Good morning ladies and gentlemen. Denton County Commissioner's Court for Tuesday, December 16, 2008 is now in session. This morning our invocation will be given by James Wells, our auditor, and our pledges be led by Beth Fleming Director of Purchasingly Please Stand. we please stand. Right with me. I agree Heavenly Father we thank you so much for each new day you give us and especially for the days you give us at this time of year the time that you give us to pause and reflect on the gift of your son and saving grace that he brings to us and the holiday season and the reason to rejoice. We ask you to be with each of our elected officials here today and those that are, especially those that are serving us in Denton County and in Washington and in Austin. We thank you for these elected officials, we thank you for those that have served the county and the citizens of this county, given each even one of them guidance and your direction happen to do your will. Thank you also for the retirees that are being honored today and the ones that have given long service and in their own appropriate mode to the citizens. Be with each one of us today. God has, have us do your will, protect us from sin and Christ's name. Amen. I'm going to leave this to the flag of the United States of America. I'm going to consider a couple of those who stand for one nation under God, the individual who are the liberty and justice of all. I'm going to take X flag. I pledge allegiance to the Texas Ones of the Day under God for one nation under God. on the agenda. Thank you very much. Item one is for public input for items not listed on the agenda. There's any member of the public that would like to address commissioners court. We ask that you please complete a public comment form available from the aid to the court and we'd be glad to hear from you. I want to remind everyone that this time, please turn off your cell phones and pages. We have one public comment from this morning and we're very honored to have with us. Congressman Dr. Michael Burgess, welcome to come to the podium and he has a special presentation this morning, I believe. Thank you, Judge. And thank you for letting me be before the court this morning. I want to wish each of you a Merry Christmas. I hope you have a good end of the year and a prosperous new year. And of course, Judge, I'm reminded as I come here that I don't get here often enough, but today is with a special purpose. And I have a presentation for the Court and for Commissioner White. We're read into the congressional record about the conclusion of Commissioner White's service on the court. Of course, Commissioner White has dedicated many years of service to the area. We're all very grateful for her leadership. I knew Commissioner White when she was councilwoman White, when she served the Louisville City Council, and I was a doctorate Louisville hospital. And certainly she was known then for being outspoken, but for always being outspoken for doing the right thing. She's continued in that vein and we very, very much appreciate her being willing to give of her time and her talents to our area. In particular, I wanted to read from the proclamation which contains multiple where as is followed by a resolved but commissioner White and her dedication to transportation, her dedication has helped pave the way for numerous projects, increasing one from safety improvements along Highway 377 to providing needed funding for Farm Road 423, and partnering with local cities to secure funding for improvements on Farm Road 2181. When the Lewisville Lake Bridge project failed to get off, she got all parties back to the table to get the project moving again. And thanks to her efforts, that bridge is now being constructed and will soon help provide needed relief from traffic congestion. And I get tangible proof of that every week when I fly back home and I see the progress on the bridge over the lake. And it's I was thinking of commissioner White as I'm flying in. So her service goes far beyond what she's done on the court, what she's done on the Louisville Council. She's dedicated herself in many ways to many good works around the area. And it's with great honor that I deliver this morning, the remarks in the congressional record, just to make sure Cynthia White. Thank you so much for being with us this morning, no? Not only did he make the effort to come, but he came on icy roads, and we really appreciate that very much. Thank you so much. Congratulations, Commissioner. Well, yes, and I would like to say, I'm really impressed. I thought it was only the post of service, but it's also the congressman that come during the rain sleet and so. So thank you very much. Your words are very much appreciated. And I have enjoyed my service here in Denton County and I'm thankful for that opportunity to serve the citizens of Denton County. Thank you Dr. Burgess. You have no other to call them Dr. Burgess, Congressman Burgess. I say embole so we don't leave anything out. Okay. We have several retirees that are going to be here about 10 o'clock and we'll take that up later. We have some other guests with us this morning and I'd like to go at this time to item 14 D. 14 D is to adopt and approve resolutions and the interlocal agreements to participate in the tax increment reinvestment zones. Number one, in two, between town of Little Elm and Denton County is recommended by Commissioner precinct one. Commissioner, did you want to start this off? Sure, well as you know they've been here and made a presentation to Commissioner's Court I guess it's been a month or so ago and after hearing from court They did go back and rework the proposal That they're presenting to Commissioner's Court and I'm going to let them talk about it, but I do want to just focus on the fact that it is, and I know there's a lot of different feelings about that, certainly, Judge, we all know your feelings on these types of agreements, but what I'd like to focus on is the infrastructure that is going to be providing for the area that will benefit Not only in the area of little L But you know they have come north up to 380 and there is a lot of growth as we all know along the 380 corridor And it will provide some much needed infrastructure up in that corridor as well. So with that provides some much needed infrastructure up in that corridor as well. So with that, if I guess the mayor is going to speak and then Mr. Calderon, you're going to present the rest of it. Okay. Mayor Casner of Little Elm. Thank you for being here. Judge, good morning. I'm Frank Casner, Mayor of Little Elm. I know we have done a previous presentation here before the court. Just kind of a recap up there. Town Council voted last week to create both these zones after a year-long study of feasibility out there. One thing keeping in mind is a little over 91 percent of this land that we're talking about is raw land. It's not developed land out there. It's lacking the adequate infrastructure to allow development to occur. The county's incremental revenue will be limited on this to roadway improvements. The county projects to be financed by this are typical and consistent with those that you have previously approved in other tours out there. The town's incremental revenues and incremental sales tax will finance the majority of the projects cost in both of these zones out there. It is anticipated that approximately 150 jobs will be created from the commercial aspect of this project over the life of the zones. Additionally, the LL will likely add a transit stop to this project. With the bridge coming in to play out there, it will be able to link a little limb to the DCTA's A-Train across Bridge out there. We're looking forward to that too. You mentioned a bridge out there, and that's gonna, they're saying July of this year. Next year, okay, it's gonna be there. And that's, you look at it, that's just seven months away. I guess in the summarizing, you know, partnership with Denton County will only make this development effort more successful and also help it make it happen sooner. We appeal to you and respectfully request your support and your partnership in this. If you have any questions we have I have the line for it our kind of manager here and Bill called around. Okay should you have any questions? Well me or them? It was the court. Do you have questions from me or for the me? I have the questions about some of this could not have been put in the bond really speak to the issues to why it was not. Our firm was not involved in that on the town's behalf. But I would submit to you and to the members of the court that the improvements that are proposed here based on our last presentation have been in fact adjusted and made very specific to the kinds of things that the county would typically support. Based on just your overall operations, your general modus operandi. If you look at the budgets that have been retooled for each of the project plans and I believe copies of all of those documents have been circulated to the court. Basically the way it breaks down is that you've got based on today's information and I want to focus on that point for just a minute but based on today's information in zone number one, the county's burden when compared to the townburden is about one third to two thirds split. And I'm sorry, in zone number one it's actually 20% versus 80%. In zone number two it's about a one third to two thirds split in terms of the overall cost of infrastructure. But the important point to focus on is that these are based on today's numbers and today's understanding. Well over 90% of this land is vacant. It has no infrastructure. There are limited access based on some of the major thoroughfares that do service the parcels of land, but there's a significant need to add infrastructure to render the land available. In many ways it's very similar to the proposal that we brought to the court about six to seven weeks ago in Lewisville that the Huffine's group is developing. All of that land. It's all raw land and in this case it's about 91 is raw land. It's all raw land and in this case it's about 91% raw land. So very similar. There's also along the 423 corridor in zone number one a huge unknown in the amount of cost that would be incurred by the reinvestment zones to help with taking and converting that raw land into developable land because there's a significant chunk of it. Maybe 40% of one developers parcel is in the floodplain. And so there are many similarities here to things that I think this court has found significant comfort with. But at this point in time, based on what we know, since we don't know those costs, we've honed the interlocal proposals to focus specifically on the roadways. But as that information becomes available, basically what it's going to do, is it's ultimately going to ship to the town, a significantly higher burden, because once those costs are fleshed out, they will likely be detailed and added to the project plan for servicing by the reinvestment zones, but none of that burden would come back to this court unless the court were to agree to it. And so what you've got before you's a relatively limited participation overall in the grand scheme of things. And we do believe that with a partnership between the county and the town of Little Elm, that in fact what you'll see is an expedited development of these properties, which ultimately will do job creation, will do tax-based expansion, I think which will help all of the tax and jurisdictions, the school districts, the county, and the town a little bit of L. Let me just interject, Commissioner, you had questioned why it wasn't included in the bond, and Mayor or Mr. Langford, if you wanna reply to that you can, but from your perspective, from my perspective, I can tell you I got quite a few responses when I sent out a letter to all of my cities and certainly quite a few from Little Elm. And I was able to include several of those and primarily my rationale behind the ones that I included were those that were in and about the Louisville Lake Ridge FM720 project that entire 14 mile corridor because they do have some significant obstacles and that would be the lake and floodplain and so in fact you know a year and a half ago when we had those historical flooding that we had here in Denton County, Whit Road which is a feeder road off of 720 was actually closed down and that's one of the projects that was included in the bond program so even though I included a sizeable amount in the bond program for some even though I included a sizeable amount in the bond program for some of those projects, I certainly didn't include all of the projects that were submitted. But keep in mind, too, this is a town. And I know we've all experienced a lot of growth in our towns. But I think this is probably one of the biggest growths that we've experienced. When I took office in 2001, they were less than 5,000, and today they're close to 30,000. That's 25,000 in seven years, that's a lot of growth. So I don't know if you've got more to add to that, but that would be my perspective of why might not have been submitted. of why it might not have been submitted. The story and the song of our lives and government. At whatever level we are at. Anybody else have questions at this point in time? Commissioner Eams? I don't have as much of a question, because we all have our prog as far as choosing projects going to bond election but I just have a you know a fundamental question about allocating these future tax revenues off the expanded tax base dedicated solely back to here to this one project. It was my the same premise I have with the city it didn't you know and I have an urban planning background and and realize the need is there and it's it's it's a valid concern and a valid project and everything. But I don't know if we can contribute another $10 million or $10.4 million at this time. Because I believe if we're, I would like for didn't the County Commissioner's Court to have the flexibility that if we, we don't know what, what are the future economic climate is going to be. And what our tax rate is going to be and the many competing interests that we have to keep our budget going. And if we start incumbreing all our future growth from our commercial areas, that is going to be shifting that burden over to our, that's, there really is going to be a maid of somewhere and it's going to be made on the rooftops. And I think it's just a neater, cleaner process, which this court has done in 1999 and 2004 and most recently with overwhelming voter approval to participate with our cities, which we did, didn't county does participate with our cities. Just like you're asking us to do today, it's not, which we did, and county does participate with our cities. Just like you're asking us to do today, it's not, do we participate? It's what I said to the city, and it didn't. It's how we participate. And how do we participate? And I think participating with building road infrastructure that all the residents of the county can use, absolutely, that's a noble, worthy cause, and we should participate. How do we get to that point? I personally would prefer that we go through a process of through the bond elections and doing the public improvements. And it's kind of what Commissioner Mitchell also said during our discussion with the city of Ditton, projects are different. And you reference the Huff-Honz project, and I don't know if they're coming forward with that or not. But that one's still up in the air. That one's still hasn't been voted on to determine. And that's actually out in the flood plain, and that's developing a project that's undevelopable now. And partner with that purely adds, ads tax based in county. So not everything is apples to apples and I'll say each city is different to each other, different needs. And I'm not doubting the necessity of it. It's really how do we get there? And I appreciate you coming back as I was one who did ask questions about looking at it because I was not inclined for us to participate in the park and some other things. What you're needed, I mean we've got to have our open space and y'all have reduced that down par request to the certain roads. I think it's just a matter of how do we get there with our tax base? And I just have a real apprehension of looking at our 40 something cities and start taking all the future tax growth in the next 10, 20, 30 years, any growth in that and totally reinvesting it back in there. We don't know what other necessities or needs is candidates going to have. So those type of long term obligations make me a little leery. Mr. Martin, would you like to? I'll just share with everybody an email that I sent to Mr. Calderon when he emailed the updated version of the proposal. I'll just read it. I mean, emailed the updated version of the proposal. I'll just read it. I said, I don't want to sound unappreciative of the effort you put into this, meaning the revised version. But please understand, and in Commissioner's Court, when I was talking about county participation with the cities for road construction, I was referring to the roadwork we put into our bond election, actually bond elections. For example, the bond election we had in 2004 had in it for a little amount of $31 million. Now a portion of that was for road work that also benefited the colony in Frisco, but still the total was $31 million. The most recent bond election in 2008 had $11 million, $42,000 all dedicated to work. Little am requested and made a priority. When these funds are borrowed by the county to do this work, it will be paid off by county tax dollars. That's the potential for affecting our tax rate. I don't believe there's a way that the county can agree to reinvestment zones for multiple cities and pay off the $495 million bond election that was just voter approved last week to do the necessary work all over the county and continue to maintain our 23 cent tax rate. We must keep in mind that whether it's little number or anybody else making a request for a reinvestment zone as new value is added that does figure into our tax rate calculation and by agreeing to these reinvestment zones here again whether it's a little number anybody else that affects your tax rate and then you're essentially you do give the money to that city for whatever projects. I don't doubt at all the work needs to be done. I'm certainly aware of the growth in the area but I must respectfully turn down your request to participate today. Is there anybody else that would like to add Commissioner Hweigh your way it was flashing again? Did you wish to speak again? Yeah, I was going to, I mean, I certainly understand your position. You've been very consistent on that over the years. I would say that the court, and certainly every, as Commissioner Ease said, every project is unique. I think this is one of the more conservative ones that has been presented to commissioners court and certainly is very similar to one that was just recently passed and there were two before that that were passed in Lewisville and in Flower Mound that were actually probably considerably more in terms of the dollars that they're going to realize over the years and what they will go for and what that entails. But I can respect where people are coming from and that's I believe that this is a very viable project. As I said, I think it's very conservative and when we're talking about infrastructure, certainly we do what we can through the bond, but this is one more way of helping. And not only that, it is, we are experiencing some difficult economic times and this is going to be spurring economic development and so there's going to be more growth out there. So with that I would move that we would adopt and improve the resolutions and the interlocal agreements to participate in the little home tours. the comments. Hearing none all in favor of the motion please say aye. Opposed? In a name, motion fails 3 to 2. Thank you for being here this morning. Okay. Members, let's go to item two, which is the consent agenda. Are there any items on the consent agenda that you need to pull for discussion or consideration? Or do we have a motion for approval? Motion by Commissioner Marchance, seconded by Commissioner Eads. On favor, please be aye. Aye. Aye. Oppositing. Motion does carry. Our consent agenda today consists of approval of the order making appointments. in favor please aye. Aye. Aye. Opposed? Aye. Aye. Opposed? Aye. Aye. Opposed? Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. Aye. 1, promotion and post adjudication, a new hire and post adjudication and a rehired road bridge east. 2B is approval of the Intra Departmental Transfers to see as a award, approval of award of bid for amateur radio enhancement project bid number 05081904 to hand radio outlet. 2D is approval of renewal contract for printing. This is checks, forms, and books. Bed number 11071866 to American Solutions for Business. 2E is approval of specifications and authority to advertise for a fish trap road construction. Bed number 12081948 to F is approval of the appointment of Nancy Furchhal. I believe that's how you can answer name for the Child Protection Services Board. And let's go to 5A, which is approval of the bill report payments from CSCD, Community Corrections, TAP, shares training, shares forfeiture, VIT interest, check fee, DHA check fee, and DA forfeiture funds are presented for recording purposes only in morning James Wells. Morning, Judge and commissioners, I ask approval bill report with the six deletions and two additions that are noted on separate page. The additions are just adding the payment for a settlement on for damage settlement that was approved last week by Commissioner's Court, trying to get that expedited and in a scheduled debt service payment also on our 2002 tax notes. Our six deletions are a couple of processing errors and then some we've been asked to hold by the department. That's all corrections I have. Thank you. Do you have questions from members of the board? Do we have a motion for approval? Motion by Commissioner Marchance. Seconded by Commissioner White. All in favor, please say aye. Aye. Opposed to the name? Motion does carries. Six a is approval of the use of excess 2005 certificates of obligation and 2004 tax notes for security door upgrades in the county jail. Motion by Commissioner Mitchell. Seconded by Commissioner Marchand. Excuse me, Judge, I'm sorry. We do have a change to that if I could just state you real quick. The new amount is 401,750. So we are asking for a change in the 2004 tax notes to go from 165 149 to 185 618. Those funds are available and will totally cover the project. Thank you. We have a motion in the second. Are there further questions or comments? Hearing none, on favor please say aye. Aye. Opposed to any? Motion does carry. 6B is approval of donation of AQUA software license and training from Denko 9-1-1 District. Motion by Commissioner Mitchell. Seconded by Commissioner Eads. Questions? All in favor, please say aye. Aye. Opposed, aye. Motion carries. 6C is approval of change order number one for the amount of $4,800 to IMAX technology for the Chronos workforce time keeper system. Somebody just give me an explanation of what that change order was. It was the addition of. It has to do with some policy changes to holiday time. It's due to some policy changes to holiday time and how it would apply in the system. Just the holiday time it was a bad and the other people to be able to. It's not the additional license fees. No. At the beginning of the holiday time. No. Not the bidding. So, the follow-up they got. Okay. All right. Do we have a motion for approval? Motion by Commissioner Margent. Seconded by Commissioner Eads. Are there further questions? Your none on the favor, please say aye. Aye. Opposed, aye. Motion carries. Foreign favor, one opposed. 60 is approval of exemption from bidding for a sole source purchase and upgraded door control panels from Willow products company incorporated according to the provisions of section 262.024A7A of the local government code. Chair will move for approval. Seconded by Commissioner Eads, questions. Yeah. And I believe that you sent me the warranty question that I had. Was that one year parts labor? Is that what it was? OK. Thank you. Any other questions? Your none on favor. Please say aye. Aye. Opposed to the name? Motion does carry. 7A is approval. Budget amendment request 100340 to increase revenues and allocate expenditures for the Texas Parks and Wildlife National Recreational Trails Grant for the construction of a parking lot for fiscal year 2009 for road and bridge precinct 4 and they amount of $45,470. Yes, members, if you recall, this is part of our... I'm an 18-the-questionary and community over there that will lose full lake on the west side of the lake. And we did have that grant, if you're reconvened, it takes us a while off, so this is just moving it into our 2009 budget. I'll move for approval. Thank you. We have a motion by Commissioner E budget. I'll move for approval. Thank you. We have a motion by Commissioner Eans. Seconded by Commissioner Mitchell. Other questions? Hearing none, all in favor, please say aye. Aye. Opposed to the name. Motion does carry. 7B is approval of Budget Amendment quest 100350 to transfer funds from non-departmental lawsuit settlement contingency to the lawsuit settlement line item in the amount of $11,500. Chair, I move for approval. Seconded by Commissioner White. Are there questions? Any none? I favor please say aye. Aye opposed? In name? Motion does carry. 7C is approval of Budget Amendment of Quest 100360 to transfer funds from the capital replacement contingency fund to computer software for the chronos time sheet application in the amount of $4,800 Motion by commissioner Ead seconded by commissioner marchand questions all in favor please say aye I oppose the name? Motion carries four in favor, one opposed. 8A is approved of revisions to the 2008 flexible benefits plan document. We'll call on any Phillips. Thank you, judge and commissioners. This morning I'm asking you to approve some changes to the flexible plan document for 2008. The changes are the grace period. The plan year stays the same January 1 through December 31, but there is a grace period for expenses incurred that would be eligible expenses through March 15th. Also, there's a revision that would comply with the Heart Act. Some of you may know this is the Hearing Heroes' Earnings Assistance and Relief Tax Act of 2008, and that relates to employees who are called to active duty. The provision here has to do with people who are called the active duty who are currently enrolled in a flexible spending account for medical expenses. And the act allows them to immediately take that money out if they choose to. That would be an exception to the rule for everybody else and the law that the money stays in until they expense it. There are revisions for things, the potential wellness program in the future. It has no impact to us at this time, because we don't have any money that the county's putting into flexible spending accounts. There's no financial impact, and there's really no operational impact because the PEC doesn't have its own wellness program right now. But the revisions are being made to prepare for that eventuality. And other revisions are being made just to comply with changes in IRS code, the definition of a qualifying child, how to deal with flex over payments, and updating the plan to reflect that under U-SERA individuals can qualified individuals can take COBA up to 24 months. And so there should say there is the financial impact or calculable one that we're expecting, financial impact from these revisions and we're asking approval today. Thank you. Commissioner Mitchell. Go to the potential wellness program again. What is it? The PEMBC has been looking at the possibility of implementing a wellness program for all the organizations involved that has not materialized at this point. But one of the revisions would allow for that, should that happen in future years? They would be paying for their own. Well, there's no plan to explain or say how anything would be paid for. That would be something that would have to come back before you. But obviously that would have. The discussion about how I would be run. I'm sorry. Obviously you've had some discussion about if they'd be paid. You haven't had any discussion. We've not had discussion about what a plan would look like. How it would be run anything. Then why would we put it in here if we have a discuss that? I'm going respectfully as that number three be taken out so I can vote on the risk because I'm not vote number three. I don't have a problem with that. I mean to me, I think as I understand it basically is just preparing structurally to enable that. I understand that there has to be a been vote on separately. I mean obviously anything that would come back would have to come back before court but we can vote on it separately. I asked for it to be voted on separate. We voted on separate. Okay, any other questions or comments? Do you wanna make a motion? I move to approve items. One, two, four, and five, six, seven. We have a motion by Commissioner Mitchell, seconded by Commissioner White. Any further comments or questions? Hearing none, all in favor, please say aye. Aye. Opposed to the name? Motion goes carry. No number three. Yes. May I have a motion by Commissioner White, seconded by Commissioner Mitchell to approve number three? Other? I'm sorry. Seconded by Commissioner March and clarification there. We don't know what. All this does is it allows for a potential wellness program at a later date but it doesn't. I'll leave the county. You have to come back to Commissioner's Court to determine what that's going to be. Judge, I don't recall any discussion about what that one this program would look like. Do you? No. And why is it here? I asked that question again. Well, it puts it in the policy that somebody has had some discussion on it. It wouldn't be in our board meetings. The only discussion was that someday we may want to do this. That's really been the extent of the discussion. I guess whether they call this an legislature or like a placeholder in your policies or whatever, it's really not going to be urshattering one way or another if we do or don't pass us. So anything that's done in this regard is going to have to come back to this body. But we have a motion and a second is a further discussion. Here none on favor please say aye. Aye. Opposed, Cine? Aye. Motion carries four in favor, one opposed. Okay. I know it's not quite 10 o'clock, but we have one of our retirees and some family members have been waiting patiently. So I'd like to be considered of their time and go to item number three. Constable Jim Davis, would you please come up to the podium? come up to the podium. We have a resolution here and I'd like to read it at this time. It's a resolution honoring James Christian Davis for 20 years of service to Denton County. The Denton County Commission's Court, Denton County, Texas during a regular session on the 16th day of December 2008, considered the following resolution. Whereas Denton County Commissioner's Court is pleased to join fellow Denton County employees and citizens in recognizing James Christian, Jim Davis, for his notable contributions to Denton County law enforcement. And whereas Jim Davis started his law enforcement career at the Carrot and Police Department as a reserve, police officer from 1977 to 1985, and joined the Denton County Sheriff's Office as a reserve deputy from 1985 to 1988. And whereas Jim Davis is work for Denton County and law enforcement capacity for a period of 20 consecutive years beginning in 1988, and whereas Jim Davis came to the position of Constable after being appointed to serve an unexpired term of Constable precinct 3 on June 27, 1988, and was elected to the position of a regular term that commenced January 1, 1989. And whereas Jim Davis was elected to the newly formed precinct 6th Constable office and started that term on January 1, 1993, and where's Jim Davis has worked with the North Texas Justice of the Peace and Constables Association for the past 19 years to help improve training for all justices, constables, and their associated staffs, and is a past president of that association, and where's Jim Davis has shown leadership, loyalty, and professionalism to both his employees and citizens of Denton County. Now therefore, it resolved that the Denton County Commission's Court, Denton County, Texas, does hereby recognize, congratulate and commend the service of James Christian Davis. For his 20 years of dedication to Denton County, the Denton County Commission's Court for the wishes the very best to consult with Jim Davis as he pursues his future endeavors. The chair will move her approval. Seconded by Commissioner Marchand. All in favor, please say aye. Aye. Opposed, say nay. Motion does carry unanimously. Congratulations. Thank you very much. Appreciate it. Appreciate it. Appreciate it. Applause. We've got a long time. I think you need to bring your wife up here and introduce her. Come on up here. I'm a bad for nail. Now, there's a lady that needs applause. She's put up with me for all these years. She's put up with me for all these years. So she's. Congratulations to both of you and thank you for your service to Dint and County. Is this retirement or are you going on another thing? I'm gonna do other things I'm a last-and-a-actioner and I'm gonna be doing some options We're gonna be moving to Kaufman County where I have some property and I plan on teaching and some of these sheriff's academies In that area good, so I'm not gonna be sitting still unfortunately And I've already gotten involved in knowing who some of the political people are down there. Commissioner Martin. Yeah, Jim, I'm a gospel Davis. We're still. You and I started out at precinct six and I depended upon you a lot when I was a baby judge. And I want to thank you so much for personally for everything that you helped me with and continue to help me with through the times that I was there as a JP protecting defending and I want to personally and publicly thank you not only for your friendship but for the professional way that you did your job and how you represented it in county and Which nothing but the very best for you. Thank you I expect an invitation out to some quiet summer evening in East Texas and a barbecue at your new place We're about ready to do that. We have a I have a back porch that's 24 feet wide and 66 feet long. That's my back porch. So I see nothing but tree sitting on my back porch. Congratulations for 20 years of service and thank you for your friendship. Thank you very much. Appreciate it. Thank you. Thank you for being here this morning. Thank you for being here this morning. Oh, I need to add Constable Davis. Amy Phillips has resolutions prepared by my recrown over also. Go ahead. We want to present to you too. Amy, why don't you go ahead and read it? Into the record. Oh, need your glasses. I surprised her. Sorry about that. I didn't know. Okay, it says whereas Jim Davis is retiring as Denton County Council of Precinct 6 in 2008, drawing to a close and notable career in law enforcement that has spanned more than three decades. And whereas Mr. Davis began his exemplary 31 year career by serving as Reserve Patrol Officer with the Carrollton Police Department from 1977 to 1985. He then worked as a reserve deputy with the Denton County Sheriff's Office from 1985 to 1988. And for 20 years, this notable Texan has served the people of Denton County as a constable. He was first appointed to serve the unexpired term of Pracing Three Constable in June 1988. The following year, he won election to a full term in precinct three and followed with service in a newly created precinct after 1993. And whereas constable Davis helped to improve the training of justice of the peace and constables as a member of the North Texas Justices of the Peace and Constable's Association, he has also served as president of that organization. And whereas this outstanding officer's dedication, professionalism and integrity have greatly benefited the citizens of Denton County, and he may indeed reflect with great pride on a career well spent as he prepares to embark on the next exciting chapter of his life. Now therefore be it resolved that Jim Davis be congratulated on his retirement as Denton County Council of Pracing Six and that he be extended sincere best wishes for continued success and happiness. Thank you very much. Thank you very much. We have one of our other, we have any of our other retirees here? Your name please. Thank you Kelly. I want to be considered a everybody's time here now. Instead of making you sit and wait, Kelly, if you come up to the podium, please. You know, there's one problem with being county judge and having 1500 employees. 1500 people know me, but I'm sorry, I don't know all 1500, so I apologize for that. And I'd like to read this resolution. Resolution honoring Kelly Smith for 24 years of a department dedicated service to Denton County. Commissioner Court Denton County, Texas during regular session on the 16th of December 2008 considered the following resolution. Whereas Kelly Smith was hired by the Denton County District Clerk's Office part time on her 17th birthday on May 5th, 1983 and whereas Kelly Smith became a full-time employee of the District Clerk's Office on June 14th, 1984 and whereas Kelly Smith went on to become the Court Coordinator for the 16th District Court on June 14th, 1984 where she served under three different District Court judges until she began working as a court coordinator in the 390th district court, where she worked for a fourth district court judge. Whereas Kelly Smith, a dedicated Denton County employee, has provided a high level of quality public service to the citizens of Denton County, and particularly the Justice System. Kelly Smith has dedicated herself to pursuing excellence in the judicial process and has set the bar at the highest possible level of professionalism, efficiency and compassion. And whereas Kelly Smith evokes, Kelly Smith's evulsion to assisting Denton County is greatly appreciated and respected by her fellow colleagues of the Denton County Texas. Now therefore, be it resolved the Denton County Commissioner's Court, Denton County Texas does hereby support, congratulate, and commend the service of Kelly Smith as court coordinator for the 393rd Judicial District Court for using her skill, judgment, experience, and compassion to create and maintain unwavering professionalism in her years of dedicated service to Denton County, the chair will move for approval. Seconded by Commissioner Mitchell. All in favor please say aye. Aye. Opposite aye. Motion does carry. Thank you very much Kelly. Would you like to introduce your family? You don't want to be introduced? We're going to do it anyway. Kelly, if you'd speak into the microphone, introduce your family please. This is my mother Cheryl Douglas and my grandmother, Jennifer Douglas. Thank you for being here this morning. I know you're very proud of Kelly. We appreciate her very much. You bet. Did we have one? Kelly, you're. I'm sorry. Your resolution from the state is forthcoming. We haven't received it yet. Okay. I have a crown over. Tries to do one for all of our retirees. And that one hasn't quite caught up yet. But there's one coming. Thank you again. Happy retirement. Okay. All right. Yeah. We need you all to be in the final. Amy, Amy, the didn't kind of commissioners court resolutions. Do you get those to them later? Are you okay? All right. After the court signs and barbed-brother frames them and we get them to them. Okay. LA, you'll be getting a framed copy of that resolution. Thank you. Okay. I'm believes Sue W world bridge right here. Oh Good morning I'll read the resolution this is a resolution honoring Sue Woolridge for 10 years of dedicated service to Denton County. Commissioners Court Denton County, Texas during the regular session on December 16, 2008 consider the following resolution. Whereas Sue Woolridge was hired by the District Attorney's Office on September 2, 1998. Whereas Sue Woolridge started out as an administrative assistant manager, a family-vowlens division of the District Attorney's Office from September 1998 through September 2005. In October 2005, became director of victim services until retirement in December 2008. And whereas Sue Woolridge, a dedicated Dittinc County employee, has provided a high level of quality public service to victims of violent crimes in the community. Sue Woolridge dedicated herself to bringing awareness to crime victims rights. Sue Woolridge was a beacon of light and hope to victims and guided them through the criminal justice system with compassion. Whereas, Woolridge devotion to assisting Denton County is greatly appreciated and respected by her fellow colleagues of Denton County, Texas. Now, therefore, it resolved that Denton County Commissioner's Court, Denton County, Texas does hereby support, congratulate and commend the services to Woolridge. As director of victim services, translating her knowledge, abilities, and carrying and compassion for others into practical governance. And for her years of dedicated service to Denton County. The chair will move for approval. Seconded by Commissioner Marchand. On favor please say aye. Aye. Opposed to say aye. Motion does carry unanimously. Congratulations. Applause. I'd like to introduce the picture taker back here. How, yes. My husband Ronnie Wolffich. Nice to meet you, Ron, and congratulations, and we thank you for all the years of dedicated service of your wife Now she can go to work You may want to come back soon Do you want to read this? This is another resolution from state representative Meyer crown over Whereas Su Woolridge is retiring as director of Victim Services for Denton County in December 2008, and her retirement provides a fitting opportunity to honor her. And whereas hired in 1998, Ms. Woolridge first served as an Administrative Assistant and Manager of the Family Violence Division of the District Attorney's Office. In October 2005, she took on the diverse responsibilities of the directors of the county's victim services department, a role in which she has truly excelled. And whereas in addition to seamlessly managing the administrative aspects of her job, this compassionate public servant has brought to the forefront a greater awareness of crime victims' rights, earning the lasting respect and appreciation of countless people who have been faced with challenges of negotiating the criminal justice system. And whereas Sue Wildridge has demonstrated exemplary diligence and skill in her professional endeavors and her deep commitment to her fellow Texans is truly noteworthy. Now therefore be it resolved that Sue Wildridge be congratulated on the occasion of her retirement as director of victim services for Denton County and that she be extended sincere best wishes for continued success and happiness. Congratulations. Applause. And there is cake upstairs. I mean, and there is a cake upstairs. So don't run off. Why would you say the corner piece for Commissioner White? Everything will be okay. We have a couple more on the rees that are retiring but they're not quite here yet so let's take care of some other business and we will come back. 8B is going to be pulled, there will be no action on 8B today. 8C is to approve, to exercise the option to exempt the self-funded portion of the Denkundi Public Employee Benefits Cooperative Plan from the requirements of Title 27 of the Public Health Service Act. Amy, perhaps we need a little explanation on this. Certainly. All of us are aware of requirements under the HIPAA Act. And Denton County complies with most of the requirements in the HIPAA Act, but we do have the ability as a self-funded local government plan to exempt ourselves or exclude ourselves from some of the provisions under the Act. And the ones that we have the opportunity to exempt ourselves from, there are six of them and we actually comply with four of the six completely. One of the ones that we do take an exemption from is the limitations on pre-existing conditions exclusion and we do in our HMO plan comply with that. But in our self-funded plans, we actually have a small pre-existing condition clause that looks back for treatment three months and we only pay up to $1,500 in the first year for pre-existing condition. We're asking that we continue that exclusion for 2009. Under mental health benefits, in order to comply, we would have to have the same financial limitations or maximums on mental health benefits as we have four physical health benefits. And under serious health conditions, we do that. It's only with our minor mental health conditions that we do not. And we're asking that we continue to handle that the way we have in the past. With all of the other provisions, we comply completely. And we are asking for approval of this document today. We're still exempting number six. Pardon me? We're still exempting number six. We're exempting number five. Number one and number five, we comply with number two, three, four, and six. I with it, are you following the PEPBC program that you have a right to exempt? Actually the PEPBC program complies with the law on all of these provisions except for number one and number five. Okay. The option to exempt us. We're asking to exempt from number one and number one. Well, we're asking to exempt from all of them. We voluntarily comply with the others. Thank you for making me clarify that. Other other questions or comments? In none do we have a motion to approve? Motion by commission march and chair will second. Hearing no questions, all in favor, please say aye. Aye opposed, aye. Aye. Motion carries, four in favor please say aye. Aye. Opposed, Cine? Aye. Motion carries. Foreign favor, one opposed. Did your family member just arrive? No, I didn't want to. I wanted to give you an opportunity to introduce if it was another family member. Okay, we're going to come back to 10 a after completion of our regular agenda. Let's go to item 13a which is approval disaster declaration and executive order as a mitigation effort to reduce the threat of wildfires through the drought conditions. We have rolling with us this morning. Let me just take just a minute here. I guess this had probably no appropriate under item 1 public comment. You know, when we have weather conditions like we have this morning, I want to take a moment to thank the Sheriff's Department's patrol officers that are out there checking out or roads rolling here. What time are you up this morning? About four? About 330. About 330. What's harder to predict than the weather? The only thing I can think that's harder to predict is what the roads are going to be like. But I want to take a moment to thank the Sheriff's Patrol officers that are out there and reporting in, and certainly rolling that's out there. Giving this report and acknowledge Frank Phillips who called me this morning a little after five to give me a report so that we can make a decision as to whether or not he's going to going to be open closed, open late, what it is, and it's really a guessing game because, as you all know, the northern part of the county can be totally different than the southern part of the county and that's kind of what we experienced today. But it isn't just a wild guess. We have people like Roland that are out there actually driving the roads and trying to make the best decision to keep our employees safe. And so it is with great consideration that we come to the conclusion as to whether or not we should be open or have a late opening and everybody's safety is first and foremost in our mind. But I wanted to take just a moment and thank you for that. And we make an effort to get this decision made early enough so that we can have it to all the news outlets so they can have it on their six o'clock news. And I remember when my children were a little and you know you have the responsibility of getting your little ones to a babysitter or to grandma's house or to school if they're opening late things like that. It can be stressful and if you can leave that little one snuggled in bed and not have to go through that exercise it's a good thing so Rowland we appreciate you and certainly the other folks that are out there driving the roads. All right now on to 13a concerning the disaster declaration. What's our situation, Rowan? Judge, Commissioner's Court, one of the things that did want to bring to you, once again Tis the season to bring a burn ban to the court. With the conditions that have happened in the last week, we've definitely had significant freeze after freeze. So the vegetation which we refer to as one of our fuels being grasses, small twigs, anything that was remaining green is now gone into dormant stage. I haven't received a report of, but I know that last night we were out with pilot point and Aubrey on fire that occurred out on Aldo Ball and they were out there this morning. What that means is that a lot of the fuels that are out there are so dry that we're literally out there digging them up, spraying water, and packing them in mud. And they're still, we're having to find that fuel that is still on fire and it is reigniting. And last week we had, we discussed and had put off the burn ban in hopes that we would receive enough precipitation this week. Unfortunately, predictions from not only the Texas Forest Service, but the US Forest Service place us at a point in time that we are coming to you and asking that Commissioner's Court consider placing a burn ban in effect for Denton County based on the conditions that we currently have, and based on the models and predictions of what the future holds for us. I can tell you that we do not look at this request lightly, because we do know that it impacts the county as a whole, and we hold out as long as we possibly can, until we reach the point, that we believe that there is an imminent threat and that if we can stop a potential catastrophic incident from occurring, we're not only saving tax dollars but we're potentially saving lives and property that are out there. Thank you. Do we have questions from members of court? lives and property that are out there. Thank you. Do we have questions from members of court? This item will be renewed every week. That's correct, sir. I have a motion for approval by Commissioner Ead, seconded by Commissioner Mitchell. Are there questions? You're none all in favor, please say aye. Aye. Opposed? Say name. Motion does carry. Thank you, Rowan. Amy, do we know if our other retirees are coming or not? This last year. I don't know. 30% for five years. I don't know. Let's take up just a couple more items of business and then, um, like, go up, shake a couple hands and have some cake with our retirees up in the 1896 room just briefly and we'll come back down. Okay. Let's go to item 13b which is approval of the request for $50,000 from the Emergency Shelter Grant Program by the Salvation Army Denton Corps. And we'll call on Commissioner White. Members, I think you have the information. Essentially, this is the Salvation Army used to go through the City of Denton and participate with the City of Denton. We are just serving as a pass through organization. There's no obligation of the county. Financial impact to the county. Any other questions I would move for approval? We have a motion for approval by Commissioner White, seconded by Commissioner Marchant. Other questions? On favor, please say aye. Aye. Aye. Opposed to name? Motion does carry. We told the retirees 10 o'clock, right? Yes, it's a ton item. I'm saying they would have been told 10 o'clock. Right. I'm going to take about a five minute break. I'd like to vote stairs just briefly and shake hands with our retiree and wish them well and seriously, let's plan on being back here in 10 minutes flat. Okay. I know we're having a good time and everybody's in the Christmas spirit but we've got some more work to do here Okay, we are on item 14 a which is approval of the Ambulance Service Agreements between Dyncannie, Texas and one the City of Corinth to Justin volunteer fire department Ambulance service and three the town of Prosper is recommended by the Director of Emergency Services. Chair, I'll move for approval. Second. Seconded by Commissioner Mitchell. On favor, please say aye. Aye. Opposed, sen. Motion carries. 14b is approval of the Fire Protection Service Agreements between Denton County, Texas, and one, the City of Corn, two, the town of Prosper is recommended by the Director of Emergency Services. Motion by Commissioner Mitchell. Second. Seconded by Commissioner White. All in favor, please say aye. Aye. Aye. Opposed,聲ee? Commission does carry. 14C is approval of the Interlocal Cooperation Agreement between Denton County, Texas and City of Denton, Texas for road improvements and installation of a traffic signal at the intersection of FM 2181 and the Old Alton Road located within the municipal limits of the City of Denton, Texas with the county agreeing to contribute an estimated amount of $750,000 with funding to come from Commissioner precinct 1-Triple 4 discretionary funds. This is a long time coming and it's going to benefit a lot of people even in your precinct commissioner needs. So with that I'm approval. It's not just for traffic light is it? Hard? Not just for traffic light. Oh no there's pavement that has to be. There's paving also. Okay. Yeah. That's an expensive traffic light. That's what expensive breath. We have a motion by Commissioner White, seconded by Commissioner March and other questions or comments. Hearing none all in favor, please say aye. Aye. Opposed to name. Motion does carry 14D. We've already done. 14E is approval of an order setting a date and time to consider a public hearing to consider the placement of a stop sign at the intersection of Hansa Road and Hopkins Road to be held on January 6, 2009 at 9.00. Before the Denton County Commission's court. This is an example of something we did a few weeks ago. We have increased traffic out in this part of the county and so we believe for safety measures to be prudent to install stop signs. So I'll move for approval for that date. Motion by Commissioner Ead, seconded by Commissioner Mitchell. Are there questions? Your none all in favor, please say aye. Aye. Opposed to the name? Motion does carry. 14 F is approval of supplement agreement number four to the contract between Dyncanate Texas and Freeze and Nichols Incorporated for costs associated with the redesign of the drainage system plus I'm sorry plan changes, insight conditions increases in the number of bridges required expansion of the project timeline and changes to the general complexity of the project for the additional amount of $707,875 for a total contract amount of $1,833,193.50. It was funding to come from Commissioner Prissing to Trip 04 FM 544 capacity project. This is auditor number 76739-90-10. Motion by Commissioner Marchant. Second. Second by Commissioner Mitchell. No, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no tax abatement agreement between Denton County Texas and teachers, insurance and annuity association of America as recommended by County Commissioner precinct three, Recall and Commissioner Mitchell. This is a tax abatement for the Texas teachers, insurance annuity association, formerly known as TIAA and is one of the ones, the tax abatement that we had last year and coming forward this year thanks to the DA's department for 30% agreement for five years and I move approval. We have a motion by Commissioner Mitchell, hold it just a minute. We have a motion by Commissioner Mitchell, second and by Commissioner Merchant. James Wells, did you have a question? The question is appropriate. Just as far as the ongoing management of this, we clarify what exactly is, what property is subject to this abatement? Only the property owned by the company, not the actual building they'll be leasing. They'll be leasing to others, no, the property owned by the company. It's what might be. They'll be in a lease to building. They'll be inasing. They'll be leasing to others, no. The property owned by the company. It's what might be. They'll be in a leased building. They'll be in a leased building. But only the actual, their actual business property, taxable business property they put in that building. Right. Not all the other ones in the rail. But not the structure there, Ian. That's when it's my question. It's for the leased and that they're all actually in. I mean, wait, I'm ready to work that instead of the owner of the property, some of you may have seen. It's on a basis on the public property. Can you mind some? For the total property that it's actually the lease space holder. Right? Is that right? Not the physical property of the building but so let's say if you had the the physical address is 4800 North Pole Avenue lease space a mm-hmm that it would be property of the lease space a out of the lease space a areas But not the actual physical structure that's owned by a lease hold the landlord Just the taxable property in that that's this company puts inside it The tenant which is CIA I think we did one for me with Sally Beauty Control our I think we did one for me with Sally Beauty Control or abuse supplies Beauty control same way beauty control not Sally beauty control Emerger you may have emerged in the mountains Thank you Are there further questions or comments I? Can't pass up another. I know you can. It's okay. One comment is a real big surprise to anybody that I won't be supporting the adoption of the resolution for this or any other tax abatement. I'll just let it go at that today. Any other questions or comments? I'll take that. Any none? All in favor, please say aye. Aye. Opposed? Say nay. Named. Motion carries. Forward, favor, one opposed. 14-H is approval to renew the service agreement for broadband satellite connection between the Etnk County, Texas and track star systems incorporated for the second additional one year term is recommended by the director of emergency services. Chair I move for approval. Seconded by Commissioner Eads, other questions? No, in favor please say aye. Aye. Opposed? Say name? Motion does carry. 14i is approval of amendment 4 to the records management and imaging service agreement between Denton County and affiliated computer services. Incorporated ACS is recommended by the kind of clerk of Denton County. We have our kind of clerk here if there's questions. Do we have a motion for approval? Motion by Commissioner Eads. Seconded by Commissioner Marchand other questions. No questions for you. All in favor please say aye. Aye. Opposed? Sainte motion is carried. Thank you. I hope you all have a Merry Christmas but I'll see you. Two, four. Okay, hold on just a second here. Yeah. Let's go to 10 a which is Commissioner Court workshop for the discussion of proposed revisions to the Den County on site sewage facility order. We'll start with Bennett and I'm sure Bing Burton's going to talk to us too. Good morning, Bennett. Thank you, Judge. Thank you, commissioners. This item was requested by the Judge to be placed here. This original topic was brought up by the Sub-Vision Review Committee, but the discussion was short for two main reasons. One, the rules governing, the septic tank rules and lot sizes are not in the subdivision ordinance, so therefore the committee couldn't take any action if they wanted to. They're in the environmental health regulations. And second, only a couple of members of the committee even voiced any concern with it. The rest of them said the lot sizes in the county right now are okay for their business plans. So the main thing that was discussed in the committee was for the commissioners' courts to change their requirements. Then a public hearing would have to be held. to change their requirements, then a public hearing would have to be held. Any proposed changes would have to be submitted to the Texas Commission on Environmental Quality for approval, and then once they approve the proposed changes, then they would go into effect. At this time, I know Dr. Burton has a presentation and is available to answer questions, and I'm available to. Why would we need to change it? Well, I requested it be. It changed it to, like what other counties are doing. Right now, the request was to change the lot sizes to the state minimums. We require more. One a half acre and one acre. Our lot sizes are one acre and two acres so didn't county's twice the state mental we could revise it to have a higher density why would we want to do that is my same question I'm a question. Well, this is something that I talk to different people about from time to time. It affects development. It affects a lot of things. Let's first hear from Dr. Burton and then we'll go on to some other things. Now I want everybody to realize we're not making decisions today. This is just the workshop on the issue. If we do make a decision, it would be whether or not we wish to schedule a public hearing, which we would ask legal to put on the agenda for next week, if we ultimately make that decision. Should be in the back. Frank. Oh, here it is. It is a no computer. Oh, hey. I got a lot better chance now. Excuse me. Being well you're are you ready? We're close. I'll just- I'll be wearing the screens on. Well you're working on that. I want to go back to 3a. 3a is the resolutions for our retirees. We actually have three more that didn't for our retirees. We actually have three more that didn't show up this morning. I don't know if they got stuck on icy roads or they're just shy, but I need to formally conclude that agenda item and do want to finish these resolutions. First one is for Diane Johnson. This is a resolution honoring Diane Johnson for 10 years of service to Dent these resolutions. First one is for Diane Johnson. This is a resolution honoring Diane Johnson for 10 years of service to Denton County. Denton County Commission's Court, during regular session on the 16th day of December 2008, considered the following resolution, whereas Denton County Commission's Court is pleased to join. Fellow Denton County employees and citizens in recognizing Diane, E. Johnson, for her notable contribution to the Den County Tax Assessor Collector. Whereas Diane Johnson has been with the Tax Assessor Collector since 1998 and in her 10 years of the county has gone from being a deputy clerk to supervisor in the motor vehicle section. Whereas Diane Johnson came to Den County after working at the Dallas County Tax Assessor's Office for 18 years, giving her a total of 28 years of experience. And whereas Diane Johnson has been married to her husband, Ben Johnson, for 22 years and lives near pilot point Texas, with her two Boston Terrier Bulldogs. And whereas Diane Johnson's hobbies are gardening, cooking, working juke saw puzzles, and reading mystery books, watching old black and white movies and crocheting. Whereas Diane Johnson has been the Sunday School teacher for 32 years and plans on spending more time doing church activities and volunteering her time to help others. Now therefore be it resolved, Den County Commission's Court, Den County Texas, this hereby recognize, congratulate and commend the service of Diane E. Johnson for her 10 years of dedication to Den County. Den County Commission's Court for the wishes of the very best to Diane Johnson issue pursues her future endeavors to cheer and move for approval. Seconded by Commissioner Eans, all in favor please say aye. Aye, opposed to the name. Motion does carry unanimously. I also had the pleasure of hiring Diane 10 years ago. We will miss her. Another one that I'd like to do is for resolution honoring Andrew L. Lawrence for 21 years of service to Denton County, whereas Sergeant Andrew L. Lawrence detention officer, the Denton County Sheriff's Office is retiring on December 31, 2008 after 21 year career and law enforcement. And whereas during all the time of the said service with the Sheriff's Office, Sergeant Andrew L Lawrence has faithfully and diligently discharged the duties and obligations of the office entrusted to him, worked well with his co-workers and conducted himself in a mature and responsible manner with vigilance for the safety and security of inmates and co-workers. And whereas the citizens of Denton County are grateful to Sergeant Andrew L Lawrence for answering the call to service for his commitment to duty and for the service he has rendered during his law enforcement career and tenure as detention officer for the Denton County Sheriff's Office. Now therefore, it resolved that the citizens of Denton County through their duly elected representatives on the commissioner's court and the Denton County Sheriff's Office do hereby extend his Sergeant Andrew L. Lawrence our sincere grateful appreciation for his dedicated service on his well earned retirement and our best wishes to him and his family for continued success, happiness and good health and all the years to come. The Gerald Moof are approval. Seconded by Commissioner Eans, all in favor please say aye. Aye, opposed to the same name. Motion does carry unanimously. We have a resolution honoring Kenneth Neil Odom for 18 years of service to Denton County, the Denton County Commission's Court. During a regular session on the 16th day of December 2008, considered the following resolution, whereas Kenneth Neil Odom has worked as a detention officer in the Denver County Sheriff's Office since 1990, and as inmate service instructors since July 2001, is retiring on December 31, 2008, after an 18-year career in law enforcement. And whereas through his service with the Sheriff's Office, Kenneth Neil Odom has faithfully and diligently discharged the duties and obligations of the office and trusted to him, worked well with his co-workers and conducted himself in a mutual and responsible manner with vigilance for the safety and security of inmates and co-workers, and whereas the citizens of Dintn County are grateful to Neil Odom for answering the call to service for his commitment to duty and for the service he has rendered during his law enforcement career and tenure as detention officer for the Denton County Sheriff's Office. Now therefore, it will be resolved the citizen of Denton County through the Duley Elected Representatives on the Denton County Commission's Court and the Sheriff's and the Denton County Sheriff's Office to hear by, extend the Kenneth Neil Odom, our sincere and grateful appreciation for his dedicated service on his well earned retirement and our best wishes to him and his family for continued success and happiness and good health and all the years to come. Gerald Moofa approval. Seconded by Commissioner Marchand. All in favor, please say aye. Aye. Opposed,聲ee. Motion does carry. And the last one is a resolution honoring Donald V. Hamilton for 34 years of service to Denton County. I wish she was here. Whereas Donald V. Hamilton, detention officer in the Denton County Sheriff's Office since March 19 and at 99 is retiring on January 2nd 2009 after a 34 year career on law enforcement. And whereas during all the time the said service with the sheriff's office Donald V Hamilton has faithfully and diligently discharged the duties and obligations of the office entrusted to him, worked well with his co-workers and conducted himself in a mature and responsible manner with vigilance for the safety and security of inmates and co-workers. And whereas the citizens of Denton Coney are grateful to Donald Hamilton for answering the call to service, whereas commitment to duty and for the service is rendered during his law enforcement career in tenure for detention officer for the Denton County Sheriff's Office. Therefore it be resolved that the citizens of Denton County through the duly elected representatives on the commission's court and the Denton County Sheriff's Office do here by extended Donald V. Hamilton are sincere and grateful appreciation for his dedicated service and his well-earned retirement and our best wishes to him and his family continued success, happiness and good health and all the years to come that Cheryl moved for approval. Seconded by Commissioner Mitchell, I'll in favor please say aye. Aye. Opposed C the need. Motion does carry unanimously. Our congratulations to all of our retirees. Okay, Bing, do we have it up and running? Yes, thanks a lot. I'll go back on 10 a. Go ahead. Bartham, my clumsiness. Okay. I think what we need to talk about is our onsite sewage facility order, especially relating to lot sizes. And I don't have control here but I think Bob can take us on to the next screen. We are existing orders been in place since 1998 and it specified one acre minimum lot size if you have public water two acres if you have a well. The intent of the order at that time was to regulate growth, to provide assurances for disease control and thereby protect public health. Since that time, since 1998, so I'm going to give you figures for 99 through 2007, we've had almost 5,000 septic systems permitted, but we've averaged about 500 a year. We do have occasional system failures. These are mostly aerobic systems. And so they are, for the most part, very reliable. But you do have occasional systems. And certainly in that period, we've had no associated disease outbreaks. That doesn't suggest that when there's a failure, there might be an occasional case of something, but no related outbreaks whatsoever. be an occasional case of something but no related outbreaks whatsoever. Texas does have a different requirement and it's been in place since 1987 and Texas minimum is one half acre with public water and one acre with a well and certainly you have to take into consideration population density and also soil types. And I just put on the other side of this one, the comparison with Denton County, where we have really twice as large. We have one acre with public water, two acres with a well. And certainly in Denton County as well, we take into consideration population density and soil types. If we look at the state of Texas as a whole, Bob, yeah, if you look at Texas as a whole, you know that much of the state of Texas it just doesn't have much in terms of population. So you can see all those red counties there, population under 20,000. The green ones are over 20,000 out. It also happens that the red counties also have a much different soil type. It is much sandier and so much more absorbent. And so it's just not necessarily the case that one size fits all. It's not necessarily the case that the minimum for the state, which serves the state very well, would necessarily serve Denton County very well. Concerns for public health and I certainly would acknowledge I'm giving you a public health perspective there and I appreciate that there are other perspectives to be considered. Public health concerns though relating to smaller lot sizes would be certainly increased population density and that would mean a diminished margin for error. We know that there will be occasional malfunctioning sector assistance, and when that happens, there will be expanded potential for the spread of disease. And so we have, and this is the case often in public health, you just have a delicate balance. You always consider the benefits and the risks. We do that with every vaccine that we administer and certainly the same applies with lot sizes. The benefits is that you would possibly have expanded development. Although I would remind you over the last 10 years, 5,000 new permits suggest to me that we haven't missed out on a whole lot of development, but there might be expanded development with the half acre lots. The risks would be possibly diminished public health. We possibly would diminish our margin for error there when systems malfunction. So that's pretty much the information I wanted to share with you today and I'm sorry it was a little clumsier than might have been. Not a problem. Thank you. Commissioner White, certainly as someone who has dealt with this issue a lot over the last eight years, I understand that perspective and I appreciate that perspective. My thought on that, though, is that from the study that I've done, the systems that would be put on the smaller lots. I mean the one acre, I mean first of all they are designed to be able to function on half an acre. So I mean they can go down that small but second of all the systems that we have in place today are probably much better that what we've had in the past. And I know in my area, really where the problem has been a lot is in the very, very small lots that, of course, wouldn't be in, we still will have that problem ongoing. That's places like Hilltown and that have been grandfathered from even the state minimums. And they are smaller, from even the state minimums and they are smaller even than the state minimums and that's where we have a lot of problems when you've got those small lots you know 40 by 60 out of them. We're trailers basically that are functioning on one system for that very small area. So that is a very serious problem. I can appreciate that we've got to have that balance and we've got to be cognizant of that. But generally speaking, I think if it were handled properly, it could be positive. But as you stated, I mean, I think it is a delicate balance. Thank you. The other thing I would add, Bob, Mr. Mitchell had mentioned, well why would we do this? Even though we have had development, I think there probably would have been more, there's a lot of folks who don't really want two acres. They want one acre. And in fact, we've, I mean, crossroads, for instance, of course, that's a city, but it's very desirable location for folks. And they have, for cities, it's very stringent. I mean, they have one acre minimums I mean for the entire city and that's you know for cities that's of course really unusual but you know they they are a rural area and they want to keep that you know country atmosphere but so for cities probably maybe a little bit more unusual but my point of bringing that them into discussion is one-ankers lots are very attracted to a lot of folks and I think you would have probably increased development with that. And also I'll just add to what she said in that it's my understanding that Colin County has the one acre lots and they're growing as faster and then county if you can imagine that but they are not a lot but a little bit and Terrent County also has the one acre love the state standards. It's my understanding that these on-site reports, Commissioner White, you may know this are even being or vannet, that these on-site reports that initially, I certainly percentage of the lots have to be inspected, but that ultimately all the lots have to be inspected prior to final development. Is that correct? Part of it is I have Commissioner White and I've met about this before with interested parties wanting to bring forth this change and one thing that could be requirement is that they do soil tests to verify that the soil there can absorb the water. And so not every 1 acre law would even apply if it had a well and if they would be eligible for that. It would be dependent upon the soil testing and then I'm sure speak in more detail. Yes sir. Commissioner, right now our regulations require each lot to be sampled because the soil types vary so much across the county that that is the ultimate decision per lot. And some developers want to do a percentage of a development so they don't have to spend the money. But that's a risk that the county would be taking that these septic systems will ultimately fail once the developer leaves the other thing to keep in mind only systems is we're running into from the planning side is people wanting to put swimming pools in after the fact that kind of thing and many times they do not come in and get permits until after the fact. We had one lady come in that she was looking at buying a home. They already had a swimming pool, a very nice home and the septic tanks were right next to the swimming pool. So we have those issues and that really doesn't address from here, but it's something to keep in mind that many times our regulations aren't to put in place for the developers and the ones that are going to be following the law stringently and they want to do a good job. Our regulations are put into fact to protect the ones that want to cut corners and it's ultimately to protect the county and to protect the residents. I can understand that the situation you described could happen on the two of you or a lot too. That's up to the person doing the installation to do it the right way. Okay. Any other questions or comments from members of the court? What are we looking to do today? Well, I would like to ask legal to schedule to do the agenda placement to Ashley. We have to have an agenda placement to set the date time of place for a public hearing and I would like to ask legal to do that for next week if that would be okay. Any other comments from you gentlemen? Okay. Thank you. Yes. Go ahead. I'm clear. I really am unclear here. We're doing a public hearing to make make what changes to the current. To go to the state standards, which we are. Yes. Faker, if you just have a septic full acre, if you want to well and a septic. OK, thank you. All right, I believe with the exception of the executive session, we're coming back at one o'clock for a workshop with North Texas Totally Authority at one o'clock. But at this time, we're on item 15, which is executive session. 15 A is under Texas Government Code 551.0711A consultation with attorney in a closed meeting when the governmental body seeks the advice of its attorney about contemplated litigation regarding services provided by TMI Central, Adent County's Pallity in the Flight Program. 15B is under Texas Government Code 551.072 deliberation regarding real property, closed meeting to deliberate the value of real property. We're deliberation in an open meeting would have a detrimental effect on the position of the governmental body and negotiations with a third party. Regarding two parcels of real property owned by Denton County and located on Eldorado Parkway and Denton County Commissioner precinct one. And we have a Denton item 16A which is under Texas Government Code 551.0711A and B. Consultation of the Attorney in Close Meeting when the governmental body seeks the advice from its attorney about kind of played a litigation. Our Settlement Officer offer with regard to appending claim for property damages incurred by Dend County in the Joseph Hake Carol Administration Building on June 28, 2008, with that wearing executive session. Or 16A today. Okay, we are recessed. We were having lunch upstairs in the 1896 room with some NTTA folks and back in this room at 1 o'clock for a workshop with NTTA. And let me just tell everybody we need to be in here going at 1 o'clock because I have something to have to be at at 2 so I hope they click on and give their report. It's about 50 minutes. Okay, 50 minutes is exactly what I'll give them. It's very born. Now, now, John, we're still on video here. We're convened and we are on the agenda item 13C, We are on the agenda item 13C, which is the workshop, our Texas Toa Authority, NTTA, the finance workshop for Denton County. And to make those microphones work, the little red button needs to be up for the microphone to be on. And we'll just let you start. I'll tell you what, like you know, I need to leave it. Tim is too, but I've asked Commissioner Marchand if conversation's going on, you all just talk to your little hearts content and he'll take over when I need to leave. So with that, welcome and who wants to start? Okay. Thank you very much for having us this afternoon. I'm Janice Davis, the interim executive director for the NTTA. With me are our August director now. Rick Harrington, the deputy executive director. Ray Ziz over at the other tables, the acting, our interim CFO, and Ron Morrison of our BCR Financial Advisor. Again, thank you for having us this afternoon. This is intended to be fairly informal, asked questions at any point. We welcome them. Thank you. Judge, did you say it's okay? You want me to sit here? You want me to sit here? You want me to sit here? Whatever we're supposed to do. Either way. Thank you all. We have for anybody who, if people come in the door, we have many extra books that they can follow along. No PowerPoint presentation. We thought we'd do this just by hand out today. On page two, we just want... This is a summary of a workshop, actually two workshops that we gave to the NTTA board. They were two, four, well, maybe even longer than four hour workshops. We're going to try to really squeeze this into about 50 minutes for you. We're going to hit the highlights and lay it, ask questions as you deem fit. It's really going to cover a couple of different topics, which is the inputs of what the NTTA uses for projects, traffic and revenue, and then the other side, the cost side, what it takes to build the project, to operate the project, and then finally, really what it takes to finance the project, operate the project, and then finally really what it takes to finance the project. And as the county knows, particularly in this market, it's been challenging this year. And so we want to sort of walk you through what the 121 financing was like this year. It was challenging, but successful, thankfully. So under tab one, just to sort of reiterate where the NTTA is in terms of bond ratings, the county has their own ratings. They're as much higher than these ratings, but as a toll road project, what we're trying to balance is building projects and leveraging those revenues. And so what we have on the first tier basis, we have an A-minus from S&P and an A2 or a mid-A category from Moody's. We also have second tier debt, which is subordinate to the first tier, and then commercial paper, which is even more subordinate to that. And so you can see our ratings. From the chart below, we wanted to give you a feel for, we're kind of right in the middle of toll financing entities out there. We're in the A category which is highlighted in red. It's, you know, we kind of feel like we're where we want to be. If we go below that particularly in this market, if we're triple B entity, it's going to be extremely challenging and with some of the municipal products to sell, it would be impossible to sell some of those products in this market. And so, you know, we're trying to, we're really trying to stay in that A category rating. We feel like that's the best leverage for us. On page five, this really just talks about the, just as I said, if you, if we were out there with the triple B this year, you would probably still hear that the NTTTA had 121 bonds to sell. We just probably would not have been able to get them done. Nothing to do with a year ago, you could have sold triple B bonds. This year extremely tough. So this gives you an idea of, particularly at the bottom, if you look at in December of 7, the spread between an A category was between 51 basis points, or that's half a percent to 75 basis points between them. But look now, you got a hundred and twenty-three basis points spread this year, and it's almost double. So the spreads, in essence, the market's telling you, we really don't want triple B. And so that's just more proof that being an A category entity is really a good thing. On page six, this is an interesting chart. This is the explosions are things that have happened this year in the municipal, not in the municipal market, but in the market in general that we had to live through. We issued the bans back in November of 2007, bringing to the region in the 121 financing 3.3 billion in money to spend. And then we had to take out those bond anticipation notes or bans over the next year, which expired November 19th of this year. And it took really all year to do that. And we had to live through these explosions of our counterparties, beer stirons and Lehman going out of business, city group riding off $60 billion in write downs, our municipal bond insurers really becoming ineffective. You really can't use municipal bond insurance anymore. It's not worth paying for. And then going through and trying to issue large amounts of bonds in this market. So really what we had to do is issue small amounts of bonds in many different products in order to get it done in this market. Now what I would say is you know in November of last year the market didn't look that bad and we we kind of said around thinking you know what if we had about 45 more days without having to to pay the tax dot payment would probably have been done and so but because of the deadline because of the need to make that payment on that date it's sort of set this calendar in motion now nobody knew that nobody knew that the market would be this challenging But really it's interesting that we probably could have gotten it done had we had a little little bit more time last year And again as as Janice said, please stop me if you'll have any questions or if I'm not making sense. Directly behind you are County auditor and James if you have anything you'd like to ask just let me know. Thank you. On page seven is what we call the capital planning model. It's really our long-term financial planning. It looks it looks out into the future and tells us from a financial standpoint and gives the board an idea of what's happening. This is the existing system after the 121 financing. The easy way to read this line is that the green line is net revenue. That's our revenue minus our operations and maintenance expense. And that's what we get the bond against. The black line is a coverage line over our debt. And so that's a 1.5 times coverage line. So that line says that if the green line equals the black line, you have 1.5 times the revenue that you have debt. And so, what does that mean? Well, from a rating perspective, remember I said we're really trying to stay in that A category. 1.5 times coverage is what we think, the rating ages is really don't wanna see us go below that number much. They don't mind it dipping a little bit or pushing it at some point, but it's really our management of that rating curve or rating level. You will see that the black line and the green line are pretty close together. That's really a product. Again, had we been able to finance last year in November, we would have been able to use the white space way out in the future. But because we couldn't do it last year, we, a certain product, really went off the market. Namely, capital appreciation bonds or zero coupon bonds those bonds that you don't have to pay interest each year, that you just make a lump sum payment with interest off into the future. That's how you get to that white space. And so what we found was that the market really challenged us this year to get this project done. On page eight, this is the authorities cash flow, flow of funds. We wanted to bring this up to point out a couple of things. This is how the authority finances projects from a system perspective. So when the, in the trust indenture, when the revenues come in, they're sort of, they're locked into this flow of funds. They've got to be used in this order. They use for operations and maintenance expense. And then they go to the three tiers of debt service. Then they, then they go to reserve maintenance, which is equivalent of major maintenance, any sort of major project. And then capital improvement funds. Things for safety or for recoding of a bridge, anything like that. You'll recall that, so when we did 121, the revenues come in from the top and flow just like this waterfall. On 161, the idea here is, 161 is going to be a standalone. It's going to be by itself. It's not part of this waterfall. However, the capital improvement fund at the bottom would be leveraged to help build that project. So we would actually finance data at that bottom bucket to help finance 161. Which really, and page 9 just sort of goes over the toll equity loan, which is where TechSdot was willing to help support. Excuse me, so you are using the 121 capital improvement fund just to leverage or are you actually using that fund for the one sixty one? It's not let me let me first say that it's it's a it's the systems fund. It's not one twenty one one twenty one Eastern extension well when it Deantied all of that flows into that okay, so it's really the systems fund Okay, and so it has excess money that that flows to it after everything else is paid for. And then you would ultimately bond against that fund in order to help pay for 161. Now the goal here is that 161 will be robust and ultimately pay the capital improvement fund back. But initially, it's a way to help the project get started. Now, another just so you sort of know what the issues are that the 161 ultimately would be a triple B and we've talked about the difficulties of a triple B. So what the the toll equity grant from textile would ultimately help this this project do is bring it up in credit rating and help it finance itself. Now the toll equity is really just a backstop. It's designed that if the revenues don't come in on 161 as anticipated, then textile would step in. And likewise, if the operations and maintenance aren't what they think they are, then NTTA would have to step in and help there. So it's, it's incumbent upon the project to really be managed very efficiently and to enhance the revenues as best they can. Under page 11, we're going to turn to really the, again, the two inputs, the two major inputs to the authority system. Traffic and revenue, you've probably heard us talk before about estimating traffic and revenue. Traffic and revenue is a tough thing. You're estimating people's behavior on either a new or improved road over a 40 to 50 year period. That's probably tough to do. And so it is an estimate. And really if you think of traffic and revenue, to me it's like statistics. The more data you collect, the more surveys you take, the more you take in terms of demographic growth, population growth, the more data you collect, really the better your output is. And that's really a traffic and revenue. And so there's three main stages you'll hear from us for traffic and revenue. Sketch, which is, they use some data, but not a whole lot, and they take certain amounts of data and they give us an estimate. The next level is preliminary. Preliminary takes even more data. It takes more time, four to six months. And those, you know, the times are probably the ideal times they can be pushed some. And you get better data. And then investment grade, you've actually done all you've hired an economist. You really have good data to bond against. And that's what we have to get to before we finance a project is we have to get to investment grade traffic and revenue because the rating agencies won't even take anything but that. There's even one more that you'll see a couple pages later that says pre-schatch and so take the sketch level and it's maybe just above a guess. It's really used data without really any data collection. You use data from RTC, from COG, and you try to estimate the traffic. So to put that in perspective on page 12, sometimes it's hard to make decisions on certain levels. If you look at the red lines on page 12, that sketch level. And the black line is the expected value of the traffic. Now, under the red line, you can see that you can be really higher or low on your estimate. That's a band of where you might estimate your sketch level in. And then, as you collect more data, you move to the blue band. And so you can see that your margin of error is lower. And then when you get to the green lines, your margin of error is even lower. So really your estimate of the predicted outcome is much better and that's the point here. So if you're making a decision when you're in sketch level or pre-scatch you can make it, you really make a decision without very good data. And so on page 13 what we thought we'd do is show you where these projects are in terms of each. You can see Eastern Extension, investment grade, the authority voted to put that into their system earlier this year. 161 Southwest Parkway or preliminary Chisholm Trail, DNT Phase 451 70 and 360 or at sketch level. And Trinity Parkway and 190 East Branch are pre-skate so again that means really an extreme guess on the traffic and revenue for those roads. Any questions on traffic and revenue? the dnt 4 into 2 sections 4 a and 4 b 4 a is environmentally clear by us that's a section from 380 up to 428 and then 4 b is the one that we obviously are all very interested in is from 4B up to Grayson County and then 5 is actually the Grayson County piece. So and then we can if y'all have any questions about that we'd be glad to answer those questions as well. 35 here. Text us doing all the TNR on 35. These are the projects that were advancing. Yes, ma'am. But I do want to make a point about this graph because I think it illustrates exactly the problem that we have as an agency. Page 12. On page 12. Yes, man. The problem quite simply is this is somewhere 30, 60 days into the analysis sketch level analysis of a project you've got this wide band. But what happens is that gets into the public and then everybody starts using some number inside the window of that band and calling that, well that's all the money you have. I mean you got all kinds of money and you're playing games and you're doing this and that. And that's a problem for us because when you do a sketch level analysis, you've got a high and you've got a low and you know you're going to be or you expect to be somewhere in there, but you're probably not going to be at the high and you're probably not going to be at the low. And that's where a lot of the banter seems to take and manifests itself as in 121 or 161 any of these projects we do. But all projects have to start this way. We put a disclaimer at the bottom of this simply because that black line kind of remained in the middle. It very seldom remains in the middle. It usually floats down or up depending on the project the more data we get. This was strictly to represent that there's three different levels of TNR studies. Well, on the subject of the Dastor-Octola, the extension, when is the big vote ever going to come about the alignment? Or B? Well, you can tell me how far B. The idea. come out for B. Yeah, yeah. We want to go to the board sooner than later, about 4B itself and talk about the study area for the environmental process. Obviously you all are aware of what. Our neighbor in county has done with the county toll road authority. We still think DNT is our project. We've had some discussions with Mr. Polster and I think he's trying to schedule a meeting with Commissioner Coleman soon. We want to make sure that all parties are at good representation. That we, we like y'all still support the county line alignment, but we also want to make sure we have a plan B just in case something happens in Colin County. So I would think in the first quarter of next year we will come to our board and ask to move forward with the Environmental Impact Study. And right now that cone of studies pretty much stops just west of the county line and goes pretty far over into calling county. We haven't voted on that. That's just the study area. You know, the board will have a decision whether they want to expand that further into Ditten County and to look at some other potential corridors that would perhaps give us some alternatives if the Cone County toll road authority decides that they want to move forward with an alignment of their own toll road in Cone County. That would give us an option want to move forward with an alignment of their own toll road in calling county that would give us an option potentially of going and moving the entire DNT into didn't count. Like I said we we will have to we've got a lot of landowners that have met a lot of commitments already. We need to we need to talk to them continue to talk to them. continue to talk to them. We've met with a bunch of the, we've met with pilot point, we met with some others up in that corridor. And I think- Hey, Dennis, I was going back and basically recommitting all those folks to their medications. We have a lot of land commitments on the county line alignment. And we still like the county line alignment. We're just unsure of what Colin County told our authority may do. I just was unsure of when this was going to be brought to a head. We would like to go to our board with permission to advance environmental study probably in the first quarter of 2009. That's good. Okay. Thank you. Sorry to interrupt, Clay. No, no problem. Glad you did. Under the next, really the next phase again is you take the TNR and that's one piece. That's the revenue piece. Now, on page 15, let's turn to the cost side. And the cost side really has a ton of input. You've got concrete steel, you've got all the maintenance components, the operational components. There's lots of pieces to put together. Those pieces you can kind of think of the same, basically the same way that you do traffic and revenue, the more study you have, the more accurate, you know, the cost, the better estimates you get. And so there's sort of the same concept here. And so on page 15, it's really just the goal of trying to get all of the cost estimated in a timely and effective manner. On page 16, there's a little different depiction of that confidence in your numbers. On the left side is level F, and you kind of think of that as maybe pre-sketch or sketch level in terms of where TNR is, but this again is the cost-destimating piece. And so you might, you see that you might have hit it. The white line is your estimate at level F and you're normally, you're going to miss it on the upside much more than you're going to miss it on the downside. It's just the way it works. Either steel escalates at a much higher rate, which it definitely did with it early last year. And so you've got a lot of inputs, you just hard to predict what they are. The other thing on that plane phase is often we have multiple corridors. So we have an inventory and environmental process to determine the actual corridor. So we may have a range from, you know, like trenda he's going through that process right now now, there's a range from 1.2 billion to 3.2 billion because we don't have a defined corridor until we get through the environmental process. And so you can see as you move from left to right, you get more data, the more you know, the more you have decisions made is rick pointed out from other people, the more you're able to really estimate what your cost may be. So on page 17 what we did is we took that same graph and we put the projects in their respective places. And so you can see where things are, 170, 190, DNT phase 4 and 5 and 360 all the way to the left and they grow over to PGBE eastern extension the projects that in 121 that we know much better off to the right The financing line in there is it's not quite as set in stone as the traffic and revenue We have to have investment grade for traffic and revenue in this case. It's a little fuzzy You know we can finance Using a little fuzzy, you know, we can finance using a little different ban. It's not quite as hard fast here, but we put there for really for kind of ideal circumstances. Anything else on that? Okay. Any questions on that? Questions? So now, how do we pick projects? Projects on page 19, it's really there's a lot of there's a lot of pull What we're talking about today is is really financial feasibility? We wanted to give you a sense of of really from a financial perspective what makes sense But obviously there are a lot of other inputs that go into deciding on a project here We've sorted depicted what those are regional needs of the cities RTC Textot counties and financial feasibility sort of one of them and so it's it just sort of depicts the the the pool of how you pick projects from a financing standpoint what we try to do if if there were none of those pools you take projects that you studied and you had enough data to make really firm, solid decisions on, and you would take projects that are, that pay for themselves, no matter what, or at least you thought they did when you did the study. However, we have a system and we have, we have certain roads that are critical needs that we're able to take our system financing and pull money away from the system in order to help build those roads. And so really it's a, what we try to do in the financial world at NTTAs balance those two things. What we need to do from a project to keep the system solvent and keep the next project, keep the system where we build the next project. Okay. Page 21 is really the iterative process that we go through. You really have four different factors pulling the cost, the revenues on the left side, financing, who would have known had we done it. If it was October of last year and we're doing projections of how much 1-21 was going to cost us to finance this year we would have missed it we didn't know the market was going to do what it did this year and so with that being said there's there's a lot of there's this really a circular graph because if we find that the that the cost or the traffic and revenue is prohibitive to build the project we go back and look at the project maybe maybe we should phase the construction maybe if there's five or the traffic and revenue is prohibitive to build the project, we go back and look at the project. Maybe we should phase the construction. Maybe if there's five segments, maybe we look at the two or three most most profit, not necessarily profitable, but the most self-sufficient segments to build first, and then leverage that to build the next two at a different time. So it's just an iterative process, all in balance. different times. So it's just an iterative process, all in balance. On page 22, this is to give you a perspective of really what that means. When you add a project, there's really four types of projects you can add to the system. The NTTA system has, it's a collection of roads. Those roads are all averaged together and they have a certain coverage ratio, they have a certain amount of revenue that they bring in versus the death that we have to pay to keep them And it also has an amount of cost associated with it when we bring in a project If you look at the upper left-hand box if we bring in a revenue positive and credit positive project That means it pays for itself and it pays for the revenue it brings by itself brings twice the amount of revenue that it would need to pay the debt. And so that's called a two times coverage. Well that's better than though. We have about a 175, 180 coverage right now. It's better than the one we have so that adds to our system. So that's kind of a no-brainer. If you move to the right, you have a revenue-positive but credit neutral. That means it brings revenue more than it's going to cost you to pay debt, but it brings it at about the same balance that the current system has, so it's about the same. And then you have revenue neutral, meaning it pays one times for it debt, for its debt, and only pays for it. At a one time coverage, that's going to dilute the system and make the overall coverage go down. And like we talked about before, it's going to make the credit ratings agencies look at it and go. Your trend is going down. And then one that doesn't pay for itself, not even its debt service, and obviously dilutes the coverage, which is revenue and credit negative. Any questions on that? What is the spread over the system of which projects are going to work? It is a great question. In other words, George Bush told a word to say it. Is it a revenue and credit positive? It is, but I think at the time that was in the 90s, and so I would answer that two ways. Number one, when it was first being looked at, I don't believe it was viewed as revenue positive and credit positive. It probably was neutral at best. I would say that basically because of the traffic and revenue at the time. We were using demographics for our traffic and revenue modeling straight from COG. And I think right now we're at 2020 numbers or 2025. So our population has grown far more than anybody expected. So the numbers that that decision was made on for traffic and revenue were much lower than what they've actually come in on. Now I would say that we've gone to great extents to revise those demographics. And we take the COG demographics and we apply our own knowledge and history to get make sure that we're doing closer, we're trying to get closer to reality of how those TNR we don't want to underestimate the traffic and revenue yet we don't want to overestimate but the COG numbers historically are very, very conservative. So we've actually tried to be more realistic about those numbers. And then PGBT was done with the original Cog numbers. So we would have come in, TNR numbers would have been much lower. Have anything within the system currently that is already in the system built and up and running that is a revenue and credit negative? Yes, Addison Airport toll tunnel is. I think that the only one. Town Creek Lake Bridge was a standalone system for a long time and I believe in the early 2000s we actually brought it into the system. And it basically pays for its maintenance, and that's about it. But the D&T obviously is a revenue positive impact in the PGVT as well. And 121 would be the same. That fact, as you said earlier, affect your ratings and everything, doesn't it? That's right. So if you wanted to, for example, if you wanted to build or buy a bridge, the county did, and you wanted to own, for example, Mountain Creek Place, we'd sell it together. Yeah, makes you in. But, you know, we are adding, the Eastern Extension is needing system support. Lucille Lake toll bridge is needing some system support. So it's not uncommon for new projects, especially during the ramp up period, to need that system support. So you kind of expect, 121 is the exception. I mean, there's no other road in the country like 121 is the exception. I mean there's no other road in the country like 121. Most projects need some system support in the early years. It looks total bridge in Lucille that's going to turn around in a hurry I think. We hope so, Judge. But I think page 22 really illustrates that you really want to try and stay in one of those top two boxes as much as possible Ken because if you're stay in one of those top two boxes as much as possible, Ken, because if you're not in one of those two boxes, then what has taken the way, it's taken the ability for the agency to move forward on any new projects because you don't have the all the credit worthiness that you need to get back from a financing point. Okay, so on page 23, this was really just illustrate that we take from when we get ready to market bonds and finance projects, we take the revenue estimates that we've talked about in the upper left, we take the construction and operations and maintenance estimates from the engineers and then it's really the financial advisor and the underwriters turn along with the financial staff at NTTTA. How do we put that together for a good financial package? How do we best finance the bonds to build this project and that really does pull down to the financial feasibility as we just talked about taking projects that are good for the system? It's okay to take some that don't appear to be all that feasible, but you better balance that with another project that is very feasible. And so you can't take all the ones that are in one of those little over two boxes or we're out of built, we don't have enough financial capacity to build projects. So it's really a balance between the good projects and the not so good projects and those equal a pretty solvent system. What we did on page 24 was really we took that other graph that we showed you early on from the capital planning model and we added in the Eastern Extension and Southwest Parkway. So those are two projects that we don't know what the financing is going to look like. We're likely to begin financing at some point this year. I have no idea if the financial markets are going to open up. We hope they do by the second half of the year, but no guarantee. I think for pre-all sake and everybody's sake in the municipal world, we hope it does open up some. But this shows what our capacity would look like after adding Eastern Extension and Southwest Parkway into the system. Anytime there's a green space or a white space between the green line and the black line is additional capacity between the 1.5 times coverage ratio. So this just gives you an idea of where we are. And in regards to that, the one thing that you can see that the board is critically aware of is that financial bottleneck, for example, in the 2012 to about the 2020 window, that eight-year spread right there. You see where those two lines are on top of one another. Our goal is to take and keep us as leveraged up as we can and get as many projects on the ground as quickly as we possibly can. But we're very concerned about that right there and we're looking at ways to try and mitigate that. And we may be forced to take and do some things that would... Say it. Say it again, you may be what? We may be forced to take and try and do some things that's not in our plans today in order to take and move that data round or move it out a lot of that is driven by our need to take the bands out in a way that we had not anticipated. And so really this just to follow on to what was said. They're back in 2003, really we have, because of the type of issuer that NTTA is, having a financial bottleneck is kind of a common thing. This won't be the last, after we fix this bottleneck, it won't be the last time NTTA has a bottleneck. It's inherent in toll. Anytime you have a revenue curve that increases at the exponential rate with toll increases over time, it's just inherent in the type of financing you get from a toll entity. And so, but the way it's back in 03, we had a bottleneck back then too. And the way you can fix it is when the market does correct itself, we make the decision to take some of the debt in the early years, and when we can sell those capital appreciation bonds, those zero coupon bonds, then we refund some of that earlier debt, and we move it out, we shovel it out into that open white space thereby separating the distance between that green and white line and thereby making it easier to build the next project and that's exactly what we did in that between 0 3 and 0 5. Well do you project in that period of time between the bottlenecks you know the public's going to say are you going, are you going to service that debt on our back by raising a toll to make up the gap in the revenue? We can actually service the debt. Our problem is we can't take on new projects unless we have some assistance such as taking it off system and using a text diet or some other maybe a county rap. We just can't issue new debt on our own because we don't have the capacity, the new capacity. We don't have an issue with paying our debt service. We can manage that debt. Our performance shows that we are solid as a rock covering what we already have. It's just our ability to issue more debt and to take on more projects. But I would say that there are certain ways to increase that green line. What you don't see and we had it in the longer workshop, but when you add on a new project, that new project brings its own revenue, right? And so this green line's going to shift up anyway, but it's also, the debts can also be added on there too to help pay for that project. And so, but there are, there's certain way, obviously raising tolls is going to increase it. Lowering cost is going to increase it, and also lowering debt is going to increase the distance between those two lines. I mean, the concern, of course, of being a public official and being the public eye is that a pseudo governmental agency like North Texas Toaway, when you get into revenue problems that the immediate perception that the public has is that we're gonna raise your toll goes up a quarter they go, mine, what have they done? And what have they done to have it go up 25 cents? And I mean, do you project that out? Or do you project the revenues? And when those tolls are going to go up? And are they based upon a slump in revenues that you're projecting? I mean, what is the raise of revenue toll? What is that based upon? I mean, is there a... Yeah, it really goes back almost to the graph that circle graph that you look back when you say, you know, what makes you make a decision to raise tolls. A lot of it is political climate, the regional needs, the cities, what the counties and the likes of them and everybody wants. And you kind of bring all of those ideas and things into house and then start to try and move forward. The other thing that's very important is when we do the analysis, the revenue streams analysis, we have in there, we build in our models an elasticity that says we know that we can charge X or X plus something and it will not offend or it will not take and deteriorate from our revenues and from people using our roadways and everything else. We can get everybody to stop using George Bush tomorrow if we just charge $2 a mile. But then all the surface roads around George Bush would be clogged up for three days. And so there's an elasticity that we have to work with in and that's some of the modeling we do. We do the exact same thing and determine revenue or toll rates as that they do if they're building the road or if they're trying to finance it and pay for the debt and the likes of things like that. That's raising a real problem in my opinion. Now this is just my opinion but it is raising a problem because we are having a lot of of our partners in the region say, well, we want to add another penny here and another penny there, or a couple pennies here and there to put trees or bushes or fancy bridges. And all of that's well and good and stuff, but that goes against the elasticity of not only that project, but it also goes against the elasticity of the entire system. If we were just making a, if we were, for example, a for-profit business that was just looking to generate as much revenue as we possibly could and make as much money as we could, we would take our toll rates, in my opinion, we would take our toll rates right up to the top of that elastic line and take as much as we possibly could. But as an organization, we've committed to the community and to the region to, I would say, be much more reasonable about that. Did that answer your questions and kind of get to understand? Let me talk about slide 25. In the last legislature, we got some new tools to deliver projects that will, you know, run top a lot about project cost. And we've got some new tools to actually, to mitigate some risk in project cost and as well as waste of financing. One of the things that we've done brand new to us is the off system financing of 161. Where you take a new project, you finance it as a standalone project until a time it gets healthy, nothing you add to the system where it doesn't hurt the system. And so, Janice and our financial team are looking at ways to do that. And you text that's wrapping the credit on 161. When it gets strong enough to stand on its own and gets in one of those top two boxes on that four box chart, then we pull it into the system and actually improves the system and we go do more projects. So that own system, first off system projects is one of the things that we're looking at alternative delivery methods. Private equity. And methods, private equity. And I say private equity, but it's public. You still are, Yaga, doing 161 that way? We are doing 161 off system, yes, sir. We absolutely are. And again, at least initially, and initially. Right, and whenever it looks like, you know, these projects always have a difficult ramp up period. And once it gets healthy enough, then we have the opportunity to bring it on system without hurting the system and actually enhancing the system, then it's timely to do that so that other projects can benefit from that. And TechS.1, as soon as it's healthy, would like to reuse that backstop for other projects. Private equity is private art public equity, in this case it's tech stock. It could be private equity, it could be county equity, it could be anybody that wants to come for a project that they really want to advance. And it's deeply subordinated, and it really affect our waterfall much. Guarantee maximum price contracts. deeply subordinated, generally, affect our waterfall much. Guarantee maximum price contracts. That way, we go through a process and we know what that project's going to cost. So my bid's on it and it's guaranteed at that from early on. That's one way to mitigate the risk of inflation and stuff like that to make sure that our project costs stay down. Design builds very similar to that. We get better pricing. It's sometimes a little more difficult to manage, but we've got great engineering staff and that's a, we just got that ability to do, to do design build. We're going to do design build on 161, our first venture into that. And we think there's going to be tremendous benefits to that. Concessions short and long. We have the CDA capability just like textile. Judge Horne, I would tell you, I've heard you talk to textile that there's going to be a CDA in the region. We have the same capability as a textile. If we do it, we guarantee the payment will go to the, can stay in, if there is an upfront payment, would stay in the region. That's right, it is an issue. And by us doing the CDA, again, it's the same process, but then go to fund six. It actually, if there was an upfront payment, we could make sure it stayed in the region. And then the availability payments, what that is is actually, somebody, it's pretty much a home builder goes out and builds your home and lets you pay for it over time. A contractor comes in, he builds the road and you guarantee him a payment over time. This is something that TechStyles has been talking a lot about. I would tell you there's been several projects in the, recently in the country that have stopped this process because they couldn't get the private firm that was actually constructing the project, couldn't get the financing. They're in the same market we're in. So they couldn't actually, one specifically was the Miami Port Authority had a new tunnel. They went through a process and now all of a sudden that private firm can't get access to the funds to actually construct it. So they're in the same voters' eyes from a financial standpoint as far as access to funds. That's what the availability payment is. And then just public credit enhancements, and that's where I'm talking about TechStyle County. I know Judge Whitley's talked about potentially wrapping some of the potential of a Terrent County, wrapping some debt. So those kinds of alternatives to take a standalone project, wrap it with minimal risk, get it healthy, bring it into the system. So that's some of the alternative delivery methods that we're actually looking at right now. Well, I will tell you, if you look at 635, it's delayed again. If you look at their, their, the projects that they've actually partnered on in other parts of the country, they're struggling with revenue, their traffic's down and it's hurting them in some cases. They're still active in the market. But we haven't seen a lot of C CDAs move forward in the last 18 months. And again, they get money in the same place we get money. And when the financial markets close, they close. So I've had some conversations with Drogadas and Centra over the last three or four months, and they're struggling as well. So I think CDAs are still out there, they're still interested. I think it might be ripe for them to come in instead as a pure concessionaire. Maybe it's purely a private equity partner of some kind. Let them bring the best that they can bring and let us do what we do best. So it kind of be of a hybrid between a pure put with a public operation and with some private equity. So there's some there's some there's some alternatives out there were were having to find them which is a great process for us and we will find ways to deliver projects. We just make sure we have all the tools in our toolbox so we can go deliver those projects. We just make sure we have all the tools in our toolbox so we can go deliver those projects. It's really the end of our presentation. We tried to keep it again short and compress a lot of data. That's a short version. I'll get out by bang to find glass. I'm afraid it. Okay, well thank you very much. You have questions, members? Coming up today and going over this with you. Well you did a great job, but we've got about 45 seconds to spare. James did you have any questions that you'd like to bring up? I was talking to you as what the explainer 1.5 coverage is that on the revenue? It's on your debt service. It is actually 1.5 times debt service. The rationale is it's a requirement by the rating agencies that you be able to cover your debt service with additional funds to spare. What it ends up producing actually is internally generated capital that can then be used for projects to a certain extent. So it is what funds our capital improvement fund. So when we're forced to do debt service plus an additional piece, it becomes our internally generated capital. But let me make sure we're clear on coverage. The 1.5 times coverage is on net revenues. And if you look at the flow of funds on page 8, if you get 1.5 times, the 1.5 times covers just down through those, I'm not sure what color that is, per Polish. That's right. That's right. And so that 50 cents extra per dollar has to cover major maintenance and has to cover all the capital improvement fund projects. And so it's not 50 cents per dollar that flows into an open bucket. It's actually used elsewhere. That's exactly how I asked you to. Okay. It works megavival project. You want it to be covered there and cover what it's on. It's what you think operation maintenance are going to be. Right. And hopefully have a little bit left though. That's right. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Thank you.