* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. HERE. GOOD [00:00:01] MORNING EVERYBODY, AND THANK YOU FOR BEING HERE. UH, OBVIOUSLY OUR O CLOCK ON THE WALL IS NOT, WE'RE WAY BEHIND, I THINK WE'RE, WE DID, BUT IT'S NINE O'CLOCK AND I WILL GO AHEAD AND CALL THE, UH, COMMISSIONER'S COURT MEETING, UH, TO ORDER. AND TODAY IS WEDNESDAY, JUNE THE 13TH, NINE O'CLOCK IN THE MORNING, AND WE DO HAVE A QUORUM PRESENT. SO THANK, UH, ALL OF YOU FOR BEING HERE, UH, TODAY. WE WILL BEGIN HERE JUST IN A MOMENT WITH OUR, UH, INVOCATION. BUT IF THERE'S ANYONE HERE THAT HAS, UH, UH, AN ITEM THAT IS LISTED ON THE AGENDA, UH, THAT YOU WOULD LIKE TO ADDRESS OR SPEAK TO THE COURT, THERE ARE SOME FORMS THAT YOU WILL NEED TO FILL OUT. I BELIEVE THEY'RE RIGHT THERE ON YOUR TABLE, RIGHT THERE BY THE COUNTY CLERK'S AREA. AND, UH, WE'D BE MORE THAN HAPPY TO HEAR YOU, BUT MAKE SURE YOU COMPLETE THOSE FORMS AND, AND GIVE THEM TO US. SO THANK YOU VERY MUCH FOR BEING HERE. WE'LL BEGIN NOW WITH OUR INVITATION AND COMMISSIONER ALLEN WILL GIVE THAT. FATHER, WE'RE GRATEFUL AGAIN, JUST TO BE HERE IN A COUNTRY THAT'S FREE, THAT WE GET TO ENJOY BECAUSE PEOPLE THAT HAVE GIVEN THEIR LIVES JUST FOR THAT PRIVILEGE, WE ASK YOU, BLESS US THIS MORNING FOR USE THE WISDOM THAT YOU'VE GIVEN US TO MAKE THE DECISIONS THAT WE NEED TO FOR OUR COUNTY. AND BLESS THOSE WHO WORK EACH AND EVERY DAY WHO MAKE THIS COUNTRY FREE. FORGIVE US ALL OF OUR SINS. IN CHRIST'S NAME. AMEN. I BLESS ALLEGIANCE TO THE FLAG FROM THE UNITED STATES OF AMERICA AND REPUBLIC FOR WHICH IT SAINTS ONE NATION UNDER GOD, AN INDIVIDUAL WITH LIBERTY, TEAM JUSTICE FOR ALL ON EARTH OF TEXAS. FLAG, I PLEDGE ALLEGIANCE TO BE TEXAS, ONE UNDER GOD, ONE AND INDIVIDUAL. THANK YOU VERY MUCH. HAVE ANY ROUTINE CORRESPONDENCE AT THIS POINT. SO WE WILL MOVE RIGHT ON INTO THE CONSENT AGENDA. ITEM NUMBER A IS TO DISCUSS, CONSIDER APPROVING A DEPORTATION OF EL SMITH FOR THE KAUFMAN COUNTY CLERK'S OFFICE. AND THEN, UH, ITEM NUMBER, UH, B IS TO PRESENT, UH, THE STAR TRANSITS THIRD QUARTER, UH, FISCAL YEAR 2018, DEMAND IN RESPONSE. UH, THE KAUFMAN TROLLEY, THE LINK NUMBER 8 0 2 TERRELL HIGHWAY NUMBER, UH, TERRELL HIGHWAY 80 NUMBER 8 0 3, 8 0 3. AND TERRELL HORSESHOE NUMBER 8 0 4 RIDERSHIP REPORTS. AND BOTH OF THOSE, UH, ITEMS HAVE BEEN INCLUDED IN YOUR, UH, PACKAGE. ANYBODY HAVE ANY QUESTIONS ABOUT ANY OF THOSE? IF NOT, I'LL ENTERTAIN A MOTION TO ACCEPT AND APPROVE THE CONSENT AGENDA. SO MAY, UH, COMMISSIONER ALLEN MAKES THAT MOTION. DO I HAVE A SECOND? SECOND, SECOND FROM COMMISSIONER HUNT. UH, ALL IN FAVOR SAY AYE. NEXT ITEM IS TO DISCUSS AND ACCEPT THE 2017 KAUFMAN, UH, COUNTY ANNUAL FINANCIAL REPORT. WE HAVE JOHN MANNING WITH US THIS MORNING FROM OUR OUTSIDE AUDIT FIRM, AND DE UH, YOU HAD A COPY OF THE INFORMATION THAT, UH, UH, THE AUDITORS HAVE COMPLETED. AND SO, JOHN, WELCOME. IT'S GOOD TO HAVE YOU BACK AGAIN THIS YEAR. AND, UH, WE'RE ANXIOUS TO HEAR, UH, WHAT, WHAT'S, UH, WHERE, WHERE WE ARE FINANCIALLY, JUDGE AND COMMISSIONERS. THANK YOU FOR LETTING, IS THAT MAC ON THERE? YEAH. AS JUDGE WOOD STATE, WE'RE HERE AGAIN TO PRESENT THE, UH, FLOCK 17, UH, ANNUAL FINANCIAL REPORT, UH, FOR KAUFMAN COUNTY. AND IF YOU'LL, YOU'VE GOT TWO DOCUMENTS THAT I'VE, THAT YOU HAVE AS ONE IS THE ACTUAL FINANCIAL STATEMENTS. THE OTHER IS A, A REQUIRED LETTER. AND IF YOU LOOK IN THE ACTUAL FINANCIAL STATEMENTS, THERE'S ONLY TWO LETTERS IN HERE THAT ARE OURS. UM, ALTHOUGH WE DO PREPARE THE FINANCIAL STATEMENTS FOR THE COUNTY, THE RESPONSIBILITY FOR THE FINANCIAL STATEMENTS REST WITH THE COUNTY. AND WHAT WE DO IS WHAT WE'RE TALKING ABOUT HERE IN THIS LETTER. AND WE HAVE OFFERED AN UNMODIFIED OPINION ON THE FINANCIAL STATEMENTS, WHICH OF THE TYPES OF OPINIONS THAT WE CAN OFFER AS OUTSIDE AUDITORS. THE UNMODIFIED OPINION IS THE HIGHEST LEVEL OF ASSURANCE THAT WE CAN OFFER. SO, UM, IF YOU'LL LOOK AT THE SECOND PAGE OF THAT LETTER, YOU'LL SEE THAT OPINION LETTER PARAGRAPH. AND I KNOW PERIODICALLY THAT THE COUNTY GOES OUT AND FOR DEBT. UM, YOU ALSO APPLY FOR DIFFERENT TYPES OF GRANTS. AND ONE OF THE THINGS THAT GRANTORS LOOK AT IS THE OPINION LETTER TO MAKE SURE THAT THERE ARE NO MODIFICATIONS TO THE OPINION AND MAKING SURE THAT THEY KNOW THAT THE ENTITY THAT THEY'RE LOOKING TO GIVE MONEY TO HAS CONTROLS AND HAS A FINANCIAL SYSTEM THAT WILL ALLOW THOSE GRANTS TO HAVE A GOOD CHANCE TO BE SPENT PROPERLY. AND THAT'S, THAT'S WHAT THE COUNTY HAS. SO ALTHOUGH IT'S ONLY A THREE PAGE REPORT, IT IS ONE OF THE PLACES THAT OUTSIDE USERS DO LOOK, UM, UM, TO SEE HOW THE COUNTY'S DOING. IF YOU LOOK ON PAGE FOUR, THERE'S A, A LETTER IN HERE CALLED THE MANAGEMENT DISCUSSION [00:05:01] AND ANALYSIS. AND IT'S A WORD NARRATIVE OF WHAT HAS HAPPENED DURING THE YEAR. UM, FOR THOSE OF US THAT, THAT DON'T LOOK AT FINANCIALS ALL DAY, LIKE, UH, OUTSIDE AUDITORS DO. UM, IT'S REALLY THE ONLY PLACE ANYMORE THAT HAS COMPARATIVE INFORMATION. AND SO IF THERE'S SOME THINGS THAT YOU'RE UNSURE ABOUT THAT HAPPENED DURING THE YEAR, THIS IS A PLACE THAT I WOULD LOOK AS IT DOES GO THROUGH AND KIND OF NARRATIVELY TALK ABOUT WHAT HAPPENED DURING THE YEAR. KAREN, HER GUYS DO A REALLY GOOD JOB OF MAKING SURE THAT A LOT OF THE THINGS THAT CHANGED ARE PRESENTED HERE AND EXPLAINED, UH, IN, IN GOOD STANDING ALSO TALKS ABOUT ON PAGE 10, IT TALKS ABOUT YOUR DIFFERENT CAPITAL ASSETS AND YOUR OUTSTANDING, UH, DEBT THAT THE COUNTY HAS FOR, FOR OUTSTANDING AT THE END OF THE YEAR. UM, WITH THAT, IF YOU'LL LOOK AT PAGE 13, UM, STATEMENT IN THAT POSITION, THIS IS ESSENTIALLY ALL OF THE FUNDS THAT THE COUNTY HAS COMBINED INTO ONE COLUMN. AND WE ALSO ON THIS SET OF FINANCIALS, ADD TO CAPITAL ASSETS AND THE LONG-TERM LIABILITIES. AND THE TOTAL NET POSITION IS IN A DEFICIT OF 2.7. BUT A LOT OF THAT HAS TO DO WITH THE MOBILITY BONDS THAT HAVE BEEN ISSUED, OR THE DEBT IS ON THE COUNTY'S BOOKS, BUT THE ASSETS THAT THEY'RE IMPROVING AREN'T HIGHWAYS AND THINGS THAT THE COUNTY MAINTAINS. SO ESSENTIALLY YOU'RE HELPING TRANSPORTATION THROUGHOUT THE COUNTY ON THINGS THAT AREN'T COUNTY ROADS, ALL STATE HIGHWAY PROJECTS THAT YOU GUYS ARE INVOLVED WITH, THE AGREEMENTS THAT YOU'RE DOING WITH TERRELL AND KAUFMAN, A LOT OF THOSE ROADS, ALTHOUGH THEY'RE WITHIN THE COUNTY, THEY DON'T BELONG TO THE COUNTY. SO THE DEBT IS THERE, BUT THERE WAS NO ASSET TO OFFSET IT. SO WE HAVE A LOT OF COUNTIES NOW THAT ARE IN THESE TRANSPORTATION TYPE PROJECTS WHOSE NET ASSET POSITIONS ARE MOVING TO THIS LEVEL. AND, AND YOURS ISN'T AS HIGH AS A LOT OF THE OTHER COUNTIES THAT WE HAVE. SO, BUT, BUT WITH OUR, WITH OUR NEXT SET OF BONDS THAT WE DO FOR THEM AND, AND PAY MONEY, THEN THAT NUMBER'S GOING TO GROW. YEAH. YEAH. AND IT'S GROWING ALL ACROSS THE STATE. I MEAN, THIS IS THE WAY THAT THESE HIGHWAY PROJECTS ARE BEING FUNDED NOWADAYS. AND, AND WITH THE COUNTY KIND OF TAKING ON THE RESPONSIBILITY OF HELPING FUND SOME OF THAT, YOU KNOW, YOU'RE GONNA SEE A LOT, ESPECIALLY UP IN THE METROPLEX AREA. YOU, YOU'RE GONNA START SEEING WHERE A LOT OF THESE CAPITAL ASSET NUMBERS AND UNRESTRICTED NET POSITIONS ARE GOING DOWN. BUT THE KEY, AND WE'LL GET TO IT IN A MINUTE, IS YOUR GENERAL FUND, THE THINGS THAT YOU OPERATE ON, WHERE YOU USE, RIGHT. YOUR TAX FUNDS TO OPERATE THAT NUMBER WENT UP UP, YEAH. THIS IS PREDOMINANTLY LOOKS THIS WAY BECAUSE WE PUT CAPITAL ASSETS AND DEBT. YEAH. RIGHT? AND THE OTHER THING YOU HAVE TO REMEMBER, AND I'LL GO OVER IN A MINUTE, IS IF YOU REMEMBER, I BELIEVE THIS IS A THIRD YEAR THAT WE'VE HAD TO ADD THAT PENSION LIABILITY WHERE PENSION LIABILITY PRETTY HIGH. YEAH. AND AGAIN, IT'S HIGH, BUT WE HAVE A LOT OF COUNTIES WHERE THAT NUMBER'S A LOT BIGGER, RIGHT? AND REALLY THE ONLY WAY THAT'S EVER GOING TO AFFECT THE COUNTY, THE ONLY WAY THAT T-C-D-R-S AFFECTS YOUR BOOKS IS THEY SAY, KAUFMAN, WE'VE ASSIGNED YOU A RATE OF 14.7%. AND WHEN Y'ALL DO THAT, Y'ALL PAY THAT, THAT HITS YOUR GENERAL FUND, YOUR, YOU KNOW, YOUR ROAD BRIDGE WHERE YOU PAY PEOPLE. THAT'S THE ONLY PLACE THAT THAT REALLY EVER IS GOING TO AFFECT THE COUNTY. THIS LIABILITY IS WHAT WE CALL AN ACTUARIAL ACCRUED LIABILITY. MEANING THEY'RE USING RULES, BUT THEY'RE TRYING TO ESTIMATE WHAT THEY THINK YOU'LL ULTIMATELY OWE VERSUS WHAT YOU HAVE SET ASIDE. AND I'LL GO INTO THAT IN A LITTLE BIT MORE DETAIL JUST TO SHOW YOU HOW MANY ESTIMATES ARE INVOLVED IN THAT NUMBER. BUT AGAIN, UM, IT IS DEFICIT, BUT IT'S VERY LOW COMPARED TO THE AMOUNT OF ASSETS THAT YOU HAVE. AND I THINK THAT THE USERS OF THE FINANCIALS HAVE ALWAYS TAKEN INTO ACCOUNT THE FACT THAT YOU'VE HAD THAT NET PENSION LIABILITY AS THOSE NUMBERS HAVE ALWAYS BEEN IN, IN THE REPORT JUST UP UNTIL THREE YEARS AGO. THEY NEVER HAVE HAD TO HAVE BEEN RECORDED. BUT WITH THAT, IF YOU LOOK ON PAGE 15 ON, ON A, ON A BETTER NOTE, GENERAL FUND FUND BALANCE IS JUST A SHADE UNDER $5 MILLION. NOW, UM, IF YOU REMEMBER SEVERAL YEARS AGO, THAT NUMBER WAS, UH, I BELIEVE IN A DEFICIT POSITION OR, OR PRETTY CLOSE 1.2, TWO THREE. I REMEMBER . AND SO I KNOW A LOT OF TOUGH DECISIONS HAVE BEEN MADE. AND, AND, AND SO I WANTED TO APPLAUD, UM, ALL THE COUNTY DEPARTMENTS 'CAUSE THEY'RE ALL INVOLVED IN, IN MAKING SURE THAT, THAT THAT NUMBER WENT UP. BUT IT'S GETTING UP TO A, TO AN AMOUNT THAT'S A LOT SAFER AND A LOT MORE FISCALLY RESPONSIBLE AND PRUDENT. UM, BUT AGAIN, YOUR GENERAL ROAD BRIDGE FUND BALANCES THERE ARE IN GOOD SHAPE AND YOUR CONSTRUCTION PROJECTS, YOU'RE GONNA SEE THAT THAT NUMBER'S ABOUT 26.5. AS YOU CONTINUE TO DO THESE PROJECTS, THAT NUMBER'S GONNA GO DOWN WITH THE ISSUANCE OF DEBT AND YOU TURN AROUND AND USE THAT MONEY FOR THE PROJECTS THAT THE, THE DEBT WAS ISSUED FOR. AND IT ALWAYS HAD HAD, REMEMBER THIS, [00:10:01] UH, AUDIT APPROVED SEPTEMBER, 2017. YES, SIR. SO IT WENT DOWN ABOUT $5 MILLION THIS YEAR BECAUSE THAT'S ABOUT THE AMOUNT THAT Y'ALL SPENT THIS YEAR ON PROJECTS. 'CAUSE THE ONLY INCOME THAT'S REALLY GOING IN THERE IS SOME INTERGOVERNMENTAL MONEY AND INTEREST THAT YOU'RE EARNING OFF THE PROCEEDS FROM THE BONDS THAT ARE, ARE, ARE SITTING THERE IN THE BANK. SO IF YOU LOOK AT PAGE 18, UM, PROPERTY TAXES, AS YOU KNOW, IF YOU LOOK AROUND, UM, THE AREA'S REALLY GROWING AND ASSESSED VALUES WENT UP AND THAT BROUGHT IN MORE TAX REVENUE FOR THE YEAR. UM, DOING A GOOD JOB OF TRYING TO COLLECT ON YOUR TICKETS, UM, OUTSTANDING FINES. SO YOUR CHARGES FOR SERVICES, UH, WERE ABOUT 1.3 FEES OF OFFICE. WERE ABOUT $4 MILLION. UM, SO AGAIN, FUND BALANCE LAST YEAR WAS ABOUT 2.4 AND IT'S UP TO ALMOST $5 MILLION. SO, YOU KNOW, UM, GFOA WHO LOOKS AT THESE THINGS ALL THE TIME RECOMMENDS TRYING TO HAVE A RESERVE OF ABOUT THREE MONTHS. SO, UM, WE'RE GETTING, GETTING A LITTLE BIT CLOSER TO THAT IS YOU CAN GET, YOU CAN, WE'VE TALKED ABOUT THIS BEFORE. I MEAN, YOU CAN GET FUND BALANCE NEGATIVE VERY, VERY QUICKLY, BUT TRYING TO GET IT BACK POSITIVE IS A, IS A LONG PROCESS. SO, UM, I APPLAUD AGAIN THAT THE FACT THAT THAT, THAT Y'ALL DID THAT. AND IF YOU LOOK ON PAGE 19 AND 18, THE GENERAL FUND, THE GENERAL ROAD BRIDGE AND CONSTRUCTION PROJECTS ARE THE ONLY FUNDS THAT, THAT MEET THE MAJOR FUND CRITERIA. ALL THE OTHER FUNDS THAT Y'ALL SEE THAT, UH, RECORDS MANAGEMENT, SOME OF YOUR GRANT FUNDS, ALL OF THOSE ARE COMBINED INTO ANOTHER NON-MAJOR GOVERNMENTAL FUNDS COLUMN PRESENTED THERE IN ACCORDANCE WITH, UH, WITH, YEAH. BUT IF YOU, IF PAGE 22 STARTS THE NOTES TO THE FINANCIAL STATEMENTS AND TALKS ABOUT, YOU KNOW, YOU HAVE ABOUT $30 MILLION IN TECH SCHOOL, IT JUST KIND OF GOES THROUGH AND DOES LIKE THE, THE MDNA BREAKS DOWN A LOT OF THINGS, UH, THAT HAPPEN THROUGHOUT THE YEAR. AND I'D LIKE TO GO ON PAGE 35 AND, AND TWO OF THE UNIQUE YOU REALLY HAVE, AND IT'S GONNA GET BIGGER BECAUSE OF A NEW ACCOUNTING STANDARD THAT'S COMING OUT, BUT YOU HAVE TWO $6.7 MILLION LIABILITIES THAT YOU REALLY WILL NEVER ESSENTIALLY HAVE TO WRITE A CHECK FOR. AND THOSE ARE YOUR OPEP OBLIGATION, WHICH IS YOUR POST-RETIREMENT INSURANCE BENEFITS FOR RETIREES. AND THE NET PENSION LIABILITY WE TALKED ABOUT EARLIER. WHAT WE'VE BEEN HAVING TO BOOK SO FAR ON THE OPEP IS JUST WHAT THEY CALL THE UNFUNDED ACCRUED LIABILITY. NOW WE'RE GOING TO HAVE TO DO LIKE WE DID WITH THE PENSIONS AND PUT THE FULL UNFUNDED ACTUARIAL ACCRUED LIABILITIES ON. SO THAT'S ANOTHER ONE. THE THING WITH THESE THAT REALLY HURT NET ASSETS IS THEY'RE A LIABILITY WITH NOTHING OFFSETTING THEM, ESSENTIALLY. NORMALLY WHAT HAPPENS IS YOU ISSUE BONDS AND YOU BUILD A BUILDING. SO YOU GET A BUILDING AND YOU GET DEBT, AND AS YOU DEPRECIATE AND PAY OFF THE DEBT, THEY KIND OF OFFSET EACH OTHER. SO THEY DON'T REALLY HIT THE BOTTOM LINE. BUT THESE, THESE HAVE NOTHING TO OFFSET THEM. AND, AND JUST TO KIND OF GO OVER, IF YOU TOOK THOSE TWO OUT, OVERALL DEBT WENT DOWN, BUT BECAUSE OF THESE THINGS THAT HAVE NOTHING TO DO WITH, WITH REALLY WHAT YOU'RE DOING, THEY WENT UP. SO YOU KNOW, YOUR OVERALL DEBT WENT UP, BUT NOT ON THINGS THAT YOU'LL HAVE TO PAY. AND I, I'D LIKE TO POINT OUT, JUST TAKE A LOOK AT PAGE 42. IT KIND OF SHOWS YOU UP THERE AT THE TOP YOU DID YOUR TOTAL PENSION LIABILITY. THE ACTUAL LIABILITY WENT FROM 71 TO 77 MILLION THERE ON THAT FIRST COLUMN WITH THE A. AND THEN THE MONEY THAT YOU'VE BEEN, THAT THE COUNTY AND THE EMPLOYEES HAVE BEEN SENDING IN SINCE INCEPTION OF THE PLAN, THOSE WENT FROM 65 TO 70 MILLION, WHICH LEAVES YOUR NET PENSION LIABILITY AT ABOUT 6.7. NOW REMEMBER, AS JUDGE MENTIONED EARLIER, THIS REPORT IS AS OF 9 30 17, BUT EVEN TO MAKE IT MORE CONFUSING, THIS MEASUREMENT DATE THAT WE'RE USING FOR THE PENSION LIABILITY IS 12 31 60 BECAUSE THEY CAN'T GET THE 17 NUMBERS DONE IN ENOUGH TIME FOR US TO BE ABLE TO USE THAT. SO WE'RE ALWAYS IN A LAG. AND IF YOU REMEMBER, I REALLY ANTICIPATE YOUR, UH, PLAN ASSETS TO REALLY GO UP BECAUSE IF YOU REMEMBER, 17 WAS A REALLY GOOD YEAR IN THE MARKET. SO YOUR MONIES THAT YOU'VE HAD SETTING ASIDE THERE AT T-C-D-R-S SHOULD GROW A LOT MORE THAN THEY DID IN 16. AND THE LIABILITY SHOULD STAY PRETTY CONSTANT AS, AS YOU'RE NOT ADDING 20 OR 30 EMPLOYEES. A I MEAN, YOU KNOW, YOU, YOU ADD A FEW HERE AND THERE, BUT FOR THE MOST PART YOUR, YOUR PAYROLL AND THE AMOUNT OF PEOPLE THAT YOU HAVE GENERALLY STAYS THERE. BUT THE ONE THING I'D LIKE TO POINT OUT IS, IF YOU LOOK DOWN ON PAGE 42 IN THE SENSITIVITY ANALYSIS WHEN WE TALK ABOUT THIS, IS THAT THERE'S A LOT OF ASSUMPTIONS [00:15:01] BUILT IN. ONE OF THE THINGS IS THAT THEY SAY THAT THEY FEEL YOU'RE GOING TO GET A DISCOUNT RATE OF 8.1 AND THAT'S WHAT THEY USE. IF THEY WERE TO USE 9.1, JUST 1% DIFFERENCE, INSTEAD OF HAVING A $6.7 MILLION LIABILITY, YOU'D BE OVERFUNDED BY $2 MILLION. MAKE HUGE DIFFERENCE. AND ON THE FLIP SIDE, IF YOU DO THAT, IF THEY WERE TO USE SEVEN INSTEAD OF EIGHT, YOUR LIABILITY WOULD BE 17.3 MILLION YEAH. IN TWO YEARS. YEAH. SO JUST, I'M JUST POINTING THAT OUT THAT WE DO HAVE TO MAKE SURE THAT THE COUNTY ACCRUES THAT NUMBER. BUT I JUST WANT TO STRESS THAT WHEN YOU LOOK AT THIS, THIS ISN'T LIKE YOU WENT OUT AND ISSUED A BUNCH OF DEBT AND ARE BEING IRRESPONSIBLE. THIS IS JUST A NUMBER THAT HAS TO GO ON HERE AND IT'S ALWAYS REALLY FAR BEHIND OF WHERE THE FINANCIALS ARE. SO THERE'S A LOT OF THINGS THAT GO INTO THIS NUMBER BEING A BIG NUMBER, BUT WOULD NOT REALLY A WHOLE LOT OF THINGS THAT THE COUNTY CAN DO TO CONTROL IT. SO, UM, AGAIN, A LOT OF ESTIMATES INVOLVED IN THAT NUMBER, BUT THE, THE DEBT THAT YOU CAN CONTROL WENT DOWN DURING FISCAL YEAR 17. THAT'S A WONDERFUL POINT. YEAH, IT IS. UM, THE REST OF THE REPORT IS, UM, COMBINING STATEMENTS, UM, SOME OF THE NON-MAJOR FUNDS. AND THEN WE ALSO, BECAUSE THE COUNTY IS A LOCAL GOVERNMENT, WE HAVE TO DO ALL UNDER GOVERNMENT AUDITING STANDARDS. AND WE'RE, IF YOU REMEMBER FOUR OR FIVE YEARS AGO, WE HAD QUITE A FEW FINDINGS IN HERE FOR THINGS THAT WEREN'T BEING DONE PROPERLY. UM, WE'VE WORKED WITH THE COUNTY AND THE COUNTY AUDITOR'S OFFICE HAS DONE A LOT. THE DIFFERENT DEPARTMENTS HAVE DONE A LOT TO GET THOSE THINGS DONE. AND WE DON'T HAVE ANY MATERIAL WEAKNESSES OR SIGNIFICANT DEFICIENCIES TO REPORT TO THE COURT. UM, AT THIS TIME, UM, I DO KNOW A LOT OF THINGS ARE BEING DONE TO MAKE THINGS BETTER. YOU KNOW, Y'ALL CHINA KIND TO CHANGE THE WAY YOU DO YOUR INTERLOCAL AGREEMENTS, MAKING SURE THEY ALL GET APPROVED AND HAVING CONTRACTS DRAWN UP. SO I APPLAUD ANY OF THAT KIND OF, OF THOSE KIND OF THINGS THAT YOU CAN DO TO INCREASE CONTROLS, REALLY HELP WITH TRANSPARENCY AND MAKING SURE THAT THAT MONIES ARE GETTING SPENT WHERE THEY SHOULD BE. AND BASICALLY WHAT WE'RE DOING, WE'RE REQUIRING THEM TO PUT THE CASH UP FRONT BEFORE WE DO THE WORK. YES. AND WITH AN AGREED UPON PRICE, THAT'S BEEN LOOKED AT BY MORE THAN JUST THE COMMISSIONER, MORE THAN JUST IT, IT IS BEEN LOOKED AT BY THE, UH, I THINK THE DISTRICT ATTORNEY'S OFFICE GETS INVOLVED AND MAKE SURE THE AGREEMENTS ARE THERE. RIGHT. SO WE REALLY APPLAUD, UM, THE COUNTY STEPPING UP AND, AND, AND WORKING WITH LOCAL GOVERNMENTS TO MAKE SURE THAT THOSE ARE MORE OPEN AND MORE TRANSPARENT AND HAVE A LOT MORE CONTROL THAN THEY DID IN THE PAST. AND I KNOW THAT'S A, IT TAKES SOME EXTRA WORK ON A LOT OF DIFFERENT DEPARTMENTS, BUT WE APPRECIATE THAT Y'ALL DID THAT. IT MAKES, IT MAKES OUR JOB EASIER. I CAN TELL YOU, JOHN, CAN WE GO BACK TO PAGE 37? MM-HMM . EVERYBODY ELSE HAS GOT A, UH, IF YOU WOULD, UH, WE'VE MADE A CONCERTED EFFORT THIS LAST YEAR ON THE LONG PAYABLE AND PARTICULARLY ON THE ONE THERE ON THE UH, UH, EOC AND THE 9 1 1 DISPATCH CENTER. THIS LAST YEAR WE MADE, IN ADDITION TO THE PRINCIPAL THAT WAS DUE OF 399,000, YOU'RE TALKING ABOUT AN FFY 18. YEAH. FFY. YES SIR. UH, WE'VE GONE AHEAD AND, UH, ADDED AN ADDITIONAL SEVEN 50 THAT PAY DOWN THAT DEBT AND THAT'S WHAT WE'RE PLANNING ON DOING THIS NEXT FISCAL YEAR WHILE WE'RE IN THE MIDDLE OF BUDGETS THAT'LL, UH, THAT, THAT WILL BE, THAT'LL MAKE THAT LIABILITY GO DOWN SIGNIFICANTLY. 2.25% LOAN. SO IT'S A VERY CHEAP LOAN, BUT UH, THE MORE WE KNOCK THAT DOWN, THE BETTER IT'S, SO WHETHER YOU WERE AWARE OF THAT? NO, WE TALKED ABOUT THAT WHEN WE WENT OVER THE DRAFT OF THE REPORT. I'M, I WAS PRETTY MUCH FOCUSING ON WHAT HAPPENED IN 17. BUT IT'S A GOOD POINT TO BRING UP THAT, THAT YOU'RE PAYING ADDITIONAL DOWN ON THAT. OKAY. BUT AGAIN, I'M PROUD OUTTA THAT. NO, IT'S, THAT'S EXCELLENT. AND, AND THE FUND BALANCE GROWTH, I MEAN, A LOT OF TIMES WE HAVE COUNTIES THAT WE GO TO THAT ARE IN THAT SIMILAR POSITION, BUT DON'T KIND OF COME TOGETHER AND SIT DOWN AND MAKE THE TOUGH DECISIONS TO TRY TO GET THAT FUND BALANCE BACK UP AND, AND Y'ALL DONE IT AND UM, YOU KNOW, WE'RE A LOT BETTER POSITION WITH AS FAR AS FINDINGS AND WITH HOW YOU ALL ARE FINANCIALLY. SO I JUST WANTED TO MAKE SURE THAT WE POINT THAT OUT AND, AND LET PEOPLE KNOW THAT THAT, YOU KNOW, THERE WAS AN ISSUE AND THAT YOU GUYS HAVE WHOLE COUNTY HAS KIND OF STEPPED UP AND MAKE SURE THAT'S RIGHT. CORRECT. I DON'T BELIEVE THERE WERE ANY FINDINGS LAST YEAR OR JUST THE SECOND YEAR. YEAH. AUDITOR'S OFFICE HAS NOT BEEN FOUND TO BE, OR THE COUNTY'S [00:20:01] NOT BEEN FOUND. WELL, IT'S NOT JUST THE AUDITOR'S OFFICE. IT'S, IT'S EVERY YEAH. 'CAUSE SOME OF THOSE FINDINGS HAD TO DO WITH THE TREASURER'S OFFICE. RIGHT. I THINK THERE WAS SOME, UH, MAYBE SOMETHING WITH THE TAX ACCESSORY COLLECTOR, JUST SOME DIFFERENT, DIFFERENT THINGS, UM, THROUGHOUT THE COUNTY. SO I REMEMBER KAREN, THERE WERE, I MANY WASN'T. THERE WERE ABOUT 16 OR 17, 16 OR 17 FINDINGS THAT, THAT NOW WE HAVE ZERO. SO THAT'S, THAT'S A PRETTY POWERFUL SLATE. RIGHT. AND, AND IT'S EASY. ONE, ONE THING THAT WE'RE PROUD OF TOO IS THAT IT'S EASY FOR US JUST TO POINT THEM OUT AND JUST SAY HERE, BUT A LOT OF PLACES DON'T GO THROUGH AND TRY TO FIX THOSE. AND, AND WHAT WE LOOK AT IS WHEN WE DO HAVE A FINDING, I MEAN OUR JOB IS TO BRING THEM OUT, BUT ALSO WE FEEL THAT OUR JOB IS TO TRY TO HELP COME UP WITH A SOLUTION. BECAUSE A LOT OF THE TIMES, ONCE THE COUNTY WAS AWARE OF WHAT HAPPENED, ESPECIALLY WITH KAREN AND HER GROUP, THEY WOULD SAY, OKAY, HOW CAN WE FIX THIS? AND A LOT OF TIMES BY THE, BY THE TIME WE CAME WITH THE FINAL REPORT THIS, SO THE, THE PROBLEM HAD ALREADY BEEN, BEEN SOLVED AND WAS ALREADY BEING ADDRESSED ALREADY. SO THAT'S ONE OF THE REASONS WHY WE WENT FROM, LIKE YOU SAID, DOUBLE DIGIT FINDINGS DOWN TO TO NONE. YEAH. AND WE'VE, AND I MEAN IF YOU TALK TO, WE WENT OUT TO, WE'RE, WE'RE STILL GOING OUT TO THE PLACES THAT COLLECT CASH, WE'RE STILL PULLING A LOT OF INVOICES, YOU KNOW, WITH, WITH MAKING SURE THAT THAT POLICIES ARE BEING FOLLOWED AND IT'S NOT FROM LACK OF TRYING, IT'S JUST THAT I THINK THAT A LOT OF PEOPLE TOOK THOSE FINDINGS TO HEART INCREASED CONTROLS AND HAVE DONE A LOT TO, TO MAKE SURE THAT THERE AREN'T ANY FINDINGS. SO, AND AGAIN, YOU KNOW, LIKE I SAID BEFORE, LIKE IT SAYS IN THIS REPORT WE GIVE REASONABLE ASSURANCE AND WE CAN'T OFFER ABSOLUTE BECAUSE IF TO ORDER, IN ORDER TO DO THAT, WE'D HAVE TO BE HERE PRETTY MUCH YEAR ROUND AND, AND AUDIT THESE BE ASTRONOMICAL. AND YOU KNOW, WE'VE LOOKED AT ENOUGH AND FOLLOWED UP STANDARDS TO, TO FEEL COMFORTABLE WITH, WITH ISSUING THE OPINION. SO A LOT OF WORK WENT INTO IT ON OUR PART AND THE COUNTY'S PART. GOOD, GOOD. IS THAT IT IS THAT FOR ME? ANYBODY HAVE ANY QUESTIONS? OR LAST YEAR YOU MENTIONED WE SHOULD TRY AND SHOOT FOR THE, OUR FUND BALANCE LEADS UP FOR WHAT IT WAS LAST YEAR AND WE SHOULD BE SETTING OR NEED TO BE AT LEAST THREE MONTHS. IS THAT CORRECT? THAT'S, THAT'S WHAT PEOPLE RECOMMEND, UM, THE FINANCIAL ADVISORS AND THINGS LIKE THAT. AND, AND THAT'S BECAUSE COUNTIES THAT DON'T HAVE THAT RESERVE AND, AND YOU GUYS HAVE BEEN INVOLVED WITH THAT, IF YOU HAVE A FEMA DISASTER OR SOME KIND OF EMERGENCY, IF YOU HAVE NO RESERVES, THE ONLY WAY TO TO ADDRESS THAT STUFF IS TO GO OUT AND GET SHORT TERM FINANCING. AND, AND I THINK A LOT OF PEOPLE THAT DON'T LOOK AT FINANCIALS OR HAVE RUN A COUNTY, THEY LOOK AT FUND BALANCE AND SAY, WELL YOU JUST COLLECTED TAX MONEY, YOU'RE JUST HOLDING IT TO HAVE THIS RESERVE. AND AND THAT'S NOT WHAT IT'S FOR BECAUSE 90% OF THE REVENUE FOR THE COUNTY COMES IN BY THE END OF JANUARY AND YOU'VE GOT FEBRUARY THROUGH SEPTEMBER TO MAKE PAYROLLS BY ROAD MATERIALS, BY ALL THOSE DIFFERENT THINGS. AND AND A LOT OF THE BIG DOLLARS HAVE COME IN AND STOP RIGHT. IN JANUARY. SO YOU HAVE TO HAVE THAT FUND BALANCE THERE IN ORDER TO, IF YOU JUST GOT THE SAME AMOUNT OF REVENUE AND THE SAME AMOUNT OF EXPENDITURES EVERY YEAR, THEN THERE WOULD BE NO NEED FOR FUND BALANCE. BUT IT DOESN'T WORK THAT WAY. WELL YEAH, BAD KNOWS IS WE DON'T HAVE GOOD FUND BALANCE. YOU HAVE A HARD TIME MAKING IT FROM THE LAST THREE MONTHS OF THE YEAR BECAUSE NOBODY PAYS THE TAX UNTIL JANUARY. EXACTLY. I LIKE SIERRA FUND BALANCE ABOUT SIX MONTHS. JUDGE STRICKLAND IS THE COACH. WHEN THE HURRICANE HIT LAST YEAR, THEY DID HAVE A YEAR FUND BALANCE. HE SAID IT HAD NOT BEEN FOR THAT. THAT'D BE DIRE STRAIT. YEAH. YEAH. THAT BREAK UP TO DO THOUGH. BUT THERE'S A LOT OF COUNTIES YOU CAN DO IT CAN DO IT. IT JUST TAKES A LONG TIME, TIME TO DO THAT. YEAH. I THINK IF YOU, IF YOU, YOU KNOW, AND YOU HAD SOME THINGS THIS YEAR, LIKE YOU GOT THOSE PROCEEDS FROM UH, THAT ROAD DAMAGE THAT Y'ALL HAD THE LAWSUIT AND THERE SOME, SOME THINGS LIKE HIS ONE TIME THINGS. BUT I THINK IF YOU GENERALLY KEEP MOVING THAT DIRECTION, YOU, YOU CAN MOVE INTO THE POSITION THAT, THAT WAS TALKING ABOUT A HIRING A HIGHER FUND BALANCE. SO ONCE IT GETS TO A POINT THAT'S KIND OF UP TO Y'ALL AND YOUR CONSTITUENTS TO SEE WHAT THAT NUMBER NEEDS TO BE, BUT IN THE ECONOMY IT SO DEFINITELY NEEDS TO BE, HE'S GOING TO, LIKE I SAID, I'VE APPLAUDED WHAT Y'ALL DONE, BUT IT, YOU KNOW, YOU CAN STILL, IT CAN STILL BE HIGHER, BETTER OFF OFFICE ARE JUST LIKE AT THE HOUSE. DOESN'T CHANGE PAL FOR DEBT. AND JUDGE WOOD MENTIONED EARLIER, YOU DOING SOME EXTRA ON THAT TOO, SO IT'S GOOD. WE ARE, WE'RE WORKING ON THAT MARK. GOOD. OTHER QUESTIONS FOR JOHN? THANK YOU. THANK YOU GUYS. VERY APPRECIATE. I'D LIKE TO SAY AGAIN [00:25:01] THANKS TO KAREN AND HER OFFICE AND ALL OF THE DIFFERENT ELECTED OFFICIALS THAT ARE HERE AND DEPARTMENT HEADS THAT HAVE WORKED FOR US TO THE POINT WHERE WE'RE TODAY AND THIS IS I BELIEVE A HIGHEST FUND BALANCE IN THE GENERAL FUND. WE'VE HAD AN OVER 10 YEARS AND IF I'M NOT MISTAKEN, AND UH, IN FACT MAYBE 12 YEARS, BUT UH, UH, I HAD THAT AT ONE TIME, BUT THAT'S A MUCH BETTER POSITION THAN WHERE WE WERE. SO, AND WE WOULD LIKE TO REITERATE THAT TOO. WORKING WITH, WITH KAREN AND KW AND THEY DO A SUPER JOB AND IT REALLY MADE THE AUDIT A LOT EASIER PROCESS FOR US. SO WE APPRECIATE THEIR HELP AS WELL. RIGHT. OKAY GENTLEMEN, IF WE DON'T HAVE ANY OTHER QUESTIONS, DO I HAVE A MOTION TO ACCEPT THE OUTSIDE AUDIT RECORD? I HAVE A MOTION. COMMISSIONER PHILLIPS, DO I HAVE A SECOND? SECOND. COMMISSIONER BARBARA SECOND THE MOTION. ALL IN FAVOR SAY AYE. THOSE THANK YOU VERY MUCH. THANK YOU. WELL I THINK THEY UH, THEY KIND OF WANTED TO STAY THERE, I BELIEVE. IS THAT WHAT YOU, YOU KNOW. OKAY. WELL WE, WE, WE WE CAN VISIT, YOU KNOW, SO. ALRIGHT, UM, ITEM NUMBER UH, FOUR IS UH, TO DISCUSS, CONSIDER APPROVING PURCHASE OF BODY CAM EQUIPMENT FOR CONSTABLE PRECINCTS THREE, UH, OFFICE TO BE USED FOR PARTICIPATION AND ADMINISTRATION OF THE PRETRIAL INTERVENTION PROGRAM FOR ELIGIBLE. I'M SORRY, I'VE GOT NO, I'M RIGHT WHERE I NEED TO BE. YEAH. FOR ELIGIBLE DEFENDANTS PURSUANT TO TEXAS CODE CRIMINAL PROCEDURE ACT 1 0 2. 1 0 1 2 1 NUMBERS. SO CONSTABLE STEVENS AND COACH, UM, MY BOSS AND WANTED TO USE SOME OF THE FUNDS THAT WE USE FOR OUR PRETRIAL INTERVENTION PROGRAM. IN ORDER TO DO THAT, WE HAVE TO REQUEST THAT, UH, PERMISSION FROM YOU GUYS. AND SO THIS LINE ITEM DOES THAT? YEAH, THIS IS ON THE, ON BODY CAMERAS. OKAY. I'VE GOT CURRENTLY HAVE TWO, I'VE GOT FOUR OFFICERS THAT WORK THERE. THIS IS OVER AND ABOVE THE TWO I FOR IN MY BUDGET. THOSE OTHER TWO WILL BE BACKUPS IN CASE ONE GETS BROKE OR SOMETHING. OR IF WHEN THE DEPUTY'S CAMERA'S FULL, ALL THEY GOTTA DO IS COME IN AND PUT IT IN A DOCKING STATION, PICK UP A NEW ONE AND THEY'RE BACK ON THE ROAD AGAIN. SO WE'RE JUST ASKING FOR APPROVAL ON THAT THROUGH THE DA DA'S OFFICE. ALRIGHT, I'LL MAKE MUCH. OKAY. PRETTY GOOD DEAL FOR US. YEP. GOOD DEAL. I HAVE A MOTION FROM COMMISSIONER PHILLIPS TO HAVE A SECOND. YES I DO. COMMISSIONER BARBARA SECONDS. ANY OTHER DISCUSSION? ALL IN FAVOR SAY AYE. A VOTE. THE GOOD DEAL, SIR. APPRECIATE WORKING WITH THE DA'S OFFICE TO GET THE DONE. UH, THE NEXT ITEM IS TO DISCUSS AND CONSIDER, UH, CONTRACT AND AGREEMENT BETWEEN KAMAN COUNTY AND THE DEPARTMENT OF STATE HEALTH SERVICES, UH, VITAL STATISTICS DEPARTMENT TO ACCESS THE DSHS VITAL EVENT ELECTRONIC REGISTRATION SYSTEM PENDING THE DSH S'S APPROVAL OF CHANGES. THAT'S A, THAT'S A MOUTHFUL. BASICALLY WHAT IT IS, IS IT'S A CONTRACT FOR US TO HAVE A STATE COMPUTER IN OUR OFFICE THAT ALLOWS US TO PRINT BIRTH CERTIFICATES FOR ALL OF TEXAS SO THAT WAY CITIZENS DO NOT HAVE TO GO BACK TO THE COUNTY WHERE THEY WERE BORN. THEY CAN COME TO THE COUNTY CLERK'S OFFICE AND GET IT, BUT WE DO HAVE TO HAVE THE CONTRACT IN PLACE AND WE RENEW IT, I BELIEVE EVERY TWO YEARS. YES. SO THIS YEAR THE CONTRACT IS A LITTLE DIFFERENT. AND JUDGE, I GOT ANNABELLA EDITED ONE FOR YOU BECAUSE AT THE LAST MINUTE WE HAD TO DO SOME EDITS TO THE NEW CONTRACT. UM, SO WE'RE ASKING THAT YOU APPROVE THIS CONTRACT, UM, PENDING THE APPROVAL FROM THEM OF THE EDITS AND THE COUNTY GETS, UM, BASICALLY $20 PER PER CERTIFICATE AND THE STATE GETS LIKE A DOLLAR 80. SO IT'S REVENUE ROLLS. YEAH. SO, UH, HOW MANY REQUESTS? OH, FIVE. FIVE YEARS. I'M SORRY. FIVE YEARS. DO YOU ALSO, UH, DO WE HAVE A LOT OF PEOPLE COME IN AND REQUEST BIRTH CERTIFICATES FROM A LOT AND A LOT OF THEM ARE FROM ALL OVER. I MEAN THEY'RE, YOU KNOW, WE GETTING QUITE A BIT. I REQUESTED ONE HERE A FEW YEARS AGO AND, AND THEY COULDN'T DO IT. OKAY. AND WE'RE GETTING A LOT MORE BECAUSE TERRELL DOESN'T ISSUE THE BIRTH CERTIFICATES ANYMORE. THEY'VE ALL COME THROUGH OUR OFFICE NOW, SO WE'VE SEEN AN INCREASE IN THAT. 'CAUSE THEY USED TO BE ABLE TO GO TO TERRELL AND WHEN THEY WENT TO TERRELL THEY HAD TO WAIT AND GO BACK 24 HOURS LATER. BUT WITH US, WE PRINT EVERY RIGHT WHILE THEY WAIT. GOOD. PRETTY LONG, PRETTY DETAILED CONTRACT. AND I KNOW REBECCA, I THINK YOU AND KAREN OR YOU OR BOTH OF YOU HAVE BEEN WORKING ON THAT. SO MS. HUGHES HAD A MEETING THIS MORNING. SHE ASKED ME TO COME WITH MOLENE, BUT YEAH, HER OFFICE AND OURS WORKED A LOT OF TIME ON THESE THREE [00:30:01] CONTRACTS AND THEY'RE REALLY ONLY, UM, JUST A FEW CHANGES ON THE SECOND DOCUMENT AND THE DEPARTMENT SAID THAT THEY PROBABLY WILL HAVE NO PROBLEM GETTING 'EM PASSED. SO I JUST WENT AHEAD AND PUT 'EM IN YOUR CONTRACT SO YOU CAN SIGN THAT ONE WITH THE CHANGES. OKAY. BUT ANYBODY HAVE ANY QUESTIONS? NO, THAT WAS GOOD. I'LL MAKE A MOTION. COMMISSIONER ALLEN MAKES THE MOTION TO APPROVE, UH, SECOND COMMISSIONER'S SECOND MOTION IN ALL IN FAVOR TO SAY A THANK YOU. NEXT ITEM IS ITEM NUMBER SIX, AND IT IS TO DISCUSS AND CONSIDER, CONTINUE AN AGREEMENT WITH THE REGIONAL PUBLIC DEFENDERS, UH, FOR CAPITAL CASES AND, AND PAYING THE INVOICE. UH, WE, UH, I'VE TALKED WITH THE, UH, UH, THE JUDGES AND, UH, THE TWO DISTRICT JUDGES AND WE DO HAVE, THIS IS A GROUP THAT WE'VE BEEN A PART OF, UH, SINCE 2013, I BELIEVE WHEN THEY FIRST STARTED. AND, UH, THEY HAVE SENT US AN ADDITIONAL, THEY HAVE SENT US, UH, THE INFORMATION. OUR FEE IS EXACTLY THE SAME, I BELIEVE 65,000, WHICH IS A, UH, A VERY, UH, I MEAN THAT'S A GOOD, GOOD, UH, GOOD FEE FOR US. AND HOPEFULLY WE WILL NEVER HAVE ANY MORE CAPITAL MURDER TRIALS. WE HAD THOSE TWO THAT YOU RECALL, UH, AND THEY'RE VERY EXPENSIVE. BUT WE ARE AT THE POINT NOW WE'VE ASKED THE, UH, CHIEF, UH, UH, THE EXECUTIVE DIRECTOR OF THIS GROUP TO COME TO THE COUNTY AND TALK, UH, WITH, UH, THE JUDGES AND, UH, OTHER INTERESTED INDIVIDUALS THAT MIGHT WANT TO ATTEND. UH, WE HAD SOME VERY EXORBITANT, UH, EXPERT WITNESS FEES AND I'M TALKING ABOUT A LOT OF MONEY THAT WE SPENT THAT IS NOT COVERED BY THIS. AND SO I THINK WHAT I WOULD ASK, AND, UH, KAREN, WERE Y'ALL IN THE MEETING, KAREN OR, UH, OR YOU WERE, I I WAS NOT IN THE MEETING, BUT I, I TALKED IN DETAIL WITH HER BOSS ABOUT THE AGREEMENT AND SHE JUST WANTED TO REQUEST THAT YOU GUYS, UM, CONSIDER YOUR OPTIONS AND THEN MEET WITH THE DIRECTOR SO THAT YOU CAN ASK HIM DETAILED QUESTIONS. AND AS FAR AS THE CONTRACT GOES, WE HAVE, UM, 180 DAY NOTICE PERIOD. SO IT'S ABOUT SIX MONTHS OUT. SO BECAUSE WE'RE GOING INTO THE BUDGET CYCLE, WE'RE AT THAT POINT WHERE WE NEED TO MAKE THAT CONSIDERATION IF WE'RE LOOKING AT GOING A DIFFERENT WAY. OKAY. AND, UH, SO WE'VE GOT THIS NUMBER PLUGGED IN THE BUDGET, YOU KNOW, TO, TO HAVE IT. BUT THERE ARE SOME, UH, QUESTIONS I THINK THAT THAT NEED TO BE, UH, UH, ANSWERED BY THIS GROUP, UH, PARTICULARLY ON THE EXTRANEOUS COSTS THAT WENT ALONG WITH THE TWO MURDER CASES WE HAVE. SO, UH, I DON'T THINK WE NEED TO TAKE ANY ACTION. UH, WE'VE GOTTA CONSIDER, UH, ON HERE, BUT RIGHT NOW, SINCE THE CONTRACT IS NOT UP FOR A FEW MORE MONTHS, UH, I WOULD SUGGEST WE JUST TABLE THIS AND THEN, THEN LET US COME BACK AND APPROVE IT OR WHATEVER WE DECIDE TO DO WITH IT AND NOT, WE'RE NOT SAYING WE'RE NOT GOING TO DO IT, WE NEED SOME MORE INFORMATION. SO IF YOU WOULD CONSIDER A MOTION TO, UM, TABLE THAT FROM, FROM SOMEBODY. YEAH. I'LL MAKE, I'LL MAKE A MOTION TO TABLE THIS ITEM BECAUSE WE DISCUSSED IT A LONG TIME YESTERDAY AND, UH, I TOTALLY AGREE THOUGH. ALL THE EXTRA FEES WITH, I THINK MAYBE WE BE ABLE TO PUT A CAP ON. I CALLED THE OFFICE YESTERDAY AND THEIR UH, UH, THEIR EXECUTIVE DIRECTOR'S ON VACATION THIS WEEK AND UH, I'M SURE HE'LL BE GETTING BACK NEXT WEEK AND, UH, HE OR SOMEONE FROM THIS GROUP WILL COME TO THE COUNTY. BUT IF WE HAVE A MOTION FROM COMMISSIONER PHILLIPS TO HAVE A SECOND FROM COMMISSIONER BARBER. ANY OTHER DISCUSSION? ALL IN FAVOR SAY AYE. A. THOSE OPPOSED. AND THEN THE NEXT ITEM IS, UH, UH, IS MISSPELLED WORD HERE. NOT, UH, BUT I'LL UH, POINT THAT OUT TO YOU TO DISCUSS AND CONSIDER ENTERING INTO AN AGREEMENT WITH FIRE TROLL PROTECTION SERVICES, NOT FOR TROLL UH, PROTECTION SERVICES, FOR FIRE EQUIPMENT TESTING AND INSPECTION AT THE KAUFFMAN COUNTY LAW ENFORCEMENT CENTER USING THE TMA TEX MOSS TMA CONTRACT NUMBER 17 DASH THREE FA FOUR. LISA, I BELIEVE YOU HAVE THAT INFORMATION. YES, SIR. UH, THIS WAS BROUGHT TO ME BY SHERIFF BEAVERS, UH, BELIEVE YOU GENTLEMEN WERE PROVIDED WITH A COPY OF CONTRACT, UH, DA'S OFFICE HAS REVIEWED. THEY HAVE, UH, REQUESTED A FEW CHANGES WHICH FIRE PATROL HAS, UH, ACCEPTED THE CHANGES. I DON'T BELIEVE YOU HAVE THE REVISED COPY YET, BUT, UM, THIS IS, UH, NECESSARY. THIS IS WHAT'S [00:35:01] NECESSARY TO KEEP THEM IN COMPLIANCE WITH THE JAIL STANDARDS TO HAVE ALL OF THEIR EQUIPMENT TESTED ON A REGULAR BASIS AND CORRECTIONS IF NEEDED. AND SO THIS IS PART OF, ONE OF THE, BY ONE OF THE GROUPS UNDER TEXT MASTER WITH, SO, OKAY. ANYBODY HAVE ANY QUESTIONS? MOTION, HAVE A MOTION FROM THE COMMISSIONER. ALLEN? DO I HAVE A SECOND? I'LL SECOND. UH, COMMISSIONER HUNTER? UH, HUNT. NOT HUNTER. HUNTER. COMMISSIONER. SECOND MOTION. ANY OTHER DISCUSSION? ALL IN FAVOR SAY AYE. AYE. THANK YOU VERY MUCH. AND THE NEXT ITEM IS TO DISCUSS AND CONSIDER A SETTLEMENT AGREEMENT WITH MR. BOBBY EDWARDS ON FOR DAMAGES TO COUNTY ROAD 1 24 AND 1 25 AND PLACE IN ROAD MATERIALS ACCOUNT 0 2 1 0.3 3 1 0 6 0 1. AND UH, BASICALLY WE HAD SOMEONE THAT WAS, UH, DRIVING HEAVY EQUIPMENT DOWN THE ROADS, THE DAMAGE, AND WE JUST REACHED THE SETTLEMENT CHARGES AND PICTURES. I THINK YEAH, THE PICTURES AND EVERYTHING ARE IN HERE. IT JUST, YOU KNOW, MEAN I ROAD SOME, SOME OF OUR ROWS OFF THE BENCH ROWS, BUT STILL WE DON'T NEED TO GIVE THEM FREE WILL TO TEAR 'EM UP. RIGHT? SO SO YOU HAVE TO FIX THE BASE. WELL THERE'S, YEAH, SO THE HEAVY EQUIPMENT REALLY DOES A LOT OF DAMAGE AND, AND I WANT PLUG THE SHERIFF'S DEPARTMENT IN THE DA'S OFFICE FOR HELPING US, UH, GET SOMETHING DONE HERE. AND UH, SO AGAIN, WE JUST NEED TO MAKE A STATEMENT THAT, YOU KNOW, THEY NEED PUT ON A, OKAY. HAVE ANY QUESTIONS? NO. UH, COMMISSIONER, DO YOU WANT TO PUT THAT IN A FORM OF A MOTION? I'LL MAKE A MOTION. DO WE ACCEPT THE RE COMMISSIONER HUNT? UH, PUTS THAT IN PLACES. IS THAT IN A MOTION? DO I HAVE A SECOND? SECOND. SECOND FROM COMMISSIONER BARBER. ANY OTHER DISCUSSION? ALL IN FAVOR SAY AYE. AYE. THOSE S ITEM NUMBER NINE. I HAVE A QUESTION. IS THIS THE, THE ONE THAT WE ALREADY SETTLED WITH? UH, YES, WE SETTLED WITH. OKAY, THIS WEEK. EARLIER THIS WEEK. I'LL FIX THE LINE AND THAT'S THE WRONG LINE ITEM. THE BUDGET INCREASE THIS EXPENDITURE, PUT IT IN THERE. OKAY. OKAY. I JUST WANTED TO MAKE SURE IT WASN'T ADDITIONAL. OKAY. I JUST WOULD LIKE TO GET THE MONEY BACK IN THERE WHERE I CAN SPEND IT ON MATERIAL. OKAY. WILL DO. ALRIGHT, UH, NEXT ITEM IS TO DISCUSS AND CONSIDER APPROVING AN INTERLOCAL AND PROJECT AGREEMENT WITH THE CITY OF COMBINE FOR CIRCLE DRIVE IN COFFMAN COUNTY PRECINCT NUMBER FOUR. COMMISSIONER, I BELIEVE YOU HAVE THAT IN. THAT'S FINE. WE'VE ALREADY, UH, WE DID ONE FORM LAST YEAR. WE DID ANOTHER ONE THIS YEAR. UH, THE AMOUNT, UH, MAY CHANGE IF THEY SO CHOOSE TO DO SOMETHING DIFFERENT BUT IN THE TOWARD END OF THE SUMMER BEFORE IT'S COMPLETED. STANDARD INTERLOCAL LIKE A MOTION EXCEPT WE HAVE AN INTERLOCAL AND A PROJECT AGREEMENT PROJECT. AGREE? YES. ALRIGHT. ANYBODY HAVE ANY QUESTIONS? UH, I BELIEVE WE HAVE A MOTION, UH, UH, FROM COMMISSIONER ALLEN. DO I HAVE A SECOND? SECOND. SECOND. FROM COMMISSIONER PHILLIPS. ALL IN FAVOR SAY AYE AND I, THOSE PARTIES, IF YOU'LL TURN TO THE NEXT PAGE, I'M GONNA TAKE, UH, A COUPLE OF ITEMS BEFORE WE GO INTO THE EXECUTIVE SESSION. UH, IF YOU'LL MOVE DOWN TO ITEM NUMBER 14, UH, WE ARE GO AHEAD AND, AND GET THESE ITEMS DONE BEFORE WE GO INTO OUR CLOSED SESSION. UH, THAT WOULD BE TO DISCUSS AND CONSIDER APPROVING PAYROLL AND BENEFITS. YOUR PAYROLL AMOUNT IS MEGAN 157,000 151 51. OKAY. AND WE HAVE COPIES OF THAT, I BELIEVE, UH, THAT COVERS THAT INFORMATION. ANYBODY HAVE ANY QUESTIONS? NO, I'M NO REGISTER. WHO DID? I DID? YOU DID. OKAY. HAVEN TO LOOK BACK AND FORTH A LITTLE WIDE. IT'S A GOOD EXERCISE. IT IS. COMMISSIONER PHILLIPS MADE THE MOTION. COMMISSIONER BARBER SECONDS THE MOTION. ALL IN FAVOR SAY AYE. A. A. ALRIGHT, NEXT ITEM IS NUMBER 15 AND THAT IS TO DISCUSS AND CONSIDER LINE ITEM TRANSFERS. THESE WERE EMAILED TO YOU EARLIER DURING THE WEEK. ARE THERE ANY QUESTIONS? NOPE. OKAY. ANYBODY HAVE ANY NO GOOD QUESTIONS OR DO I HAVE A MOTION TO APPROVE? SO MAY COMM UH, COMMISSIONER ALLEN MAKES THAT MOTION. DO I HAVE A SECOND? SECOND. COMMISSIONER HUNT. SECOND MOTION. ALL IN FAVOR SAY AYE. AYE. SO OPPOSED. ITEM NUMBER 16 IS NOW TO DISCUSS AND CONSIDER CLAIM FOR PAYMENT. CLAIMS [00:40:01] FOR PAYMENT ARE 690,000 3 97 85. OKAY. . AND WE'VE ALSO RECEIVED COPIES OF THAT, UH, ON OUR EMAIL. UH, AND SO ANYBODY HAVE ANY QUESTIONS? NO. I'LL ENTERTAIN A MOTION TO, UH, APPROVE CLAIMS. I'LL MAKE A MOTION. COMMISSIONER BARBARA MAKES THAT MOTION TO HAVE A SECOND. I HAVE A SECOND. SECOND FOR COMMISSIONER ALLEN. ALL IN FAVOR SAY AYE. UH, THE NEXT ITEM, UH, WE'RE GOING TO TAKE A QUICK BREAK. LET ME GO AHEAD AND, UH, UH, READ THIS. UH, I DO NEED A MOTION, UH, TO, UH, EXIT THIS REGULAR MEETING AND ENTERING INTO AN EXECUTIVE SESSION MOTION. ALRIGHT, WE HAVE A MOTION FROM COMMISSIONER BARBER AND I'M GOING TO NOTE THE TIME IS AT 9:39 AM AND DO I HAVE A SECOND? SECOND. AND I DID, UH, PHILLIP, ALL IN FAVOR SAY AYE. AYE. OKAY. AND NOW LET ME GO AHEAD AND, UH, READ THE REASON WE'RE GOING INTO THE CLOSED SESSION AND DUE TO OUR NEW COURTROOM, YOU GUYS CAN JUST SIT HERE AND ENJOY THE COMFORT OF THE CHAIRS AND WE'RE GOING TO GO INTO THE COMFORT AND WE DON'T HAVE VERY GOOD CHAIRS IN THERE. SO WE'RE GOING TO GO IN, IN THE NEXT DOOR. NONE IN THERE. EVERYBODY'S GONNA HAVE TO LEAVE. WELL, THAT'S A HECK A NO. I DON'T HAVE ANYBODY FOR MAINTENANCE HERE. WE WILL, UH, I DON'T THINK WE'LL BE IN, UH, EXECUTIVE SESSION VERY LONG, KAREN. NOT, NOT TOO LONG. OKAY. SO I'M SORRY IF YOU LET ME READ THIS AND THEN WE'LL ASK THE, UH, AUDIENCE TO LEAVE EXCEPT FOR THE DISTRICT ATTORNEYS. UH, FOLKS, UH, THIS EXECUTIVE SESSION IS PURSUANT TO SECTION 5 5 1 0 7, 1 OF THE TEXAS GOVERNMENT CODE. THE COMMISSIONER'S COURT WILL MEET IN CLOSED SESSION, UH, TO CONSIDER PENDING OR CONTEMPLATED, UH, LITIGATION SUBJECTS OR SETTLEMENT OFFICERS OFFERS THE FOLLOWING CASES SUBJECT MAY BE DISCUSSED, KAUFFMAN COUNTY, UH, TEXAS VERSUS ROCK SOLID, UH, CRUSHED STONE INCORPORATED AND BODY C UH, PAN COOK JR. UM, UH, FILE CAUSE NUMBER 9 2 6 3 1 8 6 KAUFFMAN COUNTY, TEXAS VERSUS JIMMY DAVIS AND THE TEXAS WORKFORCE COMMISSION. UH, JANUARY THE FIRST, 2017. ANITA REKA, RU KAUFFMAN COUNTY AND KAUFMAN COUNTY SUPERVISION AND CORRECTIONS DEPARTMENT FILED THREE 18 CASE NUMBER CV DASH 0 0 2 6 FOURC CLAIM OF CARL LAIRD JR. AGAINST KAUFFMAN COUNTY, TEXAS. SO, UH, THAT IS THE ITEMS WE'LL BE CONSIDERING. AND SO IF YOU NOW WILL, UH, EXIT THE ROOM AND UH, WE'LL MAKE SURE WE GET SOME CHAIRS IN OUR ROOM. COMMISSIONER, COMMISSIONER BARBER MAKES THE MOTION IN COMMISSIONER PHILLIPS SECONDS. AND PLEASE NOTE THAT THE TIME IS WHAT I SAY 10 27TH I PHILLIPS STATE. YEAH, THAT'S FINE. OKAY. ARE Y'ALL THE SECOND ? WE'RE NOT ARGUING WITH YOU. WELL, I JUST, YOU KNOW, YOU, YOU'RE GOOD. OKAY. WE'RE HITTING SOFT CONCESSION SNICKERING OR SOMETHING. THOUGHT WELL. ALRIGHT. ALL IN FAVOR SAY AYE. A AYE. THOSE OPPOSED? ALL ON ITEM NUMBER 13. DO I HAVE ANY MOTION? I DON'T BELIEVE THERE WAS. THERE'S NO ACTION TO TAKE. SO WE WILL, UH, THERE WAS AN UPDATE ON THESE VARIOUS ITEMS THAT WERE LISTED. UH, AND I BELIEVE THAT'S ALL WE HAVE. I, I NEED A MOTION TO, UH, ADJOURN. COMMISSIONER PHILLIPS WILL MAKE A MOTION. THE MOTION. I SECOND. COMMISSIONER ALLEN ALLEN. SECOND. ALL IN FAVOR SAY AYE. THANK YOU VERY MUCH. WAIT, JUDGE, SIR WE DIDN'T VOTE ON AUR. WE DIDN'T, WE DIDN'T. WE DIDN'T ADJOURN BOTH TO ADJOURN. ANNABELL DIDN'T GET IT EITHER. WE GOT UH, ACT NO ACTION TAKEN. PHILLIPS AND ALLEN, WE TO ADJOURN. WHO ADJOURNED? COMMISSIONER PHILLIPS. SHE PAID THE MOTION. I SECONDED THE MOTION. SO WE ALL VOTED TO SAY A I THOUGHT THAT WAS ON [00:45:01] NO ACTION. THAT'S ON NO ACTION TAKEN IN EXECUTIVE SESSION. NO, THEY SAID ADJOURNED. THEY SAID ADJOURNED TO ADJOURN. I HEARD HIM ADJOURNED. YEAH. OKAY, SO WE'LL VOTE. REMEMBER WHEN HE SAID COMMISSIONER PHILLIPS MAKES THE MOTION TO ADUR? SHE SAID THERE'S NO ACTION TO TAKE. OKAY. GOT IT. AND THEN AFTER THAT COMMISSIONER PHILLIPS SAID, SAID THE WORDS, COMMISSIONER PHILLIPS MAKES THE MOTION. MR. I JUST, IT WILL, UM. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.