2016_10.17 CC MinutesWORK SESSION - 5:30 PM
REGULAR SESSION - 7:00 PM
I. CALL TO ORDER
Mayor Johnson called the meeting to order at 5:36 p.m.
II. WORK SESSION
*NOTE. Pursuant to Section 551.071. Texas Government Code. the Citv Council reserves
the right to adjourn into Executive Session at any time during the work session or the
regular session to discuss posted executive session items or to seek legal advice from the
City Attorney on any item posted on the agenda.
A. Discussion of recommendations from the Water Rate Committee
• Budget
• Utility Board
• Financial Policies
• Senior Restriction
• Donations
• Income based Discounts
• Rate Review
• Utility Fund Loans
• Issuance of Debt
City Manager Bob Hart provided an overview of the items recommended by the Water Rate
Committee. The items of discussion includes: budget, establishing a Utility Board, creating a
committee in regard to financial policies, establishing a donation program, consider income
based discounts, annual rate review, utility fund loans, and the issuance of debt.
Budget:
Bob Hart stated that the adopted water rates decreased revenues by $273,000, and suggested
the following ways to make up that deceit.
1.) Minimize the water contract with Fort Worth to the minimum requirement to keep the system
going, utilizing the take -or -pay provision of the contract. This would cut $100,000; however,
the amount of well water would go up, and people may complain about the mineral content
or sulfur smell. It was noted that when there are drought conditions, we will have to buy more
water from Fort Worth; and when there is a wet year, the shortfall could increase.
2.) Implement a credit card consumer usage fee. The city currently absorbs credit card fees. The
405 Municipal Drive, I<enneclale, TX 76060 1 Telephone: 817- 985 -2100 1 Fax: 817 -478 -7169
implementation of this fee would provide the city with a $54,000 savings. It was noted that
passing the charge for convenience fees back to the user is a common practice in most area
cities; however, there may be some criticism regarding the charge.
3.) The city currently contracts with Valley Collections for the collection of delinquent accounts.
They charge the city $250 /month ($3000 /year) for their services. Staff proposes that we
discontinue services with Valley Collections and move to Beck & Allen, a municipal court
collections law firm. Their fees are based on collection and are passed along to the
consumer. This would be a $3000 savings for the city.
4.) Have a connection point with Arlington. We are planning to make an agreement for a water
purchase plan with Arlington. But, based on projections, Fort Worth will meet our water
needs for the next 10 -12 years. However, it is currently the opportune time to get a contract
in place with Arlington, because the current budget includes funds for the engineering of the
connection point. Staff would like to see the contract completed this year, and to push
the engineering of the connection point into a future budget year. This would save the
city $50,000 this year. It was noted that the city will not need an additional water supply
source other than Fort Worth until our population reaches 14,000.
5.) Sewer Transportation Treatment Charges. The City of Arlington reduced their fees by 5 cents
per thousand; that is a savings of $8400. It was noted that with the velocity meters and some
I &I work, we think the savings off the current bill would be around $66,000.
Bob concluded that this is how he proposes the city cover the $273,000 deceit from the water
rate adjustment. Adding that this would protect the Crestdale sanitary sewer project that is
scheduled for improvements this year.
Utility Board:
Bob stated that staff recommends the creation of a seven member Utility and Infrastructure
Advisory Board to deal with water, wastewater, stormwater drainage, streets, solid waste, etc.
He added that they all share staff and overhead, so when we talk about a systems approach, if
you optimize a subsystem, you optimize the system as a whole. That's why we want to
include all revenue -based infrastructures.
Financial Policies:
Bob stated that staff is not recommending the creation of a Finance Committee. He found a few
cities with financial boards which basically select the auditor and review the audit. The
Kennedale City Charter states that the entire Council will select the auditor. Another point was
that the committee would give input in the budget preparations; however, that runs afoul with the
City Charter as well and is not at all consistent with the governance policies. Mayor Johnson
stated that he was fine with not having a Finance Committee, because that is the Council's
responsibility.
Income Based Discounts:
Bob stated that if you assume 10% of residents meet the threshold to receive the income based
discount, the loss of revenue would be $87,000. He recommends against a discount for poverty
level across the general population because it would lead to cost shifting. He stated that it would
not affect the senior discount program currently in effect.
Rate Review:
Bob stated that reviewing the water /sewer rates annually; instead of every three years is a good
idea. Additionally, it was recommended that we reduce the franchise fees to 4% and have water
and wastewater pay for street repairs. Bob stated that the rates were 11 % a year ago, and at the
time of the rate review our recommendation was 9 %. We did, however, implement the
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recommendation of the newly adopted rates. He added that the Utility and Infrastructure
Board will help to consider things like this in the future.
Donation Program:
Bob stated that this program change is currently being implemented, and will be available
when the new billing goes into effect. He added that we still need to address the issue of
disbursement of funds. Bob suggested that we contact a Minister's Alliance to look at the
program, noting that they already handle issues like this and have processes in place. Another
option would be to bring in an agency to handle the program. He noted that presently when
someone comes in and asks for assistance, staff sits down and makes the decisions.
The committee's preference was to have someone outside the city handle the decision process.
Utility Fund Loans:
Bob stated that this item was referenced due to the loan of utility funds to the Tax Increment
Reinvestment Zone (TIRZ) for the water and sewer improvements. The loans were for water and
sewer lines at Bloxom Park and the sewer line extension along New Hope Road. In both cases
the funds were used for water and wastewater improvements. Bob added that the TIRZ will
repay this loan over time with interest. This option was used to avoid incurring debt to the city for
the improvements. The Mayor stated that the issue of loaning the money for those projects
caused our reserves to be low when we had the big emergency event; he noted that we need to
be more judicious. Bob added that the TIRZ projects are generating funds back into the system.
Issuance of Debt:
Staff will look at future capital projects, noting that timing and the market place is important when
considering consolidation for better bids.
B. Discussion of items on regular agenda
No items were discussed at this time.
III. REGULAR SESSION
Mayor Johnson opened the regular session at 7:00 p.m.
IV. ROLL CALL
Present: Frank Fernandez, Brian Johnson , Kelly Turner, Liz Carrington, Charles Overstreet,
Michael Walker
Absent: None
V. INVOCATION
Pastor Greg Adams from Covenant Life Baptist Church provided the invocation.
VI. UNITED STATES PLEDGE AND TEXAS PLEDGE
"Honor the Texas Flag; I Pledge Allegiance to Thee, Texas, One State under God; One and
Indivisible."
VI1. VISITOR/CITIZENS FORUM
At this time, any person with business before the City Council not scheduled on the Agenda may
speak to the Council, provided that an official `Speaker's Request Form' has been completed and
submitted to the City Secretary prior to the start of the meeting. All comments must be directed
towards the Mayor and Council, rather than individual council members or staff. All speakers must
limit their comments to the subject matter as listed on the `Speaker's Request Form.' No formal
action or discussion can be taken on these items.
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Cindi McMillan, 3830 New Hope Road, spoke regarding the current status of Texas Raceway. She
stated that they have always worked with Kennedale leaders since purchasing the track in 2002. In
2013, they were advised of the City's plan to close all the race tracks by the end of this month. In
good faith they entered into a developer agreement with the city. They have since worked with
several developers who have expressed interest in their property; but all want to know when the
tracks will be closed.
She stated that the Board of Adjustment (BOA) was authorized to proceed with amortization; and
the budget shows that Kennedale Speedway Park will close in mid -2017. But she still cannot
provide potential buyers with a solid date as to when the city will be closing the tracks. Our
consultants say it is imperative that we provide a letter stating the final closing date. If the city
cannot provide us a letter, we ask that we are allowed to continue operating. Additionally, she
requested a one -on -one meeting with city officials.
Rockie Gilley, 220 South Dick Price Road, requested Council to reflect on their actions at the
September 19th and 20th meeting. He stated that Council repealed Ordinance 589 and passed
Ordinance 611. He added that he believes Council honored the letter of the petition, but maybe not
the spirit of it. He stated that citizen's didn't' expect rates to go back to the previous rates, but we
expected more than they got.
He feels that we have made a step towards better transparency. Adding that It's become clear that
these rate increases are related to growth and expansion. He asked that growth be managed to a
rate that ordinary people can afford. He stated that the city has other deficits to consider, including
the street fund. He told about an article that said Fort Worth was considering a 600% increase to
their impact fees. The story stated that they had to look at the economic impact of growth, and that
growth should pay for growth. He however, doesn't believe that current users should have to pay
for future users and he hopes that as we move forward, we can structure things in a way where
growth will pay for itself.
John Clark, 100 Meadowlake Court stated that it's easy to come before Council and complain
about an item we think is wrong, but much of the good the city does goes unrecognized. He asked
Council to remind themselves that Kennedale is now a better place to live than when they began
their terms. He pointed out that tonight, Council will be making appointments to boards and
commissions; and that the applicant group appears more varied and covers a wider selection of the
community, which shows that Council is doing something right. He thanked them for
their community outreach, like reading to elementary students, working at clean -up events, and
cooking burgers at the High School football games. The work Council is doing around the region
has increased our standing in the region and the benefits are unmeasurable.
Dave McMillan was signed up to speak, but passed.
VIII. REPORTS /ANNOUNCEMENTS
In addition to any specific matters listed below, the city council may receive a report about items of
community interest, including but not limited to recognition of individual officials, citizens or
departments, information regarding holiday schedules, upcoming or attended events, etc.
A. Updates from City Council
Frank Fernandez informed the group that the Today Show recognized Kennedale citizen, R.J.
Lackey who turned 103 years old.
Kelly Turned stated that he is active in the NCTCOG mock scenario emergency
preparedness project that will take place November 11th and 12'". He added that the State
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funded approximately $25M to train first responders. He noted that DFW Airport, TCC, and JPS
Hospital are some of the locations for the scenarios, which deal with active shooters and
tornadoes, just to name a few.
Liz Carrington informed the group that she attended two meetings with the Trinity River Authority
(TRA) regarding the Arlington watershed project. They are looking at the Lake Arlington
tributaries and things like e. coli. She added that she was recently contacted by Andy Nguyen's
office to be part of a steering committee for JPS Hospital.
B. Updates from the Mayor
1. Proclamation presentation in recognizing Municipal Court Week
Mayor Brian Johnson reminded the Council that the Bring it event, sponsored by the KKB, will
be Saturday, October 22nd from 9 to 11 am.; he added that they still need volunteers. The
following Saturday, there will be an Arbor Day Event, at Patterson Elementary. Continuing, he
stated that this Friday he will be attending the Transportation Crossroads Conference in Dallas;
He would be judging the Talent Show at Arthur Elementary on November 10 and last week he
read at the pancake supper at Delaney Elementary.
Proclamation presentation in recognizing Municipal Court Week
C. Updates from the City Manager
City Manager Bob Hart reported that the Chamber will host the State of the State luncheon on
Wednesday at 11:30 a.m. Bill Zedler and Konni Burton will be the speakers. He updated the
Council on the citizen's opinion survey, the upcoming Truck or Treat event, and the
McDonald's opening on November 11th.
IX. MONITORING INFORMATION
A. Executive Limitations
B. Ends Review - Balanced Scorecard
Monitoring information updates are in the agenda packet for review.
X. REQUIRED APPROVAL ITEMS (CONSENT)
All matters listed under incidental items (consent) have been previously discussed, require little or
no deliberation, or are considered to be routine by the council. If discussion is desired, then an
item will be removed from the consent agenda and considered separately.
A. Consider approval of minutes from September 19, 2016 regular meeting
B. Consider approval of minutes the City Council Board Interview meetings
C. Consider Resolution 493 authorizing participation in various cooperative purchasing
programs
D. Consider Resolution 495 adopting an amended City of Kennedale Identity Theft Prevention
Program Policy
E. Consider Resolution 496 adopting an amended City of Kennedale Grant Submission &
Acceptance Policy
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F. Consider Resolution 497 adopting an amended City of Kennedale Fraud Policy
G. Consider Resolution 498 adopting an amended City of Kennedale Unclaimed Property
Policy
H. Consider Resolution 499 adopting an amended City of Kennedale Purchasing Policy
I. Consider Resolution 500 adopting an amended City of Kennedale Procurement Card
Program Policy
J. Consider Resolution 501 adopting an amended City of Kennedale Investment Policy
K. Consider approval of a city - developer agreement for the Glen of Village Creek
L. Consider approval of a city - developer agreement for Falconcrest Addition
M. Discuss and consider approval of Ordinance 610 amending Chapter 16, Article II "Parks and
Recreation Board" of the Kennedale Code of Ordinances, establishing new membership
appointments
N. Discuss and consider authorizing the Mayor to execute documents accepting the Hazard
Mitigation Grant Program sub -grant for acquisition and demolition of residential structure in the
floodplain
O. Approval to cancel collection services with Valley Collections for utility billing
P. Discuss and consider approval of a contract with McCreary, Veselka, Bragg &
Allen, P.C. collections services for utility billing
Motion To approve all required approval Items on (Consent) agenda. Action Approve, Moved
By Charles Overstreet, Seconded By Liz Carrington.
Motion passed Unanimously
XI. DECISION ITEMS
A. CASE # PZ 16 -01 Public hearing and consider approval of Ordinance 592 regarding a
request by Adam Blow for a zoning change from "C -1" General Commercial to "R -1" Single
Family Residential located on 0.5 acre at 600 Little School Rd. legal description of J M Lilly
Survey, A 980 Tr 6A.
1. Staff presentation
2. Applicant presentation
3. Public Hearing
4. Applicant response
5. Staff response and summary
6. Action by the City Council
City Planner Rachel Roberts provided the staff presentation stating that the property is located
just off the round -a -bout at the north intersection of Little School Road and Kennedale Sublett
Road. The properties on either side are also zoned C -1, restricted commercial; the property
behind is R -3, single family resident; and across the street is zoned AG, agricultural with some
commercial mixed in. Rachel stated that the Future Land Use Plan shows this property as a
Neighborhood Village Character District, which should include a mix of residents and
businesses. She provided the full description as called out in the future land use plan. It was
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noted that the applicant requested to rezone the property to R -1, which is not consistent with the
neighborhood village character district.
Rachel informed Council that the Planning and Zoning Board (P &Z) heard this case in March,
but the applicant did not show up to the meeting, therefore they voted to postpone the case for
two months to give the applicant time to put information together. Staff has not had any further
contact with the applicant, and the case went back before P &Z in August. They recommended
denial. Rachel provided maps to Council for a reference on the property.
There was no Applicant Presentation.
Public Hearing:
Mayor Johnson opened the public hearing; there was no one present requesting to speak.
Mayor Johnson closed the public hearing.
Motion To Deny PZ Case 16 -01 for the approval of Ordinance 592. Action Deny, Moved
By Charles Overstreet, Seconded By Michael Walker.
Motion to Deny was Unanimously
B. Consider Resolution 494 adopting an amended City of Kennedale Financial
Management Policy
Finance Director Krystal Crump stated that the Financial Management Policy only had a few
minor changes. There was a change in the time required to have the budget to Council. It
originally was supposed to be to Council by August 1 the policy now reads that the budget with
be to Council within 2 weeks of receiving the July Certified Tax Rolls. This change is based on
an amendment approved at the Charter Election in May. She added that other changes included
changing the fund balance policy percentage to the current rate; changing the term pilot to
franchise fees for fees paid from the water /sewer fund to the street fund; and cash deposits are
now required to be processed by the following day, any exception has to be signed off by the
Finance Director.
Motion To approve Resolution 494 amending the Financial Management Policy.
Action Approve, Moved By Liz Carrington, Seconded By Kelly Turner.
Motion passed Unanimously
C. Consider Resolution 502 adopting an amended City of Kennedale Internal Controls & Cash
Handling Policy
Finance Director Krystal Crump stated there were a few changes made to the Internal Controls
and Cash Handling Policy. Verbiage was added that allows cashiers and custodians to repay
losses /shortages in their tills; she noted that this has been an unwritten policy in the Finance
Department. Verbiage was added to address issues of repeated losses /shortages stating that it
will result in disciplinary action based upon the city policy; and lastly all losses /shortages must
be reported with 24 hours of discovery.
Councilman Frank Fernandez questioned if it is legal to make someone pay for a shortage in
their till; he asked if it was against Labor Laws? City Attorney Wayne Olson stated that he
was not aware of such a law, but he will look into it. The Mayor suggested that this item be
postponed until Wayne can look up the law.
Motion To postpone until the December meeting. Action Table, Moved By Liz Carrington,
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Seconded By Charles Overstreet.
Motion to Postpone was Passed Unanimously
D. Consider Ordinance 616 adopting City of Kennedale Credit Card Consumer Usage Fee
Policy
Finance Director Krystal Crump stated that the City currently charges 3% for fees collected
for permits and development, which are passed on to the customer. Staff is requesting that
Council approves this formal policy that allows the city to pass the 2.8% fee charged by Fathom
for utility bills along to the consumer.
Motion To approve Ordinance 616 adopting a credit card consumer usage fee policy.
Action Approve, Moved By Frank Fernandez, Seconded By Michael Walker.
Motion passed Unanimously
E. Consider approval of an Ordinance 615 amending the city's schedule of administrative fees
Finance Director Krystal Crump stated that this amendment would allow for the 2.8% credit card
fee for utility bills to be added to the Administrative Fee Schedule.
Motion To approve Ordinance 615 amending the Schedule of Administrative Fees.
Action Approve, Moved By Kelly Turner, Seconded By Frank Fernandez.
Motion passed Unanimously
F. Consider Resolution 503 adopting an amended Kennedale Fund Balance Policy
Finance Director Krystal Crump stated that there has been discussion concerning the need to
change the percentage for the fund balance. The Governmental Accounting Standards Board
Statement Number 54 (GASB 54) has updated their guideline, and in order to be consistent with
recommended practices, GASB54 advises cities to update their current policies and procedures.
The following changes are recommended. The general fund balance be maintained at 18% with
a goal of 25 %; debt service fund balance be maintained at 7% with a goal of 10 %; and non-
governmental fund balance be maintained at 18% with a goal of 25 %.
Motion To approve Resolution 503 amending the fund balance policy. Action Approve, Moved
By Charles Overstreet, Seconded By Kelly Turner.
Motion passed Unanimously
G. Consider Ordinance 614 establishing a Utility and Infrastructure Board
City Manager Bob Hart stated that this is one of the recommendations of the Water Rate Review
Committee. Staff recommends the creation of a Utility and Infrastructure Advisory Board to deal
with water, wastewater, stormwater drainage, streets, solid waste, etc. The Board would be
advisory in nature and consist of seven members. The Board would provide policy
recommendations to Council dealing with capital infrastructure and on establishment of erosion
drainage policies.
Motion To approve Ordinance 614 establishing a Utility and Infrastructure Board.
Action Approve, Moved By Michael Walker, Seconded By Liz Carrington.
Motion passed Unanimously
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H. City Council to consider making appointments to the Board of Adjustment/Building Board of
Appeals, Keep Kennedale Beautiful Commission, Kennedale Economic Development
Corporation, Parks and Recreation Board, Planning and Zoning Commission, Library Advisory
Board, Utility and Infrastructure Board, TownCenter Development District, and the Tax
Increment Reinvestment Zone
Mayor Brian Johnson stated that the City had a record number of highly qualified people apply
to be on Boards and Committees this year. He added that Council conducted interviews earlier
in the month. Mayor Johnson read the appointments as follows:
Board of Adjustment/Building Board of Appeals (BOA/BBA):
Reappoint Martin Young to Place 4
Reappoint Jeff Nevarez to Place 6 (Alternate)
Newly Appoint Kelly Rod to Place 7 (Alternate)
Newly Appoint Josh Altom to Place 8 (Alternate)
Economic Development Corporation Board (EDC):
Reappoint Pat Turner to Place 2 (Vice President)
Reappoint Robert Mundy to Place 4 (President)
Reappoint Mark Yeary to Place 6
Keep Kennedale Beautiful Commission (KKB):
Reappoint Darlene Winters to Place 2
Newly Appoint Vinita Thomas to Place 3
Reappoint Michael Chandler to Place 4 (Chair)
Newly Appoint Dora Ann Markle to Place 6
Reappoint Laurie Sanders to Place 8
Library Advisory Board (LAB):
Reappoint Sharon Dehnel to Place 2
Reappoint Rebecca Clark to Place 4 (Chair)
Parks & Recreation Board (PRB):
(Membership reduced to five (5) seats, with quorum of three (3)
Reappoint Jeff Nevarez to Place 2
Newly Appoint Gary Swan to Place 4
Planning & Zoning Commission (P &Z):
Newly Appoint Chris Pugh to Place 2
Reappoint Thomas Pirtle to Place 4
Reappoint Ernest Harvey to Place 6 (Chair)
Newly Appoint Patrick Filson to Place 7
Newly Appoint Horace Young to Place 8 (Alternate)
Newly Appoint Greg Adams to Place 9 (Alternate)
Utility and Infrastructure Board (Newly Created):
Newly Appoint Harry Browne to Place 1
Newly Appoint Tayyab Yunus to Place 2
Newly Appoint Stephen Higginbotham to Place 3
Newly Appoint Robb Lecuyer to Place 4
Newly Appoint Tom Newsom to Place 5
Newly Appoint Steven Mora to Place 6
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Place 7 is currently VACANT
Tax Increment Reinvestment Zone (TIRZ):
Reappoint Rebecca Carlton to Place 2
Reappoint Frank Fernandez to Place 4
Reappoint Scott Rule to Place 6
Development District (TDD):
Reappoint Mark Yeary to Place 2
Reappoint Frank Fernandez to Place 4
Mayor Johnson stated that we had more applicants than we were able to appoint; however, he
encouraged everyone to come to meetings and volunteer for special events, such as the Bring It
event this weekend.
Motion To approve the slate of appointments to the listed Boards and Committees.
Action Approve, Moved By Charles Overstreet, Seconded By Kelly Turner.
Motion passed Unanimously
I. Discuss the fall /winter City Council scheduled meeting dates:
• November 21, 2016
• December 19, 2016
• January 16, 2017 - MILK Day
• February 20, 2017 - President's Day
• April 17, 2017 - Easter Monday
City Manager Bob Hart stated that he wanted to bring these dates forward to make sure Council
is comfortable with all the dates. He noted that November's meeting is the same week of
Thanksgiving; the December meeting is the same week as Christmas; the January and
February meetings conflict with staff holidays; and the April meeting is the Monday after Easter.
Mayor Brian Johnson stated that he would like to move the January and February meeting to
allow staff to be off for those holidays, especially since we did not give raises this year. Council
agreed to meet in November as scheduled and to discuss the optional dates at the November
21, 2016 meeting.
XII. EXECUTIVE SESSION
Mayor Johnson recessed into executive session at 6:22 p.m. after the Work Session.
A. The City Council may meet in closed session at any time during the work session or the
regular session, pursuant to Section 551.071 of the Texas Government Code for consultation
with the City Attorney pertaining to any matter in which the duty of the City Attorney under the
Texas Disciplinary Rules of Professional Conduct may conflict with the Open Meetings Act,
including discussion on any item posted on the agenda.
The City Council will meet in closed session pursuant to Section 551.072 of the Texas
Government Code to deliberate the purchase, exchange, lease, or value of real property for the
following:
1. 108 New Hope Road
2. 821 Corry A. Edwards Drive
3. New Hope Road Bridge Right -of -Way
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XIII. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO
EXECUTIVE SESSION, IF NEEDED
Mayor Johnson reconvened into open session at 6:38p.m.
No action required.
XIV. ADJOURNMENT
Motion To adjourn. Action Adjourn, Moved By Liz Carrington, Seconded By Mike Walker.
Motion passed Unanimously
The meeting was adjourned at 10:16 p.m.
APPROVED: ATTEST:
It _
Brian Johnson Mayor Leslie Galloway, City Secretary
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