[A. ID 26-0970 Receive a report and hold a discussion regarding an update from Denton County Transportation Authority (DCTA). [Estimated Presentation/Discussion Time: 45 minutes]]

REPORTS A I'D. 26-0970 RECEIVE REPORT AND HOLD A DISCUSSION REGARDING AN UPDATE FROM DENTON

COUNTY TRANSPORTATION AUTHORITY. >> GOOD AFTERNOON EVERYONE. >> GOOD AFTERNOON.

>> BE WITH YOU. I'LL START OUT BY THANKING BOARD MEMBER RUMOHR. COUNCIL MEMBER RUMOHR SERVES ON OUR BOARD. MR. PAT SMITH, YOUR ALTERNATE. I'M ALSO JOINED BY MR. AUSTIN FRITH, ONE OF OUR VICE PRESIDENTS AT THE AGENCY, AND MISS BRANDI BYRD WITH BYRD ADVOCACY AND CONSULTING, WHO HELPS US WITH STATE AND LOCAL GOVERNMENT AFFAIRS. I'M REALLY HAPPY TO BE WITH YOU TODAY.

CONGRATULATIONS TO ALL THE NEW MEMBERS OF COUNCIL, AND GLAD TO BE ABLE TO GET IN FRONT OF YOU AND TALK ABOUT THE DENTON COUNTY TRANSPORTATION AUTHORITY. IF I HAVEN'T MET YOU BEFORE, JUST BY WAY OF BACKGROUND, I'VE BEEN AT THE AGENCY SINCE 2021, BEEN THE CEO SINCE 2022, STARTED MY CAREER IN THE AIR FORCE AS A CIVIL ENGINEER OFFICER, THEN WENT TO WORK IN THE PRIVATE SECTOR IN ENGINEERING AND CONSULTING. I'M A CIVIL ENGINEER BY DEGREE.

THEN IN THE CLASS ONE RAILROAD SPACE AND THEN CAME TO THE AGENCY. LIKE I SAID, IN 2021, I LIVE IN DENTON COUNTY, BEEN HERE SINCE 2010. AND JUST IT'S A PRIVILEGE TO SERVE THE THE TOWN WHERE I'M LIVING AND RAISING MY FAMILY. SO WE START EVERYTHING WE DO AT DCTA WITH SAFETY. WE MEASURE OUR OUTCOMES PRIMARILY THROUGH SAFETY, SERVICE AND RIDERSHIP. AND SO WE WANT TO CARRY THAT FORWARD HERE. SO THIS SLIDE THAT YOU'RE LOOKING AT SHOWS US SAFETY PERFORMANCE YEAR TO DATE ON THE GO ZONE SERVICE, ON OUR BUS SERVICE AND ON THE TRAIN SERVICE WE MEASURE ON THE GO ZONE SERVICE AND THE BUS SERVICE COLLISIONS ON AN INCIDENT FREQUENCY RATIO BASIS. EVERY HOW MANY INCIDENTS PER 100 000 MILES? FOR REFERENCE, WE DRIVE ABOUT THREE AND A HALF, THREE, 3.5 MILLION MILES A YEAR ON THE GO ZONE SERVICE. SO 55 VEHICLES RUNNING AROUND 365 DAYS A YEAR FOR VARIOUS HOURS DELIVERS ABOUT 3.5 MILLION MILES ON THE BUS SERVICE. IT'S ABOUT 800,000 MILES A YEAR. GREEN MEANS IT'S A NON PREVENTABLE INCIDENT, MEANING SOMEONE ELSE WAS CAUGHT THE CAUSE OF THE ACCIDENT. THE BLUE LINE IS THE OPPOSITE OF THAT. AND SO WHAT YOU SEE IS WE TREND ON THE GO ZONE SIDE THROUGH JUNE. WE'RE TRENDING BETTER THAN WE WERE LAST YEAR 0.16 VERSUS 0.34. ON THE BUS SERVICE.

WE'RE SLIGHTLY BETTER THAN WE WERE LAST YEAR, 0.69 VERSUS 0.72. AND RAILROAD EQUIPMENT INCIDENTS SO FAR THIS YEAR ARE AT ZERO ON THE SERVICE SIDE. THE OTHER THING THAT WE MEASURE, WE MEASURE ON TIME PERFORMANCE. AND THEN ON THE GO ZONE SERVICE, WE MEASURE SEAT UNAVAILABILITY AND WAIT TIME. AND SO ON THE TOP LEFT YOU SEE OUR ACCESS SERVICES FOR ELDERLY AND DISABLED SERVICES. WE'RE RUNNING AT 9,899% ALL YEAR LONG. THAT'S A GREAT OUTCOME AND ■A PLACE THAT WE PLAN TO STAY. THE OTHER REASON THIS IS REALLY IMPRESSIVE IS BECAUSE WE HAVE WORKED SIGNIFICANTLY OVER THE YEAR TO CONSOLIDATE ROUTES AND VEHICLES TO BE MORE EFFICIENT.

AND SO TRIMMING THE FLEET, DELIVERING MORE RIDES AND STILL MAINTAINING THAT 9,899% ON TIME PERFORMANCE. ON THE FIXED ROUTE SIDE, THE ON TIME PERFORMANCE, OUR STANDARD IS 90%, AND YOU SEE THAT WE'VE HOVERED JUST BELOW THAT. HAS ANYBODY WAITED IN TRAFFIC HERE IN THE CITY IN THE LAST YEAR OR SO? THE BUSSES ARE NOT EXEMPT FROM THAT. AND SO THERE'S LOTS OF CONSTRUCTION GOING ON, LOTS OF PROGRESS. BUT WE MONITOR THIS TO MAKE SURE THAT WE UNDERSTAND WHAT'S THE WHAT'S THE REMEDY IN TERMS OF IMPROVING OUTCOMES VERSUS ADDING VEHICLES AND THAT SORT OF THING. AND WE'RE PLEASED WITH WHERE WE ARE RIGHT NOW ON THE GO ZONE. SIDE SEAT UNAVAILABILITY. OUR STANDARD IS 17.5% AND GO NO HIGHER THAN THAT, MEANING 84% OF THE TIME YOU OUGHT TO BE ABLE TO GET A RIDE PROPOSAL ON GO ZONE. AND YOU SEE THAT WE'RE UNDER THAT METRIC. AND THEN ON THE WAIT TIME, THE STANDARD IS 24 MINUTES. AND SO WE'VE BEEN ABLE TO MAINTAIN THAT AS WELL OVER THE COURSE OF THE YEAR WHERE WE'VE SEEN DEMAND INCREASE. SO NOW WE'LL TALK ABOUT RIDERSHIP. AND THIS GRAPH IS SHOWING YOU FROM 2015 THROUGH 2025, THE

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OVERALL RIDERSHIP OF THE AGENCY AND THEN DENMARK DEMARCATED BY WHAT IS THE TYPE OF MODE DARK BLUE FOR BUS LIGHTER BLUE FOR TRAIN. YELLOW IS THE ON DEMAND AND GO ZONE SERVICE AND GRAY IS VANPOOL. AND WHAT I WANT YOU TO SEE HERE IS THAT DC TO IS BACK TO HISTORICAL LEVELS OF RIDERSHIP. WE EVEN BROKE AN ALL TIME RECORD IN FISCAL YEAR 2024. BUT OUR SERVICE MIX IS A LOT DIFFERENT. WE USE LANGUAGE ABOUT HOW TO TRY TO MOVE AS MANY PEOPLE AS WE CAN, AS COST EFFECTIVELY AS POSSIBLE, AND THAT SERVICE MIX AND THE DECISION TO GO GO FORWARD WITH THE GO ZONE SERVICE IS REALLY WHAT HAS ALLOWED US TO RECOVER RIDERSHIP. AND NOW WE'LL TALK LATER ABOUT HOW WE'RE USING THE DATA FROM THAT SERVICE TO PROVIDE MORE FIXED ROUTES.

LOOKING AT JUST THIS YEAR ON RIDERSHIP SIDE, WHAT YOU SEE IS WE'VE GOT TWO DIFFERENT NUMBERS AT THE BOTTOM. -1% LOOKS AT THE OVERALL RIDERSHIP FOR THE SYSTEM. AND AND THEN WE HAVE A NON UNT TOTAL. THAT'S 8%. HISTORICALLY A SIGNIFICANT AMOUNT OF OUR FIXED ROUTE RIDERSHIP HAS COME ON THE UNT SERVICE WHERE THAT'S A CONTRACT SERVICE THAT WE PROVIDE THE UNIVERSITY. AND AS THEY'VE EXPERIENCED ENROLLMENT DECLINES, WE'VE SEEN RIDERSHIP DECLINE SO THAT WE DON'T SPEND RESOURCES WHERE THEY'RE NOT BEING PRODUCTIVE. WE'VE WORKED REALLY CLOSELY WITH THEM TO OPTIMIZE THAT MIX AS WELL, AND ALSO TO TO SHOW THAT THE MEMBER CITY SIDE IS GROWING RIDERSHIP WHILE WE OPTIMIZE ON THE UNT SIDE. SO THAT'S WHY THE TWO DIFFERENT NUMBERS ON THE A TRAIN UP 4%. WE'VE SEEN THAT INCREASE IN THE LAST OVER THE LAST FOUR YEARS.

THE GO ZONE SERVICE IS BASICALLY A FIXED CAPACITY SERVICE. AND SO WE'RE NOT ALARMED BY A MINUS TWO OR A PLUS TWO IN EITHER DIRECTION. WE WOULD EXPECT THAT CAPACITY TO DELIVER CONSISTENT RIDERSHIP. ON THE ACCESS SIDE, YOU SEE THAT GROWTH YEAR OVER YEAR. AND THEN THE VANPOOL SIDE, WHICH WE WON'T GO INTO TODAY BECAUSE IT'S KIND OF A REGIONAL SERVICE, MORE AND MORE PEOPLE TEAMING TOGETHER WHERE THEY LIVE IN A COMMON PLACE, AND THEY WORK IN A COMMON PLACE TO RENT VANS AT A SUBSIDIZED RATE TO GET THEMSELVES TO AND FROM WORK.

THE REGION IS GROWING, AND THAT'S ONE OF THE ENGINES OF THAT. THE GRAPH ON THE UPPER RIGHT IS SOMETHING THAT WE'RE REALLY PROUD OF, AND THAT'S SHOWING YOU JUST ON THE BUS SERVICE. AND THAT IS THE MEMBER CITY BUS SERVICE. SO NOT UNT. WE ARE IN OUR FOURTH CONSECUTIVE YEAR OF FIXED ROUTE RIDERSHIP GROWTH ON THE ON THE BUS SERVICE AND THE GRAPH AND THE TABLE IN THE LOWER RIGHT SHOWS THAT WE'RE DOING THAT, NOT WITH THE TEN BUS ROUTES THAT WE USED TO HAVE IN 2019, BUT WITH THE THREE BUS ROUTES THAT REMAINED IN THE CITY OF DENTON. AND SO WE'LL TALK MORE ABOUT HOW THAT IS THE REALIZATION OF A VISION. SO HOW DID WE GET TO THIS OPTIMIZED OPTIMIZATION OF TRANSIT SERVICES AND MOVING AS MANY PEOPLE AS WE CAN AS COST EFFECTIVELY AS POSSIBLE? I WANT TO GET YOU CAUGHT UP, AND WE HAVE PLENTY OF TIME FOR QUESTION AND ANSWER, SO PLEASE FEEL FREE TO JUMP IN. BACK IN AUGUST OF 2024, GO ZONE LAUNCHED IN SEPTEMBER OF 2021. AND WHAT WE BEGIN TO SEE IN THE DATA WAS THAT A LOT OF TRIPS ON GO ZONE WERE HAPPENING IN PLACES WHERE THE BUS WAS OPERATING. THIS PICTURE IS SHOWING YOU A MAP OF ROUTES THREE, SIX, AND SEVEN, AND THOSE GREEN DOTS ARE ALL THE ORIGINS AND DESTINATIONS ON THE GO ZONE SERVICE. AND WE SAID IT LOOKS LIKE ABOUT 10% OF ALL THE GO ZONE TRIPS ARE HAPPENING IN A PLACE WHERE IF THOSE BUSSES WERE RUNNING ON A 20 MINUTE SCHEDULE, 7 A.M. TO 9 P.M. MONDAY THROUGH FRIDAY, WE COULD GET 10% OF ALL THE GO ZONE TRIPS ONTO THE FIXED ROUTE SERVICE. AND SO WE MADE SOME CHANGES TO THE APP. AND TODAY, IF YOU'RE TRYING TO GET A GO ZONE RIDE IN THIS TRAVEL SCHED BETWEEN THOSE HOURS AND MONDAY THROUGH FRIDAY, THE GO ZONE APP WILL TELL YOU, THANK YOU FOR YOUR REQUEST. THE BUS STOP IS RIGHT OVER HERE AND IT DIRECTS YOU TO THAT. AND SO WE'LL TALK JUST HERE IN A SECOND ABOUT THE THE RESULTS. THE RESULTS EXCEEDED OUR EXPECTATIONS. WHAT WE SAW WAS 10% OF GO ZONE CAPACITY REALLOCATED TO LEWISVILLE AND HIGHLAND VILLAGE, WHERE THERE ARE NO FIXED BUS ROUTES ALLOWED. TRANSIT RIDERSHIP IN DENTON TO GAIN 45,000 TRIPS PER YEAR. YOU LOST GO ZONE TRIPS, BUT YOU GAINED ABOUT TWICE AS MANY TRIPS, SO YOU HAD A NET GAIN. AND THEN LEWISVILLE AND HIGHLAND VILLAGE GAINED 12 AND 22% OF GO ZONE SERVICE AND TRANSIT TRIPS IN THEIR SERVICE AREAS BECAUSE OF THIS MODAL OPTIMIZATION. SO WE CREATED CAPACITY ON THE BUS NETWORK. PEOPLE STARTED MOVING AND WE SAW GREAT OUTCOMES. THEN THE SECOND SUMMER, AUGUST OF 20 OR SUMMER OF 2025, WE SAW THAT THERE WAS A LOT OF DEMAND FOR GO ZONE THAT WAS STILL AROUND THE UNIVERSITY CAMPUSES. AND AT UNT, WE HAD ALREADY SET UP A LITTLE AREA THAT SAID, IF YOU'RE TRYING TO MOVE IN THIS SPACE, YOU REALLY OUGHT TO BE TAKING THE BUS. AND SO THE GO ZONE APP WOULD DIRECT YOU IN THAT WAY. BUT THAT DIDN'T EXIST YET AT THE DISCOVERY PARK CAMPUS OR AT TEXAS WOMAN'S UNIVERSITY. SO WE IMPLEMENTED THOSE MEASURES, EXPANDED THAT GEOFENCE AROUND UNT, AND THAT ALSO HELPED TO FURTHER BOOST FIXED ROUTE RIDERSHIP. OVER THE COURSE OF THIS SAME TWO, THREE YEAR PERIOD, WE'VE BEEN WORKING WITH THE UNIVERSITY BECAUSE AS THEY BEGAN TO EXPERIENCE ENROLLMENT PRESSURES, WE SAW

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THAT RIDERSHIP WAS DECLINING ACROSS ALL THEIR ROUTES. AND THE THIS GRAPH HERE, THESE LETTERS ARE THE NAMES OF THE UNT ROUTES YOU MIGHT RECOGNIZE DISCOVERY PARK, CENTER PLACE, BERNARD STREET, EAGLE POINT, AND YOU'RE LOOKING AT YEAR OVER YEAR CHANGE. AND THEY'RE ALL GOING IN THE DOWNWARD DIRECTION. BUT WHAT WE WHAT WE REALIZED WAS IN THE PIE CHART OVER THERE, THAT THE TOP FIVE UNT ROUTES WERE REALLY DRIVING 80% OF THEIR RIDERSHIP. AND SO WE WORKED REALLY CLOSELY WITH THEIR STAFF. AND HATS OFF TO CLAYTON GIBSON AND JIM COFFEY HAVE JUST BEEN GREAT PARTNERS FOR US TO SAY, HEY, HOW CAN WE HELP YOU ALL BE MORE EFFICIENT WHILE WE'RE TRYING TO BE MORE EFFICIENT? AND WE SLOWLY, OVER TIME, CONSOLIDATED THE NUMBER OF UNT ROUTES FROM 14 AND 2023 DOWN TO 8 IN 2027. WHILE DOING SO, WE ALSO HAVE WORKED WITH OUR AGREEMENT WITH THEM, WHICH WAS SIGNED BACK IN 2018 TO TAKE SOME PRICE INCREASES BECAUSE THE COST OF SERVICES HAVE CERTAINLY CHANGED SINCE 2018. AND SO AGAIN, CAN'T SAY ENOUGH ABOUT OUR UNT PARTNERS AND THE WAY THAT THEY'VE WORKED WITH US IN THERE. WHAT'S INTERESTING IS THIS EAGLE POINT ROUTE. YOU SEE HOW IT'S THE ONLY ONE THAT'S GROWN OVER TIME. THOSE THREE ROUTES ON THE END CONSOLIDATED INTO EAGLE POINT, AND NOW EAGLE POINT IS WORKING BETTER. IT'S ALSO BETTER FOR THE STUDENTS BECAUSE IT'S LESS, LESS DIFFERENT ROUTES AND MOVING PIECES TO KEEP TRACK OF. AND SO A GOOD NEWS STORY THERE FOR DCTA, DENTON AND UNT IN THE LONG TERM. SO THIS IS I'VE JUST GIVEN YOU IN ABOUT FIVE MINUTES WHAT WE'VE BEEN WORKING ON FOR THE LAST FOUR YEARS. BUT WHAT HAS BEEN THE RESULT? THIS IS RIDERSHIP JUST IN THE CITY OF DENTON ON TRANSIT SERVICES MONTH TO MONTH FROM OCTOBER 2018, ALL THE WAY THROUGH THIS SUMMER. AND WHAT YOU SEE IN THE BLUE IS RIDERSHIP ON THE CONNECT SYSTEM THAT, YOU KNOW, CHANGED OVER TIME SIGNIFICANTLY BACK AT THE END OF THE TEENS EARLY 20S AND THE COVID 19 PANDEMIC CAUSED IT TO TAKE A REALLY BIG HIT. BUT THEN YOU SEE THE GO ZONE LAUNCH IN SEPTEMBER OF 2021. SO TRANSIT RIDERSHIP IN DENTON INCREASES SIGNIFICANTLY. WE SEE THE BUS SERVICE RIDERSHIP BEGIN TO TAPER. BUT IN JANUARY OF 2023, THE BOARD SAID, WE'RE GOING TO SET A STANDARD FOR OUR NETWORK. AND THAT'S WHERE WE GOT THOSE CORE THREE ROUTES THREE, SIX AND SEVEN. AND THEN YOU SEE AUGUST OF 2024, THE FIRST PHASE OF THAT ISP INTERMEDIATE SERVICE PLAN, PHASE ONE. AND NOW YOU SEE THAT BUS RIDERSHIP GROWING SIGNIFICANTLY. AND THEN IN SEPTEMBER OR SUMMER OF 2025, THAT PHASE TWO HAPPENED. AND YOU CAN JUST SEE THAT RIDERSHIP GROWING STEADILY OVER TIME. THERE ARE FEW, IF ANY, TRANSIT AGENCIES IN THE COUNTRY THAT CAN TALK ABOUT FIXED ROUTE BUS RIDERSHIP GROWTH GROWING FOR THE LAST FOUR YEARS. WE'RE REALLY PROUD TO BE IN THAT COMPANY, AND IT'S BECAUSE OF THAT DATA DRIVEN INVESTMENT.

AND SO WE'LL TALK ABOUT WHAT'S COMING NEXT FOR US. INTERMEDIATE SERVICE PLAN PHASE THREE IS POTENTIALLY WHAT IS NEXT FOR US. SAME METHODOLOGY ABOUT HOW ARE PEOPLE MOVING AROUND THE CITY RELATIVE TO BUS ROUTES. AND NOW IF YOU LOOK AT THIS MAP, WHAT YOU SEE, YOU CAN SEE THE OUTLINE OF THE SAME CONNECT THREE, SIX, AND SEVEN, AND THEN YOU SEE A BLUE BUBBLE ACROSS UNIVERSITY DRIVE, AND YOU SEE A BLUE BUBBLE ON THE LOOP BETWEEN THE OUR DAILY BREAD FACILITY AND THE GOLDEN TRIANGLE MALL. WHAT OUR DATA TELLS US IS THAT IF THIS BUS ROUTE WAS OPERATING, I'M SORRY. AND THIS YOU MIGHT RECOGNIZE AS A MODIFICATION OF THE UNT COLORADO EXPRESS ROUTE. NOW, THIS HAS ALWAYS BEEN PART OF THE CONVERSATION WITH UNT ABOUT WHY DOES NOBODY RIDE THE BUS IN THE SUMMER? IS IT BECAUSE THE BUSSES AREN'T RUNNING OR BECAUSE THE PEOPLE AREN'T HERE? WHAT WE KNOW IS THAT THERE'S DEMAND FOR GO ZONE IN THIS TRAVEL SHED THE ENTIRE TIME. AND SO WHAT WE SEE IS THAT IF THIS NETWORK WERE OPERATING ON A CONSISTENT YEAR ROUND BASIS, KIND OF LIKE WHAT WE'RE DOING TODAY WITH THREE, SIX, AND SEVEN, WE COULD CAPTURE 55% OF ALL THE 54% OF ALL THE GOES ON TRIPS IN THE CITY OF DENTON ON A FIXED ROUTE BUS NETWORK. AND THEN WE COULD TAKE THAT CAPACITY FOR GO ZONE AND GO AND DO OTHER THINGS WITH IT. AND SO WE'LL TALK ABOUT THAT IN A SECOND. THE WAY THAT WE MAKE THAT DECISION IS FOUND IN THAT GRAPH THERE ON THE ON YOUR RIGHT, THIS IS SHOWING YOU THAT THE COST PER TRIP ON GO ZONE, THE ORANGE LINE, VERTICAL AXIS IS COST PER PASSENGER, HORIZONTAL AXIS IS NUMBER OF PASSENGERS ON THE NETWORK, NOT NUMBER OF PASSENGERS IN ONE BUS, BUT NUMBER OF PASSENGERS MOVING AROUND THE NETWORK AT ANY GIVEN TIME. THE ORANGE LINE IS SHOWING YOU THAT THE COST PER PASSENGER ON GO ZONE. THE BEST IT'S GOING TO DO IS ABOUT $12 A RIDE. THAT'S BECAUSE THE VAN OUR COSTS $50. YOU TURN 4.5 TRIPS AN HOUR, DO THAT DIVISION.

IT'S ABOUT 1250 A PERSON. BUT ON THE BUS SIDE, WHILE THE BUS IS MORE EXPENSIVE TO PUT ON THE ROAD, YOU CAN PUT A LOT MORE PEOPLE ON THE BUS. AND SO THERE IS A CALCULABLE INDIFFERENCE POINT WHERE IT'S EITHER GO ZONE OR BUS. BUT WHAT ISP PHASE ONE TOLD US IS THAT IF YOU MAKE THE BUS AVAILABLE, PEOPLE ARE MORE APT TO USE IT. AND SO ■EVERY PASSENGER THEN THAT YOU ADD TO YOUR NETWORK THE COST FAVORABILITY BETWEEN THE BUS AND THE GO ZONE CONTINUES TO GO IN THE BUSSES DIRECTION. AND SO THIS IS THE CALCULATION THAT WE'RE DOING TO MAKE THE MAKE THE RECOMMENDATION TO ADD POTENTIALLY A ROUTE ON UNIVERSITY, A ROUTE ON THE LOOP,

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AND THEN TRYING TO MAKE THAT COLORADO EXPRESS ROUTE YEAR ROUND IN A PARTNERSHIP WITH THE UNIVERSITY. SO THEN WHAT DO WE GET TO DO WITH THAT GO ZONE CAPACITY? IF WE IF THE BOARD DECIDES TO MAKE THIS MAKE THIS DECISION, IT WOULD FREE UP ABOUT 32,700 SERVICE HOURS A YEAR ON THE GO ZONE SERVICE. SO A SERVICE HOUR IS HOW ONE GOES ON VAN DRIVING AROUND FOR ONE HOUR IN REVENUE SERVICE. SO 32,000 OF THOSE HOURS THAT WE COULD DO ANYTHING WE WANT, THAT WE WANT TO WITH. AND SO THE BOARD, THE DCTA BOARD GOT A MENU OF OPTIONS A FEW MONTHS AGO THAT SAYS, WELL, OPTION A IS WE COULD EXPAND THE DENTON BOUNDARY TO THE NORTH AND THE EAST TO CAPTURE COVERAGE ON SOME SCHOOL DISTRICT FACILITIES, BECAUSE WE SEE THAT IN LEWISVILLE. LEWISVILLE HIGH SCHOOL IS A MAJOR RIDERSHIP GENERATOR FOR OUR AGENCY. WE COULD CAUSE THE GO ZONE BOUNDARY TO GO WEST TO COVER THE DENTON ENTERPRISE AIRPORT, BECAUSE THAT'S SOMETHING THAT IS VERY IMPORTANT TO THE CITY FROM AN ECONOMIC DEVELOPMENT PERSPECTIVE AND FEEDBACK I'VE GOTTEN CONSISTENTLY SINCE I'VE BEEN HERE, AND WE COULD CONSIDER GOING DOWN SOUTH AND DRIVING BETTER SERVICE TIMES ON THE GO ZONE SERVICE FOR LEWISVILLE AND HIGHLAND VILLAGE, BECAUSE THEY DON'T HAVE FIXED ROUTE SERVICE. OR HOW COULD LEWISVILLE AND HIGHLAND VILLAGE RESIDENTS PERHAPS GET TO HOSPITAL? SCHOOLS, CHURCHES, NONPROFITS THAT ARE IN THAT PURPLE SQUARE THAT ACTUALLY FALLS WITHIN THE TOWN OF FLOWER MOUND? AND THIS WOULD NOT BE SERVICE FOR FLOWER MOUND RESIDENTS, BUT RATHER SERVICE FOR LEWISVILLE, HIGHLAND VILLAGE AND DENTON RESIDENTS WHO WERE TRYING TO MAKE IT INTO THAT AREA FOR THOSE KINDS OF ESSENTIAL TRIPS. AND SO THE DECISION THE BOARD WILL HAVE IN THE NEXT COUPLE OF MONTHS IS, DO YOU WANT TO DO BUSSES INSTEAD OF GO ZONE IN THE SERVICE AREA? AND IF THE ANSWER IS YES, THEN WHAT DO YOU WANT TO DO WITH THAT GO ZONE CAPACITY THAT'S GOING TO BE REMAINING. AND THEY GET TO PICK FROM THAT MENU. SO IN ADDITION TO THE GO ZONE SERVICE, WE'VE ALSO BEEN PROVIDING FOR A LONG TIME OUR ACCESS AND PARATRANSIT SERVICE, WHICH YOU SEE IN THE UPPER RIGHT, IS CONSISTENT DEMAND FOR ELDERLY AND DISABLED TRANSPORTATION IN THE CITY OF DENTON, JUST LIKE EVERYWHERE ELSE IN THE REGION. THIS IS ONE OF THE FASTEST GROWING POPULATION SEGMENTS THAT WE HAVE. THEY DEMAND OPTIONS, AND WE'RE PRIVILEGED TO BE ABLE TO PROVIDE THEM THAT SERVICE. BUT WHAT WE'RE BEGINNING TO LEARN ABOUT OUR ACCESS CUSTOMERS IS THAT 80% OF THEM ARE AMBULATORY. THEY DON'T NEED TO TO MOVE IN A WHEELCHAIR ACCESSIBLE VEHICLE. AND OFTENTIMES IT'S ONE WHEELCHAIR WE'RE MOVING AT A TIME, NOT MULTIPLE. AND SO THAT LETS US LOOK AT OUR FLEET AND SAY, IS THE RIGHT ANSWER, THE BIG CUTAWAY BUS THAT WE'VE DONE TRADITIONALLY, OR SHOULD WE? WE BE USING SMALLER, MORE NIMBLE VEHICLES THAT ALSO COST LESS AND PROVIDE BETTER SERVICE FOR PEOPLE WHO MAY NOT WANT A BIG BUS SHOWING UP AT THEIR HOUSE. AND SO MORE TO FOLLOW ON THAT AS WE CONSIDER THOSE SORTS OF EVOLUTIONS. AT THE SAME TIME, WE'VE ALSO BEEN WORKING ON A COUPLE OF MAJOR PROJECTS, INCLUDING THE A TRAIN ENHANCEMENT PROGRAM. I TALKED TO TO YOU ABOUT HOW THE A TRAIN HAS GROWN RIDERSHIP EVERY YEAR FOR THE LAST FIVE YEARS, BUT WE THINK IT NEEDS TO DO BETTER.

AND SO ONE OF THE WAYS THAT WE WANT TO MAKE IT DO BETTER IS TO GET IT TO MORE PLACES THAT PEOPLE WANT TO GO. ONE OF THOSE IS DFW AIRPORT. AND SO THE A TRAIN ENHANCEMENT PROGRAM IS ABOUT GETTING THE TRAIN TO GO TO DOWNTOWN CARROLLTON. A TWO MILE RAIL EXTENSION SOUTH OF TRINITY MILLS WILL GET YOU TO DOWNTOWN CARROLLTON. AND THEN BEYOND THAT, IN THE FUTURE.

WHAT IF THE TRAIN RAN ON 15 MINUTE FREQUENCY? BECAUSE IF YOU'RE ON A 15 MINUTE SCHEDULE, YOU REALLY DON'T CARE WHAT THE SCHEDULE SAYS. YOU SHOW UP AT THE PLATFORM AND BEFORE YOU CAN ASK, WHERE'S THE TRAIN? THE NEXT TRAIN IS PULLING UP. AND THEN THE LAST PART IS ABOUT EXPANDED SERVICE HOURS, BECAUSE YOU KNOW THAT THE TRAIN ENDS AT 10:00 AT NIGHT. AND AND IF YOU'RE DOING THINGS DOWNTOWN AFTER THAT, YOU'RE NOT ABLE TO GET BACK ON THE TRAIN. WHAT THE PROJECT AT THE TOP SAYS CURVE AND SPEED ENHANCEMENTS. AND I GOT A QUESTION ABOUT THIS THAT I WOULD LIKE TO ADDRESS IN ORDER TO MAKE 15 MINUTE HEADWAYS POSSIBLE, THE TRAIN HAS TO GO FASTER ON ITS CURRENT ALIGNMENT. AND SO THERE'S A SMALL PROJECT THAT WE CAN DO, AND WE HAVE FEDERAL GRANT MONEY TO DO IT THAT WILL INCREASE THE SPEED ON THE TRAIN ANYWHERE FROM 5 TO 15 MILES AN HOUR IN DIFFERENT SEGMENTS. AND COLLECTIVELY, THAT WILL SHAVE 1 TO 3 MINUTES OFF THE RUN TIME. UNFORTUNATELY, IT'S NOT ENOUGH OF A RUNTIME REDUCTION TO CHANGE THE SCHEDULE FROM A 30 MINUTE SCHEDULE DOWN TO A 25 MINUTE SCHEDULE. REALLY, WHAT IT WILL ALLOW THE TRAIN TO DO IS RECOVER FASTER IN THE NEAR TERM, RECOVER FASTER IF THE TRAIN BEGINS TO RUN LATE, BUT IT'S NECESSARY IN ORDER FOR US TO REALIZE THAT 15 MINUTE VISION. AND SO THAT'S WHY THAT SAYS CONSTRUCTION PENDING. WE'RE REALLY JUST WAITING ON THE FEDERAL RAILROAD ADMINISTRATION TO GIVE US THE GREEN LIGHT ON OUR GRANT SO THAT WE CAN MAKE SURE WE GET PAID BACK FOR THE INVESTMENT, AND THEN WE'LL BE UNDERWAY, IDEALLY BY THE END OF THIS YEAR. SAFETY, LIKE I SAID AT THE BEGINNING, IS THE MOST IMPORTANT THING WE DO. WE'VE MADE SIGNIFICANT INVESTMENT IN THE LAST FEW YEARS TO TO UPGRADE CAMERAS AND SECURITY ON ALL OF OUR VEHICLES AND ALL OF OUR FACILITIES. MORE THAN 600 CAMERAS ACROSS THE ENTIRE DCTA FLEET, BUSSES, TRAINS, ETC. AND ACROSS ALL OF OUR FACILITIES THAT FEED INTO A CENTRAL SECURITY OPERATION CENTER. YOU CAN SEE THE PICTURE OF THE SOCK, THE PICTURE OF THE THE CAMERAS ON THE BUSSES. AND THEN AS WE'VE PURCHASED NEW BUSSES, WE HAVE INSTALLED OR REQUESTED PAID FOR DRIVER PROTECTION BARRIERS THAT SEPARATE THE

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OPERATOR FROM THE GENERAL PUBLIC. THIS IS KIND OF THE UNFORTUNATELY, THE STATE OF THE ART IN THE TRANSIT INDUSTRY, AND IT HELPS SAFETY OF OUR OPERATORS AND THE PUBLIC. ALSO, WE'RE WORKING ON A TRANSIT ORIENTED DEVELOPMENT OPPORTUNITY BECAUSE ONE OF THE WAYS WE MAKE THE TRAIN MORE EFFECTIVE IN MOVING PEOPLE IS BY INTEGRATING IT INTO THE COMMUNITIES THAT WE SERVE. WE'VE BEEN WORKING FOR THE LAST COUPLE OF YEARS WITH OUR PARTNERS FROM LEWISVILLE TO CREATE A VISION FOR THE OLD TOWN LEWISVILLE STATION, WHERE DCTA OWNS 13 ACRES. WE. WE CREATED A VISION THAT SEES A MIXED USE LIFESTYLE SORT OF CENTER WITH SOME SORT OF REGIONAL DESTINATION LIKE HOTEL CONFERENCE CENTER. AND THEN ADJACENT TO THAT IS ABOUT 650 MULTIFAMILY UNITS, IN ADDITION TO ALL THE MULTIFAMILY UNITS GOING UP ALL OVER OLD TOWN ALREADY. AND SO THE OPPORTUNITY FOR US IS TO BEGIN THINKING REALLY CAREFULLY AND STRATEGICALLY AND CREATIVELY WITH YOU ALL TO THINK ABOUT WHAT WE COULD DO AT THE DOWNTOWN DENTON TRANSIT CENTER. THE MESSAGE, THE MESSAGE FROM DCTA AND OUR AND OUR BOARD IS, WE'RE READY TO FIGURE THIS OUT TOGETHER. CASSEY AND I HAVE ALREADY BEEN HAVING SOME OF THESE CONVERSATIONS AND LOOK FORWARD TO ENGAGING IN THAT DISCUSSION WITH YOU ALL. AND THEN THE TRIP PROGRAM, IF YOU'RE NOT FAMILIAR, THE TRANSPORTATION REINVESTMENT PROGRAM IS THE WAY BY WHICH DCTA GIVES BACK TO OUR MEMBER CITIES SOME OF THE SALES TAX THAT YOU GIVE US TO FUND PROJECTS THAT ARE TRANSIT AND MOBILITY SUPPORTIVE. OVER THE LAST FIVE YEARS, WE'VE RETURNED ABOUT $49 MILLION IN FUNDS TO OUR MEMBER CITIES. THAT'S JUST MORE THAT'S ABOUT 120% OF ONE YEAR OF SALES TAX COLLECTIONS.

THE AGENCY AUTHORIZES, WHILE DOING ALL OF THE RIDERSHIP INCREASES AND MODAL OPTIMIZATIONS AND ALL THAT SORT OF THING. SO WE'RE GLAD TO BE ABLE TO PARTNER WITH YOU IN THAT. I GET THE QUESTION A LOT. WHAT IS GOING TO HAPPEN TO TRIP IN THE FUTURE? SINCE 2021, I'VE BEEN WORKING WITH THE BOARD TO IDENTIFY WHAT DOES THE AGENCY NEED IN ORDER TO BE SUSTAINABLE IN THE LONG TERM, IN ORDER BY HAVING A LONG RANGE FINANCIAL PLAN THAT'S THAT'S LOADED WITH THE CAPITAL REPLACEMENTS WE'LL NEED FOR TRAIN VEHICLES, BUS VEHICLES, ETC. AND WE'RE BEGINNING TO GET THAT 20 YEAR FINANCIAL PLAN INTO VIEW. AND THE BOARD WILL HAVE THE OPPORTUNITY TO TO ADOPT A 20 YEAR LONG RANGE FINANCIAL PLAN JUST THIS MONTH. SO AS WE'VE AS WE'VE SEEN THAT IT MATCHES REALLY NICELY WITH THE BOARD'S RENEWAL OF THE TRIP POLICY THAT SAYS, WE'RE GOING TO LOOK AT THE TRIP PROGRAM EVERY YEAR. WE'RE GOING TO SEE WHAT MONIES ARE AVAILABLE AFTER THE AGENCY'S NEEDS ARE MET. AND THAT WAY WE CAN ALWAYS BE MAKING SURE THAT WE'RE PUTTING THE MONEY THAT WE HAVE IN THE RIGHT PLACES TO MOVE OUR EFFORTS FORWARD, AND YOUR EFFORTS FORWARD. I ALSO WANTED TO NOTE THAT AS WE'VE BEEN IN THE IN THE MODE OF PURCHASING NEW BUSSES, SOME OF TO REPLACE SOME THAT HAVE BEEN IN THE FLEET AS LONG AS SINCE 2010 TIME FRAME WELL BEYOND USEFUL LIFE. WE'VE REBRANDED OUR BUSSES TO MORE CLOSELY MATCH THE A TRAIN. WE'RE LOOKING FOR A UNIQUE DCTA BRAND IDENTIFICATION AND. AND THE TRAIN IS THE IS THE ICON OF THE AGENCY. AND SO YOU'LL RECOGNIZE THIS ON THESE NEW BUSSES THAT HAVE JUST BEEN DELIVERED. AND THEN OUR GO ZONE VEHICLES AS WELL ARE GETTING A REFRESH SO THAT WHEN PEOPLE SEE OUR VEHICLES ON THE ROAD OR ON THE RAIL, THEY'LL KNOW THAT IT'S DCTA. AND SO AGAIN, I'M GRATEFUL FOR THE OPPORTUNITY TO LEAD THE DENTON COUNTY TRANSPORTATION AUTHORITY AND TO PROVIDE YOU WITH THIS MESSAGE.

AND WE JUST APPRECIATE THE PARTNERSHIP AND ALL THE WORK WE'VE DONE TOGETHER OVER THE LAST SEVERAL YEARS, AND HAPPY TO ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE.

>> COUNCILMEMBER RUMOHR. >> THANK YOU, PAUL. I JUST WANT TO MAKE SOME COMMENTS HERE. AT THE BEGINNING, I JUST WANTED TO EMPHASIZE THE DCTA STAFF HAS HAS REALLY IMPRESSED ME WITH THEIR USE OF DATA TO TRY TO BE EFFICIENT, OPTIMIZE SERVICES, BUT ALSO TO FIND WAYS TO SAVE MONEY. AND HE DIDN'T EVEN HIT ON HALF OF THE STUFF THAT DC HAS BEEN DOING TO TRY TO MAKE BETTER USE OF OF MONEY. I DID ALSO WANT TO HIGHLIGHT THAT WAS A LONG PRESENTATION, A LOT OF INFORMATION. THERE'S BEEN JUST A LITTLE BIT GOING ON IN THE PAST YEAR, BUT ONE THING I WANTED TO HIGHLIGHT FROM THE PRESENTATION WAS THE WAY THAT GOES ON DATA IS BEING USED TO OPTIMIZE RIDERSHIP TO MAKE SURE THAT WE'RE USING THE MOST COST EFFECTIVE, EFFICIENT TRANSPORTATION MODE FOR THE RIGHT LOCATION. THERE IS A POINT AT WHICH BUSSES BECOME MORE COST EFFECTIVE, BUT THEN THERE'S PLACES WHERE BUSSES ARE NOT COST EFFECTIVE AND GOES AND ACTUALLY DOES MAKE MORE SENSE. SO I REALLY APPRECIATE THIS, THIS USE OF DATA TO REALLY MAKE SURE THAT WHERE THE ROUTES ARE GOING ARE THE BEST PLACE FOR FIXED ROUTE AND THAT GOES ON IS REMAINING WHERE GOES MAKES THE MOST SENSE. I ALSO DID WANT TO DO A SHOUT OUT FOR PAT SMITH, OUR ALTERNATE FOR BASICALLY FINDING HE, HE CONNECTED DC TO WITH PROFESSIONALS WITH THE URBAN LAND INSTITUTE. AND THEY DO SORT OF FREE ANALYZES OF POTENTIAL DEVELOPMENT SITES. SO I THINK THEY'RE GOING TO BE LOOKING AT OUR DC OR AT LEAST THE DOWNTOWN DENTON TRANSIT

[00:25:04]

CENTER OF LIKE, WHAT OPPORTUNITIES COULD THERE BE THERE TO BASICALLY MAKE GOOD USE OF THAT LAND BECAUSE TRANSIT IS ECONOMIC DEVELOPMENT. SO MAKING SURE THAT WE'RE REALLY TAKING ADVANTAGE OF THAT. AND I ALSO WANT TO THANK STAFF FOR A FEW MONTHS AGO, I SAID, CAN WE PUT OUR PRESENTATION SLIDES AVAILABLE FOR THE PUBLIC? BECAUSE BEFORE I KNOW I WOULD HAVE TO GO WATCH A VIDEO TO TRY TO GET THOSE SLIDES. AND SO STAFF HAVE STARTED PUTTING THE POWERPOINTS FROM THE BOARD MEETINGS AVAILABLE TO THE PUBLIC. SO YOU GUYS OR THE PUBLIC CAN GO LOOK AT THOSE AT ANY TIME. SO I DID WANT TO THANK STAFF FOR THAT AS WELL.

SO I APPRECIATE ALL THE STAFF IS DOING, AND I'M EAGER TO HEAR WHAT MY COLLEAGUES QUESTIONS

ARE. THANK YOU. >> YEAH. THANK YOU. THANK YOU FOR THAT. AND I WANT TO YOU YOU MENTIONED THIS. I WOULD I WOULD SAY THAT IF IF WE HAD NOT MADE THIS TRANSITION TO GO ZONE, WE WOULD NOT HAVE RECOVERED RIDERSHIP. THE TRANSIT INDUSTRY AVERAGE ACROSS THE UNITED STATES IS 80% PRE-PANDEMIC. IT'S WILD THAT WE'RE STILL TALKING ABOUT PRE-PANDEMIC, BUT TRANSIT RIDERSHIP HAS NOT RECOVERED. WE'RE AT 100% PLUS OF RECOVERY. SO CRITICAL FOR THAT. AND THEN LIKE, LIKE BOARD MEMBER RUMOHR SAID, THE DATA IS WHAT DRIVES WHERE WE KNOW WE

CAN MAKE BUS INVESTMENT THAT ARE GOING TO PAY OFF. >> SO. COUNCILMEMBER HOLLAND.

>> THANK YOU, MAYOR. THANKS FOR THE PRESENTATION. THAT'S VERY INTERESTING. YOU ALLUDED TO

VANPOOL. TELL ME MORE ABOUT VANPOOL. >> GREAT. SO THE REGION, NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS HELPS US ADMINISTER A PROGRAM FOR VANPOOL. AND WE HAVE A CONTRACT WITH ENTERPRISE ENTERPRISE, THE COMPANIES THAT DOES ENTERPRISE RENT-A-CAR. AND BASICALLY THE WAY THAT IT WORKS IS PEOPLE WHO ARE INTERESTED IN A VANPOOL CAN GO ON TO A PORTAL, SIGN UP, AND THERE'S A VANPOOL CAPTAIN, AND THEY'RE GETTING TOGETHER, PEOPLE WHO LIVE AND OR WORK IN CLOSE VICINITY TO THEM, THE VANPOOL CAPTAIN HAS THE KEYS TO THE VAN, PUTS THE FUEL IN THE VAN, ALL THAT SORT OF STUFF. BUT THE PEOPLE IN THE VAN ARE PAYING 50% OF THE COST OF THE VAN, AND THEN FEDERAL DOLLARS ARE PAYING THE OTHER 50%. SO IT'S A VERY COST EFFECTIVE WAY FOR GROUPS OF PEOPLE TO GET TO WORK, ESPECIALLY WHEN THEY'RE TRAVELING LONG DISTANCES. AND ONE OF THE ONE OF THE MOST INTERESTING THINGS IS THE DISTANCES BY WHICH THESE VANPOOLS ARE TRAVELING. WE'RE SEEING PEOPLE MOVING FROM NOT MOVING, BUT DRIVING ON A REGULAR BASIS FROM ARDMORE, OKLAHOMA, INTO THE METRO, INTO THE METROPLEX, OTHER PLACES IN SOUTHERN OKLAHOMA, INTO THE METROPLEX, IN THE IN THE TRI CITIES AREA, LEWISVILLE, GOING UP TO SHERMAN. AND SO IT REALLY IS IT GIVES US A GOOD PICTURE OF WHERE THE ACTUAL DEMAND IS FOR LONG DISTANCE TRANSIT. AND AS WE THINK ABOUT THE FUTURE,

WE START TO SEE SOME CORRIDORS THAT COULD MAKE SENSE. >> AND THE CAPTAIN DRIVES THE

VAN. YES. AND WHERE DOES THE VAN SLEEP AT NIGHT? >> AT AT THE CAPTAIN'S HOUSE.

>> IS THAT RIGHT? INTERESTING. VERY INTERESTING. I'M THE ONLY PERSON ON THE DAIS THAT DOESN'T KNOW THE COST OF WRITING A BUS OR GO ZONE. WHAT DOES IT COST IF I GET ON THE BUS?

>> SO WE HAVE A THREE HOUR OR A A MPM PASS. THAT'S A $1.50. YOU CAN RIDE ON THE BUS AS MANY TIMES AS YOU WANT IN THAT, IN THAT AM OR PM PERIOD. THE GO ZONE RIDES ARE $1.50 APIECE. IN DENTON. THERE'S A DISTANCE BASED MEASURE FOR THAT, THAT THERE'S AN INCREMENT $0.25 A MILE. ANYTHING ABOVE FOUR MILES, I BELIEVE. BUT YOUR RIDE WON'T BE MORE THAN $5.

>> AND THAT'S PAYABLE ON THE BUS ON THE GO ZONE. >> YOU CAN BUY YOUR PASSES ON THE BUS. YOU CAN BUY PASSES ON THE BUS. YOU CAN BUY PASSES THROUGH OUR WEBSITE. YOU CAN BUY PASSES TODAY AT THE DOWNTOWN DENTON TRANSIT CENTER ON THE GO ZONE SERVICE. YOU CAN PAY CASH TO THE DRIVER, OR YOU CAN PAY BY CREDIT CARD THROUGH THE APP.

>> INTERESTING. >> AND THERE IS ALSO A GO PASS APP THAT'S ADMINISTERED BY DALLAS AREA RAPID TRANSIT. YOU CAN BUY FARE THROUGH THAT AS WELL.

>> THANK YOU. I APPRECIATE THAT MY MY SON BOUGHT A NEW TRUCK AND IT'S AND IT'S GOT SOME KIND OF A THING THAT THAT ALLOWS IT TO BE DRIVERLESS KIND OF SCARES ME. BUT IS THAT IS THAT IN THE FUTURE ON A, ON A TRAIN? I MEAN, FOR ONE THING, YOU'VE TAKEN THE WE KNOW WHERE THE TRAIN'S GOING

TO GO. IS THAT IS THAT IN YOUR FUTURE? >> I THINK IT IS IN THE TRANSIT INDUSTRY'S FUTURE. THE. THERE'S A SYSTEM ON THE TRAIN TODAY CALLED POSITIVE TRAIN CONTROL.

BASICALLY, IT'S A COMPUTER OVERLAY ATOP THE SIGNAL SYSTEM, AND RAILROAD TRAINS CAN MOVE BASED ON AUTHORITY OF A SIGNAL BLOCK. BASICALLY, THE COMPUTER IS TELLING THE TRAIN, OKAY TO GO TO THE NEXT SEGMENT, OKAY TO GO TO THE NEXT SEGMENT. WELL, THIS COMPUTER OVERLAY WILL CAUSE THAT TRAIN TO SHUT DOWN. IF THE ENGINEER ON THE TRAIN EXCEEDS THEIR AUTHORITY. AND SO THE THE TECHNOLOGY EXISTS TODAY. IT HAS REALLY JUST BEEN THE CONVERSATION ABOUT HOW LONG DOES IT TAKE FOR THE THE POLICY TO CATCH UP WITH IT? JUST JUST LIKE DRIVERLESS TRUCKS.

>> YEAH. >> FREIGHT TRUCKS ON THE ROAD. >> FINALLY, SOME OF MY FRIENDS TELL ME THAT NOBODY RIDES THE TRAIN. WELL, YOUR STATS DON'T BEAR THAT OUT. I'M WONDERING IF YOU COULD DO ANYTHING TO ENHANCE THAT PERCEPTION TO TO, TO TELL THE STORY. YEAH. A SIGN

[00:30:02]

AT INTERSECTIONS. HEY, OUR RIDERSHIP IS UP 4% OR WHATEVER. >> YEAH, THAT'S A GREAT IDEA.

WE'VE WE'VE DONE, WE'VE DONE A LOT OF WORK ON SOCIAL MEDIA TO TRY TO GET THE WORD OUT ABOUT THE PEOPLE WHO USE THE TRAIN AND WHAT THE TRAIN HAS BEEN UP TO, ALL THAT SORT OF STUFF. GET THE, GET THE WORD ABOUT OUT ABOUT THE IMPROVEMENTS THAT WE'RE WE'RE GETTING. BUT THE FACT IS, THE TRAIN RIDERSHIP DOES NEED TO BE BETTER. BUT IT'S NOT TRUE TO SAY THAT IT'S NOT BEING RIDDEN AND THAT THE RIDERSHIP IS NOT GROWING. SO WHAT WE'RE DOING IN THAT REGARD, THESE LONG TERM PROJECTS, GETTING THE TRAIN TO DFW, LIKE IMAGINE IF YOU COULD GET ON THE TRAIN AT DOWNTOWN DENTON TRANSIT CENTER, GET TO DFW AIRPORT IN ABOUT AN HOUR, AND IT WOULD COST YOU $9. YOU'D ROLL YOUR SUITCASE OFF AT TERMINAL B, YOU WOULDN'T HAVE TO PAY TO PARK. YOU WOULDN'T HAVE TO RIDE THE SHUTTLE. THAT'S A GAME CHANGER. THE TRAIN'S GOT TO GET PEOPLE TO WHERE THEY WANT TO GO. THAT'S THE OTHER REASON THAT TRANSIT ORIENTED DEVELOPMENT IS SO IMPORTANT. CREATING DESTINATIONS ALONG THE CORRIDOR THAT CAUSE PEOPLE TO TO MAKE THAT CHOICE. BUT THE OTHER THING THAT THAT WE'RE MOBILIZING TO DO IS FIGURING OUT WHO ARE THE BUSINESSES THAT ARE WITHIN A MILE OF THE CORRIDOR AND WHAT KIND OF EMPLOYEES DO THEY HAVE AND WHERE DO THEIR EMPLOYEES LIVE? AND CAN WE SELL THOSE EMPLOYEES PASSES TO TRY TO, TO, TO GENERATE THAT RIDERSHIP?

>> THANK YOU. THANK YOU FOR YOUR TIME. THANK YOU. MAYOR. >> MAYOR PRO TEM.

>> THANKS FOR THE PRESENTATION. IT'S ONE THING TO PREPARE FOR A MEETING AND READ IT, BUT TO HEAR IT, I MEAN, I CAN TELL YOU'RE REALLY PASSIONATE ABOUT THIS AND I LEARNED A LOT. SO THANK YOU SO MUCH. THE COUNCIL MEMBER MADE ME THINK OF A QUESTION WHICH WAS, YOU TALK ABOUT THE LARGE AMOUNT OF USERS THAT ARE USING THE TRAIN. ANY IDEA? I DON'T KNOW IF THERE'S LIKE A STUDY THAT WOULD INDICATE THIS, BUT IF THERE IS LIKE PURPOSES FOR WHY PEOPLE USE THE TRAIN, AND IF YOU COULD RANK THOSE AS FAR AS WHAT PEOPLE ARE TRYING TO ACCESS OR

LOSE YOUR JOB, YOU KNOW. >> GREAT QUESTION. AND THIS IS, YOU KNOW, OFF THE TOP OF MY HEAD, WE DO HAVE THIS DATA AND I'VE, I'VE LOOKED AT IT JUST RECENTLY, WHAT I, WHAT I SEE MY FIRST IMPRESSION BY LOOKING AT IT IS OUR RIDERSHIP SKEWS PRETTY YOUNG. SO A LOT OF PEOPLE RIDE THE TRAIN TO GET TO AND FROM SCHOOL, WHETHER THEY'RE COMING UP TO DENTON OR THEY'RE GOING TO SCHOOL DOWN IN DALLAS. AND THEN IF YOU IF YOU'RE ON THE TRAIN AND YOU'RE THERE IN THE PEAK HOURS WHEN YOU'D EXPECT PEOPLE TO BE MOVING TO GO TO WORK, THEY'RE GOING TO WORK. OF ALL THE RIDERSHIP ON THE TRAIN, ABOUT A THIRD OF THE PEOPLE GET ON OR OFF EITHER AT TRINITY MILLS. A THIRD OF THE PEOPLE GET OFF AT DOWNTOWN DENTON TRANSIT CENTER, AND THE OTHER THIRD ARE SCATTERED THROUGHOUT. AND SO THAT TELLS US THAT IT REALLY IS A SERVICE THAT PEOPLE ARE USING, BECAUSE THEY FIND IT TO BE A MORE ATTRACTIVE ALTERNATIVE FOR THAN DRIVING FOR ESSENTIAL TRIPS BECAUSE OF THE WAY THAT DEMAND WORKS THROUGHOUT THE DAY.

>> OKAY. THANK YOU. THE ONLY OTHER QUESTION I HAD WAS ON IT WAS ABOUT SLIDE 12, AND YOU MIGHT HAVE SAID IT AND I JUST MISSED IT. BUT YOU HAD SAID THAT THIS REDEPLOYMENT WOULD ALLOW FOR 31,000 ADDITIONAL HOURS. WHAT DOES THAT TRANSLATE TO AS PEOPLE MOVED?

>> GREAT. GREAT QUESTION. SO SO 30 YOU SEE UP THERE 32,700 HOURS. THIS IS ALL APPROXIMATE BECAUSE WE'RE PLANNERS AND WE DO THE BEST THAT WE CAN. THE GO ZONE VEHICLE IN DENTON MOVES ABOUT 4.2 PASSENGERS PER HOUR. SO WHATEVER, 4.2 TIMES 32,700 IS, THAT COULD BE THE NUMBER OF TRIPS THAT WOULD GENERATE IF THOSE HOURS WERE REDEPLOYED IN DENTON, DOWN IN HIGHLAND.

HIGHLAND VILLAGE AND LEWISVILLE BECAUSE THE THE DEVELOPMENT PATTERN IS A LITTLE LESS DENSE.

THAT DROPS TO 3.8, 3.9, SOMETHING LIKE THAT. BUT BUT WE HAVE SEEN OVER THE COURSE OF THE LAST FOUR YEARS THAT THIS IS PRETTY FORMULAIC. YOU PUT THE VEHICLE OUT THERE AND A KNOWN PRODUCTIVITY AREA AND IT'S GOING TO DRIVE. IT'S GOING TO DELIVER THE TRIPS.

>> AND THAT WAS MY ONLY OTHER QUESTION. SO YOU'RE CONFIDENT THAT WE'RE REALLY EXPANDING GO

ZONE. WE'RE GOING TO HAVE MORE PEOPLE USING IT. >> WELL THAT THAT IS THAT IS WHAT THIS ISP PHASE THREE WOULD DO. YOU WOULD CREATE TRANSIT CAPACITY ON BUSSES WHERE WE KNOW THAT THERE'S DEMAND. AND SO WE SAW NOT 10% IMPROVEMENT, BUT 58% IMPROVEMENT IN ISP PHASE ONE. SO YOU'RE CREATING TRANSIT CAPACITY THERE. AND THEN THERE IS NO SERVICE CURRENTLY OUT AT THE AIRPORT AND UP IN THE NORTHEAST CORNER. AND SO THAT WOULD CREATE THE

OPPORTUNITY FOR THOSE PEOPLE TO MOVE AS WELL. >> THAT'S GREAT.

>> ALL RIGHT. THAT'S ALL I HAVE. THANK YOU SO MUCH, SIR. >> YEAH. YES. COUNCIL MEMBER

CHESHIRE. SORRY. >> THANK YOU. WELL, FIRST, I JUST WANT TO SAY THAT INFORMATION AND THE WAY IT'S BEING PRESENTED IS SO VERY HELPFUL. AND I THINK, YOU KNOW, THESE ARE ITEMS THAT COULD BE TALKED ABOUT FOR HOURS. AND I THINK THAT THE LACK OF SCHEDULING HOURS FOR THIS TOPIC IS BECAUSE IT'S SO WELL PRESENTED. AND I FIND THAT YEAR AFTER YEAR, THE MEASUREMENTS AND THE INFORMATION THAT YOU GIVE US REALLY HELP US UNDERSTAND WHAT'S GOING ON AND TRYING TO MAKE GOOD DECISIONS. SO FIRST OF ALL, I JUST WANT TO

[00:35:02]

SAY THANK YOU AGAIN, AS EVERYONE ELSE HAS MENTIONED FOR THE PRESENTATION. CAN YOU REMIND ME HOW MUCH LAND DOES DC TO OWN AT THE DENTON STATION? WE'VE BEEN TALKING ABOUT

DEVELOPING THAT, AND I KNOW. >> I DON'T HAVE THE ACREAGE OFF THE TOP OF MY HEAD, BUT I CAN

GET IT TO YOU. BUT IT IS THAT GREEN. IT IS THAT GREEN SQUARE. >> OKAY. BECAUSE I SEE THAT AND I'M WONDERING WHAT WHAT COULD BE DEVELOPED THERE. AND SO THAT'S EXCITING TO THINK ABOUT.

AND THEN THIS IS A COMPLETE SIDEBAR, JUST AN OPINION, BUT WE DON'T TALK ABOUT THE, WITH THE SUCCESS THAT WE HAVE HAD WITH THE FIXED BUS ROUTES AND UTILIZING TECHNOLOGY TO FIGURE OUT WHERE IT SHOULD BE, IT'S NOT DOESN'T SEEM TO BE BROUGHT UP FOR LEWISVILLE OR HIGHLAND VILLAGE. AND IS IT BECAUSE, AS YOU MENTIONED, IT'S JUST LESS DENSE AND WE DON'T HAVE THE

DENSITY IN THE AREAS THAT LEND ITSELF TO THE FIXED BUS ROUTE? >> GREAT QUESTION. SO WE HAVE BEGUN LOOKING AT THE LAST FOUR YEARS OF DATA TO SEE IF THERE ARE CORRIDORS IN LEWISVILLE WHERE THERE'S ENOUGH GO ZONE RIDERSHIP, THAT WE COULD FEEL FAIRLY CONFIDENT THAT IF WE PUT A BUS THERE, THAT IT WOULD DELIVER THESE KINDS OF OUTCOMES. HIGHLAND VILLAGE IS MUCH MORE DIFFICULT, BUT IN LEWISVILLE WE HAVE IDENTIFIED 3 OR 4 CORRIDORS AS CANDIDATES THAT WE'RE GOING TO BE DOING SOME MORE WORK ON BEHIND THE SCENES SO THAT ONCE WE GET THE DENTON NETWORK OPTIMIZED, WE CAN THINK ABOUT WHAT COULD HAPPEN DOWN THERE.

>> THANK YOU. AND I JUST WANT TO GIVE A SHOUT OUT, LOOKING AT THE REGIONAL TRANSPORTATION, NOT JUST REGIONAL, BUT JUST ACROSS TEXAS AND ACROSS THE NATION. AND FROM WHAT I HEAR.

YOU KNOW, DC TO REALLY IS. STAND OUT AS FAR AS WHAT WE'VE BEEN ABLE TO DO, THE INCREASES WE'VE SEEN, THE CHANCES WE'VE TAKEN, AND BASED ON THE NUMBERS AND THE WAY IT'S WORKED. AND SO I JUST WANT TO SAY THANK YOU AND HOW PROUD I AM. ALSO, I WANT TO SAY THANK YOU FOR THE OFF TIME THAT YOU SPEND WORKING IN COLLABORATION WITH TRINITY METRO, WITH DART, WITH THE REGIONAL TRANSPORTATION COUNCIL AND ALL THE OTHER GROUPS THAT YOU WORK WITH TO REALLY TRY TO MAKE IT WORK AS A REGION AND NOT JUST CARE ABOUT OUR LITTLE SLICE. AND SO I ALSO WANT TO THANK YOU PERSONALLY, AS WELL AS BRANDY BYRD, FOR ANSWERING MY PHONE CALLS AS I LEARN MORE AND MORE ABOUT TRANSPORTATION THAT I DIDN'T KNOW MUCH ABOUT BEFORE A COUPLE OF YEARS AGO.

AND SO JUST A PERSONAL THANK YOU AS WELL. AND BOTH OF YOU HAVE BEEN JUST OF IMMEASURABLE

HELP. >> WELL, SAME, I WOULD SAY THANK YOU TO YOU AS WELL. I'VE ENJOYED WORKING WITH YOU ON THE REGIONAL CONVERSATION, AND IT'S A GOOD PLACE TO BE HAVING GONE THROUGH THIS EVOLUTION IN THE LAST FOUR YEARS. AGAIN, THE HARD DECISIONS MADE YEARS AGO HAVE PUT DC IN A POSITION TO BE A LEADER IN THIS REGIONAL CONVERSATION. SO HATS OFF TO

YOU ALL. >> WELL AGREED AND THANK YOU. >> COUNCILMEMBER PERRY.

>> THANK YOU AGAIN FOR THE PRESENTATION. AS EVERYONE SAID, I REALLY APPRECIATED THE INFORMATION. I APPRECIATED THE WAY YOU DELIVERED IT TODAY TO HELP REALLY MAKE SURE IT WAS ABSORBED WELL, A QUESTION I HAD A COUPLE QUESTIONS IN TERMS OF, I'M EXCITED TO HEAR THAT MAYBE TWO MORE BUS ROUTES AND THEN A THIRD THAT WILL BE CONTINUED FROM UNT. WAS THAT ONE OF THE

MODEL EXAMPLES IN A AND B. >> THAT THAT. >> IS COLORADO EXPRESS WOULD BE

CONTINUED DURING NINE TIMES. >> THE WAY THAT IT WOULD WORK POTENTIALLY IS UNT WOULD CONTINUE TO FINANCIALLY PARTICIPATE IN THE HOURS THAT THEY HAVE TO RUN THEIR UNIVERSITY SCHEDULE, AND THEN DCTA WOULD PARTICIPATE TO ENSURE THAT SCHEDULE WAS CONSISTENT ON A YEAR ROUND BASIS, SO THAT WE COULD DIVERT THE GO ZONE CAPACITY INTO OTHER PLACES. BECAUSE AGAIN, THIS IS THIS IS VERY DENSE DEMAND IN THIS CORRIDOR.

>> YEAH, I'M EXCITED TO SEE POTENTIAL MORE ROUTES. WHICH BRINGS ME TO MY NEXT QUESTION, I APPRECIATE IT. WHEN TALKING ABOUT NEW BUSSES, IS THERE DO YOU HAVE A SCHOOL OF THOUGHT? DO YOU HAVE AN OPINION ON EV GRANTS FOR BUSSES RATHER THAN TRADITIONAL?

>> GREAT. SO YOU'RE TALKING ABOUT ALTERNATIVE FUELS. SO YES. GREAT QUESTION. WE HAVE THIS RECENT PURCHASE IS ALL DIESEL BUSSES. IT'S WHAT WE KNOW HOW TO OPERATE. IT'S WHAT WE KNOW HOW TO WORK ON. IT'S WHAT WE HAVE FUELING FACILITIES FOR ALL THAT SORT OF STUFF. WE ARE WORKING ON ALTERNATIVE FUELS PLAN THAT THAT COULD GENERATE A RECOMMENDATION THAT OUR ALTERNATIVE FUEL WOULD BE COMPRESSED NATURAL GAS OF ALL THE ALTERNATIVE FUELS. IT'S IT'S THE MOST COMMONLY USED, IT'S COST EFFECTIVE. AND THE OTHER TRANSIT AGENCIES IN THE REGION ARE OPERATING CNG BUSSES INSTEAD OF DIESEL. WE'VE BEEN TO THE GILLIG FACTORY. THERE'S ONLY TWO BUS MANUFACTURERS IN THE UNITED STATES THAT YOU CAN USE FEDERAL DOLLARS TO BUY BUSSES. WE'VE BEEN TO GILLIG. THEY BUILD THE BATTERY ELECTRIC BUSSES, AND THEY THEY THEMSELVES HAVE TALKED ABOUT HOW THE CHALLENGES OTHERS HAVE FACED IN MAINTAINING THEM, PAYING FOR THEM, SO ON AND SO FORTH. SO THE TECHNOLOGY IS THERE. WE'RE JUST NOT AT A

[00:40:01]

PLACE TO TO BE EARLY ADOPTERS OF THE TECHNOLOGY, BUT C AND G IS SOMETHING THAT COULD BE ON

OUR HORIZON. >> OKAY, THANKS. THE LAST THING IS KIND OF ROLLING OFF OF SOMETHING COUNCILWOMAN JESTER SAID WITH LEWISVILLE AND FINDING IDENTIFYING THOSE CORRIDORS YOU WERE TALKING ABOUT IS PART OF THAT CONVERSATION HAPPENING WITH LISD. HERE'S WHY I ASK. I WORKED IN LISD, AND PART OF THE ISSUE AS A SOCIAL WORKER WAS FAMILIES BEING ONLY ABLE TO GO WITHIN THE CITY LIMIT, EVEN THOUGH LISD TOUCHES FIVE CITIES, INCLUDING THE COLONY. SO I JUST WONDERED IF THAT'S PART OF THAT CONVERSATION.

>> WE CERTAINLY WORK WITH LISD WITH REGARD TO THE STOP INFRASTRUCTURE THAT WE HAVE AND MAKING SURE THAT WE DON'T DO ANYTHING THAT IS GOING TO BE ADVERSE TO STUDENTS. IT'S DIFFICULT FOR US TO TALK ABOUT BUS ROUTES GOING ACROSS CITY LIMITS BECAUSE OF THE MEMBER CITY, BECAUSE THE MEMBER CITIES ARE FUNDING THE SERVICE. AND SO WE WANT TO MAKE SURE THAT WE'RE NOT USING CITY RESOURCES TO FUND SERVICE ELSEWHERE. HOWEVER, AS THE REGION AND THESE OTHER CITIES START TALKING ABOUT DIPPING THEIR TOE INTO TRANSIT WITH MICROTRANSIT, WE'RE GOING TO BEGIN TO GATHER DATA JUST LIKE WE DO INSIDE THE CITY OF DENTON. THAT'S GOING TO BE ABLE TO HELP US SEE WHERE ORIGIN AND DESTINATION MIGHT STRETCH ACROSS CITY LIMITS. AND THAT'S

A PLACE WE'LL BE ORIENTED FOR THE FUTURE. >> AWESOME. LAST QUESTION. THE KPI SLIDE WITH 24 MINUTE WAIT TIME. IS THAT A BEST PRACTICE? IS THERE A WAY THAT YOU'RE TRYING TO ADDRESS CUTTING THAT WAIT TIME DOWN? THAT'S A BIG COMPLAINT THAT I KEEP GETTING IS FOLKS ARE WAITING A LONG TIME FOR BUSSES AND OR EXCUSE ME FOR GO ZONE.

>> YES. SO THE, THE KPI IS SET AT 24 MINUTES AS WE DESIGN THE SERVICE. AND THIS IS HOW MANY VEHICLES YOU HAVE VERSUS THE COVERAGE AREA THAT YOU'RE TRYING TO HAVE. AND SO THAT'S HOW THE KPI IS SET. IT CAN BE IMPROVED. IT'S JUST A MATTER OF INVESTING MORE IN CAPACITY TO CAUSE THOSE NUMBERS TO GO DOWN. AND SO AS WE THINK ABOUT WHAT HAPPENS WITH ISP PHASE THREE, AND YOU SEE THAT THERE'S A MENU OF OPTIONS AND THERE'S A CONTINGENCY BUCKET, AND THEN THERE'S SOME REMAINING. THE BOARD COULD HAVE THE COULD HAVE THE OPTION TO SAY, OKAY, WE'LL DEDICATE THOSE DOLLARS TO DRIVING KPI IMPROVEMENTS IN SOME OF THESE AREAS.

>> POTENTIALLY GETTING MORE VEHICLES OUT IN THIS DENSER AREA. OKAY, COOL. THANK YOU SO

MUCH FOR YOUR TIME. I REALLY APPRECIATE IT. >> NO PROBLEM.

>> YEAH. THANK YOU FOR THE PRESENTATION. GREAT DATA. COULD YOU GO BACK TO THE SLIDE WITH I THINK IT'S YOUR THIRD PHASE. THAT ONE RIGHT THERE. ACTUALLY GO TO THE ONE WITH THE CURRENT ROUTES WHERE IT SHOWS THE GO ZONE TRIPS WHERE YOU WERE ABLE TO SEE THE BUS ROUTES. I SEE RIGHT THERE. SO WHEN YOU ARE LOOKING AT THAT MODEL, ARE YOU MEASURING WHERE THE TRIP STARTS OR WHERE IT ENDS OR BOTH TO DETERMINE IF THEY'RE GOING TO BE DIRECTED TO A BUS OR THEY'RE

GOING TO BE ON THE GO ZONE SYSTEM. >> GREAT QUESTION. IT'S BOTH.

THE TRIP HAS TO BE AN ORIGIN AND DESTINATION INSIDE OF THE THE GREEN BUBBLE. OKAY. IN ORDER FOR A BUS TO BE ABLE TO PICK IT UP AND THEN A BUS TO DROP IT OFF. IF SOMEBODY IS OUTSIDE OF THE GREEN BUBBLE AND THEY'RE TRYING TO GET A GO ZONE RIDE INTO THE GREEN BUBBLE.

THIS IS TRANSIT TERMINOLOGY, BUBBLES AND STUFF. THEN THEY WILL GET A GO ZONE TRIP INTO

THE BUBBLE OR OUTSIDE THE BUBBLE. >> BUT IF IT'S WITHIN.

>> THAT, BUT IF IT'S WITHIN THAT, IF THE TRIP IS WITHIN THAT, THAT BUBBLE, THEN THEY'RE

GOING TO GET DIRECTED TO THE BUS. >> WELL, I SORT OF ECHO MY COLLEAGUES AS FAR AS THEIR COMMENTS, JUST REALLY BETTER. LACK OF WORD PRAISING DCTA FOR THE HARD WORK OVER THE LAST FEW YEARS TO REALLY TAKE THE DATA THAT, AS YOU MENTIONED, WOULD NOT BE AVAILABLE OUTSIDE OF OUR MICRO TRANSIT. AND WE'VE USED THAT TO BE ABLE TO ADD MORE FIXED ROUTES WHEN NECESSARY. AND I JUST WANT TO SAY TO YOU AND YOUR STAFF THAT OVER THE LAST 4 OR 5 YEARS, THE JOB THAT Y'ALL HAVE DONE IS PHENOMENAL. IT'S PHENOMENAL IN THE WAY AND THE BOARD AS WELL TO MAKE THE DECISIONS. SOMETIMES THE TOUGH DECISIONS. BUT WHAT WE'RE SEEING HERE NOW IS A REAL DATA DRIVEN, COST DRIVEN ANALYSIS. AND MY UNDERSTANDING IS, FROM WHAT I HEAR IN THE INDUSTRY IS THEY ARE LOOKING TO DCTA PRIMARILY BECAUSE OF HOW THEY'VE BEEN ABLE TO USE THE MICRO TRANSIT AND THE FIXED ROUTE SYSTEM TO OPTIMIZE THEIR MODALITIES AND THEIR TRANSPORTATION. SO THIS IS 7 OR 8 YEARS AGO, THIS WAS VERY DIFFERENT. AND, YOU KNOW, WHEN YOU CAME ABOARD AND YOU'VE WORKED HARD, YOU'VE HAD SOME SOME TURNOVER, THE BOARD'S WORKED TOGETHER. Y'ALL WORKED TOGETHER TO CREATE THIS, WHICH IS LIGHT YEARS AHEAD OF WHERE IT IS. AND SO I'M CONFIDENT THAT AS YOU HAVE YOUR PHASE THREE ROLLOUT, THAT YOU'RE APPLYING THESE SAME PRINCIPLES, RIGHT? AND SO THEREFORE, I DON'T SEE THAT THERE WOULD BE ANY OTHER DIFFERENT RESULT IN THAT. SO THANK YOU SO MUCH FOR YOUR HARD WORK. THANK THE BOARD. THANK YOUR STAFF BECAUSE WE ARE TRYING TO DO THE BEST WE CAN.

AND I KNOW YOU ALL ARE WITH PUBLIC TRANSPORTATION HERE. SO ONE LAST QUESTION I HAVE IS THE MED PARK. CAN WE TALK ABOUT TRANSIT ORIENTED DEVELOPMENT? AND WE ALWAYS TALK ABOUT THE

[00:45:01]

DOWNTOWN AREA. BUT MED PARK, I MEAN, THERE'S A THERE'S A LOT OF ACREAGE THERE. THERE IS. AND THAT'S NOT QUITE AS UTILIZED. I DON'T BELIEVE, AS FAR AS PEOPLE WHO ARE STARTING THERE OR, OR, YOU KNOW, GETTING ON OR GETTING OFF. RIGHT. AND HAS THAT BEEN SOMETHING THAT WE'VE BEEN IN CONVERSATION ABOUT? IS THERE SOME DIFFERENT TYPES OF OPTIONS AND OPPORTUNITIES THERE THAN JUST THE DOWNTOWN TO SAY, HEY, WHAT WOULD FIT HERE THAT WOULD REALLY BE CONDUCIVE TO THAT?

>> YES, SIR, THERE ARE I WHEN I LOOK AT MED PARK AND I'VE, I'VE BEEN OUT THERE AND WE'VE LOOKED AT HOW DO YOU GET PEOPLE OFF THE TRAIN TO THE HOSPITAL OR ALL THESE DOCTORS OFFICES? AND IF YOU'RE GOING TO THE HOSPITAL OR DOCTOR'S OFFICE, YOU'RE PROBABLY NOT MAKING THAT WALK OFF THE PLATFORM. BUT THEN I JUST LOOK TO THE NORTH AND I GO, WHAT IF WHAT IF THE TRAIN STATION WAS OVER HERE WHERE ALL THE SHOPPING IS? WHAT IF THE TRAIN STATION WAS OVER HERE, WHERE YOU'RE REALLY CLOSE TO THE INTERSTATE AND ALL THAT SORT OF STUFF. AND SO I THINK THAT WE COULD THINK CREATIVELY ABOUT WHAT IS THE MED PARK STATION? WHERE IS THE MED PARK STATION? AND COME UP WITH SOME IDEAS THAT WOULD REALLY MOVE THE NEEDLE FOR THAT FOR THAT

SITE. >> WELL, THANK YOU VERY MUCH FOR A WONDERFUL PRESENTATION AND, AND THE GOOD WORK THAT YOU ALL ARE DOING TO, TO MAKE SURE THAT WE MAXIMIZE OUR DOLLARS FOR PUBLIC TRANSPORTATION IN THIS CITY AND ALSO THE OTHER MEMBER CITIES. YES, SIR. SO ANY

OTHER QUESTIONS? COMMENTS. ALL RIGHT. THANK YOU VERY MUCH. >> APPRECIATE IT. THANK YOU ALL.

>> VERY MUCH. OKAY. WE'LL MOVE ON TO OUR NEXT AGENDA ITEM, PROBABLY THE THE SHORTEST ONE ON THE AGENDA. OH, SORRY. SORRY. I'D 26-0560 RECEIVE REPORT, HOLD DISCUSSION AND GIVE STAFF

[B. ID 26-0560 Receive a report, hold a discussion, and give staff direction regarding the preliminary FY 2026-27 City Manager’s Proposed Budget and Schedule of Fees. [Estimated Presentation/Discussion Time: 60 minutes]]

DIRECTION REGARDING THE PRELIMINARY FISCAL YEAR 2020 627 CITY MANAGER'S PROPOSED

BUDGET AND SCHEDULE OF FEES. >> IT'S FINE, IT'S FINE, IT'S FINE. THE WORKSHOP WAS 83 SLIDES. TODAY WE'RE AT 117. IT'S FINE. ALL RIGHT. SO GOOD AFTERNOON, MAYOR AND COUNCIL.

AMY CASSEY, CHIEF STRATEGIC OFFICER HERE TO PROVIDE YOU WITH A BUDGET UPDATE. SO WE'RE GOING TO START TODAY WITH A FOLLOW UP TO LAST WEEK'S DISCUSSION ON COUNCIL ACTION ITEMS AS WE WORK TOWARDS THE BUDGET ADOPTION ON SEPTEMBER 22ND. AND THEN WE'RE GOING TO COVER RATES AND FEES PROPOSED FOR 2027, WE'RE GOING TO WALK THROUGH DEPARTMENT SPECIFIC UPDATES, HIGHLIGHT COST RECOVERY ADJUSTMENTS, AND REVIEW AREAS WHERE OPERATIONAL DEMANDS AND UPDATED PRICING HAVE INFLUENCED OUR FEE STRUCTURES. SO AS YOU'LL RECALL FROM LAST WEEK, THERE IS APPROXIMATELY $796,000 IN THE GENERAL FUND AS A PLACEHOLDER TO ADDRESS COUNCIL PRIORITIES. YOU'LL NOTE THAT THE PREVIOUS RECOMMENDATION FOR TWO EMS LIEUTENANTS, ALONG WITH THE WOMAN'S BUILDING LEASE REVENUE, WHICH IS MARKED FOR FUTURE DISCUSSION. BASED ON LAST WEEK'S CONVERSATION, WE'VE ADDED A PLACEHOLDER FOR SPONSORSHIP DOLLARS AS WELL AS AN ADDITIONAL INCREASE FOR FIRE CIVIL SERVICE THAT WOULD PROVIDE AN OVERALL 4% INCREASE EFFECTIVE JANUARY 1ST OF 2027. SO WITH THAT, JUST WANTED TO OPEN UP THIS PART OF THE PRESENTATION TO DISCUSSION ON HOW YOU WOULD LIKE TO ALLOCATE

THOSE PLACEHOLDER DOLLARS THAT ARE IN THE GENERAL FUND. OKAY. >> COUNCIL. COUNCILMEMBER

RUMOHR. >> FROM THE BUDGET DISCUSSION, I KIND OF WANT TO REVISIT THE QUESTION THAT I ASKED DURING OUR WORKSHOP. I THINK WHEN WE SAW THE. I THINK ORIGINALLY THIS SLIDE HAD US SAYING THAT WE HAD LIKE ABOUT 100 OR $800,000 AVAILABLE TO KIND OF FIGURE OUT WHAT TO DO WITH. RIGHT. SOMETHING LIKE THAT. YES. AND I THINK I ASKED HOW MUCH OF THAT IS APPROXIMATELY IS NEW REVENUE FROM DATA CENTER, I BELIEVE, AND I THINK ABOUT HALF OF IT. OF THAT HUNDRED, $800,000 WAS KIND OF ASSOCIATED WITH DATA CENTER REVENUE, I BELIEVE. CORRECT? SOMETHING LIKE THAT. AND SO WE DECIDED THAT FOR SURE THE EMS LIEUTENANTS COULD FIT WITHIN HALF. THAT IS A LITTLE BIT MORE OF A STABLE REVENUE SOURCE. AND SO WHAT MY I, I'M STILL VERY, VERY NERVOUS ABOUT US SPENDING DATA CENTER REVENUES THAT WE DON'T KNOW HOW STABLE IT'S GOING TO BE. WE DON'T KNOW HOW LONG IT'S GOING TO BE THERE. ON ONGOING COSTS LIKE SALARIES AND SERVICES. SO I FEEL VERY COMFORTABLE ABOUT THE EMS LIEUTENANTS BECAUSE THAT'S UNDER 400,000. BUT ANYTHING BEYOND THAT STARTS TO BE BEING

[00:50:02]

USED BY REVENUE THAT WE DON'T KNOW HOW LONG IT'S GOING TO BE THERE. AND THAT THAT JUST MAKES ME REALLY NERVOUS. SO I'M JUST GOING TO START BY SAYING THAT I DON'T REALLY HAVE DIRECTION YET, BUT I, I REALLY HESITATE TO SPEND ANY DATA CENTER REVENUE ON AN ONGOING SERVICE OR SALARY.

>> MAYOR PRO TEM. >> I MEAN, TO THAT POINT, THAT'S A FAIR CRITICISM. I WONDER IF WE WERE TO CHOOSE TO DO ANYTHING WITH FIRE COMPENSATION. IF IT WAS A ONE YEAR, WHAT WOULD YOU CALL THAT BONUS? LIKE ADDITIONAL BONUS RATHER THAN A SALARY, I THINK, AND I DON'T KNOW IF I CAN ASK IT PUBLICLY, BUT I'M CURIOUS TO THAT END WITH CITY MANAGEMENT, THAT ADDITIONAL 400,000 THAT WE'RE UNSURE OF AS FAR AS HOW LONG IT'S GOING TO BE HERE, CAN

YOU SPEAK TO THAT A LITTLE BIT? >> REGARDING THE THE DATA CENTER REVENUE, THE, THE BUSINESS, PERSONAL PROPERTY, I'M NOT SURE, BUT IT IS BUSINESS, PERSONAL PROPERTY. SO MY UNDERSTANDING IS, IS THAT IT DEPRECIATES FASTER, BUT WE DON'T HAVE A DEPRECIATION SCHEDULE. SO WE'RE UNSURE, UNSURE OF HOW QUICKLY IT WILL DEPRECIATE. BUT SO WE'RE AT A

LOSS. >> YES. >> COUNCILMEMBER. I'M SORRY.

JUST A CLARIFICATION QUESTION. AS FAR AS THE PLACEHOLDERS THAT WE HAVE HERE, WHERE ARE THE PLACEHOLDERS ALLOCATED FOR THE CURRENT MEET AND CONFER. SINCE THAT IS A TO BE DECIDED? I JUST WANTED TO MAKE SURE THAT THAT WAS NOT SOMETHING THAT NEEDED TO BE PART OF THE CONVERSATION OF THE COUNCIL ACTION ITEMS. AND THEN I HAVE ONE MORE COMMENT AFTER THAT QUESTION,

PLEASE, MAYOR. THANK YOU. >> OH, SURE. >> THE MEET AND CONFER PLACEHOLDERS ARE IN THE DEPARTMENT BUDGET IS MY UNDERSTANDING, AS WELL AS NON-DEPARTMENTAL. SO THEY'RE THEY'RE SPLIT BETWEEN TWO BUDGETS. BUT WE DO HAVE

PLACEHOLDERS FOR THAT ITEM. >> THANK YOU. I KNOW THAT THAT'S THAT'S AT THE TOP OF THE LIST FOR OUR PUBLIC SAFETY OFFICERS AS A WHOLE. I TEND TO I MEAN, AND I WOULD LIKE TO HEAR EVERYONE ELSE'S OPINION, BUT I WOULD TEND TO WITH THIS, WHAT WE BELIEVE COULD BE A ONE TIME BOOST BECAUSE OF THE DEPRECIATION AND THE ADD TO VALUE THAT I THINK IT IS IMPORTANT TO ACKNOWLEDGE SO THAT EVERYONE, AS WELL AS OUR CITIZENS AND PARTNERS, ARE VERY CLEAR AS WELL AS THE DEPARTMENTS ARE CLEAR THAT THIS IS NOT GOING TO NECESSARILY BE ONGOING, AND IT'S NOT ANTICIPATED TO BE ONGOING THAT WE DO LOOK AT MAYBE THE SPONSORSHIPS OF THE DIFFERENT GROUPS THAT WE'VE TALKED ABOUT, BUT I THINK IT IS VERY IMPORTANT TO ALSO SAY THIS IS NOT SOMETHING WE CAN COUNT ON THIS AMOUNT EVERY YEAR. HOWEVER, GIVING A BOOST TO SOME OF THE ORGANIZATIONS THAT THEY CAN BANK FOR BECAUSE WE'VE GOT, YOU KNOW, GOOD YEARS AND BAD YEARS AS FAR AS REVENUE, THAT TENDS TO BE WHERE I LEAN ON WHAT TO DO WITH THESE FUNDS, UNLESS THERE'S SOMETHING. I MEAN, OF COURSE, I'M ALSO OPEN TO HEARING IF THERE ARE OTHER PRIORITIES. I HAVEN'T THOUGHT OF THAT REALLY. WE NEED TO PULL

THE TRIGGER ON NOW VERSUS LATER. THANK YOU. >> COUNCILMEMBER HOLLAND.

>> THANK YOU. I THINK THAT'S AN INTRIGUING OBSERVATION. COUNCIL MEMBER. THE THE NOTION THAT THAT FUND IS KIND OF KIND OF VOLATILE AND IT MIGHT OR MIGHT NOT BE THERE, BUT IF IT IS THERE, IF IT IS THERE, I'D LIKE TO I'D DOES ANYBODY KNOW THAT I'M ALL ABOUT STREETS AND GETTING STREETS FIXED? DID I MENTION THAT RIGHT? IF IT'S AVAILABLE, I'D LIKE TO INCREASE THAT STREET BUDGET IN THAT AMOUNT. AND IF IT'S NOT, THEN IT'S NOT. BUT. BUT IF IT DOES WORK, THAT THAT'S A BENEFIT TO EVERYBODY. RESIDENTS, VISITORS IS LIKE, I, I'D LIKE TO SEE THAT I'M STICKING WITH MY WITH MY GUNS ON THAT. THANK YOU MAYOR.

>> YOU BET. YES, COUNCILMEMBER. COUNCILMEMBER. >> THANK YOU. CLARIFYING QUESTION. THEN A QUESTION QUESTION. LOOKING AT THIS ADDITIONAL COUNCIL CONSIDERATION ITEMS, WITH THE TOTAL BEING JUST OVER 3 MILLION, I'M READING THIS RIGHT WHERE WE HAVE JUST UNDER $800,000 STILL AVAILABLE OVER HERE, AND THE OVER 3 MILLION IS BEING

CONSIDERED OVER HERE. >> YOU YOU HAVE 3 MILLION IDENTIFIED IN OPTIONS, BUT

796,000 AVAILABLE IN FUNDING AS A PLACEHOLDER. >> GOT IT. OKAY, THEN MY THANK YOU FOR THAT CLARIFICATION. MY, MY SECOND QUESTION IS I AM KIND OF IN THE SAME BOAT AS COUNCILWOMAN JESTER WHERE WE'RE TALKING ABOUT MEET AND CONFERS NEXT YEAR OR THE YEAR OR TWO OTHER COUNTS THAT ARE GOING TO BE IDENTIFIED FOR DIFFERENT TYPES OF FUNDING. AND I AGREE THAT AN ADDITIONAL 1% FOR FIRE COMPENSATION THIS FISCAL YEAR MAKES SENSE. AND THEN DURING

[00:55:03]

MEET AND CONFER, WE HAVE THAT PROCESS TO ADDRESS THE REST OF THEIR CONCERNS. THAT'S WHERE I

STAND. >> YES. COUNCILMEMBER RUMOHR. >> FOR CLARIFICATION FOR ME IS THE 1% FOR FIRE COMPENSATION. IS THAT A ONE TIME LUMP SUM OR IS THAT AN ONGOING COST ONGOING? THAT'S AN ONGOING COST. I CAN LIVE WITH IT IF IT'S SORT OF MORE OF A ONE TIME THING, BECAUSE AGAIN, THAT'S JUST MY CONCERN OF ONE TIME. SO I'M HAPPY WITH, YOU KNOW, STREETS THAT'S THAT CAN BE PULLED BACK FAIRLY EASILY WITHOUT A BIG DISRUPTION, MORE GOING TOWARDS EVENTS AND ORGANIZATIONS. I MEAN, THAT WILL BE DISRUPTIVE IF THAT GETS PULLED BACK. BUT I'M HOPEFUL THAT WE'RE I THINK WE'RE LOOKING AT THAT MORE IN A FEW MONTHS IN A WORK SESSION. I THINK I SAW JUST HOW WE'RE FUNDING OR MAYBE I MIS SAW THAT A WORK SESSION. I THOUGHT I SAW.

>> THE WORK SESSION IS TO DISCUSS THE APPLICATION AND EVALUATION PROCESS. SO THE SCORING AND THE THE MATRIX KIND OF THAT POLICY LEVEL DISCUSSION, THE DISCUSSION AFTER THIS WILL

BE THE ALLOCATION DISCUSSION FOR NEXT YEAR. >> RIGHT. SO I'M MOST COMFORTABLE. ANYTHING THAT'S ABOVE THAT ABOUT $400,000. I WOULD PREFER TO USE IT ON ON ONE TIME TYPE THINGS. IF FIRE WAS HAPPY WITH 301 AS MORE OF A ONE TIME LUMP SUM, I WOULD FEEL COMFORTABLE WITH THAT. AS LONG AS WE KNOW, YOU KNOW THE REASONING BEHIND. IT'S NOT THAT WE DON'T WANT TO PROVIDE THE COMPENSATION BECAUSE LIKE, I KNOW WE'RE BEHIND ON COMPENSATION, BUT FOR BOTH FIRE AND POLICE AND WE NEED TO FIND A WAY TO, TO GET THERE. WHAT I JUST DON'T WANT TO DO IS THAT WE RELY ON REALLY VOLATILE SOURCES THAT COULD GO AWAY. AND WHAT HAPPENS WHEN THOSE SOURCES GO AWAY. SO THAT'S REALLY WHERE MY CONCERN IS. BUT I CAN LIVE WITH LIKE SORT OF ONE TIME LUMP SUM TYPE OF THINGS. AND I THINK, I THINK THAT STILL LEAVES IF WE DID TWO LIEUTENANTS, THE 1% FIRE COMPENSATION IS MORE OF LIKE A LUMP SUM TYPE OF THING.

I THINK THAT STILL LEAVES SOME LEFT OVER. IF WE WANTED TO DO THE REST TOWARDS EVENTS AND ORGANIZATIONS FOR THIS YEAR. BUT I DO AGREE WITH COUNCIL MEMBER HOLLAND AS WELL THAT I'M

HAPPY TO THROW THINGS AT STREETS AS WELL. THANK YOU. >> COUNCILMEMBER JESTER.

>> JUST IN CASE I WASN'T CLEAR AS FAR AS MY DIRECTION, I WANTED TO JUST CLARIFY THAT I AM IN FAVOR OF, FROM WHAT I UNDERSTAND, ALSO CLARIFY THAT I THINK ABOUT HALF OF THAT AMOUNT WE DON'T THINK IS GOING TO GO AWAY THAT ENTIRE AMOUNT. WE THINK IT'S ABOUT HALF IS MAYBE ONE TIME BECAUSE OF THE BOOST IN BUSINESS, PERSONAL PROPERTY THAT WILL DEPRECIATE QUICKLY.

HOWEVER, THE OTHER HALF WE DO ANTICIPATE TO BE ONGOING. WITH THAT, I AM IN FAVOR OF THE RECOMMENDED FOR FUNDING. I KNOW THE WOMEN'S BUILDING LEASE REVENUE IS SOMETHING WE'RE GOING TO DISCUSS IN THE FUTURE, BUT AS FAR AS THE TWO M'S LIEUTENANTS, I DON'T THINK.

UNFORTUNATELY, WE HAVE THE MONEY FOR THE FIRE PENSION COLA REQUEST. YOU KNOW, THE ADDITIONAL SPONSORSHIP DOLLARS THAT WE'LL TALK ABOUT NEXT AND THE ADDITIONAL 1% FOR FIRE COMPENSATION. I JUST WANTED TO BE CLEAR THAT I WAS IN FAVOR OF. THANK YOU FOR ALLOWING ME THAT

CLARIFICATION. >> SO. I'M THINKING I THINK WE'RE OFF ON OUR DISCUSSION.

AND THE REASON IS LET'S BE CLEAR ABOUT SOMETHING. THE BUSINESS PERSONAL PROPERTY THAT IS NOW IS AN ADDITIONAL WAS IT $15 MILLION? I MEAN, JUST ON ITS FACE, ON ITS FACE. NOW, ALMOST HALF OF THAT OR MORE IS BEING REBATED BACK TO THE PROPERTY, PROPERTY OWNERS IN THE FORM OF A LOWER TAX RATE. I'M GOING TO I'M NOT GOING TO AGREE WITH THE THE SUPPOSITION THAT WE ONLY HAVE $800, $800,000 TO SPEND BECAUSE THIS BUDGET IS REPLETE WITH NEW ADDITIONAL REVENUE FROM THE DATA CENTER THAT IS ALMOST ALL ONGOING. I MEAN, THE WHOLE THE WHOLE PERSONNEL PROBABLY IN FIRE AND PENSION CONTAIN SOME OF THAT MONEY. SO AND I'M NOT THIS ISN'T A CRITICISM ON THE PRESENTATION, BUT I WANT TO MAKE SURE EVERYBODY IS CLEAR THAT IT'S $15 MILLION. IT'S SPLIT UP BETWEEN THESE THINGS AND IT'S GIVEN BACK TO THE. BUT WE DON'T HAVE JUST $800,000. NEXT YEAR. WE'RE GOING TO RUN INTO SOME OF THE SIMILAR PROBLEM, BECAUSE THE NEW VALUE FOR THE DATA CENTER NOW WILL BE CLASSIFIED AS OLD VALUE. BUT OUR OUR ASSESSED VALUE HAS GONET APPRECIATING. YES. IS IT GOING TO DEPRECIATE 100%? NO. NEXT YEAR? NO. IS IT GOING TO DEPRECIATE 50%? WHO KNOWS. BUT THEY ALSO HAVE. SO I'M NOT

[01:00:05]

GOING TO MAKE A DECISION. I MEAN, I'M GOING TO TELL YOU WHAT MY THOUGHTS ARE ON THIS $800,000, BUT I'M NOT GOING TO ASSUME THAT IT MEANS THAT TOMORROW OR NEXT YEAR, OR TWO YEARS OR THREE YEARS FROM NOW, THAT ALL OF A SUDDEN THIS ALL DRIES UP. WE HAVE TO BE PRUDENT.

BUT A LOT OF WHAT'S BEEN CREATED WAS BECAUSE OF THE STATUTORY CONSTRUCTION OF THE NO NEW REVENUE TAX RATE. OTHERWISE, WE WOULD HAVE THE OPTION TO FUND OR TO ALLOCATE MANY MORE MILLIONS OF DOLLARS THAN WHAT WE HAVE RIGHT NOW. AND WE'VE CHOSEN TO LET'S LET'S TAKE IT BACK AND GIVE BACK TO THE TAXPAYERS. THAT'S WHAT THAT LAW DOES. SO I'M NOT GOING TO CONSTRAIN MYSELF TO THE NOTION THAT $400,000 IS ONGOING AND THAT THIS OTHER $400,000 IS IS ONLY ONE TIME, BECAUSE THE NUMBERS JUST DON'T WORK. I MEAN, BECAUSE AGAIN, AND CORRECT ME IF I'M WRONG, MADAM CITY MANAGER, THAT IN THIS IN THIS BUDGET, OUR DATA CENTER, NEW DATA CENTER REVENUE THAT IS NEW VALUE THAT IS NOT INCLUDED IN THE NO NEW REVENUE TAX RATE THAT IS GOING TOWARDS ONGOING EXPENSES. OKAY. AND IT'S MORE THAN $800,000.

>> YES. WE HAVE A MILLION FOR ECONOMIC DEVELOPMENT. I DON'T REMEMBER THE EXACT AMOUNT, BUT YOU ARE FUNDING EMPLOYEE INCREASES. SO MERIT AND THEN A ONE TIME COST OF LIVING ADJUSTMENT. YOU HAVE A PLACEHOLDER FOR THE POLICE MEET AND CONFER CONTRACT NEGOTIATIONS. THERE IS ALSO FIRE COMPENSATION INCREASES ALONG WITH WE HAVE 500,000 FOR A ONE TIME FOR CAPITAL MAINTENANCE, $500,000 FOR ONE TIME VEHICLE REPLACEMENTS. AND

AND THOSE ARE ALL THE THINGS THAT I CAN THINK OF OUTSIDE. >> OF A.

>> MIXTURE OUTSIDE OF THIS. >> IT'S A MIXTURE OF ONE TIME AND ONGOING. YES. SO, I MEAN, I'VE GOT SOME SOME THOUGHTS ON THE REMAINING 400,000, BUT I JUST WANT TO MAKE SURE THAT WE'RE CLEAR THAT THIS ISN'T THE ONLY. I MEAN, WE'VE CHOSEN TO BUDGET THEM THE WAY THAT YOU'VE PRESENTED IN YOUR BUDGET. AND WE'VE SAID WE AGREED TO THAT. AND SOME OF THOSE ARE ONGOING EXPENSES. SO THIS IS WHAT WE'RE LEFT WITH. SO MY THOUGHT IS I CERTAINLY WANT TO LOOK AT THE ADDITIONAL SPONSORSHIP DOLLARS, BECAUSE I THINK THERE'S SOME EVENTS THAT DON'T GET ANY HOT FUNDS. AND SO THEREFORE, YOU KNOW, I THINK SOME OF THEM HAVE BEEN FUNDED AT A LEVEL THAT, BASED UPON WHAT THEY PROVIDE FOR THE COMMUNITY, MAY NEED TO HAVE A SECOND LOOK. AND I'M JUST GOING TO THROW THIS OUT THERE. IT'S MY UNDERSTANDING, AND AGAIN, CORRECT ME IF I'M WRONG, THAT. THE FIREFIGHTER MEET AND CONFER CONTRACT HAS AS A GOAL, AS AN ASPIRATION THAT THEY GET MARKET PLUS 5% ON THEIR THEIR SALARIES. AND LAST YEAR, NOTHING HAPPENED. DIDN'T HAPPEN FOR ANYBODY. WHILE SOME ORGANIZATIONS WHO ARE GETTING MILLIONS OF DOLLARS GAVE 10%, 5% COLA'S AND 5% MERIT INCREASES, BUT I DIGRESS. SO I UNDERSTAND. AND SO IF I'M NOT RIGHT, SOMEBODY CORRECT ME, BUT IT'S ABOUT $300,000 THAT IS NEEDED TO GET THE FIREFIGHTERS TO MARKET PLUS FIVE. AND THAT INCLUDES THE 1%. I MEAN, THAT'S ON TOP OF THE 1%, I THINK IS MY UNDERSTANDING. IS THAT CORRECT OR NO. DO WE KNOW? NO. OKAY. SOMEBODY BECAUSE I GOT I GOT A MEMO FROM FROM SOMEBODY THAT SAID THAT. SO HELP ME UNDERSTAND THAT. WHAT IS IT.

WHAT WOULD IT TAKE TO GET THE FIREFIGHTERS TO MARKET PLUS FIVE.

>> FOR FIRST OF ALL SORRY. CHRISTINE TAYLOR, ASSISTANT CITY MANAGER AND YOU'RE CORRECT.

BOTH MEET AND CONFER CONTRACTS INDICATE THAT WE HAVE A GOAL TO GET THEM TO MARKET PLUS 5% EVERY YEAR. WE HISTORICALLY HAVE BEEN ABLE TO DO THAT UNTIL LAST YEAR. SO GOING ONE YEAR WITHOUT IT PUTS US FURTHER BEHIND MARKET. I DON'T HAVE THE EXACT NUMBER, BUT THE FIRE NUMBER IS OVER $2 MILLION TO GET THEM CLOSER TO MARKET PLUS FIVE. SO WE'VE AND WE'VE INCLUDED IN THE BUDGET RIGHT NOW 3%, SO THAT WE'RE CLOSING THAT GAP TOWARDS MARKET. AND THEN WE'RE THE CONSIDERATION IS FOR AN ADDITIONAL 1%, WHICH WILL MOVE THEM CLOSER TO MARKET,

BUT IT'S NOT MARKET OR ANYTHING ABOVE MARKET FOR FIRE. >> OKAY. ALL RIGHT. THEN MY INFORMATION WAS INCORRECT. SO I STAND CORRECTED ON THAT. BECAUSE I WAS GOING TO SAY IF IT WAS A LOWER AMOUNT, WE COULD SEE IF THERE WAS A TRADE OFF BETWEEN ONE EMS LIEUTENANT AND GETTING THEM UP TO THAT. BUT I DIDN'T KNOW THAT IT WAS $2 MILLION. SO I WANT TO CERTAINLY MAKE SURE THAT IF SOMEBODY COULD SEND ME THAT CALCULATION, THAT'D BE GREAT. BECAUSE I THINK WE WERE SUPPOSED TO GET A MEMO. I THINK A MEMO ABOUT WHAT THAT WOULD TAKE DURING THE BUDGET PROCESS FROM THE MEET AND CONFER AGREEMENT. WE'RE SUPPOSED TO GET A MEMO OF THAT

[01:05:01]

AMOUNT THAT THAT WOULD TAKE. HAVE HAVE WE HAVE WE GOTTEN THAT? DO WE KNOW? NO. OKAY.

WELL, IF IF WE COULD GET THAT, THAT'D BE GREAT. JUST SO THAT I CAN SEE THAT BECAUSE MY UNDERSTANDING WAS IT WAS IT WAS NOT THAT. SO WHICHEVER IS CORRECT IS CORRECT. SO BE THAT.

THAT IS MAY SET THAT ASIDE. THEN AS FAR AS I'M CONCERNED THE ADDITIONAL SPONSORSHIP DOLLARS. I'M REALLY OKAY WITH THE 1% BEING AN ONGOING EXPENSE. AND IF ON THE ADDITIONAL SPONSORSHIP DOLLARS I MEAN THIS COUNCIL CAN DECIDE IS IT ONGOING OR IS IT, YOU KNOW, ONE TIME, WHICH SOUNDS LIKE FROM THE DISCUSSION, MORE APT TO BE A ONE TIME BECAUSE I THINK IT WENT FROM 400,000 LAST YEAR, I THINK, TO 200 OR FROM 400 TO 200. OKAY. SO I, I'LL JUST LEAVE IT OPEN FOR THAT. I SO MY MAIN CONCERN WAS, WHAT DOES IT TAKE TO GET THE FIRE UP TO 5%? AND SO AS SOON AS WE GET THAT MEMO, I'D APPRECIATE THAT. OKAY. YES. COUNCILMEMBER RUMOHR.

>> AND JUST KIND OF CONTINUING WHERE YOU LEFT OFF, I'D ALSO BE CURIOUS WHAT OUR OPPORTUNITIES ARE TO, TO CATCH UP FIRE AND POLICE TO WHAT THEIR CONTRACTS ARE SAYING, AND TO MAKE SURE THAT WE'RE BEING COMPETITIVE REGIONALLY AND GIVING THEM FAIR COMPENSATION. WHAT ARE WAYS THAT WE CAN ENSURE THAT WE ARE GIVING THEM THAT, IDEALLY WITHOUT USING MUCH OF THE DATA CENTER REVENUE? BECAUSE AGAIN, THAT MAKES ME NERVOUS. WHAT WHAT OTHER AVENUES ARE THERE TO FIND THAT MONEY WITHOUT, YOU KNOW, CUTTING ENTIRE DEPARTMENTS OR SOMETHING? BECAUSE THAT $2 MILLION IS, YOU KNOW, SOME DEPARTMENT'S ENTIRE BUDGET. SURE. SO I'D BE CURIOUS

TO HEAR WHAT THOSE OTHER OPTIONS ARE. THANK YOU. >> OKAY, MAYOR PRO TEM.

>> THANK YOU. TO BE HONEST WITH YOU, I MEAN, SO I TAKE YOUR POINT. I WOULD BE AGREEABLE TO THE 1% INCREASE FOR FIRE COMPENSATION. IT'S HARD THOUGH, BECAUSE RIGHT NOW I KIND OF FEEL LIKE I'M MAKING A DECISION IN A VACUUM WHERE I DON'T KNOW WHAT WE'RE AGREEING ON IN THE NEXT WORK SESSION AND WHAT WE'RE SHORT AND WHAT WE WANT TO DO THERE. DOES THAT MAKE SENSE?

>> YOU MEAN IN LATER ON IN THIS WORK SESSION. >> IN THE FOLLOWING WORK SESSION, THAT IF WE WANTED TO USE SOME OF THIS MONEY FOR THAT. AND SO I AM SOMEONE THAT TENDS TO OVER COMPLICATE THINGS, I UNDERSTAND THAT. IS THERE ANY WAY TO REVISIT THIS PORTION?

SURE. UNTIL WE TALK ABOUT THAT. YEAH, ABSOLUTELY. >> ANYTHING ELSE? YES. COUNCIL

MEMBER PERRY. >> YES I AGREE. SORRY FOR MY FIRST QUESTION. I NOW REALIZE I ASKED THAT THE WRONG WAY AND I WAS LIKE 3,000,700. YOU'RE LIKE, NO, THIS IS HOW MUCH YOU HAVE.

WHAT DO YOU WANT TO USE IT FOR? SORRY, I DIDN'T MEAN TO ASK IT THAT WAY. I AGREE WITH YOU, MAYOR, THAT EACH YEAR IS GOING TO BE DIFFERENT. AND JUST LIKE ANY BUDGET, THERE ARE CHALLENGES. EVERY YEAR THERE ARE PLACES WE HAVE TO CUT, THINGS WE HAVE TO BE MINDFUL OF.

SOMETIMES WE GET A LITTLE BIT EXTRA MONEY AND THAT'S GREAT. I DO AGREE WITH MAYOR PRO TEM. I AM ALSO WORRIED ABOUT IF WE'RE MOVING FORWARD WITH THE THREE, THE TWO THAT ARE RECOMMENDED IN THE ADDITION OF THE 1% THAT IT LEAVES US WITH ABOUT LIKE 116,000 EXTRA DOLLARS TO PUT TOWARD THE NEXT AGENDA ITEM. AND WE HAVEN'T HAD A CHANCE TO GO THROUGH ALL OF THAT. SO I

AGREE TO TABLE THIS. >> OKAY. ALL RIGHT. AND WHEN WE GET TO THAT NEXT WORK SESSION, WE CAN FLIP BACK TO THIS SLIDE. I MEAN WE'RE NOT GOING TO YEAH WE'LL LEAVE IT OPEN ON THE TABLE. OKAY. ANY OTHER QUESTIONS BEFORE WE MOVE ON TO THE NEXT SLIDES FOR THE

PRESENTATION. ALL RIGHT. THANK YOU. ALL RIGHT. >> SO NEXT WE'RE GOING TO TALK ABOUT RATE. SO DIRECTORS FROM THE VARIOUS DEPARTMENTS THAT ARE REPRESENTED IN THIS PRESENTATION ARE HERE IN CASE YOU HAVE ANY QUESTIONS. BUT WE ARE GOING TO START WITH THE FIRE DEPARTMENT. SO THE FIRE DEPARTMENT IS UPDATING FEES TO REFLECT THE TRUE COST. THAT INCLUDES MEDICATION CHARGES WHICH HAVE BEEN RECALCULATED ACCORDING TO UPDATED PRICING.

WE'RE ALSO INTRODUCING A COST RECOVERY MEASURE FOR TECHNICAL RESCUE REIMBURSEMENTS, AND THEN AN EVENT BASED FEE FOR OUR BOMB TECHNICIANS THAT ARE ON STANDBY SERVICE. THESE ADJUSTMENTS HELP US TO ENSURE TRANSPARENCY, SUPPORT, READINESS AND ENSURE THAT THE DEPARTMENT CAN CONTINUE TO DELIVER A HIGH QUALITY OF SERVICE. I'M GOING TO CLICK THROUGH THE SLIDES PRETTY QUICKLY. I'LL STOP IN A FEW PLACES, BUT IF YOU HAVE ANY QUESTIONS, PLEASE STOP US AND

LET. >> US KNOW. >> SURE. ALL RIGHT. SO HERE ARE THOSE EMS FEES AGAIN BASED ON COST OF SERVICE COST OF THOSE MEDICATIONS. AND THEN WE HAVE OUR TECHNICAL RESCUE REIMBURSEMENT. THESE ARE FEES THAT INCLUDE LUMBER AND

[01:10:05]

EQUIPMENT THAT ARE USED TO STABILIZE STRUCTURES WHEN THEY'RE DAMAGED AS A RESULT OF A MOTOR VEHICLE ACCIDENT. THE FIRE DEPARTMENT INDICATED IN THE PAST YEAR, THEY'VE HAD OVER 30 INCIDENTS WITH MOTOR VEHICLES VERSUS BUILDINGS WHERE CREWS HAVE HAD TO INSTALL STRUCTURAL SUPPORT FOR THE MAJORITY OF THOSE INCIDENTS. SO IMPLEMENTING THIS WOULD BE A COST RECOVERY MECHANISM TO ENSURE THAT THEY ARE REIMBURSED APPROPRIATELY. ALL RIGHT. NEXT IS THE TRAINING FACILITY. AND THAT'S JUST SOME CLEAN UP IN THE LANGUAGE OF THE ORDINANCE.

AND THEN WE HAVE OUR BOMB TECHNICIAN FEE. THIS IS A NEW FEE ASSESSED FOR A CERTIFIED BOMB TECHNICIAN AND ASSOCIATED EQUIPMENT. TO PROVIDE EXPLOSIVE DETECTION, SCREENING AND STANDBY RESPONSE SERVICES AT SPECIAL EVENTS. AND THIS WILL BE BASED ON EVENT SIZE, RISK PROFILE, AND THEN EVENT ORGANIZER REQUESTS. AND THAT IS $80 PER TECHNICIAN PER HOUR WITH A TWO HOUR MINIMUM. NEXT WE'RE GOING TO MOVE ON TO THE LIBRARY. SO THEIR FEES UPDATES EMPHASIZE ACCURACY, TRANSPARENCY AND FLEXIBILITY. THEY HAVE A NEW WAY OF TRACKING THEIR COSTS SO THAT THEY CAN BE MORE PRECISE IN THOSE COSTS FOR THEIR DISCOVERY KITS FOR THE MAKERSPACE MATERIALS. SO THEN THEY CAN THEN ENSURE THAT THEIR FEES FOR LOST OR DAMAGED ITEMS REFLECT THE ACTUAL REPLACEMENT COSTS. THEY'RE ALSO REQUESTING TO IMPLEMENT A FEE FOR INTERLOAN LIBRARY CHARGES. BASICALLY, THIS WILL SHIFT TO A PASS THROUGH MODEL FOR SHIPPING.

SO WHAT THAT MEANS IS THEY WILL ESSENTIALLY BE EXPANDING THAT I L SERVICE TO PATRONS, REQUESTING THINGS THAT REQUIRE THOSE SHIPPING EXPENSES. THERE'S ALSO AN UPDATE THAT IS JUST PROVIDES THEM MORE FLEXIBILITY IN TERMS OF CHARGING FOR THEIR MATERIAL PRICING. AND AGAIN, IT INCREASES SERVICES THAT THEY CAN PROVIDE TO THEIR PATRONS.

SO HERE YOU SEE THOSE FEES FOR THE LOST DISCOVERY KIT COMPONENTS, THAT INTERLIBRARY LOAN. AND THEN THE MAKERSPACE MATERIALS. NEXT WE'LL LOOK AT PARKS AND RECREATION. THEIR FEES HAVE BEEN EVALUATED BASED ON A COST RECOVERY MODEL THAT WAS ADOPTED BY COUNCIL IN 2020.

FOR TO ENSURE THAT THEY ARE THEY HAVE EQUITABLE PRICING THAT REFLECTS THE VALUE AND THE COST OF SERVICE PROVIDED ACROSS RECREATIONAL PROGRAMING, MEMBERSHIPS AND FACILITIES. THE PROPOSED FEE STRUCTURE THAT YOU SEE HERE WILL BE BROUGHT BEFORE THE PARKS BOARD ON SEPTEMBER THE 14TH. JUST GOING THROUGH THOSE RATHER QUICKLY HERE YOU WILL SEE A NEW DISCOUNT EMPLOYEE DISCOUNT THAT WILL BE APPLIED TO CITY OF DENTON AND DISD EMPLOYEES AND UP TO SIX FAMILY MEMBERS. ONE OF THOSE ONES THAT I THINK HAS BEEN REQUESTED QUITE A BIT IS FOR THE WATER PARK, SO THAT WILL NOW BE INCLUDED GOING FORWARD. NEXT WE'LL LOOK AT DEVELOPMENT SERVICES. SO THEY ARE CONTINUING TO TRANSITION INTO A COST RECOVERY MODEL THAT WAS FIRST INITIATED IN 2019. THEY HAD MINOR UPDATES APPROVED IN 2025, BUT THEY DID NOT UPDATE FEES AT THAT POINT IN TIME. THIS YEAR'S REVISIONS INCORPORATE CURRENT DATA, UPDATING FEES BASED ON STAFF TIME AND DIRECT AND INDIRECT COSTS THAT ARE INCURRED. THIS STRENGTHENS THE DEPARTMENT'S ABILITY TO PROVIDE TIMELY REVIEWS, INSPECTIONS, AND PERMITTING SERVICES WHILE ALIGNING THAT WITH ACTUAL WORKLOAD AND RESOURCE DEMANDS.

SO THERE ARE 30 SLIDES HERE, SO I'M GOING TO GO THROUGH THIS ONE PRETTY QUICKLY. BUT THEY ARE FOCUSED ON BOTH NEW REDUCED AND REMOVED FEES ACROSS ALL SERVICES IN THE DEPARTMENT.

HERE WE HAVE ONE AND TWO FAMILY DWELLING UNIT PERMIT FEES, NEW COMMERCIAL BUILDING PERMIT FEES, PARKING LOT PERMIT FEES, BUILDING PERMIT, ELECTRIC, MECHANICAL AND PLUMBING FEES, ADDITIONS, ALTERATIONS, FIRE DAMAGE FEES. SIGN PERMIT FEES, MISCELLANEOUS FEES. QUITE A FEW OF THESE. HEALTH AND FOOD SAFETY PERMIT FEES. ZONING FEES. ALTERNATIVE PROCEDURE FEES.

[01:15:07]

PLATTING FEES AND THEN HISTORIC PRESERVATION FEES. SORRY ONE MORE. I THINK SITE DESIGN FEES, OTHER DEVELOPMENT FEES. ANY QUESTIONS ON THOSE BEFORE WE MOVE ON TO THE UTILITIES?

>> IF I COULD. ANY QUESTIONS ON THOSE SLIDES. >> BEFORE YOU GET INTO THE PRESENTATION I WANT TO PROVIDE SOME CLARIFICATION ON WHAT I'M GOING TO BE PROPOSING AS YOU MOVE FORWARD, BECAUSE THERE WAS SOME DISCUSSION LAST IN THE BUDGET WORKSHOP ON SATURDAY ABOUT THE 3% INCREASE OVERALL WITH THE ELECTRIC FEES. OH, WAIT FOR THEM TO COME IN. AND I THINK WHAT I SAID AT THE TIME WAS, YEAH, I'D LIKE TO HAVE A CONVERSATION ABOUT THE RENEWABLE ENERGY CREDITS. YOU KNOW, IF IT'S A $5 MILLION AND ALSO THE FUND BALANCE POLICY TO SEE IF THERE'S A WAY THAT WE COULD USE THOSE TO MAYBE OFFSET THE 3%. IT WAS MY INTENTION TO HAVE THOSE CONVERSATIONS DURING THIS BUDGET PROCESS. HOWEVER, I WAS INFORMED THAT THAT ISN'T POSSIBLE. SHORTLY AFTER THAT MEETING. SO IT'S GOING TO BE SCHEDULED FOR SOME TIME IN OCTOBER. SO WHAT I'M PROPOSING IS ON AT LEAST THE ELECTRICAL FEES, THE 3%. AND THERE'S REALLY TWO OPTIONS THAT I'M I'M THINKING ABOUT. IT'S REALLY UP TO THE COUNCIL. IS THAT, YOU KNOW, I'M SAYING LET'S. BECAUSE THE THE HISTORY OF THE $5 MILLION WITH THE RENEWABLE ENERGY CREDITS THAT WAS IN A WORK SESSION THAT WAS PRESENTED IN JUNE, ON JUNE THE 3RD AND 2025, ABOUT THAT WE'RE FORGOING $5 MILLION BECAUSE OF THE WAY WE'RE HANDLING REX AND THAT WE'RE ALLOWING THEM ALL TO EXPIRE. AND IS THERE A WAY THAT WE COULD MONETIZE THEM AND MOVE INTO THAT? AND OF COURSE, THERE WAS SOME QUESTION, I THINK, THE NEXT COUPLE WEEKS ON THAT, AND THE ANSWER TO IT WAS THAT WOULD CHANGE THE RATES ABOUT TWO, 2%, 1% ON, I THINK IS NATIVE LOAD 1% ON LARGE LOAD. THAT WAS A YEAR AGO. SO I DON'T KNOW WHAT THOSE NUMBERS ARE NOW, BUT MY MY PROPOSAL IS ONE WE CAN. WELL, I'M JUST GOING TO MAKE IT ONE BECAUSE I'VE TALKED TO THE CITY MANAGER ABOUT THIS. I WOULD SAY THAT WE CAN NOT VOTE FOR THE 3% INCREASE. WE COULD TOLL THAT IN THE BUDGET IF AND UNTIL WE HAVE THE CONVERSATION ON THE REX AND HOW WE WANT TO HANDLE THOSE AND WHAT KIND OF MONETARY VALUE THERE IS ON THOSE. AND ALSO THE POLICY DISCUSSION ON THE FUND BALANCE, SO THAT THEREFORE, YOU KNOW, EVERYBODY'S LOOKING AT THIS, I THINK WE MY INTENTION WAS TO ADDRESS THOSE TWO ISSUES BEFORE WE APPROVE THE BUDGET SO THAT IF WE DECIDED THAT THERE WAS MONEY THAT WE WOULD HAVE AVAILABLE OR A CHANGE IN THE POLICY, THAT THEREFORE THAT RATE INCREASE MAY NOT BE NEEDED, BUT IT DOESN'T SEEM LIKE THAT THAT'S GOING TO HAPPEN. SO TO ME, THERE'S TWO OPTIONS. WE CAN EITHER PASS THE BUDGET WITH THE 3% RATE INCREASE, BUT INSTRUCT STAFF, GIVE STAFF DIRECTION TO STAND DOWN ON THAT RATE INCREASE UNTIL WE HAVE THE CONVERSATION IN OCTOBER. AND THEREFORE, DEPENDING ON WHAT THE OUTCOME OF THAT CONVERSATION IS, YOU COULD EITHER SAY IT'S NOT NEEDED BECAUSE WE FOUND A WAY TO TO ABSORB SOME OF THAT WITH MAYBE SELLING THE REX AND SO FORTH. OR YOU, YOU JUST TAKE IT OUT OF THE BUDGET, APPROVE IT AS IS. AND THEN IF YOU GOT TO HAVE IT, YOU PUT IT BACK IN. BUT I THINK IT'S IMPERATIVE THAT WE HAVE THOSE CONVERSATIONS BEFOREHAND. I'VE BEEN TALKING ABOUT THE WRECK SITUATION FOR A YEAR, AND I'M NOT. ANYWAY, I THINK IT'S TIME NOW TO HAVE THAT CONVERSATION. WHETHER IT'S A 3% RATE INCREASE OR NOT. I MEAN, IF WE'RE LEAVING MONEY SOMEWHERE BECAUSE OF A POLICY DECISION THAT WE THINK WE'VE MADE, WHICH I DON'T KNOW WHERE THAT WAS MADE, THEN WE CAN REVISIT THAT DISCUSSION. SO THOSE ARE MY THOUGHTS ON THAT.

AND SO THE ONLY REASON I WANTED TO SAY THAT BEFORE WE GOT STARTED INTO THE ELECTRICAL, BECAUSE WHEN YOU LOOK THROUGH THE ELECTRICAL SLIDES, THEY ALL HAVE JUST A FLAT 3% GOING DOWN THE SIDE OF IT. AND I THINK THAT, YOU KNOW, MY COMMENTS AND OBSERVATIONS WERE GERMANE BEFORE WE DID IN CASE THERE'S A CERTAIN DIRECTION WE WANT TO GO. THAT MAY IMPACT THE PRESENTATION. SO I WILL STAND DOWN AND OPEN THE FLOOR TO DISCUSSION. YES, MAYOR PRO TEM.

>> ONE QUESTION ABOUT I DON'T KNOW IF POLICY IS THE RIGHT WORD TO USE IN THIS SITUATION, BUT IF WE WERE TO GIVE DIRECTION FOR THAT, THE TWO OPTIONS YOU GAVE OF HOW TO DO THAT, ESSENTIALLY IT'S JUST A NUMBERS GAME TEMPORARILY. YES. I'M CONCERNED THAT IF WE. TAKE IT OUT OF THE BUDGET NOW THAT THERE'S A LOT OF DIFFERENT MOVING PIECES THAT WILL IMPACT.

>> YES, GO AHEAD, BECAUSE I WANT THE CITY MANAGER TO BE ABLE TO WEIGH IN ON.

[01:20:03]

>> AND THAT'S AND THAT'S. YEAH, I'D LIKE TO WEIGH IN ON THAT. >> YEAH. I WOULD HAVE TO RERUN THE BUDGET NUMBERS BECAUSE IT WILL IMPACT THE TRANSFERS TO GENERAL FUND AS WELL AS THE ROI AND FRANCHISE FEE TRANSFER. SO I DON'T HAVE THAT INFORMATION RIGHT NOW. I WOULD HAVE TO BRING IT BACK THE NEXT MEETING. WE DO HAVE THE PUBLIC HEARING ON THE BUDGET, SO WE COULD HAVE A BRIEF WORK SESSION THAT DAY TO DISCUSS WHAT THAT LOOKS LIKE, BUT I DON'T HAVE THE NUMBERS

RIGHT NOW. >> OKAY. I JUST NEEDED CLARIFICATION ON THAT AT THE

MOMENT. >> COUNCIL MEMBER HOLLAND. >> THANK YOU. I, I REALLY, REALLY, REALLY LIKE THAT IDEA. I'M NOT POSITIVE WHAT THAT LOOKS LIKE. I DON'T KNOW HOW I DON'T KNOW HOW WE TELL ELECTRIC TO, TO, TO FORM A BUDGET BASED ON THAT. BUT IF THERE'S A WAY TO MAKE IT WORK, I'D SURE LIKE TO MAKE IT WORK BECAUSE WE DESERVE THAT. THE TAXPAYERS, THE RATE PAYERS DESERVE THAT. I APPRECIATE THE SPIRIT OF THAT. THANK YOU. MAYOR.

>> YES, COUNCILMAN PERRY. >> YEAH, I AGREE. I THINK THAT'S BEEN A CONTINUOUS CONVERSATION THAT WE'VE BEEN HAVING THROUGH THE BUDGET DISCUSSION. AND I THINK THAT WITH THE BPP MONEY, WITH THE TAX RATE GOING DOWN, I THINK THIS IS AN ADDITIONAL WAY TO HELP RENTERS AND FOLKS WHO DON'T OWN PROPERTY ALSO EXPERIENCE SOME TYPE OF RELIEF.

I AGREE. OKAY. >> YES. COUNCIL MEMBER JESTER. >> I WAS WONDERING IF WE KNOW OR CAN PREDICT WHEN THAT CONVERSATION COULD HAPPEN, BECAUSE THAT WOULD AFFECT WHETHER OR NOT I WOULD BE IN FAVOR FOR TABLING THE INCREASE UNTIL WE HAVE THE CONVERSATION VERSUS THE OTHER OPTION WOULD BE TO VOTE IN FAVOR OF IT AND LOOK AT PULLING SOME OF THAT BACK. FIRST OF ALL, WHEN CAN THAT HAPPEN? AND SECONDLY, I DON'T KNOW IF IT'S JUST IF IT'S A BUDGET QUESTION OR IF WE SHOULD ALSO HEAR FROM TONY AS FAR AS WHAT KIND OF UPSETTING THE APPLE CART THIS WOULD DO AT THIS POINT. SO WHAT I WOULD SAY IS I'M VERY I'M ALSO IN FAVOR OF HAVING THIS CONVERSATION. WHAT I DON'T WANT TO DO IS THROW OUR BUDGET PROCESS OUT OF WHACK. SINCE WE'VE GOT STATUTORY COMPLIANCE DATES THAT HAVE TO BE MET. SO IF IF WE COULD GET SOME INFORMATION AS TO TIMING, I THINK THAT WOULD HELP ME MAKE A DECISION. CITY

MANAGER THANK YOU. >> WE HAVE SCHEDULED THE DISCUSSION FOR BOTH OF THOSE

ITEMS FOR OCTOBER 27TH. >> AND IS THAT ENOUGH TIME TO IS THAT IS THERE ENOUGH BUFFER TIME FOR US TO MAKE A DECISION TO HAVE A BALANCED BUDGET BY THE DATE WE HAVE TO HAVE IT ALL

POSTED. >> WE HAVE TO HAVE. >> EVERYTHING AND THE. YEAH.

>> WE HAVE TO HAVE EVERYTHING POSTED AND THE BUDGET APPROVED BY THE END OF SEPTEMBER. SO WHAT THE MAYOR IS SAYING IS YOU COULD EITHER TAKE IT OUT OR YOU COULD LEAVE IT IN AND JUST DEFER THE RATE INCREASE, JUST NOT HAVE THE RATE INCREASE IMPLEMENTED UNTIL AFTER THAT DISCUSSION WITH COUNCIL IN OCTOBER. COUNCIL GIVES DIRECTION THEN TO EITHER

IMPLEMENT OR NOT IMPLEMENT THE RATE INCREASE. >> AND DOES THAT LEAVE US AT A DEFICIT IS THE NEXT QUESTION. I MEAN, THERE WAS JUSTIFICATION FOR THE INCREASE. WITHOUT THE

INCREASE, WHAT ARE WE LEFT WITH? >> I DON'T KNOW, WITHOUT RUNNING THE NUMBERS.

>> RIGHT. OKAY. BUT WE THINK THAT WE COULD GET THOSE NUMBERS AND HAVE THE CONVERSATION BY

THE NEXT WORK SESSION, BECAUSE WE HAVE TO. >> YEAH. MY, MY CONCERN WITH REMOVING IT IS THE IMPACT TO GENERAL FUND. RIGHT NOW. I JUST DON'T KNOW WHAT THAT IMPACT WILL LOOK LIKE. AND THAT COULD CHANGE A LOT OF THE THINGS THAT WE'VE ALREADY DISCUSSED AND

AGREED TO. >> YEAH. >> WELL, I THINK ONE OF THE OPTIONS WAS WE JUST APPROVE THE BUDGET AS IT'S WRITTEN. AND IF YOU HAVE THE 3% INCREASE IN THERE, THEN EVERYTHING STAYS THE SAME. THE ONLY THING THAT YOU'RE NOT IMPLEMENTING, AND MY UNDERSTANDING WAS THAT THAT 3% WAS PRIMARILY TO HELP RECHARGE THE FUND BALANCE THAT THAT IF I REMEMBER CORRECTLY, IT WASN'T ABOUT, YOU KNOW, A DEFICIT FOR EXPENSES OR PURCHASE POWER. IT WAS PRIMARILY TO INCREASE THE FUND BALANCE BASED UPON THAT POLICY THAT WAS PASSED BY THE CITY COUNCIL. SO IF WE LEAVE IT IN, IT PASSES AS IT IS, WE GIVE DIRECTION TO TOLL IT UNTIL WE HAVE THIS CONVERSATION ON OCTOBER 27TH. AND BASED UPON THAT CONVERSATION, YOU EITHER SAY, WELL, WE'VE GOT ENOUGH OF A POLICY DECISION AND ENOUGH SAVINGS FROM THE SELLING OF THE RECS TO, TO HELP US ALLEVIATE THAT 3%. AND THEN YOU JUST IT JUST FLOWS DOWN TO THE FUND BALANCE, I BELIEVE. OR IF IT'S LIKE IT DOESN'T MATTER, WE NEED THE 3% YOU'VE LOST ABOUT MAYBE

[01:25:06]

I THINK A MONTH, BUT I DON'T THINK THAT'S GOING TO BE THE SITUATION, TO BE QUITE HONEST.

I THINK ONCE WE HAVE THIS CONVERSATION. BUT YEAH, YOU'RE, YOU'RE, YOU'RE, YOU'RE SORT OF

YOU'VE GOT A VERY CURIOUS FACE. GO AHEAD. >> WHY, WHY I'VE BEEN DESCRIBED MANY DIFFERENT WAYS. THAT'S, THAT'S NOT ONE THAT I'VE HAD DESCRIBED MY FACE BEFORE, BUT I'LL TAKE IT. FROM WHAT I THOUGHT YOU HAD SAID BEFORE, THE MAX WE COULD GET. IF WE CHANGE POLICY REGARDING EITHER OUR FUND BALANCE GOALS OR UTILIZING AND MONETIZING THE RECS. I THOUGHT YOU SAID THAT WAS 2%, 1% ON ONE SIDE, ■1% ON THE OTHER.

>> NO, THAT'S NOT CORRECT. THE THE 5 MILLION. AND THIS IS FROM AN ANSWER TO A QUESTION THAT THE FORMER MAYOR MADE BACK IN JUNE OF 2025. AND SO STAFF REPLIED THAT THAT 5 MILLION COULD BE MONETIZED, POTENTIALLY. I MEAN, 1% ON NATIVE LOAD, 1% ON LARGE LOAD. I DON'T HAVE ANY IDEA WHAT ALL THE IMPLICATIONS THAT IS. BUT THEN THE FUND BALANCE, I MEAN, I THINK IT WAS REPORTED AT THE SATURDAY WORKSHOP THAT THE 3% REPRESENTS $4.5 MILLION IS WHAT IT REPRESENTS IN ADDITIONAL REVENUE TO GO STRAIGHT TO THE THE FUND BALANCE. AND SO THAT FUND BALANCE POLICY IS WITHIN OUR TOTAL DISCRETION BASED UPON THE EXPERTISE AND AND THE INFORMATION PROVIDED BY DME. AND THEN DEPENDING ON WHAT, IF ANY, THOSE RECS ARE MONETIZED, THAT MAY BE SOME ADDITIONAL SAVINGS THERE. I, I DON'T, I DON'T KNOW WHAT THAT OUTCOME IS GOING TO BE, BUT I'LL KNOW WHEN I HEAR THAT WE POTENTIALLY, IF WE'RE GOING $5 MILLION BECAUSE WE COULD CHANGE THE REC POLICY. AND IF WE DID THAT, THAT IT MIGHT NOT CHANGE MAYBE OUR 100% RENEWABLE BRAND, I DON'T KNOW, I'M JUST SAYING THE CONVERSATION IS WORTH HAVING WHEN WE'VE GOT THIS RATE INCREASE COMING. SO YEAH, IT WASN'T THE 2% WAS PRIMARILY FROM THE MONETIZATION OF THE RECS, THE FUND BALANCE. I MEAN, YOU COULD WE COULD MAKE A POLICY SAY, NO, WE'RE WE'RE GOING TO CHANGE THE FUND BALANCE PROJECTIONS TO X AND IT COULD ELIMINATE ELIMINATE IT OVERNIGHT BASED UPON INFORMATION FROM OUR EXPERTS.

>> WELL, THANK YOU FOR THE CLARIFICATION OF, OF WHAT I HEARD VERSUS WHAT WE KNOW AND WHERE IT CAME FROM. WHAT I WOULD SAY IS I INITIALLY, I THINK, TO BE SAFE AND THE IMPORTANCE THAT OUR ELECTRICITY IS TO EVERYONE, I THINK KEEPING THAT FUND BALANCE IS IMPORTANT.

HOWEVER, I'M CERTAINLY OPEN TO MONETIZING THE RECS TO GIVE EVERYONE A BREAK. I THINK A 3% IS A LARGE INCREASE. SO I'M IN FAVOR IN THE SAFEST, MOST CONSERVATIVE WAY OF MAKING THAT

HAPPEN. THANK YOU SO MUCH. >> I'M SORRY, COUNCIL MEMBER. >> AND I'M SORRY TO BELABOR THIS. I DON'T MEAN TO I AM SO FOR THIS THAT I WANT TO UNDERSTAND IT. WOULD THERE BE WOULD THERE BE A, A, A TRIGGER THAT WOULD SAY, OKAY, NOW WE'RE GOING TO OR, OR, OR AN ANTI TRIGGER. WE'RE NOT GOING TO HAVE TO INCREASE. WE'RE NOT GOING TO HAVE TO INCREASE. NOW.

WE'RE GOING TO HAVE TO INCREASE. WOULD THAT WOULD THERE BE SOMETHING LIKE THAT?

>> AND I'M JUST GOING TO TELL YOU MY OWN LAYMAN OBSERVATION. I THINK SO BECAUSE BASED UPON THE CONVERSATION, THE NUMBERS THAT WERE PRESENTED AND COUNCIL'S DECISION ON THE POLICY DIRECTION, WE WILL KNOW, IS THIS SOMETHING THAT THAT $4.5 MILLION HAS BEEN ACCOUNTED FOR IN SOME OTHER WAY OF FUNDING, SOME OTHER WAY OF REVENUE THAT WE'RE NOT REALIZING RIGHT NOW, OR IT'S NOT. AND SO I THINK BY THAT CONVERSATION, WE WILL BE ABLE TO GIVE A POLICY DIRECTION OF. AND SO WE'VE REALLY DELAYED THE IMPLEMENTATION OF THAT 3% REALLY BY A MONTH. IF IT LET'S SAY, WORST CASE SCENARIO, WE DIDN'T CHANGE THE POLICY.

THERE'S NO MONEY IN MONETIZATION OF THE RECS WITHIN THAT 3% WOULD GO INTO EFFECT.

WE'RE JUST IT'S BUDGETED FOR. BUT I WOULD SAY I WOULD RECOMMEND THAT WE TOLL IT, THAT WE THAT WE DELAY IT UNTIL WE HAVE THIS CONVERSATION. BECAUSE IF THE CONVERSATION RESULTS IN A SAVINGS TO DME OR ADDITIONAL REVENUE TO DME, THAT COULD ABSORB THAT $4.5 MILLION WOULD, THEN WE WOULDN'T HAVE A RATING. WE COULD SAY, WELL, WE'RE NOT IMPLEMENTING A RATE INCREASE AT

ALL. >> OKAY. SO RHETORICALLY SPEAKING, WE, WE COULD HAVE

THIS INCREASE IF WE HAD AN INCREASE IN JANUARY OR FEBRUARY. >> WELL.

>> OR WHATEVER. >> SURE. I WOULD HAVE TO LEAVE THAT TO THEM IN THE

CONVERSATION TO HELP US UNDERSTAND THE IMPLICATIONS. >> I'M ALL FOR IT. I'M ALL FOR

IT. >> YES. COUNCIL MEMBER PERRY. >> ARE YOU NEEDING DIRECTION FROM US IN TERMS OF LIKE, WANTING TO TABLE THIS PART FOR THOSE TWO CONVERSATIONS IN

OCTOBER. >> I THINK, AND I WANT TO ASK THE CITY ATTORNEY, BECAUSE WE ARE TALKING ABOUT BUDGETARY ITEMS. I PRESUME WE'RE STILL ON POSTING EVEN WITH THESE POLICY DISCUSSIONS. AND BECAUSE THEY HAVE BEEN BROUGHT UP IN THE BUDGET DISCUSSIONS AND. OKAY.

ALL RIGHT. YOU LOOK LIKE YOU NEED TO SAY SOMETHING. >> NO, YOU'RE STILL ON POSTING.

[01:30:06]

IT'S ALL IT'S A IT'S A BROAD POSTING WHEN WE TALK ABOUT BUDGET. AND THAT'S CERTAINLY

WITHIN IT. >> ALL RIGHT. THANK YOU. WELL, I THINK IT WOULD BE HELPFUL, I THINK, FOR STAFF IF WE GAVE THAT DIRECTION. NUMBER ONE, I THINK THE PRESENTATION I MEAN WE'VE ALL SEEN THE SLIDES. IT'S ALL 3% ON THE UTILITY SIDE, THE ELECTRIC SIDE. IF WE GAVE THAT DIRECTION, WE WOULD AT LEAST KNOW, OKAY, WE'RE GOING TO HAVE A CONVERSATION IN OCTOBER. THIS PART OF THE PRESENTATION WOULD BE TOLD OR IT WOULD THE RATE INCREASE WOULD STAND DOWN WHEN IT WOULD HAVE NORMALLY GONE INTO EFFECT UNTIL WE HAVE THAT CONVERSATION. SO IT'S VERY CRITICAL THAT OCTOBER 27TH, WE HAVE THAT CONVERSATION. SO SO I WOULD CERTAINLY ENTERTAIN, I

GUESS, MR. CITY ATTORNEY. YES, YES. GO AHEAD. >> I JUST WANTED TO COMMENT BEFORE WE. DIRECTION QUESTIONS I'M GOING TO HAVE IS I NEED TO UNDERSTAND THE BROADER PICTURE OF HOW RECS WILL INFLUENCE. I THINK WE'RE HAVING A UPDATE ON OUR CLIMATE ACTION ADAPTATION PLAN. WE HAVE THE RENEWABLE ENERGY PLAN. I NEED TO UNDERSTAND HOW MONETIZING THIS WOULD IMPACT THOSE TWO THINGS, BECAUSE THOSE HAVE BEEN COMMUNITY PRIORITIES AS WELL.

SO I NEED TO UNDERSTAND HOW THAT TIES IN. I WOULD NEED TO UNDERSTAND THINGS LIKE, IS THIS AN ON? WOULD THIS BE AN ONGOING SAVINGS? BECAUSE I KNOW THERE'S RATE INCREASES PLANNED IN THE FUTURE AS WELL. WOULD THAT BE AN ANNUAL THING? STUFF LIKE THAT IS WHAT I WOULD LIKE TO DISCUSS IF THIS COMES TO US. AND IF YOU WANT, I CAN PASS BACK TO DO DIRECTION OR I CAN

DO DIRECTION. NOW EITHER WAY. >> YOU HAVE. >> THE FLOOR. OKAY, SO FOR FOR THE BUDGET PURPOSES, I THINK LEAVING IT IN SEEMS LIKE THE, THE, THE CLEANEST ROUTE. AND THEN IT SOUNDS LIKE WE WOULD POTENTIALLY DISCUSS THIS IN OCTOBER. AND I'M UNDECIDED A LITTLE BIT ON WHETHER TO GO AHEAD AND THROTTLE THE 3% OR NOT. I'M A LITTLE UNDECIDED ON THAT AT THIS POINT, BUT I CAN AT LEAST GIVE DIRECTION THAT I WOULD LIKE TO KEEP THE 3% IN

THE BUDGET. >> OKAY. SO WHAT YOU'RE SAYING IS LEAVE IT IN, BUT YOU YOUR DIRECTION RIGHT NOW IS NOT TO DELAY IT, DELAY ITS IMPLEMENTATION.

>> IT IS. I'M UNDECIDED ON THAT PART. YEAH. >> OKAY. ALL RIGHT. THANK YOU.

I'M JUST GOING TO GO AROUND THE HORN MAYOR PRO TEM. >> I HAVE A BROADER QUESTION FIRST, AND THEN I'LL GIVE DIRECTION. AND IT MIGHT BE FOR THE CITY MANAGER OR FOR YOU.

I'M NOT SURE. AND I PROMISE IT'S RELEVANT. IT'S JUST GOING TO TAKE ME A WHILE TO GET THERE.

OUR OUR WE'RE GOING TO HAVE LIKE A PROFIT AT THE END OF THE YEAR FOR THE CITY OF LIKE 3.6 MILLION. IS THAT RIGHT? WE'RE WE'RE AHEAD. WE'RE AHEAD. IT'S AN ESTIMATE. RIGHT. OKAY. MY UNDERSTANDING IS THAT'S COMING FROM, WE, WE, WE DID NOT PERFORM AS WELL ON FRANCHISE FEES. OUR EYES. AND SO WHERE THAT THEN WAS MADE UP WAS FROM. HIRINGS, CORRECT. HIRING FREEZE ESSENTIALLY. I AM RIGHT SO FAR. CORRECT. YES. I JUST WANT TO MAKE SURE I'M NOT VERY SMART.

SO THE NEXT QUESTION I HAVE THEN IS AT THE SATURDAY SESSION, YOU HAD HAD MENTIONED THAT THIS UPCOMING YEAR WE WERE GOING TO FILL ALL THOSE VACANCIES. IS THAT CORRECT?

>> WE ARE BUDGETING FOR ALL OF THE VACANCIES. WE ARE BUDGETING TO FILL THEM. YES.

>> ARE YOU ARE ARE THEY ARE THE POSITIONS BEING FILLED? YES, THEY ARE BEING FILLED. YES.

OKAY. I ONLY I BRING THAT UP IN THIS DISCUSSION ONLY TO SAY THAT THERE IS A LITTLE BIT OF CONCERN I HAVE WITH FILLING ALL THOSE POSITIONS, GIVEN THE FACT THAT IF I'M CORRECT AND SOMEONE CAN CORRECT ME IF I'M NOT THE REASON FRANCHISING RATES WERE DOWN WERE BECAUSE OUR PROJECTIONS WERE VERY, VERY OFF FOR DMS ELECTRICITY. AND SO MY CONCERN IS, IS THAT IF THEY'RE VERY, VERY OFF AGAIN, THEN THERE'LL BE ISSUES. AND I THINK THAT'S SOMETHING WE SHOULD PROBABLY TAKE INTO CONSIDERATION WITH THIS. AM I AM I OFF IN SOME OF MY

CONCLUSIONS? AS FAR AS MAYBE THE RISK? >> NO, I THINK THAT'S ALWAYS A RISK. THE BUDGET IS A PLAN. WE DON'T KNOW HOW IT'S GOING TO ACTUALLY SHAKE OUT AND VACANCY.

MANAGING THOSE VACANCIES IS ONE OF THE TOOLS, THE BIGGEST TOOL THAT WE HAVE IN THE GENERAL FUND TO CURB OUR EXPENSES. OKAY. SO THAT'S ONE OF THE REASONS WE MONITOR THE BUDGET VERY CLOSELY.

WE LOOK AT OUR MONTHLY BUDGET REPORTS, AND IF WE SEE OUR REVENUES ARE LAGGING, THEN THERE ARE TRIGGERS LIKE MANAGE VACANCIES THAT WE PULL TO ENSURE THAT WE ARE NOT WE'RE

NOT DIPPING INTO THAT FUND BALANCE. >> OKAY, I APOLOGIZE THEN. I KNOW YOU'RE A LOT BETTER AT YOUR JOB THAN I WOULD EVER BE AT YOUR JOB. AND SO I

[01:35:04]

APPRECIATE THAT CLARIFICATION. WITH THAT IN MIND THEN. AND, AND TO YOUR CREDIT, YOU KNOW, WE'RE A LOT MORE CONSERVATIVE THIS YEAR THAN WE WERE WITH LAST YEAR'S PROJECTIONS. SO WITH THAT, I'M I'M OKAY WITH KEEPING THIS IN THE BUDGET, THE 3% INCREASE, LET'S NOT ACTUALLY START THE INCREASE AND HAVE A CONVERSATION ABOUT THOSE TWO ITEMS FIRST.

>> COUNCILMEMBER HOLLAND. >> WHAT HE SAID. >> OKAY. ALL RIGHT,

COUNCILMEMBER PERRY. >> I AGREE. OKAY, THANKS. >> COUNCILMEMBER JESTER.

>> AND FORGIVE ME. I JUST WANT TO CLARIFY. SO WE'RE KEEPING IT AT THE 3% AND THEN HAVING THE

CONVERSATION TO POTENTIALLY LOWER IT. IS THAT CORRECT? >> YES. WITH THE WITH THE OTHER DECIDING THE DECISION TO MAKE IS DO WE TOLL ITS IMPLEMENTATION UNTIL THE

CONVERSATION, OR DO WE GO AHEAD AND IMPLEMENT IT AS PLANNED? >> I'M SO SORRY. I THOUGHT THAT

WAS THE DIRECTION THAT WAS JUST. >> WELL, THEY'RE SAYING THEY'RE SAYING DON'T, DON'T DON'T GIVE

THE 3% HOLD OFF ON THE 3% INCREASE. YES. >> OKAY. YEAH. AND WE'VE GOT

FOUR. SO IT DOESN'T MATTER. SO YEAH, I'M IN FAVOR. >> OKAY. ALL RIGHT.

>> I THINK YOU MAY HAVE JUST CONVINCED ME ON MY UNDECIDED PORTION, BUT I DO HAVE A QUESTION FIRST. SO, SO LET'S SAY THAT WE ULTIMATELY DON'T IMPLEMENT THE 3%. LET'S SAY WE KEEP IT IN THE BUDGET AND THEN WE DON'T IMPLEMENT IT. GENERAL FUND WOULD BE BUDGETED TO ASSUME THE 3%. AND WOULD MONETIZING THE REX STILL IMPACT ROI? AND SOME OF THOSE.

>> I DON'T KNOW YET. >> WE DON'T KNOW YET. >> I DON'T KNOW YET. BUT IF WE WERE TO NOT IMPLEMENT THE 3% RATE INCREASE, I WOULD SUGGEST WE COME BACK WITH A BUDGET AMENDMENT TO MAKE SURE THAT EVERY EVERYTHING IS UPDATED WITH THE CORRECT REVENUE AND

EXPENDITURE NUMBERS. >> OKAY. I THINK BASED ON THAT LEVEL OF UNCERTAINTY AND WE DON'T KNOW WHAT IT WOULD DO TO THE GENERAL FUND, WHERE I WAS UNDECIDED EARLIER, I WOULD SAY JUST MOVE FORWARD WITH THE PLAN WITH THE 3%. AND IF WE WERE TO START DOING THIS, WE WOULD DO IT IN THE NEXT FISCAL YEAR WOULD BE WHERE I FALL IN THAT AT THIS POINT.

>> OKAY. >> ALL RIGHT. THANK YOU. SO IT SEEMS LIKE THE CONSENSUS IS HAVE THE CONVERSATION ON OCTOBER 27TH WITH THE REX AND THE FUND BALANCE, AND TO TOLL THE IMPLEMENTATION UNTIL AFTER THAT CONVERSATION PLAYS OUT. IS THAT CORRECT? IS THAT IT SEEMS

LIKE THAT'S THE DIRECTION THAT. YES, YES. >> JUST SO I'M CLEAR, THE RATE IS A SEPARATE THING FROM THE BUDGET. SO YOU'LL ADOPT A BUDGET. YOU'LL ADOPT A RATE.

YOU'RE SAYING PUT IT IN THE BUDGET BUT NOT ADOPT THE RATE. IS THAT THE DIRECTION?

>> WELL, OKAY, THAT SEEMS PRETTY TECHNICAL. I DON'T KNOW ABOUT THE ADOPTION, BUT WHAT I'M SAYING IS, FROM A LAYMAN'S PERSPECTIVE, PUT IT IN THE KEEP IT IN THE BUDGET, BUT DON'T, IF YOU WANT TO CALL IT ADOPTION OF THE RATE. YES, DON'T IMPLEMENT IT. SO IF THAT MEANS YOU ADOPT A LOWER RATE, THEN I DON'T KNOW HOW ALL THAT WORKS. SO WE WILL, YOU KNOW, WE MIGHT NEED TO WE MIGHT REVISIT WITH THAT WHEN WE COME BACK, I GUESS, FOR THE NEXT BUDGET DISCUSSION. SO I APPRECIATE THAT. THAT'S GOOD CLARIFICATION. OKAY. ALL RIGHT. I THINK YOU CAN PROBABLY MOVE PAST ELECTRICAL SLIDES UNLESS SOMEBODY WANTS TO SEE THEM ANYWAY. I MEAN, OKAY. ALL RIGHT.

YEAH. >> I'M JUST GOING TO SKIP RIGHT PAST THEM. ALL RIGHT. YOU DON'T WANT ME TO CLICK THAT MANY TIMES. TRUST ME. ALL RIGHT. SO JUST THE LAST THING THAT IS TECHNICALLY UNDER DME IS FOR CUSTOMER SERVICE. THIS IS AN UPDATE TO THE ORDINANCE LANGUAGE TO INCLUDE ELECTRONIC PAYMENTS AS PART OF THE RETURN ITEM FEE. AND THEN THE SECOND REVISES THE ORDINANCE TO INCLUDE THE SERVICE FEE FOR CAR CARD PAYMENTS THAT I KNOW WE'VE TALKED ABOUT A FEW TIMES. NEXT, WE'LL MOVE ON TO WATER UTILITIES. THEY HAVE A PROPOSED 3% ACROSS BASE CHARGES AND USAGE TIERS. IT REFLECTS RISING OPERATIONAL COSTS, CAPITAL NEEDS WITH AGING INFRASTRUCTURE AND THEN MEETING DEMAND. SO THESE HAVE BEEN PRESENTED AT BOTH P B AND WE TALKED ABOUT IT AT THE BUDGET WORKSHOP. SO I'M JUST GOING TO GO THROUGH THESE PRETTY QUICKLY. SO WE HAVE WATER SERVICE INSIDE CORPORATE LIMITS OUTSIDE CORPORATE LIMITS IRRIGATION INSIDE AND OUTSIDE. AND THEN I DID WANT TO STOP HERE FOR A SECOND TO DISCUSS THIS PARTICULAR SLIDE. THE FIRST IS FOR THE FIRE HYDRANT METER DEPOSIT. THIS DEPOSIT REFLECTS THE FULL REPLACEMENT VALUE OF A HYDRANT METER, INCLUDING THE BACKFLOW ASSEMBLY AND ACCESSORIES, INCLUDING A STAND, FREEZE PROTECTION AND A LOCK. AND THEN UNDER OUR CONTRACT WITH UPPER TRINITY REGIONAL WATER DISTRICTS, THE WHOLESALE RAW WATER SERVICE

[01:40:02]

RATE IS SET AT 85% OF DALLAS WATER UTILITIES POSTED UNTREATED WATER RATE. SO BASED ON THEIR MOST RECENT COST OF SERVICE, THIS REFLECTS THAT PERCENTAGE IN THE CONTRACT. AND THEN WE HAVE THE WHOLESALE WATER PASS THROUGH RATE AGAIN FOR UPPER TRINITY. AND IT IS SET BY CONTRACT. AND IT IS ADJUSTED ANNUALLY BASED ON CPI FORMULA.

>> REAL QUICK QUESTION AND THE SLIDE WHERE IT SHOWED WHAT THE RATES WERE FOR IN THE CORPORATE LIMITS AND OUTSIDE THE CORPORATE LIMITS. I REVIEWED THAT, BUT I WANT TO MAKE SURE BECAUSE THERE ARE WE CHARGING. SO ARE WE CHARGING MORE FOR OUTSIDE? I MEAN, HOW DO WE OUTSIDE CORPORATE LIMITS INSTEAD OF INSIDE? ARE THEY THE SAME?

>> IT'S MORE FOR IT'S MORE FOR OUTSIDE OUTSIDE. >> OKAY. THANK YOU. OKAY.

>> OKAY. AND THEN WE HAVE A CHANGE IN THE FIRE HYDRANT INSTALLATION FEE AS WELL. AND THAT REFLECTS THE FULL COST OF MATERIALS, LABOR, EQUIPMENT AND THE ADMINISTRATIVE COST. THIS IS THE FIRST UPDATE TO THIS FEE SINCE 2015. AND AGAIN, IT INCORPORATES ALL COMPONENTS

REQUIRED FOR A STANDARD HYDRANT INSTALLATION. >> DOES THAT INCLUDE THE COST

OF THE HYDRANT OR JUST THE PAVED PART? >> YES. IT INCLUDES THE COST OF HYDRANT. AND THEN WE HAVE A FEW RATE COMPARISON SLIDES. SO THIS IS FOR A RESIDENTIAL WATER BILL USING 9000 GALLONS. WE ARE ABOUT MID RANGE WHEN LOOKING AT OUR COMPARISON CITIES. AND THEN HERE WE HAVE THE SAME FOR COMMERCIAL AGAIN USING 9000 GALLONS. AND WE FALL IN THE MIDDLE. WHEN LOOKING AT OUR COMPARISON CITIES. NEXT WE'LL LOOK AT WASTEWATER. THERE IS A PROPOSED 9% INCREASE FOR BOTH THE FACILITY AND USAGE CHARGE FOR WASTEWATER. AGAIN, THIS HAS BEEN DISCUSSED AT BOTH PUB AND WITH COUNCIL AS PART OF THE JULY 21ST BUDGET UPDATE AND THEN THE BUDGET WORKSHOP. THIS RATE INCREASE SUPPORTS CONTINUED INVESTMENT IN THE SYSTEM, IN THE INFRASTRUCTURE AND TO MEET SERVICE DEMAND. AND YOU'LL SEE THAT THIS IS A STRAIGHT 9%. SO WE HAVE RESIDENTIAL, MOBILE, HOME PARK SERVICE, COMMERCIAL AND INDUSTRIAL SERVICE. AND THEN AGAIN, LOOKING AT THE RESIDENTIAL SEWER BILL BASED ON 6000 GALLONS. AGAIN, WE FALL IN THE MIDDLE. WHEN LOOKING AT THE COMPARISON CITIES A LITTLE BIT ON THE HIGHER END FOR THE COMMERCIAL SEWER BILL. NEXT WE'LL LOOK AT. YES,

>> YES, I'M SORRY, COUNCIL MEMBER. >> THIS MAY BE A QUESTION FOR STEPHEN GAY. IF HE'S IN THE ROOM. THERE HE IS. I NOTICED THAT WE CHARGE DIFFERENT RATES FOR INSIDE CORPORATE LIMITS AND OUTSIDE CORPORATE LIMITS FOR WATER. WHY NOT WASTE WATER?

>> STEPHEN SAYS WE DO. >> WE DO. AND WHY DO WE CHARGE DIFFERENT RATES INSIDE AND

OUTSIDE? I'M GOING SOMEWHERE WITH THIS, BY THE WAY. >> AND HERE INSIDE AND OUTSIDE

RATES. >> OKAY, SO WHY DO WE CHARGE DIFFERENT RATES FOR INSIDE AND

OUTSIDE? >> AFTERNOON. STEPHEN GAY GENERAL MANAGER, UTILITIES, STREET OPERATIONS IT'S BASED OFF OF THE COST OF SERVICE. SO WE DO COST OF SERVICE STUDIES.

AND THE SIMPLE ANSWER IS IT COSTS US MORE MONEY TO GET THOSE SERVICES OUT TO THOSE

AREAS OUTSIDE OF OUR CORPORATE LIMITS. >> THANK YOU STEPHEN. SO NOW FOR TONY. IS THAT THE CASE FOR ELECTRICITY AS WELL? IS HE IN HERE?

>> CORRECT. >> NOT AS SKINNY AS HE IS. TONY. THE GENERAL MANAGER. THE ANSWER IS NO. AS LONG AS IT'S ALL WITHIN THE SAME SERVICE TERRITORY, WE'RE REQUIRED TO CHARGE ALL CUSTOMERS THE SAME FAIR AND REASONABLE CHARGES. AND SO IT DOESN'T MATTER IF YOU'RE IN THE CITY OR NOT, AS LONG AS YOU'RE IN OUR SERVICE TERRITORY.

>> OKAY, SO THAT'S A LEGAL REQUIREMENT THAT INSIDE AND OUTSIDE CITY ALL HAS TO BE THE

SAME. >> I'M NOT SURE IT'S A LEGAL REQUIREMENT. I'D HAVE TO GO BACK AND LOOK AT THE STATUTE, BUT CERTAINLY THAT IS THE, THE PRACTICE ACROSS THE THE

INDUSTRY. >> OKAY. YEAH. I'D BE I'D BE KIND OF CURIOUS ON WHAT IT WOULD LOOK LIKE FOR ME TO, I GUESS, EXPLORE THAT IDEA. IF, IF IT COSTS MORE FOR WATER, WASTEWATER, I WOULD IMAGINE IT COST MORE FOR ELECTRICITY TO, YOU KNOW, MORE LINES AND THAT KIND OF THING. SO JUST KIND OF AN IDEA TO FLOAT OUT THERE. YOU DON'T HAVE.

>> TO ANSWER. >> THANK YOU. >> ALL RIGHT. WASTEWATER

[01:45:09]

UTILITY AGAIN, 9% INCREASE. SORRY WE DID THAT ONE ALREADY. DRAINAGE. SO DRAINAGE HAS A PROPOSED 5% INCREASE. AND THIS WOULD BE THE FIRST INCREASE SINCE THIS FEE WAS ADOPTED IN 2002. TAKE A LOOK AT THOSE AGAIN. STRAIGHT 5% RESIDENTIAL. WHEN WE LOOK AT THE RESIDENTIAL DRAINAGE BILL, WE ARE AT THE LOW END. WHEN LOOKING AT OUR COMPARISON CITIES FOR THAT PARTICULAR FEE COMMERCIAL SAME. WE ARE AT THE LOW END. AND THEN NEXT WE'LL LOOK AT SOLID WASTE AND RECYCLING. SO THERE ARE NO PROPOSED INCREASES FOR THIS YEAR. THERE IS HOWEVER A CLARIFICATION IN LANGUAGE AND THEN MOVING THE. WATER AND WASTEWATER LIQUID RATE ORDINANCE, MOVING A COMPONENT OF THAT TO SOLID WASTE AND RECYCLING. AGAIN, TO ALIGN THAT WITH OPERATIONAL RESPONSIBILITIES. THEN NEXT, I BELIEVE THIS IS THE LAST ONE IS DENTON ENTERPRISE AIRPORT. THEY ARE PROPOSING A CHANGE TO INCLUDE ELIMINATING THE ANNUAL INDEPENDENT OPERATOR FEE AND INTRODUCING A 30 DAY TEMPORARY PERMIT OPTION. THESE DO HELP TO MODERNIZE THEIR FEE STRUCTURE AND BETTER REFLECT THE CURRENT OPERATIONAL PRACTICES AT THE AIRPORT, WHILE CREATING PATHWAYS FOR SHORT TERM AERONAUTICAL SERVICE PROVIDERS.

BOTH OF THESE INCREASES WILL BE REFLECTED IN UPDATES TO THEIR MINIMUM OPERATING STANDARDS.

LOOKING AT OUR NEXT STEPS, SEPTEMBER 15TH, WE HAVE A BUDGET AND TAX RATE HEARING, AND THEN SEPTEMBER 22ND IS THE BUDGET AND TAX RATE ADOPTION. ANY QUESTIONS?

>> ANY QUESTIONS. YOU GOT TWO SECONDS. GO AHEAD. I'M SORRY. NO, I'M I'M TEASING YOU. GO

AHEAD. >> NOT A QUESTION. A STATEMENT TO THE COUNCIL. AND IT'S JUST KIND OF SOMETHING I'M ASKING FOR YOU TO KEEP IN YOUR MIND. IT'S GOING TO SOUND LIKE IT'S COMING OUT OF LEFT FIELD, BUT IT'S ABOUT THAT EXCESS $800,000. WE HAVE TO TO A LOT THINGS TO SOMETHING I WANT US TO KEEP IN MIND IS I ASKED A QUESTION IN THE BACKUP THAT YOU ALL PROBABLY READ ABOUT HOW MUCH MONEY IS ALLOTTED TO CLEANING THE DOWNTOWN SQUARE, AND IT'S 80,000 FOR THREE DAYS OF TRASH PICKUP. A FEW WEEKS AGO YOU HAD ASKED ACTUALLY IN A IN THE STAFF REPORT ABOUT NEW TRASH CANS DOWNTOWN, WHICH I THINK WE DESPERATELY NEED. DOWNTOWN'S GOTTEN FILTHY. I WALK IT 700 TIMES A YEAR BECAUSE I DO IT TWO, TWO TIMES A DAY. THE SQUARE. IT'S FILTHY. AND AN EXAMPLE OF THAT HAS BEEN A FEW DAYS AGO. THERE WAS VOMIT ON THE CORNER OF THE SQUARE THAT IT TOOK A FEW DAYS FOR IT TO GET CLEANED UP. AND SO WE ARE WE ARE NOT. WE COULD DO BETTER. AND SURELY I UNDERSTAND THAT WILL COST MORE MONEY. COUNCIL MEMBER JESTER. SHE'S SPOKEN TO THE DOWNTOWN BUSINESS OWNERS MORE THAN I THINK ANY OF US HAVE. AND AND I KNOW THAT THEY'RE FRUSTRATED. AND I WANT US TO KEEP THAT IN MIND BECAUSE THE MAYOR HAD TOLD ME ONCE THAT IN GENEVA, THEY'RE POWER WASHING THE SIDEWALKS. I THINK EVERY SINGLE DAY THERE'S SOMETHING WE GOT TO DO BETTER DOWN THERE. THIS IS LIKE THE GEM OF THE CITY, AND I WANT US TO KEEP THAT IN MIND, IF IT'S AT ALL POSSIBLE TO ALLOW

ANYTHING IN THE BUDGET TO THAT. >> COUNCIL MEMBER HOLLAND. >> THE PRO TEM. I'M FASCINATED BY THAT. YOU'RE OBVIOUSLY DOWNTOWN MORE THAN I AM. HAVE YOU NOTICED THAT? LACK OF CLEANLINESS SINCE THE AMBASSADOR PROGRAM WAS TERMINATED?

>> YEAH, SURE. I MEAN, PART OF IT'S PART OF IT IS DUE TO THAT. I DON'T I DON'T THINK AS FAR AS CLEANLINESS, THE AMBASSADOR PROGRAM HAD AREAS OF IMPROVEMENT WHEN IT CAME TO CLEANING THAT I THINK THEY LACKED THAT WE COULD HAVE MAYBE PUSHED A LITTLE HARDER ON. BUT

BUT YEAH, IT CERTAINLY HAS. >> I SUPPORTED THAT PROGRAM. AND, AND I THOUGHT IT WAS A GOOD ONE. AND IT DIDN'T IT DIDN'T PREVAIL. BUT, BUT I THINK THAT'S VERY, VERY

INTERESTING. THANK YOU. OKAY. >> ANYONE ELSE? YES. COUNCIL MEMBER. JESTER.

>> I JUST WANT TO ECHO WHAT THE COUNCIL MEMBERS HAVE SAID AND THE COMPLAINTS AND THAT I MEAN, THERE'S NO DENYING IT IS DIRTIER. AND THERE'S NOT A WEEK THAT GOES BY. I DON'T GET A TEXT MESSAGE WITH A PICTURE, WITH GRAFFITI, WITH THINGS YOU DON'T WANT TO MENTION. AND I MEAN, IT'S JUST WE KNOW WITHOUT A DOUBT THAT WE DID NOT BUDGET FOR THE SAME AMOUNT OF CLEANING

[01:50:06]

THAT WAS BEING DONE, POWER WASHING, ETCETERA, AT THE RATES THAT WAS BEING DONE WHEN THE AMBASSADORS WERE HERE. AND NOW WE ARE LIVING WITH THOSE CONSEQUENCES AND IT IS NOTICEABLE AND COMPLAINED ABOUT. THANK YOU. SO A GOOD POINT, GOOD POINT, THANK YOU.

>> THANK YOU. YES, COUNCILMEMBER RUMOHR. >> I DO APPRECIATE YOU BRINGING UP THE TRASH CANS. I ACTUALLY RECEIVED THAT QUESTION FROM SOMEBODY, AND I GUESS I HAD LEARNED TO IGNORE IT. AND YES, THEY ARE GETTING PRETTY NASTY. NO, I DEFINITELY AGREE. YOU KNOW, WE COULD USE MORE CLEANING IN DOWNTOWN. WHAT'S FUN ABOUT OUR JOB AS A GROUP IS WE HAVE ALL THESE COMPETING PRIORITIES AND WE ULTIMATELY HAVE TO PICK, YOU KNOW, PRIORITIZE EVERYTHING OF, YOU KNOW, IS CLEANING ABOVE OR BELOW FIRE PENSIONS? IS IT ABOVE OR BELOW SPONSORSHIP DOLLARS FOR EVENTS AND ORGANIZATIONS? AND SO THAT'S KIND OF THE QUESTION WE'RE GOING TO HAVE TO, TO WRESTLE WITH, WITH KIND OF THE

RESOURCES THAT WE HAVE. BUT I TOTALLY AGREE THAT IT COULD >> DO SOME MORE LOVE. THANK YOU

FOR SAYING THAT. >> DID YOU? YES. GO AHEAD. >> YEAH. AND IF I'M GOING OFF SCRIPT, PLEASE, PLEASE RING ME IN FRONT. I ALSO WOULD LIKE TO HAVE ACKNOWLEDGE THAT LIKE, FIRST OFF, YES, I AGREE WITH YOU AND I APPRECIATE YOU BRINGING THAT UP. NICK. MAYOR PRO TEM NICK STEVENS SORRY. FULL NAME. DOWNTOWN TOURS FUND. I WOULD ALSO LIKE TO TALK ABOUT WHAT OTHER OPPORTUNITIES TO USE FUNDING THAT ALREADY EXISTS FOR THE IMPROVEMENT OF THE DOWNTOWN DISTRICT IN THE HOPES THAT WE CAN. THIS IS A UNIQUE OPPORTUNITY, AND LIKE WE'VE CONTINUED TO DISCUSS, WE DON'T KNOW HOW MUCH LONGER IT WILL LAST AT THE LEVEL IT IS. SO I THINK BEING ABLE TO UTILIZE THIS FUNDING TO SEE IT GO TOWARD THINGS THAT, YOU KNOW, ARE CONTINUING TO BE UNDERFUNDED IS A IS A IS WHY IT'S MY PRIORITY. AND I WOULD LOVE TO HAVE THAT CONVERSATION WITH DOWNTOWN TOURS MONEY AND THROW MORE MONEY AT KEEPING IT

CLEANER. THANK YOU. I AGREE WITH YOU. >> SO I KNOW WE'VE HAD THIS DISCUSSION BEFORE AND BECAUSE I THINK AND CORRECT ME IF I'M WRONG, MISTER CITY ATTORNEY, THAT AS OUR TOURS ORDINANCE IS DRAFTED AND I'M TALKING ABOUT IN TERMS OF THE BUDGET, IN TERMS OF THE TOURISM BUDGET AND JUST BUDGET IN GENERAL. SO I WANT TO MAKE SURE THAT WE STAY ON TRACK THAT MAINTENANCE AND OR CLEANING THOSE KINDS OF THINGS CURRENTLY ARE NOT.

ACTIVITIES THAT ARE THAT QUALIFY FOR FUNDING FROM THE TOURS. AND I THINK I REMEMBER FROM OUR CONVERSATION IN THE PAST THAT YOU COULD BRING THAT BACK. AND I DON'T KNOW IF THERE'S ANY LEGAL PROHIBITION TO CERTAIN THINGS IN THE YOU KNOW, THAT THE TOURS FUNDS CAN BE USED FOR AS FAR AS I MEAN, THERE PROBABLY IS SOME CATEGORIZATION, BUT MAYBE IF THAT WE DIDN'T INCLUDE THAT, BUT MAYBE WE CAN INCLUDE IT, WHICH THEN WOULD OPEN UP

ADDITIONAL FUNDING FOR IT. SO I JUST DON'T KNOW THOSE OPTIONS. >> WE CAN LOOK INTO IT. OKAY.

ALL RIGHT. ANSWER FOR YOU ALL. >> OKAY. THANK YOU. APPRECIATE IT. ALL RIGHT. ANY ANY OTHER QUESTIONS ON THIS PRESENTATION, THIS AGENDA ITEM. ALL RIGHT. THANK YOU VERY MUCH. THANK YOU.

AND YOU GOT THROUGH WITH I THINK 10S LEFT AND MAYOR PRO TEM IS. SO IT'S HIS FAULT. YEAH.

BUT THANK YOU VERY, VERY GOOD. I APPRECIATE ALL YOUR HARD WORK IN THIS. THANK YOU SO MUCH. ALL

[C. ID 26-1303 Receive a report, hold a discussion, and give staff direction regarding the special events sponsorship and Hotel Occupancy Tax funds. [Estimated Presentation/Discussion Time: 30 minutes]]

RIGHT. WE'LL GO ON NOW TO AGENDA ITEM C WITH THE WORK SESSION, WHICH IS ID 26-1303.

RECEIVE REPORT DISCUSSION GIVING STAFF DIRECTION REGARDING THE SPECIAL EVENT

SPONSORSHIP AND HOTEL OCCUPANCY TAX FUNDS. >> EXCUSE ME SIR.

>> I'LL TELL YOU WHAT. BEFORE WE GET STARTED, LET'S TAKE ABOUT A FIVE MINUTE BREAK. YEAH.

THIS IS AOKAY. WELCOME, EVERYBOK TO THIS MEETING OF THE DENTON CITY COUNCIL IN OUR WORK SESSION MEETING ON AUGUST THE 18TH. IT IS 4:02 P.M. SO WE'RE ON TO AGENDA ITEM THREE OF OUR WORK SESSION, ID 261303. RECEIVE REPORT AND HOLD A DISCUSSION. GIVE STAFF DIRECTION REGARDING THE SPECIAL EVENTS, SPONSORSHIP AND HOTEL OCCUPANCY TAX FUNDS.

>> GOOD AFTERNOON MAYOR, MEMBERS OF COUNCIL. MATT HAMILTON, CHIEF FINANCIAL OFFICER, HERE TO PRESENT AN OVERVIEW OF THE HOTEL OCCUPANCY TAX AND SPONSORSHIP PROGRAM. SO THE FINANCE DEPARTMENT ADMINISTERS TWO DIFFERENT PROGRAMS THE HOT FUND PROGRAM AND THE SPONSORSHIP FUND PROGRAM, BOTH OF WHICH ARE OVERSEEN BY THE COMMUNITY PARTNERSHIP COMMITTEE. THERE IS A DIFFERENCE BETWEEN THE TWO DIFFERENT TYPES OF FUNDING. SO THE HOTEL OCCUPANCY TAXES, OTHERWISE KNOWN AS HOT TAXES, ARE A ARE A FUNDING SOURCE THAT HAS A NUMBER OF RESTRICTIONS ASSOCIATED WITH THE USE OF THOSE FUNDS. THE USES ARE GOVERNED BY TAX CODE. 351.101, WHICH SAYS THAT THE TAX MAY ONLY BE USED TO PROMOTE TOURISM

[01:55:02]

AND THE CONVENTION AND HOTEL INDUSTRIES. THE TEXAS COMPTROLLER HAS REFERRED TO WHAT'S CALLED A TEXAS TWO STEP TO ASSIST WITH DETERMINING ALLOWABLE EXPENDITURES. AND IN THIS TEXAS TWO STEP STEP, NUMBER ONE IS THAT THE TAX MUST BE USED TO ATTRACT TOURISTS TO HOTELS FOR OVERNIGHT STAYS. AND STEP NUMBER TWO, THE EXPENDITURES MUST FALL WITHIN NINE STATUTORY CATEGORIES. THE LAW REQUIRES THAT WHEN A HOTEL TAX IS USED FOR ONE OF THE NINE PURPOSES, IT MUST ALSO HAVE THE EFFECT OF ATTRACTING TOURISTS TO HOTELS FOR OVERNIGHT STAYS.

THE ART AND HISTORICAL CATEGORIES, WHICH ARE TWO OF THE NINE CATEGORIES, ALLOWED THE EXPENSES IN A FISCAL YEAR CANNOT EXCEED 15% OF THE TOTAL HOT REVENUE, AND THE CITY OF DENTON RESOLUTION 2013-021 REQUIRES THAT AT LEAST 2.4% OF TOTAL HOT REVENUE BE ALLOCATED TO PUBLIC ART. CONVERSELY, WITH SPONSORSHIP FUNDING, THIS IS NOT AS RESTRICTED AS THE HOTEL OCCUPANCY TAXES. THIS IS FOR CASH AND IN-KIND DONATIONS OF THE CITY TO SUPPORT LOCAL ORGANIZATIONS. THERE IS NO REQUIREMENT TO PROMOTE TOURISM OR TO HAVE OVERNIGHT STAYS ASSOCIATED WITH THOSE ORGANIZATIONS OR EVENTS. IT'S FUNDED BY THE GENERAL FUND, AS WELL AS DENTON MUNICIPAL ELECTRIC, AND THE FUNDING LEVEL IS DETERMINED IN THE ANNUAL BUDGET PROCESS BY CITY COUNCIL. SO TAKING A LOOK AT THE HOT PROGRAM, WE DO HAVE A FEW RECIPIENT REQUIREMENTS. THE APPLICANTS MUST BE A TAX EXEMPT NONPROFIT ORGANIZATION OR PUBLIC AGENCY. BOTH THE APPLICANT AND THE EVENT MUST BE IN THE CITY OF DENTON. THEY MUST HAVE NONDISCRIMINATION PRACTICES IN ALIGNMENT WITH FEDERAL LAW, SUCCESSFULLY FULFILLED ANY PRIOR CONTRACTS THAT THEY WOULD HAVE HAD WITH THE CITY, AND ALSO BE COMPLIANT WITH THE CITY'S SPECIAL EVENT ORDINANCE. IN TRYING TO PRIORITIZE EVENTS, THE COMMUNITY PARTNERSHIP COMMITTEE DETERMINED SOME PRIORITIES AND CRITERIA, THE FIRST TO LIMIT APPLICATIONS TO EVENTS WITH A MINIMUM OF 200 ATTENDEES, AND THIS ALIGNS WITH OUR SPECIAL EVENT CRITERIA, REQUIRE APPLICANTS TO HAVE ALTERNATIVE FUNDING SOURCES BESIDE CITY HALL OR SPONSORSHIP FUNDS, AND THE INTENT WITH THIS IS JUST TO ENSURE THAT THE ORGANIZATION IS SELF-SUFFICIENT AND NOT ENTIRELY RELIANT ON CITY FUNDS. THE EVENT MUST HAVE SUCCESSFULLY TAKEN PLACE IN PRIOR YEARS. NO FIRST TIME EVENTS WOULD BE CONSIDERED FOR FUNDING, AND THAT, AGAIN IS TO ENSURE THAT THE ORGANIZATION IS SELF-SUFFICIENT AND CAN PUT ON A SUCCESSFUL EVENT. THE EVENTS MUST DEMONSTRATE A POSITIVE ECONOMIC IMPACT TO THE CITY, AND THE APPLICANTS ARE REQUIRED TO SUBMIT AN APPLICATION ONLINE VIA OUR NEIGHBORLY SOFTWARE AND THEN ALL RECOMMENDATIONS FOR THE HOT PROGRAM ARE BASED ON THE SCORING CRITERIA. SO TAKING A LOOK AT THE SCORING CRITERIA, WHAT HAS BEEN PUT TOGETHER AND RECOMMENDED BY THE COMMUNITY PARTNERSHIP COMMITTEE FOR THE HOT PROGRAM ARE EIGHT CATEGORIES. THE FIRST DOES NOT IS NOT SCORED FOR ANY POINTS, BUT IT'S JUST IS THE ORGANIZATION ELIGIBLE AND COMPLIANT WITH THE GUIDELINES THAT HAVE BEEN PUT TOGETHER? THE SECOND CATEGORY IS THE TOURISM IMPACT AND HOW THESE CATEGORIES ARE LAID OUT. THEY GO FROM THE HIGHEST POINT VALUE DOWN TO THE LOWER POINT VALUES. SO WITH THE HOT PROGRAM, 25% OF THE SCORE IS ASSOCIATED WITH THE APPLICANT'S TOURISM IMPACT, AND IT MEASURES THEIR ABILITY TO GENERATE OVERNIGHT STAYS AND ATTRACT VISITORS IN ACCORDANCE WITH THE STATE STATUTES. USE OF OF THE FUNDING. ADDITIONALLY, THREE CATEGORIES WORTH 15% OR 15 POINTS ECONOMIC IMPACT MEASURING THE BENEFIT TO THE LOCAL ECONOMY, RESTAURANTS, RETAIL AND OTHER BUSINESSES THAT THE APPLICANT CAN PUT TOGETHER A MARKETING PLAN TO SHOW THEIR ABILITY TO EFFECTIVELY PROMOTE TOURISM AND THEIR ABILITY TO BUDGET AND BE FISCALLY RESPONSIBLE. IT MEASURES THEIR ABILITY TO BE SELF-SUSTAINABLE AND ALSO THAT THAT THEY HAVE A PLAN FOR THE FOR THE FUNDING. THE LAST THREE CATEGORIES THE ORGANIZATIONAL CAPACITY, COMMUNITY BENEFIT AND ALIGNMENT AND REPORTING AND EVALUATION PLAN ARE EACH WORTH TEN POINTS OR 10% OF THE SCORE EACH. AND THIS JUST MEASURES THEIR ABILITY TO SUCCESSFULLY EXECUTE THE PROJECT OR EVENT. THE CULTURAL AND TOURISM VALUE

[02:00:07]

OF THEIR EVENT, AS WELL AS THEIR ABILITY TO REPORT AND COMPLY WITH THE CITY'S REPORTING REQUIREMENTS. AS FAR AS THE SCORE AND INTERPRETATION, 90 TO 100 POINTS WE DETERMINED WAS EXCEPTIONAL AND WOULD RECEIVE PRIORITY FUNDING AT A 100%, 75 TO 89 POINTS, WAS A STRONG APPLICATION AND WOULD RECEIVE 80% OF THE FUNDING REQUESTED. 60 TO 74 POINTS, WAS A MODERATE APPLICATION AND WOULD RECEIVE PARTIAL FUNDING CONSIDERATION OF 60%, AND ANY APPLICANT WHO SCORED BELOW 60 POINTS WAS DEEMED TO HAVE A A LOW APPLICATION WITH MINIMAL FUNDING CONSIDERATION OF 40%. SO STAFF CREATED TWO FUNDING SCENARIOS FOR THE COMMUNITY PARTNERSHIP COMMITTEE. THE FIRST FUNDING SCENARIO PROVIDED FUNDING AT THE SAME LEVEL AS THE PROGRAM YEAR. AS THE CURRENT PROGRAM YEAR. YOU CAN SEE NEXT TO THE COLUMN ON THE LEFT WITH THE NAMES, THE APPLICATION SCORE. AND SO AT THE TOP THERE ARE THE ORGANIZATIONS WHO SCORED VERY HIGH. AND IT IS IN ORDER DOWN TO THE ORGANIZATIONS WHO SCORED SCORED LOWER THE LINE AT THE BOTTOM, THE GREATER DENTON ARTS COUNCIL, THE THE PUBLIC ART HAS THE N A THAT 70,000 728 IS THE 2.4% THAT IS REQUIRED BY THE RESOLUTION. CITY COUNCIL RESOLUTION. FUNDING SCENARIO NUMBER TWO PROVIDED FUNDING A FUNDING SCENARIO BASED ON THE SCORING RUBRIC TIERS. AND SO HERE YOU'LL SEE THE ORGANIZATIONS, THE APPLICATION SCORES. BUT THE RECOMMENDED FUNDING WAS BASED ON THESE APPLICATION SCORES AND THE SCORE AND INTERPRETATION THAT THAT I JUST REVIEWED. AND SO THOSE ORGANIZATIONS WHO HAD A HIGHER APPLICATION SCORE, IT WAS RECOMMENDED THAT THEY WOULD RECEIVE MORE FUNDING OR A HIGHER PERCENTAGE OF FUNDING AS ORGANIZATIONS WHO SCORED LOWER. SO TAKING A LOOK AT THE HOT FINANCIALS UNDER SCENARIO ONE AND TWO, THE FORECASTED RESOURCES FOR THE HOT FUND IS 5,391,802. WE DO HAVE A 380 AGREEMENT WITH THE EMBASSY SUITES THAT WE FORECAST AT A LITTLE OVER 1.1 MILLION. AND SO THE REMAINING RESOURCES AVAILABLE TO ALLOCATE IS 3,905,445. UNDER SCENARIO ONE, TOTAL EXPENDITURES WOULD BE 5,059,005 60 FOR AN ENDING FUND BALANCE OF 332,000 248. UNDER SCENARIO TWO, THE REMAINING FUND BALANCE WOULD BE 493,000 149. ONE NOTE I DO WANT TO MAKE ON THE FUND BALANCE THE COMMITTEE IN 2023 REDUCED THE TARGET FROM 1 MILLION TO 500,000, AND THE INTENT OF THAT WAS TO FUND ADDITIONAL ORGANIZATIONS. AND SO THE COMMITTEE HAS MAINTAINED THE $500,000 FUND BALANCE TARGET SINCE THAT TIME. ANY QUESTIONS ON THE HOT FUND? MAYBE I SHOULD PAUSE THERE AS WE TURN TO THE

SPONSORSHIP. >> SO BECAUSE I KNOW WE'RE GOING TO GO THROUGH AND I KNOW WE'VE ASKED FOR IT TO SORT OF HAVE AN IDEA OF HOW THE SCORING GOES. I DON'T I DON'T THINK THIS IS GOING TO BE THE FORUM TO MODIFY THAT FORMULA, THAT FORMULA. I THINK THAT'S GOING TO COME LATER. SO I THINK PROBABLY THE BIGGEST CONCERN, OR I THINK PEOPLE WANT TO DO IS GET TO, YOU KNOW, THE FUNDING LEVELS AND WHAT DO WE DO, IF ANYTHING, WITH ADDITIONAL MONIES IN CERTAIN AREAS. SO YEAH, JUST TRYING TO GIVE YOU AN IDEA OF, I THINK WHAT THE COUNCIL'S REALLY, WHAT WE'RE PROBABLY GOING TO TRY TO DO TODAY IS NOT SO MUCH GO OVER ALL THAT THOSE THINGS, BUT LOOK AT SOME SPECIFIC ITEMS IN THE WITH THE PROGRAMS AND THE

FUNDING. YEP. SURE. YEP. >> OKAY. TURNING TO THE SPONSOR SPONSORSHIP PROGRAM, MANY OF THE RECIPIENT REQUIREMENTS ARE THE SAME AS THE HOT PROGRAM. WE REQUIRE THEM TO BE NONPROFIT ENTITIES THAT THE APPLICANT IN EVENT MUST BE IN THE CITY OF DENTON, THAT THEY HAVE THE NONDISCRIMINATION PRACTICES FULFILLED, PRIOR CONTRACTS AND COMPLY WITH THE SPECIAL EVENT ORDINANCE. AS I MENTIONED EARLIER, THE SPONSORSHIP PROGRAM RECIPIENTS DO NOT NEED TO FOCUS ON TOURISM. HOWEVER, THEY MUST FURTHER A CHARITABLE CAUSE, ECONOMIC OR COMMUNITY

[02:05:05]

GROWTH OR PUBLIC INTEREST. THEY MUST SERVE TO BENEFIT THE ENTIRE COMMUNITY. THE EVENT MUST BE OPEN TO THE PUBLIC, ENCOURAGE PUBLIC ENGAGEMENT AND BE HELD IN A SAFE, ACCESSIBLE AND FAMILY FRIENDLY LOCATION. ADDITIONALLY, THE EVENT MUST SUPPORT THE CITY'S CORE VALUES.

SO THERE'S TWO COMPONENTS TO THE SPONSORSHIP PROGRAM. THE CITY PROVIDES CASH SUPPORT, WHICH ARE PHYSICAL DOLLARS PAYMENTS TO THESE ORGANIZATIONS. THE CURRENT BUDGET IS 150,110 FROM THE GENERAL FUND AND 40,000 FROM DME. THE CITY ALSO PROVIDES IN-KIND SUPPORT AND SO THIS WOULD BE PARK STAFF, POLICE OFFICERS, FIREFIGHTERS WHO ARE AT THE EVENTS AND THE ORGANIZATIONS ARE REIMBURSED FOR FOR THE COSTS ASSOCIATED WITH THOSE STAFF MEMBERS.

CURRENTLY, THE BUDGET FOR 2027 IS 200,000. AS THE MAYOR NOTED EARLIER, THE BUDGET WAS INCREASED IN 2024 FROM 250,000 TO 400,000. IT REMAINED AT 400,000 UNTIL THE CURRENT YEAR, WHEN IT WAS REDUCED TO 200,000, AND IS CURRENTLY BUDGETED AT 200,000 FOR NEXT YEAR. THE SPONSORSHIP APPLICATION SCORING HAS THE SAME CATEGORIES AS AS HOT, WITH THE EXCEPTION OF THE TOURISM IMPACT BEING REMOVED. THE POINTS ASSOCIATED WITH THE TOURISM IMPACT WERE ADDED TO THE ECONOMIC IMPACT, SO 40% OF THE SCORING FOR SPONSORSHIP IS IN THE ECONOMIC IMPACT CATEGORY.

AGAIN, THERE'S NO REQUIREMENT TO GENERATE OVERNIGHT STAYS OR ATTRACT VISITORS FROM OUTSIDE THE LOCAL AREA. THE SCORING INTERPRETATION IS A LITTLE DIFFERENT FOR FOR SPONSORSHIP, 90 TO 100 POINTS IS 100%, 75 TO 89 POINTS IS 70%, 60 TO 74 POINTS IS 50%, AND ANY SCORE BELOW 60 POINTS WAS NOT RECOMMENDED FOR FUNDING. AND THE REASON FOR THAT, RATHER THAN A 40%, WAS SIMPLY THE AMOUNT OF SPONSORSHIP FUNDING THAT WE HAVE AVAILABLE, THAT THERE JUST WASN'T ENOUGH FUNDING FOR ANY ORGANIZATIONS BELOW 60 POINTS. SO THE COMMUNITY PARTNERSHIPS COMMITTEE'S RECOMMENDATION WAS TO USE SCORING RUBRICS TO APPLY FUNDING BASED ON THE APPLICATION SCORES. ADDITIONALLY, THE COMMITTEE DID MAKE SOME ADJUSTMENTS UTILIZING CONTINGENCY FUNDS THAT WERE AVAILABLE, ADDING $17,500 IN HOT FUNDS TO THE DENTON BLACK FILM FESTIVAL INSTITUTE, ADDING $18,800 IN HOT FUNDS TO THE ARTS AND JAZZ FESTIVAL, AND ADDING $5,000 OF CASH, SPONSORSHIP AND $10,000 OF IN-KIND SPONSORSHIP TO THE KIWANIS 4TH OF JULY FIREWORKS EVENT. THE REMAINING CONTINGENCY BALANCES FOR HOT FUNDS. WELL, THE REMAINING FUND BALANCE IN HOT FUNDS UNDER SCENARIO TWO WOULD BE 493,000 149. THE CONTINGENCY BALANCE IN THE CASH SPONSORSHIP IS 5006 50, AND THE IN-KIND SPONSORSHIP AMOUNT CONTINGENCY AMOUNT REMAINING IS $10,000.

>> YES. WELL GO AHEAD. I JUST HAD A SPECIFIC QUESTION ABOUT A SPECIFIC FUNDING ALLOCATION, SO

I'LL WAIT ON THAT. GO AHEAD. >> SO THIS TAKES US TO THE COMBINED REQUEST. SO WHAT THIS ILLUSTRATES AND WHAT WE HAD PROVIDED TO YOU WAS ALL THE HOT SPONSORSHIP AND IN-KIND FUNDING COMBINED FOR EVERY ORGANIZATION SO THAT YOU'RE ABLE TO SEE THE TOTAL AMOUNT THAT AN ORGANIZATION IS RECEIVING FROM THE CITY IN EACH OF THESE THREE CATEGORIES. SO THE TOTAL REQUESTED FUNDING WAS 5,238,665. FROM THE ORGANIZATIONS. THE CPC RECOMMENDED FUNDING WAS 4,994,538. SO NEXT STEPS ARE TO DISCUSS THE FUNDING RECOMMENDATIONS TODAY, AND THEN THOSE RECOMMENDATIONS WILL BE INCLUDED IN THE CITY'S BUDGET FOR ADOPTION IN SEPTEMBER.

>> SO ONE QUICK QUESTION I HAVE, AND THEN I'LL GO AROUND THE HORN ON THE ON THE LAST SECOND TO THE LAST SLIDE, THE ONE WHERE YOU SHOWED THE I'M SORRY, KEEP GOING BACK TO THAT ONE. SO IS IT MY UNDERSTANDING, CORRECT ME IF I'M WRONG, THAT UNDER THE KIWANIS YOUTH SERVICES, THE 4TH OF JULY FIREWORKS, YOU HAVE IT IN PARENTHESES PLUS CASH PLUS $10,000. AND THIS IS UNDER COMMUNITY PARTNERSHIP COMMITTEE RECOMMENDATION. DOES THAT MEAN THAT THERE WASN'T ANY FUNDING

[02:10:05]

ALLOCATED WHEN THE COMMITTEE FIRST RECEIVED THIS? AND SO THEY HAD TO MAKE A SPECIFIC

REQUEST TO INCLUDE THAT. >> SO THE LET ME OKAY. >> I JUST WANT TO MAKE SURE I'M READING THIS. RIGHT. WELL, I'LL JUST SAY THIS. I MEAN, I THINK I THINK WE NEED TO REALLY LOOK AT THAT ONE. AND I DON'T, I MEAN, THERE'S A LOT OF THEM WE NEED TO LOOK AT, BUT I WAS SURPRISED ABOUT THAT ONE. SO ANYWAY, WE'LL GET INTO THE MORE DETAIL WORK. BUT I JUST WANT TO MAKE SURE I HAD UNDERSTANDING OF WHAT THAT WAS REALLY TELLING ME. OKAY. COUNCIL MEMBER PERRY,

AND THEN WE'LL GO AROUND. >> YES. THANK YOU MAYOR. THE WORKSTATION IS BUSY BECAUSE I HAVE LOTS OF QUESTIONS. MY FIRST QUESTION IS I APPRECIATED MAYOR PRO TEM QUESTION ABOUT THE FUND BALANCE. AND THE STAFF RESPONSE HAD MENTIONED THAT THE FUND BALANCE WOULD END WITH

APPROXIMATELY $920,000 BY END OF FISCAL YEAR 2026. >> SO THE 920,000. YES. THAT'S

CORRECT. YES. >> SO CAN YOU EXPLAIN THE SHIFT FROM THAT NUMBER TO WHAT WE'RE

LOOKING AT ON THE SCREEN, PLEASE? >> YEAH. SO. THERE'S A THERE'S A COUPLE THINGS AT PLAY. ONE IS THE THE PROJECTED FUND BALANCE WAS NOT ANTICIPATED PREVIOUSLY WHEN WE DID THE BUDGET LAST YEAR TO END AT 920,000, IT WAS CLOSER TO, TO THE 500,000. WHAT WE'VE SEEN IS SOME ADDITIONAL RECEIPTS ASSOCIATED WITH HOTEL REVENUE COME IN. AND SO THAT HAS INCREASED THAT ENDING FUND BALANCE. THE PROJECTED FUND BALANCE THIS YEAR TO START NEXT YEAR WITH A LITTLE BIT MORE. WHAT WHAT HAS HAPPENED IS THAT WE'RE ALLOCATING DOLLARS TO GET DOWN TO THAT POINT WHERE IT IS CLOSE TO THE 500,000 IN IN PROJECTED FUND BALANCE AT THE END OF 2027. SO THAT DIFFERENCE IS BEING ALLOCATED TO ORGANIZATIONS.

>> OKAY. SO THAT DIFFERENCE IS ALREADY IN THE PROJECTIONS, THE RECOMMENDATIONS THAT STAFF IS

MAKING. >> CORRECT. >> OKAY. YEAH. THANKS. I JUST WANTED TO UNDERSTAND WHERE THAT MONEY WENT. THANK YOU. THAT HELPS CLARIFY WHAT WE HAVE LEFT TO WORK WITH BECAUSE I WAS LIKE, WHERE IS THE OTHER FIVE? THANK YOU. THE SECOND KIND OF QUESTION IS IN YOUR SECOND RECOMMENDATION, THERE ARE, FOR EXAMPLE. JUST LOOK. DENTON BLACK FILM FESTIVAL IS AN EXAMPLE WHERE THERE ARE HOT FUNDS. REQUEST FOR 2027 SCORED ABOVE 90%, WHICH PER THAT HOT FUNDS APPLICATION RECOMMENDATION, IT RECOMMENDS THEY GET 100% FUNDING, BUT IN THE RECOMMENDATION BY STAFF, IT'S NOT 100% OF THAT FUNDING.

SO I'M WONDERING WHAT STAFF'S REASONING FOR MAYBE SHIFTING SOME OF THESE THESE RECOMMENDED FUND REQUESTS FOR HOT. IF THE APPLICATION STATES THAT MEETS THE METRIC. SO LIKE THIRD ONE DOWN, THEY SCORED 93. THEY ASKED FOR 98, BUT THEY'RE BEING RECOMMENDED FOR 625, WHICH IS

THE SAME AS THEY WERE FUNDED THE PREVIOUS YEAR. >> SORRY. AND LET ME CLARIFY, THOSE PERCENTAGES WERE NOT A PERCENTAGE OF WHAT THEY REQUESTED, BUT WHAT THEY WERE ALLOCATED IN THE PRIOR YEAR. SO IF THEY WERE ALLOCATED 62,500 AND THEY WERE SCORED IN THAT TOP TIER, THEY WOULD RECEIVE THE FUNDING THAT THEY RECEIVED IN THE PRIOR YEAR.

>> OKAY. HEARD. AND THAT WAS ACROSS THE BOARD, INCLUDING IN THE CPC MEETING, THE OLD

SPREADSHEET THAT I'M LOOKING AT IT. >> YES. AND THEN AT THE TIME, THE COMMITTEE HAD DETERMINED THAT ONE IN PARTICULAR THAT THAT THEY FELT THAT THE 625 WAS LOW BASED ON THE ORGANIZATION AND THE SCORE. AND IT WAS INCREASED.

>> BYRD. OKAY. OKAY. SO I, I APPRECIATE THAT ANSWER. THANK YOU. I'VE RECEIVED LOTS OF EMAILS. I DON'T KNOW ABOUT THE REST OF COUNCIL WITH A LOT OF CONCERNS ABOUT THE WAY THE SCORING METRIC WORKS, WHAT IT TAKES INTO ACCOUNT AND WHAT IT DOESN'T. AND I UNDERSTAND, MAYOR, THAT THAT'S A DISCUSSION FOR ANOTHER TIME. I SAY THAT TO SAY I SPENT A LOT OF TIME AS A MEMBER OF THE CPC COMMITTEE AT HOME. I MADE MY OWN SPREADSHEET AND MY OWN EXCEL DOC. I REALLY WANT TO DO RIGHT BY THESE EVENTS. AND I THINK THAT THERE ARE OTHER WAYS WE CAN SHIFT FUNDING TO MAKE IT A LITTLE BIT MORE EQUITABLE, SINCE A LOT OF FOLKS DON'T FEEL LIKE THE SCORING METRIC IS EQUITABLE. ONE OF THOSE COULD BE FUNDING AT 80% ACROSS THE BOARD FOR HOT FUNDS, WHICH WOULD LEAVE BECAUSE I AGAIN MADE A SPREADSHEET WHICH WOULD LEAVE

[02:15:04]

US $263,195 TO THEN ALLOCATE ACROSS AND BUILD ON THAT 80% OF EVERYONE'S REQUEST. THAT IS MY RECOMMENDATION. THAT'S WHERE I THINK WE SHOULD MOVE AND SHIFT, BECAUSE I UNDERSTAND THAT THE SPREADSHEETS ARE A LOT, AND IT'S HARD TO GO LINE ITEM BY LINE ITEM, AND THAT 80% DOES CUT SOME OF THESE DOWN. SO IT WOULD BE GOOD TO THEN PAD THEM BACK UP BECAUSE THEY SCORED HIGH, BECAUSE THEY PROVIDE TOURISM, BECAUSE THEY PROVIDE ECONOMIC DEVELOPMENT. BUT

THAT'S WHERE I'M SITTING. THANK YOU. >> JUST FOR JUST SO THAT I CAN UNDERSTAND. SO WHAT YOU DID IS YOU TOOK THE IS IT THE 2027 ORGANIZATIONAL REQUEST FOR FUNDS FOR HOT FUNDS? AND YOU TOOK THOSE REQUESTS? YES, SIR. EACH LINE ITEM. YES, SIR. AND YOU JUST SAID 80%. YES, SIR. AND THEN YOU TOOK THAT TOTAL OF 80% AND SUBTRACTED IT FROM THE PROJECTED AVAILABLE REVENUE, MINUS THE THE CONVENTION CENTER. AND ARE YOU SAYING THAT THERE'S

293 LEFT THERE, OR IS THAT WHAT THE FUND BALANCE WOULD BE? >> THE FUND BALANCE IS LEFT

WITH THAT AMOUNT OF MONEY. >> OKAY. ALL RIGHT. OKAY. OKAY. >> OH, AND SPEAKING OF THE FUND BALANCE, CAN YOU I UNDERSTAND THAT THE EMERGENCIES HAPPEN. ADDITIONAL REQUESTS COME IN THROUGHOUT THE YEAR. CONTINGENCY FUNDS IN-KIND MIGHT INCREASE THROUGH CONVERSATIONS YOU HAVE WITH THE EVENT COSTS INCREASE. ET-CETERA. WHAT IS THE REASONING BEHIND THE FUND

BALANCE FOR HOT FUNDS BEING KEPT? >> YEAH, THAT'S A THAT'S A REALLY GREAT QUESTION. SO, YOU KNOW, THE, THE FUNDING IS ALL BASED ON FORECASTED REVENUES.

AND WHILE IT IS UNLIKELY THERE COULD BE AN ECONOMIC EVENT THAT WOULD CREATE A DOWNTURN IN HOTEL REVENUES, IT HELPS TO, LIKE ANY RESERVE, ALLOW THE CITY TO CONTINUE TO FUND THE ORGANIZATIONS THAT WE HAVE COMMITTED TO FUNDING IN THAT YEAR AND THOSE EVENTS, WITHOUT SUDDENLY HAVING TO SAY, WE WE DON'T HAVE THE FUNDING TO PROVIDE FOR THESE EVENTS DUE TO, YOU KNOW, DECREASED REVENUES. AS YOU MENTIONED, THERE'S ALWAYS NOT ALWAYS, BUT THERE'S THE POSSIBILITY OF SOMETHING COMING UP DURING THE YEAR THAT THE COMMITTEE WOULD LIKE TO CONSIDER. BUT FOR FOR THE MOST PART, IT IS THE POTENTIAL FOR A TAX REFUND OF SOME KIND TO ARISE FOR SOME UNKNOWN CIRCUMSTANCE OR AN ECONOMIC DOWNTURN THAT WOULD IMPACT REVENUE. SO AT LEAST FOR THAT NEXT YEAR, WE'D BE ABLE TO FUND THE ORGANIZATIONS. THANK YOU.

>> I'VE GOT I'VE GOT A QUESTION ON THE THE DENTON 31 DAYS OF HALLOWEEN 2026 WAS WHERE WAS THE WHEN DID THAT BEGIN TO GET FUNDED OUT OF FUNDS? OR HAS IT ALWAYS BEEN OUT OF FUNDS?

>> I BELIEVE THE LAST YEAR WAS THE FIRST YEAR. OKAY. >> SORRY. WE GOT PEOPLE STANDING UP, JUMPING UP. ALL RIGHT, BOY, WE WANT TO GET THAT RIGHT.

>> I HAVE TO SAY, THOUGH, WHEN DAVID GAINES WAS HERE, HE USED TO JUMP UP. WE WOULD BE LIKE,

WE DON'T WANT TO BE LIKE THAT. AND NOW WE ARE. >> I KNOW HE'LL APPRECIATE THAT

COMMENT. YES. >> BUT YES, EVER SINCE THE FIRST YEAR THEY CAME MID-YEAR AND DID A BUDGET AMENDMENT. IT'S ALWAYS BEEN FUNDED FROM FROM HOTEL OCCUPANCY TAX FUNDS.

>> AND WHEN WAS THAT YEAR? >> WE THIS IS OUR THIRD YEAR. SO THIS WILL BE THE THIRD REQUEST. THE PRIOR TWO YEARS HAVE ALL BEEN FUNDED FROM HOTEL OCCUPANCY TAXES.

>> HAS IT BEEN THAT LEVEL $250,000? YES. OKAY. OKAY. ALL RIGHT. THANK YOU. YES. COUNCIL

MEMBER RUMOHR. >> COUNCIL MEMBER FERRY I DID I DID THE MATH. I TOOK 80% OF OF THE NUMBER OF 20, 27 REQUESTED HOT FUNDS. AND IT DID COME OUT TO 3 MILLION OR SORRY, 3,000,876 532 WHICH IS KIND OF IN THE RANGE THAT WE'RE SEEING FOR SCENARIOS ONE AND TWO. IT'S SOMEWHERE IN THAT VICINITY. AND THEN ARE YOU ARE YOU PROPOSING SO 80% ACROSS THE BOARD FOR HOT FUNDS SPECIFICALLY? AND THEN WE'VE WE HAVE THIS WHERE IS IT, 117,000 OR SO LEFT OVER FROM OUR PREVIOUS DISCUSSION IN OUR LAST BUDGET OR OUR LAST PRESENTATION, KIND OF USING THAT AND PRIORITIZING THE HIGHEST RANKING ONES AND KIND OF GOING DOWN THE LIST, IS THAT

SORT OF WHAT YOU'RE SURE? YEAH. >> WE ALSO HAVE OVER 260 K IN THE FUND BALANCE TO UTILIZE AS WELL. I THINK PERSONALLY, I UNDERSTAND THAT WE WANT TO PREPARE IN CASE THERE'S AN ECONOMIC DOWNTURN, BUT WE'RE TALKING ABOUT 500 K WHEN WE HAVE. $5.4 MILLION IN HOT FUNDS AVAILABLE TOTAL BEFORE GIVING OUT TO THE HOTEL, BEFORE ALLOCATING ANY OF THESE MONEY,

[02:20:03]

ANY OF THE MONEY, IS THAT CORRECT? TOTAL EXPENDITURES PLUS THE. YEAH, FIVE OVER 5

MILLION. YEAH. >> I HAVEN'T DONE THE MATH YET TO SEE HOW FAR THE 117,000 WOULD GO IF WE KIND OF STARTED GOING DOWN TO SORT OF LIKE, LET'S SAY A TOP RANKING OR TOP TOP SCORING EVENT OR SOMETHING, WE CUT THAT DOWN 80%. I DON'T KNOW HOW MUCH, HOW FAR DOWN OUR RANKING OR OUR SCORING LIST WE CAN GET BEFORE WE RUN OUT OF 117. SO I HAVEN'T BEEN ABLE TO DO THAT YET, BUT I WAS JUST ASKING FOR CLARIFICATION. THANK YOU.

>> YES. COUNCIL MEMBER JESTER. >> I JUST HAVE A COMMENT. I, I LIKE THE SIMPLICITY OF GIVING EVERYONE THAT ASKS A PROPORTION AND AN EQUAL PROPORTION. UNFORTUNATELY, I'M, I, I WISH I COULD SNAP MY FINGERS AND, AND, AND FOR ME, IT'S A GOOD DISCUSSION POINT. I DON'T KNOW THAT I CAN BE IN FAVOR OF THAT FOR DIFFERENT REASONS. FIRST, WHO WE GIVE HOT FUNDS TO DOES HAVE LEGAL STANDARDS THAT HAVE TO BE MET, AND NOT EVERYONE THAT APPLIES MEETS THOSE LEGAL STANDARDS. SO I DON'T KNOW THAT WE CAN JUST LOOK AT WHO APPLIED AND AUTOMATICALLY GIVE 80% TO.

SECONDLY, I MY CONCERN IS THAT IF WE SET THAT PRECEDENT, THEN EVERY GROUP WILL JUST ASK FOR MORE MONEY. IF THEY KNOW THAT THEY'RE GOING TO GET 80% OF WHAT THEY ASK FOR. SO I THINK THERE DOES NEED TO BE MORE UNFORTUNATELY, MORE DRILLING DOWN IN THE CRITICAL THINKING ABOUT EACH APPLICATION. AND THEN I DO THINK THAT BECAUSE THIS IS HOT FUNDS, BECAUSE IT'S NOT JUST A SPONSORSHIP, IT DOES NEED TO BE INTENDED TO, YOU KNOW, TO PUT IT EASILY, PUT HEADS IN BEDS. AND WE DO HAVE INFORMATION OF WHO HAS BEEN SUCCESSFUL AT THAT. AND WHAT WE DO MAKE THE MOST MONEY FROM THAT THEN HELPS US FUND NEXT YEAR'S. THAT'S ANOTHER KIND OF BEE IN MY BONNET AS FAR AS WHY I. FOR ME, I DON'T THINK THAT WOULD WORK. AND THEN I ALSO BELIEVE THAT THERE ARE SOME OF THESE EVENTS THAT ARE TRULY PART OF THE DENTON IDENTITY AND HAVE BEEN FOR MANY, MANY DECADES, AND I DO VALUE SUPPORTING THEM MORE THAN I SUPPORT A FIRST TIMER OR A SECOND TIME EVENT WITHOUT SOME KIND OF I MEAN, THIS IS AN INVESTMENT WHEN WE TALK ABOUT THE HOT FUNDS VERSUS, FOR ME AT LEAST, THE SPONSORSHIP. SO WHEN WE TALK ABOUT FOR ME PERSONALLY, ARTS AND JAZZ, WHEN WE TALK ABOUT THE FAIR AND RODEO, WHEN WE TALK ABOUT THEATER, DENTON, WHEN WE TALK ABOUT THE HOLIDAY TREE LIGHTING, I MEAN, YOU KNOW, 4TH OF JULY. I MEAN, THERE ARE SOME OF THESE AND AND RECENTLY COME ON SO STRONG, THE DAYS OF HALLOWEEN FOR, FOR ME. AND UNFORTUNATELY, IT'S THE HARDER WAY IN REALLY LOOKING AT EACH, EACH ASK WHEN IT COMES TO HOT FUNDS AND THE RETURN ON OUR INVESTMENT AS WELL AS, AGAIN, I THINK WHAT IS REALLY PART OF THE PART OF OUR HISTORY AND A BIG PART OF OUR IDENTITY VERSUS VERSUS SOME OF THESE THAT MAY BE BENEFIT A SMALL, SMALLER GROUP OF PEOPLE THAN THE ENTIRE COMMUNITY. AGAIN, JUST JUST MY $0.02. AND I CAN CERTAINLY APPRECIATE WHERE YOU'RE COMING

FROM FOR SURE. FOR SURE. ANYWAYS. THANK YOU. >> COUNCILMEMBER HOLLAND. YES.

>> I LOVE THE, THE IDEA OF OF MEMBER FERRIES SIMPLISTIC IDEA ON THIS AND, AND, AND, AND ON ITS FACE, IT'S, IT'S A GOOD IDEA. THE PROBLEM WITH THAT IS AS, AS COUNCIL MEMBER JESTER POINTED OUT, TO INCREASE YOUR FUNDING, YOU SIMPLY INCREASE YOUR, YOUR, YOUR NUMBER AND, AND YOUR AND YOUR 80% GOES UP WITH IT, LIKE IT OR NOT, SOME ORGANIZATIONS EVENTS ATTRACT MORE PEOPLE THAT SPEND THE NIGHT THAN OTHERS. EVENTS THAT TAKE MULTIPLE DAYS, MULTIPLE WEEKS A MONTH INHERENTLY ARE GOING TO HAVE MORE PEOPLE SPEND THE NIGHT IN A HOTEL, AND THAT'S CRUCIAL. LET'S READ THIS AGAIN. TAX MUST BE USED TO ATTRACT TOURISTS TO HOTELS FOR OVERNIGHT STAYS. MUST NOT, MAY, MUST AND IT'S HEADS IN HOTEL BEDS. NOT STAYING WITH AUNT FERN. IT'S IT'S IT'S IT'S IT'S IN A HOTEL. I THINK EVERY ORGANIZATION SHOULD BE JUDGED

[02:25:01]

ON ITS OWN MERIT. AND EACH ORGANIZATION BY THIS TIME OUGHT TO BE ABLE TO, TO COME UP WITH NUMBERS AND DEMONSTRATE THOSE NUMBERS, THAT THEY'RE ACTUALLY PUTTING HEADS IN HOTEL BEDS.

THANK YOU. MAYOR. >> YES, MAYOR PRO TEM, DID YOU. YEAH. I'M GOING TO GO TO THE PEOPLE WHO HAVEN'T SPOKE FIRST BEFORE COMING BACK AROUND THE HORN. YEAH.

>> BUT THIS IS OBVIOUSLY GOING TO BE AN ONGOING ROUND OF CONVERSATIONS. I THINK. I THINK WHERE I'M STUCK RIGHT NOW, LIKE COUNCIL MEMBER JESTER I HEAR YOUR POINT AND I DON'T ACTUALLY DISAGREE WITH YOU AT ALL. WHERE I'M STUCK IS I VIEW THE FUNDING THIS YEAR AS A ONE TIME THING, BECAUSE I THINK THAT THE WAY THAT WE'RE CHOOSING TO DECIDE HOW WE'RE FUNDING THESE WITH THE RUBRIC IS A LITTLE OFF. AND SO I THINK THAT'S WHAT I'M STRUGGLING WITH RIGHT NOW IS HOW DO WE HOW DO WE MAKE RIGHT WITHOUT SETTING AN EXPECTATION OF WHAT IS GOING TO BE HAPPENING IN YEARS TO COME? SO, SO I THINK I NEED HELP FROM BOTH SIDES COMING TO A

CONCLUSION ON, ON, ON, ON HOW I GO WITH THIS. >> OKAY. GO AHEAD.

>> I APPRECIATE MY PEERS, MY COLLEAGUES COMMENTS. I THINK FIRST AND FOREMOST, I THINK BECAUSE THIS SEPARATE CONVERSATION OF THIS MATRIX REWORK IS GOING TO BE A SEPARATE CONVERSATION. I DO WANT TO STATE WHAT I WANT TO SEE WITH THE MATRIX BEING REWORKED IS THAT WE, WE, WE BUILD IN FAR MORE NUANCE TO UNDERSTAND WHAT ORGANIZATIONS DO BRING TO DENTON, BECAUSE I DO THINK THAT THERE'S A LACK OF. THERE'S A LACK OF UNDERSTANDING ACROSS THE BOARD THAT IT THAT IT LEAVES OUT A GOOD EXAMPLE WOULD BE GDAC. RIGHT. IT'S A BUILDING THAT HOSTS A LOT OF OTHER PEOPLE'S EVENTS IN THEIR OWN SPACE. THEY ARE COLLABORATIVE PARTNERS IN A LOT OF EFFORTS ACROSS THE CITY THROUGHOUT THE YEAR. AND TO ME, BEING A GOOD PARTNER IS PART OF WHAT MAKES DENTON GREAT. AND BECAUSE THAT THEY'RE THEY'RE SUPPORTING SO MANY INITIATIVES. TO SEE THEM UNDERFUNDED IS HEARTBREAKING. AND I UNDERSTAND THAT THEY'RE UPSET ABOUT THAT WHEN THEY PUT IN THEIR APPLICATION LIKE EVERYONE ELSE.

AND TO THAT SAME OPPOSITE END, I'LL GO BACK TO DENTON BLACK FILM FESTIVAL. IT SCORED. IT SCORED CLOSE. IT SCORED 93 OUT OF 100. IT WAS RECOMMENDED FOR FULL FUNDING, AND IT WAS FUNDED THE SAME AS LAST YEAR, NOT FUNDED AT THE REQUEST THEY ASKED FOR THIS YEAR. BECAUSE THEIR BUDGET PROBABLY GREW, THEIR NEED GREW, BUT WE'RE GIVING THEM NOT A PENNY MORE FOR DOING EVERYTHING RIGHT. SO WHEN WE'RE TALKING ABOUT EQUITY ACROSS APPLICATIONS, I THINK WE'VE MISSED THE WE'VE MISSED I MISSED THE BUCK ON THIS ONE. SO I THINK MY, MY INTENTION IS TO TRY AND RIGHT THAT WRONG BY SAYING, LET'S MAKE THIS MORE EQUAL FOOTING THIS TIME AND SWITCH OUR APPLICATION PROCESSES UP TO ENSURE THAT WE DON'T GET EXACTLY WHAT I THINK I'M ALSO WORRIED ABOUT IS COUNCIL MEMBER JUST BROUGHT UP LIKE, I DON'T WANT PEOPLE TO JUST HAVE, OKAY, WELL, LET'S SET IT. LET'S SHOOT FOR THE MOON. IF THEY'LL GIVE US 80% OF THE MOON, RIGHT? WE WANT JUSTIFIABLE METRICS. ALSO DENTON BLACK FILM FESTIVAL, AS ANOTHER EXAMPLE, INCLUDED BACKUP DATA IN THEIR APPLICATION ABOUT THE DIFFERENT HOTELS THEY WERE WORKING WITH. HOW MANY BEDS, HOW MANY, HOW MANY NIGHTS THEY STAYED, ALL THOSE TOTALS ADDED UP ALL THOSE NUMBERS. AND AGAIN, I FEEL IT. IT DOESN'T DO ANYBODY ANY IT DOESN'T INCENTIVIZE PEOPLE TO PUT IN AN APPLICATION FOR HOT FUNDING WHEN THEY'RE JUST GOING TO GET REFUNDED WHEN THEY DO EVERYTHING THEY'RE SUPPOSED TO. I ALSO RECOMMENDED IN THE CPC MEETING, THE THIRD ONE WE HAD THE MOST RECENT, THAT THE CITY GIVE AN OPPORTUNITY TO PARTNER WITH AGENCIES, MAKE THAT IN-KIND TO UTILIZE OUR G. I S PLACE OR AI, WHATEVER WE USE IN THE CITY TO HELP CAPTURE THAT DATA FOR THESE AGENCIES THAT CAN'T AFFORD TO GET A GIS TRACKING SYSTEM OR A POLICE OR AI FOR THEIR EVENTS, BECAUSE IT IS REALLY COSTLY. SO I THINK THAT THERE ARE MULTIPLE AVENUES THAT WE CAN TRAVEL NEXT FISCAL YEAR. AND FOR ME, THIS JUST FEELS LIKE A WAY TO ENSURE WE SHORE UP FUNDING. AND THE POINT THAT COUNCIL MEMBER JESTER MADE ABOUT THE PERCENTAGE THAT WE CAN PUT IN CERTAIN ARTS AND HISTORY, I DO NEED TO BE MINDFUL OF THAT, AND THAT WOULD BE SOMETHING I WOULD NEED DIRECTION ON FROM CITY STAFF AS TO IF WE FUND 80%, DOES THIS PUT US IN A PRECARIOUS PLACE AS TO WHAT WE CAN AND CANNOT FUND

AT THAT LEVEL? DOES THAT MAKE SENSE? >> AND I MAY BE ABLE TO ANSWER THAT. I BELIEVE BASED ON THE TWO ORGANIZATIONS THAT ARE PRIMARILY FOCUSED ON AT LEAST THE HISTORICAL PRESERVATION PIECE, THAT WE WOULD NOT REACH THE LIMIT, OKAY, IF IT WERE TO BE FUNDED AT AT THAT LEVEL. OKAY. ONE OTHER JUST QUICK COMMENT, IF I MAY. I DID JUST WANT TO POINT OUT ON THIS SLIDE THAT THE THE TOTAL INCREASE IN FUNDING REQUESTS FROM LAST YEAR

[02:30:02]

TO THIS YEAR WAS 23.9%, AND THE FORECASTED REVENUE INCREASE OF HOT TAXES IS ABOUT 2% PER YEAR.

SO THERE THERE IS NOT ENOUGH FUNDING YEAR OVER YEAR TO FUND EVERYTHING THAT THAT THE ORGANIZATIONS MAY ASK FOR AT, AT THIS LEVEL. SO I JUST WANTED TO MAKE NOTE OF THAT.

>> I HEAR THAT, YEAH, FUNDING 100% WOULD PUT US IN THE DEFICIT BY CLOSE TO A MILLION.

RIGHT. JUST FOR THIS YEAR. RIGHT. >> SO I WANT TO JUST TALK ABOUT A COUPLE JUST IN GENERAL, AS FAR AS THE SPREADSHEET. AND SO WHEN I LOOK AT THE SPREADSHEET AND I'M JUST GOING TO BE FORTHRIGHT, I MEAN, I THINK AS MY COLLEAGUES HAVE SAID, THERE'S ORGANIZATIONS THAT, YOU KNOW, WOULD PROBABLY WARRANT MORE FUNDING THAN WHAT THEY'RE GETTING. AND WE HAVE TO MAKE THAT DECISION. I KNOW, OKAY, THIS IS GOING TO BE UNPOPULAR, BUT THERE'S ONLY THERE'S ONLY ONE ORGANIZATION THAT DIDN'T HAVE THEIR FUNDING CUT. AND THAT WAS US. SO I JUST, I JUST WANT TO MAKE SURE THAT, I MEAN, THAT'S NOT A SLAM ON ANYBODY.

I'M JUST SAYING THAT THAT WE'VE WE'VE GOTTEN THAT. SO MY, MY BIG THING, AND IT'S NOT TO THE DETRIMENT OF ANYBODY ELSE ON THIS LIST. AND IT'S NOT ABOUT FAVORITISM, BUT I WAS SHOCKED WHEN I HEARD THAT THERE WAS NO FUNDING FOR THE FIREWORKS SHOW COMING FROM STAFF. AND SO WHEN I LOOK ON THIS SPREADSHEET, THERE'S FOUR ORGANIZATIONS THAT SOLELY RELY UPON CASH AND CASH, SPONSORSHIP AND IN-KIND. IF I'M LOOKING AT THIS THING CORRECTLY AND IT'S THE ONES THAT HAVE FIGURES UNDER CPC RECOMMENDED SPONSORSHIP FUNDS AND RECOMMENDED IN-KIND, AND THERE'S A DASH UNDER RECOMMENDED HOT FUNDS, WHICH MEANS HOT FUNDS IS NOT CONTRIBUTING TO THEM. IT IS THE DENTON BREAKFAST KIWANIS TURKEY ROLL, I BELIEVE THAT'S MY LINES ARE CORRECT. THE DENTON DENTON COMMUNITY MARKET. FRIENDS WITH BENEFITS BALL BUDDIES, AND THEN THE KIWANIS YOUTH SERVICES INC, 4TH OF JULY FIREWORKS AND ALL OF THOSE. I THINK IT WAS 18,025.

THERE'S 25, 20,500. THERE'S 7500. IT'S ABOUT $45,000 TOTAL. AND I CAN'T SPEAK TO THE OTHER ONES. AND I MEAN, I COULD, BUT I KNOW THAT THE 4TH OF JULY CELEBRATION HAS BEEN ONE THAT HAS BEEN JUST IT'S BEEN ONE OF THOSE, YOU KNOW, ICONIC SHOWS THAT I MEAN, WE REMEMBER WHAT USED TO BE OUT AT THE FIELD SORT OF PRACTICE FIELD, AND IT WAS OUT AT THE STADIUM AND IT WAS. AND NOW IT'S AT THE FAIRGROUNDS. AND, AND I KNOW THAT THAT THAT ORGANIZATION, I FULL DISCLOSURE, I USED TO BE A MEMBER OF THAT ORGANIZATION BEFORE, YOU KNOW, MY HEALTH CHALLENGES AND ALL THAT. BUT WHAT THEY DO IS THEY PROVIDE A CHILDREN'S CLINIC. AND I'M JUST SHOCKED THAT OF SOMETHING THAT I DON'T KNOW HOW MANY PEOPLE COME OUT TO THAT THING.

THOUSANDS, TENS OF THOUSANDS. I MEAN, THEY'RE PARKED ALL OVER THE PLACE THERE. JOE, YOU'RE MAKING A FACE, I GUESS MAYBE MAYBE 10,000, 5000. THAT'S OKAY. BUT AND I GUESS TO AND I WANT TO ADDRESS THE NOTION THAT. SO ANYWAY, THAT'S MY CONCERN. I MEAN, I CERTAINLY WOULD BE FOR GIVING THEM. I MEAN, I THINK LAST YEAR THEY WERE FUNDED AT 26,800. SO I MEAN, IF IF THEY CAN COME UP, I MEAN, SOME OF THAT MONEY THAT WE HAVE LEFT OVER. BUT I DO WANT TO SAY, AND LEGAL MIGHT WEIGH IN ON THIS A LITTLE BIT, BUT I KNOW WHAT THE STATUTE SAYS ABOUT HEADS AND BEDS. OF COURSE, IT DOESN'T SAY YOU HAVE TO PROVIDE A DIRECT CORRELATION. IT SAYS IT'S SUPPOSED TO DO THAT. AND I GUESS FOR ME, WHEN I THINK OF ALL THE EVENTS IN THIS COMMUNITY, I CAN TELL YOU RIGHT NOW, WHEN PEOPLE SIGN UP TO GO TO ONE OF THE CONVENTION CENTER CONVENTIONS AT THE CONVENTION CENTER, THAT HOPEFULLY WILL OVERFLOW INTO THE OTHER HOTELS IN THE AREA, I THINK THEY'RE COMING PROBABLY YEAR ROUND, WHICH MEANS THEY'RE COMING NOT JUST FOR THESE SPECIFIC ICONIC EVENTS WE'VE HAD, YOU KNOW, THAT LAST FOR A WEEKEND OR A DAY OR SOMETHING LIKE THAT A WEEK, BUT THEY'RE COMING FOR WHAT DENTON HAS CREATED THROUGH THAT VIBE, THROUGH THAT SCENE, THROUGH ALL OF THOSE ORGANIZATIONS. NOW, THAT SOUNDS REALLY KIND OF, YOU KNOW, I MEAN, I UNDERSTAND, BUT I, I KNOW THAT WE'VE OPERATED LIKE THIS FOR YEARS. I MEAN, YEARS, OF COURSE, WE'VE NEVER HAD A CHALLENGE. I'M NOT SAYING WE DO SOMETHING BECAUSE WE DON'T HAVE A CHALLENGE. WHAT I'M SAYING IS, IS, IS IT REALLY I MEAN, IS,

[02:35:02]

ARE PEOPLE REALLY PROVIDING THIS PERSON STAYED IN THIS HOTEL ROOM FOR THIS SPECIFIC EVENT? AND IF THEY ARE, I'LL STAND CORRECTED. NO, I MEAN, YOU CAN FIND WHAT IS IT, CELL PHONE PINGS OR SOMETHING LIKE THAT. I THINK THERE'S SOME TECHNOLOGY WE CAN FIGURE OUT.

SOMEBODY HERE, SOMEBODY THERE, SOMEBODY THERE. OKAY. ALL RIGHT. FAIR ENOUGH. AND IF THAT'S WHAT THAT DATA SHOWS, THAT'S GREAT. DATA IS IMPORTANT. BUT I JUST TAKE THAT INTO CONSIDERATION WHEN I LOOK AT THIS, THAT WHEN I LOOK AT THIS LIST AND SOME PEOPLE AGREE WITH WHAT SOME OF THEM, SOME MAY NOT, I DON'T KNOW, BUT I DO KNOW IS COLLECTIVELY THEY PROVIDE WHAT THE UNIQUENESS OF DENTON IS. LET'S SAY WE ONLY HAD THE FOUR EVENTS, YOU KNOW, FOUR EVENTS, BIG, BIG EVENTS, YOU KNOW, DAY OF THE DEAD, CELEBRATION, ARTS AND JAZZ, BLUES FEST, DENTON BLACK FILM FESTIVAL, THIN LINE FILM, 5 OR 6 AND THAT'S IT. WE DIDN'T HAVE ANYTHING ELSE.

WOULD DENTON LOOK LIKE DENTON LOOKS AND HOW IT FEELS AND WHAT HAPPENS AND HOW PEOPLE ENJOY IT? I DON'T THINK SO. SO I'M GOING TO BE QUIET. MY BIG GOAL IS, CAN WE FIND A LITTLE MONEY? AND I'LL BE OPEN TO TALKING TO ABOUT THE OTHER ORGANIZATIONS, BUT CAN WE FIND JUST SOME ADDITIONAL FUNDING SO THAT, YOU KNOW, WHEN PEOPLE ARE GOING OUT AND ENJOYING THE FIREWORKS, EVEN THOUGH IT'S REALLY HOT, THAT AND QUITE HONESTLY, THE TURKEY ROLE TOO. I MEAN, I THINK LAST YEAR THE TURKEY ROLE DIDN'T GET ANY FUNDING FROM THAT. AND THEY, I DON'T KNOW

HOW MANY HOW MANY BIKERS DO YOU HAVE THAT COME RIDE THAT THING. >> A LITTLE OVER.

>> A THOUSAND, A THOUSAND. YEAH. >> AND VIRTUALLY ALL OF THEM ARE FROM OUT OF TOWN.

>> YEAH, YEAH. THAT'S MY SPIEL. I'M GOING TO STAND DOWN AND LISTEN TO EVERYBODY ELSE. SO

YES. COUNCILMEMBER HOLLAND. >> THE TURKEY ROLE DID NOT APPLY FOR FUNDS LAST YEAR BECAUSE WE DIDN'T FEEL LIKE WE QUALIFIED FOR. PUTTING HEADS IN BEDS. WE ATTRACT A LOT OF PEOPLE FROM OUT OF TOWN, BUT IN FACT, THEY DID NOT SPEND THE NIGHT IN A HOTEL ROOM. THAT'S THE DIFFERENCE. OKAY. YEAH. THE DENTON KIWANIS CLUB WAS A HUGE INFLUENCE IN MY LIFE. THEY THEY SPONSORED THE KEY CLUB AT DENTON HIGH SCHOOL, WHICH WAS A HUGE FACTOR IN MY LIFE. AND I'M AND I'M TRYING TO GIVE BACK TO THAT TODAY. TODAY I AM. I AM CURRENTLY THE SPONSOR OF THE DENTON HIGH KEY CLUB, AND IT'S A JOB THAT I LOVE DOING BECAUSE IT WAS SO INFLUENTIAL FOR ME.

SO SO THIS, THIS IS VERY, VERY DIFFICULT FOR ME TO FOR ME TO EXPRESS. BUT I'M SURE ALL THE MEMBERS READ THE FLIER THAT I GAVE YOU 2 OR 3 WEEKS AGO, THE HOTEL TWO STEP. I'M SURE EVERYBODY READ EVERY WORD OF THAT. THE SPECIFIC EXAMPLE OF AN ORGANIZATION THAT DOES OF AN EVENT THAT DOES NOT QUALIFY FOR HOT FUNDS IS A FIREWORKS SHOW. THE SPECIFIC EXAMPLE FUND THESE FUND THESE GOOD PEOPLE FROM OTHER FROM OTHER SOURCES, FROM THE GENERAL FUND FUND THEM. I GOT NO PROBLEM WITH THAT. BUT WE ARE COLLECTING. WE ARE COLLECTING TAXES. WE'RE TAX COLLECTORS HERE. AND, AND WE'RE WE'RE BURDENED, I THINK, BY THE COMPTROLLER'S OFFICE THAT SAYS, HERE'S HOW YOU SPEND IT. SURE. AND AND THEY SIMPLY SAY TAX MUST BE USED TO ATTRACT TOURISTS TO HOTELS FOR OVERNIGHT STAYS. OKAY. IT'S IT'S NOT THE WAY I DO IT. AND, AND I CAN'T THINK OF AN ORGANIZATION BETTER QUALIFIED TO GET MONEY TO SERVE THE NEEDS OF UNDERPRIVILEGED CHILDREN IN DENTON, DENTON, KIWANIS CLUB. I SINCERELY DON'T, BUT BUT IN

THAT EXAMPLE, THEY DON'T QUALIFY. I MEAN NO DISRESPECT. >> NO, NO. AND NONE TAKEN.

BECAUSE LET ME MAKE SURE I'M CLEAR. I WAS NOT ADVOCATING THAT THEY RECEIVE HOT FUNDS.

I'M SAYING THEY ARE JUST ONE OF FOUR OF THESE EVENTS THAT SOLELY RELY UPON SPONSORSHIP AND IN-KIND, WHICH IS FINE. THAT'S OKAY. I'M SAYING, CAN WE FUND THEM MORE OUT OF THAT

SPONSORSHIP AND IN KIND? IT HAS NOTHING TO DO WITH HOT FUNDS. >> I WOULD BE I WOULD BE THE

FIRST PERSON IN LINE TO VOTE FOR THAT. SIR, I. >> JUST WANTED TO CLARIFY.

>> THAT IT IS IT'S A PASSION FOR ME. I WANT TO FUND IT, BUT I WANT TO FUND IT LEGALLY.

>> UNDERSTAND? YES. I SHARE THAT SAME SENTIMENT. YES. YES, SIR. THANK YOU. YES. COUNCIL

MEMBER MOORE. >> I'M GOING TO THROW AN IDEA OUT THERE AND SEE WHERE IT LANDS. BUT FIRST I WANT TO RECOGNIZE OUT LOUD THAT THIS STINKS. THANK YOU, MATT, FOR VERY CLEARLY CALLING OUT THAT THERE'S NOT ENOUGH MONEY TO GO AROUND. WE'RE SHORT BY, I THINK,

[02:40:03]

A MILLION OF WHAT WAS REQUESTED. SO THE SITUATION REALLY STINKS. BUT WHAT I WANTED TO THROW OUT AND JUST KIND OF SEE WHAT EVERYONE'S REACTION IS, IS I APPRECIATE COUNCIL MEMBER JESTER FOR POINTING OUT I LIKED THE 80% IDEA. HOWEVER, I DID NOT CONSIDER THAT SOME OF THE REQUESTED FUNDING IS FROM BRAND NEW EVENTS. SO I WOULD CONTINUE TO WANT TO NOT FUND A BRAND NEW EVENT OR A FIRST TIME OSCAR, SO I WOULD NOT WANT THAT INCLUDED. SO I'M, I'M KIND OF WONDERING, AND I DIDN'T REALIZE THAT THE, THE 100% AND 80% AND ALL OF THAT WAS BASED ON LAST YEAR'S FUNDING. SO IN THEORY, SOMEBODY COULD LOSE FUNDING EVERY SINGLE YEAR BASED ON HOW THEY'RE SCORING. SO IF SOMEBODY'S SCORING A LITTLE LOW, THEY'RE GETTING 40% LESS EVERY, EVERY YOU KNOW, THAT'S A LITTLE CONCERNING. WE CAN FIX THAT AT A DIFFERENT DATE BECAUSE THERE'S STILL SOME, I GUESS, KINKS IN THE SCORING MATRIX. WHAT I WANT TO THROW OUT AND JUST SEE WHERE IT LANDS IS WHAT IF WE FUNDED BASED ON LAST YEAR'S RECEIPTS AND THEN PAD SOME OF THESE LONG TERM, LARGE SCALE DENTON STAPLE TYPE OF EVENTS AND BASICALLY JUST PAD WHAT NEEDS TO BE PADDED. SO LAST YEAR'S FUNDING THAT THEY RECEIVED. SO RATHER THAN THE 80%, 100% OF WHAT PEOPLE RECEIVED LAST YEAR AND PAD WHAT WE NEED TO PAD WITH WHATEVER FUNDING IS LEFT OVER, WHICH I WOULD WANT TO KEEP SOME CONTINGENCY JUST TO BE ON THE

SAFE SIDE. SO I'LL LET PEOPLE REACT TO THAT. >> SO NO NEW REQUEST FOR HOT FUNDS WAS FUNDED. JUST SO WE'RE ALL CLEAR, AM I CORRECT, FRIEND? ALL NEW? NO. ALL NEW REQUESTS.

>> NO NEW ORGANIZATIONS OR EVENTS. FIRST TIME EVENTS. THAT'S CORRECT.

>> RIGHT. OKAY. I JUST WANTED TO MAKE SURE I CLARIFIED THAT. YEAH.

>> ALL RIGHT. GO AHEAD. >> YES. GO AHEAD. COUNCILMEMBER. >> SO FOR PURPOSES OF DISCUSSION, I WOULD SAY THAT'S AN INTERESTING PROPOSITION. I THINK ONE OF THE CONCERNS I'VE HAD, TOO, IS THAT, YOU KNOW, NOT PULLING THE RUG OUT FROM ANYONE, YOU KNOW, I SEE SOME SOME OF THESE ARE CUT IN HALF FROM LAST YEAR. AND I THINK THAT WAS SOME OF THE EMAILS THAT I RECEIVED WAS. FOR BETTER OR FOR WORSE, THE EXPECTATION THAT IT WOULD BE SOMETHING SIMILAR. SO I DON'T KNOW. I'M OPEN TO THAT RECOMMENDATION. AND AGAIN, SOME WE KNOW WERE CUT HEAVILY LAST YEAR. SO THERE ARE A COUPLE THAT MAYBE WERE A LITTLE OUT OF WHACK THAT NEED A LITTLE MORE HELP. BUT YEAH, I'M INTERESTED IN DISCUSSING THAT. THANKS.

>> SAY THAT ONE MORE TIME. WHAT YOUR, WHAT YOUR OBSERVATION IS OR WHAT YOUR SURE PROPOSAL OR

RECOMMENDATION. >> IT WOULD BE SCENARIO ONE HERE, WHICH IS PROVIDE FUNDING AT THE SAME LEVELS AS PROGRAM YEAR 2026. OKAY, SO WE KNOW THAT THAT AMOUNT IS WHAT IS IT, 39 OR 3 MILLION? 9086613 RIGHT. OKAY. SO WE KNOW WHAT THAT NUMBER IS, BUT THERE WERE A LOT OF CUTS LAST YEAR. AND THERE'S, THERE'S SOME LARGE SCALE, LONG STANDING EVENTS AND ORGANIZATIONS THAT ARE SUFFERING A LITTLE BIT FINANCIALLY. SO WHAT I'M THROWING OUT THERE TO JUST SEE WHERE IT LANDS IS BASICALLY THIS 3,000,009. AND THEN FOR THOSE EVENTS AND ORGANIZATIONS THAT ARE MAYBE MORE LONG STANDING, MORE WELL ESTABLISHED, YOU KNOW, FIREWORKS, ARTS AND JAZZ, ALL OF THESE TYPES OF EVENTS, HOLIDAY LIGHTING, YOU KNOW, THOSE REALLY LARGE CITYWIDE EVENTS LOOKING AT. SO I THINK WE HAVE LIKE 117,000 FROM THAT, 800,000 FROM THE PREVIOUS PRESENTATION WHERE WE WERE LIKE, WHAT CAN WE DO WITH THAT? SO IF WE HAD 117,000 TO PLAY WITH, MAYBE THAT COULD BE COULD GO TOWARDS SORT OF PADDING SOME OF THOSE LARGER, LONG STANDING, DENSE STAPLE TYPE OF EVENTS LIKE FIREWORKS,

ARTS AND JAZZ AND THOSE KINDS OF THINGS. >> OKAY.

>> SO THAT'S JUST A GENERAL. >> YEAH, I UNDERSTAND, I GUESS THEN TO ME, THE QUESTION BECOMES, OKAY, WHAT ARE THOSE EVENTS? I MEAN, YOU KNOW, WHAT, WHAT, WHAT ARE THOSE EVENTS? SO

THAT YEAH, MAYOR PRO TEM. >> I JUST HAVE A QUICK QUESTION. >> FOR YOU ON, ON THE ON THE NUMBERS. YOU SAID THAT WITH THE GENERAL FUND MONEY THAT WE COULD USE, YOU SAID. 117 I THOUGHT THERE WAS FOUR IS IS THE ONE. 17 ASSUMING WE'RE GIVEN THE 1% RAISE. YES. OKAY.

I JUST WANTED TO CLARIFY WHERE YOU'RE. >> YES.

>> THANK YOU. >> COUNCIL MEMBER YES. >> AND AND MY RECOMMENDATION IS IF WE'RE GOING TO HAVE 117 K LEFT OVER THAT WE PRIORITIZE THAT FOR SPONSORSHIP MONEY BECAUSE THAT'S A BUCKET OF MONEY THAT WE CAN PUT INTO SPONSORSHIP. WHEREAS I DON'T KNOW IF WE CAN CROSS THAT OVER INTO ADDING IT TO HOT FUNDS, BUT HOT FUNDS WE HAVE, IF WE FUND, IF WE FUND 80% OF HOT FUND REQUESTS FOR ALL FOLKS THAT REQUESTED HOT FUNDS WITH

[02:45:07]

THE NUMBER THEY ASKED FOR IN 27, WE ARE NOT THAT FAR OFF FROM THESE PROJECTIONS. 2027 THERE ASK FOR HOT FUNDS. IF WE FUNDED EVERY SINGLE ONE AT 80%, WE ARE WITHIN 100 000 ISH, GIVE OR TAKE DOLLARS. WE WOULD STILL BE LEFT WITH A FUND BALANCE OF AROUND 260 K TO CONTINUE TO PAD IF WE WANTED, AND STILL HAVE THE 117 FOR OUR SPONSORSHIP APPLICANTS, FIREWORKS, ETC.

THAT'S THAT'S WHAT I'M RECOMMENDING WE DO. AND THAT'S KIND OF WHERE MY HEAD'S AT. AND HERE'S WHERE I WOULD PUT THESE LANES OF FUNDING. DOES THAT MAKE SENSE?

>> I HAVE CLARIFICATION. >> GRANTED, I DON'T KNOW WHAT THE MATH SAYS. I'M STANDING UP

HERE, GEORGE. THAT'S FAIR. >> YES. I'M SORRY. >> COUNCIL MEMBER FAIRY, ARE YOU GETTING THAT FROM A SPREADSHEET THAT YOU MADE OR ARE YOU LOOKING AT THIS HANDOUT

WE HAVE? >> SO THE HANDOUT I WAS GIVEN AT THE CPC MEETING, WHICH IS VERY SIMILAR TO THE ONE WE HAVE IN FRONT OF US, IS THE ONE I MADE AND REPLICATED. AND THEN I MADE DIFFERENT PROJECTIONS AND MOVED THEM AROUND BASED ON HOW THEY SCORED. I DID A SCORE BASED PROJECTION, 100 PROJECTION, THE ORIGINAL, AND THEN AN 80%. SO MY MATH COULD BE A LITTLE OFF BECAUSE WE'RE NOT GOING TO CHANGE THE 250 FOR HALLOWEEN TOWN. LIKE I DIDN'T, I DIDN'T CHANGE THAT. SO THAT ONE DIDN'T GET 80%, GOT 100% RIGHT. SO WITH MY PROJECTIONS THAT I MATHEMATICALLY DID IN THE SPREADSHEET, I'M SAYING $3,974,492 IS WHAT IT COMES OUT TO FOR FUNDING 80% OF HOT FUNDS, BECAUSE IN THE 2027 REQUESTED HOT FUNDS LINE, YOU HAVE BREAKFAST, KIWANIS THAT ASKS FOR 7000. AND IT WAS I DID INCLUDE THAT ONE. AND WE'RE.

AND THEN AGAIN, I TOOK OUT HALLOWEEN BECAUSE WE'RE NOT SUBTRACTING MONEY FROM THEM AND

WE'RE. >> I'M TRYING TO GET WITH WITH MY QUESTIONS TO YOU IS, DID, DID YOU FOR SURE REMOVE THE ONES THAT WERE NOT ELIGIBLE? BECAUSE WHEN I DID THE MATH EARLIER, I WAS TAKING THIS ENTIRE COLUMN OF 2027 REQUESTED HOT, WHICH IS OUR SECOND COLUMN ON TODAY'S HANDOUT. SO I'M JUST CONFIRMING THAT YOU PULLED OUT THE ONES THAT WEREN'T ELIGIBLE.

>> YES. SORRY. YEAH. THAT'S WHY KIWANIS BREAKFAST KIWANIS ISN'T IN THERE. BUT ON MY SHEET I SEE IT, BUT I CROSSED IT OUT BECAUSE IT'S NOT ELIGIBLE FOR THIS FUNDING LANE.

>> OKAY. THAT'S ALL I WAS. >> YEAH. GOOD QUESTION. SORRY. >> SO I MEAN, AND I APPRECIATE THE SIMPLICITY OF THAT, BUT I THINK IF YOU IF YOU ALSO IF YOU ALSO LOOK AT IT. SO LET'S JUST LET'S BE. OKAY, SO 80% OF DISCOVERED DENTON IS ABOUT $1.6 MILLION. I MEAN, THERE ARE ABOUT 2 MILLION I THINK IS 1.419. SO. WELL, 80% OF THE REQUEST IS ABOUT 1.61.6 SOMETHING OR I GUESS 1.7.8474. SO I MEAN, SO THAT'S ABOUT TWO IF I'M LOOKING AT MATH, RIGHT,

BECAUSE THEY REQUESTED $2,322.3 MILLION. >> 1.8 FOR MAYOR.

>> YEAH. OKAY. YEAH. SO THAT'S ABOUT $100,000 LOWER FOR THEM, WHICH I'M JUST POINTING THIS OUT BECAUSE THEY'RE ONE OF THE LARGEST RECIPIENTS OF HOT FUNDS. AND I KNOW THAT THERE'S BEEN SOME MOVING AROUND OF THAT, THAT IT USED TO BE AT ANOTHER LAND AT ANOTHER PLACE, AND IT WAS WITH THE CITY. NOW IT'S ON ITS OWN. SO I DON'T KNOW HOW ALL THAT FITS IN THERE. SO, I MEAN, SOME PEOPLE MAY LOSE FUNDING AND AND SOME PEOPLE WILL GAIN. SO I GUESS THAT'S JUST A DECISION THAT THE COUNCIL HAS TO MAKE. BUT I WOULD SAY AGAIN, THE SPONSORSHIP AND IN-KIND IS TOTALLY SEPARATE FROM WHAT YOU'RE DISCUSSING BECAUSE YOU'RE SAYING 80% OF HOT FUNDS AND SO FORTH AND SO ON. AND SO THAT MIGHT BE A SEPARATE DISCUSSION, JUST CONSIDERING, BECAUSE THERE ARE A LOT OF PEOPLE WHO DID RECEIVE HOT FUNDS THAT ARE ALSO GETTING SPONSORSHIP AND IN-KIND, WHICH I MEAN, THAT'S OKAY. THAT'S, THAT'S, THAT'S WHAT WE DECIDED. SO SOME WILL RECEIVE SOME AND SOME WILL GET MORE AND SOME WILL GET LESS. SO. ALL RIGHT, THE REAL QUESTION IS WE'VE GOT TO MAKE A DECISION. SO LET'S JUST KEEP IT TO HOT FUNDS. RIGHT NOW. WE CAN DEAL WITH THE SPONSORSHIP BECAUSE THAT'S THAT'S SOMETHING THAT IS MORE FLUID. WE'VE GOT GENERAL FUND MONEY WE CAN DO. SO THIS IS THE ONE THAT I THINK IS WHAT I'VE RECEIVED A LOT OF CORRESPONDENCE ON. SO. THOUGHTS I MEAN, I MEAN, IT'S OUTSIDE OF US GOING THROUGH HERE LINE BY LINE, WHICH WE CAN WE CAN DO THAT. I MEAN, I MEAN, THAT'S WHAT I TALKED ABOUT OVER THE LAST SIX MONTHS IS WE'VE GOT TO

[02:50:03]

FIGURE OUT HOW WE CAN DO THIS IN A WAY THAT DOESN'T DUPLICATE ENERGY AND THOSE KINDS OF THINGS. SO I OPEN IT UP TO COUNCIL'S DIRECTION PROPOSALS. WE'VE GOT SOME ON THE TABLE.

YES. COUNCIL MEMBER RUMOHR. >> I THINK FOR THE SAKE OF SOME LEVEL OF STABILITY AND FUNDING, IF WE'RE TALKING JUST ABOUT THE HOT FUNDS, BUT KEEPING IN MIND WHAT I THREW OUT THERE. GOING WITH THIS FIRST SCENARIO AS A STARTING POINT OF GIVING FOLKS THE SAME AMOUNT OF FUNDING THEY GOT LAST YEAR, UNDERSTANDING THAT OVER THE NEXT YEAR WE WILL BE LOOKING AT THE MATRIX AND HOW ALL OF THIS IS ALLOCATED AND TRYING TO IMPROVE THAT. SO THAT WOULD BE WHERE I WOULD STAND ON THE HOT FUNDS, UNDERSTANDING THAT WE'LL TALK ABOUT PADDING POTENTIALLY

AFTERWARDS. >> OKAY, SO YOU'RE SAYING FOR THAT FIRST COLUMN 2026 TOTAL FUNDING, YOU'RE SAYING GIVE PEOPLE GIVE THESE ORGANIZATIONS WHAT THEY WHAT THEY GOT LAST

YEAR, WHAT THEIR SAY THAT ONE MORE TIME. >> I'M PROPOSING WHAT'S ON THE SCREEN RIGHT NOW. OKAY, SO SCENARIO ONE, GIVING FOLKS WHAT THEY GOT LAST YEAR AS, AS OUR

STARTING POINT. >> YEAH. UNDER THE PY226 FUNDING. YES, YES. OKAY.

>> FOR THIS YEAR, ONLY UNDERSTANDING THAT HOPEFULLY WE WILL HAVE A BETTER SITUATION

NEXT TIME. OKAY. >> ALL RIGHT. ANY. OH YES. COUNCILMEMBER HOLLAND.

>> I JUST I SIMPLY DISAGREE. EACH EACH REQUEST SHOULD BE CONSIDERED ON ITS OWN MERIT.

NOT NOT A BLANKET, ONE SIZE FITS ALL. SOME SOME OF THESE ORGANIZATIONS ARE ASKING FOR, FOR OVER 50% INCREASE. AND SOME ARE ASKING WHAT FOR 11%, 14%. I JUST DON'T SEE HOW THAT. I JUST DON'T SEE HOW THAT'S. ONE SIZE DOES NOT FIT ALL. I'M I'M SORRY. I THINK I THINK EVERY, EVERY EVENT SHOULD BE CONSIDERED ON ITS OWN MERIT AND, AND HOW STRONG IT BRINGS TOURIST

DOLLARS TO DENTON. >> OKAY. ALL RIGHT. YES, COUNCILMEMBER.

>> I'M SORRY TO BELABOR THIS POINT, I REALLY AM. I AGREE WITH YOU BECAUSE I THINK THERE IN LIES THE PROBLEM. THE SCORING RUBRIC DOESN'T REFLECT EXACTLY WHAT YOU'RE WANTING IT TO. AND I'M SORRY, I KEEP BRINGING UP DENTON BLACK FILM FESTIVAL, BUT I, I READ EVERY SINGLE SCHOLARSHIP APPLICATION AND EVERY SINGLE HOT FUND APPLICATION. THAT BACKUP WAS 1222 PAGES LONG. DENTON BLACK FILM FESTIVAL PROVIDED THE INFORMATION ABOUT HEADS AND BEDS. IT DID EXACTLY WHAT IT WAS SUPPOSED TO DO. IT WAS JUDGED BLINDLY ACROSS TWO DIFFERENT DEPARTMENTS BY TWO PEOPLE, AND IT SCORED 93. YET AGAIN, THE FUNDING RECOMMENDATION IS THE SAME AMOUNT AS LAST YEAR, NOT AN INCREASE TO WHAT THEY'RE ASKING FOR NOW. SO IN THAT SPECIFIC EXAMPLE, WHICH IS NOT UNIQUE, THERE ARE MULTIPLE SEVERAL, MANY OTHER APPLICANTS WHO DID EXACTLY THE SAME THING. WE'RE WE'RE UNDERFUNDING THEM. THINGS ARE GOING UP IN PRICE. COST OF SERVICES ARE GOING UP IN PRICE RENTALS ARE GOING UP IN PRICE, W THEIR FILMS TO SPEAK. ANY GETTING BANDS TO COME PLAY. THESE COSTS ARE GOING UP. SO IF WE FUND THEM EXACTLY LIKE THEY WERE FUNDED LAST YEAR, WE'RE ACTUALLY UNDERFUNDING THEM YEAR OVER YEAR. SO I'M HAPPY TO TAKE THIS LINE ITEM BY LINE ITEM TO GO THROUGH EACH ONE AND DISCUSS THIS IS THE SCORING. THIS IS WHAT WE THINK. THIS IS HOW WE COULD SHIFT THIS MONEY. I'M HAPPY TO DO THAT. I WAS JUST TRYING TO THROW OUT AN EASY SOLUTION, BUT I UNDERSTAND I'VE SPENT A LOT OF TIME WITH THIS AND THAT'S TOTALLY FAIR. SO YEAH, I'M OPEN TO GOING LINE

ITEM BY LINE ITEM. >> I DON'T KNOW THAT WE HAVE 30 COUNCIL MEETING TO GO LINE ITEM BY LINE ITEM TODAY THROUGH THE HOT FUNDS AND THEN THE SPONSORSHIP. WHAT I WOULD HOPE IS THAT THE COMMITTEE THAT WAS CREATED IN ORDER TO MAKE THESE RECOMMENDATIONS COULD POSSIBLY EITHER LOOK AT IT AGAIN OR. I DON'T KNOW THAT WE'RE GOING TO COME UP WITH A SOLUTION EVERYONE'S HAPPY WITH TODAY, AND YET DECISIONS HAVE TO BE MADE FOR BUDGET PURPOSES. SO I,

I THINK WE EITHER >> GO FORWARD WITH THE CURRENT CPC RECOMMENDED FUNDING, WHICH AGAIN, THAT COMMITTEE MET OUTSIDE OF HERE, SPENT THEIR TIME GOING THROUGH THE APPLICATIONS, LISTENING TO ALL THE APPLICANTS THAT WANTED TO PRESENT. I WOULD THINK THAT THEY HAVE A LITTLE MORE BACKGROUND THAN THE REST OF US BECAUSE OF THAT, AND THAT WAS THE WHOLE PURPOSE OF THAT COMMITTEE. SO I ALSO DON'T WANT TO USURP THAT COMMITTEE'S WORK

[02:55:04]

AND SAY WE'RE JUST CHANGING LINE BY LINE, EVERY SINGLE ITEM. SO I'M NOT REALLY SURE WHAT THE SOLUTION IS. BUT AGAIN, I WITH A 6:00 PUBLIC COUNCIL MEETING TO BEGIN, I WOULD LOOK FOR ANOTHER SOLUTION VERSUS TRYING TO. AND WE ALSO HAVE A CLOSED SESSION. I DON'T KNOW IF I KNOW THERE ARE LEGAL MATTERS. I DON'T KNOW IF IT'S SOMETHING THAT HAS TO BE DECIDED TODAY, AND WE HAVE TO KEEP TIME FOR THAT. BUT I THINK I DON'T KNOW THAT THAT IS A SOLUTION. IF WE NEED RESOLUTION TODAY AND. I DON'T KNOW THAT WE'RE EVER GOING TO COME TO AN AGREEMENT, WHAT I'M TRYING TO DO IS LEAN ON THE PROCESS, AS OUR MAYOR WOULD SAY, IN THIS YEAR'S ALLOCATIONS, POTENTIALLY, BECAUSE I DON'T THINK WE HAVE TIME TO GO LINE BY LINE. AND I ALSO THINK IT'S A LITTLE OUT OF PLACE, CONSIDERING WE HAVE A COUNCIL COMMITTEE AND STAFF LIAISONS AND PRESENTATIONS THAT WERE FOR THIS PURPOSE. SO I'M SORRY, I'M NOT I DON'T I'M PROBABLY NOT HELPING, BUT I'M JUST TRYING TO FURTHER THE CONVERSATION IN A WAY THAT'S CONSTRUCTIVE CONSIDERING OUR CONSTRAINTS. I HOPE THAT'S OKAY. OKAY.

>> ANYBODY ELSE? YES, MAYOR PRO TEM. >> I HAVE A I HAVE A QUESTION TO THAT POINT. I MEAN, COULD THE CPC THEORETICALLY MEET AGAIN TO DISCUSS THIS?

>> I THINK WE HAVE A MEETING SCHEDULED. FRIDAY, BUT WE DON'T HAVE IT LIKE THE AGENDA IS ALREADY BEEN POSTED. SO WE'D HAVE TO CALL A SPECIAL CALLED MEETING OF CPC.

>> YES, MAYOR PRO TEM. >> TO YOUR POINT, I SEE THE VALIDITY IN IN AND IT'S JUST AN OPTION. BUT I ALSO UNDERSTAND THERE'S COMPLICATIONS TO THIS OPTION, WHICH IS THAT ONE OF THE MEMBERS OF THE CPC WOULD NOT BE ATTENDING THE CPC. AND SO I WOULD LIKE IT TO GO BACK TO THE CPC, IF THAT I UNDERSTAND THAT'S INCONVENIENT. THE CAVEAT TO THAT WOULD BE TO PUT, MAYOR, WHAT'S IN THAT PERSON'S PLACE TO DISCUSS IT, BECAUSE I KNOW IT WAS SOMETHING THAT YOU DID CARE ABOUT THROUGHOUT THE CAMPAIGN. AND WE'RE VERY, YOU KNOW. DILIGENT ON I DON'T KNOW IF I HAVE A SUPPORT TO DO THAT, THOUGH. AND SO I'M JUST THROWING THAT OUT

THERE. >> SURE. >> YES, COUNCILMEMBER, JUST.

>> ONE OTHER. I'M SORRY. AND AGAIN, I MAY OR MAY NOT BE HELPING, BUT I FEEL LIKE IT NEEDS TO BE SAID. WE HAD ALL OF THESE ORGANIZATIONS RELY UPON THE SCORING RUBRIC THAT WE GAVE THEM AND GO TO THE TROUBLE OF PUTTING THESE APPLICATIONS TOGETHER ACCORDING TO WHAT THEY UNDERSTOOD THEY WOULD BE SCORED ON. I DON'T KNOW THAT IT'S FAIR TO THROW IT ALL OUT. I'M NOT SAYING I HAVE THE ANSWER, BUT THAT SEEMS UNFAIR TO. SO JUST ANOTHER FUN THING TO CONSIDER

AS WE TRY TO MOVE FORWARD IN THE BEST INTEREST OF OUR CITY. >> ANYBODY ELSE?

>> SORRY, I'M NO FUN. I'M NO FUN. >> THE LAST THING I WILL ADD ABOUT THE CPC COMMITTEE IS WE ALSO DIDN'T KNOW WHERE WE SAT WITH BPP FUNDING EITHER. WE DIDN'T KNOW HOW MUCH FUNDING SOURCES EXISTED TO TO REPLENISH TO PAD ON TOP OF, AGAIN, THE MATRIX, WHEN SCORING DOESN'T REFLECT THE FUNDING RECOMMENDATION, I DON'T I DON'T UNDERSTAND FOR ME, THAT'S THAT'S COUNTERINTUITIVE. IF I APPLY FOR SOMETHING AND I'M TOLD I'M GOING TO GET 100% IF I'M IF I MAKE THIS SCORE, AND THEN I ACTUALLY DON'T GET ANY INCREASE AT ALL FOR MY PRIOR YEAR. THAT SYSTEM DOESN'T FEEL LIKE IT'S UPHOLDING ITS END OF

THE BARGAIN. >> WELL, I MEAN, WE CAN I'M JUST GOING TO BE HONEST, I'M NOT ONE THAT HAS A STRICT TIME CONSTRAINT BECAUSE IF WE NEED TO RESOLVE THINGS, WE NEED TO RESOLVE THEM. AND SO I'M NOT GOING TO SIT HERE AND SAY, WE HAVE TO GO THROUGH THIS LINE ITEM BY LINE ITEM. BUT YET, IF THAT'S REALLY I MEAN, WE'VE GOT PEOPLE SITTING OUT HERE FROM THESE ORGANIZATIONS THAT ARE LISTENING INTENTLY TO OUR DISCUSSION AND WONDERING, YOU KNOW, WHERE WE'RE GOING TO GO FROM HERE. SO THAT'S I'LL JUST BE TRUTHFUL. THAT'S WHAT I SIGNED UP FOR. AND I'VE HAD MEETINGS THAT HAVE LASTED A LONG TIME TO GET THINGS RESOLVED. AND SO I DON'T MIND HAVING TO GO BACK TO THE CPC, AND I DON'T EVEN MIND SITTING ON IT THAT HAVE TO BE I DON'T KNOW HOW YOU WORK THAT OUT LEGALLY, BUT I DO KNOW THAT WHATEVER WE WIND UP DOING, NOBODY'S GOING TO BE HAPPY. ALL RIGHT. BUT THAT DOESN'T MEAN THAT I SORT OF SHY AWAY FROM THAT RESPONSIBILITY OF ADVOCATING WHAT I THINK IS THE BEST THING. SO I'M WILLING TO DO THAT. I'VE ALREADY SAID MY STATEMENT AND MY SUCH A SMALL AMOUNT, SUCH A SMALL REQUEST IS CRAZY. BUT AGAIN, TO RESPECT THE PEOPLE THAT ARE HERE WHO HAVE SPENT ALL THAT TIME PUTTING IN THOSE APPLICATIONS AND, AND WE ALL GOT THE EMAILS

[03:00:06]

AFTER, YOU KNOW, THEY ATTENDED THOSE MEETINGS. SO I'M WILLING TO DO WHAT IT TAKES TO, TO NOT MAKE EVERYBODY HAPPY. WE'RE NOT GOING TO MAKE PEOPLE HAPPY, BUT WE'RE CERTAINLY GOING TO TRY TO MAKE SURE THAT WE DO SOMETHING THAT HAS SOME KIND OF SEMBLANCE OF LISTENING AND MAKING SURE THAT WE'RE BEING RESPONSIVE TO AND BEING LEGAL TO THE COMMUNITY. SO IF WE IF YOU WANT TO CALL A SPECIAL CALLED MEETING OF THE CPC AFTER BECAUSE APPARENTLY IT'S NOT POSTED TO BE ABLE TO DISCUSS THESE KINDS OF THINGS. IS THAT CORRECT? IS IT NOT A BROAD, A

BROAD ENOUGH POSTING TO TALK ABOUT IT? >> NO. THE POSTING RIGHT NOW, I BELIEVE, IS TO DISCUSS THE COUNCIL CONTINGENCY FUNDS. IT DOES NOT INCLUDE THE FUNDS OR

THE SPONSORSHIP OR IN-KIND. >> WHAT ARE THE COUNCIL CONTINGENCY FUNDS, THE SPONSORSHIP AND IN-KIND. WHAT DO YOU MEAN? OH THE CONTINGENCY FUND. OH. OF COUNCIL CONTINGENCY FUNDS TO GIVE TO ORGANIZATIONS. GOTCHA. OKAY. ALL RIGHT. WELL I THINK THAT'S GOING TO BE UP TO ALSO THE MEMBERS OF THE CURRENTLY THE MEMBERS OF THE CPC, IF THEY'RE WILLING TO, YOU KNOW, DO THAT TO HAVE ANOTHER MEETING TO TALK ABOUT IT. I THINK IT'S COUNCIL MEMBER, COUNCIL MEMBER HOLLAND, I THINK IS ON THE COMMITTEE. I THINK COUNCIL MEMBER VILLAREAL WAS ON THE COMMITTEE. SO WE IF IF YOU'RE OPEN TO THAT, OF COURSE THAT WOULD HAVE TO BE DONE NEXT WEEK FOR POSTING REQUIREMENTS AND THINGS SUCH AS THAT, I THINK. GO AHEAD.

>> CAN I MAKE A MOTION OR. >> SORRY, LET ME HEAR FROM CITY ATTORNEY.

>> I WAS JUST ZOOMING OUT A LITTLE BIT. I MEAN, THE KEY THAT YOU HAVE TO DO RIGHT NOW IS SET A BUDGET AMOUNT. WHEN AND HOW YOU FIGURE OUT HOW THAT'S ALLOCATED TO THE DIFFERENT ENTITIES THAT CAN COME LATER. BUT WHAT YOU'RE LOOKING AT RIGHT NOW IS WHAT'S THE NUMBER BUDGET TOTAL THAT YOU WANT TO FOCUS ON? THAT'S, THAT'S WHAT MATTERS FOR TIMELINESS PURPOSES WHEN YOU FIGURE OUT THE REST OF IT. NOW, I KNOW THERE'S EVENTS THAT HAPPEN SOONER THAN LATER, BUT THAT'S NOT AN URGENT RUSH TO FIGURE OUT THAT.

>> OKAY, THEN YOU KNOW WHAT? GO AHEAD, COUNCIL MEMBER JESTER, BUT I'M GOING TO PROBABLY MAKE

A MOTION AS WELL. >> GREAT, GREAT. THANK YOU SO MUCH. AND I ALSO WANT TO SAY I APPRECIATE EVERYONE HERE, AND I CERTAINLY APPRECIATE THE ORGANIZATIONS THAT GIVE JUST AS MUCH, IF NOT MORE TIME TO OUR COMMUNITY THAN THOSE OF US SITTING HERE. BUT WE JUST HAPPEN TO BE IN THESE SEATS. BUT I, WITH PERMISSION FROM THE MAYOR PRO TEM, I WOULD LIKE TO MAKE A MOTION ALONG THE LINES OF WHAT HE SUGGESTED, AND THAT WE COME UP WITH A DOLLAR AMOUNT AS NECESSARY TO MOVE FORWARD WITH THE BUDGET AS WE HAVE TO DO. HOWEVER, MY MOTION WOULD BE TO APPOINT THE MAYOR TO THE CPC COMMITTEE. THEY HAVE A SPECIAL CALLED MEETING AND COME UP WITH A NEW A NEW RECOMMENDATION. NOW THAT WE HAVE MORE SOLID NUMBERS OF WHAT WE HAVE AVAILABLE TO GIVE, AND I HOPE THIS IS A GOOD IDEA, I THINK IT'S THE BEST WAY FORWARD, BUT I'M THAT'S MY

MOTION. >> OKAY. >> I WOULD SECOND THAT ON.

>> WE'RE NOT POSTED FOR APPOINTING TO THE COMMITTEE. WE DON'T HAVE THAT POSTED. SO THAT.

>> EXCEPT FOR THAT, I WOULD. SECOND. >> OKAY. YES, COUNCILMEMBER

MAYOR PRO TEM. >> I HAVE A. >> QUESTION THEN. I MEAN, TO THAT END, BECAUSE WE WOULD NOT HAVE A MEETING COUNCIL MEETING ANYTIME SOON TO THEN VOTE ON ADDING SOMEONE TO THE CPC. IS IT? SINCE THERE WOULDN'T BE A QUORUM OF INDIVIDUALS, THERE? COULD COULD THE THE MAYOR NOT STILL COLLABORATE? I'M SORRY. I MEAN, IT WOULDN'T BE LIKE THERE WOULD BE FOUR PEOPLE THERE. I MEAN, COULD THEY STILL COLLABORATE?

>> I ALWAYS GET NERVOUS ABOUT THAT CONCEPT OF HAVING EXTRA COUNCIL MEMBERS COME TO THE COMMITTEE MEETINGS. WE COULD LOOK AT IT CLOSELY, BUT I, I DO HAVE A LOT OF HESITATION TO DO

THAT. >> YES. >> THEN I MOVE THAT WE HAVE A SPECIAL CALLED MEETING EARLY ONE MORNING, GET KORMAN HERE AND AS SOON AS IT CAN BE POSTED SO THAT WE CAN VOTE ON IT. WE HAVE JUST LIKE WE HAVE RECENTLY, A VERY QUICK MORNING MEETING TO

MAKE THIS MOVE FORWARD. >> MR. CITY ATTORNEY. >> WE DON'T NEED TO VOTE. YOU CAN TAKE THAT DIRECTION IF THAT'S THE CONSENSUS OF THE COUNCIL. IF THEY WANT US TO DO

THAT, WE CAN DO THAT. >> OKAY. YEAH. IS THAT THE CONSENSUS.

>> ON THE MAYOR PRO TEM? >> YES, YES. OKAY. DO I SEE A CONSENSUS ON THAT? YES. COUNCIL

MEMBER RUMOHR. >> I TEND TO AGREE WITH THAT. JUST THIS IS A BUSY TIME OF SEMESTER FOR ME, SO I MAY OR MAY NOT BE ABLE TO ATTEND DEPENDING ON WHAT IT IS.

>> OKAY. >> AND SO I'M GOING TO THEN I DON'T THINK IT'S A MOTION. I THINK IT'S MORE OF A DIRECTION. WHAT IS THE AMOUNT OF MONEY THAT'S LEFT FROM THE 800,000?

WAS IT 117,170? I DON'T REMEMBER. >> IF WE ASSUME THE 1%.

>> INCLUDING THE. >> 1%, WHICH WAS LIKE 300 SOMETHING. I HAVE 117,003 90.

>> OKAY. THEN I WOULD SAY THE DIRECTION WOULD BE OF THAT. LET'S MAKE THAT AVAILABLE TO, I

[03:05:03]

DON'T EVEN KNOW IF IT CAN BE MADE AVAILABLE TO THE HOT FUNDS. IT COULD ONLY BECAUSE IT'S

GENERAL FUND MONEY. IS THAT CORRECT? WELL, THEN. >> IS THAT RIGHT?

>> SPONSORSHIP, I WOULD SAY MAKE THAT AVAILABLE TO SPONSORSHIP. AND IF WE DON'T USE IT ALL, WE DON'T USE IT ALL. AND THEN BECAUSE THE BUDGET FOR THE HOT FUNDS IS THE BUDGET, I MEAN, IT'S, IT'S THE AMOUNT OF MONEY THAT YOU'RE GOING TO BE. IT'S JUST A MATTER OF ALLOCATION. SO WHAT I'M HEARING YOU SAY, MR. CITY ATTORNEY, IS. MUCH EASIER. YEAH. IF IF WE IF WE SAY THIS IS THE RIGHT BUDGET FOR HOT FUNDS, IF THERE'S SOME, WE CAN COME BACK AND LOOK AT THAT WITHOUT IT BEING SUCH A TIME CRUNCH. IS THAT WHAT YOU'RE SAYING? OKAY. ALL RIGHT.

YES. >> I DO WANT TO NOTE THAT THERE ARE ORGANIZATIONS THAT. THAT NEED IT, THAT NEED THE, THE FUNDING RIGHT AWAY, LIKE DISCOVER DENTON, THAT'S THEIR SALARIED STAFF. OKAY. SO I DON'T WANT TO NOT HAVE THE ALLOCATION SET BEFORE WE GO

INTO THE NEXT FISCAL YEAR. >> OKAY. WELL, NO. YEAH. OKAY. GOTCHA. ALL RIGHT. WHICH MEANS WE'LL PROBABLY NEED TO HAVE A SPECIAL CALLED MEETING. AND YES, COUNCIL MEMBER.

>> CHESTER, SORRY. >> POINT OF PERSONAL PREROGATIVE. I ALSO APPRECIATE AND LOVE THE DENTON BLACK FILM FESTIVAL AND GREATER DENTON ARTS COUNCIL AND ALL OF THE

THINGS. THANK YOU. BY. >> ALL RIGHT. ANY OTHER COMMENTS ON THIS? SO WE'VE GOT DIRECTION TO ADD TO THE SPONSORSHIP IN-KIND THAT 117 SOME ODD CHANGE IN POTENTIAL ALLOCATION. AND THEN WE'LL HAVE SPECIAL CALL MEETING TO NOMINATE AND APPOINT SOMEONE ELSE TO THE CPC. AND THEN WE'LL HAVE A SPECIAL CALLED MEETING FOR THE CPC TO TRY TO GO BACK AND REVISIT THIS. IS THAT MY UNDERSTANDING? IS THAT A GOOD SUMMARY? YES, SIR. OKAY. YES.

>> I THINK IN MY MATH, I DID NOT SUBTRACT THE LEASE MONEY. SO IT MIGHT BE MORE LIKE ONE

16,000, JUST 116. >> THANK YOU. OKAY. >> WE'LL MAKE IT. THAT'S FINE.

WE'LL MAKE IT 100. YEAH. YES. >> DO WE NOT NEED TO ACT ON MEMBER JESTER'S MOTION?

>> ACCORDING TO THE CITY ATTORNEY. >> ACCORDING TO THE CITY

ATTORNEY, WE DID NOT. >> WE JUST TOOK DIRECTION. >> I SEE, THANK YOU.

>> IT WASN'T POSTED. SO YEAH, IT WOULDN'T BE VALID. ALL RIGHT. OKAY. I THINK THAT RESOLVES THIS PARTICULAR OR NOT RESOLVES IT GIVES US SOME DIRECTION. YEAH. IT GIVES US SOME DIRECTION. AND SO WE'LL MOVE ON THEN TO IS DINNER HERE. OKAY, LET'S LET'S GRAB OUR DINNER REAL QUICK. COME BACK IN, WE'LL HAVE A WORKING DINNER ANDWELCOMO THIS MEETING OF THE CITY COUNCIL AT 528. IT LOOKS LIKE ON AUGUST THE 18TH WE'RE BACK AT OUR WORK SESSION. WORK

[D. ID 26-2455 Receive a report, hold a discussion, and give staff direction regarding Audit Project 049-Vehicle Management. [Estimated Presentation/Discussion Time: 30 minutes]]

SESSION AGENDA ITEM D I'D 26-2455. RECEIVE REPORT, HOLD DISCUSSION AND GIVE STAFF DIRECTION REGARDING AUDIT PROJECT 049 SLASH MANAGEMENT DASH VEHICLE MANAGEMENT.

>> MADISON RAUSCHER, DENTON CITY AUDITOR. AND I'M GOING TO PRESENT OUR FINDINGS FROM THE AUDIT OF VEHICLE MANAGEMENT. IT'S A VERY EXCITING TIME. THANK YOU FOR BEARING WITH ME TODAY. SO GENERALLY A VEHICLE MANAGEMENT PROGRAMS PURPOSE IS TO MAINTAIN A FLEET OF VEHICLES SUCH AS AUTOMOBILES, SPECIALIZED EQUIPMENT, TRAILERS AND WATERCRAFT TO AID AN ORGANIZATION IN ACHIEVING ITS GOALS. VEHICLE MANAGEMENT IS A CYCLE THAT GENERALLY INCLUDES ANALYZING VEHICLE NEEDS, ACQUIRING, SORRY, ACQUIRING THE VEHICLES, MAINTAINING VEHICLES, AND MONITORING VEHICLE USAGE. A KEY BENEFIT OF A CENTRALIZED VEHICLE MANAGEMENT PROGRAM IS ITS ABILITY TO MINIMIZE THE TOTAL COST OF FLEET OWNERSHIP THROUGH LONG TERM RESOURCE PLANNING, COMPREHENSIVE COST TRACKING, AND PROACTIVE USAGE ANALYSIS. THIS AUDIT EVALUATED WHETHER THE CITY OF DENTON'S VEHICLE MANAGEMENT PROGRAM ENSURES THAT THE CITY HAS AN ADEQUATE FLEET TO ACHIEVE ITS OBJECTIVES, WHILE MINIMIZING THE TOTAL COST OF VEHICLE OWNERSHIP. SO I'LL BEGIN BY DISCUSSING HOW THE CITY CURRENTLY ASSESSES ITS VEHICLE NEEDS. THE CITY NEEDS VEHICLES TO MEET ITS ORGANIZATIONAL GOALS. HOWEVER, FLEET SIZE IS THE LARGEST FACTOR IN A VEHICLE MANAGEMENT PROGRAMS COST DUE TO ONGOING MAINTENANCE NEEDS, FUEL USAGE, AND ASSOCIATED FINANCIAL LIABILITY. FOR THIS REASON, COMPREHENSIVE AND CONSISTENT VEHICLE NEED ASSESSMENTS ARE CRITICAL TO RIGHTSIZING A FLEET WHICH ALLOWS COST TO BE MINIMIZED WHILE MAINTAINING RELIABLE OPERATIONS. CURRENTLY, THE CITY OF DENTON HAS DIFFUSED NEED, NEED, ASSESSMENT AND ACQUISITION. DECISION MAKING RESPONSIBILITY. IN PARTICULAR, WHILE OPERATING DIVISIONS ARE AND SHOULD BE RESPONSIBLE FOR IDENTIFYING VEHICLE NEEDS, THEY'RE NOT PROVIDED WITH GUIDANCE ON HOW TO CONDUCT THIS ANALYSIS OR CLEAR VEHICLE RESOURCING ALTERNATIVES SUCH AS MILEAGE REIMBURSEMENTS, RENTALS, OR OFF HIGHWAY VEHICLES LIKE ATVS OR GOLF CARTS. FURTHER, WHILE THIS FLEET DIVISION IS GENERALLY RESPONSIBLE FOR MAINTAINING VEHICLES AFTER THEY ARE ACQUIRED AND DETERMINING WHAT VEHICLES NEED TO BE REPLACED, IT'S THE FLEET DIVISION HAS NOT HISTORICALLY BEEN INVOLVED IN THE DECISION MAKING PROCESS. INSTEAD, VEHICLE PURCHASES THAT INCREASE THE FLEET SIZE ARE EVALUATED

[03:10:03]

FOR FINANCIAL FEASIBILITY AS PART OF THE BUDGET PROCESS, AND THEN OPERATIONAL REASONABLENESS FOR THAT ASSESSED THAT REQUESTED FUNDED COST IS THEN ASSESSED AFTER THE FUNDS ARE ALLOCATED, POTENTIALLY LEADING TO A LARGER FLEET THAN NEEDED. STILL, VEHICLE REPLACEMENT CRITERIA ARE GENERALLY REASONABLE WHEN COMPARED TO INDUSTRY STANDARDS, THOUGH ADDITIONAL REVIEW OF USAGE PATTERNS AND DRIVER BEHAVIOR COULD IMPROVE THIS EVALUATION.

FOR THESE REASONS, WE RECOMMENDED THAT ACQUISITION DECISION MAKING RESPONSIBILITIES BE FORMALIZED AND GUIDANCE BE PROVIDED TO OPERATING DIVISIONS ON CONDUCTING VEHICLE NEEDS ASSESSMENTS. STILL, WHILE SOME VEHICLE LIFE CYCLE DATA INFORMATION IS CAPTURED, DATA ISSUES HINDER THE NEEDS ASSESSMENT PROCESS. CURRENTLY, IN PARTICULAR, UTILIZATION INFORMATION IS NOT CAPTURED FOR ALL VEHICLES DUE TO FUELING PRACTICES. TOTAL MAINTENANCE COSTS ARE DIFFICULT TO CALCULATE DUE TO SYSTEM LIMITATIONS, AND RESALE VALUES ARE NOT TRACKED OR ESTIMATED. MISSING RESALE VALUES ARE PARTICULARLY AN ISSUE SINCE INDUSTRY STANDARDS SUGGEST THAT FLEET VEHICLES SHOULD BE SOLD JUST BEFORE MAINTENANCE COSTS EXCEED RESALE VALUE TO MINIMIZE THE OWNERSHIP COSTS, AND INSTEAD, RIGHT NOW, MAINTENANCE COSTS FOR CITY VEHICLES OFTEN FAR EXCEED RESALE VALUES BY THE TIME THEY'RE SOLD, DUE TO SOME FUNDING ISSUES THAT I'LL DISCUSS NEXT. SO BEST PRACTICES SUGGEST THAT GOVERNMENTS PLAN AND BUDGET FOR CAPITAL ASSET MAINTENANCE AND REPLACEMENT NEEDS REGULARLY TO ENSURE THAT GOVERNMENT PROGRAMS AND SERVICES ARE FINANCIALLY SUSTAINABLE AND PAID FOR FAIRLY. IN PARTICULAR, REOCCURRING EXPENDITURES SHOULD BE MATCHED BY REOCCURRING REVENUES, AND FUTURE GENERATIONS SHOULD NOT BE RESPONSIBLE FOR PAYING FOR BENEFITS RECEIVED IN THE PAST. IN PRACTICE, VEHICLE ACQUISITIONS ARE GENERALLY FUNDED THROUGH ONE OF THREE METHODS ONE LOANS AND DEBT, WHICH TIES KIND OF SUSTAINABILITY TO THE HEALTH OF THE ECONOMY DUE TO DIFFERENT DIFFERING INTEREST RATES. TWO ONE TIME CASH PURCHASES, WHICH HAVE DECREASED SUSTAINABILITY DUE TO A LACK OF COMPREHENSIVE PLANNING AND THREE RESERVE FUNDS, WHICH INCREASES SUSTAINABILITY BUT REQUIRES A HIGH INITIAL INVESTMENT. THE CITY HAS PRIMARILY FUNDED VEHICLE ACQUISITIONS THROUGH DEBT ISSUANCE, AND ISSUED ALMOST $19.5 MILLION IN DEBT BETWEEN FISCAL YEARS 22 AND 25 TO ACQUIRE 190 VEHICLES BASED ON EXPECTED INTEREST PAYMENTS. DEBT FUNDING THESE VEHICLES ADDED ABOUT $14,300, OR 15% OF THE AVERAGE PURCHASE PRICE, TO THE TOTAL COST OF OWNERSHIP.

AND THEN FOR CONTEXT, INDUSTRY STANDARD SUGGESTS THAT A NEWLY PURCHASED VEHICLE LOSES ABOUT THAT SAME AMOUNT 15% OF ITS MARKET VALUE WHEN IT IS DRIVEN OFF THE LOT. STILL, WE FOUND THAT THIS DEBT IS PAID BACK WITHIN FIVE YEARS, HELPING TO ENSURE THAT FUTURE RESIDENTS ARE NOT PAYING FOR PAST BENEFITS DESPITE THESE ANNUAL PURCHASES, OPERATIONALLY NEEDED VEHICLE REPLACEMENTS ARE BEING CONSISTENTLY DEFERRED, INDICATING CURRENT FUNDING LEVELS ARE NOT ADEQUATE. SPECIFICALLY, ABOUT 15% OF VEHICLES HAVE DOUBLE THE AVERAGE ANNUAL REPAIR COST WHEN COMPARED TO SIMILAR VEHICLES, AND CURRENT REPLACEMENT NEEDS ARE ESTIMATED AT ABOUT $550 MILLION, WHICH IS TWO AND A HALF TIMES THE DEBT FUNDING ISSUED OVER THE LAST FOUR YEARS. STILL, OF THOSE VEHICLES THAT WERE ACQUIRED IN 20 FISCAL YEAR 25 ALL APPEARED APPROPRIATE BASED ON REVIEW OF AGE, UTILIZATION AND MAINTENANCE DATA. THE DOCUMENTATION OF THAT DECISION MAKING COULD BE IMPROVED. SO WE NEED MORE VEHICLES, BUT THE ONES WE'RE BUYING ARE APPROPRIATE. WE DO NEED THEM. FOR THESE REASONS, WE RECOMMENDED THAT THE CITY DEVELOP A PLAN TO MINIMIZE DEBT FUNDING VEHICLE ACQUISITIONS, TO MINIMIZE THE TOTAL COST OF OWNERSHIP, AND TO IMPROVE LONG TERM SUSTAINABILITY FOR CURRENT AT CURRENT SERVICE LEVELS. IN ADDITION, WE FOUND THAT NEWLY ACQUIRED VEHICLES ARE GENERALLY DEPLOYED WITHIN A MONTH OF RECEIPT OF BEING RECEIVED ALIGNING, WHICH ALIGNS WITH INDUSTRY STANDARDS, AND THEY'RE TESTED BEFORE ENTERING SERVICE TO ENSURE THAT THEY'RE OPERATING PROPERLY. STILL, WRITTEN DEPLOYMENT TIMEFRAME TARGETS AND CLEANER, CLEARER WORK ORDER DOCUMENTATION REQUIREMENTS WOULD FURTHER ENSURE THESE UPFITTING PRACTICES ARE CONSISTENT AND MEET QUALITY STANDARDS. CITY OF DENTON'S FLEET DIVISION IS RESPONSIBLE FOR MAINTAINING ABOUT 1100 CITY OWNED VEHICLES, WHICH INCLUDE AUTOMOBILES AND SPECIALIZED EQUIPMENT, AS WELL AS ABOUT 300 TRAILERS AND VEHICLE ATTACHMENTS. AND THOSE TRAILERS AND ATTACHMENTS WERE EXCLUDED FROM OUR AUDIT REVIEW. SO THE REST OF THIS IS KIND OF FOCUSED ON THE 1100 VEHICLES. VEHICLE MAINTENANCE GENERALLY FALLS INTO TWO CATEGORIES ONE, PREVENTATIVE MAINTENANCE, WHICH INCLUDES ROUTINE TASKS DESIGNED TO PROTECT VEHICLES SYSTEMS, AND TWO REPAIRS WHICH ARE INTENDED TO CORRECT UNEXPECTED MAINTENANCE OR ELECTRICAL ISSUES. THE MAINTENANCE PROCESS FOR VEHICLES INCLUDES FOUR STEPS GENERALLY ONE IDENTIFY MAINTENANCE NEEDS BASED ON VEHICLE MILEAGE, TOTAL ENGINE HOURS, OR KIND OF REPORTED CONDITION ISSUES TO PRIORITIZE MAINTENANCE MAINTENANCE ACTIVITIES TO MEET SERVICE LEVEL GOALS. THREE PLAN PRIORITIZE MAINTENANCE ACTIVITIES BASED ON AVAILABLE RESOURCES, AND FOUR PERFORM AND DOCUMENT THE ACTIVITIES THAT ARE PERFORMED. THE FLEET DIVISION'S VEHICLE MANAGEMENT SYSTEM INCLUDES AN INVENTORY OF VEHICLES AND TRACKS MOST NEEDED USAGE INFORMATION, INCLUDING IDENTIFYING WHEN PREVENTATIVE MAINTENANCE TASKS ARE NEEDED.

[03:15:03]

HOWEVER, TELEMATICS DATA RECEIVED FROM DEVICES INSTALLED IN MOST VEHICLES IS NOT INTEGRATED INTO THE SYSTEM CURRENTLY, NOR USED TO PROACTIVELY IDENTIFY REPAIR NEEDS. INSTEAD, OPERATING DIVISION LIAISONS ARE RELIED UPON TO IDENTIFY MECHANICAL OR ELECTRICAL ISSUE FLAGS AND SCHEDULE A MAINTENANCE APPOINTMENT. BUT THIS RESPONSIBILITY IS NOT BEEN CLEARLY COMMUNICATED. FOR THAT REASON, WE RECOMMENDED THAT FLEET EVALUATE WAYS TO REVIEW AND ACT ON THESE ERROR CODES TO ENSURE ISSUES ARE ADDRESSED PROMPTLY. FLEET DIVISION HAS FORMALLY ADOPTED SOME VEHICLE MAINTENANCE SERVICE LEVEL STANDARDS, BUT GOALS ARE NOT ALWAYS MET OR ESTABLISHED AS OUTLINED IN THE TABLE ON THE SLIDE. THE CITY'S VEHICLE UPTIME, WHICH MEASURES WHAT PERCENTAGE OF THE TIME ALL THE CITY'S VEHICLES ARE AVAILABLE FOR USE, IS SIGNIFICANTLY LOWER THAN THE INDUSTRY BENCHMARK OF 95%, WHICH INDICATES SERIOUS MAINTENANCE ISSUES MAY EXIST WITHIN THE FLEET. HOWEVER, THIS IS LIKELY DUE TO THE AGE OF THE FLEET, ESPECIALLY THE DEFERRED VEHICLES THAT WE DISCUSSED EARLIER. IN PARTICULAR, ACTIVE VEHICLES WHERE REPLACEMENT WAS DEFERRED HAD SIGNIFICANTLY MORE REPAIR WORK ORDERS THAN THOSE THAT WERE NEWER. THE FLEET DIVISION HAS ESTABLISHED TARGET COMPLETION TIMEFRAMES FOR WORK ORDERS WITHIN THE VEHICLE MANAGEMENT SYSTEM, AND THE SYSTEM AUTOMATICALLY FLAGS ANY WORK ORDERS THAT EXCEED THOSE ESTABLISHED TIMEFRAMES FOR SUPERVISOR REVIEW, WHICH HELPS PROMOTE EFFICIENCY WITHIN THE TECHNICIANS. HOWEVER, WHILE LABOR HOURS DATA COULD BE PULLED FROM THE SYSTEM, THAT KIND OF TARGET COMPLETION TIME COULDN'T BE PULLED, SO WE COULDN'T REVIEW THAT IN DEPTH. WHILE FORMAL MAINTENANCE VEHICLE MAINTENANCE PLANNING GUIDANCE IS LIMITED, FLEET STAFF INDICATED THAT THEY HAVE INFORMALLY DEVELOPED A WORK ORDER PRIORITY SYSTEM, WHICH PRIORITIZES FROM FIRST TO LAST FIRST RESPONDER VEHICLES, UTILITY VEHICLES, MOST OTHER VEHICLES AND THEN PARK VEHICLES.

HOWEVER, NEITHER WORK ORDER CLOSURE INFORMATION NOR AVERAGE REPAIR LABOR HOURS KIND OF CLEARLY ALIGNED WITH THESE PRIORITIES. INSTEAD, AVERAGE REPAIR HOURS PER WORK ORDER APPEAR TO REMAIN CONSTANT. WHILE THE AVERAGE TIME A VEHICLE HAS SPENT WITH AN OPEN WORK ORDER EACH YEAR HAS BEEN DECREASING, INDICATING THAT PLANNING PROCESSES COULD BE MORE EFFICIENT, ESPECIALLY FOR MORE OF THOSE ADMINISTRATIVE COORDINATE COORDINATION TASKS.

STILL, WHILE MAINTENANCE IS RECORDED IN WORK ORDERS, SPECIFIC WORK ORDER DOCUMENTATION REQUIREMENTS HAVE NOT BEEN ESTABLISHED, HINDERING QUALITY ASSURANCE REVIEWS OF ACTUAL ACTUAL MAINTENANCE WORK AND LIKELY CAUSING SHOP TIME TO BE OVERSTATED AS WORK ORDERS ARE LEFT OPEN AFTER THE VEHICLES BEEN ACTUALLY BEEN RETURNED TO SERVICE. SO FOR THESE REASONS, WE RECOMMENDED PROCESS BE ESTABLISHED TO ENSURE WORK ORDER AND COMPLETE WORK ORDERS ARE COMPLETED TIMELY AND CONSISTENTLY. UNLIKE OTHER ORGANIZATIONAL ASSETS, VEHICLES ARE USED ALMOST CONSTANTLY DURING OPERATIONS, ARE EXCEPTIONALLY MOBILE IN NATURE AND INCREASE EMPLOYEES RISK OF INJURY, HEIGHTENING THE CITY'S FINANCIAL LIABILITY RISK.

FOR THESE REASONS, INDUSTRY STANDARDS RECOMMEND THAT TELEMATICS DEVICES BE INSTALLED IN EACH VEHICLE TO MONITOR DRIVER BEHAVIOR. AND WHEN DRIVER BEHAVIOR IS TRACKED, CLEAR EXPECTATIONS SHOULD BE ESTABLISHED. BEHAVIORAL ISSUES SHOULD BE PROMPTLY ADDRESSED BASED ON CONSISTENT MONITORING AND IF AN ACCIDENT OR SAFETY INCIDENT OCCURS, AVAILABLE DATA SHOULD BE REVIEWED TO INFORM LIABILITY. DECISION MAKING THE CITY HAS ADOPTED HAS ADOPTED POLICIES THAT OUTLINE BEHAVIORAL EXPECTATIONS FOR DRIVERS OF CITY VEHICLES.

HOWEVER, TELEMATICS DEVICES ARE NOT MENTIONED IN THESE POLICIES AND ARE NOT USED TO CONSISTENTLY USED CONSISTENTLY ACROSS THE CITY TO MONITOR DRIVER BEHAVIOR. DESPITE BEING INSTALLED IN MOST VEHICLES. SPECIFICALLY, THE FLEET DIVISION INDICATED THAT OPERATING DIVISION FLEET LIAISONS ARE RESPONSIBLE FOR IDENTIFYING ANY DISABLED OR MALFUNCTIONING TELEMATICS DEVICES. HOWEVER, THIS RESPONSIBILITY IS NOT FORMALIZED IN A POLICY OR PROCEDURE. IN ADDITION, A REVIEW OF THE LOGIN HISTORIES FOR THE CITY'S VEHICLE TELEMATICS SYSTEMS AS OF MAY 26TH FOUND SOME OPERATING DIVISIONS HAD NO ACCESS TO THAT DATA. WHILE MOST DIVISIONS SHOWED INCONSISTENT OR INFREQUENT USE, INDICATING THAT BEHAVIOR MONITORING IS NOT REGULARLY OCCURRING. SIMILARLY, NEITHER THE RISK MANAGEMENT NOR SAFETY DIVISIONS CONSISTENTLY REVIEW DRIVER BEHAVIOR TELEMATICS TO IDENTIFY UNSAFE DRIVING BEHAVIORS OR ANY DRIVING CULTURE TRENDS AND TELEMATICS INFORMATION IS NOT REQUESTED WHEN REVIEWING ACCIDENTS OR SAFETY INCIDENTS.

BASED ON REVIEW OF THE EXISTING TELEMATICS DATA, WE DID FIND THAT UNSAFE DRIVING BEHAVIORS ARE OCCURRING CITYWIDE, INDICATING THAT THIS MONITORING IS NEEDED. IN PARTICULAR, WE FOUND THAT FIRST RESPONDERS BASED DUE TO THEIR KIND OF OPERATIONAL NECESSITIES OR DO EXCESSIVELY SPEED ABOUT 4% OF THE DRIVE TIME. AND SO WE COMPARED THAT BENCHMARK TO NON FIRST RESPONDER VEHICLES AND FOUND THAT ABOUT 11% OF NON FIRST RESPONDER VEHICLES EXCESSIVELY SPEED AT LEAST HALF AS OFTEN, WHICH IS NOT AUTHORIZED BY POLICY IN ANY WAY.

[03:20:03]

REASONS, WE RECOMMENDED THAT THE CITY DRIVING AND VEHICLE USE POLICY BE UPDATED TO CLARIFY HOW AND BY WHOM DRIVER BEHAVIOR BEHAVIORAL DATA WILL BE USED. FURTHER, SOME ORGANIZATIONS ALLOW THEIR EMPLOYEES TO USE ORGANIZATION OWNED VEHICLES TO COMMUTE BETWEEN THEIR HOME AND WORKSITE TO INCREASE PRODUCTIVITY, ESPECIALLY WHEN THOSE EMPLOYEES RESPOND TO EMERGENCIES. HOWEVER, BEST PRACTICES SUGGEST THAT ORGANIZATIONS CONTINUALLY MONITOR THE COST OF THESE PROGRAMS TO ENSURE THAT THEY DON'T EXCEED THE BENEFITS BEING RECEIVED. THE CITY HAS FORMALLY ESTABLISHED A VEHICLE TAKE HOME PROGRAM. HOWEVER, IT'S NOT CENTRALLY ADMINISTERED AND USAGE MONITORING RESPONSIBILITIES ARE NOT CLEARLY DEFINED, HINDERING EFFECTIVE COST BENEFIT ANALYSIS AND MAKING IT UNCLEAR HOW MANY TAKE HOME VEHICLES. THE CITY EVEN REALLY HAS. FOR THESE REASONS, WE RECOMMENDED THAT THE DRIVING AND VEHICLE USE POLICY BE UPDATED TO CLARIFY KIND OF THE ADMINISTRATION AND THE PARAMETERS OF THE PROGRAM SO THAT THEY CAN BE CONSISTENTLY MONITORED. SO IN SUMMARY, WE ISSUED TEN RECOMMENDATIONS, ALL OF WHICH THE DEPARTMENT AGREED WITH.

BASED ON THAT RESPONSE, WE BELIEVE THE IDENTIFIED RISK WILL BE APPROPRIATELY ADDRESSED, AND WE PLAN TO PERFORM A FOLLOW UP REVIEW IN FISCAL YEAR 2028, UNLESS COUNCIL WOULD LIKE US TO

PERFORM ONE SOONER. >> ANY QUESTIONS? YES. COUNCIL MEMBER RUMOHR.

>> I JUST WANTED TO COMMENT THAT I READ THIS AND I WAS VERY GRATEFUL THAT WE HAVE AN AUDITOR. THAT WAS WHAT I WAS THINKING AS WE AS I READ IT, THIS IS MORE OF A COMMENT THAN A QUESTION. AS I WAS READING IT, I WAS KIND OF CURIOUS WHAT OTHER CITY ASSETS WE HAVE THAT ARE KIND OF IN THE SAME SITUATION AS FLEET IN TERMS OF THEY'RE UNDERFUNDED AND WE'RE USING AN UNSUSTAINABLE LEVEL OF DEBT TO, TO, TO REPLACE THEM. SO THAT'S JUST MORE OF A COMMENT. NOBODY HAS TO REALLY RESPOND TO THAT. ONE THING I WANTED TO MENTION WAS THAT IN CT, COG DOES HAVE LIKE A $54 MILLION GRANT PROGRAM THAT SEEMS TO NOT BE GETTING A LOT OF UPTAKE FOR GETTING HEAVY DUTY ELECTRIC VEHICLES. I UNDERSTAND THAT THERE'S SOME VEHICLES THAT JUST DON'T WORK FOR FOR ELECTRIC VEHICLES, BUT I WAS TOLD BY ONE OF THEIR STAFF THAT THEY DO HAVE LIKE A TECHNICAL SUPPORT PERSON WHO YOU CAN APPROACH THAT PERSON, SAY, THIS IS WHAT WE WOULD NEED OR WHAT QUALITIES WE WOULD NEED OUT OF THIS. AND THEY COULD SORT OF SAY, WELL, THIS MIGHT BE A BETTER THIS MIGHT NOT BE A FIT. AND THERE'S OTHER FUNDING SOURCES BESIDES THE 54 MILLION THROUGH NCT COG. SO I CAN SEND THAT INFORMATION TO CITY MANAGEMENT TO, TO SORT OF EXPLORE THAT WHERE AS WE'RE REPLACING SOME OF THESE VEHICLES, IS THERE OPPORTUNITY FOR ANY OF THEM TO BE ELECTRIC TO MAKE USE OF SOME OF THIS GRANT FUNDING AND SOME OF ITS, I THINK, REFUND REFUNDS AS WELL. SO JUST SOMETHING THAT I'LL

FOLLOW UP WITH. THAT'S ALL I HAVE. THANK YOU. >> COUNCILMEMBER JESTER. THANK

YOU. >> THANK YOU FOR THE PRESENTATION. I LEARNED A LOT GOING THROUGH THIS. AND WITH THE TWEAKS THAT HAVE BEEN RECOMMENDED, I ACTUALLY WAS VERY IMPRESSED WITH ALL OF THE MOVING PARTS THAT GO INTO OUR FLEET MANAGEMENT. I REALLY AND I COMMENTED ON THAT DURING A MEETING WITH CITY MANAGEMENT RECENTLY, JUST HOW MANY VEHICLES WE HAVE, THE MAINTENANCE, THE REPAIRS, THE I MEAN PURCHASING, I MEAN EVERYTHING THAT GOES INTO IT. SO I WANT TO SAY THANK YOU TO THAT DEPARTMENT. AND I WAS I MEAN, A LOT OF THE SOME OF THE THINGS THAT YOU RECOMMENDED, WE ALSO JUST DIDN'T HAVE FUNDING FOR AND NEED TO BE FUNDED. SO OVERALL, I THINK IT WAS IT WAS VERY WELL, WELL PRESENTED. AND IT WAS ALSO VERY AFFIRMING FOR THE JOB THAT THE DEPARTMENT IS DOING. I JUST, I CAN'T IMAGINE WITH ESPECIALLY WITH SHIPPING ISSUES AND EVERYTHING ELSE. ALSO, THE AMOUNT OF PEOPLE THAT WE HAVE DRIVING WITHOUT A SEAT BELT OR A SLIGHTLY ABOVE THE SPEED LIMIT AT SOME POINT WERE INCREDIBLY LOW. I WOULD HAVE THOUGHT THOSE NUMBERS WOULD BE HIGHER. SO I'M JUST VERY APPRECIATIVE OF OUR CURRENT STAFF IN THAT AREA AND APPRECIATIVE OF THE ITEMS THAT YOU FOUND THAT MIGHT BE ABLE TO EVEN IMPROVE WHERE WE CAN. AND THEN I KNOW THAT, BUT IS ALSO AWARE OF THE GRANT PROGRAMS AND I'M SURE IS WOULD BE THE FIRST PERSON I WOULD GO TO. AND I'M SURE HE'S INCLUDING ANY OTHER DEPARTMENTS THAT'S NECESSARY, BECAUSE I BELIEVE WE'VE HAD A RECORD NUMBER OF GRANTS RECEIVED FROM THE NORTH TEXAS COG, THE REGIONAL TRANSPORTATION COUNCIL, IN THESE LAST TWO YEARS. SO ANYWAYS, THANK YOU SO MUCH. AND

THAT'S WHO I'D POINT THEM TO. YES. THANK YOU FOR THE TIME. >> YES, COUNCILMEMBER.

>> THANK YOU. TAKE TAKE HOME VEHICLES. I CAN I CAN SEE FIRE AND POLICE WITH TAKE HOME

VEHICLES. WHO ELSE. >> I BELIEVE SOME OF THE UTILITIES USE TAKE HOME VEHICLES. I THINK THERE'S AN ANIMAL CONTROL VEHICLE, AT LEAST ONE THAT IS TAKEN HOME.

AND WE ONLY REVIEWED 100 OR SO FORMS. AND WE BELIEVE THAT THERE ARE MORE TAKE HOME VEHICLES THAN THAT. SO I CAN'T TELL YOU THE FULL SCOPE. THAT'S KIND OF PART OF THE ISSUE WE

IDENTIFIED. >> DO I ASSUME THAT THOSE INDIVIDUALS ARE ARE ON CALL

WHEN OFF WORK? >> OUR POLICY REQUIRES THAT THEY'RE SUPPOSED TO BE ON CALL

[03:25:03]

IN ORDER TO HAVE A TAKE HOME VEHICLE. SO THEY SHOULD BE. YES. >> AND OUR TAKE HOME CAN TAKE

HOME VEHICLES BE TAKEN OUT OF CITY OF DENTON. >> YES. THEY CAN BE.

>> IS THERE A IS THERE A LIMIT TO THAT? >> THERE'S NO MAXIMUM COMMUTE DISTANCE IN OUR CURRENT POLICY. THAT'S ONE OF THE PIECES OF OUR RECOMMENDATION THAT WE NEED. WE SHOULD ESTABLISH THAT MOST OF THE VEHICLES THAT WE WERE ABLE TO REVIEW, BECAUSE WE KNEW THEY WERE TAKE HOME VEHICLES ARE WITHIN THE COUNTY. THEY LIVE WITHIN THE COUNTY, BUT THERE

ARE A FEW THAT ARE OUTSIDE THE COUNTY OF DENTON. >> I WOULD APPRECIATE A REVIEW

OF THAT. THANK YOU. SURE. >> ANY OTHER QUESTIONS? ALL RIGHT.

>> THANK YOU, THANK YOU. >> APPRECIATE IT. ALL RIGHT. WE'LL GO ON TO OUR NEXT AGENDA

[E. ID 26-0630 Receive a report, hold a discussion, and give staff direction on pending City Council requests for: 1) Workshop on City-Wide Fiscal Analyses 2) Policies for City Funded Construction Projects 3) 3-Year Pilot Program for a Denton Eviction Advocacy Center [Estimated Presentation/Discussion Time: 30 minutes]]

ITEM, WHICH IS RECEIVE REPORT, HOLD DISCUSSION. GIVE STAFF DIRECTION ON PENDING CITY COUNCIL REQUESTS. AND WE SEE THEM THERE. WE'LL TAKE THEM ONE BY ONE.

>> ALL RIGHT. COUNCIL JUSTIN STACKHOUSE, ASSISTANT TO THE CITY MANAGER HERE TO PRESENT THE TWO MINUTE PITCH ITEMS. AS A REMINDER, THE REQUESTING COUNCIL MEMBER WILL HAVE UP TO TWO MINUTES TO DESCRIBE AND JUSTIFY THE REQUEST. REMAINING COUNCIL MEMBERS WILL THEN HAVE A MAXIMUM ONE MINUTE EACH TO PROVIDE FEEDBACK AND INDICATE THEIR SUPPORT FOR USE OF CITY STAFF. TIME TO RESPOND TO THE REQUEST, AND STAFF WILL RESPOND TO ALL REQUESTS FOR A CONSENSUS OF AT LEAST FOUR ELECTED OFFICIALS. IS ESTABLISHED AS GUIDELINES FOR COUNCIL MEMBERS TO NOTE TO OFFER THEIR PRIORITY WHEN SUPPORTING AN ITEM. THE FOLLOWING CATEGORIES OF HIGH, MODERATE OR LOW COULD BE USED TO INDICATE ANY COUNCIL MEMBER'S SUPPORT TO ASSIST STAFF AND THE AGENDA, AGENDA, COMMITTEE AND SCHEDULING. AND WITH THAT, THE FIRST PITCH IS

ON THE TOPIC OF WORKSHOP ON CITY WIDE FISCAL ANALYSIS. >> ANYTIME.

>> READY? >> GO. I JUST WANTED TO START OFF BY APOLOGIZING FOR ANY CONFUSION WITH THE SLIDE. THAT'S NOT QUITE THE WORDING THAT I SUBMITTED, SO I APOLOGIZE FOR THAT. BUT HOPEFULLY THE VERBAL WILL GIVE YOU SOME CLARITY. AT THE 2025 ML CONFERENCE, I ATTENDED A SESSION ABOUT CITYWIDE FISCAL ANALYSIS AND HOW CITIES USE THEM TO BETTER BALANCE THE LONG TERM OF INFRASTRUCTURE AND SERVICES WITH THE ABILITY OF TAXPAYERS TO AFFORD THEM. MANY CITY EXPENSES ARE INFLUENCED BY GEOGRAPHY THINGS LIKE STREETS, DRAINAGE PIPES, FIRE STATIONS, SOLID WASTE PARKS, ETC. A GEOGRAPHIC ANALYSIS HELPS US TO BETTER UNDERSTAND OUR COSTS SO WE CAN BETTER PLAN FOR THEM. SO MORE SO THAN JUST WITH LINE ITEMS. SO WHAT I'M REQUESTING IS A WORKSHOP DURING A WORK SESSION TO INTRODUCE THE CONCEPT OF CITYWIDE FISCAL ANALYSIS TO. THEN, FOR THE FIRST TIME, AS WE PREPARE FOR OUR LONG TERM BUDGET PLANNING FOR THE NEXT YEAR, THIS WORKSHOP WILL PROVIDE A NEW PERSPECTIVE TO HELP US IMPROVE FISCAL RESILIENCE, LONGEVITY, AND AFFORDABILITY IN OUR CITY.

IT WOULD ALSO BE A FIRST STEP TO DISCUSSING WHETHER WE WOULD POTENTIALLY WANT TO ACTUALLY FUND A FISCAL ANALYSIS, AND THEN, AT SOME POINT IN THE FUTURE, I DID WANT TO ADDRESS WHY AN OUTSIDE PRESENTER, AND THIS IS NOT AN AREA THAT OUR CITY STAFF CURRENTLY HAVE EXPERTISE IN. THE T ML SESSION PRESENTERS HAVE OFFERED TO PROVIDE THIS WORKSHOP PRO BONO.

THEY DO HAVE EXPERTISE IN THIS AREA. THE PRESENTERS WOULD BE FROM TEXAS AGRILIFE EXTENSION AND THE OTHER ONE WOULD BE FROM OLSON ENGINEERING. AND THERE ARE OTHER COMPANIES THAT DO FISCAL CITY OR CITYWIDE FISCAL ANALYZES. SO IF THE COUNCIL WAS TO DECIDE WE WOULD WANT TO MOVE FORWARD WITH ONE IN THE FUTURE, I WOULD IMAGINE THAT WOULD GO THROUGH THE RFP PROCESS AND WE'D HAVE MULTIPLE APPLICATIONS, AND IT WOULD JUST BE WHOEVER THE STAFF BELIEVE WOULD BE THE BEST FIT. SO THIS IS JUST A PROPOSAL FOR A WORKSHOP TO UNDERSTAND WHAT THIS IS EVEN IS

EFFECTIVELY AND HOW WE COULD POTENTIALLY USE IT. >> OKAY. ANY COMMENT? YES.

COUNCIL MEMBER HOLLAND. >> SUPPORTED LOW SUPPORT LOW. >> OKAY. HOLD ON. LET ME LET ME

RESET IT. OKAY. YES. COUNCIL MEMBER PERRY. >> SUPPORT AS WELL. YES. OKAY.

>> OKAY. COUNCILMEMBER STEPHENS OR MAYOR PRO TEM. >> SUPPORT. SINCE I HAVE A MINUTE, I'LL JUST ADD SOME CAVEATS, WHICH IS JUST TO SAY. I'D BE CURIOUS MAYBE IF IF IT WOULD BE BETTER SUITED AT A RETREAT IF WE HAVE ONE COMING UP. MY ONLY LIKE HESITANCY IS, IS THE WHOEVER THE PRESENTER IS THEN BIDDING ON SOMETHING IN THE FUTURE. IF IT'S SOMETHING WE AGREE ON, IT MAKES ME A LITTLE UNCOMFORTABLE. NOT UNCOMFORTABLE ENOUGH TO NOT SUPPORT THIS THOUGH. AND SO I'M LOOKING FORWARD TO INITIALLY THE ISR TO LEARN MORE ABOUT THIS AND THEN, YOU KNOW, SETTING UP A WORK SESSION TO, TO LEARN ABOUT WHAT WE CAN BE

DOING BETTER. SO THANKS FOR SUBMITTING IT. >> YES, COUNCILMEMBER.

>> I WOULD JUST SAY THAT I THINK THE MORE INFORMATION, THE BETTER. HOWEVER, I ALSO CAN SEE THE CONCERN WITH INVITING A VENDOR IN THAT IS GOING TO BE PRESENTING SOMETHING THAT THEY WILL THEN WANT TO BE PAID FOR WITHOUT DOING THE PROPER PROCUREMENT PROCESS THAT WE

[03:30:08]

NORMALLY DO FOR A GROUP THAT'S GOING TO COME IN AND DO SOMETHING LIKE THIS. SO FOR ME, I WOULD SAY I'M IN FAVOR. I'M I'M PROBABLY NOT IN FAVOR OF IT TAKING UP A WORK SESSION. I THINK WE'RE PRETTY FULL FOR SOME TIME, BUT THAT IT COULD BE MADE AVAILABLE. I DON'T KNOW IF THAT'S A POSSIBILITY. SO THAT'S KIND OF WHERE I AM INITIALLY. THANK YOU.

>> OKAY. IT SEEMS LIKE WE IT SEEMS LIKE WE HAD FOUR FOR A CONSENSUS AND JILL. I CAN INCLUDE YOU IN COUNCIL MEMBER CHESTER. SORRY, I CAN INCLUDE YOU IN THAT I THINK I MEAN, ARE

YOU. YEAH. >> I'VE GOT A CURIOUS FACE SO I CAN UNDERSTAND YOU NOT BEING ABLE TO READ ME INITIALLY. ME TOO. SO YES, I'M IN FAVOR OF LOW PRIORITY. AND THEN JUST PUTTING IT OUT THERE THAT I DON'T KNOW THAT IN MY OPINION, IT WOULD GO INTO AN OFFICIAL WORK SESSION. AGAIN, I FEEL A LITTLE UNCOMFORTABLE WITH THE GROUP COMING IN TO SELL US POTENTIALLY. AND AND I COULD BE READING IT ALL WRONG. AND WE'LL FIND OUT MORE AS WE MOVE FORWARD. BUT I FEEL LIKE WE SHOULD GO THROUGH THE PROPER PROCESS. IF SOMEONE'S GOING TO COME IN AND DO SOMETHING LIKE THAT. BUT I'M IN FAVOR OF LOW PRIORITY AND TO MAKE IT AVAILABLE TO COUNCIL MEMBERS, NOT SOMETHING THAT'S PART OF A WORK SESSION.

>> YEAH. OKAY. SO I'M GOING TO I'M GOING TO PROBABLY TAKE THAT AS A NON SUPPORT TOWARDS THE FULL END. BUT YEAH, JUST KIND OF YEAH, NO WORK SESSION, BUT YOU WANT TO LEARN MORE ABOUT IT.

SURE. OKAY. OKAY. IT LOOKS LIKE WE GOT FOUR, FIVE, FOUR AND A HALF IS FOUR AND A HALF. IS THAT IS THAT ACCURATE ENOUGH. SO WE'LL MOVE FORWARD. I GUESS MY COMMENT WOULD BE IT'S NOT GOING TO TAKE A MINUTE. I DIDN'T PUT THE TIMER ON. I THINK IF WE'RE GOING TO HAVE A RETREAT, I THINK THIS WOULD BE BETTER SUITED FOR A RETREAT BECAUSE THE WORK SESSION, WORK SESSION LANDSCAPE AND REAL ESTATE IS PRETTY EXPENSIVE IN THE SENSE OF, YOU KNOW, CROWDED.

BUT THOSE ARE MY ONLY COMMENTS ON IT. IF IT WOULD WORK OUT THAT WAY, THAT'D BE GREAT. IF WE DON'T HAVE A RETREAT, THEN WE GOT TO ACCOMMODATE THAT. ALL RIGHT, NEXT ONE.

>> NEXT IS FROM MAYOR PRO TEM STEPHENS. ON THE TOPIC OF POLICIES FOR CITY FUNDED

CONSTRUCTION PROJECTS. >> THIS IS PRETTY STRAIGHTFORWARD. AND AND YOU KNOW, IT IT STARTED PROBABLY A YEAR AND A HALF AGO. AT THE TIME I WAS A RESIDENT CAME BEFORE COUNCIL WITH SOME SIGNATURES FROM 100 NEIGHBORS. AND IT WAS ABOUT SOME OF THE PROBLEMS THAT THAT THE JBD NEIGHBORHOOD COLLEGE NEIGHBORHOOD ASSOCIATION IN PARTICULAR HAD BEEN DEALING WITH, WITH DELAYS, WITH ERRORS, WITH LACK OF COMMUNICATION OR COORDINATION BETWEEN CONSTRUCTION COMPANIES. AND SO I'M ASKING FOR AN SR AND A WORK SESSION TO IMPLEMENT POTENTIALLY, AND REVIEW NEW POLICIES FOR CITY FUNDED CONSTRUCTION PROJECTS IN THE CITY OF DENTON. ONE OF THE THINGS I'M ASKING FOR ALONG THESE LINES IS THAT WE USE THE NEIGHBORHOOD TWO AND SIX PROJECT AS KIND OF A CASE STUDY WHERE WE CAN REALLY LOOK AT THE THINGS THAT WE DID RIGHT AND THE THINGS THAT WE DID WRONG, AND HOW WE CAN IMPROVE THAT POLICY MOVING FORWARD. I LISTED THERE SOME OF THE THINGS THAT I'D LIKE FOR US TO LOOK AT. OBVIOUSLY, IT'S NOT LIMITED TO THAT, BUT, YOU KNOW, THIS IS SOMETHING THAT THE RESIDENTS GET FRUSTRATED ABOUT A LOT. IT'S NOT FOR. THERE'S GOOD REASON. AND I THINK THAT WE COULD ALL CERTAINLY TAKE SOME TIME AND, AND FIGURE OUT WHAT WE COULD BE DOING BETTER DIDN'T PUT A PRIORITY. AND SO I'LL PUT IT THAT LOW JUST BECAUSE IT WILL TAKE TIME. AND TWO AND SIX PROJECT IS STILL GOING ON, BUT WANTED IT TO BE SOMETHING THAT

WAS IN THE MINDS OF, OF STAFF AS WELL AS COUNCIL. >> COUNCILMEMBER REIMER.

>> I APPRECIATE MAYOR PRO TEM FOR FORMALLY PROPOSING THIS. I KIND OF ASKED FOR SOMETHING SIMILAR FOR WHENEVER TWO AND SIX IS OVER. SO I SUPPORT THIS. I'M NOT GOING TO GIVE IT A PRIORITY LEVEL JUST AT SOME POINT AFTER TWO AND SIX IS COMPLETE AND THERE'S BEEN TIME TO KIND OF ANSWER SOME OF THESE QUESTIONS. SO JUST TIMING IT BASED ON THAT. THANK YOU.

>> OKAY. >> YES, COUNCILMEMBER CHESTER. >> I'M IN FAVOR OF SOME VERSION OF THIS. MY THOUGHT WAS BECAUSE I CERTAINLY AM NOT AN EXPERT AT MANAGING SEQUENCING OR OVERSEEING CONSTRUCTION PROJECTS, THAT PERHAPS THIS WOULD BE SOMETHING THAT THE CITY AUDITOR MAYBE COULD LOOK AT AND COMPARE TO OTHER CITIES. SO I'M NOT I'M NOT COMMITTED TO THE VENUE, BUT BUT I'M IN FAVOR FOR THIS, THIS CONVERSATION. SO PUT ME DOWN FOR LOW AND IN

FAVOR. THANK YOU. >> OKAY. >> ALL RIGHT. YES,

COUNCILMEMBER HALL. >> I WOULD SUPPORT A LOW PRIORITY.

>> OKAY. ALL RIGHT. YES, COUNCILMEMBER. >> I ALSO WOULD APPRECIATE THE

PITCH. >> SO THAT'S SUPPORT. >> SUPPORT FOR. YEAH.

[03:35:02]

>> ALL RIGHT. ALL RIGHT. SO YES, I THINK YOU HAVE DIRECTION ON THAT. YEP.

>> ALL RIGHT. OUR THIRD AND LAST FOR TODAY IS THREE YEAR FROM COUNCILMEMBER FERRY ON THE TOPIC OF THREE YEAR PILOT PROGRAM FOR A DENTON EVICTION ADVOCACY CENTER.

>> THANK YOU SO MUCH. SO I'M GOING TO READ THAT. SO FOLLOWING A STRONG LETTER OF SUPPORT FROM THE DENTON COUNTY HOUSING AND HOMELESSNESS LEADERSHIP TEAM, WHICH I'M APPOINTED TO NOW BY THE CITY, BUT BEFORE FOR DAC, I'M REQUESTING COUNCIL SUPPORT FOR A WORK SESSION TO DISCUSS ESTABLISHING A THREE YEAR PILOT PROGRAM FOR DENTON EVICTION ADVOCACY CENTER. I'LL PAUSE THERE AND GO OFF SCRIPT. DENTON COUNTY EVICTIONS CONTINUE TO BE ON THE RISE, WITH A NEW RECORD OF 11,284 FILINGS IN DENTON COUNTY, WHICH FOR EVERY 1000 RENTERS, THAT IS 89.6 RENTERS BEING FILED EVICTION ON JUST LAST YEAR. THERE'S THE MODEL THAT WAS PRESENTED AT THE HOUSING AND HOMELESSNESS LEADERSHIP TEAM WAS BY DALLAS EVICTION ADVOCACY CENTER. THEY'VE SHOWN GREAT ROI, $54.1 MILLION ANNUAL SAVINGS FOR TAXPAYERS, 70% WIN RATES, KEEPING PEOPLE HOUSED, SAVING 2286 JOBS. OVERALL BENEFIT FOR GROSS ECONOMIC WAS 242.4 MILLION. I JUST WANT US TO SIT DOWN, HAVE A CONVERSATION ABOUT HOW WE COULD COLLABORATIVELY REVIEW THE PROGRAMS FRAMEWORK, EVALUATE THE POTENTIAL COMMUNITY PARTNERSHIPS, AND EXPLORE VIABLE FUNDING AVENUES. THIS WOULD OBVIOUSLY BE FOR THE NEXT BUDGET SESSION. SO I'M ALSO VERY COMFORTABLE WITH LO. WE ARE BUSY, BOOKED AND BUSY

RIGHT NOW. THANK YOU. >> OKAY. COUNCILMEMBER STEPHENS. >> I'LL SUPPORT THIS AT LOW PRIORITY AND HIGHLIGHT THE EVALUATE POTENTIAL COMMUNITY PARTNERSHIPS BECAUSE I'D LIKE TO SEE, YOU KNOW, ABOUT LEWISVILLE AND CORINTH AND THE COUNTY AND THE HOUSING AUTHORITY AND ALL OF THESE ORGANIZATIONS, HOW WE MIGHT BE ABLE TO WORK TOGETHER RATHER THAN JUST DENTON CARRYING ONE BURDEN FOR THE ENTIRE COUNTY. SO, SO THAT'S HOW I'M SEEING

THIS. THANK YOU FOR THE PITCH. >> OKAY. ANYBODY ELSE? YES. COUNCILMEMBER JESTER.

>> I CAN CERTAINLY SEE THE MOTIVATIONS BEHIND THIS, WHICH ARE VERY GOOD. I I'M NOT GOING TO BE IN FAVOR FOR A NUMBER OF REASONS REAL QUICK. FIRST, I JUST DON'T THINK IT'S PART OF OUR CORE FUNCTION. AND, AND I'M NOT FOR CREATING NEW PROGRAMS, JUST LIKE I WASN'T IN FAVOR OF THE ECONOMIC DEVELOPMENT, RENTING A BUILDING TO TEACH RESTAURANTS AND SOME OTHER THINGS. I JUST THINK THAT THIS IS SOMETHING THAT THE COUNTY IS TAKING ON. IT'S A COUNTY COURT.

THE COUNTY HAS THE ABILITY TO WAIVE FEES OR NOT. IT'S THE COUNTY JUDGES. I JUST FEEL LIKE IT'S MORE APPROPRIATE AND THEY HAVE MORE RESOURCES THAN WE DO. I WOULD PREFER ANY MONIES THAT WE WOULD PUT TOWARDS THIS, GO TOWARDS SOME OF THE GROUPS THAT HAVE RENTAL ASSISTANCE TO PREVENT THEM EVEN GETTING TO EVICTION. TYPICALLY THE EVICTION IS BECAUSE OF NONPAYMENT. AND SO I THINK YOU'RE JUST POTENTIALLY DELAYING INSTEAD OF PREVENTING SOMEONE. AND IF THEY HAVE THAT FUNDING, THEN THAT'S SOMETHING THAT CAN KEEP THEM WHERE THEY ARE. AND THEN IT ALSO SEEMS A LITTLE UNFAIR TO POTENTIALLY TAX THOSE THAT HAVE NOT FACED EVICTION AND HAVE PAID THEIR RENT FOR THE TO REPRESENT PEOPLE IN A PRIVATE MATTER AGAINST ANOTHER PRIVATE PARTY. JUST TO ME, JUST DOESN'T SEEM THE IT'S NOT THE WAY THAT I WOULD, I PERSONALLY THINK IS THE BEST WAY TO PROTECT RENTERS. I'M SORRY. AND THAT'S WHAT I'M

KIDDING. SORRY. OKAY. >> ANYBODY ELSE? YES. COUNCILMEMBER HOLLAND.

>> THERE'S THERE'S A NUMBER OF REASONS FOR EVICTIONS. DOUBT. NONPAYMENT OF RENT IS CERTAINLY ONE. BUT THERE'S THERE'S ANY NUMBER OF REASONS FOR EVICTIONS. AND, AND I DON'T THINK IT COMES UNDER OUR PURVIEW TO, TO GET INVOLVED IN THAT. SO I WILL NOT SUPPORT THIS.

>> COUNCILMEMBER RUMOHR. >> I'M OPEN TO THE DISCUSSION TO LEARN MORE, SEE WHAT THE COSTS ARE AND WHAT THE REVENUES COULD BE FOR IT. I'M OPEN TO DISCUSSING AND LEARNING MORE.

>> OKAY, WELL, I ALWAYS LEARN DON'T TALK LAST, BUT I DIDN'T. I'M NOT OPPOSED TO THE CONCEPT.

I THINK MY CHALLENGES ARE, FIRST OF ALL, WHEN YOU WERE TALKING ABOUT THE STATISTICS, YOU WERE USING COUNTY STATISTICS. AND SO TO ME, THIS IS WHERE THAT CONVERSATION SHOULD START. IS THAT THE COUNTY LEVEL? BECAUSE I THINK THE DALLAS THE DALLAS EVICTION ADVOCACY CENTER IS PRIMARILY SPONSORED BY THE COUNTY. IF I IF I REMEMBER READING THAT ON THE ORGANIZATION. SO I'M NOT OPPOSED TO THE CONVERSATION. I DON'T KNOW IF I WANT US TO BE THE FIRST CONVERSATION BECAUSE THIS CAME OUT OF THE DENTON COUNTY HOMELESSNESS LEADERSHIP

[03:40:03]

TEAM WITH DENTON COUNTY. WHAT. SO WHAT WHAT KEPT EITHER THE DENTON COUNTY REP OR SOMEBODY ELSE SAYING, HEY, LET'S HAVE THIS CONVERSATION AT THE COUNTY LEVEL. AND I THINK I'M ABOUT OUT OF TIME. SO I IS THERE SOMETHING THAT YOU CAN GET US? I MEAN, I'M OKAY WITH AN ISR ON THIS SO I CAN UNDERSTAND WHAT'S GOING ON. AND AFTER THAT, I THINK, YOU KNOW, OR IF THERE'S A PRESENTATION THAT THEY MADE WITH SLIDES AND THINGS SUCH AS THAT. SO I'M OPEN TO RECEIVING SOME INFORMATION. I THINK I WOULD NEED MORE INFORMATION BEFORE I COULD REALLY MOVE FORWARD WITH THAT. IF THAT'S IF THAT'S IF THAT MAKES SENSE. ALL RIGHT. SO I THINK THIS I'M GOING TO SAY IT DOESN'T MOVE ON, EXCEPT WE'RE GETTING MORE INFORMATION, WHICH IS I WOULD SAY IS AN ISR, WHICH IS PART OF THE PROCESS. THAT'S THE FIRST STEP IN IT MOVING FORWARD. SO IF IF WE COULD GET SOME AND THEN IF THERE'S A PRESENTATION THAT THAT WAS MADE WITH SLIDES AND THOSE KINDS OF THINGS WOULD BE GREAT. YES. WE GOT TO BE CAREFUL. YEAH.

>> I JUST POINT OF CLARIFICATION. SO THIS IS THIS MOVING ON TO AN ISR.

>> I'M OKAY WITH IT. MOVING ON TO AN ISR. OKAY. I MEAN SO YES, BUT I DON'T KNOW WHAT THAT

MEANS AS FAR AS THE THE CONTINUED. SO MR. CITY ATTORNEY. >> JUST FOR CLARITY. SO IT'S AN ISR, BUT IT STOPS THERE BECAUSE TYPICALLY THAT WOULD THEN GO TO THE COUNCIL MEMBER WHO REQUESTED IT. THEN IT WOULD GO TO THE AGENDA COMMITTEE. BUT IT SOUNDS LIKE THERE'S ONLY CONSENSUS FOR AN ISR TO GO TO THAT POINT. SO IS THAT THE THE REQUEST IS WE STOP AT THAT

POINT. WE DON'T MOVE IT FORWARD. BEYOND THAT. >> WHAT WHAT THE NEXT STEP IS

FOR IT TO GO BACK TO COUNCIL MEMBER PERRY. >> YES, THEY GET THE ISR. THEY SAY EITHER THEIR ANSWER IS SATISFIED AND THEY'RE GOOD, OR THEY ASK FOR IT TO THEN MOVE FORWARD TO THE NEXT STEP IN THE PROCESS, WHICH WOULD BE THE AGENDA COMMITTEE AND DECIDING WHERE IT GOES, WHETHER IT GOES TO THE BUDGET, WHETHER IT GOES TO A WORK SESSION OR COMMITTEE.

SO WHAT I'M TRYING TO UNDERSTAND IS, ARE YOU SAYING IT GOES TO AN ISR, BUT YOU'RE

NOT SUPPORTING ANYTHING BEYOND THAT? >> YOU'RE ASKING ME? YES.

PERSONALLY, NOT AT THIS TIME, BUT I GUESS I CAN'T RESERVE THE RIGHT TO CHANGE THAT. I'D HAVE TO COME BACK YEAH, OKAY. IF THAT'S THE CASE. SO THERE'S A COUPLE OF EXTRA POINTS IT WOULD GO TO BACK TO COUNCIL MEMBER FERRY, AND COUNCIL MEMBER FERRY WOULD DECIDE IF HIS QUESTIONS, BUT IT SOUNDS LIKE HIS QUESTIONS HAVE BEEN ANSWERED. SO I THINK HE WOULD WANT IT TO COME FORWARD TO THE AGENDA COMMITTEE AND MOVE DOWN THE PROCESS. SO THE AGENDA

COMMITTEE HAS WHAT CHOICES. >> THEY CAN PUT INTO A BUDGET DISCUSSION. THEY CAN SEND IT TO A COMMITTEE TO REVIEW FURTHER, OR THEY CAN MOVE IT FORWARD TO A WORK SESSION.

>> OKAY, I THINK I'M GOING TO STICK WITH AN ISR AT THIS POINT BECAUSE. YEAH. AND SO I DON'T KNOW WHAT THAT MEANS FOR THE PROCESS EXCEPT AND ISR. OKAY. ALL RIGHT. OKAY. THAT'S IT.

OKAY. WELL, THEN WE'RE THROUGH WITH THOSE WORK SESSIONS. WE'VE GOT. CITY COUNCIL WILL NOW

[1. Closed Meeting:]

CONVENE IN CLOSED MEETING AT 6:02 P.M. TO DELIBERATE THE CLOSED MEETING ITEMS SET FORTH ON THE AGENDA, WHICH INCLUDE THE FOLLOWING AGENDA ITEM A ID 26-1169. DELIBERATIONS REGARDING PERSONNEL MATTERS UNDER TEXAS GOVERNMENT CODE SECTION 551.074, AND THEN B, WHICH IS ID 26-1235. CONSULTATION WITH ATTORNEYS UNDER TEXAS GOVERNMENT CODE SECTION 551.071. AND WE'LL LET THE ROOM RESET AND THEN WE WILL

[AFTER DETERMINING THAT A QUORUM IS PRESENT, THE REGULAR MEETING OF THE CITY OF DENTON CITY COUNCIL WILL CONVENE AT 6:30 P.M. IN THE COUNCIL CHAMBERS AT CITY HALL, 215 E. MCKINNEY STREET, DENTON, TEXAS AT WHICH THE FOLLOWING ITEMS WILL BE CONSIDERED:]

S MEETING OF THE CITY COUNCIL ON AUGUST 18TH, 2026. APOLOGIZE FOR BEING LATE AT 636. AND RIGHT NOW, THE CITY COUNCIL HAS NOW RECONVENED FROM THE CLOSED MEETING AT 6:36 P.M. AND NO OFFICIAL ACTION WAS TAKEN. OUR NEXT ITEM ON THE AGENDA IS

PLEDGE OF ALLEGIANCE. IF YOU'LL STAND WITH ME, IF YOU'RE ABLE. >> I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION

UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. >> HONOR THE TEXAS FLAG. I PLEDGE ALLEGIANCE TO THEE. TEXAS, ONE STATE UNDER GOD AND ONE INDIVISIBLE. OUR NEXT

[2. PRESENTATIONS FROM MEMBERS OF THE PUBLIC]

AGENDA. WE DON'T HAVE ANY PROCLAMATIONS THIS EVENING. SO OUR NEXT ITEM ON THE AGENDA IS PRESENTATIONS FROM MEMBER OF THE PUBLIC. IF WE COULD REVIEW THE PROCEDURES FOR ADDRESSING

THE CITY COUNCIL. >> THE DENTON CITY COUNCIL HAS ADOPTED RULES OF PROCEDURE, INCLUDING A CODE OF CONDUCT THAT APPLIES TO THE PUBLIC AS WELL AS COUNCIL MEMBERS. THESE RULES WERE ENACTED TO PROMOTE AN ORDERLY PROCESS AND TO PRESERVE DECORUM. SPEAKERS WILL HAVE FOUR MINUTES TO GIVE A SCHEDULED REPORT AND FOUR MINUTES TO GIVE AN OPEN MIC REPORT. A BELL WILL RING WHEN TIME HAS EXPIRED. IF THE REMARKS ARE NOT CONCLUDED BY

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THAT TIME, THE SPEAKER WILL BE ASKED TO STOP SPEAKING. IF THE SPEAKER DOES NOT CEASE AND A SECOND REQUEST IS MADE, THE MAYOR MAY REQUEST TO HAVE THE SPEAKER REMOVED FROM THE CHAMBER. SPEAKERS SHOULD NOT APPROACH THE DAIS. IF A SPEAKER HAS MATERIALS FOR THE COUNCIL, PLEASE NOTIFY THE CITY SECRETARY IN ADVANCE FOR SCHEDULED REPORTS. THE COUNCIL MAY INITIATE DISCUSSION OR ASK QUESTIONS FOR NONSCHEDULED OPEN MIC REPORTS. THE COUNCIL MAY LISTEN, HOWEVER, BECAUSE NO NOTICE OF THE SUBJECT OF THE OPEN MIC REPORT HAS BEEN PROVIDED TO THE PUBLIC IN ADVANCE. THE TEXAS OPEN MEETINGS ACT PROHIBITS DISCUSSION OR DECISION BY THE COUNCIL ON NONSCHEDULED ITEMS. AS A RESULT, THE COUNCIL MAY ONLY PROCEED AS FOLLOWS. ON NONSCHEDULED ITEMS PROPOSED TO PLACE THE ITEM ON A FUTURE AGENDA. MAKE A STATEMENT OF FACTUAL POLICY OR A RECITATION OF EXISTING POLICY. SPEAKERS ARE ASKED TO DIRECT ALL REMARKS AND QUESTIONS TO THE COUNCIL AS A WHOLE, AND NOT TO ANY INDIVIDUAL MEMBER. PLEASE REFRAIN FROM MAKING ABUSIVE, PERSONAL, IMPERTINENT, PROFANE, OR SLANDEROUS REMARKS. ANYONE WHO VIOLATES THE COUNCIL RULES OF PROCEDURE MAY BE IMMEDIATELY REMOVED FROM THE CHAMBER. THANK YOU. IN ADVANCE. COPIES OF THE RULES OF PROCEDURE ARE

AVAILABLE FROM THE CITY SECRETARY. >> THANK YOU. AND AS AN ANNOUNCEMENT, IF WE COULD JUST, YOU KNOW, KEEP ANY KIND OF CLAPPING OR THINGS SUCH AS THAT TO IF WE COULD NOT DO THAT, SIMPLY GIVES RESPECT TO THE SPEAKERS AND ALSO HELPS US MOVE MORE ORDERLY THROUGH OUR AGENDA ITEMS. SO THE FIRST SPEAKER IS STEPHANIE EX REGARDING CITY OF DENTON HOMELESSNESS RESPONSE. STATE YOUR NAME AND YOUR TIME WILL BEGIN. YOU HAVE FOUR

MINUTES. >> GOOD EVENING. MY NAME IS STEPHANIE. I'M A COMMUNITY ORGANIZER WITH PEOPLE'S DEFENSE DENTON. WE'VE BEEN SERVING OUR UNHOUSED NEIGHBORS ALONGSIDE MAMA T'S BUTTERFLIES FOR NEARLY TWO YEARS NOW, PROVIDING HOT MEALS, WATER, SNACKS, MEDICAL AND HYGIENE SUPPLIES, AND EXTREME WEATHER SUPPLIES. EVERY SUNDAY, EITHER MAMA TEA OR PEOPLE'S DEFENSE IS OUT THERE DOING WHAT WE CAN TO HELP OUR NEIGHBORS SURVIVE THE BRUTAL AND UNFORGIVING LIFE THEY LIVE ON OUR DENTON STREETS. WE ARE ABLE TO SERVE THESE PEOPLE OUT OF OUR OWN POCKETS. AND FROM THE DENTON DENTON RESIDENTS THAT BELIEVE IN OUR WORK, WE ARE OUT THERE EVERY WEEK BECAUSE WE SEE THE CONSEQUENCES OF OUR LOCAL GOVERNMENTS AND THEIR NONPROFIT LACKEYS. CURRENT APPROACH TO REMEDYING HOMELESSNESS IN DENTON. HOWEVER, PROVIDING THESE ITEMS IS NOT ENOUGH. WE AT PEOPLE'S DEFENSE DEN OPENLY CRITICIZE OURSELVES BECAUSE IT HAS TAKEN US THIS LONG TO MOVE BEYOND SIMPLY SERVING OUR UNHOUSED NEIGHBORS AND TOWARDS CONFRONTING THEIR ABUSERS AND MAKING THIS ABUSE KNOWN TO THE RESIDENTS OF DENTON. SERVING OUR NEIGHBORS WITHOUT CHALLENGING THE SYSTEM THAT IMMISERATED THEM AND KEEPS THEM DOWN ALLOWS THIS SYSTEM TO CONTINUE UNABATED. THE PEOPLE WHOSE JOB IT IS TO UPLIFT OUR UNHOUSED NEIGHBORS ARE FAILING SPECTACULARLY. THEY HAVE NO APPRECIATION OR CONCERN FOR THE LIVES AND CONDITION OF OUR NEIGHBORS. WE KNOW THIS BECAUSE WE'VE HEARD THIS FIRSTHAND. IF THEY HAD, THEN THE WORK THAT THESE NONPROFITS DO WOULD LOOK DRAMATICALLY DIFFERENT IN ITS CURRENT STATE. THESE NONPROFITS FACILITATE AND ENABLE THE NEGLECT AND ABUSE OF OUR UNHOUSED NEIGHBORS, AND THE PERSONAL ENRICHMENT OF THOSE RESPONSIBLE FOR THEIR WELL-BEING. OF COURSE, THE NONPROFITS ARE NOT ABLE TO DO THIS ALONE. THEY OPERATE AS A PART OF A LARGER SYSTEM THAT PROFITS ON THE IMMISERATION OF OUR FRIENDS, FAMILY, AND NEIGHBORS IN THIS SYSTEM THE CITY GOVERNMENT, OUR ELECTED OFFICIALS THAT HAVE THE POWER TO HOLD THESE INSTITUTIONS ACCOUNTABLE, TURN A BLIND EYE AND WASH THEIR HANDS OF THEIR RESPONSIBILITY. TO ALL OF DAN'S RESIDENTS, COMPLETELY EXPOSED AND WITH NOWHERE TO GO, OUR UNHOUSED NEIGHBORS ARE SENTENCED TO DIE IN EXTREME WEATHER BY STARVATION OR ARE EXECUTED AT GUNPOINT ON THE SQUARE. AS THE POWER OF OUR LOCAL LANDLORDS TO EXPLOIT OUR BASIC NEED FOR SHELTER GOES UNCHECKED FROM THE STATE DOWN TO THE CITY LEVEL AND RENTS ARE INCREASED YEAR AFTER YEAR. MORE WORKING CLASS NEIGHBORS ARE EVICTED IN SILENCE AND SENTENCED TO LIFE ON THE STREETS. SOME WILL SAY, AREN'T THERE PROGRAMS THAT PEOPLE CAN GO TO TO RECEIVE ASSISTANCE? THE ANSWER IS A RESOUNDING NO. THERE ARE NO WORK PROGRAMS. THERE ARE NO HOUSING PROGRAMS OPERATING AT THE SCALE TO EFFECT A MEANINGFUL IMPACT ON HOMELESSNESS IN DENTON, THE CITY MUST TAKE A GREATER ROLE IN CURBING THE POWER OF LANDLORDS THAT CAUSE HOMELESSNESS AND HOLD THE INSTITUTIONS THAT MAINTAIN HOMELESSNESS ACCOUNTABLE. IF YOU DON'T BELIEVE ME, YOU CAN REFER TO THE CITY OF DENTON'S OWN AUDIT ON THE ABYSMAL STATE OF THE RESPONSE TO HOMELESSNESS. WE. WE RECOGNIZE WHAT. THIS IS CLEAR AS DAY. THIS IS THE COMPLETE DOMINATION OF THE WORKING CLASS MAJORITY BY A RUTHLESS AND UNIMPEDED OWNING CLASS MINORITY. WE ASK THAT THE DEN RESIDENTS THAT CARE ABOUT THE CONDITION OF THEIR UNHOUSED NEIGHBORS TAKE A GREATER ROLE IN SUPPORTING THEM WITH US.

PEOPLE'S DEFENSE. DENTON AND BUTTERFLIES AS MEMBERS OF THE UNHOUSED ACTION CAMPAIGN, UNHOUSED AND HOUSED NEIGHBORS ARE TOGETHER DEMANDING THE FOLLOWING ONE ACCOUNTABILITY

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FOR RAMPANT ASSAULT, COERCION, AND HUMAN TRAFFICKING TWO ACCOUNTABLE, ACTIVE AND INDEPENDENT CASE MANAGERS THREE. INCREASED CITY OVERSIGHT TO ENSURE THE SHELTERS ARE FOLLOWING CITY ORDINANCES. FOUR ALLOW UNHOUSED PEOPLE TO RESIDE NEAR THE SHELTER EVEN IF THEY AREN'T STAYING THE NIGHT. FIVE PREVENT STAFF FROM TAKING HOME DONATIONS SIX. RESPECT PRIVACY OF RESIDENTS, MAKE LOCKS FREE AND END MAIL INSPECTION SEVEN. PROVIDE LAUNDRY AND BUS VOUCHERS EIGHT ACCOMMODATE THE MEDICAL AND DIETARY NEEDS OF RESIDENTS. NINE. IMPROVE THE QUALITY AND VARIETY OF FOOD OPTIONS AND TEN END THE REQUIREMENT THAT RESIDENTS WORK FOR FREE AT OUR DAILY BREAD FOR HOUSING. THESE DEMANDS ARE NOT SIMPLY MOTIVATED BY BASIC HUMAN DIGNITY AND INJUSTICE, BUT BLATANT ILLEGALITY. THESE ARE OUR TAX DOLLARS UPHOLDING THESE INSTITUTIONS THAT CRIMINALIZE AND PROFIT OFF OF US. WE WON'T STAND FOR THIS.

>> THANK YOU. ANY QUESTIONS? SEEING NONE. ALL RIGHT. THE NEXT SPEAKER IS ANNA HOUSE.

REGARDING PROPOSED DATA CENTERS. STATE YOUR NAME AND YOUR TIME WILL BEGIN. YOU HAVE FOUR

MINUTES. >> I'M ANNA. I'M HERE TO DISCUSS SOME CONCERNS REGARDING DATA CENTERS IN DENTON. BASED OFF OF YOUR PAST MEETING ON AUGUST 4TH, THERE IS NO SUCH THING AS A TRULY CLOSED LOOP SYSTEM. IT'S THE CHEAPER AVERAGE. IT'S NOT SAFER OR BETTER. IT'S ONLY MORE COST EFFICIENT FOR COMPANIES. IT USES FOREVER CHEMICALS WHICH REQUIRE REGULAR FLUSHINGS. WHEN LEAKS OCCUR, THESE FOREVER CHEMICALS END UP IN OUR WATER SYSTEMS AND LOCAL ENVIRONMENTS. EVAPORATIVE COOLING JUST MEANS MORE WATER USAGE. AIR COOLING, LIKE CUMULUS AI WILL USE CONTRIBUTES TO AIR POLLUTION, WHICH IS ALREADY TOO HIGH.

GREEN ENERGY, WHILE WELL INTENDED, IS SIMPLY GREENWASHING AND IS NOT RELIABLE ENOUGH FOR DATA CENTER ELECTRICAL USE AND IS CONSIDERED EXPENSIVE. THE BEST GREENEST SOLUTION WOULD BE NO DATA CENTERS. AS WE ALL KNOW, THESE POLLUTION CENTERS CAUSE A MYRIAD OF HORRIBLE HEALTH ISSUES. THIS YEAR IN CHEYENNE, WYOMING, A RARE ANTIBIOTIC RESISTANT BACTERIA ENDED UP IN THE CITY'S WATER SYSTEMS AFTER A ROUTINE FLUSH OF THE DATA CENTER WATER. ADDITIONALLY, IN. MY FAVORITE PART OF DENTON IS THAT WE ARE A BYRD CITY.

UNFORTUNATELY, YOU CAN SAY GOODBYE TO THE BIRDS AS THE DATA CENTER WILL DISRUPT THEIR NORMAL ACTIVITY AND MIGRATORY PATTERNS. IT'S NEAR IMPOSSIBLE TO EXCEL IN HABITAT CONSERVATION WHEN DATA CENTERS DESTROY THE ENVIRONMENT. THE RESPONSIBLE AND ETHICAL THING TO DO WOULD BE TO HAVE A THIRD PARTY, UNBIASED ENVIRONMENTAL IMPACT STUDY DONE DURING THIS TIME AND PAUSE, AND I AM KINDLY REQUESTING THAT THIS BE DONE AS IT WOULD BE BENEFICIAL FOR EVERYONE. THERE ARE EMINENT DOMAIN CONCERNS, AS PUBLIC UTILITY COMPANIES CAN USE THIS TO SECURE LAND FOR HIGH VOLTAGE TRANSMISSION LINES. WE ARE CURRENTLY AT ELECTRICAL CAPACITY IN THESE FACILITIES WOULD USE MORE ELECTRICITY THAN THE ENTIRE CITY USES CURRENTLY.

WE ASK THAT OUR ELECTED OFFICIALS ENSURE THAT THIS WILL NOT TAKE PLACE AND DO NOT PUT THEIR ELECTRICAL COSTS ON US. DATA CENTERS DESTROY THE HOUSING MARKET AS NO ONE WANTS TO LIVE NEAR THESE THINGS. NEIGHBORHOODS ARE AT RISK OF CORPORATE BUYOUTS. CURRENT ZONING IS NOT GOOD ENOUGH, WITH ONLY A 100 FOOT BUFFER FOR HOUSING AND 30FT OF LANDSCAPE REQUIRED. PLEASE PROTECT DENTON RESIDENTS HEALTH, SAFETY AND PROPERTY VALUES. LOWER PROPERTY TAXES SOUND NICE, BUT AT WHAT COST? I WAS HERE TWO WEEKS BACK AND SPOKE ABOUT MASS SURVEILLANCE IN OUR CITY AND HOW IT VIOLATES OUR CONSTITUTIONAL RIGHTS. DATA CENTERS PROVIDE THE INFRASTRUCTURE NEEDED TO STORE MASS SURVEILLANCE DATA LONG TERM OUTSIDE OF LOCAL POLICE CLOUDS. I EXPLAINED THAT THERE ARE THIRD PARTIES ACCESSING AND MANIPULATING DATA WITHOUT WARRANTS, AND DATA CENTERS MAKE THAT POSSIBLE. SKY IS UNWELCOMED AS THE COMMUNITY IS NOT INTERESTED IN SUPPORTING AN AI WAR DRONE FACILITY, AS THIS IS ALL PART OF THE SAME VEIN, WE ARE CURRENTLY IN AN AI BUBBLE. CORE SCIENTIFIC ALREADY WENT BANKRUPT ONCE AFTER SIGNING ON WITH DENTON. AI COMPANIES ARE ARTIFICIALLY INFLATED IN THE MARKET AND NOT TURNING ENOUGH PROFIT. AI DATA CENTERS ARE A HIGH RISK WITH A LOW REWARD. GIVEN THE NEGATIVE IMPACTS AND UNCERTAINTY, WE NEED TO ENSURE ANY FUNDS USED FOR IMPROVEMENTS IN THE CITY ARE THINGS THE CITY CAN AFFORD TO MAINTAIN ON ITS OWN. THE SAME GOES FOR JOBS AFFILIATED WITH THESE FUNDS AND IMPROVEMENTS. MOST OF US DO NOT SUPPORT DATA CENTERS, REGARDLESS OF ANY FUNDS THEY MAY PROVIDE FOR THE CITY. YOU MAY REASSESS YOUR MULTI-MILLION BUDGET FOR POLICING AND THE OVER 300,000 THAT WAS SET ASIDE FOR FLOCK CAMERAS, AND PUT THAT TO USE ELSEWHERE. MANY OF US WHO MAKE THE VIBRANT TOWN THAT IT IS WILL NOT BE ABLE TO LIVE SAFELY UNDER RISING COSTS OF LIVING, UNHEALTHY CONDITIONS AND INCREASING MASS SURVEILLANCE ALL COMES WITH AI FACILITIES. IT FEELS LIKE A BAD KEEPING UP WITH THE JONESES SITUATION, RATHER THAN A WELL THOUGHT OUT PLAN WITH COMMUNITY INPUT. I LOOK FORWARD TO CITIZENS HAVING THE CHANCE TO SPEAK THEIR CONCERNS IN FRONT OF COUNCIL. I ASK THAT YOU CONTINUE THE MORATORIUMS, CONDUCT THIRD PARTY

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ENVIRONMENTAL STUDIES, AND DO NOT CONSIDER ANY FUTURE AI RELATED FACILITIES, REGARDLESS OF ANY POTENTIAL LAWS THE STATE MAY PASS. PLEASE DO WHAT YOU CAN TO PROTECT THE LIVELIHOODS AND HEALTH OF YOUR CITIZENS RIGHT NOW. WE DID NOT VOTE FOR ANY OF THIS. THANK YOU.

>> I BELIEVE WE HAVE A REQUEST TO SPEAK OR QUESTION. MAYOR PRO TEM, HI.

>> THANK YOU FOR SPEAKING. I'LL KEEP IT BRIEF, BUT I APPRECIATE THE PRESENTATION. AND JUST DUE TO ITS RELEVANCY, I WANTED TO MAKE A COMMENT WHICH IS LATER IN THE EVENING, WE'RE GOING TO BE HAVING A VOTE ON SETTING THE DATES FOR THOSE PUBLIC HEARINGS. IT'S A VOTE TO GIVE PEOPLE THE OPPORTUNITY TO SPEAK ON THIS ISSUE. AND SO, YOU KNOW, STAY TUNED. AND I THINK THAT WOULD BE A GOOD AVENUE FOR RESIDENTS TO COME IN AND SHARE THEIR OPINIONS ON THE MORATORIUM.

>> YEAH, I SAW THAT ONLINE WITH THE PAPER, SO I APPRECIATE THAT. THANK YOU.

>> THANK YOU. ALL RIGHT. NEXT SPEAKER IS WILLIE HUDSPETH. REGARDING THE HIRING FOR CITY

MANAGER. >> WHO. >> MAYOR AND CITY COUNCIL. MY NAME IS WILLIE. I LIVE AT 623 NEWTON. I WAS PLANNING TO PRESENT TO YOU LIKE I ALWAYS DO, BUT I TALKED TO GOD ABOUT MY FRUSTRATION WITH THE COUNTRY AND OUR CITY IN SOME AREAS. AND, AND I JUST I THOUGHT, WHAT CAN I DO? I'M JUST ONE SMALL PERSON. WHAT DO I DO? SO HE SAID, TALK ABOUT WHAT YOU'VE DONE AND HOW YOU FEEL ABOUT IT. I THOUGHT, YOU KNOW, I'M VERY FORTUNATE. I, I'VE ALWAYS HAD A JOB. I'VE DONE REALLY GOOD. I'M HEALTHY FOR THE MOST PART, AND I HAVE GOOD KIDS. EXCEPT THE MAYOR AND. SORRY, GERARD. JUST KIDDING. JUST KIDDING. AND BUT I'VE JUST HAD A GOOD LIFE. GOOD WIFE, 57 YEARS AND AND I'M THINKING, SO WHAT CAN I DO? HOW DO I MAKE A DIFFERENCE? WELL, I THINK THAT'S HOW I MAKE A DIFFERENCE. TALKING TO YOU ABOUT JUST AS A PERSON WHO'S GONE THROUGH A LOT AND WHO'S DOING GOOD NOW, AND I THOUGHT, I'M JUST GOING TO PLAY THIS FOR YOU. TO LET YOU KNOW HOW I FEEL ABOUT THIS COUNTRY AND WHAT I'M GOING THROUGH.

>> SIXTH TACTICAL TRAINING WING AT MACDILL AIR FORCE BASE, AND WE'LL BE PERFORMED BY THE FLORIDA ORCHESTRA UNDER THE DIRECTION OF MAESTRO YARLING AND SUNG BY GRAMMY AWARD WINNER

WHITNEY HOUSTON. >> AND. I. LOVE. WAS SO PROUD. WE. ASKED FOR LIGHTS AND. WHOSE BROAD STRIPES AND BRIGHT STARS. THROUGH. FOR THE LAST FIVE. FOR THE REST. WE ARE. WE'RE SO GLAD.

STRENGTH AND THE RIGHT IS RIGHT. THE. SINGING. CAME FROM. RATHER THAN. THAT OUR FLAG WAS STILL THERE. OH, SAY. THAT STARS. GO BACK. OH, YEAH. OH THE RED. AND THE. I.

>> I HEARD THAT PLAYING AND I THOUGHT, MAN, I HAVE A LOT TO BE THANKFUL FOR. I THINK WE

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HAVE A GOOD CITY MANAGER. I DON'T THINK WE NEED TO BE SPENDING MONEY TO TRY TO FIND

SOMEONE ELSE. THAT'S JUST ONE PERSON'S OPINION. THANK YOU. >> THANK YOU.

>> THE NEXT SPEAKER WILL BE LARRY LAWRENCE. REGARDING THE HIRING FOR CITY MANAGER.

>> LARRY LAWRENCE. WELL, WE JUST WITNESSED RIGHT THERE. THAT JUST SHOWS WHAT KIND OF GREAT CITY THIS IS, RIGHT? WE'RE A SPECIAL GROUP. I'D LIKE TO ASK EACH OF YOU TO DO SOMETHING THAT ISN'T ALWAYS EASY IN PUBLIC SERVICE. WALK A MILE IN SOMEONE ELSE'S SHOES.

IMAGINE BEING ASKED TO STEP INTO ONE OF THE MOST DEMANDING POSITIONS IN OUR CITY. NOT NOT PERMANENTLY, BUT AS AN INTERIM. EVERY DAY YOU'RE EXPECTED TO LEAD, SOLVE PROBLEMS, ANSWER TOUGH QUESTIONS, AND KEEP CITY OPERATIONS MOVING FORWARD. YET EVERY DECISION YOU MAKE COMES WITH UNCERTAINTY. YOU DON'T KNOW WHAT TOMORROW HOLDS. IMAGINE CARRYING THE WEIGHT OF THAT RESPONSIBILITY WHILE ALSO KNOWING THERE'S A POSSIBILITY THAT AFTER MONTHS OF GIVING EVERYTHING YOU HAVE, YOU COULD BE ASKED TO TRAIN SOMEONE ELSE TO TAKE TO TAKE THE JOB YOU'VE BEEN DOING. WHETHER YOU AGREE WITH EVERY DECISION OR NOT, I THINK WE CAN ALL ACKNOWLEDGE THAT TAKES COURAGE, RESILIENCE AND COMMITMENT. THAT HAS TO BE A HEAVY BURDEN TO CARRY. AS I LOOK AROUND THIS ROOM. I SEE ATTORNEYS, FORMER JUDGE, BUSINESS OWNERS AND PROFESSIONALS WHO HAVE EACH BUILT SUCCESSFUL CAREERS. BUT I'D ASK YOU TO REMEMBER SOMETHING. THERE WAS A TIME WHEN SOMEONE TOOK A CHANCE ON YOU. SOMEONE SAW POTENTIAL BEFORE YOU HAD YEARS OF EXPERIENCE. SOMEONE BELIEVED YOU COULD GROW INTO THE ROLE BEFORE YOU HAD COMPLETELY MASTERED IT. NONE OF US ARRIVES FULLY PREPARED FOR THE BIGGEST OPPORTUNITIES IN OUR LIVES. WE BECOME QUALIFIED BECAUSE SOMEONE ENTRUSTED US WITH RESPONSIBILITY AND GAVE US THE OPPORTUNITY TO PROVE OURSELVES. LEADERSHIP ISN'T JUST ABOUT EVALUATING RESUMES, IT'S ABOUT RECOGNIZING CHARACTER, WORK ETHIC, ADAPTABILITY, AND THE WILLINGNESS TO RISE TO THE OCCASION. MISS OGDEN HAS SHOWN UP EVERY DAY UNDER EXTRAORDINARY PRESSURE. SHE HAS ACCEPTED RESPONSIBILITY DURING A CHALLENGING TIME FOR OUR CITY.

REGARDLESS OF WHAT THE FUTURE HOLDS. THAT KIND OF SERVICE DESERVES RESPECT. I'M SIMPLY ASKING THIS COUNCIL TO EVALUATE HER WITH THE SAME FAIRNESS AND OPEN MIND THAT EACH OF YOU WOULD HOPE TO RECEIVE IF YOU WERE STANDING IN HER POSITION. IF YOU BELIEVE EXPERIENCE MATTERS AND IT DOES, REMEMBER THAT EXPERIENCE HAS TO BEGIN SOMEWHERE. EVERY ACCOMPLISHED ATTORNEY ONCE ARGUED THE FIRST CASE, EVERY RESPECTED JUDGE WANTS HER. THE FIRST CASE, EVERY SUCCESSFUL BUSINESS OWNER MADE DECISIONS BEFORE THEY KNEW THEY WOULD SUCCEED. THE QUESTION BEFORE THIS COUNCIL ISN'T WHETHER ANYONE IS PERFECT. THE QUESTION IS WHETHER WE ARE WILLING TO RECOGNIZE DEDICATION, GROWTH AND POTENTIAL WHEN WE SEE IT. LEADERSHIP ALSO MEANS ENCOURAGING THOSE WHO ARE WILLING TO SERVE, ESPECIALLY WHEN THEY'RE CARRYING A BURDEN THAT FEW PEOPLE TRULY UNDERSTAND. I HOPE YOU WILL CONSIDER NOT ONLY WHAT SHE HAS ACCOMPLISHED, BUT ALSO THE COURAGE IT HAS TAKEN TO ANSWER THE CALL. WHEN OUR CITY NEEDED

SOMEONE TO STEP FORWARD. THANK YOU FOR YOUR TIME. >> THANK YOU. NEXT SPEAKER IS VICKI BYRD. REGARDING PROPER PROCEDURES FOR CONDUCTING A MEETING. STATE YOUR NAME AND

YOUR TIME WILL BEGIN. >> HELLO EVERYONE. I'M VICKI BYRD, CITY OF DENTON. WELL, I LIVE IN THE CITY OF DENTON. SORRY. NOW I'M CALLING AND I'M COMING UP IN REGARDS TO PROPER PROCEDURES FOR OUR CITY COUNCIL. AND I'M TALKING ABOUT THE ROBERT'S RULES OF ORDER. AND I AM THINKING ABOUT THE PRACTICAL FRAMEWORK IN WHICH BY WHICH A MEETING IS HELD. AND THIS CITY COUNCIL DAIS IS ALSO HELD TO THOSE SAME PROCEDURAL TYPES THAT ANY OTHER GROUP WOULD BE ORGANIZATIONS, NONPROFITS, ANY OTHER GROUP THAT WOULD BE LED. THEY DO HAVE RULES OF ORDER.

AND WHAT MY WHAT I WANT TO DO IS I WANT TO TALK JUST A JUST A QUICK BIT. AND I'M NOT TALKING

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TO THE PEOPLE THAT ALREADY KNOW THIS. I'M TALKING TO THE PEOPLE THAT DON'T KNOW THIS AND WHAT THEY SHOULD EXPECT WHEN THEY ARE SEEING OUR CITY COUNCIL MEMBERS ON THE DAIS AND HOW THEY CONDUCT THEMSELVES AND HOW THEY RELATE TO ONE ANOTHER AND GO THROUGH THE PROPER PROCEDURES. AND IT CAME DIRECTLY FROM OUR AUGUST 4TH MEETING, WHICH CONCERNED ME. SO FIRST OF ALL, THE EXPECTATIONS OF CITY COUNCIL MEMBERS, WE DO HAVE TO RESPECT THE PRESIDING OFFICER, WHICH IS OUR MAYOR. HE IS THE PRESIDING OFFICER. COUNCIL MEMBERS SHOULD SPEAK ONLY WHEN RECOGNIZED AND SHOULD FOLLOW THE ESTABLISHED MEETING PROCEDURES. WE SHOULD STAY FOCUSED ON THE MOTION AND THE AGENDA ITEM, WHICH IS WHAT WE DO. WE DO A GREAT JOB DOING THAT. DISCUSSION SHOULD REMAIN RELEVANT TO THE MATTER BEFORE THE COUNCIL. THEN WE HAVE TO DEBATE OUR ISSUES. WE'RE NOT DEBATING ONE ANOTHER. WE HAVE TO STAY FOCUSED ON THE ISSUE RATHER THAN EACH OTHER, BECAUSE SOMETIMES THERE COULD BE A LITTLE BIT OF CONSTERNATION WHEN SOMEBODY DOESN'T AGREE WITH YOU. THEN SOMETIMES WE GET A LITTLE BIT IMMATURE AND WE WANT TO TAKE IT OUT ON EACH OTHER, RATHER THAN STAYING FOCUSED ON THE OBJECT AT HAND.

SO WE DO HAVE SOME DISAGREEMENTS AND WE JUST SHOULDN'T BE DISRESPECTFUL FOR EACH OTHER. WE SHOULD USE PROPER MOTIONS. THIS IS WHY I'M HERE. THE PROPER MOTION.

WHENEVER YOU ALL UNDERSTAND AS A COMMUNITY, WHENEVER WE SEE OUR MEMBERS ON OUR DAIS AND THERE'S LIKE A LITTLE BACK AND FORTH TIT FOR TAT GOING ON, THAT MEANS THAT THAT MOTION, THAT PROPER PROCEDURE FOR THAT MOTION HAS BEEN TAINTED THERE. AND I SAW A LITTLE BIT OF THAT ON AUGUST THE 4TH, AND THERE WAS A LITTLE BIT OF BACK AND FORTH THERE. BUSINESS GENERALLY COMES BEFORE THE COUNCIL THROUGH A MOTION. MOTION SHOULD BE CLEAR ENOUGH FOR THE COUNCIL AND THE PUBLIC TO UNDERSTAND WHAT ACTION IS BEING PROPOSED. SO ON AUGUST THE 4TH WE HAD A MOTION. WE KNOW WE'RE GOING TO HAVE SOME INFORMATION, AND THEN THE CHAIR IS GOING TO GIVE THE DAIS AN OPPORTUNITY TO ASK QUESTIONS. AND THEN THAT'S WHEN THE MOTION COMES IN. THAT MOTION COMES IN IN ALL MOTIONS ARE DONE TO PROCEED. MOTIONS ARE NOT DONE TO HOLD THINGS BACK. THE ONLY WAY THAT SOMETHING'S GOING TO BE HELD BACK IS WHEN I'M OUT OF TIME, IS WHEN THERE IS NO SECOND. YOU'VE GOT TO DO A SECOND BEFORE YOU DO YOUR YOUR DISCUSSION. SO HAVE THE DISCUSSION AFTER A SECOND. IF THERE'S NOT A SECOND, THE MOTION DIES. YOU ALL REMEMBER THAT. PLEASE REMEMBER THAT THE CHAIR HAS THE PRIVILEGE TO GO INTO SOMETHING CALLED A PRESENT PRIVILEGE. IF THAT HAPPENS, THEN WE'RE OUT OF ORDER, BASICALLY BECAUSE IT'S GIVING CREDENCE TO SOMETHING THAT WE HAVEN'T SET IN STONE. IF WE HAVE PROCEDURES IN DENTON THAT SAYS THAT WE CAN GET OUT OF ORDER, THEN WE NEED TO WRITE THOSE DOWN. THOSE NEED TO BE SOLID. THEY NEED TO BE SOLIDIFIED BEFORE WE DO THAT.

SO I'LL COME BACK NEXT WEEK AND I'LL CONTINUE ON. I KNOW I NEED TO SIT, BUT I DO WANT TO LET THE COMMUNITY KNOW THAT THERE IS A PROPER WAY TO DO THINGS, AND I DON'T WANT TO HAVE THE CHAIR NOT TALKING SPECIFICALLY ABOUT ANYBODY, BUT WHOEVER'S SITTING IN THE CHAIR TO BE ABLE TO MANIPULATE A PROCESS BECAUSE OF THE IDEA OF, OH, WE USED WE ALWAYS KIND OF DO IT THAT WAY.

I DON'T WANT THAT. I WANT US TO STAY FOCUSED ON WHAT'S GOING ON. STAY THERE, AND THEN WE'RE DONE.

THANK YOU. THANK YOU ALL FOR THE OPPORTUNITY. >> ALL RIGHT. NEXT SPEAKER IS FORMER MAYOR GERARD REGARDING $5 MILLION VOTE VERSUS VOTE TO RAISE UTILITY RATES. STATE YOUR

NAME. YOUR TIME WILL BEGIN WHEN YOU DO THAT. >> THANK YOU. LOOK AT THAT. ALL RIGHT. MY NAME IS GERARD HUDSPETH. THANK YOU, MAYOR AND COUNCIL FOR THE OPPORTUNITY TO SPEAK BEFORE YOU. AND I'LL GET INTO IT. SO THIS IS AN EMAIL THAT WAS SENT ON JUNE 16TH, 2025. IT'S BEFORE OUR COUNCIL MEETING. AND I HAD A QUESTION. 616 THAT'S THE DAY BEFORE. ASK A QUESTION FROM ME. PLEASE PROVIDE. YOU CAN READ IT. SO WE'RE TALKING ABOUT RECS. THOSE ARE THE. THAT'S WHAT WE USE TO MEASURE THE FACT THAT WE'RE 100% RENEWABLE. AND THAT'S GREAT. I RECOGNIZE THAT, AND I'M FINE WITH THAT SYSTEM, BY AND LARGE. BUT WHEN I WATCH THE BUDGET MEETING AND THE COUNCIL WAS TALKING ABOUT A 3.5 OR 3% RATE INCREASE, THAT'S WHAT GOT MY ATTENTION. SO I STAND HERE BEFORE YOU TODAY ADVOCATING FOR MYSELF, CERTAINLY AS A AS A

[04:10:05]

MEMBER, A RATEPAYER, BUT ALSO I'D ASK YOU TO THINK ABOUT THOSE ON A FIXED INCOME WHEN YOU'RE TALKING ABOUT IT'S SMALLER DOLLAR AMOUNTS AND ALL THOSE THINGS. BUT WE HAVE SENIORS AND OTHERS THAT ARE ON A FIXED INCOME THAT THOSE SMALL AMOUNTS MATTER, AND WE HAVE A MECHANISM TO ADDRESS IT, NOT DENYING THAT WE NEED TO ADDRESS IT. IT'S A IT'S ABLE THE NEED IS ABOUT 4.5 MILLION FROM MEMORY. THIS IS THIS IS 5 MILLION AVAILABLE AS YOU SEE BEFORE. SO IT 100% COVERS THAT THAT THAT NEED. AND THIS IS THE, THE SLIDE THAT WAS PRESENTED DURING THAT. AND TO JUST KIND OF DOCUMENT, BECAUSE HOPEFULLY THIS WILL BE ADDED TO THE FOLDER ON THE AGENDA. AND IT'LL ALLOW ME TO SHARE WITH OTHER PEOPLE SO THAT THEY CAN ALSO ADVOCATE FOR THEMSELVES THAT THAT SAID, I WOULD ASK YOU TO TAKE ACTION A VOTE, YOU'RE GOING TO VOTE ANYWAY, YOU'RE GOING TO VOTE ON THE BUDGET. SO I WOULD SAY TAKE A VOTE ON WHETHER TO PROCEED OR NOT WITH THE AVENUE AVAILABLE TO RESELL THE RECS TO, TO GET THE MONEY YOU NEED. THAT WAY, AT LEAST THOSE THAT ARE ON THE IN THE CITY KNOW WHO AND WHO TOOK A POSITION AND WHAT THEIR POSITION WAS. AND I THINK THAT'S CRITICALLY IMPORTANT BECAUSE YOU'RE GOING TO VOTE ANYWAY IF YOU DON'T HAVE A SEPARATE VOTE OR A POLICY CHANGE ON A VOTE, A VOTE FOR POLICY CHANGE, THEN YOU'RE GOING TO VOTE FOR THE PRESENTED BUDGET, WHICH IS VOTING FOR THE INCREASE, AND YOU FAIL TO ADD A LEVEL OF TRANSPARENCY. SO THAT THAT TO ME IS A CONCERN. IF EVERYONE'S NOT WILLING TO TAKE A POSITION AND BE TRANSPARENT ABOUT THAT. AND THEN ALSO TALK ABOUT OTHER FINANCIAL ISSUES THAT I THINK ARE IMPORTANT.

IT'S ALREADY BEEN DONE BY AND LARGE. AND THANK YOU FOR THAT. WHOEVER PULLED THE TRIGGER. BUT THE IT STILL LISTED MAYOR PRO TEM AS SUZI RUMOHR. AND THAT'S BEEN FIXED. IT STILL HAS. AND ALSO IT FIXED THE D ONE SITUATION. IT ADDED IT TOOK AWAY THE BUYOUT. BUT I WOULD ASK YOU TO TAKE AWAY THE PICTURE ALL OF IT I, I JUST HAVE A PROBLEM WITH IT AND I'M.

B AND THOSE THAT DON'T HAVE A PROBLEM WITH IT AND THE ACCUSATIONS THAT ARE BEFORE THE DISTRICT ONE REPRESENTATIVE THAT RESIGNED. PLEASE, BY ALL MEANS GO ON RECORD AND SAY YOU DON'T HAVE A PROBLEM WITH IT. YOU'LL STATE DUE PROCESS, ALL THOSE THINGS. I'M JUST SELFISHLY SAYING, WHEN SOMEONE SEARCHES THE CITY OF DENTON AND THIS STORY, I DON'T WANT IT TIED BACK TO DENTON. I DON'T THERE. THEY'VE NOT ATTENDED. THEY'RE NOT PLANNING TO ATTEND.

THEY TOLD THE NEWSPAPER AGAIN TODAY. THEY'RE NOT COMING BACK. WHY? WHY DO WE WANT TO CONTINUE TO HAVE THAT BLACK. I DON'T KNOW, BUT I WOULD ADVOCATE THAT FOR THAT. AND THEN LASTLY, THE THE THE TWO MINUTE PITCH WAS FOR A PARK, QUAKERTOWN PARK MEMORIAL FUND. WELL, I'D NEED STAFF TO HELP ME UNDERSTAND WE HAVE $1.9 MILLION APPROVED ALREADY. WHY ARE WE HAVING THAT CONVERSATION? WHY ARE WE RESEARCHING THAT? IN THE BOND? THERE'S TWO VERTICAL BUILDINGS AND THOSE TOTAL $1.9 MILLION. AND WE'RE SITTING WE'RE HAVING THE STAFF REPORT OVER A FEW THOUSAND DOLLARS. MAKES NO SENSE TO ME. WE'RE DUPLICATING EFFORTS. WE COULD WE HAVE $2 MILLION AVAILABLE TO DO WHATEVER WE NEED TO DO. AND I JUST ASK YOU AND HERE, HERE'S THE BOND ISSUE THING. HERE'S THE THE NUMBERS. THIS IS THE ART THAT WAS VANDALIZED. THAT'S THE BRIDGE THAT WAS VANDALIZED. AND SO THANK YOU VERY MUCH FOR YOUR TIME, I APPRECIATE IT.

>> THANK YOU. ALL RIGHT. WE HAVE A PLACE FOR ONE OPEN MIC SPEAKER. AND WE HAVE SEVERAL CARS, SO WE'LL TAKE THEM IN ORDER IN WHICH THEY WERE RECEIVED AS LAURA PENNE PRESENT.

IS LAURA PENNE PRESENT. I DON'T SEE ANY MOVEMENT. ALL RIGHT. THE NEXT CARD WE'LL GO TO. AND SO WE ONLY HAVE ONE SLOT IS JUDAH LANIER. IS THAT JUDAH? OKAY, COME ON DOWN.

>> I DIDN'T EVEN KNOW THE PROPER PROCEDURE FOR DOCUMENTATION. IS THERE A WAY

THAT I COULD DROP THOSE? >> SURE. IF YOU'LL GIVE THEM TO THE CITY SECRETARY, SHE'LL PASS THEM OUT. AND THEN WHENEVER YOU'RE READY, YOU JUST STATE YOUR NAME AND YOUR TIME WILL

BEGIN. YOU'LL HAVE FOUR MINUTES. >> MY NAME IS JUDAH EMANUEL O'NEIL. I WANT THE COW PASTURE BACK, AND THEY HAVE TO STOP MAKING MORE APPOINTMENTS IN DENTON.

>> DO YOU WANT TO READ YOUR LETTER? >> I HAVE A LETTER HERE.

>> RIGHT HERE. >> DO YOU? CITY COUNCIL. I WANT THE COW PASTURE BACK BECAUSE I MISS SEEING IT IN IT. IT I LIVE IF IF I'M ON LOCUST STREET ACROSS FROM IVAR'S PARK AND I WANT AN TO TO LIVE NEAR A PARK. LUKE AND AND AND AND I, I, I WANT TO, TO LIVE NEAR A

[04:15:20]

NEIGHBORHOOD HOOD. HOOD, HOOD AND AND A FARM. I'M. I'M A IN THE COW PASTURE. AND AND.

>> I WANT. >> I WANT TO TO LIVE NEAR YOU. I, I. OR I DON'T WANT, I WANT TO LIVE NEAR YOUR THESE NEW APARTMENTS. OH, PLEASE DO, DO I JUST ALWAYS HEAR.

>> OH DO YOU WANT DO YOU WANT TO READ ALL THIS. YOU HAVE TWO MINUTES.

>> YEAH. NO, NO. >> IT'S OKAY, IT'S FINE. YOU'RE FINE. HOW ABOUT THIS? START

HERE. I'VE ALWAYS. >> I'VE ALWAYS. I LIVED IN AN APARTMENT AND. I. FOR FOR MY WHOLE FOR MY LIFE. AND AND I DESPERATELY WANT I WANT TO LIVE IN A HOUSE BECAUSE AS AS YOU WERE. I JUST SPILLING MORE AND MORE OF OR, OR, OR APARTMENTS. AND I HOPE, I HOPE MY MOM AND DAD HAD A CAN BUY A HOUSE AND AND, AND I CAN, I CAN PICK ONE AND AND, AND, AND, AND IN A NEIGHBORHOOD BECAUSE AS, AS THE THE REASON IS BECAUSE I WANT AN, A, A HUGE, A A, A BACKYARD, THE PLAY A, A BUNCH OF STUFF OF LIKE FRISBEE, MINI GOLF OUTSIDE BOARD GAMES, GAMES. I WANT YOU TO, TO, TO CONSIDER IT. IT'LL A MORE OR HOUSE HOUSES IS IS INSTEAD AND AND MAKING MAKING A A A A A A A LOT MORE APARTMENTS AND AND AND AND TAKING AWAY A A THE COWS. PLEASE PUT IT IN IS A BRINGING BACK THOSE, THOSE COWS AND AND AND AND THE LONGHORN WENT TO. OH THANK THANK YOU, I

LOVE YOU, YOU, I NEED YOU TO DO THAT. JUDAH. >> THANK YOU. OKAY. WE HAVE A COUPLE OF QUESTIONS. MAYOR PRO TEM, DID YOU HAVE A COMMENT OR QUESTION?

>> JUDAH, I WANT TO THANK YOU FOR COMING UP HERE TO SPEAK. YOUR DAD EMAILED ME LAST NIGHT.

I THINK HE EMAILED ALL OF US. IT WAS REAL LATE. IT WAS AROUND 11 P.M. AND TALKING ABOUT THIS ISSUE. AND I JUST WANTED TO SAY, IT'S REALLY BRAVE THAT YOU CAME UP HERE BECAUSE I DON'T THINK I COULD DO IT. I'D BE VERY SCARED. AND THE THE TOPIC THAT YOU BROUGHT UP IS REALLY IMPORTANT BECAUSE I THINK WE HAVE BUILT A LOT OF APARTMENTS. I WANTED TO POINT OUT, I TOLD YOUR DAD THIS LAST NIGHT, THAT GUY IN THE MIDDLE OF THE ROOM A FEW WEEKS AGO, HE CAME UP WITH AN IDEA OF, OF TAKING A, A PAUSE TO STOP THEM FOR A LITTLE BIT. AND THAT'S ONE OF MANY GOOD IDEAS WE HAVE TO, TO WORK ON THIS PROBLEM. SO I JUST WANTED TO THANK YOU VERY MUCH FOR

BRINGING THIS UP TO US. >> THANK YOU. >> THANK YOU, THANK YOU. AND I WANT TO REMIND THE COUNCIL MEMBERS THIS IS OPEN MIC. SO WE CAN ONLY STATE POSITION FACTUAL POSITIONS OR POSITIONS OF POLICY. SO I WANT TO MAKE SURE THAT WE WE IT'S ALL RIGHT.

COUNCIL MEMBER RUMOHR. >> SO NO THANKING THEM FOR BEING HERE.

>> OH NO. >> IS THAT OKAY? >> I'M SURE THAT'S FINE.

>> OKAY. JUDAH, I JUST WANTED TO SAY THANK YOU FOR BEING HERE. AND I HOPE THAT YOUR PARENTS

ARE ABLE TO BUY A HOUSE AT SOME POINT TO. >> COUNCIL MEMBER HOLLAND JUDAH.

[04:20:04]

>> HOW OLD ARE YOU, PAL? HOW OLD ARE YOU? >> I'M SIX YEARS OLD.

>> SIX. AND? AND WHERE DO YOU GO TO SCHOOL? >> I'M IN FIRST GRADE. AND AND

AND AND I GO TO EVOS. BUT FIRST I'M GOING TO USE YOU. >> YOU'VE GOT A BRAND NEW

TEACHER. WHO IS THAT? >> WHO'S YOUR TEACHER? >> MISS MCFARLAND AND MISS

GILMORE. >> ARE THEY NICE? SAY YES. YOU'RE YOU'RE A GOOD GUY.

YOU'RE A BRAVE GUY. THANK YOU FOR. COME. COME AGAIN. JUDAH. >> THANK YOU, THANK YOU.

>> DID YOU WITHDRAW? OH, YEAH. NO. GO AHEAD. YEAH. COUNCIL MEMBER PERRY, YOU WERE ON THERE.

>> THANK YOU SO MUCH, JUDAH, I APPRECIATE THIS. THIS IS THE BEST BIRTHDAY GIFT EVER.

YESTERDAY WAS MY BIRTHDAY AND THIS IS WHEN IT'S DATED. SO THANK YOU FOR YOUR LETTER.

THANK YOU. AND I SO APPRECIATE YOU. >> COUNCIL MEMBER CHESTER.

>> SO I HAVE A NEW RULE. IF THERE'S SOMEONE THAT'S SIX YEARS OLD THAT COMES AND TALKS, I TAKE PICTURES. AND THEN IF YOU ALL WOULD LIKE TO EMAIL ME, I'D BE HAPPY TO SEND YOU THE

PICTURE. IS THIS YOUR FIRST TIME TO SPEAK AT COUNCIL? >> YES.

>> WELL, I'M SO GLAD I GOT A COUPLE OF, I THINK, GOOD PHOTOS. SO IF YOU GUYS WILL CONTACT ME, MY NAME IS JILL AND I'LL SEND YOU THOSE PHOTOS. THANK YOU PHOTOS. THE PHOTOS I.

>> TOOK, PHOTOS OF YOU. >> OF YOU. >> WAIT, I, I DON'T REMEMBER

YOU TAKING. >> I KNOW I'M REALLY. I'M LIKE A NINJA. I'M LIKE A PHOTO NINJA.

>> THANK YOU FOR COMING. THANK YOU SO MUCH FOR COMING. AND THANK YOU FOR THAT. APPRECIATE THAT. THANK YOU, THANK YOU. ALL RIGHT. WE'LL MOVE ON NOW TO OUR CONSENT AGENDA. AND WE WILL BE

[3. CONSENT AGENDA]

PULLING CONSENT AGENDA. Q AND THAT WILL BE THAT'S FOR SEPARATE VOTE FOR AN ITEM FOR

INDIVIDUAL CONSIDERATION. SO COUNCIL MEMBER JESTER. >> MOVE THAT WE APPROVE THE

CONSENT AGENDA AS PRESENTED WITH THE EXCEPTION OF ITEM Q. >> MAYOR PRO TEM.

>> I SECOND THAT. >> ANY QUESTIONS? LET'S VOTE. MOTION CARRIES SIX ZERO. WE

[Q. ID 26-1228 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the approval of a third amendment to the “Memorandum of Understanding - the Environment” between the City of Denton and the University of North Texas, amending the Memorandum of Understanding approved by City Council on May 13, 2003, in the not-to-exceed amount of $30,000.00 per project; said third amendment to the “Memorandum of Understanding - the Environment” will extend the effective date, which provides for extension of the terms of said agreement, until September 30, 2031; providing for the expenditure of funds therefor; and providing an effective date.]

WILL NOW MOVE ON TO AGENDA ITEM Q FOR AN ITEM FOR INDIVIDUAL CONSIDERATION IS ID 26-1228.

CONSIDER ADOPTION OF AN ORDINANCE OF THE CITY OF DENTON, TEXAS, A MUNICIPAL CORPORATION AUTHORIZING THE APPROVAL OF A THIRD AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING THE ENVIRONMENT BETWEEN THE CITY OF DENTON AND THE UNIVERSITY OF NORTH TEXAS. I DON'T BELIEVE WE HAVE A STAFF PRESENTATION ON THIS. I THINK COUNCIL MEMBER MOORE RECUSED. THAT'S WHY WE HAD TO PULL IT OFF ONTO THE ITEMS FOR INDIVIDUAL CONSIDERATION. SO COUNCIL

MEMBER JESTER. >> MOVE APPROVAL AS PRESENTED. >> MAYOR PRO TEM SECOND. ALL RIGHT. SEE NO SPEAKERS REQUESTING. LET'S VOTE ON THE BOARD PLEASE. MOTION CARRIES FIVE ZERO. ALL RIGHT. AND WE CAN THANK YOU. NOW WE'LL MOVE ON TO AGENDA ITEM FOUR WHICH IS

[A. A26-0005 Consider adoption of an ordinance of the City of Denton, Texas regarding a Municipal Services Agreement, pursuant to Tex. Loc. Govt. Code Sec. 43.0672, between the City of Denton and Jay Edwin West for the provision of city services to approximately 3.27 acres of land, generally located on the north side of Ganzer Road, approximately 2,497 feet north and east of Chinn Road; approving a schedule of annexation; authorizing the City Manager to execute the agreement; and providing an effective date. (A26-0005, West Annexation, Ashley Ekstedt)]

ITEMS FOR INDIVIDUAL CONSIDERATION. EXCUSE ME. AGENDA ITEM A A 26-0005.

CONSIDER ADOPTION OF ORDINANCE OF THE CITY OF DENTON, TEXAS REGARDING MUNICIPAL SERVICES AGREEMENT PURSUANT TO TEXAS LOCAL GOVERNMENT CODE, SECTION FOUR, 43.0672 BETWEEN THE CITY OF DENTON AND J. EDWIN WEST FOR THE PROVISIONS OF CITY SERVICES TO APPROXIMATELY 3.27 ACRES OF

LAND GENERALLY LOCATED NORTH SIDE OF THE ROAD IN DENTON. >> GOOD EVENING MAYOR. MEMBERS OF COUNCIL. ASHLEY EICHSTEDT, ASSOCIATE PLANNER. THIS IS A 265. THE MUNICIPAL SERVICES AGREEMENT FOR THE WEST ANNEXATION. THE REQUEST IS TO CONSIDER THE ADOPTION OF AN ORDINANCE APPROVING A MUNICIPAL SERVICES AGREEMENT FOR APPROXIMATELY 3.27 ACRES OF LAND GENERALLY LOCATED ON THE NORTH SIDE OF GANZER ROAD, APPROXIMATELY 2497FT NORTH AND EAST OF CHINN ROAD, AND IT IS ALSO APPROVING A SCHEDULE OF ANNEXATION. THE PROPERTY OWNER PREVIOUSLY HAD AN ANNEXATION AGREEMENT THAT EXPIRED IN AUGUST OF 2020, AND A NEW AGREEMENT HAS NOT BEEN SIGNED. THE PROPERTY IS CURRENTLY UNDEVELOPED. THE MUNICIPAL SERVICES AGREEMENT OUTLINES ALL THE SERVICES THAT THE CITY WILL PROVIDE TO THE ANNEXED AREA, AND ALL OF THESE DEPARTMENTS HAVE ALSO REVIEWED THIS AGREEMENT, PER THE ANNEXATION SCHEDULE. THIS IS THE FIRST OF FOUR ITEMS THAT WE WILL COVER TONIGHT, AND ACTION IS REQUIRED ON THIS ITEM. ON AUGUST 22ND, WE WILL PUBLISH THE ORDINANCE IN THE NEWSPAPER AND ON OCTOBER 13TH, THE SECOND READING AND ADOPTION OF THE ANNEXATION ORDINANCE WILL BE BACK BEFORE

THIS BODY. HAPPY TO ANSWER ANY QUESTIONS. >> COUNCIL MEMBER MOORE.

>> JUST ONE QUESTION. WAS THAT LAST LETTER, WAS THAT A CERTIFIED MAIL?

>> YES IT WAS. >> OKAY. THAT'S ALL I HAVE. THANK YOU.

>> ANY OTHER QUESTIONS? COUNCIL MEMBER MOORE. >> I'D LIKE TO MOTION TO

[04:25:02]

APPROVE. >> COUNCILMEMBER JESTER SECOND. WE HAVE MOTION SECOND. ANY QUESTIONS? ALL RIGHT. LET'S VOTE PLEASE. MOTION CARRIES SIX ZERO. ALL RIGHT. WE'LL MOVE ON

[B. A26-0005a Consider adoption of an ordinance of the City of Denton, Texas regarding the issuance of a Services Agreement, pursuant to Tex. Loc. Gov. Code Sec. 43.056, for property owned by Jay Edwin West for the provision of city services to approximately 3.27 acres of land, generally located on the north side of Ganzer Road, approximately 2,497 feet north and east of Chinn Road; authorizing the City Manager to execute the Plan; and providing an effective date. (A26-0005a, West Annexation, Ashley Ekstedt)]

TO AGENDA ITEM FOUR B WHICH IS A 26-0005A. CONSIDER ADOPTION OF AN ORDINANCE OF THE CITY OF DENTON, TEXAS REGARDING THE ISSUANCE OF A SERVICE AGREEMENT PURSUANT TO TEXAS LOCAL GOVERNMENT CODE SECTION 43.056 FOR PROPERTY OWNED BY J. EDWIN WEST FOR THE PROVISIONS OF CITY SERVICES TO APPROXIMATELY 3.27 ACRES OF LAND GENERALLY LOCATED ON THE NORTH SIDE OF GANZER

ROAD. >> MAYOR. MEMBERS OF COUNCIL. ASHLEY. ASSOCIATE PLANNER. THIS IS A 265 THE WEST ANNEXATION SERVICE PLAN. THE REQUEST IS TO CONSIDER ADOPTION OF AN ORDINANCE APPROVING A SERVICE PLAN FOR APPROXIMATELY 3.27 ACRES OF LAND. THE CITY IS TAKING THIS ACTION TO ISSUE THE SERVICE PLAN TO EXPLAIN THE PROCESS BY WHICH THE FULL MUNICIPAL SERVICES WILL BE PROVIDED TO THE PROPERTY SERVICE PLAN OUTLINES ALL OF THE SERVICES THAT WILL BE PROVIDED, AND ALL THESE DEPARTMENTS HAVE REVIEWED THE SERVICE PLAN. HAPPY TO ANSWER ANY QUESTIONS AND ACTION IS REQUIRED ON THIS ITEM.

>> COUNCILMEMBER MOORE. >> I'D LIKE TO MOTION APPROVAL. >> COUNCILMEMBER FERRY.

>> I SECOND. >> THE MOTION A SECOND. ANY QUESTIONS? SEEING NONE. LET'S VOTE. MOTION CARRIES SIX ZERO. ALL RIGHT. WE'LL MOVE ON NOW TO AGENDA ITEM NUMBER FIVE PUBLIC

[A. A26-0005b Hold a public hearing and consider a petition for voluntary annexation of approximately 3.27 acres of land, generally located on the north side of Ganzer Road, approximately 2,497 feet north and east of Chinn Road; into the City of Denton, Denton County, Texas. (A26-0005b, West Annexation, Ashley Ekstedt)]

HEARINGS A A 26-0050005B. YES. AND NO ACTION IS REQUIRED ON THIS. I BELIEVE THIS IS JUST A

PUBLIC HEARING. SO GO AHEAD. >> THIS IS A 265 THE WEST ANNEXATION PUBLIC HEARING. THE REQUEST IS TO HOLD A PUBLIC HEARING REGARDING A PETITION FOR VOLUNTARY ANNEXATION OF APPROXIMATELY 3.27 ACRES OF LAND LOCATED ON THE NORTH SIDE OF GANZER ROAD. THE MAP ON THE LEFT SHOWS THE EXISTING SURROUNDING ZONING, AND THE MAP ON THE RIGHT SHOWS THE FUTURE LAND USE DESIGNATION OF AGRICULTURE FOLLOWING THE ANNEXATION SCHEDULE. THIS IS THE THIRD OF FOUR ITEMS THAT WE WILL SEE TONIGHT, AND NO ACTION IS REQUIRED ON THIS ITEM. HAPPY

TO ANSWER ANY QUESTIONS. >> ANY QUESTIONS BEFORE WE OPEN THE PUBLIC HEARING? SEEING NONE, I WILL NOW OPEN THE PUBLIC HEARING. THIS IS A PUBLIC HEARING. ANYBODY WISHING TO SPEAK ON THIS ITEM, PLEASE COME DOWN AND STATE YOUR NAME AND ADDRESS. AND THEN IF YOU WOULD FILL OUT A BLUE CARD AS WELL ON YOUR WAY OUT, ANYBODY WISHING TO SPEAK ON THIS ITEM. SEEING NONE, WE WILL CLOSE THE PUBLIC HEARING. WE'LL GO ON TO AGENDA ITEM SIX, WHICH IS AGAIN ITEMS

[A. ID 26-0561 Consider approval of a resolution of the City Council of the City of Denton, Texas placing a proposal on the September 22, 2026 City Council public meeting agenda to adopt a 2026 Tax Rate that will exceed the lower of the no-new-revenue tax rate or the voter approval tax rate; calling a public hearing on the proposed tax rate which will result in an increase in tax revenue to the City for fiscal year 2026-27, to be held on September 15, 2026; calling a public hearing on the budget for the fiscal year 2026-27 Annual Program of Services of the City of Denton to be held on September 15, 2026; requiring the publication and posting of notices of the public hearings and meetings in accordance with the law; and providing an effective date.]

FOR INDIVIDUAL CONSIDERATION. SIX A I'D 26-0561 CONSIDER APPROVAL OF A RESOLUTION OF THE CITY OF DENTON, TEXAS, PLACING A PROPOSAL ON THE SEPTEMBER 22ND, 2026 CITY COUNCIL PUBLIC MEETING AGENDA TO ADOPT A 2026 TAX RATE. TAX RATE. EXCUSE ME. THAT WILL EXCEED THE LOWER OF THE NO NON NO NEW REVENUE TAX RATE OR THE VOTER APPROVAL TAX RATE.

>> GOOD EVENING, MAYOR AND COUNCIL. AMY CATHOLIC CHIEF STRATEGIC OFFICER I'M HERE TONIGHT TO PRESENT THE INTENT TO SET A TAX RATE. THIS IS A STATE REQUIRED RESOLUTION THAT SERVES TWO PURPOSES. TO SET THE MAXIMUM PROPOSED TAX RATE AND TO PLACE A PUBLIC HEARING ON THE AGENDA TO SET THE TAX RATE. AS WE DISCUSSED AT THE AUGUST 8TH WORKSHOP, CERTIFIED VALUES

FOR. IT'D BE GOOD IF I SHOW YOU THE PRESENTATION. >> THAT'S OKAY. YEAH. YES. YEAH.

>> I WAS WONDERING WHY YOU WERE LOOKING AT ME. I'M LIKE, WHAT? OKAY. SO SORRY.

>> WELL, IT WAS UP THERE AND THEN IT DISAPPEARED. >> SO DID IT. YEAH.

>> OKAY. LET'S GO AGAIN. ALL RIGHT. OKAY. SO AGAIN, WE DISCUSSED AT THE AUGUST 8TH WORKSHOP CERTIFIED VALUES FOR THE 2026 TAX YEAR CAME IN AT $26.7 BILLION, AN INCREASE OF 17.5% COMPARED TO 2025. SO SLIGHT CORRECTION ON THAT SLIDE. THAT IS COMPARED TO 2025, NEARLY $4 BILLION IN INCREASE INCLUDES A 1.9 BILLION INCREASE IN NEW VALUE AND A NEARLY 2.1 BILLION INCREASE IN A CHANGE IN EXISTING VALUES. NEARLY ALL OF THE INCREASED VALUE IS DUE.

AGAIN, WHETHER NEW OR EXISTING IS DUE TO INCREASE IN BUSINESS PERSONAL PROPERTY, THE AVERAGE HOME VALUE DECREASED FROM 386,000 TO 382,000. SO LOOKING AT THE TAX RATE, THE NO NEW REVENUE TAX RATE IS 0.515958. THIS RATE IS CALCULATED THROUGH THE TRUTH AND TAXATION PROCESS AND SHOWS WHAT OUR RATE WOULD BE IF WE COLLECTED THE SAME AMOUNT OF REVENUE USING THE SAME PROPERTIES ON THE TAX ROLL LAST YEAR. IN THE CURRENT YEAR, THE VOTER APPROVAL RATE IS

[04:30:04]

0.553485. IT IS THE MAXIMUM RATE ALLOWED TO BE ADOPTED WITHOUT TRIGGERING AN ELECTION.

THE CITY MANAGER'S PROPOSED BUDGET INCLUDES A RATE OF 0.548485, WHICH IS HIGHER THAN THE NO NEW REVENUE RATE, BUT LOWER THAN THE VOTER APPROVAL RATE. SO IN ORDER TO PROVIDE YOU WITH FLEXIBILITY IN THE RATE DECISION AND IN THE BUDGET PROCESS, WE ARE PROPOSING A MAXIMUM TAX RATE OF 0.553485. WE WILL BE BACK ON SEPTEMBER 22ND FOR THE BUDGET AND TAX RATE ADOPTION. AT THAT TIME, YOU WILL ADOPT A RATE THAT IS EQUAL TO OR LESS THAN THE MAXIMUM RATE THAT YOU SET TONIGHT. SO PUBLIC HEARINGS ARE SET FOR SEPTEMBER 15TH. AGAIN, WE DID NOT UPDATE THE DATE ON THAT. WHEN I APOLOGIZE, THAT WOULD BE 2026. THE TAX RATE HEARING IS REQUIRED IF THE MAXIMUM TAX RATE EXCEEDS THE NO NEW REVENUE RATE OR THE VOTER APPROVAL RATE. IN THIS CASE, THE PROPOSED TAX RATE WOULD EXCEED THE NO NEW REVENUE RATE.

SO AT THE HEARING, RESIDENTS WILL HAVE THE OPPORTUNITY TO PROVIDE INPUT ON BOTH THE TAX RATE AND THE BUDGET. AGAIN, HERE IS THE SCHEDULE MOVING FORWARD WITH THOSE HEARINGS SET

FOR SEPTEMBER 15TH AND THEN ADOPTION SET FOR SEPTEMBER 22ND. >> MADAM CITY MANAGER, DO.

>> YOU. >> HAVE SOME COMMENTS? >> I JUST WANTED TO MAKE EVERYONE AWARE THAT WE ARE PROPOSING TO LOWER THE TAX RATE BY $0.05. WE DIDN'T HAVE THE EXISTING TAX RATE ON THE SLIDE, BUT IT WILL BE $0.05 LOWER THAN THE CURRENT TAX RATE.

>> OKAY. ANY IS THIS A THIS IS ACTION RIGHT. WE NEED TO VOTE ON THESE THESE MAXIMUM RATES.

YES. COUNCIL MEMBER PERRY. >> THANK YOU, MADAM INTERIM CITY MANAGER FOR SAYING THAT BECAUSE THAT WAS SOMETHING I WANTED TO MAKE SURE WE SAID OUT LOUD. I THINK THAT'S REALLY IMPORTANT AND IT SPEAKS A LOT TO STAFF'S WORK. I'M REALLY GRATEFUL TO TO MOTION TO

APPROVE THIS. >> OKAY. >> MAYOR PRO TEM.

>> YEAH, I HAPPILY SECOND. >> ANY QUESTIONS OR COMMENTS? ALL RIGHT, LET'S VOTE. PLEASE.

MOTION CARRIES SIX ZERO. ALL RIGHT. WE'LL GO ON TO AGENDA ITEM SIX. BA26-0005C. CONDUCT

[B. A26-0005c Conduct the first of two readings of an ordinance of the City of Denton, Texas annexing approximately 3.27 acres of land, generally located on the north side of Ganzer Road, approximately 2,497 feet north and east of Chinn Road, into the City of Denton, Denton County, Texas; providing for a correction to the City map to include the annexed land; and providing for a savings clause and an effective date. (A26-0005c, West Annexation, Ashley Ekstedt)]

THE FIRST OF TWO READINGS OF AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AND ASKING APPROXIMATELY 3.27 ACRES OF LAND GENERALLY LOCATED ON THE NORTH SIDE OF GANZER ROAD, APPROXIMATELY 2497FT NORTH AND EAST OF CHINN ROAD. AND MR. CITY ATTORNEY, IS THIS WE TAKE ACTION ON THIS ONE? NO, THIS IS JUST SIMPLY A JUST A PRESENTATION, JUST A READING. OKAY.

>> ASSOCIATE PLANNER, THIS IS AYE'S 265 C THE FIRST READING FOR THE WEST ANNEXATION. THE REQUEST IS TO CONDUCT THE FIRST OF TWO READINGS OF AN ORDINANCE OF THE CITY OF DENTON TO ANNEX APPROXIMATELY 3.27 ACRES OF LAND LOCATED ON THE NORTH SIDE OF GANZER ROAD. AS STATED PREVIOUSLY, THE ANNEXATION AGREEMENT FOR THIS PROPERTY HAS EXPIRED AND A NEW AGREEMENT HAS NOT BEEN SIGNED. THIS IS THE FOURTH AND FINAL ITEM FOR TONIGHT AND NO ACTION IS REQUIRED. I'LL NOW READ THE CAPTION INTO THE RECORD. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, ANNEXING APPROXIMATELY 3.27 ACRES OF LAND GENERALLY LOCATED ON THE NORTH SIDE OF GANZER ROAD, APPROXIMATELY 2497FT NORTH AND EAST OF CHINN ROAD INTO THE CITY OF DENTON.

DENTON COUNTY, TEXAS, PROVIDING FOR A CORRECTION TO THE CITY MAP TO INCLUDE THE ANNEXED LAND AND PROVIDING FOR A SAVINGS CLAUSE AND AN EFFECTIVE DATE. HAPPY TO ANSWER ANY QUESTIONS.

>> COUNCILMEMBER HOLLAND. >> THANK YOU. IT'S OBVIOUSLY NO COINCIDENCE THAT THESE ARE THE.

THESE FOLLOW ITEMS FOUR AND FIVE. THIS PROPERTY IS CONTIGUOUS TO TO CITY PROPERTY.

>> YES IT IS. THANK YOU. >> ANYONE ELSE? OKAY, SO THAT CONCLUDES THIS ITEM. IT WAS

[C. ID 26-1287 Consider approval of a resolution of the City of Denton regarding a moratorium on the acceptance, processing, and approval of applications for the development of data centers within the corporate limits of the City of Denton and approving a schedule for required notice and public hearings for such moratorium; providing for severability; and providing an effective date.]

READ AND NO ACTION IS REQUIRED. THANK YOU. AGENDA ITEM SIX C IS I'D 26-1287 WHICH IS. CONSIDER APPROVAL OF A RESOLUTION OF THE CITY OF DENTON REGARDING A MORATORIUM ON THE ACCEPTANCE, PROCESSING AND APPROVAL OF APPLICATIONS FOR THE DEVELOPMENT OF DATA CENTERS WITHIN THE CORPORATE LIMITS OF THE CITY OF DENTON, AND APPROVING A SCHEDULE FOR

REQUIRED NOTICE AND PUBLIC HEARINGS FOR SUCH MORATORIUM. >> GOOD EVENING, MAYOR AND CITY COUNCIL CHARLIE ROSENTHAL, DIRECTOR OF DEVELOPMENT SERVICES. THE ITEM BEFORE YOU TODAY IS A RESOLUTION ADOPTING THE PUBLIC HEARING SCHEDULE FOR THE MORATORIUM ON DATA CENTERS.

FOR SOME BACKGROUND, THIS WAS A STARTED AS A TWO MINUTE PITCH IN MAY. IT WENT TO I. SR IN

[04:35:02]

JUNE AND CITY COUNCIL HELD A WORK SESSION ON AUGUST 4TH AND DIRECTED STAFF TO MOVE FORWARD WITH BOTH DEVELOPMENT CODE AMENDMENTS, AS WELL AS START THE PROCESS FOR MORATORIUM, WHICH. THIS WAS THE FIRST STEP, JUST SOME BACKGROUND ON MORATORIUMS IN TEXAS. THEY'RE A TEMPORARY PAUSE ON NEW ACCEPTING OR PROCESSING NEW DEVELOPMENT APPLICATIONS. THEY CAN'T HALT EXISTING APPLICATIONS THAT ARE ALREADY VESTED. AND THEY WOULD THEY NEED TO BE LIMITED IN GEOGRAPHIC AREA. THERE'S THREE WAYS THAT WE CAN ISSUE A MORATORIUM. IT'S FOR A SHORTAGE OF PUBLIC FACILITIES. THAT'S EITHER WATER, SEWER, DRAINAGE OR STREETS, OR A SIGNIFICANT NEED FOR OTHER PUBLIC FACILITIES, WHICH COULD INCLUDE POLICE, FIRE OR ELECTRIC, AND SPECIFICALLY FOR COMMERCIAL DEVELOPMENTS. IT COULD BE A MORATORIUM FOR THE NEED TO UPDATE THE LAND DEVELOPMENT ORDINANCES. THIS WOULD NOT APPLY TO PROPERTY THAT'S ZONED HEAVY INDUSTRIAL. FOR REQUIREMENTS OF IMPOSING A MORATORIUM, WE HAVE TO GO THROUGH THE PUBLIC HEARING PROCESS, AND THEN WE HAVE TO SUBMIT WRITTEN FINDINGS THAT ARE THE LEGAL BASIS FOR THAT MORATORIUM. HERE IS THE PROPOSED PROCESS FOR THE MORATORIUM. WE WOULD HAVE THIS RESOLUTION TODAY PUBLISH NOTICE IN THE PAPER THIS WEEKEND, AND THEN HOLD THE FIRST PUBLIC HEARING ON SEPTEMBER 22ND, AND THE SECOND PUBLIC HEARING AND FIRST READING OF THE ORDINANCE ON OCTOBER 22ND, WITH THE FINAL READING AND OR THE SECOND READING AND CONSIDERATION BY CITY COUNCIL ON DECEMBER 2ND, WHICH WOULD REQUIRE A SUPERMAJORITY VOTE TO ADOPT. HERE'S THE TIMELINE FOR THE DDC AMENDMENTS. THE DEVELOPMENT CODE AMENDMENTS. THEY'LL BE DISCUSSED WITH DEVELOPMENT CODE REVIEW COMMITTEE ON AUGUST 24TH. WE'LL ISSUE THE NOTICE ON SEPTEMBER 12TH. P AND Z ARE.

PLANNING AND ZONING COMMISSION WILL HOLD ITS FIRST PUBLIC HEARING ON SEPTEMBER 23RD, AND THEN CITY COUNCIL WILL CONSIDER THOSE AMENDMENTS ON OCTOBER 13TH TO BE EFFECTIVE ON OCTOBER 27TH. SO AGAIN, THIS ITEM BEFORE YOU TODAY JUST SETS THE TWO PUBLIC HEARING DATES OF SEPTEMBER 22ND AND OCTOBER 27TH FOR THE MORATORIUM PUBLIC HEARINGS. AND I'LL TAKE ANY

QUESTIONS. >> ANY QUESTIONS FOR STAFF? >> COUNCILMEMBER RUMOHR.

>> CHARLIE, SINCE IT WASN'T EXPLICITLY ON THE SLIDES, CAN YOU REMIND US, I GUESS, ONE, THE EARLIEST THE MORATORIUM COULD TAKE EFFECT AND THEN HOW LONG CAN THESE TEMPORARY PAUSES

GO? >> SO IT WOULD BE EFFECTIVE AFTER THE SECOND PUBLIC HEARING.

SO WOULD START ON DECEMBER 2ND. THE INITIAL PORTION WOULD BE FOR 90 DAYS. AND WE COULD GO THROUGH ANOTHER PUBLIC HEARING PROCESS TO PROVIDE ADDITIONAL JUSTIFICATION TO EXTEND THAT AN ADDITIONAL 90 DAYS. BUT THE MAXIMUM THAT WE COULD IMPLEMENT A MORATORIUM WOULD BE FOR 180

DAYS. >> OKAY. SO IT'S THREE, THREE MONTHS MINIMUM IF YOU PASS ONE

AND THEN UP TO SIX MONTHS TOTAL. CORRECT. OKAY. THANK YOU. >> COUNCIL MEMBER HOLLAND.

>> SO SO WHAT WHAT DETERMINES THREE, THREE MONTHS, SIX MONTHS. >> SO THE MAXIMUM INITIAL MORATORIUM CAN BE IS FOR THREE MONTHS. IT WOULD BE UP TO CITY COUNCIL. AT THAT POINT. WE COULD EXTEND IT FOR AN ADDITIONAL THREE MONTHS WITH ANOTHER PUBLIC HEARING AND

ADDITIONAL FINDINGS. >> SO IT'S ACTUALLY TWO THREE. CORRECT. I SEE YEAH. WHICH WHICH WOULD MAKE IT JUNE 27TH ISH IF IT IF IT WENT TO SIX MONTHS.

>> YEAH. SOMEWHERE AROUND THERE. >> OKAY. OKAY. THANK YOU. >> COUNCILMEMBER JESTER.

>> I DON'T HAVE A QUESTION, BUT I JUST WANTED TO MAKE A COMMENT INITIALLY DURING THE TWO MINUTE PITCH WHEN THIS WAS PROPOSED, AS WELL AS SOME OTHER PROPOSALS REGARDING ADDRESSING POTENTIAL DAMAGES FROM DATA CENTERS, I MOVED FORWARD WITH ALL OF THE OTHER ITEMS FOR POTENTIAL SAFEGUARDING OF OUR RESOURCES AND COMMUNITY, EXCEPT FOR THE MORATORIUM PART, BECAUSE I BELIEVE THAT IT WAS DUPLICATIVE WITH THE ANNOUNCED STATE MORATORIUM. I HOPE IT'S ALL RIGHT TO SAY I MET WITH MAYOR PRO TEM, AND HE EXPLAINED THAT THE DIFFERENCE BETWEEN WHAT THIS WOULD DO VERSUS THE STATE ANNOUNCED MORATORIUM, AND THAT IS WHY I HAVE WHY I'VE SECONDED AND AM VOTING IN FAVOR AND JUST WANTED TO STATE WHY THAT, WHY THAT CHANGE WAS.

>> THANK YOU, THANK YOU. >> SEEING NO QUESTIONS OR REQUEST TO SPEAK, MAYOR PRO TEM.

>> THANK YOU I MOVE APPROVAL. >> COUNCIL MEMBER. JESTER. >> SECOND. ALL RIGHT.

>> SECOND. >> WE HAVE A MOTION AND A SECOND. LET'S VOTE PLEASE.

[D. ID 26-1219 Consider adoption of an ordinance of the City Council of the City of Denton, a Texas home-rule municipal corporation, approving a negotiated settlement between the Atmos Cities Steering Committee (“ACSC”) and Atmos Energy Corp., Mid-Tex Division regarding the company’s 2026 rate review mechanism filing; declaring existing rates to be unreasonable; adopting tariffs that reflect rate adjustments consistent with the negotiated settlement; finding the rates to be set by the attached settlement tariffs to be just and reasonable and in the public interest; approving an attachment establishing a benchmark for pensions and retiree medical benefits; requiring the company to reimburse ACSC’s reasonable ratemaking expenses; determining that this ordinance was passed in accordance with the requirements of the Texas Open Meetings Act; adopting a savings clause; declaring an effective date; ratifying and authorizing City membership in ACSC; and requiring delivery of this ordinance to the company and the ACSC’s legal counsel.]

[04:40:10]

MOTION PASSED SIX ZERO. ALL RIGHT. THE NEXT AGENDA ITEM IS AGENDA ITEM SIX D, WHICH IS CONSIDERED ADOPTION OF AN ORDINANCE OF THE CITY OF DENTON, OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS. HOME RULE MUNICIPAL CORPORATION MOVING A NEGOTIATED SETTLEMENT BETWEEN THE ATMOS CITY STEERING COMMITTEE AND ATMOS ENERGY CORP.

>> GOOD EVENING, MAYOR, MEMBERS OF COUNCIL. MATT HAMILTON, CHIEF FINANCIAL OFFICER, HERE TO PROVIDE SOME DETAILS OF THE ATMOS RATE SETTLEMENT. SO FIRST, SOME BACKGROUND. DENTON IS A MEMBER OF THE ATMOS CITY STEERING COMMITTEE. THE A, C C THE STEERING COMMITTEE IS A 181 MEMBER COALITION OF CITIES IN THE STATE OF TEXAS AND REPRESENTS OVER A MILLION ATMOS CUSTOMERS. ATMOS HAS APPROXIMATELY 25000 ACCOUNTS WITHIN THE CITY OF DENTON. THE.

THE PURPOSE OF THE COMMITTEE IS TO REVIEW AND VALIDATE RATE PROPOSALS BY ATMOS GAS. BECAUSE ATMOS HAS A MONOPOLY, TYPICALLY WITHIN MUNICIPALITIES, THIS COALITION ALLOWS CITIES NEGOTIATING POWER WHEN. WHEN RATES ARE PROPOSED. AND SO WHAT HAS BEEN DEVELOPED THROUGH A SETTLEMENT ALMOST 20 YEARS AGO WAS SOMETHING CALLED THE RATE REVIEW MECHANISM, OR THE RR M, AND THIS PROCESS HAS GENERATED SIGNIFICANT COST SAVINGS FOR THE MEMBER CITIES OF THE A, C S.

SO ATMOS DID MAKE A FILING TO INCREASE RATES. THE INITIAL RATE OR AMOUNT THAT THEY WERE REQUESTING, BASED ON A 2025 COST OF SERVICE STUDY, WAS AN INCREASE OF 291.1 MILLION, AND THAT IS SYSTEM WIDE, NOT JUST FOR FOR THE CITY OF DENTON. DUE TO THE RR M PROCEDURES THAT HAVE BEEN ESTABLISHED, THAT AMOUNT WAS REDUCED TO 273.6 MILLION, AGAIN BEING SYSTEM WIDE. AT THAT POINT THE A CSC REVIEWED WHAT ATMOS WAS PROPOSING, DID DUE DILIGENCE AND AND EVALUATED THE SUPPORTING DOCUMENTATION, AND ESSENTIALLY CAME TO THE CONCLUSION THAT 253.4 MILLION WAS MORE APPROPRIATE AT THAT POINT, THE A, C, S, C, AND ATMOS ENDED UP NEGOTIATING A FINAL SETTLEMENT OF 260.5 MILLION. SO AT THE END OF THE DAY, THE A C S AND THE THROUGH THE REM PROCESS SAVED ABOUT 30.6 MILLION FOR THE MEMBER CITIES. SO WITH THIS NEGOTIATED SETTLEMENT RATES WOULD BE EFFECTIVE OCTOBER 1ST. THE AVERAGE CUSTOMER IMPACT, EVEN WITH THESE SETTLEMENT SAVINGS ON THE RESIDENTIAL SIDE WILL BE 13.37 OR I'M SORRY, $13.37 OR A 14.15% INCREASE PER MONTH. AND ON THE COMMERCIAL SIDE, AN INCREASE OF $44.82 OR A 9.9% INCREASE PER MONTH. BECAUSE THE CITY RETAINS JURISDICTION OVER GAS RATES WITHIN THE CITY, AND APPROVAL OF THIS SETTLEMENT IS REQUIRED BY THE CITY COUNCIL.

SO NEXT STEPS WITH THIS ORDINANCE, IF APPROVED, THE RATES WOULD GO INTO EFFECT OCTOBER 1ST. IF DENIED. ATMOS HAS THE ABILITY TO APPEAL TO THE TEXAS RAILROAD COMMISSION.

AT THAT POINT, THE CITY WOULD BE RESPONSIBLE FOR THE EXPENSES ASSOCIATED WITH THOSE RRC PROCEEDINGS. THOSE WOULD NOT BE PAID BY THE BY THE STEERING COMMITTEE. THE RRC WILL ISSUE A FINAL DECISION THAT APPLIES ACROSS THE UTILITY SERVICE AREA, WHICH ENCOMPASSES THE CITY AND BASED ON CONVERSATIONS WITH COUNSEL AND CONSULTANTS, THAT THE LIKELIHOOD OF PREVAILING IN THE RC PROCEEDINGS IS LOW AND THAT THE CITY WOULD LIKELY END UP PAYING THE REQUESTED RATES.

SO WITH THAT, I'LL STAND FOR ANY QUESTIONS. >> THANK YOU.

>> CENSORING MYSELF. WE. ANYWAY, THAT'S A THAT'S A LARGE INCREASE.

>> YEAH. >> THAT'S A LARGE INCREASE. OKAY. COUNCIL MEMBER JESTER.

>> WELL, I APPRECIATE THE OTHER MATERIALS AND THE DISCUSSION THAT'S BEEN PROVIDED PRIOR TO TODAY'S PRESENTATION. AND I ALSO APPRECIATE WHERE THE NEGOTIATIONS STARTED VERSUS WHERE WE ENDED UP. SO THANK YOU FOR THE GOOD WORK. AND I MOVE APPROVAL AS PRESENTED. THANK

[04:45:04]

YOU SO MUCH. >> ALL RIGHT. MAYOR PRO TEM SECOND. COUNCILMEMBER HOLLAND, YOU WITHDREW YOUR REQUEST TO SPEAK. OKAY. ALL RIGHT, COUNCILMEMBER FERRY.

>> THANK YOU. SORRY, I WAS LOOKING AT MY BACKUP REAL QUICK. JUST A QUICK QUESTION WITH THE SETTLEMENT SAVINGS. AND THEN MATT, YOU MENTIONED THAT. DID I HEAR YOU RIGHT WHERE YOU SAID

THE CITY GETS TO SET RATES FOR GAS IN CITY LIMITS? >> SO THE YES, THE CITY STILL

RETAINS CONTROL OF SETTING RATES WITHIN OUR JURISDICTION. >> OKAY, SO JUST SO I UNDERSTAND, WITH THE NEGOTIATED SETTLEMENT, YOU SAID AVERAGE CUSTOMER IMPACT. THIS IS WHAT THE CITY OF DENTON IS PROPOSING TO CHARGE RESIDENTS. OR AM I MISTAKEN?

>> THIS THESE INCREASES ARE ACROSS THE ACROSS ATMOS SYSTEM WIDE. THOSE RATES ARE WHAT THE CITY OF DENTON. CUSTOMERS, ATMOS CUSTOMERS ON AVERAGE WOULD SEE AS AN INCREASE. AND THOSE INCREASES WERE PROVIDED TO US THROUGH THIS THROUGH THIS SETTLEMENT. SO THAT WAS

DETERMINED THROUGH THOSE NEGOTIATIONS. >> OKAY. I AGREE WITH THE MAYOR.

THEY'RE INCREDIBLY HIGH FOR FOR GAS. OKAY. >> THANKS.

>> THANK YOU, COUNCILMEMBER HOLLAND. >> I'M SORRY I'M VACILLATING BACK AND FORTH HERE. THESE GUYS, THESE GUYS HAVE ALL THE GAS. AND SO THEY KIND OF MAKE THE RULES. AND ISN'T THAT CORRECT? THEIR THEIR ORIGINAL REQUEST WAS 291 MIL. THE A C S I'VE NEVER HEARD OF THE A C S BY THE WAY. RECOMMENDED. 253 AND THEY ENDED UP AT 260. SO, SO THEY GOT A SIGNIFICANT INCREASE REGARDLESS. AND I'M JUST RATTLING. OKAY, I'LL PAY IT IF

IT BILL ME I'LL PAY IT. THANK YOU. >> THANK YOU. JUST FOR CLARIFICATION. AND CITY ATTORNEY MIGHT HELP ME OUT WITH THIS. SO IF I'M JUST ASKING FOR INFORMATION I'M NOT SAYING FOR OR AGAINST, IF THE CITY SAYS IT DIDN'T PASS IT, THEN THEY WOULD APPEAL THAT. AND IT'S MY UNDERSTANDING THAT THE CITY WOULD BEAR THE COSTS OF THAT

APPEAL. OR TELL ME WHAT, WHAT, WHAT WHAT IS THE CITY? >> YEAH. IF IF THE CITY CHOSE TO DEFEND ITS POSITION THAT THESE PROPOSED RATES WERE NOT JUSTIFIED, WE WOULD BEAR THE COST IN ORDER TO DEFEND THAT POSITION. SO. BUT WE WOULD NOT BE PAYING AN I'LL DEFER TO THE CITY ATTORNEY FOR ATMOS. COST IS MY UNDERSTANDING. IT WOULD JUST BE THE CITY'S SIDE.

>> OF THE. >> LEGAL FEES OR SOMETHING TO THAT EFFECT.

>> YEAH, YEAH. >> WE WOULD EFFECTIVELY BE REMOVED FROM THE APPEAL. AND NOW STANDING ON OUR OWN WITHOUT ALL THE OTHER CITIES, WITHOUT THE COMMITTEE. SURE.

>> AND WE WOULD MOST LIKELY, AND FROM WHAT YOU REPORTED, IT WOULD MOST LIKELY WIND UP BEING DECIDED WITH THE CLOSE TO THE SAME NUMBERS. IT COULD EVEN BE HIGHER NUMBERS THAN WHAT WHAT

HAS BEEN SETTLED WITH, AT LEAST FOR NOW? >> YEAH, I'M NOT 100% SURE, BUT REMOVING OURSELVES FROM THAT SETTLEMENT, I WOULD THINK WOULD POTENTIALLY.

>> I JUST WANT TO MAKE SURE THAT THE COMMUNITY UNDERSTANDS THE IMPLICATION OF THAT, THAT IT COULD IT COULD PUT US IN A WORSE POSITION. YEAH. COUNCILMEMBER HOLLAND.

>> I'M VERY SORRY. DOES ANYBODY KNOW WHO OUR REPRESENTATIVE IS ON THE A CSC?

>> I DON'T I DON'T KNOW THAT THERE'S A SPECIFIC PERSON. THE CITY HAS A A MEMBERSHIP IS MY

UNDERSTANDING, BUT NOT A SPECIFIC NOT A SPECIFIC PERSON. >> WAS THERE A BOARD MEETING OR A, OR A DINNER OR SOMETHING? EVERYBODY GOT TOGETHER AND SAID, HEY, LET'S, LET'S, LET'S TALK ABOUT RAISING RATES. AND I'M JUST, I'M, I'M, I'M NOT TRYING TO BE FLIPPANT. I JUST WONDER

IF IF SOMEBODY, SOMEBODY ATTENDED ON OUR BEHALF. >> NO, THERE'S IT'S NOT A BOARD IN THAT SENSE. IT'S A COALITION OF CITIES AND HAS A LAW FIRM THAT REPRESENTS ALL OTHER CITIES IN THE SETTLEMENT CASES THAT GOES OUT AND HIRES THE EXPERTS TO DO THE RATE STUDIES TO CHALLENGE THE BASIS. AND THEN THEY IT'S LLOYD GOSLIN, BECAUSE THE FIRM AND THEY REPRESENT ALL THE CITIES THAT ARE HAVE SIGNED UP TO BELONG TO THIS GROUP.

>> OKAY. THANK YOU. THANK YOU. >> ALL RIGHT. ANY OTHER QUESTIONS? WE HAVE A MOTION AND

[04:50:01]

A SECOND ON THE BOARD. AND I BELIEVE THEY'VE BEEN. OH, YES. COUNCIL MEMBER. I'M SORRY. GO

AHEAD. >> APOLOGIES. YEAH, I I'M ALSO SORRY TO VACILLATE SO MUCH. I WONDER IF THERE IS A DIFFERENT PROCESS THAT WE CAN. MY CONCERN IS THEY GO INTO EFFECT OCTOBER 1ST. THAT'S WHEN IT'S GOING TO GET. COLD. RATES ARE INCREASING BY $13 PER RESIDENT, $44 FOR COMMERCIAL, WHICH IS PROBABLY ON THE SMALLER END, WHICH MEANS IT'S A SMALL BUSINESS COST OF COMMERCIAL. I'M JUST I'M WONDERING WHAT A PROCESS COULD LOOK LIKE, HOW WE CAN BE MORE INVESTED, INVOLVED, HOW, WHETHER IT'S COUNSEL OR A REPRESENTATIVE, I'D LOVE TO HEAR, I'D LIKE TO SIT DOWN WITH YOU AND TALK ABOUT IT AND LEARN ALL THE THINGS ABOUT HOW THIS PROCESS COULD MAYBE GO DIFFERENTLY NEXT TIME. I APPRECIATE IT, AND MAYBE IT CAN'T, AND THAT'S OKAY TOO. THIS IS JUST A HUGE JUMP, RIGHT? I APPRECIATE YOUR TIME, MATT.

I'M REALLY SORRY TO GIVE YOU A HARD TIME. I DO APOLOGIZE. >> COUNCIL MEMBER JESTER.

>> JUST FOR EVERYONE'S INFORMATION AND FUN. ACCORDING TO THEIR WEBSITE, THEY HAVE OVER 100 150 CITIES THAT ARE INCLUDED IN THIS, AND THE GOVERNING BODY IS DECIDED. BY PASSAGE OF A RESOLUTION BY EACH GOVERNING BODY. SO I DON'T KNOW IF THAT'S SOMETHING THAT WE APPOINT EVERY SO MANY YEARS, BUT IT LOOKS LIKE THEY'RE THE ONES THAT MAKE THE DECISIONS.

AND WE'VE GOT OVER 150 THAT ARE REPRESENTED. >> EACH EACH.

>> GOVERNING BODY SAID, OKAY. >> IS THAT WHAT YOU SAID? >> NO. I SAID THAT THE GOVERNING BODIES, I BELIEVE, OF EACH OF FROM WHAT I'M READING IN THE. AND I'M JUST READING ON THE WEBSITE. SO WHAT WE SEE IS WHAT WE GET. IT LOOKS LIKE THEIR MEMBERSHIP IN THE STANDING COMMITTEE IS DETERMINED BY PASSAGE OF A RESOLUTION BY EACH GOVERNING BODY. THE STEERING COMMITTEE UNDERTAKES ACTIVITIES ON BEHALF OF ITS CITY MEMBERS AND THEIR CITIZENS, SUCH AS PARTICIPATION IN RATE CASES, RULEMAKINGS AND LEGISLATIVE EFFORTS THAT IMPACT NATURAL GAS RATES. I DOUBT VERY SERIOUSLY. ALL 150 MUNICIPALITIES HAVE A REPRESENTATIVE, SO WE CAN. WE CAN LOOK INTO HOW TO HAVE MORE IN EFFECT IN THE IN THE FUTURE.

BUT FROM THE WORKSHOP SESSION THAT WE HAD ON THIS, IT SEEMS THAT THIS WAS THE BEST THAT WE

COULD DO, AND IT WAS BETTER THAN WHERE WE STARTED. >> WOW. OKAY.

>> OKAY. ALL RIGHT. WE'VE WE'VE HAD A MOTION AND WE'VE HAD A SECOND SEE? NO MORE REQUESTS TO SPEAK. SO LET'S VOTE ON AGENDA ITEM E OR NOT. E AGENDA ITEM D. MOTION CARRY SIX ZERO. THANK

[E. ID 26-1207 Consider adoption of an ordinance of the City of Denton, Texas approving the execution and delivery of a financing agreement with the Texas Water Development Board regarding the issuance of utility system revenue bonds by the City for waterworks system improvements and related issuance costs, and approving the obligations of the City with respect to such agreement; authorizing the City Manager, City Secretary and Chief Financial Officer to take the actions necessary to accomplish the purposes of the ordinance and resolving other matters relating to the subject; and providing an effective date.]

YOU, THANK YOU. THE NEXT ITEM ON THE AGENDA IS SIX E. I'D 26-1207. CONSIDER ADOPTION OF AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING THE EXECUTION AND DELIVERY OF A FINANCING AGREEMENT WITH THE TEXAS WATER DEPARTMENT BOARD REGARDING THE ISSUE. ISSUANCE OF UTILITY SYSTEM REVENUE BONDS BY THE CITY FOR WATERWORKS, SYSTEM IMPROVEMENTS AND RELATED

INSURANCE COSTS. >> GOOD AFTERNOON OR EVENING COUNCIL AND MAYOR. I AM KATIE KOCH. I'M A PROJECT MANAGER FOR WATER UTILITIES, AND I AM HERE TO PRESENT TO YOU THE TEXAS WATER DEVELOPMENT BOARD STATE WATER IMPLEMENTATION FUND FOR TEXAS FINANCING AGREEMENT AUTHORIZATION. FOR SOME BACKGROUND, IN 2024, WE APPLIED FOR THE. WE. WE APPLIED FOR THE STATE WATER IMPLEMENTATION FUND FOR TEXAS LOAN. WE CALL IT A SWIFT LOAN. WE APPLIED FOR IT FOR A TOTAL OF 195,845,000. WE APPLIED FOR A FIVE YEAR MULTI-YEAR LOAN. THIS IS THE THIRD YEAR OF FINANCING WE WOULD BE RECEIVING. THIS LOAN IS MEANT TO FUND THE RAY ROBERTS WATER TREATMENT PLANT EXPANSION PROJECT. THE RAY ROBERTS WATER TREATMENT PLANT WAS PLACED INTO SERVICE IN 2002, AND HAS ITS CURRENT TREATMENT CAPACITY OF 20 MILLION GALLONS A DAY, BASED OFF THE HUNTER DEVELOPMENT ANALYSIS, MUD GROWTH ANALYSIS, AND ANNUAL AVERAGE CITY GROSS. IT IS CURRENTLY ANTICIPATED THAT THE RAY ROBERTS WATER TREATMENT PLANT WILL NEED TO SUPPORT A BUILD OUT CAPACITY OF 110 MGD BY THE YEAR OF 2053. THE PROJECT, THE EXPANSION PROJECT AT RAY ROBERTS, WILL ADD AN ADDITIONAL 20 MILLION GALLONS OF TREATMENT PER DAY THROUGH THE CONSTRUCTION OF A LOW PRESSURE MEMBRANE PROCESS TRAIN TREATMENT PLANT, WE ARE GOING TO BE ADDING AN INITIAL 20 MILLION GALLONS OF TREATMENT CAPACITY, WITH SPACE RESERVED FOR AN ADDITIONAL 30 MILLION GALLONS TO ALLOW US TO EXPAND RAPIDLY. TO ADDRESS THIS GROWTH, WE HAVE HAD BOTH THE CMAA AND THE DESIGN ENGINEER ON BOARD.

AS OF SEPTEMBER OF LAST YEAR. WE ARE AT OUR 30% DESIGN MILESTONE. AS OF FEBRUARY OF THIS YEAR. I ANTICIPATE THAT WE WILL BE GETTING OUR FIRST GMP OUT IN FRONT OF YOU GUYS EARLY

[04:55:06]

NEXT YEAR. LET ME HAND IT OVER TO MATT. >> GREAT.

>> MATT HAMILTON CHIEF FINANCIAL OFFICER SO I WILL WALK YOU THROUGH SOME OF THE THE FINANCIAL ASPECTS OF THIS LOAN PROGRAM AND THE FINANCING AGREEMENT. SO THE SWIFT PROGRAM WAS PASSED BY THE LEGISLATURE AND APPROVED BY TEXAS VOTERS THROUGH A CONSTITUTIONAL AMENDMENT. THE SWIFT PROGRAM HELPS COMMUNITIES DEVELOP AND OPTIMIZE WATER SUPPLIES. AND ESSENTIALLY WHAT HAPPENED WAS THE STATE HAS DEVELOPED A $2 BILLION FUND TO SUPPORT THESE WATER INFRASTRUCTURE PROJECTS. WHAT IS INTERESTING ABOUT IT IS THAT THEY DON'T LOAN THE CORPUS OF THAT $2 BILLION TO ENTITIES. WHAT THEY DO IS THAT THEY ISSUE BONDS IN THE MARKET. THOSE BONDS ARE TRIPLE A RATED. AND THEN WHAT THEY OFFER TO ENTITIES LIKE THE CITY OF DENTON IS A SUBSIDIZED LOWER INTEREST RATE. ON ISSUING BONDS TO THE TEXAS WATER DEVELOPMENT BOARD. SO ON ONE HAND, THEY'RE ISSUING HIGHER INTEREST BONDS AND THEN GIVING US A SUBSIDIZED RATE. AND THAT DIFFERENCE IS BEING PAID BY THIS $2 BILLION FUND. SO IT'S REALLY AN INTERESTING FINANCING MECHANISM AND A REALLY GREAT PROGRAM THAT THE CITY HAS BEEN ACCEPTED INTO.

SO SOME OF THE BENEFITS OF THE PROGRAM IS DIVERSIFICATION OF OUR FINANCIAL PORTFOLIO.

WITHOUT THIS PROGRAM, WE WOULD TYPICALLY LOOK AT ISSUING CEOS OR REVENUE BONDS TO DO IT WITHOUT ANY KIND OF SUBSIDIZED RATE. CERTAINLY, THE INTEREST SAVINGS IS THE BIGGEST VALUE TO THIS PROGRAM. SO WITH THE SUBSIDIZED RATES, WE WOULD TYPICALLY SEE 1 TO 2% LOWER INTEREST RATES THAN THE CITY WOULD BE RECEIVING ON ON CEOS IF WE JUST ISSUED CEOS, SOME OTHER BENEFITS IS THE CITY CAN CHOOSE BETWEEN AN EXTENDED AMORTIZATION PERIOD. SO THE TERM OF THE OF THE LOAN OR CHOOSE DEFERRED REPAYMENT OPTIONS WITH THE CITY HAS ELECTED HAS BEEN THE EXTENDED AMORTIZATION JUST BECAUSE THAT WAS THE WITH THE SUBSIDIZED RATE THAT MADE THE MOST FINANCIAL SENSE, RATHER THAN DEFERRING PAYMENTS UNTIL CONSTRUCTION WAS COMPLETE. AND IN 2032, WITH THIS PROGRAM, IT'S ANTICIPATED THE CITY WILL SAVE UPWARDS OF 20 MILLION. I CAN TELL YOU IT COULD BE UPWARDS OF 30 MILLION. SO THERE'S CERTAINLY SOME SOME REAL SAVINGS ASSOCIATED WITH USING THE SWIFT PROGRAM FOR A PROJECT LIKE THIS. SO IN TERMS OF THE FINANCING AGREEMENT, THIS IS A BINDING COMMITMENT BETWEEN THE CITY AND THE TEXAS WATER DEVELOPMENT BOARD THAT OBLIGATES THE CITY TO BORROW $57,240,000 IN FISCAL YEAR 2627. THAT'S THE UPCOMING FISCAL YEAR. SO THIS FINANCING AGREEMENT IS ESSENTIALLY AGREEING THAT TEXAS WATER DEVELOPMENT BOARD WILL GO OUT AND ISSUE THOSE BONDS IN THE MARKET. WHEN THEY RECEIVE THE PROCEEDS, THEN WE WILL BRING SOMETHING BACK TO COUNCIL, PROBABLY IN OCTOBER OR NOVEMBER, TO APPROVE THE UTILITY ISSUING THOSE SUBSIDIZED REVENUE BONDS.

SO ANNUALLY, BOTH THE FINANCING AND A LOAN AGREEMENT ARE BROUGHT TO COUNCIL. WE'VE COMPLETED THE THE FUNDING FOR THE TWO PRIOR FISCAL YEARS AND ARE NOW LOOKING FOR APPROVAL FOR THE THIRD YEAR. THE DEBT SERVICE PAYMENTS I DID WANT TO NOTE ARE INCLUDED IN THE PROPOSED 2627 BUDGET AND THE FINANCIAL PERFORMANCE THAT HAS BEEN PRESENTED TO COUNCIL DURING THE BUDGET PRESENTATIONS, AND THAT THE PAYMENTS ON THE $57.2 MILLION LOAN WILL BEGIN IN IN JUNE OF 2027. SO LOOKING AT THE FUNDING TIMELINE TODAY, THE FINANCING AGREEMENT IS BEING PRESENTED TO COUNCIL FOR APPROVAL ON SEPTEMBER 4TH. THAT EXECUTED FINANCING AGREEMENT IS DUE TO THE TEXAS WATER DEVELOPMENT BOARD. THEY THEN TAKE THAT AUTHORIZATION AND SELL BONDS IN THE MARKET, WHICH WILL FUND THE CITY'S APPROVED LOAN APPLICATION. IN OCTOBER, THE CITY COUNCIL WILL CONSIDER AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY BONDS TO TEXAS WATER DEVELOPMENT BOARD. AND THEN IN LATE NOVEMBER, EARLY DECEMBER, THAT FUNDING CLOSES AND THE CITY RECEIVES THE PROCEEDS. AND WE'LL STAND FOR ANY QUESTIONS.

>> I'VE GOT A QUESTION. >> IN OUR CURRENT BUDGET, WHEN WE'VE LOOKED AT THE RATE INCREASES PROJECTED IN THE OUT YEARS, THESE FINANCING REQUIREMENTS AND DEBT SERVICE

IS INCLUDED IN THOSE. IS THAT CORRECT? >> THAT'S CORRECT. OKAY.

>> ALL RIGHT. ANY OTHER QUESTIONS? YES. COUNCILMEMBER HOLLAND.