Jul 26, 2022 City Council on 2022-07-26 2:00 PM (Special Called Meeting)

AND WASHINGTON CITY COUNCIL IS 2 P.M.

[00:00:04]

WE DO HAVE A QUORUM, SO I CALL THE MEETING TO ORDER.

AND SO THE FIRST THING ON THE AGENDA IS QUESTIONS FROM THE PUBLIC, WHICH WE HAVE NONE.

I THINK THAT. RIGHT.

SO THEN THAT TAKES US TO QUESTIONS ON THE CONSENT AGENDA FROM COUNCIL.

[2. Requests for clarification of agenda items listed on this agenda.]

NO QUESTION, BUT I NEED TO PULL B FOR RECUSAL.

ALL RIGHT. MAYOR PRO TEM.

ON. THANK YOU, MR. MAYOR. I HAVE A QUESTION ON ITEM ABOUT THE THE ELECTRIC VEHICLE CHARGERS.

MAXINE WATERS, ASSISTANT DIRECTOR FOR PROCUREMENT AND GRANTS.

YEAH, MY QUESTION IS.

THANK YOU, LOREN. MY QUESTION IS NOT NOT ANYTHING REALLY TO DO WITH THIS THESE TWO PARTICULAR ELECTRIC VEHICLE CHARGERS HERE AT CITY HALL. BUT IN LIGHT OF THE LARGER CONTEXT OF OUR ELECTRIC VEHICLE CHARGERS, PARTICULARLY AT NORTH LAKES, WHERE THEY SORT OF SEEM TO BE LANGUISHING AND DEGRADING, AND I WONDERED WHAT THE STATUS WAS AND HOW IT GOES TO PURCHASING THOSE TWO NEW ONES VERSUS REPAIRING THE TWO OR THREE OLD ONES THERE AT NORTH LAKES.

AND CAN CAN YOU PUT THOSE INTO CONTEXT FOR ME? YES. AND I'LL HAVE TO FOLLOW UP JUST TO MAKE SURE THAT MY INFORMATION IS CORRECT.

BUT THOSE WERE ACTUALLY REPLACED.

WE HAD SEVERAL OF THEM THAT WERE REPLACED OFF OF A GRANT BACK IN 2019, I BELIEVE, AND IT WAS A REIMBURSEMENT FOR SOME THAT HAD RECENTLY OR HAD ALREADY BEEN INSTALLED OR UPDATED.

SO AND THAT WAS TCU.

THEY PROVIDED US AN OPPORTUNITY TO APPLY FOR A REIMBURSEMENT FOR THOSE.

SOME SOME THAT WERE RECENTLY UPDATED OR NEW ONES.

AND I BELIEVE THOSE AT NORTH LAKES WERE PART OF THAT PROGRAM.

BUT I CAN DEFINITELY DOUBLE CHECK ON THAT.

WELL, WHAT I MEANT, THOUGH, WAS AND I APPRECIATE THAT.

THANK YOU VERY MUCH. BUT WHAT I MEANT, THOUGH, WAS I THINK WE'RE DOWN TO ONE OR MAYBE ZERO BECAUSE TWO OF THEM WERE REMOVED AND ONE IS NOT LOOKING SO HOT, I THINK. AND I DON'T KNOW THAT THEY MAY HAVE JUST NATURALLY DEGRADED PAST THEIR LIFETIMES.

I DON'T KNOW HOW LONG AN ELECTRIC VEHICLE CHARGER LASTS IN THE SUN AND WITH CONTINUED USE.

I DON'T KNOW WHAT ITS LIFETIME IS, BUT THE CONTEXT WAS SIMPLY WOULD THIS MONEY BE BETTER SPENT REPAIRING EXISTING ONES OR SHOULD WE HAVE THOSE DOWNTOWN IS THE QUESTION I'M ADDRESSING.

SO THESE ARE FOUR NEW EV CHARGERS AND WE ARE WORKING TOGETHER WITH OUR PARTNERS AT FLEET AND DM TO FIND THOSE APPROPRIATE LOCATIONS FOR THEM. WE HAVE SEEN SEVERAL GRANTS COMING IN SPECIFICALLY FOR EV CHARGERS AND THEY HAVE BEEN DIFFERENT IN TERMS OF WHETHER OR NOT THEY'RE FOR THE CONVERSION OF A CITY OR GOVERNMENTAL FLEET OR IF THEY HAVE TO BE FOR PUBLIC USE.

SO THAT'S THAT'S BEEN A DIFFERENCE AND HAS ALSO BEEN A FACTOR IN DETERMINING WHERE WE WANT TO PLACE THEM AS WELL AS WHAT TYPE OF EV CHARGERS THAT WE'RE GOING AFTER.

BUT THIS SPECIFIC ONE IS FOR NEW.

I CAN DEFINITELY GO BACK AND LOOK AT THE STATUS OF THOSE.

THANK YOU, LORD. SHE LOOK LIKE SHE NEEDS SOME HELP.

SO COUNCIL MEMBER BECK I'M THE EXECUTIVE MANAGER OF OPERATIONS AT DME AND SHE IS CORRECT.

SO IF YOU'RE FAMILIAR WITH THE NORTH LAKES LIBRARY, THERE WERE SOME OLDER CHARGERS, THOSE WERE BLINK CHARGERS.

THEY WERE INSTALLED MAYBE SEVEN OR EIGHT YEARS AGO, KIND OF AT RANDOM.

THEY PICK CITY PROPERTIES TO MAKE IT EASY TO INSTALL THOSE.

BUT SHE IS CORRECT.

SO THOSE NEW CHARGES WERE UPGRADED.

THERE'S TWO DUAL CHARGERS THERE THAT ARE CHARGEPOINT.

AND WHAT THAT SYSTEM ALLOWS US TO DO IS ANYBODY CAN GO UP WITH A CREDIT CARD AND SWIPE AND CHARGE THEIR VEHICLES THERE.

SO AS FAR AS I KNOW, I WILL DOUBLE CHECK, BUT I HAVE NOT HEARD THAT THEY'RE NOT FUNCTIONING.

SO WE HAVE TWO DUAL CHARGERS AT NORTH LAKES, TWO DUAL CHARGERS AT SOUTH LAKES THAT WERE REPLACED WITH THE TCU GRANT.

ALL RIGHT. WELL, I ENCOURAGE YOU TO DOUBLE CHECK THOSE, BECAUSE THERE USED TO BE THREE.

AND AS FAR AS I KNOW, GOING TO THE GYM THIS MORNING, THERE WAS ONE.

MAYBE I OVERLOOKED THE OTHER ONE.

WE WILL DEFINITELY TAKE A LOOK AT THAT.

BUT IT SHOULDN'T BE TWO DUAL CHARGERS AT NORTH LAKES.

I APPRECIATE THAT. THANK YOU. YES, SIR.

ANY OTHER QUESTIONS COMES FROM BERT? YES. HELLO, EVERYONE.

IT'S GOOD TO BE BACK. GOOD TO SEE THESE LOVELY FACES THIS WEEK.

WE'LL HAVE TO MAKE SURE WE CHALLENGE OURSELVES PROFESSIONALLY.

YEAH, I WANTED TO LOOK AT IF IT SAYS CONSIDER ID, TWO, TWO, ONE, FOUR, FOUR, FOUR.

[00:05:06]

MY QUESTION GOES TO, IS THIS GOING TO BE FROM THE NEW BUDGET THAT'S COMING UP THAT WE ARE LOOKING FORWARD TO THAT.

AND ALSO, GIVE ME SOME IDEA OF WHAT THIS PROFESSIONAL DEVELOPMENT PLAN TRAINING IS SUPPOSED TO LOOK LIKE.

WE HAVE SOMEONE HERE FROM THE POLICE DEPARTMENT, DOCTOR, OR WE HAVE THE POLICE CHIEF HIMSELF.

WE'LL DO BOTH. SO GOOD AFTERNOON, MAYOR.

COUNCIL FRANK DIXON, CHIEF OF POLICE.

AND I HAVE WITH ME MR. RICHARD WILLIAMS. DR. RICHARD WILLIAMS, WHO'S OUR ACCREDITATION OF COMPLIANCE SPECIALS.

HE'LL TALK ABOUT THE COMPONENTS OF IT.

BUT I'LL TELL YOU THAT WE'RE GOING TO USE EXISTING FUNDS FROM OUR FROM OUR BUDGET NOW TO PAY FOR IT AND INTO THE NEXT YEAR.

SO IT'LL PROBABLY BE A MIX AS IT'S KIND OF LINING UP RIGHT NOW IF WE CAN.

WE WOULD LIKE TO GET IT DONE PRIOR TO THE START OF NEXT FISCAL YEAR.

BUT AS PART OF A MUCH BIGGER, MUCH LARGER PROJECT PROFESSIONALLY DEVELOPING, OUR LEADERS IN THE POLICE DEPARTMENT FROM THE RANK OF SERGEANT ALL THE WAY UP TO ASSISTANT CHIEF AND BRUNEL GROUPS CAN REALLY HELP WITH THAT.

AND I'LL LET DR. WILLIAMS TALK VERY BRIEFLY ABOUT WHAT THAT LOOKS LIKE.

GOOD AFTERNOON, MR. MAYOR.

MEMBERS OF THE COUNCIL AND EVERYBODY ELSE PRESENT.

MY NAME IS RICHARD WILLIAMS, AND AS THE CHIEF SAID, I AM THE ACCREDITATION AND COMPLIANCE SPECIALIST FOR THE DENTON POLICE DEPARTMENT.

I'M HAPPY AND EXCITED TO BE HERE TO TALK ABOUT THIS PROGRAM.

THIS IS AN EXCITING TIME FOR THE DENTON POLICE DEPARTMENT.

SO THIS PROFESSIONAL DEVELOPMENT PROGRAM, THE CHIEF MENTIONED INITIALLY, THIS BEGAN WITH THE RANK WITH THE RANKING OFFICERS, THE SERGEANTS, LIEUTENANTS AND DEPUTY CHIEFS.

BUT AS WE PROGRESSED WITH THE TRAINING IN THE PAST, WE FOUND THAT IT WOULD BE SCALABLE FOR THE REMAINDER OF THE DEPARTMENT.

SO THIS TRAINING IS ACTUALLY GOING TO AFFECT EVERY SINGLE MEMBER OF THE DENTON POLICE DEPARTMENT, BOTH SWORN AND NON SWORN MEMBERS.

EVERY SINGLE WORKING GROUP IS GOING TO BE AFFECTED BY THIS TRAINING PLAN.

THIS FIVE YEAR TRAINING PLAN, IT'S GOING TO CONSIST OF SEVERAL DIFFERENT TOOLS, ASSESSMENT TOOLS, CONFLICT MANAGEMENT TOOLS, COMMUNICATION TOOLS.

IT'S ALSO GOING TO INCLUDE TRAINING, SUCCESS COACHES THROUGHOUT THE DEPARTMENT FOR CONTINUITY TO ENSURE THAT WE CAN CONTINUE THIS TRAINING.

IT'S ALSO GOING TO.

PROVIDE. WE'RE GOING TO MEASURE THE SUCCESS BY USING QUANTITATIVE AND QUALITATIVE METHODS, USING FOCUS GROUPS AND ALSO SURVEYS, SURVEY QUESTIONNAIRES TO DETERMINE WHETHER OR NOT WE'RE HAVING THE EFFECT THAT IS INTENDED AND EXPECTED.

THE CHIEF DECIDED THAT HE WANTED TO FOCUS ON THE DEVELOPMENT OF ALL PERSONNEL BECAUSE EARLY ON, WHEN WE FIRST GAUGED THE NEED FOR THIS, WE SPOKE WITH OUR WE DID FOCUS GROUPS WITH OUR PERSONNEL.

AND THE PERSONNEL MENTIONED THAT, HEY, ESPECIALLY I ANNOUNCED ONE PERSON THAT MENTIONED THAT, HEY, WE DON'T GET TRAINING, WE DON'T HAVE WE DON'T GET ACCESS TO PROFESSIONAL DEVELOPMENT TYPE TRAINING.

SO THE CHIEF WAS FOCUSED ON PROVIDING TRAINING TO EVERY MEMBER OF OUR OF OUR DEPARTMENT.

AND SO AND THAT'S WHY IT'S GOING TO INCLUDE EVERY MEMBER OF OUR DEPARTMENT.

I DON'T KNOW IF YOU HAVE ANY QUESTIONS.

I CAN ASK QUESTIONS, BUT IT'S GOING TO BE VERY DETAILED.

IT'S GOING TO BE VERY DEEP.

AND AGAIN, IT'S GOING TO IMPACT EVERYONE IS GOING TO HELP DEVELOP OUR OUR RECRUITS, OUR NON SWORN OUR SUPERVISORS.

AND IT'S FOCUSED ON BUILDING RELATIONSHIPS, RESULTS AND RESPECT.

IT'S ABOUT PROVIDING A PSYCHOLOGICALLY SAFE ENVIRONMENT FOR ALL OF OUR EMPLOYEES, WHERE OUR EMPLOYEES FEEL SAFE, THEY FEEL COMFORTABLE SPEAKING UP, THEY FEEL COMFORTABLE PROVIDING ADVICE.

THEY FEEL COMFORTABLE SPEAKING TO DEFICIENCIES THAT THEY SEE WITHIN THE DEPARTMENT.

AND THAT'S SOMETHING THAT DID NOT EXIST PRIOR TO CHIEF DIXON AND PRIOR TO US BEGINNING TO BEGINNING WITH BEGINNING THIS PROGRAM, WITH OUR RANKING, WITH OUR RANKING OFFICERS AND OUR COMMAND STAFF AND OUR EXECUTIVE STAFF.

THANK YOU. ANY OTHER QUESTIONS? CATHERINE. WHAT'S. THANK YOU, MAYOR.

IT WOULD BE ON AGENDA, THE CONSENT AGENDA.

YOU GOT TO HIT YOUR. OH, IT WAS GREEN, AND THEN IT TURNED RED.

ALL RIGHT. I DON'T KNOW WHY I HAVE SUCH A PROBLEM WITH THAT.

[00:10:02]

A COUPLE OF QUESTIONS ON THAT.

I WAS READING THROUGH THE AGREEMENT AND IT STATES THAT THE ROAD WILL BE CLOSED ALL DURING CONSTRUCTION.

AND SO IS THERE SOMEWHERE A DETOUR MAP THAT IS ASSOCIATED WITH THIS CONSTRUCTION THAT THE COMMUNITY CAN LOOK AT TO BE AWARE OF WHEN THAT WILL OCCUR IS THE NUMBER HIS FIRST QUESTION? THE SECOND ONE IS, DOES THIS INCLUDE DOES THIS PRICE INCLUDE POTENTIALLY THE NECESSARY INSTALLATION OF THE CROSSING ARMS AND SUCH TO CREATE THAT A QUIET ZONE CROSSING? AND IF NOT, BECAUSE YOU'VE GOT ABOUT 1000 HOMES THAT ARE BEING BUILT OUT THERE RIGHT NOW THAT ARE GOING UP REALLY QUICKLY.

AND IF NOT, WHAT IS THAT PARTICULAR DELTA? AND ESPECIALLY SINCE WE'VE HAD A QUIET ZONE PROGRAM THAT WE'VE YET TO IMPLEMENT IN THE DOWNTOWN AREA, AND I'LL BE ASKING SOME QUESTIONS ABOUT THAT LATER.

YEAH. JUST WHAT DOES THAT CONSTRUCTION COST INCLUDE? AND IF THERE'S A DELTA FOR QUIET ZONE, WHAT WOULD THAT BE? AND SECONDLY, WHAT'S THE DETOUR PLAN FOR WHEN THAT ROAD IS UNDER CONSTRUCTION? BECAUSE THAT'S ONLY A TWO LANE ROAD THERE.

AND SO WHERE WHERE ARE WE DIRECTING ALL THAT TRAFFIC? SO I THINK I HEARD ALL OF YOUR QUESTION.

I WAS TRYING TO GET DOWN HERE FROM THE OTHER ROOM.

THE ALL OF THE THINGS THAT IS INCLUDED IN THIS WORK IS IN THE BACKUP OF YOUR FOR THE CASES TO DO THE WORK.

THIS IS THE REIMBURSEMENT FOR THEM TO PERFORM ALL THAT WORK.

YES, IT WILL BE CLOSED DURING THE TIME THAT THEY ARE PUTTING ACROSS THOSE PANELS AND THEY'LL SUBMIT A TRAFFIC CONTROL PLAN THAT WILL HAVE TO BE APPROVED BY THE CITY FOR THAT DETOUR. SO WE DON'T KNOW WHAT THAT LOOKS LIKE YET.

GOTCHA. OKAY. BUT AS THE QUIET ZONE STUFF COMES ALONG, WE DON'T HAVE A QUIET ZONE FOR THAT SECTION DETERMINED YET.

ALL OF THAT IS GOING TO BE TOWARDS THE DOWNTOWN AREA.

RIGHT. I GUESS MY QUESTION BECOMES, BECAUSE WE'VE HAD THAT IN THE DOWNTOWN AREA AND WE'VE HAD PAST BOND FUNDING FOR IT, I DON'T EVEN KNOW HOW MANY YEARS AGO, MANY, MANY, MANY YEARS AGO, AND NOTHING'S HAPPENED.

SO MY QUESTION BECOMES WITH THIS PROJECT, AND I'M ASSUMING THESE FUNDS ARE PART OF THE BONNIE BRAE CONSTRUCTION COSTS THAT WE'RE ALL FAMILIAR WITH, THEY'RE ALREADY BUILT INTO THAT.

THE RTR FUNDING. YES, YES, SIR.

YES. OKAY. SO I'LL JUST BE REAL CURIOUS TO SEE WHAT THE DELTA IS BETWEEN WE'RE PUTTING IN THIS CROSSING.

HOW MUCH MORE IS IT TO PUT IN? BECAUSE MY UNDERSTANDING IS THE THE QUIET ZONE CROSSINGS, THEY'RE DOUBLE ARMS OR THEY GO EXTEND ALL THE WAY ACROSS SO NOBODY CAN SWING BACK THROUGH THEM.

TO ME, IT JUST SEEMS LIKE IT'S JUST A LONGER GATE ARM OR SO IT.

JUST BE CURIOUS TO SEE WHAT THE DELTA OF THE COST WAS FOR THAT.

AND I SAY THAT TO TRY TO ALSO MOTIVATE US TO CONTINUE TO MOVE FORWARD ON THE QUIET ZONE DOWNTOWN, WHICH I'M NOT, I'LL HAVE A CONCLUDING ITEM ON THAT.

SO WE ARE MOVING FORWARD WITH THE DOWNTOWN QUIET ZONES.

I THINK RIGHT BEFORE YOU WERE WE WERE ON BOARD.

WE WE DID THE WE ADDED THE PEDESTRIAN IMPROVEMENTS TO THOSE QUIET ZONE CROSSINGS SO THAT NOT ONLY WE HAVE VEHICULAR QUIET ZONE, BUT ALSO SIDEWALKS.

OKAY, SO THAT'S UNDER DESIGN.

WE HAVE TO RESUBMIT NOW DO ANOTHER DIAGNOSTICS WITH THE AND THAT MEETING IS AUGUST 2ND THAT WE'RE MEETING WITH THE RAILROAD COMMISSION AND THINGS LIKE THAT TO GET THAT GOING.

GOOD. SO THAT'S THAT'S HAPPENING AS FAR AS THIS, WE WOULD THERE'S MEDIAN IMPROVEMENTS THAT WE CAN DO WHICH THESE THIS THE NEW BONNIE DOES HAVE A MEDIAN SO IT WOULD MEET THOSE IMPROVEMENTS FOR A QUIET CROSSING.

FROM MY UNDERSTANDING THE GATE ARMS WOULD BE LIKE THE DOUBLE LAYER WHERE BECAUSE THIS IS A FOUR LANE AND I THINK THE RIGHT OF WAY IS ACTUALLY FOR A SIX LANE.

SO IT WOULD HAVE TO COME DOWN AND THEN DROP DOWN AGAIN.

THEY DON'T REALLY LIKE TO DO THOSE AND I JUST KNOW THAT FOR MEETING WITH THEM ON THE CTA CROSSING AND THINGS LIKE THAT.

SO IF AND WHEN WE DECIDED TO MOVE FORWARD AND GO FURTHER SOUTH WITH QUIET ZONES, WE WOULD PICK UP THAT CROSSING, OF COURSE, AND THE ONE DOWN AT VINTAGE PROBABLY AS WELL.

BUT THOSE ARE THINGS THAT WE WOULD HAVE TO FIGURE OUT WITH THEM OF HOW WE WANT TO DO THAT IF WE WANT IF THEY'LL ALLOW THE DROPDOWN GATES.

SO IT IS A QUAD GATE AS WELL AS THE MEDIANS.

BUT FOR THE FOR THE FOUR LANE ANTICIPATED SIX LANE, IT'S KIND OF A DIFFERENT.

SURE. YEAH.

AND I UNDERSTAND THAT AND I APPRECIATE THAT.

THANK YOU FOR THAT. THAT'S GOOD INFORMATION.

AND I GUESS MY QUESTION AGAIN IS, IF IT'S NOT TOO DIFFICULT AND IF IF IT IS TOO DIFFICULT, I GET THAT TOO TO TRY TO GET JUST EVEN A BALLPARK FIGURE OF IF WE WANTED TO DO THIS WITHOUT DOING ALL THE DESIGNS, WITHOUT DOING ALL THE ENGINEERING, IS IT 200,000 EXTRA DOLLARS? IS IT A HALF A MILLION EXTRA? JUST I MEAN, THEY'VE GOT TO HAVE THAT SOMEWHERE.

THEY'VE GOT TO PROBABLY HAVE THAT PRETTY WELL FIGURED OUT IN THEIR OWN HEAD WITH AS MANY AS THESE THINGS.

SO THAT'S. ALL I'M ASKING.

JUST THE REGULAR QUAD GATES ARE ABOUT $25,000 APIECE.

[00:15:01]

SO JUST FOR A REGULAR TWO LANE ROAD WITH FOUR GATES IS ABOUT 100,000.

SO I'M NOT SURE WHAT IT WOULD BE FOR THE DOUBLE GATES.

YEAH. AND THAT WAS PROBABLY EIGHT MONTHS AGO.

TEN MONTHS AGO WHEN WE GOT THAT.

WELL, AT THE POINT.

I APPRECIATE THAT. SO IF IT'S IF IT'S A COUPLE HUNDRED THOUSAND TO GET A QUAD ZONE OR 300,000, I WOULD HOPE THAT WE WOULD AT LEAST HAVE THAT OPPORTUNITY TO MAKE THAT DECISION, BECAUSE THAT IS HUGE.

I MEAN, THAT'S A EVEN THOUGH WE HAVEN'T DONE IT IN DOWNTOWN.

BUT SO WHAT? THAT'S THAT'S THAT'S A WHOLE DIFFERENT STORY BECAUSE WE HAVEN'T EVEN GOTTEN THIS FAR WITH THE DOWNTOWN AREA AS FAR AS GETTING AN AGREEMENT, GETTING CONSTRUCTION READY TO GO. SO I JUST REALLY LIKE TO GET THAT DELTA, SOME OTHER ELEMENTS THAT GO INTO IT BECAUSE WE HAVE A UNIVERSITY NEARBY.

THEY DON'T LIKE TO DO THINGS LIKE THAT WHEN THERE'S A LARGE UNIVERSITY AROUND THAT MIGHT GET A HIGH PEDESTRIAN RATE.

THERE ARE SOME DIFFERENT ADDITIONAL ELEMENTS THAT GO INTO THE STUDIES TO DO THOSE THINGS.

WE ALSO HAVE SIDEWALKS THAT WE'RE DOING SIDE PACK ON ONE SIDE, SIDEWALK ON THE OTHER.

THOSE WOULD ALSO HAVE TO GET ZONE APPROVED GATES.

SO IT WOULD BE MORE THAN JUST THE 100,000.

BUT WE COULD CERTAINLY LOOK INTO THAT.

NOTHING. NOTHING FORMAL, NOTHING.

IF WE KNOW WE'RE NOT GOING TO DOWNTOWN, THAT'S FINE.

WE'D LIKE TO GET THE DOWNTOWN DONE FIRST.

WELL, I WANT TO SEE, BECAUSE THE THING IS, WE WE'VE BEEN WORKING ON IT FOR TEN OR 15 YEARS.

AND SO IT'S LIKE WE'RE NOT EVEN WE'RE NOT IN THIS FAR ALONG IN THE DOWNTOWN AREA AS WE ARE WITH THIS PARTICULAR SITUATION.

SO IF IT'S NOT FEASIBLE, IT'S NOT FEASIBLE.

I JUST THOUGHT I'D ASK THE QUESTION.

THANK YOU. I JUST I JUST WANT TO QUICKLY ADDRESS THE DOWNTOWN AND DON'T SPEND TOO MUCH TIME ON IT, BECAUSE I KNOW IT'S A SOMEWHAT SEPARATE ISSUE WE JUST TALKED ABOUT IN COMMITTEE ABOUT THE DOWNTOWN AND KIND OF JUST HAD AN HONEST CONVERSATION WITH THEM.

THAT WAS IN THE 2014 BOND PROGRAM AND IT WAS BUDGETED FOR 900,000.

IT IS NOT EVEN CLOSE TO WHAT WE NEED FOR THAT PROJECT.

AS ORIGINALLY SCOPED, IT'S NORTH.

IT'S CLOSER TO $10 MILLION THAT WE NEED.

SO WE'RE GOING TO BE COMING TO COUNCIL AS WE TALK ABOUT CIP AND WHAT THAT LOOKS LIKE.

BUT THAT'S THAT'S THE HOLD UP.

HOLD ON A SECOND. HOLD ON.

WHAT YOU'RE TELLING ME IS IT WAS SCHEDULED FOR $900,000 IN THE 2014 BOND PROGRAM.

AND YOU'RE SAYING THE ESTIMATE TODAY IS $10 MILLION.

DID I MISS HEAR THAT OR WAS IT $1,000,000? YOU DIDN'T HEAR IT.

WE'RE LOOKING AT THE SCOPE RIGHT NOW TO SEE HOW WE CAN RE SCOPE IT TO.

BUT IT'S SIGNIFICANT.

IT WAS NOT BUDGETED CORRECTLY IN THE 2014 PROGRAM, AND WE JUST HAD THAT CONVERSATION WITH THE BOND COMMITTEE.

THANKS. APPRECIATE IT. THANK YOU, MAYOR.

THAT'S IT. THANK YOU. ANY OTHER QUESTIONS? CNN OKAY. LET'S TAKE US TO OUR FIRST WORK SESSION ITEM WAS THERE.

THAT IS ID 212816 RECEIVE REPORT, HOLD DISCUSSION, GIVE STAFF DIRECTION REGARDING THE FISCAL YEAR 2020 223 ANNUAL

[A. Receive a report, hold a discussion, and give staff direction regarding the Fiscal Year 2022-23 Annual Internal Audit Plan. [Estimated Presentation/Discussion Time: 30 minutes]]

HELLO AMEREN COUNCIL. MADISON, RORSCHACH DENTON CITY AUDITOR.

GOING TO SHARE MY SCREEN.

I'M GOING TO PRESENT AND I'M HERE TO PRESENT A PROPOSAL.

OUR PROPOSED PROJECTS AND RECOMMENDATIONS FROM THE INTERNAL AUDIT COMMITTEE FOR FISCAL YEAR 2223 ANNUAL INTERNAL AUDIT PLAN.

SO JUST KIND OF TO GET STARTED, AS A REMINDER, THIS YEAR WE ADOPTED THE CITY AUDITOR'S OFFICE, ADOPTED ITS FIRST STRATEGIC PLAN, WHICH HAS THREE STRATEGIES. STRATEGY A IS TO PERFORM HIGH QUALITY, IMPACTFUL AUDITS.

B IS TO PROVIDE VALUABLE NON-AUDIT SERVICES.

AND C IS TO ENGAGE IN COMMUNITY MEMBERS.

THE AUDIT PLAN IS MOST CLOSELY ASSOCIATED WITH STRATEGY A, SO I'M JUST GOING TO GO HAVE SOME INFORMATION HERE ABOUT KIND OF WHERE OUR PROGRESS IS WITH THOSE GOALS, JUST TO KIND OF SET THE STAGE.

SO AS YOU CAN SEE FROM THE SLIDE, WE APPEAR TO BE ON TRACK TO MEET MOST OF OUR GOALS IN THIS AREA, WITH THE EXCEPTION OF THE PERCENTAGE OF PEOPLE THAT ARE ODDITIES THAT AGREE STRONGLY AGREE THAT WE ADD VALUE.

AND WHILE OBVIOUSLY I'D LIKE TO SEE THAT NUMBER HIGHER, IF YOU LOOK AT THE PERCENTAGE THAT STRONGLY DISAGREE, IT'S ZERO.

SO I'M NOT AS CONCERNED AS I COULD BE ABOUT THAT, ABOUT THAT NUMBER.

AND SO WE'LL PROVIDE COMPLETE METRICS.

THESE ARE JUST BASED ON UP TO THIS DATE AND THE FISCAL YEAR ONCE WE DISTRIBUTE OUR FOURTH QUARTER PERFORMANCE REPORT IN OCTOBER.

AND THEN I JUST WANTED TO POINT OUT THAT FIRST GOAL OBJECTIVE THERE IS TO AUDIT COVERAGE AND TO AUDIT EACH FUNCTIONAL AREA OF THE CITY EVERY SIX YEARS.

AND SO I'M GOING TO MOVE TO THE NEXT SLIDE, WHICH KIND OF ILLUSTRATES WHERE WE'RE WHERE WE ARE WITH THAT GOAL.

SO AS YOU CAN SEE, THIS IS THE FUNCTIONAL AREAS OF THE CITY.

EACH NUMBER IS AN AUDIT PROJECT WE PERFORMED AND ALL OF THE AREAS THAT ARE IN GRAY, WE HAVE NOT ACTUALLY DONE AN AUDIT TO COVER YET.

IT ONLY GOES BACK TO 2019 BECAUSE THAT'S WHEN WE ISSUED OUR FIRST AUDIT REPORT.

SO THIS IS JUST TO KIND OF SET THE STAGE FOR OUR DISCUSSION ABOUT WHAT PROJECTS WE'RE GOING TO DO NEXT.

SO DOES ANYBODY HAVE ANY QUESTIONS ABOUT THE GOALS OR WHERE THIS ASSESSMENT, THIS ILLUSTRATION HERE BEFORE WE MOVE ON TO ACTUALLY DISCUSSING THE PROPOSALS, QUESTIONS FOR

[00:20:01]

OKAY, GREAT. WE'LL GO BACK.

HERE WE GO. ALL RIGHT.

SO NEXT ILLUSTRATED MY PROPOSED TIME BUDGET FOR FISCAL YEAR 2223.

WE AIM TO SPEND ABOUT 65% OF THE DEPARTMENT'S TIME NEXT YEAR PERFORMING AUDIT WORK, INCLUDING THE NEW AUDIT PROJECT'S FOLLOW UP REVIEWS AND ONE ROUTINE AUDIT PROJECT.

IN ADDITION, AS YOU ALL KNOW, I SERVE AS THE STAFF LIAISON TO THE BOARD OF ETHICS, WHICH IS INCLUDED IN THIS BUDGET AS WELL, AS WELL AS TAKING CARE OF ADMINISTRATIVE PROJECTS LIKE BUILDING THE COMMUNITY OUTREACH PROGRAM, AS WELL AS DEVELOPING A FRAUD DETECTION PROGRAM.

AND THEN FINALLY, THERE'S TIME IN THERE TO PERFORM POTENTIAL AUDIT, SORRY, POTENTIAL FRAUD INVESTIGATIONS FROM OUR ANONYMOUS HOTLINE, AS WELL AS TO PERFORM ANALYSIS REQUESTS, WHICH ARE KIND OF AD HOC ANALYSIS THAT SOMETIMES CITY COUNCIL OR CITY MANAGEMENT MAY ASK US TO PERFORM.

AND SO THERE'S BASICALLY TWO AREAS I'M REQUESTING DIRECTION ON.

THE FIRST IS THE NEW AUDIT PROJECTS THE COUNCIL WISHES TO SEE US PERFORM.

SO THE TABLE ON THE SLIDE HERE IS KIND OF A LIST OF PROPOSALS THAT MY OFFICE CAME UP WITH AS A AS A DEPARTMENT BASED ON OUR 2022 RISK ASSESSMENT, AS WELL AS DISCUSSIONS WITH DEPARTMENT DIRECTORS, THE CITY MANAGER'S OFFICE, THE CITY ATTORNEY'S OFFICE, AND INCLUDING BEING AT THE CITY COUNCIL RETREAT THIS YEAR. AND EACH ADDITIONAL DETAILS ABOUT EACH OPTION WERE IN YOUR BACK UP IN THE THE MEMO.

AS YOU CAN SEE ON THE SLIDE, THESE RANKS, THESE PROJECTS BY INHERENT RISK.

SO THAT'S NOT CONSIDERING THAT THERE HAVE BEEN CONTROLS PUT IN PLACE.

IT'S JUST THE INHERENT RISK OF THAT FUNCTION BASED FROM 0 TO 100.

AND THERE IT'S WEIGHTED AS WELL.

SO BASED ON THE TIME BUDGET, I'D RECOMMEND COUNCIL SELECT SIX PROJECTS FOR US TO PERFORM NEXT YEAR.

WE DISCUSS THIS INFORMATION WITH THE INTERNAL AUDIT ADVISORY COMMITTEE LAST NIGHT AND THEY RECOMMENDED THAT COUNCIL SELECT THE SIX THAT ARE KIND OF BRACKETED ON THE SIDE THERE.

AND THEY WANTED ME TO COMMUNICATE THAT THEY HAVE PARTICULAR, PARTICULAR PRIORITY ON THE STAFF RECRUITING AND HIRING PROJECT BECAUSE THEY BELIEVE THE FINANCIAL RISK WAS NOT WAS HIGHER THAN IT'S PRESENTED THERE DUE TO THE INDIRECT COSTS ASSOCIATED WITH IT.

SO THAT BEING SAID, COUNCIL CAN CHOOSE WHATEVER PROJECTS THEY WISH.

AND SO I'LL OPEN THE FLOOR FOR DIRECTION.

RIGHT DIRECTION FOR STAFF.

MAYOR PRO TEM THEN COUNCILMAN MAGUIRE.

THANK YOU, MR. MAYOR.

EXCUSE ME FOR THIS.

THIS LIST OF PROJECTS.

WHEN WILL THEY BE COVERED IF FOR WHICHEVER ONES WE SELECT, THE ONES WE DON'T SELECT, WHEN.

WHEN WILL THOSE BE COVERED? THEY'LL THEY CAN BE COVERED NEXT YEAR, A COUPLE OF YEARS AFTER THAT.

THEY'LL PROBABLY CONTINUE TO STAY ON THE LIST OF PROJECTS.

THEY JUST WON'T BE SELECTED THIS YEAR.

DOES THAT MAKE SENSE? OKAY.

SO THEN AS AS A SECOND FOLLOW UP, THEN WHAT ARE THERE ANY THAT HAVE LANGUISHED FOR A WHILE WITHOUT AUDITING OR ALL OF THEM HAVE HAD A REASONABLY RECENT AUDIT? THE ONES ON THIS LIST, THE ONLY ONE I THINK WE'VE HAD, FUEL MANAGEMENT HAS BEEN ON THERE FOR A COUPLE OF YEARS AND STAFFING AND RECRUITING HAS BEEN ON THERE IN A COUPLE OF DIFFERENT FORMS FOR A LITTLE WHILE.

SO THOSE TWO HAVEN'T HAVEN'T HAD A TOUCH IN RECENT YEARS.

THANK YOU. CATHERINE MAGUIRE.

THANK YOU. SO JUST SO THAT I'M CLEAR, WHAT WE'RE TALKING ABOUT, THE SIMPLY SUSTAINABLE PROGRAM, OR ARE WE TALKING ABOUT, BROADLY SPEAKING, SUSTAINABILITY INITIATIVES? ARE WE TALKING SPECIFICALLY ABOUT LIKE OUR REBATE PROGRAM? THIS LOOKS THIS WOULD LOOK AT THE SIMPLY SUSTAINABLE FRAMEWORK THAT THE CITY ADOPTED, I BELIEVE IT WAS 2018 OFF THE TOP OF MY HEAD AND LOOKING AT HOW THOSE THAT HAS BEEN IMPLEMENTED THROUGHOUT THE CITY SO IT COULD POTENTIALLY TOUCH ON REBATES, I'M NOT SURE AT THIS MOMENT THAT OBVIATES THE NEED FOR MY MY FOLLOW UP QUESTIONS ON ANY OF THE COURSE COUNCILMEMBER.

I SAW WHERE THE TWO OF THOSE AREAS LOOK LIKE THE OPERATIONS WERE CRITICAL, ALTHOUGH, AGAIN, AS YOU STATED, THE HUMAN RESOURCES AREA WAS MINIMAL FINANCIAL.

I'D LIKE TO SEE HUMAN RESOURCES CONNECTED WITH THE OTHER CRITICAL IF ONE OR THE OTHER.

SO I CAN CERTAINLY UNDERSTAND AND THE PUBLIC REALLY SHOULD KNOW THIS IS THAT IF YOU HAVE AN AREA WHERE THERE'S AN INCREASED NUMBER OF HIGH TURNOVERS THINGS, THAT'S HOW THINGS GET SLOWED DOWN.

IF WE'RE ALWAYS CHASING AND FIND TRYING TO FIND NEW EMPLOYEES, PARTICULARLY AT A HIGH LEVEL OF RESPONSIBILITY, THEN THINGS GET KIND OF PUT ON THE BACK BURNER UNTIL YOU CAN FIND SOMEONE.

SO I THINK THAT THAT ALTHOUGH THE FINANCES IS LOW, MINIMAL ON THAT, IT IS REALLY JUST AS CRITICAL OF.

[00:25:02]

BUT FOR WHATEVER REASON, OTHER REASON, THEY CHOOSE TO GO SOMEWHERE ELSE.

I WOULD LIKE TO SEE THAT AS AS CRITICAL IN THE NEXT PHASE TO WHAT WAS THE FIRST ONE.

WAS THAT THAT WAS THAT PLACE.

I DON'T KNOW. I DON'T REMEMBER.

BUT ANYWAY, I KNOW IT WAS CRITICAL ALONG WITH SOMEONE ELSE.

ALL RIGHT. THANK YOU.

THAT'S WHAT I HAVE. AND THAT WILL BE MY DIRECTION.

BUT ALL SIX OF THEM ARE NEEDED, JUST KIND OF I'M LOOKING AT IT JUST TO BE CLEAR.

I'M LOOKING FOR DIRECTION ON WHICH SIX PROJECTS TO PERFORM NEXT NEXT YEAR.

I LIKE THE TOP SIX THAT YOU HAVE.

ANYONE ELSE? COUNCIL MEMBER MAGUIRE.

MY APOLOGIES. I FAILED TO GIVE DIRECTION.

SO MY MY DIRECTION IS TO PURSUE THE SIX AUDIT PROJECTS THAT THAT WERE STAFF RECOMMENDED.

MEMBER, TIM. I'LL ADD A VOICE OF THREE TO THE TOP SIX.

GOT IT. FOUR.

THAT'S GOOD. ALL RIGHT.

ONE MORE PIECE ON THIS.

SURE. SO THAT IS THE NEW AUDIT PROJECTS.

I ALSO NEED DIRECTION ON THE FOLLOW UP PROJECT.

SO JUST AS A REMINDER, FOLLOW UP AUDITS, ALL UP REVIEWS ARE REALLY LET'S SEE IF I CAN.

THERE WE GO. FOLLOW UP REVIEWS TAKE PLACE AFTER AN AUDIT HAS BEEN PERFORMED AND IS TO CHECK IN ON WHAT HAS BEEN CHANGED IN THE OPERATIONS SINCE WE DID THE ORIGINAL AUDIT BASED ON OUR RECOMMENDATIONS.

SO THIS TABLE UP HERE KIND OF OUTLINES THE OUTSTANDING AUDITS THAT WE HAVE THAT HAVE NOT BEEN FOLLOWED UP ON OR HAVE BEEN IN NEED A SECOND REVIEW. SO YOU CAN SEE UP THERE THERE'S FOUR THAT NEED A SECOND REVIEW.

WE HAVE SIX SCHEDULED FOR NEXT YEAR.

BASED ON OUR TIME BUDGET, WE ONLY CAN PERFORM SEVEN.

SO WE NEED DIRECTION ON WHICH ONES TO PERFORM.

ESSENTIALLY THE ONES THAT ARE CIRCLED IN THE BOXES ARE THE ONES THAT WERE RECOMMENDED BY THE INTERNAL AUDIT COMMITTEE LAST NIGHT.

SO I'LL TAKE DIRECTION, DIRECTION FOR STAFF.

COUNCILMAN MCGEE. THANK YOU, MR. MAYOR. I JUST HAVE A KIND OF A DIFFERENT QUESTION, IF YOU DON'T MIND.

WHAT'S THE TIME FRAME BETWEEN WHEN AN AUDIT IS COMPLETED AND WHEN THE FOLLOW UP REVIEW OF THE FIRST ONE IS DONE? AND THEN THE FOLLOW UP TO THE FOLLOW UP.

SO IN A ROLE LIKE A REGULAR SET INTERVALS.

YEAH. SO REGULAR.

BASICALLY REGULAR. SO USUALLY IT'S EITHER AT LEAST IT'S SIX MONTHS AT MOST.

WE TRY TO DO THE FIRST ONE AFTER 36 MONTHS.

IT REALLY DEPENDS ON WHAT THE OPERATION IS, WHAT THE RECOMMENDATIONS WERE, BECAUSE IT CAN BE EASIER TO IMPLEMENT A POLICY.

RIGHT, THAN TO IMPLEMENT A WHOLE NEW SYSTEM.

AND SO WE WANT TO MAKE SURE THAT WHEN WE COME BACK IN, THEY'VE ACTUALLY HAD TIME TO DO SOME OF THAT WORK.

AND SO WE BASE THAT ON THEIR MANAGEMENT RESPONSES, WHICH INCLUDES AN EXPECTED COMPLETION DATE.

SO. THANK YOU.

OK DIRECTIONS FOR STAFF TO.

THANK YOU, MR. MAYOR. I HAVE A QUESTION ON THIS.

GIVEN GIVEN THAT SOME OF THESE THE THE SECOND REVIEW OF THE ITEMS TWO AND THREE, AND I THINK IT WAS ONE IN FOUR AND FIVE AND SIX OR NO ONE AND TWO AND FIVE AND SIX ON THE SECOND COLUMN WERE THE ONES THAT YOU HAD HIGHLIGHTED AND READ.

HOW LONG FOR THESE TERTIARY REVIEWS, THE FOLLOW UP FOLLOW UPS? AND DO YOU HAVE SUFFICIENT TIME IN YOUR SCHEDULE TO INCORPORATE THOSE AS WELL AS INITIAL FOLLOW UPS? AND THAT'S WHERE I'M SORT OF GOING IS WHAT IS YOUR TIME MANAGEMENT? IT SEEMS LIKE YOUR RECOMMENDATION TO US IS THE ONES IN RED, BUT IT'S JUST SORT OF.

SO I'M ASSUMING THAT'S THAT'S WHAT YOU FEEL YOU CAN YOU CAN HANDLE IN TERMS OF OVERALL TERTIARY AND PRIMARY FOLLOW UPS.

YEAH. AND THE REASON FOR THOSE SECOND REVIEWS, THE ONES THAT WE SELECTED, THE ONES THAT WE DIDN'T SELECT, BASICALLY, WE JUST DID THE FIRST FOLLOW UP.

SO THERE REALLY HASN'T PROBABLY BEEN ENOUGH TIME FOR THEM TO HAVE IMPLEMENTED WHAT WAS NOT IMPLEMENTED AT THE TIME THAT WE DID THE ORIGINAL FOLLOW UP.

THAT MAKES SENSE. YEAH, I THINK SO.

I HAD TO PASS IT BACK TO MY HEAD, BUT I THINK THAT MAKES SENSE.

THEN MY DIRECTION WOULD BE TO FOLLOW STAFF'S RECOMMENDATION.

ANYONE ELSE? COUNCILOR MAGUIRE.

SORRY, I.

THE RED BOXES ARE NOT IN OUR BACKUPS, BUT SO FOR SECOND REVIEW STAFF IS RECOMMENDING UTILITY STREET CUTS AND POLICE PROPERTY ROOM.

AND THEN FOR INITIAL FOLLOW UP REVIEW A SIP PHASE ONE, SIP PHASE THREE.

MUNICIPAL COURT AND BUILDING PERMITS.

IS THAT CORRECT? AS AS WELL AS THE COVID 19 PANDEMIC PREPAREDNESS OK.

[00:30:05]

SO, YEAH, MY MY DIRECTION IS, IS TO TAKE STAFF RECOMMENDATION ON THAT.

ANYONE ELSE? COUNCILMAN.

WHAT'S. I WOULD CONCUR WITH THAT STAFF RECOMMENDATION.

LIKEWISE. THAT'S FOR.

ALL RIGHT. THANKS. AND THEN JUST A QUICK SUMMARY.

I'VE GOT ALL THAT THIS WILL BE COME FORWARD AND ON THE CONSENT AGENDA IN AN ORDINANCE FOR FORMAL ADOPTION.

SO UNLESS YOU WANT IT TO COME FORWARD AND I SEE.

BUT NO, NO, IT'S FINE.

THAT'S GOOD. THANK YOU VERY MUCH.

I APPRECIATE IT. OKAY.

THAT CONCLUDES OUR FIRST REQ SESSION.

TAKES US TO ITEM B, WHICH IS ID 22739 RECEIVE REPORT WHOLE DISCUSSION.

[B. Receive a report, hold a discussion, and give staff direction regarding funding options for economic development. [Estimated Presentation/Discussion Time: 1 hour]]

ALL RIGHT. GOOD AFTERNOON, MAYOR COUNCIL.

SO FIRST, I'D LIKE TO SAY THIS IS MY FIRST TIME ADDRESSING YOU ALL.

I'M THE NEW ECONOMIC DEVELOPMENT DIRECTOR, WAYNE EMERSON.

I BELIEVE I'VE HAD A CHANCE TO MEET EACH AND EVERY ONE OF YOU, AT LEAST BRIEFLY.

SOME OF YOU. I'VE GOT TO HAVE A FEW CONVERSATIONS, BUT I DID WANT TO GIVE A BRIEF BACKGROUND OF OF MYSELF AND WHERE I COME FROM.

SO IT REALLY KIND OF ALL STARTED HERE IN DENTON AT THE UNIVERSITY OF NORTH TEXAS, WHERE I MAJORED IN HISTORY.

FROM THERE, I HAD A BRIEF STINT.

I WAS IN THE TEXAS NATIONAL GUARD.

I ENDED UP DOING A DEPLOYMENT TO IRAQ, WHERE I WAS A PUBLIC AFFAIRS OFFICER AND SUPPORT OF CONVOY OPERATIONS FROM TALLIL ALL THE WAY UP TO THROUGH BAGHDAD TO BALAD.

WHEN I CAME BACK FROM THERE, I FINISHED UP MY SENIOR YEAR AND WENT ON TO TEACH HISTORY, ECONOMICS AND GEOGRAPHY AND SOUTH IRVING AND THEN LEARNING ABOUT ECONOMICS AND GEOGRAPHY.

I SAID, HEY, THIS WOULD BE GREAT TO DO IN THE REAL WORLD AND NOT JUST TEACH ABOUT IT.

SO I WENT BACK TO SCHOOL AND GOT A MASTER'S IN BUSINESS ADMINISTRATION, THE UNIVERSITY OF TEXAS IN AUSTIN.

AND THEN I FOUND MYSELF IN THE CITY OF ALLEN WITH THE ALLEN EDC, WHERE I WAS AN ANALYST, WHERE I PRIMARILY HELPED THAT MARKET, WHICH WAS NEVER SEEN AS A CLASS A, CLASS A, OFFICE MARKET, BORING CLASS A OFFICE TO THE CITY AND MIXED USE LARGER MIXED USE DEVELOPMENTS ALONG 121. AND THEN FROM THERE, I WENT TO THE CITY OF DALLAS, WHERE MOST OF MY WORK WAS INVOLVED IN INCLUSIVE DEVELOPMENT IN THE SOUTHERN SECTOR AS A DISTRICT MANAGER. AND THEN I FIND MYSELF HERE BACK IN THE CITY OF DENTON, VERY, VERY EXCITED TO BE HERE AND ALWAYS ENJOYED MY TIME HERE IN THE CITY OF DENTON.

IT WAS OBVIOUSLY SOME OF THE BEST YEARS OF MY LIFE, SO I'M HAPPY TO BE HERE AND HELP THE CITY GROW FURTHER IN THE FUTURE.

EXCELLENT. WELCOME. ALL RIGHT.

THANK YOU. SO THAT.

OUT OF THE WAY.

SO TODAY I'M HERE TO TALK TO YOU ABOUT THE ECONOMIC DEVELOPMENT CATALYST FUND.

SO A LITTLE A LITTLE BACKGROUND.

IN FEBRUARY 2021, THIS CITY COUNCIL ADOPTED THE ECONOMIC DEVELOPMENT PLAN.

IT WAS THE FIRST ECONOMIC DEVELOPMENT PLAN IN 17 YEARS.

THIS PLAN IS GOING TO SERVE AS THE BASIS FOR FOR OUR ECONOMIC DEVELOPMENT PROGRAMS AND OPERATIONS MOVING FORWARD.

SO TO ME, WHEN I COME IN HERE AS YOUR NEW ECONOMIC DEVELOPMENT DIRECTOR.

MY HIGHEST PRIORITY IS IMPLEMENTING THIS STRATEGIC PLAN STAFF.

MY STAFF BEFORE ME HAS ALREADY WORKED TO ALIGN OUR TAX ABATEMENT AND INCENTIVE POLICY TO TO BE IN ACCORDANCE WITH THE STRATEGIC PLAN AND WITH THE CITY'S CORE VALUES.

SO THE CATALYST FUND IS GOING TO BE CRITICAL TO OUR PLAN, IMPLEMENTATION.

AND PRIOR, WHEN STAFF BROUGHT THIS TO YOU, Y'ALL ASKED THAT THEY BRING THIS DISCUSSION BACK AS PART OF THE BUDGET PROCESS.

AND THEN JUST I BELIEVE IT WAS TWO WEEKS AGO OR MAYBE NOT EVEN TWO WEEKS AGO THAT I PRESENTED THIS PRESENTATION TO THE EDP BOARD AND THEY RECOMMENDED TO YOU CITY COUNCIL TO ESTABLISH A CATALYST FUND AND INCORPORATE INTO THE 23 BUDGET.

SO THE ECONOMIC DEVELOPMENT STREET STRATEGIC PLAN, SO IT HAS THREE GOALS BASED AROUND SORT OF THESE GUIDING PRINCIPLES.

SO THE FIRST ONE AT THE TIME, OF COURSE, WE WERE STILL REELING FROM THE COVID 19 PANDEMIC.

SO MAIN PORTION OF THAT WAS TO ACCELERATE RECOVERY.

[00:35:01]

SO THAT WILL BE A CORE PART OF OUR STRATEGIC PLAN MOVING FORWARD TO FOSTER GROWTH.

SO AS WE MOVE FORWARD, WE ARE IN THE PATH OF GROWTH AND DEVELOPMENT THAT THE ENTIRE METROPLEX IS EXPERIENCING.

SO IN ORDER FOR US AS ECONOMIC DEVELOPERS, WE KNOW THAT GROWTH IS GOING TO HAPPEN, BUT WE WANT TO HELP STEER THAT GROWTH.

WE WANT TO MAKE SURE THAT OUR FUTURE IS FOCUSED, WE'RE GETTING THE RIGHT KIND OF INVESTMENTS IN OUR ASSETS AND THAT WE'RE DOING INCLUSIVE GROWTH SO THAT EVERYONE IS GROWING WITH US AND NOT JUST THE FEW.

AND THEN WE ALSO WANT TO STRENGTHEN THE COMMUNITY INCLUSION.

SO THAT INCLUDES MAINTAINING OUR CULTURAL VITALITY HERE IN THE CITY, WHICH THE MAYOR ASKED ME AT THE EDP BOARD WHAT'S WHAT'S THE BEST PART? THE CITY OF DENTON. AND I TOLD HIM IT WAS OUR CULTURE.

AND I TRULY DO BELIEVE IT'S THE SECRET SAUCE OF THIS CITY.

AND IT'S IMPORTANT THAT WE MAINTAIN THAT.

AND THEN, OF COURSE, THE ENTREPRENEURIAL SPIRIT, YOU KNOW, WHEN WE THINK ABOUT ECONOMIC DEVELOPMENT, I THINK SOMETIMES THE AMAZONS AND THE BIG CORPORATIONS KIND OF GET THE HEADLINES. BUT THE REALITY IS IT'S THE SMALL BUSINESS.

IT'S THE ENTREPRENEURS THAT REALLY DRIVE OUR LOCAL ECONOMY.

SO THE THE CATALYST FUND IS IS RECOMMENDED AS TO IMPLEMENT OUR STRATEGIC GOALS.

AND THE STRATEGIC PLAN IDENTIFIED A FEW DIFFERENT WAYS THAT WE COULD WE COULD FUND THIS, THE FIRST OF WHICH WAS USING THE UTILITIES.

SO THIS IS THIS IS A STRATEGY THAT'S USED BY A LOT OF MUNICIPALITIES IN THE CITY OF TEXAS THAT DON'T HAVE TYPE A OR TYPE B PROGRAMS. AND I'LL GO INTO A LITTLE BIT MORE DETAIL AND TYPE A, TYPE E IN HERE IN A MOMENT.

BUT THE UTILITIES IS USUALLY A PERCENTAGE OF THAT.

ROI IS USUALLY DEDICATED TO ECONOMIC DEVELOPMENT TO FUND IT.

AND ANOTHER ONE WAS THE INCENTIVE ROLLBACKS.

SO CURRENTLY WE HAVE ABOUT APPROXIMATELY $4 MILLION THAT COULD BE ELIGIBLE FOR ROLLBACK THAT WE'RE RECOMMENDING TO TO PUT INTO THE CATALYST FUND.

AND SO THAT 4 MILLION IS IS KIND OF KEY.

AND I'M GOING TO TOUCH A BIT MORE ON THAT HERE IN JUST A MOMENT.

SO WHY DO WE NEED A CATALYST FUND? WHAT ARE THE CONSIDERATIONS? WELL, THE FIRST IS THE THE MAIN GOAL IS SO WE CAN IMPLEMENT OUR STRATEGIC OBJECTIVES IDENTIFIED BY THE PLAN.

THE SECOND PIECE, AND THIS IS PRETTY KEY, IS FLEXIBILITY.

WE HAVE SOME ECONOMIC DEVELOPMENT TOOLS, BUT USUALLY EACH ONE OF THOSE TOOLS MAY NOT BE RIGHT FOR EVERY TYPE OF PROJECT, EVERY TYPE OF BUSINESS.

A CATALYST FUND GIVES US THAT FLEXIBILITY THAT IF WE HAVE A PROJECT OR WE HAVE A DEVELOPMENT THAT COMES THROUGH, WE HAVE THE FLEXIBILITY TO MAKE THAT HAPPEN.

INVESTING IN OUR AND OUR ECONOMIC DEVELOPMENT, IT ALLOWS US TO BUILD OUR RESOURCES OVER TIME.

SO AS WE'LL SEE HERE IN A MOMENT, OUR RESOURCES WHERE WE'RE COMPETING WITH ALL OF DFW.

RIGHT. AND SO IN ORDER TO KIND OF GET UP TO THAT COMPETITIVE LEVEL, IT'S GOING TO TAKE SOME TIME.

AND THEN EACH YEAR, WE HAVE DIFFERENT AMOUNT OF PROJECTS.

WE HAVE WE HAVE DIFFERENT INVESTMENTS COMING THROUGH, AND IT'S NEVER GOING TO BE THE SAME.

SO THAT KIND OF GOES BACK TO THE FLEXIBILITY.

AND THEN ONCE AGAIN, THE TOOLBOX.

THE GREAT THING ABOUT A CATALYST FUND SUCH AS THIS IS IT'S KIND OF OUR SWISS ARMY KNIFE.

YOU KNOW, THERE MIGHT BE TERS OR THERE MIGHT BE ABATEMENTS THAT ARE THAT WORK REALLY WELL ON CERTAIN PROJECTS.

BUT IF I EVER HAVE SOMETHING THAT DOESN'T QUITE FIT, WE CAN ALWAYS USE THE CATALYST FUND AS THAT AS THAT TOOL TO MAKE SURE WE CAN GET IT DONE.

OK. SO WHAT, WHAT TYPE OF INVESTMENTS AND I REALLY WANT TO THINK ABOUT THIS AN ECONOMIC DEVELOPMENT.

THESE ARE INVESTMENTS THAT WE'RE MAKING.

SO WHAT KIND OF INVESTMENTS CAN WE DO WITH THE CATALYST FUND? SO I TALKED ABOUT FLEXIBILITY.

I TALKED ABOUT THE SWISS ARMY KNIFE.

THESE THESE ARE THINGS THAT WE CAN DO.

SO WHEN WE LOOK AT LIKE BUSINESS RECRUITMENT, JOB SPACE GRANTS AND MY BRIEF TIME HERE, I'VE BEEN KIND OF TALKING, GETTING TO KNOW SOME SOME OF THE MEMBERS OF THE COUNCIL HERE, VARIOUS BOARDS.

I THINK THIS IS WHAT KIND OF STICKS OUT IN MOST PEOPLE'S MINDS WHEN THEY THINK ABOUT ECONOMIC DEVELOPMENT.

BUT IT'S IT'S REALLY A LOT MORE THAN THAT.

BUSINESS RETENTION, EXPANSION, YOU KNOW, IF YOU'RE IN BUSINESS, YOU UNDERSTAND THAT IT'S IT'S A LOT CHEAPER TO KEEP YOUR CUSTOMERS THAN THE COST TO BRING IN A NEW ONE.

SO IT'S IMPORTANT THAT WE'RE DEDICATING RESOURCES TO OUR BUSINESSES THAT ARE ALREADY HERE AND THEN INFRASTRUCTURE, UTILITIES AND DEVELOPMENT ASSISTANCE.

THIS IS KIND OF ECONOMIC DEVELOPMENT CLASSIC, RIGHT? YOU KNOW, THIS IS PROBABLY WHERE WE COULD SEE THE MOST ROI ON ON OUR INVESTMENTS IS JUST INVESTING IN OUR INFRASTRUCTURE, INNOVATION AND ENTREPRENEURSHIP, CREATING A ENVIRONMENT AND A CULTURE THAT'S WELCOMING TO ENTREPRENEURS.

[00:40:05]

SO MAKING SURE THAT WE'RE WE'RE BEING INCLUSIVE WITH WITH OUR INCENTIVES.

AND THEN THIS I WOULD ALSO LIKE TO ADD TO THIS.

THIS ALSO MEANS MAKING SURE THAT DEVELOPERS ARE DEVELOPING IN UNDERUTILIZED OR I'M SORRY.

NEIGHBORHOODS THAT HISTORICALLY NOT NOT SEEN DEVELOPMENT.

GREEN INCENTIVES.

SO. INVESTING IN OUR FUTURE AND SUSTAINABILITY.

IT ACTUALLY DOES PRODUCE AN ROI.

UNFORTUNATELY, A LOT OF TIMES WHAT HAPPENS IS WITH OUR CURRENT ASSETS, IT COSTS A LOT MORE IN THE BEGINNING, AND SO IT TAKES A LONG TIME TO SEE THAT ROI.

BUT IF WE CAN INCENTIVIZE THOSE THINGS, WE'RE GOING TO SEE A QUICKER RETURN ON OUR INVESTMENT AND THEN CLASS A OFFICE SPACE DEVELOPMENT.

SO ONE OF THE OBVIOUS, ONE OF THE GOALS THAT WE WANT TO DO IS INCREASE OUR OUR WAGE HERE IN THE CITY OF DENTON AND CLASS A OFFICE IS THE BEST WAY TO DO THAT.

AND THEN AFFORDABLE HOUSING AND HOUSING REDEVELOPMENT.

SO I THINK WE WE LOOK IN THE DENTON AND THE BROADER AREA.

THE CITY IS ONE OF ITS MAIN STRENGTH IS ITS AFFORDABILITY.

BUT LIKE I SAID, THE GROWTH WILL COME AND WITH THAT GROWTH IS GOING TO COME HIGHER HOUSING COSTS.

SO IT'S IMPORTANT THAT WE ALSO KEEP THAT AS A STRATEGIC GOAL, THE CATALYST FUND.

ALL RIGHT. SO I TALKED ABOUT TYPE A AND TYPE B BEFORE.

SO FOR THOSE OF YOU DON'T KNOW, MOST MUNICIPALITIES, I WOULD SAY IN THE STATE OF TEXAS DEDICATE EITHER A HALF A CENT OR EVEN A FULL CENT TO EITHER A TYPE A OR TYPE B, AN ECONOMIC DEVELOPMENT FUND.

AND SO USING USING THAT THIS WHAT I WHAT I KIND OF WENT TO MY STAFF, I SAID, OKAY, IF WE'VE GOT ABOUT $4 MILLION BUDGETED, APPROXIMATELY $4 MILLION BUDGETED IN OUR CURRENT INCENTIVES, HOW DOES THAT STACK UP? HOW DOES THAT COMPARE TO THE OTHER MUNICIPALITIES THAT WE'RE COMPETING AGAINST? AND SO YOU CAN JUST KIND OF TAKE A LOOK AT THIS.

I'LL LET YOU LOOK, AND THEN I'LL KIND OF USE MY NEXT SLIDE TO KIND OF REALLY BRING THAT IN PERSPECTIVE.

SO IN THIS TOP ONE, THESE ARE ALL THE CITIES THAT ARE WITHIN CLOSE PROXIMITY TO US THAT WE WOULD BE COMPETING FRISCO RIGHT THERE AT TOP.

I'M SURE YOU'VE ALL READ ABOUT THEM IN THE NEWS, MCKINNEY, ALLEN, WHO ARE DOING GREAT THINGS IN ECONOMIC DEVELOPMENT.

AND THEN I THINK IT'S HIGHLIGHTED THERE.

YOU CAN KIND OF SEE THAT.

LEWISVILLE. YEAH.

LEWISVILLE. I'M SORRY.

MESQUITE IS THE ONE THAT'S CLOSEST TO OUR POPULATION.

AND YOU CAN SEE ON A PER CAPITA BASIS, THEY'RE INVESTING ABOUT $94 PER RESIDENT INTO ECONOMIC DEVELOPMENT.

SURE. JUST SO I UNDERSTAND THE CHART.

YEP. SO YOU GOT YOUR TOTAL COLLECTION.

OH. I'M GOING TO NEED TO SEE THE CHART.

I DON'T KNOW WHAT HAPPENED THERE. JESSE DOESN'T HAVE THE CHART.

I SEE YOU, JESSE. THERE YOU GO.

ALL RIGHT, SO YOU GOT THE TOTAL COLLECTIONS, AND THAT IS THE TOTAL COLLECTIONS OF WHAT COLUMNS? THE FOR A, FOR B, FOR A SLASH.

I MEAN, HELP ME.

SO IF WE GO UP TO THE VERY TOP OF THIS FIRST CHART, SO YOU GOT FOUR, EIGHT AND FOUR.

LET'S JUST USE FRISCO. YOU GOT FOUR.

SO THIS IS THEIR TOTAL SALES TAX COLLECTIONS, RIGHT? OKAY. THAT'S THEIR TOTAL SALES TAX COLLECTION.

YEAH. SO THAT'S THE $0.02 OK FOUR.

BUT THAT'S NOT FOR THERE.

THAT'S, THAT'S NOT THERE FOR A AND FOR B, SO YOU GOT FOUR A, SO THEY HAVE BOTH A FOR A AND A FOR B, CORRECT.

AND THEIR TOTAL IS 63, FIVE, 72.

WHAT'S THAT PERCENTAGE EQUAL TO WHAT IS THAT.

SO 6.460.

WHAT PERCENTAGE OF WHAT IS THAT OF THE TOTAL.

IT'S NOT TOTAL. I'M GUESSING THAT IS PROBABLY THEIR TOTAL OF ALL THEIR TAX REVENUE.

I GUESS THAT WOULD INCLUDE AD VALOREM.

ERIC, IS THAT IS THAT CORRECT? IS THAT WHAT'S THAT? YES. OKAY. OKAY.

ALL RIGHT. SO THEN SO THE TAX RATE OF 0.02, WHAT IS THAT? THAT'S THE $0.02 FROM THEIR SALES TAX.

RIGHT. SO THE STATE GETS 6.25.

GOTCHA. AND OURS IS LIKE, WHAT? WHAT? WE GET $0.02.

AND THEN SO THAT'S THEIR TOTAL.

AND THEN THE FOUR A AND THE FOUR B ARE USUALLY HALF A CENT EACH.

SO LIKE IN FRISCO, THEN THEY'RE MOVING 1% TOTAL OF THEIR SALES TAX, A HALF FOR FOUR AND A HALF OR FOUR B, LET'S JUST SAY FOR DISCUSSION PURPOSES.

YES. OKAY. ALL RIGHT.

AND LET ME MAKE SURE THERE'S NOTHING I JUST NEED TO UNDERSTAND HOW THIS IS.

NO, THANK YOU. THAT'S THAT HELPFUL.

I APPRECIATE THAT. THANK YOU.

AND THEN SO AND THEN LASTLY, SO WE CAN KIND OF SEE THAT THAT COMES DOWN TO ABOUT $301 PER PERSON.

[00:45:04]

AND THEN SO ONCE I STARTED KIND OF LOOKING AT THOSE NUMBERS, I THOUGHT, OKAY, WELL, IF WE'RE ALLOCATING ABOUT 4 MILLION IN OUR IN OUR ECONOMIC DEVELOPMENT INCENTIVES, WHAT WHO WOULD OUR PEERS BE? MAYBE NOT GEOGRAPHICALLY, BUT JUST IN THE AMOUNT THAT WE'RE ALLOCATING.

AND SO THAT'S WHAT THESE CITIES ARE HERE AT THE BOTTOM.

AND YOU CAN SEE EVEN THEN, THE ALLOCATION NUMBERS ARE STILL PRETTY MUCH IN THAT SAME BALLPARK AND RANGE.

SURE. ON OUR $4 BILLION BUDGET.

IS THAT INCLUDING OUR THREE AID AGREEMENTS? IN OTHER WORDS, THAT'S THE ACTUAL IF WE'RE GIVEN BECAUSE WE DON'T REALLY WRITE TOO MANY QUOTE UNQUOTE, CHECKS THAT AREN'T REIMBURSEMENTS.

CORRECT. SO THAT'S WHAT THAT REPRESENTS.

SO THAT SENATE MEMBER THAT I TALKED ABOUT, THE INCENTIVE ROLL OFF.

SO IN ABOUT TEN YEARS, THE THE TYPES OF INCENTIVES THAT WE HAVE CURRENTLY BUDGETED IS ABOUT $4 MILLION ANNUALLY FROM THE GENERAL FUND.

SO THAT'S NOT 4 MILLION WE GOT BUDGETED.

NOW THAT'S WE DON'T HAVE THAT BUDGETED NOW.

WELL, I THINK TECHNICALLY THAT IT IS BUDGETED, RIGHT.

YEAH. YEAH. TO THE 4 MILLION IS ON THE SLIDE, SAYS DENTON, HAS $4 MILLION BUDGETED FOR ECONOMIC DEVELOPMENT.

SO I'M TRYING TO UNDERSTAND WHAT 80 PAYMENTS WE MAKE OUT OF THE GENERAL FUND BEFORE WE GET THE PROPERTY TAX REVENUE REVENUES THAT COME IN.

SO I'M UP HERE ON JUST ONE PIECE OF CLARITY.

THE 6%, 4%, 3% HERE.

THIS IS PART OF A LARGER SHEET THAT SHOWED EVERY CITY IN THE STATE OF TEXAS.

SO THAT 6% IS ACTUALLY SAYING FRISCO.

6% OF ALL FOR A FOR B IN THE STATE OF TEXAS, MCKINNEY IS 4%.

IT'S JUST IT'S JUST SAYING THAT'S THE STATE OF ALL FOR TEXAS.

YOU TELL ME. FRISCO HAS 6%, SIX AND A HALF PERCENT OF ALL THE FOUR, EIGHT AND FOUR COLLECTIONS WITHIN THE ENTIRE STATE OF TEXAS.

THEY'RE THE LARGEST CITY. OKAY.

ALL RIGHT. THANK YOU. OKAY.

SO THEN. SO THEN I THOUGHT, WELL, I GUESS THERE'S DELAY ON MY SCREEN AS PAUSED.

DAVID BROKE IT. SAY I CAN GET IT BACK.

HERE WE GO. OKAY, SO JUST KIND OF MAKE THIS A LITTLE EASIER.

SO I WENT AHEAD AND BROKE IT DOWN BY GEOGRAPHICAL COMPETITORS AGAIN AND ONCE AGAIN, ARE OUR PEERS IN THAT ABOUT 4 MILLION RANGE.

AND SO THIS THIS IS YOU KNOW, I'LL JUST LET YOU TAKE A LOOK AT THAT.

AND I THINK IT KIND OF SPEAKS FOR ITSELF.

OKAY. WELL.

YEAH. I WISH I WOULD HAVE STEPPED AWAY TO START A TREND TEM.

JUST TO BE CLEAR, THAT'S THE THAT'S THE PER CAPITA.

PER CAPITA, YES.

OH, IT KEEPS.

WALKING OUT. THERE WE GO.

SO WHAT I WANT TO DO IS KIND OF LOOK AT SOME POTENTIAL PROJECTS.

RIGHT NOW, THESE ARE THESE ARE PROJECTS THAT ARE IN OUR PIPELINE.

SO WHAT THIS MEANS IS THERE'S EITHER BEEN A PROSPECTIVE BUSINESS OR COMPANY OR A DEVELOPER WHO HAS COME TO US AND SAID, HEY, THEY'RE INTERESTED IN INVESTING IN THE CITY OF DENTON. THEY'VE INDICATED THAT THEY MIGHT NEED AN INCENTIVE TO COME TO THE CITY.

AND SO WHAT WHAT MY STAFF DID IS WE KIND OF JUST WE ROLLED ALL OF THOSE UP TOGETHER.

AND WE SEE WITH PROSPECTIVE NEW DEVELOPMENT, NEW BUSINESSES OR DEVELOPMENTS NOT CURRENTLY WITHIN THE CITY, THAT TOTAL INVESTMENT AMOUNT IS ABOUT 273 MILLION.

AND THEN JUST DOING A ROUGH ESTIMATE ABOUT WHAT IT USUALLY TAKES TO BRING A NEW BUSINESS THAT COMES TO ABOUT 4.2 AND INCENTIVES AND THEN PROSPECTIVE REDEVELOPMENT OPPORTUNITIES.

THESE ARE DEVELOPMENTS THAT ARE IN EXISTING SITES WITHIN THE CITY AND THEY CAN BRING SOME ADDED VALUE.

THAT CAPITAL INVESTMENT IS ABOUT 138 AND THEN AN INCENTIVE ESTIMATE ABOUT 12.5.

SO IF WE LOOK AT ALL THE PROJECTS IN OUR PIPELINE, WE'RE LOOKING AT ABOUT 411 MILLION AND AN INCENTIVE ESTIMATE OF ABOUT 16 SEVEN. SO CAVEAT, USUALLY WHEN WE SEE ALL OUR PROJECTS COME IN THE PIPELINE, ABOUT 50% WILL ACTUALLY GO THROUGH.

IT'S NOT LESS, BUT THIS IS JUST THE IDEA OF THE TYPES OF DEVELOPERS AND BUSINESS THAT ARE COMING AND WANTING TO INVEST IN THE CITY OF DENTON RIGHT NOW.

THE SNAPSHOT IN TIME.

[00:50:04]

SO I THINK IT'S YOU KNOW, IF WE'RE LOOKING AT OUR INVESTMENT OF IT'S GOING TO BE ABOUT ANYWHERE BETWEEN SEVEN TO 9 MILLION TO 4, DEPENDING ON WHAT YEAR.

AND WE'LL SHOW THE CHART LATER.

BUT IT'S GOING TO BE IMPORTANT THAT WE'RE USING THOSE FUNDS WISELY.

SO THE FIRST THING THAT WE NEED TO DO IS DO A BUT FOUR REQUIREMENT, AND WE WOULD DO THAT USING A FINANCIAL GAP ANALYSIS.

SO THE BEST WAY I CAN SAVE MONEY IS TO MAKE SURE THAT WE'RE NOT GIVING DOLLARS AWAY TO PROJECTS THAT DON'T REALLY NEED THE DOLLARS.

RIGHT. SO HOW DO WE DO THAT? WE DO WHAT'S CALLED A GAP ANALYSIS.

SO FOR THE SMALLER ONES, WE COULD WE COULD UNDERWRITE THOSE OURSELVES.

BUT I WOULD LIKE TO USE AN OUTSIDE UNDERWRITER FOR OUR LARGER INCENTIVES.

SO UNDERWRITERS HAVE USED IN THE PAST, THEY THEY UNDERWRITE A PROJECT JUST LIKE A PRIVATE BANK WOULD.

AND SO WHEN THEY UNDERWRITE IT, THEY A THEY'RE GOING TO DETERMINE THAT THAT GAP AND B, THEY'RE GOING TO DETERMINE THE PROJECT FEASIBILITY, BECAUSE THAT'S THE SECOND THING WE CAN DO TO PRESERVE OUR FUNDS IS MAKE SURE WE'RE INVESTING IN PROJECTS AND BUSINESSES THAT ARE GOING TO BE FEASIBLE AND THEY'RE GOING TO BE AROUND AND THEY'RE GOING TO CONTRIBUTE TO OUR ECONOMY FOR FOR SOME TIME TO COME.

SO WHAT'S THE GAP THERE? REALLY ABOUT THREE DIFFERENT TYPES OF GAPS THAT WE WOULD USE TO DETERMINE IF THERE IS GOING TO BE AN INCENTIVE.

SO THE FIRST IS A LACK OF CAPITAL.

THIS HAPPENS WHEN THE LOAN TO VALUE REQUIREMENT RESULTS IN AN EQUITY GAP.

USUALLY WE SEE THIS WITH YOUR SMALLER BUSINESSES WHO JUST JUST DON'T HAVE THE EQUITY TO BRING TO THE TABLE.

THEY CAN ONLY GET A LOAN OF MAYBE 60% LTV OR 70% LOAN TO VALUE.

AND THEY AND THAT INCENTIVE WOULD BE THERE TO PLUG THAT ADDITIONAL GAP OF EQUITY COST OF CAPITAL.

SO THIS IS A SITUATION WHERE WE HAVE A PROJECT AND IT REALLY JUST CANNOT SUPPORT THE DEBT SERVICE.

SO MOST OF YOUR BANKS ARE GOING TO REQUIRE AT LEAST A 1.25 DEBT SERVICE COVERAGE RATIO, MEANING THEY NEED TO HAVE ABOUT 25% MORE IN REVENUES OR I'M SORRY, AN INCOME TO TO SUPPORT THEIR DEBT PAYMENTS.

AND THEN LASTLY IS RETURN ON EQUITY.

SO THIS HAPPENS WHEN WE HAVE PROJECTS AND IT MEET IT CAN SUPPORT THE DEBT SERVICE, BUT UNFORTUNATELY THE EQUITY RETURN IS JUST TOO LOW TO GET INVESTORS TO WANT TO COME AND INVEST IN OUR PROJECTS.

AND SO AN INCENTIVE WOULD HELP BOOST THAT RETURN ON EQUITY THAT THEY MIGHT SEE IN OTHER INVESTMENTS OR IN OTHER MARKETS.

OK SECOND THING THAT WE COULD DO TO TO MAKE OUR DOLLARS GO MUCH FURTHER IS LEVERAGE.

FIRST THING WE'D WANT TO DO IS, IS OUR MONEY SHOULD ALWAYS COME IN LAST.

WE'RE THE LAST MONEY IN.

AND SO THE WAY THAT WE DO THAT IS WE MAKE SURE THAT THE SPONSOR IS HAS GOT ALL OF THEIR EQUITY IN THAT THEY CAN PUT IN AND THAT WE'RE USING THE PRIVATE DEBT MARKETS, THE BANKS. THE ADDITIONAL PIECE OF MIND WE GET IS SO A, WE'RE GOING TO DO OUR OWN UNDERWRITING, BUT WE'RE ALSO GOING TO HAVE THE THE PRIVATE DEBT MARKET DO THEIR OWN UNDERWRITING. SO WE'VE GOT TWO LAYERS OF UNDERWRITING TO MAKE SURE THAT THIS IS A, YOU KNOW, A GOOD PROJECT TO GO IN.

ADDITIONALLY, WE COULD USE SOME MEZZANINE FUNDS SUCH AS PROPERTY SETS, CLEAN ENERGY FINANCING LEVERAGE, OUR FEDERAL TAX CREDITS, HISTORICAL TAX CREDITS, NEW MARKETS TAX CREDITS, AND LOGITECH OR LOW INCOME HOUSING TAX CREDITS.

AND THEN OF COURSE, OTHER STATE AND EVEN OUR OWN LOCAL INCENTIVES.

RIGHT IF WE CAN IF I CAN TAKE THIS CATALYST FUND AND PARTNER WITH SOME TERS DOLLARS OR PARTNER WITH A TAX ABATEMENTS TO MAKE IT GO FURTHER, WE COULD DO WELL THAT WAY.

AND THEN FUNDING OPTIONS.

SO I THINK ALSO WE ALWAYS JUST THINK ABOUT ECONOMIC DEVELOPMENT AS GRANTS.

RIGHT. BUT WE CAN ALSO USE LOANS.

AND IF WE'RE IF WE'VE GOT A PROJECT THAT JUST MAYBE NEEDS A LOWER COST OF CAPITAL, WE COULD WE COULD DO A LOAN.

AND SO THAT MONEY GOES OUT THE PROJECT STABILIZE, THEN THEY CAN REFINANCE AND THE IN THE PRIVATE MARKET AND THEN THOSE DOLLARS COME BACK TO US AND WE CAN USE THEM AGAIN ON ANOTHER PROJECT FOR USING GRANTS.

THAT MONEY GOES OUT THE DOOR AND WE DON'T SEE IT AGAIN.

OKAY. SO THAT FIRST, YOU KNOW WHAT, THE LAST I JUST KIND OF SHOWED YOU WAS KIND OF MORE TALKING ABOUT THE COST SIDE.

SO HOW MUCH THAT GAP IS GOING TO DETERMINE HOW MUCH THE INCENTIVE IS GOING TO COST US, BUT WHAT OF OUR BENEFITS? SO FISCAL IMPACT, RIGHT? SO THESE ARE OUR TAX REVENUES.

SO WHEN WE INVEST IN A PROJECT, WE SHOULD HOPE THAT WE'RE GOING TO SEE A RETURN ON INVESTMENT AND TAX REVENUES.

SO THOSE CAN BE DIRECT AND INDIRECT TAX REVENUES FOR ALL TAXING ENTITIES, THE ECONOMIC IMPACT.

SO THAT'S DIRECT AND INDIRECT OF PRIVATE INVESTMENT OR SPENDING WITHIN THE ECONOMY.

[00:55:06]

AND THEN WE HAVE WHAT'S CALLED A DOUBLE BOTTOM LINE, RIGHT? SO THERE ARE AS THINGS THAT WE'VE ALREADY ESTABLISHED INTO IN OUR STRATEGIC GOALS, THERE ARE SOME THINGS THAT WE MAY NOT SEE THE RETURN ON INVESTMENT IN IN TAX REVENUE, BUT THE RESIDENTS OF DENTON ARE GOING TO SEE A RETURN ON INVESTMENT AND THEY'RE GOING TO GET ENHANCED SERVICES.

AND THAT'S ULTIMATELY I THINK WHAT WE'RE TRYING TO DO IS PROVIDE SERVICES.

SO SOME OF THOSE ARE ENVIRONMENTAL, ENVIRONMENTAL SUSTAINABILITY, INCLUSIVE DEVELOPMENT AND PRESERVING OUR HISTORICAL AND CULTURAL VALUES.

SO WHEN WE TOOK THIS TO THE EDP BOARD, ONE THING THEY ASKED US WAS, HEY, YOU KNOW, THIS IS GREAT, BUT COULD YOU GIVE US SOME PROJECT EXAMPLES? AND SO I'M GOING TO ASK ERIKA TO COME UP HERE BECAUSE SHE'S BEEN WITH THE CITY FOR MANY YEARS.

SO HOPEFULLY MOST OF YOU KNOW HER AND SHE'S GOING TO TALK ABOUT A PROJECT THAT STAFF HAD DONE HERE IN THE PAST.

GOOD AFTERNOON. ERICA SULLIVAN, ECONOMIC DEVELOPMENT PROGRAM ADMINISTRATOR.

AND I'LL BE PROVIDING THE FIRST EXAMPLE OF A INCENTIVIZED PROJECT FOR WINCO FOODS.

SO THIS IS A DISTRIBUTION EXAMPLE.

WE AWARDED A GRANT FOR WINCO IN 2015 FOR THE DISTRIBUTION CENTER, AS WELL AS FOR PUBLIC IMPROVEMENTS IN THE TAX INCREMENT REINVESTMENT ZONE.

AND SO THE FIRST TABLE YOU'LL SEE TO THE LEFT HERE IS TAKEN FROM OUR NET REVENUE REPORT.

SOME OF YOU NEW HAVEN'T SEEN THAT REPORT YET, BUT THE REPORT DOES THE FISCAL IMPACT.

IT EVALUATES THAT AND THEN EVALUATES THE EFFECTIVENESS OF THE PUBLIC INVESTMENT.

SO YOU'LL SEE THE DESCRIPTION IN THE FIRST COLUMN, THE PROPERTY AD VALOREM TAX IN THE SECOND COLUMN SALES TAX.

IN THIS CASE, THIS IS A MULTI TOOL TAX INCENTIVE.

AND SO THEY RECEIVED SALES AND USE TAX FOR THE CONSTRUCTION AND EQUIPPING OF THE FACILITY.

SO THAT'S INCLUDED IN THE THIRD COLUMN AND THEN THE TOTAL COLUMN.

AND THEN TO THE RIGHT YOU'LL SEE THE THE BENEFITS OF PROPERTY VALUATION, THE NET REVENUE AND NEW JOBS.

SO THE ITEM THAT'S HIGHLIGHTED, THE INCENTIVES, SO THE CITIES INVESTED 1.4 MILLION AND IN RETURN FOR THAT FOUR POINT MILLION, WE'VE GOT A PROPERTY VALUATION OF 419 MILLION OVER THAT LIVE AND A NET REVENUE OF 1.5 MILLION.

IF YOU TAKE IT A STEP FURTHER FOR THE COST BENEFIT PERCENTAGE, THAT COMES OUT TO 108%.

AND THEN THE ECONOMIC IMPACT FROM THE JOBS, THE DIRECT JOBS ARE 150.

BUT THE SPIN OFF FROM THAT, THE INDUCED JOBS.

ALSO ADD ANOTHER 105.

SO THE TOTAL NOW IS 255.5 OF THE ECONOMIC IMPACT OF THE JOBS.

AND ON THE BOTTOM YOU'LL SEE THE TAX INCREMENT REINVESTMENT ZONE TABLE INCLUDES THE CONTRIBUTION OVER THE LIFE OF THE TERS AS WELL AS THE EVALUATION.

YOU'LL SEE IN THE FIRST YEAR THE VALUATION WAS 119 FOR 58 AND THEN YOU CAN SEE IN 2015 WHEN THE GRANT WAS AWARDED, THE VALUATION WAS 120,000 538 AND THEN IN 17 THE WINCO RECEIVED A CO CERTIFICATE OF OCCUPANCY FOR THEIR DISTRIBUTION CENTER, AND IN 17 IT INCREASED TO 63,000,180 366.

SO THIS EQUATES TO AN ALMOST $63 MILLION INCREASE AND OVER 52,000% INCREASE OVER THAT LIFE.

AND THEN IF YOU LOOK AT THE VERY BOTTOM, YOU'LL ALSO SEE 21, 22, AND THAT'S HOW THEY'RE AND THAT IS THE VALUE.

CURRENT VALUE IN THE ZONE.

SO THIS HELPED EXPEDITE THE DEVELOPMENT IN THE WEST PARK TOURS.

SO WINCO FOODS WAS OUR FIRST TENANT IN THE WEST PARK TOURS AND THEY ASSUMED ALL OF PHASE ONE OF THE IMPROVEMENTS IN THE WEST PARK TOURS ASIDE FROM TRAFFIC SIGNALS.

AND THEY WANTED TO CONTROL DO THIS IN ORDER TO CONTROL THEIR TIMELINE.

AND SO THAT YOU CAN SEE A NUMBER OF PROJECTS HAVE DEVELOPED BETWEEN 2015 ON THE LEFT AND THE ARIEL 2022 ON THE RIGHT.

SO WE HAVE OVER THREE 3 MILLION SQUARE FEET IN THE ZONE.

DENTON CROSSING COMPRISES ABOUT 1.2 OF THAT, AND THERE'S FOUR SPEC BUILDINGS INVOLVED IN THAT DEVELOPMENT.

WE ALSO HAVE EXETER AND THEY ALSO COMPRISE ABOUT 1.7 MILLION SQUARE FEET OF THAT.

WE HAVE WEST PARK INDUSTRIAL, WE HAVE SOUTH WEST.

SO OVERALL COMPRISING OVER 3 MILLION IN THE ZONE.

AND IF YOU WANT TO, WE'RE GOING TO GO INTO ANOTHER HYPOTHETICAL SITUATION, BUT I'LL JUST PAUSE HERE IF YOU HAVE ANY QUESTIONS ON WINCO FOODS.

QUESTIONS FOR ERIKA WHILE SHE'S UP.

AND I CAN'T SEE.

[01:00:04]

THANKS.

OKAY. SO I REALLY LIKE THIS IMAGE BECAUSE I'M GOING TO BE TALKING SOMETIMES THE ECONOMICS, WE TALK ABOUT THE MULTIPLIER EFFECT.

AND I THINK THIS THIS IMAGE IS A PERFECT EXAMPLE OF THAT WHERE WE HAD ONE PROJECT AND WE CAN SEE WHEN WE, WHEN WE INVEST IN A SINGULAR PROJECT, IT MULTIPLIES. RIGHT. AND THIS I THINK THIS IMAGE WILL WILL TELL YOU THAT BY INVESTING IN THIS IN THIS ROAD, WE REALLY MULTIPLIED OUR INVESTMENT.

ALL RIGHT. SO ERICA GAVE US A GREAT EXAMPLE OF A PROJECT, BUT I'M SURE YOU'VE ALL HEARD THAT HINDSIGHT IS 2020.

SO IN THE FUTURE, WHEN I COME TO YOU, I WON'T BE ABLE TO TELL YOU EXACTLY HOW THIS PROJECT IS GOING TO GO OUT.

BUT WHAT WE DO HAVE IS I HAVE ANOTHER TOOL HERE, AND THIS IS A WHAT'S CALLED AN IMPACT MODEL.

WELL, ACTUALLY, LET ME LET ME BACK UP.

SO WHAT I WAS GOING THROUGH HERE AND I WAS THINKING OF, WELL, HOW CAN I PRESENT THIS MODEL TO THE COUNCIL SO THAT THEY CAN UNDERSTAND? I THOUGHT IT'D BE GOOD TO KIND OF USE A HYPOTHETICAL.

SO I KNOW IN Y'ALL'S RECENT COUNCIL RETREAT, ONE OF YOUR KEY FOCUS AREAS WAS TO SUPPORT HEALTHY AND SAFE COMMUNITIES.

AND ONE OF THESE PRIORITIES WAS TO COLLABORATE WITH VULCAN MATERIALS, TO RELOCATE THE CONCRETE PLANT.

AND SO THIS WOULD BE CLASSIC ECONOMIC DEVELOPMENT REDEVELOPMENT PROJECT.

AND SO I WANT TO STRESS, AS I GO THROUGH WITH THIS, THIS MODEL, THIS IS NOT A REAL PROJECT.

THESE THESE I TOOK SOME PRETTY CONSERVATIVE BASELINE REDEVELOPMENT NUMBERS.

AND I'M MERELY DOING THIS TO SHOW YOU HOW HOW WE MIGHT USE THIS TOOL TO BRING FUTURE PROJECTS TO YOU.

OKAY. SO HERE'S THE REDEVELOPMENT OPPORTUNITY.

THIS IS THE SITE.

LOOKS LIKE IT WAS KIND OF A RAINY DAY WHENEVER THIS PHOTO WAS TAKEN.

SO. OKAY, SO HERE'S THE MODEL.

SO WHAT I HAVE HERE IS BASICALLY TWO AND THIS IS WHERE THE MODEL IS MOST USEFUL.

SO WHEN WE'RE LOOKING AT A PROJECT AND WE'RE LOOKING AT THE INVESTMENT AND IT'S IT'S GOING TO BE PRESENTING, IT'S THESE ARE FISCAL AND ECONOMIC IMPACTS IS WHAT IT'S GOING TO SPIT OUT. IT'S CALLED AN INPUT OUTPUT MODEL.

THE NUMBERS THAT WE THAT I PRESENT TO YOU BEGINNING THE PROJECT AND THE NUMBERS THAT WE SEE TEN YEARS FROM NOW, THEY'RE JUST NOT GOING TO BE THE SAME.

BUT HOW THIS TOOL IS USEFUL IS COMPARING PROJECT TO PROJECT OVER TIME.

SO WE CAN LOOK AT THE CURRENT CONDITIONS OF THE SITE AND LOOK AT ITS TEN YEAR NET BENEFITS FOR FISCAL TAX REVENUES TO THE CITY OF DENTON.

SO WE CAN SEE THAT THE MODEL IS PREDICTING ABOUT $154,000 IN TAX REVENUE AND THEN A COST OF ABOUT 82,000, 83,000, WHICH IS THE COST OF GOVERNMENT SERVICES TO KIND OF KEEP THIS FACILITY RUNNING.

AND THEN I CAME UP WITH MY MY HYPOTHETICAL PROJECT.

IT WAS ABOUT A $10 MILLION REDEVELOPMENT PROJECT, WHICH I THINK IS ON THE CONSERVATIVE SIDE FOR THAT SITE.

AND WE CAN SEE THAT IT'S PREDICTING A BENEFITS OF 1.6 MILLION COST OF GOVERNMENT SERVICES, ABOUT 270, WHICH WHICH NETS OUT TO ABOUT 1.4.

AND SO PROJECT TO PROJECT, IF WE IF WE LOOK AT THIS REDEVELOPMENT OPPORTUNITY, IF WE REDEVELOP THAT SITE, WE SHOULD SEE SOME DIRECT TAX REVENUES TO THE CITY OF DENTON.

BUT I ALSO WANT US TO THINK A BIT HOLISTIC WHEN WE'RE WHEN WE'RE THINKING ABOUT TAX REVENUES.

SO LAST NIGHT I GOT AN OPPORTUNITY TO GO TO A SAID IN A MEETING AND THIS SUPERINTENDENT, I'M FORGETTING HIS NAME, BUT HE WAS PRESENTING THERE.

AND ONE THING HE WAS TALKING TO THE FOLKS THERE ABOUT WAS THESE BOND ELECTIONS THAT THEY'RE HAVING AND AND WHAT THEY'RE GOING TO DO WITH THESE BOND DOLLARS.

AND HE TALKS ABOUT THE IMPORTANCE OF HOW THESE OLDER SCHOOLS ARE BEING REDEVELOPED AND REDONE BECAUSE OF THE NEW DEVELOPMENT THAT'S HAPPENING HERE IN THE CITY OF DENTON.

SO SO BECAUSE OF THE NEW DEVELOPMENT THAT WE'RE BRINGING, WE'RE GETTING NEW SCHOOLS, WE'RE GETTING NEW NEW ARTS FACILITIES.

AND SO I THINK WE CAN'T JUST LOOK TOTALLY AT OUR TAX REVENUES THAT COME TO THE CITY BECAUSE OUR RESIDENTS ARE PAYING TAXES TO SCHOOL DISTRICT, THEY'RE PAYING TO THE COUNTY AND THEY'RE PAYING TO THE CTA.

AND SO OUR RESIDENTS, THESE NEW DEVELOPMENTS, THEY WILL BE GETTING THE THE BENEFITS OF THESE SERVICES, OF THESE OTHER TAXING ENTITIES.

[01:05:05]

BUT IT'S I THINK IT'S PRETTY CLEAR THAT A REDEVELOPMENT OPPORTUNITY IS GOING TO BE MORE BENEFICIAL TO THE TAXPAYERS.

SO ECONOMIC BENEFITS, THIS IS YOU KNOW, I THINK THIS IS KIND OF LIKE THAT PICTURE WE JUST SHOWED WITH OVER ON THE WEST PARK TERS ON WESTERN BOULEVARD THAT THIS IS THE ECONOMIC IMPACT.

RIGHT. THESE ARE THE PRIVATE SPENDINGS THAT WE THAT THE MODEL PREDICTS IF WE INVEST IN THESE.

SO WITH THE CURRENT CEMENT PLANT WE SEE OVER A TEN YEAR PERIOD, YOU GET ABOUT 3 MILLION AND TAXABLE SALES THAT GO TO THE CITY.

AND THEN THIS NEW HYPOTHETICAL, IT BUMPS UP TO ABOUT 18 MILLION.

AND THEN, OF COURSE, SALARIES AND WAGES, YOU KNOW, THIS THESE ARE YOU KNOW, AND I KIND OF WANTED TO DO A REALISTIC PROJECT FOR YOU BECAUSE IN THAT CEMENT PLAN, A LOT OF THOSE JOBS ARE TRUCK DRIVING JOBS.

AND THOSE ARE THOSE ARE HIGH WAGE JOBS.

AND BUT WE MIGHT END UP WITH SOME LOWER PAYING JOBS AS A CONDITION.

SO THERE'S AN ECONOMIC DEVELOPMENT.

I WISH I COULD SAY THERE WAS ALWAYS A PERFECT PROJECT, BUT THERE'S ALWAYS THERE'S A REASON WHY THAT WE'RE INVESTING IN IT TO BEGIN WITH IS BECAUSE THERE'S THERE'S SOMETHING JUST NOT QUITE RIGHT WITH THE PROJECT.

SO WE KIND OF GOT TO LOOK AT THE SUM OF ALL THOSE BENEFITS AND DECIDE WHAT'S WHAT'S BEST.

AND THEN WE MIGHT HAVE A PROJECT THAT MIGHT NOT GET THE ROI ON OUR ON OUR TAX RETURNS.

WE MIGHT NOT SEE THE ECONOMIC IMPACT.

BUT WHAT IT WHAT IT DOES GIVE US IS OUR DOUBLE BOTTOM LINE BENEFITS.

SO INCLUSIVE DEVELOPMENT.

SO I'LL JUST GIVE AN EXAMPLE.

WHEN I WAS IN THE CITY OF DALLAS, I HELPED GET A MEDICAL MEDICAL CARE CLINIC OR WELL, ACTUALLY, I'D SAY DEVELOP, BUT REALLY JUST WENT INTO A SHOPPING CENTER, WHICH IS ONE OF THE REASONS WHY IT WOULD HAVE NEVER PENCILED TAX REVENUE WISE.

AND BUT WHAT WE DID GIVE IS WE GAVE THE AREA, THE RESIDENTS OF THAT AREA, A PLACE WHERE THEY COULD GET MEDICAL CARE, WHERE THEY.

OBVIOUSLY DID NOT. SO WE'LL PROBABLY NEVER SEE THE RETURN ON THOSE TAXES AND THAT INVESTMENT, ENVIRONMENTAL SUSTAINABILITY.

SO THIS IS ACTUALLY INTERESTING IS THERE'S A COUPLE OF PROGRAMS THAT WE SEE IS THAT WHEN WE ACTUALLY INVEST IN MORE SUSTAINABLE DEVELOPMENT, WE DO SEE THAT ROI, BUT IT'S A MUCH LONGER TERM.

BUT IF WE CAN KIND OF PUT SOME CAPITAL UP IN FRONT, THEN YOU WILL USUALLY CASH FLOW POSITIVE AND WE GET THE BENEFIT OF HIGHER VALUED ASSETS, BUT WE'RE ALSO HAVE A CLEANER, SAFER PLACE TO LIVE.

AND THEN HISTORICAL AND CULTURAL SAID, I WAS A HISTORY MAJOR AND YOU KNOW, I DON'T KNOW HOW YOU CAN ACTUALLY PUT A PRICE OR A VALUE ON YOUR HISTORY OR ON YOUR CULTURE. AND SO THAT'S SOMETHING I THINK UP TO THE COMMUNITY FOR THE COUNCIL TO DECIDE WHAT WHAT SORT OF THINGS ARE WORTH PRESERVING AND AND WHAT KIND OF INVESTMENTS DO WE WANT TO MAKE HERE IN THE CITY OF DENTON? OK FUNDING OPTIONS. I'M GOING TO TURN THIS OVER TO KATHY.

THANKS, WAYNE. CASSIE OGDEN, CFO.

SO. YOU'VE SEEN THIS BEFORE.

WE'RE GOING TO TALK ABOUT HOW DO WE FUND THE CATALYST FUND? WHAT ARE OUR FUNDING MECHANISMS THAT WE CAN USE? SO WE PUT TOGETHER A TABLE OF DIFFERENT OPTIONS, THE TOP THREE WE'RE GOING TO TALK ABOUT AS STAFF RECOMMENDATIONS.

BUT SO WAYNE ALLUDED TO THE INCENTIVE ROLL OFFS WE DO HAVE.

AS THOSE INCENTIVES ROLL OFF, WE COULD USE THE MONEY THAT WAS ALREADY BUDGETED AND PUT IT TOWARDS THIS CATALYST FUND.

WE HAVE ONE TIME WATER AND WASTEWATER CONTRIBUTIONS, SO WE BUDGET $1,000,000 IN EACH WATER AND WASTEWATER FUND FOR UTILITY LINES.

THESE HAVEN'T HISTORICALLY BEEN USED, BUT THERE IS IT WOULD BE AN OPTION TO FUND JUST AS SEED MONEY FOR THIS CATALYST FUND CORE SCIENTIFIC FUNDING WHERE WE'RE OBVIOUSLY GOING TO TALK ABOUT THIS MORE IN DEPTH IN THE BUDGET WORKSHOP ON AUGUST 6TH.

BUT THIS COULD BE A POTENTIAL FUNDING OPTION FOR THAT ONE TIME KIND OF SEED FUNDING FOR THE CATALYST FUND.

THERE'S ALSO ADDITIONAL OPTIONS ABOUT INCREASING THE WATER AND WASTEWATER ROI.

WE BRIEFLY TALKED A COUPLE OF WEEKS AGO ABOUT INCREASING THE ELECTRIC ROI.

THIS WOULD BE AN INCREASE TO THE WATER WASTEWATER ROI AND THEN ACTUALLY DEDICATING A PORTION OF THAT ROI TO GO TO THIS FUND OR A PORTION OF PROPERTY TAX WHICH IS UP TO COUNCIL DISCUSSION.

SO TO GET INTO MORE DEPTH OF THE CORE SCIENTIFIC OR THE DATA CENTER REVENUE, YOU MAY REMEMBER WHEN I PRESENTED THE ELECTRIC BUDGET FOR FY 23, WE HAD

[01:10:01]

SO WE REALLY WE WANT TO AVOID RELYING ON THIS SINGLE BUSINESS WHERE WE ALL KNOW WHAT'S GOING ON IN THE MARKET.

IT'S VOLATILE.

WE DON'T WANT TO DEPEND ON THAT TO PAY SALARIES IN GENERAL, FUND OVER 70% OF OUR EXPENSES OR SALARIES.

SO BUT WE DO HAVE IT'S A LARGE AMOUNT.

SO YOU CAN SEE THE PHASING TIMELINE THAT'S EXPECTED.

BUT WE ARE PRELIMINARY OUR PRELIMINARY ALLOCATION AND OBVIOUSLY FOR MORE DISCUSSION DURING THE BUDGET WORKSHOP WOULD BE TAKE $5 MILLION OF THE 14 AND PUT TOWARDS THE CATALYST FUND AS ONE TIME FUNDING.

AND YOU CAN SEE THE OTHER POTENTIAL ALLOCATION FOR THE OTHER TYPES OF FUNDS THAT WE COULD USE THAT MONEY TOWARDS.

AND SO JUST REAL BRIEFLY, WE TALKED ABOUT THE EXPIRING INCENTIVES.

THIS IS A TEN YEAR LOOK OF WHAT THAT COULD LOOK LIKE RIGHT NOW, THE INCENTIVES THAT WE HAVE, THE DIFFERENT TYPES AND WHERE THEY ROLL OFF.

AND THEN TO SUMMARIZE, THIS IS OUR STAFF RECOMMENDATION.

SO IF COUNCIL GIVES US DIRECTION, WE WOULD WE WOULD USE 5 MILLION OF THE DATA CENTER REVENUE FOR FY 23.

AND KEEPING IN MIND THIS WOULD BE FUNDED AS THE FUNDS ARE REALIZED.

SO AS WE AS WE WE SEE THOSE REVENUES COME IN, WE WOULD WE WOULD TRANSFER IT OVER TO THE CATALYST FUND AND THEN THE WATER AND WASTEWATER UTILITY BECAUSE THAT CORE SCIENTIFIC REVENUE IS REALLY FROM ELECTRIC.

SO JUST PART OF OUR UTILITY SYSTEM, WATER AND WASTEWATER ARE THE OTHER PART OF THAT UTILITY SYSTEM.

SO THE $2 MILLION THAT'S ALREADY AVAILABLE IN THE WATER, WASTEWATER FUNDS FOR THAT FIRST YEAR OF $7 MILLION FOR THE CATALYST FUND BECAUSE YOU CAN SEE THOSE INCENTIVE ROLL OFFS ARE IN SUBSEQUENT YEARS.

SO IT DOESN'T GIVE US AN IMMEDIATE FUNDING MECHANISM IN THE FIRST YEAR.

AND SO WE'RE WE'RE HERE TO GET COUNSEL'S DIRECTION HOW WE NEED TO INCORPORATE THIS IN THE THE CITY MANAGER'S PROPOSED PROPOSED BUDGET THAT WE'RE GOING TO TALK ABOUT ON AUGUST 6TH.

SO THE DEADLINE'S COMING UP, BUT I'M HAPPY TO ANSWER ANY QUESTIONS THAT YOU HAVE.

GREAT. THANK YOU.

QUESTIONS FOR STAFF.

MAYOR PRO TEM. THANK YOU, MR. MAYOR. SO FOR FOR EITHER KASEY OR WAYNE, IT SEEMS LIKE FOUR OR FIVE OF OUR POTENTIAL FUNDING SOURCES WERE UTILITY AND AND ROI, AND LET'S JUST CALL THEM INFRASTRUCTURE BASED.

AND AND SO, YOU KNOW, TRADITIONALLY, WHY DO WE HAVE SORT OF ROI ON INFRASTRUCTURE BASED WHAT'S IT'S IT'S NOMINAL ROLE FOR IN OUR OVERALL BUDGETING PROCESS.

I MEAN, NOT JUST FOR US BUT JUST GENERALLY FOR A MUNICIPALITY.

AND WHY IS THERE ROI GENERALLY? YEAH, I THINK FOR THE MUNICIPALITY IT'S A IT'S A BENEFIT TO HAVE THOSE UTILITIES.

AND SO THE GENERAL FUND SPENDS A LOT OF TIME, MONEY, EFFORT TO MAINTAIN THOSE UTILITIES.

SO IT'S A BENEFIT BACK TO GENERAL FUND TO HAVE THOSE.

SO THAT'S WHAT YOU SEE WITH THE ROI FEE IS THAT THAT INVESTMENT IN THOSE UTILITIES COMING BACK TO THE GENERAL FUND FOR OWNING AND OPERATING THAT UTILITY.

BUT BUT GENERALLY IT I'D BE CORRECT TO SAY THAT THOSE WE'RE TARGETING INFRASTRUCTURE CURRENTLY LIKE HERE IN DENTON, WHERE WE ALLOCATE A CERTAIN PERCENTAGE OF THAT TO ROADWAYS.

RIGHT NOW, WE'RE FIXING TO OR IN THE BEGINNING OF, I CAN SAY, FIXING TO I'VE LIVED HERE IN TEXAS LONG ENOUGH.

THE WE'RE WE'RE FIXING TO HAVE THAT DISCUSSION ABOUT WHAT PERCENTAGE OF OUR HOUSES GO WHERE THE SO I GUESS BUT AGAIN THOSE ARE TYPICALLY USED LIKE IN CURRENTLY FOR ROADWAY REPAIRS.

WE'VE TALKED ABOUT IT FOR THE SUSTAINABILITY FRAMEWORK AND OTHER INFRASTRUCTURE.

WE'VE TALKED ABOUT IT FOR FOR WE'RE KEEPING THAT INFRASTRUCTURE MONEY AND INFRASTRUCTURE.

CORRECT. ALL RIGHT.

SO SO THEN I GUESS MY MY SORT OF FOLLOW ON QUESTION TO THAT FOR EITHER ONE OF YOU IS WHAT IS DRIVING INVESTMENT IN DENTON RIGHT NOW? WHY DO PEOPLE WANT TO COME HERE IN GENERAL? THAT'S A IT'S A BIG QUESTION.

BUT, YOU KNOW, I HAVEN'T I COULD DO SOME RESEARCH ON IT.

BUT IF YOU IF I WAS JUST GOING WITH MY PRIOR KNOWLEDGE, WE'RE JUST IN THE PATH OF DEVELOPMENT RIGHT NOW.

SO I THINK JUST HISTORICALLY, IF YOU LOOK IN THE REGION, DALLAS COUNTY HAS BEEN WHERE A LOT OF THE ECONOMIC INVESTMENT HAS GONE.

OF COURSE, YOU'VE ALWAYS HAD TARRANT COUNTY, LITTLE, LITTLE BROTHER TO DALLAS COUNTY, RIGHT OVER TO THE SIDE.

BUT BUT EVEN DALLAS COUNTY STARTED SEEING ITS LUNCH GET EATEN BY COLLIN COUNTY.

[01:15:02]

AND DENTON COUNTY HAS KIND OF BEEN OVER HERE ON THE SIDE.

AND SO THIS IS THIS IS THE VALUE PLAY, I WOULD SAY, RIGHT NOW IN THE METROPLEX THAT WE'RE GOING TO START SEEING.

AND IT'S INTERESTING, I ACTUALLY RAN INTO A DEVELOPER WHO I WORKED WITH DOWN IN DALLAS.

HE'S UP HERE. HE'S HE'S LOOKING AT THINGS.

THEY'RE STARTING TO TAKE A LOOK AT THE CITY OF DENTON, BECAUSE OUR OUR LAND VALUES ARE STILL MUCH LOWER COMPARED TO THE REST OF THE METROPLEX.

AND, YOU KNOW, ULTIMATELY, A LOT OF YOUR INVESTMENT VALUES ARE GOING TO COME FROM THAT.

NOW, WHERE I STILL THINK THAT WE'RE WE MIGHT BE KIND OF STRUGGLING ON IS WHEN WE'RE RECRUITING BUSINESSES IS OUR OUR HOUSING DEVELOPMENT.

SO I THINK THAT'LL PROBABLY BE THE FIRST DOMINO THAT WE'LL PROBABLY SEE, YOU KNOW, THE COAL RANCH, HUNTER RANCH.

WE'RE GOING TO START TO SEE THOSE DEVELOPMENTS.

COME ALONG. COME ON. AND WHEN YOU SEE THAT, WE'RE GOING TO SEE THE COMMERCIAL COME ONLINE AFTER THAT.

SO THAT WOULD JUST BE ME, YOU KNOW, SPITBALLING, WOULD IT WOULD IT BE SAFE TO SAY THAT A LOT OF WHAT ATTRACTS PEOPLE HERE IS OUR OUR AGAIN LEADING IN FROM THE PREVIOUS QUESTIONS.

THE CASSIE IS OUR INFRASTRUCTURE IS OUR IS OUR ROADWAY NETWORK.

WE'VE GOT THE SIX TECH DOTS.

IS OUR SUSTAINABILITY ELECTRICAL SUPPLY A SUSTAINABLE ELECTRICAL SUPPLY? I WOULD SAY DEFINITELY. WE'RE STRATEGICALLY LOCATED ON I-35 WHERE WE SPLIT RIGHT BETWEEN TARRANT COUNTY AND DALLAS COUNTY.

AND TO YOUR POINT, THESE ARE FREEWAYS, WHEREAS OVER IN COLLIN COUNTY THEY HAVE TOLL ROADS, TOLL ROADS IN TARRANT COUNTY EVEN.

AND FOR ALL INTENTS AND PURPOSES, ALL OF OUR ROADWAYS ARE FREEWAYS.

SO THOSE INVESTMENTS BY BY WHO AMR ARE ARE ATTRACTING SOME GROWTH HERE FOR SURE.

AND SO THE REASON I BRING THIS ALL UP IS IT SEEMS LIKE WE'RE HAVING INFRASTRUCTURE MONEY THAT'S THAT'S RETURNING ON INVESTMENT.

AND AND YET THAT INFRASTRUCTURE IS ALSO WHAT'S PUSHING A LOT OF OUR SUSTAINABLE GROWTH, REGARDLESS OF PARTICULAR BUSINESS.

JUST BUSINESS SECTOR IN GENERAL WAS PUSHING OUR OUR RESIDENTIAL GROWTH AS WELL AS THE FACT THAT WE ARE LAYING DOWN A FERTILE BED WHERE, IF I CAN MIX METAPHORS, WE'RE ESTABLISHING A TIDE THAT RISES ALL BOATS BY BY INVESTING IN INFRASTRUCTURE.

SO. I GUESS MY CONCERN THAT I'M BRINGING UP IS PART OF THIS CONVERSATION THAT WE'RE HAVING IS IT SEEMS LIKE MOST OF THE SOURCES OF REVENUE THAT WE WOULD BE USING TO FUND THE CATALYST FUND IN GENERAL.

OUR INFRASTRUCTURE SOURCES THAT ARE NOT GOING BACK INTO INFRASTRUCTURE PER SAY, ALTHOUGH THAT WAS ONE OF YOUR CATEGORIES, I THINK IN YOUR THIRD OR FOURTH SLIDE.

BUT IT SEEMS LIKE A LOT OF THE REST OF THE CATEGORIES WERE LEVERAGING SALES TAX AND PROPERTY TAX DOLLARS, WHICH ARE THE TRADITIONAL SOURCES OF THESE SORTS OF CATALYST FUNDS THAT YOU CAN IN YOUR DISCUSSION OF, FOR AND FOR B FUNDS.

AND SO IT FEELS LIKE I'M A LITTLE CONCERNED WE'RE SHIFTING INFRASTRUCTURE DOLLARS THAT WOULD BE BETTER SPENT ON DEVELOPING MORE INFRASTRUCTURE OUT OF INFRASTRUCTURE INTO ANOTHER SECTOR.

AND THAT CONCERNS ME.

CAN YOU CAN YOU TALK ABOUT THAT? YEAH, I'LL I'LL SPEAK. AND THEN IT LOOKS LIKE CASSIE HAS SOMETHING TO SAY.

SO I THINK ONCE AGAIN, THE REASON THAT WE DO ECONOMIC DEVELOPMENT AND WE CALL THEM INCENTIVES IS, AS WE'VE JUST SAID, DEVELOPMENT IS COMING TO THE CITY OF DENTON.

ALL OF THOSE INITIATIVES, ALL OF THOSE THINGS ARE PART OF OUR STRATEGIC PLAN.

THE CATALYST FUND IS GOING TO ALLOW US TO INCENTIVIZE THE DEVELOPMENT THAT THE COMMUNITY WANTS.

WE MAY PUT ALL THOSE INFRASTRUCTURES OUT THERE AND WE MAY GET THE DEVELOPMENT THAT THAT THE COMMUNITY DOESN'T WANT.

BECAUSE THERE'S A METAPHOR.

WE TALK ABOUT ECONOMIC DEVELOPMENTS, ECONOMIC GARDENING, BECAUSE YOU MAY PUT OUT ALL THIS GREAT FERTILIZER AND EVERYTHING, BUT THEN YOU'RE GOING TO GET A BUNCH OF WEEDS.

AND IF YOU'RE NOT PULLING YOUR WEEDS AND YOU'RE NOT PLANTING THE FLOWERS AND THE TYPE OF FRUITS YOU WANT, YOU'RE GOING TO GET OVERRUN WITH WEEDS.

SO THAT'S THAT'S THE POINT OF THE CATALYST FUND IS TO IS SO THAT WE CAN GO AND WE CAN WE CAN TELL THE DEVELOPMENT COMMUNITY THESE ARE OUR GOALS AND THIS IS WHAT WE WANT. AND IF YOU COME HERE AND DEVELOP THESE TYPES OF INVESTMENTS, THEN THEN WE WILL WE WILL REWARD YOU WITH A HIGHER RATE OF RETURN THAN YOU WOULD GET IN OTHER MARKETS. BUT I'LL LET CASSIE SPEAK ON THE OTHER SIDE OF THAT.

SO TO ANSWER YOUR QUESTION ABOUT THE INFRASTRUCTURE INVESTMENT, THIS THIS FUNDING OPTION DOES STILL CONTINUE TO FUND STREETS.

SO WE STILL SEND A PORTION OF THOSE FRANCHISE FEES TO THE STREET FUND.

I THINK WE'RE UP TO 16 AND A HALF MILLION DOLLARS NEXT YEAR.

SO THIS DOES NOT TAKE AWAY FROM OUR INFRASTRUCTURE INVESTMENTS FOR THE GENERAL FUND SIDE.

THIS ALSO ALLOWS US TO UTILIZE THIS THIS INFLUX THAT'S COMING.

[01:20:04]

WE'RE TRYING TO BE SMART WITH HOW WE'RE FORECASTING THAT INVESTMENT.

SO WE SEE A NEED WE SAW A NEED COUNCIL GAVE US DIRECTION LAST YEAR TO MOVE FORWARD WITH THE CATALYST FUND, BUT WE DIDN'T HAVE A GREAT FUNDING MECHANISM THAT DIDN'T TAKE AWAY WHAT WE WERE ALREADY DOING IN GENERAL FUND.

SO THIS THIS IS SOMETHING THAT'S ALREADY HAPPENING.

WE'RE HAVING TO HAVE THOSE CONVERSATIONS NOW WITH WHAT TO DO WITH THIS FUNDING.

AND THIS DOES NOT TAKE AWAY FROM OUR STREETS OR OUR CAPITAL PROJECTS FUNDING.

THIS IS IN ADDITION TO ONE ONE LAST FOLLOW UP, IF I MIGHT, MR. MAYOR, AND THIS RELATES TO THAT.

AND THAT IS WHAT WHAT WHAT WOULD BE THE PROS AND CONS OF HAVING A CATALYST INFRASTRUCTURE VERSUS A CATALYST VALUE ADDED PROPERTY TAX? TWO SEPARATE ONES.

I MEAN, I UNDERSTAND THAT YOU WOULD HAVE A SMALLER POOL AND YOU WOULD LOSE SOME FLEXIBILITY, BUT THEN YOU WOULD BE KEEPING APPLES WITH THE APPLES AND ORANGES WITH THE ORANGES. I MEAN, THAT'S UP TO COUNCIL'S DIRECTION.

WE'RE HAPPY TO EXPLORE THAT.

IT'S NOT AN OPTION THAT WE SEE RIGHT NOW JUST BECAUSE WE'RE IN THE MIDDLE OF BUDGET AND WE ARE TRYING TO KEEP AN EYE ON WHAT WE CURRENTLY HAVE VERSUS FORECASTING AN INCREASE.

BUT WE'RE HAPPY TO LOOK AT LOOK INTO THAT.

ALL RIGHT. THANK YOU. OKAY. AND AS WE GO, I MEAN, WE HAVE 10 MINUTES BUDGETED.

OBVIOUSLY, WE HAVE A LITTLE FLEXIBILITY TODAY, UNLIKE OTHER DAYS.

AND I'M GOING TO TRY TO GIVE THAT LENIENCY.

IT'S AN IMPORTANT CONVERSATION, BUT I THINK IT'S IMPORTANT TO TO JUST NOTE, IF ALL SEVEN OF US HAVE SEVEN IDEAS AND STAFF HAS SEVEN DIFFERENT PROCESSES TO TRY TO ANSWER THOSE WE STILL DON'T HAVE FOR PULLING IN ONE WAY OR ANOTHER.

SO IT'S REALLY ABOUT QUESTIONS THAT WOULD GET YOU TO EITHER YES OR NO AND GUIDE YOUR DECISION SO THAT WE CAN COME TOGETHER TO GIVE CLEAR DIRECTION SO THAT OUT YOUR CONCERNS.

BUT WITH THE WITH THE EXPRESS GOAL OF UNDERSTANDING, YOU MAY NOT WE NOT MAY NOT ALL SYNC UP ON THE SAME THINGS.

AND SO VETTING EVERY ISSUE WE HAVE WITH THIS RIGHT NOW WON'T GET US WHERE WE'RE GOING TO HAVE A CONSENSUS.

SO IF WE COULD JUST MOVE TOWARDS THAT WAY, I'M GOING TO MOVE ON.

COUNCIL MEMBER MAGUIRE. THANK YOU.

THIS QUESTION FOR KASEY.

SO THE FIVE YEAR PRO FORMA FOR THE ELECTRIC FUND THAT WE SAW LAST WEEK THAT WAS FORECASTING 5% RATE INCREASES IN FY 24 AND 25 AND THEN A 2% INCREASE IN 26.

WAS THAT TAKING INTO ACCOUNT LIKE THE PROPOSED ALLOCATION OF DATA CENTER REVENUE THAT THAT YOU'VE SHOWN US TODAY? YES, IT DID INCLUDE THIS.

OKAY. THANK YOU. ANYONE ELSE? KATHERINE MCGEE. THANK YOU, MR. MAYOR. SO HELP ME UNDERSTAND, WHAT ARE WE LOOKING FOR? DIRECTION FROM ON, SPECIFICALLY THE FUNDING MECHANISM FOR THE CATALYST FUND.

IF YOU WOULD LIKE US TO ESTABLISH THAT HOW WE'RE GOING TO FUND THAT IN THE NEXT YEAR'S BUDGET BECAUSE THE STAFF RECOMMENDATION WAS FIVE AND TWO.

YEAH, THE STAFF RECOMMENDATION IS REALLY A COMBINATION OF ALL OF THE TOP THREE OPTIONS THAT I SHOWED.

SO THE INCENTIVE ROLL OFF, WHICH WON'T HAPPEN IN THE FIRST YEAR, BUT THEN THE, THE ONE TIME CONTRIBUTION FOR WATER AND WASTEWATER IN THE FIRST YEAR AND THEN THE CORE SCIENTIFIC REVENUE IN THE FIRST YEAR. YES, CORRECT.

I'M FINE WITH THE STAFF RECOMMENDATION, SO MY DIRECTION IS TO MOVE FORWARD WITH THAT.

WELCOME TO DENTON. CONGRATULATIONS ON YOUR FIRST PRESENTATION.

ARE WE LESS INTIMIDATING THAN DALLAS? YES, I'M VERY EXCITED ABOUT THIS.

WHERE YOU HAD ME SOLD, AS YOU SAID, THE PUBLIC BENEFIT OF THIS IS JOBS AND THAT THAT IS SOMETHING THAT VERY MUCH EXCITES ME.

THE SLIDE YOU HAD ABOUT THE SLIDE YOU HAD YOU TALKING ABOUT THE STRATEGIC PLAN, YOU TALKED ABOUT THE PURPOSE.

AND WHEN YOU TALKED ABOUT MAKING SURE THAT COMPANIES CAN GO TO AREAS THAT ARE HISTORICALLY UNDER UNDER PERFORMING, THAT'S VERY EXCITING TO ME, KNOWING THAT THE BUSINESS COMMUNITY ARE STILL VERY, VERY SEGREGATED AND SEPARATED.

SO I'M VERY EXCITED ABOUT THIS.

GIVEN YOUR EXPERIENCE, I TRUST YOU TO DO THIS KNOWING WHAT YOU DID IN THE CITY OF DALLAS, IN THE SOUTHERN SECTOR.

SO I'M VERY HAPPY YOU'RE PART OF THE TEAM AND ONWARD.

THANK YOU VERY MUCH, MR. MAYOR.

THANK YOU. LOOKING FORWARD TO THE QUESTIONS.

COUNCILMAN BERT, IT'S GOOD TO HAVE YOU IN FRONT OF ME AGAIN.

IT WAS NICE TO SEE YOU LAST NIGHT AT THE SENATE MEETING.

I JUST WANT TO JUST MAKE A BRIEF STATEMENT.

AND IT'S FOR EDUCATIONAL PURPOSES, I'M SURE.

BUT, YOU KNOW, AS WE'RE GROWING OUTWARD, WE'RE HAVING PEOPLE FROM ALL OVER THE WORLD, ALL OVER THESE THE UNITED STATES AND THESE LARGE CITIES THAT ARE COMING TO DITTON AND FOR A REASON.

AND I KNOW THAT WE HAVE BEEN SET ON OUR MOTTO, THAT WE HAVE A SMALL TOWN FILLED WITH BIG CITY AMENITIES.

[01:25:09]

AND SO I'M REALLY LOOKING FORWARD TO SEEING THE TYPES OF COMPANIES THAT WANT TO COME IN HERE THAT'S GOING TO PROFESS TO HELP US STAY THAT WAY, ALTHOUGH THEY NEED WE NEED HOUSING AND AND WE NEED MORE SCHOOLS AND WE'RE GOING TO NEED MORE EMPLOYEES AND MORE STREETS AND AND ALL OF THOSE THINGS.

SO THAT'S THE CHALLENGE THAT I'LL BE LOOKING FORWARD TO HELP GROWING AS LONG AS I'M HERE.

THE HOMETOWN FILLED WITH BIG CITY AMENITIES.

ABSOLUTELY. I THINK WE CAN DO THAT, CAN WE? I THINK SO. AND LIKE I SAID, I THINK A LOT OF THOSE FOLKS ARE ALREADY HERE.

THOSE BUSINESSES ARE ALREADY HERE.

THEY'RE THOSE DEVELOPERS ARE ALREADY PART OF THIS COMMUNITY.

AND WE'RE JUST GOING TO HELP THEM GROW WITH US AND THEN MAKE SURE THAT THE BUSINESSES THAT COME HERE FIT OUR VALUES.

THANK YOU. COUNCILMAN WATSON.

THANK YOU. UNFORTUNATELY, MAYOR PRO TEM, YOU ASKED WHY ARE PEOPLE COMING HERE? AND THEY'RE REALLY NOT.

I MEAN, SOME OF THE BUSINESSES THAT ARE COMING, I MEAN, WE'VE WE'VE SORT OF BEEN STAGNANT IN ECONOMIC DEVELOPMENT FOR THE LAST TWO OR THREE YEARS.

I KNOW COVID HAS SOMETHING TO DO WITH THAT.

I DON'T SEE THE FUNDING OUT OF THE INFRASTRUCTURE AS APPLES AND ORANGES BECAUSE IT'S ALL THE SAME FUNDING.

IF WE DON'T FUND IT FROM SOMEWHERE, WE FUND IT FROM SOMEWHERE ELSE.

SO WE COULD SAY WE'RE GOING TO PASS A ONE OR TWO CENT SALES TAX, TWO CENT PROPERTY TAX INCREASE TO FUND IT, OR WE TAKE IT FROM THE INFRASTRUCTURE.

BUT WHEN YOU LOOK AT IT, I STILL THINK WE'VE GOT TO FIGURE OUT A MORE ROBUST WAY IF WE'RE REALLY GOING TO ATTRACT THE KIND OF BUSINESSES AND EVEN THE SMALL BUSINESSES AND THE MEDIUM SIZED BUSINESSES THAT WE WANT TO EVEN RETAIN HERE.

BECAUSE WHEN YOU LOOK AT THE PROJECTIONS AT THE END AND FIRST OF ALL, I'M OKAY WITH THE RECOMMENDATIONS, LET ME JUST SAY THAT RIGHT NOW, I'M OKAY WITH THE RECOMMENDATIONS.

AND I THINK IT'S A GREAT START.

BUT I THINK WHEN YOU LOOK AT THE PROJECTIONS, WE'RE WE'RE STARTING OUT WITH $7 MILLION IN 2020 223, AND WE'RE ENDING UP WITH 23 AND 20, 31, 32, WHICH IS ABOUT A TEN.

WHAT IS THAT, ABOUT $16 MILLION INCREASE OVER TEN YEARS.

WHEN YOU LOOK AT THE CHART THAT SHOWS THE OTHER CITIES WHO HAVE FOUR AND FOUR B AND LET'S JUST FOR EDUCATIONAL PURPOSES, WE DON'T HAVE A FOUR AND FOUR B BECAUSE THE CITY PASSED A SALES TAX ALLOCATION FOR D.C.

TO. SO OUR SALES TAX OF 15 TO 16 $17 MILLION A YEAR GO TO DC TO WHERE AS YOU LOOK AT THE OTHER CITIES THAT WERE IN THAT CHART, NOBODY'S DOING THAT. THEY'RE ALL. GOT THE FOUR OR THE FOUR B AND THERE THEY'RE PULLING IN 13 TO 14 MILLION A YEAR.

SO IF WE'RE GOING TO BE COMPETITIVE, WHATEVER THAT WORD MEANS, WE'VE GOT TO ALSO FIND SOME ADDITIONAL WAYS.

JUST SAW AN ARTICLE YESTERDAY.

I BELIEVE DALLAS COUNTY IS SHRINKING.

DALLAS IS SHRINKING BY 1%.

I BELIEVE THE LAST CENSUS OR THE LAST TIME.

AND THOSE PEOPLE ARE MOVING OUT INTO THE SUBURBS.

SO WE HAVE AN OPPORTUNITY.

THEY'RE GOING TO COME HERE.

IT'S JUST, WHO DO WE WANT TO COME HERE? WHAT KIND OF HIGHER BENEFITS CAN WE PROVIDE FOR OUR CITIZENS, FOR OUR COMMUNITY? AND SO I THINK THIS IS A GREAT START, BUT I THINK IF WE'RE REALLY GOING TO BE SERIOUS ABOUT IT, WE'VE GOT TO CONTINUE TO FIND OTHER WAYS TO DO IT BECAUSE WE'RE STILL BEING OUTSPENT BY COMMUNITIES THAT HAVE JUST AS MUCH TO OFFER SMALL TOWN, YOU KNOW, BIG CITY, SUBURBAN AMENITIES.

THEY'VE GOT JUST AS MUCH TO OFFER WITH ABOUT DOUBLE OR TRIPLE THE AMOUNT OF AVAILABLE FUNDS TO REALLY ATTRACT THOSE PEOPLE.

SO I THINK THIS IS A GREAT START AND THIS WOULD BE SOMETHING THAT IS GOING TO BE WONDERFUL FOR THIS CITY BECAUSE WE'VE WORKED REAL HARD TO GET TO THIS POINT.

AND WHETHER IT COMES OUT OF WASTEWATER OR WHETHER IT COMES OUT OF ELECTRIC FUND, WHETHER IT COMES OUT OF RETURN ON INVESTMENT OR A ONE OR TWO CENT PROPERTY TAX INCREASE, WHICH I DON'T THINK ANYBODY ON THIS DAIS IS GOING TO BE WILLING TO DO THAT.

SO YOU'VE GOT TO FIND IT SOMEWHERE.

BUT IT'S ALL THE SAME BUCKET.

YOU KNOW, IT'S COMING FROM THE RIGHT PAYERS, YOU KNOW, TO SOME DEGREE NOW OR IT COMES FROM THE PROPERTY TAX PAYERS.

WE DON'T HAVE ANY MORE CAPACITY IN OUR SALES TAX RIGHT NOW.

SO IT DOES AND I REALLY THINK WE NEED TO LOBBY AUSTIN TO SAY, HEY, IF YOU GOT A TRANSPORTATION SALES TAX, I THINK THEY OUGHT TO GIVE US AN INCREASE IN OUR OUR SALES TAX CAPABILITIES BECAUSE I THINK THAT'S A BIG PUSH TO HAVE REGIONAL TRANSPORTATION.

SO I'M GOOD WITH RECOMMENDATION.

I APPRECIATE YOUR CREATIVITY IN IT.

IT IS A ONE TIME THING FROM THE WE DON'T KNOW WHAT THE DATA CENTER IS GOING TO DO AND WE CANNOT RELY UPON THAT FUNDING ON A YEAR BY YEAR BASIS AT ALL.

IF IT MATERIALIZES, GREAT.

IF IT DOESN'T, I MEAN, $5 MILLION IS A LOT OF MONEY.

SO IF IT DOESN'T MATERIALIZE, IT'S ONLY GOING TO BE DONE AS YOU GET IT.

[01:30:03]

SO I'M OKAY WITH THE STAFF RECOMMENDATION, MAYOR, AS FAR AS DIRECTION.

OKAY. THANK YOU. ANYONE ELSE? COUNCILMAN MAGUIRE IN MAYOR PRO TEM.

THANKS SO MUCH. I THINK STEPH KNOWS THAT I'M GENERALLY SKEPTICAL ABOUT ECONOMIC DEVELOPMENT AGREEMENTS.

IT'S SOMETHING THAT I WANT TO BE VERY, VERY CAREFUL ABOUT.

BUT I THINK THAT CASSIE IN PARTICULAR HAVE DONE A REALLY GOOD JOB OF LISTENING TO THE CONCERNS THAT WE HAD LAST YEAR AND COMING UP WITH A PLAN THAT ACHIEVES, I THINK, SOME SOME REASONABLE AND SOME REALISTIC ECONOMIC DEVELOPMENT GOALS.

I DON'T THINK THAT WE NEED TO BE COMPETING WITH FRISCO.

I DON'T THINK IT SHOULD BE OUR GOAL TO ALLOCATE $300 PER CAPITA TO ECONOMIC DEVELOPMENT.

I DON'T THINK THAT'S WHAT OUR RESIDENTS WANT, BUT I THINK IT'S REASONABLE TO SAY THAT OUR RESIDENTS PROBABLY WANT A LITTLE BIT MORE INVESTMENT THAN WE CURRENTLY HAVE.

AND I THINK THAT THAT'S THAT'S WHAT STAFF IS RECOMMENDING, AND I'M COMFORTABLE WITH WHAT STAFF IS RECOMMENDING.

WE ABLE TO? I DO WANT TO CONGRATULATE EVERYONE FOR THE HARD WORK AND LISTENING TO THE STAFF OVER THE YEARS AND WAYNE FOR COMING ON BOARD AND HEARING SOME OF THE MESSAGES FROM FROM PRIOR YEARS.

I THINK YOU CAN TELL FROM MY CONVERSATION AT THE BEGINNING THAT I HAVE GREAT CONCERNS ABOUT SHIFTING INFRASTRUCTURE, MONIES OUT OF INFRASTRUCTURE AND TO SOME DEGREE, KASY, THAT YOU DIDN'T REALLY ALLAY MY FEARS, REALLY.

AND I ALSO HAVE GREAT CONCERNS ABOUT POTENTIALLY NOT GETTING REVENUE THAT WE DO SPEND ON MASS TRANSIT, NOT ALLOCATED TOWARDS MASS TRANSIT.

I WANT TO BE CLEAR THAT THAT IS AN INFRASTRUCTURE PIECE, THAT THAT WE CAN'T WE CAN CERTAINLY NOT AFFORD TO GET RID OF JUST FOR THE SAKE OF ECONOMIC DEVELOPMENT.

SO, YOU KNOW, I CAN SEE MY WAY CLEAR TO HAVING TWO DIFFERENT CATALYST FUNDS, ONE DEDICATED TO INFRASTRUCTURE AND ONE THROUGH EVERY OTHER SOURCE OF FUNDS THAT YOU ALL WANT TO COME UP WITH.

BUT I'M AND I THINK A LOT OF GOOD DID A LOT OF GOOD WORK.

BUT FOR THIS PARTICULAR THING, I CAN'T I HAVE TOO MANY CONCERNS ABOUT THE SHIFTING OF INFRASTRUCTURE MONEY TO TO LEND SUPPORT.

SO MAYOR DIDN'T ASK FOR WHAT I WOULD WANT IN ALTERNATIVES.

SO I'LL JUST SAY I DON'T GIVE DIRECTION FOR THIS, BUT I COULD GIVE DIRECTION TO SOMETHING SPLIT.

ALL RIGHT. ANYONE ELSE? BEFORE I CLOSE IT OUT.

MAYOR COUNCIL MEMBER.

SORRY. I JUST WANT TO MAKE IT CLEAR OUT OF HERE.

I ALWAYS CALL THE MAYOR WHILE YOU GET MAYOR BURROWS AND MAYOR MCNEIL.

SO IT'S JUST. THAT'S THE THING.

SO I HAVE TO BE OF TWO MINDS.

YEAH. FIRST OF ALL, I BELIEVE THE MILLION DOLLAR WASTEWATER AND WATER, HAS THAT ALWAYS BEEN BUDGETED AT THAT, OR WAS IT HALF A MILLION? 2 MILLION, BUT IT'S A MILLION EACH.

AND IT'S BEEN LIKE THAT FOR, I BELIEVE, SEVERAL YEARS.

SO THAT'S NOTHING REALLY THAT'S NOTHING NEW.

AND I JUST WANT TO SAY, COUNCILMAN MAGUIRE, I WAS NOT REFERRING TO FRISCO.

NOBODY'S SAYING ANYTHING ABOUT FRISCO.

BUT WHAT I'M SAYING IS, IS THAT DENTON IS AT $27 PER CAPITA.

THAT'S THREE TIMES LESS OR MORE THAN THREE TIMES LESS THAN THE CLOSEST CITY, WHICH IS MESQUITE, DESOTO, LEWISVILLE.

AND I JUST THINK IF WE'RE GOING TO COMPETE WITH THOSE CITIES AROUND US, WE NEED TO AT LEAST PROVIDE SOMETHING THAT'S THAT'S SIMILAR.

SO I JUST WANT TO MAKE IT CLEAR, NOBODY'S ADVOCATING FOR DENTON TO BE A FRISCO, BUT WE ALSO JUST DON'T WANT A BUNCH OF WAREHOUSES THAT COME TO OUR CITY THAT PAY, YOU KNOW, 15 TO $18 AN HOUR JOBS.

WE WANT SOMETHING THAT CAN ALSO PROVIDE SOME OTHER OPPORTUNITIES FOR PEOPLE AND ECONOMIC UPWARD MOBILITY.

SO I THINK IT'S A IT'S GOING TO BARE IT OUT.

TIME WILL TELL. YEP.

ANYONE ELSE FOR OUR CLOSE OUT CNN? WELL, GREAT CONVERSATION.

GREAT PRESENTATION THERE.

YOU TALKED ABOUT THE THE MEDICAL FACILITY.

IS THAT DOWN BY REDBIRD MALL? IS THAT YOU KNOW, SO THAT'S THAT'S I THINK THAT'S PARKLAND.

NO, THIS ONE'S OFF MARCELLUS AVENUE.

OKAY. SO DISTRICT FOUR, I'LL PICK YOUR BRAIN ON THAT.

I'M CURIOUS. JUST GLENDALE SHOPPING CENTER, YOU CAN.

SO ACTUALLY DR. EDWARDS WAS A UNT FOOTBALL PLAYER, SO IT'S PRETTY INTERESTING.

YOU KNOW, HE'S A GREAT GUY AND, YOU KNOW, MAYBE I CAN CONVINCE HIM TO COME UP COME UP HERE AND TELL YOU ABOUT IT.

SO, YEAH, SOMETHING LIKE THAT UP HERE.

GOOD. YEAH.

SO FOR ME, FROM MY DIRECTION, I SUPPORT STAFF AND HERE'S WHY.

FIRST OUT OF THIS CONVERSATION, I THINK THAT'S GREAT.

A HOPEFULLY A PLEASANT SURPRISE OUT OF THIS CONVERSATION IS NO ONE AT THIS DAIS WILL EVER SAY AUSTIN DID IT RIGHT BECAUSE WE DON'T WANT TO BE FRISCO.

I DON'T WANT TO BE AUSTIN.

LET'S JUST AGREE. WE WANT TO BE DENTON AND NOT TALK ABOUT OTHER CITIES.

[01:35:02]

SO HOPEFULLY THAT WILL COME OUT OF THIS THEN.

I THINK YOUR WHEAT ANALOGY IS SPOT ON.

I THINK THAT'S EXACTLY RIGHT.

AND THAT'S THE RIGHT PICTURE FOR THE CITIZENS AND THE PEOPLE WE REPRESENT.

AND IF WE'RE TO BE DIALED INTO THEM, THEY DON'T WANT A BUNCH OF WEEDS, THEY WANT SPECIFIC.

WE HAVE GAPS.

WE CAN IDENTIFY THOSE GAPS AND GO TARGET THOSE GAPS AND FILL THEM.

THAT WOULD BE FANTASTIC BECAUSE WE UNDERSTAND LEAKAGE.

WE UNDERSTAND WHERE THE MONEY IS LEAKING OUT OF THE CITY AND WHERE WE CAN SHORE UP SOME THINGS AND LET'S GO SPECIFICALLY TARGET THOSE THINGS.

AND SO I THINK THAT'S EXACTLY RIGHT VERSUS GETTING A BUNCH OF STUFF WE DON'T WANT.

AND AS THE STATE CONTINUES TO STRIP AWAY OUR ABILITY TO LIMIT WHAT WE GET, THAT THAT'S A REAL CONCERN FOR ME.

SO SO THANK YOU FOR THAT.

THEN I'LL POINT OUT.

SO THIS IS THE DALLAS BUSINESS JOURNAL AND TO MAYOR TO TO COUNCILMEMBER WATCH POINT IT SAYS HERE.

NOW TALKS ABOUT NEW, NEW DEVELOPMENT AND SAYS NOW 1 BILLION.

NOW 1 BILLION ALMOST FEELS SMALL TO RAISE.

THE RISE OF MEGA PROJECTS.

AND IT TALKS ABOUT JUST FUNDING AND IT TALKS ABOUT SHERMAN AND THE FACT THAT THEY HAVE LANDED $35 BILLION WORTH OF PROJECTS IN THE COMMUNITY THAT HAS 45,000 PEOPLE.

AND SO WHEN YOU GO DIG INTO SHERMAN AND WHAT THEY'VE HAD TO DO JUST TO MAINTAIN WHAT THEY HAVE IN A COMMUNITY THAT HAS NONE OF THE AMENITIES WE HAVE, YOU KNOW, AND NONE OF IT'S NOT MUCH COMPETITION AROUND THERE.

THEY'RE KIND OF A LITTLE BIT AWAY FROM EVERYTHING.

SO I THINK IT'S EXACTLY RIGHT THAT IT'S A START FOR SURE.

BUT WE'VE GOT TO, IN MY ESTIMATION, CONTINUE TO FIND WAYS TO TO STEP UP, TO BE COMPETITIVE WITH WITH OUR PEERS.

AND AND I'LL SAY THIS, I'M GOING TO MASS TRANSIT WAS BROUGHT UP.

OUR MASS TRANSIT ORGANIZATION THAT'S TAKING OUR SALES TAX DOLLARS HAS $70 MILLION SITTING THERE, NOT ACTIVE. AND I THINK THAT IS A KEY CONCERN WHEN WE TALK ABOUT INFRASTRUCTURE.

I ABSOLUTELY AGREE.

LET'S GET OUR MONEY, OUR SALES TAX DOLLARS BACK THAT SO FOR EXAMPLE THAT THE GOOD WORK THAT WAS DONE WITH WINCO WHEN YOU TALK ABOUT THAT SALES TAX INCREASE, A PORTION OF THAT IS SITTING OVER THERE IN DC TAS BANK ACCOUNT DOING NOTHING.

WE COULD PUT THAT TO WORK ON INFRASTRUCTURE PROJECTS TOMORROW.

WE COULD COME UP WITH AN ORDINANCE.

WE COULD PUT PRESSURE ON THAT BOARD TO SAY, HEY, DECIDE HOW MUCH YOUR WHAT YOUR RESERVES NEED TO BE, AND THEN LET'S START GIVING THAT MONEY BACK TO THE CITIZENS OF DENTON AND THOSE OTHER MEMBER CITIES FOR WE CAN GET INFRASTRUCTURE PROJECTS GOING.

SO THAT'S SOMETHING I WOULD HOLISTICALLY SUPPORT AND ADVOCATE FOR STRAIGHT AWAY.

SO GREAT PRESENTATION.

I THINK YOU HAVE DIRECTION.

YOU HAVEN'T WE CLEAR? I DON'T WANT TO STEP IN THOSE WATERS, BUT.

YEAH. GREAT.

THANK YOU VERY MUCH. THANK YOU ALL.

APPRECIATE IT. THAT TAKES US TO ITEM C, WHICH IS ID 2 TO 7 FOUR TO RECEIVE REPORT WHOLE DISCUSSION AND GIVE STAFF DIRECTION REGARDING WATER,

[C. Receive a report, hold a discussion, and give direction regarding the Water, Wastewater (Drainage), Solid Waste and Electric FY 2022-23 Preliminary Budget, Capital Improvement Program, Five-Year Financial Forecast and Rates. [Estimated Presentation/Discussion Time: 1 hour]]

AND AFTER THIS, WE'LL TAKE A SHORT BREAK BEFORE WE GET TO THE NEXT THING.

GOOD AFTERNOON, MAYOR. CITY COUNCIL MEMBERS NICK VINCENT, ASSISTANT DIRECTOR OF FINANCE.

LET ME GET THE PRESENTATION PULLED UP REALLY QUICK.

OK BEST THING ABOUT PRESENTATION TODAY I ONLY HAVE ONE PRESENTATION INSTEAD OF FIVE TO COVER THE UTILITIES, SO I HOPE YOU LOOK FORWARD TO THAT.

WE'LL GET THROUGH IT AS QUICK AS POSSIBLE.

PLEASE LET ME KNOW IF YOU HAVE ANY QUESTIONS AND SAY YOU HAD.

OH, I COULD SKIP TO THE QUESTION SLIDE IF YOU'D LIKE, BUT EVERYBODY MAY WANT A REFRESHER, SO I GO THROUGH IT REALLY QUICK.

SO THIS LOOKS AT THE OVERVIEW OF THE PRESENTATION.

THE OPERATIONAL INFORMATION FOR THE UTILITIES HAVE BEEN TAKEN OUT.

THIS PRESENTATION IS COVERING JUST STRICTLY THE FINANCIALS.

SO WE'LL REVIEW THE FINANCIAL ASSUMPTIONS FOR EACH UTILITY.

WE'LL LOOK AT THE FIVE YEAR FORECAST, AND THEN WE'LL LOOK AT THOSE RATE RECOMMENDATIONS WE DISCUSSED BRIEFLY LAST MEETING.

SO WATER ASSUMPTIONS WON'T GO THROUGH THIS IN GREAT DETAIL.

WE DID LOOK AT IT LAST WEEK, BUT QUICKLY, WE'LL COVER IT WITH, YOU KNOW, RATING INCREASES ARE BEING PROPOSED TO THE WATER UTILITY AND FISCAL YEAR 2023 TO THE UPCOMING FISCAL YEAR.

[01:40:09]

AS A REMINDER, WE ARE SHOWING YOU A FIVE YEAR FORECAST WE WILL LOOK AT TODAY.

WE ARE WE DO HAVE A KIND OF FOR 2 TO 3% INCREASES IN EXPENSES.

WE TALKED A LITTLE BIT ABOUT THAT LAST MEETING.

AND WHEN WE TALK ABOUT THE 100 COAL RANCH BEING ACCOUNTED FOR IN 2024, WE DID GET THAT 6 MILLION GALLONS A DAY WATER TREATMENT PLANT EXPANSION PLAN FOR 2028 AND TO BE FUNDED WITH IMPACT FEE FUNDING.

SO THE FIVE YEAR FORECAST FOR THE WATER UTILITY, THIS IS EXACTLY THE SAME AS YOU SEEN LAST WEEK.

THE ONE THING THAT CHANGED WITH SOME OF THE COLORING AND FORMATTING, SO THE MAJORITY OF THE INFORMATION IS EXACTLY THE SAME.

JUST AS A QUICK REMINDER, WE ARE IN FISCAL YEAR 2022.

YOU CAN SEE THE ADOPTED BUDGET NUMBERS IN THIS COLUMN AND YOU CAN SEE WHAT WE'RE CURRENTLY FORECASTING FOR THE END OF THE FISCAL YEAR.

AS A REMINDER THAT THIS IS NOT BEEN UPDATED FOR THE RECENT WARM WEATHER THAT WE HAVE EXPERIENCED IN THE LAST COUPLE OF MONTHS.

WE WILL CONTINUE TO UPDATE THIS AND UPDATE COUNCIL WITH OUR QUARTERLY FINANCIAL REPORT.

I DID WANT TO POINT THAT OUT.

SO YOU CAN SEE WE WERE PLANNING TO FINISH THE FISCAL YEAR NET INCOME, ABOUT 1.1 MILLION IN 2023.

WE GOT 62.2 MILLION IN REVENUES FOR THE WATER UTILITY, 62.5 MILLION IN EXPENSES.

WE ARE PLANNING TO USE ABOUT 346,000 AND RESERVES.

AND SO WE HAVE SOME BIG COST PARTICIPATION PROJECTS THAT WE TALKED ABOUT LAST MEETING IN THE FIVE YEAR WINDOW.

YOU CAN SEE OUR RESERVE REQUIREMENT DOES STAY OR INDIAN RESERVE DOES STAY ABOVE THE RESERVE REQUIREMENTS FOR THIS FUND.

YOU CAN SEE WHAT THOSE REQUIREMENTS ARE.

THE MINIMUM IS 33%, THE MAXIMUM IS 50%.

SO THE 24.3 THAT WE'RE FORECASTING FOR 2023 DOES FALL WITHIN THAT RANGE.

SO THIS PLOT IS NEW.

SO THESE ARE CONTRACTUAL WHOLESALE AGREEMENTS THAT WE HAVE FOR THE WATER UTILITY.

THESE ARE UPDATED ANNUALLY.

THEY COME FORWARD TO THE PUBLIC UTILITY BOARD AND COUNCIL AS PART OF THE BUDGETING PROCESS.

EACH ONE OF THESE IS DEPENDENT ON THE CONTRACTS THAT WE HAVE IN PLACE WITH THESE ENTITIES.

SO THE FIRST ONE IS THE WHOLESALE RAW WATER SALES.

THIS IS SAID 85% OF THE DALLAS WHOLESALE WATER RATE.

YOU CAN SEE THAT THAT'S GOING TO INCREASE 1.7578900083.

AND THE NEXT ONE WE HAVE IS THE RAW WATER PASSED THROUGH THE LAKE.

CHATMAN THAT RATE WOULD INCREASE TO 0.02997.

BUT AS I SAID EARLIER, NO INCREASES FOR RESIDENTIAL FOR COMMERCIAL CUSTOMERS, FOR WATER VERSUS MAKE SURE I SAID THAT AGAIN, WASTEWATER IS A MULTIPLE SCENARIOS OF RATE INCREASES.

WE TALKED ABOUT THIS LAST MEETING IN 2023.

WE DO NOT HAVE ANY RATE INCREASES PROGRAMED IN FOR THE WASTEWATER UTILITY.

WE DO HAVE SOME STARTING IN 2024 THAT WE TALKED ABOUT LAST MEETING.

WE'LL LOOK AT THOSE ON THE PROFORMA HERE IN JUST A SECOND.

SAME 2% GROWTH IS FORECASTED IN THE WASTEWATER UTILITY, VERY SIMILAR TO WATER STAYING CONSISTENT ACROSS THE UTILITIES.

AND YOU CAN SEE IN THAT TEN YEAR SIP THE CAPITAL IMPROVEMENT PROGRAM, WE DO HAVE THE CONSTRUCTION OF A NEW WASTEWATER TREATMENT PLANT PROGRAMED IN.

WASTE WATER FUNDS.

SO VERY SIMILAR TO WATER.

SAME FORMAT. YOU CAN SEE THE CURRENT BUDGET THAT WE ARE IN HERE IN THIS COLUMN.

SO 2022, WHAT WE'RE FORECASTING FOR THE END OF THE YEAR FOR FISCAL YEAR 2022, YOU CAN SEE WE DO PLAN TO FINISH ABOUT $9.3 MILLION POSITIVE AS WE TALKED ABOUT LAST MEETING.

THE MAJORITY OF THAT IS A COST PARTICIPATION PROJECT THAT WE ARE GOING TO BE CONSTRUCTING NEXT FISCAL YEAR.

SO WE'RE PULLING THAT UP TO THE OPERATING FUND AND ACTUALLY GOING TO EXPENSE IT OUT IN FISCAL YEAR 2023.

SO THAT IS INTENTIONAL FINISH IN THAT YEAR, $9.3 MILLION POSITIVE.

SO MAKE SURE I REMINDED YOU OF THAT IN 2023.

SO THE UPCOMING FISCAL YEAR, YOU CAN SEE WE HAVE 56.3 MILLION OR 56.4 IN REVENUE PLANNED, 64.5 MILLION IN EXPENSES.

SO DRAWING DOWN THAT $8 MILLION NET COST PARTICIPATION WITH THAT CAPITAL PROJECT WE HAD TALKED ABOUT.

SO NO INCREASES.

AS YOU MOVE DOWN THE PAGE A LITTLE BIT, YOU CAN SEE DOWN HERE SHOULD BE A GRAY COLOR YET IS A GREAT COLOR IN YOUR SCREEN.

0% FOR RESIDENTIAL AND COMMERCIAL CUSTOMERS FOR WASTEWATER THIS UPCOMING FISCAL YEAR.

WE DO HAVE SOME PLANNED INCREASES STARTING IN 2024, GOING THROUGH 2026.

AS A REMINDER, THE COUNCIL ONLY ADOPTS ONE YEAR OF RATES.

SO THIS, OF COURSE, THE RATE INCREASE WE'LL LOOK AT AGAIN NEXT YEAR WHEN WE TALK ABOUT THE 2024 BUDGET.

SO IF IT'S NEEDED, WE'LL BRING IT BACK TO YOU.

IF NOT, THEN WE CAN TAKE IT OUT OF THERE INTO RESERVE IN 2023.

WHAT WE'RE FORECASTING FOR THE WASTEWATER UTILITY IS 16.7 MILLION.

YOU CAN SEE THAT NUMBER HERE.

SO IT'S WELL WITHIN AND ACTUALLY ABOVE THE TOP END RESERVE OF 39% FOR THE WASTEWATER UTILITY.

DRAINAGE OR THE DRAINAGE FUND OR DEPARTMENT ACTUALLY ROLLS UP INTO THE WASTEWATER FUND.

SO THESE NUMBERS ARE INCLUDED IN THE PROFORMA THAT YOU JUST SAW.

[01:45:03]

SO TO MAINTAIN OUR DRAINAGE DRAINAGE CANALS IN DIFFERENT AREAS AROUND THE CITY, ABOUT 6.4 MILLION IN EXPENSES.

SO WE DO KEEP $1,000,000 FUND BALANCE IN CASE SOMETHING CATASTROPHIC HAPPENS IN THE DRAINAGE FUND THAT WE CAN RESPOND ACCORDINGLY.

SO PROPOSED WASTEWATER RATE CHANGES.

THESE ARE FOR COST OF SERVICE BASED REASONS.

SO WE ARE LOOKING TO INCREASE SOME D.A.

DIRT. THIS IS BASED ON THE COST OF SAND AND INPUT INTO MAKING THIS PRODUCT.

SO LOOKING TO INCREASE THE PER CUBIC YARD FOR D.A.

DIRT FROM 25 TO 30 IN FISCAL YEAR 2023.

AND THAT IS A CUBIC YARD AND THEN A PER CUBIC FOOT BAG.

SO BAGS MATERIAL, WHICH WE INTRODUCED A COUPLE OF YEARS AGO, INCREASING FROM 4 TO 5.

SO A DOLLAR INCREASE IN THAT MATERIAL.

SOLID WASTE FINANCIAL ASSUMPTIONS.

I KNOW WE TALKED ABOUT A LITTLE BIT ABOUT THE WHOLESALE AGREEMENTS IN OUR LAST MEETING.

WE DO HAVE ANOTHER SLIDE TO TALK ABOUT THIS WITH YOU TODAY AND ANSWER ANY QUESTIONS YOU MAY HAVE.

BUT THE FINANCIALS THAT YOU SEE TODAY DO INCLUDE 4.7 MILLION IN WHOLESALE AGREEMENTS.

THESE ARE YET TO BE APPROVED BY THE PUBLIC UTILITIES BOARD OF CITY COUNCIL.

THEY ARE UP FOR RENEWAL AND THEY WILL COME FORWARD TO YOU IN THE COMING WEEKS FOR YOUR CONSIDERATION.

SO IF THOSE ARE APPROVED, WE'LL LEAVE THEM IN THE FORECAST.

IF THEY ARE NOT APPROVED, WE'LL TAKE THEM OUT AND UPDATE YOU ACCORDINGLY FROM THE FINANCIAL PERSPECTIVE.

BUT WE ARE PROJECTING ABOUT A 2.5 TO 3.5% INCREASE IN REVENUES IN THE SOLID WASTE UTILITY.

SO A LITTLE BIT MORE THAN WATER WASTEWATER.

THE MAJORITY OF THAT IS AN INCREASED TRAFFIC THAT WE'RE SEEING AT THE LANDFILL FACILITY.

WE ARE ASSUMING 100% REVENUE FUNDING OF VEHICLE REPLACEMENT.

SO THE VEHICLES THAT ARE ELIGIBLE TO BE REPLACED NEXT YEAR, REVENUE FUNDING THOSE VEHICLES.

I BELIEVE WE TALKED ABOUT THAT LAST MEETING AND THEN WE DO SEE THAT SIGNIFICANT INCREASE IN OUR GAS AND OIL BUDGET FOR THE SOLID WASTE UTILITY, ABOUT 53%.

SOLID WASTE PERFORMANCE.

SO THE CURRENT BUDGET THAT WE'RE IN 2022, YOU CAN SEE THAT HERE IN THIS COLUMN END OF YEAR ESTIMATE.

SO WE ARE ESTIMATING TO FINISH THE YEAR ABOUT 3.6 MILLION POSITIVE.

WE CONTINUE TO SEE THAT REVENUE COMING INTO THE LANDFILL SIGNIFICANTLY INCREASING.

SO WE ARE FORECASTING A LITTLE BIT ABOVE BUDGET, THE PRELIMINARY 2023 BUDGET.

YOU CAN SEE HERE IN THIS COLUMN, IT'S ABOUT 39.9 MILLION IN REVENUE, ABOUT 42.1 MILLION IN EXPENSES.

SO WE ARE LOOKING TO DRAWDOWN RESERVES, ABOUT 2.2 MILLION.

SO WE TALKED ABOUT LAST TIME, THIS IS INTENTIONAL AS WE CONTINUE TO REVENUE FUNDS, SOME ELIGIBLE PROJECTS PAY FOR THOSE VEHICLES WITH CASH AND THIS FUND IS HEALTHY, THEY DO MAINTAIN A HEALTHY RESERVE.

SO WE DO SEE THAT AS APPROPRIATE.

SO I JUST WANT TO MAKE SURE I POINTED THAT OUT.

MOVING DOWN THE PAGE, YOU CAN SEE DOWN HERE THE ENDING FUND BALANCE ABOUT 8.2 MILLION, WHICH IS WELL WITHIN THE RESERVE OF 14 TO 18%.

SO I THINK IT'S ACTUALLY YEAH.

ABOVE IT AND HAS CUT OFF OF MY SCREEN BUT YEAH, IT'S ABOVE THE RESERVE SO WHOLESALE AGREEMENT.

SO AS I MENTIONED BEFORE, THIS PRO FORMA DOES INCLUDE THE WHOLESALE AGREEMENTS.

THE VERY NEXT SLIDE, I'LL SHOW YOU A PRO FORMA WITHOUT THE WHOLESALE AGREEMENTS.

SO IF COUNCIL WAS NOT TO APPROVE THE WHOLESALE AGREEMENTS OR THE PUBLIC UTILITY BOARD, THIS IS WHAT THE PRO FORMA WOULD LOOK LIKE.

SO WE WANTED TO MAKE SURE WE POINTED THIS OUT AND TALK TO YOU ABOUT IT TODAY SO YOU CAN SEE THE WHOLESALE AGREEMENTS HAVE BEEN REMOVED FROM THIS LINE UP HERE AT THE TOP.

SO WHAT HAVE WE DONE TO OFFSET THAT? THOSE AGREEMENTS EQUATE TO ABOUT A 12.5% INCREASE FOR RESIDENTIAL AND COMMERCIAL CUSTOMERS WITHIN THE CITY OF DENTON.

SO THAT IS WHAT THAT 4 MILLION REPRESENTS THAT YOU SEE IN THOSE WHOLESALE AGREEMENTS.

WE'LL TALK ABOUT THAT A LITTLE BIT MORE ON THE NEXT SLIDE.

BUT WE DID HAVE A QUESTION LAST MEETING.

WE WANT TO MAKE SURE WE ADDRESSED IT THIS MEETING.

OH. SO THIS IS A SUMMARY OF THE WHOLESALE AGREEMENTS.

AND OF COURSE WE HAVE SOME SOLID WAYS PEOPLE HERE THAT CAN DEFINITELY HELP ME ANSWER THE COMPLICATED QUESTIONS, BUT I'LL WALK YOU THROUGH THIS REALLY QUICK.

SO CURRENTLY, WHAT ARE THE CONTRACT AGREEMENTS YOU DO FOR STUDY DIDN'T RESONATE RIGHT? WHAT DOES IT DO FOR THE SOLID WASTE FUND? IT CREATES RATE STABILITY FOR THIS FUND.

IT CREATES A SURETY OF WHAT THOSE WASTE VOLUMES ARE GOING TO BE FOR THESE CUSTOMERS.

WHAT REVENUE CAN WE EXPECT YEAR TO YEAR FROM THESE INDIVIDUAL COMPANIES? SO THE PRELIMINARY BUDGET OF 2023 INCLUDES 4 MILLION IN REVENUE.

IF YOU REMEMBER ON THE OTHER SIDE, THAT WAS A LITTLE BIT MORE ABOUT 4.7.

THAT IS WITH SOME COUNTIES AND SOME CITIES THAT WE'RE STILL WORKING WITH.

WE DO FORECAST THOSE TO ENTER INTO INTERLOCAL AGREEMENTS WITH US TO BRING THAT WASTE TO OUR FACILITY.

BUT THEY'RE NOT SHOWN ON THIS SLIDE.

SO I WANT TO MAKE SURE TO TELL YOU THE DIFFERENCE.

SO CURRENTLY WE HAVE SIX ENTITIES IN THE CURRENT AGREEMENTS THAT ARE SET TO EXPIRE.

THE PROPOSED AGREEMENTS HAVE THREE ENTITIES NOT COUNTING THOSE CITIES OR COUNTIES THAT I HAD MENTIONED.

[01:50:03]

FOR CONFIDENTIALITY REASONS, WE HAVE NOT LISTED THE COMPANIES NAME.

WE HAVE LISTED THEM AS FIRM A THROUGH FIRM F IN THE CURRENT AGREEMENT COLUMN.

IN THE PROPOSED AGREEMENT, YOU CAN SEE WE HAVE FIRM A THROUGH FIRM C, YOU CAN SEE WHAT THE PROPOSED TONNAGE IS TO COME INTO THE LANDFILL.

SO A TOTAL OF 110,000 TONS, THAT WOULD EQUATE TO ABOUT 4 MILLION IN REVENUE.

YOU CAN SEE WHAT THEIR INDIVIDUAL RATE IS PER TON IN THAT AGREEMENT AND THEN WHAT THAT RATE IMPACT WOULD BE IF THEY DID NOT GET APPROVED.

SO FOR EXAMPLE, A FIRM A WAS NOT APPROVED.

IT WOULD EQUATE TO A 6% RATE IMPACT IF ALL THREE FIRMS WERE NOT APPROVED TO BE A 12.5% IMPACT.

SO I JUST WANTED TO MAKE SURE WE ANSWER THAT QUESTION FROM LAST MEETING.

ADDITIONAL RATE CHANGES FOR THE SOLID WASTE FUND.

SO AS A REMINDER, NO INCREASE THIS YEAR FOR RESIDENTIAL OR COMMERCIAL CUSTOMERS.

THESE ARE JUST SOME CLEANUP ITEMS WE'RE LOOKING TO IMPLEMENT THIS YEAR.

SO THE FIRST ONE IS AN RFID REPLACEMENT CARD OF $25.

WE ARE LOOKING TO IMPLEMENT THAT THIS YEAR FOR CUSTOMERS COMING INTO THE LANDFILL ON A FREQUENT BASIS, WE ARE LOOKING TO CHANGE OR INCREASE THE UNSECURE LOAD FEE FROM 20 TO 25.

SO CURRENTLY WHEN A CUSTOMER COMES IN TO THE LANDFILL FACILITY, THEIR LOAD THAT THEY'RE CARRYING BEHIND THEIR VEHICLE, IF IT'S NOT TOPPED OR COVERED APPROPRIATELY, WE DO CHARGE THEM A FEE FOR THAT.

THE CUSTOMER IS ISSUED A BUNGEE BUNGEE CORDS AND A TARP TO COVER THAT LOAD UP ON THE FIRST OCCURRENCE.

AND THEY'D BE CHARGED $25 IF APPROVED BY COUNCIL THIS NEXT YEAR.

THE SUBSEQUENT UNSECURED LOAD FEE, WE CURRENTLY DO NOT HAVE A SUBSEQUENT FEE.

WE'RE LOOKING TO IMPLEMENT THAT THIS YEAR AND THAT FEE WOULD BE $30.

SO THEY COME IN THE VERY NEXT DAY WITH THAT LOAD UNSECURED, AGAIN, THEY'D BE ASSESSED A FEE OF $30, THE WAIT TICKET RATE.

SO WAIT TICKET.

SO ON OCCASIONS WE HAVE PEOPLE COME IN TO THE LANDFILL FACILITY.

YOU WANT TO USE THE CERTIFIED SKILLS TO WEIGH THEIR VEHICLES.

THIS FEE WOULD BE IN PLACE TO CHARGE FOR THAT.

THIS WOULD BE FOR NON CITIZEN VEHICLES.

SO IF WE HAD A SIT IN VEHICLE WE WOULD NOT CHARGE FOR THIS SERVICE THE LIVE LOAD FEE.

SO A MINIMUM OF 15 MINUTE CHARGE.

THIS IS FOR A TRUCK OPERATOR TO WAIT WHILE A CUSTOMER LOADS A CONTAINER THAT WOULD BE BILLED AT $75 AN HOUR AND THEN IT BE ON 15 MINUTE INCREMENTS.

CONSTRUCTION DEMOLITION.

SO THIS FEE CURRENTLY DOES NOT EXIST.

THIS HELPS US ALIGN WITH THAT SOLID WASTE STRATEGIC PLAN THAT COUNCIL APPROVED.

A MEETING OR TWO MEETINGS AGO ARE BELIEVED TO HELP DIVERT THIS MATERIAL.

SO LOOKING TO IMPLEMENT A RATE OF $65 A TON FOR THAT, WE ALSO LOOKING FOR A SHINGLES RATE OF $125 A TON.

CURRENTLY, THAT MATERIAL IS COMING IN AT A LOWER RATE THAT IS POSTED AT THE LANDFILL FACILITY.

SO A LITTLE BIT HARDER TO HANDLE THAT MATERIALS.

WE ARE LOOKING TO INCREASE THAT RATE TO $125.

AND THEN WE'LL GET INTO ELECTRIC.

CASSIE'S HERE, OF COURSE, SHE PRESENTED LAST WEEK.

SO IF YOU HAVE REALLY COMPLICATED QUESTIONS, I'LL CALL HER UP HERE.

SO THE FORECAST.

SO IS IT BASED ON MEGAWATT HOURS? YOU CAN SEE THAT AT THE VERY TOP OF THE SLIDE.

THE REVENUES ARE 2 TO 3% INCREASES.

I KNOW HAD MENTIONED THIS LAST MEETING.

JUST MAKE SURE I SAY IT REALLY QUICKLY.

THE RETURN ON INVESTMENT REMAINS AT 6% CURRENTLY.

SO THE FINANCIALS THAT YOU SEE DOES ANTICIPATE THAT RETURN ON INVESTMENT STAYING AT 6%.

THE TECH SUBSIDIES FOR RETIREMENT SYSTEM OR TMP SE IS INCREASING THE CONTRIBUTION FROM 17.65 TO 18.15 TO KEEP THAT FUND WHOLE.

AND WE DID REDUCE THE CAPITAL BUDGET FOR ONE PARTICULAR PROJECT FOR A BACKUP DATA CENTER.

I BELIEVE WE DISCUSSED LAST MEETING COUNCILMEMBER BECK.

LET'S MAKE SURE THAT IT REALLY QUICK.

AND THEN YOU CAN SEE WE HAVE TOTAL REQUESTS FOR SUPPLEMENTAL PACKAGES AT 1.8 MILLION.

THOSE INCLUDE 11 FTE.

SO I DO BELIEVE DM SPOKE TO THOSE LAST TIME.

THE ELECTRIC PRO FORMA.

SO AS THE REST OF UTILITIES WOULD HAVE A TEN YEAR FORECAST, WE'RE LOOKING AT A FIVE YEAR FORECAST HERE.

YOU CAN SEE THE ADOPTED 2022 BUDGET THAT WE'RE CURRENTLY IN HERE IN THIS COLUMN.

2022 ESTIMATE, AS WE TALKED ABOUT LAST MEETING, THIS IS NOT BEEN UPDATED BASED ON THE RECENT HOT WEATHER THAT WE HAVE SEEN OUTSIDE.

SO WE CAN CONTINUE TO UPDATE COUNSEL AS WE GO THROUGH THE SUMMER MONTHS.

BUT THIS PRO FORMA IS CURRENTLY NOT BEEN UPDATED.

SO AT THE TIME THIS WAS PUT TOGETHER, WE WERE FORECASTING ABOUT 17.5 MILLION IN NET INCOME FOR THE ELECTRIC UTILITY MOVING INTO 2023.

YOU CAN SEE WE HAVE 399 MILLION IN REVENUE PLANNED FOR THIS FUND, 415,000 IN EXPENSES.

IT'S ABOUT 16,000 IN RESERVE USAGE.

THIS DOES INCLUDE THE NEW POSITIONS THAT I MENTIONED EARLIER.

THIS DOES INCLUDE THE DATA CENTER REVENUE.

I THINK COUNCILMAN MAGUIRE TO ASK ABOUT EARLIER.

IT IS INCLUDED EACH OF THE YEARS.

SO THIS IS A NET PRO FORMA.

[01:55:01]

AND THERE WAS A QUESTION EARLIER ABOUT THE FUTURE YEARS AND IT IS CURRENTLY SHOWING A RATE INCREASE IN FUTURE YEARS.

QUITE A LOT OF THAT. OF COURSE, A LOT OF THAT IS DEPENDENT ON PURCHASE POWER, WHAT THOSE ENERGY MARKETS DO IN THE FUTURE.

WE ARE WORKING ON A COST OF SERVICE STUDY FOR THE ELECTRIC UTILITY.

WE'RE HOPING TO HAVE THIS COMPLETED WITHIN THE NEXT SEVERAL MONTHS AND BRINGING THAT BACK FORWARD TO YOU FOR A RATE DISCUSSION FOR ELECTRIC.

AND THEN THESE ARE THE NEXT STEPS.

SO AUGUST THE SIXTH, WHICH IS NOT THE SATURDAY COMING UP THE NEXT SATURDAY, WE'LL HAVE THE CITY COUNCIL BUDGET WORK SESSION AND THEN ULTIMATELY ADOPT THE BUDGET ON SEPTEMBER 27.

AND I WILL STAND FOR QUESTIONS.

QUESTIONS FOR STAFF.

COUNCILMAN. WHAT'S. THANK YOU.

COUPLE QUESTIONS.

BACK ON THE SOLID WASTE.

HAVE WE DONE A PROJECTION OF IF WE DID NOT HAVE THE AGREEMENTS, THE SOLID WASTE AGREEMENTS, I THINK IT WAS LIKE $4 MILLION.

YOU SHOW THAT IN THE PROFORMA.

WE'VE GOT TO RAISE RATES 12% TO MAKE THAT UP.

HAVE WE DONE A PROJECTION ON IF WE DON'T HAVE THAT AND WE DON'T HAVE THAT DEBRIS COMING INTO THE LANDFILL, DOES THAT EXTEND THE LIFE OF THE LANDFILL? ANY AND HOW ARE WE ABLE TO MONETIZE THAT EXTENSION? I THINK WE WENT THROUGH THIS WHOLE DISCUSSION, I THINK THREE OR FOUR OR FIVE YEARS AGO WHEN WE HAD SOME OF THESE CONTRACTS COMING UP.

THAT'S ONE I DON'T KNOW IF I NEED TO HAVE THAT ANSWERED RIGHT NOW, BUT JUST SHINGLES.

I'M PRESUMING YOU'RE TALKING ABOUT ASPHALT SHINGLES PRIMARILY.

I BELIEVE EUGENE COULD SPEAK TO IT.

I BELIEVE IT'S ASPHALT SHINGLES.

THAT IS CORRECT. HOW ARE THOSE? I MEAN, WHAT IS THE DECOMP? I MEAN, HOW DO THOSE DECOMPOSE? I MEAN, IS THAT MORE OF AN ENVIRONMENTAL ISSUE THAN JUST YOUR STANDARD CONSTRUCTION DEBRIS AND THINGS SUCH AS THAT? YES. GOOD AFTERNOON, MA'AM.

MAYOR PRO TEM COUNCIL MEMBERS.

BE GLAD TO ANSWER THAT QUESTION SO IT HAS NO DECOMP VALUE AT ALL.

IN FACT, SOMETIMES IT CAN BE HAZARDOUS.

SO WHEN WE DEPOSIT MATERIALS INTO THE LANDFILL, I MEAN, I GUESS THE END RESULT IS, YOU KNOW, THE METHANE.

THE METHANE IS SO VALUABLE AT THE END, BUT THOSE SHINGLES ARE HARD TO DEAL WITH.

THEY JUST THEY JUST LAY THERE.

THEY DON'T DO ANYTHING.

SO SO THAT'S MY THAT'S MY QUESTION IS, FIRST OF ALL, WHAT'S THE RATE WE'RE GETTING ON THOSE TODAY THAT WE'RE PROPOSING TO GO TO? 125 DO WE KNOW WHAT IT IS PER TON RIGHT NOW? 40 I'M SORRY, I HAVE TAMMY KLAUSEN HERE, ASSISTANT DIRECTOR.

IS THE GATE RATE REGULAR GATE RATE? I REALLY THINK WE NEED TO THINK ABOUT IS THAT EVEN SOMETHING WE WANT TO KEEP TAKING? I MEAN, BECAUSE ESPECIALLY WHEN THAT ONE LANDFILL SHUTS DOWN OR IF IT'S IN THE PROCESS OF SHUTTING DOWN THOSE THINGS, THEY DON'T AND THEY'VE GOT ASPHALT AND THEY GOT ALL IN THEM. RIGHT.

AND SO THAT MAY BE A POLICY DISCUSSION WE MIGHT NEED TO HAVE BECAUSE I'M NOT SURE THAT THE REVENUE I MEAN OR YOU JACK IT UP TO $500 OR 1000 A TON, BUT IT JUST SEEMS LIKE IT'S IT'S MORE OF A HASSLE AND MORE OF A POTENTIAL PROBLEM THAN THE REVENUE THAT WE'RE GETTING.

SO THOSE ARE JUST MY THOUGHTS ON THAT.

GO AHEAD. WELL, AND TO THAT POINT, OUR COMPREHENSIVE STRATEGY WILL IDENTIFY SOME COMPANIES HERE LOCALLY WHO CAN HOPEFULLY CAN COME TO DENTON AND TAKE SPECIFICALLY SHINGLES AND OTHER AND THOSE OTHER MATERIALS THAT WE WANT TO DIVERT.

OK. ALL RIGHT.

DIDN'T WE HAVE A SHINGLE MOUNTAIN? I THOUGHT THERE WAS ONE COAST TO DENTON OR SOMETHING LIKE THAT, BUT THERE'S CERTAINLY ONE IN DALLAS.

BUT I THOUGHT THERE WAS ONE ALSO.

SO I JUST THINK WE MIGHT NEED TO HAVE A LITTLE BIT MORE DISCUSSION AROUND THAT ON THE.

APPRECIATE THAT. THOSE QUESTIONS ANSWERED ON THE SOLID WASTE.

YES, LET'S SEE.

COUNCIL MEMBER WAS REALLY QUICK ON THE SHINGLE REVENUE.

WHAT DOES THAT EQUATE TO A YEAR.

SO ABOUT 900,000.

SO THAT WASTE STREAM COMING INTO THE FACILITIES, ABOUT 900,000 ANNUALLY AND THAT'S AT THE CURRENT $40 A TON.

THAT WOULD BE AT THE 100, 125 OR WHATEVER.

LET ME SEE WHAT THAT IS. JUST HANG ON JUST A SECOND.

125 A TON.

THAT'D BE 125 A TON.

YEAH. I THINK WE NEED TO REALLY START THINKING ABOUT I MEAN, YEAH, IF WE DON'T HAVE THAT REVENUE THEN IT MAY BE A RATE INCREASE, BUT YET IN THE END, THE LONG RUN WE STILL HAVE TO DEAL WITH THOSE THINGS IN OUR LANDFILL THAT, AS WAS SAID, ARE JUST LAYING THERE AND NOT DECOMPOSING AT ALL.

THEY'RE JUST TAKING UP SPACE.

SO IN OTHER WORDS, WE DON'T EVEN GET TO HAVE THEIR DECOMPOSITION SPACE RECLAIMED IN THAT REGARD ON THE ELECTRICAL.

LET'S SEE. SO YOU'RE INCLUDING THE DATA CENTER REVENUE.

HOW ACCURATE IS THAT PROJECTION BASED UPON WHERE THEY ARE RIGHT NOW? I MEAN, THAT'S I MEAN, BECAUSE YOU SHOW IT DECREASING IN THE OUT YEARS.

CORRECT. HOW MANY HOW MANY MEGAWATTS DOES THAT REPRESENT THAT THEY WOULD BE GENERATING IN AND OF THEMSELVES? DO WE KNOW? YOU KNOW, I DON'T OFF THE TOP OF MY TOP OF MY HAND HERE, ACTUALLY, CASSIE MAY HAVE IT AS YOU'RE WALKING UP HERE.

PERFECT. LET ME LET ME LET HER ANSWER THAT QUESTION.

SURE. SO THEY ARE OPERATIONAL, WHICH IS 22 MEGAWATTS.

[02:00:04]

AND THEN PHASE THREE IS SUPPOSED TO BE OPERATIONAL BY THE END OF JANUARY 2023, WHICH IS THE ADDITIONAL 150 MEGAWATT HOURS.

OKAY. ALL RIGHT. SO THAT'S IF THOSE DON'T MATERIALIZE TO THE EXTENT THAT THEY ARE, THAT'S GOING TO BE A PRETTY BIG HIT.

I MEAN, IS THAT. WHICH IS RIGHT.

THAT THAT'S ONE OF THE REASONS WE'RE CONTEMPLATING NOT BRINGING ALL OF THE $14 MILLION OF ROI AND FRANCHISE FEES INTO THE GENERAL FUND LIKE WE TALKED ABOUT ON THE PREVIOUS ITEM, ALLOCATING THOSE TO KIND OF MORE ONE TIME COSTS.

SO NO, I UNDERSTAND THOSE.

I'M TALKING ABOUT THE REVENUE FROM THE DATA CENTER.

I'M TALKING ABOUT THE DMS REVENUE OF $150 MILLION, WHICH IS ONE AND A HALF TIMES WHAT THE GENERAL DM CUSTOMERS PRODUCE.

SO. RIGHT. WELL, I THINK THE OTHER THING TO NOTE IS THERE'S OFFSETTING EXPENSES TO SO THOSE WON'T BE REALIZED IN THE FUND.

THAT'S NOT THE THE NET REVENUE.

I THINK THE NET REVENUE TO THE FUND IS ONLY ABOUT 7 MILLION.

SO YOU'VE GOT 127 MILLION OF EXPENSES ACCORDING TO PURCHASE POWER DATA CENTER.

THAT IS THE DATA CENTER. RIGHT.

SO THAT'S 127.

OKAY. ALL RIGHT. JUST I MEAN, THAT'S THAT'S A BIG THAT'S BIG MONEY.

AND THAT CAN BE A BIG BUDGET BUSTER, DEPENDING ON HOW IT GOES.

AND I UNDERSTAND THE NET EFFECT, BUT I JUST WANT TO MAKE SURE THAT I UNDERSTOOD THAT.

THAT'S ALL I HAVE. THANK YOU.

ANY OTHER QUESTIONS? PRO TEM? THANK YOU, MR. MAYOR. SO ON WAS I SEEING ON ON WASTEWATER THAT NOT NOT NEXT YEAR BUT IN 24 WERE PROJECTING THREE YEARS OF 3% INCREASES. AM I READING THAT CORRECTLY? THAT IS CORRECT. COUNCIL MEMBER.

SO STARTING IN FISCAL YEAR 24, BE 3%, 3% AND 3%.

SO 24 THROUGH 26.

OKAY. AND I JUST WANT TO MAKE SURE I WAS READING THAT CORRECTLY.

AND THEN ON THE THE THE DYNO DIRT.

ARE WE ARE WE RUNNING OUT? I MEAN, AS WE PRODUCE WHEN WE TAKE OUR OUR ORGANIC MATERIAL AND WE COMBINE IT WITH THE BIOSOLIDS AND WHATNOT, THE VARIOUS FLAVORS OF DNA THAT WE HAVE, ARE WE RUNNING OUT OF THAT? IF WE HAVE SURPLUSES, IT WOULD IT WOULD SEEM THAT THE GREATER BENEFIT IS GETTING IT OUT OF THE SYSTEM AND DIVERTING IT.

AND THAT IS GOING TO BE DISINCENTIVIZED BY INCREASING THE COSTS.

EVEN THOUGH I UNDERSTAND YOUR EXPLANATION WAS THAT IT COSTS MORE TO GENERATE IT.

BUT IF THE ULTIMATE BETTER GOOD FOR DENTON IS GETTING IT OUT OF THE SYSTEM AND DIVERTING IT, MAYBE THAT'S WORTH A LITTLE COST AND KEEPING THE KIND OF CUSTOMERS BUYING IT BY AS MUCH AS POSSIBLE.

BUT NOT IF WE'RE SELLING IT ALL RIGHT.

NO, I TOTALLY UNDERSTAND.

COUNCILOR BECK, I DON'T. WELL, ACTUALLY, STEVEN MAY BE ABLE TO SPEAK TO THAT QUESTION.

I SEE. HE WALKED IN.

STEVEN GAY DIRECTOR WATER UTILITIES DON'T UNDERSTAND THE CORRECT THE QUESTION CORRECTLY THAT YOU'RE ASKING IF WE'RE RUNNING OUT OF ORDER.

YEAH. IF EVERY CYCLE WE'RE WE'RE CONTINUOUSLY RUNNING OUT OF DINO PRODUCTS SUCH THAT THAT SAYS DEMAND IS SUFFICIENTLY HIGH THAT WE CAN RAISE THE RATES BUT IF WE HAVE SURPLUSES, THEN WE DON'T WANT TO RAISE THE RATES BECAUSE WE WANTED TO DIVERT IT.

NO, WE'RE WE'RE ACTUALLY WE'RE RIGHT ON TRACK.

SO WE HAVE WE HAVE PLENTY WE HAVE PLENTY OF SUPPLY, BUT WE'RE SELLING IT.

SO IF THAT ANSWERS YOUR QUESTION.

YES. SO WE WE ARE WE WE HAVE SURPLUS.

YES, WE HAVE OUR COSTS ARE GOING UP BECAUSE WE HAVE TO MAKE MORE BECAUSE IT'S SO POPULAR, WE'RE HAVING TO MAKE MORE ORDER.

AND SO THE PRICE OF THE SAND THAT WE MIX WITH IT IS ESCALATING.

AND SO THAT'S WHAT'S THAT'S AFFECTING OUR COSTS.

SO BUT THERE'S SUFFICIENT DEMAND THAT THAT WE WON'T DISINCENTIVIZE DIVERSION BY INCREASING THE COST.

THAT IS CORRECT. OKAY, GREAT.

THAT'S GREAT. APPRECIATE THAT.

AND THEN THEN MY MY MY SECOND QUESTION IS ON ON SOLID WASTE.

AND SO ARE THE THE COSTS.

IT SEEMED LIKE THE ALL THOSE THOSE ADDITIONAL COSTS THAT YOU HAD ON THE TABLE, THOSE ARE ACROSS THE BOARD.

IT DOESN'T MATTER WHETHER YOU'RE A RESIDENTIAL CUSTOMER, A COMMERCIAL CUSTOMER FOR THE SMALL, YOU HAD VARIOUS FEES.

LET ME SEE IF I CAN FLIP BACK TO IT.

YEAH. THE PROPOSED SOLID WASTE RATE CHANGES.

SO FOR GENERAL HOUSEHOLD SOLID WASTE, WE'RE NOT CHANGING RATES.

YOU SAID THAT A COUPLE OF TIMES.

THAT'S CORRECT. BUT THEN FOR THE OTHER FEES THAT THAT'S ACROSS THE BOARD FOR WHETHER YOU'RE A RESIDENTIAL COMMERCIAL, ALL THOSE OTHER PROPOSED CHANGES ARE ARE CROSS-CUTTING. YEAH, THAT'S CORRECT.

THESE FEES WILL BE CHARGED TO THE LANDFILL FACILITY EXCEPT WITH THE LIVE LOAD FEE.

[02:05:03]

SO THAT MAY OR MAY NOT BE A CITY, DIDN'T RESIDENT IT MAY BE SOMEONE FROM A SURROUNDING CITY.

AND DO WE HAVE ANY DISCOUNTS FOR THE FIRST COUPLE OF LOADS FOR RESIDENTS THAT I'M NOT AWARE OF? NO, I DON'T BELIEVE SO.

IT DOESN'T MATTER IF YOU BRING IN ONE OR TEN, IT'S STILL THE SAME RATE APPLIES.

OKAY. ALL RIGHT.

THANK YOU. THAT'S ALL MY QUESTIONS.

THANK YOU, MR. MAYOR. THANK YOU.

ANY OTHER QUESTIONS FOR STAFF? NONE. I HAVE A COUPLE QUESTIONS.

AND THIS IS JUST A REFRESHER BECAUSE I DON'T KNOW THAT PARDON ME, EVERYONE TRACKS ALONG AND I THINK IT'S IMPORTANT THAT WE KIND OF HAVE A RECORD WHO COULD BEST SPEAK FROM SOLID WASTE ON THE EFFORTS WE TOOK TO THAT ENDED UP PUTTING US IN THE HOLE.

SO THE CONTRACTS DUG US OUT OF THE HOLE.

THAT'S THE SUGARY DRINKS, THE, YOU KNOW, FLAVOR, NOT FLAVOR BACK AND FORTH.

SO WE DID A LOT OF STUFF, RIGHT, TRYING TO BE FORWARD THINKING THAT DIDN'T PAN OUT, THAT THEN PUT US IN THE HOLE FINANCIALLY, WHO CAN GIVE US KIND OF A, YOU KNOW, A SNAPSHOT OF OF THAT? BECAUSE THAT THAT'S WHERE THESE CONTRACTS CAME INTO PLAY.

SO I JUST KIND OF WANT TO HAVE A MOMENT IN TIME WHERE WE KIND OF UNDERSTAND HOW WE GOT HERE, JUST IN CASE SOMEONE'S NOT FULLY UP TO SPEED, BECAUSE WE HAVE BEEN TRYING TO BE FORWARD THINKING AND THERE'S A COUPLE OF TIMES WHERE IT GOT US.

NO, I THINK THAT'S A GREAT QUESTION.

AND EUGENE COULD SPEAK TO THE OPERATIONAL PART OF IT.

I THINK FROM THE FINANCIAL PERSPECTIVE, THERE ARE SEVERAL THINGS THAT SOLID WASTE UTILITY HAVE DONE OVER THE LAST SEVERAL YEARS.

VERY SIMILAR TO WATER WASTEWATER.

RIGHT. IT'S LOOKING AT HOW WE FUND ASSETS.

IT'S BEING COST CONTAINING COST, REDUCING COST.

OR WE CAN I MEAN, IT'S IT'S CASH FUNDING, VEHICLE REPLACEMENTS WHEN WE HAVE THE OPPORTUNITY TO DO THAT INSTEAD OF DEBT FUNDING IT SO THAT DEBT SERVICES CONTINUE TO COME DOWN. I THINK TO YOUR POINT, YOU KNOW, THREE OR FOUR YEARS AGO WHEN WE WERE TALKING ABOUT THE SOLID WASTE FUND, THEIR DEBT SERVICE WAS EXTREMELY HIGH.

AND THEN WE'VE BROUGHT IT DOWN TO A THIRD OR HALF OF WHAT IT WAS.

AND I THINK THOSE THINGS ARE SOME OF THE THINGS YOU'RE ALLUDING TO.

BUT LET ME LET EUGENE TALK ABOUT THE OPERATIONAL SIDE OF IT.

BUT I THINK FROM THE FINANCIAL PERSPECTIVE THAT.

YEAH, NO, THAT'S A GOOD POINT.

THANK YOU. EUGENE MCKINNON SOLID WASTE.

I THINK SOME OF THE THINGS THAT NICK SPOKE TO KIND OF KIND OF TRANSFER TO THE OPERATIONAL SIDE AS WELL.

YOU KNOW, I KIND OF THINK I'VE USED THE ANALOGY WITH RYAN SEVERAL TIMES THAT, YOU KNOW, AT SOME POINT WE WERE BLEEDING AND HE NEEDED MAJOR SURGERY.

RIGHT. WE HAD THE SURGERY GOT HELD UP.

RIGHT. SO NOW WE MOVE FORWARD.

SO NOW THAT WE'RE MOVING FORWARD, THAT'S WHY THE CONTRACT'S A LITTLE BIT DIFFERENT NOW.

AND THEN WHEN WE SAY THAT DIVERSION IS ALWAYS IT'S THE BIG CONVERSATION NOW.

SO NOW THAT WE'RE STABILIZED, INSTEAD OF HAVING ENCOURAGING MORE TO COME IN, YOU KIND OF WE STABILIZE.

SO WE DON'T NEED AS MUCH BECAUSE THE VERSION, AGAIN, WE TALK TO THE SHE TALKED ABOUT THE SHINGLES AND THE C AND D AND DIFFERENT THINGS, YOU KNOW.

SO THE VERSION TO ME IS LIKE A ROAD YOU'RE GOING DOWN, RIGHT? I'M HEADING DOWN THIS ROAD, BUT I WANT TO DIVERT.

I WANT TO GO THIS WAY, RIGHT? LIKE A TRAFFIC LIKE A TRAFFIC DETOUR.

OKAY, GO THIS WAY.

INSTEAD OF OTHER MATERIAL WE WANT GOING TO THE RIGHT INSTEAD OF COMING STRAIGHT INTO THE LANDFILL.

BUT IT WAS A WHILE BACK THAT WE TRY TO GET AS MUCH AS WE CAN FOR THE REVENUE RIGHT TO GET STABILIZED.

I THINK NOW THAT WE ARE STABILIZED, WE'RE IN GOOD YOU KNOW, THAT HEART RATE IS GOOD NOW.

NOW IT'S TIME TO LOOK BEYOND IT.

HOW DO WE GET THE PATIENT HEALTHIER? I EAT THE LANDFILL.

YEAH. NO, BECAUSE.

YEAH. SO YOU HAD THE I THINK AT ONE POINT THE CONSULTANT CAME IN TO YOUR POINT ABOUT THE OPERATIONS AS CONSULTANT CAME IN AND SAID, HEY, HEAVIER TRUCKS, RUN THEM LESS, LET PEOPLE DUMP AND THEN RUN IT OVER.

RIGHT. I MEAN, IT'S SO THAT'S KIND OF THAT GETTING HEALTHY PROCESS IS THAT I'M TRACKING WITH YOU.

ABSOLUTELY. OKAY. AND THE PROPER EQUIPMENT IS SO VITAL TO TO THE LANDFILL BECAUSE YOU CAN HAVE A VEHICLE THAT'S TOO SMALL OR NOT NOT NOT SPEC FOR OUR LANDFILL.

WELL, ON THE COMPASSION, IT DOESN'T GIVE YOU AS MUCH.

WE WANT TO BE ABLE TO PACK AS MUCH INTO A CERTAIN AREA AS POSSIBLE THAT THAT GIVES US A LONGER LIFE.

GOT IT. OKAY. THANK YOU.

VERY HELPFUL. YES. AND THEN.

NOT FOR THIS BUDGET CYCLE, BUT FOR A FUNCTION.

I THINK GOING FORWARD, I'D LIKE TO TO EXPLORE SO THAT YOU MENTION THE TARP AND I'LL FOLLOW UP WITH YOU, GET MORE.

BUT I WONDER IF THERE'S A WAY IF SOMEONE BECAUSE I THINK FOR THE COMING YEAR I AGREE WITH STAFF'S RECOMMENDATION THAT IF YOU DON'T HAVE A TARP, THEN YOU HAVE TO PAY ANOTHER 30 BUCKS OR WHATEVER.

I'M TRACKING WITH YOU THERE, I'M ASSUMING, SO THAT TRASH DOESN'T GO EVERYWHERE AND WE HAVE TO SPEND TIME, ENERGY CLEANING IT BACK UP.

BUT I'D LIKE TO THEN ALSO SEE IF THERE'S AN OPPORTUNITY, SAME WAY TO MAYBE CAPTURE REVENUE AGAIN.

IT'S NOT ENOUGH TIME FOR THIS YEAR, BUT THE SAME WAY TO CAPTURE THAT REVENUE OR TO CHANGE THAT HABIT.

BUT MAYBE GIVEN THEM OPTION, EITHER PULL IT OFF TO THE SIDE I THINK WOULD WOULD CAUSE ISSUES, RIGHT.

BACKING PEOPLE UP AS THEY TRY TO COVER IT, YOU KNOW, OR BORROW A TARP OR PAY THEM LOAN THEM ONE AT A LOW, LOW FEE.

BUT I THINK MAYBE IF THERE IS AN OPEN ROLL OFF CONTAINER OR SOMETHING THAT SAYS YOU CAN, YOU KNOW, AND I NOTICE SAFETY CONCERNS,

[02:10:05]

NEXT YEAR WOULD LIKE TO HEAR WHAT ELSE WE COULD DO, JUST IN CASE SOMEONE IS IGNORANT TO THE RULES AND THEY SHOW UP AND HAVE BOUGHT A TARP LAST TIME I JUST FORGOT IT. OKAY, WELL, YOU CAN PAY INSTEAD OF 30.

YOU CAN PAY 15. AND HERE'S OPTION B OR SOMETHING.

YOU KNOW, JUST FROM A CUSTOMER SERVICE STANDPOINT, I COULD SEE THAT BEING VALUABLE, BUT I ABSOLUTELY AM SENSITIVE TO WHAT WE'RE TRYING TO DO AND I SUPPORT THAT THIS YEAR.

BUT JUST KIND OF LOOKING FORWARD, MAYBE THERE ARE SOME OTHER OPTIONS WE CAN DO SO THAT.

BUT THANK YOU FOR THAT. AND THEN WHAT IS YOUR CAN YOU JUST GIVE ME A SHORT UNDERSTANDING OF HOW YOU MANAGE AGAINST ILLEGAL DUMPING? WHAT'S THAT? HOW DO YOU MANAGE THAT DELTA OR TRY TO CONTROL AGAINST THAT? AND HERE'S WHERE I'M GOING WITH THAT.

I AGREE WITH COUNCIL MEMBER WHAT'S I THINK HE'S SPOT ON.

I DID THE MATH. I DIDN'T KNOW THERE'S 200 FOR THOSE THAT THERE'S A LOT OF PEOPLE WHO ALREADY KNEW THAT.

BUT THERE'S £200 IN A TON.

IS THAT RIGHT? I'M CLOSE.

2000. 2000? YEAH, 2000.

I'M SORRY. MR. ZERO. YEAH.

SO SO THAT'S ABOUT $0.06 PER POUND FOR A SINGLE AND I DON'T KNOW HOW MUCH A SINGLE COST, BUT TO ME THAT'S A LITTLE LOW.

I KNOW IT'S HIGH, RIGHT.

BUT BUT FOR ME IT'S, I DON'T WANT THEM EITHER.

RIGHT. AND SO ESPECIALLY UNDERSTANDING THAT THEY'RE JUST GOING TO SIT THERE.

AND SO BUT YOU HAVE TO WEIGH THAT AGAINST IF YOU GET TOO HIGH, I'M ASSUMING YOU RUN FEAR OF PEOPLE HIDING IT IN DIRT OR DUMPING IT IN A DITCH OR SO.

CAN YOU GIVE ME YOUR PHILOSOPHY ON WHAT'S THE WASTE MANAGEMENT KIND OF UNDERSTANDING OF HOW ARE WE GOING TO CURB OR HOW DO WE WEIGH AGAINST OR WORK AGAINST ILLEGAL DUMPING? IS THERE ANY AND FROM SALAZAR'S PERSPECTIVE, WE DON'T MANAGE THAT DIRECTLY.

YEAH, THAT'S KIND OF DONE THROUGH OUR PARKS AND RECS, BUT AND THERE'S A THIRD PARTY WHO COLLECTS IT WHEN THERE'S AN ILLEGAL DUMPING PILE IDENTIFIED, YOU KNOW, BUT WHAT I WILL SAY THIS THOUGH, ANY TIME YOU START KIND OF JUST IN POLICY AND THINGS LIKE THAT, SOMETIMES IF YOU'RE NOT CAREFUL, THESE ACTIVITIES, ILLEGAL DUMPING, THEY'RE GOING TO HAPPEN MORE AND MORE. SO I THINK THE KIND OF DECISIONS ARE GOING TO KIND OF GO HAND IN HAND.

I CAN'T SPEAK FROM THE PARKING REC SIDE AS FAR AS IN DETAIL.

SOMEONE'S HERE.

YEAH, I CAN.

WELL AND NOT EVEN THAT JUST EXACTLY WHAT YOU TALKED ABOUT KIND OF AND SO ON.

CITY MANAGER, YOU CORRECT ME WRONG, BUT THAT'S EXACTLY WHAT I'M SAYING.

HOW DO YOU KNOW WHERE? WHAT'S THAT PUSH AND PULL, RIGHT? WHAT'S THAT? HEY, LET'S PRICE IT.

RIGHT. BUT IF WE PRICE IT WRONG, PEOPLE ARE OK.

I'M JUST GOING TO THROW IT IN THE DITCH OVER HERE.

SO A COUPLE OF THINGS WE'VE HAD WE HAD AN INCREASE AT ONE TIME OF ILLEGAL DUMPING IN SPECIFIC SPOTS.

A LOT OF IT IS IN A VERY SECLUDED AREA OR SOME PLACE PEOPLE DON'T THINK ANYONE'S GOING TO SEE.

SO WE'VE BEEN VERY CREATIVE IN OUR WAYS OF IDENTIFYING PEOPLE BY PUTTING GAME CAMERAS.

AND OF COURSE, I'M GIVING SECRETS AWAY.

BUT BUT WE PUT GAME CAMERAS IN HIDDEN SPOTS AND WE'RE ABLE TO FIND OUT WHO THEY ARE THROUGH LICENSE PLATES AND OTHER THINGS.

IT HAS HELPED AND ASSISTED US QUITE A BIT, BUT THERE WILL ALWAYS BE EVEN PEOPLE LEAVING COUCHES, WASHER DRYERS ON THE SIDE OF THE ROAD.

EVEN SO, WE HAVE TO BE CREATIVE AT OUR WASTE TO PICK IT UP NUMBER ONE, WHICH IS MOST IMPORTANT.

BUT TWO, WE DO PUT CAMERAS UP OR FIGURE OUT HOW TO TO CATCH THEM.

OKAY. GOT IT. ALL RIGHT.

THANK YOU VERY MUCH. THAT'S MY QUESTIONS.

I SUPPORT STAFF'S KIND OF WHAT THEY PUT FORWARD AND, YOU KNOW, CONTINUING THE CONTRACTS THAT YOU'VE IDENTIFIED.

AND I AGREE, WE NEED TO HAVE A CONVERSATION MORE IN DEPTH ABOUT THE SHINGLES COMPONENT.

SO YEAH, IN THE CONTRACTS, WE'LL COME BACK FOR APPROVAL HERE IN THE COMING WEEKS, RIGHT? YEAH. GOT IT. ONE ONE QUICK THING IS JUST TO LET COUNSEL KNOW THERE THERE IS THERE ARE COMPANIES THAT DO SHINGLE RECYCLING AND IT CAN BE TURNED INTO A PETROLEUM PRODUCT THAT CAN BE USED TO PATCH ROADS.

THE OTHER THING IS IT TAKES APPROXIMATELY 300 YEARS FOR A FULL FOR A SHINGLE TO FULLY.

DECOMPOSE. SO IT IS AN ISSUE THAT COULD CREATE MORE AND MORE PROBLEMS FOR OUR LANDFILL.

BUT THE GOOD NEWS IS IT CAN BE RECYCLED.

WE DON'T CURRENTLY HAVE A CONTRACT, BUT THAT'S CERTAINLY SOMETHING WE COULD LOOK AT.

OKAY, VERY GOOD.

ALL RIGHT. THANK YOU.

SO LET'S TAKE A TEN MINUTE BREAK.

IT'S 415 WILL BE BACK AT 425.

TAKE CARE OF THE LAST COUPLE OF WORK SESSIONS.

AND WELCOME BACK TO THIS MEETING OF THE DENTON CITY COUNCIL.

IT IS 440 AND WE DO HAVE A QUORUM.

BACK AND BACK FROM BREAK.

WE HAVE TWO MORE WORK SESSION ITEMS. WE HAVE ITEM D, WHICH IS OUR CALL THAT THAT'S OUR NEXT ITEM.

[D. Receive a report, hold a discussion, and give staff direction regarding City Council Contingency funds. [Estimated Presentation/Discussion Time: 1 hour]]

RECEIVE REPORT WHOLE DISCUSSION.

GIVE STAFF DIRECTION REGARDING CITY COUNCIL CONTINGENCY FUNDS.

[02:15:04]

COUNCIL MEMBERS LAURA BEHRENS, ASSISTANT DIRECTOR FOR PROCUREMENT WAREHOUSE AND GRANTS.

AS WE BEGAN TO REVIEW THE BUDGET FOR THE UPCOMING FISCAL YEAR, STAFF BEGAN TO LOOK AT PROGRAMS THAT PROVIDE SUPPORT TO NONPROFIT ORGANIZATIONS. WE CURRENTLY HAVE THE COUNCIL CONTINGENCY FUNDS AND A QUICK OVERVIEW SHOWS THAT IT HAS AN ANNUAL BUDGET OF 11,900. THIS MONEY DOES COME OUT OF GENERAL FUND AND PROVIDES THE MAYOR AND EACH COUNCIL MEMBER WITH 1700 DOLLARS EACH YEAR.

THERE ARE ESTABLISHED ELIGIBILITY, USE AND ADMINISTRATIVE PROCESSES FOR THIS FUNDING.

MOST OF YOU ARE FAMILIAR WITH THE FUNDS, BUT THEY DO GO TO NONPROFIT ORGANIZATIONS.

A COUNCIL MEMBER OR THE MAYOR CAN MAKE A REQUEST OR AN APPLICATION FOR CONTRIBUTIONS TO THE CITY MANAGER.

AND THE CITY MANAGER WOULD THEN REVIEW, DETERMINE IF THE REQUEST MEETS THE REQUIREMENTS AND EXECUTE FUNDING AGREEMENTS WITH THAT ORGANIZATION.

JUST A QUICK LIST OF SOME OF THE MORE RECENT ORGANIZATIONS THAT HAVE RECEIVED SUPPORT THROUGH THE COUNCIL CONTINGENCY FUNDING.

AND A NOTE IS THAT ALL THE CONTRIBUTION LEVELS ARE A MAJORITY OF THE CONTRIBUTION LEVELS ARE AT OR SLIGHTLY ABOVE THE $250 MINIMUM.

THERE ARE TWO OTHER SIMILAR PROGRAMS THAT ARE FUNDED EITHER THROUGH GENERAL FUNDS OR THROUGH THE HOTEL OCCUPANCY TAX FUNDS THAT ALSO SUPPORT NONPROFIT ORGANIZATIONS.

THE FIRST ONE IS THE SPONSORSHIP FUND, WHICH PROVIDES $88,000 IN CASH SUPPORT EVERY YEAR AND $250,000 IN IN-KIND. SO THOSE ARE GOING TO BE SERVICES PROVIDED BY THE CITY.

THE HOTEL OCCUPANCY FUND FUNDING IS DETERMINED EACH YEAR BY THE RECEIPT OF HOTEL OCCUPANCY TAX.

IT DOES HAVE ONE QUALIFIER THAT'S A LITTLE BIT DIFFERENT AND THAT IS THE REQUIREMENT TO ENHANCE AND PROMOTE TOURISM AND THE CONVENTION AND HOTEL INDUSTRY.

BOTH PROGRAMS DO GO THROUGH AN ANNUAL APPLICATION PROCESS.

DURING THAT TIME, THE APPLICATION AND THE GUIDELINES ARE REVIEWED AND UPDATED.

ALL APPLICATIONS FOR FUNDING OR SUPPORT ARE RECEIVED AND REVIEWED BY THE COMMUNITY PARTNERSHIP COMMITTEE.

THEY MAKE FUNDING RECOMMENDATIONS TO THE CITY COUNCIL WHO HAS FINAL APPROVAL ON AWARDS.

BOTH OF THESE PROGRAMS HAVE A STANDARDIZED PROCESS WHICH ENHANCES TRANSPARENCY BY SETTING CLEAR ELIGIBILITY AND USE CRITERIA AND ALSO OUTLINING A STEP BY STEP PROCESS IN THE GUIDELINES.

SO MOVING FORWARD, SOME OPPORTUNITIES FOR THE COUNCIL CONTINGENCY FUNDS INCLUDE COMBINING THAT FUNDING WITH THE CURRENT SPONSORSHIP PROGRAM.

WHAT THIS WOULD DO IS GIVE IT SOME MORE DETAILED ELIGIBILITY AND USE CRITERIA.

IT COULD INCREASE THE OVERALL SPONSORSHIP FUNDING.

AGAIN, IT DOES GO THROUGH AN ANNUAL REVIEW AND RECOMMENDATION BY THE COMMUNITY PARTNERSHIP COMMITTEE WITH FINAL APPROVAL BY THE CITY COUNCIL.

ANOTHER OPPORTUNITY WOULD BE TO USE THAT FUNDING TO SUPPORT UNDERFUNDED PROGRAMS SUCH AS COUNCIL, TRAVEL AND TRAINING.

AND THE PROGRAM CAN ALSO CONTINUE AS IT CURRENTLY IS, WITH STAFF RECOMMENDING THAT WE UPDATE THE CURRENT PROCESS BY IMPLEMENTING THE SPONSORSHIP PROGRAM ELIGIBILITY AND USE CRITERIA TO BRING SOME UNIFORMITY ACROSS ALL OF THE PROGRAMS THAT PROVIDE SUPPORT TO NONPROFIT ORGANIZATIONS.

THIS WOULD ALSO STANDARDIZE THE FORMAT FOR REQUEST FOR CONSISTENCY AND HAVE COUNCIL REVIEW THOSE APPLICATIONS AND MAKE A DETERMINATION ON AWARD WITH THE CITY MANAGER CONTINUING TO EXECUTE THE AGREEMENT.

I'LL TAKE ANY QUESTIONS AND DIRECTION OK QUESTIONS FOR STAFF AND THEN DIRECTION.

MAYOR PRO TEM THANK YOU, MR. MAYOR. SO AS I WAS READING THE GUIDELINES AND THEN THE BACKUP, IT SEEMED LIKE THERE WAS AN OPPORTUNITY, IF WE FELT VERY SPIRITED ABOUT AN ITEM, THAT WE COULD DECLARE A VARIANCE FROM VARIOUS OF OUR GUIDELINES.

AND SO I GUESS, IS THERE A MECHANISM WHERE SAY SOMETHING LIKE THE JAZZ FEST OR SOMETHING ELSE COULD COULD APPLY, BUT THEN PROACTIVELY REQUEST A VARIANCE FROM THE, SAY, THE 50% CAP? THAT WAS ONE THAT'S COME UP RECENTLY.

IS IS THERE AN OPPORTUNITY I MEAN, I KNOW WE CAN DO WHATEVER WE WANT AS COUNCIL, BUT BUT IS THERE BAKED INTO THE SYSTEM AND A WAY FOR FOR

[02:20:02]

BUT IN THAT ANNUAL REVIEW OF THE PROGRAM GUIDELINES, YOU CAN MAKE ADJUSTMENTS TO THOSE ELIGIBILITY REQUIREMENTS AND CRITERIA. SO THEN THAT WOULD APPLY TO THE NEXT FUNDING PERIOD.

BUT THAT WOULD BE GENERIC THOUGH, RATHER THAN SAY A ONE OFF IF IF FOR SOME REASON, SAY IN 2022, JUST FOR JAZZ FEST, WE ALL AGREED WE JUST WANTED TO GIVE THEM BECAUSE WE LOVE THEM SO MUCH.

ALL RIGHT. AND IT WASN'T GOING TO APPLY TO ANYTHING ELSE.

WE WERE JUST GOING TO BE REALLY PUNCTATE LIKE THAT.

IS THERE AN OPPORTUNITY FOR THAT IN THE SYSTEM OR ARE WE GOING TO HAVE TO DO THAT SPECIAL? THAT'S THAT'S DEFINITELY SOMETHING THAT THAT COULD BE CONSIDERED AT THE COMMITTEE LEVEL AND BROUGHT TO YOU FOR A RECOMMENDATION DURING THOSE DISCUSSIONS.

YOU COULD MAKE THAT OR GIVE THAT DIRECTION IN TERMS OF AN AWARD.

BUT AGAIN, THEN I WOULD RECOMMEND GOING BACK AND UPDATING AND REVISING THE GUIDELINES TO SHOW IF THAT'S SOMETHING THAT YOU WANT TO DO OR EXPAND OR PART OF THE DIRECTION TODAY COULD BE THAT WE.

RIGHT. SOME SORT OF VARIANCE PROCESS INTO THE GUIDELINES.

OKAY. THANK YOU. AND THEN MY SECOND QUESTION IS ON THIS CONCEPT OF MERGING OR CONTINGENCY FUNDS.

IF WE MERGE THOSE INTO THE SPONSORSHIP FUNDS, WE WOULD OSTENSIBLY GO FROM 88,099.

100,000. CORRECT.

BUT THEN THOSE WOULD BE THE THE ELIGIBILITY SUITABILITY.

AND ALL OF THAT WOULD BE DETERMINED FROM THE COMMUNITY DEVELOPMENT COMMITTEE AND AND COME BACK TO US AS RECOMMENDATIONS SO THAT OUR INDIVIDUAL SORT OF JUDGMENT, THE WAY WE SORT OF APPLY IT CURRENTLY WOULD WOULD KIND OF GO BY THE WAYSIDE.

IS THAT CORRECT? NO, IT WOULD FOLLOW THE SAME PROCESS THAT THAT WE'RE DOING NOW, WHICH IS TAKE THE APPLICATIONS TO THE COMMUNITY PARTNERSHIP COMMITTEE, HAVE THEM REVIEW THEM.

THEY MAKE RECOMMENDATIONS TO THE FULL BODY, TO THE FULL COUNCIL, AND THEN THE COUNCIL MAKES THE FINAL AWARD.

SO YOU WOULD STILL HAVE THAT OPPORTUNITY.

OCH WELL, I MEAN, COMPARE AND CONTRAST THAT WITH THE WAY WE DO IT NOW, WHICH IS TO TELL STAFF THAT WE'VE GOT I WANT TO GIVE $250 TO X, Y, Z, AND YOU ALL REMIND US, OH NO, X, Y, Z, NO, IT'S GOING TO BE THAT WILL BE DIFFERENT.

YES. THE FACT THAT YOU ALL DECIDE HOW YOU WANT TO SPEND YOUR MONEY IN 250, 304 HUNDRED AMOUNT OF TRANCHES TO GO TO NONPROFITS.

THIS WOULD BE DIFFERENT IN THAT IF THE MONEY WENT INTO THE SPONSORSHIP MONEY, THEN THAT WOULD BE THOSE.

THOSE GROUPS WHO YOU MAY ENCOURAGE TO APPLY FOR THOSE DOLLARS WOULD HAVE TO GO THROUGH THAT PROCESS TO TO GET FUNDING BECAUSE THERE WOULD NO LONGER BE ANY COUNCIL CONTINGENCY FUNDS.

IF YOU WENT THAT ROUTE.

OKAY. BEFORE I GIVE DIRECTION, I ACTUALLY WANT TO HEAR WHAT THE REST OF COUNCIL FEELS ABOUT WHICH WAY WE SHOULD GO AND THEIR THOUGHTS.

SO I'LL. I'LL ASK THEM TO CIRCLE BACK AROUND.

ANYONE ELSE? CATHERINE MCGUIRE.

THANK YOU. I THINK THAT MY DIRECTION IS GOING TO BE TO CONTINUE THE CURRENT PROGRAM, BUT UPDATE THE PROCESSES AND STANDARDIZE THE FORMAT FOR THE REQUEST FORM. JUST BECAUSE NOW I SUPPOSE I'M GOING MOSTLY BASED ON MY OWN PERSONAL CHOICES THAT I MADE LAST YEAR WITH MY CONTINGENCY FUNDS.

BUT I GET THE IMPRESSION THAT THE THE ORGANIZATIONS THAT APPLY FOR SPONSORSHIP FUNDING ARE SORT OF QUALITATIVELY DIFFERENT FROM THE ORGANIZATIONS THAT WE TEND TO GIVE GIVE OUR CONTINGENCY FUNDS TO.

YOU KNOW, I DO SEE THAT GRACE LIKE RAIN AND GIVING HOPE.

I THINK IT WAS OUR NO, I'M SORRY, INTERFAITH HAVE APPLIED FOR FOR SPONSORSHIP FUNDING THIS YEAR AND THAT'S GOOD.

BUT WE DON'T TYPICALLY SEE THOSE TYPES OF ORGANIZATIONS THAT PROVIDE THOSE TYPES OF SERVICES TO THE COMMUNITY APPLYING FOR SPONSORSHIP DOLLARS.

SO I WOULD PREFER TO HAVE A QUICK AND EASY WAY FOR COUNCIL MEMBERS TO GIVE THEM A LITTLE BIT OF EXTRA MONEY.

SO I DO I LIKE THE CURRENT PROGRAM.

OK ANYONE ELSE? COUNCIL MEMBER BURTON AND THEN COUNCIL MEMBER WHAT'S.

I LIKE THE PROGRAM WITH THE UPDATES.

I KNOW WHEN I CAME ON BOARD WITH THE CITY ON THE CITY COUNCIL, I UNDERSTOOD THAT THERE WAS A FIND AND WE COULD FIND A GROUP TO GIVE THE FUNDS TO.

BUT I WAS HAVING THE GROUPS TO SOLICIT ME PERSONALLY

[02:25:07]

BUT I THOUGHT IT WAS A LITTLE BIT DIFFICULT TO KIND OF FIGURE OUT WHO I WOULD WANT TO GIVE A GIFT TO LIKE THAT, OTHER THAN JUST THE STANDARD GROUP OF PEOPLE THAT, YOU KNOW, WE HEAR ALL THE TIME.

SO I THINK THAT WITH AN OPPORTUNITY FOR ALL OF THEM TO SOLICIT, YOU KNOW, AT THE SAME TIME AND EVEN PUT IT ON A SPREADSHEET FOR US TO FIGURE OUT WHAT WE WANT TO DO WITH IT, THAT WOULD BE VERY HELPFUL TO PUT IT IN FRONT OF US LIKE THAT.

THANK YOU, MA'AM. COUNCILMAN WATTS? YEAH. I MEAN, THE OPTION FOR ME WASN'T UP THERE, BUT I DON'T THINK WE SHOULD HAVE ADVOCATED FOR THAT WHEN I WAS MAYOR.

SO MY DIRECTION WOULD BE JUST TO INCLUDE IT IN THE SPONSORSHIP FUND, BECAUSE THERE'S SOME PROCESSES AND PROCEDURES IN PLACE THAT.

SO THAT'S JUST ME.

YEAH. OKAY.

ANYONE ELSE? COUNCILMAN MCGEE.

THANK YOU, MR. MAYOR. I WANT TO COSIGN ON WHAT MR. WHITE SAID. I ACTUALLY AGREE WITH HIM.

I THINK THAT WE SHOULD NOT HAVE THESE FUNDS ALTOGETHER, BECAUSE I'M CONSCIOUS OF PUTTING STAFF, PARTICULARLY OUR CITY MANAGER, IN AN UNTENABLE POSITION WHERE SHE HAS TO MAKE A CALL AS TO WHETHER OR NOT AN ORGANIZATION MEETS THE CRITERIA.

I DON'T WANT TO DRAG HER INTO THE POLITICAL WATERS.

SO THAT IS WHY I ALSO AGREE WITH NOT HAVING THIS.

BUT HAVING SAID THAT, IT LOOKS LIKE THE THE MOOD IS TO COMBINE THIS WITH THE SPONSORSHIP PROGRAM.

SO I GUESS I'M OKAY WITH THAT.

THANK YOU, MR. MAYOR. COUNCILMAN DAVIS.

THANK YOU. MAYOR, I APOLOGIZE.

I'M A LITTLE HOARSE, BUT I THINK I AGREE WITH WITH COUNCILMEMBER WATTS.

WHEN I FIRST CAME ON COUNCIL, I WAS REALLY CURIOUS ABOUT HOW THE THESE CONTINGENCY FUNDS CAME TO BE.

AND I HAVEN'T REALLY EVER.

I DON'T KNOW THAT STAFF'S BEEN ABLE TO FIND A GOOD ANSWER FOR THAT HISTORICALLY, HOW THEY HOW THEY CAME TO BE.

BUT I ASSUMED AS A NEW COUNCIL MEMBER THAT THEY WERE FOR THINGS LIKE TRAINING OR FLIERS OR POSTCARDS TO CONSTITUENTS AND THAT KIND OF THING, JUST KIND OF A DISCRETIONARY BUDGET TO USE TO DO YOUR COUNCIL WORK.

AND THEN I FOUND OUT THAT THEY'RE ACTUALLY MORE LIKE PERSONAL SLUSH FUNDS FOR COUNCIL MEMBERS TO MAKE, YOU KNOW, WORTHY DONATIONS TO WORTHY CAUSES.

AND, YOU KNOW, CERTAINLY MADE GOOD USE OF THEM MYSELF.

BUT JUST ONE LITTLE STORY.

I MADE A CONTRIBUTION TO FIRST REFUGE AND THEY WERE KIND ENOUGH TO RECOGNIZE ME AT THEIR THEIR GALA WITH A QUICK LITTLE, LITTLE SLIDE ON ONE OF THEIR ONE OF THEIR PRESENTATIONS.

AND IT WAS JUST A LITTLE BIT UNCOMFORTABLE, TO BE HONEST, BECAUSE IT WASN'T JESSE DAVIS GIVING THEM MONEY.

IT WAS THE CITY OF DENTON SPONSORING THEIR EFFORT AND PARTICIPATING IN THEIR IN THEIR WORK.

SO I FELT JUST A LITTLE BIT UNCOMFORTABLE THAT I WAS GETTING RECOGNITION FOR SOMETHING THAT REALLY WASN'T ME, IT WAS TAXPAYER MONEY.

SO I'D RATHER THAT THAT SPONSORSHIP MONEY GO THROUGH A SPONSORSHIP PROCESS AND THAT WE NOT, AS INDIVIDUAL COUNCIL MEMBERS HAVE THE OPPORTUNITY TO TO MAKE THESE LITTLE GIFTS AROUND THE COMMUNITY THAT EVERYBODY HAVE TO GO THROUGH THE SAME PROCESS AND THAT WE USE TAXPAYER MONEY IN A VERY TRANSPARENT AND PROCESS DRIVEN WAY.

ANYONE ELSE? MAYOR PRO TEM.

THANK YOU, MR. MAYOR. I WILL GIVE DIRECTION.

I ACTUALLY, IN ABSENCE OF EVERYTHING ELSE, WOULD LIKE SOMETHING IN BETWEEN.

I WOULD HAVE LIKE SOMETHING LIKE THE CURRENT SYSTEM BUT BUT HANDLED LIKE THE SPONSORSHIP SYSTEM.

BUT SINCE THAT'S NOT ONE OF THE OPTIONS WE'RE DISCUSSING RIGHT NOW, I THINK PROBABLY FOR THE SAKE OF TRANSPARENCY AND JUST SORT OF EASE OF THE SYSTEM, I'LL, I'LL I'LL GO WITH THE SPONSORSHIP IDEA.

OKAY. ALL RIGHT.

THAT GIVES YOU DIRECTION, I BELIEVE.

SO MY INPUT DOESN'T REALLY WEIGH IN OR DOESN'T WEIGH.

BUT I'LL JUST SAY MY CONCERN IS THIS.

THAT I THINK YOU HAVE ORGANIZATIONS THAT GET MISSED OR THE DOLLARS AREN'T DIVERSIFIED. AND IN JUST THE MATH, RIGHT, JUST JUST THE PERCENTAGE OF ORGANIZATIONS THAT ARE FOCUSED ON THIS CULTURE, THAT CULTURE, THIS CULTURE, THERE'S FEWER, RIGHT? SO THERE'S MORE. AND SO KIND OF THAT THAT I LIKE THE EQUITY PIECE OF A COUNCIL MEMBER BOOTS ON THE GROUND IN ORGANIZATIONS TALKING.

SO FOR EXAMPLE, AND IT'S NOT EVEN ABOUT KIND OF SOCIOECONOMIC OR RACE, BUT IT'S ALSO LIKE THE THERE'S A GROUP THAT HELPS

[02:30:05]

AND SO I WAS ABLE TO DONATE TO THEM.

AND THAT'S SOMEONE THAT NORMALLY THEY DIDN'T KNOW ABOUT THE PROCESS.

RIGHT? AND I WAS INTRODUCED TO IT BY GARY TOOTH ACHOR WHO'S AN ADVOCATE FOR THEM AND WAS ABLE TO CONTRIBUTE TO THEM.

SO HOW THERE'S JUST GROUPS THAT WE'RE GOING TO MISS OR MISS THE DEADLINE.

AND SO THAT'S MY CONCERN IS HOW DO YOU WORK AROUND? THEY DIDN'T KNOW, BUT THEY HAVE A NEED AND HOW DO WE MEET THAT? AND SO THAT THAT'S UNFORTUNATE BUT IT'S IT'S A YEAR TO YEAR PROPOSITION.

SO WE'LL WE'LL DEAL WITH IT THIS YEAR AND HOPEFULLY REVISIT IT NEXT YEAR AND HAVE A DIFFERENT RESULT.

MAYOR SMEAR I WONDER IF ONE WAY OF ADDRESSING YOUR CONCERNS AND I SHARE THOSE CONCERNS, I THINK THEY'RE REALLY VALID.

I WONDER IF ONE WAY IS TO KEEP THE THE TRANCHES SMALL AND HAVE US NOMINATE THOSE TRANCHES STILL FOR SPONSORSHIP.

AND THAT WAY THEY'RE GOING INTO THE SYSTEM WHICH PROVIDES A FRAMEWORK AND A STRUCTURE.

BUT YOU YOU CAN IN THE SAME WAY THAT WE APPOINT PEOPLE TO A BOARD AND COMMISSION, YOU CAN MAKE A NOMINATION.

AND I WONDER IF THAT MIGHT SOLVE BOTH ISSUES.

IT'S SOMETHING THAT WE DID IN THE CURRENT YEAR BECAUSE WE DID MAKE SOME ADJUSTMENTS TO THE SPONSORSHIP PROGRAM BY FOLDING IN THE IN-KIND SERVICES THAT ARE NORMALLY ASSESSED AND KIND OF DISTRIBUTED BY PARKS LEADING THAT THAT CHARGE.

BUT ANYONE THAT HAD RECEIVED IN-KIND SUPPORT OVER THE PREVIOUS YEAR WAS NOTIFIED OF THE NEW PROCESS SO THAT WE DIDN'T MISS THEM.

SO SOMETHING THAT WE CAN DO AS KIND OF PART OF THIS NEW PROCESS IS NOTIFY ANY, ANY PREVIOUS RECIPIENTS OF THE CONTINGENCY FUNDS, MAKING THEM AWARE OF THE NEW PROCESS SO THAT WE CAN CATCH THEM IN THE NEXT ALLOCATION.

YES. COUNCILMAN AND SO MAYBE I DON'T UNDERSTAND THE PROCESS FULLY ON THE SPONSORSHIP COMMITTEE, BECAUSE WHAT I'M HEARING IS THAT THERE'S A TIME ISSUE, THERE'S AN APPLICATION DEADLINE, THERE'S THOSE KINDS OF THINGS.

AND SO I THINK IF YOU HAD AN OPPORTUNITY TO CREATE A PROCESS WHEREBY, YOU KNOW, I'M GOING TO SAY EITHER FIRST.

IN OTHER WORDS, TO ADDRESS THE MAYOR'S CONCERN, BECAUSE AND I GET THAT AND I THINK THAT'S A VALID I THINK THAT'S A VALID CONCERN BECAUSE THERE ARE ISSUES THAT COME UP AND ORGANIZATIONS THAT WERE MADE AWARE OF THAT WE DON'T KNOW ABOUT.

AND SO IF THERE'S A WAY TO EVEN HOLD BACK SOME OF THAT TO EITHER A DIFFERENT DEADLINE OR AN AD HOC KIND OF APPROACH TO WHERE YOU DO HAVE AN OPPORTUNITY FOR PEOPLE TO COME IN IN REAL TIME.

AND I THINK THAT WOULD BE SOMETHING THAT WOULD SORT OF PROVIDE A HYBRID, I THINK IS WHAT THE MAYOR PRO TEM SAID, A HYBRID OF OK.

WE STILL CAN BRING FORTH THESE ORGANIZATIONS THAT WERE JUST MADE AWARE OF.

THEY CAN COME IN AND APPLY.

THEY CAN ASK FOR A CERTAIN AMOUNT AND THEY CAN EITHER GET THAT OR GET SOMETHING LESS THAN THAT.

BUT IT WOULD PROVIDE, I THINK, MORE FLEXIBILITY, WHICH IS ALWAYS A GOOD THING.

AND I JUST DON'T KNOW HOW THAT WOULD WORK FROM A PROCESS PERSPECTIVE, BUT I THINK THAT WOULD BE THE BEST OF BOTH WORLDS.

IT WOULD ALLOW MORE TRANSPARENCY SORT OF A PROCESS, BUT ALSO ALLOW FOR THAT KIND OF FLEXIBILITY THAT ALLOWS PEOPLE TO COME IN THAT WE DON'T KNOW ABOUT.

AS THE MAYOR HAD MENTIONED.

SO I REALLY APPRECIATED HIM BRINGING THAT UP.

NOW WE CAN DEFINITELY DO THAT AND AND FOR, YOU KNOW, EVEN DO AN IMPLEMENTATION, WE DO A LOT OF PHASING IN WHEN WE START NEW PROGRAMS OR PROJECTS.

SO WE COULD DEFINITELY PHASE THIS IN THIS FIRST YEAR BEING THAT THAT MONEY IS SET ASIDE, HAVING THEM APPLY AND THEN EITHER BRINGING BACK THE COMMUNITY PARTNERSHIP COMMITTEE TO REVIEW OR BRINGING THEM BACK TO THE FULL COUNCIL AND MAYBE REVIEWING THAT ON A QUARTERLY BASIS RATHER THAN AS THEY COME IN AND STILL FOLLOWING THE SAME SPONSORSHIP PROCESS.

THAT PROCESS IS IN PLACE FOR THE FINAL APPROVAL BY COUNCIL.

SO LET ME LET ME JUST MAKE SURE I'M CLEAR ON WHAT WE'RE RECOMMENDING HERE.

SO ARE WE SAYING FOLDED INTO THE SPONSORSHIP MONEY BUT SET IT ASIDE? I MEAN, FOR ME, IT'S THAT I'M SAYING WHAT I'VE HEARD IS FOLD IT IN, BUT HAVE A PROCESS, WHETHER IT'S THAT AMOUNT OF MONEY THAT'S ALREADY SET ASIDE FOR CONTINGENCY FUNDS OR EVEN A HIGHER AMOUNT OF MONEY, THAT ALLOWS US TO, YOU KNOW, ON A REAL TIME BASIS, MAKE THESE RECOMMENDATIONS.

SO FOR THOSE, THOUGH, THAT COME IN LATER MORNING, THE THEY'RE NEW TO TOWN, A NEW GROUP THAT JUST FOUND OUT THE CITY HAD SOME ABILITY TO HELP THEM OUT WITH A FEW THOUSAND OR WHATEVER.

IS THAT IS THAT WHAT I'M HEARING?

[02:35:02]

WE CAN SET THAT MONEY ASIDE IN YEAR ONE, WHICH WOULD BE THIS NEXT FISCAL YEAR FOR THEM, AND THEN PREPARE FOR A FULL IMPLEMENTATION IN COMBINATION WITH SPONSORSHIP MOVING FORWARD.

SO THE OTHER THING IS REALLY IMPORTANT HERE AND I THINK IS CRITICAL AS THAT COUNCIL BE THE ONES THAT APPROVE THAT AMOUNT BECAUSE OR THAT COMMITTEE BECAUSE WHAT'S HAPPENED IN THE PAST IS IT'S PUT ON THE CITY MANAGER TO MAKE THE DECISION WHETHER OR NOT IT'S CONSIDERED A PUBLIC PURPOSE.

AND I THINK, TRUTHFULLY, IT NEEDS TO BE THIS BODY OR THAT SUBCOMMITTEE WHO MAKES THAT DECISION AND PASSES IT FORWARD TO THE MAYOR AND COUNCIL, CORRECT? YEAH, NO. AND THAT'S CRITICAL FOR ME.

I MEAN, IT HAS TO GO THROUGH A SUBCOMMITTEE BEFORE IT COMES US TO TO KNOCK OFF THE ROUGH EDGES, BECAUSE I JUST, YOU KNOW, I DON'T WANT IT TO COME STRAIGHT TO AN AGENDA I WANTED TO PASS THROUGH AND THEN TO.

THANK YOU TO BOTH MAYOR PRO TEM AND COUNCILMEMBER WATTS.

I THINK THAT'S EXACTLY IT.

IF THERE'S I MEAN, I TAKE STAFF'S DIRECTION ON KIND OF HOW TO ACCOMPLISH THAT, BUT I ALSO WILL CHALLENGE STAFF A STEP FURTHER.

THERE'S THERE'S WE HAVE BUDGETED MONEY THAT'S JUST SITTING THERE.

AND THAT TO ME IS THAT IS WHEN WE HAVE MONEY THAT WE TAKE FROM THE CITIZENS, IT SHOULD BE PUT TO USE.

RIGHT. AND SO WE HAVE COUNCIL MEMBERS THAT DON'T USE AND THAT'S THEIR DECISION.

DON'T USE THE STIPEND.

GREAT. LET'S PUT THAT TO WORK VERSUS HAVING IT JUST SIT THERE.

RIGHT. SO MAYBE THAT'S AN OPPORTUNITY TO SAY, WELL, YOU KNOW, BECAUSE IT'S BUDGETED, IT'S YOU CAN'T NOT SO THAT'S $9,000 THAT SITS THERE THAT WE TAKE AND DON'T USE.

RIGHT. AND SO I THINK IT'S IMPORTANT TO MAYBE THAT'S TO ACTIVATE THAT OR TAP INTO, HEY, THIS IS THIS IS DORMANT.

AND SO WE'RE GOING TO TAP INTO THAT AND USE THAT FOR EMERGENCY, YOU KNOW, HEY, THEY DIDN'T KNOW THEY'RE NEW TO TOWN.

MISSED THE DEADLINE, THAT SORT OF THING.

BUT BUT THERE'S SO I'LL DEFER TO STAFF ON YOU KNOW I DON'T WANT TO CAUSE HEADACHES BUT I THINK WHATEVER WE CAN DO TO TO HAVE A OPPORTUNITY TO MITIGATE BLIND CORNERS, THAT'D BE GREAT.

SO, MAYOR, DOES THAT DOES THAT HELP ALLEVIATE SOME OF YOUR CHALLENGES AND CONCERNS WITH PEOPLE SORT OF EITHER BEING LEFT OUT OR YOU'RE MADE OR WERE MADE AWARE AND WE'RE NOT ABLE TO DO ANYTHING. SORT OF THIS PROCESS THAT WE'RE DESCRIBING, IS THAT DOES THAT HELP? YEAH, I THINK ONCE WE ONCE I SEE IT, IT'LL IT'LL BUT YES, I THINK THE THE HEART OF IT AND THE MESSAGE DELIVERED.

YES. BECAUSE I JUST THINK THAT THAT WILL ADDRESS JUST LIKE MAYOR PRO TEM MENTIONED WHEN YOU HAVE THESE ONE OFFS.

BUT THERE'S A PROCESS IN PLACE BECAUSE IF YOU DON'T HAVE A PROCESS, THEN THAT THAT SPIRALS OUT OF CONTROL IN A HURRY TOO.

RIGHT. BECAUSE THE NEXT ORGANIZATION SAYS, WELL, I WANT THAT SAME OPPORTUNITY.

AND SO THIS KIND OF PUT SOME GUARDRAILS AROUND AROUND THAT.

SO. ALL RIGHT.

WELL, YOU HAVE EVERYTHING YOU NEED.

I THINK SO. JUST TO BE CLEAR, WHAT WE'LL DO IS WE'LL ROLL THE CONTINGENCY FUNDS INTO THE SPONSORSHIP PROGRAM.

YEAR ONE WILL BE PHASED IN, OR WE WILL STILL CONSIDER NONPROFITS APPLYING OR REQUESTING FUNDS OUT OF THAT ALLOCATED CONTINGENCY FUND.

AGAIN, YEAR ONE ONLY HAVE THOSE GO THROUGH THE ESTABLISHED PROCESS, WHICH MEANS GOING TO THE COMMUNITY PARTNERSHIP COMMITTEE FIRST FOR REVIEW AND RECOMMENDATION, BUT FINAL APPROVAL BY THE FULL COUNCIL AND THEN STAFF WILL CONTINUE TO JUST EXECUTE AWARDED AGREEMENTS.

OKAY, VERY GOOD.

AND THEN, ROSA, I HAVE A SHEET IN HERE.

YEAH, I HAVE $200.

I'VE GOT TO FIGURE OUT WHAT TO DO WITH THAT.

SO I'LL GET WITH YOU AFTER THIS.

IT'S LESS THAN THE THRESHOLD, BUT WE'LL FIGURE IT OUT.

SO. OK.

OH, COUNCILMAN MCGEE.

SORRY. QUICK QUESTION. SO I'M CLEAR.

SO IT'S COMMUNITY PARTNERSHIP GOING TO DECIDE THE AMOUNT OR ARE WE GOING TO SIDE WITH THE AMOUNT AS A BODY THEY MAKE FUNDING RECOMMENDATIONS TO THE COUNCIL OC, FUN OC AND THEN COUNCIL DOES THE FINAL AWARD.

THANK YOU VERY MUCH. OKAY, BUT AND SO.

JUST IN. YOU'RE WHEN YOU COME BACK AND GIVE US LAY OUT THE PLAN, PLEASE.

IF WE CAN JUST TELL US AS A BODY HOW IF WE SAY IF WE WANT TO HAVE INPUT IN THAT PROCESS.

RIGHT. JUST WHAT THAT LOOKS LIKE, JUST SO I CAN UNDERSTAND THAT.

GREAT. ANYONE ELSE? OKAY, GREAT. THANK YOU VERY MUCH.

I APPRECIATE IT. THAT TAKES US TO OUR LAST WORK SESSION ITEM, WHICH IS ID 22683 RECEIVE REPORT WHOLE DISCUSSION.

[E. Receive a report, hold a discussion, and give staff direction on pending City Council requests for: (1) A Council recommendation for staff to direct Downtown TIRZ #1 and Downtown Economic Development Committee to form a recommendation on implementation of a fire sprinkler installation grant program. [Estimated Presentation/Discussion Time: 30 minutes]]

HI. HI THERE.

GOOD AFTERNOON.

[02:40:02]

ALL RIGHT, WONDERFUL. I AM JENNIFER RADY, ASSISTANT TO THE CITY MANAGER.

AS A REMINDER, YOU GUYS ARE ALL PRETTY FAMILIAR WITH THIS.

THE WORK SESSION PROCESS, UP TO SEVEN REQUESTS WILL BE REVIEWED, EACH MEETING ONE PER COUNCIL MEMBER.

GOT A GOOD SPOILER FOR YOU? THERE'S ONLY ONE STATE STAFF WILL INTRODUCE THE REQUEST AND THE ELECTED OFFICIAL THAT MADE THAT REQUEST WILL HAVE UP TO 2 MINUTES TO DESCRIBE AND JUSTIFY THEIR REQUEST.

AND THEN THE REMAINING ELECTED OFFICIALS CAN THEN HAVE ONE MINUTE TO PROVIDE FEEDBACK AND INDICATE THEIR SUPPORT.

AS A CONTINUATION.

YOU CAN ALSO RANK THAT HIGH, MODERATE OR LOW, AND THE AGENDA COMMITTEE WILL ASSIST IN SCHEDULING ITEMS RECEIVING CONSENSUS BASED UPON THE PRIORITY THAT YOU GUYS HAVE RANKED IT.

WE HAVE ONE ITEM TODAY.

IT IS A COUNCIL RECOMMENDATION FOR STAFF TO DIRECT THE DOWNTOWN TOURS, NUMBER ONE, AND THE DOWNTOWN ECONOMIC DEVELOPMENT COMMITTEE TO FORM A RECOMMENDATION ON IMPLEMENTATION OF A FIRE SPRINKLER INSTALLATION GRANT PROGRAM.

AND COUNCIL MEMBER DAVIS, I WILL LET YOU TAKE THAT AWAY.

THANK YOU, MAYOR. WHEN SHOULD I START? GO RIGHT AHEAD. GIVE YOUR NAME AND ADDRESS.

NOTES. GOOD. GO AHEAD. THANK YOU.

THANK YOU. SO I CHAIRED THE DOWNTOWN ECONOMIC DEVELOPMENT COMMITTEE AND THE CHAIR OF THE TOURIST BOARD.

NUMBER ONE, ALSO SITS ON THAT COMMITTEE.

AND WE WERE RECENTLY MADE AWARE OF A FEDERAL TAX TAX RELIEF PROGRAM THAT MAKES AVAILABLE TAX CREDITS FOR OWNERS OF BUILDINGS THAT TYPICALLY THESE HISTORIC BUILDINGS BEFORE CODE BUILT BEFORE CODE REQUIRED SPRINKLER SYSTEMS TO RETROFIT THOSE BUILDINGS WITH SPRINKLERS.

SO THEY'RE VERY EXPENSIVE SYSTEMS AND WE ACTUALLY HAVE SOME GRANT FUNDING AVAILABLE FOR CODE IMPROVEMENTS DOWNTOWN.

WE APPROVE THIS KIND OF GRANTS ALL THE TIME.

SOME OF IT'S FOR FIRE CODE STUFF, SOME IT'S FOR ADA COMPLIANT, SOME OF IT'S FOR THINGS LIKE SIGNS AND AWNINGS.

BUT THOSE GRANT PROGRAMS ARE PRETTY CONSTRAINED IN THAT.

THEY HAVE KIND OF LIKE WHAT WE WERE TALKING ABOUT EARLIER TODAY, THERE'S 50% CAPS AND THINGS LIKE THAT.

BUT BECAUSE THESE TAX THIS TAX RELIEF IS GOING TO BE KIND OF TAPERING OFF OVER A SERIES OF YEARS.

I TALKING WITH SOME OF OUR DOWNTOWN BUSINESS OWNERS.

IT WOULD BE BENEFICIAL IF WE COULD KIND OF UNLOCK SOME GRANT FUNDING FOR THEM TO MAKE SURE THAT SOME OF OUR HISTORIC BUILDINGS ARE BETTER PROTECTED DOWNTOWN, THAT WE DON'T HAVE FIRES WIPING OUT BUILDINGS IN THE FUTURE.

SO WHAT WE'D LIKE TO DO IS THOSE COMMITTEES WOULD LIKE TO TALK ABOUT PUTTING THOSE KIND OF GRANT GUIDELINES TOGETHER, BUT THEY DON'T WANT TO SPEND THEIR WHEELS.

THEY WANT TO MAKE SURE THAT THAT'LL HAVE BACKING FROM COUNCIL BEFORE THEY START WORKING ON THOSE CRITERIA THAT ARE SPECIFIC TO FIRE SPRINKLER INSTALLATION GRANTS AND NOT JUST NOT THE SAME CRITERIA AS OUR SIGN AND AWNING GRANTS OR OUR ADA CODE IMPROVEMENT KIND OF GRANTS THAT ARE ALREADY IN EXISTENCE.

SO THAT'S THAT'S THE ASK JUST TO GIVE THEM A FOR COUNCIL KIND OF TIP ITS HAND JUST A LITTLE BIT TO LET THOSE COMMITTEES KNOW THAT WE'RE INTERESTED IN TALKING ABOUT THAT KIND OF GRANT SO THEY CAN START WORKING ON THE GUIDELINES.

OKAY, THANK YOU.

COMMENTS. COUNCIL MEMBER MAGUIRE AND MAYOR PRO TEM.

I THINK IT'S A GREAT IDEA.

MY DIRECTION IS TO MOVE FORWARD WITH LOW PRIORITY, NOT BECAUSE IT'S NOT IMPORTANT, BUT BECAUSE IT'S PERHAPS LESS URGENT THAN SOME OTHER THINGS WE'RE WORKING ON.

MAYOR PRO TEM YES.

I ALSO CONCUR THAT I THINK WE SHOULD DO IT, ALTHOUGH I THINK WE SHOULD MAKE SURE WE'RE EXPANDING THE FIRE SUPPRESSION, NOT JUST SPRINKLERS, BUT YES, I CONCUR.

ANYONE ELSE? CUSTOM BIRD.

YES. I'LL PUT MY AGREEMENT IN WITH THAT.

I SPEND A LOT OF TIME IN HEALTH AND SAFETY, AND I KNOW SAFETY IS FIRST.

YEAH. YEAH, THAT'S.

YEAH. YEAH.

I'M OKAY WITH IT. I THINK, THOUGH, I WOULD RATHER SEE THE COUNCIL AT LEAST HAVE SOME GENERAL DISCUSSION ABOUT GUIDELINES AND THINGS SUCH AS THAT, BECAUSE I'D HATE TO SEE THE COMMITTEES DO ALL THIS WORK, WHEREAS THE COUNCIL CAN GIVE SOME TYPE OF DIRECTION OF AS WHAT'S THE WHAT'S THE RIGHT, WHERE'S IT GOING, WHERE THE FUNDS ARE GOING TO COME FROM.

THEY'RE GOING TO COME FROM THE TERS THEY'RE GOING TO COME FROM.

I MEAN, SO I THINK WE PROBABLY OUGHT TO HAVE JUST A GENERAL CONVERSATION ABOUT IT JUST TO GIVE THEM SOME DIRECTION ON WHAT WE THINK SOME OF THOSE GUIDELINES WOULD BE.

BUT OVERALL, GENERALLY, I'M OKAY WITH THE CONVERSATION.

I JUST WOULDN'T WANT TO SPEND ALL THAT TIME WITH THEM DEVELOPING GUIDELINES, AND THEN SOMEHOW WE CHANGE A BUNCH OF THEM WITHOUT ANY DISCUSSION.

BUT YEAH, I'M OKAY WITH IT.

[02:45:01]

YEP, GOT IT.

OKAY, SO THERE YOU HAVE THE NOTES, RIGHT? SO OBVIOUSLY THERE'S SUPPORT FOR IT TO MOVE FORWARD.

THE, THE NODE NOTABLES ARE GENERAL FIRE SUPPRESSION, RIGHT? AND THEN ALSO DIRECTION FROM COUNSEL, HOWEVER YOU WANT TO ELICIT THAT TO THEN KIND OF GIVE THEM SOMETHING TO LAUNCH FROM.

ARE THE TWO NOTABLES THERE? YES, SIR. YOUR YOU KNOW, YOU'RE FAIRLY NEW, RIGHT? YES. YEAH. HOW LONG? A MONTH OR SO SINCE THE END OF ME.

OKAY. GOT IT. GOT IT.

OKAY. YEAH. NO, I'M JUST KIDDING.

YOU STOLE. WE STOLE IT FROM THE COUNTY.

OH, NICE. VERY GOOD.

WELCOME. WELCOME.

THANK YOU VERY MUCH. APPRECIATE IT.

THANK YOU, OK. SO THAT CONCLUDES OUR WORK SESSION.

AND THEN WE'LL NEED TO TRANSITION TO THE COUNCIL CHAMBER.

SO IT IS 511.

LET'S GIVE YOU 10 MINUTES.

ONLY TWO ITEMS THERE. SO IT SHOULDN'T TAKE LONG.

SO LET'S SAY 525, WE'LL GET STARTED.

AND WELCOME BACK TO THIS MEETING AND THEN CITY COUNCIL.

IT IS 533 AND WE'RE TO OUR CONSENT AGENDAS AGENDA SECTION OF THE AGENDA.

[4. CONSENT AGENDA]

OKAY. MOVE APPROVAL AND COUNCIL MEMBER MCGEE.

ALL RIGHT. IS THAT OK? YEAH. GOT IT. I COULDN'T REMEMBER.

SO THAT'S A MOTION BY COUNCILMAN BYRD SECOND BY COUNCILWOMAN MCGEE FOR THE CONSENT AGENDA, BUT FOR ITEM B.

ANY DISCUSSION. SEEING NONE.

I GOT TO WRITE IT DOWN. GOT IT.

COUNCIL MEMBER BIRD.

HOW SAY YOU? I COUNCIL MEMBER MCGEE.

I COUNCILMAN BET I WO COUNCIL MEMBER MAGUIRE I THEN COUNCIL MEMBER WHAT I COUNCIL MEMBER DAVIS, I.

MAYOR HUDSPETH AS WELL.

THAT PASSES SEVEN ZERO TAKES US TO ITEM B.

[B. Consider adoption of an ordinance of the City of Denton authorizing the City Manager to execute an Interlocal Agreement with the Denton Independent School District for the use of approximately 10,000 square feet of warehouse space in a City owned property located at 651 South Mayhill Road; and providing an effective date.]

MAGUIRE HAS RECUSED HERSELF AND COUNCIL MEMBER DAVIS AS WELL, I DO BELIEVE.

BLINK TWICE IF YOU'RE STILL THERE.

COUNCIL MEMBER DAVIS.

NO. NO, I'M JUST KIDDING.

JUST. OH, MAN.

SO IT'S ITEM B, WHICH IS 221413.

CONSIDER ADOPTION OF AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER TO EXECUTE A IN A LOCAL AGREEMENT WITH DENTON INDEPENDENT SCHOOL DISTRICT FOR USE OF APPROXIMATELY 10,000 SQUARE FEET OF WAREHOUSE SPACE IN THE CITY OWNED PROPERTY LOCATED IN 651 SOUTH MAYHILL ROAD COUNCILMAN. I MOVE APPROVAL OF ITEM B.

OKAY. IS THERE A SECOND? A SECOND MAYOR. OK SECOND BY COUNCIL MEMBER.

WHAT DISCUSSION? SEEING NONE. COUNCILMAN BECK, I SAY YOU COUNCILMAN WATCH COUNCIL MEMBER MCGEE I COUNCILMAN BYRD I AND MAYOR HUDSPETH AS I AS WELL.

THAT PASSES FIVE ZERO.

LET THEM REJOIN US.

THAT CONCLUDES OUR CONSENT AGENDA.

WE HAVE TWO ITEMS FOR INDIVIDUAL CONSIDERATION.

TO CONCLUDE OUR AGENDA.

SO ITEM FIVE A IS ID 22198.

[A. Consider adoption of an ordinance ordering a special election to submit to the voters the proposition of an amendment to the Denton Code of Ordinances, creating Chapter 21, Article V to be titled “Marijuana Enforcement” be held on November 8, 2022; prescribing the time, manner, and conduct of the election in accordance with an Election Agreement and Contract for election services with the Election Administrator of Denton County; and providing an effective date.]

CONSIDER ADOPTION OF AN ORDINANCE ORDERING A SPECIAL ELECTION TO SUBMIT THE VOTE TO THE VOTERS.

THE PROPOSITION OF AN AMENDMENT TO THE DENTON CODE OF ORDINANCES CREATING CHAPTER 21, ARTICLE FIVE TO BE TITLED MARIJUANA ENFORCEMENT TO BE HELD ON NOVEMBER EIGHT, 2022.

PRESCRIBING THE TIME, MANNER AND CONDUCT OF ELECTION IN ACCORDANCE WITH THE ELECTION AGREEMENT AND CONTRACT FOR ELECTION SERVICES WITH ELECTION ADMINISTRATOR OF DENTON COUNTY AND PROVIDING AN EFFECTIVE DATE.

THANK YOU. GOOD EVENING, MAYOR.

COUNCIL. MY NAME IS ROSARIO AND I'M YOUR CITY SECRETARY.

I'M GOING TO GO AHEAD AND CALL UP MY PRESENTATION, SHARE MY SCREEN.

[02:50:11]

THE PUBLIC HEARING AND READING OF THE ORDINANCE OCCURRED ON JULY 19.

AT THAT TIME, COUNCIL DIRECTION WAS TO PRESENT THE INITIATIVE ORDINANCE TO CITIZENS AND OF COURSE SCHEDULE THE ORDER OF THE ELECTION, WHICH FELL WITHIN NOT LESS THAN THE 30 OR MORE THAN 60 DAYS AS PROVIDED UNDER THE CITY CHARTER AND OF COURSE UNDER THE TEXAS ELECTION CODE.

THE NEXT UNIFORM ELECTION DATE IS WHAT COMES INTO PLAY AND THAT IS SCHEDULED FOR TUESDAY, NOVEMBER EIGHT.

SO FOR THE ELECTION DAY THAT WE WILL BE CONTACTING IS WITH ANY OTHER ELECTION, WITH THE DENTON COUNTY FOR THE ADMINISTRATION OF THE ELECTION, AND THAT WILL COME TO YOU IN THE FUTURE. THE COST AT THIS POINT IS TBD.

THE ESTIMATE WILL NOT BE AVAILABLE UNTIL THAT CONTRACT IS PRESENTED FOR YOUR CONSIDERATION.

THE EARLY VOTING PERIOD IS MONDAY, OCTOBER 24TH THROUGH FRIDAY, NOVEMBER 4TH, AND IT IS STATE MANDATED THAT THE CANVASS PERIOD BE BETWEEN NOVEMBER 11 THROUGH THE 22ND, AND WE HAVE TENTATIVELY SCHEDULED THAT FOR TUESDAY, NOVEMBER 15.

AS YOU CAN SEE HERE, THESE ARE THE EARLY VOTING DATES AND LOCATIONS.

WE'VE KIND OF MADE SOME NOTES.

YOU'VE SEEN THIS.

THESE LOCATIONS WERE WHAT WAS PREFERRED AT THE MAY 21ST LOCATION.

AND OF COURSE, ALL DATES, TIMES AND LOCATIONS ARE SUBJECT TO CHANGE IN ACCORDANCE WITH THE TERMS OF THE ORDINANCE.

AND DENTON COUNTY ELECTIONS DEPARTMENT WILL DETERMINE WHAT THOSE LOCATIONS AND TIMES ARE.

ONCE THEY'VE DETERMINED ALL OF THE PARTICIPATING JURISDICTIONS AND THOSE THAT WILL AND WILL NOT BE HOLDING AN ELECTION AND OF COURSE, WHAT THEIR PREFERRED LOCATIONS ARE AS WELL.

FOR ELECTION DAY. WE'VE NOTED HERE BY DISTRICT WHAT THE LOCATIONS ARE.

AGAIN, THESE ARE THE SAME AS WE HAD SELECTED FOR THE MAY 21ST ELECTION.

AND AGAIN, THE FINAL LOCATIONS WILL BE UNKNOWN UNTIL DENTON COUNTY KNOWS WHO ALL OF THE PARTICIPATING JURISDICTIONS ARE, AND THEY TOO HAVE SUBMITTED THEIR PREFERRED LOCATIONS. AGAIN, BECAUSE IT IS A NOVEMBER ELECTION, DENTON COUNTY DOES HAVE THE FINAL SAY ON WHAT THOSE LOCATIONS ARE, AND THEN THEY WILL ASSIGN THE PRECINCTS WHEN WE PUBLISH OUR END POST, OUR NOTICE OF ELECTION.

IT WILL CLEARLY DETAIL WHERE VOTERS AT WHAT PRECINCT WILL BE GOING TO WHICH LOCATION.

AND I'LL TAKE ANY QUESTIONS YOU MAY HAVE.

GREAT. THANK YOU VERY MUCH.

YEAH. PERFECT. IF QUESTIONS FOR STAFF.

OH YEAH, WE HAVE ONE SPEAKER.

BUT IF THERE'S LET'S.

SO THE SPEAKER MAY RESPOND TO THOSE QUESTIONS OF THIS QUESTIONS FOR STAFF.

LET'S GET THOSE SO THE SPEAKER CAN HEAR THOSE AND MAY SPEAK TO.

COUNCILMAN WATSON. YEAH, I DON'T THINK MY QUESTIONS ARE FOR CITY SECRETARY.

MORE FOR THE ACTING POLICE CHIEF, IF HE'LL JUST GOT A COUPLE OF QUESTIONS.

OKAY. AND THE PURPOSE OF MY QUESTIONING IS TO TRY TO I DON'T WANT TO SAY SET A RECORD BECAUSE WE'RE ALL BEING RECORDED, BUT TO JUST SORT OF ASK THE CHIEF SOME EXAMPLES OF WHAT ARE ALLOWED TODAY AND THEN WHAT WOULD BE THE IMPLICATIONS OF THE ORDINANCE IF IT PASSED, JUST SO THAT I CAN UNDERSTAND AND HOPEFULLY COMMUNICATE AND UNDERSTAND WHAT ARE THE DIFFERENCES? AND IF THERE AREN'T ANY, THEN THERE AREN'T ANY, IF THAT'S OKAY.

MAYOR, IF YOU'LL INDULGE ME JUST FOR A MOMENT.

SURE, CHIEF.

JUST TO SET UP A FACTUAL SITUATION.

SOMEBODY, ONE OF THE OFFICERS, PULLS OVER SOMEBODY FOR A MOVING VIOLATION, AND THEY APPROACH THE CAR AND THEY SMELL MARIJUANA IN THE CAR.

THEY DON'T SEE THE MARIJUANA, BUT THEY SMELL THE SMOKE.

DOES THAT ALLOW A POLICE OFFICER TO DO FURTHER INVESTIGATION INTO WHAT'S IN THE CAR OR THINGS SUCH AS THAT ACCORDING TO STATE LAW TODAY? IT WOULD.

AND CERTAINLY IF THERE WERE IF THERE WAS MARIJUANA IN PLAIN SIGHT, IT WOULD HAVE ALLOWED THAT SEARCH AS WELL.

CORRECT. SO THEN IF THEY'RE IN THE CAR AND THEY DISCOVER, I DON'T KNOW, LET'S SAY A POUND OF COCAINE UNDER UNDERNEATH THE SEAT, THAT IS NOT IN PLAIN SIGHT.

WELL, THAT'S PART OF THAT INVESTIGATION.

IS THAT CORRECT? THAT WOULD BE CORRECT.

AND ANY OTHER THING, IF IT'S AN ILLEGAL GUN OR IF IT'S ANYTHING THAT THEY UNDERSTAND TO BE A VIOLATION OF STATE LAW? YES, SIR. OKAY.

SO NOW IF WE GO WITH THE ORDINANCE AND THE ORDINANCE IN CHAPTER IN SECTION 21 AND 83, A SAYS DENTON POLICE SHALL NOT CONSIDER THE ODOR OF MARIJUANA OR HEMP TO CONSTITUTE PROBABLE CAUSE FOR ANY SEARCH OR SEIZURE,

[02:55:02]

AND IF WE GO TO 21 DASH 80 B, IT SAYS THAT THE ONLY CIRCUMSTANCES IN WHICH IT DID POLICE OFFICER ARE PERMITTED TO ISSUE CITATIONS OR MAKE ARRESTS FOR CLASS A, CLASS B, MISDEMEANOR POSSESSION OF MARIJUANA, OR WHEN CITATIONS OR ARREST ARE PART OF THE INVESTIGATION OF A FELONY LEVEL NARCOTICS CASE THAT HAS BEEN DESIGNATED AS A HIGH PRIORITY INVESTIGATION BY DENT POLICE, OR THE INVESTIGATION OF A FILE A FELONY.

SO IF THIS ORDINANCE IS IMPLEMENT IS IS PASSED, THEN IF A POLICE OFFICER PULLS SOMEBODY OVER THE SAME FACTUAL SCENARIO THAT I DESCRIBED TO YOU AND THEY SMELL MARIJUANA, DON'T SEE IT.

AND THEY THIS ACCORDING TO THIS, MEANS THEY CAN DO NO SEARCHES.

AT LEAST THAT'S MY UNDERSTANDING, IF LEGAL NEEDS TO WEIGH IN ON THAT.

ACCORDING TO THIS POLICY, THIS THIS PROPOSED ORDINANCE, I'M NOT SAYING ACCORDING TO STATE LAW, I'M SAYING ACCORDING TO THIS POLICY, IF THIS POLICY WAS FULLY IMPLEMENTED. YES.

SO IF THEY IF THAT'S THE CASE, THEN THEY DON'T SEARCH.

AND SO IF THERE'S SOMETHING IN THERE THAT'S ILLEGAL, THEN AND AND NOT IN PLAIN SIGHT, OBVIOUSLY, IF IT'S IN PLAIN SIGHT THAT CREATES THAT PROBABLE CAUSE, THEN NO, HYPOTHETICALLY, TECHNICALLY, THAT MAY GO UNDETECTED.

IF THEY DON'T IF THEY DON'T SEARCH IT IN MY EXAMPLE, IF IT'S UNDERNEATH THE SEAT, CAN'T BE SEEN, IT'S NOT THERE.

SO THEN I READ WHERE IN.

BUT THAT.

BUT THAT WOULD BE.

BUT STATE LAW WOULD ALLOW THAT.

IS THAT CORRECT? IT WOULD.

OKAY. SO I GUESS MY QUESTION IS TO THE CITY ATTORNEY AND I'VE GOT A COUPLE MORE FOR CHIEF.

SO LET'S SAY IF THAT SCENARIO WERE TO PLAY OUT.

WHICH. WHICH IS DISPOSITIVE.

WHICH ONE IS THE PREVAILING RULES OR LAW IN THAT CIRCUMSTANCE? WELL, STATE LAW IS ALWAYS GOING TO TRUMP THE CITY LAW IF THERE'S A CONFLICT.

OKAY. ALL RIGHT.

SO THEN THAT BRINGS ME TO MY NEXT QUESTION, WHICH IS IN SECTION 21, 81 A NOPE, SORRY, WRONG ONE.

IT'S 2185 DISCIPLINE.

IT'S UNDER DISCIPLINE.

SAYS ANY VIOLATION OF THIS CHAPTER MAY BE SUB MAY SUBJECT TO DENTON POLICE OFFICER TO DISCIPLINE AS PROVIDED BY THE TEXAS LOCAL GOVERNMENT CODE OR AS PROVIDED IN CITY POLICY. THE TEXAS LOCAL GOVERNMENT CODE IS THAT WE'RE A CIVIL SERVICE.

THE POLICE DEPARTMENT IS A CIVIL SERVICE AGENCY.

IS THAT CORRECT? IT IS, THAT'S CORRECT.

AND WHAT WHAT GOVERNS CIVIL SERVICE DISCIPLINE IN THE STATE? MR. CITY ATTORNEY, IS THERE NO LOCAL GOVERNMENT CODE? SORRY, LOCAL GOVERNMENT CODE 143 IS THE CIVIL SERVICE IS A STATE LAW THAT REGULATES ALL DISCIPLINES OF POLICE OFFICERS, SWORN POLICE OFFICERS.

SO IF WE HAVE OTHER POLICIES THAT EXCEED CHAPTER 143 FOR DISCIPLINE, ARE WE ABLE TO DO THAT? AND I'M JUST TALKING ABOUT IN GENERAL, ARE WE ABLE TO OR 143 DEFINE SPECIFICALLY WHAT A POLICE OFFICER CAN BE DISCIPLINED FOR.

WHAT IS THE DISCIPLINE, WHAT ARE THE APPEALS PROVISIONS, ALL EVERYTHING CONCERNING THE NATURE OF DISCIPLINE OF A POLICE OFFICER, IS THAT CORRECT? CORRECT, YES.

OKAY. SO IF A POLICE OFFICER VIOLATES AN ORDINANCE THAT WE HAVE THAT IS TRUMPED BY STATE LAW, WE REALLY DON'T HAVE A MECHANISM FOR DISCIPLINE BECAUSE THAT WOULD NOT BE APPLICABLE ACCORDING TO SECTION 143, WE WOULD FOLLOW 143 ON THE APPLICATION.

ALL RIGHT. IF IT IF IT WAS IN 143, THAT COULD BE DISCIPLINED.

IF IT WASN'T, YOU COULDN'T BE DISCIPLINED.

RIGHT. I THINK THAT'S FAIR. YEAH.

OKAY. ALL RIGHT. AND SO I GUESS ALSO BACK TO THE SEARCH AND SEIZURE.

IT SAYS DENT POLICE SHOULD NOT CONSIDER THE ODOR OF MARIJUANA OR HEMP TO CONSTITUTE PROBABLE CAUSE FOR ANY SEARCH OR SEIZURE.

NOW, I'VE READ THIS THING PROBABLY 20 TIMES AND MAYBE THE THE NOT THE APPLICANT, THE ORIGINATOR OF THE ORDINANCE COULD HELP.

HELP ME UNDERSTAND THIS. BUT IF YOU SAW MARIJUANA OF ANY DEGREE, LET'S JUST SAY IT'S A WELL, I'M SO OLD SCHOOL, SO I MY MY MY LANGUAGE AND DEFINITION MAYBE.

BUT LET'S SAY IF YOU FOUND A JOINT OR A MARIJUANA CIGARET AND YOU SEE IT LAYING THERE, DOES THAT PROVIDE I MEAN, TODAY IT WOULD PROBABLY PROVIDE PROBABLE CAUSE FOR A SEARCH.

IS THAT CORRECT? RIGHT.

THIS ORDINANCE REALLY DOESN'T ADDRESS THAT, AT LEAST ON ITS FACE THAT I CAN SEE, BECAUSE IF THERE'S NO ODOR BUT YOU SEE IT NO MATTER WHAT THE AMOUNT IS THAT SAYS YOU CAN'T YOU CAN'T ISSUE A CITATION IF IT'S UNDER A A CLASS A OR B, BUT IF IT GETS YOU IN THE CAR, THAT'S A WHOLE DIFFERENT STORY OF WHAT IS IN THE CAR THAT MAY NOT BE IN PLAIN VIEW.

[03:00:07]

LET'S SEE. SO IN ARTICLE 21, 80 B, IT TALKS ABOUT THAT YOU CAN'T ISSUE THESE CITATIONS EXCEPT IN THE INVESTIGATION OF A FELONY LEVEL NARCOTICS CASE OR THE INVESTIGATION OF A VIOLENT FELONY.

I'M NOT A POLICE OFFICER.

I KNOW NOTHING ABOUT LAW ENFORCEMENT.

SO WHEN I SEE THE WORD INVESTIGATION, THE INVESTIGATION OF A FELONY LEVEL NARCOTICS, I'M ASSUMING THAT IF AN OFFICER IS OUT OF VEHICLE AND THEY'RE DOING THEY'RE LOOKING THROUGH THE CAR.

IS THAT CONSIDERED AN INVESTIGATION AT THAT POINT? IT CAN BE CONSIDERED A ROADSIDE INVESTIGATION.

A ROADSIDE INVESTIGATION.

BECAUSE I DIDN'T KNOW IF THIS THE INVESTIGATION OF A FELONY LEVEL NARCOTICS MEANT YOU'VE HANDED SOMETHING OVER TO A DETECTIVE AFTER THE FACT AND SAID YOU NEED TO GO INVESTIGATE THAT, WHICH THAT'S ALREADY HAPPENED.

YOU KNOW, THE CAR HAS ALREADY BEEN PULLED OVER.

SO THERE COULD BE A ROADSIDE INVESTIGATION PRELIMINARILY AND THEN SO WE'VE GOT FELONY LEVEL NARCOTICS ON ONE END AND WE GOT A VIOLENT FELONY ON THE OTHER.

TALKING ABOUT WHERE YOU CAN ISSUE, IS THERE A WHOLE LOT IN BETWEEN THERE? YOU'VE GOT A VIOLENT FELONY AND YOU'VE GOT A FELONY LEVEL NARCOTICS, WHICH I GUESS IS DRUGS AND YOU'VE GOT A VIOLENT FELONY.

YOU MEAN SOMEBODY BEAT UP SOMEBODY OR SHOT THEM OR WHATEVER.

YOU GOT STOLEN CARS.

YOU GOT STOLEN.

I MEAN, AREN'T THERE ALL KINDS OF OTHER TYPES OF ILLEGAL ACTIVITY BETWEEN THOSE TWO CONSTRUCTS THAT COULD BE DISCOVERED IN ONE OF THOSE ROADSIDE INVESTIGATIONS? YEAH. OKAY.

ALL RIGHT. I THINK THAT'S THOSE ARE MY QUESTIONS BECAUSE MY CONCERN IS AND MAYBE IT CAN BE ANSWERED WITH THE PUBLIC SPEAKER.

MY CONCERN IS THAT THIS NOTION OF ODOR, WHEN IT SAYS IS NOT PROBABLE CAUSE FOR ANY SEARCH, DOES THAT BECOME A DE FACTO POTENTIAL SHIELD FOR THINGS THAT ARE HAPPENING IN THE VEHICLE, THAT ARE NOT IN PLAIN SIGHT BECAUSE YOU CAN'T GO INTO A VEHICLE UNLESS YOU SEE SOMETHING, I GUESS IN PLAIN SIGHT OR SOMETHING'S HAPPENED.

EITHER THE TAGS ARE OUT, SOMEBODY'S GOT TO WARRANT SOMETHING THAT'S EXTERNAL.

IF IT'S NOTHING EXTERNAL, I MEAN, SO CORRECT ME IF I'M WRONG BECAUSE I DON'T KNOW THE LAW ON THAT.

THAT'S CORRECT. OKAY.

SO THOSE ARE MY CONCERNS.

AND QUITE HONESTLY, MY CONCERN IS I MEAN, WHAT I'M HEARING NOW IS THAT THERE ARE THINGS THAT IN THIS ORDINANCE THAT THERE ARE STATE LAWS THAT HAVE A DIFFERENT TAKE ON THE ORDINANCE, THAT HAVE DIFFERENT OPPORTUNITIES OR ACTIONS THAT POLICE OFFICERS CAN TAKE, WHICH MEANS THERE'S A CONFLICT.

AND WHAT I HEARD THE CITY ATTORNEY JUST SAY, THAT STATE LAW ALWAYS TRUMPS MUNICIPAL LAW IF IT'S OCCUPYING THAT FIELD.

AND SO I JUST WANT TO POINT THAT OUT BECAUSE, I MEAN, I'M GOING TO VOTE TO TAKE IT TO THE BALLOT.

THERE'S NO QUESTION ABOUT THAT.

BUT I WANT TO UNDERSTAND AND THAT'S WHY I WANTED TO ASK YOU THOSE QUESTIONS WHAT ARE THE IMPLICATIONS IF THIS PASSES REGARDING HOW OUR OFFICERS CONDUCT THEMSELVES ON TRAFFIC STOPS WITH THE DIFFERENT FACTORS, AND THEN WHAT TYPE OF DISCIPLINE, IF ANY, ARE THEY SUBJECT TO SIMPLY FROM THIS ORDINANCE, THE LOCAL ORDINANCE.

AND WHAT I'M HEARING IS THAT IF IT'S NOT IN CHAPTER 143, IT'S NOT SUBJECT TO 143, THEN THAT'S WHAT GOVERNS OF POLICE OFFICERS DISCIPLINARY PROCEDURES.

WHAT THEY CAN BE DISCIPLINED FOR IS THAT.

IS THAT A CORRECT KIND OF GENERAL STATEMENT? MR. CITY ATTORNEY YEAH, UNLESS YOU HAVE SOMETHING TO ADD, CHIEF.

I THINK THAT'S A FAIR REPRESENTATION OF THE LAW, WHICH IS 143 IS GOING TO GOVERN HOW I WOULD DISCIPLINE HAPPENS AND, AND WHAT A POLICE OFFICER CAN BE DISCIPLINED FOR OR IS THAT SOMETHING THAT'S MORE.

FLEXIBLE WITH EACH MUNICIPALITY OR IS IT? OCH THERE'S ONLY CERTAIN THINGS YOU CAN BE DISCIPLINED FOR.

OR IS THAT LEFT UP TO THE MUNICIPALITY? AND THEN IT JUST HAS TO GO INTO THAT RUBRICS OF HERE'S HOW THE PROCESS IS.

CHAPTER 143 AND I CAN ASK MR. CRONIN TO COME UP HERE. HE'S HE CAN EXPLAIN IT PROBABLY FAR MORE ELOQUENTLY THAN I CAN.

DEPUTY CITY ATTORNEY MICHAEL CRONIG UNDER CHAPTER 143, THERE ARE 12 LISTED ENUMERATED CATEGORIES VIOLATION OF THE LAW, NEGLECT OF DUTY, INTOXICATION OFF DUTY.

IT HAS TO IN ORDER TO DISCIPLINE AN OFFICER, IT HAS TO FALL WITHIN ONE OF THOSE 12 ENUMERATED CATEGORIES.

SO OK SO THEN AND I APPRECIATE THAT.

SO THEN IF THERE WAS GOING TO BE DISCIPLINE ISSUED PURSUANT TO THIS ORDINANCE, IF IT WERE TO PASS, IT WOULD HAVE TO FIT INTO ONE OF THOSE 12 CATEGORIES.

[03:05:10]

BUT YET THOSE ACTIONS TAKEN BY THE POLICE OFFICER WERE JUSTIFIABLE VIA STATE LAW.

THEN IT WOULD BE HARD TO SAY THEY BROKE THE LAW BECAUSE THEY DIDN'T BREAK STATE LAW.

THEY JUST MIGHT HAVE VIOLATED ONE OF OUR ORDINANCES.

IS THAT I MEAN, I'M JUST TRYING TO GET DOWN TO WHERE WE ALL UNDERSTAND WHAT'S GOING ON HERE.

I MEAN, BECAUSE THIS IS AN IMPORTANT THIS IS IMPORTANT IT'S IMPORTANT TO OUR COMMUNITY.

IT'S IMPORTANT TO OUR POLICE OFFICERS.

IT'S IMPORTANT SO WE UNDERSTAND AND NOT HAVE A BUNCH OF CONFUSION OUT THERE.

SO IS THAT IS THAT THE CASE? THAT STATE LAW, IF IT OCCUPIES THAT SPACE PRETTY WELL, TRUMPS MUNICIPAL CODES AND ORDINANCES? IF. YES, AND I THINK THE CHIEF WOULD AGREE WITH THIS STATEMENT, I DON'T BELIEVE THE CHIEF IS GOING TO DISCIPLINE AN OFFICER WHO IS COMPLYING WITH THE LAW, WHO'S DOING ACTIONS THAT ARE AUTHORIZED BY THE LAW.

AND I CAN TELL YOU, I'VE DONE THIS FOR ALMOST 30 YEARS OF REPRESENTING THE CITY IN DISCIPLINARY APPEALS, THAT IF AN OFFICER IS DOING THEIR DUTY WITHIN STATE LAW, A HEARING EXAMINER ON AN APPEAL IS NOT GOING TO UPHOLD DISCIPLINE WHEN THE OFFICER IS DOING WHAT THE LAW ALLOWS THEM TO DO.

OKAY. ALL RIGHT.

AND AND IF THERE'S A IF THERE'S A CONFLICT OR A DISPUTE, THEN IF AN OFFICER THINKS THAT THEY'RE UNJUSTLY, UNJUSTLY DISCIPLINED, THEN THEY GET REPRESENTATION, THEN THE CITY PROBABLY HAS TO GET REPRESENTATION OR IT USES IN-HOUSE COUNSEL.

AND THEN THERE'S, I GUESS, SOME TYPE OF HEARING OR SOMETHING LIKE THAT.

THAT'S CORRECT. OKAY. ALL RIGHT.

LET ME JUST SEE IF I HAVE ANY MORE QUESTIONS ON THIS.

OKAY. SO THE LAST ONE IS ON.

IT'S PROBABLY PRETTY MINOR.

ON SECTION 21, DASH 81, IT SAYS A CLASS C MISDEMEANOR CITATION FOR POSSESSION OF A DRUG RESIDUE OR DRUG PARAPHERNALIA SHALL NOT BE ISSUED IN LIEU OF A POSSESSION OF MARIJUANA CHARGE.

I DON'T KNOW IF THAT'S SAYING THAT.

THAT. THERE'LL BE NO MORE CITATIONS ISSUED FOR DRUG RESIDUE OR DRUG PARAPHERNALIA.

IF THERE'S NO IF THERE'S NO IF THERE'S A LACK OF ABSENCE OR PRESENCE OF MARIJUANA, I DON'T KNOW WHAT IT MEANS IN LIEU OF.

I MEAN, ARE THOSE SEPARATE I MEAN, CAN YOU CHARGE SOMEONE WITH DRUG RESIDUE AND DRUG PARAPHERNALIA JUST AS A STAND ALONE CHARGE? AS I READ IT.

AND AGAIN, THE AUTHOR CAN CORRECT ME IF I'M MISINTERPRETING MYSELF, BUT AS I READ IT SAYS THAT THE MISDEMEANOR CITATION FOR POSSESSION OF DRUG RESIDUE OR PARAPHERNALIA SHOULD NOT BE ISSUED IN LIEU OF POSSESSION OF A MARIJUANA CHARGE, MEANING THAT IF THEY HAVE A QUANTITY OF MARIJUANA THAT'S I GUESS, FOUR OUNCES OR BELOW, WE CANNOT ISSUE A CITATION FOR THAT.

OK. ALL RIGHT. I GOT YOU.

AND THAT'S THE AND THAT'S THE CLASS A.

CLASS B IS FOUR OUNCES OR BELOW EITHER ONE OF THOSE.

I DIDN'T KNOW WHAT THOSE WERE, WHAT THE STANDARD WAS.

OKAY. ALL RIGHT. THANK YOU, CHIEF.

THANK YOU, MAYOR, FOR YOUR INDULGENCE.

AND COUNSEL, I JUST I REALLY HAD SOME JUST QUESTIONS THAT I NEEDED TO HAVE ANSWERED.

ALL RIGHT. ANYONE ELSE? ANY QUESTIONS FOR STAFF? NO QUESTION. OH, COUNCILMAN BERT.

AND A MAYOR.

THIS QUESTION WOULD BE DIRECTED TO THE CHIEF.

HELLO. YOU DIDN'T HEAR MY QUESTION IS THAT MY STATEMENT? LET ME MAKE A STATEMENT FIRST.

I UNDERSTOOD THAT WE HAD ALREADY THEN WE HAD ALREADY BEEN NOTIFIED THAT THIS TYPE OF EVENT WAS NOT NECESSARILY A HIGH PRIORITY EVENT FOR OUR OFFICERS.

WE PREFER OUR OFFICERS TO GO TO A BURGLARY IN PROGRESS OR SOMETHING OF THAT NATURE, RATHER THAN TO PRIORITIZE AN OUNCE OF WEED OR REEFER OR WHATEVER IT'S CALLED.

THAT'S WHAT I WANTED TO SAY IT WAS.

HE'S OLD ENOUGH TO REMEMBER REEFER.

SO. BUT ANYWAY.

SO WE WENT ALREADY KIND OF HAD THIS KNOWLEDGE THAT AS I UNDERSTOOD.

AM I CORRECT IN UNDERSTANDING THAT THIS WAS NOT SOMETHING THAT WAS A NECESSARILY HIGH PRIORITY ON ON ON THE POLICE.

POLICE DEPARTMENTS.

CORRECT. WITH THE DATA THAT WE PROVIDED EARLIER THIS YEAR WAS THAT WE HAD CUT IN-CUSTODY ARRESTS BY 85% BY UTILIZING

[03:10:01]

AND SO THIS IS THIS IS THIS IS ONE OF THE THINGS THAT I PERSONALLY AND I DON'T WANT TO MAKE IT PERSONAL BECAUSE I'M NOT UP HERE FOR PERSONAL REASONS. BUT, YOU KNOW, WITH MY EXPERIENCES, I'D ALREADY KNOWN THAT THIS WOULD NOT BE SOMETHING THAT I WOULD SUPPORT BECAUSE OUR LAW ENFORCEMENT IS OUT HERE TO ENFORCE THE LAWS THAT ARE ON THE BOOKS AND WE'RE PUTTING THEM THIS WOULD BE PUTTING THEM IN A, YOU KNOW, JUST KIND OF SQUEEZING THEM A LITTLE BIT.

SO. BUT WITH THAT BEING SAID, AND I DON'T WANT TO TAKE UP TOO MUCH TIME, I PERSONALLY WOULD NOT APPROVE OF THIS. MY LAW ENFORCEMENT, ALTHOUGH I WAS A POLICE OFFICER WHEN PROBABLY THE CHIEF WAS A TODDLER.

BUT IT DOES STAY WITH ME THAT THESE OFFICERS HAVE TO HAVE SOME SUPPORT OF SOME KIND.

AND I THINK IF WE I WOULDN'T HAVE DONE IT.

BUT I'M GLAD THAT WE HAVE AN OPPORTUNITY FOR THE PEOPLE TO SPEAK ON WHAT THEY WANT.

SO THAT'S WHERE I AM WITH THAT.

THANK YOU, MAYOR.

COULD I JUST DO ONE FOLLOW UP JUST FOR JUST FOR CLARITY? I WAS. I'LL SWING BACK AROUND.

IS THERE ANYONE ELSE OK.

COUNCILMAN WATSON. THEN WE'LL GO TO THE SPEAKER, BECAUSE I UNDERSTAND THAT THAT'S NOT YOUR PRIORITY, AND I PROBABLY AGREE WITH THAT.

MY CONCERN IS THAT WHEN YOU APPROACH A VEHICLE AND YOU SMELL MARIJUANA, THIS ORDINANCE SAYS YOU CANNOT SEARCH IT.

HAVE THERE BEEN INSTANCES OR I MEAN, IS IT PREVALENT? IS IT MINOR? IS IT WHEN YOU MIGHT SMELL MARIJUANA, YOU MIGHT NOT SEE IT, BUT UPON A SEARCH OF THE VEHICLE, YOU DISCOVER THINGS THAT ARE MUCH MORE SEVERE THAN THAT. AND IT'S NOT THE MARIJUANA CHARGE THAT GETS THE ATTENTION.

IT'S EVERYTHING ELSE THAT MIGHT BE DISCOVERED DURING THAT, AS YOU CALL IT.

ROADSIDE. AND SO SPECIFICALLY IN THE RECENT COUPLE OF WEEKS, THERE HAS BEEN INSTANCES WHERE OFFICERS HAVE RECOVERED ILLEGAL FIREARMS PURSUANT TO THE INVESTIGATION ON THE ROADSIDE, AS WELL AS POSSESSION OF CONTROLLED SUBSTANCES, WHICH ARE COCAINE, METHAMPHETAMINE.

SO A MUCH HIGHER LEVEL OF NARCOTICS OFFENSES THAN MARIJUANA.

SO THE MARIJUANA THEN BECOMES NULLIFIED IN THE COURSE OF THAT INVESTIGATION.

ALL RIGHT. THANK YOU, CHIEF.

THANK YOU, MAYOR, FOR YOUR NOTICE. THANK YOU, CHIEF.

SO ONE SPEAKER, NICK STEVENS, COME DOWN AND GIVE YOU YOUR NAME AND ADDRESS.

YOU'LL HAVE 4 MINUTES.

I'M SORRY. HOW MANY MINUTES FOR? YES. YEAH.

NICK STEVENS 417.

AMARILLO STREET WITH DECORUM.

DENTON. I'M ONE OF THE FIVE ELECTORS.

AND I CAME HERE TODAY KIND OF FOR THIS VERY REASON.

I WON'T HAVE ENOUGH TIME TO ANSWER ALL THE QUESTIONS, BUT THERE HAS BEEN A LOT OF INACCURATE INFORMATION THAT HAS COME FROM THE DAIS ON WHAT THIS ORDINANCE DOES AND DOES NOT. AND SO I WANT TO APPROACH SOME OF THAT FROM YESTERDAY, LAST WEEK, AS WELL AS SOME STUFF THAT YOU BROUGHT UP.

MR.. WHAT'S NUMBER ONE? MAYOR YOU HAD ASKED IF WE HAD MET WITH THE POLICE DEPARTMENT.

WE HAVE WE'VE HAD TWO BOARD MEMBERS MEET WITH CHIEF DIXON.

I'VE ALSO EMAILED THE CITY MANAGER AND THE CHIEF OF POLICE ASKING TO BE PLACED ON THE COMMUNITY BOARD TO HELP, YOU KNOW, INITIATE CONVERSATION WITH HIRING A NEW CHIEF OF POLICE. I WANT TO BE INVOLVED IN THAT PROCESS, SO I HOPE THAT I WILL BE.

THERE WAS SOMETHING ELSE BROUGHT UP LAST WEEK REGARDING OUR ORDINANCE, NOT MENTIONING ANYTHING ABOUT DRUGS IN SCHOOL ZONES.

THAT'S CORRECT. IT IS NOT.

WHEN YOU ALL VOTED ON MASKS.

MONTHS AGO, THAT WAS AN ARGUMENT.

I BELIEVE IT WAS THE MAYOR THAT BROUGHT UP THAT THE RESOLUTION THAT YOU WERE VOTING ON DIRECTED THE ISD TO REQUIRE MASKS.

YOU DON'T HAVE JURISDICTION OVER THAT.

WE DON'T HAVE JURISDICTION OVER THAT WITH THIS ORDINANCE, WHICH IS WHY IT WAS LEFT OUT OF THE ORDINANCE.

THE ISD'S HAVE THEIR OWN POLICIES THAT THEY ABIDE BY.

THERE IS THIS ARGUMENT MADE THAT MAYBE, PERHAPS IF SOMEONE CALLED 911 BECAUSE SOMEONE WAS SMOKING CANNABIS OUTSIDE, THAT THE COPS JUST WOULDN'T COME.

I'VE LIVED HERE 20 YEARS.

I HAVE NEVER MET THE KIND OF NEIGHBOR THAT WOULD CALL THE COPS BECAUSE THEIR NEIGHBOR WAS SMOKING A DOOBIE.

BUT MAYBE THAT EXISTS.

IF IT DOES EXIST, I'D LIKE TO POINT OUT SOMETHING THAT'S IN THE ORDINANCE THAT APPEARS TO BE IGNORED AND I THINK IS UNINTENTIONAL.

BUT IT'S JUST THE POINT THAT THERE IS A MECHANISM IN THIS ORDINANCE THAT IF YOU SEE CANNABIS, THE POLICE DEPARTMENT HAS EVERY RIGHT TO CONFISCATE IT FROM YOU.

THAT'S THE PUNISHMENT THAT IS IN PLACE.

IT IS ILLEGAL.

WHAT WE'RE TRYING TO DO IS JUST NOT INCARCERATE PEOPLE FOR SOMETHING THAT SHOULD NOT BE A CRIME.

AND I KNOW THAT THE CHIEF OF POLICE WANTS THAT AS WELL, ALTHOUGH HE'S HAD DIFFERENT WAYS OF TRYING TO MANAGE THAT HIMSELF.

[03:15:03]

I MEAN, I THINK WHAT'S DANGEROUS ABOUT THAT KIND OF ASSUMPTION AND I DON'T THINK THAT THIS IS YOUR HEART OR INTENTION, I THINK THAT THERE IS THIS ASSUMPTION THAT CANNABIS USE IS EQUATED TO VIOLENT CRIME.

STUDIES FROM PEOPLE FAR SMARTER THAN ME HAVE DEMONSTRATED THAT THAT IS NOT THE CASE.

I, I WISH PEOPLE ON THIS COUNCIL WOULD ADMIT TO USING CANNABIS BECAUSE I THINK IT WOULD MAKE THIS A LITTLE BIT MORE UNDERSTANDABLE.

I CAN SPEAK TO MYSELF, THOUGH, AND IT WAS ACTUALLY AFTER I TALKED TO YOU, I APPLIED FOR TEACUP BECAUSE I HAVE PTSD FROM A SEXUAL ASSAULT.

AS A CHILD, I USE IT FOUR TIMES A DAY AND I AM OFF OF ALL MY MEDICATION FOR THE FIRST TIME IN 15 YEARS.

THE PROBLEM IS, IS IT COSTS ME OVER $18,000 A YEAR.

AND I CAN'T SAY IN FULL TRANSPARENCY IF I BECAUSE I'M A RULE FOLLOWER, IF I KNEW THAT THE COPS WEREN'T GOING TO ARREST ME, I WOULD GO TO SOMEONE NEAR MY HOUSE AND BUY IT FOR LIKE $5 RATHER THAN $1,000.

AND SO YOU'RE PUNISHING INADVERTENTLY.

AND I KNOW AGAIN, THAT'S NOT THE POLICE DEPARTMENT'S GOAL.

PEOPLE LIKE ME WHO FRANKLY, I CAN'T AFFORD.

I DON'T I'M PUT BETWEEN A ROCK AND A HARD PLACE.

AND SO I WOULD JUST BE CAREFUL IN MAKING THE ASSUMPTION THAT THERE IS SOMETHING THAT POT SMOKING OR CANNABIS USE IS EQUAL TO VIOLENT CRIME.

YOU COULD MAKE THE SAME ARGUMENT FOR RED LIGHTS.

WE DON'T YOU KNOW, I DON'T KNOW THE RED LIGHT CAMERAS.

THAT MIGHT BE A BAD EXAMPLE, BUT I DON'T HAVE ANY MORE TIME.

BUT THAT'S WHAT I WANTED TO ADDRESS.

SO THANK YOU. WELL, AND I WANT TO EXTEND YOUR TIME A BIT, IF THAT'S OKAY.

IT'S JUST. I HAVE A QUESTION. SURE.

I HAVE A QUESTION FOR YOU.

I'LL DO MY BEST TO ANSWER.

CERTAINLY. AND IT GOES TO EXACTLY WHAT YOU TOUCHED ON.

RIGHT. SO CANNABIS ASSOCIATED WITH VIOLENT CRIME, RIGHT.

I'LL TAKE YOUR POINT AND I'LL CONCEDE THAT.

RIGHT. IF YOU'RE WILLING TO CONCEDE THAT.

VIOLENT CRIMINALS.

WATCH AND SUBVERT THE RULES.

AND IF A VIOLENT CRIMINAL SAID, HEY, I CAN BE IN DENTON AND POTENTIALLY SUBVERT THE RULES BY HAVING OPEN MARIJUANA AND OPENLY SAYING, HEY, I HAVE MARIJUANA, HERE IT IS, YOU KNOW, SO BOOK ME FOR THIS OR ADDRESS THIS ISSUE.

THAT'S SO THE OFFICER CAN'T SAY I DIDN'T SEE IT BECAUSE A NE'ER DO WELL IS TRYING TO OVERTLY SAY, HEY, I KNOW YOU HAVE THIS IN PLACE.

HERE'S HERE IT IS.

IT'S RIGHT. IT'S ON MY DASHBOARD.

SO YOU CAN'T LOOK AT ANYTHING ELSE.

I MEAN, IF YOU'LL JUST GIVE ME THAT, THERE ARE PEOPLE OUT THERE THAT I MEAN, THERE'S PEOPLE THAT WE HAVE A HURRICANE AND PEOPLE ARE SETTING UP FAKE ACCOUNTS TO STEAL MONEY.

GOOD THINGS BEGET BAD THINGS.

RIGHT. AND SO THAT'S ALL.

CAN WE AGREE THERE? I WANT TO GIVE A CAVEAT TO THAT, BECAUSE I THINK IT'S IMPORTANT WITH THAT ASSUMPTION THAT YOU'RE MAKING.

IF A POLICE OFFICER WERE TO BE PULLING SOMEONE OVER, IT'S NOT BECAUSE, YOU KNOW, THE COP THOUGHT IN THEIR HEAD THAT MAYBE THEY HAVE POT.

SO I BETTER GO. LOOK, IT'S THEY WENT THROUGH A RED LIGHT.

IT'S THAT THEY WERE SPEEDING.

I MEAN, IT'S THAT THEY WERE COMMITTING A CRIME THAT THEY SAW WITH THEIR OWN EYES THAT THAT'S WHY THEY'RE INVESTIGATING.

AND SO I WOULD I WOULD QUESTION THE POSSIBILITY THAT A COP WOULD WANT TO START AN INVESTIGATION BECAUSE THEY SAW CANNABIS RATHER THAN, FOR EXAMPLE, THEY WERE DRIVING RECKLESSLY.

DOES THAT MAKE SENSE? IT DOES.

AND I WISH I LIVED IN THAT WORLD, BUT I LOST ABOUT 2 HOURS SITTING IN DENTON COUNTY JAIL BECAUSE A DPS OFFICER DIDN'T LIKE ME IN THE KIND OF CAR I WAS DRIVING AND ULTIMATELY BROUGHT OUT A DRUG DOG, VIOLATED A BUNCH OF LAWS THERE, AND THEN SEIZED OUR CAR, PUT US IN THERE FOR A FEW HOURS ONLY TO FIND OUT THERE WAS NOTHING IN OUR CAR.

AND FOR THE FIRST TIME IN THE HISTORY OF DENTON COUNTY, THE DRUG DOG ALERTED TO CIGARET SMOKE IN A RENTAL CAR.

WOW. YOU KNOW, SO MY LIFE EXPERIENCE MAY BE A LITTLE DIFFERENT THAN WHAT YOU BEEN WHAT YOU'RE WITH YOUR.

AND I'M VERY SORRY TO HEAR THAT.

YEAH, YEAH. NO, IT'S IT'S OCCUPATIONAL HAZARDS, BUT.

BUT I JUST. I JUST SAY THAT, YOU KNOW, I UNDERSTAND WE'RE ON THE SAME PAGE.

THANK YOU VERY MUCH. LET'S SEE IF WE HAVE ANY OTHER QUESTIONS.

COME BACK. QUESTIONS FOR THE SPEAKER OR.

NO, I JUST WANTED TO NOTE THAT THAT I'M I APPRECIATE THE MAYOR TAKING THE TIME TO SORT OF MAKE THE APPLICANT'S CASE FOR HIM, THAT THERE ARE A NUMBER OF CONFOUNDING ISSUES THAT THAT SHOULD NOT BE.

AND I REALLY APPRECIATE THE MAYOR'S POINT ON THAT.

THANK YOU FOR THE FOR THE.

[03:20:02]

NO, I DON'T I DON'T ASSOCIATE THAT AND I DON'T THINK.

NO, NO, I UNDERSTAND. I UNDERSTAND.

I JUST WANT TO I JUST WANT TO SAY THAT AND MAKE THAT CLEAR.

IT WAS MORE TO UNDERSTAND FROM THE CHIEF WHAT ARE SOME POTENTIAL CONSTRAINTS? BECAUSE NO, I AGREE.

MOST PEOPLE DON'T DO THAT.

THEY'RE NOT VIOLENT. THEY'RE NOT I MEAN, ALCOHOL CAUSES MORE DAMAGE THAN THAN CANNABIS.

BUT YET THERE ARE PEOPLE WHO DO PARTAKE WHO ARE ALSO INVOLVED IN OTHER THINGS.

AND SO IT WAS JUST A MATTER OF UNDERSTANDING WHAT ARE THE LIMITATIONS ON OUR POLICE DEPARTMENT AND MOVING FORWARD IN THAT REGARD.

SO I APPRECIATE YOU BRINGING THAT UP, THOUGH, BECAUSE I DON'T WANT TO LEAVE THAT IMPRESSION.

THANK YOU. DO YOU MIND IF I JUST SAY ONE OTHER THING REAL QUICKLY? SURE. BUT I JUST WANTED TO THANK YOU ALL FOR THE OPPORTUNITY TO SPEAK, BECAUSE, YOU KNOW, AS YOU ALL KNOW, I HAVE TRIED REALLY HARD OVER THE PROCESS OF OUR OWN CAMPAIGN TO SPEAK WITH YOU ALL PRIVATELY.

AND EVEN WHEN WE AGREED OR DISAGREED, MAYOR, I RAN INTO YOU.

I WOULD CALL IT DIVINE INTERVENTION.

I WAS RIGHT BEFORE I WAS GOING IN TO VOTE AND I WAS LIKE, WOW, HE WAS ON MY LIST OF PEOPLE TO TALK TO.

AND YOU WERE VERY ENCOURAGING AND YOU SAID WE MIGHT NOT AGREE ON THE OUTCOME OF THIS, BUT I AM GRATEFUL FOR PEOPLE IN THE CITY THAT SEE THAT THEY FEEL LIKE THERE'S A PROBLEM AND THEY GET INVOLVED IN THE DEMOCRATIC PROCESS TO MAKE CHANGE.

AND AND I WOULD JUST LIKE TO POINT OUT THAT THIS IS A GOOD OPPORTUNITY OF WE CAN AGREE TO DISAGREE.

AND THIS IS AN ISSUE WHERE THERE WILL BE 100 DIFFERENT POINTS OF VIEW.

BUT AS LONG AS WE DIALOG BASED ON REALITY, WHICH IS WHAT YOU ALL HAVE BEEN DOING, I THINK THAT'S BETTER OFF FOR THE COMMUNITY MEMBERS.

SO I'M THANKFUL FOR THAT.

SURE. THANK YOU. APPRECIATE IT.

WELL SAID, OK THAT THAT'S THE ONLY SPEAKER WE HAVE.

I WILL TURN IT OVER FOR JUST GENERAL THOUGHTS, IF THERE'S ANY, BEFORE I TAKE THE MOVE.

IS THERE COMMENTS? ANYONE COMMENTING? COUNCILMEMBER DAVIS.

JUST REALLY BRIEFLY, MAYOR, I DON'T WANT TO RETREAD OLD GROUND THINGS I'VE SAID BEFORE ABOUT THE NEXUS BETWEEN VIOLENT CRIME AND MARIJUANA USE, NOT NECESSARILY BEING THE USERS, BUT BEING THE PEOPLE WHO WANT TO ROB THE DEALERS.

AND THAT'S WHAT I SEE IN MY AND MY PROFESSIONAL LIFE ON A VERY REGULAR BASIS.

ALSO REAL QUICKLY, ON THE SUBJECT OF DRUG FREE ZONES, THAT'S NOT NECESSARILY ISD PROPERTY.

THOSE ARE ZONES AROUND SCHOOLS THAT IN STATE LAW INCREASE THE THE PENALTY RANGE, THE DEGREE OF OFFENSE FOR A DRUG CRIME UP ONE LEVEL. IF THAT DRUG CRIME IS COMMITTED WITHIN A DRUG FREE ZONES, IT'S NOT ISD PROPERTY, IT'S ON OR AROUND ISD PROPERTY.

BUT THE THING I DO WANT TO POINT OUT TONIGHT IS KIND OF CONTEMPORANEOUS WITH THIS VOTE WE'RE ABOUT TO UNDERTAKE TO PUT THIS ON THE BALLOT, WHICH WE SHOULD, IS THAT WE ALSO NEED TO RECOGNIZE THAT.

JUST AS THE CITIZENS STEP INTO OUR SHOES FOR THE PURPOSES OF THIS ORDINANCE, IF THEY ELECT TO PUT THIS ORDINANCE ON THE BOOKS, THEN WE HAVE TO ALSO BE WILLING TO IN THE FUTURE.

AND THIS HAS COME UP IN DENTON BEFORE.

WE HAVE TO BE FRANK WITH OURSELVES AND FRANK WITH THE CITIZENS THAT IT MAY BE NECESSARY FOR US TO AMEND THIS ORDINANCE IN THE FUTURE IF WE'RE SUED BY A POLICE UNION BECAUSE THERE'S SOME PERCEIVED DISCIPLINARY ISSUE, IF WE ARE CALLED OUT IN AUSTIN LIKE WE HAVE BEEN BEFORE, AND THERE'S A NEW STATE LAW THAT MIGHT AS WELL SAY DENTON AT THE TOP OF IT, WE NEED TO BE FRANK WITH OUR CITIZENS AND LET THEM KNOW THAT IT'S OUR RESPONSIBILITY TO AMEND THIS ORDINANCE IN THE FUTURE, IF IT IS ADOPTED, TO MAKE IT COMPLY WITH STATE LAW OR AS A RESULT OF LAWSUITS.

SO I JUST WANT TO PUT THAT OUT THERE SO EVERYBODY KNOWS SO THAT WE'RE NOT HIDING THE BALL.

IT MAY BE NECESSARY TO AMEND THIS IN THE FUTURE IF THE CITIZENS ENACTED OK ANYONE ELSE.

I DO HAVE A QUESTION BEFORE WE TAKE THE MOVE IN, CHIEF.

COULD YOU SPEAK TO THAT, THE DRUG ZONES? BECAUSE THAT IS A CONCERN.

I MEAN, THERE'S A LOT LOTS OF CONCERNS, BUT THAT IS ONE THAT I DON'T THINK WE'VE WE'VE SPOKEN TO DIRECTLY.

SO HOW DOES THE ORDINANCE AS READ RIGHT.

VERSUS CURRENT STATE LAW? WHAT IS WHEN IT COMES TO SCHOOL ZONES, WHAT IS ARE DRUG FREE ZONES AROUND SCHOOLS? SO IT DOESN'T IT DOESN'T CALL OUT THE 1000 FEET AROUND A SCHOOL, WHICH COULD ENCOMPASS A PRETTY GOOD SIZED AREA OF ANY NEIGHBORHOOD, DEPENDING ON WHERE THE SCHOOL IS.

SO AROUND, YOU KNOW, RIVERA ELEMENTARY, YOU'RE GOING TO TAKE UP IF YOU LOOK AT 1000 FEET CIRCUMFERENCE AROUND THAT SCHOOL, YOU'RE GOING TO CAPTURE A GOOD PART OF MLK, PASS

[03:25:01]

BUT THERE REALLY IS NO THE LAW IS BASED UPON PEOPLE BEING STOPPED WITHIN THAT 1000 FEET.

IT'S NOT PARTICULAR TO THE SCHOOL DISTRICT ITSELF.

IT'S SCHOOLS, PLAYGROUNDS, DAYCARE CENTERS.

SO YOU'RE REALLY TALKING ABOUT A DECENT AMOUNT OF SPACE IF YOU LOOK ACROSS THE CITY.

BUT AND SO I TAKE THAT POINT, BUT THEN TO KIND OF HELP ME UNDERSTAND THAT FURTHER, WHAT WHAT EFFECT WOULD THIS ORDINANCE, AS WRITTEN, HAVE ON WHAT YOU NORMALLY DO? SO YOU NORMALLY THERE'S AN ODOR WE INVESTIGATE.

IF WE TAKE THIS AT ITS WORD, IT SAYS CONFISCATE, DON'T INVESTIGATE OR WHATEVER IT SAYS.

I DON'T WANT TO PUT WORDS IN THE MOUTH.

I JUST WANT TO UNDERSTAND THE USE CASE DIFFERENCE.

I THINK THE PROBLEM WILL COME INTO PLAY NOW THAT SINCE THESE 1000 FEET DRUG FREE ZONES ARE IN, SO OFFICERS ARE ALLOWED TO CONTINUE TO DO WHAT THEY NORMALLY DO. AND IF YOU GO AROUND THE CITY AND YOU DRAW THOSE CIRCUMFERENCES AROUND EVERY DAYCARE, EVERY PLAYGROUND, EVERY SCHOOL, EVERY SECONDARY EDUCATION INSTITUTION, YOU END UP TAKING IN A LARGE PART OF THE CITY IF YOU LOOK AT A MAP.

SO YOU'RE GOING TO HAVE POCKETS WHERE THIS ORDINANCE WILL BE IN EFFECT, BUT LARGE POCKETS WHERE IT'S NOT.

SO THAT MAY CAUSE SOME CONFUSION.

I DON'T I DON'T KNOW. I CAN'T SEE.

GOT IT. SO IT'S NOT IN EFFECT IN THOSE POCKETS AS IT'S CURRENTLY WRITTEN.

THAT'S WHAT I JUST UNDERSTOOD FROM.

GOT IT. IT'S OKAY.

GOT IT. AND.

AND ANOTHER QUESTION BUT ESCAPES ME.

SO THANK YOU. APPRECIATE IT.

OK. COUNCILMAN.

MAGUIRE. I MOVE ADOPTION OF THE ORDINANCE ORDERING A SPECIAL CALLED ELECTION.

OK. COUNCIL MEMBER MCGEE SECOND.

OK MOTION BY COUNCILMAN MAGUIRE SECOND BY COUNCILMAN MCGEE DISCUSSION.

I'LL JUST SAY I AGREE WITH MY PEERS.

MY VOTE LAST LAST WEEK.

AND SO FOR THOSE TO TRACKING ALONG TO UNDERSTAND, I THINK THE I BELIEVE IN FOLLOWING THE RULES AS WELL.

AND THE RULES SAY IF A CITIZEN PUTS FORTH THE EFFORT AND GETS A PETITION, GETS THE SIGNATURES THEY NEED, THEN IT GOES TO THE CITY SECRETARY.

SHE VALIDATES THOSE.

IT COMES TO US.

WE ORDER ELECTION, IT GOES FORWARD.

THE CITIZENS ARE AT THE TOP OF THE ORG CHART IN THE CITY AND THEY DESERVE TO BE HEARD AT EVERY TURN.

NOW THAT THAT THAT ALLOWS THE QUESTION TO BE ASKED.

THAT SAME DOCUMENT THAT I BELIEVE IN SAYS THIS IS NOT ACTIONABLE.

AND SO I BELIEVE IN THAT DOCUMENT IN ITS TOTALITY.

AND SO NOT ONLY DO I BELIEVE IN MY POST AND READ OF THE CITIZENS OF DENTON, BECAUSE THAT'S WHO I REPRESENT AND IT'S IMPORTANT TO ME BE IN TUNE WITH THAT. BUT ABOVE AND BEYOND THAT, THE DOCUMENT AND THE OATH OF OFFICE.

I TOOK TALKS ABOUT THE STATE LAW WHICH I HAVE TO SUPPORT IN ORDER TO BE FILL OUT AN APPLICATION, TALKS ABOUT THE CITY CODE OF ORDINANCES, WHICH YOU HAVE TO SUPPORT TO EVEN APPLY TO BE IN THIS SEAT.

SO I'M NOT GOING TO VIOLATE THOSE.

I'M NOT GOING TO VIOLATE THE CITY CHARTER.

AND SO THE CHARTER CUTS BOTH WAYS ON THIS ITEM.

AND SO THAT'S THE CONCERN.

SO I THINK IT HAS A RIGHT TO GO BEFORE THE PEOPLE AND I DON'T THINK IT'S ACTIONABLE AND THAT'S BOTH BASED ON THE CHARTER.

AND IF THE CITIZENS WANT TO CHANGE THE CHARTER, THEN THAT'S THAT'S A HEAVY LIFT.

BUT THAT IS AN OPTION AVAILABLE TO THE CITIZENS BECAUSE THAT'S WHOSE CITY THIS IS SO COMFORTABLE PUTTING IT ON THE BALLOT, BECAUSE IT DESERVES TO BE BECAUSE THE CHARTER DIRECTS US TO OK.

ANY OTHER COMMENTS FOR YOU? GO. OK.

COUNCILMAN MCGEE. THANK, MR. MAYOR. AS I SAID LAST WEEK, I'M PROUD TO SUPPORT THIS.

I WANT TO THANK MR. STEVENS FOR COMING FORWARD.

I ALSO WANT TO THANK YOU AND THE OTHER ELECTORS OF DECRIMINALIZE DENTON.

I THINK, AS I SAID, THIS WAS A PEOPLE LED INITIATIVE, A PEOPLE POWERED INITIATIVE, AND I TO SUPPORT THIS GOING FOR THE VOTERS.

SOMETIMES THE THINGS THAT ARE DONE ALSO HAVE LARGER IMPLICATIONS.

AND I THINK THIS IS ONE IN PARTICULAR.

MY HOPE IS THAT.

WHEN THIS PASSES IN NOVEMBER, THE VOTE OF THE VOTE OF THE CITIZENS, IT WILL SIGNAL TO ELECTED OFFICIALS UP AND DOWN THE BALLOT ABOUT THE

[03:30:07]

ESSENTIALLY, IT WILL SIGNAL TO FOLKS THAT THIS IS WHAT PEOPLE WANT, AND THUS PUBLIC POLICY AND THE ENFORCEMENT OF PUBLIC POLICY WILL ALSO BE INFLUENCED, SHIFTED AND MOVED FORWARD TO REFLECT THE CHANGING ATTITUDES OF TEXANS AND FOLKS IN THIS COMMUNITY.

SO I LOOK FORWARD TO SUPPORTING THIS AGAIN ONE MORE TIME.

THANK YOU VERY MUCH FOR THE WORK THAT YOU ALL HAVE DONE, AND I WILL ABSOLUTELY BE MOVING ON THIS.

THANK YOU, MR. MAYOR. ALL RIGHT.

ANYONE ELSE SEE? NONE. COUNCIL MEMBER SEE YOU.

I COUNCILMAN MCGEE.

I MEAN, FOR TIM, I.

COUNCILMAN WATTS. COUNCILMAN BERT I.

COSMO DAVIS, I.

MAYOR HUDSPETH AS I AS WELL PASS A70 TAKES US TO OUR LAST ITEM.

[B. Consider approval of a resolution of the City Council of the City of Denton for the appointment of one member to the Board of Managers of the DENCO Area 9-1-1 District for a two-year term beginning on October 1, 2022 and ending on September 30, 2024, and providing an effective date.]

CONSIDER APPROVAL OF THE RESOLUTION OF THE CITY OF DENTON FOR THE APPOINTMENT OF ONE MEMBER ON THE BOARD OF THE DENKO AREA 911 DISTRICT FOR TWO YEAR TERM BEGINNING IN OCTOBER 1ST 2022, ENDING SEPTEMBER 30, 2024, AND PROVIDING AN EFFECTIVE DATE.

GOOD EVENING, MAYOR. COUNCIL.

HAVE A BRIEF PRESENTATION HERE.

THIS ITEM IS ABOUT A NOMINATION TO OUR REGIONAL BOARD OF MANAGERS EACH YEAR.

THE DENKYIRA NINE ONE DISTRICT WAS CREATED IN 87.

IT'S GOVERNED BY A BOARD OF MANAGERS.

OH, I'M SORRY. GO AHEAD.

SORRY. MY APOLOGIES.

GOT IT. THANK YOU.

SO I MADE THE 16TH.

I SENT AN INFORMAL STAFF REPORT, WAS SUBMITTED REQUESTING FOR NOMINATIONS TO THE DINKA BOARD OF MANAGERS.

NO NOMINATIONS AT THE TIME WERE SENT TO BY COUNCIL TO PUT ON THE AGENDA AND WERE SUBMITTED TO GENCO.

SO TWO NOMINATORS WERE NOMINEES WERE SELECTED BY PARTICIPATING CITIES.

OOPS. SORRY.

I'M SO SORRY. SO THIS YEAR, JIM CARTER'S TERM EXPIRES AND HE IS SEEKING TO BE REELECTED INTO THE BOARD OF MANAGERS FOR AN ADDITIONAL TERM.

WE RECEIVED A REQUEST FROM DENKO FOR A CITY VOTE ON THE STAFF NOMINEES, AND THEN THE TWO NOMINEES ARE JIM CARTER AND DAVID TERRY.

AND THAT'S REALLY ALL WE HAVE FOR THE COUNCIL TO MAKE A CHOICE BETWEEN THOSE TWO NOMINEES TO BE PRESENTED BACK TO DENKO TO BE A MEMBER OF THEIR BOARD OF MANAGERS.

OKAY. THANK YOU.

AND SO GREAT.

THANK YOU VERY MUCH. AND I'M GOING TO JUST GO AHEAD AND MOVE FOR I MOVE THAT.

WE APPROVED JIM CARTER TO BE REAPPOINTED.

HE'S A FORMER COUNTY ELECTED OFFICIAL.

HE SERVED THERE WELL AND CONTINUES TO BRING A LOT OF INSIGHT, A LOT OF RELATIONSHIPS AND EXPERTISE TO THAT SEAT.

NO, NO.

SHADE TOWARDS DAVID TERRY.

GREAT. GREAT. I'M SURE.

BUT JUST FOR FOR FOR JUST WANTING TO LEVERAGE THAT KNOWLEDGE BASE WE HAVE.

COUNSELOR WHAT'S I'LL SECOND THAT MOTION BY MAYBE HUDSPETH SECOND BY COUNCILMAN WATTS.

AND IF CONTINUED DISCUSSION, WE'LL JUST TAKE THEM IN ORDER.

IS THERE ANYONE ELSE THAT WOULD WANT TO BE RECOGNIZED OR MAKE A MOTION? CATHERINE MCGEE I THINK MR. MAYOR HAD AN OPPORTUNITY TO DIALOG WITH MR. CARTER. I AGREE. HE HAS A WEALTH OF KNOWLEDGE AND EXPERIENCE, REALLY LOOKING FORWARD TO SUPPORTING HIS STAYING ON THE BOARD AND CONTINUING THE WORK THAT HE'S BEEN DOING FOR SO MANY YEARS. SO VERY GOOD.

THEN LET'S LET'S VOTE.

SO. MAYOR HUDSPETH, UM, I.

COUNCILMAN WATTS, COUNCILMAN.

MAYOR PRO TEM. HI.

COUNCIL MEMBER. MAGUIRE, I.

COUNCIL MEMBER MCGEE I COUNCIL MEMBER BYRD COUNCIL MEMBER DAVIS.

I. IN THAT PASSES SEVEN ZERO.

THANK YOU VERY MUCH.

APPRECIATE IT. THAT TAKES US TO CONCLUDING ITEMS AND IN CONCLUDING ITEMS.

[6. CONCLUDING ITEMS]

I JUST HAVE ONE THING AND I'LL CHASE IT WITH AN EMAIL, BUT I'D LIKE TO SEE IF ON THESE IN THE BACKUP ARE AND MAYBE IN THE IN

[03:35:06]

I DON'T KNOW HOW COMPLEX THAT IS, BUT IT'S SO OFTENTIMES IT'LL SAY THIS BOARD RECOMMENDED APPROVAL, RIGHT? AND SO I THINK IF PEOPLE ARE TRACKING ALONG, MAYBE THEY HIT THERE'S A LINK THAT THEY CAN HIT TO TAKE THEM TO THAT MEETING.

I DON'T KNOW HOW MUCH I'LL EMAIL YOU JUST TO SOLIDIFY THAT, BUT BUT I DON'T KNOW HOW MUCH I DON'T WANT TO CAUSE A BUNCH OF WORK, BUT IF IT'S DOABLE, THEN THAT I THINK THAT'D BE GOOD TO HAVE EVERYTHING IN A CENTRAL LOCATION.

IT'S JUST AS SIMPLE AS PROVIDING A LINK SO WE CAN DO THAT.

AND THEN I JUST WANT TO GIVE CREDIT FOR THAT.

THANKS TO STAFF. THERE'S BEEN A COUPLE OF ISSUES IN THE NEIGHBORHOOD THAT THE COMMUNITY WHAT ARE THE CODE ENFORCEMENT? WHAT IS IT COMMUNITY? WHAT CAN WE.

YEAH, COMMUNITY SERVICES.

BUT THEY'VE DONE A LOT OF GREAT WORK AND HELPED OUT A TON.

SO I APPRECIATE THEM. AND IN THE PARKS DEPARTMENT, THEY'RE THEY'RE KIND OF JOHNNY ON THE SPOT EVERYWHERE DOING EVERYTHING.

SO I REALLY THANK THEM FOR THAT.

ANYONE ELSE? OK VERY GOOD.

AT 622 WILL CONCLUDE THE NIGHT'S MEETING AND WE'LL SEE YOU, I THINK NEXT WEEK.

* This transcript was compiled from uncorrected Closed Captioning.