I'm going to go to the next room. I'm going to go to the next room. I'm going to go to the next room. I'm going to go to the next room. I'm going to go to the next room. I'm going to go to the next room. I'm going to go to the next room. I'm going to go to the next room. I'm going to go to the next room. I'm going to go to the next room. I'm going to go to the Good morning, ladies and gentlemen. I'm Denton, kind of Commissioner's Court for Tuesday, July 8th. It's now in session. This morning, an invocation will be given by Rowan Asabedo. How is pronounced his name wrong? My apologies Rowan. How is to do that wrong? And our pledges will be led by Beth Fleming, our director of purchasing will you please stand? I don't know why I get so tongue tied on your name, but I do, I'm sorry. I'm not really proud of the joy of being heard. Well, the guy that you came to say I'm going to go to the next slide. I'm going to go to the next slide. I'm going to go to the next slide. I'm going to go to the next slide. I'm going to go to the next slide. I'm going to go to the next slide. I'm going to go to the next slide. I'm going to go to the next slide. I'm going to go to the next slide. I'm going to go to the next slide. I'm going to go to the And I think that more years, you play music in my country and my community. And there is always a huge question. More than that, you have to be aware of the things that you provide, I'm not arguing. I'm arguing. Okay. I'm not arguing. Okay. I'm arguing. Okay. I'm arguing. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay Thank you for your time. Thank you for the lead and for the time. We ask you to do it. We need to go and give all your information. We thank you for your budget on account. I would like to thank George, the President of the United States of America and the two-year republic for which it stands, elimination and the God in the visible with liberty and justice at all. I want to take this letter. I pledge allegiance to the Texas one state and the God one in the visible. Well, thank you. on in the visible. Well, thank you. Item one is for public input. For items not posted on the agenda. If there's any member of the public who would like to address Mr. Court, we ask that you please complete a public comment form. They're available on the side table. Once you remind everyone to please turn off your cell phones and pages. We're gonna get to the city of Denton presentation here in just a minute, but first I'd like to go to item 12A on the agenda. So our law enforcement can head off back to the office if they'd like to. I think we can do this pretty quickly. 12A is a proof of a memorandum of understanding with the Texas Department of Public Safety to receive files contained containing Texas Crime Information Center, National Crime Information Center, data containing vehicle license plate information to be utilized by the Dent County Sheriff's Office. Sheriff, did you wish to give any input on this or do we have any part members that have questions? Everybody's really quiet. Do we have a motion for approval by Commissioner Marchand? Seconded by Commissioner Mitchell. Here are no questions or comments. All in favor please say aye. Aye. Opposed, Cine? Motion does carry. Sector only thing you have on the agenda, am I missing something here? 12, oh, 12, B and C, okay, let's go ahead and do those also. 12B is approval of a memorandum of understanding and cooperative working agreement between Denton County Crime Soccer's, stoppers incorporated, Denton County on behalf of the Denton County Sheriff's Office. Chair will move for approval. Seconded by Commissioner Marchand, are there questions or comments? Hearing none, all in favor, please say aye. Aye, opposed, aye. Motion does carry. 12C is approval of the Second Amendment to the Master of Service Agreement between Securist Technologies Incorporated and Denton County. Master of service agreement between Securus Technologies and corporate it in Denton County. Motion by Commissioner Marchand, seconded by Commissioner Coleman, questions or comments? You're in none. All in favor, please say aye. Aye. Opposed, aye. Motion to this carry. Thank you, sir. Okay. We're going to go to item 3A on the agenda. 3A is a presentation and discussion of possible dent-county participation in the tax increment reinvestment zone, the tours with the city of Denton for the development of a convention center in hotel complex. And we'll call on John Fortune, good morning, John. And just so that you know the presentation that you have printed out for us here, and you're going to be doing up on the screen, when you see the top of our heads, we can see it down here and we're not ignoring you, okay? Okay. Okay, thank you you good morning. Is that microphone on is the little red light on? It is now can you hear me? Okay good perfect thank you. First of all let me thank you for the opportunity to come and present this project before you today. I think most of you are aware that the city for some time now has been working to establish a project to build a convention center in the community. And we've considered many options over the last several years and more recently have reached an agreement with the developer that we believe has all the necessary elements to be an excellent project for the community and the surrounding area. This is a project that is early a collaboration between the city of Denton, University of North Texas, the developer who in this particular case is a Raleigh Hospitality, this is a family that you may be familiar with the name in terms of the Raleigh Hospital, excuse me, a RReilly auto parts. It's the same family, but it's a branch of a different business entity that they have. And we hope that in the mix of that collaboration, we can include the school district and the county as well. And that's what we're here for this evening or this morning is to kind of talk about that opportunity. The project itself is a convention center about approximately 100,000 square feet. It will be sized to accommodate conventions for delegates in the 750 range on a kind of a typical convention setting that most of us are familiar with with breakout rooms and so forth. They would also have a grand ballroom, a very large ballroom that will have size, it will be size, it's really beyond the scope of what we have in the immediate vicinity. Denton in the immediate vicinity is about 30,000 square feet, currently designed to be 30,000 square feet. And this would accommodate up to 2,000 people for a banquet style or theater style event. So for one day events it has a very large capacity and then for conventions it has a very significant capacity as well. The convention center will be tied directly to a convention center hotel, Embassy Suites Hotel. It's a product that most of you are probably familiar with. It's very similar to the project that you would see in Frisco, Norman, Oklahoma, San Marcus, and those cities. The hotel is currently projected to be 275 to 318 rooms, 11 to 12 stories tall. The hotel will be privately funded. The city is not involved in the funding of the hotel in any way. Our direct involvement is just for the funding of the Convention Center. The city plans the issue is certificate of obligation to fund the Convention Center. It's estimated cost approximately $25 million, excuse me $25 million, and the revenue to support the debt service on the convention center is going to come from project-related revenue, project-generated revenue. This will be the hotel occupancy taxes from the hotel itself, the sales tax generated from food and beverage sales, and the room service, and the restaurant associated with the hotel, as well as property taxes from the city will be dedicated directly to pay the debt service. Any gap between that revenue and the actual debt payment that the city has, the developer has agreed to make a payment, a rent payment to the city on annual basis to make that gap whole, make the city whole. So in this sense, the city is able to provide an amenity for the community that is self-supporting and it really has no impact on the overall service delivery that the city currently has. It doesn't in other words it is not expected to draw resources away from other things that we're currently doing to be able to support it. The interesting thing about this project is that it's on the University of North Texas property, that's currently tax exempt property. This is property that the city, the school district and the county are currently receiving no revenue from. Due to the nature of new property tax revenue anyways, due to the nature of the agreement where the city is going to build a convention center, we're gonna lease that convention center back to the developer, the owner of the hotel, to operate and manage. Well, that makes it a taxable property, taxable project at that time. And so there will be taxes generated from this project moving forward. And so a mechanism that the city is employing to try to fulfill the self-supporting nature of our rents, of our debt structure is to create a turd for the project. And that essentially allows us to capture the value, the incremental growth and value of the property and apply that revenue toward the debt. In this particular case, it's zero, so anything we get in new growth and taxable value will support the debt We're here today to talk about how the county might sit or Participating in that with the city we believe that we're close to Heaven all the elements necessary to make this project move forward the developer is indicated that that they're that they're Desire to do so is really contingent on the level of support that they receive from not only the city, but they would like to see some support from the county and the school district as well. I've already presented this project to the school district and roughly exactly the same presentation I'll be presenting to you today. They have yet to give us a commitment. But the opportunity will be for us to go back in the near future and see what they're willing to participate will be. This is really the first opportunity we've had to come and present this project to you. And I would expect that if there's some interest in support from the commissioners, we would come back and have a more detailed discussion about what level of support you might have or be interested in if any. The information that we provided to you makes some assumptions. Those are not written in stone as we're just for illustrious purposes and we expect that you would have some questions about that today. I have already presented this to the City Council. They've created the terms and the steps that Mr. Pettit will be going over with you here shortly will kind of illustrate what we've done up to this point and what our next steps are. The City's employed the services of David Pettit with a firm called David Pettit Economic Development to help us create these documents and do the analysis that's necessary for creating the TERS. And with the commissioners permission, I'd like to bring him up now and actually go through the presentation. And then of course, Mr. Pettit, myself will be available to answer any questions that you have at the conclusion of his presentation. Or if there's anything you want me to stop and answer now, I'd be happy to. That's okay. All right. I believe not. Thank you. Thank you, John. Thank you. Thank you, John. Good morning, commissioners. Well, I don't think I have to do anything. John did such a good job of providing an overview there, but I'll get into some of the nuts and bolts of the proposed TIFF and the impact. John made a very good comment that we made some assumptions on other taxing jurisdiction participation just so we could see the impact. By no way, are we committing? This is just an assumption for our projections. And so I appreciate John making that comment and also for us to kind of go through this presentation. This is the presentation that we gave to the City of Denton and also the Denton Independent School District. It's no longer proposed, the TURRS has been created. It's approximately 13 acres. It's located near the intersection of Interstate 35, and North Texas Boulevard, I think we know we're all of, we all know where that hotel is. Actually, I think I had my high school prom and the old radicine. The purpose of the TURRS is to facilitate the development of a full service hotel and convention center. And I always like to point this out and I know you'll do a lot of tips, but a lot of times when I'm talking with people they don't are not familiar with tips. And there's really two processes. One, which is what the city's already done, which is create the turs, which creates the boundary. The term sets the city participation rate, the turs board makeup, and also proves the preliminary project in financing plan. After the Terr's creation, the preliminary project in financing plan is separately considered by the Terr's Board, by resolution, and also by the city council by separate ordinance. The land developed to be developed is currently vacant, undeveloped land owned by the University of North Texas. Currently has no taxable value. This is a rendering of the proposed hotel. The hotel anticipates 318 keys, would have a restaurant of about 7,500 square feet. Food and beverage would be provided throughout, and we'd also have the close to 100,000 square feet, publicly owned convention center. To go through our analysis, we conducted a financial analysis, and we looked at the taxable value. We looked at comparable taxable values, taxing jurisdiction participation's rate, what I was talking about before, where we made some assumptions. The terms term and the anticipated revenue to the terms with those factors. If we look at the hotel, there's three approaches to real state appraisal. One is the cost approach. One is the income approach. And three is the comparable approach. I found in taxable value analysis if you can find another hotel or another property that is similar in scope and program, that tends to be the more consistent method of doing appraisal. There are two hotels that we found that we were similar in the scope and program. And so that came in at about $100,000 a key. We anticipate that the developer would be able to receive a 15% educational space credit, because it is anticipated that the University of North Texas would use this for a hotel management program degree that they offer. And so therefore, there would be a 15% tax abatement. So the overall tax value of each key, it would be $85,000 per key, 27, coming in at approximately $27 million. We anticipate if you start construction the next year, that your first increment would come online in 2017, full increment would not come on until 2019. There are some other tax revenues, as John mentioned, all of the personal, all of the, from the city side, all of the sales tax and all the city's hotel occupancy tax will be going to repay those funds. We also have some personal property that would be coming off of the restaurant. Just recently, hotels, the state of Texas, changed that to where they roll all the personal property into the real property count. So that's a good thing, makes it easier for us that are doing taxable values. And so we do have a nominal amount of revenue coming in off of the personal property. These are the assumptions the city of Denton has committed to 100% of its incremental real property tax revenue. For modeling purposes, we utilize a 75% for Denton County. And we also used a 75% potential increment real property for Denton Independent School District on their INS side. As you know, there's Robin Hood and so any increase that they have on their M&O, the state would take that, but they receive 100% of the benefit of any new INS that goes to support their interest in sinking fund. The overall tax rate currently is approximately $2.50 per $100 valuation. With these, as soon participation rates you would have a $2.27, approximately $2.27 per $100 valuation. And we looked at, John mentioned that this was going to be a 20- year certificate of obligation. Because the revenue doesn't really come online for a full, until 2019. We went ahead and we ran this as a 30 year and that's what the City Council approved was a 30 year tip. And all the anticipated new tax revenue generated during the life of the Terrors, it's approximately $27 million. Once again, this is an estimate, but I think we have good comparables and a good track record of being able to track hotel comparable values. With those participation rates, there would, over a 30 year period, there would be $13.6 million that could go towards the payment of that bond, the $25 million certificate of obligation. The Turner's Project and Financing Plan requires you to set up a project cost. Of course, we've dedicated that $13.6 million towards the Convention Center. But I always want to make this clear, that the terms revenue represents the current assumptions of Project build out and taxing jurisdiction participation. So if less development is delivered if only build 150 rooms Or the taxing jurisdiction is less. It's not 75% it's not for 30 years. It's for 20 Then the terms revenue will be less The process that we've gone through is we've had our public hearing, we've created the TERS, we will be coming forward to the City Council with a TIF Board appointment. And as I mentioned before, the TIF Board will consider the TERS, the preliminary project and financing plan, and then bring that back to City Council by ordinance. At that time, we will be ready to come back because we will know what the project costs are and that will be in stone and we can attach that to any potential agreement that we have with the Denton Independent School District and with the Denton County. This is a unique project I've been doing tips for over 20 years now. I don't think I've ever seen a tip to where you could actually say that if you do something, there will be revenue. If you do nothing, there will not be. And so I think that fundamentally there's a lot of different issues that come about from participating in a tip. But I think the overall positive benefit is if you do participate, there will be significant revenue that you otherwise would not have, because this is currently a tax exempt property. So, happy to answer any questions, and a John will be available as well. Thank you. Thank you. Members? Members? So my understanding is that the way that the hotel will be financed is through $25 million worth of certificates of obligation that are going to be let the city of Denton is going to go out and get is that correct? Actually, it's, think of it as two separate buildings, the 318 hotel rooms, excuse me, so 318 hotel rooms would be privately financed by the O'Reilly group. The adjoining public facility, which would be the 97,000 square foot convention center, that would be owned by the city and at least back to them. That's what the city is looking to float a $25 million bond, cities and public private partnerships build tax exempt convention center space all the time. And so there's two separate buildings. Okay, so the tiff, I understand the term, the TIFF, but the TIFF that you are organizing, the money that goes in the TIFF is usually to finance the debt that you've issued on it. So will the TIFF, are the revenues that are generated from the taxing entities through our contribution. Go to service the $25 million certificate of obligation to CO debt that the city of Denton has obligated himself to. That's correct. Correct, it's one of the funding sources. It'll be the real property from the TIFF, personal property from the city, sales tax from the city, and 100% of the city's hotel occupancy tax will make up that. If there's ever a shortfall, as John was mentioning before, the developer has agreed to make up any shortfall if the revenue projections are not on there. And so the land that this, a turd will be part of is wholly owned by the University of North Texas. That correct? Yes, sir, that's correct. So that's their contribution to this, is the cost of the land that this hotel and convention center will be placed on? The university has made a considerable number, side improvements to the site, the drainage for example. When they built the apogee, they anticipated future development of this site. They actually had to go and buy the lease from the radison in order to remove it. I've heard estimates from the university, they've already invested $8 to $10 million on the site, itself, from what they've contributed to managing the ratus and lease once they took it over when they bought it and then decided the importance that they've made. It's even annual lease payment from the private developer and the city. So that's what they're getting out of this? That's correct. They're getting out. It's 1.5% of gross revenues from the project is what the developer will pay to them. The city's paying $1 a year during the life of the Arda. That's correct. That's what the obligation of the city would. Okay, so the contribution of university at Texas is the land and then they'll get revenues from the private portion of this turs. That's correct. But again, universities already made a considerable investment just to get the site to the point where it could be redeveloped. So with that in mind, then no infrastructure, monies for infrastructure will be needed through any, any consideration of any municipality or the school district is that correct. So the money is that we would abate if you would, then would be for nothing more than to reduce the $25 million debt. That's correct. That's correct. That's correct. My understanding commissioner that schools cannot participate in a TURS to create a hotel. So that's why it's the convention center. Yeah, and that is correct and it really has to do. That's one element and there's also as Mr. Pettit mentioned there's because of the school funding formula anything they use from their operating operating side of their tax revenue actually becomes almost almost like a penalty and the revenue sharing that they get from the state but that's why we've not even considered their operating budget and having them participate from their operating side of their tax rate just their debt portion and so that's correct. and having them participate from their operating side of their tax rate, just their debt portion. And so that's correct. The church board, what's the plan to make up of that board? Currently it's the city's economic development partnership board which has representatives from various constituent groups across the community. And we would anticipate that if the county were to come aboard and want to be involved in the terrors that we would include some participation and representation from the county and the school district should they participate. I know there was a public hearing in Denton City Council on this, but have there been other presentations on the community, you know, Quantus Clubs? Yes, ma'am. We have made, including today, this is a 26 public presentations or discussions about this project over the last two years. In the feedback from the community? Well, most of those have been educational in nature. We've been trying to provide facts and data about the project itself. There has been, I would say, a mix, a bag of feedback that have come to the city. There are a lot of people who once they get additional data and additional information I've seemed to be very happy with the project and see the benefits that it has for the community. But I think just as you're familiar with any other project that the county's involved with there are always those that will be detractors. And our job as staff has been to try to have an open dialogue and an open discussion about the pros and cons of the project and at the end of the day it becomes a policy decision that the council, City Council have to make and they've already approved the development agreements. We're in the process now of kind of moving through a feasibility period to get to a final point of issuing debt. That includes getting construction bids, creating the terms as one of those elements. We will have to go through a financing phase for the private developer to show us that they have their franchise for the hotel as well as their financing. So that's really this phase that we're in right now. And we'll get to that point when we think late summer will either move forward the project, the council will feel comfortable with that or not. And so that's why we're here today. I've been watching the city of Denton and the school board meetings on all this. And though I can't remember, I think it was at the school board, there was a question that came up concerning Should at some point Arali decide to sell to a nonprofit tax exempt entity That they would have to agree to pay the city of Denton their taxes And that's part of the contractual obligation with the county and the school also did their taxes Yeah, that there would be a requirement that if that happens, that they would continue to pay their taxes. Let's see. We were thinking about one of the hospitals that recently went to tax exempt and concerned for that. Yes, what happened if you and T acquired the hotel so they would be the length of the? Well, you know, the issue is, is it operated as a for-profit business? If you and T were to acquire it and not operate it as a for-profit business, then it might become a holy tax exempt. But to do so would be a credible investment. And based on my conversations with university, I don't think there's any desire for them to do that. I don't think they enjoyed managing the radicine just for the few short months that they had it. But what did the radicine fail? So we had a full service hotel there that is no longer there and now we're building another full service hotel there. So walk me through that. That's a really good question. A lot of the folks have asked the same thing. You know, the Radisson, there's multiple reasons. The Radisson was never kept, I think, to a standard that it needed to be in order to be a fresh and viable product for people who'd want to come to the community. I think that's a principle reason. There's a lot of problems with the building. It hadn't been updated. Just to give you an idea of an embassy suite brand, the hotel is required every seven years to go in and completely change carpet, new paint. There's a lot of standards that have to be met. We've actually put four-star standards in our development agreement about the condition of the hotel and convention center have to be operated in. I think the other element that had a negative impact on the radicine really just from the standpoint of capacity was number one it wasn't nearly as large of a product that we're talking about here number two the meeting space that was in the radicine was not designed to have very large events. I think was fine for some limited size events and mostly community related type activities, maybe a wedding reception or a breakfast for a service organization here in town or something of that nature, but it never really lends itself to the type of product that I think would be a competitor for out of town tourism, convention business. The hot funds, I know the city's, and I'm dedicating those back to paying the debt, there's an awful lot of groups that depend on hot funds besides the county for our museum. I mean, black chamber of commerce, the chamber of commerce convention and visitors bureau, Cica de Mayo. I mean, there's a long list, I didn't count them, but there's probably 20 some different places that the hot funds go to. So if all this doesn't pan out the way it's projected to pan out, are these folks all going to lose their hot funds? It's not anticipated that the current allocation of hot funds would change in any way. The revenue that we're talking about that's hotel tax related, this derived from the project, is not currently projected to be allocated to any of those recipients. We're talking about that new growth, that new revenue. In fact, if you look on that list, there's already some line items that have been, that have been established to kind of put placeholders for the city's allocation of hot funds for the debt service. And I think there's a $100,000 allocation with some other $350,000 allocation on there that's currently for some one-time marketing that would be necessary and just some startup cost that the city will have. And so all of our future projections going forward do not anticipate any reshbalancing or reshifting of these funds that are currently going to recipients. Now, in a very dire situation, should the bottom fall out and there's some unexpected situation that we weren't anticipating, first thing will happen is the developer will pick up the difference in that print. So for the life of the debt, we have a 50 year lease and we are anticipating a 25 year debt turn. And so that's our primary difference in the proposal and the development agreement that the city is negotiated and what you might typically see in other projects. In fact, we have considered a very similar product with a different developer about five years ago. And the deal was not nearly as good from the city's perspective because the city would be contributing money to the convention center but only receiving a fixed amount back from the developer. And if the project didn't perform the way it was intended to, then it was required that the city would have to maybe take money away from other hotel tax recipients or from other revenue resources from the city. Now we'll be honest with you, the COs are backed by the full faith and credit of the city. And if there were ever just the extreme circumstances, we will have to make up and pay that debt. We will not walk away from that debt. But we believe we put all the necessary elements in place to protect the city at the very highest level. Can you tell us about any other ventures that O'Reilly has done on a similar nature track record? I can. O'Reilly has hired an, is relatively new company. I mean, I think they've been around for less than 10 years as a management company. But the individuals, and I mentioned this project that we were dealing and working on five years ago, is with a company called John Cue Hammons. There are the actual developers who did the convention center in hotel and Frisco, San Marcos, Norman Oklahoma, Normal Illinois, they're all over the country. Mr. Hammons's health deteriorated and they quit going into an active growth mode as a company and they pulled back on the project at that time. And a number of those key staff members that were with John Cue Hammond's left that firm. They all, most of them went to the O'Reilly Hospitality firm. So the individuals that we're working with from the city standpoint, from the chief architects and design professionals to the chief operating people, the individuals who actually operated these hotels that I just mentioned, are the people that are now working with the O'Reilly Hospitality firm. And I'm sorry, I have some notes here, and I can't find it right now, but this firm has been responsible for over 50 of these type of projects and managing these very similar type projects. And so we think that the experience is phenomenal, the growth opportunity, or excuse me, the depth of experience that they bring to this project is pretty significant. And much more so than what people see when they just look at how long a company existed. It's really no different than a corporation hiring, it's a relatively new corporation that hires very qualified people to come and work for them to be able to run that corporation. And that's essentially what we're dealing with with this particular entity. I have concerns, I'm sure you've seen the same data that I've been looking at that says there's getting to be more and more of these convention and hotel centers and fewer and fewer conventions. So they're competing for the same business. I've read the Brookings reports. I've been aware of those reports for a number of years and most of the articles that I think that are being circulated in the community right now are certainly the reasons why that the city has taken the very cautious approach that we have in the way we structure our deal This developers coming in there indicating to the city That that there's going to be a certain level of convention activity in this in this product in this building this facility And so the city just didn't take that on face value. We actually hired a consultant an industry professional HVS consulting that does hotel consulting for both hotel years and cities and other entities. And they did a study for us and determined that in 2008, and we did it again in 2009, post recession, that the dent market is right for the convention business. There is a number of unmet needs that we have in the community, whether that be from the university, from the government sector, for the other business corporations. There is the ability to support a facility like this in the community. So number one, we did an independent study that we believe helps at least establish that there is an opportunity for this project to be successful. Number two, we structured the deal the way we have. It's a lot different than the studies that you're seeing out there for these very, very large commission centers. If you actually look at the commission centers that are cited in under these articles, they're the very, very large convention centers. They're the half a million square feet and above type convention centers that are built in major metropolitan cities. And I do believe that there's been some fluctuations and I can't disagree with the fluctuations in the number of conventions that happen and occur on an annual basis, maybe varying in terms of the type of conventions that would be necessary to make a facility that large Successful but what we're talking about again. I think is a much smaller type facility Even though it's 97,000 square feet It's very large for our community standards. I think in the convention industry and the convention market out there, I think it's a relatively small, it would be considered relatively small more regional facility. And so, you know, I think that those are certainly the basis for cause and concern and discussion that we have in the community, but from the, at least from the staff's perspective, what we presented to Council, that's the reasons for the process we've taken at this point. A couple of questions. Go ahead and commission. Mr. Portschind. I hadn't really had the chance to look at this extensively but do you all have any kind of estimate of how many jobs would be created if we all did this? How many people would be working at the hotel? No talent would benefit that would be the city of Denton. Mr. Coleman, actually, I am embarrassed to say I don't have that information with me today. I do have a lot of data, but I walked away from that. I don't remember the exact number, but I can get that and provide that back to you. And then just bottom line, I know since it's University of Property, we're receiving no tax income at all from that property, correct? That's correct. What are y'all projections to the county as to what kind of tax income we would receive if the project was done? Let me see if Mr. Pettick can just draw us. I think he has a slide that shows that. A nice pie chart. What page is that? Did it hear, David? Yes, sir. Yes, sir. On the screen. Okay. We Did it hear David? Yes, sir. Yes, sir. On the screen. Okay. We'll switch over. So if I can't see on the little... And actually what I found was interesting when we did the analysis was the contribution if we did 75% of DISDs, INS, 75% of the counties, the ISDs participation is actually larger than the counties under this set of assumptions. But the number you can see in there and I believe $1.4 million? Oh, I can read this much better. So what we like to do is show the aggregate that's generated. So with Denton County, about $3.1 million being generated off of this hotel, contributing 2.2. And so there would be a net of $825,000 through the term. Now that's assuming the 75% participation through the entire term. I live in the city of Nettin. And one of the things I always hear from the local businessmen that I hang out with is that, you know, the city that the university is buying up large amounts of property that used to be taxable within the city. And they, you know, when they do that, they take it off the tax rolls. And that's detrimental to our school district and also to the city and the county because we no longer get taxes. We had a local hospital that all of a sudden went nonprofit and from what I understand we lost upwards of a tremendous amount of revenue. So to me, this has a net benefit to the county. I mean, I don't know about what the city or the school district analysis would be, but if we could gain $800,000, where upon we would not be receiving anything beforehand, I think that's a positive. The other thing I was when I was reading this last night, I thought something that would be positive for us as a court to consider. And I don't know if this question would be more accurately, profored to Mr. Felt or Mr. Wells, but I was trying to put my head around, you know, I'm a big believer in, you know, I know that, you know, my mom says, you know, people are like flowers, come in different shapes, colors and stuff, but to me, we always want to try and be equitable to all the different entities and cities that are within the county. And so I was trying to put my head around it and say, how have we treated like the colony in regards to Nebraska furniture? How have we treated flyer mound in regards to what's to deal with? They're building the new parking garage, Andy. What do they call that? That deal? Andy, what do they call the? I don't know. Okay, let's call it. Andy, what are they called? I don't know. Okay, let's call them. I'm a present. Well, I think we have a turd that the, don't we have a facility? The senior said here and I thought that they were proposing to build a parking garage with some of the funds down there for a development. Yeah, with the, with using county funds. There's the Lewisville. Right. There's the Lewisville Old Town, which is really cool, that I love going down there and going to that old, to the theater down there, which is an incredible municipal attraction. You know, we did the deal for the Denton Airport, and we've also done the municipal waterfront for Little L, that's going to be a big infrastructure deal. And so to me, in order for us to have all the facts in front of us and to make a good decision, I think we should be able to have some sort of, you know, worksheet in front of us that says, this is what we did for Nebraska furniture. This is what we did for firemen. This is what we did for Louisville Oldtown. This is what we did for the city of Denton and the airport. This is what we've done for little home. And I think that information would be very helpful in us determining, you know, what kind of way we would like to participate for other projects. Because, you know, even though we all do represent specific precincts, you know, I think a rising tide raises all ships. And, well, I haven't had a citizen of the city of Dent, and I hadn't made up my mind about whether the project is gonna be a positive day for the city of Dent. I know for my own personal experience, when I was on the state, junior state bar board, I was the chair of the local affiliates committee. And there was really not a facility. As the chair, I was able to have our little convention. There really wasn't a facility in the the city of Denton. That's the city of Denton. That's the city of Denton. That's the city of Denton. That's the city of Denton. That's the city of Denton. That's the city of Denton. That's the city of Denton. That's the city of Denton. That's the city of Denton. That's the city of Denton. That's the city of Denton. That's the city of Denton. I think it's good if we can consider other information in making our decision. I don't know if it would be a good person to do that, whether, John, I know you all do those agreements, or maybe Mr. Wells could give us an estimated participation financially has been in those entities. But I think those would be good numbers to have in front of us when we were making it. That's my thought. When we were making it, that's my thought. Fisheries. I think a history lesson is welcome and that's great, but I think every project still stands on its own. I agree, I just don't want to be able to. But I think we can look and see what projects have participated in the past and recent history and some things that happened before those of us got on the core, but I think that the merits of each case still stand on their own. And I've got a couple questions. I mean, I just interject one thing that I'll come back to. I'm not just green with what you're saying commission. They may be comparing apples to oranges, but I just like to know if we are. You know, looking at that analysis, I think another thing that needs to be included in all looking at each of the other tours that have been created and various parts of the county, we need to also look at what's going on around those that supports the tours. And so I've got concerns with this because, you know, what's around it that's going to support the tours? How are people going to get from the Hotel Convention Center to other things in the city of Denton? We don't really have a wonderful cab service around. You know, unless we're planning to make some arrangements with DCTA, I've just got concerns in that regard. Commissionaries, I didn't mean to, I'm sorry to interrupt you, but go ahead. I think we do have to look at things in their entirety and their placement. And that's one of my concerns as well is the location. And I think that's especially if the county is participating in it, we need to make sure that it's not that it services the county and all of the city it didn't. Understand, is there a special rate for UNT, for utilization, is that a rumor or is that a fact? Well, that's a rumor. The development agreement actually stipulates that UNT is eligible for the lowest published rate for a group booking that a governmental entity would be eligible for. So if the county were to go and seek a group booking, we would, or the city, we would all be eligible for the same rate. So TW, I have TW and more fixes. That's correct. They would both be eligible for the lowest published rate for group voting. Okay. Can you tell me about the performance of the San Marcus product in terms of their occupancy or their vote? Let me see if I can ask him. Kim Phillips with a commission of visitors, Bureau has done a lot of research on that for me. The question Kim was, was about the Senate Market Project and occupancy. And so do you have that information where we could respond to that question for you easily? And if, what she's getting at, if I could mention real quick, the answer to Mr. Coleman's question about jobs, is approximately 400 jobs, I think, that will be generated from the project. And Kim, if you don't have that here, I mean, yeah, just give it to us later. I mean, it doesn't have to be, we're not going to like- We can, we can provide that to you in part. This is not a quiz show. So- Just got- Okay. As John was saying about the jobs, I was remembering 400 jobs, but actually just found exactly what was provided to us by the group that is now with a Riley, the John Cue Hammons group. So this group is the one that has the experience. But the hotel would provide, first of all, will provide 400 plus jobs just during the construction. So for the two to two and a half years under construction, then when the hotel opens, it will have an immediate 508 new jobs and over the 25 years will be somewhere between 700 and 800 jobs on a consistent basis. And yes, as far as San Marcos goes, pardon me. San Marcos' occupancy went from that hotel opened in 2009 and in 2009, their occupancy was 55.6% and projected year in for 2014 is 71.5%. Is that what you heard? Yes ma'am. Yes, okay. And that one is an 80,000 square foot. So it's a very, very similar product to what we're building here. How many rooms does that have? 283. 283. Sir. And if I could say also some of the questions that you've had about conventions, the sizes of conventions and so forth, I think one of the, one of the pluses to our facility that we're building here is it's not a Dallas, it's not a Seattle, it is not a Florida, it's not driven by huge conventions. Ours will be able to accommodate at about the largest multi-day convention about 750 people, which is a great size. Realistically, the majority of our business is going to be 250 to 500 people, which is perfect because we could actually simultaneously hold two groups at once, with the number of breakout rooms and accommodations and amenities that this venue is going to have. More than, well, 91% of all meetings held in a convention center fall in the category of less than 750 people. That's why those big cities have seen those drop offs. A good example is promise keepers. Do you all remember promise keepers? That at one time was one of Dallas's largest conventions and it met at Texas Stadium. Well, promise keepers couldn't afford to continue that gigantic meeting. They still have meetings, but now they're in places all over the United States. Maximum attendance about 2000 at each promise keepers event. have meetings, but now they're in places all over the United States. Maximum attendance about 2000 at each promise keepers event. That is much more affordable, manageable, and more people can actually attend because they've broken it down. There are many other examples like that, but that's where that number is coming from as far as those large conventions. Ires is being built to accommodate 90% of conventions that are held. Thank you. I just said one more question, I think I very know anyway. Should the county and the school district decide to not participate, would the project still go forward? Well, it's possible that it could go forward as unknown at this point. And as I mentioned previously, the development agreement at Compton Plates that there would be some at least participation from the school district in County and the developer as part of the feasibility period has the opportunity if he doesn't feel like, since he's guaranteeing that rent, that the values of him, you know, what he's guaranteeing is not, you know, meeting his business plan, then he could at that point pull back and not do the project. He hasn't indicated that he would necessarily do so, but that is a decision point as a part of the feasibility period. And so from our perspective, we wanted to honor that commitment and go ahead and present the opportunity before the county and the school district so that we could get to a point of answering that question. Other maves the court have further questions? Well, I didn't know. You all think it would be a, I don't know what the scope of your employment is with David, Mr. Pettit, but I'd like to see an analysis of what the agreement is provide for, what kind of income has been, you know, rebated or abated back to those entities and then kind of do a comparison with what is being proposed here. I don't know if that would weigh, you know, push your all opinion one way or the other, but I think it would be helpful for me. I don't know how that would weigh, you know, push your all opinion one way or the other, but I think it would be helpful for me. I don't know how difficult that analysis would be, but I think we need to ask them to do our homework. What's that? Pardon me? Who? I don't think it's the, I don't think it'd be hard all you do. I mean, but I don't think it's the city's responsibility to do that. I'm reluctant to stick, you know, additional items and John felt spascature. Mr. Wells, I know they're both very busy. Mr. Wells, how hard, Mr. Wells, how hard would that be to do? Yeah, I don't want to know how much, you know, what, what the how much you know what what the agreements you know the percentage is how long and what we a bait or rebate or all of our gifts and gifts and terraces about five minutes. Oh okay well then I should have called you last night. I thought it would be. I get that for you time you want it. Yes sir. Thank you. All right. I know that you guys have not taken this lightly and because of that I'm sure that any scenario that might be out there that you've looked at that scenario. I looked at a scenario of complete success with 99.9% occupancy at every stage and are all the time as well as having conventions coming in and out of there. I'm sure you looked at that scenario. I'm sure you looked at the scenario of what is the minimal amount that we can have to still survive and sustain. I'm sure though, Riley people have done that too. So I'm sure that any of the tangibles are untangibles that you have approached. That's why I'm looking at this as Mr. Coleman is looking at this is I'm trying to figure out what our losing hand would be if we contributed or participated in this venture with you. And all I've heard so far is that we may have some type of revenue when fall on a piece of property that is owned by a nonprofit entity that we would imagine if you ever knew, unless some type of deal and as long as they own the property, unless they sold it off to a private, and then they came in and built something on it would be the only other opportunity that we would have as a county of getting any revenue off of that at all. So, I'm, and what I'm trying to answer in my own mind is why in the world would you guys put something together like this if you did not think it was something that could function within your own community. I, you, you, you have Mr. Pettit. Is that, all right? He's here. You have another consultant agency that you had. You spend a lot of money to put this together. And I don't think that you'd be bringing that to us if you expected it, or you had the numbers that say it's going to fail. I guess that would be better. That's our beliefs, sir. Yes. What about the other hotels around the area? They in support of knowing that they may lose some business if we build this hotel. If you are. the field, the so-tale review. Yeah, we have visited with them and they are, there are concerns expressed that this would be more competition. They're more interested, they're more interested in the fact that there's a hotel, as opposed to the commission center, I think most of them individually will tell you that they're kind of excited about a commission center opportunity because it represents new travelers coming to the community. The difference between the hotel that we're talking about in this particular project versus those existing hotels is a much different product. These are indent and typically what we consider limited service hotels versus a more of a full service hotel. The price difference in what you would charge for a room is going to be significantly different. Thank you. They're estimating about $145 a night in the embassy suites versus I think anywhere from 90 to 110 a night, which you're probably seeing in the other limited service hotels now. You know anecdotally, I think the folks that I've talked to, and we discuss going to conventions. A lot of us don't stay in the convention center hotel for a variety of reasons. One, it's either booked half the time and there's a very limited capacity or because of the price we make choices to stay at another hotel. Well, you know, Kim had talked about a 750 person capacity at this convention center. If 100% of the people that were coming to that convention needed to stay at a hotel, they couldn't all stay in the convention center hotel. They're going to stay in these other hotels. So there's stains to reason that there would be some positive benefit. In fact, Kim Phillips who just spoke to us has done some research for us and we've determined that in other cities when these convention centers have come online, the occupancy has gone up in the other hotels. Yeah, that happens. You block your rooms for how many you're going to have for your convention because the hotel will allow you so many at a certain rate and then the Elvridge will go to the hotels around the area. The greatest example that in our own Denton County is City of Losville and the garden health and gardens, whatever. I mean they've got a convention center similar to what you're talking about. And there are six existing within a two-block area, other hotels or motels. And they're building two more as we speak right now. So that's because the Hilton cannot handle the amount of rooms that the conventions are generating. And one more question. What was is the embassy product, a product of O'Rally? Or? They, that's a product that the management staff has, has experienced successful experience with. They believe it's a product in the market that we're trying to capture that it's attractive. It's great for families or people who want to travel with their family because of the nature of the sweets themselves where you can get everybody in one room, the amenities that come with the facility, the breakfast brunch. Those are just attractive type of market features that they believe will make it a very successful product. They've looked at other franchises that we've all agreed based on our research. This is probably the right combination for our community. Kim had something to offer. I'm sorry. I'm sorry for interrupting, but I wanted to add to the discussion about the Convention Center with the hotel. One thing too that needs to be looked at, and we've looked at this very hard in our project, is the fact that a lot of convention centers that are built without a hotel attached are very limited in what they can attract, particularly from outside the market. Plano is a perfect example. They have this beautiful Convention center with no hotel nearby. They have a very difficult time bringing groups from outside of the metroplex area where people are going to go home every night. Because for a meeting planner, a convention planner, to bring their people from out of town to meet in our city without that hotel attached, it's cost prohibitive for them to try to use our convention center. So having the hotel attached is actually a major facet of many RFPs where we're trying to bid on convention business to choose our city. So it's very vital to have that there. You've done enough, you've told us that Sam Marcus, and I think all of us have been at the Sam Marcus because we've had our commissioner schools there and we're very familiar with that product. And you said that they are currently at the end of 2014 anticipates 71.9 or something percent. You know what the average occupancy rate of hotels that are attached to conventions and the state of Texas is? Is it? Is it? Are they them operating in an industry standard occupancy rate? They're actually operating high. They do very, very well and in fact if you want to translate that occupancy into an average daily rate to their rate, it's running at $148.50, which is very good because there are a lot like us, San Marcos is in the fact that all they have is limited service hotels, except for the embassy suites. And in response to the question you were asking, Bobby, one add on to that is embassy suites is actually a Hilton product. That is also an important piece of this information, a piece of our project, because Hilton has some of the highest standards of any hotel corporation in the United States, in the world. And as long as the Hilton flag is associated with our project, we don't have to be concerned about what's the quality of this thing gonna be. It's just like what we've seen in Frisco and these other projects, even when the project changes hands or changes management or perhaps even goes through a dramatic staff turnover inside that property, Hilton is overseeing that name, that brand. Not all flags have that kind of consistency, but that's one of the greatest things about the Embassy Suites that we've elected to go with. I noticed, I think it was back in May, I attended one of the workshops at City of Denton just to learn about everything that was being proposed and at that time the suggested room rate was like 235 a night or something like that. There was a couple hundred dollars anyway. And now you're seeing 145. I'm not familiar with the 200 number. I think we had a projection on a performer that takes this project out 50 years. And it does grow incrementally in the future but it's projected to start it, it's start up around 140 and stabilize at about 145 to 150, you know, but it's projected to grow just as inflation and market changes. All right. Are there other questions comments from her? Is there anything else you want to add? I just would like to again thank you for your time. I know you have a lot of things on your agenda today and it's certainly been a pleasure answering your questions. I would just like to take an opportunity and let you know that on the city's website, www.cityofdinton.com that we have placed a link to an informational video as well as posted all the development related agreements as well as the market study. And more importantly, the type of questions that you're asking, we're capturing those questions and we're answering them and putting them on an FAQ frequently asked questions, link on that website. So that if you want more information, you can just go and read the questions and say I have that question let me go see what the answer is it's there already and so I would just encourage you or any viewers who are watching today if they want to learn more about the project that's a great place to get that information. Thank you very much. Thank you appreciate your time thank you for being here. here. This bill is thank you. All right. There won't be any vote taken on that today. This is for discussion only. I'd like to go back to item one on the agenda, which is just for public input and take this opportunity to have Matt Richardson stand up and introduce him. This is our new director of our health department. Welcome, Matt. I'm sorry. We're not gonna go today. Welcome. Glad to have you on board. You know you've got biggest shoes to fill. Yes you do. I think so. Okay. Let's see here. I beg your pardon. Yes I we have another guest with us here that would like to visit our make comment concerning 4 a and 4 b so let's to four A, which is our public hearing. This is approval of the Reef Fire Des Voices. There are acres, lots two A and two B. This is a commissioner precinct four. So let's have a motion going to our public hearing. Motion by Commissioner Marchant. Seconded by Commissioner Mitchell. All in favor, please say aye. Aye. Opposed, C&A. Motion does carry. State and good morning. Judge commissioners, this public hearing is considered a replat request in the Baudark Acres subdivision. The owner of lot two is splitting this lot into two and a half acre lots. This new plat will continue to conform to Ditton County standards and is recommended for approval by the DSE. Okay. Thank you. Is there anyone attendance? I'd like to address commissioners cardinist issue either in favor of or opposed to Okay, well, I've got Chris Russell Here and this is on for a for a B, but they don't wish to speak But they're for the item they just want that recorded Okay, anyone attendance that would wish to speak, but they're for the item. They just want that recorded. Okay, anyone in attendance that would like to speak on this issue? Hearing none, let's have a motion to close the public hearing. Motion by Commissioner Eid, seconded by Commissioner Mitchell. All in favor, please say aye. Aye. Opposed, Sainte, motion does carry. Now we need approval of the replat. Motion? Motion by Commissioner Marchant. Seconded by Commissioner Mitchell. All in favor, please say aye. Aye. Opposed, sen. Motion does carry. 4B is also public hearing to discuss the proposed interlocal cooperation agreement for traffic regulation in Dink fresh water supply district number 10 This is a Savannah subdivision located dent kind of commissioner precinct one. We need motion for public hearing Motion by commissioner marchin seconded by commissioner Coleman. I'll in favor please say aye I oppose the need motion does carry Well self explanatory here by the posting is there anyone attendants would like to speak to the issue either in favor of or opposed to the proposed interlocal cooperation for traffic regulation and that kind of fresh water supply district number 10 anyone in attendance would like to address the insurance court in this issue. I think it's a good idea. I do too. I'd like to address Commissioner's Court in this issue. I think it's a good idea. So I do too. All right. Since no one cares to come and speak to the issue, we can close our public hearing. Also moved. Motion by Commissioner Coleman, seconded by Commissioner Marchant. On favor, please say aye. Aye. Poussiné. Motion does carry. It should be noted for the record too that this public comment form is also for 14b and they are for the item that is Mrs. Chris Russell in regards to the agreement I'll move for approval thank you we have a motion for approval by Commissioner Coleman seconded by Commissioner Marchant here no further questions or comments on favor please say aye aye opposed I'm not a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is a person who is because he was the public hearing and 14 a is the actual approval of the ICA to adopt. Okay, I did it backwards. I'm sorry. Next time post them the other way around. Anyway, we have a motion by Commissioner Coleman. I believe seconded by Commissioner Marche on all in favor, please say aye. Aye opposed any motion does carry. Okay, it gets confusing sometimes. All right, item two on the agenda is a consent agenda. Members are the items on the consent agenda that you need to have some discussion on. Do we have a motion for approval? Also moved. I'll second. We have a motion by Commissioner Ead seconded by Commissioner Coleman. All in favor, please say aye. Aye, opposed, ayeed by Commissioner Coleman. All in favor, please say aye. Aye, opposed, seni. Motion to carry a consented gender decay consists of two a, which is approval of the order making appointments. We have a re-higher technology services, three new hires in the county jail, new hire in jail health, a promotion in considerable precinct four, promotion in juvenile probation, juvenile detention, and a promotion under public health, under the Foodborne EPI grant. To C is approval, budget amendment request, I'm sorry, to B is approval of the intro departmental transfers, to C is approval of budget amendment request 101250 to transfer funds from Debt and County Government Center to Charlie Cole building repairs and maintenance in the amount of $1,732.2D as approval of budget member quest 101260 to transfer funds from Luke 288 Center of Plant to Luke 288 Elections Technology Water Service in the amount of $4,200.2D and 2E is approval of building news requests from Peggy Reddle, director of the Office of History and Culture to use the courtes on the square courtroom on Wednesday, July 9, 2014, from 6 p.m. to 9 p.m. for the purpose of the neighborhood association public farm regarding the proposed convention center. Okay, 5A is approval of the bill report payments from CSED, Community Corrections TA, I'd be shares, Training Shares, Forfeiture, VIT, Interest, DHFB, and DA forfeiture funds are all presented for recording purposes on Lake Good Morning, James Lowe. Morning, Judge and commissioners. That's approval of bills that's presented with the one deletion from the juvenile probation fund. That's not on the second page in the two editions. They are both, these are, this is actually, they roll into one payment to the Texas Health and Human Services Commission. It is our required inter-governmental transfers. They total almost $500,000. As Dr. Burton briefed you last week in an email. This is part of the Medicaid section, one-on-one, five waiver program. And this payment actually been qualified to county for significantly larger payment back from the state Medicaid funds to find these special programs we haven't going so just we've done several of these now this is the way this works we pay a little we pay some up front and get much more back. I didn't want to and it is we would ask for approval those based on that. We would ask for approval those based on that. Thank you. Other questions or comments? Do we have a motion? Motion by Commissioner Coleman, seconded by Commissioner Marchant. All in favor, please say aye. Aye. Opposed, aye. Aye. Okay. So we have four in favor, none opposed. And one abstention. She didn't have time to read the bill report. How do you get the management? You didn't get it from the small one. Oh, okay. Okay. Maybe we should jump over to 14A because that is the second part of the freshwater supply district. I think I already moved for approval on that. No, I did. 4A and 4B. I didn't. Okay. Okay, so I still need to go back and do 4B. Okay, I'm sorry, but I'm confused. I thought I did 4A and 4B and have not yet done 14B. No, we have not done that. I'm waiting on that. And, I mean, A is the only one that's been changed. Yeah. The point is, are all three of these, 4A, 4B, and 14A all approved? Right. Yes. Okay. Thank you. Not 14B. Not 14B is a different subject. Well, that will take that up later. Different subject. Seems like the harder I try to get organized, the worse it goes sometimes. Okay, 5b, which is a proof of a resolution declaring expectation to reimburse expenditures with proceeds of future debt, 2014 tax notes. And I don't know if James or Donna wants to give any additional information to what was the backup. Are there questions from members of court on 5B or do we have a motion? Thank you. We have a motion to approve by Commissioner Marchin. Seconded by Commissioner Coleman hearing no further questions or comments all in favor please say aye aye opposed in any motion does carry 5c is approval the democanian reinvestment report for the quarter Indian 331 2014 Cheryl move for approval seconded by Commissioner Marchion hearing no questions, on favor, please say aye. Aye. Opposed to the name? Motion does carries. Seven a's approval. Budget member quest 101-210 to reallocate existing benefit funds to the various line-9s for public health preparedness grant in the amount of $10,000. So motion by Commissioner Mitchell. Seconded by Commissioner Mitchell. Seconded by Commissioner Marchandt. Questions? Any none? All in favor, please say aye. Aye. Aye. Opposed, Cinean? Motion does carry. 7B is approval. Budget may request 101-220 to increase revenues and allocate expenditures. Or contract labor for Office of History and Culture in the amount of $4,170. Motion by Commissioner E. Seconded by Commissioner Mitchell. Questions? 39, all in favor, please say aye. Aye. Opposed, sitting. Motion carries. Seventh C is approval of Budget Mental Quest 101-230 for court appointed attorneys, and family, including the transfer of funds from non-departmental and appropriated court order contingency for the 16th district court in the amount of $86,500. Motion by Commissioner Marchant. I can. Seconded by Commissioner Coleman. Hearing no questions, all in favor, please say aye. Aye. Aye. Opposed, Cine? Motion is carried. 70 is approval of budgetary requests. 101, 2, 4, 0 for a TEC, unemployment compensation, including the transfer of funds from non-departmental and appropriated, can insurance contingency at $9,000 and $5,500. Regular unappropriated contingency for non-departmental, any amount of $14,500. Motion by Commissioner Mitchell. Seconded by Commissioner Marchandt. Other questions? Here none on the favor, please say aye. Aye. Opposed to the name? Motion does carry. 7E is approval. Budget member quest 101-270 to increase revenues allocated insurance reimbursement at $17,367 transfer $9,690 from non-department line appropriated vehicle repair contingency in the remaining $3,014 from various line items from within the shares to property for cars, small trucks for a total amount of $30,071. Motion by Commissioner Mitchell. Second and by Commissioner Marchin. Allen favor or other questions? Here none. All in favor please say aye. Aye. Opposed to the name? Motion that's carrying. 8A is approval of either the public employee's benefit cooperative wellness program incentive at a option one at $300 annual incentive or b option two $600 annual incentive. We've received quite of information, the email on this. Other questions or comments? I have a comment. Go ahead. I like option two, but my question to Ms. Phillips and she may or may not have the answer is, why if we're going to have more participation in option two, does the administrative fee go up? It seems to me the more people you serve, you get a better price per person. And it's 315 instead of 288. So I'd like to know why. And how you figure that out and why if we're doing more people, we didn't get a cost break. That question was asked several times. And my understanding is that United Healthcare knows what resources it would need to service the expected number or amount of participation at a $300 incentive as opposed to the level of resources they would need to provide to service for a $600 incentive and the rates that they want to charge or have been negotiated for those levels or a reflection of that increased service. But you're in the spot of being the focal point but it seems to me they're you know regardless of the amount of the check it costs the same amount of money to cut it right. They say no. They say it doesn't. They say they need different resources for that higher level. I was the same to cut a $300 jack as it does a $600 jack. I'm sorry, couldn't hear you. The fees not not for processing the incentive checks. It's for actual work. They do monitoring, overseeing the wellness program itself. I mean, I was probably oversimplifying it, but it just seems if you have more participation, you get them. Well, work, yes. And it's the opposite because more resources are needed. But I'd like option one of $300 because until we see what how this is gonna affect the budget. So, the commission of coma, what you consider that. I think we need to know how it's gonna affect the budget before we... I can see your point. Dude, you know, I'm not sure what the healthcare reform actor... I mean, I know it's a pejorative to call it the... whatever it is. Whatever it is. Yes, but, you know, to me... Having gone through all the materials, done a lot of research in it and in order to provide positive benefits for our employees, we need to be able to you know, I'm a big leader of the lead, you know, positive reinforcement. You do know one thing that motivates our employees is money. And I think Commissioner, you can always go out. Remember that in this is for year one. Remember that in year two we would be adding spouses, so that will increase the bottom line. And or decrease it however you'd like to go up. But it'll cost more just that way. And it can always be increased before 2018 if the court sees fit. I don't know if you care what other people are doing or not, but I know that two other entities have opted in. Tarrant County and Parker County have opted in at 300. Dallas County is voting today and NTTA will be voting later, but I don't anticipate either one of those entities going above 300. At this time. To me, the way I figure it, and I mean this is just pop psychology is, I don't know, you can go, but we have a lot of people interested in the programs and then they drop off as opposed to so I don't know if we went with 300 people. He's it. I don't know how much more we would get to participate. I'd like to see if we put the $600 number out there and get as many people as possible to participate. And there's some logic behind that. I understand that. There's also looking ahead. We will be adding outcomes based in a couple of years. And that will require our employees to do more in order to get an incentive and to have better results in order to get an incentive. And you may want to consider increasing the incentive amount at that time when you increase the What the criteria I'm sorry what's necessary to get the incentive and be better to go up Then if we had to come down I think that would I think that would be better. If we, you know, 300 is a smaller number that we will give people to participate in that if we go up after that it really won't in their mind make a difference to get them. You know, we need to give as many people as possible to participate from the very beginning because I believe it's really going to affect our bottom line. And just to clarify, just to clarify, option one will impact the budget by $115,000 in option two by 323,000. That's above what we currently budget for the wellness program. Just so you know what that number is. Well, you don't think we'll see. I'm sorry, I couldn't hear you. But don't you think we'll see a also a resulting savings hopefully? I don't think you'll see a result in savings immediately. No, I don't think so. It'll take time but I think eventually a higher level will bring more people and more people will bring a result in savings especially when you get to outcomes. I think we have to keep in mind too, and this is something we haven't really talked about before. We do not currently have money in this year's budget for the incentives that our employees are earning this year because it was anticipated that those rewards would go out next year as premium discounts. They won't go out next year as premium discounts, so they will need to be distributed in a different way in the fourth quarter of this calendar year. And since there's nothing budgeted right now for the fourth quarter of this calendar year, all of that will hit the same budget. And I'm sure Donna has concerns about that, because you really have to budget for a whole year next year and one budget, at least nine months of next year. I mean, this is not a managing bullet, but it's something we definitely want to consider. And I think, you know, the most we can do to get people to participate, I think, as a long-term goal. I mean, going through the materials when I got back, you know, we're, I think, in a Cadillac plan right now. So we're going to have to figure out a way to reduce premiums, correct? And if this is a way that we can do additional compensation and get our employees involved and reduce our premiums and avoid getting taxed under the health care reform act, I think that's a positive benefit. And it's not something, I mean, in fairy tales, you do something immediately, you know, something happens, but we ought to be thinking long-term. And just to clarify. I'm not going to have to be immediate benefits, but I just, you know. And just to clarify, when we say decrease the cost of premiums, we mean the cost to the plan, not necessarily the cost to the employee. Because a lot of people listening. I know you know that, but a lot of people listening. The charge that you have is that how much we allotted per employee. I probably mischaracterizing it, but it's the way I read it. I mean, I'm not a health care expert by any means. When we talk about when Commissioner Coleman referenced that one of the goals is to decrease premiums. I said that doesn't necessarily mean what means to the average employee who's listening and thinks the premiums is what they pay. What we have to do is we have to decrease the cost to the county by 25%. Yeah, it's several years. And we don't want to pass that cost on, but we have to reduce the cost of the entire plan. I'm mischaracterized. I was saying the county's cost per employee. Is that a better way to put it? That's fine. I thought your word was fine. It's just used different ways in different discussions. I think we should urge healthy lifestyles and healthy work environment. And we have great safety awards and great safety record here has recently acknowledged. But I think we do need to reduce the overall cost for the health care for the taxpayer, for the premium payer, for the premium payer for the for the for the employee and And Amy I would like for you to I'm sure that they'll be doing this I would like for you to be sure to pass that on to us the utilization rate This because I think that's something we that's a benchmark. We all need to be looking towards Is the utilization because is the utilization because I hope it's in the near term, but definitely in the long term that this will realize a savings for us. And it's important that the employees realize a healthy lifestyle saves them money and they're monthly deductible and also to our taxpayer. And so I think that's something that a culture that we need to permeate and encourage. And I think we need to work on how we message this out. So they realized that I think there was some apprehension previously because they thought it was done in-house and HR would know their medical information and you expressed I think either publicly or in written communication that was part of the barrier perhaps to a wider participation. the message that out appropriately so that they realize this is done by PBC and how this is handled and the confidentiality. But then we do know the numbers of participation. So I think we need to really be striving for that. Based on us adding spouses next year and budget impact, I'm going to be supportive of option one. If there's no further discussion or questions, I'm going to make a motion for approval of option one of $300 annual incentive. Have a second by Commissioner Mitchell comments. How I comment is, I think we need to embrace this initiative. I'd be supportive of 600, but obviously 300 is good too. Okay, here we know further questions or comments. We have a motion and a second all in favor, please say aye. Aye. Opposed, Cine? Motion does, Carrie, thank you. All right, 13A is approval of master service agreement for professional services between KCI technologies incorporated in county Texas. Are there questions about this? So do we have a motion? Motion by Commissioner Marchin. I'll start again. They're going to by Commissioner Coleman. Hearing no questions, all in favor, please say aye. Aye. Aye. Opposed, aye. Motion does carry. 14b is approval of merchant payment card processing agreement between Dan Den County Clerk and the amount of $7,821. The funding to come from auditor line items, I'm not gonna read all the numbers, I just recommend of other Den County Clerk, are there any questions on this issue? Do we have a motion? Go ahead. My first comment is that. Is my concern is that in the background information, any such customer fee increases, and I've caused a termination by Den County under this agreement, which has the three-year term and page 268. And I think that if the call school up too high, we should be able to terminate it. My next point is that I would like for this to be a one year agreement since we are getting a new person on board for them to have a chance to take a look at it. But my most concern is that the fact that if they go up sky high that I can't renegotiate the fee or I can't terminate the contract. Mr. Felt, did you have comment? I don't think your microphones on. I think if you want us to go back and clarify that. Yes. Okay, would you do that for me? Mara's prepared, Dave. Okay, would you do that for me? Yeah, Mars, Mars prepared me. You don't think it would violate the implied powers doctrine? I like the one maybe. There's a legal doctrine that says basically one court generally can't from, you know, um, yeah, find the discussion discretionary actions. And so I'm not so concerned. Why we you always do one-year agreements with one-year options? Is this one- Why did you hear her question? Okay, my question was, is that it said we could not terminate if the fee went up. I have a problem with it. I tried to get him to change the contract to a one year and they said that they refused that our pricing is based on this three year. We have to increase the pricing. So, that's why I put it in the background just to make you aware that this is different than the other credit card contracts we've had in the past where it's just a fee that's made the same, you know, throughout the term. And I think the JPs are doing something different about the term. Those also, one thing. So, so is a bet the why is this exclusive to the clerk? I mean, are they currently, do they currently not accept credit cards? No, they're doing it. They do? They did it through Tile of Technology. This isn't changed, but I'm not sure I can answer that question. I think they, well, I mean, but Tile of Technology does our JP. Yeah, they do JP also. Oh, and. Good morning. I just wanted to make a quick comment. does our JP. Yeah, they did JP also. Good morning. I just wanted to make a quick comment. The credit card processing that the JP's for example are using does not tie directly into the Tyler Technologies Odyssey system. Whereas this contract and the Tyler Technologies credit card processing it'll tie directly into the Odyssey system so there's not quite as much manual process Right. In a processing though so that's not quite as much manual processing. Right. In a processing, that's a benefit to the County Clerk's Office. It is a relatively new service. But excluding e-filing fees, right? I agree with that's correct, right? It's a Tyler E-payment credit card green, right? Not e-filing. Yeah. So what type of fees would they be charging just for? I think it's for like getting plants and for costs, you know, Austin and records or, you know, I always take a check. I mean, I do know the Kenny clerk does want to work with Tyler because of Odyssey. So, you know, the Kenny Clerk considers it more convenient and better to work with Tyler. And that's why they've decided to change companies. I know that they're- And I understand that, but I'm still not in agreement that if the rates go up, I can't terminate the country. Mitchell, I agree with you. If the rates go up, I can't terminate the country. Mitchell, I agree with you. That's a good catch. I read it, I missed that. I would ask you to go back. I'm sorry, yeah, Tyler Tech News and say we're not happy about that. I can tell him that the court won't approve it unless you change it. To a one year foot. I'll start all our credit card on a one year contract. I'm sorry. I just wouldn't prepare to answer that question. I don't have everything. We may have a longer contract, but I'm not sure they have the clause in there about going up on the race and leaking out of our contracts are longer terms but we have provisions for termination. Yeah, usually they have a 30-day hour. Besides cause we just have it for convenience and we'd have funding clauses in them too. Yeah. They then need to go to a one-year contract or there needs to be a provision that if they go up on the rate We can terminate 30 days Yep 30 day clause. I think all good contracts have a 30 day escape clause, don't they think I've heard that Okay, so we're gonna take no action on 14 b today. Thank you Okay, so we're gonna take no action on 14B today. Thank you 15A is executive session under Texas government code 551.0748 personal matters close meeting to deliberate the valuation of public officer or employee in the following positions Then kind of construction manager, then kind of director of human resources, then kind of director of public works engineering and then kind of veteran service officer With that we are in executive session. Thank you. Mr. Court is reconvened from executive session under item 15A. There will be no action. With that, we are adjourned. Everybody have a great day.