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2023-036 Hunter Cole Board Appointee Nominations May 5,2023 2023-036 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Information regarding City Council Appointees to Hunter Ranch and Cole Ranch Municipal Management District Boards of Directors BACKGROUND: Hunter Ranch and Cole Ranch are master-planned community developments occurring west of I- 35 West and east of Robson Ranch. On April 7, 2020, the developments sought and received City Council approval through consent resolutions to form Municipal Management Districts (MMD). An MMD is considered a governmental agency and a political subdivision of the State. The Hunter Ranch and Cole Ranch MMDs are intended to finance public capital improvements and/or services by imposing property taxes and/or special assessments on property owners within the district who are benefiting from the improvements and services. With that source of revenue, and once the assessed value of the property is 10 times greater than the amount of debt to be issued, the MMD can issue bonds, which are then used to reimburse the developers for the up-front cost of the public improvements. The MMD is governed by a Board of Directors responsible for the management, operation, and control of the property belonging to the districts. Five directors are appointed to each district and the City of Denton has the right, but not the obligation, to appoint an additional director to each the MMD boards. DISCUSSION: In June 2020,the City Council appointed Susan Parker to serve on the Hunter Ranch MMD Board of Directors and Michael Bradshaw to serve on the Cole Ranch MMD Board of Directors. Since their appointments, both Hunter Ranch and Cole Ranch have submitted their Phase 1 preliminary plats, and the MMD boards are meeting regularly to receive development updates and provide direction on district matters. The term for both City appointees is set to expire on June 10, 2023. If Council does not replace or reappoint a board member, the existing appointee will continue to serve in their current capacity and maintain all rights and responsibilities of an appointed board member. In accordance with the City and district agreements, the City may appoint one Director to each district board. The appointees will serve a four-year term for their respective district. Disqualifying relationships for potential nominees include: • Nominees cannot be an elected official • Nominees that are City of Denton employees would be restricted from voting on most District matters May 5,2023 2023-036 • Nominees cannot be a developer of property within the district • Nominees cannot be related within three degrees by either blood or marriage to, or be employed by (i) a developer of property within the district, (ii) any of the directors of the District, (iii) the attorney, engineer or manager of the District, or (iv) any other person providing professional services to the District or property located in the District • Nominees cannot serve as an attorney, consultant, engineer, manager, architect or in some other professional capacity for the District or a developer of property in the District • Nominees can have no business or other connection with the developer of the District, the attorney representing the District or the consulting engineer for the District in regard to the District and the development therein • Nominees cannot be a party to a contract with a developer of property within the District other than as allowed by Texas Water Code Section 49.052(a)(5)(A) All directors are subject to the provisions of Chapter 171, Local Government Code, relating to the regulation of conflicts of interest of officers of local governments. Additionally, all directors are subject to the provisions of the Texas Constitution prohibiting dual office holding. As a result, existing appointees to the following boards are prohibited from serving on the district boards: • Board of Ethics • Civil Service Commission • Denton Housing Authority Board • Health and Building Standards Commission • Historic Landmark Commission • Planning &Zoning Commission • Zoning Board of Adjustment Staff requests City Council submit nominations, including a resume for all nominees,by 5:00 p.m. on Friday, May 26 for inclusion in the June 6, 2023 City Council agenda packet. Please email nominations and resumes to Jesus Salazar at jesus.salazargcityofdenton.com. STAFF CONTACT: Ethan Cox Director— Streets Ethan.Cox@cityofdenton.com (940) 349-7421 REQUESTOR: Staff Initiated STAFF TIME TO COMPLETE REPORT: 30 minutes PARTICIPATING DEPARTMENTS: Legal and City Secretary's Office