Board Members Present: Clarence Babineaux, Van Anderson, Archer Frierson III, Fred McClanahan, Reverend Roy Thomas, Sam Williamson, David McCullough

Board Members Absent: None

Others Present: Martha Carter, Judy Rachal, Richard Stewart, Beth Ann Carter, Howard Adkins, Arthur Meacham, (9-1-1 Staff), Michael Wainwright (Legal Counsel), Travis Morehart (CPA), Spencer Bernard and Jon Flair (Audit Firm of Heard, McElroy, & Vestal)

Mr. Babineaux called the meeting to order and asked that attendance be noted. Mr. Babineaux asked the Board to consider a motion to approve the minutes of the Tuesday, April 17, 2007 meeting. Mr. McClanahan moved and Mr. Williamson seconded the minutes be approved as submitted. The motion was then unanimously approved.

Mr. Babineaux asked Ms. Carter for a report on Agenda Item 4-A. Ms. Carter stated a draft copy of the Annual Financial Statement for the District for the year ending December 31, 2006, which was prepared by Heard McElroy and Vestal, had been included within the board members’ agenda packages for their review. Ms. Carter stated that draft copies of the Independent Auditor’s Report, the Independent Auditors’ Report on Internal Control over Financial Reporting on Compliance and the Management’s Discussion and Analysis were also included in their agenda packages. The MD&A Report, which is an element of the reporting model adopted by the Governmental Accounting Standards Board in their Statement No. 34, was prepared by Ms. Carter and Travis Morehart. Ms. Carter explained that the MD&A is intended to serve as an introduction to the District’s basic financial statement. Ms. Carter stated that upon acceptance of the financial report by the Board, multiple copies of this report will be submitted to the State of Louisiana Legislative Auditor. Ms. Carter introduced Mr. Spencer Bernard and Mr. Jon Flair from Heard McElroy & Vestal. Mr. Bernard began by thanking the Board for the opportunity to conduct the audit and praised the District for being an exemplary model for other governmental agencies. Mr. Bernard stated that the auditing world continues to change with new standards continually being developed, but added that the District is well-postured to weather these new changes that will be upcoming. Mr. Flair stated that their job was not just to give an opinion, because it is an unqualified statement, but also to look at the internal controls with those laws that have a direct effect on the District. Mr. Flair stated that there were no findings of non-compliance and no internal weaknesses. Mr. Flair further stated that the District’s new Administrative Policies and Procedures Manual is one of the best that he had seen in his practice. Mr. Flair stated that he did have one minor suggestion that was discussed with Ms. Carter, Mr. Morehart, and Mr. Wainwright, which was to implement a policy for the Board to provide a financial disclosure of interests to the management at the first of the year. Ms. Carter called upon Mr. Morehart to discuss the MD&A. Mr. Morehart explained the net assets statement of activities at the year end and provided further explanation of a retainage of $61,124 as a reservation of fund balance at December 31, 2006, which will was withheld from a contract with TDS for 9-1-1 software, due to their failure to perform as specified in the agreement. Ms. Carter stated that within the MD&A the Districts assets exceeded liabilities by 79.1% while 20.9% of net assets are unrestricted and may be used at the District’s discretion to meet on-going obligations to the citizens, which shows that is District is financially healthy. Mr. Babineaux called for a motion to accept the receipt of the External Financial Audit for the year ending December 31, 2006 as submitted by Heard McElroy & Vestal. Reverend Thomas moved and Mr. Anderson seconded a motion to accept the external financial report, which was then unanimously approved.

Mr. Babineaux asked Ms. Carter for a report on the monthly financials for April and May 2007. Ms. Carter stated that during the month of April, the District had monthly revenues of $440,432.18 with total monthly expenditures of $209,874.69 which resulted in $230,557.49 in excess revenue over expenditures. Cash on hand was $3,006,158.66 with total fixed assets of $21,450,832.84.

For the Month of May, Ms. Carter reported that the District had monthly revenues of $298,156.21 with total monthly expenditures of $311,919.59. The District’s expenditures were $13,763.38 more than revenue income received. This deficient is a result of debt service payments being issued for June 1, 2007 totaling $130,651.25. The District’s debt service payments for all of the Certificates of Indebtedness, which were issued in years 2000, 2002, 2003 and 2005 to fund the various communications systems, are made in June and December of each year. Cash on hand is $2,992,348.47 with total fixed assets of $21,450,832.84.

Ms. Carter stated that after acceptance of the audit, budget amendments are necessary so that the budget will reflect the results of the external audit. Ms. Carter explained that the proposed amendments also incorporate new revenue received, since budget approval in December, from the establishment of five new telecommunications service providers in Caddo Parish. New revenue line items have been created to reflect anticipated annual revenue, and those revenue projects were based upon the first month’s revenue received from each carrier. In summation, the budget amendments as proposed will increase the 2007 Ending Fund Balance or Operating Reserve by $204,912 from $2,081,688 to $2,286,660.

Mr. Babineaux called for a motion to adopt Resolution No. 7 of 2007 approving amendments to the Operating and Capital Outlay budget for the Caddo Parish Communications District Number One for the period beginning January 1, 2007, and ending December 31, 2007 as stated. Mr. McClanahan moved that the resolution be adopted, and the motion was seconded by Mr. Anderson and the board unanimously approved the motion.

Mr. Babineaux asked for a report on the selection of the Official Journal. Ms. Carter reported that pursuant to LSA-R.S. 43:171, the District is required to have its proceedings (minutes, legal ads, resolutions, job openings, etc.) published in a newspaper it selects as its Official Journal. The District requested quotations on May 1, 2007 from area publications: The Shreveport Sun, The Times, The Caddo Citizen and The Inquisitor. Within the request for quotations, the publications were asked to provide cost information on the cost per column-inch, as well as information on total readership, distribution and the costs associated with providing Proof of Publications of Affidavits. From July 2006 to date, the District has spent $2,862.04 with The Times. The deadline for submissions of quotations to the District was Monday, June 11th at noon. The District received a joint quotation from The Caddo Citizen and The Shreveport Sun and one from The Times. Although the Caddo Citizen quoted a lesser rate per column inch than The Times, and does not charge for providing the Proof of Publications or Affidavits, The Times’ distribution and readership are substantially larger than The Caddo Citizen, even with the additional readership of The Shreveport Sun. The Caddo Citizen is also a weekly publication, which means that it does not provide the flexibility of scheduling advertisements as a daily publication does. Ms. Carter stated that based upon the review of the quotations, she would like to submit for consideration that the Board select The Times as the Official Journal for the District. Mr. Babineaux asked for a motion to adopt Resolution No. 8 of 2007 designating The Times as the Official Journal of the Caddo Parish Communications District Number One for the period beginning July 1, 2007 and ending June 30, 2008. Mr. Williamson moved and Mr. McClanahan seconded a motion to adopt the resolution, which was then unanimously approved by the board.

Mr. Babineaux asked for a report on the investment of the District’s funds with Morgan Keegan. Ms. Carter stated that the District has multiple financial accounts with AmSouth Bank (Regions Bank), which includes investments of the District’s idle funds. AmSouth Investments was merged into Morgan Keegan on February 16, 2007. As the result of this acquisition, Regions has requested that the District adopt a new formal resolution, specifically naming Regions’ brokerage subsidiary, Morgan Keegan, as the District’s investment financial institution. Morgan Keegan is a wholly owned subsidiary of Regions Bank and security transactions will be placed with Morgan Keegan and will be held by Morgan Keegan for payment for pledge and safekeeping. Ms. Carter explained that all investments will continue to be processed by our local account representatives and in accordance with the District’s current Investment Policy and Guidelines. Ms. Carter stated she would like to recommend that the Board adopt this resolution, which outlines the relationship of Regions, Morgan Keegan, and the District. Mr. Babineaux asked for a motion to adopt Resolution No. 9 of 2007 authorizing the investment of idle funds of the Caddo Parish Communications District Number One with Morgan Keegan in accordance with LSA-R.S. 33:2955 and the District’s Investment Policy and Guidelines. Mr. McClanahan moved and Mr. Frierson seconded the motion to adopt the resolution, which was then unanimously approved.

Mr. Babineaux asked for a report on investment of idle funds with First National Banker’s Bank (FNBB). Ms. Carter stated that Regions Bank serves as the District’s financial institution, whereby the District has funds deposited in a checking account, as well as investment accounts through Regions’ brokerage division, Morgan Keegan. Since the District now has additional idle funds with which to invest, Ms. Carter stated she is seeking permission through the adoption of a resolution to also have the option of investing the District’s idle funds with First National Banker’s Bank. FNBB is a wholesale bank that has been in business since 1984 with assets over $8.5 billion in securities held in safekeeping. As allowable, the District can seek additional financial institutions to serve the District’s investment and banking needs. Having another financial institution will allow the District to have additional choices for investment services based upon competitive rates. Ms. Carter further stated that this particular bank was considered because when AmSouth Bank and Regions Bank merged, some of the brokers went with Regions – Morgan Keegan and others went with FNBB further maintaining those relationships. Ms. Carter stated that she and Mr. Morehart had met with FNBB and Mr. Morehart does not have any questions concerning their solvency. Therefore, Ms. Carter recommended allowing the District to invest idle funds with FNBB. Mr. Babineaux asked for a motion accordingly. Mr. McClanahan moved and Reverend Thomas seconded a motion to adopt Resolution No. 10 of 2007, which was unanimously approved by the board.

Mr. Babineaux asked for any old business. Ms. Carter stated that carpet replacement would begin on Monday in the Communications Center. This is going to be a highly coordinated event to install the carpet in a live environment, but Ms. Carter felt confident that the contractor, Stephenson’s Floor Company, understood the District’s needs and would be working closely with the Administrative Staff. This Communications Center portion of the carpet replacement would take about a week and a week to do the additional Administrative offices.

Mr. Babineaux asked for any new business. Ms. Carter stated that she had sent emails today to inform the Board that the Shreveport Police Department and the District had an opportunity again to participate in the 2007 COPS Grant for $3,000,000 with a $1,000,000 or 25% grant match. The following is the proposed grant match that has been committed to by the participating agencies: Bossier Sheriff - $353,333, DeSoto Parish Sheriff - $113,333, Caddo Parish Sheriff - $200,000, Shreveport Police Department - $100,000, and Caddo Parish 9-1-1 District - $233,334. The match dollar amounts were determined by the agencies and based upon a percentage based upon their area population. Ms. Carter sated that the 2007 COPS Technology Program grant provides funding to local and state law enforcement agencies for the procurement of technology that focuses on data information-sharing and/or an enhancement of voice interoperability with regional, state, and federal partners. Ms. Carter explained that successful proposals must be multi-jurisdictional as well as multi-disciplinary as appropriate, and should demonstrate a clear, comprehensive plan for accomplishing improved data and/or voice interoperability between public safety agencies and organizations within the regional or statewide jurisdiction. Ms. Carter stated that the grant proposal will need to be submitted by 5:00 p.m. on June 29th.

Ms. Carter stated we are proposing that $2,000,000 of the $4,000,000 total allocation of the proposed grant application be used to purchase additional equipment and system enhancements, which could not be implemented within the current project without exceeding the grant budget. In an effort to determine how the various public safety agencies within the Caddo, Bossier and DeSoto Parishes can share data across jurisdictional and geographical boundaries to achieve data interoperability, we are proposing that an interoperability study be conducted by a professional communications engineering firm budgeted at $400,000. Once the technical evaluation and design has been completed, technical system specifications will be developed for the procurement process. Upon completion of the Data Interoperability Study, the balance of the proposed grant budget, $1,600,000, will be used to fund the necessary data infrastructure to support a data system for Bossier Parish and Desoto Parish Sheriffs’ operations, based upon the technical design as recommended within the study.

Ms. Carter asked that the Board approve the District’s grant match of $233,334 for this project. Mr. Babineaux asked for a motion to add the approval of the proposed District’s grant match and retainage of the consulting firm, RCC Consultants, Inc. for assistance with the grant application to the agenda. Mr. McClanahan moved and Reverend Thomas seconded a motion to add this item to the agenda. The Board then unanimously approved the motion.

Mr. Babineaux then asked for a motion to authorize RCC to work with staff to preparation the grant application in amount of $20,000 and obligate the District’s portion of matching funds for the grant in the amount of $233,334 if the grant application is awarded by the COPS Office. Mr. McClanahan moved and Mr. Williamson seconded the motion, which was then unanimously approved.

Ms. Carter stated that the travel itineraries for the APCO Conference will be handed out at the July board meeting. Mr. Anderson asked why any agency would want to purchase ruggedized versus non-ruggedized mobile data computers. Ms. Carter explained that under the current mobile data project, all of the agencies would be receiving non-ruggedized units with the exception of the Shreveport Fire Department, and the only reason that they are receiving the ruggedized units is due to the contract with the City that if they provided $400,000 in grant matching funds for the initial grant application they wanted ruggedized units. Most agencies are in agreement that due to the cost of non-ruggedized units and the warranty coverage for those units, it is more cost effective to purchase the non-ruggedized units. Reverend Thomas asked Ms. Carter if the District had experienced a reduction in 9-1-1 surcharge revenue remitted due to the migration of customers from traditional landlines to the new Voice over Internet Protocol (VoIP) services. Ms. Carter stated that due to the execution of a Memorandum of Understanding (MOU) with Vonage, the only VoIP carrier in the Caddo Parish market, they are voluntarily remitting pursuant to the terms of the MOU. Ms. Carter stated that although there has been a shifting of customers from wireline to wireless, the District continues to experience an increase in surcharge revenue.

Mr. Babineaux asked for any further business. With no further business to be brought before the Board, Mr. Babineaux adjourned the meeting.