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HomeMy WebLinkAbout2026-045 Disclosure of Private Meetings with DevelopersJuly 31, 2026 Report No. 2026-045 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Disclosure of City Councilor Private Meetings with Developers BACKGROUND: On June 24, 2026, Mayor Pro Tem Stevens submitted a two-minute pitch to have a work session to develop a policy that would require city councilors to disclose private meetings with developers that have pending matters before Council. On July 14, 2026, the City Council gave direction to proceed with the two-minute pitch proposal as outlined in Ordinance 24-1725. DISCUSSION: Historically, the City of Denton has adopted three ethics-related regulations that apply to City Councilors: 1. City Council Ethics Policy (R2006-003): Applies seven standards of personal and public conduct to City Councilors including: o Ethical; o Service-Oriented; o Fiscally Responsible; o Communicative; o Cooperative; o Progressive and Receptive to New Ideas; and o Not Delinquent in Paying Monies Owed the City. 2. City Council Developer and Economic Development Engagement Policy (R18-1929): Governs individual councilor interactions with members of the development community and individuals, groups, or entities requesting any type of incentive or special consideration by: o Prohibiting councilor communication outside of a public meeting with developers, persons, or entities regarding any type of incentive or special consideration related to a development or economic development matter that is on a Council agenda due to a tie-vote or that is subject to a motion for reconsideration; and o Providing a method by which councilors may disclose to the City Manager, and Council, conversations they have had with developers, individuals, groups, or entities regarding any pending development or economic development case that requires formal Council action. 3. City of Denton Ethics Ordinance (Ord. 25-577): Provides a framework to encourage ethical behavior by City Officials and enforces basic standards of conduct while providing due process, including: o Providing aspirational expectations; o Mandating certain disclosures; o Prohibiting certain conduct; and July 31, 2026 Report No. 2026-045 o Establishing a Board of Ethics to determine if alleged violations of these mandates and prohibitions have occurred. None of these regulations would currently require a City Councilor to disclose private meetings with developers that have pending matters before Council. Implementation of this request would require that Council, or potentially the Board of Ethics, answer the following questions. Potential answers to these questions that currently exist in the City’s ethics-related regulations are provided for reference. Implementation Question Potential Existing Definition/Process What is a Pending Matter? Ethics Ord. Sec. 2-269: an application seeking approval of a permit or other form of authorization required by the City, State, or Federal law; a proposal to enter into a contract or arrangement with the City for the provision of goods, services, real property, or other things of value; a case involving the City that is (or is anticipated to be) before a civil, criminal, or administrative tribunal. R18-1929: “any pending development or economic development case that will require formal Council action.” What is a Developer? None. However, Ethics Ord. Sec. 2-269 defines a Vendor as a person who provides or seeks to provide goods, services, and/or real property to the City in exchange for compensation. This definition does not include those property owners from whom the City acquires public right-of-way or other real property interests for public use. Further, R18-1929 covers meetings with “developers . . . individuals, groups, or entities.” What is a Private Meeting? R18-1929: “conversations.” How should disclosures be made? Ethics Ord. Sec. 2-272: Requires mandated disclosures to be filed with the City Auditor and City Secretary; disclosures received must be distributed by City staff prior to the relevant Pending Matter being deliberated. R18-1929: Allows Councilors to make optional disclosures to the City Manager; requires the City Manager to attach relevant disclosures to City Council agenda items. By when should disclosures be made? Ethics Ord. Sec. 2-272: Requires mandated disclosures be made at least one business day prior to Deliberation of the relevant Pending Matter. What should be disclosed? None. July 31, 2026 Report No. 2026-045 Staff have not conducted research to determine if peer cities have implemented similar disclosure requirements. Staff recommends that these implementation questions be answered in one of two ways: 1. Direct staff to schedule a work session to have the City Council answer these implementation questions, including whether the City Council Ethics Policy, City Council Developer and Economic Development Engagement Policy, or Ethics Ordinance should be amended or if a new resolution or ordinance should be adopted; or 2. Direct the Board of Ethics to propose an amendment to the Ethics Ordinance to implement this proposal, including answering the implementation questions. STAFF CONTACT: Madison Rorschach, City Auditor City Auditor’s Office (940) 349-7228 Madison.Rorschach@cityofdenton.com REQUESTOR: Mayor Pro Tem Stevens PARTICIPATING DEPARTMENTS: None. STAFF TIME TO COMPLETE REPORT: 1.5 Hours