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2009_07.21 EDC Agenda PacketCITY OF KENNEDALE, TEXAS OFFICE OF THE CITY SECRETARY KEDC ROLL CALL DATE: JULY 21, 2009 START TIME: 7 i t / 'T PM END TIME: PM ROLL CALL: CITY STAFF PRESENT: PRESENT ABSENT PRESIDENT ROBERT MUNDY - P4 VICE PRESIDENT BEVERLY HAYES - P3 BOARD OF DIRECTOR DARRELL ERWIN - PI BOARD OF DIRECTOR DOU RG PARKER - P2 BOARD OF DIRECTOR DONNIE GRAHAM - P5 BOARD OF DIRECTOR MARK YEARY - P6 BOARD OF DIRECTOR REBECCA MOWELL - P 7 CITY STAFF PRESENT: - rhc - )M P q f ) v R G1 b w I�GPC� N,d lit -t �� ���1tJt PRESENT ABSENT CITY MANAGER BOB HART CITY SECRETARY KATHY TURNER SAKURA M. DEDRICK DIR. OF FINANCE - rhc - )M P q f ) v R G1 b w I�GPC� N,d lit -t �� ���1tJt ff NOTICE OF MEETING OF THE =,,•' KENNEDALE ECONOMIC DEVELOPMENT OPTORS BOARD OF DIRU-%O It K ENNEDALE, TEXAS Notice is hereby given that a Special Meeting on the will be da by Kenneda f July 2009 at P.M., in Development Corporation Board of Dounc�lsChambers located at 405 Municipal Drive, the Kennedale Municipal Building Kennedale, Texas, at which time the following subjects will be discussed to wit: Dated this 17 day of July 2009. By: Robert P Mundt/President I, the undersigned authority, do hereby certify that the above Notice of Meeting of the Economic Development Corporation Board of Directors N Is a Noti on the bulletin boa d said Notice and that I posted a true and correct copy of s aid of Cit Hall of said City in Kennedale, Texas, a place convenient and readily accessible to the g eneral public at all times, and said Notice was post ast 72 hours 200 at 4:00 the o'clock P.M., and remained so posted continuously or at scheduled time of said Meeting. Persons with disabilities who plan to attend this meeting and who may need auxiliary .aids or- services such as interpreters for P� u de fined at(gl7) 95.2 04 impaired, readers, large print, are requested to co ro c liate arrangements can be made. five (5) work days prior to the meeting so that app p ' .... p le this the 17 KU 0 v' � UJ " �•r U4 g�9" c u v . day of July 2009. By: Kathy Turner, City Secretary i M A. Review and consider action to approve regular meeting minutes dated June 2, 2009. B. Review and consider action to approve KEDC Financial Reports. C. Discuss photo survey results and recommendations. D. Review and consider marketing material, website, brochure, and map. E. Public Hearing, Review and Consider action to forward a recommendation to the City Council to approve proposed 2009 -2010 fiscal year budget and proposed KEDC projects. 1. Staff presentation 2. Public Hearing - To receive citizen's comments on the proposed KEDC 2009- 20 10 fiscal year budget, and projects. a. Project Planning, Construction, Development, and on -going day -to -day actual projects derived from these plans; b. The Creation of a Tax Increment Financing District(s) (TIF) and Municipal Management District ( ) including Consultation, Planning, Legal, and Engineering Services; c. The Creation of a Tax Increment Financing District(s) (TIF) and Municipal Management District ( ) including Consultation, Planning, Legal, and Engineering Services; d. The continuation of the existing Revitalization Grant Program and funding; e. Industrial expansion and recruitment program. Page 1 of 3 f. The recruitment of new and retention of existing Kennedale industrial businesses and development /redevelopment of industrial park(s); including but not limited to rail spurs, infrastructure, and office parks, etc; g. „ The recruitment of new and retention of existing Kennedale industrial businesses and development /redevelopment of industrial park(s); including but not limited to rail spurs, infrastructure, and office parks, etc; h. The purchase / leasing / sale or other means of transfer of real estate land and properties for the accomplishment of the above designated projects; i. The issuance, purchase, sale, or other means of transfer of Bonds and other debt instruments designed to fund the above objectives including, but not limited to implementing a Tax Increment Financing (TIF) District / Municipal Management District (MMD) and mixed -use project(s) development /redevelopment; j. The implementation of an E -Civis Grant Writing Program; k. Contractual staff services (Orasi Development); and All necessary services and related expenses for the above projects including but not limited to project master - planning; engineering; alternate energy sources; project advertising / marketing; related consultant and legal services; new construction / remodeling / maintenance of landscaping, roadways, City / KEDC owned or leased buildings, and their related improvements. The above listed projects will require expenditure of funds collected from the 4B sales tax. If the KEDC Board of Directors recommends approval of the eligible project, the City Council will act on the recommendation at their regularly scheduled meeting on the 10 day of September 2009. 3. Staff summary 4. - Action on 2009 -2010 fiscal year budget and proposed KEDC projects. F. Discussion of strategies to work with the Chamber of Commerce. G. Review and consider action to cancel representation agreement with Mark A. Howe dba Howe /Wood & Company and /or its assigns and /or its affiliates (HW &C), and to provide 30 day written termination notice. H. Review and consider action to cancel management contract with Quine & Association, Inc., and to provide 30 day written termination notice. Review and consider action to change date and time of future meetings. Page 2 of 3 I IV. STAFF ANNOUNCEMENTS/REPORIN A. KEDC Executive Director Announcement /Reports 1. Update on Kennedale TownCenter activities, including P&Z action and the 2.0.0.9 NCTCOG Sustainability Grant Program 2. CGI Communications video project 3. MMD Bill start-up 4. Orasi Development report V. PRESIDENT/BO ANNOUNCEMENTS/REPORTS A. President Announcements/Reports 1. Report agenda items to be posted for future meetings. Page 3 of 3 Date: July 13, 2009 Subject: Review and consider approval of meeting minutes. Originated by: Kathy Turner, KEDC Secretary Summary: A draft copy of the meeting minutes dated June 2, 2009 are attached for your review and consideration. Recommendation: Recommend Approval. 298 L; 1. t• 1 1 1 BOARD • (= 405 MUNICIPAL dE 2, 2009 MUNICIPAL BLDG. President, Robert Mundy called the meeting to order at 7:16 p.m. Members present: President, Robert Mundy, Vice - President, Beverly Hayes, Board of Directors, Donnie Graham, Doug Parker, Rebecca Mowell, and Darrell Erwin. Members absent: Board of Director, Mark Yeary. Staff present: Bob Hart, Executive Director, Sakura Moten - Dedrick, Treasurer, and Jack Thompson, with Orasi Development and KEDC contract provider. 1. PUBLIC HEARING NOTICE President, Robert Mundy read public hearing notice announcing that on July 21, 2009 at 7:15 p.m, a Public Hearing of the Economic Development Corporation 4B would be held in the City Hall Building, 405 Municipal Drive, Kennedale, Texas, 76060, for the purpose of considering various amendments to the Fiscal Year 2009 -2010 budget, and KEDC projects. Mundy said a sixty (60) day period beginning June 2, 2009; the date of the public notice of the proposed project(s), the public may submit a petition with any objections to the project(s). Please contact City Secretary, Kathy Turner, concerning any questions at 817- 985 -2104. Project Planning, Construction, Development, and on -going Day -to -Day Operations/Management /Marketing of a "mid- city" downtown district including but not limited to the commercial, medical, retail, and (New Urbanism style, typically higher density / multi - storied) residential growth of TownCenter Kennedale and its surrounding area; 2. The development of new and renovation of existing commercial /residential and municipal / KEDC projects designed to enhance Kennedale's lifestyle and quality of life; 3. The further development /beautification/landscaping /upgrading of the TownCenter Kennedale area and its adjoining TCK Plaza; 4. The planning, implementation, and operation of Civic / City Events and establishment of a City /TCK Public Arts Program; 5. The construction of a new Kennedale Entranceway Monument Sign at a site TBD; 6. The creation & implementation of Kennedale Parkway, Village Creek, and I -20 commercial and residential Urban Renewal / Development/Redevelopment / Revitalization / Beautification plans / Kennedale Parkway Landscape Median and actual projects derived from these plans; 7. The Creation of a Tax Increment Financing District(s) (TIF) and Municipal Management District (MMD) including Consultation, Planning, Legal, and Engineering Services; M e g. A Kennedale Marketing and Implementation Plan aimed at City Branding and attracting new Kennedale projects and businesses; 9. The continuation of the existing Revitalization Grant Program and funding; 10. Industrial expansion and recruitment program. 11. The recruitment of new and retention of existing Kennedale industrial businesses and development /redevelopment of industrial park(s); including but not limited to rail spurs, infrastructure, and office parks, etc; 12. The attraction and development of DFW Metroplex area commuter transit / light rail / mass transportation services including the development of a Kennedale rail station and related improvements; 13. The purchase / leasing / sale or other means of transfer of real estate land and properties for the accomplishment of the above designated projects; 14. The issuance, purchase, sale, or other means of transfer of Bonds and other debt instruments designed to fund the above objectives including, but not limited to implementing a Tax Increment Financing (TIF) District / Municipal Management District (MMD) and mixed -use project(s) development /redevelopment; 15. The implementation of an E -Civic Grant Writing Program; 16. Contractual staff services (Orasi Development); and 17. All necessary services and related expenses for the above projects including but not limited to project master - planning; engineering; alternate energy sources; project advertising / marketing; related consultant and legal services; new construction / remodeling / maintenance of landscaping, roadways, City / KEDC owned or leased buildings, and their related improvements. In closing, Mundy said the above listed projects would require an expenditure of funds collected from the 4B sales tax. If the KEDC Board of Directors recommended approval of the eligible projects, the City Council would act on the recommendation at their regularly scheduled meeting on the I O day of September 2009. II. REGULAR ITEMS a. Review and consider action to approve regular meeting minutes dated April 21, 2009. Doug Parker moved to approve the regular meeting minutes dated April 21, 2009 as submitted, second by Rebecca Mowell. Motion carried (6 -0). b. Review and consider action to approve KEDC Financial Reports. Sakura Moten - Dedrick, Treasurer reviewed the Economic Development Fund Income Statement, revenues, and expenses as of April 2009, as well as the sales tax history. No action was required on this item. 300 c. Review and consider action to approve Revitalization Grant Reimbursement to Lance Crosswhite dba 21" Century Direct for redevelopment of the former Kennedale city hall site with a maximum grant cap up to $32,000.00. Darrell Erwin and Rebecca Mowell recused themselves to comply with the Conflict Disclosure Act. Doug Parker moved to approve Revitalization Grant Reimbursement to Lance Crosswhite dba 20 Century Direct for redevelopment of the former Kennedale city hall site with a maximum grant cap of $32,000.00. Motion second by Donnie Graham. Motion carried with Doug Parker, Donnie Graham, Beverly Hayes, and Robert Mundy voting aye. (4 -0). d. Review and consider authorizing the Executive Director to engage an architect to prepare preliminary plans for restoration and relocation of the Section House to the TownCenter. Beverly Hayes moved to authorize the Executive Director to engage an architect to prepare preliminary plans for restoration of the Section House including architect rendering in a budgeted amount not to exceed Ten Thousand Dollars ($10,000.00) for use in fund raising efforts, second by Darrell Erwin. Doug Parker expressed concerns with requested money amount to be used as a cushion for more. Bob Hart, Executive Director replied that he was confident that the project could be completed with Fourteen Thousand Dollars ($14,000.00), and it was easier for him to work with a limit. Hart implied that if there was a problem, he would come back before the board. Motion carried (6 -0). e. Discussion with KEDC contract provider, Jack Thompson of Orasi Development relative to future economic development strategies, including projects for 2009/2010 fiscal year. Jack Thompson, President of Orasi Development and KEDC contract provider introduced his staff members, Michael Henig, Director of Research and Strategic Development, and Liz Heck, Marketing and PR Director, and said that the two may attend meetings on his behalf. Thompson requested that the Board participates in a visual survey by taking pictures of likes /dislikes as this would assist him with the strategic planning for the City, as well as provide a good understanding of the board's view of the City. Thompson would then develop the pictures and provide feedback to the board. Next, without getting too much into the strategic development, Thompson highlighted some important projects he felt the board should be considering in the future. Those projects included a pedestrian crossing for the TownCenter to link both sides of the City, transit orient opportunities, and connecting hard corners of the city to ease thoroughfare traffic. 301 f. Review and consider authorizing staff contractor and Executive Director to negotiate for industrial expansion incentives for Speed Fab Crete. Jack Thompson, President of Orasi Development, and KEDC contract provider addressed the board in regards to Speed Fab Crete's possible expansion of their business along Kennedale Parkway. Speed Fab Crete has indicated a desire to acquire the property located at 1000 E. Kennedale Parkway in order to construct a manufacturing facility for hollow concrete for use in building construction. Thompson said staff met with Speed Fab Crete representatives and the general discussion focussed on the EDC acquiring the 5 -acre tract and leasing it back to Speed Fab Crete over a 15 to 20 -year period with an option to purchase. Total investment is estimated at 1.2 million with approximately 6 to 30 jobs being created. Also, discussions included a sales tax sharing agreement between Speed Fab Crete and the City, which would require Council authorization. Thompson indicated that tonight's discussion was an introduction and to provide a preliminary overview of what actions have been discussed. Darrell Erwin moved to authorize staff contractor and Executive Director to negotiate for industrial expansion incentives for Speed Fab Crete, second by Donnie Graham. A brief discussion ensued on the time to create additional jobs, and it was noted that January 2010 was the anticipated date for production. Motion carried (6 -0). g. Review and consider action to change date and time of future meetings. It was noted that the June 16 meeting would not commence, and that the July 21, 2009 regular meeting would take place as scheduled. III. STAFF ANNOUNCEMENTS/REPORTS KEDC Executive Director Announcement/Reports 1. Update on Kennedale TownCenter activities. Bob Hart, KEDC Executive Director reported on the following activities: 1. Bowman Springs Road project is moving forward as right -of -way has been purchased; 2. Proceeding with Little School Road and Sublett with expectations of purchasing right -of -way towards the end of June; 3. Continuing to work with QuickTrip as zoning application had been submitted for review; 302 4. City has received notification that waste water ground application had been approved to expand the waste water service in the Oakcrest area; and 5. Development agreement with David Johnson and plans are scheduled to move forward in regards to the Planned Development District, which will be presented before the EDC in July with a recommendation to deed restrict the land to make the development agreement work more smoothly. 2. MMD Bill signed by governor. Bob Hart, Executive Director stated the governor had signed the bill, and a request had been made for a signing ceremony. a. President Announcements/Reports 1. Report agenda items to be posted for future meetings. No reported items noted. V. ADJOURNMENT There being no further discussion, President Mundy asked for a motion to adjourn. A motion was made and seconded with all members present voting in favor. Motion carried (6 -0) and the meeting adjourned by President Mundy 10:22 p.m. APPROVED: President, Robert Mundy ATTEST: Kathy Turner, Secretary ate: Jul 21, 2009 C W 11U Y Agenda Item No:< l Budget/Amendment We did not have any budget amendments during the month of May. However, given the notation made below from May's Staff Report, we have made several recodes to expenses during the months of June and July. Unfortunately, the Board will not see these changes until our Aug meeting. The month of May had already closed out, thus, the re-categorization of budgeted amounts and expenditures have been posted to June. In addition to seeing these changes in next month's financials, the Board can view them in the FY09 ®10 Proposed Budget that will be discussed at this month's meeting. Because there were numerous updates/re-categorizing of current budget/expense line items, Staff will address these at this month's meeting to avoid any confusion. ® Director Mundy inquired about oversight reporting on the Town Center Plaza. After further research, Staff determined the previous EDC Director provided an Excel spreadsheet which detailed expenses paid on a monthly basis towards this project. In an effort to avoid duplication of effort, particularly with expenses that will result from the upcoming development of the Town Center, Staff is working to rearrange the structure of the current year budget for tracking purposes. Currently, a majority of project expenses are being coded to either Contractual Services, Special Services or Engineering Service line items and this is proving quite a task to decipher per project. This will be made available at next month's meeting Year-To- @ Sales Tax: Please see attache-4. char4 Estimate Staff has made the items below available in the FY09 ®10 Proposed Budget. Staff is currently working on incorporating a year end estimate, along with projected ending fund balance. This will be made available at next month's meeting. BUDGET 532,211 30,890 Not Operating Income/ (Loss) (457,996) Beginning Fund Balance (as of Oct. I st) Y-T-D 807,814 x0mi 41, 889 425 a K City of Kennedale TOTAL, E ®C REVENUES $ 592,127 $ 360,816 60.940/a $ 582,211 $ 815,813 140.12% PERSONNEL COSTS FY07 -08 FY07 -08 YT® 61.61% FY08 -09 FY08-09 YT® 39.63% SUPPLIES EST ACTUAL May-08 PERCENT BUDGET may- -0 - 9 PERCENT MAINTENANCE FUND BALANCE CARRY FORWARD: 1 215 833 - 0.00% SALES TAXES 331,269 201,034 60.69% 357,011 209,994 58.82% INVESTMENT EARNINGS 48,455 38,463 79.38% 50,000 7,999 16.00% FUND 95 INVESTMENT EARNINGS - - 0.00% - - 0.00% RENTAL INCOME 212,403 121,319 57.12% 175,200 116,084 66.60% OTHER INCOME - - 0.00% - 481,136 0.00% TRANSFERS IN - - 0.00% 100,000 - 0.00% TOTAL, E ®C REVENUES $ 592,127 $ 360,816 60.940/a $ 582,211 $ 815,813 140.12% PERSONNEL COSTS 110,172 67,881 61.61% 108,109 42,847 39.63% SUPPLIES 9,107 5,580 61.27% 21,600 3 1 156 14.61% MAINTENANCE 30 - 0.00% 1,000 - 0.00% SERVICE 640,542 208,760 32.69% 527,371 202,728 38.44% UTILITIES 978 806 82.34% 600 220 36.62% GRANTS/ INCENTIVES 104,231 109,134 104.70% 100,001 4,417 4.42% TOWNCENTER 47,770 48,269 101.04% 74,210 26,101 36.17% CAPITAL 112,164 111,647 99.46% 207,316 111,309 63.69% TRANSFER OUT 100,000 100,000 - - TOTAL E ®C EXPENDITURES $ 1,124,993 $ 651,975 67.96% 1,040,207 390,779 357% REVENUES IN EXCESS OF EXPENSES (457,996) ENDING FUND BALANCE: 757,837 U=j / k 0 � k q � 2 � J \ � \ � / • / t 2 t A l c U ui 2 2 m � 2 2 w 9 « \ % q oe | 0- � 0� k 2 k U k Z k 0 I tol � � 4 9 k k k k k k k k ? 9 % k \ k q 69- 69- to)- (d+ a \ / • ¥ � \ � 2 ¥ � LU I & 2 I : 4 d I k a � � � # � k i k k k k k k LO 6 m 6 m 6 2 � � Z� to�- 47� m IV z 0 00 ca C; Z IWU Page I KEN 71`17/2009 02:34 PM Total 132,156 13,720 1,003 8,361 365 327 165,932 6,237 20 -26 3,570 1,830 435 2,560 450 5,550 4,131 2,157 57 3,111 110 30,211 30,211 125,721 -1,584 1,159 -121384 -121,809 3,913 Cash Flow 12 (Cash) Town Center Kennedale - (KEN) Oct 2008 -Pay 2009 Account Oct Nov Dec Jan Feb Mar Apr May INCOME Rental Income 17,154 18,836 16,036 16,036 16,036 16,036 15,990 16,036 Tax Escrows 1,734 1,810 1,696 1,696 1,606 1,696 1,696 1,696 Insurance Eser 134 179 -115 115 115 115 115 115 CAM Escrows 1,112 1,199 1,009 1,009 1,009 1,009 1,009 1,009 Late Fees 365 PR YR Insuranc 827 TOTAL INCOME 20,498 22.023 19,182 18.855 18,855 18,855 18,809 18,865 EXPENSES General & Admi Property Manag 820 881 767 754 754 754 752 754 Office Expense .6 17 17 Bank charges -25 Electricity-OAM log 474 490 481 464 496 533 460 Sweeping - CA 315 158 158 300 300 Soo 300 Porter Service- 70 30 go 60 32 90 32 30 Landscape -CA 640 320 320 320 $20 320 320 Fire Sprinkler/A 150 160 150 Hard Surface R 5,550 Asphalt-CAM 4.131 Elec. Supplies - 54 537 177 1,184 64 140 Mntc. Supplies - 67 Roofing Repair 2.025 355 731 R&M-CAM 40 70 Total General & 4,330 1,923 2,001 3,462 12,343 2,042 2,088 2,022 TOTAL EXPENS 4,330 1,923 2,001 3,462 12,343 2,042 2,088 2,022 NET PROFITILO 16,168 20,101 17,181 15,393 6,512 16,813 16,721 16,833 DJU$TMENTS Prepaid Rent 1 -1,584 A/P buyer/sell 1,159 Partner's Dist -12,920 -17.327 - 35 ,698 - 15, -6.612 -16.813 -16,721 TOTAL ADJUST -41,762 -18,911 -35,690 -15,393 -6,512 -16,813 -16,721 CASH PLOW 4,406 1,190 17,101 -20,305 -0,881 10,301 -92 112 Page I KEN 71`17/2009 02:34 PM Total 132,156 13,720 1,003 8,361 365 327 165,932 6,237 20 -26 3,570 1,830 435 2,560 450 5,550 4,131 2,157 57 3,111 110 30,211 30,211 125,721 -1,584 1,159 -121384 -121,809 3,913 2/2 Staff Report To KEDC Board of Directors Date: July 17, 2009 Agenda Item No: III -C Subject: Discuss photo survey results and recommendations. Originated by: Kathy Turner, City Secretary Summary: Jack Thompson, President of Orasi Development and KEDC Contract Provider will be present to discuss photo survey results and recommendations amongst board of directors. Recommendation: Disposition by KEDC Board of Directors: Date: July 17, 2009 Subject: Review and consider marketing material, website, brochure and map. Originated by : Kathy Turner, City Secretary Summary: Jack Thompson, President of Orasi Development and KEDC Contract Provider will be present to discuss marketing materials, website, brochure and map. ku o kt L-y _- lf? 4-0 abetjwL /z-�y Date: July 17, 2009 Agenda Item No: III -E Subject: Public Hearing, Review and Consider action to forward a recommendation to the City Council to approve the proposed 2009 -2010 fiscal year budget, and proposed KEDC projects. Originated by: Sakura Moten - Dedrick, Director of Finance Summary: Board of Directors will receive input from city staff, and citizens on the proposed 2009 -2010 KEDC budget, as well as the proposed projects listed below: 1. Staff presentation t, 2. Public Hearing — To receive citizen's comments on the proposed KEDC 2009- � 1P10 fiscal year budget, and projects. ftVJ1, C a. Project Planning, Construction, Development, and on -going day -to -day actual projects derived from these plans; b. The Creation of a Tax Increment Financing District(s) (TIF) and Municipal Management District (MMD) including Consultation, Planning, Legal, and Engineering Services; , 0 he Creation of a Tax Increment Financing District(s) (TIF) and Municipal %nineering nagement District (M MD) including Consultation, Planning, Legal, and Services; d. The continuation of the existing Devitalization Grant Program and funding; e. Industrial expansion and recruitment program. f. The recruitment of new and retention of existing Kennedale industrial businesses and development /redevelopment of industrial park(s); including but not limited to rail spurs, infrastructure, and office parks, etc; g. The recruitment of new and retention of existing Kennedale industrial businesses and development /redevelopment of industrial park(s); including but not limited to rail spurs, infrastructure, and office parks, etc; h. The purchase / leasing / sale or other means of transfer of real estate land and 1 properties for the accomplishment of the above designated projects; J i. The issuance, purchase, sale, or other means of transfer of Bonds and other debt instruments designed to fund the above objectives including, but not limited to implementing a Tax Increment Financing (TIF) District / Municipal Management District (MMD) and mixed -use project(s) development /redevelopment; j. The implementation of an E -Civic Grant Writing Program; N k. Contractual staff services (Orasi Development); and 1. All necessary services and related expenses for the above projects including but not limited to project master - planning; engineering; alternate energy sources; project advertising / marketing; related consultant and legal services; new construction / remodeling / maintenance of landscaping, roadways, City / KEDC owned or leased buildings, and their related improvements. The above listed projects will require expenditure of funds collected from the 4B sales tax. If the KEDC Board of Directors recommends approval of the eligible project, the City Council will act on the recommendation at their regularly scheduled meeting on the 10 day of September 2009. 3. Staff summary 4. Action on 2009 -2010 fiscal year budget and proposed KEDC projects. Recommendation: - w D Board . ` Directors forward recommendation to the City Council to approve 200 proposed fiscal year budget, and listed projects as presented. CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES FUND SUMMARY BY CATEGORY 15: EDC413 FUND REVENUES OVER EXPENDITURES $ (108,748) $ (532,866) $ (457,996) $ (457,996) $ 435,356 $ 480,295 $ (157,246) $ 300,750 ENDING FUND BALANCE $1,871,189 $1,338,323 $ 639,355 $ 639,355 $1,532,707 $1,577,645 $ 1,420,399 $ 300,750 ADJUSTMENTS (240,972) "EXEMPLIFYING EXCELLENCE" FY06 -07 FY07 -08 FY08 -09 FY0B -09 FY0S -09 FY08 -09 FY09 -10 CY -PY CATEGORY ACTUAL ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE BEGINNING FUND BALANCE $1,979,937 $1,871,189 $1,097,351 $1,097,351 $1,097,351 $1,097,351 $ 1,577,645 TAXES - - - 357,011 212,812 301,454 323,571 (33,440) INVESTMENT EARNINGS 323,109 331,269 357,011 50,000 7,467 10,000 20,000 (30,000) MISCELLANEOUS INCOME 93,095 48,455 50,000 - 481,136 481,136 - - OTHER INCOME 45,762 212,403 175,200 175,200 116,684 231,522 243,600 68,400 TOTAL REVENUES $ 461,966 $ 592,127 $ 582,211 $ 582,211 $ 818,099 $1,024,112 $ 587,171 $ 4,960 PERSONNEL 104,916 110,172 108,109 108,109 42,847 42,848 - (108,109) SUPPLIES 7,972 12,131 29,300 29,300 5,235 11,020 33,860 4,560 MAINTENANCE 124,590 14,525 22,680 22,680 16,725 25,000 23,790 11110 SUNDRY 90,485 671,771 572,801 572,801 202,211 317,223 417,537 (155,264) DEBT 162,606 215,777 212,317 212,317 115,726 147,726 164,230 (48,087) TRANSFERS 80,146 100,000 - - - - 10,000 10,000 CAPITAL - 617 95,000 95,000 - - 95,000 - TOTAL EXPENDITURES $ 570,714 $1,124,993 $1,040,207 $1,040,207 $ 382,743 $ 543,817 $ 744,417 $(295,790) REVENUES OVER EXPENDITURES $ (108,748) $ (532,866) $ (457,996) $ (457,996) $ 435,356 $ 480,295 $ (157,246) $ 300,750 ENDING FUND BALANCE $1,871,189 $1,338,323 $ 639,355 $ 639,355 $1,532,707 $1,577,645 $ 1,420,399 $ 300,750 ADJUSTMENTS (240,972) "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES REVENUE LINE ITEM SUMMARY 15: EDC46 FUND TOTAL REVENUES $461,966 $592,130 $582,211 $ 582,211 $ 818,099 $1,024,112 $ 587,171 $ 4,960 TOTAL REVENUES (EXCLUDING INTEREST /TRANSFERS) $ 660,034 $ 567,171 10% ADMIN CHARGE - GENERAL FUND 66,003 56,717 "EXEMPLIFYING EXCELLENCE" FY06 -07 FY07 -08 FY08 -09 FY08 -09 FY08 -09 FY08 -09 FY09 -10 CY - PY ACCOUNT ACCOUNT NAME ACTUAL ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 4001 -00 -00 PROPERTY TAX-CURRENT YEAR - - - - - - - _ 4081 -00 -00 SALES TAX 320,527 327,488 354,000 354,000 209,994 301,454 323,571 (30,429) 4082 -00 -00 MIXED BEVERAGE TAX 2,582 3,780 3,011 3,011 2,818 - - (3,011) TAXES $323,109 $331,269 $357,011 $ 357,011 $ 212,812 $ 301,454 $ 323,571 $ (33,440) 4401 -00 -00 INVESTMENT INCOME 93,095 48,455 50,000 50,000 7,467 10,000 20,000 (30,000) INVESTMENT EARNINGS $ 93,095 $ 48,455 $ 50,000 $ 50,000 $ 7,467 $ 10,000 $ 20,000 $ (30,000) 4409 -00 -00 MISCELLANEOUS INCOME - - - - 127,058 127,058 - - 4415 -00 -00 INSURANCE REIMBURSEMENT - - 354,078 354,078 MISCELLANEOUS INCOME $ $ - $ - $ $ 481,136 $ 481,136 $ $ 4805 -00 -00 RENTAL FEES - SHOPPING CENTER 45,762 212,406 175,200 175,200 116,684 231,522 243,600 68,400 OTHER INCOME $ 45,762 $212,406 $175,200 $ 175,200 $ 116,684 $ 231,522 $ 243,600 $ 68,400 TOTAL REVENUES $461,966 $592,130 $582,211 $ 582,211 $ 818,099 $1,024,112 $ 587,171 $ 4,960 TOTAL REVENUES (EXCLUDING INTEREST /TRANSFERS) $ 660,034 $ 567,171 10% ADMIN CHARGE - GENERAL FUND 66,003 56,717 "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES REVENUE LINE ITEM DETAIL 15: EDC4B FUND FY09 -10 4081 -00 -00 SALES TAX GENERALLY BUDGET BASED ON PRIOR 3 YEARS OF HISTORY, DUE TO 323,571 323,571 CURRENT ECONOMIC CONDITIONS PROJECT FLAT /NO INCREASE 4401.00 -00 INVESTMENT INCOME BASED ON CURRENT ECONOMIC CONDITIONS, ANTICIPATE 20,000 20,000 UPCOMING YEAR RATES /EARNINGS TO DOUBLE FROM FY08 -09 PROJECTED INCOME 4409 -00 -00 MISCELLANEOUS INCOME _ 4409 -00 -00 RENTAL FEES- SHOPPING CENTER ACTUAL RENTAL PAYMENTS FROM SHOPPING CENTER TENANTS PER 198,000 243,600 LEASE AGREEMENTS (APPROXIMATELY $16500 PER MONTH INCLUDING $500 FOR DOLLAR GENERAL RENEWAL INCREASE) PREPAID TENANT FEES RECEIVED BUT CORRESPONDING OFFSET 45,600 OCCURS WHEN BOOKED AGAINST CAM EXPENSES (APPROXIMATELY $3500 PER MONTH TOTAL REVENUES $ 587,171 "EXEMPLIFYING EXCELLENCE" i�J l7 • • • Sales Tax Collections ECONOMIC DEVELOPMENT CORPORATION 4B SALES TAX .$0.005 1999 -00 2000 -01 2001 -02 2002.03 2003 -04 2004.05 2005 -06 2006 -07 2007 -08 2008.09 2008 -09 2008 -09 GAIN/ GAIN/ YTD 2008.09 2009.10 2009 -10 2009 -10 ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL BUDGET ACTUAL YTD LOSS LOSS CUM ESTIMATE PROPOSED ESTIMATE YTD OCT 15,180 25,502 25,986 25,015 26,737 27,574 30,493 26,719 21,880 23,885 22,001 22,001 (1,884) 0.6% 0.6% 22,001 22,001 22,001 22,001 NOV 34,486 33,790 38,083 34,511 33,807 28,806 33,284 41,109 30,548 33,347 33,732 55,733 386 10.4% 6.3% 33,732 33,732 33,732 55,733 DEC 22,638 24,974 28,868 23,399 26,428 23,373 24,372 23,107 23,438 25,585 30,093 85,826 4,608 28.4% 13.1% 30,093 30,093 30,093 $6,820 JAN 24,639 20,365 23,884 23,198 21,991 22,728 23,443 26,331 22,677 24,754 19,433 105,259 (6,321) -14.3% 6.8% .19,433 19,433 19,433 105,259 FES 28,582 33,150 36,108 32,631 35,744 33,862 35,625 29,751 29,839 32,573 33,556 138,815 983 12,6% 8.1% 33,666 33,556 33,556 138,815 MAR 19,723 21,451 24,816 23,889 22,465 21,345 24,975 16,997 21,630 23,830 17,063 155,878 (6,767) -21.8% 3.8% 17,063 17,063 17,063 155,878 APR 21,295 22,533 23,144 20,435 23,465 21,936 24,036 25,672 24,231 26,451 22,636 178,514 (3,816) -6.6% 2.3% 22,636 22,636 22,636 178,514 MAY 28,942 42,438 30,905 35,360 36,121 36,355 35,851 32,194 31,278 34,144 30,806 209,321 (3,338) -1.6% 1.7% 30,806 30,806 30,806 209,321 JUN 21,070 27,082 22,890 22,968 33,889 24,011 27,616 26,993 24,985 27,275 21,608 230,929 (6,667) -13.6% 0.1% 21,608 21,608 21,608. 230,929 JUL 23,421 25,095 24,249 25,600 25,928 25,987 24,299 27,477 30,517 33,314 17,906 248,835 (16,407) -41.3% -4.7% 30,648 30,548 30,548 261,476 AUG 30,705 31,319 31,365 32,378 30,767 34,222 35,983 28,340 38,499 42,026 38,499 287,333 (3,628) 0.0% -4.1% 38,537 38,537 38,537 300,013 SEP 23,438 26,680 23,899 26,060 25,710 22,677 27,368 30,430 23,534 25,690 14,120 301,454 (11,670) 40.0% -6.7% 23,668 23,558 23,558 323,571 294,120 334,381 334,196 326,445 343,051 322,876 347,346 335,121 323,266 362,875 301,454 (61,421) 323,571 323,571 323,571 33.78% 13.69% -0.06% -2.62% 5.41% -5.88% 7.58% -3.52% -3.54% 9.16% -6.74% 0.10% 0.00% 0.00% CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES 15: EDC4B FUND 01: ADMINISTRATION EXPENDITURE LINE ITEM SUMMARY 5403 -01 -00 BUILDING MAINTENANCE 5440 -01 -00 OFFICE EQUIP /SOFTWARE MAINT MAINTENANCE 9 - - 21 1,000 1,000 - (1,000) $ $ 30 $ 1,000 $ 1,000 $ $ $ $ (1,000) 5501 -01 -00 ADVERTISING FY06 -07 FY07 -08 FY08 -09 FY08 -09 FY08 -09 FY08 -09 FY09 -10 CY -PY ACCOUNT ACCOUNT NAME ACTUAL ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 1,000 (400) 5512 -01 -00 CONTRACTUAL SERVICES 56,191 563,913 300,500 130,000 142,141 122,000 5101 -01 -00 SALARIES 72,740 76,120 77,690 77,690 32,502 32,502 2,800 (77,690) 5107 -01 -00 OVERTIME 4,663 5,738 3,000 3,000 - - 25,000 (3,000) 5111 -01 -00 AUTO ALLOWANCE 3,958 4,235 4,800 4,800 1,278 1,278 - (4,800) 5114 -01 -00 LONGEVITY - - - - 184 184 - - 5115 -01 -00 RETIREMENT 8,407 8,926 9,344 9,344 3,871 3,871 SPECIAL SERVICES (9,344) 5116 -01 -00 UNEMPLOYMENT INSURANCE 45 45 - - 108 108 5575 -01 -00 - 5117 -01 -00 FICA 6,224 6,629 6,540 6,540 2,598 2,598 (1,000) (6,540) 5118 -01 -00 MEDICAL INSURANCE 5,379 5,754 6,000 6,000 2,071 2,071 6,000 (6,000) 5120 -01 -00 LIFE INSURANCE 123 173 255 255 58 58 (255) 5121 -01 -00 DENTAL INSURANCE 238 285 360 360 142 142 300 (360) 5122 -01 -00 VISION INSURANCE 79 86 120 120 36 36 21,833 (120) 5190 -01 -00 VACATION /SICK /TERM /LEAVE ADJ 3,061 2,182 - - - - - - $ 245,723 PERSONNEL $104,916 $110,172 $108,109 $ 108,109 $ 42,847 $ 42,848 $ - $(108,109) 5220 -01 -00 UNIFORM 405 218 600 600 - - 300 (300) 5240 -01 -00 PRINTED SUPPLIES 3,242 4,555 14,000 14,000 1,673 4,500 25,000 11,000 5260 -01 -00 GENERAL OFFICE SUPPLIES 1,561 754 1,500 1,500 332 500 500 (1,000) 5261 -01 -00 POSTAGE 624 871 1,000 1,000 120 200 1,000 TRANSFER OUT - GENERAL FUND 5280 -01 -00 MINOR EQUIP /SMALLTOOLS<$5K 764 1,870 3,000 3,000 - - 1,000 (2,000) 5290 -01 -00 EXPENDABLE SUPPLIES 1,375 841 1,500 1,500 1,023 1,500 1,500 - 5795 -01 -00 SUPPLIES $ 7,972 $ 9,107 $ 21,600 $ 21,600 $ 3,149 $ 6,700 $ 29,300 $ 7,700 5403 -01 -00 BUILDING MAINTENANCE 5440 -01 -00 OFFICE EQUIP /SOFTWARE MAINT MAINTENANCE 9 - - 21 1,000 1,000 - (1,000) $ $ 30 $ 1,000 $ 1,000 $ $ $ $ (1,000) 5501 -01 -00 ADVERTISING 2,909 980 18,000 18,000 527 1,250 11,000 (7,000) 5510 -01 -00 ASSOC DUES /PUBLICATIONS 1,086 3,844 1,400 1,400 237 500 1,000 (400) 5512 -01 -00 CONTRACTUAL SERVICES 56,191 563,913 300,500 130,000 142,141 122,000 - (130,000) 5525 -01 -00 TRAINING /SEMINARS 495 34 2,800 2,800 430 750 2,500 (300) 5565 -01 -00 LEGAL SERVICES 11,311 38 25,000 25,000 15,899 30,000 40,000 15,000 5567 -01 -00 AUDIT SERVICES - - 3,000 3,000 3,000 3,000 4,000 1,000 5569 -01 -00 IT SUPPORT - 984 - - - - - - 5570 -01 -00 SPECIAL SERVICES 24,759 9,585 90,000 85,500 5,334 21,420 78,920 (6,580) 5575 -01 -00 EQUIPMENT RENTAL - 373 1,000 1,000 - - - (1,000) 5578 -01 -00 TRAVEL 2,191 2,457 7,450 7,450 254 500 6,000 (1,450) 5580 -01 -00 ENGINEERING SERVICES - - 25,000 - 5,045 - - - 5585 -01 -00 TELEPHONESERVICES 1,417 978 600 600 220 300 - (600) 5595 -01 -00 ADMIN CHARGE - GENERAL FUND 22,750 58,334 53,221 53,221 21,833 66,003 56,717 3,496 SUNDRY $123,108 $641,520 $527,971 $ 327,971 $194,920 $ 245,723 $ 200,137 $(127,834) 5610 -01 -00 VISUAL GRANT 4,790 7,807 100,000 100,000 - 36,417 50,000 (50,000) 5615 -01 -00 FUNCTIONAL GRANT 49,569 96,423 1 1 4,417 - - (1) 5625 -01 -00 ISSUANCE COST 32,338 - - - - - - - DEBT $ 86,696 $104,231 $100,001 $ 100,001 $ 4,417 $ 36,417 $ 50,000 $ (50,001) 5701 -01 -00 TRANSFER OUT - GENERAL FUND - - - - - - 10,000 10,000 5714 -01 -00 TRANSFER OUT - DEDICATION FUND 50,000 100,000 - - - 5795 -01 -00 TRANSFER OUT -EDC RESERVE FUND 112,606 - - - - TRANSFERS $162,606 $100,000 $ $ $ $ $ 10,000 $ 10,000 "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY 15: EDC411 FUND 01: ADMINISTRATION TOTAL EXPENDITURES $565,444 $965,677 $853,681 $ 653,681 $245,333 $ 331,688 $ 384,437 $(269,244) "EXEMPLIFYING EXCELLENCE" FY06 -07 FY07.08 FY08 -09 FY08 -09 FY08 -09 FY08 -09 FY09 -10 CY - PY ACCOUNT ACCOUNT NAME ACTUAL ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 5800 -01 -00 LAND 80,146 617 25,000 25,000 25,000 5813 -01 -00 KENNEDALE ENTRANCE SIGN - - 45,000 45,000 45,000 - 5820 -01 -00 BUILDING IMPROVEMENT - - 25,000 25,000 25,000 CAPITAL $ 80,146 $ 617 $ 95,000 $ 95,000 $ $ $ 95,000 $ TOTAL EXPENDITURES $565,444 $965,677 $853,681 $ 653,681 $245,333 $ 331,688 $ 384,437 $(269,244) "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM DETAIL 15: EDC4B FUND 01: ADMINISTRATION FY09 -10 5101 -01 -00 SALARIES EDC DIRECTOR POSITION OMITTED. 5107 -01 -00 OVERTIME EDC DIRECTOR POSITION OMITTED. 5115 -01 -00 RETIREMENT EDC DIRECTOR POSITION OMITTED. 5117 -01 -00 FICA EDC DIRECTOR POSITION OMITTED. 5118 -01 -00 MEDICAL INSURANCE EDC DIRECTOR POSITION OMITTED, 5120.01 -00 LIFE INSURANCE EDC DIRECTOR POSITION OMITTED, 5121 -01 -00 DENTAL INSURANCE EDC DIRECTOR POSITION OMITTED. 5122 -01 -00 VISION INSURANCE EDC DIRECTOR POSITION OMITTED. 5220 -01 -00 UNIFORM NEW SHIRTS FOR CONVENTIONS /MEETINGS 300 300 5240.01.00 PRINTED SUPPLIES PRINTED MAPS OF ENTIRE CITY 5,000 25,000 EDC COPIES /BROCHURES 3,000 CITY MARKETING FLYERS /AERIAL PHOTOS 5,000 FOXY SERVICES FOR QUARTERLY NEWSLETTER ($600 MONTH) AND 12,000 CHRISTMAS EDITION ($1500), SPLIT 66% EDC /34% CITY PLUS ADDTL 6200 FOR BROADENING OF NEWSLETTER 5260 -01 -00 GENERAL OFFICE SUPPLIES FILES /FOLDERS /PAPER /PENCILS (REDUCED DUE TO CONTRACTING 500 500 OUT EDC DIRECTOR POSITION 5261 -01 -00 POSTAGE FOR MAIL OUTS /MARKETING PACKAGES (REDUCED DUE TO 500 500 CONTRACTING OUT EDC DIRECTOR POSITION 5280.01 -00 MINOR EQUIP /SMALLTOOLS<$5K ADDITIONAL EQUIPMENT ASSOCIATED WITH 1,000 1,000 PRESENTATIONS /MARKETING (REDUCED DUE TO CONTRACTING OUT EDC DIRECTOR POSITION 5290 -01 -00 EXPENDABLE SUPPLIES MEETING SUPPLIES 11000 1,500 LOCAL SIGNS 500 5440 -01 -00 OFFICE EQUIP /SOFTWARE MAINT REDUCED DUE TO CONTRACTING OUT EDC DIRECTOR POSITION 5501 -01 -00 ADVERTISING PROMOTIONAL ADVERTISING 5,000 11,000 PARK EVENTS CONTRIBUTION IF NEEDED (REDUCED DUE TO INCREASE 5,000 IN PRINTED SUPPLIES LINE ITEM FOR NEWSLETTER, NOT CURRENTLY BUDGETED BUT IS BEING EXPENSED) MARKETING HANDOUTS 11000 5510 -01 -00 ASSOC DUES /PUBLICATIONS INTERNATIONAL COUNCIL OF SHOPPING CENTERS BOARD 500 1,000 MEMBERSHIP MISCELLANEOUS EDC RELATED MEMBERSHIPS BY STAFF /BOARD 250 MISCELLANEOUS EDC RELATED SUBSCRIPTIONS BY STAFF /BOARD 250 5512 -01 -00 CONTRACTUAL SERVICES NO LONGER USE THIS LINE. MERGED INTO SPECIAL SERVICES (5570). - 5525 -01 -00 TRAINING /SEMINARS EDC TRAINING THROUGH VARIOUS ASSOCIATIONS BY BOARD 1,000 2,500 ICSC CONFERENCE REGISTRATION BY BOARD 3 MEMBERS 1,500 5565.01 -00 LEGAL SERVICES BILLABLE HOURS FOR CITY ATTORNEY ON EDC RELATED PROJECTS 25,000 40,000 ($2100 PER MONTH) OTHER LEGAL SERVICES FOR TIFF /MMD /TOWN CENTER PROJECT 15,000 5567 -01 -00 AUDIT SERVICES PATILLO, BROWN & HILL SERVICES FOR INDEPENDENT ANNUAL AUDIT 4,000 4,000 5569 -01 -00 IT SUPPORT" 5570.01.00 SPECIAL SERVICES TOWN CENTER CONSULTING FIRM (APPROXIMATELY $3500 PER 45,000 78,920 MONTH) BRANDING /IMAGE SERVICES 18,000 E -CIVIS GRANT WRITING PROGRAM 8,000 PARKWAY BANNERS 7,500 DATAPROSE SERVICE FOR STUFFING OF NEWSLETTER ($35 MONTH), 420 SPLIT 67% EDC /34% CITY 5575 -01.00 EQUIPMENT RENTAL 5578.01 -00 TRAVEL MILEAGE /FOOD FOR LOCAL EDC RELATED BUSINESS MEETINGS BY 500 6,000 STAFF /BOARD ISCS CONFERENCE AIRFARE BY BOARD (3 MEMBERS) 2,000 ICSC CONFERENCE HOTEL ($2000) / FOOD ($800) 2,800 TRAVEL RELATED TO OTHER EDC TRAINING /SEMINARS BY 700 STAFF /BOARD 5585 -01 -00 TELEPHONE SERVICES NO LONGER UTILIZE SERVICE (REDUCED DUE TO CONTRACTING OUT - EDC DIRECTOR POSITION "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM DETAIL 15: EDC411 FUND 01: ADMINISTRATION FY09 -10 5595 -01 -00 ADMIN CHARGE - GENERAL FUND REIMBURSEMENT FOR ADMINISTRATIVE SERVICES PROVIDED BY GENERAL FUND RESOURCES (10% TOTAL REVENUES EXCLUDING INTEREST /TRANSFERS 56,717 56,717 5610 -01 -00 VISUAL GRANT GRANT ASSISTANCE PROVIDED TO LOCAL BUSINESSES 50,000 50,000 5701 -01 -00 TRANSFER OUT - GENERAL FUND BOARD APPROVAL TO ASSIST IN SECTION HOUSE RELOCATION 10,000 10,000 5800 -01 -00 LAND LAND /RIGHT -OF -WAY PURCHASE FOR THE BENEFIT OF EDC 25,000 25,000 5813 -01 -00 KENNEDALE ENTRANCE SIGN NEW ENTRANCEWAY SIGN /SITE IS TBD 45,000 45,000 5820 -01 -00 BUILDING IMPROVEMENT EDC -OWNED PROPERTY ENHANCEMENTS 25,000 25,000 TOTAL EXPENDITURES $ 383,937 "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY 15: EDC46 FUND 01: ADMINISTRATION 03: DEBT SERVICE "EXEMPLIFYING EXCELLENCE" FY06.07 FY07 -08 FY08 -09 FY08 -09 FYOB -09 FY08 -09 FY09 -10 CY -PY ACCOUNT ACCOUNT NAME ACTUAL ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 5620 -01 -03 ISSUANCE COSTS - - - - 5621 -01 -03 PAYING AGENT FEES - - 1,000 1,000 - - - (1,000) 5643 -01 -03 2007 $1.2M TAX BOND - INTEREST - 81,547 81,316 81,316 81,309 81,309 79,230 (2,086) 5644 -01 -03 2007 $1.2M TAX BOND - PRINCIPAL - 30,000 30,000 30,000 30,000 30,000 35,000 5,000 DEBT $ $111,547 $112,316 $ 112,316 $111,309 $ 111,309 $ 114,230 $ 1,914 TOTAL EXPENDITURES $ $111,547 $112,316 $ 112,316 $111,309 $ 111,309 $ 114,230 $ 1,914 "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM DETAIL 15: EDC413 FUND 01: ADMINISTRATION 03: DEBT SERVICE FY09 -10 5620.01 -03 ISSUANCE COSTS AGENT FEES TO HANDLE BOND AMORTIZATIONS 5621 -01 -03 PAYINGAGENTFEES FEES RELATED TO THE ACQUISITION OF NEW DEBT (BANK /BOND ATTORNEY /FINANCIAL ADVISOR). BANK IS PAYING AGENT IN PRIVATE PLACEMENT AND GENERALLY DOES NOT CHARGE. 5643 -01 -03 2007 $1.2M TAX BOND- INTEREST DUE 11/01 39,615 79,230 DUE 05/01 39,615 5644.01 -03 2007 $1,2M TAX BOND - PRINCIPAL DUE 05/01 35,000 35,000 TOTAL EXPENDITURES $ 114,230 "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY 15: EDC411 FUND 02: TOWN SHOPPING CENTER "EXEMPLIFYING EXCELLENCE" FY06 -07 FY07 -08 FY08 -09 FY08 -09 FY08 -09 FY08 -09 FY09 -10 CY -PY ACCOUNT ACCOUNT NAME ACTUAL ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 5280 -02 -00 MINOR EQUIP /SMALLTOOLS<$5K - 3,023 7,700 7,700 2,085 4,320 4,560 (3,140) SUPPLIES $ $ 3,023 $ 7,700 $ 7,700 $ 2,085 $ 4,320 $ 4,560 $ (3,140) 5403 -02 -00 BUILDING MAINTENANCE 1,481 14,496 21,680 21,680 16,725 25,000 23,790 2,110 MAINTENANCE $ 1,481 $ 14,496 $ 21,680 $ 21,680 $ 16,725 $ 25,000 $ 23,790 $ 2,110 5501 -02 -00 ADVERTISING - - 1,000 1,000 - - - (1,000) 5510 -02 -00 ASSOC DUES /PUBLICATIONS - - 1,230 1,230 - - (1,230) 5512 -02 -00 CONTRACTUAL SERVICES 3,180 9,730 14,800 14,800 4,731 9,300 (14,800) 5530 -02 -00 ELECTRIC SERVICES 609 4,813 6,100 6,100 2,585 7,200 7,800 1,700 5545 -02 -00 INSURANCE - PROPERTY - - 20,900 20,900 - - - (20,900) 5565 -02 -00 LEGAL SERVICES - - - - - - - 5570 -02 -00 SPECIAL SERVICES - 15,708 800 800 (25) - 9,600 8,800 SUNDRY $ 3,789 $ 30,251 $ 44,830 $ 44,830 $ 7,291 $ 16,500 $ 17,400 $ (27,430) TOTAL EXPENDITURES $ 5,270 $ 47,770 $ 74,210 $ 74,210 $ 26,101 $ 45,820 $ 45,750 $ (28,460) "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM DETAIL 15: EDC4B FUND 02: TOWN SHOPPING CENTER FY09.10 PR ED 5280 -02 -00 MINOR EQUIP /SMALL TOOLS <$5K ELECTRIC SUPPLIES ($360 PER MONTH) 4,320 4,560 MAINTENANCE SUPPLIES 20 PER MONTH 240 5403 -02 -00 BUILDING MAINTENANCE POWER WASHING -CAM 250 23,790 SWEEPING -CAM ($300 PER MONTH) 3,600 LANDSCAPE -CAM ($320 PER MONTH) 3,840 PORTER SERVICE -CAM ($100 PER MONTH) 1,200 FIRE SPRINKLER -CAM ($150 PER QUARTER) 600 ASPHALT /HARD SURFACE REPAIR -CAM ($4000/$5000) 91000 R &M -CAM 2,000 ROOFING REPAIR 3,000 VACANCY PREPARATION 300 5501 -02 -00 ADVERTISING 5510 -02 -00 ASSOC DUES /PUBLICATIONS 5512.02 -00 CONTRACTUAL SERVICES NO LONGER USE THIS LINE. MERGED INTO SPECIAL SERVICES (5570) - - 5530 -02 -00 ELECTRIC SERVICES ELECTRICITY -CAM 650 PER MONTH 7,800 7 1 800 5545 -02 -00 INSURANCE - PROPERTY RECORDED ON BALANCE SHEET SINCE COLLECTED AS ESCROW - - ACCOUNT 5570 -02 -00 SPECIAL SERVICES PROPERTY /ASSET MANAGEMENT 800 PER MONTH 9,600 9,600 TOTAL EXPENDITURES $ 45,750 "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY 15: EDC4B FUND 03: TOWN CENTER REDEVELOPMENT "EXEMPLIFYING EXCELLENCE" FY06 -07 FY07.08 FY08 -09 FY08 -09 FY08 -09 FY08 -09 FY09.10 CY - PY ACCOUNT ACCOUNT NAME ACTUAL ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 5570 -02 -00 SPECIAL SERVICES - - 100,000 10,000 100,000 5579 -02 -00 ARCHITECT /DESIGN SERVICES - - 75,000 - 20,000 75,000 5580 -02 -00 ENGINEERING SERVICES 25,000 25,000 25,000 - SUNDRY $ $ $ $ 200,000 $ $ 55,000 $ 200,000 $ TOTAL EXPENDITURES $ $ $ $ 200,000 $ $ 55,000 $ 200,000 $ "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM DETAIL 15: EDC41B FUND 03: TOWN CENTER REDEVELOPMENT FY09 -10 PROPOSED 5570 -03 -00 SPECIAL SERVICES MUNICIPAL MANAGEMENT DISTRICT (MMD) AND TAX INCREMENT 15,000 100,000 FINANCE (TIFF) FORMATION AND MAINTENANCE FEES LANDSCAPING 35,000 REPAINTING 50,000 5579 -03 -00 ARCHITECT /DESIGN SERVICES URBAN PLANNING, LAND SURVEYING, TOPOGRAPHY SERVICES 75,000 75,000 5580.03 -00 ENGINEERING SERVICES DEVELOPMENT /REDEVELOPMENT ASSOCIATED WITH MIXED USE SITES 25,000 25,000 TOTAL EXPENDITURES $ 200,000 "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES FUND SUMMARY BY CATEGORY 95: EDC4B RESERVE FUND REVENUES OVER EXPENDITURES $ 114,851 $ 3,631 $ - $ - $ 761 $ - $ 1,920 $ 1,920 ENDING FUND BALANCE $ 154,445 $118,482 $ 118,482 $ 118,482 $ 119,242 $ 118,482 $ 120,402 $ 1,920 ADJUSTMENTS (39,594 ) - - - - - - 0 "EXEMPLIFYING EXCELLENCE" FY06 -07 FY07 -08 FY08.09 FY08 -09 FY08.09 FY08 -09 FY09 -10 CY - PY CATEGORY ACTUAL ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE BEGINNING FUND BALANCE $ 39,594 $114,851 $ 118,482 $ 118,482 $ 118,482 $ 118,482 $ 118,482 INVESTMENT EARNINGS 2,245 3,631 - - 761 - 1,920 1,920 TRANSFERS 112,606 - - - - - - - TOTAL REVENUES $ 114,851 $ 3,631 $ - $ = $ 761 $ - $ 1,920 $ 1,920 TRANSFERS - - - - - - - - TOTAL EXPENDITURES $ - $ - $ REVENUES OVER EXPENDITURES $ 114,851 $ 3,631 $ - $ - $ 761 $ - $ 1,920 $ 1,920 ENDING FUND BALANCE $ 154,445 $118,482 $ 118,482 $ 118,482 $ 119,242 $ 118,482 $ 120,402 $ 1,920 ADJUSTMENTS (39,594 ) - - - - - - 0 "EXEMPLIFYING EXCELLENCE" CRY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES REVENUE/EXPENDITURE LINE REM SUMMARY 95: EDC4B RESERVE FUND 95: EDC413 RESERVE FUND FY06.07 FY07 -08 FY08.09 FY08.09 FY08.09 FY08 -09 FY09 -10 CY - PY ACCOUNT ACCOUNT NAME ACTUAL ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 5715 -00-00 TRANSFER OUT -EDC FUND - - - - - - - - TRANSFERS TOTAL EXPENDITURES $ _ $ . $ - $ . $ . $ . $ "EXEMPLIFYING EXCELLENCE" FY06 -07 FY07 -08 FY08 -09 FY08 -09 FY08.09 FY08.09 FY09 -10 CY'-PY ACCOUNT ACCOUNT NAME ACTUAL ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 4401 -00-00 INVESTMENT INCOME 2,245 3,631 - - 761 - 1,920 1,920 INVESTMENT EARNINGS $ 2,245 $ 3,631 $ _ $ - $ 761 $ - $ 1,920 $ 1,920 4915 -00-00 TRANSFER IN -EDC FUND - - - - - - - - 4920 -00-00 TRANSFER IN 112,606 - - - - - - - OTHER AGENCY $112,606 $ - $ - - $ - $ $ - $ TOTAL REVENUES $114,851 $ 3,631 $ - $ - $ 761 $ - $ 1,920 $ 1,920 95: EDC413 RESERVE FUND FY06.07 FY07 -08 FY08.09 FY08.09 FY08.09 FY08 -09 FY09 -10 CY - PY ACCOUNT ACCOUNT NAME ACTUAL ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 5715 -00-00 TRANSFER OUT -EDC FUND - - - - - - - - TRANSFERS TOTAL EXPENDITURES $ _ $ . $ - $ . $ . $ . $ "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES REVENUE /EXPENDITURE LINE REM DETAIL 95: EDC48 RESERVE FUND FY09 -10 4401 -00 -00 INVESTMENT INCOME EARNING BASED UPON AVERAGE BALANCE /INTEREST RATES 1,920 1,920 4915 -00.00 TRANSFER IN -EDCS PER BOND COVENANTS, WE ARE REQUIRED TO ESTABLISH THIS FUND - AND DEPOSIT INTO IT A SPECIFIC AMOUNT OF RESERVES. THESE RESERVES ARE TO BE USED SOLELY FOR THE PURPOSE OF RETIRING THE LAST OF ANY PARITY BONDS AS THEY BECOME DUE OR PAYING OFF ANY PRINCIPAL/INTEREST WHENDEBT SERVICE FUNDS ARE TOTAL REVENUES $ 1,920 5715.00.00 TRANSFER OUT -EDCB FUND TOTAL EXPENDITURES $ "EXEMPLIFYING EXCELLENCE" ) , Date: July 17, 2009 Subject: Discussion of strategies to work with the Chamber of Commerce. Originated by: Bob Hart, City Manager Summary: In any community, economic development activities are provided by several organizations: EDC, chamber of commerce, the city, industrial board, and /or a convention and visitors bureau. In Kennedale, it is a combination of the city, EDC, and chamber of commerce. The chamber is struggling financially and is currently without a staff member. In my opinion, it is important for Kennedale to retain a chamber as opposed to rejoining the South Tarrant Chamber. The EDC should not directly support the chamber financially; it may be possible for the EDC and chamber to jointly promote the community through marketing materials, brochures, or maps. I have placed this on the agenda to discuss the parameters under which we may explore options. FIOTOT ,# 7) 1 11:�iii To KEDC Board of Directors Date: July 17, 2009 Agenda Item No: III -G Subject: Review and consider action to cancel representation agreement with Mark A. Howe dba Howe/Wood & Company and /or its assigns and /or its affiliates (HW &C), and to provide a 30 -day written termination notice. Originated by: Bob Hart, City Manager Summary: The Board entered into a representation agreement with Howe/Wood & Company to buy and sell property on behalf of the EDC in 2006. The intended direction of the EDC is to develop the TownCenter through a development agreement with Cypress Properties. Consequently, there is no need to keep Mark Howe under contract. Staff requests authorization to notify Howe/Wood & Company of the EDC's intent to terminate the agreement. Recommendation: Recommend KEDC Board of Directors authorizes the Executive Director to provide a 30-day written notice to terminate Representation Agreement. It is hereby understood and agreed that HoweMood & Company and/or its assigns and/or its affiliates (HW&C) and Kennedale Economic Development Corporation (KE,DC) agree to the following terms. I HoweA/Vood & Company and/or its assigns and/or its affiliates (HW&C) will represent Kennedale Economic Development Corporation (KEDC) to acquire various properties at the direction of KEDC. 2. HW&C will charge a rate of three (3%) percent of the Purchase Price on each transaction. If the property is already listed and the Seller is paying the commission, there will be no additional charge to the City of Kennedale. If the property is not listed, or the Seller will not pay the commission, KEDC agrees to pay the three (3%) percent commission to HW&C. 10 a - I a - HOWEMOOD & COMPANY COPY and/or its assigns and/or its affiliates By: Mark A. Howe date' KEEP ALA NOMIO ELOPMENT CORPORATION I By: Mark A. Howe Enterprises, Inc. M Vaughn, 'President date To KEDC Board of Directors Date: July 17, 2009 Agenda Item No: III - H Subject: Review and consider action to cancel management contract with Quine & Association, Inc., and to provide 30 -day written termination notice. Originated by: Bob Hart, City Manager Summary: Two months ago, the Board authorized the staff to terminate the leasing provision with Quine and Associates. Staff has done so. Staff is now requesting the Board consider providing notice to terminate the management contract with Quine and Associates. The contract provides that such action can be done by either party with a 30 -day notice. The center is currently full. Management of the TownCenter can be done by James Cowey. Leasing of the site will be done by David Johnson. This action will save $9,600 annually. Recommendation: Recommend KEDC Board of Directors authorizes the Executive Director to provide a 30 -day written notice to terminate management agreement. i . •% NI (.�� W I V 1,, MANAGEMENT AND LEASM AGREEMENT Owner hereby exclusively appoints the Agent for the purpose of operating, managing, leasing and maintaining Kennedale Retail Center (hereinafter called "Property ") as described on Exhibit °A'° attached hereto and made a part of, located at 106 -109 & 223 W Kennedale Parkway, Kennedale, Tarrant County, Texas for a period of approximately six months beginning on_4yly 9, 2007 and ending on December 31 , 2007 , and continuing thereafter from month -to -month until terminated as hereinafter provided. Either party may terminate this Agreement during the term hereof, as specifically provided in Section 7 below. 2. MANAGEMENT SERVICES TO DE PERFORMED The Owner hereby authorizes Agent to perform, and Agent does hereby agree to perform, in the name of, for the account of, and at the expense of Owner, the following: A. General Responsibilities Agent shall be responsible for overall management and leasing of the Property as a retail /office center for the benefit of Owner, except for those responsibilities expressly excluded by the terms of this Agreement. Agent shall negotiate lease agreements in the name of Owner on standard forms approved by Owner with lease provisions as approved by Owner. It is understood that Agent-shall execute all leases on behalf of Owner, after prior approval of Owner; which approval shall be deemed granted if Owner has not rejected the lease applicant within 14 days after delivery.of applicant information to Owner; Owner shall not unreasonably_ withhold or delay Owner's approval. Agent shall set written standards for screening and qualifying prospective tenants, and shall screen and qualify all prospective tenants with credit reports. C. Statement and Invoices Agent shall determine and prepare invoices and /or statements, as applicable, for tenants of the property for rent, common area maintenance fees, taxes, insurance and other charges as shall be due from tenants in accordance with applicable lease provisions. Quire Management Contract Page 1 of 16 CADocuments and Settings \quineb\Local Settings \Temporary Internet Fi1es \0LK66 \Quire Management Contract 003 (2).doc Lori r= Agent shall collect all rents and other monies due, including percentage rents, from tenants of the Property as and when the same shall become due and payable and give receipts therefor, and in the collection of percentage rents: Agent shall keep records of gross sales ®f'tenants and compute percentage rent due, terminate tenancies, and sign and serve in the name of the Owner such notices as are deemed appropriate by the Agent; Agent shall, with the prior consent of Owner, institute and prosecute actions; evict tenants and recover possession of premises occupied by them, sue in the name of the Owner to recover rents and other sums due. When expedient, Agent may settle, compromise and release such actions or suits to reinstate such tenancies, when the total_ amount sought in such actions or suits is less than $2,000.00. 61- . , _ Agent shall deposit all receipts collected for Owner in the course of operating the Property, in an FDIC insured operating account for the benefit of Owner; such account shall hereinafter be called "Operating Account." Agent may endorse any and all checks drawn to the Owner (with the exception of checks for insurance, condemnation, or lawsuit settlements) as may be required for deposit into the Operating Account. Any funds remaining in the Operating Account at the end of each month during the term hereof, after the deduction of a $2,500.00 operating reserve and after the disbursements by the Agent of the expenses and other expenditures authorized hereunder, shall be remitted to Owner. The $2,500.00 operating reserve may be adjusted from time -to -time as mutually agreed by Owner and Agent. Agent will not be held liable in event of bankruptcy, failure or negligence of the depository. F. Accounts Payable Agent shall pay on behalf of Owner from the Operating Account, all obligations and expenses in operating, managing, leasing and maintaining the property which are lawfully incurred by or on behalf of the Property, including but not limited to management fees (as described in section 4.13), leasing fees (as described in section 4.C) and personal property taxes. In the event the funds in the Operating Account are not sufficient to pay such obligations and expenses, Owner shall at the request of Agent cause. to be deposited additional funds necessary to pay such obligations and expenses of the property. Agent shall pay all invoices in a timely manner that will take full advantage of any discounts offered to the extent that there are monies available in the operating account. Agent shall maintain full and detailed books and records at its principal office in Richardson, Texas related to its operation, management, and maintenance of the Property. Such books and records shall be kept in accordance with generally accepted accounting principles, as being maintained by Agent for other commercial properties managed by Agent. Owner shall at all reasonable times have access to such records for Quire Management Contract Page 2 of 16 CADocuments and Settings \quineb\Local Settings \Temporary Internet Files \OLK66 \Quire Management Contract 003 (2).doc Agent shall provide to Owner on or before the 20th day following the end of each calendar month, an Operating Report prepared by Agent setting forth all rents and other income collected and disbursements of all funds related to the operation, management, leasing and maintenance of the Property, for the immediately preceding fiscal month of operation. The fiscal year -end Operating Report for the project shall be due within sixty (60) days following the end of the last month of the project's fiscal year. The Operating Reports shall compare receipts and disbursements for such prior month and for the year -to -date. A written memorandum is to be provided with the Operating Report setting forth explanations for deviations from budget amounts. Agent shall also provide with such report a list of all tenants who are delinquent, a cash reconciliation report, and a leasing report. I. Budget Agent shall prepare and submit to Owner for approval at least thirty (30) days prior to the start of each year, an annual operating budget (the "Budget ") for the Property showing monthly and annual income, operating expense and capital expenditures. The fiscal year for the Property shall end December 31" of each calendar year, unless otherwise agreed in writing by both Agent and Owner. Subject to the terms of this Agreement, approval of the Budget by Owner will constitute Agent's authority to incur the operating expenses and capital expenditures as set forth in the Budget. J. Sales and Use Tax Return Agent shall prepare all sales and use tax returns, if any, necessary in the operation of the Property, and make all deposits and payments required with respect to such taxes. K. Audited Statement Agent shall, if requested by Owner and at the cost of the Owner, provide annual financial staterttents audited and certified by a certified public accounting firm satisfactory to Owner. Agent shall cause to be hired, supervised, discharged and paid, at reasonable wages, all employees and contractors reasonably necessary for the efficient operation, management, leasing and maintenance of the Property. Agent shall use reasonable care in selection and supervision of such employees and contractors. All persons employed shall be employees of Agent and not of Owner. Agent's management employees, such as Property Manager, Assistant Property Manager, accounting personnel, Building Quine Management Contract Page 3 of 16 C:\Documents and Settings \quineb\Local Settings \Temporary Internet Files \OLK66 \Quin Management Contract 003 (2).doc M. Utilities Agent shall negotiate and enter into contracts in the name of Owner for electricity, gas, fuel, water, telephone, window cleaning, refuse handling, janitorial service, extermination service and other services required in the operation and maintenance of the Property. All contracts shall be on an "arms length" market rate basis, and shall not be surcharged by Agent. The Owner shall assume the obligation of any contract so entered into and outstanding at the termination of this Agreement. All service and maintenance contracts initiated by Agent shall be negotiated to include thirty (30) days notice of termination clause without penalty. N. Maintenance Agent shall maintain or cause to be maintained the Property and common areas thereof, including sidewalks, signs, parking lots and landscaping; to make or cause to be made and supervise minor repairs (under $ 2,500.00) and minor alterations or renovations (under $ 2,500.00); to purchase supplies required for the operation and maintenance of the Property, and pay all bills therefor from Owner's funds, and to report to Owner conditions related to the Property requiring the attention of Owner. Agent shall purchase all supplies, materials and equipment as Agent may determine advisable. The Agent agrees to secure the approval of the Owner on all expenditures in excess of $ 2,500.00 for any one item, unless said expenditure was set forth in the Budget, or for an emergency repair necessary to the tenants per the lease, or for the protection of human life. 9. Promotion Agenf shall conduct or cause to be conducted a promotional program as may be appropriate and customary for the tenants within the Property with the consultation and prior approval of the Owner. Agent shall advertise the Property or portions thereof, as available for rent, and prepare other forms of advertising relating to said rental activity. Quine Management Contract Page 4 of 16 C:\Documents and Settings \quineb\Local SettingATemporary Internet Files \0LK66 \Quin Management Contract 003 (2).doc QAnsurance Agent shall, if requested by Owner, (1) determine all insurance coverage reasonably required or desirable for the Property, and on behalf of Owner negotiate and procure such insurance coverage; (2) upon receiving the prior written consent of Owner, institute and prosecute claims under all such coverage; (3) upon receiving the prior written consent of Owner, settle and compromise such claims; (4) procure periodic insurance appraisals as may be required; and (5) make reports, upon Owner's request, but not less than annually, to Owner of the kinds and amounts of insurance coverage in force, the expiration dates thereof, and the premium costs thereof. At all times during the term of this Agreement, the City of Kennedale, Texas ("City") shall keep in full force and effect one or more policies of commercial general liability and property damage insurance with respect to the Property, and the business conducted by Owner, or Agent on behalf of Owner, upon the Property. The limits of liability coverage shall not be less than $500,000.00 per person and $1,000,000.00 per accident and the property damage liability coverage shall not be less than $1,000,000-00. The commercial general liability policy shall name Owner as insured and Agent as additional insured, and shall contain a clause that the insurer will not cancel or change the insurance without first giving the Agent at least ten (10) days prior written notice. If Owner refuses or neglects to secure and maintain such insurance policies, Agent may, but shall not be required to do so, secure and maintain such insurance policies and the premiums for such insurance coverage shall be paid as an expense of the Owner, payable from the Operating Accounts. At all times during the term of this Agreement, the Agent shall keep in full force and effect one or more policies of commercial general liability insurance covering the business conducted Agent on behalf of Owner upon the Property. The limits of liability coverage shall not be less than $500,000.00 per person and $1,000,000.00 per accident and the property damage liability coverage shall not be less than $1,000,000.00. The commercial general liability policy shall name the Agent as insured and the Owner as additional insured, and shall contain a clause that the insurer will not cancel or change the insurance without first giving the Owner at least ten (10) days prior written notice. Agent shall cooperate with and provide reasonable access to the Property to agents of any and all insurance companies and/or insurance brokers or agencies who may, from time to time, be involved with the issuance of insurance policies or with inspections of the Pi 6 perty in connection with insurance policies then in force. Agent shall make, if requested by Owner and in the name Owner, pa yments of insurance premiums. Agent shall maintain a suitable business office with such management, secretarial and bookkeeping personnel as may be required to maintain such office and the books and records to adequately perform the terms of this Agreement and reflect the transactions Incidental to the operation and maintenance of the Property. Quine Management Contract Page 5 of 16 C:\Documents and Settings\quineb\Local Settings\Temporary Internet Files\OLK66\Quine Management Contract 003 (2).doc Agent shall use due diligence in the exercise of the power and duties conferred and assumed under this Agreement and in the operation, management and maintenance of the Property for, the period and upon the terms herein provided. . . Agent shall operate the Property and make expenditures pursuant to this Agreement in a manner in accordance with the budgets submitted to and approved by Owner. Except for emergency expenditures, any expenditures or commitments which are not in accordance with the approved budgets must have approval from Owner. Agent shall, on behalf of Owner, ascertain the requirements of all governmental taxing authorities lawfully entitled to levy or assess any tax or any other government charge or imposition upon the Property or use thereof. Agent hereby acknowledges and agrees that Owner, as a 4B Economic Development Corporation organized under article 5190.6 of the Act, is exempt from paying property taxes and therefore, any levy, assessment, tax or other governmental charge or imposition upon the Property, if any, shall be passed through to the tenants of the Property. Agent shall promptly forward to Owner any and all tax assessments and tax bills related to the Property. Agent shall notify Owner, if possible, at least ten (10) days prior to such taxes becoming delinquent. Owner shall be liable for such taxes only if: (1) such taxes or any portion thereof cannot be passed through to the tenants; and (2) it determines, after consultation with its legal counsel, that it is liable for such taxes as a matter of law. V. Compliance With Laws Agent shall use its diligent efforts to cause to be done in or about the Property all acts and things which are necessary in order to comply with federal, state or municipal order, rules, regulations, ordinances, or statutes affecting the Property and orders of any board of fire underwriters or other similar body, subject to the limitations contained hereinabove regarding maximum amounts or contracts requiring Owner's prior written approval. Agent -shall promptly notify Owner of all notices it receives regarding governmental requirements affecting the Property. Agent shall obtain and maintain current all licenses and /or permits as shall be required_ in the operation and maintenance of the Property. . Agent shall with prior consultation and approval of Owner engage attorneys, accountants, ad valorem tax consultants, data processing personnel, architects, engineers or other persons furnishing services reasonably required in connection with the discharge of Agent's duties hereunder, on behalf of the Owner, and pay the reasonable charges for all such services from Owner's funds. Quine Management Contract Page 6 of 16 C:\Documents and Settings \quineb\Local Settings \Temporary Internet Files \OLK66 \Quire Management Contract 003 (2).doc X. SerrWce Notice Agent shall (1) promptly notify Owner of any notice of violation of any governmental requirement relating to the Property or of any defect in the Property; (2) promptly notify Owner of any fire or other damage to the Property and to complete customary loss reports in connection with such damage to the Property; (3) promptly file such reports with the insurers and Owner; and (4) promptly notify Owner's general liability insurance carrier and Owner of any personal injury or property damage occurring to or claimed by any tenant or third party on or with respect to the Property. Y. Agent's Signaae Agent shall be permitted to install, at its sole cost and expense, sign(s) identifying Agent's management and /or leasing of the Property. Location of said sign shall be at a place mutually acceptable to Owner and Agent. Z. Tenant Improvements Agent shall manage and supervise construction of tenant improvements. WEN Agent shall not be required under the terms and provision of this Agreement to render any of the following services: A. The planning, developing, financing or supervision of construction for any additional building or land which may hereafter be added to or become a part of the Property from time to time; however, such service may be performed by Agent subject to written agreement between Owner and Agent for such additional services at the rate of two percent ( 2 %) of expenditures. S. Services requiring a substantial expenditure of time in connection with litigation, arbitration or mediation other than suits for the collection of rent or the enforcement of leases, whether such litigation, arbitration or mediation shall be instituted by Owner, by tenant or others. Quire Management Contract Page 7 of 16 CADocuments and Settings \quineb\Local Settings \Temporary Internet Files \OLK66 \Quire Management Contract 003 (2).doc RIP A. Expenses and Expenditures Agent will be reimbursed by Owner from the Operating Account each month for the following listed expenses and expenditures incurred or accrued by Agent in the operation of the Proper'Cy� 1. All direct labor and contract costs, and all materials, supplies, equipment, tools, components, and related systems and parts with respect to the maintenance, repair, improvement and operation of the Property. 2. Operating costs and expenses of supplies, materials, equipment, project stationery, forms, books and records, all with respect to the Property or other locations'approved by Owner, and audited financial statements and certifications thereof as may be required by this Agreement. 3. All necessary equipment, tools and supplies, whether purchased, leased or otherwise acquired for the performance by Agent of the duties required hereunder for the operation of the Property pursuant to this Agreement. 4. All other ordinary and necessary expenses or expenditures paid or accrued in the operation of the Property pursuant to the Budget. 5. All monies which Agent may elect to advance for the Owner for expenses which Owner is required to pay under this Agreement; however, Agent will not be obligated to make such advancements. B. Management Fee For the services rendered by Agent pursuant to this Agreement, and in addition to other fees and reimbursements to Agent as set forth in this Agreement, Owner shall pay Agent monthly, in arrears, a management fee in an amount equal to 4% of gross revenues received each month from operation of the Property, but in no event shall such monthly fee be less than $500.00. All such fees are due and payable by the last day of each month shall have the authority to make such payments on Owner's behalf from the Operating Account, so long as such payments are made in accordance with the terms and conditions of this Agreement.- Gross revenues shall include all monies collected in the course of business specifically excluding security deposits, collection from lawsuits, insurance, and condemnation proceedings, capital contributions by Owner and tax refunds. Quine Management Contract Page S of 16 C:\Documents and Settings \quineb\Local Settings \Temporary Internet Files \OLK66 \Quin Management Contract 003 (2).doc C. Leasing Commissions Owner grants to Agent the exclusive right to lease the Property and Owner shall compensate Agent for its services as Leasing Agent in accordance with the following: 1. Comi °tislons on Initial Leases - Commission equal to Four percent (4 %) of the Aggregate Total Base Rental provided in the Lease Agreement for the initial term shall be paid to Agent where Agent was the "procuring cause" of the initial lease. 2. Commissions on Lease Renewals - Commission equal to Two percent (2 %) of the Aggregate Total Base Rental provided in the Agreement for the renewal term shall be paid to Agent where an existing tenant renews a lease for its existing premises, including the exercise of an option to renew. 3. Commissions on Tenant Expansion - For the purpose of determining compensation under this Agreement, tenant expansions shall be considered as an initial lease hereunder; however, such commission shall only be applicable for the net increase in tenant's square footage. Furthermore, the same method of determining Agent's commission shall be used if an existing tenant relocates within the Property for the purpose of expanding. 4. Commissions on Month -To -Month Lease - A commission equal to one -half ( %z) of the first month's rental, when a tenant initially occupies the premises on a "month -to- month" basis; however, such commission shall not be less than $250.00. 5. Commission When Other Brokers Are Procurina Cause - A commission equal to Six percent (6 %) of the Aggregate Total Base Rental provided in the Lease Agreement for the initial lease term shall be paid to Agent when an outsider broker (i.e. not an employee of Agent) is the "procuring cause" of the lease as defined by the laws within the state the Property is located. Agent shall indemnify Owner against any commission liability to such outside broker. A commission equal to Four percent (4 %) of the Aggregate Total Base Rental provided in the Lease Agreement for the renewal term shall be paid to Agent when an outside broker has been appointed as the tenant's exclusive agent for the renewal and Agent shall indemnify Owner from any commission claims from such outside broker with respect to the renewal. 6. Definition of Aggregate Total Base Rdntal - Aggregate Total Base Rental shall mean all guaranteed minimum rent provided for in the primary term of the lease. Percentage rental and additional rent is excluded from this definition. 7. Leasing Commissions - Leasing commissions due Agent will be earned and paid one -half upon signing of the lease and one -half upon tenant's opening for business. All commissions and other sums are payable to Agent in Richardson, Dallas County, Texas. Quine Management Contract Page 9 of 16 CADocuments and Settings \quineb\Local Settings\Temporary Internet Files \0LK66 \Quire Management Contract 003 (2).doc 8. Leasing Expenses - In addition to the commissions provided herein, Owner shall pay to or reimburse Agent for the following expenses: a. Advertising and promotion expenses paid by Agent as set forth in t approved Budget, or as otherwise approved by Owner. I b. Space planning expenses paid by Agent as set forth in the approved Budget, or as otherwise approved by Owner. C. Special events and promotions, subject to prior approval by Owner. d. Any other special marketing projects which are approved by Owner. e. Any legal expenses incurred in connection with lease preparation and negotiations which are pre - approved by Owner. f. Travel expenses (excluding entertainment expenses) which are pre - approved by Owner. 5. AUTHORITY Agent is vested with such general authority and powers as may be necessary or advisable to carry out the intent of this Agreement. Agent agrees to protect, defend, indemnify and hold the Owner and the Property harmless from and against any and all loss, cost, damage, liability and expense (including court costs and reasonable attorneys' fees) arising out of (i) obligations or liabilities of Owner incurred by Agent or any of its employees or agent, other than those expressly permitted hereby to be so incurred by Agent, (ii) a breach of this Agreement by Agent, (iii) the failure of Agent or any of its agents, officers, or employees to perform Agent's duties and obligations under this Agreement in accordance with the terms hereof or (iv) any negligence, willful misconduct or fraud of Agent or any of its agents, officers or employees. A. - If a claim is made against Agent by a third party; and such claim arises as a result of Owner's acts or omissions in the performance of this Agreement or Agent's acts or omissions in its performance on behalf of Owner of this Agreement, as expressly permitted hereby (the "Claim "), then Owner and City agree to request that pursuant to the commercial general liability insurance or property insurance policies to be maintained under Section 2.Q, whichever is applicable, that their respective insurance carriers protect, defend, indemnify, and hold Agent harmless from and against any and all loss, cost, damage, liability and expense (including court costs and reasonable attorney's fees) arising out of such Claim. Quine Management Contract Page 10 of 16 C:\Documents and Settings \quineb\Local Settingffemporary Internet Files \OLK66 \Quin Management Contract 003 (2).doc C. If the Claim is not covered by any of the City, Owner, or Agent's insurance policies, then Owner agrees to reimburse Agent for Agent's reasonable legal expenses incurred (up to the sum of $25,000.00) defending claims from third parties that may arise as a result of Owner's acts or omissions in its performance of this Agreement or Agent's performance on behalf of Owner of this Agreement, as expressly permitted hereby. D. It is not the intent of Section 7 to limit or waive any of Agent's duties and /or responsibilities as outlined further in this document. A. 'Termination By Either Partv 1. Either party shall have the right to terminate this Agreement upon thirty (30) days' prior written notice. 2. Either party shall have the right to terminate this Agreement upon ten (10) days' prior written notice in the event of a sale or exchange of all or any portion of the Property, or substantial destruction of the Property. 3. If either party hereto shall file a petition in bankruptcy, or be granted relief under the Bankruptcy Code of the United States of America, or make an assignment for the benefit of creditors or like arrangement or composition or file a petition in the federal court for reorganization or otherwise seek relief under any bankruptcy or insolvency law, federal or state, or be placed in the hands of a receiver or trustee, then this Agreement is terminated. 4. If either party hereto fails to comply with any rule, order, determination, ordinance, .---or law of any federal, state, or municipal authority, the other party may terminate this Agreement upon ten (10) days prior written notice. Owner shall have the right to terminate this Agreement immediately upon giving written notice to Agent in the event of gross negligence, willful misconduct or fraud by Agent in the performance of any provisions of this Agreement. In such event, all obligations of Owner to Agent shall immediately terminate, and Agent shall be deemed to have Quine Management Contract Page 11 of 16 C:\Documents and Settings \quineb\Local Settings \Temporary Internet Files \OLK66 \Quin Management Contract 003 (2).doc forfeited any outstanding fees and commissions earned by Agent, including reimbursements of all amounts provided herein, prior to and including the effective date of termination. 3v Agent shall have the right to terminate this Agreement in the event of Owner's breach of its obligations under this Agreement which shall not have been cured within 7 days after Owner's receipt of Agent's written notice thereof. Agent shall cooperate with Owner in notifying all tenants of the Property of the expiration and termination of this Agreement by written notice sent by certified mail, return receipt requested, and Agent shall cooperate with Owner to accomplish an orderly transfer of the operation and management of the Property to a party designed by Owner. Agent shall, at its sole cost and expense, promptly remove from the Property all signs indicating that Agent is the managing agent. Agent shall provide a final accounting and shall transfer all books, records, leases, keys and other materials belonging to Owner, and shall, within thirty (30) days after termination, deliver a list of prospective tenants whom Agent (or others working by or through Agent) has introduced to the Property (the "Qualified Prospects "). If the Qualified Prospects have demonstrated an interest to lease any portion of the Property, then Agent shall be entitled to the scheduled commission for any lease executed by Owner and any Qualified Prospect within one hundred eighty (130) days after termination of this Agreement, payable as provided above, unless this Agreement is terminated by Owner in accordance with section 7.13 above, in which case no commission shall be due to Agent. 9. CONFIDENTIALITY Agent shall hold in strict confidence concerning the Property furnished to or gathered from Owner's books or record s statement on behalf of Owner, to the approval in each and every instance. all information related to Owner's business obtained by Agent in the form of information . In no event shall Agent issue or make any press or other media, without Owner's prior 10. ASSIGNMENT Agent may not assign its interest in this agreement without the prior written consent of the Owner, except as may be otherwise specifically provided herein. Agent is not and never shall be liable to any creditor of the Owner. Quine Management Contract Page 12 of 16 CADocuments and Settings \quineb\Local SettingATemporary Internet Files \OLK66 \Quire Management Contract 003 (2).doc Nothing contained in this Agreement or in the relationship of Owner and Agent shall be deemed to constitute or be construed to be or create a partnership or joint venture between Owner and Agent. in Failure by Owner or Agent at any time to exercise any right or remedy herein granted or established by law shall not be deemed to operate as a waiver of its right to exercise such right or remedy at any other future time. j i n ; Owner and Agent shall comply with all statutes, ordinances, laws, rules and orders of any federal, state, or local government or department or office thereof having jurisdiction in the Property respecting the use, operation, maintenance and construction thereof. 15. GOVERNING LAW If any one or more of the covenants, agreements or provisions of this Agreement shall be determined by a court of competent jurisdiction to be invalid, the invalidity of such covenants, agreements and provisions shall in no way affect the validity or effectiveness of the remainder of this Agreement and this Agreement shall continue in force to the fullest extent permitted by law. This Agreement shall be governed by the laws of Texas and all parties hereto submit to mandatory jurisdiction in Tarrant County, Texas. ils Any notice which Agent may desire or be required to give to Owner shall be deemed sufficiently given or rendered if, in writing, delivered to Owner by courier, electronic mail or facsimile, with evidence of delivery, or by certified or registered mail, return receipt requested and addressed to Owner as follows: OWNER: KENNEDALE ECONOMIC DEVELOPMENT CORP. Attn: Director 405 Municipal Drive Kennedale, TX 76060 817 -572 -1171 r . E -Mail: msoab cityofkennedale.com r ; 817 -478 =7169 . Quine Management Contract Page 13 of 16 C:\Documents and Settings \quineb \Local Settings \Temporary Internet Files \OLK66 \Quin Management Contract 003 (2).doc i ! Any notice which Owner may desire or be required to give to Agent shall be deemed sufficiently given or render if, in writing, delivered to Agent by courier, electronic mail or facsimile, with evidence of delivery, or by certified or registered mail, return receipt requested and addressed to Agent as follows: AGENT: QUINE & ASSOCIATES, INC. Attn: Brad Quine 301 Sherman, Suite 100 Richardson, Texas 75081 FAX: 972.783.8901 E ®Mail: bquine @quine.com Tel: 972.669.8440 In the event of any dispute between the parties hereto arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover from the other its reasonable attorneys' fees and costs incurred in connection therewith. 18. MULTIPLE COUNTERPARTS This Agreement may be executed in multiple counterparts, each of which shall be regarded for all purposes as an original constituting one and the same instrument. 19. ENTIRE AGREEMENT This Agreement and the exhibits attached hereto constitute the entire agreement of the parties hereto regarding the subject matter hereof, and may not be amended or modified except by written instrument signed by the parties hereto. 20. BINDING EFFECT This Agreement shall be binding upon the parties hereto, their legal representatives, successors and assigns, and may not be changed except by agreement in writing. 21. STATUTORY NOTICE Owner acknowledges that Broker has advised it that before entering into any transaction, the Owner should have an abstract covering the Property examined by an attorney selected by Owner, or Owner should be furnished with or obtain a policy of title insurance. �_ - AO. An Intermediary Disclosure Addendum is attached hereto and incorporated herein and Owner herewith authorizes Agent to act as an intermediary. Quine Management Contract Page 14 of 16 C:\Documents and Settings \quineb \Local SettingATemporary Internet Files \OLK66 \Quine Management Contract 003 (2).doc IN WITNESS WHEREOF, the parties have caused this Agreement to be executed the day and year first above written by their officers thereunto duly authorized. a N, ECONOMIC DEVELOPMENT Quine Management Contract Page 15 of 16 C:\Documents and Settings\quineb\Local Settings\Temporary Internet Files\OLK66\Quine Management Contract 003 (2).doc Title: President A real estate broker who acts as an inter between parties in a transaction- landlord will accept a price less than the a rice unless otherwise instructed in a s% parate writing by or landlo 2. may not disclose to the seller or landlord that the buyer or tenant will vav a price treater than the price submitted in a written offer to the seller or landlord unless otherwise instructed in a separate writing by the buver or tenant; 3. may not disclose any confidential information or any information a party specifically instructs the real estate broker in writing not to disclose unless otherwise instructed in a separate writing by the respective party or required to disclose such information by the Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property, 4. shall treat all parties to the transaction honestly and 5. shall comply with the Texas Real Estate License Act Quine Management Contract Page 16 of 16 CADocuments and Settings \quineb\Local Settings \Temporary Internet Files \OLK66 \Quire Management Contract 003 (2).doc EXMIT A HENNEDALE — G CENTER KEK EDALE, TEXAS LEGAL (DESCRIPTION City of Kennedale, Tarrant County, Texas, e PJ A) e®A L f R e - Or P' Af'r o � 4A Y� m� , October 5, 2009 Quine & Associates, Inc. 301 S. Sherman St., Suite 100 Richardson, Texas 76081 ( /l - "U C C.: (3-t Dear Mr. Quine: w - - ` Please accept this letter a notification to terminate the Kennedale TownCenter management contract between the Kennedale Economic Development Corporation and Quine & Associates effective November 30, 2009. We appreciate the working relationship with you over the past three years. Please let me know the best way to obtain our records. I thank you in advance for your assistance. Sincerely, r Bob Hart _ JC) VC_ l Executive Director 71 __ To KEDC Board of Directors Date: July 17, 2009 Agenda Item No: I. Subject: Review and consider action to change date and time of future meeting, if needed. Originated by: Kathy Turner, Secretary Summary: Discussion will take place to see if there is a need to s u e an® p�aing workshops and /or special meetings, as well as discuss th August 18, 2009 reg 'lar meeting date to see if there is a need to reschedule. PWVA Recommendation: RZIMIrm To KEDC Board of Directors Date: July 17, 2009 Agenda Item No: IV. Subject: Staff Announcements /Reports Originated by: Kathy Turner, Secretary EDC Summary: Board of Directors will receive announcements /reports from the following: A. KEDC Executive Director 1. Update on Kennedale TownCenter activities, including P &Z action and the 2009 NCTCOG Sustainability Grant Program; 2. CGI Communications video project; 3. MMD Bill start-up; and 4. Orasi Development report. Recommendation: n .. A - To KEDC Board of Directors Date: July 17, 2009 Subject: President Announcements /Reports Originated by: Kathy Turner, KEDC Secretary Summary: President Announcements /Reports 1. Report agenda items to be posted for future meetings. 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