************************ OFFICIAL TRANSCRIPT BOARD OF COUNTY COMMISSIONERS JOHNSON COUNTY, KANSAS THURSDAY, AUGUST 13, 2009 *************************

The following is a publication of the Office of the Board of County Commissioners produced under the direction of Casey Joe Carl, Clerk of the Board.

************************ TABLE OF CONTENTS Business Session

CALL TO ORDER AND OPENING CEREMONIES .................................................................................................................................... Page 3 of 16 Charles Letcher .............................................................................................................................................................................................................. Page 3 of 16 PUBLIC COMMENTS ............................................................................................................................................................................................. Page 3 of 16 Ben Brown, 4333 West 175th Street, Stilwell ........................................................................................................................................................ Page 3 of 16 Mr. Brown discussed two dangerous areas of low water crossing that he would like to County to address. NOTES FOR THE RECORD ................................................................................................................................................................................. Page 4 of 16 The Chairman noted for the record that she would be signing a submittal of Kansas Department of Transportation Form 1302 for FY 2010 Congestion Mitigation/Air Quality funds in the amount of $741,000, originally approved on March 27, 2008. CONSENT AGENDA................................................................................................................................................................................................ Page 4 of 16 1. Approving the July 23, 2009, Business Session minutes. ................................................................................................................... Page 4 of 16 Passed (7-0-0) Reappointing Brad Weisenburger, 15329 Lake Road 2, Gardner, as a sixth district representative to the Airport Commission through July 31, 2012............................................................................................................................... Page 4 of 16 Passed (7-0-0) Approving an agreement with the Lawrence Police Department for the provision of criminalistic laboratory services by the Sheriffs Office Criminalistics Laboratory. ............................................................................................. Page 4 of 16 Passed (7-0-0) Approving one additional 0.6 full-time equivalent employee for a Womens Infants and Childrens secretary position to be funded by a grant from the State of Kansas and the United States Department of Agriculture, at no cost to the County ........................................................................................................................... Page 4 of 16 Passed (7-0-0) Resolution No. 057-09. Authorizing projects for the Department of Records and Tax Administration, acting in the capacity of the Register of Deeds, and reallocating and further appropriating Register of Deeds Technology Fund monies in an amount not to exceed $3,800,000 for FY 2009 and FY 2010 projects ........................................................................................................................................................ Page 4 of 16 Passed (7-0-0)

2.

3.

4.

5.

ACTION AGENDA ................................................................................................................................................................................................... Page 4 of 16 6. Consider authorizing funding for twelve Johnson County Heritage Trust Fund projects in the amount of $250,000. ................................................................................................................................................................................ Page 4 of 16 Passed (7-0-0) Consider approving an application to the Kansas Housing Resources Corporation for the Homeless Prevention and Rapid Re-housing Program pursuant to the American Recovery and Reinvestment Act, at no cost to the County .......................................................................................................................................... Page 5 of 16 Motion Passed (7-0-0)

7.

Page 1 of 16

TABLE OF CONTENTS (Continued)

8. Resolution No. 060-09. Consider supporting the inclusion of Johnson County in the foreign trade zone service area of the Greater Kansas City Foreign Trade Zone, Inc., for the purpose of implementing new alternative site designation procedures for securing foreign trade zone status within the County and approving a letter communicating County support of the same. ................................................................ Page 5 of 16 Motion Passed (7-0-0) Resolution No. 058-09. Consider adopting the FY 2010 Budget and FY 2010-2014 Capital Improvement Program............................................................................................................................................................................. Page 6 of 16 Motion Passed (7-0-0)

9.

REPORTS AND COMMUNICATIONS ........................................................................................................................................................... Page 13 of 16 10. Management Reports.......................................................................................................................................................................... Page 13 of 16 a. American Recovery Reinvestment Act Update ............................................................................................................................. Page 13 of 16 b. Community Survey............................................................................................................................................................................ Page 13 of 16 c. Weekly Manager Memo ................................................................................................................................................................... Page 14 of 16 d. Feed The Need.................................................................................................................................................................................... Page 14 of 16 COMMISSION COMMENTS ............................................................................................................................................................................. Page 14 of 16 Johnson County Fair ............................................................................................................................................................................................... Page 14 of 16 The Chairman thanked the volunteers who put together the Johnson County State Fair. She also noted the past contributions of Kenneth McGinnis, who was a major part of the fair effort throughout his entire life. Commissioner Wood added that he attended the fair and enjoyed the cured ham portion best. .................................................................................................................................................................................................................. Page 15 of 16 Commissioner Hayden thanked the commissioners for coming to the fair. ........................................................................................................ Page 16 of 16 Clerks Office Government Transparency Award .......................................................................................................................................... Page 14 of 16 The Chairman congratulated the Clerk and deputy clerks for receiving the Government Transparency Award from SIRE Technologies. Elections Office Stars and Stripes Award ........................................................................................................................................................... Page 15 of 16 The Chairman congratulated the Elections Office for receiving the Stars and Stripes award for outstanding partnership at the Election Centers annual national conference. Schedule Reminders ................................................................................................................................................................................................ Page 15 of 16 The Chairman reminded everyone of the Mid-America Regional Council Transportation 2040 Plan Committee of the Whole scheduled at 1:30 p.m. Remodeling Loan Program..................................................................................................................................................................................... Page 15 of 16 Commissioner Lindstrom noted a program sponsored by Mid-America Regional Council and the Community America Credit Union providing low interest loans for people to weatherize their homes in the unincorporated areas of Johnson County. Environmental Issues .............................................................................................................................................................................................. Page 15 of 16 Commissioner Wood noted that he attended the environmental forum regarding the planned development of the Burlington Northern Santa Fe logistics park. He shared some recommendations and suggestions that have been made for the project. Olathe School Convocation .................................................................................................................................................................................... Page 16 of 16 Commissioner Wood noted that he and Commissioner Eilert had attended the Olathe School convocation festivities this year. Danielle White ........................................................................................................................................................................................................... Page 16 of 16 Mr. Zacharias introduced Danielle White, a new intern from K-U who will be working with the County for the next year.

Page 2 of 16

Official Transcript Board of County Commissioners Business Session August 13, 2009 Page 3 of 16

CALL TO ORDER AND OPENING CEREMONIES A regular meeting of the Board of County Commissioners of Johnson County, Kansas, was convened at 9:33 a.m. on Thursday, August 13, 2009, and was called to order by Chairman Annabeth Surbaugh. The roll being called, it was found the following Members were present and participating; to wit: 1st District Commissioner: 2nd District Commissioner: 3rd District Commissioner: 4th District Commissioner: 5th District Commissioner: 6th District Commissioner: Chairman: C. Edward Peterson Jim Allen David A. Lindstrom Ed Eilert Douglas E. Wood Calvin Hayden Annabeth Surbaugh Present [arrived after roll call] Present Present Present Present [arrived after roll call] Present Present

Also in attendance were Deputy County Manager Hannes Zacharias and Chief Counsel F. Lawrence McAulay, Jr. Serving as Clerk of the Board, Casey Joe Carl. ****** THE CHAIRMAN: Good morning and welcome to the Board of County Commissioners meeting for August 13th. Were glad you could join us today. Let the record reflect we have a quorum present. PLEDGE OF ALLEGIANCE The Chairman led the Board and assembled guests in reciting the Pledge of Allegiance to the Flag of the United States of America. Charles Letcher THE CHAIRMAN: Before we begin, on a sad note, I would like to extend our condolences on behalf of the Board to Mick Letcher, who lost his father, Charles Letcher, on August 12. Visitation has been scheduled for this evening, and the funeral is scheduled for tomorrow. Our thoughts are with him and his family during this difficult time. PUBLIC COMMENTS [Commissioners Wood and Peterson joined the meeting.] The Chairman, on behalf of the Board, opened the public comment portion of the meeting. Thereupon, the courtesy of the floor was extended to: Ben Brown, 4333 West 175th Street, Stilwell, appeared before the Board and made the following comments: MR. BROWN: I live between two ancient low water crossings. These crossings, which years ago and Im going to ask at this point that these photographs be distributed to the members of the Commission. Thank you very much. These photographs depict those two low water crossings between which I live. These are death traps. They have been eaten at by trash, debris, tree trunks, and junk of all descriptions for years. The concrete between the three flow holes in each of these crossings is badly eroded, as you can see from the photographs that Ive given you. The crossings serve only to catch and accumulate debris. The crossings are an extremely dangerous situation. Whenever we have heavy rains, they become death traps. Three times in the last four years, cars have been washed off of 175th Street into the raging waters of Camp Branch Creek. Fortunately, in all three of those instances, the cars were driven and occupied by just one person, young men in their early 20s who were able to escape their cars and make their way to our house. Two of these young men we gave lodging to overnight. Today, it wouldnt be possible to escape a car washed off of that crossing because of the rip wrap that has been placed on the banks of the creek to prevent erosion. In each case, I wrote a letter to your Board calling your attention to the life-threatening aspects of this situation. The signs that Public Works has put up do no good. There were other signs earlier. We watch as cars and trucks plow through the swollen waters. These deteriorated crossings can be inexpensively and I say inexpensively advisedly because I know that this kind of thing does cost money. However, they can be inexpensively replaced by box culverts. Theres no need to make major changes in the elevations. We just need to let the water through. These low water crossings dont let the water pass. They force it over the road. If we dont address this situation, were going to have deaths, and especially because of all that rip wrap thats been placed along the shorelines. Today, any person escaping a car would be torn to pieces on that rip wrap. You have the photos in front of you. Now lets save some lives. Once the school boundaries change, and theyre going to with the new high school coming on, the traffic on 175th Street, cars driven by kids who are just foolhardy enough to dare those waters when they shouldnt. Its a horrible situation. Still, we havent had any deaths yet. Folks, lets address this before we do. Thank you. THE CHAIRMAN: Thank you, Mr. Brown.

Page 3 of 16

Official Transcript Board of County Commissioners Business Session August 13, 2009 Page 4 of 16

The Chairman called for further comments from the public and, hearing none, closed the public comment portion of the meeting. NOTES FOR THE RECORD The Chairman noted for the record that she would be signing a submittal of Kansas Department of Transportation Form 1302 for FY 2010 Congestion Mitigation/Air Quality funds in the amount of $741,000, originally approved on March 27, 2008. CONSENT AGENDA 1. 2. Approving the July 23, 2009, Business Session minutes. Reappointing Brad Weisenburger, 15329 Lake Road 2, Gardner, as a sixth district representative to the Airport Commission through July 31, 2012. Approving an agreement with the Lawrence Police Department for the provision of criminalistic laboratory services by the Sheriffs Office Criminalistics Laboratory. Approving one additional 0.6 full-time equivalent employee for a Womens Infants and Childrens secretary position to be funded by a grant from the State of Kansas and the United States Department of Agriculture, at no cost to the County. Resolution No. 057-09. Authorizing projects for the Department of Records and Tax Administration, acting in the capacity of the Register of Deeds, and reallocating and further appropriating Register of Deeds Technology Fund monies in an amount not to exceed $3,800,000 for FY 2009 and FY 2010 projects.

3.

4.

5.

THE CHAIRMAN: Is there a Commissioner who wishes to remove an item from the Consent Agenda? The Chairman asked if there was a member of the public who would like to remove an item from the Consent Agenda. Hearing none, it was back before the Board. Commissioner Wood moved to Approve the Consent Agenda, as presented. Commissioner Allen seconded the motion. The roll being called, the result was as follows: AYES: Peterson, Allen, Lindstrom, Eilert, Wood, Hayden and Surbaugh (7) NOES: (0) ABSTAIN: (0) ABSENT: (0) Therefore, the motion Passed [7-0-0]. ACTION AGENDA 6. Consider authorizing funding for twelve Johnson County Heritage Trust Fund projects in the amount of $250,000.

Megan Laha, County Managers Office, appeared before the Board and made the following comments: MS. LAHA: Youve been presented with the recommendations for the 2009 Heritage Trust Fund cycle. There were no questions from last week. I would like to introduce two of our grant review board members that are here today. We have Tom Raby and Mike Wallace, who is our chair for 2009. THE CHAIRMAN: Are there any questions of the Board? The Chairman asked if there was a member of the public who would like to make any comments. Hearing none, it was back before the Board. Commissioner Eilert moved to Authorize funding for twelve Johnson County Heritage Trust Fund Projects in the amount of $250,000. Commissioner Wood seconded the motion. The roll being called, the result was as follows: AYES: Peterson, Allen, Lindstrom, Eilert, Wood, Hayden and Surbaugh (7) NOES: (0) ABSTAIN: (0)

Page 4 of 16

Official Transcript Board of County Commissioners Business Session August 13, 2009 Page 5 of 16

ABSENT: (0) Therefore, the motion Passed [7-0-0]. 7. Consider approving an application to the Kansas Housing Resources Corporation for the Homeless Prevention and Rapid Re-housing Program pursuant to the American Recovery and Reinvestment Act, at no cost to the County.

Viki Schmidt, Community Development Department, appeared before the Board and made the following comments: MS. SCHMIDT: Applications were received last Friday. We consolidated those and posted them to the agenda. We received applications from five applicants Catholic Charities, Human Services, Mental Health, SAFEHOME, and the Salvation Army in a total amount of $1,453,211. THE CHAIRMAN: Questions for Ms. Schmidt? The Chairman asked if there was a member of the public who would like to make any comments. Hearing none, it was back before the Board. Commissioner Wood moved to Approve a 2009 Kansas Homeless Prevention and Rapid Re-Housing Program application. Commissioner Peterson seconded the motion. The roll being called, the result was as follows: AYES: Peterson, Allen, Lindstrom, Eilert, Wood, Hayden and Surbaugh (7) NOES: (0) ABSTAIN: (0) ABSENT: (0) Therefore, the motion Passed [7-0-0]. 8. Resolution No. 060-09. Consider supporting the inclusion of Johnson County in the foreign trade zone service area of the Greater Kansas City Foreign Trade Zone, Inc., for the purpose of implementing new alternative site designation procedures for securing foreign trade zone status within the County and approving a letter communicating County support of the same.

MR. ZACHARIAS: This item was before you last week as well. Its talking about developing an alternate procedure for designating foreign trade zones. We do have with us this morning some guests that can answer your questions, if you would like. We have Tim McKee, Blake Schreck, and Al Figuly, who is president of the Kansas City Foreign Trade Zone group. Ill be glad to answer any questions that I can, but these gentlemen certainly can do much more than I can. THE CHAIRMAN: Questions from the Board? The Chairman asked if there was a member of the public who would like to make any comments. Hearing none, it was back before the Board. Commissioner Wood moved to Approve and Adopt Resolution No. 060-09 thereby supporting the inclusion of Johnson County, Kansas in the foreign trade zone service area of the Greater Kansas City Foreign Trade Zone, Inc. for the purpose of implementing new alternative site designation procedures for securing foreign trade zone status within the County; and to Authorize the Chairman to sign a letter communicating County Support of the same. Commissioner Allen seconded the motion. THE CHAIRMAN: Any further comments? Commissioner Wood. COMM. WOOD: I think this is something that has been a long time coming. Our economy is inextricably connected to world trade. This simply recognizes that fact. More importantly, through the use of technology and the geographical location of Johnson County and greater Kansas City, it allows implementation of basically virtual reality trade zone sites. This is good for small business owners throughout Johnson County, and it would be my wish or recommendation that we pass this wholeheartedly. THE CHAIRMAN: Any other comments? The roll being called, the result was as follows: AYES: Peterson, Allen, Lindstrom, Eilert, Wood, Hayden and Surbaugh (7) NOES: (0) ABSTAIN: (0) ABSENT: (0) Therefore, the motion Passed [7-0-0].

Page 5 of 16

Official Transcript Board of County Commissioners Business Session August 13, 2009 Page 6 of 16

9.

Resolution No. 058-09. Consider adopting the FY 2010 Budget and FY 2010-2014 Capital Improvement Program.

Scott Neufeld, Budget and Financial Planning Department, appeared before the Board and made the following comments: MR. NEUFELD: I want to point out a couple of changes to the Board from last week. I think that Hannes spoke to some of you but might not have gotten a chance to talk to everybody. The total budget is approximately $14.1 million less than what we had stated before. Basically, what has happened is that our external auditor in the past couple of weeks and I just found out about it last week and it was too late to talk about it last Thursday has determined that the Research Triangle Fund will be classified for County purposes as an agency fund, which is akin to the fire districts. We have a couple of other funds where were an agent just holding the money. Its not going to be shown as revenue and expenditures on our books. Therefore, its not appropriate for that number to roll up into our total budget. Essentially, weve taken that and moved it to the side, that $14.1 million. Therefore, what you see is that the total budget is now $778 million rather than the $792 million that it was last week. This is just moving to the side. How we plan to handle this going forward is to show the receipts and disbursements to the Board in the proposed budget and in the final budget book singularly on its own page so that we have a chance to review this as a Board and be apprised of the situation. This is simply aligning as best we can with the accounting status. OFM (Office of Financial Management) has been in talks with the external auditor for quite some time, and there were two or three different avenues that they looked at as far as how to classify this fund. It was fairly complex, but in the end it was treated as an agency fund. From my perspective, I dont consider these to be expenditures. Our hands are tied by the statute that we disburse those funds as quickly as possible under normal business processes. Our plan is to move those out electronically, if at all possible, the day we receive them. It truly is a dollar amount that, while the Board has some oversight of, it is not really an expenditure of the County. Were moving those monies along to the Johnson County Research Triangle and Educational Research Triangle. They, in turn, I believe transfer those monies rather quickly to KU (University of Kansas) and K-State (Kansas State University). My apologies for the timing. I told Hannes that I would get it all written up on Friday, and I took the weekend to think about it and really look at what it was analogous to. In the past, we have made slightly different decisions. The bi-state tax was treated as an agency fund, and we did show it within our total budget. However, those monies were leaving Kansas. They were collected in Johnson County and they moved over to Missouri. Therefore, I was not involved in that decision-making. I consulted people that were, and they felt like since it was leaving the county, it needed to be reflected, even though from an accounting standpoint it was inconsistent to treat those as expenditures in the budget. Thats probably more explanation than any of you wanted. Like I said, this was kind of under the gun as far as timing. Therefore, you will see a slightly different number. Weve been publicly a few times asked to explain why the budget went up when we were cutting back. This was one of those things that went up even though it really didnt have anything to do with the budget. I wanted to cover that first before we get into the county budget. Like I said, I apologize for the timing on that, but it was one of those things that I felt was better to go ahead and make the change now and get it published correctly rather than change it later. Like I said, I hope that makes sense. I wanted to cover that real quickly. As I said, the total budget is now $778 million. Thats approximately $634 million in expenditures and $144 million in reserves. The estimated mill levy is 23.165, which is constant from last year. Within that, the County Taxing District mill levy is 7.68, the Library Taxing District is 3.144, and the Parks and Recreation Taxing District is 2.341. Theres a lot of other information in here. I think everything else weve covered quite extensively through the budget cycle. I do want to, once again, thank the Board for the time weve spent on this. This has been a long process in a lot of ways. We started about a month early this year. We really started working on this in December. Id like to thank the e-team as well. This turned out better than I could have hoped for, and it was a collaborative effort with the departments, and that really helped a lot. With that, Ill turn it back over to the Chair for any questions or comments. THE CHAIRMAN: Are there members of the Board who would like to ask questions or have comments for Mr. Neufeld? Commissioner Wood. COMM. WOOD: In reference to the taxing jurisdictions, my recollection is there was a slight adjustment upward for the Library and a slight adjustment downward for the County Taxing District. Is that correct? MR. NEUFELD: Yes. I believe it was about 0.09. COMM. WOOD: Thank you. THE CHAIRMAN: Any other questions or comments? The Chairman asked if there was a member of the public who would like to make any comments. Thereupon, the courtesy of the floor was extended to: Marty Matthews, Heavy Constructors Association, 3101 Broadway, Kansas City, Missouri, appeared before the Board and made the following comments: MR. MATTHEWS: I am also a resident of Shawnee, Kansas. Im making a last pitch this morning to increase the CARS (County Assistance Road System) funding back to its level of last years budgeted level of $15.4 million from what is in the budget now of $14.7 million. I would request that you use $700,000 of reserves to get it back to that level. As we discussed at the budget hearing, this has been a number that has stayed static at $15.4 million for years, utilized increases in the state gas tax to undermine the County support of it. Now that the state has cut its gas tax support to the County, the County is reflecting that back into the CARS program.

Page 6 of 16

Official Transcript Board of County Commissioners Business Session August 13, 2009 Page 7 of 16

We would like, as a one-time, to get it back to $15.4 using $700,000 in reserves. We think its the right thing to do to help the job situation in the county and to help the folks who drive on the roads. Id be happy to take questions. Otherwise, thank you very much. THE CHAIRMAN: Thank you. Any questions? The Chairman asked if there was another member of the public who would like to make any comments. Hearing none, it was back before the Board. THE CHAIRMAN: Commission comments or questions? Commissioner Eilert. COMM. EILERT: I have three or four questions. One of them has to do with the Wastewater charges. Ive spoken with John ONeil and his staff previously. We had a rate increase last year. The projections are something like six to seven to eight percent rate increases in the EDU (Equivalent Dwelling Unit) rate as well as the hook-up and system development fees over the next seven, eight, or nine years. In looking at one sector of those two fees, which support the capital program, it seems to me that we need to take a serious look at how our capital portion is funded. The Wastewater folks have stated previously that in prior years, 28 percent of the capital budget I think Im saying this correctly was financed by the hook-up and system development fees. Thats a big portion of that capital requirement. Because of the economic downturn, I think John indicated that next year there may only be enough revenue equal to about four percent of those capital expenditures that have historically been funded from those fees. I think that creates a significant issue that we need to address. It cant be addressed pronto today, but I think thats an issue that we need to move toward resolving right away. Secondly, in looking at the operation and maintenance portion of the budget, those rates also are projected to increase seven to eight and a half percent a year for the next four or five years. The cash reserve in that operating and maintenance budget is slated to be at a static 25 percent basically over that period of time. Having said that, the reserves go from $8.6 to 12.1 million, an increase of $2.5 million, during that same period of time. I understand the necessity for maintaining reserves. The information that I did not ask from John up to this point, I think we need to separate out that operating and maintenance budget. Obviously, it includes personnel and certain other fixed costs, which should be fairly static year to year. The maintenance, the electricity, those kinds of charges certainly can vary, but Im asking the question, does the reserve requirement number need to be based upon that total budget, much of which would be static and involve employee expense rather than just focusing on the maintenance part of the budget, which could be a variable number from year to year. I think if we do that, then we have created the possibility of ameliorating those rate increases in that particular category. Again, Im not sure that we can move that direction today, but Id like to have Johns response to that approach. John ONeil, Wastewater Department, appeared before the Board and made the following comments: MR. O'NEIL: The 25 percent reserve amount that you referenced is based on the 90-day reserve that was recommended both by Black & Veatch, our rate consultant, and Springsted, our financial advisor. Thats based on the fact that not just the expenses can vary, but also revenue can vary. Because some of our expenses are very volatile, such as the Kansas City, Missouri payment, that can vary tremendously from year to year based on the amount of rainfall we receive. For that, plus some of the other as we know, weve seen revenue drop-offs in recent years thats the basis for the recommendation. If the Board wants to revisit that, we can certainly do that in future rate studies. As I think you will all recall, you gave us direction to proceed with evaluating the combining of our bills, both capital and operating. That will provide us a real opportunity to evaluate that whole process and what should our total reserve policy be for both areas. Our schedule for that is to get an RFP (Request for Proposal) out later this year and then start the study after January 1, 2010. Thats the history of the rates, and its a recommendation that is tied from our financial advisor to its impact on our bond rating by having a reserve policy in place and then following that policy. COMM. EILERT: I understand that, John. However, off the top of your head, do you know what percent of your operating budget is tied to what I would call traditional administrative employee expenses versus maintenance factors? MR. O'NEIL: Not exactly. I dont know if Scott has a quick number here. If recollection serves right, just on the operating side, just on O&M (Operations and Maintenance), not on the administrative side, I think its about 30-plus percent is personnel. If we take the administrative and put it in there, its a little over 40 percent. I believe thats about right. MR. NEUFELD: Leslie just sent me an e-mail from across the room. She had that roughly at two-thirds of Wastewaters budget is non-salary. Off the top of Johns head, were in about the same ballpark. That is different from most departments. Public Works is an exception also. Most departments its even further than that, the flip where two-thirds to 90 percent are staffing. However, thats still a significant amount because theyve got over 200 FTEs, I believe. That ratio is a little bit different. I think driving subcomponents of a reserve is something that we could bounce off the other folks. One thing I would say, getting back over to the combined rate side, and Leslie gently reminded me of this because she is the debt coordinator, we make debt payments annually. Most of the EDU money is in by May. Therefore, that really helps us with cash flow when we make debt payments later in the year. If we did go to a combined rate and we used the same methodology that we use for O&M, the revenue would be coming in. Whats currently coming in in an EDU in the first half of the year would come in every other month. Therefore, you would not be receiving all your revenue until November or December. That could exacerbate our need for reserves because those debt payments go out in big chunks. Thats over on the EDU side and something that well have to be mindful of as we look at possibly fine-tuning those reserve calculations.

Page 7 of 16

Official Transcript Board of County Commissioners Business Session August 13, 2009 Page 8 of 16

COMM. EILERT: It just seems to me that I completely understand the need for reserves, but if were reserving it against a static fixed cost that represents 40 percent of our budget, then it seems to me that we may be overstating that need for that kind of requirement. I would certainly like that to be revisited. It just seems to me that in the economic environment that industry and individuals have been facing the last couple of years, the wastewater rates just continue to go up and up and up. Somehow we need to recognize the change in the economic environment and adjust our programs or our ability to correlate spending to revenues to a greater extent than whats represented here. MR. O'NEIL: I certainly understand that, Commissioner. Our staff has worked very hard to try to keep these numbers as low as we possibly can. You may recall from our previous presentations earlier this year, the National Association of Clean Water Agencies report, they do a financial survey of wastewater utilities across the nation once every three years. The last one was done based on 2008. Their findings from that study nationally were that wastewater rates, typically across the country, are increasing at a rate greater than inflation or Consumer Price Index would indicate. Thats been driven by a lot of the regulatory and rehabilitation programs that are needed. Weve tried to keep it low. We have reduced the rates from what were originally projected. Thats in spite of some revenue shortfalls. I certainly appreciate your comments and position. We will work with the Board to do all we can to help mitigate those increases in the future. I have talked with many of the other local wastewater agencies. Virtually all of them are looking at rate increases this year, some more than ours. Certainly the article that just came out recently on Kansas City, Missouri with their situation is something that we will certainly try to avoid in our system, if we can. COMM. EILERT: Every percent increase in the operating and maintenance represents about $300,000 in revenue. It just seems to me that if we can justify responsibly a lower rate of increase or a static number in that reserve fund, then we can make a significant impact on those increases. MR. O'NEIL: That is something we can certainly work with the Board on in the future. COMM. EILERT: Thank you. THE CHAIRMAN: Commissioner Lindstrom and then Commissioner Wood. COMM. LINDSTROM: I have a comment regarding this years budget. First of all, I want to commend staff for their efforts to realize the Board of County Commissioners charge to maintain county services with a constant mill levy. I believe they have done a very, very good job. I also want to thank our Johnson County employees for the good work that they do. Specifically, I want to express my sincere appreciation to them for maintaining a positive attitude and approach to their work while shouldering much of the financial burden of the budgetary decisions made this year to weather this economy in the form of a hiring freeze and merit increases. I am pleased that this budget addresses principles that I, the Board of County Commissioners, staff, and our community hold dear, including maintaining our quality and standard of life, protecting our vulnerable and at-risk populations, and providing needed resources for public safety and infrastructure. However, there are two facets of this years budget that I do not support. I am not pleased that we have allocated $4.5 million for the purchase of land for a courthouse that we have not yet decided to build. Again, it is my understanding that if the County agreed to build a courthouse in downtown Olathe, that Olathe would contribute the land for this project. The allocation exacerbates our five-year budget projections, which now reflect an overall 5.54 percent more in expenditures than revenue. The other concern I have with this budget is one that is echoed by many in the development community, including home builders, owners of commercial real estate, apartments, office buildings, retail centers, and industrial warehouse facilities. The proposed Johnson County increases are significant enough to result in additional financial pressure on properties that are already experiencing serious cash flow problems. The potential adverse economic consequences to these properties, and subsequently to the Countys tax base, prompt me to ask if deferring these increases for some period would send a positive message to the market while allowing the commercial real estate market, as well as the local economy, to recover and strengthen. Although I strongly object to these two facets of this years budget, I will not throw the baby out with the bath water. I will be supporting this years budget. THE CHAIRMAN: Commissioner Wood. COMM. WOOD: Thats welcome news because I intend to support the budget proposal. In fact, accordingly, I will make a motion. Commissioner Wood moved to Approve and Adopt Resolution No. 058-09, thereby adopting the proposed operating budget for Fiscal Year 2010 and the Capital Improvement Program for Fiscal Years 2010-2014, with the stipulation that the salaries paid to Members of the Board of County Commissioners shall remain the same as the amounts paid in Fiscal Year 2009, and no salary increases shall be provided to the Chairman and Commissioners in 2010. Commissioner Peterson seconded the motion. THE CHAIRMAN: Commissioner Wood. COMM. WOOD: I do have some questions and comments. The first one is I will respond directly to Commissioner Lindstroms concerns about designating part of our reserves, $4.5 million, for land acquisition. I swear to you that I have never heard anyone from the city of Olathe make any commitment whatsoever to donating the entire land for a new courthouse. I dont believe that would be in keeping with the spirit of the partnership that exists between Johnson County and Olathe, as is previously exemplified by the downtown parking garage that was a long time coming. The

Page 8 of 16

Official Transcript Board of County Commissioners Business Session August 13, 2009 Page 9 of 16

County gets the vast majority of the benefit of that parking garage, and we paid half of it; the City paid the other half. In the future, additional parking garages will be needed, just as the courthouse is needed. The failure to designate $4.5 million for land acquisition does several things. It sends a signal to other developers and the commercial interests who would be interested in investing in our community if they know what the County actually intends to do. This adds hopefully to the tax base for all of Johnson County as well as the City. The failure to designate our commitment to building a courthouse in downtown Olathe would undermine the economic interests of small businesses that already exist or otherwise are fledgling in downtown Olathe. We all know the great concerns or inability of our employees to go out to lunch. Thats why weve been forced to maintain a cafeteria in the administration building. There are limited venues for restaurants and other limitations that exist that hopefully will be overcome. The failure also to designate a financial commitment leaves us handicapped to prepare for that time in the future that we actually do break ground and start building a building. The courthouse is at its full capacity. Before we break ground, I hear that we will be forced to relocate certain functions of the courthouse to temporary rental space in and about Olathe. Rent for government to pay, in my opinion, is not a good investment. Its better that we own. Thats why, in almost every situation except a couple, it is best that we own the property and why we do own property where our operations exist. In reference to the wastewater issue, I do find it of concern that in these economic times, we may be doing damage to small business owners who are in the construction trades, one, by the increase in the connection fee, and two, in the EDU rate. I am persuaded that the EDU rate is necessary at its increased level because of certain current economic pressures and the future economic pressures. However, I am also wondering about the connection fee, if that could be postponed and what the impact of that deferral would mean. Also, while youre coming to the podium, the issues that Commissioner Eilert has raised I think are very significant, but I wonder if in the light of the plans of Wastewater going to the status of a pure utility, would that not address some of Commissioner Eilerts concerns? MR. O'NEIL: Going to the combined rate does allow us the opportunity to design a system that gives us more flexibility in our financial capabilities. To that end, I think there is potential to do that. Your question regarding the connection fees, the history of this goes back to 1992. At that time, when those charges were implemented, its my understanding from those Ive talked to that the development community was concerned that by imposing those rates, we might then start using those rates to balance our budget and not really increase the EDU rate so much, thereby shifting the cost to the development community as opposed to those others in our systems that are users of the system. At that time, the agreement was that as long as they go up together, that would be the fairness factor. That was 17 years ago, and its obviously something we want to look at very long and hard in the rate study that we are planning on doing that I mentioned earlier. The implications of reducing those at this time, we have taken a look at that. Were currently running about 25 percent behind on the collection of permit fees, including collection and system development fees this year. Thats below our projections that wed lowered quite a bit. I do understand this month is picking up quite a bit so far in the first week and a half, but well have to see if that trend continues or not. Our model projects that with the increase thats currently proposed, our bond coverage ratio would be 117 percent if our projections are good and we dont continue to run 25 percent behind. If we run 25 percent behind next year like we are this year, that would drop to 114 percent. If we were to not implement the increase, it would drop another percent to 113 percent. Therefore, we start to get pretty close to that 110. Then if our projections were to drop more than the 25 percent, were getting, in my opinion, dangerously close. Those are the implications of that at this time. COMM. WOOD: Another question related to that is how does this connection fee charge compare with other areas of metropolitan Kansas City, like Lees Summit and Blue Springs and North Kansas City? Are we competitive? In the last three years, our rate of growth in comparison to those other areas has greatly reduced; theyre out pacing us. MR. O'NEIL: I dont have all of those in front of me today. I do have some others that are here within the county. Were very close and just a little bit below the connection fee for Water One. In speaking with Don Siefert with the city of Olathe yesterday, based on their latest rate model projections, they are looking at getting very close to us within two years. Therefore, within the county, all those are pretty close. COMM. WOOD: Im not proposing that we reduce the connection fee or if so, not by much but Id like for us to stay growth-friendly, if possible, by not increasing the connection fee. After all, those connection fees only get paid or are incurred when there is someone building something and hooking up. Correct? MR. O'NEIL: Thats correct. COMM. WOOD: If were not competitive with other suburban areas of the metropolitan area, people may go somewhere else to build their residential structures and commercial structures. I think we need to take a look at that. It may be analogous to the Laffer Curve reducing taxes stimulates economic activity and larger revenue. I think we ought to take a look at that. THE CHAIRMAN: Commissioner Eilert. COMM. EILERT: I have a couple of comments, and then Id like to offer an amendment to the motion thats been made. The financial challenges weve faced in the last couple of years, and hopefully theyll not continue, but no one should be surprised if they do. In 2009, former County Manager Mike Press early on initiated and recommended to the Commission budget reductions in the neighborhood of $11 or 12 million. About half of those reductions came from employees giving up their merit increase for 2009. Not only did that help us immensely in 2009, but there was also a positive budget carry-over for 2010. I think we should always be aware of that contribution that came from our employee base.

Page 9 of 16

Official Transcript Board of County Commissioners Business Session August 13, 2009 Page 10 of 16

In looking further out in our financial plan, I think its also important to note that over the next five years, as referenced by Commissioner Lindstrom, the financial plan shows an accumulated deficit over those years of about $64 million more than we have revenue coming in. The largest years of those deficits are 2014, 2015, representing close to $30 million of those deficits. One big reason for that is that the sales tax passed last August to support operations of phase II of the jail, the crime lab, the juvenile justice complex, the downtown Olathe detention center. The requirements for those projects exceed the sales tax revenue by a growing number. It seems to me that our challenge should be that in future budget years, we need to close that gap, and we need to bring our expenditures within anticipated revenues or we basically come to a point where there is need of a dramatic immediate reduction in spending or a dramatic increase in taxing effort. The plan shows that, at the end of 2015, there will be roughly $30 million in the reserve unfunded or the undesignated reserve account. That year alone, there will be about $25 million in deficit. Therefore, our reserve that has been relied upon in past years becomes pretty much nonexistent. Id like to make an amendment to the motion thats been offered. It is my understanding that the policy of the Commission is that commissioner salaries are automatically adjusted to whatever the merit increase is for employees salaries on an annual basis unless there is specific action taken to remove that factor from occurring. Therefore, my motion is to amend the budget proposal that has been presented, and that the commissioners not participate in any merit pool assigned to the employee salary base for 2010. THE CHAIRMAN: Mr. Neufeld, my understanding is thats the way it was because we had already passed that. My assumption was we were not receiving salary increases as commissioners. MR. NEUFELD: That was for 2009. THE CHAIRMAN: I understand that, but we made no motion to change it in this years budget. Therefore, I assumed we did not receive one. MR. NEUFELD: I apologize for that. We treated that, based on the language of the motion, that it was for 2009 only. Therefore, we went through this budget process with in mind that it was back to normal. THE CHAIRMAN: I have no problem with the amendment as it was my understanding initially anyway. MR. NEUFELD: I think our understanding was that was a one-year motion last time. THE CHAIRMAN: Commissioner Wood was the maker of the motion, and Commissioner Peterson seconded it. Do you accept that as a friendly amendment? COMM. WOOD: Sure. COMM. PETERSON: I do. I have a question about the thrust of the amendment given the current discussion. Is this a permanent change? COMM. EILERT: I have no problem with it being a permanent change. My motion was the same as was made last year. Its for 2010, but I have no problem making that a permanent change. MR. NEUFELD: Mr. Jarrett is not here and Mr. McAulay is working on something else. However, I think it might be better for us to take the 2011 budget under consideration and that aspect of it next spring or next winter when we start working on the 2011 budget. We can just build that in as directed. I dont know that we need to make that a permanent decision now because thats certainly something that we could build as a base parameter assumption when we start on next years budget. THE CHAIRMAN: There are people asking to speak faster than I can recognize them. Commissioner Wood, Commissioner Peterson, and then Commissioner Lindstrom. COMM. WOOD: I dont think the amendment is going to close the gap. THE CHAIRMAN: Mr. Carl, do we need to vote on a friendly amendment? MR. CARL: You dont need to vote if youre considering that a friendly amendment. If its a regular amendment, you would need to vote. THE CHAIRMAN: I asked if both the maker and the seconder would accept it. Would that not make it a friendly amendment? MR. CARL: If thats the way you choose. COMM. WOOD: The issue of the budget projections is not new. Everyone in this room is aware of the gap as it extends out. Every year we close it. Its basically been closed with the use of reserves. That was intentional by the Managers Office with the support of Finance and Budget. Thats just one technique, but that kind of wears a little thin. At some point, we need to address the structural imbalance in the budget. Ive been saying that for years, and we need to address it. From my point of view, not to pile on too early to the new County Manager, it seems to me that this ought to be his number one performance measurement, to come up with a plan. This is just imperative when youre looking at spending $200-plus million for a courthouse, which we cant afford, and depending on how far out you look, we have projections of deficits that have to be closed and the use of fund

Page 10 of 16

Official Transcript Board of County Commissioners Business Session August 13, 2009 Page 11 of 16

balances and reserves and all this kind of stuff. Its really kind of time that we put our financial house in order. If we cant do it, nobody can do it, and were in good shape. I thank former County Manager Mike Press and Scott Neufeld and all the financial staff and employees here in the County in the past years for being supportive of fiscal restraint and planning. We have a downturn in the economy, and the downturn is not over yet, ladies and gentlemen. We need to come up with a long term plan that addresses the financial needs of public safety. As Commissioner Eilert pointed out, the new sales tax for public safety will no longer be adequate to cover all those capital and operating costs after about five years from now. The Sheriff needs to figure out how to operate more efficiently. We all need to find out how to operate more efficiently, and we need to look at operations that are not necessary. We need to get back to what Commissioner Gross said years ago we need to look at needs and not just wants; we need to look at meeting our core services. The problem is defining core services. This is the number one task that needs to be addressed, and we dont have five years to do it. I support the amendment. I think its good, symbolic, and sets us as a good example for the sacrifices that may be called upon by the entire organization. I appreciate everybodys help on this. THE CHAIRMAN: Commissioner Peterson and then Commissioner Lindstrom. COMM. PETERSON: I wanted to make some general comments on the budget. Its obvious that the budget is responsive to the economic times that we face. I want to extend my congratulations to Scott and the rest of the e-team because you did manage to pare $6 to 7 million out of current expenditures, and that was on top of previous reductions that were made to bring the 2009 budget into balance. Therefore, our entire staff has stepped up, and as was noted earlier, there is the likelihood of foregone salary on the part of our employees. We do need to keep that in mind. Its clear that the 2010 budget is responsive. Im a little more sanguine than my colleagues up here. I do believe that the economy will recover. I feel a little bit like Im hearing about the prospects for Baghdad as opposed to Johnson County because it sounds like theres this looming deficit gap that will be impossible to bridge. Its always there. Its there because of the assumptions we build in when we create the budget. We budget as conservatively as possible. I think perhaps we need to take a look at the assumptions because Im not sure those are fully serving the needs of our constituents. I think we build in assumptions that create a budget gap that force us to look at reductions. We need to be mindful that we have the lowest mill levy of 105 counties in Kansas, and we have the highest level of service, bar none, in not only the number of services, but the quality of service. I think thats what our constituents expect us to continue to deliver. Therefore, I think we need to perhaps take a look at the assumptions that we start with. I think the Wastewater budget is indicative of the kind of problems were going to face if we dont readjust our thinking. The wastewater system is an aging system in parts of our county. Yet it continues to experience the demands of growth. Thats curtailed a little bit because of the current economy, but that growth will renew, so well have this dual tension of maintaining and repairing an older system while meeting the demands of growth. We face the same thing with our road system; were going to face the same thing with increasing demands for alternative forms of transit. I think if we dont step up today to deal with those issues, then we face much larger problems that probably are insurmountable in the future. I think we need to be honest with our constituents. We cant continue to meet all of the demands with the current sources of revenue that we anticipate. That either means reductions in services or enhanced revenues, as they say in Washington. I do think we need to be clear, because I think our constituents want us to maintain services in almost all cases. I feel one disappointment with this budget, in particular. Its never fun to have to budget and have your employees sacrifice. That clearly is a disappointment. Im disappointed that we didnt deal with funding the transit program that weve discussed for two or three years now. I feel that there is a general consensus in the community that we should be moving forward with public transit. Im particularly disappointed because I believe theres an opportunity thats been lost here. Were not going to be in a position to fully capitalize on federal funding thats going to become available in the next few years. I hope Im mistaken on that, but I think not. I think steps needed to be taken this year, and it was a majority of this Board that felt we just didnt have the resources to do that. I recognize that decision, but Im disappointed that that was our result. I will support the budget. Its been the result of a lot of hard work, particularly by our staff. I do believe it sustains the County in its current position and gets us through this economic period that were in. As I said, Im hopeful that weve seen the bottom; were on the way back up. Perhaps next year will be a little bit rosier picture and maybe a little more optimistic budget. Thank you. THE CHAIRMAN: Thank you. Commissioner Lindstrom. COMM. LINDSTROM: As it related to the second on the friendly amendment, I prefer that the friendly amendment stand as it was stated. If we want to address this next year, that would be fine with me as well. THE CHAIRMAN: I just realized where my confusion was. It says with the salary, and the salary will be reevaluated for employees ongoing, so thats what I thought. It would come before us at that time. It was not approving it in this budget. In other words, I think we just need to make that clear in the future, so we all know. MR. ZACHARIAS: Madam Chair, if I can provide some clarification on that. If you look on page four of the resolution, section 12 addresses the issue at hand. The issue basically says that the salary for commissioners and the chairman are frozen basically from 2009 and cannot be increased without further action of the Board. I think your recollection is correct. Theres really no need at this point in time for the motion. Its already been addressed. THE CHAIRMAN: Commissioner Lindstrom, were you finished?

Page 11 of 16

Official Transcript Board of County Commissioners Business Session August 13, 2009 Page 12 of 16

COMM. LINDSTROM: I would just say that I believe there is a reason for the motion, if not for the comments that Commissioner Wood made that it sends a message to the employees that we understand the significant sacrifices they are making. THE CHAIRMAN: It was that way to begin with and we made a motion to solidify it. So be it. Commissioner Allen and then Commissioner Eilert. COMM. ALLEN: I would like to thank staff also. I know its a very difficult process to go through. I wont repeat what Commissioner Peterson said, but I do agree with a lot he said. One thing is Im a new member here, and I clearly realize the quality of the staff and the department heads here. I appreciate the process. One thing I picked up and am very proud of is when I was in Nashville, I went to a meeting on bond rating. Johnson County is one of only 60 counties in the country that have this Triple A bond rating. One of the things I clearly picked up in a work session was that that Triple A bond rating today is much more important than it has been in the past. If that bond rating did get downgraded for some reason, it could dramatically affect our interest costs. Therefore, I like the direction of what the executive staff of the County is saying on reserves. Frankly, its probably more important today to have those reserves, to err on the side of having more reserves than less because of the capital projects this county is going to face in the future. We will save our taxpayers millions of dollars by retaining that Triple A bond rating. Therefore, as we go through these processes in the future, thats something Im going to key on. Im looking for the long term, for whats best for the residents of this county. Right now, we have something that in this meeting it was very clear that these other counties were asking how do you get that rating, what do we do? Its so elusive to get, theres no magic formula to have that. Thats one of the strengths of this county, and as we address some of these capital needs, thats something clearly we need to retain. Ill be looking forward to working with staff and the Commission to retain that Triple A rating. Thank you. THE CHAIRMAN: Commissioner Eilert. COMM. EILERT: No comment. Im prepared to vote. THE CHAIRMAN: Commissioner Wood. COMM. WOOD: I have a quick question. Refresh my memory. Who falls under the category of unclassified positions? MR. NEUFELD: For the most part, it is district court trustee, Election Commissioner, interns, and the County Appraiser. Its the appointed and we have interns. COMM. WOOD: Also, I dont think I said it clear enough. I think you guys in the Budget Office did a heck of a job this year. As challenging as it was, you actually made our job pretty easy by telling everybody ahead of time no RARs (Request for Additional Resources). Therefore, we didnt have to grapple with too much this year other than to recognize the pain that everybody was going to be experiencing. I do want to say thank you, thank you, thank you. THE CHAIRMAN: Before we close, I would like to make a couple of comments. First, I would like to address Wastewater and the CARS program. I think in the economic times we have, and we all know that we had unprecedented amounts returned to the CARS fund this year because of an inability to make matching funds. It would behoove us to look at how were going to take another look at CARS. Im not talking about totally revamping it. Its been a great program and accomplished a lot for us. However, I think this is the first time that well have this, but not the last time, and we need to have a policy beyond existing policies perhaps and maybe stay with the existing ones. However, we definitely need to look at it. In the same light, because of economic issues, I think the wastewater issues become more and more significant. We have changed to a user fee, and that has made different people, different user groups accept different fees and costs than they have in the past. We need to analyze, number one, if we are paying the cost of service. I have never been pleased with the EDU going up as was originally passed. I wasnt here when that happened. An automatic increase is not a utility-based system no more than property tax being used for wastewater use being justifiable. I think we need to review that. Then we need to review how those changes would affect our economy and see if we want to put temporary changes of some sort in. I just think both of those things need to be reviewed. Theyre obviously not going to be settled for this budget, but we probably ought to have great work done on those before the next budget. I would like to thank my fellow commissioners for the work on the 2010 budget. It wasnt easy, but I do believe that every commissioner was very active in their participation. I think that we held with our values of service, value, and leadership as we proceeded. We have maintained our quality of life without an increase in mill levy, which as Commissioner Peterson has already said, is the lowest in the state. I think it would be remiss if we did not extend a special appreciation to our staff, and Mr. Mike Press, who although he is not with us today, worked a great deal of time on this budget and even stayed on with us a little longer to help us get to it. I know that Mr. Zacharias, our new Manager, has also done a yeomans effort on it, as well as Bernice Duletski, Assistant, and the Budget Office, Mr. Neufield and all those with him. I know that the Budget and Finance Department have put a lot of effort into it, as well as all the e-team and all the department heads. They are sacrificing in great part to make it work. They put an incredible amount of time in it, including I know coming to some of the initial cuts one afternoon a week every week for forever it seemed to me. I know it did to some of them, too, because I heard about it. Because of them, we were able to consider and evaluate various proposals and consider cuts in great detail. I think we would be remiss as well if we didnt thank all of our employees, because I mean each and every one of our employees are part of this process in the fact that we arent hiring people to fill in gaps, that salaries are frozen, and they are expected to do more and more and being paid the same. Therefore, as costs go up, theyre being paid less. I have not heard one complaint from one employee, and I think that speaks volumes about this organization and their commitment to this county. As a governing body, our single most important responsibility is this budget document. It takes a series of compromises to get to this point. I know in my experience, I have never voted for a budget that everything was exactly

Page 12 of 16

Official Transcript Board of County Commissioners Business Session August 13, 2009 Page 13 of 16

the way I wanted it, and we would never get that to happen if seven people had to have everything they wished. I appreciate the compromises to do the right thing for our community. We have been successful in surviving state shortfalls. We dont know what will come next. That leads me to my last comment, which is in spite of all that is going on today, we must look to the future and not let the economic downfalls keep us from planning to the future, although sometimes that seems very difficult. I, again, would like to thank the staff and the public who participated. Several members of the public took a great deal more time participating this year than we have had in the past. That is always welcome. They did it unlike what you see on Fox and CNN late night in the town hall meetings in a very civil, constructive, and informative way, very informative. I would like to thank them as well. Scott, what I would like to say to you is it seems every year you do a better job, you guys, and I think you did that again this year. That leaves you with the challenge for a better job next year. Any other comments? The roll being called, the result was as follows: AYES: Peterson, Allen, Lindstrom, Eilert, Wood, Hayden and Surbaugh (7) NOES: (0) ABSTAIN: (0) ABSENT: (0) Therefore, the motion Passed [7-0-0]. THE CHAIRMAN: That completes our printed agenda. REPORTS AND COMMUNICATIONS 10. Management Reports

American Recovery and Reinvestment Act Funding Update MR. ZACHARIAS: We have several items. On the American Recovery and Reinvestment Act funding update, there were no new updates at this point in time compared to what we did last week. We do have some other items we want to present to you briefly. Community Survey MR. ZACHARIAS: You had asked us when we presented the community survey a few weeks ago to do some supplemental analysis on that survey. We have in your packets information about that survey that really talks about issues dealing with the responders from Best of Times and those sorts of things. Sarah Plinsky is here to answer any questions you might have on that. Sarah Plinsky, County Managers Office, appeared before the Board and made the following comments: MS. PLINSKY: This is simply the followup information you requested from ETC Institute on the survey. Its being presented for your consideration. THE CHAIRMAN: Are there questions for Ms. Plinsky or comments? COMM. WOOD: It looks like the District Court has a lot of people who were polled, 28 percent. Am I reading that correctly? MS. PLINSKY: That read the Best of Times. COMM. WOOD: That tells you where those that are receiving it, the largest percentage live. MS. PLINSKY: Well just continue to use this information as we do our planning for the next year or so and talk about communication efforts and also additional information for HS/A (Human Services and Aging) and for Emergency Management, just to enhance our understanding of the communitys perception of those programs. COMM. WOOD: By the way, I am pleased with the response about communication, one technique with inserts in the water bill or the wastewater bill. Thirty nine percent that read the Best of Times find that to be helpful. MR. ZACHARIAS: Thats exactly what Sarah was saying earlier. Were going to use this as we can to prepare our information strategies for the upcoming year. We wanted to followup on the request you had made a few weeks ago to make sure we got the information back to you. We wanted to close that loop. Thats what the purpose of this report is. COMM. WOOD: Id also like to thank Kansas City Power and Lights offer to put an insert in their billing regarding the relocation of the DMV (Department of Motor Vehicle) in Olathe. Maybe we could impose upon them again.

Page 13 of 16

Official Transcript Board of County Commissioners Business Session August 13, 2009 Page 14 of 16

MR. ZACHARIAS: We can certainly ask. THE CHAIRMAN: Any other questions? Thank you. Weekly Manager Memo MR. ZACHARIAS: The next item is a new item on your agenda. Its a management report. This is going to be a document that well be presenting on a weekly basis to you to categorize two things. One is to followup on questions the Commission asks during Commission meetings and give you that information. Secondly, its to give you updates on major projects and activities that occur in the county. As we go through time, we hope that youll find it valuable and informative as far as the information in this document. I wont read it to you, but I think Ill just point out some highlights. We have information on DMV signage and crime lab equipment that was requested. There is some information on the BNSF (Burlington Northern Santa Fe) logistics hub and information thats primarily been in various other categories. Its put in here for you to track and follow. We are working on new contractor licensing categories and collection of data for 9-1-1. We want to announce that we have received a Violence Against Women Act grant award for $41,000, which is very good news. We were not quite that successful on an earmark for Transit. We had talked about that a few weeks ago. We are also talking about our rain barrel program, which is just being kicked off here. It would be a good pilot program in the future. We have some discussions about centerline service repairs for right-of-way for our wastewater utility, along with Aubry Oxford Township consolidation. We also want to let you know that we received the award for grant funding for a safe room at Youth and Family Services Center and for the museum grant award as well. This is a fairly lengthy document as far as this time. It probably will not be as long as this in the future. The intent is to make sure that we communicate with your regularly and update information to you in written form so you can track it through time, as well as those who are watching us on the internet. With that, Ill stop and answer any questions you might have. THE CHAIRMAN: Is that the end of your comments? MR. ZACHARIAS: Yes, it is. THE CHAIRMAN: Are there any questions or comments for Mr. Zacharias? Ms. Duletski, do you have anything? Feed the Need MS. DULETSKI: Actually, on a very good note, I just wanted to report that we had extended our Feed the Need campaign this year to include school supplies. The employees of Johnson County have delivered 1,500 pounds of school supplies to the food pantries. Im really proud to announce that. Thank you, John ONeil and Jack Clegg, for spearheading that. THE CHAIRMAN: They didnt know their job wasnt done a couple of weeks ago. Mr. McAulay is sitting in for Mr. Jarrett. Do you have anything? MR. MCAULAY: No report. Thank you. COMMISSION COMMENTS Johnson County Fair THE CHAIRMAN: First of all, I would like to thank all of those who created the Johnson County Fair for us Bill Gay and all of his committee members. Again, as Ive said over and over, there are no paid staff members in the Johnson County Fair. That is all volunteers. The only staff they use is the Budget. When they come up here to present, they use a budget analyst for a few hours each year. Doc Wollen and Shirley Van Arsdale have become icons in the parade in their ever-increasing humor. Of course, in dancing with the steers, they went crazy and had a lot of fun and tried to see who could be the corniest. I believe Doc may have won, but Shirley did pretty well, too. On a more serious note, this was the first time the fair went forward without Kenneth McGinnis. He was a person who all of his life had been involved with the Johnson County Fair. I think that is a significant effort to note, because again, as I am saying, this is all volunteer. He was a major part of the fair effort throughout his entire life. Thanks to all of those who did that effort for us. It is fun. Its wonderful to see kids so proud of their ribbons and go through the flower arrangements, which is always my favorite part. The 4-H ribbon winners, you see a lot of kids names, the same ones year after year doing a great job. Some of those projects were more professional. There was a wooden door that was just unbelievable. They just did a fantastic job. Im pleased and surprised at the talent we have in our county. Clerks Office Government Transparency Award THE CHAIRMAN: On another note, I would like to congratulate our Clerk and our deputy clerks for receiving the Government Transparency Award from SIRE Technologies for implementation of our new Legislative Information Management Systems. We love that transparency. The award recognizes Johnson County efforts to improve access to government information and foster greater transparency in the policy process. The award will be presented August 18th as part of SIREs annual roundtable event in Utah. Congratulations to our staff.

Page 14 of 16

Official Transcript Board of County Commissioners Business Session August 13, 2009 Page 15 of 16

Elections Office Stars and Stripes Award THE CHAIRMAN: I would also like to congratulate the Elections Office. They received the Stars and Stripes award for outstanding partnership at the Election Centers annual national conference in San Diego for the project of Reducing Lost Voters Through Electronic Polling Place Look-Up. Thats not a smooth name for an award, but its certainly a valuable one. With 285,000, more than 78 percent of Johnson Countys voters participating in the last presidential election, only 668 voted at an incorrect polling place, which is down from 4,267 in 2004. This recognizes the outstanding results of change. Schedule Reminders THE CHAIRMAN: Scheduled this afternoon, we have MARC (Mid-America Regional Council) Transportation 2040 Plan at 1:30 p.m. Vice Chairman Peterson, do you have any comments? COMM. PETERSON: Nothing, thank you. THE CHAIRMAN: Commissioner Allen? COMM. ALLEN: No comments. THE CHAIRMAN: Commissioner Lindstrom? Remodeling Loan Program COMM. LINDSTROM: Yesterday, I was attending the Commission on Aging meeting, and Debbie Collins, our director, mentioned a program which I thought warranted my comments today. She handed out this brochure, which is sponsored by Mid-America Regional Council and the Community America Credit Union. What it is doing is offering low interest loans to people in the unincorporated areas of Johnson County. Im not going to explain too much about this other than I will leave a phone number. Its MARC Remodeling Loan Program details at special discounted rates; loans up to $5,000 to $30,000; flexible terms. Again, this is for people to weatherize their homes in the unincorporated areas of Johnson County. The number to call is 913-905-6629. I will give this to the Clerk and maybe we can get it on the website. THE CHAIRMAN: Commissioner Eilert? COMM. EILERT: No comment. THE CHAIRMAN: Commissioner Wood. Environmental Issues COMM. WOOD: Id like to share with my fellow commissioners that last Thursday evening, I attended the environmental forum in reference to the planned development of the BNSF logistics park. Some of our staff was there. From that discussion, I think there are some suggestions that have been made that are valuable that will make that project more neighbor friendly, one of which Ive shared. As you all know, in recent weeks Ive talked about pervious concrete. This logistics park and intermodal site will have quite a bit of parking lot or paved area. I suggested to Mac Andrew that perhaps this could be an area that we could also recommend to the BNSF and Allen Group and the city of Edgerton, the idea of having part of the parking lot be pervious so as to improve water quality and even suggested that the BNSF and the Allen Group give some thought to maybe recycling that water. That idea has been passed onto those parties. I believe our development department has suggested that the 404 include a recommendation, if not a requirement, that there be some monitoring equipment to monitor the water quality of the runoff water from that area as that is in the Big Bull Creek watershed, which flows into Hillsdale Lake. We all know, years ago, of the tremendous effort made to improve the quality of that lake water, since that is a drinking water source. In addition, I think our Environmental Department has made some inquiries about further efforts to regulate diesel emissions and particulate matter. I think that forum did provide some useful ideas. I was surprised that no one seemed to be aware that the County had been proactive last year in recommending legislation to the state of Kansas to grant us authority to propose and enforce diesel emission regulations. Then the fall-back position was to simply enforce the States authority to enforce federal regulations on diesel emissions. Johnson County Fair COMM. WOOD: Then, too, I would report that I attended the parade and the fair last Saturday. Although Im not as interested in flowers as the Chair is, I did find rewarding the cured ham portion of the entertainment. I know thats no surprise. It was very good and very reminiscent of some of my boyhood days when I would visit my relatives on the farm and have ham in the morning.

Page 15 of 16

Official Transcript Board of County Commissioners Business Session August 13, 2009 Page 16 of 16

Olathe School Convocation COMM. WOOD: Were now at the season where were going back to school. Commissioner Eilert and I attended the Olathe School convocation festivities this year and got to enjoy the presence of some of the dignitaries in the area. I wish all those teachers, schools, faculty, and students a successful 2009-2010 school year. Thats pretty much it. THE CHAIRMAN: Commissioner Hayden. Johnson County Fair COMM. HAYDEN: I want to thank all my fellow commissioners for coming to the fair. It was a good time, a good turnout. I really had a lot of fun. Thats all the comments I have. THE CHAIRMAN: I think we should thank you for coming today. I know the budget was important. I think you should probably return home now and rest. Commissioner Hayden is very ill, and it shows his commitment to County government. I appreciate your appearance today, your participation. Danielle White THE CHAIRMAN: Mr. Zacharias, it has been brought to my attention that we have a new intern with us today who is present. Would you like to introduce her? MR. ZACHARIAS: We have Danielle White with us today. Shes a KU MBA (Masters of Business Administration) student and will be working with us for the next year. Were very pleased to have her and expect many great things from her. Shes already helping us on various presentations, use of Excel. Were quite pleased to have her. Id like to introduce Danielle White. THE CHAIRMAN: Welcome. Were glad youre here. That concludes our Business Session for today. ADJOURNMENT Thereupon, with no further business to come before the Board of County Commissioners, the Chairman, at 11:05 a.m. declared the meeting to be Adjourned. The Board stood in adjournment until Thursday, August 20, 2009.

Page 16 of 16