WEBVTT 00:00:00.000 --> 00:00:05.160 >> Okay, it is nine o'clock and we do have a quorum. 00:00:05.160 --> 00:00:11.800 So our call to order the Public Utilities Board for the City of Denton on Monday, October 9th, 2023. 00:00:11.800 --> 00:00:17.160 The first item is presentations from the members of the public and I understand no one asked to speak. 00:00:17.160 --> 00:00:20.600 So then we'll go into closed session and I'll read this. 00:00:20.600 --> 00:00:28.840 The Public Utilities Board will now at 9.01 AM convene in a closed session to deliberate the closed meeting items set forth on the agenda, 00:00:28.840 --> 00:00:36.760 which include the following IDPUB 23171, deliberations regarding certain public power utilities, 00:00:36.760 --> 00:00:42.200 competitive matters under Texas Government Code section 551.086, 00:00:42.200 --> 00:00:53.560 consultation with attorneys under Texas Government Code section 551.071. 00:00:53.560 --> 00:01:03.520 Okay, the Public Utilities Board now has now at 9.34 AM reconvened from the closed session and no official action was taken. 00:01:03.520 --> 00:01:05.800 So the next item is the consent agenda. 00:01:05.800 --> 00:01:09.400 Does any board member wish to pull an item from A through E? 00:01:09.400 --> 00:01:17.520 >> Madam, I move approval of consent agenda. 00:01:17.520 --> 00:01:20.920 >> Okay, Mr. Ryback moved approval of the consent agenda. 00:01:20.920 --> 00:01:21.920 Do we have a second? 00:01:21.920 --> 00:01:24.640 >> Second. 00:01:24.640 --> 00:01:26.800 >> Mr. Taylor seconded. 00:01:26.800 --> 00:01:28.160 All in favor say aye. 00:01:28.160 --> 00:01:29.760 >> Aye. 00:01:29.760 --> 00:01:34.320 >> Okay, next item is consider approval of the September 11th, 2023 minutes. 00:01:34.320 --> 00:01:35.520 >> So move. 00:01:35.520 --> 00:01:36.600 >> Second. 00:01:36.600 --> 00:01:38.240 >> All in favor say aye. 00:01:38.240 --> 00:01:39.320 >> Aye. 00:01:39.320 --> 00:01:40.800 >> Carries. 00:01:40.800 --> 00:01:57.280 PUB 23180, consider recommending the adoption of a contract with Techline Inc. for the purchase of insulated and multi-conductor underground distribution cables for $20 million. 00:01:57.280 --> 00:02:09.880 >> Good morning members of the PUB, I'm Randy Key, Electrical Engineering Supervisor at DME. 00:02:10.800 --> 00:02:16.800 Bringing forward a new contract for underground cable. 00:02:16.800 --> 00:02:24.240 We went out for RFP to supply 15KV and 25KV insulated primary and secondary cable. 00:02:24.240 --> 00:02:27.000 We had two responses to the bid. 00:02:27.000 --> 00:02:30.400 It was Techline and Mena Holdings. 00:02:30.400 --> 00:02:36.200 This contract is a replacement for the current contract that is expiring. 00:02:36.200 --> 00:02:39.800 The last contract was for an NTE of $18 million. 00:02:39.800 --> 00:02:48.800 This is a table of what we expect to spend. 00:02:48.800 --> 00:02:54.600 This past fiscal year, we actually, we did spend $4.2 million. 00:02:54.600 --> 00:02:58.480 The year before that, it was around 1.6. 00:02:58.480 --> 00:03:07.800 We did have to bulk order a little bit this past fiscal year because -- 00:03:07.800 --> 00:03:13.000 So this last year, we did spend $4.2 million. 00:03:13.000 --> 00:03:15.600 The fiscal year before that, we spent around 1.6. 00:03:15.600 --> 00:03:17.800 We did have to bulk order. 00:03:17.800 --> 00:03:22.400 We do expect to spend around 3.6 the next five years. 00:03:22.400 --> 00:03:27.000 We did put $2 million in contingency for this contract. 00:03:27.000 --> 00:03:34.600 And we recommend moving forward with this contract with Techline for the NTE of $20 million. 00:03:34.600 --> 00:03:36.400 And at this point, I'll take some questions. 00:03:36.400 --> 00:03:40.600 >> I see we only had two responses out of what was 243? 00:03:40.600 --> 00:03:41.800 >> Yes, ma'am. 00:03:41.800 --> 00:03:43.200 >> Just the way the business is now? 00:03:43.200 --> 00:03:45.200 >> Just the way it rolls. 00:03:45.200 --> 00:03:47.200 >> Okay. >> Yes, ma'am. 00:03:47.200 --> 00:03:48.400 >> All right. 00:03:48.400 --> 00:03:50.800 Other questions? 00:03:50.800 --> 00:03:52.600 >> Yes, ma'am. 00:03:52.600 --> 00:03:57.600 This organization or company, Techline, have we procured from them previously? 00:03:57.600 --> 00:03:58.600 >> Yes, sir. 00:03:58.600 --> 00:04:00.000 >> Okay. Have they been a good supplier? 00:04:00.000 --> 00:04:02.200 >> They have. They've been great. 00:04:02.200 --> 00:04:03.000 >> And I'm all in favor. 00:04:03.000 --> 00:04:04.200 Thank you. 00:04:04.200 --> 00:04:07.400 All right. Do we have a motion to approve this item? 00:04:07.400 --> 00:04:08.400 >> So moved. 00:04:08.400 --> 00:04:09.400 >> Mr. Reddick moves. 00:04:09.400 --> 00:04:11.000 And Mr. Pluck seconds. 00:04:11.000 --> 00:04:12.600 All in favor say aye. 00:04:12.600 --> 00:04:13.600 >> Aye. 00:04:13.600 --> 00:04:14.600 >> Carries. Thank you. 00:04:14.600 --> 00:04:15.600 Management reports. 00:04:15.600 --> 00:04:16.800 >> Thank you. 00:04:16.800 --> 00:04:22.800 >> Thank you, Madam Chair. 00:04:22.800 --> 00:04:23.600 A few things in here. 00:04:23.600 --> 00:04:26.600 We have the very done memo for a tech services contract. 00:04:26.600 --> 00:04:30.600 We do have Alicia Main here if you have any questions on that. 00:04:30.600 --> 00:04:35.000 Then we also have the distributed generation manual which was taken to council a few weeks ago. 00:04:35.000 --> 00:04:38.000 And the green sense incentive program manual as well. 00:04:38.000 --> 00:04:42.000 And there's a TRC engineers memo which is related to DME services. 00:04:42.000 --> 00:04:48.400 There's staff here to answer questions on that as well if you have any future agenda items. 00:04:48.400 --> 00:04:52.400 It shows in there that what was asked back in September, 00:04:52.400 --> 00:04:57.400 the final wastewater master plan is scheduled for a work session with y'all in December. 00:04:57.400 --> 00:05:00.800 So December 11th. 00:05:00.800 --> 00:05:04.400 Basically all the new business action items were corrected back in September. 00:05:04.400 --> 00:05:05.400 >> Okay. 00:05:05.400 --> 00:05:06.800 And I have a good question. 00:05:06.800 --> 00:05:13.000 >> So I sent an email and we were hoping to discuss this last meeting but we didn't have a quorum. 00:05:13.000 --> 00:05:21.400 I just wanted to briefly point out in the distributed generation and green sense programs, 00:05:21.400 --> 00:05:28.000 DME has a low threshold for requiring a PPA. 00:05:28.000 --> 00:05:33.600 The maximum solar or distributed generation you can put behind the meter 00:05:33.600 --> 00:05:43.400 without having a negotiated contract is 20kW which is big for a house but it's pretty small for commercial. 00:05:43.400 --> 00:05:47.800 And there was some talk about, well, we don't have a rate. 00:05:47.800 --> 00:05:50.600 There wouldn't necessarily be an appropriate tariff. 00:05:50.600 --> 00:05:56.800 The green sense tariff pays a very high rate for homeowners but it doesn't apply to commercial. 00:05:56.800 --> 00:06:05.600 So if a grocery store or warehouse or factory installed 100kW system to offset their load, 00:06:05.600 --> 00:06:09.600 if they exported, we don't have a mechanism necessarily to pay them. 00:06:09.600 --> 00:06:20.200 And I understand that and I think it might be why prudent to have a base commercial export rate added 00:06:20.200 --> 00:06:29.000 in the future but even without an export rate allowing Kroger to put 100kW system on their roof, 00:06:29.000 --> 00:06:32.000 they're going to use more than 100kW in load. 00:06:32.000 --> 00:06:38.400 So even if they never sell a kW back onto the grid, they can't do that without having a PPA. 00:06:38.400 --> 00:06:44.100 And so it would be beneficial for this demand response and demand reduction. 00:06:44.100 --> 00:06:50.600 If it's behind the meter, DME never even sees that load and it removes that peak summer demand. 00:06:50.600 --> 00:06:58.700 So having an interconnection capability higher than 20kW without a PPA in place, 00:06:58.700 --> 00:07:05.300 I think would be a benefit for all rate payers in DME and for the DME system. 00:07:05.300 --> 00:07:11.700 Now, the rate that they get paid if they export is a separate matter and usually, 00:07:11.700 --> 00:07:18.600 you know, you don't get paid very much if you're a commercial entity exporting unscheduled power. 00:07:18.600 --> 00:07:19.400 >> Do you speak to that? 00:07:19.400 --> 00:07:24.700 >> Good morning, Madam Chair, Bill Sheppard, DME and PB members. 00:07:24.700 --> 00:07:31.100 So the answer to your question is there is a mechanism and that is our DGR. 00:07:31.100 --> 00:07:34.000 So that's our distributed generation rate. 00:07:34.000 --> 00:07:37.200 If we don't do a PPA, that's the rate that they default to. 00:07:37.200 --> 00:07:41.400 And in fact, we have 21 systems that are over 20kW. 00:07:41.400 --> 00:07:43.900 Two of which have a PPA, the others do not. 00:07:43.900 --> 00:07:48.600 So they fall under that same DGR rate that they're getting essentially full retail 00:07:48.600 --> 00:07:50.700 for anything that comes back to us. 00:07:50.700 --> 00:07:56.200 Now, it allows us the option to do a PPA and it's a very simple PPA. 00:07:56.200 --> 00:08:03.500 It essentially just outlines what DME is willing to pay for energy that does incidentally come back to us. 00:08:03.500 --> 00:08:12.700 So it's a way to sort of hedge our risk, so to speak, without paying a lot of money for that energy coming back. 00:08:12.700 --> 00:08:18.200 Now, once we have the value of solar study done, which we're going to be starting this fall, 00:08:18.200 --> 00:08:22.400 I think maybe we can relook at that and how that mechanism takes place. 00:08:22.400 --> 00:08:26.100 But until then, at least this gives us an option to enter a PPA. 00:08:26.100 --> 00:08:28.300 >> Because I believe our language says may. 00:08:28.300 --> 00:08:31.700 May enter into a PPA, okay, not shall. 00:08:31.700 --> 00:08:32.600 >> Correct. 00:08:32.600 --> 00:08:36.000 >> And that's different, correct? 00:08:36.000 --> 00:08:39.300 >> Yeah, and I think it's great news that we have this planned. 00:08:39.300 --> 00:08:43.800 But if we already have a price that we, you know, a standard PPA rate, you know, 00:08:43.800 --> 00:08:48.900 we could make that the commercial export tariff rate, you know. 00:08:48.900 --> 00:08:52.700 So, but I think it'll be great to see the results of that study and see how we can move forward with this. 00:08:52.700 --> 00:08:53.800 >> Sure. 00:08:53.800 --> 00:08:54.500 >> Thank you. 00:08:54.500 --> 00:09:01.800 >> I wanted to comment, I really appreciated the work that you did in investigating this particular aspect 00:09:01.800 --> 00:09:04.200 of our current DME program. 00:09:04.200 --> 00:09:06.100 I thought that was outstanding. 00:09:06.100 --> 00:09:14.100 One thing I do agree with, Mr. Taylor, about very strongly is I like the idea of raising that threshold from 20 to 100 KW. 00:09:14.100 --> 00:09:16.700 I don't know if that makes sense based on what you just said. 00:09:16.700 --> 00:09:22.200 I did not also, I also did not realize it was a shall not must on the PPA. 00:09:22.200 --> 00:09:22.500 So I don't-- 00:09:22.500 --> 00:09:23.700 >> It's a may not shall. 00:09:23.700 --> 00:09:25.900 >> Or may not shall, or however you want to put it. 00:09:25.900 --> 00:09:27.000 It wasn't mandatory. 00:09:27.000 --> 00:09:28.400 >> But you're not allowed unless you have it. 00:09:28.400 --> 00:09:35.600 >> Yeah, so if it's not mandatory, maybe the concern I had about that is less important. 00:09:35.600 --> 00:09:41.400 But I also read it as that was mandatory and I agree that I thought the PPA thing was rather involved based 00:09:41.400 --> 00:09:44.400 on my experience and knowledge of them in the past. 00:09:44.400 --> 00:09:50.800 So maybe I shouldn't be that concerned about it, but I thought it was a good idea to potentially look at raising a threshold for that. 00:09:50.800 --> 00:09:53.000 So I would like to know what you think about that. 00:09:53.000 --> 00:09:59.200 >> Yeah, if I may, so one of the instances we have to look at is the what ifs, right? 00:09:59.200 --> 00:10:06.400 Let's take an auto dealership for example, a used car dealership, very small office, very small load at the office. 00:10:06.400 --> 00:10:13.300 Probably the majority of their load is lighting and they install a canopy system to protect their cars 00:10:13.300 --> 00:10:18.400 from hail or what not and the elements and they put solar on top of that. 00:10:18.400 --> 00:10:24.200 Well, as you saw a year and a half ago, a lot of dealers went out of business. 00:10:24.200 --> 00:10:32.200 Well, that dealer can technically go out of business from a retail standpoint, leave its meter on and that 100 kW system, 00:10:32.200 --> 00:10:38.800 which would have been easily accomplished for a pretty large lot, would steady be pumping energy back to DME, 00:10:38.800 --> 00:10:41.500 which we would be paying full retail for. 00:10:41.500 --> 00:10:46.700 So that's the part that we're just trying to cover our bases with. 00:10:46.700 --> 00:10:53.000 But the majority of the businesses that are putting solar out there are absorbing it internally. 00:10:53.000 --> 00:10:56.000 So, you know, we never even see any of that energy, which is great. 00:10:56.000 --> 00:10:57.000 That's ideal for them. 00:10:57.000 --> 00:11:01.600 That's the most value for them is to offset any retail sales from us. 00:11:01.600 --> 00:11:08.900 So, but again, we will be taking a lot of look at it when we do the value of solar. 00:11:08.900 --> 00:11:11.200 >> Thank you. 00:11:11.200 --> 00:11:12.800 Then we're on to concluding items. 00:11:12.800 --> 00:11:20.900 Does any board member wish to say something to the public or put a future agenda item on future item on the agenda? 00:11:20.900 --> 00:11:22.000 >> Yes, ma'am. 00:11:22.000 --> 00:11:27.400 I would like to add an item for future consideration to learn more about what plans, 00:11:27.400 --> 00:11:33.600 if any, Garland has for the power plant, which is so closely located to our infrastructure. 00:11:33.600 --> 00:11:35.400 >> Okay. 00:11:35.400 --> 00:11:41.400 And Ray or Rob, welcome to the PUP board. 00:11:41.400 --> 00:11:48.600 Would you like to introduce yourself and Rob Rainer with Tom Fouch Realtors? 00:11:48.600 --> 00:11:55.000 And I have, yep, turn your microphone on. 00:11:55.000 --> 00:12:03.400 >> Rob Rainer, Tom Fouch Realtors, looking forward to just getting more information as to how this all operates. 00:12:03.400 --> 00:12:08.800 And it has been a great improvement from the last time I was on the PUB. 00:12:08.800 --> 00:12:11.700 And back then, we just passed for a green and blue trash can. 00:12:11.700 --> 00:12:13.900 And that's about all we accomplished. 00:12:13.900 --> 00:12:16.800 So thank you, Madam Chair. 00:12:16.800 --> 00:12:17.600 >> All right. 00:12:17.600 --> 00:12:22.500 Anything else? 00:12:22.500 --> 00:12:24.000 Let's move into the work session. 00:12:24.000 --> 00:12:34.100 Receive training and hold a discussion regarding the City of Denton Code of Ordinances, Chapter 2, Article 6. 00:12:34.100 --> 00:12:36.300 I had to remember my Roman rule. 00:12:36.300 --> 00:12:37.200 >> 11. >> 11, 11. 00:12:37.200 --> 00:12:39.600 That's not a V, that's an X. 00:12:39.600 --> 00:12:41.800 Had to go back to elementary school there for a minute. 00:12:41.800 --> 00:12:45.400 And that was a long time ago. 00:12:45.400 --> 00:12:45.600 >> All right. 00:12:45.600 --> 00:12:46.700 Hello, I'm Madison Rocha. 00:12:46.700 --> 00:12:47.800 I'm Denton City Auditor. 00:12:47.800 --> 00:12:55.100 I'm going to give you all a brief training on the city's ethics ordinance, which you're all required to receive for the ordinance. 00:12:55.100 --> 00:12:56.600 But I promise it'll be quick. 00:12:56.600 --> 00:12:59.800 Rob, you're aware of this, some of this at least. 00:12:59.800 --> 00:13:04.700 So today we'll be covering the ethical expectations laid out by the city's ethics ordinance. 00:13:04.700 --> 00:13:08.700 The ordinance's mandates and prohibitions are basically what it requires. 00:13:08.700 --> 00:13:14.300 How city officials subject to the ordinance can request clarification on its application. 00:13:14.300 --> 00:13:19.600 And a quick overview of what happens if an ethics complaint is submitted against you as a city official. 00:13:19.600 --> 00:13:28.200 So to begin, the City of Denton's ethics ordinance was adopted in 2018 and was most recently amended this year. 00:13:28.200 --> 00:13:35.000 This ethics code is intended to foster an environment of integrity for those that serve the City of Denton and its residents. 00:13:35.000 --> 00:13:43.600 By ensuring that decision makers provide responsible stewardship of the city's resources and assets and providing behavioral guidelines and requirements. 00:13:43.600 --> 00:13:49.000 The key goal of the ethics ordinance is to further the public's trust in those who govern their community. 00:13:49.000 --> 00:13:53.800 More specifically, the ethics ordinance outlines six aspirational expectations. 00:13:53.800 --> 00:14:01.100 These expectations cannot be used as the basis of an ethics complaint, but they are intended to guide city officials in carrying out their duties. 00:14:01.100 --> 00:14:10.000 These include conducting yourself in a manner that fosters public trust, performing your public duties with personal and organizational integrity. 00:14:10.000 --> 00:14:14.500 Avoiding behavior that might call your motives into question and erode public confidence. 00:14:14.500 --> 00:14:18.500 Placing the interests and concerns of Denton's residents above your own. 00:14:18.500 --> 00:14:26.200 Valuing honesty, trustworthiness, diligence, objectivity, fairness, due process, efficiency and prudence. 00:14:26.200 --> 00:14:34.800 And balancing transparency with the duty to protect personal privacy and preserve any confidential information that you have been trusted with. 00:14:34.800 --> 00:14:44.800 While the rest of this training will focus on specific behaviors that city officials must comply with, this aspirational section is the most important of the ethics ordinance. 00:14:44.800 --> 00:14:52.500 If you ever find yourself questioning if a specific action or inaction might be ethical, first ask yourself if it would align with these expectations. 00:14:52.500 --> 00:14:58.800 It's important to realize that these expectations are not only focused on the way things are, but also on how they appear. 00:14:58.800 --> 00:15:03.200 A city official has a position of privilege within their community that they must respect. 00:15:03.200 --> 00:15:08.000 Serving your community as a city official is an honor that requires integrity and dedication. 00:15:08.000 --> 00:15:12.200 In general, you can think about an ethics code as a stoplight. 00:15:12.200 --> 00:15:16.800 In some instances, the code clearly prohibits a specific behavior or creates a red light. 00:15:16.800 --> 00:15:21.600 However, in other areas, the code creates broader prohibitions or yellow lights. 00:15:21.600 --> 00:15:31.000 Yellow lights communicate that a city official should thoughtfully and cautiously consider if the action or inaction is ethical based on the city's expectations as they proceed. 00:15:31.000 --> 00:15:36.300 Throughout the presentation, I'll be calling out which parts of the code are red lights versus yellow lights to help provide guidance. 00:15:36.300 --> 00:15:44.100 Now that we've covered the basics of the city's ethics, ethics, ethical expectations and general guidance, I'll get into more specifics. 00:15:44.100 --> 00:15:51.600 So the city's ethics ordinance includes three mandates and nine prohibitions that cover different actions or behaviors that city officials may take. 00:15:51.600 --> 00:15:55.100 So I'll briefly cover them over the next couple of slides. 00:15:55.100 --> 00:15:58.800 However, more detail is available in the actual ethics ordinance. 00:15:58.800 --> 00:16:07.200 So beginning with the mandates, the ethics ordinance requires that city officials disclose certain business relationships if they are relevant to a pending matter. 00:16:07.200 --> 00:16:14.000 Specifically, if a business entity with a pending matter is owned by a city official's partner, 00:16:14.000 --> 00:16:18.800 the city official must disclose this relationship to the city secretary and the city auditor. 00:16:18.800 --> 00:16:24.500 That's me at least one business day before the meeting where the pending matter will be deliberated. 00:16:24.500 --> 00:16:29.600 All disclosures will be provided to the relevant body before the deliberations. 00:16:29.600 --> 00:16:36.600 This disclosure requirement is a yellow light in the ethics code as even though city officials are allowed to deliberate on these matters by the ethics, 00:16:36.600 --> 00:16:44.000 per the ethics ordinance, it calls out that there may be a risk that this type of business interests may receive unfair treatment from the related city official. 00:16:44.000 --> 00:16:49.700 In addition, it requires that city officials comply with any financial disclosures required by the Texas state law 00:16:49.700 --> 00:16:55.200 and that city officials report any person that they know has violated the city's ethics ordinance. 00:16:55.200 --> 00:17:03.000 These mandates are red lights and not reporting a known violation is itself considered to be a violation of the ordinance. 00:17:03.000 --> 00:17:06.500 So you want to if you have questions, I can take them about this section. 00:17:06.500 --> 00:17:09.900 I know that the business equals report is kind of complicated. 00:17:09.900 --> 00:17:16.000 So but we can take questions if you have any here. 00:17:16.000 --> 00:17:21.800 Yes, I have a question report known violations of the ethics ordinance. 00:17:21.800 --> 00:17:29.200 So something could happen that one of us might know about but not realize it's a violation of the ethics ordinance. 00:17:29.200 --> 00:17:31.500 So we obviously wouldn't report it. 00:17:31.500 --> 00:17:33.100 So does that play into anything? 00:17:33.100 --> 00:17:34.900 Is that something we should be concerned about? 00:17:34.900 --> 00:17:36.100 Yes or no. 00:17:36.100 --> 00:17:42.300 I think this training is intended to help you know what is and is not considered a violation of the ethics ordinance. 00:17:42.300 --> 00:17:49.800 So I think if you have had your training and you're and then you don't report something that might have somebody else reports, 00:17:49.800 --> 00:17:51.300 you can at least say I took the training. 00:17:51.300 --> 00:17:53.500 I didn't realize that was a violation. 00:17:53.500 --> 00:17:59.800 But it's intended to say if you know something's going on, you should you're required to report it per the ethics ordinance. 00:17:59.800 --> 00:18:02.800 Does that answer your question? 00:18:02.800 --> 00:18:06.200 Yes, thank you. 00:18:06.200 --> 00:18:08.900 Anybody else on this section? 00:18:08.900 --> 00:18:13.500 All right, cool. 00:18:13.500 --> 00:18:13.800 All right. 00:18:13.800 --> 00:18:17.200 So these are now the prohibitions and not mandates. 00:18:17.200 --> 00:18:18.100 They're a little bit different. 00:18:18.100 --> 00:18:23.400 But so for the first one, we'll begin with conflicts of interest. 00:18:23.400 --> 00:18:30.600 Ethical best practices suggest that a city official recuse from deliberating on a pending matter if they or their relative have a personal or economic 00:18:30.600 --> 00:18:36.300 interest in a business entity or property that is not shared with the general public. 00:18:36.300 --> 00:18:41.900 This general guidance is a yellow light that is intended to draw attention to the risk of conflicts of interest. 00:18:41.900 --> 00:18:45.800 However, I should note that while this is generally good guidance for city officials, 00:18:45.800 --> 00:18:48.600 this general prohibition is not actually included in the ethics ordinance. 00:18:48.600 --> 00:18:52.700 Instead, it has very specific prohibitions that I'll go over next. 00:18:52.700 --> 00:18:56.500 And so these specific prohibitions are red lights. 00:18:56.500 --> 00:19:02.900 And so they include owning five percent or more of a business entity's voting shares or stock, 00:19:02.900 --> 00:19:07.000 owning six hundred dollars or more of a business entity's fair market value, 00:19:07.000 --> 00:19:11.700 owning six hundred dollars or more of the fair market value of real property, 00:19:11.700 --> 00:19:15.800 receiving six hundred dollars or more in income from a business entity, 00:19:15.800 --> 00:19:21.000 serving on the board of directors or as an officer of a business entity or nonprofit, 00:19:21.000 --> 00:19:29.300 or having solicited, received or accepted an offer of employment from a business entity or person in the last 12 months. 00:19:29.300 --> 00:19:34.500 So if you have a conflict of interest as defined on the slide with a pending matter on an agenda, 00:19:34.500 --> 00:19:40.000 you're required to recuse yourself from the discussion and submit an affidavit of abstention to the city auditor. 00:19:40.000 --> 00:19:46.900 That's me. A pending matter includes an application seeking approval or authorization, 00:19:46.900 --> 00:19:56.300 a proposal to enter into a contract or a case involving the city that is or may be before a civil criminal or administrative tribunal. 00:19:56.300 --> 00:20:05.100 Further, it's a violation of the ordinance for a current city official to represent a person, group or entity before a city board or commission for compensation. 00:20:05.100 --> 00:20:11.000 This prohibition also applies to former city officials for one year after termination of their official duties. 00:20:11.000 --> 00:20:17.700 Similarly, formal city officials are prohibited from performing compensated work on a city contract or arrangement 00:20:17.700 --> 00:20:25.700 that they substantially participated in the negotiation, award or administration of unless that was just limited to deliberation. 00:20:25.700 --> 00:20:31.400 So any questions on the conflict of interest representation of other sections? 00:20:31.400 --> 00:20:39.800 >> Excuse me. I do have one on the $600 of a business entity's fair market value. 00:20:39.800 --> 00:20:50.700 I think that kind of makes sense of, you know, it's my -- I'm an investor in a store downtown or something like that that's got a case before a board. 00:20:50.700 --> 00:21:01.800 But I was wondering about general stocks. Like if I -- if you have a 401(k) invested in S&P 500 and -- 00:21:01.800 --> 00:21:02.900 >> It holds target. 00:21:02.900 --> 00:21:08.400 >> General -- yeah, target is building a something. 00:21:08.400 --> 00:21:18.400 Is that -- does that apply or is there a threshold at which -- how many degrees of separation do you have to have for that $600 in market value? 00:21:18.400 --> 00:21:24.300 >> Yeah, I think what you're talking about would be covered by the 5% or more of the voting shares or stocks. 00:21:24.300 --> 00:21:27.200 So if you own 5% or more of targets -- 00:21:27.200 --> 00:21:31.000 >> I guess if it has voting shares or stocks, you have to be a -- if it's something small -- 00:21:31.000 --> 00:21:33.300 >> If you own voting shares -- yeah, I believe so. 00:21:33.300 --> 00:21:41.500 >> Okay, I was just curious because thinking about that, you know, you get the occasional like large corporate thing and probably a lot of people have their 401(k)s and funds that might have it. 00:21:41.500 --> 00:21:42.400 >> Right. 00:21:42.400 --> 00:21:42.800 >> Okay. 00:21:42.800 --> 00:21:47.100 >> Good question. 00:21:47.100 --> 00:21:50.200 >> All right, I have a question. 00:21:50.200 --> 00:21:55.000 I may have misunderstood, but you were going through that list of things after you read this list of things, you went through another list. 00:21:55.000 --> 00:21:56.700 >> There's a lot of lists, I'm sorry. 00:21:56.700 --> 00:21:57.500 >> That's okay. 00:21:57.500 --> 00:22:04.900 And one of them seemed like it was saying something about 12 months after we have left the board. 00:22:04.900 --> 00:22:06.500 Could you say that again? 00:22:06.500 --> 00:22:28.000 >> Yes, so if once you're -- a former city official is somebody who has been on a board -- is no longer on a board, but was on one within the last 12 months, and you're -- during that time period, you're not allowed to represent a person, group, or entity before a city board or commission for compensation. 00:22:28.000 --> 00:22:29.500 >> Oh, for compensation. 00:22:29.500 --> 00:22:30.100 >> Right. 00:22:30.100 --> 00:22:35.300 >> Okay, so you could still speak to an issue that was before a public body with the city of Denton. 00:22:35.300 --> 00:22:35.900 >> Correct. 00:22:35.900 --> 00:22:37.900 >> Okay, you just can't represent them as a -- 00:22:37.900 --> 00:22:38.200 >> Right. 00:22:38.200 --> 00:22:40.200 >> -- paid spokesperson. 00:22:40.200 --> 00:22:40.900 >> Yes, that's correct. 00:22:40.900 --> 00:22:44.100 >> Okay, thank you. 00:22:44.100 --> 00:22:47.600 >> Any other questions on this section? 00:22:47.600 --> 00:22:50.500 Great. 00:22:50.500 --> 00:23:00.300 Next, the ethics ordinance also prohibits a city official or their relative from accepting any gift that might reasonably influence a city official in discharging their duties. 00:23:00.300 --> 00:23:03.900 So that's kind of the general prohibition or yellow light to kind of guide you. 00:23:03.900 --> 00:23:15.200 And then the specifics include a city official cannot accept a single gift valued more than $50 or multiple gifts with a total value of more than $200. 00:23:15.200 --> 00:23:24.600 In general, a gift is considered to be anything of monetary value such as cash, property, services, meals, entertainment, or travel-related expenses. 00:23:24.600 --> 00:23:34.600 If a gift is accepted, the city official may remedy the potential violation of the ordinance by promptly donating it or reimbursing the gift giver the actual or fair market value of the gift. 00:23:34.600 --> 00:23:44.200 And then if it is accepted, the city official should disclose the acceptance and the remedy by filing a disclosure with the city auditor. 00:23:44.200 --> 00:23:51.800 The ordinance does allow certain exceptions to the gifts prohibition, which means that if you're under this exception, that's actually a green light. 00:23:51.800 --> 00:24:02.600 And that includes lawful campaign contributions, expenses related to a city official's travel to a conference or other training event that's connected to the city business, 00:24:02.600 --> 00:24:12.100 expenses related to appearances at nonprofit or community events related to city business, complementary attendance at fundraising events or hospitality functions, 00:24:12.100 --> 00:24:26.400 complementary or promotional copies of trade publications or clothing items or gifts that are given due to a personal, familial or professional relationship that is not really related to the city official's city duties at all. 00:24:26.400 --> 00:24:33.700 So any items received that fall under one of those exceptions do not need to be disclosed, however, city official can choose to disclose them if they would like to. 00:24:33.700 --> 00:24:45.300 So questions about the gifts prohibition section? OK. 00:24:45.300 --> 00:24:53.800 Next, it is a violation of the ordinance for a city official to misuse the influence or information gained due to their official city position. 00:24:53.800 --> 00:25:06.900 So specifically, a city official may not use their influence to secure special privileges or treatment for a person, group or business organization beyond what's normally available or to imply that they can do such things. 00:25:06.900 --> 00:25:20.200 While this is a specific prohibition, it's a yellow light as it's not meant to prohibit a city official from providing individuals, groups or businesses with information on how city processes work so that they can more easily access normally available services. 00:25:20.200 --> 00:25:26.800 So for that reason, city officials should proceed cautiously and thoughtfully when trying to help the public with specific concerns. 00:25:26.800 --> 00:25:54.300 Specifically, city officials should be cautious when stating what they can do to ensure a concern is addressed. Further, a city official may not state or imply that they are acting as a representative of the city unless they've been authorized to do so by the city council. 00:25:54.300 --> 00:26:07.500 So these are red lights. There's not really an instance where misrepresenting yourself as an authorized city representative or using confidential information for private interests would be ethical. 00:26:07.500 --> 00:26:10.300 Questions on this section? Yes, sir. 00:26:10.300 --> 00:26:17.300 So on the confidential information, the last red light, is there a time frame on that? 00:26:17.300 --> 00:26:28.600 I don't believe so. One year you are on probation, as it were, but then after that, forever and ever. 00:26:28.600 --> 00:26:31.100 I believe that's how it's currently written. 00:26:31.100 --> 00:26:39.300 Thank you. Oh, I think it might be limited to one year. 00:26:39.300 --> 00:26:41.400 I'd have to go back and check, Rob. 00:26:41.400 --> 00:26:45.400 You know, I've got it pulled up right now, but I don't see it. 00:26:45.400 --> 00:26:51.900 I think by using the term former city official, it might define that as the 12-month period. 00:26:51.900 --> 00:26:56.800 I'd have to go. It's complicated sometimes, what it's saying. 00:26:56.800 --> 00:27:01.000 One year after termination of duties. 00:27:01.000 --> 00:27:08.200 So I think it is one year. You're correct. 00:27:08.200 --> 00:27:16.000 Other questions on this section? Last of the prohibitions. 00:27:16.000 --> 00:27:20.300 It is a violation of the ordinance for a city official to abuse the city's resources 00:27:20.300 --> 00:27:24.000 or the power or privileges granted by their official position. 00:27:24.000 --> 00:27:29.900 Specifically, a city official should not use, request, or allow the use of city resources, 00:27:29.900 --> 00:27:34.900 such as facilities, personnel, equipment, software, or staff time for private purposes, 00:27:34.900 --> 00:27:39.400 including political purposes, except to the extent that those are available to other residents. 00:27:39.400 --> 00:27:41.700 So while this is a specific prohibition, 00:27:41.700 --> 00:27:45.300 it's also a yellow light because it doesn't have any kind of clearly defined thresholds. 00:27:45.300 --> 00:27:48.800 And there are instances where a city official can ethically use city resources, 00:27:48.800 --> 00:27:53.000 like renting a city facility at a publicly available price. 00:27:53.000 --> 00:27:56.700 On the other hand, it is a violation of the ordinance for a city official to harass 00:27:56.700 --> 00:28:01.800 or discriminate against a person based on their ethnicity, race, gender, gender identity, 00:28:01.800 --> 00:28:06.100 sexual orientation, marital or parental status, or religion. 00:28:06.100 --> 00:28:10.900 It's also a violation to interfere with any city-related criminal or administrative investigation, 00:28:10.900 --> 00:28:15.600 including persuading or coercing someone else to withhold their cooperation. 00:28:15.600 --> 00:28:19.300 These are red lights. There's no instances where harassment, discrimination, 00:28:19.300 --> 00:28:22.600 or interfering with an investigation is considered ethical behavior. 00:28:22.600 --> 00:28:26.600 Questions about this section? All right. 00:28:26.600 --> 00:28:31.700 We're almost done, I promise. 00:28:31.700 --> 00:28:35.700 Now that you all have an understanding of the expectations, mandates, and prohibitions 00:28:35.700 --> 00:28:40.100 outlined in the ordinance, do you ever come upon a situation where you need additional guidance? 00:28:40.100 --> 00:28:41.700 You have a few options. 00:28:41.700 --> 00:28:47.200 First, if you need direction helping to find a section of the ordinance related to a particular situation 00:28:47.200 --> 00:28:50.800 or an answer on how to submit a complaint or disclosures, 00:28:50.800 --> 00:28:57.600 you can reach out to me at internalaudit@cityofdenton.com. 00:28:57.600 --> 00:29:02.100 And then second, if you have an attorney, they may be able to provide you with an interpretation 00:29:02.100 --> 00:29:07.200 of the ethics ordinance to help you decide whether to recuse yourself or not in a given situation. 00:29:07.200 --> 00:29:12.700 And this is a personal attorney, not the city attorney's office. 00:29:12.700 --> 00:29:19.000 And finally, you can also request that the Board of Ethics issue an advisory opinion, 00:29:19.000 --> 00:29:25.800 which is intended to answer a question about compliance with the city's ethics ordinance in a particular situation. 00:29:25.800 --> 00:29:32.500 So the biggest advantage of an advisory opinion is that a city official can use it as an affirmative defense 00:29:32.500 --> 00:29:35.600 to a submitted ethics complaint if they relied upon it in good faith. 00:29:35.600 --> 00:29:37.900 So basically, if you say, hey, is this a problem? 00:29:37.900 --> 00:29:39.300 And the Board of Ethics says no. 00:29:39.300 --> 00:29:44.100 If somebody then submits a complaint against you, you can say, they told me this wasn't a problem. 00:29:44.100 --> 00:29:46.600 That's the basics. 00:29:46.600 --> 00:29:52.000 To receive an advisory opinion, a city official must submit the request in writing to the city auditor, 00:29:52.000 --> 00:29:55.500 including relevant details of the situation in question. 00:29:55.500 --> 00:30:01.100 I will then communicate that request to the Board of Ethics chair who assigns it to a panel of three Board of Ethics members 00:30:01.100 --> 00:30:05.800 for review, and they have 38 days to issue the advisory opinion once it's received. 00:30:05.800 --> 00:30:10.500 It usually takes less time than that, but that's the required timeline. 00:30:10.500 --> 00:30:14.200 So any questions about the advisory opinion process? 00:30:14.200 --> 00:30:17.100 Safe to say, when in doubt, recuse. 00:30:17.100 --> 00:30:21.000 Yeah. 00:30:21.000 --> 00:30:23.200 Okay. 00:30:23.200 --> 00:30:24.100 All right. 00:30:24.100 --> 00:30:27.900 This is the last big chunk of information, sort of. 00:30:27.900 --> 00:30:33.500 So finally, the Board of Ethics' primary function is to process ethics complaints. 00:30:33.500 --> 00:30:37.700 So there are four phases of the ethics complaint process that I'll briefly run through, 00:30:37.700 --> 00:30:40.000 just so you have a general awareness of how that works. 00:30:40.000 --> 00:30:46.500 Additional information about the complaint process is available on the city's Board of Ethics webpage or can be requested from me. 00:30:46.500 --> 00:30:56.300 So first, during the initiation process stage, an individual will submit an ethics complaint using the prescribed form to the city auditor. 00:30:56.300 --> 00:31:00.900 This complaint form should be accompanied by any evidence, such as images, videos, or documentation, 00:31:00.900 --> 00:31:07.500 that the complainant has to support their allegations and must be sworn to in front of a notary. 00:31:07.500 --> 00:31:14.500 The city official then determines if the ethics complaint is administratively complete, but does not make any judgment on the complaint's merits. 00:31:14.500 --> 00:31:23.700 If a complaint is accepted, a copy is forwarded to the complainant, the respondent, and the Board of Ethics chair who assigns it to a preliminary assessment panel. 00:31:23.700 --> 00:31:32.700 During the preliminary assessment phase, a panel of three Board of Ethics members reviews the submitted ethics complaint and determines if it is actionable or baseless. 00:31:32.700 --> 00:31:39.700 A complaint is actionable if, on its face, the behaviors alleged in the complaint would constitute a violation of the ordinance. 00:31:39.700 --> 00:31:47.000 The panel may also recommend that a hearing be held to determine if a complaint is frivolous instead of determining if it is actionable or baseless. 00:31:47.000 --> 00:31:51.900 The outcome of the preliminary assessment is communicated to the complainant and respondent by me. 00:31:51.900 --> 00:31:56.200 And if the complaint is determined to be baseless, the process stops at this point, 00:31:56.200 --> 00:32:03.600 though the complainant may submit a written appeal within 10 business days, which would then initiate the hearing phase. 00:32:03.600 --> 00:32:12.700 During the hearing phase, the Board of Ethics schedules an evidentiary hearing and may request additional documentary evidence or issue subpoenas to require individuals to testify. 00:32:12.700 --> 00:32:18.800 The complainant must attend and testify at this hearing and may also present any additional evidence that they've gathered. 00:32:18.800 --> 00:32:24.100 In addition, the respondent may provide testimony and evidence for the board's consideration. 00:32:24.100 --> 00:32:32.500 Both the complainant and the respondent have a right to be represented by legal counsel or another advisor at the evidentiary hearing. 00:32:32.500 --> 00:32:39.400 And based on the evidentiary hearing, the board will determine if a violation of the ordinance has occurred and may issue a sanction. 00:32:39.400 --> 00:32:46.900 Once the board has decided on the ethics complaint, the complainant and respondent both have five business days to submit any new evidence 00:32:46.900 --> 00:32:52.200 and request a reconsideration by submitting that request in writing to me. 00:32:52.200 --> 00:33:01.700 And then the Board of Ethics chair will review the reconsideration request and will unilaterally determine if a new hearing is warranted based on the new evidence. 00:33:01.700 --> 00:33:03.000 So any questions about this process? 00:33:03.000 --> 00:33:05.700 I have one more slide about what the sanctions actually are. 00:33:05.700 --> 00:33:08.200 But that was I know this is kind of a lot of information, too. 00:33:08.200 --> 00:33:12.000 So. Questions about this process. 00:33:12.000 --> 00:33:16.300 Hopefully, you'll never have to go through it exactly. 00:33:16.300 --> 00:33:18.000 That's why you keep training us. 00:33:18.000 --> 00:33:23.900 So if during an evidentiary hearing, the Board of Ethics finds that a violation of the ordinance has occurred, 00:33:23.900 --> 00:33:31.300 they may issue one of four sanctions based on the city officials perceived intent and the seriousness of the violation. 00:33:31.300 --> 00:33:35.900 And this decision process is generally illustrated in the matrix on the slide. 00:33:35.900 --> 00:33:41.700 And if the board was to impose a sanction, the city official will be notified within 10 days by by me. 00:33:41.700 --> 00:33:48.200 So these are this I don't know how to these are the potential sanctions. 00:33:48.200 --> 00:33:50.000 If you have questions, you can ask them. 00:33:50.000 --> 00:33:51.900 But that's the end of the training. 00:33:51.900 --> 00:33:54.000 Congrats. You've done it. 00:33:54.000 --> 00:33:58.400 I do have a piece of paper for you to sign. 00:34:12.700 --> 00:34:17.300 Commission. 00:34:17.300 --> 00:34:19.700 We've got the wrong commission title on here. 00:34:19.700 --> 00:34:21.600 We're not planning to sign the commission. 00:34:21.600 --> 00:34:23.700 Oh, shit. 00:34:23.700 --> 00:34:27.500 Indeed, it does. 00:34:27.500 --> 00:34:30.100 Crossed through an initial correction. 00:34:30.100 --> 00:34:32.100 Yeah. 00:34:32.100 --> 00:34:34.900 What this graph is out right now. 00:34:34.900 --> 00:34:45.300 We have initial that all the right names are on there, though. 00:34:45.300 --> 00:34:46.800 Yeah. 00:34:46.800 --> 00:34:49.800 I have to do planning and zoning also. 00:34:49.800 --> 00:34:50.400 It happens. 00:34:50.400 --> 00:34:51.500 We understand. 00:34:51.500 --> 00:34:54.600 So if you have any questions, I'm happy to answer them. 00:34:54.600 --> 00:34:56.900 But thank you for attending this training. 00:34:56.900 --> 00:34:58.400 Thank you, Madison. 00:34:58.400 --> 00:34:59.800 So and it's required annually. 00:34:59.800 --> 00:35:05.000 So if you're still around next year, you'll probably see me again. 00:35:05.000 --> 00:35:26.500 All right. 00:35:26.500 --> 00:35:28.200 It is 10 0 8. 00:35:28.200 --> 00:35:31.500 Do we have a motion to adjourn? 00:35:31.500 --> 00:35:34.300 Go Lee. 00:35:34.300 --> 00:35:37.000 Okay, we're adjourned.