And good afternoon, welcome to this meeting of Denton City Council.

Today, March 24th, 2026.

It is 2.02 p.m.

So we'll call the meeting to order and then citizen comments.

Any citizen comments?

Thank you.

Takes us to request for clarification on agenda items.

Any requests for clarification?

Seeing none, uh, that'll take us to a uh taking chair's discretion.

We have a video we'd like to play and turn it over to staff for any comments to to set up the video.

We just wanted to um send off our city manager with a little video to say thank you.

Umday Monday on I I am gonna spend more time with my family.

I've got I'm just gonna come hang out here more often.

A big thank you to those who worked hard to make sure that this would come to fruition.

All the other staff who tirelessly work to make this happen, and a city manager rarely sits still.

Whether it's using your own funds that you have for contingency, you have an idea of where priority base is and what's a must-have, and then what are the things we're doing that are not necessarily valuable?

Well, you've always given us everything we need to operate, so we appreciate it.

I really really appreciate what you all do and how you do it and how you keep a smile on your face.

If it wasn't for you all and the staff, I don't think I'd stayed as long as I have.

Thank you.

They read a proclamation, uh, the judge did at the county this morning, and I wanted to say, geez, I I did all that.

Uh but I didn't, and I did make sure to thank that it wasn't me, that it was the people behind me that have um certainly done all the work and made me look good.

So um thank you all.

This has been a crazy ride, but it's time for me to step away and let someone else step in.

And I look back on on uh my efforts here.

Um fond memories, great staff, uh great accomplishments, and I have a letter for all of you and for the new city council.

It's all good stuff, it's just things to think about for the future.

Excellent.

Christy.

So the cookies just for you.

These are all for you.

Oh, we're gonna share with everybody else.

No, mayor.

Sure, thank you.

Uh shouldn't but you will.

Yeah.

There you go.

Oh, thank you.

Right.

Okay.

Um, well, again, yeah, thank you very much.

Great job on the video and and captures a lot uh and a lot more uh behind the scenes there, but thank you very much.

Uh that takes us to our um work session.

We'll dive right in for those tracking along uh the closed session.

Item A and B are not needed, right?

And is there another one?

Just A and B.

We're just placeholders, so we'll dive right into C D and E once we get to that point, and then we'll close, we'll we'll manage closed sessions, and then we'll go, we'll stay and close, go into chambers straight away and get started with uh our regular meeting.

We'll come out of closed at chambers and then uh get started with our the regular portion of our meeting.

We'll go straight through.

There's no public hearings, uh, so no breaks in action.

That's it.

Item 3A, ID 252325, receive a report, hold discussion, gift staff direction regarding the FY 2024-25 annual comprehensive financial report and annual audit.

Good afternoon, Mayor, members of council, Matt Hamilton, Chief Financial Officer.

Here today to introduce Sarah Dempsey, our engagement partner with Weaver and Tidwell, who performed our external uh financial audit for fiscal year 24-25.

And just before I bring Sarah up, I did just want to take a moment to thank our accounting staff.

It takes a number of hours, late nights, weekends to uh put the financial uh reports together and the schedules and and work through the audit process.

And so just wanted to take a moment to um share my sincere appreciation for all their their hard work.

So with that, Sarah.

Good afternoon.

Thank you for having me this afternoon.

I'm usually usually doing these at the evening.

All right.

Let's see.

Can you all see that?

Okay.

Yeah, I think you got to put it in the presentation mode.

That's what we're thinking.

How's that?

All right.

So my name is Sarah Dempsey.

I'm the audit partner on the engagement, and this is our core team that we had this year.

There's a lot of returning players, so the logistics was able to be kept the same.

It really helps the city when we keep a team that's similar year to year so that they know how the operations work and aren't having to go through that logistical process every year.

So appreciative of this team.

Um for a qual you have a quality control review.

So not only am I reviewing the audit, is our audit manager reviewing the audit.

We also have another partner that comes in and reviews.

There's a lot of layers of review with the government.

Um, not only our audit, but the city also submits for the GFOA awards.

So their report goes through an extra layer of review from the government finance officers association, um, a national association as well.

Um we also have the IT department come in and look at general controls over the IT practices and how those relate to the financial statements and the processes in place from that perspective as well.

The data analytics side, there's a lot of information that goes into the financial statement audit.

There's about a million lines of transactions, I'd say.

Um, so the data analytics piece is really where we're importing that information into data analytical software to pull out unusual items as we're going through the financial statement audit.

Um, for our government experience, um, Weaver does a lot of government audits a lot across the state, lots of cities.

So just up here for your reference.

Um I'm out of the Dallas office, we have a Fort Worth office as well, and that's where our local public sector team is.

So for the audit process, I'm required to just let you know a little bit about it.

It's done in accordance with the government auditing standards and the generally accepted auditing standards.

Um you also have a single audit because you expend more than one million dollars of federal expenditures and state expenditures.

So we did have two major programs that were audited for the federal portion, and then one that was audited for state.

So you have an opinion that we give on your financial statement audit, and then you get um an opinion on your single audit, your federal single audit and your state single audit.

So that's really what we're doing during the course of the audit is um auditing those major programs as well as the financial statements.

A portion of the audit also covers compliance because it's government auditing standards.

There are certain compliance requirements that were required to check, state laws, local policies, contracts, um, just some examples of the compliance piece of the audit as well.

So this is the timeline just for your reference.

It is a year-round process, but we are really in the city.

Um, our team is deployed for interim work, which occurs in September, and that's where we're looking at the internal controls that occurred during the fiscal year under audit.

Then we come back in January, and that's when the city has closed their books, and we're out here for about two months, two and a half months auditing the transactions.

Um, just for your reference, some of the significant audit areas that we audit or improper revenue recognition, and that stems from the um the risk that financial statements might be materially misstated for bond ratings and things like that.

So that's one of the areas that we look at, revenue recognition.

Then we're also testing several of other areas.

We're looking at cash investments, your long-term debt, liabilities, really just going down those financial statements when you have your ACFER.

Um, for our audit report for the results, um, we did issue an unmodified opinion on the financial statements, so that's a clean opinion.

And then we also issued unmodified opinions on your federal single audit and your state single audit.

So those are clean opinions.

That's the highest level of assurance, no modifications.

Um we had no material weaknesses during the course of the audit.

That would typically come up if we were auditing transactions and kept having to fix things or suggest journal entries, um, those types of processes.

So no material weaknesses during the course of the audit and no significant deficiencies to report to you.

Just some other results as part of the audit.

So as a firm or as the audit team, we're independent of the city.

And then there are no other outstanding items.

We issued our report, we issued the opinion, and there's no other written material between us and the city to make you aware of.

And so we do test for that by doing journal entry testing and selecting transactions and pulling the support for those, and that the proper approval process was in place.

I didn't mention your tax revenues, capital assets is a big portion of the test, the procurement process, employee compensation.

Those are just some of the things that I didn't mention earlier that are on this list.

The significant policies are located in your note disclosures.

Note one.

GASBY statement number 101 and 102 were implemented this year.

They did not have an impact on your financial statements like some of the others that we've had in the past with leases.

Although it was a big lift for the team to evaluate those and then you know, come to a consensus on what the impact was.

It does take a lot of legwork when those standards are implemented, so we appreciate that they dug into that.

Some of the accounting estimates are really provided by third parties, so the actuarial valuations, there's not a lot of estimates going into the financial statements that have a lot of management bias, but we do test estimates during the course of the audit.

The most sensitive disclosures if you're reading through, you can compare the disclosures prior year to current year.

They're gonna look very similar.

We know a lot of people look at the pension disclosures, revenue recognition, um, and those estimates.

There are no unusual transactions to report to you.

If we had anything that did not have proper accounting guidance, we would um bring those to your attention.

No identified or suspected fraud during the course of the audit.

If we had that, we would also bring that to your attention as well.

Um really this last thing says significant difficulties, and that is um that's the language that's in the standards.

There were no difficulties in in performing the audit.

You can tell that the city staff knows when the audit is, they want to help us get everything that we need so that we can get the information that we need to audit.

Um, and so we get a lot of support from city staff from all departments.

Um, mainly with finance because that's our point person, but we do have to access all of the departments as well.

So we appreciate it, and no disagreements to bring to your attention.

Uh we did request management representation, and that is them letting us know that they've given us everything, told us everything, and we get that on the day that we issue the report.

Um, no other consultations with any other accountants occurred, and then as I mentioned before, no other um communications have occurred.

So just a big thank you to the finance staff and to everyone that helped us get through the audit.

It's a lot of work.

We make a lot of requests, and we know that they have their day jobs, and we appreciate your support and their support as well.

I'm here to answer any questions.

Yeah, thank you very much.

I appreciate it.

And is it uh Sarah with or without an H.

No H.

There we go.

Okay.

The right way, right?

Awesome.

Um staff or the uh the consultant.

Any questions?

Seeing none.

Great.

Thank you very much.

I appreciate it.

Yes.

Okay, that takes us to item B, ID two ID 262456 receive report, whole discussion, give staff direction regarding audit project zero three, zero solid waste operations.

So should I skip or give her a minute?

I think she might just be in the office.

Okay.

No, no matter can someone someone know how to pull up the presentation she has, maybe.

She has maybe.

Yeah, but uh I figured they it's saved right there.

Yep.

Thank you.

Hello, Madison Rorshaw, Denton City Auditor.

Apologize.

No problem.

All right.

And this is our follow-up of the Solid Waste Operations Audits from 2000, the fiscal year 2023.

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 is based on the recommendations and management responses originally compiled in the audits of Solid Waste Operations Scale House Management and Safety Training and Reporting Compliance, which were originally issued in December 2022 and January 2023.

These two reports covered the effectiveness of controls of the city's landfill customer billing, scale house collections, and landfill staff safety and training, and landfill-related environmental reporting requirements.

So beginning with scale house uh transactions, the original audit found that customers were being accurately charged and these transactions were reconciled daily, helping to reduce the risk of fraud.

However, most voided and altered transactions did not have clearly documented justifications and were not periodically reviewed to prevent misuse.

Since the original audit, the scalehouse division has implemented a procedures manual that details the process of documenting and reviewing voided and altered transactions, including having two senior staff members review these types of transactions regularly.

The implementation of these procedures has significantly reduced the number of altered and voided transactions without clearly uh documentation doc sorry without clearly documented justifications as shown in the table.

In addition, during the original audit, the uh Solid Waste had recently uh created credit accounts, which allowed some customers to more quickly enter and exit the landfill by paying monthly instead of uh at each dump.

These accounts were generally billed accurately, but the billing process uh was cumbersome.

Further, the credit account option was not openly marketed and did not have clearly documented criteria and applications were not retained.

Since then, the monthly credit account billing process has been outlined in the scale house procedures manual and has been streamlined, helping to reduce billing errors.

Further, the credit account option is clearly marketed on the department's website, and an updated application, including career criteria and completed applications are now being retained.

Lastly, the original audit found that Scale House staff received adequate transaction processing training and were required to receive uh cash handling certificate from the finance department.

And all but one scale house employee had received that certificate during the original audit.

Uh, but training completion was not regularly monitored.

Since then, the scalehouse division has implemented training checklists to ensure its staff receive all required training, including the citywide cash handling training, and all applicable staff had completed this training as of January 2026.

Next, uh given the inherent riskiness of solid waste operations, training on occupational safety and operating essential uh essential equipment is vital.

During the original audit, we found that training offered to solid waste employees was generally comprehensive, including onboarding safety training, defensive driving, uh equipment specific training, hazard communication, and regular safety reminders, uh, but was completed inconsistently across the department.

In particular, onboarding safety training was not historically available to commercial or scale house division employees.

Safety meetings were not regularly attended due to scheduling challenges, uh, and the medium and heavy-duty vehicle defensive driving training program needed additional resources for complete rollout.

Since the original audit, the onboarding safety training has been implemented for the scale house and collections divisions.

Further additional safety meetings have been held addressing scheduling issues, and a third defensive driver, a tra defensive driving trainer was certified.

These changes have helped to significantly improve training completion rates as outlined in the table on the slide.

Further, the department has centralized the return retention of training records, helping to ensure that an employee's training information can generally be reviewed all in one location.

However, guidance for supervisors on how to document equipment specific training for their staff has not yet been developed, though the department indicated they are working on this currently.

Next, to effectively monitor an organization's safety history, uh injuries, property damage, vehicle accidents, and near misses should be consistently reported and tracked during the original audit.

We found that the city uh had an incident management system that was designed to centralize the management and tracking of safety-related incidents citywide.

But departments were expected to investigate and document any incidents per their own process.

At the time, Solid Waste had developed a standard form and incident and incident investigation and reporting training for supervisors and crew leaders to use.

However, the department did not have written policies or procedures for this process, resulting in documentation inconsistencies.

Similarly, the original audit found that solid waste required drivers to complete pre- and post-trip inspections of their vehicles.

However, there was not clear guidance for staff on when a truck should be taken out of service based on these inspection results.

Since then, the city implemented a comprehensive safety manual that requires all injuries and accidents to be reported to the risk management division of HR.

And Solid Waste has implemented an accident documentation checklist to assist supervisors in handling incident reporting consistently.

In addition, the newly created procedures manual for the collections and landfill divisions outlined the pre-trip inspection processes for waste collection and landfill vehicles, uh including when a vehicle should be taken out of service.

And la finally, the state of Texas requires um entities to obtain permits from the Texas Commission on Environmental Quality or TCEQ to operate a landfill.

As part of the permit, certain environmental data must be regularly recorded and submitted to a test to compliance, and TCEQ completes regular compliance investigations periodically.

The original audit found that Solid Waste Compliance Division had generally established effective processes for recording and tracking data collection or recording and tracking data collection and reporting activities to ensure the reports were submitted timely and accurately, though there were a few opportunities to potentially increase efficiency, including minimizing the use of handwritten data, evaluating the need for additional written guidance, and exploring options for a compliance software.

Since then, the department evaluated the need for additional guidance and explored compliance software options and determined that these were not operationally necessary or feasible at this time.

However, the Solid Waste Department has begun the process of implementing a supervisory control and data acquisition or SCADA system at the landfill, which will reduce the amount of handwritten data collection needed.

And lastly, uh in 2025, TCEQ completed two regular compliance evaluation investigations of the landfill and found that no there were no violations of the applicable requirements.

So in summary, we found that 19 of the 20 originally issued recommendations are implemented with one in progress.

Sorry, the one outstanding recommendation in an informal follow-up review in fiscal year 2027.

So that's this one.

Okay.

Thank you.

That uh concludes the Solid Waste Operations Audit Questions for staff.

Representative from District 2.

Thank you, Mr.

Mayor.

Uh, first let me let me start with saying uh kudos to Solid Waste.

Um it's it's a big improvement, big big reduction in some of the findings that you you had from last audit.

And I just I mean, some of them were just uh really amazing changes.

Uh so good job on that.

Um did we maybe I'm maybe I'm slow and missed it.

Did we report when we were porting on the completion events?

Did we report on time to completion or just completed events?

Uh you mean for the training?

Uh no, for the for the the number of events that that completed the percent completion.

There we go.

Oh, that's safety training.

But like, well, let me let me ask what I really wanted is do we have reporting on for customer service events of all the like the hundreds a day or whatever the number is.

Um do we have a time uh an estimate of how long the average time to completion is and are we tracking that so we can see how quickly we're moving people through the line?

Are you talking about oh at the landfill at the scale house?

Correct.

Um I apologize for not being yeah, sorry, no.

Um I I don't that wasn't part of the follow-up review.

I'd have to defer to um uh you know, I know we have data on when transactions are completed, but I'm not sure if I I don't know if we have tracking on how quickly people are moving through the line.

But I'm sure Brenda could answer.

And Brenda, I don't I don't need it immediately for today, but it in the future, if if you could send a council just sort of our time to completion for customer events, that I I'd be really interested in that.

Uh my last question is for the new SCADA system that we're implementing.

Uh is this are we gonna do automated reporting like you know, daily or quarterly or whatever, or or is it really that we we we do a report dump and then we send that to the state?

I'd have to defer as well.

Report dump is what Brenda says.

Okay, all right.

That answers your question.

No, that answers my question.

I appreciate it.

Thank you.

That's all, Mr.

Mare.

Thank you.

Thank you.

Representative from District 6, then one.

Thank you.

Uh Councilmember Jesser, just a quick uh comment.

Uh, not really so much of a question.

Thank you for the follow-up.

And um, I just want to echo the statements.

You know, we're talking about heavy equipment outside cash, citizens, customers.

There's lots that can go wrong.

And I am so impressed that on top of their day-to-day jobs and operations that they made time to create a procedural manual and put those and implemented that uh the safety cash handling training, tracking list of employee capabilities with the equipment.

Um I was I was just very impressed uh at the dedication and the time and effort that was put into uh continuing to raise the bar.

I mean, these are all just the standards.

Uh we don't expect everyone to be absolutely perfect, but um I'm just uh really grateful and appreciative, and it's a really uh important service.

So I just want to say thank you.

Okay, representative district one.

You mentioned something about data systems that were reduced the hands on something.

Will you go back to that?

Because I I thought I might have a question in in that regard.

Tell me about how if this is appropriate.

Those data systems work to reduce the hands on uh notations.

What are they using again?

Yeah, so it's it's the it's the SCADA system, which is uh has an acronym.

One second, I don't know what off the top of my hand.

Reduce the handwritten data.

The implementation of the supervisory control and data acquisition or SCADA system should reduce the the handwritten data collection required.

And so essentially the system will automatically collect some of the data that our employees were having to go out into the landfill to collect by hand manually previously.

Does that answer your question?

That does answer my question because I didn't know what they were doing with that.

Yeah you know, I just heard that it was happening.

Yes.

Uh and you know, that just really answers my question, but I also want to uh echo what uh Jill noted.

There's the pride in being able to tell citizens about our landfill and being able to do that with you know a lot of pride.

Uh that landfill is in my district and I pass it pass by the landfill all the time.

And so some of the things that I've heard from constituents of mine that live over in that area is that they don't even notice that it's there most of the time.

So that is something to be proud of.

That's thing we hear about a landfill.

I mean, you know, it's just it just blends into the to the to the environment.

So uh just wanted to pass that information on and uh looking forward to us continuing to do a great job.

And I think our landfill is like an award winning something, yeah.

We want some awards in regards to landfill uh usage, and you know what came in and started with the idea that the landfill was my favorite uh you know, part of my new learning.

So just want to pass that on.

Thank you all so much for your hard work.

Mayor Parton.

Thank you.

Can you go to slide five?

Yes.

I just wanted to call out that the incidents, not just the payout, but the incidents in general seem to be falling over time.

So I mean, kudos to everybody who's been working on this.

It looks like the training is helping.

Um and it looks like we were averaging payouts of about 200,000 a year, and and this most recent one was under 100,000, so that's cost savings as well as preventing injuries as well.

So just wanted to point that out, and thank you.

Yeah, we didn't have quite have the data to to make that statement.

Um, but we did plan to in the uh informal follow-up review next year, go back and look and see if that trend had continued or was uh was evening out because I think that you're right, it's very impressive kind of the change that has gone down in the recent few years.

Yeah, thank you.

Okay, any other question, representative from district uh four, then five.

Thank you.

Uh does does everybody is the presumption that everybody is is capable of operating some kind of vehicle driving something.

What do you mean by everybody?

Everybody who works for the solid waste.

Yes.

Um you you mentioned the scale house employees.

Oh, yes.

So they do do all the scale house employees are they is part of their job description driving something?

No, not all of them.

So some of our job descriptions include a specific year driver.

Um, and there's there's some like uh HR verifies that you have a life the an appropriate license if your job description includes that, and you're required to take defensive driving at least every two years per city policy.

The say most of the scalehouse employees are not included in that.

So um, but most of the collections employees and the landfill employees are.

So therefore they would not be included in the in the uh every two-year-old.

They are included in the every two year.

They just have a um more advanced defensive driving program than the rest of the city employees.

I see very good.

Thank you.

Representative from District Five.

Thank you.

Um I wasn't gonna say anything, but I appreciate Mayor Pro Tem for noting that.

I find it interesting um that the payment claims are going down, yet all of the safety hasn't been completed.

So given the shebutup, I guess I'll just ask.

Um I would have assumed that the safety training would have been paramount.

Can you go to the next slide?

I think it's the last slide.

Seven, six, seven.

Um, how much longer can we expect for for safety training to be implemented?

Yeah, so that one is um relevant to this the train the guidance for supervisors on documenting equipment uh equipment specific training.

And so that's being documented, it's just not necessarily being documented consistently.

So my understanding is that they recognize oh, we need to make sure that that's happening and are working on creating that right now.

So not necessarily related to the claims.

Correct.

Okay.

Great job on the claims, anyway, though.

Well done.

Thank you very much.

Any other questions?

So none, thank you very much.

I appreciate it.

Takes us to item C ID 262457 receive report hold discussion, give staff direction regarding audit project 034 fire prevention follow-up.

All right.

Oops.

All right.

Hello, Mayor and Council of Madison Rocha.

I'm still here.

And it's been a big audit day for y'all, huh?

Uh yeah, I'm here to present our our follow-up review of the audit of fire prevention.

Um I just reminded you what file follow-ups are for, so I'm not gonna say it again, but this review was based on the recommendations and management responses originally compiled in the audit of fire prevention issued in September of 2023.

This report evaluated uh fire prevention program activities, including routine fire and life safety inspections and systems testing, fire prevention public education, and fire investigations.

In general, the follow-up review found that all but three of the 12 issued recommendations were implemented, with the remaining three in progress.

So to begin.

The city's fire prevention division uh is responsible for performing routine fire and life safety inspections, as well as ensuring that fire protection systems throughout the city are functioning appropriately.

Historically, routine fire and life safety inspections were scheduled based on each deputy fire marshal's judgment.

Um but during the original audit, the fire department had just completed a building hazard risk assessment, which scores each building in the city based on available property data.

Since then, inspectors have been using this list to schedule inspections at the frequency listed uh in the table on the right.

Based on review of the 14 high-risk buildings in the city, um, not all received an annual inspection in fiscal years uh 2024 and 2025.

Specifically, 12 of the 14 occupancies had a documented inspection in 2024, while 11 of the 14 uh had one in 2025.

Um fire prevention staff reported that one of the occupancies was county-owned, which caused some confusion over responsibility, and another property had received multiple inspections, but they were not clearly documented.

Further, during the original audit, uh we found that there was a lack of written guidance on documenting routine fire inspections, resulting in inconsistency.

In 2025, the fire prevention division implemented written guidance on documenting initial and follow-up routine inspections and has created several checklists to guide inspections for different occupancy types.

While review of a statistical sample showed that not all follow-up inspections had clear documentation, um we expect that the implementation of these procedures um will correct this issue.

Should be noted that fire prevention rec records its routine inspections in the same system as development services, which creates operational issues as that system is not designed for routine inspections.

Um further uh fire prevention delayed the implementation of its inspection documentation procedures uh due to the expected implementation of a new building inspection system.

However, that implementation project was halted in July of 2025.

In addition, the fire department uses a compliance reporting system that allows businesses with fire protection systems, uh so suppression systems, sprinkler heads, things like that, to have their system tested by a licensed contractor instead of a deputy fire marshal.

The system has increased the division's efficiency as far less staff time is needed to verify that these systems are operating appropriately and it appears to be effective.

However, written procedures were needed to ensure that the reviews continued to be conducted consistently.

Since the original audit, written guidance on this report uh review process has been implemented, including one follow-up inspection should be created.

Based on review of 51 reports with deficiencies, only two did not have a documented follow-up inspection, indicating that follow-ups are generally being performed timely.

Further, the fire fire department renewed the city's contract with the uh the fire protection system compliance reporting system in 2025.

Based on the original report, the contractor uh generally seemed to be accurately remitting revenue to the city.

However, we recommended that the fire department implement a documented reconciliation process.

Since then, the department has created a reconciliation SOP, but documentation of performed reconciliations were not available for review.

Next, in the original audit, we found that the fire department's public education offerings were generally based on national fire trends, though best practices recommend location-specific fire data be used to proactively address these trends.

Since the original audit, the fire department has created a community risk reduction officer who has begun issuing monthly newsletters that address real-time fire and life safety concerns.

In addition, targeted education materials have been developed to address Denton-specific fire-related trends, such as uh the dangers of hoarding video released in 2025.

In addition, fire prevention related fees were revised in fiscal year 2026, including an increase to the second follow-up inspection fee, indicating that the fire department is being more proactive in its cost recovery for activities that require the fire prevention division to repeat its efforts.

And then finally, uh the original audit found that while some fire investigation policies and procedures have been adopted, additional guidance would help improve documentation consistency of investigation reports of investigation reports, uh body worn camera procedures and fire investigation evidence handling.

Further, the fire investigation case documentation was not being retained per the criminal justice information system standards, and physical investigation evidence was not uh stored in a secure uh stored in an appropriate location.

Since then, the fire prevention division uh implemented several new investigation-related standard operating procedures and is currently working with the city's technology services department to move its case files into a CGIS compliant digital storage location.

In addition, physical investigation evidence has been moved to a new location that is appropriate at this time.

So, in summary, uh we found that nine of the 12 originally issued recommendations are now implemented with the three uh in progress listed on the slide.

And based on this information, we plan to include follow-up review of those outstanding recommendations and an informal follow-up in fiscal year 2027.

Have any questions?

Thank you.

Questions for staff.

Representative from District 2, then four.

Thank you, Mr.

Mayor.

Um that was uh maybe I'm just not understanding it, but um one of the the public education component, did it um we implemented some of those public education follow-ups because of the events and the risk that we encountered, but maybe I missed it.

Did our education result in risk reductions and improvements?

Did it the follow-up occur?

Um, I'm just trying to follow on that.

Yeah, so the recommendation was that we should begin using kind of our local fire data to inform the education offerings.

Um, and and that we did see.

Um, we had did not do any work at this time to look into are our offerings reducing fires?

Is that what you're asking?

That's what I'm asking.

Yes.

We haven't done that work.

If that's something that council is interested in, we can do a different audit, I believe.

Well, I I won't ask you for that at this time.

I I will just whisper that into people's ears for future consideration.

Uh and and then I'll just uh give a personal shout out to Dr.

Shoot.

I really appreciate the the work that she's done on some of the electrical work in in town to improve safety.

So thank you.

Representative from District 4.

Thank you.

Uh a question and a follow-up.

With the exception of the 14 high-risk buildings, which kind of gives me pause.

How frequently should a commercial business expect a fire inspection?

So it depends on their risk level, right?

But at least once every three years.

Okay.

Okay.

And if a violation is found, what's the what's the procedure?

My understanding is that the if it's something that can be fixed right then, the fire marshal will just say, hey, you know, move this or or whatever, and then they can just address it at that time and they'll have a uh a complete inspection.

Um or they might schedule a follow-up inspection if they need additional time.

I'm thinking like improper wiring and out-of-date fire extinguisher, something like that.

Yes.

A follow-up in 30 days or something.

Um I don't know the exact timeline.

Uh I think it kind of depends on what it is.

Um if it's something that requires new construction or something like that, they'll they'll work with the the commercial business to ensure that they have adequate time to actually complete that.

Perfect.

Thank you.

Okay, thank you.

Any other questions for staff?

Um I just I don't know if it's so you you you mentioned the new technology coming on board, but Ms.

City Manager, am I right?

We're we're I mean yeah, I mentioned that they were plan they had delayed some of their implementation because there was the new technology, but then the that got stopped in July of 2025.

So then they they went ahead and implemented their SOPs with the current technology.

Got it.

And so my question, so yeah, forward looking, thank you.

I think we don't do we have a head of that department.

Is that been named or interim or because I just want to know how we're if we're making decisions if that person is up to speed on all the the things?

Yes, and I'll have Christine.

Uh there is a new uh chief uh uh uh technology officer.

Uh he started two weeks ago.

Um and um Christine can tell you a little bit about him.

Okay.

Uh we hired Michael Deakin, who is our new chief technology officer.

He started on March 9th.

He has about 30 years in the IT business, most at an executive level of being a CTO, a CIO.

Uh so he is re-looking at our enterprise applications.

This one's not an enterprise application, it would be department specific.

Uh so this will be one that they'll be able to get back on track once there's funding and implement.

But our general, our larger pause that you're referring to was on our large enterprise asset systems.

But uh specific to this, he's reviewed or not reviewed, or does it matter?

Not reviewed.

This one this would be one that would just go through tech governance, so it won't have as much of a process as a larger application.

Um so we'll we'll get with Chief Hedges and get it back on track.

Okay, yeah, okay.

Thank you very much.

Appreciate it.

Um other questions?

Seeing none, thank you very much.

I appreciate it.

Good luck on your test.

That was last time.

Oh, okay.

All right, we're making sure.

My bad, Mayor.

I thought you had a chance.

That was last time we tried to do mid-year.

So got it.

Okay.

Well, thank you.

Um that takes us to item D, ID 260278.

Receive report, hold discussion, give staff direction on pending city council request for Denton's newspaper of record.

Good afternoon, Mayor and Council.

Christy Fogle, Chief of Staff, here to uh kick us off with our um first two-minute pitch of 2026.

Uh as a reminder, um the uh there can be up to seven two-minute pitches per meeting, one per council member.

Staff will introduce the request, the requesting council member will have two minutes to describe and justify their request, and each remaining council member will have a maximum of one minute each to provide feedback and indicate their support.

Staff will respond to all requests where a consensus of at least four elected officials is established with an ISR and then a consensus of six is required for a resolution or ordinance to be placed on a future agenda.

Um as a reminder, you can indicate in your support um a high moderate or low priority rate for your item.

And with that, I will turn it over to uh Mayor Hudsmith to present his two-minute pitch on New Denton's newspaper of record.

Got it.

Uh so no end uh request here is just to ask to have staff review.

We have three, I think, news agencies now.

One delivers to about 40,000 homes.

And so I don't know what fits best, but I do know it's new, and I think it would be prudent to uh evaluate to see what's out there and have staff come back.

It is truly neutral in its request on staff or to review, see what's out there, ask questions, do their due diligence, and come back to council.

What a suggestion.

Uh I'm not advocating one way or another.

I'm just asking to empower them to go giving the things given that things have changed.

I think it's prudent to at least evaluate what what's available, especially considering uh for a while we've not had someone that delivers.

Now we do, and I think that's noteworthy.

So that's the that's the request just to give them the authorization to do so.

Uh and so uh I'm supportive at a what are the options again?

High high, medium or low medium priority, moderate.

Yeah, got it.

So anyone else.

Mayor Pro Tim.

Thank you.

I'm supportive as well, low priority.

I don't think it's super time sensitive.

Okay.

Anyone else?

Representative from district two, then four.

Uh yeah, I'm supportive at a low priority.

Representative from district four.

I'm supportive at a low priority.

Okay.

Anyone else?

Representative district five.

I think you got your four, but um just for the record, I'll say I'm also supportive.

I would have loved for you to have said the other media outlets available just because I want to know what else is out there, but um I'm good with it.

Got it.

Um it's community impact, Denret Chronicle, and then I forget the other one, and they're gonna get I'm gonna get in trouble for that, but uh there's there's a third.

Uh yeah.

Um else uh representative from district six.

Um, so I think you know it you've already got more than enough um to move forward.

What I'll say is this is something that's very important.

It's a big revenue item for periodicals.

It uh lists all the legal notices when you are trying to find someone to let them know that they have been sued uh when you have uh when you are probating a will to make sure that anyone who might be interested or has a more recent will comes forward.

Uh but you know this is this is a big deal, and so um, you know, I I appreciate the due diligence that I know will be done as we come back and look at it again.

Thank you.

Thank you.

Anyone else?

All right, councilman Burke.

Um agree, low priority.

Okay.

Got it.

Okay.

We're good.

Got it.

Okay, thank you very much.

I think the consensus is low priority.

Um very good.

Thank you very much.

Okay, so that takes us to our closed session, and so the city council will now at 249 p.m.

convene and close meeting to deliberate the closed meeting items set forth on the agenda, which include the following.

Again, we're skipping item A and item B.

That takes us to item C, ID 262472, uh deliberation regarding personnel matters under Texas Government Code Section 551.074.

And that specifically would be uh to evaluate, reassign duties, discipline, and dismissal of internal auditor to complete mid-year review.

So mid-year review of the auditor, it will be first.

We'll set the room.

Oh, call all three.

Okay, and then items D, ID 262473, deliberations regarding personnel matters under Texas Government Code, Section 551.074, and item E, ID 262471 deliberations regarding personnel matters under Texas Government Code, Section 551.074.

So if you're tracking along in order, that'll be the auditor, then the municipal judge, and then the city attorney.

And we'll set good evening.

And the city council has now at 526 p.m.

reconvened from the closed session, and no official action was taken.

That takes us into our meeting.

This is um it's a continuation because the special call meeting takes us to the consent agenda.

Nothing was pulled.

I'll I'll take a motion.

Uh representative from district six.

Uh council person jester, I move approval as presented.

Representative district four.

Second.

We have a motion and a second.

Any discussion.

Seeing none, let's put on the screen.

That passes 7-0.

Takes us to our items for in no yes, there's only items for individual consideration.

So let me get there.

Item 3A ID uh 260348.

Consider adoption of ordinance of the city of Denton, a Texas Home Rule Municipal Corporation authorizing the city manager to execute a contract with CBS Mechanical Services, Inc., DBA CMS Mechanical Services, Inc.

for HVAC services for the facilities management department.

Hi, good evening.

My name is David Moore's facility manager for the city of Denton.

I'm here to seek your approval for HVAC services with CMS Mechanical Services.

A little bit about why we need this contract.

The facilities management department requires a qualified commercial HVAC contractor to provide comprehensive maintenance repair and replacement services for its municipal HVAC systems.

We support 200 facilities and approximately one and a half million square feet.

The city operates a wide range of HVAC equipment for one and a half ton split systems, 180 ton shelter systems, requiring expertise across diverse system types.

The HVA systems are vital for protecting millions of dollars of city assets.

Excuse me, including sensitive IT servers, communications equipment, and administrative records, all of which require climate control to prevent heat and humidity damage.

This contract also includes planned capital replacement projects.

And of course, the city will only pay for services rendered and not obligated to pay the full contract amount unless needed.

These charts highlight the estimated annual cost for HVAC service repairs and equipment replacement.

So our recommendation is to approval of a one-year contract with four additional one-year extensions for total potential term of five years not to exceed $9,075,437 with CMS Mechanical Services.

Okay, thank you very much.

Questions for staff.

Seeing none, I'll take a motion.

Mayor Tim.

I'll motion approval.

Representative district four.

Second.

Representative from District Five.

Just a quick question.

Um, were there any companies local that bid on this?

Any Denton specific companies?

Are there any Denton specific companies who provide this kind of service?

Yes, there were several other companies that provided quotes for this, and CMS is the one that won the quote on low bid.

And they were Denton, they were housed in Denton.

There was one house in Denton, if I remember right.

Correct.

Yeah.

Thank you.

Yeah, based on the pricing thing I'm looking at.

That's CMS, right?

CMS is who won the contract.

Correct.

CMS is is it here local in Denton?

I thought it was N DFW, but not Denton.

I'm sorry if I'm wrong.

Based on based on this, right?

It says they're in Denton, someone else and now, someone else compeled someone else's McKinney.

Okay, my apologies.

They're in Denton.

My apologies.

I thought they were in Barbers Bracken.

Thank you.

May have multiple offices.

Okay, we have motion and second.

Any other discussion.

Let's vote on screen.

That passes 70.

Takes us to, thank you.

That takes us to item B, which is ID 260352.

Consider adoption of ordinance of the city of Denton, Texas, Home Rule Municipal Corporation authorizing the city manager to execute a contract with Acceleron U U.S.

Inc.

for turbo replacement parts and services for Denton Energy Center, providing for the expenditure of funds, therefore, and providing an effective date.

Good afternoon, Mayor.

Uh council members.

My name is Jose Vaiton, executive manager of power supply at DME.

I'm here to uh present uh to you our findings from the solicitation of RFP uh for turbo replacement parts and services at the Denton Energy Center.

A little bit of background.

So the Denton Energy Center has 12 engines.

Each engine has two turbos for a total of 24 turbos.

In uh its role on a land-based application.

Um it sees a lot of up starts and stops as opposed to the marine application, which they were originally uh designed for, which sees a lot more consistent runtimes and less start and stops.

The the constant start and stopping uh leads to thermal expansion of the metals, so the metal expands and contracts over time with uh so many starts.

You start to see the metal fatigue, uh, especially on the exhaust side of which is the hotter side of the turbo, and that will lead to stress fractures of the metal, and so it is important that uh we inspect them.

And so the OEM has uh issued a bulletin in February of 2025 to now incorporate the number of start and stops as well as the uh number of operating hours that it's normally used in the marine application.

Um in our situation, uh our current engines have around 13,500 hours of operation runtime, and some of the engines are between 3500 and 4,000 start stops.

The manufacturer recommends to start inspections at around 2500 uh start and stop cycles.

So we are a little bit past uh the start and stop cycles that the OEM is recommended, so which is one of the reasons why we're bringing this uh contract uh a little bit earlier than we would have otherwise.

We would have waited otherwise to 16,000 as per the original OEM recommendations, but as they have seen in the field, they're starting to see a little bit more wear and tear given the start and stops uh that each engine or different power plant may be subjected to.

And so we are uh you know, part of the task of this uh RFP would be for the vendor to uh do the maintenance that the checking of these turbos, which is uh dismantle the turbo measurements, uh, clearances, uh clean bearings and and uh casings, and check for any abnormal wear and tear, and includes the balancing of the assembly.

As you can see there in the picture, the size of the turbo, so these are pretty hefty pieces of equipment.

Uh so there is uh a distinction between the repair versus replace.

Obviously, we want to get into these turbos before we have a catastrophic failure, which we're here is the repair if there's damage, but repairable it's 125,000 per turbo, and for 24 would be 3 million dollars.

Uh as opposed to if you wait too long and have a failure of some sort, uh the turbo to replace would be 400,000 per turbo.

Again, in this uh situation, we're hoping to not have to replace 10 turbos, but we are putting in the budget for replacement of up to 10 turbos at a cost of 4 million dollars.

Um as part of this RFP again, the ODM would come in and inspect the engines, look at uh how many start and stops they have on each one so they can identify which ones need to be serviced first and uh overhaul the turbo, perform any field services that are needed on site, and then they take the equipment over to their facility, which will also include um turbo parts that we can have some on hand in case we need to do more expensive repairs.

So a summary of the expenditures again we have 24 turbos of 10 of which, if we had to replace them completely, would be 4 million dollars.

All 20 we expect to service all 24 turbos, and that that would be around 3 million dollars, and then um should there be any need for any additional uh critical components, uh there's another 2.52 million dollars for that for a grand total of uh 9.52 million dollars should we need to uh replace or do uh more extensive repairs on these turbos.

And so of that 9.52 million, we will be cash funding two and a half million dollars, and the remaining will be uh based on 10-year bonds.

So our staff recommendation would be for council to approve a five-year contract award to Acceleron US Inc.

for the turbochargers at the city at the Denton Energy Center, excuse me.

Again, uh there were only two vendors who uh you know applied, and only Acceleron met all the criteria for this RFP.

Any questions?

Okay, thank you.

Questions for staff?

Uh representative from district four.

Thank you.

Um are repair parts readily available for for these?

Well, we we are uh seeing some supply chain issues, so especially with the shipping, a lot of these parts are shipped via freight on on boats, and if you need to fly them, it costs more.

So there are some challenges currently with the freighting of these parts, and so uh there these machines are being used more and more extensively around the country, so parts can get a little bit scarce.

Boats and airplanes make me makes me think that these are these are not produced in the United States.

Correct.

In Finland, and these are specifically made in Italy.

Is that right?

Yes, sir.

Interesting.

Um what about replacement availability?

Same same situation?

Yeah, so that they will they will have some turbos that we can potentially get really relatively quickly in case we need a full replacement.

Uh but they try to re repair and replace the same turbo if possible.

And and are those new replacements or are they rebuilt?

Well, you ideally we would be fixing and repairing the very turbos that we took off.

So we're trying to maintain the the same like for light turbo.

What's the lifespan of the turbo?

Under normal application, it's around 10 to 20 years.

If you get in there and start doing the proper maintenance, you can extend the life of these turbos.

You can start pushing 25 and 30 years.

But it's important that you get in there as soon as possible to identify any stress fractures before they have a catastrophic failure.

And how old are these 25?

So these were uh June of 2018 was the commissioning, so we're eight years.

The 16,000 mark, which is what was the recommended amount, would have pushed pushed us to around 10 years of service life.

So this these five-year contract would kind of get us into the expect inspection period of these uh turbos.

And so once we see and get in there, we can kind of get a better feel for if we're starting to see more stress for stress fractures, if any.

If not, then the repair costs would be lower.

Are the repair and replacement, the labor of repair and replacement done in-house?

Well, it's it's gonna be done by the ODM.

They'll be here and they'll be doing most of the work.

The good thing is that our guys will be able to learn from them, and in the future, those costs would be lower.

I see.

Very good, very good.

Thank you, Mayor.

Thank you, representative from District 2.

Thank you.

Um so um we the these stress fractures are an OEM release, um, you know, saying that you know things aren't quite as rosy as as when we sold you that coming back at about 13 and a half instead of 16.

Um so I guess the what we're really looking at in terms of can, but it's unclear to me if we'd gone the full 16.

What what what's the delta that we're looking at from our original butt budgeted estimates to now having to reduce cycles, like the extra that we're we're having to get to to get back to our original projections?

Can you estimate that?

It's it's hard to estimate that.

Um, because it depends on the market prices and the um the actual uh performance.

So I guess how many times you start and stop the units.

So it's it's a little bit difficult to kind of give you what that would have been.

We're I think right now we're we're kind of exceeding the recommended 2500 start and stops that they came out with the bulletin.

Um otherwise, you know, it would have been about two more years to get to the 16,000 mark estimate, right?

And and do we have any feel for what the failure rate is?

I mean, we haven't had failure rates, but in the for these devices out in the field, what's their failure rate?

And I'm gonna ask you then to project that over two years because this is where I'm going, you know, with the the the 400,000 dollars and and the 125,000 dollars a unit is really what what's our risk profile is really what I'm trying to get to.

Yeah, it's it's difficult to say what that risk profile is since we haven't really gone in there and started inspecting one or two of these to see if those stress fractures are already starting to materialize or not.

So it's kind of difficult to give you an accurate representation of what that risk profile may be currently.

So until we get into one or two of these turbos, we could then give you an idea of how our turbos are doing.

We don't necessarily know uh from the manufacturer how many failures are seeing at these levels.

Uh I haven't received those uh numbers.

Have you?

No.

We haven't received uh that type of information from the OEM.

So if we get in there and we find our all our 24 turbos are are are rosy and there are no stress fractures, what are what's then our obligation in this contract?

None.

We only pay if we repair.

So it would be minor maintenance at that point, which is much lower.

So if we hypothetically find four, then it's four the the what is it for four twenty-fourths of the estimate.

Okay.

Exactly.

Yes.

Um, and then um why I mean, where's where's the the 10 replacement and all 24 repair coming from?

So if we don't know how bad they are, why are we why are we guesstimating 10?

We we're trying to budget dollars for an unknown.

We don't know how our turbos look.

So we're just trying to get an approval to spend up to that amount.

Doesn't necessarily mean that we will spend that amount.

Um, but it just depending on the the status of those turbos as we start the inspections.

And and there's there's no field data on this to give you a clue.

I mean, I know I just asked that, but I'll just sort of a gas that there's no field data.

Right.

All right.

Um I know we have to do maintenance, and whenever we do maintenance, we can't be running and making electricity.

What's what's the downtime and what does that cost us in terms of of generational revenue?

So you know how long they're down.

So we this is Arthur Pando, the new plant manager at the deck.

And so uh introduce them to you.

Okay.

Oh, Arthur Pondo, I can help you with your question.

For the downtime to replace these would be very minimal.

Uh, we have what is called swing sets.

So ideally, we have these swing sets ready to go as hot spares as these two turbos come out for the maintenance overhauls.

Two turbos go in that are already ready to run, and the downtime is a quick turnaround engine back up and available to go.

Like same same day kind of yeah, yeah, roughly uh probably a day or two at the most.

We can have both turbos installed and then do the repairs on the ground and then move to the next engine thereafter.

Uh well, yeah.

Well, I'll see what the rest of my counselors uh fellow counselors have to say.

I I'm just I'm very uncomfortable with with no baseline data for us to make a decision on.

Thank you.

Representative district five.

That line of questioning with Dr.

Beck was actually very helpful.

It's gonna negate some of my questions.

Um I was also gonna ask hey, do we think 9.5 is enough?

So um all of them have 16 and a half thousand engine hours, roughly.

They vary from engine to engine, and we try not to have the same amount of hours of operation so that they don't all come due at the same time, so we can stagger the maintenance across the engine so that we're not down for a prolonged period of time.

That's great to hear.

The manufacturer is abroad.

I assume the team coming to repair is also from abroad, or are they based here?

They are based here uh out of Houston.

Okay, out of Houston.

Yes.

Um, I heard you say our guys are going to be working with them to learn how to do it.

Does this company have some type of training program?

Are you gonna be putting them through formally so that this is not gonna be an ongoing issue moving forward in the future?

Uh I will have to get back to you.

I can I can do some research on if there is training available through the OEM.

Uh as for us, we have currently plant personnel have maintained the turbos themselves in-house with the minor maintenance, so they are familiar with the work.

Uh it's just the quantity and amount that we would have to be performing that we would like to see uh what is what it all takes to complete, and then we'll let the guys kind of run from there.

But yes, if training is available, we would like to get them involved.

Mayor, if I may just one more let me so let me try to restate what I heard you say.

Our guys know how to do it, but there are so many we need to bring in help to do it.

Our guys know how to do a limited amount.

Okay.

Yes.

Okay, all right.

Thanks very much.

Thank you, Mayor.

Any other questions?

Uh seeing none, representative from district six.

Uh move approval.

Mayor Protoum.

Oh, second.

Motion and a second.

Any other discussion?

Seeing none, let's vote on the screen.

That passes 6-1.

Takes us to item three C.

And that's ID 260394.

Consider adoption of an ordinance of the city of Denton, Texas Home Rule Municipal Corporation authorizing the city manager to execute a contract with Jago Public Company as the primary vendor for Eurovia.

Atlantic Coast LLC DBA Sunmount Paving Company as a secondary vendor for supply and installation of hot mix asphalt concrete for streets department.

Good evening, Mayor, Council Stephen Gage, General Manager of War of Utilities and Street Operations.

I'm here to present to you the contract for our hot mix asphalt.

Hot miss asphalt is a combination of asphalt binder and aggregate heated at the batch plant or at the production plant.

It's uh the primary material used for constructing, resurfacing, and repairing roads.

And the material is always it's selected because of its durability, skid resistance, and it creates a smooth surface for driving once it's fully cured.

Uh the temperature controlled uh mixing process ensures that the asphalt can be placed, compacted, and hardened into a strong roadway surface.

Common uses are uh for street overlays, patching and repairs, roadway reconstruction, and pavement preservation projects.

So this contract supports the annual street maintenance and preservation efforts.

The street department requires over approximately 20,000 tons of asphalt annually.

The contract includes not only the supply of the material but installation services when needed with specialized equipment.

Uh delivery options, we can either pick it up in our trucks or we could have it delivered to the job site, and it supports uh improved pavement lifecycle management and infrastructure reliability.

So the evaluation process, we issued uh an RFP was issued to uh 296 companies, our prospective suppliers, and advertised publicly.

Three proposals were received.

Uh the evaluation was based off of uh delivery capac uh capability, the specification compliance, and price.

So uh the the list, the five-year spend includes the asphalt plus a three percent contingency.

Uh the total contract value over the five years is for 20 million dollars.

So staff recommendation is that we award the contract to Jago as our primary supplier, and uh some mount paving as our secondary, and the contract term is a one-year contract with four one-year extensions, and with that, I will stand for any questions.

Thank you, representative district four.

Thank you.

How how is that how is that measured?

That just seems like an odd way to measure that for a year.

You know, the tonnage?

Yeah, I guess.

I guess it's it's based off of our um the actual work that we do by yards and the weight of the material.

And and is that is that fairly is that consistent enough over a year period that you can finitely say it's gonna cost this much money year to year to year?

Interesting.

It's based off our capital planning for the projects that we have, so we'll know how many lane miles and how much and material we expect to use.

Here's a dirt road, if you'll pardon the pardon the expression.

Uh is there any is there any way to convert a asphalt road to a concrete road?

There is, yes.

It it would it would require engineering, we'd have to do some uh soil sampling, we'd have to understand how corrosive the soil is, how stable it is.

Um but yes, the short answer is it can be.

Is that done?

Is that regularly not typically okay?

Okay, thank you.

Yep.

Representative district two.

Thank you.

Um I know some of the vendors we've been using over the last few years have had asphalt mix issues, and most of those in are in terms of our contracted roads, not for this kind of use, but I'm I've been keeping my eye on this issue of the mix cracking early, you know, causing us to go back early, causing us to demand the vendor remill, repo, uh, and and that's all fine.

We're not out any money as the city, but our constituents are out, disruption time, and energy, and because now this project that was supposed to take nine months is taking 15 or 16 months.

So, how are we keeping our eye on that quality control issue that's hit us in the last year or so?

Well, we we monitor the specifications of the material that we're receiving, and then by you know, this year our primary is gonna be Jago, which is local.

Um, and previous years our primary was Sunmount, and they were uh further away, and so that distance actually impacts the temperature of the material by the time you get it to the job site.

And so on a cool day, the material can cool down and it would have an adverse effect.

So, for how often do you expect that we'll have to go to the secondary?

Uh well, we we were pretty clear in the contract where we had uh guaranteed minimums and uh Jago opening up for us when we needed the materials, so we don't expect having to go to the secondary, but only in emergency situations.

All right, I appreciate that.

Thank you.

Yes, representative district uh four.

No, you still you back?

No.

No, I'm sorry.

Representative uh different district five.

Um I'm always happy that we're going with a local vendor, so please don't misperceive the intention behind my remarks.

Um the only thing that jumps out at me is that almost this is sent to almost 300 potential people, and only four put in bids for this, correct?

Yes, sir.

How do we get from 296 to 4?

I mean, I ultimately I understand that it's competitive, but any thoughts on that?

I don't I can't I don't have an answer for that.

Maybe from purchasing.

Thank you for coming down.

Not a problem.

Lori Heel, purchasing manager.

Um, so the 296 is a very broad category.

Sure.

So within that category, there is probably not as many that do this work.

Um there's a class code and an item code.

So underneath the class code of 296, there's probably at least a hundred different item codes, and asphalt would be one of them.

So there's probably a lot of vendors in that 296 that cannot do this work.

So the maybe more like a hundred who only do it?

Maybe probably less.

Oh, way less.

Okay.

And it's it's it's 296 is the people that are registered with us in the the city of Denton.

Oh, that's the total pool for everything.

Okay, not just companies who do asphalt.

Yes, correct.

Okay, all right.

That makes much more sense.

Thank you very much.

Okay, any other questions?

Seeing none, Mayor Pro Tim.

Oh no, sorry, representative from District 6.

That's all right, I'll take it.

Uh I move approval as uh presented.

Thank you.

Mayor Pro Tim.

I'll second.

We have a motion and a second.

Any other discussion?

Seeing none, let's vote on the screen.

That passes 7.0.

Thank you very much.

Appreciate you.

Takes us to item 3D A 25004 D.

Consider adoption of an ordinance of the city of Denton, Texas, regarding the issuance of the service plan pursuant to Texas local government code, section 43.052 for the provision of city services to approximately 1.9.09 acres of land, generally located 740 feet south of Edwards Road and 290 feet west of Swisher Road.

Good evening, Mayor and Council.

Bryce Van Arsdale, assistant planner.

This is A2504D, a Swisher Road Annexation Service Plan.

The request is to consider the adoption of an ordinance approving a service plan for the 1.09 acres of land located south of Edwards Road and just west of Swisher Road.

In 2012, whenever this non-annexation agreement was initially signed, the Texas local government code required a service agreement with which um the under which the city would provide the services and state that intent for the NX land.

Um this is very similar to the MSA, the municipal services agreement, which has already been approved by you all the last time that this annexation was before you.

The service plan does provide all the same services from the municipality, which are listed within the municipal services agreement.

I'm happy to stand for any questions.

Thank you very much.

Any questions for staff?

CNN, and do you have the a similar present you have a separate presentation for E?

I do.

Okay, great.

Okay, thank you.

So uh Mayor Pro Tim.

A motion approval.

And representative from District 2.

Second.

We have a motion and a second.

Any other discussion?

Seeing none, let's vote on the screen.

Passes 70.

Takes us to item 3A, which is A25004 C.

Conduct the second of two readings and consider adoption of an ordinance of the city of Denton, Texas, annexing approximately 1.09 acres of land, generally located 290 feet west of Swissure Road and 740 feet south of Edwards Road in the city of Denton.

Good evening, Mayor Council.

Bryce Manar's Dale Assistant Planner.

This is A2504C.

Really, this is the second reading of the Swiss Road annexation ordinance.

Again, this is a property that's located just west of Swisher Road and south of Edwards Road.

It's approximately 1.09 acres of land.

It was under a non-annexation agreement, which expired in 2020.

Um a new NAA has not been signed, and this property is currently undeveloped.

This is the last of several items in the annexation schedule.

Um so I will go ahead now and read the ordinance caption for the second time into the record.

An ordinance of the city of Denton, Texas, annexing approximately 1.09 acres of land, generally located 290 feet west of Switzer Road and 740 feet south of Edwards Road into the city of Denton, Denton County, Texas, providing for a correction to the city map to include the annexed land and providing for a savings clause in an effective date.

I'm happy to stand for any questions.

Thank you very much.

Uh questions for staff.

And please note this this requires a is it technically a supermajority?

Yeah, uh supermajority vote.

Um and uh seeing no questions, representative from district two.

Move approval is presented.

Representative of district five.

Second.

We have a motion and a second.

Any other discussion?

Seeing none of this vote on the screen.

And that passes seven to zero.

Takes us to item three F, which is A250003C.

Conduct a second of two readings and consider adoption of the ordinance of the city of Denton, Texas, annexing approximately 1.03 acres of land generally located on the north side of Mills Road, approximately 100 1,453 feet west of South Trinity Road on in the city of Denton.

Good evening, Mayor, members of council.

Ashley X that associate planner.

This is A253C.

This is the second reading for the Mills Road annexation.

The request is to conduct the second of two readings and act on an ordinance to annex approximately 1.03 acres of land.

Since the first reading before this body in February, the owner has signed the non-annexation agreement.

So staff does recommend denial of this annexation.

Since this is the second reading, we would typically read this caption.

However, since they signed the non-annexation agreement, we are bringing this forward as a denial as a way to formally close the process.

As stated, staff recommends denial since the owner has signed the new NAA, and the new NAA will be before this body on April 7th for council approval.

Happy to answer any questions.

Thank you very much.

And denial is a great uh seven dust song, by the way.

Uh representative from district two.

Thank you.

Uh I actually I we we we contacted them and we pushed on them and we negotiated with them, we emailed and we did we did all the things, and it wasn't till the 11th hour and the 59 minute that we finally got somebody to the table to make a decision.

And and so while I I I will council will probably do his staff requests and and recommend denial.

How is there a mechanism to avoid this sort of drawn-out process because it it takes time and energy from the city to drag this out like this?

Sure.

This after the first reading, we did send a certified letter to the property owner, and since that appeared to work in this case, we will be sending certified letters moving forward.

Okay.

I appreciate that.

And just for clarity, the motion is in the affirmative to annex, but you're recommending we vote no.

Yes, this would be the second reading.

We're recommending to deny it, and then we will bring the non-annexation agreement.

I'm I'm I'm just being clear on the double negative aspects of this.

All right, thank you.

I've just got the question.

Just to be clear, there's there's two motions.

One of two ways you could go.

You could motion to approve and then vote against it if you wanted to deny it, or you could just have a motion to deny, which we typically don't do, but you have staff recommending it today because it's unique situation.

You could have a motion to deny, in which case if you vote yes, you are denying the matter.

Got it.

Okay.

Representative district five.

Um question for you or or Charlie or Miss City Manager.

How much time was spent on this?

How much staff time is spent on trying to contact these folks and the contact us at 11th hour?

It it's hard for me to answer from since we started contacting them in 2024, I believe.

That was a different staff member that worked on that, but we were essentially sending um letters.

So it wasn't a ton of staff time, I would say.

We did prepare these items for the first council meeting in this one, which does take a lot of staff time, but it's hard to say exactly how much.

So the way that so the way that we were ultimately able to contact them was through a certified letter.

Correct, yes.

So we'll do that going forward.

Correct.

Does that require a code change?

It does not.

That's just something you all will do.

Do as staff.

Yes.

Okay.

Thanks.

Okay.

Any other questions for staff?

So I I give it to you, however, you want to position the motion of representative jester.

Yeah, I move approval as presented.

Okay.

So so the so move approval as presented.

Staff recommends denial, so you vote no.

Correct.

If you're in line with staff's recommendation, and if you're opposed to staff's recommendation, you'll write you'll vote no as in no, I don't approve staff, or yes, I approve of staff.

That's what you got before you.

Uh Mayor Pro Tim.

Uh oh.

I thought I was following a IM concern.

So the motion is to approve because you you should make motions into in the affirmative.

You you shouldn't make negative motions.

And so withholding that, you they're saying that the movement says yes, and then you would vote no per staff's recommendation to deny.

Okay.

Oh, good.

So we changed it on the screen too, because it said motion to deny.

We did not have a motion to deny.

It was a note to know a note a motion to approve.

Therefore, if I'm going with staff, it's no.

I vote no.

Correct.

I will second the motion and I will be voting no.

You good?

Everyone, everyone clear?

If you if you agree with staff, staff recommends no.

So you would vote no.

If you disagree with staff, you would say yes.

Representative district five.

This will be my one for the night.

Hey, great job.

Appreciate everything y'all doing.

I will be voting yes because we've been working on this a long time, and there has to be a line somewhere.

Okay.

Anyone else?

Any other got it?

Everyone clear?

Got it.

Let's vote on the screen.

And that fails five to two.

Takes us to say that takes us to 3G is in Girard.

A 25005 C.

Conduct the second of two readings and consider adoption of the ordinance of the City of Denton, Texas, annexing approximately two acres of land approximately located 300.77 feet north of Mills Road, approximately 1,453 feet west of South Trinity Road to the City of Denton, Denton County, Texas.

Thank you, Mayor.

Members of Council, Angie Manglaris, assistant planning director.

This is an annexation for 5811 Mills Road.

So this is uh the second of two readings and action on an ordinance annexing approximately two acres of land.

Um it is located approximately 300 feet north of Mills Road.

It is just north of the annexation that you all just considered.

Um likewise, this owner has um re-signed their non-annexation agreement, and staff will be recommending denial of this item.

So we would typically read the caption into the ordinance.

However, staff is recommending denial as the um NAA has been re-signed, it'll come before you all um at your April meeting for approval.

Um so staff is recommending denial of this annexation as they've complied with the the signature for the new non-annexation agreement, which will be brought before you all at your next meeting.

I'm happy to answer any questions you all may have.

Thank you very much.

Questions for staff.

Seeing none, uh Mayor Pro Tem.

Oh motion approval, but I will be voting no.

Thank you.

Representative from District 4.

I all I second the motion and I also will be voting no.

Thank you very much.

Uh so yes, we have a motion and a second.

Any other discussion?

Seeing none, uh, just to reiterate if you agree with staff, you would vote no as they recommended denial.

If you disagree with staff, you would vote yes.

Uh recommending approval.

So with that said, um, we have motion and a second.

Let's vote on the screen.

And that fails five two.

And that takes us to our last item, item H before concluding items.

So get those in queue.

Item H ID 26026.

Consider approval of a resolution of the city of Denton nominating a member to the board of directors of the Denton Central Appraisal District, and providing an effective date.

And so uh I'll let you turn it over to you.

Good evening, Mayor, members of council Matt Hamilton, Chief Financial Officer.

Uh, here tonight to seek a nomination to the Denton Central Appraisal District.

So as you may recall from uh prior presentations, the board of directors currently has a nine-member board with five appointed by the taxing jurisdictions, uh three publicly elected members that are elected um at uh elections, and then the tax assessor serves as the final ninth uh member.

Uh unfortunately the city was notified by the Denton Central Appraisal District on February 13th of the passing of board member Ann Pomical, who served in place four uh and was uh elected uh uh in the December elections and was a nominee of the city at that time.

So the DCAT is now seeking nominations from the taxing jurisdictions to fill this vacancy.

Uh the city council may nominate one individual to fill the unexpired term, and once nominations are received by the DCAD, uh the board of directors will appoint one of the nominees by majority vote of the board.

One additional item I did want to note is uh the council did make a nomination in January uh for place uh five.

Uh the board elected to uh appoint James Lawrence, uh, who was a nominee of the city of Carrollton and the Carrollton uh farmers branch ISD to fill that position.

So I just wanted to let the council know that uh the January nominee of Jordan Via Real Um you could uh choose to nominate that individual again as he was not selected uh in the in the prior uh process in January.

And with that, I'll stand for any questions and seek a nomination.

Got it.

We do have a question, but before that, I want to nominate Lis Lisa McIntyre is trying to pull up her uh vote, but she was elected by the people uh to that seat.

She resigned to run for a different office.

She did not win that.

Uh and I'll just say to staff's point, uh, to respond to staff's point.

I mean, I mean at some point we have to realize doing the same thing and expecting a different result is not logical.

Let's and and this person earned the vote of the whatever that the the county, I guess it's countywide seat, I'm not sure, but and I I again didn't have an opportunity to pull up the the total number of votes, but here's someone that was elected to this office that stepped down that can then be uh give us a chance to actually be successful in having someone selected uh that so that that's the name I put forward and um I'm gonna go ahead and take a representative from district six um I I'll second our initial nominee is now running for office, so uh I think it's appropriate, and so I'll second that motion uh representative from district two.

Um thank you.

Uh I I hear your your point, Mr.

Mayor.

Um, I I think there is an opportunity to to try something new.

Um I was um I don't have anything against what you're what you're recommending.

I I was going to um I'll I'll be voting no, not because I have anything against Ms.

McIntyre, but I was gonna recommend Tommy Marshall, who has appraisal um experience and is a local community leader and uh at a veteran.

Um so um if should this since your motion not succeed, I'll be asking to to motion to to nominate Tommy Marshall Representative from District 2.

No, four.

I'm sorry.

Thank you.

Uh Mr.

Mayor, point uh uh do you know how long Lisa McIntyre held that position?

Yes, I found it here.

So she was elected 2024, looks like resigned this year, so two years round numbers.

Not not quite, yeah.

Okay, not quite.

So so she's so she's as far as trying something new, she's still pretty new.

Uh she's still got the rapper on her.

So uh I I think that's a good nomination, and I'd like to support her as well.

Okay, thank you.

And for the record, I looked it up.

She she earned 29,982 votes and when she was elected 2024.

So any other questions.

Seeing none, uh, we have a motion for Lisa McIntyre and a second.

Let's vote on the screen.

And that passes five to two, and that takes us to concluding items.

Concluding items.

Mayor Pro Tim.

Thank you, Mayor.

I had uh thanks to send to Capitol Projects.

I was sitting in the airport, got a complaint from a uh constituent on Oak Street that the plates were coming loose again on the roadway as part of the Atmus project, and I think it had been keeping them up at night from all the noise of cars running over it.

Um so I sent an email to staff right before boarding the plane when I landed.

I had uh a bunch of photos of people out there working on the plates same day, just a few hours later.

So um big thanks to to Seth Garcia to Capitol Projects and all the folks that communicated with Atmos to get out there.

Um I did hear from the constituent that they were able to sleep a lot better that evening, and they they really appreciated it.

Um I also wanted to congratulate Brittany Sotello for being uh recognized as one of the 40 individuals in North Texas um under the age of 40 who's doing really really great in in their field.

Um so congratulations to Brittany.

Yeah, economic development director.

Um, and then just wanted to I uh I'm not gonna do as good as other people probably at saying thank you and and farewell, but um can congratulations and and good luck on your next adventure.

Thanks.

Okay, uh representative from District Six.

Um just wanted to uh remind everyone about the Kwanas Taste of North Texas Thursday night that raises money for all kinds of good causes, and I'm lucky enough to be a celebrity judge, so um I'll get to eat, and that's one of my favorite hobbies.

Um, and then uh I also want to uh echo the deep appreciation that uh on behalf of the city of Denton to Sarah Hensley, uh you uh stepped in and came during kind of a turbulent time with the new city manager and then was willing to serve as interim and then our city manager, and uh we're we're it's um it's a big ball of wax here.

We're an unusual city for uh our size and what we have as far as the components uh with water utilities, the universities, etc.

But um uh I believe that you have led with integrity and that your motives have been pure, and I mean, just that by itself is all that we could ask for.

So uh from the bottom of my heart, I'd want to say thank you for your uh always being available, uh willing to help educate and uh making uh this position uh a lot easier uh than it could have been.

So thank you very much, and we just wish you uh all the health and happiness and goodness out there.

Representative from District 2.

Thank you.

I'll I'll start with uh I'll remind folks uh the TW is is having uh the Jameson lecture um with their guest speaker uh Dr.

Bernice King uh coming up on Thursday.

Uh and then I will say uh to Madam City Manager um uh I I had the uh the honor of of starting with you in 2021 and now now uh at least you and potentially me are are ending in 2026.

Um so uh I I think there's some symmetry to all that.

Um so I I wish you best of luck in Bon Voyage.

Okay, representative from District One Today.

I had an opportunity to um sit with our economic development um board uh and we discussed uh some very significant and important things um to progress our city.

Um and so I'm looking forward to all of that goodness that's gonna come out of that um that communication that we had today.

But what I really want to do is to connect that to Sarah.

Um she has put us in place to do these things.

You have charged us, you know, as a community.

You're leaving us in a better place.

You're leaving us with the questions that need to be answered because we got to find out and figure out who we are, what direction we're gonna go, what is our flavor, what's our crossroads?

And so uh with you being at the helm of making us think and making us work together and and bringing those uh you know all of those things to light, I can say that I've learned so much.

Um you know, like Brian, we got here in 21.

We're leaving together.

I'm not gonna be on the the council next year.

Um, but I can truly say that I've learned so much, you know, under your leadership, and I am gonna take everything that I know to my next venture, whatever that is.

Um, so thank you.

Thank you so much for helping me be a better person and helping me love my city more because I didn't know, I didn't know any better.

Uh, but I do really appreciate this place, and I appreciate everyone that I've met.

So thank you again.

Representative from District 4.

Thank you.

Um to the to the railroad that controls the intersection vintage drive and 377.

Yes.

To the railroad.

I want you to know that I get I get a uh complaint about that intersection every week.

And every week I have to ask you the very same answer, which is essentially a non-answer.

So railroad, if you would please get on with it.

And the signals have been up since I've since before I was in office.

I've been in office three years.

And uh I I don't understand the delay, but uh whatever the delay, I'm um I've I've had all the fun with that I can stand.

And I'd really really like to get on with it and and uh and let's let's let's let's control some cars of that intersection.

Uh Manager Hansley, thank you.

Thank you for your guidance.

Um the people from the railroad cause problems.

I send this to you and you take care of it.

Lickety split.

And it doesn't matter if it's light outside or dark outside or a weekend or or or what, I get an answer remarkably fast.

Thank you for that.

And I and I I I it's been my pleasure working with you, and I look forward to working with with Cassie uh here, I guess beginning in the morning, yeah.

Well, uh yeah, Monday, Monday evening.

Not to rush you or anything, but I'm out.

Okay, well, when whenever she's gonna charge the tomorrow.

Whenever she turns in the key, okay.

Okay, all right.

Thank you.

Said a different way, railroad do better.

Yeah, that's powerful statement.

Yeah, uh representative from District 5.

Um I work very long hours.

I normally don't get off before 9 p.m.

So Cassie, thank you in advance for answering the phone after 9 p.m.

Those phone calls are coming.

So Sarah, thanks for always answering the phone, even at 10:30.

I appreciate you always uh addressing my concerns, and you know um, you know how I feel about you.

I know I'm your favorite.

I know you don't have to say it, it's okay.

I don't want anybody to be mad.

Don't worry about that.

But uh I appreciate everything you've done for us.

Best of luck.

Have a great time.

Have a great time not having to uh to deal with us.

You're you're gonna you're your shoulders are gonna be gonna be a little bit more relaxed, and you're gonna stand a little taller, and you're gonna have uh have a long and happy life not having to deal with us.

So well done.

Okay, any anyone else?

Anything else we missed?

Can I thank the candidate?

Yes, but but let me thank you first and then you can thank us.

Um so I I appreciate you.

At some point you begin to think it's you, right?

Because I started with tight away, t tied away of Todd, then then he left and you stepped in.

Now you're leaving, and uh so three three terms, three city managers.

I I uh at some point I think it's me, and and I can't and Max Rude, he won't let me file the run for office again.

All the things, man.

Uh it's it's tough out there.

So, but thank you very much.

I mean, to to navigate uh all the things from uh the pandemic to George Floyd protests to uh winter storm Uri to I mean the the your resume is robust uh in that way and uh and and even to to current you know budget issues and those sort of things uh navigating us through some really unique firsts, and so appreciate you.

Uh and and I don't know who gets to pick the picture that goes up on the wall there next to Todd, but I'd like to.

I I got it I knew I figured out what picture we put of uh of you there.

That'll be awesome.

No, no, it's gonna be but no, thank thank you very much for all you've done for the the city family, my family personally.

Uh I'm truly truly grateful uh and couldn't have done it without you.

Uh and then uh to the community events and and people have touched on a couple of things.

I'll just highlight Ryan High School has a giant jazz concert uh to Thursday.

If if though for those are interested, you can look that up on Ryan High's, I guess their their website or something like that to get the exact time.

And then on uh Friday, we are reopening or there's a re-grand opening for Dina Park.

So if you're in that area, please drop by.

It's worth it just to see uh the park and then the new uh Borman Elementary.

If you've not been in that area, it's uh it's a really great area, a lot of great stuff happening there.

And then the You Are Beautiful Lunch is Friday afternoon as well, so please consider attending and donating and supporting that.

And if you don't know, that's those are cancer survivors uh that are highlighted and featured, and and it's a very uh very powerful stories, and that's hosted at TWU.

And then Saturday is keep denton beautiful.

So we'll if you're if you're signed up, you can get out and clean up and help us uh take care of our community.

elementary if you've not been in that area it's uh it's a really great area a lot of great stuff happening there and then the you are beautiful lunch is friday afternoon as well so please consider attending and donating and supporting that and if you don't know that's those are cancer survivors uh that are highlighted and featured and and it's a very uh very powerful stories and that's hosted at TWU and then Saturday is keep denton beautiful so we'll if you're if you're signed up you can get out and clean up and help us uh take care of our community always lots of interesting things found out there in the wild and then also on Saturday uh Seth from DCBC Denton County Brewing uh has a fundraiser or it charities is the name of the charity it's a bingo it's at the women's building and they raise money to uh provide water in Africa it's amazing uh charity and great event I had a lot of fun so my family and I will go again this year after we clean up we'll head over there and then uh importantly it is uh I want to for those that recognize and and uh take time to pause for good Friday and Easter I join you in that and what a powerful uh weekend that will be but that that will happen before our next meeting so certainly want to touch on those uh so with that I will turn it over to the city manager I just want to thank the council um being a city manager in any city is not an easy job uh I think um when you deal with a uh a full service city for sure but um I've uh you know had pleasure of working under Todd and then moved up and became interim and um you know I think several of you shared you know thank you for helping me but you also have helped me no city manager um can can know everything there's no way you can't find the perfect city manager what you can find though is a good group of people who are your team which are sitting back there and sitting over here and one down here who are experts in the field there you go Frank's waving it's really just um the honorable Frank the honorable Frank Dixon soon to be honorable but but I mean that when I say you build a good team um and they help they're the ones that make you look good um there's no way I could have known everything and so while there have been times we haven't always agreed I've had to come out and pretty much tell the cow how they eat the cabbage but at the end of the day that's what you want in a city manager someone that you can trust that'll always tell you the truth and protect you because when you find out a can someone doesn't tell you the the whole truth or give you the whole due diligence it could set you up for failure as a council member and put you in a position that you don't want to be in and so while it's a very difficult position to always try to stand up and tell that truth and to hold that line I want you to know it was never easy it was never a pleasure it wasn't but it was always the right thing to do and I I've said it and I'll say it again I love the city I love what we're doing I love the people that we've hired and you have the people that are staying on this council and the new people that come in have big shoes to fill because there's a there's a big future a big bright future ahead but there has to be a lot of discussions on a lot of different things to move this for city forward and so um I just wish you the best I want to thank you for your support and for your kind words and I am always available if you just want to run something by me or say something obviously you want to go to your interim city manager and then your city manager but as somebody outside the city I'll always be um willing to to uh give you my two cents um without judgment and I'll always be truthful that is the one thing you can always count on so I I stand here to tell you that I am only been successful because of the people that I work with and I really mean that and so I worked with you and so I'm successful because of you but I'm successful because of these people that work and all the employees but thank you so much for giving me the opportunity to work here um you know when you spent 30 plus years in public service you go back and start running through all these things that you've done and people remind you of things and you kind of like uh today they gave me a proclamation at the county and the judge was reading all these things and I I told you I wanted to say geez I don't even remember doing that but it wasn't me it was the staff so thank you again thank you for being um who you are thank you for representing the city takes a lot of work and and a lot of patience and so my coup my hat's off to you all and again I will always love this city and care about it and do anything I can to help.

Okay thank you very much yes sure after we say this at 626 that concludes our meeting