1 1 2 3 KERR COUNTY COMMISSIONERS' COURT 4 Regular Session 5 Monday, July 8, 2024 6 9:00 a.m. 7 Commissioners' Courtroom 8 Kerr County Courthouse 9 Kerrville, Texas 78028 10 11 12 13 14 15 16 17 18 19 20 21 22 23 PRESENT: ROB KELLY, Kerr County Judge ANNE OVERBY, Commissioner Precinct 1 24 RICH PACES, Commissioner Precinct 2 JONATHAN LETZ, Commissioner Precinct 3 25 DON HARRIS, Commissioner Precinct 4 2 1 I-N-D-E-X 2 NO. PAGE 3 *** Commissioners' Comments. 4 4 1.1 Consider, discuss and take appropriate 8 action to proceed with upgrades to the 5 courthouse fire panel using ARPA(American Rescue Plan Act) funding as approved by 6 Court Order 40587. 7 1.2 Presentation regarding equipment and air 11 conditioning replacement plans for the 8 Maintenance Department. 9 1.3 Consider, discuss and take appropriate 14 action to approve a Professional Services 10 Agreement(PSA) with Wellborn Engineering and Surveying to assist with a grant application 11 to Upper Guadalupe River Authority(UGRA) for a rainwater catchment system for the new 12 animal control facility. 13 1.4 Consider, discuss and take appropriate 21 action to authorize Peter Lewis + Architects 14 to prepare final documents for bid for the new animal control facility, and authorize 15 going out for bid. 16 1.5 Consider, discuss and take appropriate 31 action to approve application from Bluewood 17 Apartments for a tax abatement. 18 1.6 Public hearing for a Revision of Plat for 55 Creekside at Camp Verde Phase 2, Lots 94, 19 95, and 96. 20 1.7 Public hearing for a Revision of Plat for 55 R.S. Walker's Addition, Block 8, Lots 9-16 21 and a portion of Fourth Street right-of-way. 22 1.8 Consider, discuss and take appropriate 56 action regarding a Revision of Plat for R.S. 23 Walker's Addition, Block 8, Lots 9 through 16 and a portion of Fourth Street right-of-way. 24 1.9 Consider, discuss and take appropriate 57 25 action regarding a Revision of Plat for Staacke Ranch, part of Lot 1 and part of Lot 2. 3 1 I-N-D-E-X 2 NO. PAGE 3 2.1 Budget Amendments. 59 4 2.2 Pay Bills. 60 5 2.3 Late Bills. 60 6 2.5 Accept Monthly Reports. 61 7 2.6 Court Orders. 61 8 3.3 Status reports from Liaison Commissioners. 62 9 1.10 Discussion regarding departmental requested 63 budget and tax rate. 10 5.1 Action as may be required on matters 76 11 discussed in Executive Session. 12 *** Adjournment. 77 13 *** Reporter's Certificate. 78 14 * * * * * * 15 16 17 18 19 20 21 22 23 24 25 4 1 JUDGE KELLY: Court will come to order. It 2 is Monday, July the 8th, 2024. It's 9 o'clock in the 3 morning and the Kerr County Commissioners' Court is now 4 in session. If you would, please rise for the prayer and 5 pledge, which will be led by Commissioner Letz. 6 (Prayer and Pledge) 7 JUDGE KELLY: First order of business is to 8 remind everybody -- because everybody carries these 9 things -- make sure it's either turned off or to silent 10 so that it doesn't interrupt the proceedings. 11 And the first thing we do on regular 12 Commissioners' Court meetings is we have the public 13 input. And this is an opportunity for the public to 14 address the Court and let us know what you think we need 15 to hear. We don't have the opportunity to respond, 16 because it's input only. We ask that if you want to 17 talk about something that's on the agenda, you wait 18 until that agenda item is called. And further, we ask 19 you to limit your remarks to no more than three 20 minutes. 21 Is there anybody from the public that would 22 like to address the Court? I know we've got some people 23 speaking later, so we'll take that up at that time. 24 So with that, we will move on to Commissioners' 25 Comments. Precinct 1. 5 1 COMMISSIONER OVERBY: We got almost two 2 inches of rain as well. Still sprinkling this morning a 3 little bit. Hopefully. Precinct 1 is quiet. Only took 4 a couple phone calls on July 4th, but I think everything 5 went smoothly. That's about all for Precinct 1. 6 COMMISSIONER PACES: Well, we weren't nearly 7 as blessed as you were in terms of rainfall. But 8 anyway. The burn ban remains lifted. But please be 9 careful. We've been responding to a number of fires, 10 not necessarily brush fires but we had a vehicle fire 11 that quickly spread into a six acre brush fire. So, you 12 know, it's getting to be that time of year. It's very 13 dry. We've got a lot of dead grass and things that are 14 quickly combusted, so just -- just be very careful. 15 But fortunately as a result of the 4th of July and all 16 those fireworks, we didn't have any fires to respond to, 17 which was our greatest fear. Otherwise, not really 18 anything to report. 19 JUDGE KELLY: Good. Precinct 3. 20 COMMISSIONER LETZ: As usual, Comfort had 21 its 4th of July parade. Great to see Small Town 22 America. You know, they had -- I'm not sure who did the 23 flyover, but there was a flyover and they went by four 24 times in different formations of vintage aircraft. I'm 25 not sure -- I'm not an expert on aircraft but it was 6 1 pretty interesting. But anyway, very nice. The weather 2 was great. So it was good. 3 And another think is, for good or bad, we 4 had a lot of politicians in the County over the 4th of 5 July. We had some U.S. Senate -- I won't go into their 6 names because they were very -- it was low key, but 7 there were some U.S. Senators in town, some Congressmen 8 in town and others. For some reason they like the Hill 9 Country as we do. 10 COMMISSIONER PACES: Can I make a real quick 11 addition? Because you prompted me about the Comfort 12 parade. If you missed that one and you want to go to a 13 parade, Saturday morning in Center Point at 10:00 will 14 be the Center Point Down Home Parade, followed by the 15 Center Point Volunteer Fire Department Annual Barbecue 16 Fundraiser. Best barbecue you'll find, so please come 17 out and support a really good cause. Thank you. 18 COMMISSIONER LETZ: That's all I have. 19 JUDGE KELLY: Okay. Precinct 4. 20 COMMISSIONER HARRIS: All right. And I 21 agree with you, Comfort always does a great job at their 22 parades and stuff. 23 Rain wise, you know, my house got an inch 24 and a half. The courthouse got a half inch. So it's 25 better than nothing. And we'll take it anytime we get 7 1 it. That's all I've got, Judge. 2 JUDGE KELLY: Okay. On a countywide basis, 3 we all talk about rainfall, the depressed comments about 4 we talk about rainfall, but we do. And where I'm out at 5 Precinct 4, I got almost two inches. So part of the 6 County is getting more rain than the other so that -- 7 that is noteworthy. 8 This is also parade season. For those of 9 you that haven't attended the local parades, they're 10 really a lot of fun. Take a fan so you can keep 11 yourself cool. 12 And other than that, Kerr County has an 13 Interlocal Agreement with San Patricio County and it's a 14 reciprocity agreement to take care if there are 15 emergencies or disasters. And this past weekend, late 16 last week and through the weekend, Dub Thomas and I 17 probably exchanged, I don't know, 30 or 40 -- I mean 18 Jody sees them, and along with Heather Stebbins, our 19 County attorney. Because we were monitoring where the 20 hurricane was going to make landfall. 21 And if it had dropped down to Corpus Christi 22 or below, it was going to really affect San Patricio 23 County. As it turns out, it went north of that. And I 24 had scanned and sent to me my -- we were at the lake -- 25 my declaration of disaster. It's all ready to go but we 8 1 didn't need it. So just so that you know, our emergency 2 management team was in place and very attentive. And we 3 were connected remotely to be able to do whatever 4 needed to be done at a moment's notice. 5 So with that, we'll move on to the 6 Consideration Agenda. Item 1.1 consider, discuss and 7 take appropriate action to proceed with upgrades to the 8 courthouse fire panel using ARPA funding as approved by 9 Court Order 40587. Shane. 10 MR. EVANS: Good morning. Yes. Well, as 11 you can see, the winning bid -- the ones that I do have 12 is for $14,000, but if we use the ARPA funds we have to 13 get a minimum of three bids. We also have to consider 14 they have to be HUD, which is historically 15 under-utilized businesses that are better known 16 minority -- so we have to contact those folks as well, 17 you know, to get bids. And we'll have to proceed with 18 that and obligate the funds for that project. 19 JUDGE KELLY: Do you need approval from us 20 to do that? 21 MR. EVANS: Well, it's more of an 22 information thing. Just to make you aware of what's 23 going on and how we're proceeding. 24 JUDGE KELLY: Okay. Well, we approve with 25 you proceeding, I think. 9 1 MR. EVANS: Okay. 2 COMMISSIONER PACES: Are they going to do it 3 continuing with ARPA and make him get two more bids, or 4 are we going to perhaps do a budget amendment then? I 5 mean, we have enough other projects to utilize the ARPA 6 funds, so -- 7 COMMISSIONER LETZ: I mean 14,000, I'd just 8 as soon go ahead and proceed. 9 COMMISSIONER PACES: I think so, too. 10 COMMISSIONER HARRIS: Sounds good. Yeah. 11 COMMISSIONER LETZ: But, you know, I don't 12 want to have to spend more money to use ARPA. That 13 would be -- so if it's going to come in cheaper -- 14 COMMISSIONER OVERBY: And we've got other 15 projects that can pick up the slack of 14, yeah. 16 COMMISSIONER LETZ: Right. 17 JUDGE KELLY: Then I need a motion and a 18 second to do something. 19 COMMISSIONER PACES: I assume we still have 20 some funds available in contingency? 21 MS. PUTNAM: But may I speak to something? 22 COMMISSIONER OVERBY: Yes, you may. 23 JUDGE KELLY: And Noel, go ahead and 24 identify yourself and what your position is here in the 25 County so that the public will know. 10 1 MS. PUTNAM: Okay. Noel Putnam, Grant 2 Coordinator. I just wanted to say on this particular 3 project for the 14,000, it is a very simple project 4 because it's considered a microbid. We do not have near 5 as many hoops to jump through in order to do the 6 administrative side for the ARPA requirement. All we 7 need to do is get three bids. 8 I do have a list of companies that we send 9 out to to at least get those three bids. It should be 10 the simplest and easiest one of anything with ARPA if 11 you do choose to go that route and -- I was going to say 12 something but now I can't remember what I was going to 13 say. 14 Oh. Oh, it is considered a really good use 15 of ARPA funding. It's listed on the list that you have, 16 it's already in that list. And all the projects that 17 are on that list originally, those are appropriate and 18 considered good projects for it. So just as a side note 19 with the ARPA funding, it would be simple. Whichever 20 way you decide to go. 21 COMMISSIONER PACES: -- so we can get two 22 bids. 23 JUDGE KELLY: Okay. And when we've heard 24 from our grant coordinator and we've heard from our 25 maintenance director, is there a motion to do anything, 11 1 or are we just taking information at this point? 2 COMMISSIONER LETZ: I think it's just 3 information. But go ahead and proceed with it but don't 4 award the contract until it comes back to Court. 5 JUDGE KELLY: So you get a wink and a nod to 6 go forward and report back. 7 COMMISSIONER PACES: Well, I think we need 8 to get two more bids, right? 9 COMMISSIONER LETZ: Right. Yeah. 10 COMMISSIONER OVERBY: Yeah. 11 COMMISSIONER PACES: Yeah. So see if we can 12 do that and, if not, come back. 13 (Talking over) 14 MS. PUTNAM: It's not obligated until we 15 have a purchase order or a contract. So -- 16 COMMISSIONER LETZ: Come back. We'll come 17 back. 18 JUDGE KELLY: Then y'all coordinate and get 19 back with us. 20 COMMISSIONER OVERBY: Yeah. 21 MS. PUTNAM: All right. 22 JUDGE KELLY: Okay. Very good. 23 We'll move on to Item 1.2, this is a 24 presentation regarding equipment and air-conditioning 25 replacement plans for the Maintenance Department. 12 1 Mr. Shane Evans again, our Director of Maintenance. 2 MR. EVANS: Yes, sir. Do y'all have -- we 3 broke it down into a five-year plan to replace -- to 4 start replacing the AC. But normally it's about 5 $10,000.00 per unit. It may run a little more than 6 that, but it should stay around 10,000 for the unit and 7 labor. 8 So I would like to start -- you know, start 9 with the first -- mainly on the first floor is where I'm 10 having most of my problems with AC. And starting in 11 those areas first. And then other ACs that aren't 12 causing me as much problems but they're just as old as 13 some of the ones that we've already got here. They're 14 20 plus years old. 15 So first year we're looking at 70,000. 16 Second year, right around 72,800 and so forth. It added 17 like five percent for each year because it's not, you 18 know, for four to five years it's -- the price is not 19 going to stay the same for the unit. We did have to 20 increase somewhat on each -- each AC unit replacement. 21 JUDGE KELLY: So this is right at a little 22 less than $350,000 over a five-year plan, right? 23 MR. EVANS: As of now. Yeah. You know, two 24 years from now that may change. You know, if pricing 25 goes up on equipment -- 13 1 JUDGE KELLY: We -- we understand that, 2 yeah. But I see here where you've included a four 3 percent inflation increase for subsequent years? 4 MR. EVANS: Yes. 5 COMMISSIONER OVERBY: And it's not -- 6 JUDGE KELLY: That makes it -- 7 COMMISSIONER PACES: Presumably year one is 8 the next fiscal year, is that correct? 9 MR. EVANS: Right. 10 COMMISSIONER PACES: It's not this year. 11 MR. EVANS: Starting in the 24-25 budget 12 year. 13 COMMISSIONER OVERBY: Yeah. 14 COMMISSIONER PACES: Okay. Well, glad to 15 see you have a plan. 16 COMMISSIONER HARRIS: That's right. 17 Something that's going to take it -- something for our 18 budget. 19 COMMISSIONER PACES: Yeah. And had we 20 already put this in the budget? 21 JUDGE KELLY: Not yet, it's about to be. 22 COMMISSIONER LETZ: The Judge -- 23 MR. EVANS: I'm working on getting this out 24 so we know what we're looking at. 25 COMMISSIONER LETZ: This is what we needed. 14 1 Thank you. 2 COMMISSIONER PACES: Like I say, I'm glad to 3 see it. Obviously, we all need to be aware of it. The 4 best laid plans can go down the tubes real quick. And 5 if a lot of things happen, we may need more funds. But 6 I think it's a -- it's a start. It's a good start. So 7 thank you. 8 JUDGE KELLY: I'll work with the Auditor to 9 put that in my proposed budget. 10 COMMISSIONER HARRIS: Thanks, Shane. 11 JUDGE KELLY: Okay. Moving on next is 1.3 12 consider, discuss and take appropriate action to approve 13 a Professional Services Agreement with Wellborn 14 Engineering and Surveying to assist with a grant 15 application to the Upper Guadalupe River Authority for a 16 rainwater catchment system for the new animal control 17 facility. 18 COMMISSIONER OVERBY: I'll start. This 19 program -- this program is open to all non-profit 20 organizations, schools, public entities that are 21 interested in initiating a rainwater catchment system or 22 expanding a current system in Kerr County. 23 So it's very similar to what we do for -- 24 what UGRA does for homeowners if you buy a rainwater 25 system. Show your receipt, show a picture -- am I 15 1 correct -- that -- it being installed, they will 2 reimburse you up to 50 percent of that. 3 So this is for larger entities. These 4 applicants must use this rainwater catchment system to 5 promote water conservation to the public, conduct water 6 conservation education outreach programs, or otherwise 7 provide water conservation benefits to the general 8 public. 9 And the County is very interested in being 10 that government entity to show that to the public. And 11 how to do that before a building is constructed, and so 12 that is what we're trying to do at the Animal Control 13 center. What we need for this grant is -- even though 14 we have this lovely grant coordinator here, she needs a 15 little bit of assistance. UGRA -- excuse me. I am 16 caught in my throat. Can't speak. I've got some frog. 17 UGRA requires the project to treat at least 60 percent 18 of runoff from impervious surfaces to be considered for 19 this grant program. And that is why we need the 20 assistance of Wellborn Engineering. 21 And I might add that Connor Odom is the 22 gentleman that is helping us from Wellborn. He's a 23 local boy, grew up in Kerrville. Graduated from UTSA as 24 a civil engineer. Parents are Todd and Janee Odom, so 25 he's been a pleasure to work with. Just wanted to give 16 1 him kudos in working with our local surveying company. 2 So I make a motion that we approve this 3 Professional Services Agreement to Wellborn Engineering 4 to help us apply for this grant with UGRA. 5 COMMISSIONER LETZ: I'll second. 6 JUDGE KELLY: We've got a motion and a 7 second. Any discussion? 8 COMMISSIONER LETZ: A few additional 9 comments. One, Wellborn has been involved with Peter 10 Lewis, so I think he's very familiar with the site 11 already. So that's why it would make sense to go with 12 that engineering firm. And the cost of this, as I 13 understand it, will be reimbursable under the grant. 14 We, being, Commissioner Overby, myself, 15 Peter Lewis, have been working with UGRA from day one on 16 the design to make sure that we qualify and that we just 17 need to get the application in. 18 COMMISSIONER OVERBY: Thank you. 19 COMMISSIONER LETZ: Ms. Bushnoe in the 20 audience, do you have any other additional comments? 21 MS. BUSHNOE: Yes. Good morning Judge, 22 Commissioners. Tara Bushnoe with Upper Guadalupe River 23 Authority. I just wanted to be available if you had any 24 questions about the grant program. Our water resources 25 preservation grant program is an incentive funding by 17 1 UGRA and it provides a cost share funding in the form of 2 a rebate for the design and construction of practices 3 that will improve storm water runoff. So they'll 4 decrease the quantity of runoff but also improve the 5 quality of the runoff. 6 So a publicly funded facility implementing 7 sustainable water management and use is really a natural 8 fit with the Gold Star program. And it can be 9 potentially -- the rebate will be more -- can be more 10 than 50 percent for this program. 11 COMMISSIONER PACES: But, Tara, is it fair 12 to say it's typically around 50 percent or -- I mean -- 13 MS. BUSHNOE: This is a new program for UGRA 14 and we have not had an initial project go out. It would 15 be higher than 50 percent, what we're -- what we're 16 considering. 17 COMMISSIONER PACES: Okay. 18 MS. BUSHNOE: In this first round of the 19 program, we did not set a minimum cost share. And so 20 we're asking folks to put some skin in the game, but 21 also to tell us all of their design and construction 22 costs and request what they need in order to do it. 23 COMMISSIONER PACES: And what's your gut 24 feel for the likelihood that we would be awarded a 25 grant? 18 1 MS. BUSHNOE: Well, I'm not on the committee 2 that forwards the project and awards it, so I think I 3 could say that, you know, again, it being a publicly 4 funded building, the rainwater harvesting component, and 5 also the opportunity to add other Texas practices as 6 well, permeable pavers, or vegetative, those are also 7 eligible for the program. 8 So the accommodation of those practices at 9 this facility, the initial sketch that Connor showed us 10 several months ago, would treat greater than 60 percent 11 of the runoff, which would be a really excellent program 12 for us, too. Excellent project for us to fund in the 13 initial outset of this program. 14 COMMISSIONER PACES: Okay. And before you 15 leave, what's the total estimated cost of the rainwater 16 system right now? 17 COMMISSIONER LETZ: We really don't have an 18 estimate yet. I mean, we've installed or are -- will 19 install -- it's in the plans to install all of the 20 gutters, all of the piping to the tanks. So what would 21 be remaining would be the hookup of the tanks and the 22 tanks themselves, and we haven't -- 23 COMMISSIONER PACES: But I mean originally I 24 think Peter Lewis had it in his -- 25 COMMISSIONER LETZ: There was a $200,000 19 1 number in there, but a lot of that's already been -- not 2 a lot, but a portion of that has already been 3 incorporated into the building design. To get all of 4 the piping to get there, you have to -- that has to be 5 in place before you build -- before you build. 6 MS. BUSHNOE: As a grant -- oh, sorry. 7 COMMISSIONER LETZ: Go ahead. 8 MS. BUSHNOE: The grant would consider 9 eligible components of the system, the gutters, and 10 anything that conveys water into the tank as well as the 11 pump. Anything that distributes the water either 12 through an irrigation system or just getting it to its 13 end point at least would not be rebated. But any of 14 that infrastructure to get water into the tank and 15 then -- and then the pump itself as well. 16 And we are considering rebates up to 17 $150,000. 18 COMMISSIONER PACES: Okay. And while I have 19 you here, Tara, I was a little confused based on a 20 comment made by Commissioner Overby. But for a 21 residential rainwater harvesting system, did I hear you 22 say up to 50 percent? 23 COMMISSIONER OVERBY: Uh-huh. 24 MS. BUSHNOE: It's 50 percent of -- 25 COMMISSIONER PACES: But there's a maximum 20 1 on that, isn't there? 2 MS. BUSHNOE: Yes. $500.00. 3 COMMISSIONER OVERBY: Yes. 4 COMMISSIONER PACES: $500.00. That's -- 5 okay. 6 MS. BUSHNOE: Which if you're putting in a 7 remark, that's -- 8 COMMISSIONER PACES: Yeah. 9 MS. BUSHNOE: -- assuming you're a Kerr 10 County resident, save your receipts and bring them to 11 us. And that's -- 12 COMMISSIONER OVERBY: Yeah. 13 COMMISSIONER PACES: That's fine. I just 14 want to clarify. Because some of these systems are a 15 lot more than 500 -- or even a thousand dollars. 16 COMMISSIONER LETZ: And I'm not -- I'm -- 17 you're probably more familiar right now with the cost of 18 a tank than I am but -- 19 COMMISSIONER PACES: Well, it all depends on 20 the size of things. 21 COMMISSIONER HARRIS: Yep. 22 COMMISSIONER LETZ: Right. 23 COMMISSIONER PACES: I can tell you what a 24 3500 gallon tank costs. All right. Thank you. 25 COMMISSIONER LETZ: Okay. 21 1 JUDGE KELLY: And Miss Bushnoe, I really 2 want you to know that we value our partnership with UGRA 3 and look forward to working together in the future. 4 MS. BUSHNOE: Thank you. It's my pleasure. 5 JUDGE KELLY: Sir? 6 MR. MOOSE: And I believe the County 7 Attorney's Office has circulated the contract. We're 8 just waiting on the scope of award. 9 JUDGE KELLY: Okay. 10 MR. MOOSE: But it can still be approved 11 pending that scope report. 12 JUDGE KELLY: Okay. 13 COMMISSIONER OVERBY: Actually, I think the 14 scope came in on Friday. Yeah. Yeah. We've got it. 15 It's attached. 16 JUDGE KELLY: So we've got a motion and a 17 second. Is there any other discussion? Those in favor 18 say aye. Opposed? Motion carries. 19 Moving on to Item 1.4 consider, discuss and 20 take appropriate action to authorize Peter Lewis 21 Architects to prepare final documents for bid for the 22 new animal control facility and authorize going out for 23 bid. Commissioner Letz. 24 COMMISSIONER LETZ: I put this on the agenda 25 just to kind of keep moving forward. Peter cannot be 22 1 here this morning. And I handed out a sheet that 2 everyone should have, just to be real clear, to the 3 items that were going to be included as bid alternates. 4 There are six items that are in the 5 drawings. Rather than redo the drawings, Peter thinks 6 it's far more efficient to list these as alternates to 7 take out. Usually you have alternates to take in, but 8 these will be to take out to get savings down. And 9 those alternates are: Removing the clear story at the 10 kennels, removing the exterior euthanasia room, which is 11 652 square feet, remove the front canopy and the lobby 12 clear story, remove the emergency generator, remove the 13 perimeter fencing around the building, and have -- the 14 sealcoat paving would be done by Kerr County and not by 15 the contractor. 16 Those items are -- would not -- or be 17 included in the package as alternates. There's been a 18 lot of discussion about the kennels. The kennels in 19 the -- originally proposed for $40,000 for chain link 20 type kennels, those are included. Kennels are in there. 21 Not what we hoped to have in the building and not what 22 anyone has recommended we have in the building, but 23 that's -- there are kennels. I just want to make that 24 clear. But I just think it's time we need to get Peter 25 Lewis -- we'll prepare all the bid documents, move 23 1 forward with that and then it comes back to us for a 2 final when it's all done. But he really needed 3 clarification on what the bid alternates were. 4 And with that, I'll make a motion to 5 authorize Peter Lewis to proceed with the bid documents, 6 and also to -- once they're -- well, it'll come back to 7 Court, I guess, to put them out to the public. But just 8 approve the bid documents. 9 COMMISSIONER OVERBY: I'll second that 10 motion. 11 JUDGE KELLY: We've got a motion and a 12 second to approve the finalizing documents for the 13 Animal Control facility as has been discussed. Is there 14 any other discussion? 15 COMMISSIONER PACES: How did we not capture 16 the $400,000.00 for the kennels in the original bond? I 17 mean they -- okay, they got 40,000. But I mean they 18 worked on that thing for three years. How -- how did 19 this just come up after the fact? 20 COMMISSIONER LETZ: I don't think we really 21 worked on it three years. But I mean the bottom line is 22 they hired a local building contractor to come up with 23 the cost of the building. That's where the bottom 24 number came from. At that point, they just put in basic 25 kennels. Since then, a representative of the County and 24 1 a representative of KPA visited with the Atascosa 2 facility and looked at the kennels and it was highly 3 recommended we upgrade those substantially, for the 4 safety of the animals and the facility better. But -- 5 so that's the reason. 6 A lot of these things, you know, the 7 additional items -- some of the -- you know, were -- 8 like the euthanasia room, those are things that were 9 recommended by Henry at the Atascosa facility. He's 10 their general manager or director. And also approved 11 by, you know, myself, Reagan. KPA looked at some of 12 these things to try to make it the best facility. But 13 these are things that can be added later. They're not 14 part of the building structure. 15 To me, the most important thing is to get 16 the building built and some of the furnishings can be 17 adjusted later. 18 COMMISSIONER HARRIS: I agree with you on 19 that. But, you know, we go -- we jumped from $40,000 20 kennels to $400,000 kennels. There's some stair steps 21 and some others in between that we can look at? 22 COMMISSIONER LETZ: Yeah, sure. And, you 23 know, you can't -- I mean we could have specified a 24 certain kennel in the building in the bid package, but 25 it really doesn't make sense to because then you're 25 1 paying an additional probably 20 percent or -- you know, 2 administratively to put them in. I mean, everything 3 that goes through the bidding package we're paying Peter 4 Lewis and others. And some of that stuff doesn't -- we 5 don't need architects on. I mean, we're building a 6 building that accommodates kennels. 7 COMMISSIONER PACES: And I agree with that 8 last statement -- 9 COMMISSIONER LETZ: Right. 10 COMMISSIONER PACES: -- but based on what 11 you recently heard from our County Attorney, I'm a 12 little confused on how that works. What are we -- if 13 it's over $50,000.00, we have to have an architect 14 and/or engineer involved in -- 15 COMMISSIONER LETZ: Those are building 16 things. The kennels, I don't think are -- those are 17 furnishings. 18 COMMISSIONER OVERBY: Yeah. 19 COMMISSIONER LETZ: I don't think they're 20 structural. 21 COMMISSIONER PACES: Well, fair enough. 22 Just asking. 23 COMMISSIONER LETZ: But either way. I mean, 24 the main thing in my mind is to get the bid out. Tell 25 me what -- a real number from a contractor and see where 26 1 we are. Hopefully, we can -- you know, at that point, 2 before making a decision, do we add back in some of the 3 alternates or do we put that money towards kennels? I 4 mean, it's a decision the Court has to make but we have 5 to get a estimate from an actual contractor before we 6 can do anything. And this is the first step in doing 7 that. 8 JUDGE KELLY: Quite frankly, all the public 9 input that I've received is they are anxious for us to 10 put this out to bid and start work. 11 COMMISSIONER OVERBY: Yeah. 12 JUDGE KELLY: And -- well, it's time to do 13 it. So -- 14 COMMISSIONER LETZ: Did I make a motion? 15 COMMISSIONER OVERBY: You did. 16 JUDGE KELLY: Yes, you did. 17 COMMISSIONER OVERBY: And I seconded it. 18 JUDGE KELLY: We've got a motion and a 19 second. Any other discussion? Those in favor say aye. 20 COMMISSIONER PACES: We've got somebody who 21 wanted to speak. 22 JUDGE KELLY: Oh, I'm sorry. Tom, I'm 23 sorry. I pulled the -- I had it right here. 24 MR. JONES: That's all right. You said I 25 gotcha. I'll be brief. Tom Jones, Precinct 1. My 27 1 concern is, is that -- I think y'all have done a great 2 job on everything in regards to this. My concern is, is 3 this is a voter approved bond. And they approved a 4 specific amount. And at the last meeting -- because 5 I -- you know, I attend all the budget meetings where 6 we're talking about in excess of a million dollars is 7 going out for a CofO to approve and be able to 8 accommodate those needs, and that is not voter approved. 9 That's my concern. 10 You're looking at trying to build what you 11 envision, which is all great and good. And having it to 12 the best we can get. But you're really exceeding 13 tremendously the amount of the bond that was approved by 14 the voters without a voice. And so I don't think that 15 would be acceptable by the Court to do that, in my 16 personal -- you know. I think you have to have the 17 input of the voters. Because that could have even 18 affected the vote for the whole bond to begin with. 19 Because they're not even looking at the interest that's 20 involved with it or anything else. 21 So with interest, you're looking at excess 22 of one million dollars? And now you're going to tack 23 another million dollars on it. And I do think it needs 24 to be very updated, very functional, everything that 25 you've done there, but I think Peter should be building 28 1 according to a budget; not a desire and what we think we 2 need. 3 COMMISSIONER HARRIS: Tom, I alluded to that 4 in the workshop, if you remember. 5 COMMISSIONER LETZ: My main comment to that. 6 The intent is with these alternates is for the bid to 7 come in within the bond amount. 8 COMMISSIONER OVERBY: Yeah. 9 MR. JONES: Well, and I was going to ask you 10 that. I was -- 11 COMMISSIONER LETZ: Yeah. And that's -- it 12 should. 13 MR. JONES: Well -- 14 (Talking over) 15 COMMISSIONER LETZ: Assuming -- I mean based 16 on the estimator, who's a professional estimator, he 17 came in the past couple of months and looked at the 18 actual build -- actual plans, taking out these items it 19 should come in within budget. 20 MR. JONES: Well, that would be perfect if 21 it does. 22 COMMISSIONER LETZ: You never know. 23 MR. JONES: Because the last meeting it was 24 discussed about a CofO -- 25 COMMISSIONER LETZ: Right. 29 1 COMMISSIONER OVERBY: It was a discussion. 2 MR. JONES: -- and including it with some 3 other stuff in a package and that -- that's kind of 4 going around the voters, in my personal view. 5 COMMISSIONER LETZ: Yeah, I think -- I agree 6 with your opinion that if additional funds will -- and 7 additional funds will be needed for the furnishings. 8 Those were never intended to be in the bond. And we can 9 go in with the base kennels. 10 MR. JONES: Right. 11 COMMISSIONER LETZ: But you know -- or we 12 can -- 13 MR. JONES: Well, at the last meeting you 14 made comments that, you know, if we do this it can set 15 us back six months to redesign. And I wasn't talking 16 about redesign unless -- unless you just can't get there 17 from here. 18 COMMISSIONER LETZ: Well, we -- 19 MR. JONES: If you can't get there, you 20 might have that as -- as an option. 21 COMMISSIONER LETZ: The bid came in at 10 22 million, yes, we'd go back to redesign. So that's -- I 23 mean, we don't know -- until you put it out for bid, you 24 don't know the real number. 25 MR. JONES: Correct. 30 1 COMMISSIONER LETZ: And that's what we have 2 to do. 3 MR. JONES: Correct. 4 COMMISSIONER LETZ: We have to get it out 5 for bid. And the estimator that looked at it thinks 6 that getting these alternates, taking them out, will 7 lower the cost within that -- the bond amount. 8 MR. JONES: Okay. 9 COMMISSIONER LETZ: That's what we'll find 10 out, you know, by about the 1st of September -- or end 11 of September. 12 JUDGE KELLY: Any other discussion? 13 COMMISSIONER PACES: Are we looking at any 14 alternative means to fund some of these items? Have we 15 started any discussion about fundraising maybe? Besides 16 the grant obviously. 17 COMMISSIONER LETZ: We have -- I mean, I 18 have visited with KPA about helping with some of this 19 stuff and they -- 20 COMMISSIONER OVERBY: I have a lot of 21 background -- 22 (Talking over) 23 COMMISSIONER LETZ: Yeah. 24 COMMISSIONER OVERBY: Had a lot of 25 discussions about how to fundraise some of those things. 31 1 Yeah. Until we get -- 2 COMMISSIONER LETZ: So the answer is -- 3 COMMISSIONER OVERBY: -- exact numbers -- 4 COMMISSIONER LETZ: -- again, until you -- 5 COMMISSIONER OVERBY: We don't have the 6 numbers. 7 COMMISSIONER LETZ: -- until we get the bids 8 back, we don't -- 9 COMMISSIONER OVERBY: Yeah. 10 COMMISSIONER LETZ: -- know where we are 11 exactly. 12 COMMISSIONER OVERBY: Yeah. 13 COMMISSIONER PACES: All right. 14 COMMISSIONER LETZ: And the longer we wait 15 to go out for bid, the higher the cost goes. 16 COMMISSIONER OVERBY: Yeah. 17 JUDGE KELLY: Any other discussion? Then 18 those in favor say aye. Opposed? Unanimous -- motion 19 carries unanimously. 20 Why don't we take about a five-minute break 21 and we'll start, that way everybody will be fresh when 22 we get back, and we'll go to a timed item at 9:30. 23 (Recess) 24 JUDGE KELLY: Court will come back to order. 25 The next item on the agenda is Item 1.5, which is a 32 1 timed item. And it's a couple minutes late and I 2 apologize for that. Of course, when we're this close to 3 on time it's a miracle. And that is consider, discuss 4 and take appropriate action to approve an application 5 from Bluewood Apartments for a tax abatement. 6 And we've been anxiously waiting to hear 7 about this for some time. So Daniel Wheeler. 8 MR. WHEELER: Yeah. You have two of us. 9 JUDGE KELLY: Identify yourself and who 10 you're with. 11 MR. BYERS: Good morning, Judge and fellow 12 Commissioners. My name is Shea Byers with J Street 13 Companies. We're a Texas based multi-family developer. 14 MR. WHEELER: And I'm Daniel Wheeler, the 15 same, J Street Companies. 16 JUDGE KELLY: Okay. You may proceed. 17 MR. WHEELER: Sure. So good morning, 18 Commissioners. We wanted to come before you this 19 morning as a follow-up to our presentation that we made 20 on the 28th in this Court. And -- wherein we presented 21 an incentive request for our apartment project in 22 Kerrville called the Bluewood, a 273-unit multi-family 23 development, for a tax abatement incentive. 24 And in the last meeting, this Court approved 25 a Resolution pending our application for this incentive. 33 1 And since then, we have submitted our application to the 2 County, along with all required documents and exhibits 3 and are before you today to, I believe, get your 4 consensus for approval. 5 JUDGE KELLY: You're submitting the 6 application, right? 7 MR. WHEELER: Submitting the application. 8 JUDGE KELLY: Okay. Now, the public's going 9 to need a little bit higher level summary of what this 10 request is so that they'll understand what we're to 11 consider. 12 MR. WHEELER: Okay. Do we -- do we, by 13 chance, have the presentation ready? No? Okay. 14 JUDGE KELLY: You do? 15 MR. LEMEILLEUR: The presentation will be 16 able to be seen on YouTube, but it won't be seen on the 17 internal feed. 18 COMMISSIONER OVERBY: Okay. 19 JUDGE KELLY: Okay. 20 MR. LEMEILLEUR: We just had a problem that 21 can't be fixed this morning. 22 COMMISSIONER OVERBY: To them but not to us. 23 COMMISSIONER LETZ: Just give a narrative of 24 where it is, what it is -- 25 COMMISSIONER OVERBY: Why it is. 34 1 MR. BYERS: Yep. Sure. We -- so this 2 project is a 273-unit three-story Class A multi-family 3 project where -- right at Cailloux and Holdsworth Drive, 4 in that new section near I-10 that the City/County have 5 spent some significant infrastructure dollars to really 6 grow that area, along with the ball parks and I believe 7 it's Kroc Recreation Center that's over there. 8 MR. WHEELER: The sports facility that's 9 nearby. 10 MR. BYERS: Yep. So it's really -- in that 11 location -- and the reason we selected that location is 12 it's going to be an activation and catalyst for future 13 development and really utilize the green space, the 14 trails, the park, the recreation center that's been 15 developed there. 16 Specifically, the project -- where we are in 17 the pre-development stages, we've pretty much put the 18 entire -- we've baked the whole cake. And so what we 19 didn't do, we didn't come to you guys, to the 20 Commissioners' Court, a year ago and begin asking for 21 money because we didn't know if we would need any help 22 with an incentive. 23 But where we are is we've raised the money, 24 we've designed the project, and the monies just come 25 back and said this is the gap that you need to close the 35 1 gap, so that we would fund this project and get it on 2 the ground. So that is what they lighted and identified 3 our ask from -- from this -- from this body. So that's 4 where we are. 5 JUDGE KELLY: But I think it's important to 6 refresh the public's mind with regard to the amount of 7 the gap. The cost of the whole project -- just put 8 together the numbers for us and we'll -- they'll 9 understand what the ask really is. 10 MR. WHEELER: Sure. So I mean all told, 11 this is approximately a 55 million dollar project. And 12 we have a two million dollars gap. And of that, we have 13 requested from the County a 70 percent tax abatement, 14 which equates to just north of $800,000 over ten years 15 based on our estimated appraised value of 25 million. 16 Taxable value to this project. 17 So we've asked the County for essentially 18 half of what we need in that 70 percent tax abatement, 19 which again equates to about $800,000, and it's -- yeah, 20 it's roughly $70,000 a year -- $80,000 a year, excuse 21 me, over ten years and -- just north of $800,000, so -- 22 MR. BYERS: So essentially, the total 23 property taxes that this project would generate for the 24 County would be total -- the total project -- 25 MR. WHEELER: Roughly a hundred thousand 36 1 dollars a year to the County. 2 MR. BYERS: Right. So this is new income to 3 the County for which we're asking for 70 percent for ten 4 years. 5 JUDGE KELLY: So -- go ahead. 6 COMMISSIONER LETZ: I was just -- I'm 7 looking at the sheet that y'all provided. So right now 8 that property is on stage zero. What's its current 9 value, taxable value with that piece of property. 10 MR. KRENWELGE: Oh, that 12 and a half acres 11 where the tract is going to be located? That's probably 12 $150,000. Since valuation. I get a -- 13 COMMISSIONER LETZ: So the -- the valuation 14 right now is 150,000 plus/minus for that piece of 15 property and it will go up to -- 16 MR. WHEELER: 25 million. 17 COMMISSIONER LETZ: -- 25 million as the 18 project moves forward. And the current -- it comes up 19 to year one is $102,000 is the estimated ad valorem 20 taxes to the County. And this is only -- those are only 21 to the County. And then in year 10 it's 133,000, so the 22 County would retain basically 31,000 in year one and up 23 to 40,000 in year 10. 24 MR. WHEELER: It's a three percent growth 25 per year. Estimated. Yeah. 37 1 COMMISSIONER LETZ: To me, it's a project 2 that makes sense. I mean, we need -- we need the 3 housing. That's really pro or con abatement. We need 4 this type of development. We don't want it in the 5 County because we don't have the water in the County. 6 The City is much better prepared. 7 JUDGE KELLY: Or waste water. 8 COMMISSIONER LETZ: Or waste water. So, you 9 know, these projects need to be in the City. I think 10 you're asking -- part of the ask is to the County and 11 the equal part is to the City. Certainly benefits the 12 County. And we currently have a piece of property 13 that's bringing in virtually no value and hasn't brought 14 in any value for forever. At least it's been the intent 15 for that property to be developed, I think. And this is 16 a way for the -- you know, the taxpayers to receive 30 17 to 40 thousand a year versus nothing for the next ten 18 years. 19 And the only thing that's in question is, I 20 mean, do we believe you need the money. And that's the 21 true question. And, you know, from presentation I do. 22 If the project doesn't go forward, there's no revenue 23 coming into the County. 24 MR. BYERS: I'd like to say something about 25 that because I appreciate the question. We're not here 38 1 to play chicken. Our -- our loan with our lender, which 2 is -- well, it's HUD, it expires August 24th. And so 3 you'll know by August 24th when you don't hear from us 4 anymore if we don't. That's where we are, is that we 5 are at -- we're at the goal line. And so we -- this 6 isn't an ask for a hope down the road that we'll get 7 there. We're at the goal line. 8 And so it's -- it's either we're going to 9 lock our rate before August 24th or we're not going to 10 build the project. So -- and I -- you know, I'm just -- 11 we're just not here playing poker with you guys. We're 12 not here trying to just get some -- extrapolate some 13 dollars from the taxpayer and move on down the road and 14 build our project. It's really a need. 15 COMMISSIONER LETZ: And one other question, 16 and this is one that the County Attorney raised to me 17 last week. I'm not sure if she raised it to the rest of 18 the Court or not. Our policy will require -- we believe 19 will require this to be designated a reinvestment zone. 20 Your application states that, you know, you're complying 21 with our policy. So are we to take that to mean that if 22 we are to move forward that you want us to establish a 23 reinvestment zone for this property? 24 MR. WHEELER: Yes. Yes. 25 COMMISSIONER LETZ: Okay. 39 1 JUDGE KELLY: Okay. Well, I've been -- I'm 2 going to -- 3 COMMISSIONER HARRIS: Go ahead. I want -- 4 JUDGE KELLY: No, no, no. 5 COMMISSIONER HARRIS: -- to hear from you. 6 JUDGE KELLY: Well, I've been significantly 7 silent. I haven't met with any of the principals 8 personally. I've heard your presentation. I've been in 9 this County for over three decades, and I am very 10 familiar with the land that you have from 30 years ago. 11 And that was back when I was on the school board, and we 12 were looking for locations to build a new high school 13 and a new elementary school. 14 And I see Rosa shaking her head. She 15 remembers all of that. And we were given an opportunity 16 for very favorable terms to invest over there. But we 17 -- Holdsworth Drive had not been built. And we did not 18 select that property, even though we -- we loved it. It 19 was perfect for what we wanted to do. But we couldn't 20 do it if we didn't have a road in place because we knew 21 that the mothers driving the kids to school would kill 22 us. And that's true. You may think I'm exaggerating, 23 I'm not. 24 But we've long wanted to do something with 25 that property. That property has sat fallow, in my 40 1 opinion, for decades. With minimal tax value on it. 2 The taxpayers are getting minimum benefit from that. 3 And this is the time to develop that area. It's time to 4 develop that property. And it's come on a different 5 watch for me now. I sit on Commissioners' Court instead 6 of the school board now. But that is probably the 7 highest and best use for that property. 8 And the second thing that I would add, is 9 that people are not really paying attention to what I 10 consider to be the most serious existential threat to 11 this County. And that is housing. And affordable 12 housing. I'm not suggesting that this is a federally 13 underwritten project to be affordable housing. It's 14 market value housing. But we don't have any housing for 15 people to rent, to live. 16 Our workforce -- there's no place to put up 17 our workforce. Over half of the people that work in 18 this County don't even live in Kerrville. They have to 19 commute because they can't afford -- they can't find a 20 place to live here. Something has to be done. And it 21 has to be done inside the municipal City limits because 22 they have the ability to build high density projects. 23 In the County we really don't. We don't have the water 24 availability. We don't have the wastewater capacity to 25 handle that kind of development. And so this is the 41 1 first, and probably last for awhile, opportunity we're 2 going to have to add any housing to Kerr County. And if 3 this does not make, I doubt seriously that we're going 4 to see another project proposed in the next several 5 years. But we desperately need it. And you're meeting 6 a vital need for this community. 7 And I'm not looking at this in terms of 8 whether or not you need the money. I think this is 9 something that we oughta do to incentivize you to do 10 this project. Because we desperately need the project. 11 We need to add these 273 units, housing units, on the 12 roles. And if we only get the benefit of 30 percent of 13 the tax money for the first ten years, that's a whole 14 lot more than what we're getting right now. Because 15 we're getting next to nothing right now. I'm not -- I'm 16 not putting anything down, but $150,000 for that 17 property? That's pie in the sky. 18 And so for you to take 70 percent of what 19 our -- would be taxes to reimburse for the 20 infrastructure that you've had to put in to make this 21 thing possible, and to provide that type of capacity, 22 housing capacity for Kerr County, I thank you and I 23 welcome you. 24 COMMISSIONER HARRIS: Well, y'all know where 25 I stand on this stuff. Tax abatements. I don't like 42 1 them. To get me on board, I think the ask needs to be 2 lower. If y'all can come in for the total take from the 3 County about half that, I'll be on board with ya. 4 COMMISSIONER PACES: I missed your 5 presentation when you came in a month or so back. Yeah, 6 I was on leave. So my question -- I've got several for 7 ya. Okay, 273 units. As a result of the HUD financing, 8 23 are going to be made available for Section 8 housing. 9 So where are those individuals going to be coming from? 10 MR. WHEELER: There's no Section 8 housing. 11 JUDGE KELLY: Not in this project. 12 COMMISSIONER PACES: It's not Section 8? 13 JUDGE KELLY: No. 14 COMMISSIONER OVERBY: No. 15 COMMISSIONER PACES: Okay. 16 JUDGE KELLY: This is market value. 17 COMMISSIONER OVERBY: It's -- it's -- 18 COMMISSIONER PACES: All of them or -- 19 JUDGE KELLY: Yeah. 20 COMMISSIONER PACES: I thought 23 -- 21 JUDGE KELLY: No. 22 MR. BYERS: A hundred percent of our units 23 are market value. 24 COMMISSIONER PACES: 100 percent. Okay. 25 Well, that's good. 43 1 MR. BYERS: There will be no subsidies or 2 half contracts or Section 8 or -- yeah. 3 JUDGE KELLY: Now, the City is looking at a 4 project that will do that, but this is not it. 5 COMMISSIONER PACES: Okay. 6 COMMISSIONER HARRIS: I think you've gotten 7 confused with them. 8 COMMISSIONER PACES: So -- so who's going to 9 manage this property long term? 10 MR. BYERS: That will be us. That will be 11 J Street. We're very findable. We manage property -- 12 not that you want to maybe hear all this but -- all over 13 DFW, Washington D.C., Maryland, Virginia, St. Louis, 14 Chicago. All over the Midwest. So we probably have 15 5,000 multi-family doors under management and three 16 million square feet of office. So we're a real 17 management company. 18 And we started developing in 2007 and have 19 grown sort of how one hand plays the other. We're 20 really -- we consider ourselves first as operators. So 21 we operate multi-family for a variety of owners all over 22 the country. And we got into developing, we kind of 23 reverse engineered and figured out what they're really 24 good at and took to it and starting developing and 25 managing our own product. 44 1 So we -- we plan to set up a bulk head here 2 in Kerrville. And because of this type of financing, it 3 typically dictates a little longer term hold because 4 it's not like a name brand that you might know. I won't 5 use any developers name and disparage them, but they 6 come in, they build, they lease, and they sell. 7 Instantly. That's not what this financing is really in 8 place for. It's for a little longer term hold. Five to 9 ten years is very typical. So we want to manage that 10 and be a part of the community for a long time. 11 MR. WHEELER: And furthermore, I mean, we're 12 a -- we're a local Texas company. I mean, you know, our 13 principals and, you know, the bulk of our team is local 14 to Texas, the Hill Country, you know, a lot of 15 Dallas/Fort Worth. But, this is -- this is our home. 16 Our home state. Our home base. And that's why we -- we 17 want to be a part of the community. 18 COMMISSIONER PACES: Well, you know, I'm 19 always concerned -- I'm not a fan of tax abatement 20 projects either. And I'm always concerned about the 21 long term financial viability when you're desperate to 22 ask $784,000 from the County in tax abatements, that 23 it -- it just -- it raises great concern in my mind. 24 And we haven't seen the detailed financial report on 25 this project and your projections of revenue versus 45 1 expenses and so forth. So I guess, I'm not convinced. 2 JUDGE KELLY: Thank you. Anymore questions? 3 Okay. 4 You've got to go to the podium. People have 5 to be able to hear you. This is Hunter Moose, our 6 Assistant County Attorney. 7 MR. MOOSE: Just from -- a quick from the 8 County Attorney's perspective, it's our recommendation 9 to the Court that if a motion is made that it use the 10 language accept rather than approve, pending it being 11 reclassified as a reinvestment zone. Just in the event 12 that that does not happen, it would limit future 13 problems with reliance on the words "accepted" rather 14 than "approved" should that motion be made. 15 COMMISSIONER LETZ: Hunter, is there a 16 difference -- I mean I guess, you know, between "accept" 17 or "approved subject to" the establishment of 18 reinvestment zone? 19 MR. MOOSE: I think either of those would 20 work. It's just -- we don't -- it's our opinion that 21 you shouldn't accept it outright without that. 22 COMMISSIONER LETZ: Right. 23 MR. MOOSE: Then you create a problem on 24 reliance on the Court having already accepted it but 25 there being a condition on it. It should be accepted to 46 1 that condition is our opinion. 2 COMMISSIONER LETZ: Okay. 3 JUDGE KELLY: My understanding from visiting 4 with the County Attorney is that this is really a 5 procedural matter. What we're talking about today is 6 they have -- on the 28th we passed a Resolution, and 7 they -- and -- for them to submit an application. They 8 have submitted an application. That triggers a somewhat 9 detailed process of things that we have to do, one of 10 which is to establish a reinvestment zone. And so we 11 would be accepting the application today -- 12 MR. MOOSE: And that is what -- 13 JUDGE KELLY: -- and that -- that triggers 14 the subsequent process. 15 MR. MOOSE: And that is our -- the language 16 we feel needs to be in the motion. 17 JUDGE KELLY: Right. 18 MR. MOOSE: That you're accepting the 19 application rather than "approved" carries with it the 20 connotation that it's been finally approved. And that 21 was just a -- I know it sounds like a quibble, but it 22 can create problems in the future and future lawsuit 23 should that language be used. 24 JUDGE KELLY: Okay. Thank you. 25 Mr. Baroody, you want to address the Court? 47 1 MR. BAROODY: George Baroody, 1616 Glenn 2 Road. And I was under the impression that this area 3 actually was already an opportunity zone, which is, I 4 thought, a version of a reinvestment zone, all north of 5 Main Street in that mid section, I thought, with the 6 City. But anyway... 7 So generally speaking, I'm not against tax 8 abatement. But tax abatements for residential property 9 is a no go. Simply put, you guys asked the question, 10 What does this property bring in revenue right now? And 11 just call it zero. It's also bringing on no burden of 12 cost to service it, because we aren't servicing this 13 property at all. 14 You put 273 dwelling units with the 600 or 15 so people that are going to be in it, you're bringing on 16 cost of service to the area. If the people weren't 17 currently living in the City, that's borne by the City 18 mostly, but -- but still it's coming in. If y'all 19 budget that one percent of your population, give or 20 take, and if you took your one percent of your budget, 21 you're looking at $300,000 a year. So it's not a 22 no-brainer. It's a, oh it's new money; it's not. 23 You're -- you have to calculate, estimate what expense 24 that is going to be taken on by the County or the City 25 as far as providing the service. 48 1 The other thing is with residential 2 property, the difference between that and commercial 3 property is residential property is paying property tax. 4 You pay for those services. It's not free money. You 5 wouldn't be charging them property tax, if there weren't 6 services to be paid for. So this is kind of the same as 7 someone comes into a restaurant to buy food and it's a 8 new customer so you're going to give them a discount 9 lower than your overhead cost. That's what you're doing 10 here. You're going to essentially discount this 11 property in property tax lower than the overhead it 12 costs to service this property. 13 The other thing is, you should never do a 14 tax abatement agreement that doesn't have a dollar cap 15 on it. This is basically an open-ended -- it's for ten 16 years, but -- that's a cap. But if the tax rate goes up 17 or their value -- their property value goes up, they're 18 going to receive a lot more than you intended to give 19 them. You have control over that. It should be in the 20 agreement that if you're going to give anybody, 21 commercial or residential, a tax abatement for ten years 22 or up to whatever dollar amount you guys are happy with. 23 And so, the other thing is it's sort of a 24 discrepancy, I'm not really sure I understand the deal. 25 In this presentation, you're being presented with 49 1 something that's saying the City's going to give a 2 million dollars and you're going to give 800,000 or 3 whatever the heck it is. The City is going to look at 4 this tomorrow and their presentation says you guys are 5 giving them a million. So I'm not really sure who's 6 right or wrong but as the public, we're sitting here 7 looking at this and, you know, again, not knowing what's 8 going on. 9 If this -- if all you're doing is accepting 10 an application then, you know, have at it. Anybody can 11 look at an application. But I would seriously consider 12 turning down any tax abatement for a residential 13 property and getting the details a little bit better. I 14 understand they're on a time crunch, but as a public 15 citizen that's not my problem. 16 And so the point about needing housing. Did 17 any of you look at the presentation about what housing 18 you're getting? It's ranging from 600 square feet up to 19 1400 square feet, give or take. The price range is 20 being quoted from $1300 to $2500. That's not our 21 workforce. That does not -- nobody's -- if I have $2500 22 to pay in rent, I actually can afford buying a house. 23 And so this is not the housing that the City is looking 24 for. It says it's targeting 80 percent to a hundred 25 percent of our area median income. That's false. Those 50 1 price points do not meet that. And some parts of them 2 do, but it's not -- that they say 95 percent of all 3 units part of the under served age, that's not true. 4 And what family can move into a 600 foot -- square foot 5 home? It's not going to happen. So you're talking 6 about individuals. 7 So there's a lot to look at here. In my 8 view, it's not anywhere close to rates at prime time. 9 And I would urge you to turn it down until you get 10 better details. Thanks. 11 COMMISSIONER LETZ: I'll make a comment. 12 And this is kind of from Commissioner Paces. I don't 13 know if you looked at the tape of the last meeting that 14 you did miss. At that meeting, the superintendent of 15 KISD was here. Representative from James Avery was 16 here. A representative from Peterson Hospital was here. 17 And I talked to the Ingram ISD, Bob Templeton as well. 18 All of them support the need for this type of housing. 19 I mean, they're not going to support this 20 project, that's not their job. But they say this type 21 of housing is what is needed for their staff in this 22 County, in this City right now. So I think there's -- I 23 mean, I'm not going to go into, you know, the price 24 points and all that stuff. I mean, I'm just going to 25 say is that I'm going to trust them that they're aware 51 1 of what their staff needs and they felt that they do 2 need it. 3 I do agree with one thing, Mr. Baroody did 4 say. I think that it is wise to put a cap on the 5 abatement amount because things could go up and that 6 cap, you know, to me it should be 800,000. So I think 7 that is a good point and that can certainly be 8 incorporated into the agreement. 9 COMMISSIONER HARRIS: I think it's an 10 excellent point by George about that. 11 COMMISSIONER PACES: Is the number 800,000 12 or is it 784,000? Because that's what I have in my copy 13 of the application. 14 COMMISSIONER HARRIS: I've seen a couple 15 different ones. 16 COMMISSIONER LETZ: I think it's 82320 -- 17 222 was on there. 18 COMMISSIONER PACES: Well, that -- so that's 19 changed then. 20 COMMISSIONER LETZ: Should be there. Here's 21 the -- you can have it. 22 COMMISSIONER PACES: Thank you. 23 COMMISSIONER LETZ: That's the actual 24 breakdown as to the projected County taxes and the 25 abatement -- actual abatement amount based on, you know, 52 1 the assumptions of the tax rate. 2 COMMISSIONER HARRIS: You say a cap of 800 3 and whatever, and I say the cap at five. 4 COMMISSIONER LETZ: I mean, again, I'm going 5 to go back and -- I don't know what room there is, I 6 mean that's a hard thing to say. My understanding is 7 that there's a number to get it to move forward. And, 8 you know, I -- to me, this makes sense to move forward 9 with it. 10 You know, but my view is that, you know, I 11 think that we need to either commit or not commit. I 12 mean whether we're accepting or approving subject to 13 certain requirements in our policy, it doesn't make any 14 difference. But I think that this is -- we need to be 15 going yes, we're going to do it or no, we're not going 16 to do it. I think it's not right to string it on and 17 say, well, we're going to come back and look at it 18 again. We looked at it once already. This is the 19 second time. They did what we requested at that 20 meeting. 21 So I'll make a motion that we approve -- or 22 accept the application as it was submitted and proceed 23 with the requirements of our policy. 24 JUDGE KELLY: To include a -- 25 COMMISSIONER OVERBY: Reinvestment total? 53 1 JUDGE KELLY: -- cash cap -- 2 COMMISSIONER LETZ: Yeah. 3 JUDGE KELLY: -- at the estimate as 4 presented? 5 COMMISSIONER LETZ: Yeah, at 800,000. 6 JUDGE KELLY: What -- whatever -- 7 COMMISSIONER LETZ: That's around, 800,000 8 over a ten-year tax abatement. 9 JUDGE KELLY: But it's 823 something. 10 COMMISSIONER LETZ: That's why I'm going to 11 say 800. They're going to lose 33,000. 12 COMMISSIONER HARRIS: Yep. 13 MR. BYERS: We can do that, yeah. 14 JUDGE KELLY: Okay. 15 COMMISSIONER OVERBY: You need to put the 16 wording in there for the reinvestment zone. 17 JUDGE KELLY: That's part of the approval 18 process. 19 COMMISSIONER LETZ: It's part of the 20 approval process -- 21 COMMISSIONER OVERBY: Okay. Gotcha. 22 COMMISSIONER LETZ: -- to be run to 23 establish the reinvestment. 24 JUDGE KELLY: If we establish the zone then 25 we can do that. But for now because we haven't, we have 54 1 to establish the zone. 2 COMMISSIONER OVERBY: All right. 3 JUDGE KELLY: And they put it in their 4 application and that's what triggered that position in 5 our rules. 6 So we have a motion, which I'll second. To 7 accept the tax abatement application as presented. And 8 with the cash cap. Any other discussion? 9 COMMISSIONER HARRIS: I'll move to amend 10 that motion with a cap of 500,000 as opposed to the 11 800,000. 12 COMMISSIONER PACES: I'll second. 13 JUDGE KELLY: Well, he has to agree to the 14 amendment and I have to agree to the amendment. 15 COMMISSIONER LETZ: I know -- how about we 16 just wait -- I forget what your motion was. 17 COMMISSIONER OVERBY: Can you vote on each 18 of them? 19 COMMISSIONER HARRIS: Could you do it for 20 500? 21 MR. BYERS: I don't believe so, sir. 22 COMMISSIONER HARRIS: Well, I guess we'll 23 find out. 24 COMMISSIONER PACES: And that's what 25 concerns me. You know, if it's fragile on the 55 1 financials it gives me no confidence of the overall 2 longevity and success of this project. 3 JUDGE KELLY: I think that concerns 4 Commissioner Paces. 5 Any other discussion? Then those in favor 6 of accepting the tax abatement application as presented, 7 with the cash cap as discussed, say aye. Opposed? 8 COMMISSIONER PACES: Aye. 9 JUDGE KELLY: A nay? 10 COMMISSIONER HARRIS: Yeah. 11 JUDGE KELLY: A nay. Three to two. It 12 passes. Thank you. 13 MR. BYERS: Thank you very much. 14 JUDGE KELLY: Okay. Charlie, do we need a 15 break or can we go straight into the -- 16 MR. HASTINGS: We can go through, sir. 17 JUDGE KELLY: Very good. Then we'll move on 18 next to Item 1.6, which is the public hearing. I 19 convene a public hearing for the Revision of Plat for 20 Creekside at Camp Verde, Phase 2, Lots 94, 95, and 96. 21 Is there anyone from the public that would 22 like to address the Court? 23 Well, there being none, I'll adjourn the 24 meeting and we'll move on to Item 1.7, which is another 25 public meeting and this public meeting is for a Revision 56 1 of Plat for R.S. Walker's Addition, Block 8, Lots 2 19(sic) through 16 and a portion of Fourth Street 3 right-of-way. 4 Is there anyone from the public that would 5 like to address the Court on R.S. Walker's Addition plat 6 revision. 7 Okay. There being none, I will adjourn that 8 meeting. We'll then move on to Item 1.8, which is to 9 consider, discuss and take appropriate action regarding 10 a Revision of Plat, R.S. Walker's Addition, Block 8, 11 Lots 19(sic) through 16 and a portion of Fourth Street 12 right-of-way. Charlie Hastings. 13 MR. HASTINGS: Thank you, Judge. It's -- I 14 think I heard you say Lots 19 through 16, but it is 15 Lots 9 through 16. 16 JUDGE KELLY: Oh, nine. I -- I stand 17 corrected. 9 through 16. 18 MR. HASTINGS: Yes, sir. 19 This proposal revises parts of Lots 9, 10, 20 11, 12, 13, 14, 15, and 16 -- that's a bunch of little 21 tiny lots in Center Point -- and a portion of Fourth 22 Street right-of-way, totaling 1.16 acres, into two lots 23 instead of all of those tiny lots. Lot 9A will be 0.35 24 acres fronting on Fair Street and Avenue C. Lot 16A 25 will be 0.81 acres fronting on Avenue C. 57 1 County Engineer requests the Court consider, 2 discuss, and take appropriate action regarding a 3 Revision of Plat for R.S. Walker's Addition, Block 8, 4 Lots 9 through 16 and a portion of Fourth Street 5 right-of-way, Volume W, Page 381, Precinct 2. 6 COMMISSIONER PACES: I'll move for approval 7 of the Revision of Plat for R.S. Walker's Addition as 8 presented. 9 COMMISSIONER OVERBY: I'll second that 10 motion. 11 JUDGE KELLY: We've got a motion and a 12 second to approve the requested Revision of Plat for the 13 R.S. Walker's Addition, Block 8, Lots 9 through 16 and a 14 portion of the Fourth Street right-of-way. Any other 15 discussion? 16 COMMISSIONER LETZ: Question. Other than 17 this is a good thing to do, but is this in full 18 compliance with the Model Subdivision Rules? 19 MR. HASTINGS: Yes, sir. Because the model 20 rules aren't invoked because we're not subdividing or 21 combining lots. 22 JUDGE KELLY: Very good. Any other 23 discussion? Those in favor say aye. Opposed? Motion 24 carries. 25 Moving on to Item 1.9 consider, discuss and 58 1 take appropriate action regarding a Revision of Plat for 2 Staacke Ranch, part of Lot 1 and part of Lot 2. Charlie 3 Hastings. 4 MR. HASTINGS: Thank you, Judge. This 5 proposed revision adjusts the lot line between two 6 existing tracts. Part of Lot 1 (currently 31.863 acres) 7 and part of Lot 2 (currently 1.891 acres) will be 8 revised into Lot 1A (23.74 acres) and Lot 1B (10.01 9 acres). Frontage for both lots will remain on Bear 10 Creek Road. 11 The County Engineer requests the Court 12 consider, discuss and take appropriate action regarding 13 the Revision of Plat for Staacke Ranch, part of Lot 1 14 and part of Lot 2, Volume 5, Pages 77-85, Precinct 3. 15 And if you're thinking that doesn't sound 16 like that's right, Bear Creek Road. There are two Bear 17 Creek Roads in Kerr County. And one of them you've 18 gotta go out of the County to get back in to the Kerr 19 County part. 20 COMMISSIONER LETZ: I move for approval. 21 COMMISSIONER PACES: I'll second. 22 JUDGE KELLY: Got a motion and a second to 23 approve the requested Revision of Plat for Staacke Ranch 24 as presented. Any discussion? 25 COMMISSIONER LETZ: Just a quick comment. 59 1 Please pass on my thanks to Bobby for diligent research 2 and looking exactly how these plats were -- how these 3 lots were laid out originally. 4 MR. HASTINGS: He does an excellent job. 5 He's very handy. 6 JUDGE KELLY: Did we vote? Okay. 7 COMMISSIONER LETZ: No, we haven't voted but 8 we need to. 9 COMMISSIONER OVERBY: We can, yeah. 10 JUDGE KELLY: Got a motion and a second. 11 Any other discussion? Those in favor say aye. Opposed? 12 Motion carries. 13 MR. HASTINGS: Thank you. 14 JUDGE KELLY: Okay. We have a timed item at 15 10:30 that I have to pass over until it is 10:30. So we 16 will move on to the Approval Agenda. Let's go to Item 17 2.1, which is budget amendments. 18 MRS. SHELTON: Good morning. We have seven 19 budget amendments in front of you. One of these is for 20 the remodeling of the IT room. That money did come out 21 of contingency of $1200. There's one in there for the 22 Commissioners' proceeds. We moved those up to take care 23 of the vehicles being repaired. 24 And then we have a couple that are related 25 to Senate Bill 22. They changed the rules and they're 60 1 adding now that we can pay for unemployment insurance 2 and workers' comp out of that money. 3 JUDGE KELLY: And that's being done in the 4 198th? 5 MRS. SHELTON: The 198th, the 216th, and the 6 County Attorney's Office. 7 JUDGE KELLY: Okay. Gotcha. Very good. 8 COMMISSIONER HARRIS: Move for approval. 9 COMMISSIONER LETZ: Second. 10 JUDGE KELLY: Got a motion and a second to 11 approve the budget amendments as presented. Any 12 discussion? Those in favor say aye. Opposed? Motion 13 carries. 14 Next item is 2.2. Pay the bills. 15 MRS. SHELTON: Yes. Invoices for today's 16 consideration amount to $2,082,565.10. 17 COMMISSIONER HARRIS: Move for approval. 18 COMMISSIONER OVERBY: I'll second. 19 JUDGE KELLY: Got a motion and a second to 20 approve paying the bills as presented. Any discussion? 21 Those in favor say aye. Opposed? Motion carries. 22 2.3 late bills. 23 MRS. SHELTON: Yes. Today's late bills are 24 $12,299.20. 25 COMMISSIONER HARRIS: Move for approval. 61 1 COMMISSIONER OVERBY: I'll second. 2 JUDGE KELLY: Got a motion and a second to 3 approve the late bills as presented. Any discussion? 4 Those in favor say aye. Opposed? Motion carries. 5 Moving on to Item 2.4, which are Auditor 6 reports. 7 MRS. SHELTON: There are not any. 8 JUDGE KELLY: Thank you. 9 Then 2.5 is monthly reports. 10 COMMISSIONER HARRIS: Yes. For June 2024. 11 Payroll approval. County Treasurer, Tracy Soldan. 12 District Clerk's Office, District Clerk, Dawn Lantz. 13 Auditor's office, County Auditor, Tanya Shelton. 14 Justice of the Peace, Judge Kathy Mitchell, Precinct 3. 15 Constable Tommy Rodriguez, Precinct 1. Kyle Schneider, 16 Precinct 2. Paul Gonzales, Precinct 3. Brad Ryder, 17 Precinct 4. Environmental Health OSSF, Director Ashli 18 Badders. I move for approval. 19 COMMISSIONER PACES: I'll second. 20 JUDGE KELLY: We got a motion and a second 21 to approve the monthly reports as presented. Any 22 discussion? Those in favor say aye. Opposed? Motion 23 carries. 24 2.6 Court Orders. 25 COMMISSIONER LETZ: We have our Court Orders 62 1 from our June 24th meeting, numbers 40692 to 40720. 2 They all look to be in order. I make a motion to 3 approve. 4 COMMISSIONER HARRIS: Second. 5 JUDGE KELLY: We've got a motion to approve 6 the Court Orders as presented. Any discussion? Those 7 in favor say aye. Opposed? Motion carries. 8 With that, we move into Item 3.1 status 9 reports from department heads. Any department heads 10 want to address the Court? 11 Okay. There being none, we'll move to on 12 Item 3.2, which is status reports from elected 13 officials. 14 Okay. There being none, we'll move on to 15 Item 3.3, which is a status report from liaison 16 commissioners. Any reports? 17 COMMISSIONER PACES: I attended a KARFA 18 meeting last week. All was fairly good. People are 19 more and more concerned about the weather and the summer 20 heat. But -- and the only other thing is quite a bit of 21 discussion about the radios and when that will finally 22 be implemented. It's a work in progress. So hopefully 23 our VFDs will get their radios here in another couple 24 months. 25 JUDGE KELLY: Okay. Anyone else have a 63 1 report? 2 Okay. Then we'll take a recess until 10:30, 3 at which time we'll come back and handle the last agenda 4 item before going into Executive Session after. 5 (Recess) 6 JUDGE KELLY: Court will come back to order. 7 It is 10:30. And this is the designated time we have 8 for each one of our regular Commissioners' Court 9 meetings between now and the time that we finalize our 10 budget to have a discussion. We're not taking any 11 action, this is just a discussion regarding the 12 departmental requested budget and tax rate. 13 Is there anybody from the public that would 14 like to address the Court? Are there any of you that 15 would like to address the Court? 16 Well, let me tell you a little -- ma'am? Go 17 ahead. 18 MRS. SHELTON: Do you -- are you going to 19 explain the difference between the proposed budget and 20 the department requested budget, which is all we've 21 talked about so far -- 22 JUDGE KELLY: Right. 23 MRS. SHELTON: -- is the department 24 requested budget? 25 JUDGE KELLY: Well, what I -- I was going to 64 1 do is kind of give a status report of where we are. 2 I've been working one day later than I thought we needed 3 to be up here, but been working with our Auditor on a 4 proposed budget. 5 The way the budget process starts is we ask 6 each elected official that runs their office and each 7 department head that runs their department to submit 8 a -- their requested budget. And that's a request. I 9 call them the ask. That's what people are asking for. 10 We went through that whole process. We had 11 three budget workshops to find out what it was that the 12 ask was. We have that information all now in a nice 13 little schedule. And then what I'm working on is what 14 my proposed budget is going to be. In other words, my 15 response to that ask. And I'm trying to be fair and 16 reasonable in what my proposal is. And I should have my 17 proposal ready probably by this time next week. And 18 that would give y'all a week to look at it before we get 19 back into a regular meeting. 20 And the things that I'm looking at is I'm 21 struggling with the impact of inflation and the 22 cumulative effect of that inflation and the way it 23 affects everyone. And I have to take into consideration 24 that the County is kind of like a family. We work 25 together. And we spend more time together with each 65 1 other than we spend with our families. And that makes 2 it much more like a family. 3 We're trying to take care of the County 4 employees, the family together, in that I'm considering 5 what kind of wage adjustment I'm going to recommend. 6 We've been -- we've tried to be fairly aggressive the 7 last two budget years, budget cycles. And we're still 8 short. And inflation continues and it hurts everybody. 9 But it hurts more than just the people that work here at 10 the County, it hurts the taxpayers. This is -- this is 11 a -- a pain that affects everyone. And so, I'm trying 12 to see -- make sure that we take care of our family. 13 Everybody wants to support their family. It's this 14 Court's responsibility to support the County itself, the 15 County employees. 16 And I'm struggling with new hires. 17 Through -- through -- when we bring a bunch of new 18 people in when we can't even support the ones that we 19 have. So -- so, you know, these are questions not 20 easily answered. But these are some of the struggles 21 that I'm going through. 22 One of the things that I discovered, and I 23 was sorry for being a minute late getting back but I was 24 visiting with our HR Director. This has been an eye 25 opening budget cycle for me. I didn't realize there was 66 1 that much difference between the economic consequence or 2 impact of a increase in grade by one versus an 3 additional one step. Steps are two and a half percent. 4 A grade is about five percent. 5 And so, at first, I was looking at, you 6 know, how -- I look down at these grades. Here's 17. 7 Here's a 17.5. Here's an 18. Here's an 18.5. And I 8 was trying to figure out why do we need these point five 9 increases in grades? And the conclusion that I've come 10 to is I figured out why we need the half, because 11 that -- we don't need to increase five percent or we 12 didn't want to increase five percent or couldn't 13 increase five percent, so we did it by point seven. 14 But my take, the take-away that I'm learning 15 from this budget cycle is a grade is worth more because 16 it means more. And that, to me -- a good example of 17 that would be -- well, I'm not going to use an 18 individual, that's -- that would be bad form on my part. 19 But when you want to communicate to an employee that you 20 value their contribution, truly value and it's not just 21 an accomplishment for a certification or a two and a 22 half year or a three-year anniversary, you use grades. 23 And as those grades get higher, they get more 24 prestigious. You start looking at the people that are 25 in grade 20 and up. Those are our senior people. 67 1 They're the people that we're leaning on. 2 And so I'm trying to use grades as more of a 3 compliment than just compensation. And, of course, I 4 can't do that with everyone. But we've got -- of the 5 requests that we've got, I've tried to pick out the ones 6 that I really felt like it was better to use a grade to 7 try to communicate my -- my value for their 8 contribution. Because everybody contributes, you know. 9 Even if we had no wage adjustments and we had no raises, 10 They're still doing the same job. And we're providing 11 services to the public to run a local government. 12 Now, when I put this proposed budget out 13 next week, we will then have our next regular 14 Commissioners' Court meeting and we'll have another 15 opportunity for the Court to give me their input. So 16 I've got input from you. This is to get input from the 17 public. And I'm sure the public -- the public will 18 come. Just not yet. I think they're waiting to see 19 more concrete numbers. But they will come. 20 And to get input from my fellow members of 21 the Court here. And at the end of that process, the 22 five of us will come up with what our decision is with 23 regard to the final budget. And so that's the process 24 that we're following. And I will tell you that we have 25 taken it very -- it has been taken and is being taken, 68 1 and I think will be taken again, very seriously by 2 everyone. 3 So that's really all I have to say about the 4 budget. We've got some work to do over the next few 5 weeks. And I'm confident that we'll get it done. 6 COMMISSIONER LETZ: Judge, a couple of 7 comments. And I'm not real sure how we added all these 8 point fives on the grades. 9 JUDGE KELLY: I wasn't either. 10 COMMISSIONER LETZ: I know it didn't used to 11 be there. And I think that a lot of the -- you know, 12 the requests that come in from some of our elected 13 officials, probably department heads also, when they ask 14 for a -- up to a 15 to a 16, in their minds that's two 15 and a half percent. But in reality it's five percent 16 under our -- the way it currently is. 17 You know, unless I'm wrong. I look at Kelly 18 because she's been around, gosh, longer than me? As 19 long as me? 20 MS. HOFFER: 22. 21 COMMISSIONER HARRIS: Easy... 22 COMMISSIONER LETZ: A long time. And, you 23 know, there used to be there was no point five. The 24 point fives came to be because of the Sheriff's 25 Department originally. And this was way before the 69 1 current Sheriff. And somewhere along the line, when we 2 were trying to -- I don't know, all of a sudden it 3 exploded and we added point fives everywhere. And that 4 has, I think, confused a lot of our employees and 5 elected officials. 6 JUDGE KELLY: It confused me. 7 COMMISSIONER LETZ: And, you know, but 8 that's just where it is right now so I understand that. 9 And I really hope that after the budget is approved, 10 September, October'ish, that Commissioner Paces and I 11 can get back on the committee, and really look at a 12 revamp of the system. It probably won't be done before 13 I'm out of office, but I think a recommendation could 14 certainly come forward in the last three months of the 15 year. We're pretty close, I think. A lot of things 16 need to be looked at. 17 Another thing I want to say is that, you 18 know, I -- I'm sure other Commissioners and Judge have 19 received e-mails from the public and some of them, they 20 baffle me. Some of them say that we're -- it's a 21 secretive process. And I'm like, gosh, I don't know how 22 you could be any more open than we are. We -- it's on 23 YouTube and we talk about it and things are online. So 24 it's certainly not a secretive process. And I hear a 25 lot about we need to do a baseline budget. Which sound 70 1 good, but we have a couple things that, you know, one, 2 yes, we control the budget. But we also are obligated 3 by the Constitution to fund all the other elected 4 officials to what they need to do their jobs. So it's 5 not like we can just arbitrarily go into the tax 6 assessor's office and say, well, we're going to cut a 7 couple people, we don't have the money. We can't do 8 that. Because with the Constitution, they have 9 certain -- they have their responsibilities to fulfill 10 their office and that's a little bit different. And 11 then we get mandates frequently from the State 12 legislature. Which are, again, I mean, things that we 13 have to do that are not compatible with a baseline 14 budget necessarily. 15 So there's a lot of -- we're -- it's a 16 complicated process. We try to do it as open as 17 possible. I like this process better than any one I've 18 ever used since -- in the last 27 years of doing, you 19 know, the format we're using. But it's still very 20 complicated. 21 JUDGE KELLY: Well, and I want to echo 22 something that you said. This budget cycle has really 23 opened my eyes that step and grade system is profoundly 24 imperfect. And it has not been enforced consistently. 25 And there is a need, a real need, to sit down and 71 1 reevaluate how we're going to put together a structure 2 equal to handle these asks and responses fairly and 3 consistently. 4 So just re-examination of step and grade, 5 grade and step. 6 COMMISSIONER PACES: I would like to make 7 just a couple comments. I don't do it very often, but 8 I'll compliment Judge Kelly for the process this year. 9 You know, my second year going through it. I think it 10 is far more open and transparent. And the public has 11 been given the opportunity to comment. But the big 12 complaint that I get from the public is, well, they 13 don't have the basis really to comment yet. 14 COMMISSIONER HARRIS: Right. 15 COMMISSIONER PACES: Because they haven's 16 seen, you know, that summary document. What's -- what's 17 the total. 18 COMMISSIONER HARRIS: We haven't either. 19 COMMISSIONER PACES: I know. But I'm just 20 trying to make it clear for everybody. I think once you 21 have the proposed budget and that goes out, we're likely 22 to see a lot more -- 23 COMMISSIONER HARRIS: Of course. 24 COMMISSIONER PACES: -- public input. So 25 they are interested. They're keenly interested. And 72 1 they're waiting to see what the numbers look like. I 2 am, too. And very concerned about it. 3 JUDGE KELLY: Well, but so that the public 4 understands, and to the employees, too, you need to 5 understand how this -- how this really works. The first 6 set of numbers are the internal numbers of the 7 respective departments and offices. And those are not 8 public yet. Those are there -- they're putting together 9 their ask. That's what it is. And then they come to us 10 and we -- we listen to their ask, that's why we have the 11 workshops. We listen to the ask. And it's there for 12 the public to -- to go back on YouTube and listen to 13 every one of the workshops. Because they got up and 14 told us what their ask was. To a person. 15 COMMISSIONER PACES: And we should emphasize 16 that just because that's their ask doesn't mean that's 17 what they're going to get. 18 COMMISSIONER OVERBY: No. 19 JUDGE KELLY: Absolutely. And I want to 20 tell you, I'm looking at the schedule that I'm working 21 from right now with -- that the Auditor and I are, has 22 what the ask is. And has what last year's budget was, 23 what the current situation is, the status quo, then it 24 has the ask. And now we're working on a column over 25 here of what my proposal is going to be. And then 73 1 there's going to be still another column out there as to 2 what it is that this Court wants to do. 3 And all of that's going to start becoming 4 public on Monday when I put out my budget. When I give 5 you my proposed budget, then that's something that the 6 public, I think, should be able to see. 7 COMMISSIONER LETZ: Judge, a question. Your 8 budget we'll get next week. My recollection is on the 9 22nd we have a budget workshop. 10 JUDGE KELLY: Yes. 11 COMMISSIONER LETZ: It's our next court 12 date. But that afternoon we have a workshop. 13 JUDGE KELLY: Right. 14 COMMISSIONER LETZ: Is there another 15 workshop right after that? Because I don't -- 16 JUDGE KELLY: Yes. There is. 17 COMMISSIONER OVERBY: There's a Wednesday 18 one. There's a -- 19 JUDGE KELLY: There's three. 20 COMMISSIONER LETZ: There's three more after 21 that? 22 JUDGE KELLY: Uh-huh. 23 COMMISSIONER LETZ: Okay. And -- 24 JUDGE KELLY: We did three workshops before 25 and three workshops after. 74 1 COMMISSIONER LETZ: Okay. And then the 2 other question I have is, do we know yet when we're 3 going to get the 95 percent numbers from the Appraisal 4 District? 5 JUDGE KELLY: Closer to the end of this 6 month. 7 COMMISSIONER LETZ: Shoot. Well, actually, 8 I know they were -- 9 JUDGE KELLY: Every year it comes in -- 10 we've gotten them as early as a week before the end of 11 the month or -- but it's usually right about the last 12 couple of days in July. 13 COMMISSIONER LETZ: Yeah. They were -- 14 MRS. SHELTON: Their deadline to get those 15 to us is July the 25th. 16 JUDGE KELLY: Yeah. 17 COMMISSIONER LETZ: Okay. And I know -- 18 MRS. SHELTON: And that's every year. 19 JUDGE KELLY: And they don't get them to us 20 early. 21 COMMISSIONER LETZ: And those are very late 22 getting out a lot of their notices this year. 23 JUDGE KELLY: Hey, this is a busy time of 24 year for everybody. Anybody in local government. This 25 is a busy time of year. School districts, 75 1 municipalities, and all of us. 2 COMMISSIONER PACES: We can assume ten 3 percent more than last year plus a little bit for new 4 properties. 5 JUDGE KELLY: Well, in case you didn't catch 6 it, that was sarcastic. 7 COMMISSIONER PACES: I admit. 8 JUDGE KELLY: I mean, if we could wish it, 9 we would. But it doesn't happen that way sometimes. 10 COMMISSIONER PACES: How much the appraisals 11 go up. 12 COMMISSIONER LETZ: It'll be interesting to 13 see this year what they do. Because things have 14 certainly slowed. 15 JUDGE KELLY: Anything else on budget? Then 16 with that, we're going to adjourn briefly and reconvene 17 in Executive Session. We have a couple of -- we have 18 one item on Executive Session, which is a personnel 19 matter. To consider, discuss, and take appropriate 20 action to authorize to continue benefits and grade and 21 step status of an employee as an initial hire in Kerr 22 County. That's what we will take up when we come back 23 in Executive Session. 24 (Recess.) 25 (Executive Session.) 76 1 JUDGE KELLY: It's 11:00. We're coming out 2 of Executive Session and we will move on to Item 5.1, 3 which is action as may be required on matters discussed 4 in Executive Session. Is there a motion. 5 COMMISSIONER LETZ: I'll make a motion that 6 in regard to an employee that moved from one department 7 to another department within the County, that there will 8 be no gap -- no gap in employment. 9 COMMISSIONER OVERBY: I'll second that 10 motion. 11 JUDGE KELLY: We've got a motion and a 12 second. 13 COMMISSIONER LETZ: Is that good, Hunter? 14 MR. MOOSE: (Indicating thumbs up.) 15 JUDGE KELLY: Any discussion? 16 COMMISSIONER PACES: Yeah, I just think -- I 17 would like to make -- or give a message to all of our 18 staff that, boy, don't rush to a decision in the heat of 19 the moment. If you're angry, upset over something, 20 sleep on it. Talk to other perhaps more mature 21 advisors, and take their counsel. And I'll leave it at 22 that. 23 COMMISSIONER HARRIS: And your number is 24 what? 25 COMMISSIONER PACES: On the website. 77 1 JUDGE KELLY: Any other discussion? Okay. 2 Then those in favor say aye. Opposed? 3 COMMISSIONER PACES: Aye. 4 JUDGE KELLY: Four, one. Motion carries. 5 We are adjourned. 6 * * * * * * 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 78 1 STATE OF TEXAS * 2 COUNTY OF KERR * 3 I, DEBRA ELLEN GIFFORD, Certified Shorthand 4 Reporter in and for the State of Texas, and Official 5 Court Reporter in and for Kerr County, do hereby certify 6 that the above and foregoing pages contain and comprise 7 a true and correct transcription of the proceedings had 8 in the above-entitled Regular Commissioners' Court. 9 Dated this the 19th day of July, A.D. 2024. 10 11 /s/DEBRA ELLEN GIFFORD Certified Shorthand Reporter 12 No. 953 Expiration Date 04/30/2025 13 * * * * * * 14 15 16 17 18 19 20 21 22 23 24 25