1 2 3 4 5 6 7 KERR COUNTY COMMISSIONERS COURT 8 Special Session 9 Tuesday, June 3, 2014 10 (Reconvened from June 2, 2014) 11 9:00 a.m. 12 Commissioners' Courtroom 13 Kerr County Courthouse 14 Kerrville, Texas 15 16 17 18 19 20 21 22 23 PRESENT: TOM POLLARD, Kerr County Judge H. A. "BUSTER" BALDWIN, Commissioner Pct. 1 24 TOM MOSER, Commissioner Pct. 2 JONATHAN LETZ, Commissioner Pct. 3 25 BOB REEVES, Commissioner Pct. 4 2 1 I N D E X June 3, 2014 2 PAGE 3 1.1 Consider/discuss, take appropriate action on outlining Kerr County position on facility 4 repairs at the airport 3 5 --- Adjourned 10 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 1 On Tuesday, June 3, 2014, at 9:00 a.m., the special 2 meeting of the Kerr County Commissioners Court held on 3 June 2, 2014, was reconvened in the Commissioners' Courtroom, 4 Kerr County Courthouse, Kerrville, Texas, and the following 5 proceedings were had in open court: 6 P R O C E E D I N G S 7 JUDGE POLLARD: All right. Yesterday's meeting, 8 June 2nd, 2014, with the same items listed on the agenda, 9 that meeting was held at -- Commissioners Court of Kerr 10 County held that meeting, and then we recessed it and went 11 into budget hearings on that, and then came back into that 12 hearing, and at one time I announced an adjournment. We 13 decided that we were going to continue that one and recess 14 it, however, so we reopened the meeting, and I substituted a 15 motion -- an order to recess instead of adjournment, and we 16 reset it until this morning at 9 a.m. And we're a little bit 17 late now because Commissioner Baldwin's dog ate his homework. 18 And so we're reconvening the meeting -- the Commissioners 19 Court meeting of Kerr County Commissioners Court of 20 yesterday, and the sole purpose of this to reconvene this 21 matter is that two representatives of the Commissioners Court 22 went to Mooney yesterday at the airport and spoke to them, 23 and as I understand it, reached tentatively an agreement that 24 I'll read here in an e-mail that I received. 25 COMMISSIONER LETZ: Then we met with the Mayor and 6-3-14 (Reconvened) 4 1 the City Manager after that. 2 JUDGE POLLARD: Okay. And this one says the 3 "Airport Board will continue facility assessment with 4 consulting engineering firm and will oversee and approve 5 facility improvements to be made by Mooney. The County and 6 the City to each provide $500,000 to be placed in a dedicated 7 fund to be available to Mooney for facility improvements. 8 These funds will be made available through 381 and 380 9 agreements respectively. This amount is capped, and any 10 additional funding will be paid by Mooney. Airport Board 11 will finalize new lease agreement with Mooney to be completed 12 prior to or at the same time as the 380/381 agreements." 13 Now, I think that's in conformance with the motion that was 14 passed yesterday in the other meeting. So, the purpose of 15 this is just to kind of update that and set forth that there 16 was a meeting with Mooney, and then later with the Mayor and 17 representatives of the City. And I see that there are 18 representatives of Mooney here in the audience now. Is that 19 your understanding of the agreement, gentlemen? 20 MR. HODKIN: Yes, it is. 21 COMMISSIONER LETZ: Yeah. 22 JUDGE POLLARD: Okay. And we have Mr. Bowen and -- 23 COMMISSIONER LETZ: Mr. Hodkin, Barry. 24 COMMISSIONER MOSER: Barry Hodkin. 25 JUDGE POLLARD: Barry Hodkin here, and you both 6-3-14 (Reconvened) 5 1 indicated positively; is that correct? 2 MR. HODKIN: Yes. 3 COMMISSIONER LETZ: The only difference between our 4 conversations with them is that we -- we talked about doing 5 it through the lease agreement, and after talking with the 6 City Manager and the Mayor, they brought up that it'd 7 probably be better to use 380/381 agreements. And -- 8 COMMISSIONER MOSER: That was the only difference. 9 COMMISSIONER LETZ: That was the only difference. 10 And we agreed with that; that makes a lot more sense. It 11 makes it a little bit cleaner. 12 JUDGE POLLARD: Okay. 13 MAYOR PRATT: And you might -- on the reserve, 14 "dedicated" reserve. We're going to use dedicated reserves. 15 I don't know whether you need that word in there or not. 16 COMMISSIONER LETZ: It's in there. We said it's 17 reserve fund, dedicated funds, and the idea on that is that 18 the City will keep their funds, County will keep our funds; 19 both funds -- both dedicated funds. And when the Airport 20 Board approves the disbursement to Mooney, the parties 21 will -- 22 COMMISSIONER MOSER: Rather than put it in a trust 23 account or anything like that. 24 MAYOR PRATT: City will prepare a 380 agreement. 25 JUDGE POLLARD: The whole purpose of this move was 6-3-14 (Reconvened) 6 1 to accelerate things from the County's standpoint so that 2 Mooney's plans can move forward as they -- as they planned 3 them. 4 COMMISSIONER LETZ: And it also -- the other thing 5 it does, it accelerates -- it gets Mooney much more involved 6 in the process, and it also gets the Airport Board much more 7 involved in the process through their consulting engineer. 8 That will be very -- we're providing the specifications that 9 Mooney will have to follow, and also be overseeing all of the 10 installations, basically inspecting everything to make sure 11 that no disbursements are made until the Airport Board, or 12 possibly Mr. McKenzie, whoever they want to designate, 13 approves the disbursements. 14 COMMISSIONER MOSER: Yeah. I think it's important 15 to make sure everybody understands that, and I believe there 16 isn't any disagreement there, that the Airport Board will 17 still pursue the consultant. The consultant will act on 18 behalf of the Airport Board in overseeing the work. Number 19 one, establishing the specifications for the work, overseeing 20 the work, authorizing payment because things have been 21 performed in accordance, and then that's when the money flows 22 from the City and the County. The other thing we talked 23 about, too, was the timing of this. Mooney is -- and you 24 guys step in here and say -- don't let me say anything that's 25 incorrect. They're ready to proceed on this as quickly as 6-3-14 (Reconvened) 7 1 possible. I think the Airport Board is -- your agreement 2 with the consulting engineering consulting firm is pending, 3 and I think that's supposed to be perhaps this week. That'll 4 be on record -- I mean, that will be on board. And then with 5 that, we said this looks like that we could have the 6 consultant, we could have the specifications, we could 7 proceed, and we'd have to have the money begin to flow 8 sometime around first or middle of July. So, that's kind of 9 the target. We said we want this thing to move very quickly. 10 So, I think that was an important thing to add to that, that 11 we -- 12 COMMISSIONER LETZ: And the -- and just from the -- 13 just more of a Court thing, on the funding side, there is no 14 intent for the County to declare an emergency. The funds 15 will either come through two ways. We'll either borrow it 16 from ourselves, or more likely, I think the likelihood will 17 be we'll issue -- it will come out, obviously, at a future 18 meeting -- a tax anticipation note, which would be -- we can 19 do in one or two meetings. And then the Auditor's already 20 visited with our financial advisers about that, and that 21 would give us the ability to, if we choose, to spread it over 22 three years, probably. 23 COMMISSIONER MOSER: Good. 24 JUDGE POLLARD: All right. Is there any -- I would 25 invite any further comments about the time schedule or 6-3-14 (Reconvened) 8 1 anything that we've talked about from representatives of 2 Mooney or the Airport Board. Anybody got any further 3 comments about it? 4 COMMISSIONER LETZ: Judge, do you want us to make 5 this into the form of a motion, just to memorialize it? I 6 think we probably should. I'll move the document -- the 7 information that I read, which is on the handout. 8 COMMISSIONER MOSER: I'll second. 9 JUDGE POLLARD: All right. And we'll hand this -- 10 this is the document he's talking about. We'll hand it to 11 the reporter so it will be an exhibit. That's the motion 12 carrying forward. 13 COMMISSIONER BALDWIN: Oh, the reporter. You're 14 the attorney; she's the reporter. 15 MS. STEBBINS: I was going to hand it to her. 16 JUDGE POLLARD: All right. It's been moved and 17 seconded. Is there further discussion? 18 COMMISSIONER LETZ: Only other comment I'll make, 19 and just request that the County Attorney -- the intent is to 20 have the 381 and 380 agreements very, very -- basically the 21 same. 22 MS. STEBBINS: Okay. 23 COMMISSIONER LETZ: So, direct you to work with the 24 City Attorney. 25 MS. STEBBINS: I can do that. 6-3-14 (Reconvened) 9 1 COMMISSIONER MOSER: One other thing, not to deal 2 with the motion, but just for information, a comment. We 3 said we want to have the lease agreement in place at about 4 the same time or before the 380/381 agreements are put -- 5 JUDGE POLLARD: Simultaneously executed. 6 COMMISSIONER MOSER: Right. 7 JUDGE POLLARD: And that's like a closing on real 8 estate. 9 COMMISSIONER MOSER: Right. So -- 10 MS. STEBBINS: When would y'all like to do that? 11 COMMISSIONER LETZ: It'll be later -- it will -- I 12 mean, it will be later this month, hopefully in our second 13 meeting this month. 14 COMMISSIONER MOSER: Right. 15 MAYOR PRATT: Yeah, it would be through the Airport 16 Board attorney. 17 COMMISSIONER LETZ: The lease will be handled by 18 their attorney, and then all the -- the 380 and 381 will be 19 handled by the City and County respectively. 20 MS. STEBBINS: Okay. 21 JUDGE POLLARD: Any other comments or suggestions 22 of any kind? All right. There being no further discussion, 23 those in favor of the motion, signify by raising your right 24 hand. 25 (The motion carried by unanimous vote, 4-0.) 6-3-14 (Reconvened) 10 1 JUDGE POLLARD: It is four-zero; it passes. Thank 2 you. Now we'll adjourn the meeting. 3 COMMISSIONER MOSER: Good. 4 (Commissioners Court adjourned at 9:14 a.m.) 5 - - - - - - - - - - 6 7 8 STATE OF TEXAS | 9 COUNTY OF KERR | 10 The above and foregoing is a true and complete 11 transcription of my stenotype notes taken in my capacity as 12 official reporter for the Commissioners Court of Kerr County, 13 Texas, at the time and place heretofore set forth. 14 DATED at Kerrville, Texas, this 3rd day of June, 2014. 15 16 JANNETT PIEPER, Kerr County Clerk 17 BY: _________________________________ Kathy Banik, Deputy County Clerk 18 Certified Shorthand Reporter 19 20 21 22 23 24 25 6-3-14 (Reconvened)