[00:00:08] CITY COUNCIL WORK SESSION. IT IS 2 P.M. AND WE ARE GOING TO GO AHEAD AND BEGIN THE MEETING. [1. Staff Recognition of Recent Awards and Achievements] FIRST THING IS STAFF RECOGNITION OF RECENT AWARDS AND ACHIEVEMENTS. >> GOOD AFTERNOON, MAYOR PRO TEM AND COUNCIL. YOU HAVE PROBABLY HEARD US TALK ABOUT BUSINESS NOT AS USUAL MINDSET. THAT WAS OUR THEME THROUGHOUT THIS BUDGET CYCLE. AND ONE OF THE THINGS THAT WE'RE DOING TO PUT THAT INTO PRACTICE IS OUR INNOVATION GRANT PROGRAM. SO I WANTED TO INVITE EMPLOYEES TO PITCH IDEAS THAT IMPROVE OUR SERVICES, SAVE TIME MONEY, GENERATE REVENUE, OR JUST GENERALLY MAKE THE CUSTOMER SERVICE EXPERIENCE BETTER FOR OUR COMMUNITY. AND THE THE SELECTED PROJECTS WOULD RECEIVE UP TO 25,000 TO PILOT THEIR IDEA. AND THIS WAS OUR FIRST YEAR. WE RECEIVED FIVE APPLICATIONS, AND THEN WE WENT THROUGH A SHARK TANK KIND OF STYLE OF PITCH WITH THE CITY MANAGER'S OFFICE. IT WAS REALLY FUN, VERY ENGAGING AND A TOUGH DECISION. THEY PUT ME ON THE SPOT AND IT WAS SO GREAT AND I COULDN'T CHOOSE JUST ONE. SO WE ACTUALLY CHOSE TO FUND BOTH TWO. TWO TEAMS WERE FUNDED, BUT I WANTED TO INTRODUCE THE TEAMS TO YOU AND RECOGNIZE THEIR GREAT WORK. WE HAVE A SHORT VIDEO, AND THEN WE'LL HAVE OUR STAFF MEMBERS COME UP AND INTRODUCE THEMSELVES. >> WE ARE THRILLED TO SHARE THAT BECAUSE OF THE INNOVATION GRANT AWARD, WE ARE ABLE TO IMPLEMENT A NEW ONLINE PAYMENT AND POINT OF SALE SYSTEM AT THE DENTON PUBLIC LIBRARY. THIS WILL ALLOW CUSTOMERS TO UPDATE THEIR ACCOUNTS 24 OVER SEVEN, WITHOUT HAVING TO WAIT UNTIL THE LIBRARY BRANCHES ARE PHYSICALLY OPEN. THAT MEANS AN ISSUE WITH AN ACCOUNT COULD BE RESOLVED IN THE MIDDLE OF THE NIGHT, ALLOWING YOU TO IMMEDIATELY DOWNLOAD A MUCH ANTICIPATED AUDIOBOOK. THIS NEW SYSTEM WILL STREAMLINE OUR OPERATIONS, SAVING VALUABLE STAFF TIME SO WE CAN MAKE SERVING THE DENTON COMMUNITY AS FAST AND EFFICIENT AS POSSIBLE. >> ANIMAL SERVICES IS WORKING WITH AN OUTSIDE CONSULTANT TO DIGITIZE OUR CUSTOMER INTAKE WORKFLOWS. RIGHT NOW, CUSTOMERS SIGN IN WITH PAPER AND PEN AT THE FRONT DOOR AND THEN MOVE TO THE FRONT DESK FOR ASSISTANCE, NO MATTER WHAT SERVICE THEY NEED. OUR NEW AUTOMATED SYSTEM WILL STREAMLINE THE INTAKE PROCESS BY DIRECTING CUSTOMERS BASED ON THEIR SPECIFIC NEEDS AND CREATING A QUEUING SYSTEM THAT WILL ALLOW US TO TRACK THEM AS THEY MOVE THROUGH OUR PROCESSES. OUR GOAL IS TO REDUCE WAIT TIMES, BOOST STAFF EFFICIENCY AND ELIMINATE CONFUSION IN CUSTOMER SERVICE. THIS WILL CREATE AN IMPROVED CUSTOMER EXPERIENCE, RESULTING IN BETTER OUTCOMES FOR THE ANIMALS IN OUR CARE. >> AND SO I JUST WANT TO GIVE A SHOUT OUT TO BOTH TEAMS. SO ANIMAL SERVICES FOR THEIR DIGITAL WORKFLOW SYSTEM, AND THEN THE LIBRARY DIGITAL POINT OF SALE SYSTEM. AND ALL OF THIS WOULD NOT HAVE BEEN POSSIBLE WITHOUT AMY CATHOLIC, OUR CHIEF STRATEGY OFFICER, HELPING US OUT AND HELPING US WORK THROUGH ALL OF THE APPLICATIONS THAT WE GOT AND WORK WITH THE DEPARTMENTS. SO I WANTED TO INVITE THE EMPLOYEES TO COME UP AND BE RECOGNIZED, INTRODUCE THEMSELVES. COME ON UP, Y'ALL. DON'T BE SHY. DON'T LEAVE ME HANGING. GO AHEAD. KIMBERLY. >> HI. I'M KIMBERLY WELLS, THE MANAGER OF THE EMILY FOWLER CENTRAL LIBRARY. >> MARK JACKSON. >> GO TO THE MICROPHONE. >> MARK JACKSON, THE ADMINISTRATION MANAGER FOR ANIMAL SERVICES. >> COME ON. >> JENNY MCGEE, THE VOLUNTEER COORDINATOR AT ANIMAL SERVICES. >> SO IF YOU WILL, PLEASE JOIN ME IN CONGRATULATING BOTH OF OUR TEAMS FOR THEIR WONDERFUL IDEAS. THANK Y'ALL. >> THANK YOU ALL. ON BEHALF OF THE COUNCIL, THANK YOU FOR WHAT YOU'RE DOING TO MAKE THIS CITY WHAT IT IS. >> THANK YOU. THANKS. >> ALL RIGHT. NEXT, WE'LL MOVE ON TO CITIZEN COMMENTS ON THE CONSENT AGENDA. I DON'T BELIEVE WE HAVE ANY. NO. ALL RIGHT. WE'LL MOVE ON TO REQUEST FOR [3. Requests for clarification of agenda items listed on this agenda for public hearing and individual consideration.] CLARIFICATION OF AGENDA ITEMS LISTED ON THIS AGENDA FOR THE PUBLIC HEARING IN INDIVIDUAL [00:05:01] CONSIDERATION. JUST TO LET YOU ALL KNOW, THERE'S A FEW THINGS. FIRST OFF, ON THE CONSENT AGENDA ITEM J IS GOING TO BE PULLED AND DELAYED UNTIL OUR NEXT MEETING ON OCTOBER 27TH. ON THE CONSENT AGENDA, ITEM Z IS GOING TO BE PULLED FOR AN INDIVIDUAL VOTE AND THEN UNDER ITEMS FOR INDIVIDUAL CONSIDERATION, A THAT'S A 260005 D THAT'S GOING TO BE DELAYED TILL THE NEXT MEETING AS WELL, BECAUSE THAT VOTE WOULD REQUIRE A SUPERMAJORITY. AND UNLESS WE GIVE THE CITY ATTORNEY VOTING POWER, WE DON'T HAVE A SUPERMAJORITY. AND SO ON THAT NOTE, BEFORE WE GET STARTED, I JUST WANT TO SAY THERE ARE ONLY FOUR OF US TODAY. WE WILL STILL NEED FOUR VOTES FOR ANYTHING IN THE AFFIRMATIVE FOR SOMETHING TO PASS. AND SO I FEEL VERY CONFIDENT WE CAN ALL WORK TOGETHER TO GET STUFF DONE. TODAY WE'RE GOING TO MOVE ON TO OUR WORK SESSIONS. START OFF WITH THE WORK SESSION REPORT A, THAT'S ID 261604. RECEIVE A [A. ID 26-1604 Receive a report, hold a discussion, and give staff direction regarding the proposed data center moratorium. [Estimated Presentation/Discussion Time: 30 minutes]] REPORT, HOLD DISCUSSION AND GIVE STAFF DIRECTION. REGARDING THE PROPOSED DATA CENTER MORATORIUM. ONE MORE NOTE BEFORE WE BEGIN ON THIS WORK SESSION. JUST TO NOTE, THE PRESENTATION THAT WE ALL RECEIVED INDICATED THAT COUNCIL WOULD BE GIVING DIRECTION AT THE END OF THIS. COUNCIL WILL NOT BE GIVING DIRECTION AT THE END OF THIS WORK SESSION. THIS WORK SESSION IS TO ASK QUESTIONS. WE'D ALREADY GIVEN A CHARGE, THROUGH A RESOLUTION AND PUBLIC TO SET THE PUBLIC HEARINGS TO TO HAVE CHARLIE AND STAFF RESIDE, GIVE US THAT, PROVIDE US THIS INFORMATION. AND SO MACK, DO YOU WANT TO CLARIFY ANYTHING OR CITY ATTORNEY EXCUSE ME. >> YEAH, CERTAINLY. COUNCIL CAN AND CAN WEIGH IN AND DISCUSS THE ITEM, BUT COUNCIL HAS APPROVED A RESOLUTION ALREADY WITH THE CALENDAR. WE'VE BEEN FOLLOWING THAT CALENDAR STRICTLY. WE'VE ALREADY HAD THE FIRST PUBLIC HEARING. THE NEXT MEETING ON THE 27TH WILL BE THE SECOND PUBLIC HEARING. AND SO NO MATTER WHAT THE DIRECTION IS TODAY, THAT RESOLUTION SUPERSEDES THAT. COUNCIL HAS GIVEN THAT AUTHORITY, THAT DIRECTION, AND THAT'S WHAT WE'LL CONTINUE TO FOLLOW. IF COUNCIL WANTED TO CHANGE THAT DIRECTION, AT SOME POINT, THEY'D HAVE TO COME BACK AND REVISE THAT RESOLUTION. BUT IN THE MEANTIME, WE'LL BE FOLLOWING THAT PATTERN. OKAY. >> ALL RIGHT. THANK YOU, SIR. GO AHEAD. >> ALL RIGHT. GOOD AFTERNOON, MAYOR PRO TEM AND CITY COUNCIL CHARLIE ROSENTHAL, DIRECTOR OF DEVELOPMENT SERVICES. THE ITEM BEFORE YOU TODAY IS JUST TO WORK THROUGH WHERE WE'RE AT IN THE DATA CENTER MORATORIUM PROCESS AND KIND OF GIVE YOU SOME FEEDBACK ON THE RATIONALE AND JUSTIFICATION FOR THAT MORATORIUM. JUST HERE'S A BIT OF BACKGROUND. I WON'T GO THROUGH ALL OF IT, BUT JUST BRIEFLY, MAYOR PRO TEM STEVENS BROUGHT IT ON JUNE 2ND, A TWO MINUTE PITCH FOR THIS MORATORIUM. WE ISSUED AN ISR, AND THEN CITY COUNCIL HELD A WORK SESSION ON AUGUST 4TH. ON AUGUST 18TH, WE DID APPROVE THAT RESOLUTION ON THE PUBLIC HEARING DATES. WE HELD THAT FIRST PUBLIC HEARING MORATORIUM ON SEPTEMBER 22ND. AND PNC SEPARATELY DID HOLD A VOTE FOR DDC AMENDMENTS ON SEPTEMBER 23RD. RELATED TO MORE TO DATA CENTERS. EXCUSE ME. SO JUST A LITTLE BACKGROUND ON WHAT IS A DATA CENTER? IT'S A FACILITY HOUSING COMPUTER EQUIPMENT. SOME OF THAT EQUIPMENT IS I.T EQUIPMENT, COMPUTER SERVERS, STORAGE ARRAYS, ETC. COOLING CONTROLS, POWER SYSTEMS, AND TYPICALLY HAS SOME TYPE OF PHYSICAL SECURITY. HERE ON THE RIGHT SIDE, YOU CAN SEE A NUMBER OF DIFFERENT TYPES. SO THERE'S AN ENTERPRISE LEVEL DATA CENTER THAT'S FOR ITS OWN INTERNAL I.T USE FOR BUSINESS, A COLOCATION CENTER WHERE IT'S A FEW OF THOSE TOGETHER. HYPERSCALE DATA CENTER, WHICH MOST OF US ARE FAMILIAR WITH, WE'VE BEEN TALKING ABOUT. AND THEN AN EDGE TYPE FACILITY. IT'S A MICRO FACILITY THAT'S ON CLOSER TO AN END USER TO MINIMIZE LATENCY. AND JUST A LITTLE MORE BACKGROUND ON WHAT IS A MORATORIUM. SO IT'S A PAUSE ON ACCEPTING NEW APPLICATIONS FOR PERMITS. AND IT CAN'T HALT APPLICATIONS THAT ARE ALREADY IN THE PROCESS. IT ALSO HAS TO HAVE A DEFINED GEOGRAPHIC AREA WHERE THE CITY HAS AUTHORITY TO ENACT THAT MORATORIUM. SO IT CAN BE DONE UNDER THREE LOCAL LEGAL BASES UNDER CHAPTER 212. SO THAT'S A SORT OF A CENTRAL A CENTRAL PUBLIC FACILITIES, WHICH ARE SPECIFICALLY DEFINED AS WATER, SEWER, STREETS OR DRAINAGE, A NEED FOR OTHER PUBLIC FACILITIES WHICH COULD INCLUDE POLICE OR FIRE, AS MENTIONED UNDER STATE LAW, COULD ALSO INCLUDE ELECTRICITY. AND THEN WE CAN ALSO DO A COMMERCIAL MORATORIUM FOR A NEED TO UPDATE LAND DEVELOPMENT ORDINANCES. AND IT'S WORTH NOTING THAT THAT SPECIFICALLY DOESN'T APPLY TO PROPERTY ZONED HEAVY INDUSTRIAL. SO OUR REQUIREMENT FOR SUBMITTING THE MORATORIUM IS SUBMITTED WRITTEN FINDINGS IN AN ORDINANCE AND SPECIFYING THE LEGAL BASIS FOR THAT MORATORIUM. [00:10:08] SO HERE IS THE OVERALL PROCESS THAT WE'VE BEEN FOLLOWING. YOU CAN SEE HERE ON THE THE RIGHT HAND SIDE, WE HELD THAT RESOLUTION SETTING THESE PUBLIC HEARING DATES OF SEPTEMBER 22ND AND OCTOBER 27TH. ON THAT AUGUST 18TH CITY COUNCIL MEETING, WE ISSUED THE NEWSPAPER PUBLICATION. TODAY WE'RE HOLDING THIS WORK SESSION FOR DISCUSSION OF OF THAT MORATORIUM. AND THEN ON DECEMBER 1ST, CITY COUNCIL WILL HAVE THE SECOND READING OF THE ORDINANCE AND CONSIDER ADOPTION OF THE MORATORIUM. AND IT DOES REQUIRE A SUPERMAJORITY VOTE BY CITY COUNCIL. THAT MORATORIUM WOULD BE IN EFFECT FOR 90 DAYS. AND THERE'S AN ADDITIONAL PROCESS THAT THE CITY COULD FOLLOW IF WE NEED TO EXTEND IT FOR AN ADDITIONAL 90 DAYS. AND SO IT'S A MAXIMUM OF 180 DAYS. WE COULD ISSUE THE MORATORIUM UNDER STATE LAW. AND ONCE IT'S BEEN COMPLETED, THEN WE CAN'T ISSUE THE MORATORIUM FOR THAT USE AGAIN FOR ANOTHER TWO YEARS. YOU CAN SEE ON THE LEFT HAND SIDE JUST KIND OF OUTLINING THE STATE LAW REQUIREMENTS FOR THAT. AND WE'VE WE'VE BEEN MEETING THESE STATE LAW REQUIREMENTS UNDER THE TIMELINE THAT WE'VE PROPOSED. SO HERE'S SOME OF OUR FINDINGS. THIS IS UNDER LOCAL GOVERNMENT CODE. 212.135 THE SHORTAGE OF ESSENTIAL PUBLIC FACILITIES. WE NEED TO SHOW THAT WE HAVE AN EXTENT OF BEYOND THE ESTIMATED CAPACITY FOR AN EXISTING PUBLIC FACILITY, AND WE NEED TO IDENTIFY THE PUBLIC FACILITY, THE PORTION OF CAPACITY COMMITTED TO THE MORATORIUM AND THE IMPACT FEE REVENUE. TO ADDRESS THAT, WE ALSO NEED TO SHOW THE AREA IN WHICH THAT MORATORIUM IS DEFINED. AND SO AS RELATED TO DATA CENTERS, THE CITY'S IMPACT HERE FOR OUR WATER AND WASTEWATER CAPACITIES, YOU CAN SEE HERE THAT WE HAVE ABOUT 48 MILLION GALLONS A DAY OF CAPACITY IN WATER AND 21 MILLION GALLONS A DAY CAPACITY IN WASTEWATER, OUR AVERAGE DAILY DEMANDS AND THEN OUR MAX DAILY DEMANDS. AND SO THE RATIONALE FOR THE MORATORIUM UNDER THIS WOULD BE THAT DATA CENTERS WITHOUT REGULATION HAVE THE ABILITY TO EXCEED THE CITY'S AVAILABLE CAPACITY. AND SO THE ISSUE FOR THE MORATORIUM WOULD BE UNDER SHORTAGE OF PUBLIC FACILITIES FOR THAT REASON. UNDER 212.1351 THAT'S THE SHORTAGE OF OTHER PUBLIC FACILITIES. WE HAVE SIMILAR EVIDENTIAL NEEDS. SO THE WE HAVE TO PROVE THAT THE EXISTING DEVELOPMENT REGULATIONS ARE INADEQUATE TO PREVENT AN OVERCAPACITY OR HARM TO PUBLIC HEALTH. WE HAVE TO SHOW EVIDENCE THAT DEMONSTRATING ANOTHER ALTERNATIVE METHOD WOULD NOT WORK IN PROTECTING THE PUBLIC HEALTH. AND THEN A WORKING PLAN AND TIME SCHEDULE FOR ACHIEVING THOSE OBJECTIVES. SO, AS WE'VE DISCUSSED BEFORE IN THE MORATORIUM DISCUSSIONS, THE DMC HAS APPROXIMATELY 75 MEGAWATT HOURS OF AVAILABLE CAPACITY FOR ADDITIONAL CONNECTIONS. BUT AT THIS POINT, WE DON'T HAVE A PROCESS UNDER WHICH DATA CENTERS WOULD FOLLOW WHEN COMING TO REQUEST THOSE SERVICES. AND SO THE RATIONALE THAT WE WOULD HAVE FOR ISSUING THIS MORATORIUM WOULD BE THE NEED TO ESTABLISH A PROCESS SO THAT WE CAN TAKE IN THESE DATA CENTER APPLICATIONS AND EVALUATE THEM TO ENSURE THAT THE CITY DOESN'T OVERCOMMIT POTENTIAL CAPACITY FOR THESE DATA CENTERS IN THE FUTURE. AND THEN LASTLY, THE COMMERCIAL MORATORIUM EVIDENCE UNDER 212.1352, THE NEED TO UPDATE LAND ORDINANCES. SO OBVIOUSLY, THE CITY IS GOING THROUGH A PROCESS. NOW. WE HAVE IN OUR AGENDA THIS EVENING TO AMEND THE DEVELOPMENT CODE TO INCLUDE ADDITIONAL PROVISIONS REGARDING DATA CENTER DEVELOPMENTS. AND THEN THE THERE'S STILL A NEED FOR US TO PROVIDE ADDITIONAL LEVEL OF DETAIL IN OUR CRITERIA MANUALS TO SPECIFY WHAT WE MEAN WHEN WE MAKE THESE AMENDMENTS. SO, FOR EXAMPLE, TONIGHT ANGIE WILL BE PRESENTING ON A REQUIREMENT THAT A DATA CENTER EITHER HAVE FREE AIR COOLING OR A CLOSED LOOP SYSTEM, BUT WE NEED TO GO THROUGH AND SPECIFY OUR CRITERIA MANUALS, WHAT THOSE ARE, WHAT WE EXPECT FROM THE STUDIES THAT WE'RE INPUTTING INTO THE D, D, C. SO WHAT LEVEL OF DETAIL THAT SOMEBODY NEEDS TO GO IN AND PUT INTO THOSE STUDIES SO THAT WE ALL HAVE A CLEAR UNDERSTANDING OF WHAT THE EXPECTATION IS WHEN A FUTURE DATA CENTER WERE TO APPLY TO THE CITY, WHAT THOSE REGULATIONS WOULD BE. AND SO LASTLY, JUST TO, TO BRING IT BACK. SO ON OCTOBER 27TH, WE WILL BE HOLDING OUR SECOND PUBLIC HEARING AND ALSO THE FIRST READING OF THE ORDINANCE FOR ISSUING THE MORATORIUM THAT WOULD BE BASED ON THE [00:15:04] INFORMATION THAT I JUST PROVIDED TO YOU AND THE EVIDENCE FOR THAT MORATORIUM. AND THEN THAT APPLICABILITY WOULD BE TO THE CITY OF DENTON AND INTO THE CITY'S ETJ AS WELL. AND WITH THAT, I WILL TAKE ANY QUESTIONS. >> THANK YOU. DO WE HAVE ANY QUESTIONS? COUNCIL MEMBER RUMOHR. >> I JUST HAVE ONE QUESTION. WHEN WE SAY ON THE MEGAWATT CAPACITY THAT WE HAVE LEFT THE 75, WHAT IS THAT BASED ON? IS IT LIKE TRANSMISSION CAPACITY? THAT'S PROBABLY. TONY QUESTION. YEAH. >> TONY POINTED THE GENERAL MANAGER. THAT'S THAT'S CORRECT. ANY ANY LOAD LARGER THAN 25MW, WE'RE GOING TO PUSH THE TRANSMISSION SYSTEM BELOW THAT WOULD BE DISTRIBUTION. BUT EVEN THEN WE'D HAVE TO LOOK AT WHAT CAPACITY MIGHT BE TO BE ABLE TO SERVE THEM. >> OKAY. THANKS. THAT'S ALL I HAD. >> YES. >> ANY OTHER QUESTIONS FOR CHARLIE? JUST I THINK ONE QUESTION REALLY IMPRESSED WITH THE PRESENTATION AND THE FACT FINDING THAT THAT YOU ALL WERE CHARGED TO DO WHO WHAT DEPARTMENTS CAME TOGETHER TO COME UP WITH THE FINDINGS? >> YEAH. SO IT WAS REALLY THE DEVELOPMENT SERVICES TEAM, OUR PLANNING STAFF, DME, WATER UTILITIES HELP OF MICHAEL GARNER FROM THE ENVIRONMENTAL SERVICES GROUP, AND THEN OF COURSE, OUR LEGAL DEPARTMENT. >> IF YOU COULD JUST EXTEND A THANK YOU TO EVERYONE THAT WORKED ON IT AND TO ALL YOUR DEPARTMENTS THAT WORKED ON IT AS WELL, BECAUSE IT WAS REALLY HELPFUL TO SEE THIS. AND FOR ME FURTHER PROVIDES A JUSTIFICATION OF, OF, OF WHY WE NEED TO MOVE FORWARD WITH THIS. IT'S JUST SOME, YOU KNOW, FOR ME PERSONALLY TROUBLING INFORMATION. YEAH. AND AGAIN, I SAY THIS EVERY TIME YOU PROVIDE SUCH A ZEN TO THE ROOM WHEN YOU PRESENT, THANK YOU SO MUCH BECAUSE IT'S A HARD TOPIC AND YOU DO A GREAT JOB AT PRESENTING THIS INFORMATION IN A WAY THAT'S EASY FOR US TO UNDERSTAND. SO THANK YOU. >> YEAH. THANK YOU, I [B. ID 26-1187 Receive a report, hold a discussion, and give staff direction regarding Audit Project 025-Energy Portfolio Management: Transaction Administration and Renewable Energy Offset Goal Follow-Up Review. [Estimated Presentation/Discussion Time: 15 minutes]] APPRECIATE IT. >> ALL RIGHT. WE'LL MOVE ON TO THE NEXT WORK SESSION ITEM. IT'S B I'D 261187. RECEIVE A REPORT HOLD DISCUSSION AND GIVE STAFF DIRECTION REGARDING AUDIT PROJECT 025 ENERGY PORTFOLIO MANAGEMENT, TRANSACTION ADMINISTRATION AND RENEWABLE ENERGY OFFSET GOAL FOLLOW UP REVIEW. WE'LL SEE YOU FOR A WHILE THIS AFTERNOON. >> YES, I'LL BE HERE FOR A LITTLE BIT. HOPEFULLY NOT MORE THAN 45 MINUTES THOUGH. BUT I'M MADISON DENTON, CITY AUDITOR, AND I AM GOING TO PRESENT THESE FINDINGS FROM OUR FOLLOW UP REVIEW. IF I CAN GET THE PRESENTATION TO WORK. ALL RIGHT. SO AS A REMINDER, AUDIT FOLLOW UP REVIEWS ARE INTENDED TO PROVIDE INFORMATION ON WHAT CHANGES HAVE BEEN MADE IN RESPONSE TO AN ISSUED AUDIT. THIS REVIEW WAS BASED ON THE RECOMMENDATIONS AND MANAGEMENT RESPONSES ORIGINALLY COMPILED IN THE AUDIT OF ENERGY PORTFOLIO MANAGEMENT TRANSACTION ADMINISTRATION, AS WELL AS RENEWABLE ENERGY OFFSET GOALS, WHICH WAS ISSUED IN TWO REPORTS, AND THEY WERE ALSO ISSUED IN MARCH OF 2022. SO THESE TWO REPORTS EVALUATED WHETHER THE CITY'S ENERGY PORTFOLIO MANAGEMENT RELIABLY COMPLIED WITH RELEVANT POLICIES AND PROCEDURES. IN PARTICULAR, THE PROJECT FOCUSED ON DMS COMPLIANCE WITH THE CITY'S ENERGY RISK MANAGEMENT POLICY HEDGE PLAN AND THE 2018 DENTON RENEWABLE RESOURCE PLAN. SO WHILE THIS IS A FOLLOW UP REVIEW, ENERGY PORTFOLIO MANAGEMENT IS A UNIQUE FUNCTION FOR MUNICIPALITY, AND IT'S KIND OF COMPLEX, ESPECIALLY FOR THOSE WHO MIGHT BE UNFAMILIAR WITH ERCOT OR FINANCIAL MARKETS IN GENERAL. SO I HAVE A BRIEF OVERVIEW OF THE ELECTRIC MARKET AND THE TYPES OF TRANSACTIONS THAT THE CITY'S ENERGY PORTFOLIO INCLUDES. I WILL SKIP IT IF YOU WOULD PREFER, BUT IT MIGHT BE HELPFUL. OKAY, SO FIRST TO MEET CUSTOMER DEMAND DMS ENERGY MANAGEMENT ORGANIZATION MUST EXECUTE TRANSACTIONS, INCLUDING FINANCIAL HEDGES TO ENSURE ENERGY PUT ON THE ERCOT GRID BY GENERATORS IS AVAILABLE TO BE TAKEN OFF THE GRID BY DME TO SERVE ITS CUSTOMERS. IT'S IMPORTANT TO MAKE CLEAR THAT ONCE ENERGY IS PUT ON THE GRID, IT'S NOT PHYSICALLY POSSIBLE TO KEEP TRACK OF EACH UNIQUE MEGAWATT GENERATED. INSTEAD, ERCOT USES METERING AND A SYSTEM OF ACCOUNTING TO TRACK AND FINANCIALLY SETTLE THE TRADE AND USE OF ELECTRICITY. IN GENERAL, THERE ARE THREE DIFFERENT TYPES OF ENERGY PORTFOLIO TRANSACTIONS THAT WERE REVIEWED AS PART OF THE ORIGINAL AUDIT, INCLUDING PHYSICAL AND FINANCIAL TRADES, POWER PURCHASE AGREEMENTS AND CONGESTION REVENUE RIGHTS, WHICH ARE DEFINED ON THE SLIDE HERE. IN GENERAL, THE EMOS FRONT OFFICE IS RESPONSIBLE FOR IDENTIFYING A TRANSACTION TO EXECUTE, INCLUDING MONITORING THE ELECTRICITY MARKET TO IDENTIFY APPROPRIATE FINANCIAL AND PHYSICAL HEDGES, SOLICITING AND EVALUATING GENERATORS TO CONTRACT WITH FOR POWER PURCHASE AGREEMENTS AND BIDDING [00:20:03] AS PART OF THE ERCOT AS PART OF ERCOT'S CONGESTION REVENUE WRITE AUCTION, THE MIDDLE OFFICE IS THEN RESPONSIBLE FOR ENSURING THESE TRANSACTIONS ALIGN WITH RELEVANT ENERGY PORTFOLIO MANAGEMENT POLICIES, SUCH AS VERIFYING THAT PHYSICAL AND FINANCIAL HEDGES WERE EXECUTED WITHIN THE PROPER AUTHORITY, EXECUTING AGREEMENTS WITH OTHER MARKET PARTICIPANTS, AND MONITORING CONTRACT COMPLIANCE. THE BACK OFFICE IS THEN RESPONSIBLE FOR PROCESSING, RECEIVED INVOICES, AND BILLING OTHER MARKET PARTICIPANTS FOR EXECUTED TRANSACTIONS. BACK OFFICE ALSO COMMUNICATES THESE TRANSACTION SETTLEMENT ACTIVITIES TO THE CITY'S TREASURY AND ACCOUNTING DIVISIONS AS NEEDED, TO ENSURE THEY'RE RECORDED IN THE CITY'S FINANCIAL RECORDS. SO THE ORIGINAL AUDIT FOUND THAT THESE DUTIES AND INTERNAL CONTROLS, INCLUDING THE SEPARATION OF DUTIES BETWEEN THE FRONT, MIDDLE AND BACK OFFICES. WERE GENERALLY LAID OUT CLEARLY IN THE ENERGY RISK MANAGEMENT POLICY AND HEDGE PLAN, AND WERE APPROPRIATELY AND EFFECTIVELY DESIGNED. SO THEY'RE DOING WELL AS SEPARATING KIND OF THESE SEPARATE PIECES OF MAKING A TRANSACTION. SO FURTHER, THE ORIGINAL AUDIT FOUND THAT PHYSICAL AND FINANCIAL TRADES WERE GENERALLY EXECUTED, SETTLED AND RECORDED APPROPRIATELY IN THE CITY'S FINANCIAL RECORDS. HOWEVER, THERE WAS NO FORMAL PROCESS FOR FRONT OFFICE STAFF TO APPROVE TRADE TRANSACTIONS AFTER EXECUTION TO ENSURE THEY ARE APPROPRIATE. IN ADDITION, WE FOUND THAT THE MIDDLE OFFICE DID NOT HAVE A PROCESS TO VERIFY THAT TRADE TRANSACTIONS WERE MADE BY AUTHORIZED EMPLOYEES BASED ON THE TRANSACTION AUTHORITY LIMITS SET IN THE ENERGY RISK MANAGEMENT POLICY. AND WHILE THE MIDDLE OFFICE HAD ESTABLISHED PROCEDURES FOR EVALUATING AND MONITORING THE FINANCIAL HEALTH OF TRADING COUNTERPARTIES, OR THOSE WHO WE EXECUTE CONTRACTS WITH, DOCUMENTATION OF THESE PERIODIC EVALUATIONS WERE NOT MAINTAINED. SINCE THE ORIGINAL AUDIT, DME HAS BEGUN USING FLAGS IN ITS ENERGY TRADING AND RISK MANAGEMENT SYSTEM TO MARK WHEN TRANSACTIONS ARE APPROVED BY FRONT OFFICE SUPERVISORS AND WHEN THEY'VE BEEN VERIFIED BY MIDDLE OFFICE STAFF. IN ADDITION, THE MIDDLE OFFICE HAS IMPLEMENTED PROCEDURES FOR VERIFYING COUNTERPARTIES FINANCIAL HEALTH AND FORMER REVIEWS ARE COMPLETED AND DOCUMENTED MONTHLY FOR POWER PURCHASE AGREEMENTS. THE AUDIT FOUND THAT THE CITY WAS COMPLYING WITH STATE PROCUREMENT REGULATIONS WHEN GOING THROUGH THE SOLICITATION PROCESS. THAT BEING SAID, WE FOUND THAT FOR TEN OF 46 REVIEWED AGREEMENT PAYMENTS AND THE AGREEMENT PAYMENTS, THE QUANTITY DELIVERED COULD NOT BE VERIFIED. BASED ON THE DOCUMENTATION PROVIDED BY BACK OFFICE STAFF. I DO WANT TO NOTE THAT THESE THIS WAS IN 2002 AND THESE DISCREPANCIES WERE RESOLVED SHORTLY AFTER THE ORIGINAL AUDIT WAS ISSUED. IN ADDITION, WE FOUND THAT PAYMENTS WERE MADE FOR MEGAWATT HOURS CURTAILED OR THOSE MEGAWATT HOURS THAT ARE PPA PARTNERS COULD HAVE GENERATED, BUT WERE INSTRUCTED NOT TO. WE'RE VERY DIFFICULT TO VERIFY BECAUSE THERE'S NOT ACTUALLY A PHYSICAL COMMODITY BEING DELIVERED, AND THE QUANTITIES CAN ONLY BE VERIFIED IN 15 MINUTE INCREMENTS ON OUR SIDE, WHEREAS THEY'RE HAPPENING IN REAL TIME ON THE ELECTRIC GENERATOR SIDE. SO SINCE THE ORIGINAL AUDIT, THE BACK OFFICE IMPLEMENTED A COMPREHENSIVE MANUAL THAT OUTLINES THE POWER PURCHASE AGREEMENT INVOICE VERIFICATION PROCESS, HELPING TO REDUCE THE RISK OF FUTURE DISCREPANCIES. AND THE MANUAL INCLUDES INFORMATION ON HOW TO BETTER VERIFY CURTAILMENT PAYMENTS, THOUGH IT SHOULD BE NOTED THAT THOSE TIMING ISSUES I MENTIONED CAN'T BE ELIMINATED. FINALLY, FOR CONGESTION REVENUE RIGHTS, THE ORIGINAL AUDIT FOUND THAT AWARDED CHRIS ARE AUTOMATICALLY RECORDED IN THE CITY'S ENERGY TRADING AND RISK MANAGEMENT SYSTEM, AND TRANSACTIONS WERE SETTLED BY ERCOT AUTOMATICALLY IN THE CITY ACCOUNT. THE BACK OFFICE HAD A PROCESS TO MONITOR THE CITY'S ACCOUNT AND HAD ESTABLISHED INFORMAL THRESHOLDS AT WHICH ACCOUNT REPLENISHMENT PAYMENTS WERE INITIATED. SO NEXT, AS PART OF THE ORIGINAL TRANSACTION REVIEW, SEVERAL ADMINISTRATIVE ISSUES WERE NOTED. IN PARTICULAR, THE ORIGINAL AUDIT FOUND THAT FINANCIAL TRANSACTION DATA STORED IN THE ENERGY TRADE AND RISK MANAGEMENT SYSTEM WAS NOT REGULARLY REVIEWED, RESULTING IN SOME DATA INCONSISTENCIES AND SOME FRONT OFFICE STAFF MEMBERS WHO WERE REQUIRED TO OBTAIN CERTIFICATIONS HAD NOT YET DONE SO. SINCE THE ORIGINAL AUDIT. DME EMPLOYEE OUTSIDE OF THE ENERGY MANAGEMENT OFFICE HAS VERIFIED THE ACCURACY OF ENERGY TRADE AND RISK MANAGEMENT SYSTEM DATA ANNUALLY, AND NO DISCREPANCIES HAVE BEEN IDENTIFIED. IN ADDITION, FRONT OFFICE STAFF MEMBER JOB DESCRIPTIONS HAVE BEEN UPDATED TO CLARIFY THAT ONLY ONE STAFF MEMBER REQUIRES CERTIFICATION, AND THAT EMPLOYEE IS CURRENTLY CERTIFIED. IN ADDITION, THE ORIGINAL AUDIT FOUND THAT WHILE THE MIDDLE OFFICE HAD DEVELOPED AND IMPLEMENTED STANDARD OPERATING PROCEDURES, THEY HAD NOT BEEN UPDATED SINCE 2017 AND DID NOT MATCH CURRENT PRACTICES. FURTHERMORE, THE MIDDLE OFFICE HAD BEEN CHARGED WITH ADMINISTERING ACCESS TO THE TO THE ENERGY TRADE RISK MANAGEMENT SYSTEM, BUT NO CRITERIA OR PROCEDURES HAD BEEN DEVELOPED OUTLINING HOW ACCESS SHOULD BE GRANTED, MODIFIED OR REVOKED. AND WE FOUND THAT THE BACK OFFICE DID NOT HAVE ANY STANDARD OPERATING PROCEDURES FOR SETTLEMENT ACTIVITIES, WHICH WERE PRIMARILY PERFORMED BY A SINGLE INDIVIDUAL, WHICH WOULD INCREASE THE RISK THAT THE CITY WOULD BE UNABLE TO [00:25:04] ADEQUATELY SETTLE ITS PORTFOLIO TRANSACTIONS IF THAT ROLE WAS VACATED. AGAIN. THAT WAS ALL IN 2002 22. SORRY. SINCE THEN, THE MIDDLE OFFICE HAS UPDATED ITS WRITTEN PROCEDURES TO ALIGN WITH CURRENT ENERGY RISK MANAGEMENT POLICY AND HEDGE PLAN, AND THE BACK OFFICE HAS DEVELOPED A PROCEDURE MANUAL THAT ADDRESSES ALL MAJOR SETTLEMENT ACTIVITIES. THE BACK OFFICE HAS ALSO BEEN EXPANDED FROM 1 TO 2 STAFF MEMBERS, HELPING TO MAINTAIN INSTITUTIONAL KNOWLEDGE AND ENSURE CONSISTENCY IN THE FUTURE. THE MIDDLE OFFICE HAS ALSO IMPLEMENTED A WRITTEN ACCESS PROCEDURE THAT OUTLINES WHICH EMPLOYEES NEED, WHAT TYPE OF ACCESS TO THE ENERGY, TRADE AND RISK MANAGEMENT SYSTEM, AND ALL ACCESS CHANGES ARE APPROVED AND DOCUMENTED. FINALLY, THE ORIGINAL AUDIT ALSO EVALUATED THE CITY'S COMPLIANCE WITH THE 2018 RENEWABLE RESOURCE PLAN. WHICH WAS AIMED AT HAVING 100% OF THE CITY'S NATIVE LOAD, OFFSET BY RENEWABLE ENERGY. AS EARLY AS 2020. THE ORIGINAL AUDIT FOUND THAT WHILE THIS PLAN OUTLINED HOW TO ACHIEVE THE CITY'S 100% RENEWABLE GOAL, IT DID NOT DETAIL HOW PROGRESS TOWARD THAT GOAL SHOULD BE CALCULATED. BUT THE RENEWABLE RENEWABLE GOAL WAS MET FOR THE CALENDAR YEAR 2021 BASED ON DMS CALCULATIONS, WHICH WE VERIFIED DIDN'T DOUBLE COUNT ANY MEGAWATT HOURS. STILL, SEVERAL QUESTIONS ABOUT HOW DME SHOULD COMPLY WITH THE CITY'S RENEWABLE ENERGY GOAL REMAINED THAT WE ISSUED RECOMMENDATIONS TO ADDRESS, AND THOSE INCLUDED. WHAT RESOURCE MIX WOULD THE CITY USE GOING FORWARD TO MEET ITS INCREASING NATIVE LOAD, ESPECIALLY GIVEN GIVEN KIND OF THE UNCERTAINTY AROUND THE ERCOT MARKET AT THAT TIME? IF THE CITY SHOULD CHOOSE TO CONTINUE OFFSETTING ITS NATIVE LOAD WITH RENEWABLE ENERGY TO SOME EXTENT, HOW SHOULD THAT OFFSET BE CALCULATED? AND THEN WHAT SHOULD THE CITY DO WITH ITS RENEWABLE ENERGY CREDITS OR RECS? SINCE THE ORIGINAL AUDIT, DME HAS ANNUALLY REPORTED ON ITS RENEWABLE ENERGY OFFSET PERFORMANCE, AS ILLUSTRATED IN THE FIGURE ON THE SLIDE. IN JUNE 2025, DME RECOMMENDED THAT THE CITY COUNCIL ADOPT A RENEWABLE ENERGY POLICY IN CONJUNCTION WITH AN INTEGRATED RESOURCE PLAN. BASED ON OBSERVATION OF THAT COUNCIL MEETING. DME RECOMMENDATION WOULD PROVIDE ANSWERS TO THREE QUESTIONS REMAINING. HOWEVER, THE CITY COUNCIL DIRECTED STAFF TO DELAY DEVELOPMENT OF THE RECOMMENDED POLICY AND PLAN AND DID NOT SPECIFY OR DID NOT PROVIDE SPECIFIC POLICY DIRECTION ON THE IDEAL RESOURCE MIX OR HOW THE CITY SHOULD HANDLE RECS AT THAT TIME, AND THAT WILL BE COMING TO YOU ALL LATER. STILL. BASED ON AUDITS, REVIEW THE REC TREATMENT PLAN PROPOSED BY DME DURING THAT MEETING WOULD COMPLY WITH RELEVANT FEDERAL GUIDANCE, AND THE 2018 DENTON RENEWABLE RESOURCE PLANS 100% RENEWABLE OFFSET MANDATE. SPECIFICALLY, THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY'S GREEN POWER PARTNERSHIP STATES THE REC OWNER HAS EXCLUSIVE RIGHTS TO MAKE CLAIMS EITHER EXPLICITLY OR IMPLICITLY, ABOUT USING OR BEING POWERED WITH RENEWABLE ENERGY ASSOCIATED WITH THAT REC. SO CENTRAL TO THE GUIDANCE IS THE CONCERN THAT AN ORGANIZATION'S RENEWABLE ENERGY CLAIMS ARE FALSE DUE TO POTENTIAL DOUBLE COUNTING OF RENEWABLE ENERGY, MEGAWATT HOURS, OR COUNTING OF MEGAWATT HOURS THAT ARE OUTSIDE THE ENERGY MARKET. THE ORGANIZATION OPERATES IN. SO BASED ON THIS PROPOSAL TO RETIRE THE ASSET PURCHASES THAT IT PRESENTED IN JUNE OF 25, WITHIN THE YEAR THAT THEY WERE GENERATED TO COUNT THEM TOWARDS ITS OFFSET GOAL, WOULD ENSURE THAT THESE TRANSPARENCY CONCERNS ARE ADEQUATELY ADDRESSED. OF COURSE, THERE IS NO POLICY YET, THOUGH, SO IT'S KIND OF AN OPEN QUESTION, BUT DME HAS DONE EVERYTHING THEY CAN TO TRY TO ADDRESS THE AUDIT RECOMMENDATIONS. AND SO WITH THAT, SORRY, THERE WERE ONLY TWO OF THE 16 RECOMMENDATIONS WE ISSUED THAT WERE STILL IN PROGRESS. AGAIN, THOSE WERE THE ONES THAT ARE KIND OF WAITING ON COUNCIL DIRECTION. AND SO WE DO NOT PLAN TO FOLLOW UP ON THIS. I THINK WE PLAN TO DO AN INFORMAL FOLLOW UP REVIEW AFTER COUNCIL HAS GIVEN DIRECTION ON WHAT PLAN ENDED UP BEING ADOPTED. >> OKAY. THANK YOU SO MUCH. DO WE HAVE ANY QUESTIONS FOR MADISON? ALL RIGHT. ALL RIGHTY. WE'RE GOING TO GO AHEAD AND I'LL READ THIS SLOWLY SO YOU [C. ID 26-1188 Receive a report, hold a discussion, and give staff direction regarding Audit Project 036-Public Safety Communications: Follow-Up Review. [Estimated Presentation/Discussion Time: 15 minutes]] CAN CATCH A BREATH. THANKS. IT'S A WORK SESSION. C I'D 261188 RECEIVE A REPORT HOLD DISCUSSION AND GIVE STAFF DIRECTION REGARDING AUDIT PROJECT 036 PUBLIC SAFETY COMMUNICATIONS FOLLOW UP REVIEW. >> MADISON DENTON, CITY AUDITOR THIS IS ANOTHER FOLLOW UP REVIEW. SO I'M NOT GOING TO GO THROUGH THE WHOLE YOU KNOW WHAT THAT IS AT THIS POINT. BUT THIS ONE WAS BASED ON THE RECOMMENDATIONS AND MANAGEMENT RESPONSES ORIGINALLY COMPILED IN THE AUDIT OF PUBLIC SAFETY COMMUNICATIONS REPORT, WHICH IS THE THE CITY'S 911 DISPATCH CENTER, WHICH WAS ORIGINALLY PUBLISHED IN DECEMBER 2023. AND IT EVALUATED WHETHER THE CITY'S 911 CONTACT CENTER PERFORMED AS EXPECTED AND RELIABLY COMPLIED WITH TRAINING REQUIREMENTS. PUBLIC SAFETY COMMUNICATION DIVISION IS THE FIRST POINT OF CONTACT FOR PEOPLE CALLING 911 [00:30:04] FOR EMERGENCY HELP. IN THE CITIES OF DENTON AND LITTLE ELM. TO BEGIN 911 CALL RESPONSE TIMELINESS IS HIGHLY REGULATED BY SEVERAL STANDARD SETTING BODIES. 911 CALL RESPONSE TIMELINESS CAN GENERALLY BE BROKEN INTO TWO PIECES. FIRST, THE TIME TO ANSWER A CALL AND SECOND, THE TIME TO DISPATCH NEEDED UNITS, WHICH INCLUDES THAT TIME TO ANSWER THE CALL AS WELL. SPECIFICALLY, INDUSTRY STANDARDS REQUIRED 90% OF 911 CALLS TO BE ANSWERED WITHIN 15 SECONDS, AND 95% OF CALLS TO BE ANSWERED WITHIN 20S. IN ADDITION, ALL FIRE CALLS SHOULD BE DISPATCHED WITHIN 60S. BUT THERE'S NO INDUSTRY TIMELINESS. THERE'S NO INDUSTRY STANDARD FOR TIMELINESS AS FAR AS DISPATCHING POLICE CALLS. THE ORIGINAL AUDIT FOUND THAT 911 CALLS WERE GENERALLY ANSWERED TIMELY AND THAT CLEAR TIMELINESS EXPECTATIONS HAD BEEN ESTABLISHED FOR DISPATCHING FIRST RESPONDERS, BUT IT WAS UNCLEAR IF THESE DISPATCHING EXPECTATIONS SPECIFICALLY FOR POLICE PRIORITY ONE AND TWO CALLS WERE FEASIBLE AT THE TIME, ESPECIALLY GIVEN EXISTING RESOURCE CONSTRAINTS. WHILE THERE IS NO INDUSTRY STANDARD FOR DISPATCHING POLICE CALLS, THE DIVISION HAD ESTABLISHED GOALS TO DISPATCH PRIORITY ONE CALLS SUCH AS BURGLARIES IN PROGRESS, KIDNAPINGS AND SUICIDES WITHIN 60S, AND PRIORITY TWO CALLS SUCH AS DOMESTIC DISTURBANCES, HIT AND RUNS, AND DISORDERLY CONDUCT WITHIN 100 AND 80S OR THREE MINUTES. SINCE THE ORIGINAL AUDIT, PUBLIC SAFETY COMMUNICATIONS MANAGEMENT HAS IMPLEMENTED QUARTERLY MEETINGS WITH THE DENTON AND LITTLE ELM FIRE AND POLICE CHIEFS, DURING WHICH DISPATCHING, TIMELINESS, PERFORMANCE AND RELEVANT GOALS ARE DISCUSSED. IN ADDITION, 911 CALL DATA SHOWS THAT DISPATCHING TIMES FOR BOTH DENTON AND LITTLE ELM POLICE DEPARTMENTS HAVE DECREASED TO BE RIGHT AROUND THE 62ND GOAL FOR PRIORITY ONE CALLS, THOUGH THE PRIORITY TWO CALLS CONTINUE TO NOT BE MET FOR DENTON PD. PRIORITY TO CALL GOAL. THE ORIGINAL AUDIT ALSO FOUND THAT ABOUT 14% OF ALL EMERGENCY CALLS WERE ABANDONED, MEANING THE CALLER HUNG UP BEFORE THE CALL COULD BE ANSWERED. ABOUT 90% OF THOSE CALLS WERE RETURNED AS REQUIRED BY DIVISION POLICY, BUT ABANDONED CALLS WERE NOT BEING FORMALLY REVIEWED OR REPORTED ON. SINCE THE ORIGINAL AUDIT ABANDONED CALLS PERCENTAGES HAVE DROPPED SLIGHTLY AND THE DIVISION HAS BEGUN RECEIVING AND REVIEWING ABANDONED CALL REPORTS TWICE A DAY, HELPING TO ENSURE THAT ALL TRUE EMERGENCY CALLS ARE RESPONDED TO TIMELY. NEXT, TO BE EFFECTIVE BEST PRACTICES RECOMMEND THAT PROCEDURES BE DEVELOPED TO ENSURE COMPREHENSIVE INFORMATION IS OBTAINED FROM 911 CALLERS AND COMMUNICATED TO FIRST RESPONDERS, INCLUDING DEVELOPING DETAILED PROTOCOLS AND SOMETIMES EVEN CALL SCRIPTS. IN ADDITION, LIKE OTHER TYPES OF CALL CENTERS, PUBLIC SAFETY ANSWERING POINTS SHOULD HAVE QUALITY ASSURANCE PROGRAMS, WHEREBY ACTUAL CALLS ARE REVIEWED IN DETAIL BY A SUPERVISOR TO DETERMINE IF THE PROCEDURES WERE FOLLOWED CONSISTENTLY. THE ORIGINAL AUDIT FOUND THAT THE DIVISION HAD ESTABLISHED SPECIFIC CALL ANSWERING PROTOCOLS FOR DIFFERENT CALL TYPES, INCLUDING SCRIPTS FOR EXTREMELY HIGH RISK CALLS TO GUIDE STAFF IN OBTAINING COMPREHENSIVE INFORMATION. HOWEVER, WHILE CALL QUALITY ASSURANCE PROGRAM PROGRAM HAD BEEN DESIGNED, IT HAD NOT BEEN FULLY IMPLEMENTED PRIMARILY DUE TO SIGNIFICANT VACANCIES AND HIGH TURNOVER IN THE DIVISION. FURTHER CALL QUALITY REVIEW RESULTS TRACKING WAS HINDERED, MAKING IT DIFFICULT TO EVALUATE PERFORMANCE TRENDS. SINCE THE ORIGINAL AUDIT, THE DIVISION HAS IMPLEMENTED A CALL QUALITY ASSURANCE SOFTWARE THAT TRACKS ALL QUALITY ASSURANCE REVIEWS AND ALLOWS SUPERVISORS AND TELECOMMUNICATORS TO SEE QUALITY ASSURANCE REVIEW RESULTS, INCLUDING THE ABILITY TO LISTEN TO THE ASSOCIATED AUDIO DURING CALENDAR YEAR 25. 365 CALLS FOR SERVICE COVERING ALL TELECOMMUNICATORS WERE REVIEWED FOR QUALITY, INDICATING THAT THE QUALITY ASSURANCE PROGRAM HAS BEEN MORE FULLY IMPLEMENTED. FURTHER FURTHER, A REVIEW OF ALL 2025 MONTHLY ACTIVITY REPORTS FOUND THAT QUALITY ASSURANCE TRENDS WERE REGULARLY DISCUSSED WITH STAFF, INCLUDING SPECIFIC TOPICS OR AREAS OF IMPROVEMENT. SO IN SUMMARY, ALL FOUR OF THE RECOMMENDATIONS WE ISSUED IN THIS AUDIT WERE WE CONSIDER TO BE IMPLEMENTED. NOW, WE DON'T PLAN TO DO ANY ADDITIONAL FOLLOW UP ON THIS TOPIC ON THIS REPORT. >> THANK YOU. ANY QUESTIONS FOR MADISON? GO AHEAD. COUNCIL MEMBER HOLLAND. >> EXCELLENT REPORT. THANK YOU. GO BACK TO THE ABANDONED CALL SLIDE. DID I UNDERSTAND THAT 90% OF ABANDONED CALLS GET A CALL BACK? >> YES, SIR. >> SO TELL ME WHAT THAT CALLBACK LOOKS LIKE. YOU KNOW. HEY, YOU CALL 911. WHY DID YOU CALL 911? >> YEAH. I WOULDN'T WANT TO SPEAK UNLESS YOU WANT TO. I THINK THAT'S ESSENTIALLY WHAT HAPPENS. AND THEY. WAS IT AN ACCIDENT? A LOT OF THE ABANDONED CALLS ARE REALLY JUST DUE TO LIKE A ISSUE WITH THE PHONE SERVICE OR THEIR REPEAT CALLERS WHO MAY HAVE SOME SORT OF MENTAL HEALTH ISSUE AND THEY'RE CALLING. YEAH. SO MOST OF THEM ARE NOT TRUE EMERGENCIES, BUT THE DIVISION [00:35:01] IS REQUIRED TO CALL THEM BACK GENERALLY UNLESS THEY KNOW, HEY, THIS IS A PHONE NUMBER THAT IT JUST CALLS REGULARLY. REGULARLY. YEAH, YEAH. >> PRANK CALLS. >> I'M SURE THAT COULD HAPPEN. >> OKAY. VERY GOOD. THANK YOU FOR THE REPORT. YOU'RE WELCOME. THANK YOU. MAYOR. >> I WAS THINKING THAT TOO. ANY OTHER QUESTIONS FOR MADISON? OKAY. BEFORE WE MOVE FORWARD, DO YOU NEED A WATER OR ANYTHING? >> I DON'T THINK SO. WE'RE [D. ID 26-1189 Receive a report, hold a discussion, and give staff direction regarding Audit Project 026-Wastewater System Operations: Collections and Reclamation Follow-Up Review. [Estimated Presentation/Discussion Time: 15 minutes]] ALMOST DONE. >> ALL RIGHT. WE'LL MOVE ON TO WORK. SESSION D I'D 261189 RECEIVE A REPORT. HOLD DISCUSSION GIVE STAFF DIRECTION REGARDING AUDIT PROJECT 026 WASTEWATER SYSTEM OPERATIONS COLLECTIONS AND RECLAMATION FOLLOW UP REVIEW. >> ALL RIGHT. MADISON DENTON, CITY AUDITOR FOR THOSE OF US JOINING US RIGHT NOW. AND THIS IS A FOLLOW UP REVIEW ON THE WASTEWATER SYSTEM OPERATIONS AUDIT THAT WE ORIGINALLY ISSUED IN APRIL AND MAY OF 2022. AND AND TWO REPORTS WHICH COVERED WASTEWATER TREATMENT PROCESSES, INCLUDING THE RATE STRUCTURE, PRE TREATMENT PROGRAM, COMPLIANCE AND DISCHARGE QUALITY REPORTING, WASTEWATER COLLECTION LINE MAINTENANCE AND RECLAMATION, INFRASTRUCTURE PLANNING AND MAINTENANCE. KIND OF SIMILAR TO THE DME ONE I HAVE. OH, SORRY, I'VE KIND OF A VAGUE GENERAL OVERVIEW OF WHAT IS THE WASTEWATER SYSTEM. SO WASTEWATER IS THE WATER THAT'S BEEN USED FOR RESIDENTIAL, COMMERCIAL OR INDUSTRIAL PURPOSES. THIS USAGE ADDS ADDS POLLUTANTS TO THE WATER SUCH AS HUMAN WASTE, FOOD AND CHEMICALS THAT CAN DAMAGE THE ENVIRONMENT. WATER USERS ARE BILLED FOR THIS USAGE BY ESTIMATING HOW MUCH WATER THEY USE, HOW MUCH OF THE USED WATER THEY PUT BACK INTO THAT WASTEWATER SYSTEM, AND HOW DIFFICULT IT IS TO CLEAN THAT WATER. SOME COMMERCIAL OR INDUSTRIAL CUSTOMERS ARE REQUIRED BY THE CITY TO PRETREAT OR CLEAN THEIR USED WATER BEFORE IT ENTERS THE COLLECTION SYSTEM. DUE TO THE HIGH LEVELS OF POLLUTANTS CREATED BY THOSE CUSTOMERS TO ENSURE THAT THEY'RE MEETING THESE REQUIREMENTS, THE CITY MUST REGULARLY MONITOR CUSTOMER POLLUTANT LEVELS AND ENSURE THE PRETREATMENT IS WORKING. THE COLLECTION SYSTEM IS AN INTERCONNECTED SERIES OF PIPES SPREAD THROUGHOUT THE CITY UNDERGROUND THAT MOVES THIS USED WATER FROM WHERE IT WAS USED TO A CENTRAL LOCATION WHERE IT CAN BE FURTHER CLEANED. IT'S CRITICAL THAT THESE PIPES ARE MAINTAINED TO ENSURE THE WASTEWATER DOES NOT ENTER THE ENVIRONMENT BEFORE IT'S CLEANED, OR IMPACT THE ENVIRONMENT IN BAD WAYS. FINALLY, AT THE RECLAMATION PLANT, WASTEWATER IS TREATED TO REMOVE SOLIDS, CHEMICALS AND OTHER POLLUTANTS BEFORE IT'S DISCHARGED BACK INTO THE ENVIRONMENT. PER STATE REGULATIONS, THE CITY MUST ENSURE THAT THE PLANT HAS THE CAPACITY TO TREAT ALL THE USED WATER BEING COLLECTED AND THAT THE EQUIPMENT IS MAINTAINED TO ENSURE THAT THIS CAPACITY DOES NOT SIGNIFICANTLY DROP. SO, BEGINNING WITH THE RATE STRUCTURE, INDUSTRY BASED BEST PRACTICES SUGGEST WASTEWATER RATES SHOULD ALLOCATE TREATMENT COSTS TO CUSTOMERS BASED ON THEIR IMPACT TO THE WASTEWATER SYSTEM. THE ORIGINAL AUDIT FOUND THAT THE CITY'S WASTEWATER RATE STRUCTURE WAS DESIGNED PER BEST PRACTICES TO INCLUDE A VOLUMETRIC CHARGE, AS WELL AS FIXED CUSTOMER TYPE CHARGES AND STRENGTH SURCHARGES FOR COMMERCIAL, INDUSTRIAL AND WHOLESALE CUSTOMERS THAT HAD HIGHER THAN NORMAL IMPACTS. HOWEVER, COMMERCIAL, INDUSTRIAL AND WHOLESALE WASTEWATER CUSTOMERS HAD HISTORICALLY NOT BEEN BILLED FOR WASTEWATER STRENGTH SURCHARGES, AND SOME COMMERCIAL AND WHOLESALE CUSTOMERS WERE NOT REGULARLY TESTED FOR THE STRENGTH OF THEIR WASTEWATER, WHICH IS THE BASIS OF THEIR BILLING. FURTHERMORE, SOME COMMERCIAL AND SOME COMMERCIAL INDUSTRIAL CUSTOMERS HAD BEEN INACCURATELY BILLED OR NOT BUILD A MONTHLY SURCHARGE FOR BEING PART OF THE CITY'S PRE TREATMENT PROGRAM. THERE WERE SOME BILLING ISSUES SINCE THE ORIGINAL AUDIT, THE ENVIRONMENTAL SERVICES AND SUSTAINABILITY DEPARTMENT ADOPTED A STANDARD OPERATING PROCEDURE THAT OUTLINES THE WASTEWATER STRENGTH TESTING PROCESS, INCLUDING COMMUNICATING ANY APPROPRIATE SURCHARGES TO THE CUSTOMER SERVICE DIVISION, HELPING TO ENSURE THAT THOSE INACCURACIES ARE AVOIDED AND ALL CUSTOMERS ARE BILLED PER THE ESTABLISHED RATE ORDINANCE. IN ADDITION, THE CITY IS CURRENTLY ASSESSING ITS WASTEWATER RATE STRUCTURE, WHICH WILL FURTHER ENSURE THAT COSTS ARE FAIRLY ALLOCATED TO DIFFERENT CUSTOMER TYPES. FURTHER, THE ORIGINAL AUDIT FOUND THAT THE CITY'S PRETREATMENT AND RECLAMATION PROCESSES GENERALLY ENSURE THAT THE WATER DISCHARGED BACK INTO THE ENVIRONMENT MEETS STATE REGULATORY REQUIREMENTS, INCLUDING TIMELY MONITORING USERS FOR LOCAL LIMIT COMPLIANCE, ESTABLISHING A FATS, OILS, AND GREASE CONTROL PROGRAM. YOU MIGHT HAVE HEARD OF FOG. THAT'S WHAT IT STANDS FOR. AND MEETING AND ACCURATELY REPORTING ON WASTEWATER DISCHARGE QUALITY STANDARDS. FOR THESE REASONS, WE DIDN'T ISSUE ANY RECOMMENDATIONS IN THIS AREA, AND NO FOLLOW UP WAS NEEDED. FOR COLLECTION LINE MAINTENANCE. THE ORIGINAL AUDIT FOUND THAT WASTEWATER LINE REPAIRS WERE GENERALLY COMPLETED TIMELY. HOWEVER, REPAIR WORK ORDERS OFTEN REMAIN OPEN FOR A LONG TIME AFTER REPAIRS WERE COMPLETED. IN ADDITION, THE COLLECTIONS DIVISION HAD DEVELOPED SOME FLOW CHARTS FOR COLLECTION LINE REPAIR AND MAINTENANCE WORK. HOWEVER, THEY GENERALLY DID NOT ADDRESS WHAT DOCUMENTATION [00:40:01] SHOULD BE INCLUDED IN A WORK ORDER, SUCH AS PICTURES AND VIDEOS, AS WELL AS EVIDENCE OF RIGHT OF WAY PERMITS AND UTILITY LINE LOCATES THAT ARE NECESSARY FOR UNDERGROUND LINE WORK. SINCE THE ORIGINAL AUDIT, THE DIVISION HAS CREATED STANDARD OPERATING PROCEDURES THAT INDICATE WHAT INFORMATION IS REQUIRED FOR WORK ORDERS AND HOW SUPERVISORS SHOULD SPOT CHECK WORK ORDERS TO ENSURE QUALITY STANDARDS ARE MET. WHILE THE FOLLOW UP REVIEW FOUND THAT WORK ORDERS GENERALLY INCLUDE ALL THE REQUIRED INFORMATION, QUALITY SPOT CHECKS DID NOT APPEAR TO BE COMPLETED CONSISTENTLY. THE WORK ORDER COMPLETION TIMELINESS HAS SIGNIFICANTLY IMPROVED, AS ILLUSTRATED IN THE TABLE. FURTHER, DURING THE ORIGINAL AUDIT, THE WASTEWATER DEPARTMENT WAS MANAGING SOME CAPITAL IMPROVEMENT PROJECTS INTERNALLY. IN 2022. THESE PROJECTS DID NOT CONSISTENTLY HAVE NEEDED DOCUMENTATION SUCH AS RIGHT OF WAY PERMITS, STREET MORATORIUM INFORMATION, AND UTILITY LINE LOCATE INFORMATION. SINCE THE ORIGINAL AUDIT, WASTEWATER HAS LARGELY STOPPED CONSTRUCTING CAPITAL COLLECTION LINE CAPITAL PROJECTS INTERNALLY, AND INSTEAD, THESE PROJECTS ARE MANAGED BY THE CITY'S CAPITAL PROJECTS DEPARTMENT, WHICH HAS TRANSFERRED THE RISK. SIMILARLY, THE ORIGINAL AUDIT FOUND THAT PROJECT LABOR AND MATERIAL COSTS FOR WASTEWATER COLLECTION CAPITAL PROJECTS WERE NOT ADEQUATELY RECONCILED, POTENTIALLY RESULTING IN CAPITAL PROJECT COSTS BEING OVER OR UNDER. UNDERSTATED. SINCE THEN, THE WATER UTILITY HAS PURCHASED ADDITIONAL MODULES FOR ITS ASSET MANAGEMENT SYSTEM THAT SHOULD ALLOW BOTH THE WATER AND WASTEWATER DEPARTMENTS TO MORE EASILY RECONCILE MATERIALS USED IN PROJECTS AND TRACK LABOR HOURS BY WORK ORDER AND PROJECTS. LASTLY, THE CITY OPERATES TWO WATER RECLAMATION PLANTS AS PART OF ITS WASTEWATER UTILITY. THESE PLANTS MUST BE ADEQUATELY MAINTAINED, HAVE ADEQUATE RECLAMATION CAPACITY AND BE APPROPRIATELY PERMITTED IN ORDER TO ENSURE THE WASTEWATER DOESN'T NEGATIVELY IMPACT PUBLIC HEALTH. THE ORIGINAL AUDIT FOUND THAT AN EFFECTIVE PREVENTATIVE MAINTENANCE PROGRAM HAD BEEN ESTABLISHED FOR RECLAMATION PLANT EQUIPMENT. THE WORK ORDERS DID NOT GENERALLY INCLUDE DETAILS ABOUT WHAT WORK WAS PERFORMED OR EVIDENCE THAT THERE WERE QUALITY SPOT CHECKS BEING PERFORMED. THE WASTEWATER RECLAMATION DIVISION IMPLEMENTED STANDARD OPERATING PROCEDURES FOR ITS RECLAMATION PLANT WORK ORDERS IN APRIL OF 2025, WHICH INCLUDED A REQUIREMENT FOR SUPERVISORS TO SPOT CHECK COMPLETED WORK ORDERS TO ENSURE QUALITY STANDARDS WERE MET. ALL RECLAMATION STAFF RECEIVED TRAINING ON THESE PROCEDURES AS OF MAY OF 2026, AND WORK ORDER SPOT CHECKS APPEAR TO BE COMPLETED APPROPRIATELY BASED ON OUR REVIEW. IN ADDITION, WASTEWATER HAD DEVELOPED A REASONABLE SHORT TERM DEMAND FORECASTING PROCESS AND HAD JUST BEGUN DEVELOPING ITS FIRST WASTEWATER MASTER PLAN TO HELP ENSURE THE ANTICIPATED CAP CAPACITY EXPANSION NEEDS ARE MET THROUGH PLANT IMPROVEMENTS AND ARE ADEQUATELY FUNDED. SO THEY WERE DOING THAT. THEY JUST STARTED DOING THAT IN 2022. WE ALSO FOUND IN 22 THAT WHILE THE CITY WAS PERMITTED TO DIVERT 6 MILLION GALLONS OF TREATED WATER TO ITS REUSE SYSTEM, ITS WATER THAT WAS WASTE WATER, WASTEWATER, IT'S BEEN TREATED IT'S NOT NECESSARILY POTABLE AT THAT POINT, BUT IT CAN STILL BE USED FOR SOME PURPOSES. THERE WAS NO PLAN TO KIND OF EXPAND THAT SYSTEM, EVEN THOUGH WE THERE WERE 6 MILLION GALLONS WE COULD USE, BUT HALF, HALF A MILLION WAS ACTUALLY BEING USED. AND SO THE FIRST SINCE THE ORIGINAL AUDIT, THE FIRST WASTEWATER MASTER PLAN WAS ADOPTED BY THE CITY COUNCIL IN MAY OF 24 AND REUSE MASTER PLAN WAS DEVELOPED BY CONSULTANT IN 2025, HELPING TO ENSURE THAT THE CITY'S WASTEWATER COLLECTION AND TREATMENT CAPACITY REMAINS ADEQUATE AS ITS POPULATION CONTINUES TO GROW FURTHER. THE ORIGINAL AUDIT FOUND THAT THE CITY'S WATER UTILITY, WHICH ENCOMPASSES BOTH WATER AND WASTEWATER OPERATIONS, USE TWO DIFFERENT WORK ORDER ASSET MANAGEMENT SYSTEMS FOR ITS VERTICAL AND HORIZONTAL INFRASTRUCTURE, SO THE LINES AND THE PLANT. WHILE BOTH WORK ORDER SYSTEMS WERE INDIVIDUALLY EFFECTIVE, WE RECOMMENDED CONSOLIDATING THE TWO SYSTEMS TO REDUCE SYSTEM COSTS AND IMPROVE WORK ORDER EFFICIENCY OVERALL. AND WHILE THE WASTEWATER DEPARTMENT HAS NOT YET CONSOLIDATED THE TWO SYSTEMS, THEY'RE WORKING THERE. THE WORK TO MOVE TO JUST ONE SYSTEM HAS BEGUN. SO IN SUMMARY, OF THE 11 ORIGINALLY ISSUED RECOMMENDATIONS, WE FOUND THAT NINE WERE IMPLEMENTED WITH ONE REMAINING IN PROGRESS, AND WE PLAN TO CONDUCT AN INFORMAL FOLLOW UP REVIEW IN PROBABLY 2028 TO JUST MAKE SURE THAT THAT'S COMPLETE. >> OKAY. THANK YOU. MADISON, ARE THERE ANY QUESTIONS FROM YOU ALL? YOU'RE GOOD TO GO. AWESOME. THANK YOU SO MUCH. >> THANK YOU. >> BEFORE WE HEAD INTO CLOSED SESSION, I GUESS JUST FOR THE PUBLIC TO KEEP IN MIND, WE'RE GOING TO, IF YOU'RE WATCHING ALONG AT HOME OR HERE, WE'RE GOING TO GO INTO CLOSED SESSION, AND THEN WE'RE PROBABLY GOING TO HAVE A TEN MINUTE BREAK, GO INTO OUR SPECIAL SESSION AND TAKE CARE OF EVERYTHING WE CAN BEFORE DINNER TIME, AND THEN WE WILL RECONVENE ONCE AGAIN AT 630 FOR THE PUBLIC HEARING. THE CITY COUNCIL WILL NOW CONVENE A CLOSED MEETING AT 2:45 P.M. TO [1. Closed Meeting:] [00:45:04] DELIBERATE THE CLOSED MEETING. ITEMS SET FORTH ON THE AGENDA, WHICH INCLUDES THE FOLLOWING. A ID 261687 DELIBERATIONS REGARDING CERTAIN PUBLIC POWER UTILITY COMPETITIVE MATTERS UNDER TEXAS GOVERNMENT CODE SECTION 551.086 CONSULTATION WITH ATTORNEYS UNDER TEXAS GOVERNMENT CODE, SECTION 551.071 AND ID 261736. CONSULTATION WITH ATTORNEYS UNDER TEXAS GOVERNMENT CODE,CITD FROM THE CLOSED MEETING AT 3:37 P.M. AND NO OFFICIAL ACTION WAS [AFTER DETERMINING THAT A QUORUM IS PRESENT, THE SPECIAL 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:] TAKEN. SEEING THAT QUORUM IS PRESENT, WE'RE GOING TO START THE SPECIAL CALLED MEETING AS WELL AT 3:38 P.M. BEFORE WE GET STARTED, IF YOU WOULD STAND, WE CAN DO A PLEDGE TO THE FLAG AND AMERICAN FLAG AND TEXAS FLAG. 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, ONE AND INDIVISIBLE. [1. CONSENT AGENDA] >> WE'RE GOING TO MOVE FORWARD WITH THE CONSENT AGENDA, WITH THE EXCEPTIONS OF ITEM J, WHICH HAVE BEEN PULLED, AND Z, WHICH IS INDIVIDUAL CONSIDERATION. I SEE A MOTION FROM COUNCIL MEMBER FERRY. >> I MOTION TO APPROVE. >> ALL RIGHT. THERE'S A MOTION TO APPROVE WITH THE EXCEPTION OF ITEM J AND Z. OR IS THERE A SECOND? SECOND FROM COUNCIL MEMBER RUMOHR? I'LL SECOND AND WE WILL VOTE ON THE SCREEN. THAT PASSES FOR ZERO. WE'LL NOW [Z. ID 26-1456 Consider approval of a resolution of the City of Denton, supporting TxDOT proposed alignments B and B2 for the Denton County Outer Loop project in Denton County, Texas.] GO ON TO CONSENT AGENDA Z. I DON'T BELIEVE THERE'S A PRESENTATION REQUESTED. IT'S JUST AN INDIVIDUAL VOTE. IS THAT CORRECT? COUNCIL MEMBER YES. OKAY. SEE A MOTION FROM COUNCIL MEMBER RUMOHR. >> I WAS WANTING TO ACTUALLY VOTE NO ON THIS ONE. SO IN LIEU OF US MISSING TWO PEOPLE TODAY, I WOULD INSTEAD LIKE TO MOTION TO POSTPONE THIS TO A DATE CERTAIN OF OCTOBER 27TH, 2026. OKAY. WHICH IS OUR NEXT MEETING. >> THE MOTION DISAPPEARED AND SO MAKE THAT AGAIN. SO THERE'S A MOTION TO DELAY THIS TO OCTOBER 20TH. POSTPONE IT TILL OCTOBER 27TH. I'LL GO AHEAD AND SECOND THAT AND WE'LL VOTE ON THE SCREEN. ALL RIGHT. AND THAT PASSED FOUR ZERO. PUBLIC HEARING IS GOING TO COME BACK AT 6:30 P.M. SO NEXT UP IS [A. ID 26-1591 Consider adoption of an ordinance of the City of Denton determining the public use, need, and necessity for the acquisition of various: (i) wastewater easements, (ii) temporary construction easements, and (iii) access easements generally located along Milam Creek, beginning at Interstate 35 and Ganzer Road, eastward to Clear Creek, and beyond FM 428/East Sherman Drive, north of Hartlee Field Road, situated in the John Ayres Survey, Abstract No. 2, Ignacio De Los Santos Coy Survey, Abstract No. 212, Felix McKettrick Survey, Abstract No. 846, John McNeill Stewart Survey, Abstract No. 1150, Edley C. Pritchett Survey Abstract No. 1025, John A. Burn Survey, Abstract No. 130, William Roark Survey, Abstract No. 1095, E. Meyers Survey, Abstract No. 871, Levi Meyers Survey, Abstract No. 853, Victor Ende Gailor Survey, Abstract No. 452, J. Cheek Survey, Abstract No. 227 and the J. Douthit Survey, Abstract No. 329, all in the City and County of Denton, Texas, and more particularly described in the attached Exhibit(s) “A” (collectively, the “Property Interest(s)”); authorizing the City Manager and City Attorney, to acquire the Property Interests by agreement if possible, including making all offers required by law; authorizing the use of the power of eminent domain to condemn the Property Interests if agreement cannot be reached; authorizing the City Attorney to file eminent domain proceedings if necessary; authorizing the expenditure of funding; making findings; providing a savings clause; and providing an effective date..] ITEMS FOR INDIVIDUAL CONSIDERATION. CONSIDERATION OF THE USE OF EMINENT DOMAIN TO CONDEMN REAL PROPERTY INTERESTS. THAT'S ID 261591. CONSIDER ADOPTION OF AN ORDINANCE OF THE CITY OF DENTON DETERMINING THE PUBLIC USE, NEED AND NECESSITY FOR THE ACQUISITION OF VARIOUS WASTEWATER EASEMENTS, TEMPORARY CONSTRUCTION EASEMENTS, AND ACCESS EASEMENTS GENERALLY LOCATED ALONG LONG CREEK. I NEED TO READ ALL OF IT. OKAY. THERE IS A SPECIAL MOTION THAT HAS TO BE READ FOR THIS. JUST KEEP THAT IN MIND WITH WHOEVER DOES MAKE THAT MOTION. IS THERE A PRESENTATION ON THIS? YES. OKAY. OH, HI. >> GOOD EVENING, MAYOR COUNCIL. I'M ANGEL DELORY, SENIOR REAL ESTATE SPECIALIST WITH DEVELOPMENT SERVICES, REAL ESTATE DEPARTMENT. ALSO WITH ME TONIGHT IS CAPITAL PROJECTS. THEY'RE HERE TO ANSWER ANY QUESTIONS YOU MIGHT HAVE ABOUT PROJECT DESIGN, ALIGNMENT OR CONSTRUCTION. THE ITEM BEFORE YOU TODAY IS ABOUT WASTEWATER INFRASTRUCTURE AND THE CLEAR CREEK INTERCEPTOR PROJECT. THIS PROJECT IS PART OF THE CITY OF DENTON'S WASTEWATER MASTER PLAN. [00:50:03] IT INCLUDES BUILDING APPROXIMATELY SEVEN AND A HALF MILES OF NEW SEWER LINE. IT WILL AFFECT TEN PARCEL OWNERS AND INCLUDE PURCHASING 41 EASEMENTS AND 2024. COUNCIL APPROVED AN ORDINANCE AUTHORIZING AGREEMENT WITH KIMLEY-HORN FOR THE DESIGN AND ENGINEERING OF THE INTERCEPTOR. THIS PROJECT REFLECTS YEARS OF COORDINATED PLANNING TO EXPAND THE WASTEWATER CAPACITY IN NORTH DENTON, AND REQUIRES THESE ACQUISITIONS TO EFFICIENTLY FLOW ROOT ROOT FLOWS TO THE FUTURE TREATMENT PLANT. THIS IS A $90 MILLION PROJECT, WITH THE CURRENT FUNDING OF JUST OVER $21 MILLION. THIS ITEM BEFORE YOU IS TO PURCHASE EASEMENTS NEEDED FOR THE CLEAR CREEK INTERCEPTOR PROJECT. THESE YEARS OF COORDINATED PLANNING ARE HIGHLIGHTED HERE. BEGINNING IN 1998, THERE WAS A PRELIMINARY REPORT REPORT ESTABLISHED THAT CREATED AN IDENTIFIED A NEED FOR A NEW TREATMENT PLANT FROM 2002 TO 2003. THIS PRELIMINARY REPORT WAS COMPLETED AND THEY IDENTIFIED OR IT SUPPORTED THE FACT THAT WE GOT NEW PERMITS. IT ALSO PUT A PAUSE ON THE PROJECT DUE TO DEVELOPMENTAL CHANGES IN 2023, THE CITY ADOPTED THE WASTEWATER MASTER PLAN, HIGHLIGHTING BOTH THE INTERCEPTOR AND THE PLANT FROM 2024 TO 2026, TWO ORDINANCE WERE ADOPTED. THIS WAS WITH TWO DIFFERENT DESIGN COMPANIES ONE WITH COROLLA ENGINEERS FOR THE DESIGN AND ENGINEERING OF THE PLANT, AND ONE WITH KIMLEY-HORN FOR THE DESIGN AND ENGINEERING OF THE INTERCEPTOR. 2026 BRINGS US TO TODAY, WHERE WE ARE ASKING COUNCIL FOR CONSENT, FOR EMINENT DOMAIN AUTHORITY, FOR THE ACQUISITION NEEDED FOR THE PROPERTY INTEREST FOR THE INTERCEPTOR GOING FORWARD TO 2028, THE PLANT IS ANTICIPATED TO BEGIN CONSTRUCTION WITH AN ANTICIPATED COMPLETION BETWEEN 2031 AND 2032. THE INTERCEPTOR IS EXPECTED TO BE COMPLETED BY THE TIME THE PLANT IS OPEN. THE PROJECT IS LOCATED ALONG MILAM CREEK, STARTING HERE AT I-35 IN CANCER. MOVING EASTWARD WHERE IT JOINS HERE, CLEAR CREEK, AND THEN IT EXTENDS FURTHER EASTWARD PAST FM 428. THERE IS CURRENTLY A LACK OF SEWER CAPACITY NORTH OF LOOP 288. STAFF HAS RECEIVED A LARGE NUMBER OF CALLS FROM DEVELOPERS IN THIS AREA WAITING FOR THE INTERCEPTOR TO BE DEVELOPED. ALSO, THERE IS EXISTING DEVELOPMENT AGREEMENTS WITH THE CONDITION THAT THE CITY COMPLETE THE INTERCEPTOR. THIS INCLUDES CRAVER RANCH AND SUNDANCE. THE CITY PLANS TO BEGIN CONSTRUCTION ON THE INTERCEPTOR QUARTER THREE OF 2027, WITH AN EXPECTED COMPLETION DATE OF QUARTER FOUR, 2029. YOUR APPROVAL OF THIS ITEM WILL AUTHORIZE THE CITY MANAGER AND THE CITY ATTORNEY TO ACQUIRE THE NECESSARY PROPERTY INTERESTS, INCLUDING MAKING OFFERS REQUIRED BY LAW. IN THE EVENT STAFF IS NOT ABLE TO REACH AN AGREEMENT WITH THE OWNER. THIS ITEM WILL AUTHORIZE THE CITY ATTORNEY TO FILE EMINENT DOMAIN PROCEEDINGS TO ACQUIRE THE PROPERTY INTEREST. IF NECESSARY. STAFF RECOMMENDS THE ADOPTION OF THIS ORDINANCE. UPON READING OF THE MOTION, STAFF WILL DISPLAY THE SUBJECT PROPERTIES. >> THANK YOU SO MUCH. ARE THERE ANY QUESTIONS FOR STAFF? OKAY. SEEING NONE, THERE IS A MOTION FROM COUNCIL MEMBER PERRY. >> THANK YOU. I MOVE THAT THE CITY OF DENTON, AFTER HAVING MADE THE OFFERS REQUIRED BY STATE LAW, USE THE POWER OF EMINENT DOMAIN IF NEEDED, TO ACQUIRE VARIOUS WASTEWATER EASEMENTS, TEMPORARY CONSTRUCTION EASEMENTS, AND ACCESS EASEMENTS GENERALLY LOCATED ALONG MILAM CREEK BEGINNING AT INTERSTATE 35 AND CANCER ROAD EASTWARD TO CLEAR CREEK AND BEYOND. FM 428 SLASH EAST SHERMAN DRIVE, NORTH OF HARTLEY FIELD ROAD, SITUATED IN THE JOHN AYRES SURVEY. ABSTRACT NUMBER TWO. IGNACIO DE LOS [00:55:03] SANTOS COY SURVEY ABSTRACT NUMBER 2.12. FELIX MCKITTRICK, SURVEY ABSTRACT NUMBER 846. JOHN MCNEIL STEWART SURVEY ABSTRACT NUMBER 1150. ED LEE C PRITCHETT, SURVEY ABSTRACT NUMBER 1025. JOHN A BURN SURVEY ABSTRACT NUMBER 130. WILLIAM ROURKE, SURVEY ABSTRACT NUMBER 1095. EAST MYERS SURVEY ABSTRACT NUMBER 871. LEVI MYERS, SURVEY ABSTRACT NUMBER 853. VICTOR AND A SURVEY ABSTRACT NUMBER 452 J CHEEK SURVEY ABSTRACT NUMBER TWO, TWO, SEVEN AND J. DOUTHITT SURVEY ABSTRACT NUMBER 329. ALL IN THE CITY AND COUNTY OF DENTON, TEXAS, AND MORE PARTICULARLY DESCRIBED IN EXHIBIT A TO THE ORDINANCE NOW UNDER CONSIDERATION AND ON THE SCREEN TO BE DISPLAYED TO THE AUDIENCE, ALL OF WHICH ARE FOR A VALID PUBLIC USE NECESSARY FOR THE CLEAR CREEK INTERCEPTOR PROJECT TO OPTIMIZE AND CONVEY FLOWS FROM THE GROWING CLEAR CREEK BASIN TO SERVE THE PUBLIC AND CITIZENS OF THE CITY OF DENTON, AND THAT THE FIRST RECORD VOTE TAKEN ON THIS ORDINANCE APPLIES TO ALL UNITS OF PROPERTY TO BE CONDEMNED. >> THANK YOU. >> THE NEXT SEVERAL SLIDES ARE INCLUDED IN YOUR BACKUP, SO I'M GOING TO MOVE THROUGH THEM QUICKLY. SOME OF THESE EXHIBITS ARE QUITE EXTENSIVE, SO THEY SPAN SEVERAL SLIDES. WHEN THEY DO SPAN SEVERAL SLIDES YOU'LL HEAR ME SAY CONTINUED. PARCEL ONE A WASTEWATER EASEMENT ONE A CONTINUED PARCEL ONE A TEMPORARY CONSTRUCTION EASEMENT ONE A CONTINUED ONE. B WASTEWATER EASEMENT ONE. B TEMPORARY CONSTRUCTION EASEMENT ONE C WASTEWATER EASEMENT ONE C TEMPORARY CONSTRUCTION EASEMENT ONE D WASTEWATER EASEMENT ONE D CONTINUED ONE D TEMPORARY CONSTRUCTION EASEMENT ONE D CONTINUED ONE D CONTINUED ONE D ACCESS EASEMENT TWO WASTEWATER EASEMENT TWO TEMPORARY CONSTRUCTION EASEMENT THREE. WASTEWATER EASEMENT THREE TEMPORARY CONSTRUCTION EASEMENT THREE. ACCESS EASEMENT FOUR. WASTEWATER EASEMENT FOUR. TEMPORARY CONSTRUCTION EASEMENT FIVE. WASTEWATER EASEMENT FIVE. CONTINUED FIVE. CONTINUED FIVE. TEMPORARY CONSTRUCTION EASEMENT FIVE. CONTINUED FIVE. CONTINUED FIVE. ACCESS EASEMENT FIVE. CONTINUED FIVE. CONTINUED SIX. WASTEWATER EASEMENT SIX. TEMPORARY CONSTRUCTION EASEMENT SEVEN. WASTEWATER EASEMENT SEVEN. TEMPORARY CONSTRUCTION EASEMENT SEVEN. CONTINUED SEVEN. ACCESS EASEMENT SEVEN. CONTINUED EIGHT. WASTEWATER EASEMENT EIGHT. TEMPORARY CONSTRUCTION EASEMENT EIGHT. CONTINUED EIGHT. ACCESS EASEMENT NINE. WASTEWATER EASEMENT NINE. TEMPORARY CONSTRUCTION EASEMENT TEN. WASTEWATER EASEMENT TEN. TEMPORARY CONSTRUCTION EASEMENT AND TEN TEMPORARY CONSTRUCTION EASEMENT CONTINUE. THIS CONCLUDES MY PRESENTATION. ANY FURTHER QUESTIONS FOR ME? >> THANK YOU. THERE WAS A MOTION FROM COUNCIL MEMBER TERRY. COUNCIL MEMBER RUMOHR. >> I'LL SECOND. >> ANY DISCUSSION. ALL RIGHT. WE WILL GO AHEAD AND VOTE ON THE SCREENS. MOTION PASSES FOR ZERO. THANK YOU. THANK YOU. JUST AS A REMINDER, UNDER FOR ITEMS FOR INDIVIDUAL CONSIDERATION, ITEM A, DUE TO ITS NEED FOR A SUPERMAJORITY IS GOING TO BE DELAYED UNTIL THE 27TH OF OCTOBER MEETING. SO WE'LL CALL ITEM B, I'D 260885. [B. ID 26-0885 Consider appointments to the Main Street Advisory Board.] CONSIDER APPOINTMENTS TO THE MAIN STREET ADVISORY BOARD. >> ALL RIGHT. GOOD AFTERNOON MAYOR PRO TEM AND COUNCIL KRISTEN PULIDO, MAIN STREET PROGRAM MANAGER WITH THE OFFICE OF ECONOMIC DEVELOPMENT. TODAY YOU'LL BE CONSIDERING APPOINTMENTS TO THE MAIN STREET ADVISORY BOARD. ON JUNE 16TH, CITY COUNCIL APPROVED THE CREATION OF THE CITY OF DENTON MAIN STREET ADVISORY BOARD TO ADVISE CITY COUNCIL ON MATTERS RELATING TO DOWNTOWN REVITALIZATION, ECONOMIC DEVELOPMENT, DESIGN IMPROVEMENTS, PROMOTION STRATEGIES AND PRESERVATION EFFORTS. ON SEPTEMBER 4TH, [01:00:02] STAFF PRESENTED A PROPOSED BOARD SLATE THROUGH AN INFORMAL STAFF REPORT. MEMBERS WILL SERVE TWO YEAR TERMS AND SERVE UP TO THREE CONSECUTIVE TERMS. A TOTAL OF 11 APPLICATIONS WERE SUBMITTED, WITH EIGHT APPLICANTS ELIGIBLE FOR EITHER VOTING OR EX OFFICIO POSITIONS. THE PROPOSED MAIN STREET BOARD SLATE IS PRESENTED BY MEMBERSHIP CATEGORY. CONSISTENT WITH THE BOARD'S ESTABLISHED COMPOSITION, THE NOMINEES FOR EACH CATEGORY AND IDENTIFY AND IDENTITY THE INDIVIDUALS BEING RECOGNIZED RECOMMENDED FOR APPOINTMENT. SO FIRST, FOR THE SEAT OF HISTORIC PRESERVATION. THE NOMINEE IS PEGGY RIDDLE, THE DIRECTOR OF DENTON COUNTY OFFICE OF HISTORY AND CULTURE FOR THE GREATER DENTON ARTS COUNCIL SEAT. KRISTIE ODEN, THE EXECUTIVE DIRECTOR FOR THE DOWNTOWN DENTON FOUNDATION. KRISTEN KENDRICK, PRESIDENT OF THE DOWNTOWN DENTON FOUNDATION FOR THE MAIN STREET DISTRICT. PROPERTY OWNER STEVEN SHANNON, OWNER OF KOLO DEVELOPMENT, THE MAIN STREET DISTRICT BUSINESS OWNER. COLIN GRUENWALD, OWNER OF THE PALM TREE BOUTIQUE. THE MAIN STREET, ANOTHER MAIN STREET DISTRICT BUSINESS OWNER. BOB MOSES, CO-OWNER OF BETH MARIE'S OLD FASHIONED ICE CREAM AND FOR THE HOSPITALITY AND TOURISM REPRESENTATIVE, WE HAVE EMILY WRIGHT, THE HOTEL GM FOR HOMEWOOD SUITES, DENTON AND CHARTWELL HOSPITALITY, AS WELL AS THE BOARD CHAIR AND FOR THE EX OFFICIOS. WE ARE STILL PENDING NOMINATIONS BY THE DENTON COUNTY COMMISSIONERS COURT FOR THE DENTON COUNTY REPRESENTATIVE AND JESSICA DOCTOR. JESSICA ROACH WILL BE THE UNIVERSITY REPRESENTATIVE AS SHE'S THE VICE CHANCELLOR FOR NCTC. I'VE STARRED THE APPOINTEES WHO CURRENTLY SERVE OR HAVE PREVIOUSLY SERVED ON THE DOWNTOWN ECONOMIC DEVELOPMENT COMMITTEE AND OR THE DENTON MAIN STREET ASSOCIATION. STAFF RECOMMENDS APPROVAL OF THE NOMINEES TO THE DENTON MAIN STREET ADVISORY BOARD, AND I WILL NOW STAND FOR ANY QUESTIONS. >> DO WE HAVE ANY QUESTIONS? OKAY, BEFORE WE VOTE, THERE'S A SPECIAL THING THAT WE DO. AND I FEEL SO LUCKY BECAUSE THIS IS THE SECOND TIME I GET TO DO IT TODAY. >> IT'S MY FIRST ONE. >> SO WHEN THERE'S A FIRST PRESENTATION, YOU GET TO HAVE AN ELEPHANT. I'LL REPEAT MYSELF AGAIN. I GOT TO DO THIS. I GOT ONE OF THESE WANTS TO SAY IT SITS ON MY MACHINE AT HOME. IT'S THE BEST THING I'VE EVER GOTTEN FROM THE CITY. AND I'VE GOT A. >> LOT OF BUSINESS. >> JUST WANT. >> TO BE CLEAR. >> SO HERE'S YOUR ELEPHANT. >> THANK YOU. >> SAVE IT AS IT'S. >> VERY. >> VERY IMPORTANT. >> THANK YOU. AND WE'LL TAKE A. PICTURE TOGETHER. OKAY. THANK YOU. GOOD JOB. THANK YOU VERY MUCH. THANKS SO MUCH. >> ALL RIGHT. THANK YOU AGAIN FOR THE PRESENTATION. THERE IS A MOTION FROM COUNCIL MEMBER HOLLAND. I WILL SECOND THAT AND WE CAN VOTE ON THE SCREEN. [C. ID 26-1587 Consider adoption of an ordinance of the City of Denton, Texas authorizing the expenditure of funds for the payment of wholesale transmission charges in the total amount of $9,804,564.14 and providing an effective date. The Public Utilities Board recommends approval (5-0).] AND THAT PASSES FOUR ZERO. WE'LL NOW MOVE ON TO ITEM C THAT'S ID 261587. CONSIDER ADOPTION OF AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE EXPENDITURE OF FUNDS FOR THE PAYMENT OF WHOLESALE TRANSMISSION CHARGES IN THE TOTAL AMOUNT OF $9,804,564.14 AND PROVIDING AN EFFECTIVE DATE. >> GOOD AFTERNOON, MAYOR PRO TEM AND CITY COUNCIL MEMBERS MELISSA CUEVAS WITH DME. AND TODAY I HAVE OUR PRESENTATION ON TRANSMISSION CHARGES FOR FISCAL YEAR 2627. SO WE HAVE A TOTAL OF NINE PAYMENTS TOTALING $9.8 MILLION. THESE PAYMENTS ARE REIMBURSING TRANSMISSION SERVICE PROVIDERS FOR OUR USE AND SHARE OF THEIR TRANSMISSION INFRASTRUCTURE. SO THESE ARE ALL THE NET PAYMENTS THAT ARE OVER $100,000. ON THE LEFT HAND SIDE, THE TABLE SHOWS ALL OF THE PAYMENTS THAT STAFF IS ABLE TO AUTHORIZE BECAUSE THEY ARE LESS THAN $100,000. BUT AGAIN, WE ARE REQUESTING AUTHORIZATION FOR THE NINE PAYMENTS ON THE RIGHT HAND SIDE FOR THE $9.8 MILLION FOR THE USE OF TRANSMISSION INFRASTRUCTURE ACROSS THE GRID. AND WITH THAT, I'LL STAND FOR ANY QUESTIONS. >> QUESTION FROM COUNCIL MEMBER RUMOHR. >> I JUST HAVE ONE QUESTION. HOW DID THEY CALCULATE THAT? IS IT BASED ON WE HAVE A CONTRACT WITH SOMEBODY AT A SPECIFIC LOCATION, AND THEN WE SORT OF TRACK THE TRANSMISSION IT TRAVELS THROUGH TO GET HERE. >> AND KIND. >> OF SO A. >> PIECE OF THIS RIGHT IS [01:05:02] ERCOT'S FOR CP CALCULATION. SO WE HAVE THROUGH THE THE PEAK MONTHS OF JUNE THROUGH SEPTEMBER, THEY'LL LOOK AT EACH OF THESE MONTHS, THEY'LL FIND THE HIGHEST PEAK DEMAND HOUR FOR THAT MONTH. AND THEN GO ACROSS ALL OF THE UTILITIES, ALL OF THE COMPANIES AND SEE WHAT OUR LOAD SHARE IS. SO THEY'LL END UP GETTING AN AVERAGE ACROSS THOSE FOUR MONTHS, AND THEY'LL USE THAT TO CALCULATE WHAT WE OWE INTO THIS TRANSMISSION INFRASTRUCTURE. OKAY, SO IT'S CALCULATED THAT WAY. A LOT OF THE THE NINE ARE A LOT OF INVESTOR OWNED UTILITIES, RIGHT? THEY OWN A LOT OF THAT TRANSMISSION TRANSMISSION LINES. AND THERE'S SOME CO-OPS THERE AS WELL. BUT YES, IT'S CALCULATED THAT WAY. >> OKAY. THANK YOU. >> YES, MA'AM. >> ANY OTHER QUESTIONS? SEEING NONE, THERE IS A MOTION FOR COUNCIL MEMBER RUMOHR. >> I'D LIKE TO MOTION APPROVAL. >> COUNCIL MEMBER FERRI. >> SECOND. >> THERE'S A MOTION AND A SECOND. ANY DISCUSSION? SEEING NONE, WE'LL VOTE ON THE SCREEN. AND THAT PASSES FOUR ZERO. THANK YOU. WE'LL NOW CALL ITEM [D. ID 26-1155 Consider adoption of an ordinance of the City of Denton approving an economic development agreement under Chapter 380 of the local government code to promote economic development and to stimulate business activity and economic growth of the City of Denton between the City of Denton and EquipmentShare.com Inc, regarding the expansion of operations and increase in the number of jobs in the City of Denton; authorizing the expenditure of funds therefor in an amount not-to exceed $926,975; and providing an effective date. The Economic Development Partnership Board recommends approval (8-0-2).] D. I'D 261155. CONSIDER ADOPTION OF AN ORDINANCE OF THE CITY OF DENTON APPROVING AN ECONOMIC DEVELOPMENT AGREEMENT UNDER CHAPTER THREE. 80 OF THE LOCAL GOVERNMENT CODE TO PROMOTE ECONOMIC DEVELOPMENT AND TO STIMULATE BUSINESS ACTIVITY AND ECONOMIC GROWTH. THE CITY OF DENTON BETWEEN THE CITY OF DENTON AND EQUIPMENT SHARE.COM, INC. >> GOOD AFTERNOON COUNCIL. MY NAME IS CLAY PARKER. I'M A BUSINESS RECRUITMENT SPECIALIST FOR THE OFFICE OF ECONOMIC DEVELOPMENT. HERE TO PRESENT THE INCENTIVE APPLICATION FOR EQUIPMENT SHARE.COM, INC. SO THE OBJECTIVE TODAY IS TO APPROVE THIS. CHAPTER 380 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT. THE EDB SAW THIS ON SEPTEMBER 30TH, 2026 AND HAD EIGHT EYES AND TWO ABSTENTIONS. SO JUST FOR SOME BACKGROUND, BACK IN MID DECEMBER OF LAST YEAR, THE OFFICE OF ECONOMIC DEVELOPMENT BEGAN PARTICIPATING IN THE SITE SELECTION PROCESS FOR EQUIPMENT SHARES, UPCOMING EXPANSION FOR A SECOND DISTRIBUTION CENTER. ON MARCH 17TH, THEY SUBMITTED AN OFFICIAL INCENTIVE APPLICATION TO CONSIDER THAT EXPANSION WITHIN THE CITY OF DENTON. THE COMPANY ITSELF WAS FOUNDED BACK IN 2015 AND HEADQUARTERED IN COLUMBIA, MISSOURI, AND THEY PROVIDE CONSTRUCTION SYSTEMS, ECOSYSTEM SUPPORT THROUGH SMART JOB TECHNOLOGY, EQUIPMENT RENTAL, RETAIL, AND SERVICE DISTRIBUTION. THEY HAVE OVER 9200 EMPLOYEES AT 430 LOCATIONS ACROSS 45 STATES, AND THEY WERE ONE OF THE 2025 INC. 5000 LIST MEMBERS OF AMERICA'S FASTEST GROWING PRIVATE COMPANIES. SO THE COMPANY ITSELF OFFERS MORE THAN 1000 OPTIONS FOR RENTALS, INCLUDING EQUIPMENT FOR THIS VAST ARRAY OF DIFFERENT SUBSECTIONS OF CONSTRUCTION. BASICALLY EVERYTHING YOU CAN IMAGINE ON A CONSTRUCTION SITE, IT IS PROBABLY ONE OF THEIR RENTAL OPTIONS, RANGING FROM FLUID SOLUTIONS TO EARTH MOVING. ADDITIONALLY, THE COMPANY ITSELF OFFERS THEIR OWN T3 TECHNOLOGY PLATFORM, WHICH IS BRAND AGNOSTIC ON THE EQUIPMENT ITSELF, AND IT'S A SOFTWARE PLATFORM THAT CONNECTS ALL OF THOSE JOB SITE ASSETS TOGETHER, HAS A LOT OF DIFFERENT BENEFITS FROM A PURE FLEET MANAGEMENT STANDPOINT, BUT ALSO IN TERMS OF SECURITY AND THEFT, SAFETY AND ACCOUNTABILITY, AND EVEN HELPING REDUCE IDLE TIME AND LOWER SOME EMISSIONS. SO THE PROJECT ITSELF IS GOING TO BE THAT DISTRIBUTION CENTER THAT I MENTIONED, OVER 400,000FT■!S. IT'S GOING TO BE THEIR SECOND MAJOR DISTRIBUTION CENTER IN THE UNITED STATES. AND THERE'S THREE DIFFERENT DIVISIONS OF THE BUSINESS THAT WILL BE HOUSED AT THIS LOCATION AS WELL IN PRE-ENGINEERED METAL BUILDINGS. SO THAT IS HEAVY EQUIPMENT AND ADVANCED SOLUTIONS EACH RESPECTIVELY, IN A 28,000FT■!S BUILDINGS AND THER SITE SOLUTIONS DIVISION, WHICH IS JUST ABOUT 8500FT■!S, AND THY ARE STILL CURRENTLY IN ACTIVE SITE SELECTION NEGOTIATIONS IN TEXAS AND NATIONWIDE. THIS IS THE SITE THAT THEY ARE CONSIDERING. IT'S THE NORTH TEXAS LOGISTICS HUB ON THE PLOT OF LAND, REFERRED TO AS THE BAKER HARRIS TRACKS. IT IS A BIT OF A SIDEWAYS IMAGE, SO YOU'LL HAVE TO LOOK AT THE COMPASS TO THE RIGHT. SO LEFT IS NORTH AND UP IS EAST. BUT THIS WILL BE THAT NORTHERN PORTION OF THE BAKER SITE ITSELF. JUST ABOUT 125 ACRES BETWEEN NORTH MARSH BRANCH AND FM 1173. SO YOU CAN SEE RIGHT THERE, IT'S OFF THE INTERSTATE WITH THAT FUTURE LOOP. 288 EXPANSION COMING IN ON THE WEST SIDE. AS FOR THE PROJECT ITSELF, IT IS JUST NORTH OF $246 MILLION IN CAPITAL INVESTMENT. 75 MILLION OF THAT WILL BE DIRECT IMPROVEMENTS TO THE BUILDINGS AND STRUCTURES AND GETTING THOSE CONSTRUCTED. AND 153.9 MILLION WILL BE FOR THAT BUSINESS PERSONAL PROPERTY, OF WHICH IT IS ESTIMATED THAT AROUND 140 MILLION WILL BE THE EQUIPMENT ITSELF. AND ALL IN ALL, THE PROJECT WILL CREATE [01:10:06] 136 NEW JOBS. WE'LL GET INTO THOSE TYPE OF JOBS AND SOME OF THOSE SALARY ESTIMATES IN JUST A BIT HERE. AS FOR HOW THAT TRANSLATES TO THE TAX SUMMARY AND THE REVENUE UP TOP, YOU CAN GET THE CURRENT VALUATION AND THAT ESTIMATED INCREASE WITH SOME OF THE WORK THAT HAS TO BE DONE ON THE LAND. IT'S ESTIMATED TO INCREASE IN AROUND $14 MILLION IN VALUATION, 30 MILLION FOR IMPROVEMENTS, AND ABOUT 11.4 MILLION IN BPP. AND ALL IN ALL, THAT CREATES A TOTAL VALUATION, WITH THE PREVIOUS ONE OF 61.5 MILLION. AND AS THAT TRANSLATES TO REVENUE ON THE PROPERTY TAX SIDE, YOU CAN SEE THOSE INCREASES BOTH ON WHAT WE'VE ALREADY DESCRIBED BETWEEN LAND IMPROVEMENTS AND BPP. BUT SOMETHING DEFINITELY TO STRESS IS THE SALES TAX REVENUE THAT WOULD BE ASSOCIATED WITH THE PROJECT ITSELF. AND THAT IS ESTIMATED TO BE JUST NORTH OF $670,000 ANNUALLY, BRINGING THAT TOTAL TAX REVENUE VALUATION TO $1,038,000. AS FOR THE PROPOSED INCENTIVE, WE ARE PROPOSING A 50% AD VALOREM TAX REBATE FOR SIX YEARS ON THE REAL PROPERTY, WHICH IS ONLY FOR NEW IMPROVEMENTS AND BUSINESS PERSONAL PROPERTY. THAT'S ESTIMATED, AND IT'S GOING TO BE CAPPED AT $616,037. ADDITIONALLY, THAT CHAPTER THREE GRANT WILL INCLUDE A SALES TAX REBATE FOR 50% OF THE SALES TAX ON CONSTRUCTION MATERIALS THAT ARE PURCHASED FOR THE PROJECT ITSELF. THAT'S CAPPED AT $210,938. AND THEN WE ARE OFFERING A JOB BASED GRANT WHICH HAS SPECIFIC PERFORMANCE METRICS WE'LL GET INTO IN A SECOND HERE, BUT THAT IS CAPPED AT $100,000, BRINGING THE TOTAL INCENTIVE PACKAGE TO A MAXIMUM OF 926,000 $975,975. AND THEN, AS THAT TRANSLATES TO OUR ECONOMIC ANALYSIS, WE USE THIS SOFTWARE CALLED IMPACT DASHBOARD, WHICH HELPS US ESTIMATE A LOT OF THE SPIN OFF BENEFITS OF PROJECTS LIKE THESE. AND HERE YOU CAN GET A PICTURE OF THAT BETWEEN SOME OF THOSE SPIN OFF JOBS THAT ARE CREATED FROM THE PROJECT, JUST ABOUT 165, AS WELL AS JUST SHY OF 23 RELOCATIONS. THAT'S KIND OF JUST SHOWING YOU HOW A LOT OF DIFFERENT AVENUES COME INTO THIS ANALYSIS TO BRING US TO A TOTAL ESTIMATED RATE OF RETURN OF 116%, WITH A PAYBACK PERIOD OR A BREAK EVEN POINT OF 1.5 YEARS. SO WITH A FULL TEN YEAR ANALYSIS THAT BRINGS THE NET BENEFIT FOR THE CITY OF DENTON ITSELF TO JUST ABOUT $11.2 MILLION. AS FOR THOSE PERFORMANCE MEASURES I MENTIONED, WE HAVE QUITE A FEW, BUT TO BREAK THEM INTO THOSE DIFFERENT GRANTS AND REBATES, I MENTIONED THE CHAPTER 380 AD VALOREM REBATE THAT'S ON THOSE PROPERTY TAXES. IT REQUIRES THAT THE COMPANY ITSELF MUST RECEIVE A CERTIFICATE OF OCCUPANCY, AND THEY ALSO HAVE TO REACH AND MAINTAIN A COMBINED APPRAISED VALUE OF THOSE IMPROVEMENTS. AND BPP OF AT LEAST $31,064,811 ABOVE THE 2026 CERTIFIED VALUATION, AND THE DEADLINE FOR THAT IS DECEMBER 31ST, 2029. THE REASON WE DID 2026 THERE IS BECAUSE THE PROPERTY ITSELF WAS IS A PART OF A BIGGER TRACT OF LAND ON THE DCAD SIDE OF THINGS. SO UPON PURCHASE, IT WILL BE ISOLATED TO ITS OWN PARCEL. AS FOR THE JOB BASED GRANT, WE HAVE A TABLE TO THE RIGHT, WHICH IS HELPFUL FOR SHOWING THAT THEY MUST HIRE AND MAINTAIN A AGREED UPON NUMBER OF FULL TIME EMPLOYEES AND DENTON RESIDENTS, SO THEY'RE BETWEEN YEARS ONE THROUGH SIX OF THE AGREEMENT. YOU GET A PICTURE OF THE REQUIRED FULL TIME EMPLOYEES, AS WELL AS THE CUMULATIVE DENTON RESIDENTS THAT ARE REQUIRED TO BE HIRED. AND IN ORDER FOR THEM TO HIT THAT $100,000 CAP THAT I PREVIOUSLY MENTIONED, WE HAD A CONVERSATIONS IN TERMS OF POTENTIAL PHASE TWOS FOR THE PROJECT, WHERE WE WANTED TO ALLOW FOR RECOGNITION IF THEY SUPERSEDED THE 136 JOB ESTIMATE. SO WE PUT A PERFORMANCE MEASURE IN WHERE IF THEY EMPLOY THOSE 136 EMPLOYEES, THE JOB BASED GRANT CAP ITSELF WILL BE INCREASED FROM $83,000 TO $100,000. SO THAT IS THE REQUIREMENT TO REACH THAT MAX $100,000 FIGURE. FINALLY, FOR THE SALES TAX REBATE, SAME CEO REQUIREMENT, SAME MINIMUM VALUATION REQUIREMENT. BUT THE ONLY DIFFERENCE THERE IS THAT THEY HAVE TO QUALIFY FOR AND OBTAIN A TEXAS DIRECT PAY PERMIT. THAT'S FUNCTIONALLY HOW WE'RE ABLE TO PROVIDE THOSE SALES TAX REBATES ON THOSE CONSTRUCTION MATERIALS PURCHASED OUTSIDE OF THE CITY OF DENTON. AS FOR THOSE JOBS THAT I MENTIONED, HERE IS A QUICK RUNDOWN OF VARIOUS DIFFERENT JOB TITLES OFFERED BETWEEN THE MULTIPLE DIVISIONS OF THE COMPANY AT THE PROPOSED DENTON LOCATION. AND THAT BOILS DOWN TO AN AVERAGE SALARY OF $67,000, $67,900, AND THAT IS ABOVE THE DENTON COUNTY AVERAGE SALARY AS OF Q1 2026, WHICH WAS [01:15:08] $64,400, ACCORDING TO JOBS. ON TOP OF THAT, THE COMPANY ITSELF WILL PROVIDE JUST SHY OF 8500 DOLLARS IN BENEFITS IN THOSE VARIOUS DIFFERENT METHODOLOGIES. ON A MORE QUALITATIVE SIDE OF THINGS, THE COMMUNITY IMPACT FOR THIS PROJECT IS THAT IT DEVELOPS A LARGE GREENFIELD SITE AND PARTICULARLY GENERATES SIGNIFICANT PROPERTY TAX. THE SALES TAX I STRESSED, AND JOBS COMPARED TO ALTERNATIVE USES. IT ALSO SPURS INFILL AND INFRASTRUCTURE DEVELOPMENT TO NOT ONLY SUPPORT THIS PROJECT, BUT BORDERING PROPERTIES AND BORDERING PARCELS THAT HAVE PROPOSED FUTURE DEVELOPMENT AHEAD OF US. AND IT SECURES A COMPANY WITH A HISTORY OF SUPPORTING CAREER AND TECHNICAL EDUCATION, TARGETED RECRUITMENT OF VETERANS AND SUSTAINABILITY EFFORTS IN MISSOURI ITSELF. EQUIPMENT THERE IS A PART OF THE WORK EXPERIENCE PROGRAMS THEY DO ON THE JOB TRAINING. THEY HAVE EQUIPMENT AND SHOWCASE SUPPORT WHERE THEY'RE BUYING INTO THAT LOCAL COMMUNITY, LOCAL COMMUNITY COLLEGES AND SCHOOL DISTRICTS. SO SOMETHING THAT DEFINITELY COULD TRANSFER TO THE DENTON ENVIRONMENT. AND ON THE RIGHT, YOU CAN SEE SOME OF THOSE DIFFERENT CATEGORIES SPECIFICALLY HIGHLIGHTED WITHIN OUR STRATEGIC PLAN AND OUR CHAPTER 380 POLICY CONSIDERATIONS. SO OVERALL, WE RECOMMEND APPROVAL FOR THE PREVIOUSLY DESCRIBED INCENTIVE PACKAGE ITSELF. AND I SHOULD NOTE THAT WE HAVE MARK WALLACE HERE WITH US. HE'S THE MANAGER OF EQUIPMENT DEVELOPMENT ECONOMIC DEVELOPMENT INITIATIVES FROM EQUIPMENT SHARE. SO I STAND READY FOR ANY QUESTIONS. AND WE HAVE MARK HERE AS WELL FROM THE COMPANY ITSELF. >> THANK YOU. COUNCIL MEMBER HOLLAND. >> THANK YOU, MAYOR PRO TEM, I LOVE THIS THIS THIS IS A WIN WIN WIN AS FAR AS I'M CONCERNED. ARE YOU MARK. THANK THANK YOU FOR BEING WITH US THIS EVENING. NOT ONLY DOES THIS DEVELOPER GET A DYNAMIC COMMUNITY TO CHOOSE EMPLOYEES FROM, BUT BUT WE HAVE RESIDENTS OF DENTON THAT ARE ABLE TO WAKE UP, GO TO WORK AND COME BACK, AND THEY NEVER LEAVE THE CITY. I THINK THAT'S TERRIFIC. AND TO SAY NOTHING OF THE TAX REVENUE, WE'RE GOING TO TAX YOU ON THIS. YOU UNDERSTAND JUST OKAY. ANYWAY, I'M I'M REALLY, REALLY EXCITED. WELCOME ABOARD. YOU'RE GOING TO LOVE DENTON. DENTON IS HARD TO WASH OFF. WELCOME. >> THANK YOU COUNCIL MEMBER. I COULDN'T PUT IT BETTER MYSELF. WELCOME TO DENTON. IF YOU COULD TELL YOUR TEAM WELCOME TO DENTON. WE'RE EXCITED TO HAVE YOU HERE. THANK YOU FOR THE PRESENTATION. I THINK THIS IS THE SECOND TIME YOU'VE BROUGHT IT BEFORE COUNCIL. MAYBE THIRD. I GET THIS IN THE OTHER COMMISSION ON CONFUSED SOMETIMES. AND SO GREAT JOB TO BRITTANY AS WELL. YOU ALL HAVE GIVEN SOME PRESENTATIONS IN THE PAST ABOUT THE HISTORY OF ECONOMIC DEVELOPMENT IN OUR CITY. AND WHEN THINGS HAVE COME AND WHEN YOU LOOK AT THAT, IT'S JUST STAGGERING. THE WORK THAT YOU'VE DONE AS THE DIRECTOR SINCE YOU'VE BEEN HERE. AND SO THAT DOES NOT GO UNNOTICED. THANK YOU FOR, FOR HOW YOU CONTRIBUTE, BECAUSE THIS IS SUCH A WIN. AND SO WITH THAT, I MOVE APPROVAL. COUNCIL MEMBER FERRY. >> YEAH, I ECHO ALL THE SENTIMENTS. ABSOLUTELY. THANK YOU BRITTANY. THANK YOU FOR YOUR ALL TO ALL OF YOU. I DID HAVE A QUICK CLARIFYING QUESTION. CAN YOU WALK ME BACK THROUGH THE T THREE TECHNOLOGY AND HOW THAT WORKS? WHAT IT UTILIZES? >> YEAH. PLEASE. MAYBE MARK. I'LL BRING IT BACK UP. THERE IT IS. >> COZY WITH CLAY UP HERE. A LITTLE SHORTER THOUGH. THANK YOU, MAYOR PRO TEM AND COUNCIL FOR HAVING ME THIS AFTERNOON AND FOR WORKING THROUGH ECONOMIC DEVELOPMENT BOTH LOCALLY AND REGIONALLY. WE COULDN'T HAVE DONE THIS WITHOUT THE SUPPORT OF THE WHOLE STATE. AND THEN DOWN TO YOUR LOCAL ECONOMIC DEVELOPMENT FIRM, WORKING WITH STATE SITE SELECTION ENTITIES. SO KUDOS TO THEM. T THREE SPECIFICALLY IS THINK ABOUT THIS AS THE OPERATING SYSTEM FOR THE JOB SITE. SO WHEREAS TESLA BUILDS CARS AND THEY SELL CARS, THAT'S NOT THE THE BUSINESS MODEL THEY OWN. THEY INTERPRET AND THEY DISTRIBUTE AND DISSEMINATE DATA FOR TRANSPORTATION AND LOGISTICS, BOTH NATIONWIDE AND WORLDWIDE. WE DO THE SAME THING FOR JOB SITES. AND THIS TECHNOLOGY COLLECTS BILLIONS OF DATA POINTS EVERY DAY, NOT JUST FROM OUR EQUIPMENT, BUT FROM THE JOB SITES, THE INDIVIDUALS WORKING ON THESE JOB SITES AROUND THE COUNTRY IN ORDER TO INCREASE THE NOT JUST PRODUCTIVITY, BUT SAFETY AND SECURITY OF THESE SITES. AND ALL OF THESE HAVE HARD, SPECIFIC FISCAL IMPACTS TO CONSTRUCTION PROJECTS. BOTH THAT AND THE SAFETY IMPACT HAS BEEN STAGGERING OVER THE LAST TEN YEARS. >> OKAY. THANK YOU. I APPRECIATE THE ANSWER. >> THANK YOU. >> AND I SECOND, THANK YOU. [01:20:06] >> SO WE HAVE A MOTION AND A SECOND. WE'LL VOTE ON THE SCREEN. AND THAT PASSES FOUR [E. ID 26-1487 Consider adoption of an ordinance of the City of Denton to declare the intent to reimburse capital program expenditures of General Government ($40,767,690), the Solid Waste Utility ($5,265,000), the Water Utility ($51,550,080), the Wastewater Utility ($49,524,482), and the Electric Utility ($59,490,000) with Tax-Preferred Obligations (Certificates of Obligation and General Obligation Bonds) with an aggregate maximum principal amount not to exceed $206,597,252; and providing an effective date. The Public Utilities Board recommends approval (5-0).] ZERO. THANK YOU. AGAIN. WE'LL NOW CALL ITEM E THAT'S ID 261487. CONSIDER ADOPTION OF AN ORDINANCE OF THE CITY OF DENTON TO DECLARE THE INTENT TO REIMBURSE CAPITAL PROGRAM EXPENDITURES OF GENERAL GOVERNMENT, THE SOLID WASTE UTILITY AND WATER UTILITY, THE WASTEWATER UTILITY AND ELECTRIC UTILITY WITH TAX PREFERRED OBLIGATIONS. >> ALL RIGHT. GOOD AFTERNOON, MAYOR PRO TEM MEMBERS OF COUNCIL. MATT HAMILTON, CHIEF FINANCIAL OFFICER HERE THIS AFTERNOON TO PRESENT THE FISCAL YEAR 2027 REIMBURSEMENT ORDINANCE. SO WITH THE ADOPTION OF THE BUDGET ON SEPTEMBER 22ND, THE PURPOSE OF THE REIMBURSEMENT ORDINANCE IS TO ALLOW THE ADOPTED CAPITAL IMPROVEMENT PROGRAM TO BEGIN PRIOR TO THE RECEIPT OF BOND PROCEEDS. THE IRS REQUIRES FORMAL DOCUMENTATION. THIS ORDINANCE OF THE CITY'S INTENT TO REIMBURSE ITSELF WITH TAX EXEMPT BONDS TO BE ISSUED AT A FUTURE DATE. GENERALLY, THE SALE OF THE BONDS IS WITHIN 12 MONTHS OF THE ADOPTION OF THE REIMBURSEMENT ORDINANCE. IN PRACTICE, IT HAS ALWAYS BEEN BEFORE THE END OF THE FISCAL YEAR. TYPICALLY, WE DO BOND SALES IN JUNE OR JULY. THE REIMBURSEMENT ORDINANCE IS ALLOWED BY THE CITY'S DEBT POLICY, AND APPROVAL OF THE ORDINANCE DOES NOT OBLIGATE THE CITY TO ISSUE DEBT. SO JUST TAKING A LOOK AT WHAT WAS ADOPTED IN THE BUDGET FOR THE GEO BOND PROGRAM. THIS IS THE 2023 BOND PROGRAM IN FISCAL YEAR 27, PROPOSITION C, E, F, AND G, TOTALING $5.8 MILLION, IS ANTICIPATED TO BE ISSUED FOR THE CERTIFICATES OF OBLIGATION ISSUANCE FOR THE GENERAL GOVERNMENT. A TOTAL OF 34.9 MILLION, WHICH INCLUDES PROJECTS FOR INTERNAL SERVICES AS WELL AS THE GENERAL GOVERNMENT CERTIFICATES OF OBLIGATION ISSUANCE FOR THE UTILITIES, SOLID WASTE TOTALING 5.2 MILLION. AND THEN THE UTILITY SYSTEM, WHICH MAKES UP THE WATER, WASTEWATER AND ELECTRIC FUNDS AT 160 MILLION FOR A TOTAL OF $165.8 MILLION. AND SO IN TOTAL, COMBINING ALL OF THESE DIFFERENT AREAS, THE TOTAL REIMBURSEMENT ORDINANCE IS $206,597,252. SO LOOKING AT NEXT STEPS, IN APRIL OF 27, COUNCIL WILL CONSIDER A NOTICE OF AN ORDINANCE TO ISSUE THE CEOS. THAT IS, THE ANNUAL NOTICE THAT GETS PUBLISHED IN THE NEWSPAPER. AND THEN IN MAY, COUNCIL WILL CONSIDER APPROVAL OF THE BOND ORDINANCE, WHICH IS ALSO CALLED THE PARAMETERS ORDINANCE AUTHORIZING THE SALE OF BOTH THE GENERAL OBLIGATION BONDS AND THE CERTIFICATES OF OBLIGATION. WE ANTICIPATE THE BOND SALE TO BE IN JUNE AND THEN THE PROJECTED CLOSE OF THE SALE AND DELIVERY OF OF FUNDS IN JULY OF 2027, AND I'LL STAND FOR ANY QUESTIONS. >> THANK YOU. I DON'T SEE ANY REQUESTS TO SPEAK. SO COUNCIL MEMBER RUMOHR. >> I'D LIKE TO MOTION APPROVAL. >> I'LL SECOND THAT AND WE WILL VOTE ON THE SCREEN. THAT PASSES FOUR ZERO. JUST A NOTE TO MY COLLEAGUES. DINNER IS HERE. WE'RE GOING TO MOVE THROUGH THE REST OF THIS, THOUGH, SO THAT WE DON'T HAVE ANYTHING BUT THE PUBLIC HEARING AT THE END, AND WE CAN LET STAFF GO HOME EARLY [F. ID 26-1488 Consider adoption of an ordinance of the City of Denton, Texas considering all matters incident and related to the issuance, sale and delivery of up to $100,000,000 in principal amount of "City of Denton General Obligation Refunding Bonds”; authorizing the issuance of the bonds; delegating the authority to certain city officials to execute certain documents relating to the sale of the bonds; approving and authorizing instruments and procedures relating to said bonds; enacting other provisions relating to the subject; and providing an effective date.] [G. ID 26-1489 Consider adoption of an ordinance of the City of Denton, Texas considering all matters incident and related to the issuance, sale and delivery of up to $300,000,000 in principal amount of "City of Denton Utility System Revenue Refunding Bonds, Series 2027”; authorizing the issuance of the bonds; delegating the authority to certain city officials to execute certain documents relating to the sale of the bonds; approving and authorizing instruments and procedures relating to said bonds; enacting other provisions relating to the subject; and providing an effective date. The Public Utilities Board recommends approval (5-0).] AND SAVE AS MUCH TIME AS WE CAN FOR THEM. SO WE'LL MOVE ON TO ITEM F, THAT'S ID 261488. CONSIDER ADOPTION OF AN ORDINANCE OF THE CITY OF DENTON, TEXAS. CONSIDERING ALL MATTERS INCIDENT RELATED TO THE ISSUANCE, SALE, DELIVERY OF UP TO $100 MILLION IN PRINCIPAL AMOUNT OF THE CITY OF DENTON. GENERAL OBLIGATION REFUNDING BONDS. >> AND MAYOR PRO TEM. WE HAVE JUST ONE PRESENTATION FOR THIS ITEM AND THE NEXT ITEM. IF YOU'D LIKE TO CALL THE NEXT ITEM AS WELL. >> WHAT DID I JUST CALL E F MAN, TIME FLIES WHEN YOU'RE HAVING FUN. IT'S ITEM G. I'D 261489. CONSIDER ADOPTION OF AN ORDINANCE OF THE CITY OF DENTON, TEXAS. CONSIDERING ALL MATTERS INCIDENT RELATED TO THE ISSUANCE, SALE AND DELIVERY OF UP TO 300 MILLION IN PRINCIPAL AMOUNT OF THE CITY OF DENTON UTILITY SYSTEM REVENUE REFUNDING BONDS. SERIES 2027. >> MAYOR PRO TEM MEMBERS OF COUNCIL. MATT HAMILTON, CHIEF FINANCIAL OFFICER HERE TO PRESENT THE COMMERCIAL PAPER PROGRAM BOND REFUNDING AUTHORITY ORDINANCES. SO JUST TO BEGIN, I WANTED TO COVER WHAT EXACTLY COMMERCIAL PAPER IS. AND SO THE CITY HAS TWO COMMERCIAL PAPER PROGRAMS, ONE FOR OUR GENERAL OBLIGATION BONDS ASSOCIATED WITH THE 2023 PROGRAM OF $100 MILLION, AND [01:25:05] THEN ALSO A COMMERCIAL PAPER PROGRAM OF $300 MILLION ASSOCIATED WITH OUR UTILITIES. SO COMMERCIAL PAPER IS A SHORT TERM BORROWING TOOL WITH A MAXIMUM MATURITY OF UP TO 270 DAYS. YOU CAN THINK OF THESE AS REAL SHORT TERM BONDS. IT'S TYPICALLY USED AS INTERIM FINANCING FOR CAPITAL PROJECTS BEFORE PERMANENT FINANCING IS PUT INTO PLACE. AND SO COMMERCIAL PAPER COULD BE USED FOR THE SAME PURPOSES THAT WE HAVE USED LONG TERM BONDS FOR SOME OF THE BENEFITS OF OF COMMERCIAL PAPER AND THE PROGRAMS IS IMMEDIATE ACCESS TO FUNDS WITHIN 1 TO 2 DAYS. SO AS I HAD NOTED IN THE PREVIOUS PRESENTATION, WITH THE UPCOMING BOND SALE IN THE SUMMER OF 27, THAT PROCESS TYPICALLY TAKES MANY WEEKS, IF NOT MONTHS. COMMERCIAL PAPER PROVIDES THE BENEFIT OF FINANCING WITHIN 1 TO 2 DAYS. THESE PROGRAMS WERE INITIALLY PUT INTO PLACE REALLY DUE TO THIS NEXT BULLET POINT, WHICH ALLOWS FOR CONTRACT APPROPRIATION. SO WITH EVERY PROJECT AND AND CONTRACT THAT IS BROUGHT FORWARD TO COUNCIL, THE CITY HAS TO IDENTIFY AVAILABLE FUNDING FOR THOSE PROJECTS. AND SO AS AN EXAMPLE, IF WE HAD A THREE YEAR PROJECT THAT WAS $3 MILLION, SPENDING $1 MILLION EACH YEAR, WHAT WE DO IS WE ISSUE THE MILLION DOLLARS EACH YEAR. BUT IN ORDER TO SIGN THAT CONTRACT FOR THE FULL $3 MILLION UP FRONT, WE SOMETIMES USE THE COMMERCIAL PAPER PROGRAM JUST FOR THAT APPROPRIATION TO SIGN THE CONTRACT. SOME OTHER BENEFITS OF THE COMMERCIAL PAPER PROGRAM. IT DOES PROVIDE THE LOWEST SHORT TERM BORROWING RATES COMPARED TO OTHER FINANCING OPTIONS, AND IT ALSO AVOIDS WHAT'S CALLED NEGATIVE INTEREST CARRYING COSTS ASSOCIATED WITH LONG TERM BONDS. AND SO WHAT THAT MEANS IS THAT IF WE ISSUED IN IN MY EXAMPLE, THE $3 MILLION ALL UP FRONT FOR THAT THREE YEAR PROJECT, WE'RE GOING TO BE HOLDING PROCEEDS OVER THE COURSE OF MANY YEARS. AND THERE'S IRS RESTRICTIONS ON WHAT WE EARN ON THOSE PROCEEDS AND SUCH. SO AND THEN FINALLY, DEBT ISSUANCE CAN BE MORE CLOSELY ALIGNED WITH THE PROJECT TIMELINES. AND SO IF WE WERE TO ISSUE COMMERCIAL PAPER FOR A PROJECT, WE COULD JUST MATCH THE EXPENDITURES OF THAT PROJECT MORE CLOSELY THAN, THAN THE LONG TERM DEBT. SO AGAIN, THERE'S TWO WAYS TO USE COMMERCIAL PAPER. ONE IS AS AN ACTUAL FINANCING TOOL WHERE WE ISSUE COMMERCIAL PAPER AND THE OTHER IS JUST FOR THE CONTRACT APPROPRIATION. SO LOOKING AT THE FINANCING SIDE OF IT, IF CASH IS NEEDED, THE CITY CAN WITHDRAW OR ISSUE NOTES UP TO THE AUTHORIZED PROGRAM SIZE. SO THE GEO PROGRAM UP TO 100 MILLION AND THE UTILITY PROGRAM UP TO 300 MILLION. THE NOTES WOULD MATURE WITHIN 270 DAYS AND CAN EITHER BE PAID OFF. PRIOR TO THAT, THEY CAN BE ROLLED. OR ANOTHER WAY TO SAY THAT IS REISSUED, OR THEY CAN BE REFINANCED WITH LONG TERM BONDS, WHICH IS THE PURPOSE OF THE ORDINANCE TONIGHT, THAT IF WE WERE TO ISSUE COMMERCIAL PAPER, THIS ORDINANCE PROVIDES THE AUTHORITY FOR STAFF TO REFUND THAT COMMERCIAL PAPER WITH LONG TERM BONDS. JUST TAKING A LOOK AT HOW IT WORKS IN REGARD TO CONTRACT APPROPRIATIONS. SO THE CITY MUST IDENTIFY AVAILABLE FUNDING SOURCES FOR ALL OF OUR CONTRACTS, AND COMMERCIAL PAPER CAN BE USED AS ONE OF THOSE FUNDING SOURCES. A COUPLE OF BENEFITS HERE IS THAT IT DOESN'T EXPAND THE BUDGET. SO BEING ABLE TO SIGN, IN MY EXAMPLE, THAT THREE YEAR CONTRACT, BUT THEN ONLY ISSUE WHAT IS NEEDED WHEN IT'S NEEDED, DOESN'T EXPAND THE BUDGET, AND THEN ALSO JUST SUPPORTS CASH FLOW EFFICIENCY. SO THE GENERAL OBLIGATION COMMERCIAL PAPER PROGRAM, THIS WAS PUT IN PLACE IN 2020. AND ORIGINALLY IT WAS DESIGNED TO MANAGE THE 2019 BOND PROGRAM. WHAT IS INCLUDED HERE TONIGHT HAS THE 2019 BOND PROGRAM REMOVED, AND THE 2023 BOND PROGRAM IS THE ONLY PROGRAM ASSOCIATED WITH THE PROGRAM. GOING FORWARD. WE'VE ISSUED ALL THE BONDS ASSOCIATED WITH THE 2019 PROGRAM, SO THERE'S NO LONGER A NEED TO INCORPORATE THAT INTO INTO THE PROGRAM. CURRENTLY, THERE'S NO COMMERCIAL PAPER THAT HAS BEEN ISSUED FOR THE GEO ECP PROGRAM, AND THERE'S CURRENTLY NO OUTSTANDING CONTRACT APPROPRIATION USED FOR THE 2023 BOND PROGRAM. TAKING A LOOK AT THE UTILITY COMMERCIAL PAPER PROGRAM. THIS WAS PUT IN PLACE IN JANUARY OF 2021, ORIGINALLY FOR $100 MILLION, THE PROGRAM WAS INCREASED TO $300 MILLION [01:30:08] TO MEET THE IMMEDIATE CASH FLOW NEEDS ASSOCIATED WITH WINTER STORM URI. UNLIKE THE GOP PROGRAM, WE DID ACTUALLY ISSUE COMMERCIAL PAPER IN THE AFTERMATH OF WINTER STORM URI FOR $140 MILLION TO PAY FOR EXPENSES. THIS IS, I THINK, A GOOD USE CASE IN LOOKING AT THE BENEFITS OF OF HOW QUICKLY WE CAN RECEIVE FUNDING IF IT'S NEEDED, PARTICULARLY IN AN EMERGENCY. AND FOR LARGE DOLLAR AMOUNTS, THE ORDINANCE IS REQUIRED JUST TO PROVIDE, AGAIN, THE DELEGATED AUTHORITY TO REFUND THE COMMERCIAL PAPER WITH LONG TERM BONDS. IF WE WERE TO ACTUALLY ISSUE COMMERCIAL PAPER, THE UTILITY COMMERCIAL PAPER PROGRAM HAS NO OUTSTANDING NOTES THAT HAVE BEEN ISSUED. THOSE THAT WERE ASSOCIATED WITH WINTER STORM URI WERE REFUNDED WITH LONG TERM BONDS, AND THE PROGRAM CURRENTLY UTILIZES ABOUT 90.6 MILLION IN CONTRACT APPROPRIATION, WHICH AGAIN, IS JUST OUR ABILITY TO SIGN MULTI-YEAR CONTRACTS. BUT WHAT WE'RE DOING IS ACTUALLY ISSUING LONGER TERM BONDS WHEN WHEN THE FUNDING IS ACTUALLY NEEDED. SO AGAIN, SOME OF THE BENEFITS OF THIS IS IT PROVIDES STAFF THE FLEXIBILITY TO SELL REFUNDING BONDS TO PAY OFF COMMERCIAL PAPER OUTSIDE THE CITY'S NORMAL FINANCING ROUTINE SHOULD IT BE NECESSARY. I DO WANT TO NOTE THAT IF THE CITY WERE TO ISSUE COMMERCIAL PAPER THAT THAT WOULD COME BEFORE COUNCIL. THIS IS ONLY IF COUNCIL AUTHORIZED THE ISSUANCE OF COMMERCIAL PAPER THAT BEFORE THAT 270 DAY MARK, STAFF WOULD BE ABLE TO REFUND THAT COMMERCIAL PAPER WITH LONG TERM BONDS, THE CITY CAN POTENTIALLY AVOID ADDITIONAL COSTS OF THAT ARE ASSOCIATED WITH ROLLING THE COMMERCIAL PAPER BY ISSUING THE LONG TERM BONDS AND HAVING THE DELEGATED AUTHORITY RATING AGENCIES VIEW THE REFUNDING ORDINANCE AS A VERY POSITIVE MEASURE THAT ENSURES THAT THE CITY HAS QUICK, A QUICK AND VIABLE MEANS OF PAYING OFF THE MATURING COMMERCIAL PAPER AND ALSO POTENTIAL INVESTORS VIEW THE REFUNDING ORDINANCES AS A POSITIVE MEASURE AS WELL. SO WITH THAT, I WILL STAND FOR ANY QUESTIONS. >> THANK YOU, COUNCIL MEMBER RUMOHR. >> THANK YOU, MAYOR PRO TEM, I JUST WANT TO DO A SUMMARY OF EVERYTHING WE'VE COVERED. SO YOU SAID THAT WE'VE NEVER ISSUED COMMERCIAL PAPER FOR GEO BONDS. WE HAVEN'T ISSUED IT. WE JUST USED IT TO. >> THAT'S CORRECT. ONLY FOR CONTRACT APPROPRIATION. BUT WE'VE NEVER ACTUALLY ISSUED COMMERCIAL PAPER NOTES ASSOCIATED WITH THE BOND PROGRAMS. >> AND WE'VE JUST DONE THE UTILITIES ONCE FOR WINTER STORM URI, WHICH WAS CLEARLY AN EMERGENCY. >> THAT'S CORRECT. >> RIGHT. AND THEN YOU SAID, COUNCIL, IF WE WERE TO DESIRE TO ISSUE COMMERCIAL PAPER, THAT WOULD COME TO COUNCIL FOR APPROVAL. AND SO ALL THIS IS, IS ADVANCED APPROVAL TO IF WE ISSUE COMMERCIAL PAPER THAT WAS APPROVED BY COUNCIL, IT'S ADVANCED PERMISSION FOR Y'ALL TO REFUND THE COMMERCIAL PAPER WITH THE ULTIMATE LONG TERM BONDS. THAT'S THAT'S WHAT WE'RE DOING RIGHT NOW. THAT'S CORRECT. THANKS. WOULD YOU LIKE ME TO MOTION? I WOULD LIKE TO MOTION APPROVAL. >> THAT'S GREAT. AND I'LL SECOND THAT. WE'LL VOTE ON THE SCREEN. ITEM F. ITEM F F PASSES FOR ZERO WILL NOW VOTE ON ITEM G. COUNCIL MEMBER RUMOHR. >> MOTION APPROVAL ON THAT AS WELL. >> I'LL SECOND THAT AND WE'LL VOTE ON THE SCREEN FOR ITEM G. THAT PASSES FOR ZERO. WE'LL NOW CALL ITEM H. I'D 261648. [H. ID 26-1648 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a contract with USIC Locating Services, LLC, for utility locating and marking of all existing and future installed utility lines for Denton Municipal Electric, Technology Services, Water, and Wastewater Departments; providing for the expenditure of funds therefor; and providing an effective date (RFP 9036 - awarded to USIC Locating Services, LLC, for one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $10,526,000.00). The Public Utilities Board recommends approval (5 - 0).] CONSIDER ADOPTION OF AN ORDINANCE OF THE CITY OF DENTON, TEXAS HOME RULE MUNICIPAL CORPORATION AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH U. SIC LOCATING SERVICES, LLC FOR UTILITY LOCATING AND MARKING OF ALL EXISTING AND FUTURE INSTALLED UTILITIES LINES FOR DME. >> GOOD AFTERNOON. GOOD AFTERNOON. THIS AFTERNOON. GOOD AFTERNOON, MAYOR PRO TEM COUNCIL. I'M CHRIS LAUTREC, DME ASSISTANT GENERAL MANAGER. I'M HERE TONIGHT ON BEHALF OF DME, THE WATER AND WASTEWATER DEPARTMENT AND THE FIBER DEPARTMENT. SO I DREW THE SHORT STRAW TO GET TO PRESENT TO YOU A CONTRACT FOR UNDERGROUND UTILITY LINE LOCATES. AND JUST TO GET STARTED, A COUPLE OF FACTS. IN THE UNITED STATES, THERE'S ABOUT 20 MILLION MILES OF UNDERGROUND UTILITY LINES. THESE LINES ARE STRUCK 700,000 TIMES A YEAR, WHICH IS ABOUT EVERY 47 SECONDS, CAUSING AN ESTIMATED $83.2 BILLION OF REVENUE. AND RECENTLY, ONE OF THESE STRIKES MADE THE NEWS BECAUSE ON SEPTEMBER 21ST, A [01:35:04] CONTRACTOR STRUCK A FIBER OPTIC LINE. THAT WAS THAT THE AIR TRAFFIC CONTROLLER USED FOR ONE OF THEIR SYSTEMS, AND THEY EFFECTIVELY SHUT DOWN NEWARK, JFK AND LAGUARDIA AIRPORT. SO MORE LOCAL. SPEAKING OF DME, WE HAVE ABOUT 643 MILES OF UNDERGROUND LINES. IN THE LAST YEAR. THOSE LINES HAVE BEEN STRUCK FIVE TIMES. SO ONE TIME WAS MISMARKED, AND I'LL GET INTO THAT IN THE PRESENTATION. THE OTHER FOUR TIMES WERE OOPS. SO AGAIN, WE HAD ABOUT 42,000 LOCATES DURING THAT TIME. SO YOU CAN SEE IT'S A VERY SMALL PERCENTAGE. SO A LITTLE BACKGROUND ON, ON THE WHOLE PROGRAM IN TEXAS, IT'S CALLED TEXAS 811. IT IS THE TEXAS ONE CALL LAW. SO AS YOU SEE, YOU HAVE ALL THAT INFRASTRUCTURE IN THE GROUND. THE STATES HAVE PUT FORTH LAWS TO PROTECT THAT INFRASTRUCTURE. IT'S BEEN CALLED DICK TEST. IT'S BEEN THERE. ADVERTISEMENT WAS CALLED BEFORE YOU DIG. IT'S HAD A LOT OF DIFFERENT NAMES. BUT WHAT IT IS, IS IT APPLIES TO ALL EXCAVATION WORK. SO ANYTIME YOU WANT TO WALK OUT IN YOUR FRONT YARD, BREAK OUT A SHOVEL AND DIG A HOLE IN THE GROUND, TECHNICALLY YOU SHOULD USE THIS, BUT IT MORE APPLIES TO COMMERCIAL CONSTRUCTION. ALL UTILITIES ARE OBLIGATED BY LAW TO PARTICIPATE IN IT, AND YOU MUST LOCATE ALL OF YOUR FACILITIES ON OR NEAR THE REQUESTED AREA WITHIN 48 BUSINESS HOURS AND AGAIN AT THE CITY OF DENTON. THIS APPLIES TO THE ELECTRIC, WATER, WASTEWATER AND FIBER DEPARTMENTS. FOR A LONG PERIOD OF TIME, THE CITY HAS USED CONTRACTORS TO MEET THIS LEGAL OBLIGATION. AND THAT'S WHAT WE'RE ASKING FOR TONIGHT. SO THE PROCESS IS AN EXCAVATOR ENTERS A LOCATE REQUEST IN THE TEXAS 811 SYSTEM. SO BACK IN THE DAY IT'S 811 BECAUSE YOU COULD DIAL 811 ON YOUR PHONE AND AND LEAVE A MESSAGE. NOW IT'S THERE'S A PORTAL ONLINE. THAT SYSTEM CREATES A TICKET. AND BASICALLY THE 811 SYSTEM BECOMES A DISPATCHER. THEY GO REFERENCE THEIR GIS MAPS AND SAY, HEY, ON THIS AREA, THERE'S FOUR UTILITIES THERE. AND IT CREATES A TICKET AND IT SENDS THAT TICKET TO THE FOUR UTILITIES. SO ON OUR BEHALF, THE CONTRACTOR AS WE'RE PROPOSING IS U, S, I, C, AND THAT IS OUR CURRENT CONTRACTOR. THEY RECEIVE THAT TICKET ON BEHALF OF THE CITY AND THEN PERFORM ALL OBLIGATIONS THAT THE CITY IS REQUIRED UNDER THIS ACT. THE CONTRACTOR USES GIS DATA, WHICH WE PROVIDE THEM ON A MONTHLY BASIS, AND THE CONTRACTOR DETERMINES IF AND WHAT UTILITIES NEED TO BE LOCATED, IF ANY FACILITIES ARE PRESENT IN THAT AREA, YOU'LL ACTUALLY SEE THE PIN FLAGS, THE MARKING, ALL THE STUFF YOU SEE ALL OVER TOWN THAT'S ACTUALLY PUT OUT THERE BY THE CONTRACTOR. AND AFTER 48 HOURS, WHOEVER CALLED IN THE TICKET IS IN THE CLEAR TO GO AHEAD AND START EXCAVATION WORK. AND ON OUR END, OUR TICKET IS CLOSED OUT. SO A COUPLE OF EXAMPLES OF THAT IS I'M GOING TO PUT A POOL IN MY BACKYARD, AND I DON'T LIKE FOLLOWING THE LAWS. SO I GO OUT WITH MY BACKHOE AND I DIG IN THE GROUND AND I STRIKE A DME LINE. SO AT THAT POINT, I'M FINANCIALLY OBLIGATED TO MAKE THOSE REPAIRS. SO DME IS GOING TO COME MAKE THE REPAIRS TO GET THE SERVICE BACK ON. THEY'RE GOING TO GO TO THE RISK DEPARTMENT. THEY'RE GOING TO FILE A CLAIM AGAINST ME, AND I'M FINANCIALLY OBLIGATED TO MAKE THOSE TO PAY FOR THOSE REPAIRS. THE OTHER SIDE OF THE COIN IS IF I DID CALL 811 AND I WAITED MY 48 HOURS AND NOTHING IN MY BACKYARD IS MARKED, AND I GET IN MY BACKHOE, I GO DIG. I STRIKE THE LINE. I'M NOW NO LONGER OBLIGATED BECAUSE I DID MY DUE DILIGENCE. NOW USIC WOULD BE OBLIGATED TO PAY ME BACK FOR THOSE REPAIRS. SO THOSE ARE THE KIND OF THE TWO SCENARIOS. AND I WILL TELL YOU, THE SECOND ONE IS WHAT HAPPENS MORE THAN NOT IS PEOPLE DON'T CALL IN AND OF COURSE THEY MAKE A STRIKE. SO THE BENEFITS TO USING A CONTRACTOR THIS SERVICE, WAY BACK IN THE DAY WHEN DENTON WAS SMALL, WAS DONE IN HOUSE BECAUSE THERE WAS ONLY A FEW LOCATES. BUT AS WE'VE GROWN, THAT NUMBER HAS BECOME VERY LARGE. SO WE HAVE CHOSEN TO USE A CONTRACTOR, THE CONTRACTOR, WHICH DOES NOT TAKE FTES, FULL TIME FTES ON THE CITY SIDE. THE CONTRACTOR, AS I SAID, ASSUMES ALL LIABILITY FOR MIS MARKED OR UNMARKED UTILITIES, AND THE CONTRACTOR CAN PROVIDE EMERGENCY SERVICE. SO AS YOU [A. DCA26-0007a Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas approving and adopting amendments to the Data Center standards of the Denton Development Code; amendments include but are not limited to, Table 5.2-A, Table of Allowed Uses, regarding zoning districts which permit Modular and Warehouse Data Centers, and Subsection 5.3.6, Industrial Uses, regarding the Use-Specific Standards regulating Modular and Warehouse Data Centers, and Section 9.2, Definitions, establishing a definition for Enterprise Data Center; providing for a penalty in the maximum amount of $2,000.00 for violations thereof; providing a severability clause and an effective date. The Planning and Zoning Commission voted (5-0) to recommend approval of the request. Motion for approval by Commissioner Garland and second by Commissioner Riggs. (DCA26-0007a, Data Center Code Amendments, Angie Manglaris).] THE TYPICAL WAIT LIST WAIT TIME IS 48 HOURS. BUT IF YOU REQUEST. THERE'S AN URGENT. THINK OF A CITY. THE CITY WATER DEPARTMENT HAS A WATER MAIN BREAK. THEY HAVE TO DO THE SAME THING. THEY HAVE TO CALL IN TO GET LOCATES, JUST LIKE DME DOES. WHEN WE HAVE SOME EMERGENCY CALL OUTS, THEY'LL RESPOND TO THOSE WITHIN 24 HOURS. AND AGAIN, THE THE CITY'S COST IS PER LOCATE. SO THE N T AMOUNT ON THIS IS BIG, BUT THAT'S KIND OF OUR NOT TO EXPEND. WE ONLY PAY FOR THE ACTUAL LOCATES THAT ARE DONE. SO WITH THAT WE'RE SEEKING DIRECTION FOR APPROVAL OF A CONTRACT WITH USIC FOR A FIVE YEAR AMOUNT, NOT TO EXCEED 10,526,000. AND AGAIN, THIS CONTRACT WILL COVER ALL CITY DEPARTMENTS. AND WITH THAT, I'LL HAVE ANY QUESTIONS. AND THIS IS ACTUALLY ONE OF THE ONES THAT HAPPENED NOT TOO LONG AGO. SO THIS IS WHAT IT LOOKS [01:40:01] LIKE. YOU CAN SEE OUR CONDUIT THERE IN THE MIDDLE WAS DAMAGED. AND I SEE SETH IN HERE. SO I WON'T SAY WHAT PROJECT THIS WAS, BUT BUT ANY QUESTIONS? >> I DON'T SEE ANY QUESTIONS. I FEEL LIKE THIS AS MUCH AS A IT'S AS MUCH OF A PSA AS IT IS A VOTE TO REMIND PEOPLE TO USE 811. I HAD TO USE IT A FEW YEARS AGO TO REPLACE A SEWAGE LINE. USE 811 EVERYONE. COUNCIL MEMBER RUMOHR. >> I USED IT TO. I WAS GOING TO DIG AND PLANT A TREE, SO I HAD TO DO IT A COUPLE TIMES. MY QUESTION WAS, DOES THAT PROJECT START WITH A B AND ANOTHER B AND THEN A LETTER? I MEAN A NUMBER. >> I WOULDN'T WANT. >> I'M SEEING A NOD BEHIND YOU, SO I'LL TAKE THAT AS A YES. THAT'S ALL I HAD. THANKS. >> YOU ARE CORRECT. >> ALL RIGHT. I SEE A MOTION COUNCIL MEMBER FERRY SILICOSIS. >> I MOVE TO APPROVE. >> THE SILLY GOOSE NICK STEVENS WILL SECOND THAT. SO WE HAVE A MOTION AND A SECOND. WE'LL VOTE ON THE SCREEN. AND THAT PASSES FOUR ZERO. NOW, THE LAST ITEM [I. ID 26-1691 Consider approval of a resolution to elect a Region 8 Director to the Texas Municipal League Board of Directors; and providing an effective date.] WILL CAUSE I I'D 261691. CONSIDER APPROVAL OF A RESOLUTION TO ELECT A REGION EIGHT DIRECTOR TO THE TEXAS MUNICIPAL LEAGUE BOARD OF DIRECTORS AND PROVIDING AN EFFECTIVE DATE. HI. >> GOOD AFTERNOON, MAYOR PRO TEM AND COUNCIL KRISTI FOGEL, CHIEF OF STAFF. I WAS REALLY EXCITED TO GET TO TELL YOU THAT I WAS GOING TO BE YOUR FIRST PRESENTATION OF THE DAY AND YOUR LAST PRESENTATION OF THE DAY, BUT WE'VE GONE SO QUICKLY. I AM YOUR SECOND TO LAST. SO HERE TODAY TO PRESENT THE TML REGION EIGHT DIRECTOR ELECTION, THE TEXAS MUNICIPAL LEAGUE WAS CREATED IN 1913, AND THE CITY OF DENTON HAS BEEN A MEMBER OF THAT ORGANIZATION SINCE ITS INCEPTION. TML DIVIDES THE STATE INTO 15 SUBSTATE REGIONS TO CONNECT LOCAL CITY GOVERNMENTS AND SHAPE STATEWIDE POLICY, AND DENTON IS PART OF REGION EIGHT, WHICH INCLUDES COUNTIES OF DENTON, WISE, COOK, PALO PINTO, PARKER, TARRANT, ERATH, HOOD, JOHNSON AND SOMERVELL. AND THEN EACH REGION ELECTS A SLATE OF OFFICERS FROM PARTICIPATING CITIES, INCLUDING A PRESIDENT FIRST AND SECOND VICE PRESIDENT, SECRETARY, TREASURER AND A TML BOARD DIRECTOR. AND THE TML BOARD DIRECTOR SERVES A TWO YEAR TERM REPRESENTING THE REGION ON THE TML BOARD OF DIRECTORS. SO TML RECENTLY PROVIDED US NOTICE OF AN UPCOMING ELECTION FOR THE REGION EIGHT DIRECTOR POSITION ON THE TML BOARD OF DIRECTORS AND TWO OFFICIALS HAVE BEEN NOMINATED. PARTICIPATING CITIES HAVE BEEN ASKED TO VOTE WITH A MAJORITY OF THEIR GOVERNING BODY. THE FOLLOWING OFFICIALS HAVE BEEN NOMINATED. MIKE BROWNING, COUNCIL MEMBER OF AUBREY AND MARY SARVER, MAYOR PRO TEM OF GRANDVIEW, AND A BRIEF BIO FOR EACH CANDIDATE WAS INCLUDED IN YOUR BACKUP MATERIALS. SO EACH TML CITY IS ENTITLED TO ONE VOTE, WHICH MUST BE CAST BY A MAJORITY OF THE COUNCIL'S OR THE CITY'S GOVERNING BODY, AND BALLOTS MUST REACH THE TML OFFICE BY 5 P.M. ON NOVEMBER 5TH. SHOULD COUNCIL WISH TO PARTICIPATE IN >> THE ELECTION COUNCIL CAN CONSIDER A NOMINATION AND A VOTE FOR THE CANDIDATE OF THEIR CHOOSING. WITH THAT, I'M HAPPY TO ANSWER ANY QUESTIONS. >> COUNCIL MEMBER PERRY. >> THANK YOU FOR THE PRESENTATION. THANK YOU. MAYOR PRO TEM, QUICK QUESTION. BECAUSE THE BALLOTS ARE DUE BY THE FIFTH. IF THIS WERE TO BE POSTPONED TO THE 27TH FOR A VOTE, WOULD WE STILL BE ABLE TO COMPLETE THAT AND GET THAT BALLOT IN IN TIME? >> IT WOULD BE A REALLY TOUGH TURNAROUND, BUT WE CAN DEFINITELY TRY TO MAKE IT WORK. THEY DO REQUEST THE BALLOTS BY MAIL, AND SO THAT'S WHY WE SCHEDULED IT FOR THE 13TH INSTEAD OF THE 27TH. JUST SO WE HAVE TIME FOR USPS TO GET IT FROM DENTON TO TML. >> SURE. I TOTALLY HEAR THAT. THANK YOU FOR YOUR RESPONSE. I JUST GOT AN EMAIL LIKE THREE HOURS AGO. I THINK IT WAS SENT TO ALL OF US THAT HAS LIKE CONCERNING. CONCERNING A CANDIDATE. THANK YOU. AND ALLEGATIONS ON A CANDIDATE THAT MAKES ME FEEL REALLY UNCOMFORTABLE, MAYBE MAKING THIS DECISION SO RASHLY. AND THAT'S WHAT I WANTED TO SPEAK ON. I'M NOT SURE IF EVERYONE'S HAD A CHANCE TO READ IT, BECAUSE WE'VE BEEN IN MEETINGS ALL DAY SINCE NOON, BUT IT WAS SENT AROUND LIKE 151. I READ IT REALLY QUICKLY ON A BREAK AND HAVEN'T HAD A CHANCE TO READ THE REST OF THE ARTICLES THAT WERE ATTACHED, SO I JUST WANTED TO SEE WHAT THAT TIMELINE LOOKED LIKE IN CASE ANYBODY ELSE FELT SIMILARLY UNCOMFORTABLE TO SAY, HEY, MAYBE WE POSTPONE THIS AND CERTIFIED MAIL THAT, MAYBE TO GET HER THERE QUICK. >> WE ABSOLUTELY CAN. AND WE CAN REACH OUT TO TML TODAY AND ENSURE THAT WE'RE ABLE TO CAST OUR VOTE. >> COUNCIL MEMBER HOLLAND. >> AS COUNCIL MEMBER FERRY MENTIONED, WE WE'VE WE'VE READ [01:45:03] AN EMAIL AND WE'VE BEEN DISCUSSING THIS SIDEBAR HERE, AND IT'S. AND I FIND IT VERY, VERY DISTURBING. AND I WOULD. AND COULD IT BE WRONG? ABSOLUTELY. IT COULD BE WRONG. BUT THERE'S ENOUGH. THERE'S ENOUGH THERE THAT THAT IT IT SCARES ME TO PROCEED WITH THIS. AND I WOULD, AND I WOULD LIKE TO, TO DELAY THE MOTION TO DELAY THE VOTE UNTIL WE'RE GIVEN A LITTLE BIT MORE TIME TO, TO FLESH THIS THING OUT. >> COUNCIL MEMBER RUMOHR. >> CAN I ADD MY VOICE TO THAT? I JUST SAW THE EMAIL AND WAS READING IT AND TRYING TO DO SEPARATE LOOKING. SO JUST AT LEAST TIME TO LOOK INTO ALL OF THAT WOULD BE WOULD BE HELPFUL. SO I'LL ADD MY VOICE TO THAT. >> THANK YOU FOR BRINGING THAT TO MY ATTENTION, BECAUSE I HADN'T SEEN MY EMAIL SINCE THIS MEETING, AND I WONDER IF IT'S POSSIBLE IN THE NEXT WEEK OR SO IF YOU COULD JUST LOOK INTO IT AND PROVIDE US AN EMAIL. I DON'T KNOW WHAT ELSE TO SAY AT THIS POINT. >> ABSOLUTELY. STAFF WASN'T AWARE OF THE. NEITHER INFORMATION OR EMAIL UNTIL BRINGING IT UP TODAY. >> SO WE WERE MAKING THE SAME FACE. I KNOW. YEAH. I SEE ARE THESE BOTH REQUESTS TO SPEAK OR FROM EARLIER? OKAY. COUNCIL MEMBER HOLLAND. >> AND THAT I THINK YOU JUST ANSWERED MY QUESTION. YOU'VE NOT SEEN THE EMAIL THAT WE'RE REFERRING TO? >> NO. >> SIR, I WOULD I WOULD LOVE TO SHARE THIS WITH YOU AFTER THE AFTER THE MEETING, AND I SHALL THANK YOU. THANK YOU, MAYOR PRO TEM. >> AND I JUST WANT TO REITERATE IN THAT JUST TO LOOK INTO IT, BECAUSE I'M NOT INTERESTED IN JUST ONE EMAIL, LIKE I NEED TO HAVE MORE INFORMATION. NOT. SO I SEE A MOTION FROM COUNCIL MEMBER PERRY. >> YES. AND THANK YOU FOR SEEKING CLARITY. I APPRECIATE STAFF AND ALL YOUR WORK. I DO MOTION TO POSTPONE THIS TO OCTOBER 27TH MEETING. THANK YOU. >> COUNCIL MEMBER HOLLAND. >> I WOULD LIKE TO SECOND THAT IF. OKAY TO CONTINUE TO A DATE CERTAIN I SEE IT NOW, I WOULD CONTINUE. I WOULD SECOND THAT MOTION. >> OKAY. THANK YOU ALL FOR BRINGING THAT UP, I APPRECIATE IT. I JUST DID. WE'LL VOTE ON THIS SCREEN. NEVER A DULL DAY. OKAY. FOUR ZERO. THAT MOTION PASSES. SO WE'RE GOING TO GO ON A BREAK UNTIL 630. AND SO YOU GET TO CHEW SLOWLY TODAY. AND SO YEAH, WE'LL GO IN RECESS WELCG OF THE DENTON CITY COUNCIL. WE ARE RECONVENING AT 6:30 P.M. WE ONLY HAVE ONE THING LEFT ON THE AGENDA, AND THAT IS A PUBLIC HEARING. JUST AHEAD OF TIME. IF YOU HAVEN'T FILLED OUT A CARD TO TO SPEAK FOR THE PUBLIC HEARING, YOU CAN GO AHEAD AND FIND THE PAPERS OUT THERE TO DO SO. AND IF YOU DON'T, WE'LL STILL CALL AND SEE IF THERE ARE ANY ADDITIONAL SPEAKERS AND HAVE YOU FILL THAT OUT AFTERWARDS. BUT I WILL CALL ITEM A AND UNDER PUBLIC HEARINGS, THAT'S DCA260007A, HOLD A PUBLIC HEARING AND CONSIDER ADOPTION OF AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING AND ADOPTING AMENDMENTS TO THE DATA CENTER. STANDARDS OF THE DENTON DEVELOPMENT CODE. AMENDMENTS INCLUDE. I'M GOING TO STOP THERE, ACTUALLY, AND WE'LL NOW OPEN THIS PUBLIC HEARING. >> GOOD EVENING, MAYOR PRO TEM AND MEMBERS OF CITY COUNCIL ANGIE GLASS, ASSISTANT PLANNING DIRECTOR, HERE TO PRESENT DCA267. THESE ARE CODE AMENDMENTS RELATED TO DATA CENTERS IN THE CITY OF DENTON. SO JUST A LITTLE BIT ABOUT THIS REQUEST. THIS IS AN AMENDMENT TO SEVERAL SECTIONS OF THE DENTON DEVELOPMENT CODE AS IT RELATES TO DATA CENTERS WHERE THEY'RE ALLOWED AND THEIR USE SPECIFIC STANDARDS. THIS IS TO ENSURE OUR LAND USES AND DEVELOPMENTS REMAIN UP TO DATE, THAT WE'RE PREVENTING IMPACTS AND ENCROACHMENTS OF POSSIBLE INCOMPATIBLE USES, AS WELL AS PROTECTING OUR RAW WATER SUPPLIES AND SURFACE GROUNDWATER FROM CONTAMINATION. OVERALL, THESE AMENDMENTS PROMOTE HEALTH, LIFE, AND SAFETY OF THE CITY OF DENTON AND ITS INHABITANTS. SO A LITTLE BIT ABOUT THIS REQUEST. THIS INITIATED OUT OF A TWO MINUTE PITCH THAT WAS BROUGHT BEFORE YOU ALL IN MAY. OUT OF THAT TWO MINUTE PITCH, WE DID GET TO A WORK SESSION ON AUGUST 4TH, WHERE CITY COUNCIL DIRECTED STAFF TO PURSUE A MORATORIUM FOR DATA CENTER RELATED LAND USES, BUT ALSO AMENDMENTS TO THE DENTON DEVELOPMENT CODE. SO FOLLOWING THAT DISCUSSION, THE DEVELOPMENT CODE REVIEW COMMITTEE DID REVIEW DRAFT AMENDMENTS TO THE DATA CENTER REGULATIONS IN THE D.D.C. THOSE WERE ALSO CONSIDERED BY THE PLANNING AND ZONING COMMISSION LAST MONTH, WHERE THEY RECOMMENDED APPROVAL. SO JUST A LITTLE BIT ABOUT DDC UPDATES AND WHERE THEY'RE APPLICABLE. GENERALLY, THE CITY HAS LAND USE AUTHORITY WITHIN THE CORPORATE LIMITS OF THE CITY. THE CITY DOES NOT HAVE LAND USE AUTHORITY AND IT'S ETJ. THERE ARE A COUPLE OF SECTIONS AS IT RELATES TO CONNECTIONS TO OUR WATER AND WASTEWATER THAT WOULD [01:50:05] BE APPLICABLE IN THE CCNRS, BUT THE ZONING IS LARGELY APPLICABLE TO CITY LIMITS. ONLY THE DENTON DEVELOPMENT CODE AND ITS PURPOSE IS TO OUTLINE POLICY AND GUIDANCE ON DEVELOPMENT AND LAND USE WITHIN THE CITY. WE ALSO HAVE CRITERIA MANUALS WHICH PROVIDE THE TECHNICAL DETAIL ON HOW DO WE ACHIEVE THE POLICIES OUTLINED IN THE DDC. SO FOLLOWING THESE AMENDMENTS, IT'S LIKELY THAT YOU WILL SEE CRITERIA MANUAL UPDATES AS IT RELATES TO IMPLEMENTING SOME OF THESE POLICIES PROPOSED. THESE PROPOSED AMENDMENTS WOULD APPLY TO NEW DEVELOPMENT IN THE CITY AFTER THE EFFECTIVE DATE, AND THIS IS SEPARATE FROM THE MORATORIUM DISCUSSION THAT IS ALSO GOING ON. SO A LITTLE BIT ABOUT WHERE WE ARE AND KIND OF HOW WE GOT THERE IS IN 2021, THE CITY DID RECEIVE A REQUEST TO REZONE CITY OWNED PROPERTY TO ALLOW FOR A DATA CENTER LAND USE. THE DETERMINATION AT THAT TIME WAS THAT IT FIT THE WAREHOUSE AND WHOLESALE FACILITY. HOWEVER, AFTER MORE REQUESTS CAME IN AND THEY ALL STARTED TO VARY SLIGHTLY, DISCUSSION WAS BROUGHT FORWARD FOR CODE AMENDMENTS TO IMPLEMENT TWO LAND USES RELATED TO DATA CENTERS, ONE BEING MODULAR AND ONE BEING WAREHOUSE. AS IT IS TODAY, THE MODULAR DATA CENTER IS ALLOWED IN THE L, I, H I AND ZONING DISTRICT WITH AN SUP ONLY. THE WAREHOUSE DATA CENTER IS ALLOWED AND THE M, R, C AND H C ZONING DISTRICTS WITH AN SUP AND IS PERMITTED BY RIGHT AND THE G O THROUGH ZONING DISTRICTS. SO JUST A LITTLE BIT ABOUT THE TWO USES AND THE USE SPECIFIC STANDARDS THAT ARE APPLICABLE TO THEM. THEY'RE SIMILAR IN NATURE BUT VARY SLIGHTLY IN HOW THEY'RE CONSTRUCTED. SO MODULAR DATA CENTERS ARE LARGELY PODS OR MAYBE IN SHIPPING CONTAINERS, WHEREAS THE WAREHOUSE LAND USES ARE MORE TYPICAL OF BEING STORED IN, IN A, IN A BUILDING. THEY'RE USE SPECIFIC STANDARDS APART FROM THAT ARE VERY SIMILAR TO ONE ANOTHER. WE DO REQUIRE THAT THEY'RE SCREENED FROM ANY RIGHT OF WAY AND RESIDENTIAL USES THAT THEY BE SET BACK A MINIMUM OF 100FT FROM A RESIDENTIAL ZONING DISTRICT OR RESIDENTIAL USE THAT AN ENVIRONMENTAL NOISE STUDY SUBMITTED UPON FIRST SUBMITTAL, AND THAT THE NOISE NOT BE MORE THAN 60DB, OR IF THE AMBIENT NOISE IS ALREADY AT THAT SHALL NOT INCREASE IT MORE THAN THREE DECIBELS. THEY ARE REQUIRED TO COMPLY WITH OUR LIGHTING STANDARDS IN THE CODE, WHICH ALLOWS UP TO ONE FOOT CANDLE AT THE PROPERTY LINE. WE DO REQUIRE LANDSCAPING BUFFERS WHEN INDUSTRIAL USES ARE ADJACENT TO RESIDENTIAL, AND THEN THERE ARE SOME ADDITIONAL LANDSCAPING STANDARDS THAT COME INTO PLAY FOR THE MODULAR DATA CENTER. AND THEN THE WAREHOUSE DATA CENTER IMPOSES LIMITATIONS ON BUILDINGS LOCATED IN THE M, R AND S ZONING DISTRICTS. SO LOOKING AT THE PROPOSED AMENDMENTS, FIRST, THE TABLE OF ALLOWED USES THE TABLE OF ALLOWED USES. THE PROPOSED AMENDMENTS HERE ARE TO REMOVE THE WAREHOUSE DATA CENTERS AS A ALLOWABLE USE IN THE M, R, S, C, H, C, AND G ZONING DISTRICTS. THAT WOULD LEAVE IT JUST IN THE LIH. I'M P F. IT WOULD BE THE SAME FOR THE MODULAR DATA CENTERS, AND ALL OF THESE WOULD BE WITHIN SUP ONLY. THAT WOULD MEAN THAT NONE OF THESE LAND USES ARE PERMITTED BY. RIGHT. THEY DO HAVE TO GO TO THE PLANNING AND ZONING COMMISSION AND TO YOU ALL FOR ULTIMATE APPROVAL. THIS IS JUST KIND OF A SUMMARY OF WHERE THOSE ZONING DISTRICTS ARE. GENERALLY SPEAKING, THE L, I AND H I ZONING DISTRICTS ARE LOCATED ALONG THE I-35 CORRIDOR. A LOT OF THE P F THAT YOU SEE WITHIN THE CITY LIMITS IS EITHER CITY OWNED OR MAYBE OWNED BY SCHOOL. THIS JUST KIND OF HELPS ORIENT YOU AS TO WHERE MOST OF THOSE ZONING DISTRICTS ARE SITUATED IN THE CITY. PROPOSED AMENDMENTS AS IT RELATES TO THE USE SPECIFIC STANDARDS. THIS WOULD BE THE SAME FOR BOTH THE MODULAR AND THE WAREHOUSE USES. THAT WOULD BE A 300 FOOT SETBACK WHEN ADJACENT TO RESIDENTIAL USES OR DISTRICTS. IT WOULD REQUIRE WATER AND WASTEWATER STUDIES TO BE SUBMITTED UPON THE INITIAL APPLICATION. THAT WOULD INCLUDE IDENTIFYING NEEDS FOR IMPROVEMENT, POSSIBLE IMPACTS AND IDENTIFY ONGOING MEASUREMENT AND OVERSIGHT. AND IT ALSO ALLOWS THE CITY TO REQUEST ADDITIONAL INFORMATION IF IT'S DETERMINED TO BE NEEDED AT THAT TIME, IT WOULD REQUIRE THAT CLOSED LOOP OR FREE AIR COOLING SYSTEMS BE UTILIZED ONLY. IT WOULD IMPLEMENT ADDITIONAL LIGHTING STANDARDS WHEN ADJACENT TO RESIDENTIAL USES, REQUIRING THAT FOOT CANDLE MEASUREMENT TO BE ZERO. AND THEN IT DOES MOVE THE APPROVALS FOR THE PUC AND THE ERCOT FURTHER UP IN THE PROCESS, SO THAT THOSE NEED TO BE ACHIEVED PRIOR TO BEING PLACED ON AN AGENDA FOR CONSIDERATION. IN ADDITION, WE ARE PROPOSING TO ADD THE DEFINITION FOR ENTERPRISE DATA CENTER TO SET IT APART FROM THOSE HYPERSCALE AI FACILITIES THAT ARE LARGELY PART OF THIS AMENDMENT. THIS JUST SPECIFIES THAT COMPANIES MAY HAVE THOSE AS PART OF THEIR ONGOING BUSINESS NEEDS. SO JUST A QUICK SUMMARY OF SORT OF WHAT'S CURRENT AND WHAT'S BEING PROPOSED. THESE PROPOSED AMENDMENTS WOULD REMOVE THE WAREHOUSE DATA CENTER AND THE M R, S, C, H, C AND G O ZONING DISTRICTS AND WOULD REQUIRE AN SOP IN THE LIH. I'M P F, WHICH MATCHES WHAT WE HAVE FOR THE MODULAR DATA CENTERS. IT WOULD INCREASE THE REQUIRED SETBACK WHEN ADJACENT TO RESIDENTIAL TO 300FT. IT WOULD ALSO ADD SOME ADDITIONAL LIGHTING REQUIREMENTS WHEN ADJACENT TO RESIDENTIAL. IT ALSO ADDS REQUIREMENTS THAT WE DON'T CURRENTLY HAVE AS IT RELATES TO COOLING SYSTEMS, WATER AND WASTEWATER DEMAND STUDIES, AND THE TIMING OF VARIOUS APPROVALS FROM STATE ENTITIES. AGAIN, THIS IS AN AMENDMENT TO SEVERAL SECTIONS OF THE DEVELOPMENT CODE. IT DOES MEET OUR CRITERIA FOR APPROVAL, SPECIFICALLY CONTINUING TO PROMOTE THE HEALTH AND SAFETY OF THE CITY OF DENTON AND ITS INHABITANTS. THE PLANNING AND ZONING COMMISSION DID CONSIDER THESE AMENDMENTS AT THEIR SEPTEMBER MEETING AND RECOMMENDED APPROVAL, AND STAFF IS ALSO RECOMMENDING APPROVAL. HAPPY TO ANSWER ANY QUESTIONS YOU ALL MAY HAVE. [01:55:03] >> THANK YOU SO MUCH FOR THE PRESENTATION. YOU DID JUST AS GOOD OF A JOB AS CHARLIE DID. NAILED IT. DO WE HAVE ANY QUESTIONS FOR STAFF? I DO. I'M ASKING AS A QUESTION BECAUSE I KNOW THE ANSWER, BUT I JUST DON'T KNOW THE EXTENT OF WHICH IT CAN BE SHARED. ARE THERE ANY HAVE THERE BEEN ANY APPLICATIONS SUBMITTED FOR AN ADDITIONAL DATA CENTER? >> THERE HAD BEEN ONE SUBMITTED THAT DID NOT MEET ALL OF OUR INTAKE REQUIREMENTS, AND SO WAS REJECTED AT THAT TIME. >> ARE YOU ABLE TO SHARE WHEN THAT WAS? >> IT WAS SUBMITTED LAST WEEK. >> I THINK THIS IS. AND IF YOU CAN'T ANSWER IT, IT'S OKAY. IT'S A QUESTION FOR THE CITY ATTORNEY. WITH THAT, DOES THAT HAVE HOW WOULD THAT IMPACT. THESE NEW STANDARDS? WOULD THESE NEW STANDARDS APPLY TO THAT COMPANY? >> POTENTIALLY, WE'D HAVE TO REALLY LOOK AT WHAT EXACTLY THEY SUBMITTED. THERE'S A POTENTIAL THAT SOME PORTIONS OF IT MAY HAVE VESTED JUST BASED ON A PRELIMINARY APPLICATION, BUT WE REALLY HAVE TO LOOK AT AND DRILL DOWN ON WHAT THAT LOOKS LIKE. THAT'S A DETERMINATION THAT TAKES A LOT OF REVIEW AND TIME TO DO. WE HAVEN'T DONE THAT WITH THAT. SO IT'S POTENTIAL THEY HAVE VESTED IN SOME PARTS OF THE PROJECT, BUT I CAN'T SPEAK TO WHICH OR HOW MUCH. >> OKAY. I JUST WANT THE PUBLIC TO BE AWARE OF THAT. AND I THINK I'LL HOLD ANY OTHER COMMENTS FOR NOW. I DON'T HAVE ANY BLUE CARDS. WERE THERE ANY THAT WERE SUBMITTED? THIS IS AN OPEN PUBLIC HEARING AND YOU DO HAVE FOUR MINUTES TO SPEAK. IS THERE ANYONE THAT'S INTERESTED IN SPEAKING ON THIS? IF YOU COME FORWARD AND SHARE YOUR NAME AND YOU'LL HAVE FOUR MINUTES. THANKS. >> THANK YOU. MY NAME IS RACHEL WEAVER. I'VE TALKED TO A COUPLE TIMES TO CITY COUNCIL AND PLANNING AND ZONING. AND TODAY ON THE LORAX, I SPEAK FOR THE TREES. FOR THE TREES HAVE NO TONGUES. TEXAS HAS A 4.8 MILLION ACRE FOOT WATER SHORTAGE. THAT IS WORSENING DUE TO, SORRY, RECENT INUNDATION OF DATA CENTERS INTO OUR STATE. TEXAS HAS A TOTAL OF 335 EXISTING DATA CENTERS, WITH AT LEAST 248 MORE IN THE WORKS, AND ONE NEW APPLICATION COMING INTO DENTON, RELYING ON RAMPING UP RENEWABLE ENERGY RESOURCES THAT ARE DEPLOYED TO POWER DATA CENTERS MAY HAVE OTHERWISE BEEN USED TO DECARBONIZE THE ELECTRIC NEEDS OF OUR RESIDENTS AND BUSINESSES. DATA CENTERS ALSO CAUSE NOISE AND LIGHT POLLUTION 24 OVER SEVEN. THEY CREATE A CONSTANT HUM THAT CAN BE DISRUPTIVE TO NEIGHBORING RESIDENTS, BUSINESSES AND LOCAL WILDLIFE. WE MAY SAY THAT THESE ARE ZONED IN INDUSTRIAL AREAS, BUT OUR NATIVE WILDLIFE IS IMPACTED BY EVERY SQUARE INCH THAT WE DEVELOP WITHOUT MITIGATING THOSE ENVIRONMENTAL IMPACTS. HYPERSCALE FACILITIES REQUIRE ALL NIGHT LIGHTING THAT DISRUPTS THE NATURAL CIRCADIAN RHYTHMS OF THE BODY, INCLUDING OUR SLEEP WAKE CYCLES. LIGHT POLLUTION IS ALSO DISTURBING MIGRATION PATTERNS AND HABITAT DEVELOPMENT AMONG BIRDS, BUTTERFLIES, BATS, CATS, AND TURTLES, TO NAME ONLY A HANDFUL. QUOTING THE CITY OF DENTON'S OWN WEBSITE, DENTON, TEXAS IS HOME TO RARE AND FRAGILE NATIVE ECOSYSTEMS, MOST NOTABLY THE CROSS TIMBERS, UPLAND HABITAT, BLACKLAND PRAIRIE REMNANTS AND RICH BOTTOMLAND, HARDWOOD FOREST WETLAND CONVERGENCES. LESS THAN 1% OF ORIGINAL NATIVE PRAIRIES REMAIN IN TEXAS, MAKING THEM ONE OF THE RAREST ECOSYSTEMS IN THE STATE AND NORTH AMERICA AND ONE OF THE MOST ENDANGERED ECOSYSTEMS ON THE PLANET. MASSIVE HABITAT LOSS, LIKE WHAT IS HAPPENING IN TEXAS, IS NOT SOME KIND OF SECONDARY, REGIONAL AND GLOBAL ENVIRONMENTAL ISSUE. IT MAY BE THE MOST CRITICAL ENVIRONMENTAL ISSUE. ACCORDING TO THE WORLD WILDLIFE FUND. SO THESE REGULATIONS THAT WE'RE TALKING ABOUT ARE A START, BUT WE CAN BE BETTER. WHERE ARE THE ENVIRONMENTAL MITIGATION EFFORTS? WHERE ARE WE PRESERVING GREEN SPACES AND WILDLIFE HABITATS IN PERPETUITY FOREVER? THERE IS EXTREMELY RARE REMNANT PRAIRIE RIGHT BY WHERE THIS DATA CENTER ARE COMING IN, WHERE THEY'RE ALREADY COMING IN, PLANTS THAT DON'T COME ANYWHERE ELSE IN THE WORLD GROW IN THAT AREA. WHEN BITCOIN MINING, AI, DATA CENTERS AND DRONE FACTORIES COME AND GO, DENTON WILL BE LEFT WITH THEIR CARCASSES. PLEASE APPROVE THESE REGULATIONS AND LOOK AT HOW WE [02:00:03] CAN INCREASE OUR STANDARDS EVEN MORE TO PROTECT THESE UNIQUE NATIVE ECOSYSTEMS AND WILDLIFE HABITATS. UNLESS SOMEONE LIKE YOU WHO HAVE POWER CARES A WHOLE AWFUL LOT, NOTHING IS GOING TO GET BETTER. IT'S NOT. THANK YOU. >> THANK YOU FOR SPEAKING. ARE THERE ANY OTHER SPEAKERS? SPEAK NOW OR FOREVER HOLD YOUR PEACE. ARE THERE ANY OTHER SPEAKERS YOU CAN COME FORWARD? IF YOU COULD SHARE YOUR NAME AND YOU'LL HAVE FOUR MINUTES. >> HI, MY NAME IS CHRIS. I LIVE IN 76209. I DON'T HAVE A LOT PREPARED THIS EVENING, BUT I'VE BEEN SORT OF FOLLOWING ALONG WITH THE ONGOINGS OF THE MORATORIUM AND THE PLANNING AND ZONING. I PERSONALLY WORK IN AN INDUSTRY THAT UTILIZES A LOT OF AI, AND I'M FAMILIAR WITH THE TECHNOLOGY. AND I THINK ONE OF THE THINGS THAT IS IMPORTANT IS THE INFORMATION THAT WE HAVE AT THIS TIME ON HOW THESE FACILITIES ARE USED OR WHAT'S GOING TO BECOME OF THEM, IS VERY NEW AND IT'S VERY FRESH. AND SO WE HAVE TWO DATA CENTERS IN OUR TOWN THAT HAVE NOT FULLY COME ONLINE. WE DON'T KNOW WHETHER OR NOT THEY'RE GOING TO MEET THOSE CAPACITY COMMITMENTS THAT THEY SAID THEY WERE GOING TO, WHETHER OR NOT THEY'RE GOING TO NEED MORE, WHAT THE ACTUAL IMPACT THEY'RE GOING TO HAVE ON THE WATER AND THE ENVIRONMENTS THAT ARE AROUND THEM. AND SO WITHOUT THE PROPER INFORMATION TO MAKE THESE LONG TERM DECISIONS, YOU KNOW, ON WHAT'S GOING TO AFFECT US HERE, THESE PLANNING AND ZONING CHANGES, I DON'T THINK ARE ENOUGH, BUT THEY ARE THE BARE MINIMUM THAT WE CAN DO WITH THE INFORMATION THAT WE HAVE TO PUT SOME ADDITIONAL OVERSIGHT ON THESE THINGS WITHOUT OUR ABILITY TO REALLY LOOK INTO AND TRY TO HOLD THESE COMPANIES THAT ARE ALREADY APPROVED ACCOUNTABLE, WE DON'T HAVE ENOUGH INFORMATION TO GO BACK AND KNOW WHETHER OR NOT SOMEBODY WHO JUST APPLIED THIS WEEK IS GOING TO BE WORTHWHILE OR GOING TO BE CONTRIBUTING IN THE RIGHT WAY. SO I JUST WANT TO COME IN SUPPORT OF THESE MEASURES AT A MINIMUM, AND WILL CONTINUE TO SUPPORT THE MEASURES THAT ARE PUT FORWARD TO THE COUNCIL. THANK YOU. >> THANK YOU SO MUCH. ANY OTHER SPEAKERS COME FORWARD? IF YOU COULD SHARE YOUR NAME AND YOU'LL HAVE FOUR MINUTES. >> HI MATT PANETTA AND I DON'T REALLY HAVE STATEMENTS. I JUST MAINLY HAVE SOME QUESTIONS THAT I THAT I HOPE CAN BE ANSWERED KIND OF LOOKING OVER THIS. AND I KNOW THAT THIS IS INDEPENDENT OF THE MORATORIUM, BUT A COUPLE OF THINGS THAT HAVE TRADITIONALLY COME BACK TO, TO BITE US ON THE MUNICIPAL TOOKUS IN THE PAST HAS BEEN PUTTING FORTH CHANGES TO PLANNING AND ZONING OR THAT TYPE OF THING, YOU KNOW, IN TERMS OF WHAT'S ALLOWABLE WHERE. AND THEN FINDING OUT SOMETHING WAS GRANDFATHERED IN BECAUSE SOMEBODY BROUGHT A BOUGHT A PROPERTY 20 YEARS AGO. AND AT THAT TIME THIS WOULD HAVE BEEN ALLOWABLE. THEN I JUST WANT TO A DOUBLE CHECK AND SEE IF THERE IS ANY CIRCUMSTANCE IN WHICH GRANDFATHERED PROPERTY WOULD BE ABLE TO DO THAT, BECAUSE, BECAUSE THAT WOULD, YOU KNOW, HEAVILY IMPACT PEOPLE'S QUALITY OF LIFE. THE OTHER ONE WAS I JUST WANTED TO GET A CLARIFICATION, BECAUSE I DID SEE ON HERE THAT THAT AN SCP IS REQUIRED, WHICH, YOU KNOW, WOULD, YOU KNOW, ANYTIME, I GUESS ANYBODY COMES THROUGH FOR ONE OF THESE, THESE WOULD HAVE TO GO THROUGH PLANNING AND ZONING AND SUBSEQUENTLY COUNCIL FOR A SPECIAL USE PERMIT. I JUST WANTED TO KIND OF GET A CLARIFICATION ON WHAT THE LIMITS OR THE CRITERIA FOR AN SCP WOULD BE IF SIMPLY SOMEBODY SAYING, I'D LIKE AN SCP BECAUSE I'M GOING TO PUT A DATA CENTER IN IT. WOULD WE BE WOULD ANY GOVERNMENTAL ENTITY BE ABLE TO GO, I'M GOING TO VOTE AGAINST THIS SUP BECAUSE IT'S A DATA CENTER, OR IS IT IS IT LIMITED TO OTHER ASPECTS? YOU KNOW, WITHIN THE GENERAL CODE? THOSE ARE THE MAIN QUESTIONS THAT I HAD. AND IF IF STAFF COULD ANSWER THAT OR SOMETHING, THAT'D BE GREAT. >> YEAH, I THINK I THINK THOSE ARE GREAT QUESTIONS. DO YOU WANT TO COME UP AND ANSWER THOSE? >> FIRST? SO SPECIFIC USE PERMITS ARE A FUNCTION OF, OF ZONING. WHAT IT MEANS IS THE USES IT'S NOT PROHIBITED, BUT IT'S ALSO NOT ALLOWED BY RIGHT. IT ESSENTIALLY MEANS THAT THEY MAY BE APPROPRIATE IN THAT ZONING DISTRICT, BUT STAFF LOOKS AT IT AGAINST A GENERAL CRITERIA FOR APPROVAL, AS WELL AS CRITERIA FOR APPROVAL SPECIFIC TO SUPS AS IT RELATES TO DOES THIS CAUSE AN ADVERSE IMPACT? IS IT GENERALLY COMPATIBLE WITH THE SURROUNDING AREA? SO ALL OF THOSE CRITERIA WOULD BE WEIGHED AGAINST. AND THEN WE WOULD ALSO BE LOOKING AT THESE USE SPECIFIC STANDARDS THAT ARE BEING IMPLEMENTED TODAY. SO AT A MINIMUM THEY WOULD BE NEEDING TO MEET THESE REQUIREMENTS. BUT IT WOULD ALSO BE PUT UP AGAINST OUR GENERAL CRITERIA FOR APPROVAL, AS WELL AS THOSE SPECIFIC TO S S. THAT TAKES INTO ACCOUNT SEVERAL DIFFERENT FACTORS, INCLUDING [02:05:04] CONSISTENCY WITH THE COMPREHENSIVE PLAN, SURROUNDING AREAS, MITIGATION OF ENVIRONMENTAL IMPACTS. AND SO IT IS A LITTLE BIT MORE HOLISTIC OF AN APPROACH THAN A USE THAT MAY BE PERMITTED BY RIGHT. AND THEN FOR THE THE GRANDFATHERING OF POSSIBLE LAND. WE DO HAVE TWO PERMITTED DATA CENTERS IN THE CITY. WE HAVE THE ONE BY THE DENTON ENERGY CENTER. AND THEN THERE'S A SPECIFIC USE PERMIT FOR ONE SORT OF FURTHER SOUTH OF JIM CRYSTAL ROAD. THEY THEY DO HAVE RIGHTS TO CONTINUE WITH THE APPROVED PLANS THAT THEY HAVE RECEIVED. ANY MODIFICATIONS TO THOSE PLANS WOULD BE REVIEWED AGAINST OUR NONCONFORMING RIGHTS STANDARDS. AND WHEN THERE'S AN EXPANSION OF SOMETHING THAT WAS PERMITTED BEFORE, WE WOULD WE WOULD REVIEW. AND IT WILL VERY MUCH DEPEND ON THE SITUATION. BUT AS FAR AS JUST LIKE UNDEVELOPED LAND THAT'S NOT CURRENTLY BEING USED FOR A DATA CENTER, I DON'T BELIEVE THAT THEY HAVE A GRANDFATHERED OR A VESTING. RIGHT. AND JUST THAT OWNERSHIP OF THE LAND. >> AND JUST TO HIGHLIGHT THE THE FIRST ANSWER, JUST TO PUT IT IN PLAIN WORDS, A COUNCIL MEMBER OR COMMISSIONER HAS A RIGHT TO LOOK AT A DATA CENTER COMING FORWARD. AND AS A VOTING MEMBER OF THAT BODY, DETERMINE THEMSELVES WHETHER OR NOT THEY BELIEVE SOMETHING FITS. CORRECT? >> YES. YOU WOULD VOTE ON EACH AND EVERY ONE OF THESE. OKAY. YES. >> ALL RIGHT. THANK YOU SO MUCH. ARE THERE ANY OTHER SPEAKERS? I'M GOING TO ASK ONE MORE TIME AND THEN WE'LL CLOSE IT. ARE THERE ANY OTHER SPEAKERS? OKAY. WE'RE GOING TO GO AHEAD AND CLOSE THIS PUBLIC HEARING. ARE THERE ANY ADDITIONAL QUESTIONS OR STATEMENTS FROM COUNCIL MEMBERS? COUNCIL MEMBER FERRY. >> THANK YOU TO EVERYONE WHO SPOKE. RACHEL, CHRIS AND MATT, APPRECIATE IT, AND I'M REALLY GRATEFUL FOR THE OPPORTUNITY TO SERVE WITH COUNCIL MEMBER RUMOHR ON THE DENTON DEVELOPMENT CODE REVIEW COMMITTEE. I'M GLAD AND I'M GRATEFUL FOR ANGIE AND THE TEAM FOR ALL THE CONVERSATIONS WE'VE HAD AROUND THIS, AND I'M GLAD THAT WE'VE MADE IT TO WHERE SDPS ARE NOW A REQUIREMENT, AND THAT THIS IS NOT SOMETHING BY RIGHT THAT THAT CAN MOVE FORWARD. IT PROTECTS US MORE WHILE WE'RE GOING THROUGH THE MORATORIUM PHASE. AND IT IS FOR THAT REASON THAT I MOTION TO APPROVE ADOPTION OF THIS ORDINANCE. >> THANK YOU. ARE THERE ANY OTHER COMMENTS? I'LL JUST MAKE ONE COMMENT, AND IT IS TO BRAG ON MY COLLEAGUES AS WELL AS STAFF, WHICH IS THAT THIS COUNCIL MOVED ALL OF THIS FORWARD TOGETHER AS FAST AS I THINK WE POSSIBLY COULD TO GET TO THIS SITUATION. AND ANYONE I SAID THIS BEFORE, ANYONE THAT SAYS THAT GOVERNMENT CAN'T MOVE QUICKLY HASN'T SEEN DENTON MOVE, BECAUSE WE DO MOVE QUICKLY. WE WANT WHEN WE WANT TO GET THINGS DONE. I'M REALLY PROUD OF OF WHAT WE'VE ALL BROUGHT FORWARD TONIGHT TO VOTE ON. AND LIKE OTHERS HAVE SAID, IT'S I THINK IT'S THE BEGINNING OF A CONVERSATION. IT'S NOT THE END OF A CONVERSATION. IF YOU DIDN'T HAVE THE OPPORTUNITY TO WATCH THE WORK SESSION THIS AFTERNOON ON THE MORATORIUM FINDINGS, I WOULD ENCOURAGE YOU TO DO SO TO TO PROVIDE MORE INFORMATION OF WHY I FEEL THAT WAY, BECAUSE ONE OF THE THINGS LISTED IN THERE, IF I COULD INTERPRET IT THROUGH MY OWN MIND, WHAT I WOULD SAY IS IT FURTHER SHOWED TO ME AND ALMOST CLEARLY STATED, WE'RE GOING TO HAVE TO TAKE ANOTHER SWING AT THIS THROUGH THE MORATORIUM PROCESS. BUT THIS IS A REALLY GOOD FIRST START. AND I'M, I'M, I'M GRATEFUL FOR EVERYONE UP HERE THAT THAT BROUGHT THIS FORWARD. COUNCILMEMBER RUMOHR. >> THANK YOU, MAYOR PRO TEM, I JUST WANTED TO ECHO WHAT COUNCILMEMBER FERRY SAID, THANKING STAFF FOR PUTTING THIS TOGETHER SO QUICKLY, THANKING FELLOW COUNCIL COLLEAGUES, BUT ALSO OUR FELLOW COMMITTEE MEMBERS, THE PLANNING AND ZONING COMMISSIONERS. WE WE GOT TO LOOK THROUGH ALL OF THIS STUFF AND GIVE IT KIND OF COMB THROUGH IT WITH A FINE TOOTH COMB. SO IT WAS ALL OF US THAT WERE ABLE TO SORT OF TALK THROUGH IT AND DECIDE WHAT TO PUT FORWARD. SO I'LL GO AHEAD AND SECOND, SINCE I'VE GOT THE MIC. THANK YOU. >> ANY OTHER COMMENTS? SEEING NONE, WE WILL VOTE ON THE SCREEN. AND THAT PASSES FOUR ZERO. Y'ALL. WE'RE MOVING AT RECORD SPEED. WE'VE ALL WE'VE GOT LEFT IS CONCLUDING ITEMS. [5. CONCLUDING ITEMS] SO IF YOU'D LIKE TO GIVE SOME CONCLUDING REMARKS, PRESS YOUR BUTTON NOW. COUNCIL MEMBER. FERRY. >> THANK YOU ALL FOR TAKING TIME OUT OF YOUR DAY TO COME HERE. I REALLY APPRECIATE IT. I HOPE THAT YOU'VE HAD A CHANCE TO GET OUT AND ENJOY SOME OF THE HALLOWEEN TOWN THAT IS DENTON THIS MONTH. THERE'S A LOT OF FUN THINGS TO DO. PLEASE [02:10:04] GO TO DENTON HALLOWEEN.COM TO DISCOVER ALL OF THOSE THINGS. ALSO, TOMORROW IS MY THREE YEAR ANNIVERSARY. SO HAPPY ANNIVERSARY TO MY HUSBAND CLINT AT HOME WITH OUR DOGS. AND YEAH, I JUST WANT TO SAY HOW GRATEFUL I AM FOR EVERYONE SENDING YOUR MESSAGES, KEEPING US INFORMED OF YOUR OPINIONS, AND SPEAKING OUT AT EVERY TURN. PLEASE CONTINUE TO DO SO. I LOVE READING YOUR EMAILS. THANKS. >> COUNCIL MEMBER HOLLAND. >> THANK YOU MAYOR PRO TEM, I WANT TO ECHO WHAT COUNCIL MEMBER PERRY SAID ABOUT ABOUT THE HALLOWEEN IN DENTON. DENTON IS THE IS THE HALLOWEEN CAPITAL OF TEXAS. THAT WAS THAT WAS DECLARED BY THE TEXAS LEGISLATURE A COUPLE OF YEARS AGO. REPRESENTATIVE RICHARD HAYS BROUGHT THAT. AND IT PASSED UNANIMOUSLY. AND I'M I'M REAL, REAL EXCITED ABOUT THAT. AND IF YOU THINK THAT'S NOT A A BIG DRAW TO OUR COMMUNITY, GO TO THE DOWNTOWN SQUARE, GO RIGHT NOW, GO AFTER THIS MEETING AND, AND LOOK AT THE NUMBER OF PEOPLE THAT ARE WALKING AROUND AND LOOKING, LOOKING AT AT GHOSTS AND GOBLINS AND PUMPKINS AND, AND TENTACLES AND STUFF. IT'S, IT'S REALLY SOMETHING. NOW, THE SECOND THING THAT'S UNIQUELY DENTON IS MY NORTH TEXAS MEAN GREEN. WE'RE OFF TO A FOUR TWO START. AND I'M VERY, VERY PROUD ABOUT THAT. NORTH TEXAS IS OFF THIS WEEKEND, BUT THE FOLLOWING WEEKEND, THE 24TH NORTH TEXAS TRAVELS TO THE UNITED STATES MILITARY ACADEMY AT AT ANNAPOLIS, NAVAL ACADEMY AT ANNAPOLIS, AND WE'LL TAKE CARE OF THE MIDSHIPMEN. AND THIS FRIDAY, OCTOBER 16TH, THIS IS ANOTHER UNIQUE DENTON THING. THE PETERBILT PRIDE AND CLASS PARADE. LADIES AND GENTLEMEN, IF YOU'VE NEVER GONE TO THE PETERBILT PRIDE AND CLASS PARADE, YOU NEED TO DO THAT. IT'S GOING TO BE ON THE DOWNTOWN SQUARE. IT STARTS AT 7:00. IT BENEFITS THE DENTON COUNTY UNITED WAY 55. OH, BEAUTIFUL, BEAUTIFUL PETERBILT TRUCKS DRIVING AROUND, HONKING THEIR HORNS, WAVING TO PEOPLE. GREAT. IT'S A IT'S A IT'S A UNIQUE DENTON OPPORTUNITY. GO SEE THAT. THANK YOU. >> THANK YOU. COUNCIL MEMBER RUMOHR. >> THANK YOU. I WANTED TO LET EVERYBODY KNOW THAT ON. THERE WILL BE A PUBLIC MEETING ABOUT SAFE ROUTES TO SCHOOL IN THE AREA AROUND NEWTON RASOR ELEMENTARY. SO STAFF GOT EXTERNAL FUNDING TO MAYBE ADD SOME SIDEWALKS, A LITTLE BIT OF BIKE INFRASTRUCTURE AROUND NEWTON ELEMENTARY. AND THAT PUBLIC MEETING WILL BE ON THURSDAY, OCTOBER 22ND AT 6 P.M. AT THE DEVELOPMENT SERVICE CENTER AT 401 NORTH ELM. SO I'M HOPING TO BE THERE. LOOKING FORWARD TO SEEING ANY PARENTS OR ANYBODY WHO LIVES. IF YOU LIVE IN THE NORTH LAKES NEIGHBORHOOD, YOU'RE INCLUDED IN THERE. AND THEN IF YOU LIVE PRETTY CLOSE TO NEWTON RASOR, YOU'RE INCLUDED IN THIS AS WELL. SO WHETHER YOUR KIDS OR YOU LIVE IN ONE OF THOSE NEIGHBORHOODS, I'D LOVE TO SEE YOU THERE. AND THEN AS I'VE BEEN WALKING AROUND HALLOWEEN, I AM JUST REMINDED OF HOW MANY CREATIVE PEOPLE WE HAVE IN THIS CITY BECAUSE I SEE ALL OF THE ART AND THE DECORATIONS AT THE DIFFERENT BUSINESSES, AND I'M JUST LIKE, THIS WOULD NOT WORK IF WE DIDN'T HAVE SO MANY ARTISTS AND CREATIVE PEOPLE IN THE CITY OF DENTON. SO I FELT A LOT OF PRIDE ABOUT JUST THE CREATIVITY OF OUR COMMUNITY. WHEN I, WHEN I WALK AROUND THE SQUARE ALSO, I HAVE BEEN DOING THE SKELLY HUNT. I FINALLY BROKE THE TOP 50 OVER THE WEEKEND. I'M ON, I'M LIKE NUMBER 44 RIGHT NOW AND PROBABLY FALLING. SO I WELCOME YOU TO TRY TO, YOU KNOW, GET A HIGHER RANK THAN ME. IT'S A LOT OF FUN. YOU GET LITTLE COUPONS THAT YOU CAN UNLOCK AS YOU GO AROUND AND SCAN EVERYTHING. IT'S A GOOD TIME. MAKES IT A LOT MORE FUN TO, TO WALK AROUND DOWNTOWN. IT'S LIKE AN EXTRA THING TO DO. SO I CHALLENGE YOU TO SKELLY HUNT AS WELL. THANK YOU. >> THANKS. COUNCIL MEMBER. I'M GOING TO REPEAT WHAT EVERYONE ELSE SAID. COUNCIL MEMBER HOLLINS. RIGHT. YOU GOT TO GO FRIDAY TO THE PETERBILT PARADE. IF YOU WANT TO SEE A REAL CHARMING MAYOR PRO TEM GIVE A PROCLAMATION, YOU MIGHT FIND ONE THERE DOING THAT. WHO ALL WENT TO THE OCTOBER PUMPKIN DROP? WAS IT NOT THE COOLEST EXPERIENCE IN DENTON EVER, AT LEAST SINCE, LIKE ECTOPIA, YOU KNOW, IT, IT WAS IT WAS GREAT. IT WAS GREAT TO SEE EVERYONE, HONESTLY. JUST HAPPY. HAPPY TO BE NEIGHBORS, HAPPY TO BE TOGETHER, NOT ARGUE. WHEN I SEE SOME OF THE THINGS THAT WE ARGUE ABOUT NOW, I WON'T GET INTO THAT. IT SHOWS HOW GOOD OF A STATE THAT WE ARE IN, I THINK. CHARLIE, I MET YOUR KIDS THERE. I THINK I WANT TO HIGHLIGHT ONE OF THE GAMES THAT I PLAYED WITH WITH GEORGE. THAT KRISTI HOSTED FOR US. IT WAS THE HARDEST GAME I'VE EVER PLAYED AND IT WAS CALLED LIKE, YOU HAVE 60S TO BE CITY MANAGER AND AND YOU GET A STICKER AT THE END BECAUSE BASICALLY THEY GIVE YOU A PROBLEM AND THEN YOU HAVE TO PICK WHICH DEPARTMENT AND HOW YOU FIX IT. YOU HAD 60S. WE [02:15:04] WERE GRADED ON A CURVE BECAUSE I WAS SOMEHOW AWARDED THE. I SURVIVED, BUT WE'RE GOING TO LEAVE THE JOB TO CASSEY BECAUSE I CAN'T DO THAT JOB. THIS JOB IS EASY, BUT IT WAS SUCH A GREAT EVENT. I CAN'T WAIT TO DO IT AGAIN NEXT YEAR. AND GREAT JOB TO YOU ALL FOR ALL THE AWESOME GAMES. LAST THING I'LL SAY, NOT DENTON SPECIFIC, BUT I FOUND OUT DURING OUR BREAK TODAY THAT THAT POPE LEO WAS DIAGNOSED WITH LUNG CANCER. I WAS I RECEIVED A PAPAL BLESSING FROM HIM BACK EARLIER THIS THIS SUMMER. LOVE POPE LEO AND JUST KEEP HIM IN YOUR PRAYERS. IF YOU'RE PRAYING PERSON AS I KNOW, DEVASTATING FOR A LOT OF PEOPLE. I'M NOT GOING TO LEAVE. ON A SAD NOTE, THOUGH, DENTON IS THE GREATEST CITY IN THE WHOLE STATE. AND THAT'S HOW IN THE WHOLE COUNTRY, IN THE WHOLE WORLD, THAT'S HOW I'M GOING TO LEAVE. LEAVE THIS. AND SO THANK YOU TO MY COLLEAGUES FOR A GREAT MEETING. THE TIME IS * This transcript was compiled from uncorrected Closed Captioning.