 6 rate would be considerably greater than that very favorable 7 rate that we enjoyed of 2.29 percent. 8 COMMISSIONER WILLIAMS: Probably double or more. 9 JUDGE TINLEY: Be close to 8, probably. Be close 10 to 8. But because of our strong financial position, we were 11 able to obtain that very favorable rate of 2.29 percent the 12 last time we went to the market for capital items. And -- 13 and that's an indicator of that. But we certainly don't want 14 to -- want to put that position in jeopardy, nor the existing 15 debt agreements that we have outstanding that require us to 16 maintain a certain level of -- of financial stability. We're 17 required to report to those folks, not less than annually, 18 audited statements, significant events that occur that -- 19 that may call into question our ability to -- to respond to 20 our creditors. So, that's all part of the equation. And 21 you're exactly right; it's the stability and the integrity of 22 the financial position of this county that's important 23 long-term, going forward, that we've got to protect. One 24 significant bobble there, and it takes a tremendous amount of 25 effort to recover from it. 9-7-10 23 1 COMMISSIONER WILLIAMS: And expense. 2 JUDGE TINLEY: Oh, yeah. 3 COMMISSIONER BALDWIN: Judge, let's vote. What do 4 you say? 5 JUDGE TINLEY: Well, I'm waiting on a motion, 6 Commissioner. 7 COMMISSIONER BALDWIN: Don't have one. 8 JUDGE TINLEY: Okay. 9 COMMISSIONER BALDWIN: Sounds like one of these two 10 guys might have one, though. 11 COMMISSIONER LETZ: All right. I'll make a motion 12 to adopt the budget presented by the Judge -- 13 COMMISSIONER OEHLER: This is tax rate, all we're 14 talking about today, right? 15 JUDGE TINLEY: Mm-hmm. Yeah, tax rate. 16 COMMISSIONER LETZ: All we're doing is tax rate? 17 Then I'll make a motion to increase our general operating -- 18 what is it, M & O tax rate by 2.6 cents, and our Road and 19 Bridge by .4, for a total tax increase of 3 cents. 20 COMMISSIONER WILLIAMS: Second. 21 COMMISSIONER LETZ: And that is -- you know, I'm 22 sure y'all figured it out -- 23 COMMISSIONER BALDWIN: Is there more? 24 COMMISSIONER LETZ: I'm sure everyone up here 25 knows, but that is less than the Judge proposed. 9-7-10 24 1 COMMISSIONER WILLIAMS: Other shoe will drop here 2 in a minute. 3 COMMISSIONER LETZ: I hope that we're able to make 4 it on that amount. I think it's going to be very tough. 5 JUDGE TINLEY: Okay, I have a motion and a second 6 to increase the Kerr County tax rate by 2.6 cents per 100, 7 and the Road and Bridge by 4/10 of one cent per 100. Lateral 8 roads actually is what it's called. 9 COMMISSIONER LETZ: Right. 10 JUDGE TINLEY: Question or discussion on that 11 motion? Okay. Record vote on the motion. Commissioner 1? 12 COMMISSIONER BALDWIN: Number 1 votes no. 13 JUDGE TINLEY: Commissioner 2? 14 COMMISSIONER WILLIAMS: Yes. 15 JUDGE TINLEY: Commissioner 3? 16 COMMISSIONER LETZ: Yes. 17 JUDGE TINLEY: Commissioner 4? 18 COMMISSIONER OEHLER: No. 19 JUDGE TINLEY: The chair votes no. Do I hear a 20 further motion? 21 COMMISSIONER BALDWIN: I do have a question. I 22 went into a coma there just for a second. (Laughter.) 23 JUDGE TINLEY: Understandably, Commissioner. 24 COMMISSIONER BALDWIN: But I'm out and doing 25 better, thank you. Was it 3 cents or 2.6? 9-7-10 25 1 COMMISSIONER LETZ: It was 2.6 and .4, for a total 2 of 3. 3 COMMISSIONER BALDWIN: Yeah. Oh, I see. 4 COMMISSIONER LETZ: Which is less -- which is .6 5 less than the Judge proposed. 6 COMMISSIONER BALDWIN: Now, do we know -- of 7 course, this whole thing is -- this vote today and this issue 8 is based on that budget. 9 JUDGE TINLEY: That's where I am, Commissioner. 10 COMMISSIONER BALDWIN: I understand. I understand. 11 But my question is, do we know what's in -- what's in that 12 budget? How many salary increases? Is the Judge's stuff 13 still in there? 14 JUDGE TINLEY: No. 15 COMMISSIONER BALDWIN: You know, all those things 16 that we've been talking about, that we're talking about 17 taking out, have they been taken out? We don't know that. 18 Has anything been added in there? I don't know that. I've 19 already voted no, so it doesn't matter. I'm just saying -- 20 JUDGE TINLEY: Well, I'll answer that question. 21 Whether I can do so with real specific particularity, I'm not 22 sure, but that budget does -- does not include any increases 23 other than the COLA. Now, the COLA, of course, we've heard 24 about, but it also includes the health benefits budget number 25 based upon employee participation, and increased 9-7-10 26 1 participation for coverage for spouse and children 2 dependents. It includes reductions of one-half year for 3 approximately 10 employees; $250,000 is the number. It 4 includes a $25,000 decrease in the County-sponsored. Now, 5 that does not include any decreases to the library, primarily 6 for the reasons that Commissioner Letz mentioned. It does 7 not include any decreases for the trapper contract. It does 8 not include any decrease for -- 9 COMMISSIONER BALDWIN: Economic. 10 JUDGE TINLEY: -- economic development. And the 11 reason it doesn't is because, based upon the Court's approval 12 of the task force proposal and subsequent approval of the -- 13 the new organization, which included our participation in the 14 amount indicated, that one was not reduced. Let me take a 15 quick look at some more notes, Commissioner, and maybe -- 16 COMMISSIONER BALDWIN: Well, you know, I've got -- 17 in here one day in our discussions, we talked about -- I 18 brought up the -- and it's just -- I know it's a small thing, 19 but it could be turned into something bigger. I brought up 20 the fact that it may be time for the D.P.S. secretary to move 21 back over here and let the state of Texas take care of 22 themselves, and we all said, "Oh, yeah, that's got to 23 happen." Did that happen? 24 JUDGE TINLEY: No. No, it -- 25 COMMISSIONER BALDWIN: I understand. I understand 9-7-10 27 1 that. 2 JUDGE TINLEY: Because I perceived that as a 3 decision for the Court. 4 COMMISSIONER BALDWIN: Excuse me? 5 JUDGE TINLEY: I perceived that as a decision for 6 the Court -- 7 COMMISSIONER BALDWIN: Yeah. 8 JUDGE TINLEY: -- to make as part of the $250,000 9 reduction. 10 COMMISSIONER BALDWIN: Yeah. And that would be an 11 official type thing to happen in here. But I was just -- you 12 know, if that didn't make it out, then, you know, I'm 13 wondering what else didn't make it out. Just define your -- 14 explaining yourself. That's good. 15 COMMISSIONER LETZ: Commissioner, what I heard him 16 say, though, was that that employee at D.P.S. is part of -- 17 is included potentially in this $250,000 staff reduction, 18 which is -- you know, so it may be included. 19 COMMISSIONER BALDWIN: Yeah. I heard him say that 20 too. 21 JUDGE TINLEY: It's subject to being included, 22 depending on the decision of the Court. 23 COMMISSIONER WILLIAMS: By pulling out the 24 cost-of-living adjustment, how many dollars closer does that 25 get us? 9-7-10 28 1 COMMISSIONER OEHLER: $328,000, I heard. 2 COMMISSIONER WILLIAMS: Say it again? 3 COMMISSIONER OEHLER: 328,000 is what I heard. 4 That may have changed since our last meeting. 5 COMMISSIONER WILLIAMS: That's a pretty nice 6 number, if somebody wants to confirm it. 7 COMMISSIONER LETZ: But the -- the two changes I 8 recommended, get rid of the COLA, and also getting rid of the 9 employee contribution, basically were a wash. There wasn't a 10 substantial net change there. Obviously, based on total 11 employment, those numbers vary a little bit. 12 COMMISSIONER WILLIAMS: Okay. 13 COMMISSIONER OEHLER: So, if everybody took a 2 and 14 a half percent pay cut, the same thing as the 2 and a half 15 percent COLA. Still the same number; it just goes in the -- 16 goes in the bank instead of being paid out. 17 JUDGE TINLEY: That would be the net effect of it, 18 Commissioner. 19 COMMISSIONER OEHLER: And if we get 10 -- if we 20 reduce by 10 staff in some mix, form, fashion, or another, 21 that probably should net around 350,000, just guessing. 22 COMMISSIONER LETZ: That's already in the budget. 23 COMMISSIONER OEHLER: Rather than -- rather than 24 counting on 50,000 per employee. 25 COMMISSIONER LETZ: But, I mean, the number is in 9-7-10 29 1 there, and based on what the Auditor and the H.R. have told 2 me, we can't get there with 10 employees; it's going to take 3 12 to 14. 4 COMMISSIONER OEHLER: Okay. Well, then -- 5 COMMISSIONER LETZ: That's in there. 6 COMMISSIONER OEHLER: Then we probably need to 7 think about doing that. 8 COMMISSIONER LETZ: But that number's in there. 9 That's already included. 10 JUDGE TINLEY: 250,000 reduction is included. 11 COMMISSIONER LETZ: So we've already -- 12 JUDGE TINLEY: Which is a half a year. 13 COMMISSIONER LETZ: And that's doing it by midyear. 14 The only way to change that number would be to move it 15 forward, but then if you start actually laying people off, as 16 opposed to using attrition, you might not have the -- might 17 not be any improvement in total numbers. 18 JUDGE TINLEY: You got other issues that come into 19 play also. 20 COMMISSIONER LETZ: Right, such as -- 21 JUDGE TINLEY: Unemployment. 22 COMMISSIONER LETZ: -- unemployment compensation, 23 and -- 24 COMMISSIONER OEHLER: Yeah. 25 COMMISSIONER LETZ: -- other amounts that are owed. 9-7-10 30 1 COMMISSIONER OEHLER: If you had to lay off, that 2 would be a consideration. 3 COMMISSIONER LETZ: Right. 4 JUDGE TINLEY: Well, do we have anything further on 5 that, or do we want to come back to it later? 6 COMMISSIONER WILLIAMS: Sooner or later we got to 7 settle it. 8 JUDGE TINLEY: That's right. We do have a 10:30 9 item that is a timed item that we're going to call; then 10 we'll come back to Item Number 1. Item 10 is a 10:30 item; 11 report on construction progress at the Sheriff's Office Annex 12 building project, request for waiver of liquidated damages 13 during period contractor corrects damaged or improperly 14 installed roof panels caused by subcontractor. Mr. Lewis? 15 MR. LEWIS: Morning, Judge, Commissioners. How are 16 you? I am here to report on progress of the Sheriff's annex, 17 and to report that for all practical purposes, the project is 18 substantially complete. But a little over two weeks ago, we 19 were made aware of some deficiencies in some of the roof 20 panels, and we have been -- the general contractor, Kendnel 21 Kasper, has been aware of this and is working with the 22 subcontractor to remedy it. And there are dents and some 23 improper installation on the roof that we cannot counsel the 24 Court to accept as substantially complete, but in all other 25 respects, the building is. We have done what we call our 9-7-10 31 1 final punch list, gone through with our consultants, just 2 some minor other items that need to be picked up. Liquidated 3 damages, which are punitive, in the order of, I think, $300 a 4 day would kick in this week, if -- if the terms of the 5 construction contract were adhered to. It is our 6 consideration, in conversation with the Judge and the general 7 contractor, that the general contractor is acting in good 8 faith to finish the job, and their commitment is to replace 9 all of the panels on the roof. And what we are here to 10 request today is waiver of those liquidated damages for the 11 period of time to allow them to complete that. This is 12 through no fault of their own. And, again, they have acted 13 in good faith throughout. We're very pleased with the 14 project. The Sheriff is pleased with it. The Judge had been 15 over there about every other day. And so that is our request 16 on behalf the general contractor. 17 COMMISSIONER OEHLER: How many panels are damaged? 18 MR. LEWIS: Probably 50 percent of them. 19 COMMISSIONER OEHLER: Goodness. Wow. 20 MR. LEWIS: In some form or fashion. The damage 21 includes some dents on some of the panels, and just some 22 improper fastening where the fasteners -- the washers that 23 are -- are below the screw fasteners were blown out. And the 24 -- the method that the subcontractor used to remediate that 25 was not acceptable to us. And so I got up on the roof about 9-7-10 32 1 a week and a half ago and walked up and down the eve, up and 2 down the ridge, and identified a significant number of places 3 that I did not consider to be consistent with accepted 4 construction practices. So -- and so their commitment is to 5 replace all those panels. There's some issues that I won't 6 go into, but there's some issues with the subcontractor, and 7 -- and they are going to hold that subcontractor accountable. 8 There are -- the Court at present has in excess of 65,000, 9 $68,000 in retainage. The value -- according to the general 10 contractor, the value of the roof panels, the material is 11 about $4,000, and they will absorb the labor cost themselves, 12 and have made a commitment to use trained roof installers 13 with the right -- proper equipment to replace the panels. 14 And the anticipation is that that would happen before -- 15 well, within the next two weeks, based on their ability to 16 work. They've already ordered the panels, I believe. So -- 17 JUDGE TINLEY: We were in a position to accept the 18 project as substantially complete, as that term is used in 19 the contract, which would have stopped the meter running on 20 the general contractor last week, but for these roof panels. 21 And, of course, the -- actually, I might point out that our 22 initial notification as to some question about some of those 23 roof panels was brought to our attention by Mr. Bollier with 24 our Maintenance Department, and based upon that notification, 25 we moved forward and did some investigation, and -- and found 9-7-10 33 1 what we found. And as a result of a discussion last week, 2 why, Mr. Lewis and I thought it appropriate to bring it to 3 the Court to recommend to the Court that since, but for that, 4 through no fault of the general contractor, the building 5 would otherwise be substantially complete, that we ask the 6 Court, based upon the general contractor's assurance that 7 irrespective of any problems it may have with the 8 subcontractor, they're going to get it done, they're going to 9 make it right, and the finished product would be something 10 that we would be very happy to receive, and so asking the 11 Court to waive the liquidated damages during that portion of 12 time that they're making these corrections and installing 13 these new roof panels. 14 COMMISSIONER LETZ: The liquidated damage clause 15 started September 1? 16 MR. LEWIS: Well, it -- we actually had some 17 weather extensions, and we had visited with the Judge. I -- 18 I apologize; I can't tell you the exact date. I believe it 19 was -- a day this week would have been it. So, for all 20 intents and purposes, say today. Now, I realize in the wake 21 of your previous discussion that $300 a day may be something 22 that looks appealing to the Court, but we still counsel -- 23 COMMISSIONER WILLIAMS: It does. How many days can 24 we stretch it out? 25 MR. HENNEKE: Who's paying for the replacement 9-7-10 34 1 materials? 2 MR. LEWIS: The general contractor. Actually, it 3 is between the general contractor and the subcontractor. It 4 will not accrue to the county. 5 JUDGE TINLEY: Be no cost. 6 MR. HENNEKE: When were the roof panels put on? 7 MR. LEWIS: The roof panels were put on several 8 months ago. It was when the building was dried in. 9 COMMISSIONER LETZ: I don't really mind waiving the 10 liquidated damage for two weeks, but we have a retainage 11 still, correct? 12 MR. LEWIS: Yes. 13 COMMISSIONER LETZ: I don't want to pay any more -- 14 or do our final payment until after this is fixed. 15 JUDGE TINLEY: The retainage will be held under the 16 contract after the building -- the clock will start ticking 17 on the retainage after -- 18 MR. LEWIS: After we certify substantial. And this 19 is a fact. The A.A. general conditions call for release of 20 retainage at substantial completion, but we modify -- have 21 modified our contracts to say "final completion." We believe 22 final completion and substantial completion will -- will be 23 about the same date. If all of us -- this will give the 24 contractor also the time period to pick up on the punch list 25 items that -- that we and our consultants generate. 9-7-10 35 1 COMMISSIONER LETZ: What's the amount of the 2 retainage? 3 MR. LEWIS: At the last draw, it was 68,000, plus 4 or minus. 5 JUDGE TINLEY: And there will be more retainage -- 6 MR. LEWIS: There will be more. 7 JUDGE TINLEY: -- for the last payment. 8 MR. LEWIS: Their final draw. 9 JUDGE TINLEY: Should be somewhere around 80,000 10 thousand or better, 80,000 to 90,000 in retainage. 11 COMMISSIONER OEHLER: That will be enough for them 12 to finish, correct the problems? 13 JUDGE TINLEY: Oh, yeah. 14 MR. HENNEKE: Do you think final completion is 15 realistic on or before the 20th? 16 MR. LEWIS: Today being the 6th? 17 COMMISSIONER LETZ: 7th. 18 MR. HENNEKE: Two full weeks. 19 MR. LEWIS: It is -- that would be -- that is their 20 commitment, but it depends on their ability to order and get 21 the panels here. 22 MR. HENNEKE: 'Cause I'm wondering -- 23 MR. LEWIS: I can't commit for the contractor on 24 that. 25 MR. HENNEKE: Right. I mean, it would seem to me 9-7-10 36 1 that if we could have -- I know that we have lease issues 2 with, certainly, Adult Probation. My understanding, they are 3 homeless by the end of this month, and they need time to 4 transition. And so, rather than just completely waiving the 5 liquidated damage clause, my initial reaction, it makes sense 6 if we could get a firm date that we could say we won't assess 7 them if everything's done by this date. But if it's not, 8 then, you know, we're still going to backdate the thing. 9 So -- but set a realistic date that they can accomplish that 10 goal, but we can still be able to move in. I want to be 11 fair. I understand what Mr. Lewis is saying, and certainly 12 want the general contractor making right by this, and -- and 13 from what's he's, you know, said, sounds like they're -- 14 they're trying to do a good job on it. But still, then 15 having a little stick and that carrot to say, "Give us a hard 16 date that we can count on, and when you accomplish that, then 17 yeah, we'll waive liquidated damages between now and then. 18 If not, then you're running us up against a wall." 19 JUDGE TINLEY: Yeah. You're suggesting the 20th, 20 which is just about the same as two weeks. 21 COMMISSIONER LETZ: Right, I said two weeks. 22 MR. HENNEKE: Two weeks from yesterday. It gives 23 them two work weeks plus two weekends. 24 COMMISSIONER BALDWIN: I agree. 25 COMMISSIONER LETZ: If they go beyond that, what I 9-7-10 37 1 said, the two weeks, they've got to come back to the Court, 2 or they'll start paying liquidated damages that date. 3 MR. HENNEKE: But I understand the terms we're 4 having -- I mean, I don't want to set an unrealistic date, 5 and so I'm just asking if that was -- 6 MR. LEWIS: I don't think that's unrealistic. I 7 can't commit for them, but when we met on Friday, he 8 indicated a 10-day to two-week period, and that was his -- 9 his estimate. 10 COMMISSIONER LETZ: I'll make a motion that we 11 extend the date for liquidated damages to September 20th -- 12 what's our next meeting date? What's our next -- 13 MR. LEWIS: 14th. 14 JUDGE TINLEY: 13th. 15 COMMISSIONER LETZ: 14th. 16 JUDGE TINLEY: 14th. But then we have a meeting a 17 week after that. But we should know something -- hopefully, 18 we should know some job progress by next Monday, I would 19 think. 20 MR. HENNEKE: You do have a Commissioners Court 21 meeting on Monday. And, I mean -- 22 COMMISSIONER LETZ: Till the next meeting on Monday 23 -- on Monday, the 13th. 24 MR. HENNEKE: And if you give time to get a 25 commitment as to a firm date, but also then consider not 9-7-10 38 1 changing the contract or waiving anything, but basically 2 agreeing that if that benchmark is met, then stuff between 3 now and then would be -- would be waived. 4 JUDGE TINLEY: So your motion, Commissioner, is to 5 waive liquidated damages up until our meeting on the 13th? 6 COMMISSIONER LETZ: Yes, sir. 7 COMMISSIONER BALDWIN: Second. 8 JUDGE TINLEY: Motion made and seconded as 9 indicated. Further question or discussion? All in favor of 10 the motion, signify by raising your right hand. 11 (The motion carried by unanimous vote.) 12 JUDGE TINLEY: All opposed, same sign. 13 (No response.) 14 JUDGE TINLEY: The motion does carry. Okay, 15 gentlemen. We ready to go back to Number 1, or are we still 16 cogitating that? 17 COMMISSIONER BALDWIN: If we went back to Number 1, 18 what would we accomplish? 19 COMMISSIONER LETZ: We have to do it. 20 COMMISSIONER WILLIAMS: Someone might change his 21 vote. 22 COMMISSIONER BALDWIN: Okay, try. 23 COMMISSIONER LETZ: Or change the motion. But we 24 have to -- we have to come to -- we have to set a tax rate. 25 JUDGE TINLEY: Proposed tax rate. 9-7-10 39 1 COMMISSIONER LETZ: Proposed tax rate. 2 JUDGE TINLEY: That's not necessarily the adopted 3 tax rate. The adopted tax rate can be -- without further 4 public notification, can be anything up to the proposed tax 5 rate that we vote on by record vote today. 6 COMMISSIONER BALDWIN: If we -- if we lowered this 7 number, this total 3 cents here that was proposed earlier, 8 how does that affect meeting the budget that's lying in wait 9 up the hall? 10 COMMISSIONER LETZ: Well, it gives us the -- the 11 bottom line number. 12 COMMISSIONER BALDWIN: So it would reduce -- it 13 will reduce the budget. I mean, you're not going to be able 14 to pass that budget with a reduced amount of money. 15 COMMISSIONER LETZ: It reduces the revenue that 16 goes into that budget. 17 COMMISSIONER BALDWIN: That's correct. 18 COMMISSIONER LETZ: And it wouldn't be very -- I 19 couldn't support -- if we don't do something else, we have to 20 either cut something out of the budget, basically. 'Cause 21 we're having -- the number I presented, the 2 -- 2 or 3-cent 22 increase really necessitated us finding about, you know, 23 $150,000 in additional cuts somewhere. 24 COMMISSIONER BALDWIN: I know where 250 is real 25 quick. You know, you talk about this agreement we have with 9-7-10 40 1 the City and this library and everything. I understand what 2 you're saying, but I also understand that -- and we -- every 3 person at this table has used the term, "these are unusual 4 times." And they are unusual times. And unusual times -- I 5 can't remember how you said it earlier -- cause unusual 6 movement or something. 7 COMMISSIONER OEHLER: Drastic measures. 8 COMMISSIONER BALDWIN: Drastic measures. And one 9 -- to me, one of those drastic measures is to say, "City, I'm 10 sorry about your agreement; 200,000 is out." We just kick 11 the can on down the road. I mean, that's a drastic measure; 12 I understand that. But here we are. 13 COMMISSIONER OEHLER: Well, they also increased the 14 EMS contract considerably without really much documentation 15 of why it was increased so much. Just everything -- every 16 time we turn around, they're adding -- they're going up and 17 up and up. 18 COMMISSIONER LETZ: Well, that goes -- that -- and 19 that goes back to an earlier conversation I had that didn't 20 seem to go real far, was that I think we need to relook at 21 the -- going forward on our Road and Bridge rate we receive. 22 You know, we're -- the City is charging us for administrative 23 time on projects they do for us. We're not charging them 24 administrative time for things we're doing for them, and 25 that's not accurate -- I mean, that's not right. 9-7-10 41 1 COMMISSIONER OEHLER: Not a fair trade. 2 COMMISSIONER LETZ: And I think that the -- you 3 know, this year the amount, I think, is in the 4 neighborhood -- we figured $30,000. Well, Len and I figured 5 the manpower, you know, 15 or -- or 25 and 30,000, 6 considering manpower, administrative time, things of that 7 nature. Next year, my understanding is that that project -- 8 or the list of roads we're working on in the city of 9 Kerrville is a lot more than this year. And -- and, you 10 know, it's nice to be able to do work for the city, and they 11 are -- you know, those are -- it's taxpayers there too. I 12 mean, the option there is you don't repair city roads, or the 13 city's going to have to go up on their taxes or make more 14 cuts. I mean, it's a balancing act the way you do it. But, 15 you know, I don't have a problem with relooking at that line 16 item. When it comes to, you know, having a tax rate that 17 hopefully we can adopt, we may make some changes. 18 JUDGE TINLEY: Is any member of the Court in a 19 position to offer a motion in connection with Agenda Item 20 Number 1 at this time? Let's move on to Item 2; recognition 21 of Pam Cornett and presentation of a plaque memorializing her 22 retirement after 37 years in county government and 15 years 23 in Kerr County government. Ms. Cornett? Are you here on 24 your own time, young lady? 25 MS. CORNETT: It's all my own time now. 9-7-10 42 1 (Laughter.) 2 JUDGE TINLEY: Well, that was my question to you. 3 That was my question to you. 4 COMMISSIONER BALDWIN: You want her up here, or are 5 you going down there? 6 JUDGE TINLEY: I don't know. I guess I can move on 7 down there. 8 COMMISSIONER OEHLER: Not room up here. 9 JUDGE TINLEY: We never got on the gold watch habit 10 around here, unfortunately, Ms. Cornett, but we do have 11 something for you to memorialize your time with county 12 government, and specifically -- 13 MS. CORNETT: Thank you. 14 JUDGE TINLEY: -- Kerr County, 37 years total with 15 county governments. 16 MS. CORNETT: Thank you. 17 JUDGE TINLEY: And 15 years with Kerr County. And 18 we have here also a momento of our appreciation and a pin for 19 your work with us here in Kerr County. 20 MS. CORNETT: Thank you. 21 JUDGE TINLEY: Appreciate your work. Thank you. 22 MS. CORNETT: Thank you. 23 (Applause.) 24 COMMISSIONER BALDWIN: Speech. 25 MR. CORNETT: No. 9-7-10 43 1 (Laughter.) 2 JUDGE TINLEY: Okay. That one was easy, gentlemen. 3 Let's go to Item 3; consider/discuss amendment of Court Order 4 Number 31823 to change the name of the second early voting 5 location to the Kerr County Courthouse, Ingram Annex, at 6 3324-A Junction Highway, Ingram, Texas, in accordance with 7 Chapter 43 of the Texas Election Code. Ms. Alford? 8 MS. ALFORD: Yes, sir. We just want to clarify 9 the -- I think I said the Ingram Tax Office on the other 10 order, and I just want to get a clarification. It's the Kerr 11 County Courthouse, Ingram Annex, for the public notice. 12 COMMISSIONER OEHLER: Move approval. 13 COMMISSIONER BALDWIN: Second. 14 COMMISSIONER LETZ: Second. 15 JUDGE TINLEY: Motion made and seconded for 16 approval of the agenda item. Question or discussion? 17 COMMISSIONER BALDWIN: And use all four parking 18 places out there? 19 MS. ALFORD: Yes, sir. 20 COMMISSIONER OEHLER: I have already talked to 21 Judge Ragsdale, and he's going to reschedule his docket 22 accordingly so we can have early voting there. And -- 23 COMMISSIONER WILLIAMS: You tell him to rearrange 24 his life? 25 COMMISSIONER OEHLER: I'm not going to go into any 9-7-10 44 1 detail. 2 JUDGE TINLEY: Further question or discussion on 3 that motion? All in favor of the motion, signify by raising 4 your right hand. 5 (The motion carried by unanimous vote.) 6 JUDGE TINLEY: All opposed, same sign. 7 (No response.) 8 JUDGE TINLEY: The motion carries. Let's go to 9 Item 4; consider/discuss approving the changing of polling 10 location in Precinct 119 from Foursquare Gospel Fellowship 11 Church to the River Oaks Mall, Number 845A, in accordance 12 with Chapter 43 of the Texas Election Code. 13 MS. ALFORD: Yes. We were notified by the 14 Foursquare Gospel Fellowship that due to the time of year, 15 they -- they can't allow us to use our building -- their 16 building for elections. So, I've looked for places, and I 17 found at the River Oaks Mall -- it is between Dinner is 18 Served and El Charro's, there's a spot there that they're 19 willing to let us use. We'll have to have the electricity 20 put in Kerr County's name, and probably pay for the 21 electricity. But otherwise, they're giving -- letting us use 22 that location. 23 COMMISSIONER LETZ: Is it not possible just to -- 24 is there no electricity in that location right now? 25 MS. ALFORD: There's nobody in that location right 9-7-10 45 1 now, and they'll keep it open for us for November. 2 COMMISSIONER LETZ: I guess on the electrical part, 3 it seems like it's going to cost us a fair amount to start 4 service for one day, then end service. 5 MS. ALFORD: I think the electricity is already on. 6 We just have to switch it over into our name, is what I've 7 been told by the realtor. 8 COMMISSIONER OEHLER: Well, charge us for 9 electricity -- 10 COMMISSIONER LETZ: For a day, charge us $100 or 11 something. I mean, I guess -- okay. 12 COMMISSIONER BALDWIN: I move for approval. 13 COMMISSIONER WILLIAMS: Second. 14 JUDGE TINLEY: Motion made and seconded for 15 approval of the agenda item. Question or discussion? All in 16 favor of the motion, signify by raising your right hand. 17 (The motion carried by unanimous vote.) 18 JUDGE TINLEY: All opposed, same sign. 19 (No response.) 20 JUDGE TINLEY: That motion does carry. 21 MS. ALFORD: Thank you. 22 JUDGE TINLEY: Gentlemen, any time that you're 23 prepared to offer a motion with respect to Agenda Item 24 Number 1, if you'll just let me know, we'll get right back to 25 that. Lacking that, we going to Item 5; consider, discuss, 9-7-10 46 1 take appropriate action to approve contract with Government 2 Technologies, Incorporated, for imaging services for the 3 Environmental Health Department, as presented and discussed 4 at the July 20th, 2010 budget workshop. Mr. Garcia? 5 MR. GARCIA: Yes. As the agenda item states, we 6 had it on the July 20th budget workshop. What we were going 7 to do is just get it paid in the new fiscal year in October. 8 And I think you guys have a copy of that. Just waiting for 9 approval. 10 COMMISSIONER WILLIAMS: So moved. 11 COMMISSIONER OEHLER: Second. 12 JUDGE TINLEY: Motion made and seconded for 13 approval of the agenda item. Question or discussion? All in 14 favor of the motion, signify by raising your right hand. 15 (The motion carried by unanimous vote.) 16 JUDGE TINLEY: All opposed, same sign. 17 (No response.) 18 JUDGE TINLEY: That motion does carry. We'll go to 19 Item 6; consider, discuss, take appropriate action concerning 20 request from Mountain Home Volunteer Fire Department to use 21 Kerr County's Fleet Identification Number with Ford Motor 22 Company to facilitate savings on purchase of Ford F-550 23 truck. I put this on the agenda as a result of some 24 communication received by Ms. Hargis with respect to Mountain 25 Home Volunteer Fire Department's efforts to purchase a new, I 9-7-10 47 1 guess, cab and chassis for a new brush truck that they're 2 planning on putting into service. The indication was if -- 3 if they were allowed to utilize our fleet identification 4 number with Ford Motor Company, that -- that they would be 5 able to save approximately $3,800 based on that alone. Is 6 that correct, Mr. Brand? 7 MR. BRAND: I'm not sure on the dollar amount. 8 JUDGE TINLEY: That's what the e-mail I'm looking 9 at indicates, and that's from the local Ford representative; 10 indicated that that would be the amount saved. 11 COMMISSIONER OEHLER: Rob, is there any problem 12 with doing that that you can think of? 13 MR. HENNEKE: You know, I'm looking at it. We 14 already subsidize the fire department's budget. They perform 15 a valuable emergency service to this community and are a 16 quasi, you know, governmental type entity. Essentially, 17 we're using it with the money that we -- we give them, and 18 we're getting a better deal to make our -- our money go 19 further so that they can better serve that part of west Kerr 20 County. So, for volunteer fire departments -- the Mountain 21 Home Volunteer Fire Department, I think it's a good use of 22 our buying power to help them leverage more so that they have 23 more with what they have. 24 COMMISSIONER OEHLER: Sure. I just wanted to be 25 sure we were able to do this. I move approval. 9-7-10 48 1 COMMISSIONER BALDWIN: Second. 2 JUDGE TINLEY: Motion made and seconded for 3 approval. Question or discussion? Mr. Brand, is it the 4 department's intention to cash that thing out when they buy 5 it? They have the funds on hand to -- 6 MR. BRAND: Right, yeah. 7 JUDGE TINLEY: -- to totally fund the purchase? 8 MR. BRAND: Right. 9 JUDGE TINLEY: Okay. 10 COMMISSIONER OEHLER: Is that one -- 11 JUDGE TINLEY: We've got no liability, then. 12 COMMISSIONER OEHLER: We have no -- is part of that 13 being purchased by the ESD? 14 MR. BRAND: Right. Yeah, we're going through the 15 ESD to purchase the truck, and trying to find out which is 16 the best way to go, to buy a cab and chassis and finish it 17 out, or buy a complete. We're getting bids right now to, you 18 know, see which is the best way to go. 19 COMMISSIONER OEHLER: Okay. 20 JUDGE TINLEY: Further question or discussion? All 21 in favor of the motion, signify by raising your right hand. 22 (The motion carried by unanimous vote.) 23 JUDGE TINLEY: All opposed, same sign. 24 (No response.) 25 JUDGE TINLEY: The motion does carry. We'll go to 9-7-10 49 1 Item 7; to consider, discuss, and take appropriate action to 2 lift the hiring freeze for Juvenile Detention Facility to 3 allow hiring of part-time employees as may be necessary to be 4 in compliance with the Texas Juvenile Probation Commission 5 ratios and requirements. Mr. Stanton? 6 MR. STANTON: Yes, sir. We had -- this past week, 7 we had two of our part-time employees, female employees, 8 resign their positions to take full-time positions; actually, 9 both of them with the school district. And we have one 10 female part-timer on staff right now, and I'm requesting that 11 we be able to hire one additional female part-time staff to 12 allow us to stay within the ratios provided by the Texas 13 Juvenile Probation Commission. 14 COMMISSIONER WILLIAMS: This keeps you in 15 compliance? 16 MR. STANTON: Yes, sir. 17 COMMISSIONER WILLIAMS: So moved. 18 COMMISSIONER BALDWIN: Second. 19 JUDGE TINLEY: Motion made and seconded for 20 approval. Question or discussion? All in favor of the 21 motion, signify by raising your right hand. 22 (The motion carried by unanimous vote.) 23 JUDGE TINLEY: All opposed, same sign. 24 (No response.) 25 JUDGE TINLEY: That motion does carry. I keep 9-7-10 50 1 waiting on someone to tell me they're ready to offer a motion 2 on Number 1. But we'll go to Item 8; consider, discuss, take 3 appropriate action to lift the hiring freeze for District 4 Clerk to allow her to replace a key employee that is 5 resigning effective September 15th, 2010. Ms. Uecker, is 6 this a matter that we can consider in open session, or is it 7 necessary that we go to closed session? 8 MS. UECKER: I think it's okay. 9 JUDGE TINLEY: Okay. 10 MS. UECKER: I'm okay with it. As you know, this 11 person that I'm losing is a key position. It's one of my 12 courtroom clerks. And criminal -- the criminal activity has 13 increased so much that it takes two, sometimes three 14 full-time people just to deal with the criminal stuff. It 15 also takes a special person to be able to go to the courtroom 16 and deal with lawyers, judges, defendants, and I can't 17 control how that works. It's just a fast pace. It's very 18 stressful, and although probably most of my staff could do 19 it, I don't know that the judges would like it. But although 20 our revenue is slightly down, you know, our workload is 21 certainly not. It's increased. I think I gave you a report 22 a couple of weeks ago to show that. And back when we went to 23 Odyssey, I reduced one and a half people. I don't know -- 24 Jonathan, you probably remember that, because of the software 25 program. We're working a lot smarter. We -- we're all 9-7-10 51 1 cross-trained. Everybody's cross-trained. There's just some 2 better at some functions than others. And passports are 3 still the same. And I'm losing this person to the District 4 Attorney's office, and in support of my request, I'm just 5 curious as to why they're not up here asking for their hiring 6 freeze to be lifted. Because -- and I understand it's 7 because supposedly they're not county employees, I guess. I 8 mean, I don't understand -- sometimes we declare each other 9 county employees based on whether or not it benefits us. So, 10 either they are or they aren't, and at some point we need to 11 make a list of who's a county employee or who's not. And I 12 also know that over half of that employee's salary over there 13 is paid by the county, and they come to the Christmas parties 14 and they get service plaques for being a county employee, so 15 explain that one to me. So, I would just ask the Court to 16 grant my request to replace this very key position. I am 17 probably going to be losing one in March to retirement. And 18 I have always sucked it up, Commissioner, as you know. I've 19 never had any fluff in my staff. Don't believe in that. And 20 we just have to do what we can do. 21 COMMISSIONER LETZ: I'll speak first. 22 MR. HENNEKE: Judge, Commissioners, the hiring -- 23 hiring freeze is the action item on 1.8, as Ms. Uecker points 24 out. The hiring freeze is the action item on 1.8, to lift 25 the hiring freeze to allow that to be filled in the vacancy. 9-7-10 52 1 If there was any -- if there is need for any discussion on 2 the other issues that were raised, we could go into 1.9 and 3 go into executive session, just the six of us. But the only 4 issue on this one is lifting the hiring freeze or -- 5 MS. UECKER: Right. 6 MR. HENNEKE: -- or not, for the District Clerk's 7 office. 8 COMMISSIONER LETZ: My response at this point is, 9 until we figure out a budget, no. I may have a different 10 frame of mind once we come up with a budget, but until we can 11 come up with a -- a budget -- we can't even come up with a 12 tax rate today, so we have to come up with a budget before we 13 can start talking about any new employees anywhere. And I 14 know that puts you in a -- in a problem situation, and it may 15 put the District Attorney in a difficult situation too. 16 COMMISSIONER OEHLER: Well, I'll ask a question 17 about -- what about -- you know, I'm not promoting this; I'm 18 just putting it out there, okay? Lateral transfers. Is 19 that -- 20 COMMISSIONER WILLIAMS: That's effectively what 21 this is. 22 COMMISSIONER OEHLER: Yeah. I mean, that's what 23 we're really talking about, is a lateral transfer. Are those 24 going to be subject to the hiring freeze or not? And that's 25 the question in my mind. We're going to start having, you 9-7-10 53 1 know, department heads going from one department to another 2 and transferring people to fill positions if they're vacated, 3 so is that considered a hire? 4 JUDGE TINLEY: Well, Commissioner, the issue of who 5 is or is not a county employee versus a non-county employee, 6 that issue is intertwined with this as to whether or not it's 7 a lateral transfer. Within -- within specific, recognized 8 county departments, that -- that very well may be a 9 collateral issue that maybe needs to be explored and some 10 decision made. But the reason that -- that there was not an 11 agenda item for the other end of this thing with the District 12 Attorney's office was I had initially suggested that it be an 13 agenda item. The County Attorney, based upon his conclusion 14 that they were not, quote, county employees, the policy did 15 not apply to them, and so I don't think the issue of lateral 16 transfer comes in here. But -- 17 COMMISSIONER OEHLER: Maybe their funding shouldn't 18 come from the county either. 19 COMMISSIONER WILLIAMS: Well, what would prevent 20 the District Clerk from denying the lateral transfer? 21 MS. UECKER: Well, and that's a possibility. 22 MR. HENNEKE: It's -- in this situation, it's not a 23 lateral transfer. The individuals that work for the District 24 Attorneys, the individuals that work for the District Judges 25 are not county employees, even though the County administers 9-7-10 54 1 administrative, human resources services for them, for which 2 the County is duly reimbursed at the rate that the funds are 3 paid out. And so that's why this situation is not, because 4 the individuals that work for those separate state officials 5 are not county officials. Texas is an at-will state. Any 6 individual that works for the county can quit, can resign and 7 can go work somewhere else. And if we need to have a further 8 discussion about the different categories of employees, then 9 we can move on to -- to 1.9, and we probably need to have 10 that discussion behind closed doors. 11 COMMISSIONER LETZ: We can't -- maybe you can't 12 answer this without going into the next one, but if they're 13 not county employees, then why don't we -- are we obligated 14 by law to provide benefits for them? 15 MR. HENNEKE: We can go into 1.9, Commissioner. 16 COMMISSIONER LETZ: 'Cause that's the question. I 17 mean, they're going to act like -- 18 MR. HENNEKE: It's not really on point with 1.8, 19 'cause all we're talking about is the hiring freeze, and for 20 a more substantive discussion involving pending and possible 21 future litigation, I'd advise that we go into executive 22 session on that. We don't have to, because it's not really 23 what the issue is on 1.8, as far as lifting the hiring freeze 24 or not. So, I'm not saying that we need to, but we can if 25 there's more information that's needed. 9-7-10 55 1 COMMISSIONER LETZ: Well, my answer to Linda on the 2 hiring freeze is, you know, I don't support lifting it today. 3 I think I may a week from now, but today, until we get a few 4 things resolved, including benefits for non-county employees 5 and -- and who works for who resolved, I think the short-term 6 answer is no. 7 JUDGE TINLEY: Any member of the Court have a 8 motion to offer in connection with 1.8? 9 COMMISSIONER OEHLER: Have you had -- has the 10 employee already left and gone to work -- 11 MS. UECKER: In effect September the 15th. 12 COMMISSIONER BALDWIN: We're going to meet on the 13 13th, aren't we? 14 JUDGE TINLEY: Mm-hmm. 15 MS. UECKER: I mean, you know I'm -- I'm one of the 16 smaller offices. I agree with some of you. I don't see how 17 we can cut a whole lot of employees. I don't know that much 18 about any of the other offices. I know y'all want us to suck 19 it up. Is the Court going to suck it up? Are they going to 20 reduce staff? I mean, we're going to be expected to reduce 21 staff and still perform the same service. I mean, this is a 22 key position, and I am losing another one next year, which, 23 you know, probably may not be replaced, but through 24 retirement. 25 COMMISSIONER WILLIAMS: Has this transfer already 9-7-10 56 1 taken place? Or is it too late to deny it? 2 MS. UECKER: For me? 3 MR. HENNEKE: It's not a transfer. 4 MS. UECKER: Well, my staff person is leaving to go 5 to the D.A.'s office. 6 COMMISSIONER WILLIAMS: I understand. 7 MS. UECKER: As I told you last week, we're kind of 8 a training ground for D.A.'s offices. They -- you know, they 9 make more money, do the same work. Just get a title, so it 10 pays more, so of course they're going to leave. And I don't 11 begrudge anybody trying to go where they can make more money, 12 and I would never try to do that. But she's been gracious 13 enough and said, you know, I'll stay, you know, as long as 14 you need me. But she has given me her resignation effective 15 September the 15th. And this is one of the positions that, 16 you know, spends all this time in the courtroom. We have the 17 huge dockets. I have to put another one in there and a third 18 one in the back for acknowledgments, being sworn, getting the 19 court costs together. So, you know, this -- this really is a 20 key position for me. 21 JUDGE TINLEY: Any member of the Court have a 22 motion to offer? Let's move on, then. Gentlemen, we're back 23 with Item Number 1. 24 COMMISSIONER LETZ: What about 9? 25 JUDGE TINLEY: Well, we'll cover that at the tail 9-7-10 57 1 end. 2 COMMISSIONER LETZ: Okay. I'll make a motion, but 3 I suspect it's not going to pass. (Laughter.) 4 COMMISSIONER WILLIAMS: What's your motion? 5 COMMISSIONER LETZ: We'll try. I make a motion 6 that we increase the M & O tax rate by 1.8 cents, and Road 7 and Bridge by .6 cents. 8 COMMISSIONER WILLIAMS: 1.8 plus .6? 9 COMMISSIONER LETZ: And the rest, we're -- we're 10 going to have to re -- when we do the budget, we're going to 11 have to cut -- either reduce pay -- 12 COMMISSIONER OEHLER: That's the last thing -- you 13 did that on the last motion. 14 COMMISSIONER LETZ: Either reduce the pay or cut 15 probably close to 20 people to get there, to balance it out. 16 COMMISSIONER BALDWIN: Could it be possible that 17 that 1.8 be committed -- dedicated to reserves? 18 COMMISSIONER LETZ: I don't know that I can legally 19 do that. I mean -- 20 COMMISSIONER BALDWIN: I don't either. That's what 21 I'm asking. 22 COMMISSIONER LETZ: Philosophically, I would -- I 23 mean, I hope that this is a one-time event, and that we can 24 reduce the taxes next year. But our problem is, with our -- 25 you know, the way our revenue comes in, we've got to protect 9-7-10 58 1 it a little bit. We're going to -- you know, basically the 2 reduction in staff is -- doesn't have an impact until next 3 year. I mean, that's when you really get the impact from it. 4 Hopefully that impact will be enough to allow us to do that 5 increase, but I can't -- my answer would be we have to look 6 at reserves next year. And this is already pretty -- pretty 7 tight. 8 COMMISSIONER WILLIAMS: I'll second it to get 9 discussion going. 10 JUDGE TINLEY: Motion made and seconded that the 11 tax rate be increased by increasing the Kerr County rate by 12 1.8 cents per 100, and Road and Bridge by 6/10 -- lateral 13 roads, actually, by 6/10 of one cent per 100. Question or 14 discussion? Again, record vote. Start at this end this 15 time. 16 COMMISSIONER OEHLER: No. 17 COMMISSIONER LETZ: Yes. 18 COMMISSIONER WILLIAMS: Yes. 19 COMMISSIONER BALDWIN: No. 20 JUDGE TINLEY: Chair votes no. 21 COMMISSIONER OEHLER: He's not going to vote unless 22 you go to three. 23 COMMISSIONER BALDWIN: How about a large dose of 24 Buzzie's? That would help us through this. 25 JUDGE TINLEY: That's particularly helpful, even 9-7-10 59 1 since they're open, right? 2 COMMISSIONER BALDWIN: Yeah. 3 JUDGE TINLEY: Okay. 4 COMMISSIONER BALDWIN: It works a lot better when 5 they're open, I found out. 6 JUDGE TINLEY: Okay. Anything else to be offered 7 in connection with Agenda Item Number 1? 8 COMMISSIONER OEHLER: I believe if we don't set a 9 rate, the rate goes back to what it was last year; is that 10 correct? 11 JUDGE TINLEY: If it's not done by 30 -- adopt a 12 rate, that's correct, by the 30th. Okay. Mr. Henneke, do 13 you think it's necessary that we go into executive session on 14 Item 9? 15 MR. HENNEKE: Gentlemen, it would be for 16 information purposes to further explain the discussion. 17 There's no pending emergency that would require we have to 18 meet, but I put that on there to provide for the opportunity. 19 So, I know there's other things on the agenda. It can wait 20 for another day, or if you'd like to know more about the 21 issues, kind of an update, I'm glad to brief the Court, but 22 it's not anything that I require at this point. I just put 23 it on there in case it was necessary. 24 JUDGE TINLEY: So, it's not something that couldn't 25 be handled, for example, next Monday at our regular meeting. 9-7-10 60 1 MR. HENNEKE: Correct. Or further on down the road 2 at the Court's pleasure. 3 JUDGE TINLEY: Okay. 4 COMMISSIONER LETZ: Judge, what -- since it seems 5 like we're not going to accomplish anything on Item 1 today, 6 what does that do to the schedule? 7 COMMISSIONER WILLIAMS: Screws it up. 8 JUDGE TINLEY: I believe that's a correct 9 characterization of it. 10 COMMISSIONER OEHLER: If you'll go to three, he'll 11 vote for it. 12 COMMISSIONER LETZ: You make a motion. 13 COMMISSIONER OEHLER: I'm not making the motion. I 14 can't go against my -- what I've already done. 15 COMMISSIONER LETZ: Yeah, you can. 16 COMMISSIONER OEHLER: No, I'm not. 17 JUDGE TINLEY: Okay. 18 COMMISSIONER LETZ: All right, Judge, let me try 19 one more time on Item 1. 20 JUDGE TINLEY: Okay. 21 COMMISSIONER LETZ: Let me look at these numbers 22 again. 23 COMMISSIONER WILLIAMS: Here we go. 24 COMMISSIONER LETZ: I'll make a motion to set the 25 M & O tax rate at 2.8, and the Road and Bridge at .4 -- or 9-7-10 61 1 the lateral road at .4, for a total of 3.2. 2 COMMISSIONER WILLIAMS: 2.8 and .4? 3 JUDGE TINLEY: Close. Do I hear a second? 4 COMMISSIONER BALDWIN: No. 5 JUDGE TINLEY: Motion dies for lack of a second. 6 COMMISSIONER BALDWIN: Want to try again? 7 COMMISSIONER LETZ: No. Y'all make a motion. I've 8 made three; you don't like mine. 9 JUDGE TINLEY: Anything else to be offered in 10 connection with that item, gentlemen? Why don't we be in 11 recess till 1 o'clock? Maybe we'll have some -- 12 COMMISSIONER BALDWIN: Buzzie's. 13 COMMISSIONER WILLIAMS: Have an epiphany or two? 14 JUDGE TINLEY: Yes. Yeah. 15 (Recess taken from 11:30 a.m. to 1:00 p.m.) 16 - - - - - - - - - - 17 JUDGE TINLEY: Okay, let's come back to order, if 18 we might. We were in recess for the lunch period. We're 19 back on our agenda that we began this morning. Other than 20 Item 9, which can be considered at virtually any point in 21 time, we're back to Item Number 1. 22 COMMISSIONER LETZ: Well, Judge -- 23 JUDGE TINLEY: Am I the only one awake up here? 24 Okay. No? 25 COMMISSIONER WILLIAMS: No. No, we're all awake. 9-7-10 62 1 JUDGE TINLEY: Okay. 2 COMMISSIONER LETZ: Looking back at -- since I'm 3 the only one that's making motions today, I'll just, you 4 know, stay on that trend. The first one was a 3-cent 5 increase that failed, and then I went with a 2.4 increase 6 that failed. Then I went to 3.2 that failed. And I'm 7 thinking two things, and just kind of more thoughts; then 8 I'll make probably another motion, is that unless we accept 9 the budget that you proposed, we have to go back and look 10 at -- look at the -- and the tax rate you proposed, Judge, we 11 have to go back and relook at the whole budget again. That's 12 the only way -- if we're doing any tinkering, that's all open 13 again. And that to me is a given, that we're going to have 14 to go back and really look at all -- all of these items and 15 get these that -- make sure that -- you know, where the cuts 16 are. 17 I think I hear some of the Commissioners want it to 18 be more specific. Commissioner Baldwin, I think, said that. 19 "Where specifically are the cuts?" And I agree with him. I 20 think that's one of the problems we've had in prior years. A 21 lot of times we get to this vote, and a few more votes, and 22 we don't look at the budget in detail as a whole court again, 23 and I think we need to -- that's been a mistake. I think we 24 need to look at it to make sure that we all know if this 25 person is in the budget or not in the budget. So, I think 9-7-10 63 1 that we need to do that, and I think it is a -- a given that 2 the only way that I can see to come up with the reserves that 3 we've all said that we need to have -- there's basically 4 maybe four things on the table. 5 One of them is the -- the items that Commissioner 6 Baldwin brought up about the County-sponsored activities. 7 That can get you a little bit of the way there. The other 8 thing is our staffing level, and insurance. We could go to 9 dependent -- cut dependent coverage altogether, or increase 10 the employee, you know, contribution. And those are the only 11 way you can get there. I mean, they're -- or a combination 12 of those four items. And nothing else has a big enough 13 ticket. And I think all we have to remember that all we're 14 doing right now is setting the tax rate that we're going to 15 have to propose. Proposed tax rate. And I would rather err 16 on being a little bit high right now, because we haven't had 17 a whole lot of consensus over the last two months on where 18 we're going to make these specific cuts. 19 JUDGE TINLEY: But before we adopt the budget, 20 Commissioner, we will have to zero in on what that budget's 21 going to be. 22 COMMISSIONER LETZ: Right. 23 JUDGE TINLEY: And following immediately behind it, 24 set the adopted tax rate. 25 COMMISSIONER LETZ: Right. So I would -- you know, 9-7-10 64 1 I don't think -- this isn't the -- you know, the final -- 2 COMMISSIONER OEHLER: Final final. 3 COMMISSIONER LETZ: Final final. I was going to 4 say the final battle, but I don't consider it a battle. 5 COMMISSIONER OEHLER: Not much of a battle. There 6 will be a battle over the budget again. 7 COMMISSIONER LETZ: But I think that we do need to, 8 you know, be able to move on. And I hope that some of those 9 that have not -- have voted no up till now will realize and 10 hopefully come along -- 11 COMMISSIONER BALDWIN: "Some of those." 12 COMMISSIONER LETZ: Those two. 13 COMMISSIONER OEHLER: Used to be just that one. 14 COMMISSIONER LETZ: No, there's two. Those two 15 would consider that, you know, everything's still on the 16 table, in my mind. We can still cut back. But we need to 17 have a starting point, and we have to start moving forward on 18 this. And I'm in favor of -- you know, I don't have a 19 problem with going -- cutting all dependent coverage if we 20 have to. I'll do that. 21 COMMISSIONER WILLIAMS: You don't have a problem 22 with what, Jon? 23 COMMISSIONER LETZ: Of cutting all dependent health 24 care. We'll just cover employees only. I can go along with 25 some sort of a pay cut. I can go along with -- I mean, we're 9-7-10 65 1 at the staffing reduction level of 10 to 14, depending on how 2 the numbers work, and that's about where Commissioner Oehler 3 said that he thought that was a -- a reasonable number. 4 So -- that, or I can probably go a little bit higher. But we 5 do need to start somewhere. And the other thing that needs 6 to really be addressed that has come out today, who are 7 county employees? We really need to look at that. And are 8 we required to provide health insurance for all these other 9 state employees that we don't -- I know this is -- if we -- 10 you know, I think that needs to be looked at, what the 11 consequences of that might be, because we've never really 12 looked at that in the detail that I think we should have. 13 That being said, I'll make a motion that we set the -- or 14 increase the M & O tax rate at 2.6, and the Road and Bridge 15 at .2. 16 COMMISSIONER WILLIAMS: .2? 17 COMMISSIONER LETZ: Yes. From -- or lateral road, 18 for a 2.8 cent increase. 19 COMMISSIONER WILLIAMS: Well, let's take a swing at 20 it. I'll second it. 21 JUDGE TINLEY: Motion made and seconded to increase 22 the tax rate by increasing Kerr County 2.6 cents, and lateral 23 roads by 2/10 of one cent. Question or discussion on the 24 motion? Commissioner, your -- your comments were -- were 25 appropriate. What we're trying to do is set an outer 9-7-10 66 1 boundary for ourselves, but not -- not nail down the tax rate 2 which we necessarily expect to be adopted, but depending upon 3 the budgetary issues that are resolved after the proposed tax 4 rate is set. Any other question or discussion? All in favor 5 of the motion, signify by raising -- 6 COMMISSIONER LETZ: Record vote. 7 JUDGE TINLEY: Excuse me, record vote. I'll start 8 down here. 9 COMMISSIONER BALDWIN: Precinct 1 says no. 10 COMMISSIONER WILLIAMS: Yes. 11 COMMISSIONER LETZ: Yes. 12 COMMISSIONER OEHLER: No. 13 JUDGE TINLEY: And the chair votes no. 14 COMMISSIONER BALDWIN: All you have to do is go to 15 3 cents and .006. Try that. 16 COMMISSIONER WILLIAMS: Is that a motion? 17 COMMISSIONER LETZ: Is that a motion? 18 COMMISSIONER BALDWIN: Absolutely not. I'm just 19 telling you how to get there, how to get us out of here 20 today. 21 JUDGE TINLEY: Have you got things to do, 22 Commissioner? 23 COMMISSIONER BALDWIN: Well, I got to have supper 24 tonight. 25 COMMISSIONER OEHLER: I guess the chair can make a 9-7-10 67 1 motion. 2 COMMISSIONER LETZ: You want to have supper after 3 you just had lunch? 4 JUDGE TINLEY: Gentlemen, I'm pretty much on record 5 of where I am. Do you want to have supper and come back 6 tomorrow, Commissioner? 7 COMMISSIONER BALDWIN: No. I'm not ever eating 8 again. Y'all have hurt my feelings. 9 JUDGE TINLEY: I see. Any further motion to be 10 offered in connection with Item Number 1? Ms. Bolin, you may 11 need to start working on a backup schedule, 'cause it looks 12 like that's where we're going. 13 MS. BOLIN: September the 10th was the drop-dead 14 date to do the proposed, and we aren't going to make the 15 72-hour -- 16 MS. HARGIS: We already checked with the 17 Comptroller's office. This is it. 18 COMMISSIONER BALDWIN: This is it. 19 MS. BOLIN: And just so y'all know, I need at least 20 10 minutes to work this. I have to have it to the paper by 21 3:00 to get it in tomorrow's to meet all the public hearing 22 deadlines. 23 JUDGE TINLEY: Well, speaking of the paper, you 24 know, I tried to throw down the gauntlet here sometime back 25 about they thought it was such a good idea to talk about 9-7-10 68 1 other governmental entities and what they pay and all this 2 good stuff, and I welcome that comparison for Kerr County. 3 And I guess that was a mistake, 'cause if you want it, 4 they're not going to do it. But I notice today that the 5 reader that -- that demoted me, as you indicated earlier 6 today, he also thought that was a good idea. Didn't he, 7 Commissioner? 8 COMMISSIONER BALDWIN: He did, Commissioner Tinley. 9 (Laughter.) He thought -- he said I'd really like to know -- 10 I'd really like to see the numbers for the county. Of 11 course, all he has to do is come up here and ask. 12 JUDGE TINLEY: Yeah. Yeah. 13 COMMISSIONER BALDWIN: But -- 14 JUDGE TINLEY: But then there are other information 15 sources that pay their people to put that information out, 16 aren't there? Supposedly. 17 COMMISSIONER LETZ: Judge, I'll make one last stab 18 at it. 19 JUDGE TINLEY: All right, give it a stab. 20 COMMISSIONER LETZ: I make a motion, M & O tax 21 increase of 2 cents, no increase for lateral roads. 22 JUDGE TINLEY: 02? 23 COMMISSIONER OEHLER: You keep going down, don't 24 you? 25 COMMISSIONER LETZ: I go both ways. You know, I'm 9-7-10 69 1 trying to come up with some way I can get a third vote. 2 COMMISSIONER WILLIAMS: Figure out how to get there 3 somehow. I'll second it, see where it goes. 4 JUDGE TINLEY: All right. We have a motion and a 5 second to increase the tax rate by increasing Kerr County by 6 2 cents, and no increase to lateral roads. Any question or 7 discussion on the motion? Gentlemen, if you want to put 8 yourself in a box, just keep -- keep working on it. All in 9 favor of the motion, signify -- 10 AUDIENCE: Record vote. 11 JUDGE TINLEY: Correction, let's go down here. 12 COMMISSIONER OEHLER: No. 13 COMMISSIONER LETZ: Yes. 14 COMMISSIONER WILLIAMS: Yes. 15 COMMISSIONER BALDWIN: No. 16 JUDGE TINLEY: Chair votes no. 17 COMMISSIONER BALDWIN: Why are you being so 18 hard-headed about everything? You're the one that's holding 19 all this up. 20 JUDGE TINLEY: I'm the one that declared up front, 21 Commissioner, and I'm the one that's willing to take the 22 heat. I took the heat up front. 23 COMMISSIONER BALDWIN: So what you're saying is, 24 you're -- it's 3 cents or none at all? 25 JUDGE TINLEY: Well -- 9-7-10 70 1 COMMISSIONER BALDWIN: Golly, anybody that can't 2 compromise... 3 JUDGE TINLEY: He's certainly going the wrong -- 4 yeah. Going the wrong direction. 5 COMMISSIONER WILLIAMS: About seven attempts at 6 compromise has got us nowhere. 7 JUDGE TINLEY: Is that what it is? 8 COMMISSIONER OEHLER: I guess it will just be the 9 same tax rate we had last year. 10 COMMISSIONER WILLIAMS: And we'll have again next 11 year. 12 COMMISSIONER OEHLER: Mm-hmm. 13 JUDGE TINLEY: And then you will find yourself in a 14 ditch. 15 COMMISSIONER LETZ: I mean, that sounds good, but 16 where -- how are you going to do it? What's going to be cut? 17 COMMISSIONER OEHLER: We'll be forced to do it. 18 COMMISSIONER LETZ: What do you propose to cut? 19 COMMISSIONER OEHLER: We'd have to cut some Road 20 and Bridge. We'd have to cut some -- some at the Sheriff's 21 Department. We'd have to cut some within the courthouse 22 system. Of course, no pay increase of any kind, and maybe a 23 pay cut to get there. 24 COMMISSIONER LETZ: You think we can get close to 25 40 -- 35 to 40? 9-7-10 71 1 COMMISSIONER OEHLER: I don't see how you come up 2 with 35. 3 COMMISSIONER LETZ: Well, if 250 -- or 500,000 -- 4 well, 250,000; you can't do them all day one. You get it to 5 15. You're trying to triple that, $750,000, what we're 6 trying to find for this year. That's 45 employees. 7 COMMISSIONER OEHLER: Let me throw something out 8 there that I don't think we've talked about, and it's been 9 occurring to me for a while and I haven't said anything. How 10 was it just a few months ago that our Auditor said we were in 11 great shape, and that was our outside auditor included, and 12 we -- we borrowed some money for capital purchases and got 13 one heck of a great interest rate, and now all of a sudden, 14 at the -- right at budget time, we start getting all this 15 horrible news about how broke we are. July the 31st, I 16 looked at the audit -- you know, that was the end of July. 17 That left us August and September to operate. At this 18 particular time, all the money that -- the money that I saw 19 that was on deposit in various funds was over $6 million. 20 Where'd that -- where -- if we're so broke, tell me where the 21 money is. Tell me where the money went. 22 MS. HARGIS: Okay. About -- 23 COMMISSIONER OEHLER: How does it get spent without 24 our authorization? 25 MS. HARGIS: About $3 million of that is the 9-7-10 72 1 capital projects. 2 COMMISSIONER OEHLER: No, ma'am. No, ma'am. 3 MS. HARGIS: There has -- 4 COMMISSIONER OEHLER: It is not. No, ma'am. 5 That's a separate -- that's a separate balance in the capital 6 moneys. 7 MS. HARGIS: There has never been $6 million in the 8 operating account. 9 COMMISSIONER OEHLER: Let me go get my little book 10 that you prepared for us. 11 MS. HARGIS: I didn't prepare a book. Mindy did. 12 MS. HYDE: I got Jody calling Mindy. 13 MS. HARGIS: So -- Mindy's numbers, not mine. 14 That's Mindy's book. That's not mine. 15 COMMISSIONER OEHLER: I don't care whose it is. 16 MS. HARGIS: It's Mindy's. 17 COMMISSIONER OEHLER: There it is right there. 18 That's the capital money. That's the money that was in the 19 bank. 20 MS. HARGIS: That's all the money that's in the 21 bank. 22 COMMISSIONER OEHLER: I know, and that 2 million 23 you're talking about that you're saying is included in that 24 is not -- 25 MS. HARGIS: Yes, it is. Yes, it is. 9-7-10 73 1 COMMISSIONER OEHLER: It is not. 2 MS. HARGIS: Yes, it is. The capital money is 3 included in this. This is all the money we have in the bank. 4 COMMISSIONER OEHLER: I guess I'm going to have to 5 get the grammar out and get the reporter out to show you. 6 Here's the capital money right there. Correct? 2010. 7 Doesn't that say capital money? 8 MS. HARGIS: That's '10. This is capital money. 9 This is capital money, all this section. 10 COMMISSIONER OEHLER: The TexPool is all capital 11 money? 12 MS. HARGIS: There is no TexPool. 13 COMMISSIONER OEHLER: What's this right here? 14 MS. HARGIS: These are C.D.'s that she had at that 15 point. 16 COMMISSIONER OEHLER: Mm-hmm. 17 MS. HARGIS: But that has to cover -- 18 COMMISSIONER OEHLER: That's less than two months. 19 MS. HARGIS: -- the debt service payment. 20 COMMISSIONER OEHLER: That's more than a month ago. 21 MS. HARGIS: The debt service payment hasn't come 22 out of this. 23 COMMISSIONER OEHLER: That was one month ago. 24 MS. HARGIS: The debt service payment's coming out 25 in August. 9-7-10 74 1 COMMISSIONER OEHLER: Okay. That's supposed to be 2 in a separate tax. 3 MS. HARGIS: It is in a separate fund, but it's 4 pooled cash, and all the cash is shown in one place. That 5 makes it confusing when you look at cash. 6 COMMISSIONER OEHLER: What I want to know is how 7 come that we get -- 8 MS. HARGIS: I don't handle the cash. 9 COMMISSIONER OEHLER: -- this brought up to us at 10 the very last moment, saying how broke we are, and -- and all 11 this hoopla about raising taxes all of a sudden? 12 MS. HARGIS: When the auditor was here and he 13 presented the audit, he told you you had lost a half a 14 million dollars. 15 COMMISSIONER OEHLER: He said 400,000. 16 MS. HARGIS: He said a half a million dollars. 17 COMMISSIONER OEHLER: It's amazing how figures 18 change from meeting to meeting. 19 MS. HARGIS: Bruce, he said a half a million 20 dollars. 21 COMMISSIONER OEHLER: He did not. 22 MS. HARGIS: Okay -- 23 COMMISSIONER OEHLER: I can show you the audit. It 24 was 420 or 430, is what I saw. Maybe I'm blind. 25 MS. HARGIS: Mindy, they're saying that all the 9-7-10 75 1 money we had in the bank on July 31 is all operating money. 2 COMMISSIONER OEHLER: Mindy, what do we have in the 3 bank today? 4 MS. WILLIAMS: Today, for operating? 5 COMMISSIONER OEHLER: Today. Not counting any 6 capital money. No loan money at all, just strictly M & O 7 money. 8 COMMISSIONER WILLIAMS: M & O money. 9 COMMISSIONER OEHLER: Yeah. 10 MS. WILLIAMS: C.D.'s, we've got two point -- 2.7 11 million in C.D.'s, 50,000 in our operating -- our checking 12 account. I think it's less than 500,000 in the TexPool 13 Treasurer's account. And then I've got two small -- two 14 small C.D.'s; they're about 246,000. 15 COMMISSIONER OEHLER: Mm-hmm. 16 MS. WILLIAMS: And two money markets, which are 17 right at -- one is 245 and one is 248. 18 COMMISSIONER OEHLER: Those are still -- those are 19 listed right here. 20 MS. WILLIAMS: Mm-hmm. 21 COMMISSIONER OEHLER: So we have 247 in one, 249 in 22 another, 246 in another, 248 in one, 245 in another. And you 23 say that the Security State Bank -- 24 MS. WILLIAMS: C.D.'s right now, we've got a 1.2 25 that matures today. We have another 500,000 that matures 9-7-10 76 1 next week, and another million that matures next week. And 2 that's it. 3 COMMISSIONER OEHLER: Okay. I just think we need 4 to know about things like this a little bit ahead of time 5 before we get to budget time so that we can start making cuts 6 before we get down to this point. 7 MS. HARGIS: Well, we started the budget process in 8 June. 9 COMMISSIONER OEHLER: I know that. 10 MS. HARGIS: And my -- that was the reason I 11 started it in June. I couldn't get it started any sooner 12 than that. And -- 13 COMMISSIONER OEHLER: But there were no red flags 14 that went up before June, not that I remember. 15 MS. HARGIS: Mindy and I both came to y'all in 16 April and told you that we were concerned with the cash and 17 the revenue. 18 COMMISSIONER OEHLER: Okay. Once again, I must be 19 deaf, dumb, and blind. I'm sure I'd get some people to agree 20 with me on that. 21 MS. WILLIAMS: We're at the point of time in our 22 budget that -- for the past two years, I've come and said I'm 23 -- you know, I'm concerned because our revenues are dropping 24 down. We're getting close to the end of our budget year. 25 This year is a whole lot worse, we know, because our 9-7-10 77 1 revenues -- our uncontrollable revenues are way down. 2 COMMISSIONER OEHLER: Mm-hmm. 3 MS. WILLIAMS: And as we know, interest is 4 nonexistent. We're getting a little bit, but not near what 5 it should be. 6 COMMISSIONER OEHLER: I guess my -- 7 MS. WILLIAMS: The problem is, I can't invest it 8 for long-term, because I know I'm going to have to have it to 9 either pay bills or pay payroll. 10 COMMISSIONER OEHLER: We're not making anything on 11 investments much anyway. Very little, almost nothing. 12 MS. WILLIAMS: No. C.D.'s are about the only 13 thing -- 14 COMMISSIONER OEHLER: Just like everybody else that 15 has investments nowadays. 16 MS. WILLIAMS: C.D's are about the only thing I can 17 get halfway decent on right now. 18 MS. HARGIS: The other -- the other one is that we 19 really paid out the claims on our health insurance, which in 20 the past we have not done. And so -- 21 COMMISSIONER OEHLER: That happens about every 22 third year. 23 MS. HARGIS: Well, this has been -- I've been here 24 four years. This is -- and Mindy's been -- this is the fifth 25 year. It's been five or six years since this has happened. 9-7-10 78 1 These are huge claims, 'cause you didn't budget more than a 2 million, 4. When I got here, the insurance budget was a 3 million, 4. 4 COMMISSIONER OEHLER: Let me ask you something 5 else. If a tax rate increase does pass, that's not going to 6 have any effect on revenues until November, December. How do 7 you expect to pay the bills till then? 8 MS. HARGIS: We -- in October -- we have barely 9 enough money to cover October. That's what I've said from 10 the get-go. And Jonathan asked me the same question. I 11 looked it up for him while he was sitting in his office, and 12 we collected $742,000 in the month of November last year. We 13 did collect some in October. If the bills go out the first 14 of October, we get money towards the end of October. 15 COMMISSIONER OEHLER: Okay. 16 MS. WILLIAMS: And just so you're aware, the C.D. 17 that's maturing today, I'm probably going to have to cash in, 18 because we have court on Monday for bills. We have payroll 19 on Wednesday. The other two C.D.'s that mature next week, 20 I'm hoping that I'll be able to roll them for another 30 21 days, which will put us into October. At this point, I have 22 a feeling I'll probably have to cash them in. 23 COMMISSIONER WILLIAMS: How much money do we have 24 in TexPool? 25 MS. WILLIAMS: Right now the Treasurer's account, I 9-7-10 79 1 think, is, like, right at 450,000. And that's the one that I 2 can pull money out of and move into the depository account at 3 Security State Bank. The -- I take it back. I'm thinking of 4 the '08 note; that's 450,000. The Treasurer's account, I 5 think, is -- I want to say 850,000 or 860,000 right now. And 6 that's the account that, usually towards the end of the 7 month, I have to draw some of that money out to cover our 8 last A.P. and our last payroll. 'Cause we get sales tax 9 money, but it's not all that much. So -- and we get moneys 10 in during the month, but it's usually the end of the month 11 that hits us really hard. Because most of our revenues have 12 come in for our fee officer accounts; the County Clerk, the 13 District Clerk, the J.P.'s. That kind of carries us through 14 to the middle of the month, but then we're going that last 15 half of the month, and it's usually pretty slim. 16 MS. HARGIS: And these are, you know, not our high 17 revenue months anyway. These are not traditionally -- if you 18 look back, it's the fall; it's the October, November, 19 December, even in the fee offices where your fees are higher. 20 I don't necessarily know why, but that's the trend that you 21 see. For instance, those months you see about 34,000. This 22 time of the year, you see about 23. So, you're -- you're 23 collecting less money from those. The payroll's about a 24 million, 3. So that's a million, 3, and then payables go 25 anywhere from, what, 650 to 800 a month. 9-7-10 80 1 MS. WILLIAMS: They could be even more than that. 2 COMMISSIONER OEHLER: That's all I got to say for 3 now. 4 COMMISSIONER LETZ: Well -- 5 COMMISSIONER OEHLER: I just wish that we had known 6 about this, you know, six months ago, and we could have 7 started making some cuts then to save ourselves some grief 8 now. 9 COMMISSIONER WILLIAMS: Save what? 10 COMMISSIONER OEHLER: Save some grief that we're 11 having now if we'd have started making some cuts and things 12 back then, which we could have done. But now it's at the 13 eleventh hour. 11:30, looks like to me. 14 COMMISSIONER LETZ: I don't -- I don't disagree 15 with what you're saying, Commissioner, but we're still faced 16 with the point that didn't happen. Whether it's -- and the 17 blame -- it probably should have; I would agree. But I would 18 say that the blame is up here as well as out there. 19 COMMISSIONER OEHLER: Yeah. 20 COMMISSIONER LETZ: I don't think it's -- you can 21 just say it was -- because we were given warnings along the 22 way, and we didn't probably -- I didn't take as much heed to 23 them as I should have, and I don't know that the rest of the 24 Court did either. But we're still at a point -- and we're 25 elected to -- you know, to represent the citizens of the 9-7-10 81 1 county to try to -- and budgeting is probably our most 2 important responsibility. In an effort to get something 3 done, I'll make a motion to approve a tax rate of 3-cent 4 increase M & O. 5 COMMISSIONER WILLIAMS: How much? 6 COMMISSIONER LETZ: Three. And a 6-cent increase 7 on lateral road. 8 JUDGE TINLEY: Six cents or six-tenths? 9 COMMISSIONER LETZ: Six-tenths of a cent, excuse 10 me. 11 JUDGE TINLEY: Okay. 12 COMMISSIONER LETZ: And I have no intent of keeping 13 it at that level, but the only way we can reduce it is to 14 cut. And I'll look to my -- two of my colleagues in 15 particular to present specific proposals of where we're 16 cutting staff, where we're cutting levels, and ask the Judge 17 to call a budget workshop as soon as possible. 18 JUDGE TINLEY: We have a motion. Do I hear a 19 second? 20 COMMISSIONER WILLIAMS: Three cents? 21 COMMISSIONER LETZ: Three, and .6. His proposal. 22 JUDGE TINLEY: Three and 6/10 of a cent. 23 COMMISSIONER LETZ: The Judge's -- 24 JUDGE TINLEY: What my budget calls for, the budget 25 that I filed. 9-7-10 82 1 COMMISSIONER WILLIAMS: We're all over the lot like 2 you know what. 3 JUDGE TINLEY: Mm-hmm. I have a motion. Do I hear 4 a second? 5 COMMISSIONER WILLIAMS: I won't support three, but 6 I'll support two. 7 JUDGE TINLEY: That motion dies for lack of a 8 second. 9 COMMISSIONER BALDWIN: You could have seconded it. 10 It's your number. 11 COMMISSIONER LETZ: I put up every combination I 12 can think of. 13 COMMISSIONER BALDWIN: Well, once -- I'll help you 14 talk these guys into going with you here. Once you get that 15 done, then let's immediately get into this budget issue and 16 start talking about reduction of employees. And, you know, I 17 can come up with a few and you can come up with a few, and et 18 cetera and so forth. We go through the County-sponsored 19 list, just go all the way through the -- through the budget 20 and look at those things that can be cut, and deal with them 21 one-on-one. I agree that we need to do something pretty 22 quick. If not, I mean, it's going to be really getting bad. 23 Seems like it's getting worse and worse every time I come in 24 here. But -- but I think that's the -- that's the direction 25 we should go, is get this thing done today. Obviously, 9-7-10 83 1 there's some kind of deadline, or we're all going to drop 2 dead or turn into toads or something if we don't do it today. 3 COMMISSIONER WILLIAMS: Burn at the stake. 4 COMMISSIONER BALDWIN: Burn at the stake. And so 5 we got to do something today. So, you need to vote with 6 these guys, and -- and then let's get to roll our sleeves up 7 and get the thing reduced back to where it's supposed to be. 8 Number one, I don't buy into the Obama care crap. That's not 9 going to go anywhere. I mean, that's pie in the sky junk. I 10 don't necessarily -- I mean, I see the numbers. The numbers 11 say that we've got problems, but I don't -- I don't think 12 that they're to the extent that we're being told they are. 13 But I'll be happy to help you scrub it. Are you going to 14 vote with them or not? 15 COMMISSIONER WILLIAMS: What was the motion? 16 COMMISSIONER LETZ: He didn't make it. He's going 17 off my old one. 18 COMMISSIONER BALDWIN: His motion. 19 COMMISSIONER WILLIAMS: It died for lack of a 20 second. 21 COMMISSIONER BALDWIN: I know, but I'm telling you 22 you need to second it and get on so we can get down the road. 23 We have to -- don't you have to be home at supper tonight? 24 COMMISSIONER WILLIAMS: Yeah. 25 COMMISSIONER BALDWIN: Well -- 9-7-10 84 1 COMMISSIONER WILLIAMS: I'm already past time. 2 COMMISSIONER BALDWIN: Let me suggest to you that 3 you vote yes, and let's get going. 4 COMMISSIONER WILLIAMS: Okay, put a motion out 5 there one more time. 6 COMMISSIONER LETZ: The same one? I make a motion 7 we set the tax -- M & O rate at 3-cent increase, and lateral 8 roads at a .6 increase. 9 COMMISSIONER WILLIAMS: Second. Now -- 10 JUDGE TINLEY: We have a motion and a second for 11 increase to Kerr County tax rate of 3 cents, the lateral 12 roads of 6/10 of one cent -- 6/10 of a cent. Question or 13 discussion on that motion? 14 COMMISSIONER BALDWIN: No. 15 COMMISSIONER WILLIAMS: Yes. 16 COMMISSIONER LETZ: Yes. 17 COMMISSIONER OEHLER: No. 18 JUDGE TINLEY: Chair votes in favor of the motion. 19 Motion carries. 20 COMMISSIONER LETZ: Stubborn people up here. 21 JUDGE TINLEY: Mm-hmm. 22 COMMISSIONER BALDWIN: I know. They act like 23 somebody from Comfort, don't they? 24 COMMISSIONER LETZ: I thought you said I was a 25 stubborn German. 9-7-10 85 1 COMMISSIONER BALDWIN: I'm pretty sure you are. 2 JUDGE TINLEY: Now, with regard to the public 3 hearings on the tax rate, the Tax Assessor has requested that 4 public hearings be set on September the 15th, 2010, at 10 5 a.m., and September the 20th, 2010, at 10 a.m. 6 COMMISSIONER WILLIAMS: That requires a motion? 7 JUDGE TINLEY: Sure does. 8 COMMISSIONER WILLIAMS: So moved. 9 COMMISSIONER LETZ: Second. 10 JUDGE TINLEY: Motion made and seconded to have 11 public hearings on the tax rate, or the proposed tax rate for 12 September the 15th 2010, at 10 a.m., and September the 20th, 13 2010, at 10 a.m., both of those to occur here in the 14 Commissioners Courtroom at the Kerr County Courthouse. 15 MS. BOLIN: It has been suggested that maybe we 16 have one of our public hearings in the evening to allow the 17 working people to come in. 18 COMMISSIONER BALDWIN: No. 19 JUDGE TINLEY: You know, we tried that before, 20 and -- 21 COMMISSIONER OEHLER: Nobody comes. 22 MS. BOLIN: Nobody comes. 23 JUDGE TINLEY: Yeah. 24 MS. BOLIN: Right. 25 COMMISSIONER LETZ: We even tried holding 9-7-10 86 1 Commissioners Court in the evening. 2 MS. BOLIN: In the evening. 3 JUDGE TINLEY: Mm-hmm. 4 COMMISSIONER LETZ: All that did was cost the 5 taxpayers more money, because we had to have all our staff 6 pay overtime. 7 COMMISSIONER OEHLER: Had to pay overtime. 8 COMMISSIONER WILLIAMS: I'd like to request from 9 either the Auditor or whomever is the keeper of the proposed 10 budget to provide us all with a copy of the budget as filed. 11 MS. PIEPER: I will do that, sir. 12 JUDGE TINLEY: Question or discussion on the 13 motion? All in favor of the motion, signify by raising your 14 right hand. 15 (The motion carried by unanimous vote.) 16 JUDGE TINLEY: All opposed, same sign. 17 (No response.) 18 JUDGE TINLEY: That motion does carry. 19 MS. BOLIN: Thank you. 20 JUDGE TINLEY: Do you need anything else, -- 21 MS. BOLIN: That will do it. 22 JUDGE TINLEY: -- Ms. Bolin? 23 MS. BOLIN: I'll work it up and get it to the 24 paper. Thank you. 25 JUDGE TINLEY: You got an hour and 20 minutes. 9-7-10 87 1 COMMISSIONER LETZ: Judge, before we depart, can we 2 pick some workshop times? 3 JUDGE TINLEY: Sure. 4 COMMISSIONER WILLIAMS: Do what, Jon? 5 COMMISSIONER LETZ: Workshop. Seems to me we have 6 a lot of work ahead of us on our -- the budget. 7 COMMISSIONER OEHLER: I totally agree. Some of 8 those aren't going to be popular. 9 JUDGE TINLEY: The earliest we could hold one would 10 be Friday afternoon at 2 o'clock at this point. 11 COMMISSIONER WILLIAMS: 2 o'clock? 12 JUDGE TINLEY: That would be the earliest. 13 MS. HARGIS: I have a class on Friday. 14 JUDGE TINLEY: Hmm? 15 MS. HARGIS: I have a class on Friday. 16 COMMISSIONER BALDWIN: Friday, 2 o'clock's fine. 17 JUDGE TINLEY: Huh? 18 COMMISSIONER BALDWIN: Friday at 2 o'clock's fine. 19 COMMISSIONER OEHLER: Yeah, that sounds good to me. 20 MS. HARGIS: Go right ahead. 21 COMMISSIONER OEHLER: Might get something done. 22 COMMISSIONER WILLIAMS: Why don't we meet at 4:30? 23 COMMISSIONER BALDWIN: I'm kidding. 24 JUDGE TINLEY: Next Monday's fairly well packed. 25 How about next Tuesday at -- either beginning at 10 o'clock, 9-7-10 88 1 or early afternoon? I've got mental health at 9:00 in the 2 morning, but I can be ready to go at 10:00. 3 COMMISSIONER BALDWIN: 10 o'clock. 4 COMMISSIONER OEHLER: October when? 5 JUDGE TINLEY: September 14th. 6 COMMISSIONER OEHLER: I mean September. 7 COMMISSIONER LETZ: Then we can keep recessing that 8 next week. Do we recess workshops for the next day? 9 JUDGE TINLEY: Sure. 10 COMMISSIONER OEHLER: 10 o'clock? Is that what you 11 said? 12 JUDGE TINLEY: That's it. 13 COMMISSIONER LETZ: That should give everyone 14 plenty of time to come up with specific -- 15 COMMISSIONER BALDWIN: Plenty of time. 16 COMMISSIONER LETZ: -- items. 17 COMMISSIONER OEHLER: Won't be popular. 18 JUDGE TINLEY: Do we want to set -- 19 COMMISSIONER BALDWIN: Another one? 20 JUDGE TINLEY: -- other workshops? 21 COMMISSIONER LETZ: We're having a hearing -- when 22 do we have a hearing, the 20th? How about a workshop on the 23 21st? Or 16th or 17th. 24 COMMISSIONER OEHLER: 16th or 17th, any of that 25 works for me. Seems like the more, the better off we are. 9-7-10 89 1 COMMISSIONER LETZ: I was just thinking, we're 2 having the hearing on the 15th, so we'll do it the next day. 3 JUDGE TINLEY: Our Congressman's going to be in 4 town mid-morning. 5 COMMISSIONER BALDWIN: On what day? 6 JUDGE TINLEY: On the 16th. 7 COMMISSIONER LETZ: I'm not privy to that 8 information. 9 JUDGE TINLEY: Do we want to go ahead and set one 10 for the following day on the 15th? Or maybe go till Tuesday 11 of the next week, 21st? 12 COMMISSIONER LETZ: Well, on the 15th, we could get 13 there by recessing the one on the 14th. 14 JUDGE TINLEY: Okay, yeah. 15 COMMISSIONER BALDWIN: Let's set one for the 21st, 16 and if we don't do it, we don't do it. 17 JUDGE TINLEY: Let's go ahead and do it. Set it at 18 10 o'clock again on the 21st. Does that work for everybody? 19 COMMISSIONER BALDWIN: Yes, sir. 20 COMMISSIONER WILLIAMS: Which date, the 21st? 21 JUDGE TINLEY: 21st. 22 COMMISSIONER LETZ: 10 o'clock. 23 JUDGE TINLEY: Yeah. There's you a couple, 24 Commissioner. 25 COMMISSIONER WILLIAMS: 21st is okay. 9-7-10 90 1 JUDGE TINLEY: Does that work for now? 2 COMMISSIONER LETZ: All right. 3 JUDGE TINLEY: Okay. Anything else on this agenda? 4 We'll be adjourned. 5 (Commissioners Court adjourned at 1:40 p.m.) 6 - - - - - - - - - - 7 8 9 STATE OF TEXAS | 10 COUNTY OF KERR | 11 The above and foregoing is a true and complete 12 transcription of my stenotype notes taken in my capacity as 13 official reporter for the Commissioners Court of Kerr County, 14 Texas, at the time and place heretofore set forth. 15 DATED at Kerrville, Texas, this 9th day of September, 16 2010. 17 18 JANNETT PIEPER, Kerr County Clerk 19 BY: _________________________________ Kathy Banik, Deputy County Clerk 20 Certified Shorthand Reporter 21 22 23 24 25 9-7-10