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1 4550 Torre.., 􀁃􀁨􀁬􀁬􀁓􀁾􀀮􀀠Suitt' 215 IloIlS!UIl. TX 􀀧􀀱􀀷􀀰􀀱􀀴􀁾􀁉􀁏􀁉􀁏􀀠illfn'if S(lU thi cX;l!ia!'ch.com Office 2HI.5S7.S t12 I',,\. 28L8?5.7195 City of Addison Monday, February
07, 2005 Attn.: Public Works Director Jim Pierce jpierce@ci.addison.us Re.: Design! BuildlFinance Services Related to Governmental Improvement ProjectslMaster Plans Dear Mr. Pierce:
As per our recent telephone conversation, please find enclosed information concerning the reference subject. In the mid 1980's, the Texas Legislature created a House Bill establishing
authority for municipalities and other governmental entities to secure Public Financing participation concerning certain improvement projects. Public of Financing is being defined as
Financial Participation by Banks and other financial institutions. 'This method eliminates the need of financial funding mechanisms such as Bond Issues and Certificates ofObligation.
In 1983, our partners assisted the City of Cleveland, Texas in establishing a "Development" of a Wastewater Treatment Facility utilizing the DesignlbuildlFinancing method for obtaining
their needed improvements. The DesignlBuildlFinancing (DIBIF) concept provided for Govermnent entity improvement needs is somewhat new to Texas. School Districts have been using this
method of Financing of obtaining a "Turn-Key" approach related to development of real property improvements for the past few years, projects such as buildings, stadiums, etc ... It has
been stated by the Texas Department of Transportation that the DIBIF method, based on a lease-purchase contract, is the most feasible method ofachieving improvements related to real
property development (District Office Facilities, Regional Office Facilities, Weight Check Stations, Road-Side Rest Areas, Pmnp Stations, etc...). TEXDOT's first such project is the
Development ofthe Houston District OfficeIWarehouse Facilities estimated at a total value ofapproximately 40 Million Dollars. Utilizing this approach eliminates: • Bond Voting Costs
• Bond IssuelSaie Costs • • Reduction between 10 to 15% in Design Costs • Reduction between 10 to 15% in Construction Costs • Reduction in Overall Related Time and Schedules (estimated
as much as 120 days in some cases) 'This approach "Stream Lines" time and costs related the entities improvement needs. In addition, all accounting and funds related to the project from
beginning to final construction is the soul responsibility ofthe Bexar Group and the financier. Design Build sometimes known as "Value Engineering" is a proven method of saving time
and money. Page 1 of2 
14:'50 Torrey 􀀨􀀧􀁉􀁬􀁴􀁬􀁾􀁴􀀧􀀬􀀠Suile :1 £$ Unu:;lon, T:\ 7701.J-HHO inrO''i,sollthl('x'!;;<ln'b,('om Office 281.581.8lI1 F.JX 281.89::-,iI9:The Bexar Group will work with your staff
to develop a program to serve your needs. Our personnel consist of seasoned professional Architects, Engineers, Designers, and Construction Managers well versed and experienced in relation
to governmental projects including Master Plans and Development Plans. The Bexar Group will secure and contract the design team, construction team, and financial services as a total
"Turn-Key" contract providing Development and total Design and Construction Project Management. Our program assures the client that each team member will have valuable expertise related
to your Specific Project Development needs. We appreciate your interest in our finns' Design!BuildfFinance Development and Management Services. We are attaching more information for
your review and we look forward to further discussions. Sincerely: Edward O. Harvey Richard G. Marenco, P.E. DeVelopment Manager Design/Construction Manager (281) 586-9495 (210) 731-8373
Attachment Page20f2 
WHO IS BEXAR? Bexar. a Texas corporation. specializes in the structuring. documentation. funding and administration of tax-exempt financed projects for public agencies and non-profit
institutions. Bexar offers public agencies a simple and costeffective alternative to the issuance of bonds or certificates of participation. Bexar works with financial institutions.
architects. engineering firms, general contractors. in providing "turnkey" designlbuildlfinance solutions for public agencies. Bexar can structure transactions in several different ways,
depending on the needs of the agency. 􀁂􀁥􀁸􀁡􀁾􀁳􀀠staff and counsel handle all aspects of the transaction including: 􀁾􀀠Structuring 􀁾􀀠Documentation 􀁾􀀠Underwriting/Funding 􀁾􀀠Progress
Payment Administration 􀁾􀀠Ongoing Lease Administration Lease-purchase financing is becoming an increasingly important element in the financial management strategies of local governments.
Nationwide, the annual dollar volume of lease-purchase obligations has grown from $700 million in 1980 to an estimated $8 billion in 2000. As it has grown, the lease-purchase market
has also evolved to address a variety of funding needs and institutional constraints. 1..1.550 Torrey CI1:15('. Suile lEi Houstun, T:\ 770J4-101O into:«:solltlliexasan:l!x!)JlI om!;!;
2SI.5lii,8I'2 Fax 281,8.95."7195 
INTRODUCTION The private sector is playing an increasingly crucial role in the financing and provision of services that were traditionally the domain of the public sector. The reasons
for this are multifarious One of the key reasons is that governments are unable to cope with the ever-increasing demands on their budgets. Most infrastructure expenditures in growing
municipalities have been funded directly from fiscal budgets but several factors such a macroeconomic instability and growing investment requirements, have shown that public financing
is volatile and rarely meets crucial infrastructure expenditure requirements in a timely and adequate manner. Furthermore, !here are efficiency gains arising from innovation, management
and marketing skills offered by the private sector and greater incentives for the control of construction, operating and maintenance costs; the provision of additional finance for infrastructure
projects, enabling economically justiflSble projects to be freed from public-expenditure constraints and brought forward in time, thus generating earlier economic benefits. According
to Brian McCabe, Partner with Cantey & Hanger, LLP We are at a critical period in our nation's and state's economic situation increasing emphasis exists that we must make do with less
taxes, less government services, and more reliance on localities and individuals to provide for the necessary services and amenities to maintain our liVing standards and provide for
the financial well being of our clients (and thus, for ourselves) and our communities. In 2003, the Texas Legislature passed House Bill 3588, the "master-plan' building, financing, and
maintaining our continuing need for highways, road, and other transportation facilities. A very essential piece of this legislation provides the use of public-private partnerships. The
emphasis of the legislation encourages and in certain instances, mandates the Regional Transportation Authorities created under the Act to seek out and establish partnerships with the
private sector provide for the almost overwhelming needs of the state for improving its infrastructure. Some of the more innovative techniques involve the increased use of designlbuild/financing,
a reliance on the private sector's extensive knowledge to assist the state in identifying the needs, designing solutions, and financing the repairs to the existing system, building new
transportation systems, and maintaining all of our transportation infrastructure. This massive undertaking remains vital to ensure our economy continues to grow. The prevailing wisdom
is that the private sector can do abetter, more economical, and timely job than the government can: Using private sector construction companies, states, counties, cities, and municipal
districts can begin to meet their infrastructure needs by incorporating alternative financial arrangements other than issuing bonds. Texas is a leader in the privatization trend and
public-private partnerships. The goal of privatization is to save the taxpayer money and allow the government to get back to policy-making. The goal of privatization also increases competition,
which results in better-qualified contracting companies Advantages to public-private partnerships include flexibility, speed, access to expertise, innovation, and efficiency. 14550 Torrl'Y
􀁃􀁨􀁡􀁾􀁴􀀧􀀬􀀠Suit(' 215 1I{)Il)tlm, TX 7iOI,t·IUHJ Illfo tt'Hml litC\llsarcli.t'tllll Offi{'{' 281.5S7JH 12 1:;1\ 281.895.7J95