2019_08.20 CC PacketAMENDED AGENDA
ADDED DECISION ITEM XII.H.
KENNEDALE CITY COUNCIL AGENDA
REGULAR MEETING | AUGUST 20, 2019
CITY HALL COUNCIL CHAMBERS, 405 MUNICIPAL DRIVE
WORK SESSION AT 5:30 PM | REGULAR SESSION AT 7:00 PM
I. CALL TO ORDER
NOTE: Pursuant to Texas Government Code §551.071, the City 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.
II. WORK SESSION
A. Continued discussion regarding the City Manager's Proposed Fiscal Year 2019-2020 annual
budget
B. Discussion of items on the regular agenda
III. REGULAR SESSION
IV. ROLL CALL
V. 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."
VII. VISITOR AND CITIZEN FORUM
At this time, any person may address the City Council, provided that a ‘Speaker Request Form’ is submitted to the
City Secretary before the meeting begins. Speakers are allotted three (3) minutes, must limit their comments to the
subject indicated on the submitted form, and should address the Council as a whole, rather than individual
Councilmembers or staff. No formal action or discussion may be taken at this time. Those wishing to speak about an
agenda item should indicate as much on the “Speaker Request Form” and will be called upon to speak when th e
Council considers that item.
VIII. REPORTS AND ANNOUNCEMENTS
In addition to any items listed below, the Mayor and Councilmembers may give or receive reports regarding items of
community interest, including, but not limited to, recognition of officials, citizens, staff, or departments; information
regarding holiday schedules; and upcoming or attended events.
A. Updates from the City Council
B. Updates from the Mayor
• Recognition of the Top Readers from Summer Reading Club
• Proclaiming September 2019 as Senior Center Month
C. Updates from the City Manager
IX. INCIDENTAL ITEMS
X. MONITORING INFORMATION
A. Monthly Financials for July 2019
B. KEDC Financial Report for June 2019
C. Schedule of Investment Activity for quarter ending June 30, 2019
XI. REQUIRED APPROVAL ITEMS (CONSENT)
Consent items are matters that have appeared on previous agendas, require little or no deliberation, or are
considered routine. If discussion is desired, any item may be removed from Consent and considered separately.
A. Approval of the minutes from the July 16, 2019 Regular Meeting
B. Approval of the minutes from the August 8, 2019 Special Meeting
C. Consider adopting Resolution 556, amending authorized representatives of TEXPOOL local
government investment pool
D. Consider adopting Resolution 557, amending authorized representatives for the Texas Short-
Term Asset Reserve Program (TexSTAR) local government investment pool
E. Consider adopting Resolution 558, amending authorized representatives for the TexasTERM /
TexasDAILY local government investment pool
F. Consider approval of amended interlocal agreement with Kennedale ISD for the provision of two
School Resource Officers (SRO)
G. Consider appointment of Martin Young as Vice Chair of the Board of Adjustment (BOA) / Building
Board of Appeals (BBA)
XII. DECISION ITEMS
A. Case #PZ19-02 — Consider an ordinance 667 and request by Spirals Gymnastics, Inc. for a
rezoning from "PD-UV" Planned Development Urban Village to "UV" of approximately 2 acres at
1083 Bowman Springs Road, Block 1, Lot 19R, Woodlea Acres Addition, City of Kennedale,
Texas
B. Consider approval of Ordinance 670, Authorizing the Issuance of Up to $2,000,000 in Principal
Amount of City of Kennedale, Texas Tax Note, Series 2019; Securing the Payment Thereof by
Authorizing the Levy of an Annual Ad Valorem Tax; and Approving and Authorizing the Execution
of a Paying Agent/Registrar Agreement, a Purchase Letter, and All Other Instruments and
Procedures Related Thereto
C. CASE #PZ 19-05 — Conduct a public hearing and consider Ordinance 671, regarding a request
by Cannon Maki for a rezoning from "R3" Residential to "C2" Commercial for approximately 6
acres located at 5306 Kennedale Sublett Road, Abstract 792, Tract 1 Less HS, James R Hawkins
Survey, City of Kennedale, Tarrant County, Texas.
D. CASE #PZ 19-06 — Conduct a public hearing and consider Ordinance 672, regarding a request
by Adlai Pennington for a rezoning from "I" Industrial to "C2" Commercial for approximately 2
acres located at 1170 E Kennedale Parkway, Abstract 378, Tract 1DD01, E C Cannon Survey,
City of Kennedale, Tarrant County, Texas
E. Conduct a public hearing and consider approval of Ordinance 673, amending the Unified
Development Code by including additional multi-family regulations by adding a new Section 3.6
“Additional Multi-Family Regulations”, amending Section 12.8 “Required Off-street Parking”, and
amending Table 13.6 "Buffer Area Landscape Requirement.”
F. Conduct a public hearing and consider approval of Ordinance 674, amending the Unified
Development Code by adding a new “R-4” Single-Family District and providing for new R-4 District
regulations by amending Section 3.1 “Purpose”, Table 3.2 “Schedule of Uses: Agricultural and
Residential Districts”, Table 3.3 “Spatial Requirements: Agricultural and Residential Districts”,
Section 10.9.C.1 “Dwellings per Lot”, Section 11.2 “Accessory Buildings”, Section 11.30
“Residential Sales”, Section 11.36 “Sexually Oriented Businesses”, Section 11.38 “Temporary
Uses”, Section 12.8 “Required Off-Street Parking”, Section 13.2 “General Landscaping
Requirements”, Table 13.6 “Buffer Area Landscape Requirements”, and Section 29.5 “Board of
Adjustment”.
G. Consider Ordinance 675, vacating and abandoning a 10’ utility easement on 1033 Estates Drive,
Lot 9, Block 1, Brookstone Estates Addition, and authorizing the City Manager to execute a
Quitclaim Deed
H. Consider approval of bid award for health insurance and authorize the City Manager to sign the
agreement
XIII. EXECUTIVE SESSION
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 of any item posted on the agenda, legal issues regarding
the Open Meetings Act, and the following:
A. Discussion with the City Attorney regarding settlement agreement between Ron Sturgeon, et
al and the City of Kennedale
B. Discussion with the City Attorney regarding salvage yards, including A&A Pickup & Van, Inc., and
special exception/special use permits
C. Discussion with the City Attorney regarding an early termination and release agreement with
Global Water Management, LLC
D. Discussion with City Attorney regarding legal issues associated with Economic Development and
Performance Agreement, Tax Abatement, and Chapter 380 Agreement with Compressed Air
Systems for project located at Harris Corporation Addition, Block 1 Lot 1A2 (L inda Road)
Pursuant to Section 551.087 – (1) deliberation regarding commercial or financial information that the
governmental body has received from a business prospect that the governmental body seeks to have locate, stay,
or expand in or near the territory of the governmental body and with which the governmental body is conducting
economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business
prospect described by Subdivision (1):
E. Economic Development and Performance Agreement, Tax Abatement, and Chapter 380
Agreement with Compressed Air Systems for project located at Harris Corporation Addition, Block
1 Lot 1A2 (Linda Road)
XIV. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO
EXECUTIVE SESSION, IF NEEDED
XV. ADJOURNMENT
CERTIFICATION
I DO HEREBY CERTIFY THAT THE AUGUST 20, 2019 KENNEDALE CITY COUNCIL AGENDA WAS POSTED INSIDE THE MAIN
ENTRANCE OF CITY HALL (405 MUNICIPAL DRIVE), IN A PLACE CONVENIENT AND READILY ACCESSIBLE TO THE GENERAL
PUBLIC AT ALL TIMES; AND THAT SAID AGENDA WAS POSTED AT LEAST SEVENTY-TWO (72) HOURS PRECEDING THE
SCHEDULED TIME OF SAID MEETING, IN ACCORDANCE WITH CHAPTER 551 OF THE TEXAS GOVERNMENT CODE.
_____________________________
LESLIE E. GALLOWAY, CITY SECRETARY
In compliance with the Americans with Disabilities Act (ADA), the City of Kennedale will provide for reasonable
accommodations for persons attending meetings. This facility is wheelchair accessible and accessi ble parking spaces
are available. Requests for sign interpreter services must be made forty-eight (48) hours prior to the meeting by
calling 817-985-2104 or (TTY) 1-800-735-2989.
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: WORK SESSION - A.
I. Subject:
Continued discussion regarding the City Manager's Proposed Fiscal Year 2019-2020 annual budget
II. Originated by:
George Campbell, City Manager
Lakeita Sutton, Director of Finance and Information Technology
III. Summary:
A draft of the Proposed FY19-20 Budget was distributed to the Council on Tuesday, August 6, before being presented
by City Manager George Campbell during a Special Meeting on Thursday, August 8.
The final version of the Proposed FY19-20 Budget was filed with the City Secretary's Office on Monday, August 12
(and is available for public inspection either in person or via www.cityofkennedale.com/budget) and distributed to the
Council on Friday, August 16, along with an Informal Staff Report (attached) outlining the sources and outcome of
change in proposed amounts.
At this time, Council may continue any discussion regarding the Proposed FY19-20 budget and staff will be available
to answer questions.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
VII. Alternative Actions:
VIII. Attachments:
1.2019_08.16 FY19-20 Proposed Budget 2019_08.16 FY19-20 Proposed Budget.pdf
#2019-08-16
PAGE 1 CITY OF KENNEDALE | www.cityofkennedale.com
INFORMAL STAFF REPORT
to the Mayor and City Council
DATE: Friday, August 16, 2019
SUBJECT: FY19–20 Proposed Budget
ORIGINATED BY: Lakeita Sutton, Finance Director
#2019-08-16
PAGE 2 CITY OF KENNEDALE | www.cityofkennedale.com
SHOULD YOU HAVE ANY QUESTIONS REGARDING THIS REPORT, PLEASE CONTACT FINANCE
DIRECTOR LAKEITA SUTTON AT 817-985-2110 OR LSUTTON@CITYOFKENNEDALE.COM.
Previously Proposed Amount Updated Proposed Amount $ Change
Health Care Increased Cost 9,125$ 17,376$ 8,251$
-$
Total Expenditures 7,774,271$ 7,782,522$ 8,251$
-$
Fund Balance Draw Down 854,694$ 862,945$ 8,251$
Fund Balance as a % of Expenditures 8.05%7.94%
GENERAL FUND
Previously Proposed Amount Updated Proposed Amount $ Change
Water Utility M&O City of Arlington 1,175,000 1,075,000 (100,000)
-
Total Expenditures 4,450,939 4,350,939 (100,000)
Fund Balance Draw Down 422,608 322,608 (100,000)
Fund Balance as a % of Expenditures 28.31%31.26%
WATER SEWER FUND
Previously Proposed Amount Updated Proposed Amount $ Change
Engineering Services 10,000 - (10,000)
-
Total Expenditures 10,000 - (10,000)
TIRZ/TIF FUND
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: WORK SESSION - B.
I. Subject:
Discussion of items on the regular agenda
II. Originated by:
George Campbell, City Manager
III. Summary:
At this time, the Council may choose to discuss any item on the agenda.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
VII. Alternative Actions:
VIII. Attachments:
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: REPORTS AND ANNOUNCEMENTS - A.
I. Subject:
Updates from the City Council
II. Originated by:
George Campbell, City Manager
III. Summary:
Updates and information from each of the Councilmembers, if any.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
VII. Alternative Actions:
VIII. Attachments:
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: REPORTS AND ANNOUNCEMENTS - B.
I. Subject:
Updates from the Mayor
• Recognition of the Top Readers from Summer Reading Club
• Proclaiming September 2019 as Senior Center Month
• Proclaiming the week of September 9–14, 2019 as "The Future is Bright: A Week of Suicide Prevention"
II. Originated by:
George Campbell, City Manager
III. Summary:
Updates and information from Mayor Brian Johnson, including, but not limited to:
Recognition of the Top Readers from Summer Reading Club
The 2019 Summer Reading Club participants read a combined total of 98,560 minutes during the two-month program.
Abby Lopez was the top reader with 8,500 minutes; Anna Shonkwiler was second with 3,750 minutes; and Anastasia
Zyuskina was third with 3,520 minutes read.
Proclaiming September 2019 as Senior Center Month
Proclaiming the week of September 9–14, 2019 as "The Future is Bright: A Week of Suicide Prevention"
• Monday, September 9: Wear green to promote mental health awareness and to destigmatize mental health issues.
(www.nami.org/Get-Involved/Awareness-Events/Awareness-Resources)
• Tuesday, September 10: National Suicide Awareness Day. Wear red to signify the importance of knowing the red
flags (warning signs) of suicide. (suicidepreventionlifeline.org/how-we-can-all-prevent-suicide)
• Saturday, September 14: “Out of the Darkness” walk at Clearfork (sponsored by the American Suicide Foundation).
(www.facebook.com/events/321624798731478)
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
VII. Alternative Actions:
VIII. Attachments:
1.2019_08.20 Senior Center Month 2019 2019_08.20 Senior Center Month 2019.pdf
2.2019_08.20 Suicide Prevention Week 2019_08.20 Suicide Prevention Week.pdf
Senior Center Month
Senior Center Month
The Future is Bright:
A Week of Suicide Prevention
The Future is Bright:
A Week of Suicide Prevention
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: REPORTS AND ANNOUNCEMENTS - C.
I. Subject:
Updates from the City Manager
II. Originated by:
George Campbell, City Manager
III. Summary:
Updates and information from City Manager George Campbell, if any.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
VII. Alternative Actions:
VIII. Attachments:
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: MONITORING INFORMATION - A.
I. Subject:
Monthly Financials for July 2019
II. Originated by:
Lakeita Sutton, Director of Finance and Information Technology
III. Summary:
Monthly financials and sales tax update as produced by the Finance Department.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
VII. Alternative Actions:
VIII. Attachments:
1.7- 2019 SALES TAX COMPARISON 7- 2019 SALES TAX COMPARISON.pdf
2.2019_07 Expenditure Summary By Department 2019_07 Expenditure Summary By Department.pdf
3.Revenue Summary By Fund Revenue Summary By Fund.pdf
COMPARISON BY FISCAL YEAR
VARIANCE
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 OVER
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL PRIOR YEAR
October 65,971$ 71,955$ 93,137$ 88,748$ 103,820$ 93,144$ (10,676)$
November 89,600 94,438 119,137 116,156 114,506$ 116,039$ 1,533$
December 94,982 82,545 97,985 81,855 86,956$ 118,085$ 31,129$
January 67,373 73,782 75,878 88,956 95,425$ 265,081$ 169,656$
February 97,781 107,571 116,006 105,794 163,502$ 136,298$ (27,204)$
March 69,685 72,312 87,589 78,644 95,107$ 108,636$ 13,529$
April 79,236 81,193 79,516 87,130 123,760$ 104,356$ (19,404)$
May 93,957 119,350 114,543 100,121 129,363$ 139,848$ 10,485$
June 77,496 128,463 83,718 80,241 108,885$ 116,904$ 8,019$
July 71,927 165,756 84,586 100,943 123,268$ 131,085$ 7,817$
August 86,597 146,297 87,693 49,590 118,770$
September 67,978 177,697 91,377 86,549 89,090$
962,583$ 1,321,359$ 1,131,165$ 1,064,727$ 1,352,452$ 1,329,476$ 184,884$
CITY OF KENNEDALE
SALES TAX COMPARISON
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
FY 19 SALES TAX REVENUE BY MONTH
FY 2019
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
July 2019
FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY ACTUAL % OF CY BUDGET BUDGET
GENERAL FUND YTD ACTUAL ADOPTED MONTH YTD EXPENSED EXPENSED REMAINING
CITY MANAGER 286,041$ 363,210$ 365,464$ 26,722$ 258,208$ 78.8%70.7%107,256$
MAYOR/CITY COUNCIL 109,253$ 158,561$ 177,323$ 27,798$ 156,586$ 68.9%88.3%20,737$
CITY SECRETARY 104,546$ 130,433$ 164,073$ 11,534$ 129,283$ 80.2%78.8%34,790$
MUNICIPAL COURT 73,451$ 65,492$ 108,148$ 7,965$ 80,923$ 112.2%74.8%27,225$
HUMAN RESOURCES 134,976$ 165,966$ 104,909$ 6,808$ 73,816$ 81.3%70.4%31,093$
FINANCE 282,587$ 341,293$ 358,365$ 14,054$ 285,834$ 82.8%79.8%72,531$
POLICE 1,763,228$ 2,257,421$ 2,759,841$ 258,646$ 2,034,940$ 78.1%73.7%724,901$
FIRE 1,386,401$ 1,744,007$ 1,907,680$ 161,113$ 1,529,851$ 79.5%80.2%377,829$
COMMUNITY DEVELOPMENT 266,964$ 338,010$ 372,090$ 29,237$ 276,637$ 79.0%74.3%95,453$
SENIOR CITIZEN CENTER 39,955$ 49,877$ 54,028$ 3,647$ 36,978$ 80.1%68.4%17,050$
LIBRARY 220,095$ 311,250$ 268,259$ 26,953$ 216,885$ 70.7%80.8%51,374$
NONDEPARTMENTAL 295,299$ 414,496$ 511,749$ 14,142$ 391,308$ 71.2%76.5%120,441$
TOTAL EXPENDITURES 4,962,796$ 6,340,016$ 7,151,929$ 588,619$ 5,471,249$ 78.3%76.5%1,680,680$
FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY BUDGET % OF CY BUDGET BUDGET
WATER/SEWER FUND YTD ACTUAL ADOPTED MONTH YTD EXPENSED EXPENSED REMAINING
UTILITY BILLING 948,152$ 1,412,952$ 1,293,973$ 138,652$ 1,042,585$ 67.1%80.6%251,388$
WATER OPERATIONS 1,061,586$ 1,324,784$ 1,576,197$ 20,806$ 943,408$ 80.1%59.9%632,789$
DEBT 509,735$ 175,327$ 509,680$ -$ 470,199$ 290.7%
W&S CAPITAL 11,395$ 15,519$ 654,796$ 66,981$ 351,954$ 53.8%302,842$
NONDEPARTMENTAL 463,170$ 1,441,811$ 624,875$ 47,946$ 522,682$ 32.1%83.6%102,193$
TOTAL EXPENDITURES 2,994,038$ 4,370,393$ 4,659,521$ 274,385$ 3,330,828$ 68.5%71.5%1,328,693$
FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY BUDGET % OF CY BUDGET BUDGET
STREET IMPROVEMENT FUND YTD ACTUAL ADOPTED MONTH YTD EXPENSED EXPENSED REMAINING
STREETS 484,806$ 630,950$ 740,910$ 59,047$ 535,820$ 76.8%72.3%205,090$
PARKS MAINTENANCE 58,524$ 80,379$ 125,920$ 8,984$ 72,326$ 72.8%57.4%53,594$
CAPITAL 32$ 60,555$ 79,058$ 78,058$ 79,058$
TOTAL EXPENDITURES 543,362$ 771,884$ 945,888$ 146,089$ 687,204$ 70.4%72.7%258,684$
FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY BUDGET % OF CY BUDGET BUDGET
EDC4B FUNDS YTD ACTUAL ADOPTED MONTH YTD EXPENSED EXPENSED REMAINING
ADMINISTRATION 113,001$ 142,581$ 168,360$ 12,539$ 131,676$ 79.3%78.2%36,684$
DEBT SERVICE 230,574$ 325,006$ 320,432$ -$ 150,621$ 70.9%47.0%169,811$
TOWN SHOPPING CENTER 324,149$ 278,194$ 51,120$ 4,797$ 63,458$ 116.5%124.1%(12,338)$
TOWNCENTER REDEVELOPMENT 177,712$ 237,866$ $ --$ 5,738$
TOTAL EXPENDITURES 845,436$ 983,647$ 539,912$ 17,336$ 351,493$ 85.9%65.1%188,419$
EXPENDITURE SUMMARY BY DEPARTMENT
"YOU'RE HERE. YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
July 2019
FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY ACTUAL % OF CY BUDGET BUDGET
REVENUES YTD ACTUAL ADOPTED MONTH YTD EARNED EARNED REMAINING
GENERAL FUND 6,004,195$ 6,751,815$ 6,406,759$ 443,446$ 6,226,312$ 88.9%97.2%180,447$
OTHER GENERAL FUNDS 511,241$ 1,035,991$ 941,983$ 80,677$ 656,639$ 49.3%69.7%285,344$
GENERAL FUND 6,515,436$ 7,787,806$ 7,348,742$ 524,123$ 6,882,951$ 83.7%93.7%465,791$
-$
GENERAL DEBT SERVICE FUND 1,399,204$ 1,572,159$ 1,518,995$ 27,969$ 1,353,905$ 89.0%89.1%165,090$
-$
WATER/SEWER FUND 3,879,443$ 4,804,352$ 4,010,901$ 681,253$ 3,514,601$ 80.7%87.6%496,300$
STORMWATER UTILITY FUND 219,728$ 256,278$ 254,950$ 22,986$ 223,992$ 85.7%87.9%30,958$
WATER IMPACT FUND 144,980$ 165,170$ 120,450$ 3,138$ 35,031$ 87.8%29.1%85,419$
SEWER IMPACT FUND 79,127$ 93,162$ 32,664$ 1,282$ 17,054$ 84.9%52.2%15,610$
WATER/SEWER FUND 4,323,278$ 5,318,962$ 4,418,965$ 708,659$ 3,790,678$ 81.3%85.8%628,287$ -$
EDC4B FUND 423,002$ 991,633$ 629,752$ 66,974$ 600,675$ 42.7%95.4%29,077$ -$
CAPITAL FUND 31,459$ 186,462$ 172,535$ 10,115$ 808,048$ 16.9%468.3%(635,513)$ -$
SPECIAL REVENUE FUND 40,140$ 43,873$ 127,497$ 82,297$ 224,344$ 91.5%176.0%(96,847)$
TOTAL REVENUES 12,732,519$ 15,900,895$ 14,216,486$ 1,420,137$ 13,660,601$ 80.1%96.1%555,885$
FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY BUDGET % OF CY BUDGET BUDGET
EXPENDITURES YTD ACTUAL ADOPTED MONTH YTD EXPENSED EXPENSED REMAINING
GENERAL FUND 4,962,796$ 6,340,017$ 7,028,284$ 588,619$ 5,471,249$ 78.3%77.8%1,557,035$
OTHER GENERAL FUND 543,362$ 1,063,510$ 1,197,369$ 146,089$ 687,204$ 51.1%57.4%510,165$
GENERAL FUND 5,506,158$ 7,403,527$ 8,225,653$ 734,708$ 6,158,453$ 74.4%74.9%2,067,200$
GENERAL DEBT SERVICE FUND 1,420,004$ 1,420,004$ 1,511,744$ 27,970$ 1,404,196$ 100.0%92.9%107,548$ -$
WATER/SEWER FUND 2,994,038$ 4,370,392$ 4,659,521$ 274,385$ 3,330,828$ 68.5%71.5%1,328,693$
STORMWATER UTILITY FUND 129,371$ 188,545$ 139,764$ 36,896$ 157,199$ 68.6%112.5%(17,435)$
WATER IMPACT FUND 144,980$ 153,573$ 152,525$ 152,525$ 152,525$ 94.4%100.0%-$
SEWER IMPACT FUND 79,127$ 60,000$ 60,000$ 60,000$ 60,000$ 131.9%100.0%-$
WATER/SEWER FUND 3,347,516$ 4,772,510$ 5,011,810$ 523,806$ 3,700,552$ 70.1%73.8%1,311,258$ -$
EDC4B FUND 845,436$ 1,013,841$ 539,912$ 17,336$ 351,493$ 83.4%65.1%188,419$ -$
CAPITAL FUND -$ 186,536$ 735,000$ 4,710$ 171,510$ 0.0%23.3%563,490$ -$
SPECIAL REVENUE FUND 244,709$ 26,919$ 11,767$ 11,839$ 155,321$ 909.1%1320.0%(143,554)$ 0
TOTAL EXPENDITURES 11,363,823$ 14,823,337$ 16,035,886$ 1,320,369$ 11,941,525$ 76.7%74.5%4,094,361$
REVENUE SUMMARY BY FUND
EXPENDITURE SUMMARY BY FUND
"YOU'RE HERE. YOUR HOME."
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: MONITORING INFORMATION - B.
I. Subject:
KEDC Financial Report for June 2019
II. Originated by:
Lakeita Sutton, Director of Finance and Information Technology
III. Summary:
Reports from the previous EDC meeting are attached for your reference.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
VII. Alternative Actions:
VIII. Attachments:
1.Sales Tax Update-EDC June Copy of 06 Sales Tax Update-EDC.pdf
2.2019_06 Monthly Financials - EDC 2019_06 Monthly Financials - EDC.pdf
YearOctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberTotalFY2019 31,048$ 38,680$ 39,362$ 88,360$ 45,433$ 36,033$ 34,603$ 46,432$ 38,783$ ‐$ ‐$ ‐$ 398,734$ FY2018 34,607$ 38,169$ 28,985$ 31,808$ 54,501$ 31,672$ 41,253$ 43,121$ 36,295$ 41,089$ 39,590$ 29,697$ 450,787$ FY2017 29,583$ 38,719$ 27,285$ 29,652$ 35,265$ 26,215$ 29,043$ 33,374$ 26,747$ 33,648$ 16,530$ 28,850$ 354,908$ FY2016 31,046$ 39,712$ 32,662$ 25,293$ 38,669$ 29,196$ 26,505$ 38,181$ 27,906$ 28,195$ 29,231$ 30,459$ 377,055$ FY2015 23,985$ 31,479$ 27,515$ 24,594$ 35,857$ 24,104$ 27,064$ 39,783$ 42,821$ 55,252$ 48,766$ 59,232$ 440,453$ FY201421,990$ 29,867$ 31,661$ 22,458$ 32,594$ 23,228$ 26,412$ 31,319$ 25,832$ 23,976$ 28,866$ 22,659$ 320,861$ FY2013 33,617$ 31,297$ 23,446$ 20,135$ 30,003$ 20,791$ 20,318$ 32,020$ 21,136$ 22,435$ 27,973$ 26,025$ 309,197$ *Net payment after correcting an audit error.‐$ EDC Sales Tax By Month ‐ June 2019010,00020,00030,00040,00050,00060,00070,00080,00090,000100,000October November December January February March April May June July August SeptemberSales Tax vs 5 Year AverageFY 2019Five Year Average
1 CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
June 2019
Budget Amendment
Monthly Information
1. $38,968 Sales Tax larger than 5 year average
2. Fund has cash flexibility
3. EDC director engaged in long-term planning, including relationship with Chamber, hotel status, Red's Roadhouse, and development deals
Lakeita Sutton
ADDITIONAL INFORMATION
FUND 15- OPERATING FUND (ALL BILLS AND REVENUE RECEIVED IN THIS FUND)
FUND 19- CAPITAL BOND FUND (REMAINING CAPITAL MONEY)
FUND 95- RESERVE FUND FOR DEBT REQUIREMENTS
ECONOMIC DEVELOPMENT CORPORATION FINANCIALS SUMMARY
Rental Fees, MMD Tax and Rental Insurance are reported on the Accrual Basis of Accounting, while all
other revenues and expenditures are reported on the Cash Basis. This procedure has been in effect for
several years, but can be changed should the Board wish.
"YOU'RE HERE. YOUR HOME."
1 CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
June 2019
EDC CASH POSITION
FY18-19
CATEGORY DESCRIPTION YTD
FROM PREVIOUS MONTHS REPORT:
BEGINNING CASH BALANCE - FUND 15 (Operating Cash)225,910$
BEGINNING TEXPOOL BALANCE - FUND 15 (Operating Investments)-$
BEGINNING TEXPOOL BALANCE - FUND 19 (Unspent bond proceeds)-$
BEGINNING CASH BALANCE - FUND 95 (Required reserves)123,731$
BEGINNING CASH BALANCE - TOTAL 349,641$
BEGINNING AVAILABLE CASH - TOTAL 225,910
TOTAL REVENUES MINUS EXPENDITURES FOR MONTH 47,078$ *
ENDING CASH BALANCE - FUND 15 (Operating Cash)378,514$
ENDING TEXPOOL BALANCE - FUND 15 (Operating Investments)-$
ENDING TEXPOOL BALANCE - FUND 19 (Unspent bond proceeds)-$
ENDING CASH BALANCE - FUND 95 (Required reserves)123,731$
ENDING CASH BALANCE - TOTAL 502,245$
UNAVAILABLE CASH - EARMARKED
RESERVES FOR LEVERAGE NOTE (Required reserves)123,731$
TOTAL UNAVAILABLE CASH 123,731$
AVAILABLE CASH 378,514$
*Due to prior period adjustments, beginning cash balance plus monthly income will not always be an exact match for ending cash balance
"YOU'RE HERE. YOUR HOME."
1 CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
June 2019
COMBINED EDC4B FUNDS SUMMARY
FY17-18 FY17-18 FY18-19 CURRENT FY18-19% OF PY ACTUAL% OF CY BUDGET BUDGET
CATEGORY YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING
BEGINNING FUND BALANCE 313,866$ 313,866$ 134,784$ 303,248$
AD VALOREM TAXES - - 35,000 - - 0.0%35,000
SALES/BEVERAGE TAXES 266,682 447,132 384,598 38,968 332,803 59.6%86.5%51,795
INVESTMENT EARNINGS 3,410 5,399 65 780 6,535 63.2%10054.6%(6,470)
MISCELLANEOUS INCOME 30,248 51,522 24,120 3,071 26,467 58.7%109.7%(2,347)
SURPLUS SALES/RENTALS 415,888 487,579 185,969 18,820 169,855 85.3%91.3%16,114
TRANSFERS - - 29,719 - - 0.0%0.0%-
TOTAL REVENUES 716,228$ 991,633$ 659,471$ 61,639$ 535,660$ 72.2%81.2%94,092$
SUPPLIES - - 2,100 - - 0.0%2,100
MAINTENANCE 281,439 237,161 29,920 3,751 39,420 118.7%131.8%(9,500)
SUNDRY 141,854 183,614 187,460 10,809 138,379 77.3%73.8%49,081
DEBT 158,074 172,418 165,607 - 150,621 91.7%91.0%14,986
TRANSFERS 67,588 152,588 184,544 - - 44.3%0.0%184,544
CAPITAL 177,712 237,866 - - 5,738 74.7%(5,738)
TOTAL EXPENDITURES 826,667$ 983,646$ 569,631$ 14,561$ 334,157$ 84.0%58.7%235,474$
REVENUES OVER EXPENDITURES(110,438)$ 7,987$ 89,840$ 47,078$ 201,503$
ENDING FUND BALANCE 203,428$ 321,853$ 224,624$ 504,751$
FUND BALANCE AS % OF EXP 24.6%32.7%39.4%0.0%151.1%
RESERVE ($115,000) REQUIREMENT)-$ -$ 115,000$ -$ -$
RESERVE SURPLUS/(SHORTFALL)203,428$ 321,853$ 109,624$ -$ 504,751$
"YOU'RE HERE. YOUR HOME."
1 CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
June 2019
15: EDC4B FUND
FY17-18 FY17-18 FY18-19 CURRENT FY18-19% OF PY ACTUAL% OF CY BUDGETBUDGET
CATEGORY YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING
BEGINNING FUND BALANCE 164,460$ 164,460$ (15,517)$ 152,017$
AD VALOREM TAXES - - 35,000 - - 0.0%35,000
SALES/BEVERAGE TAXES 266,682 447,132 384,598 38,968 332,803 59.6%86.5%51,795
INVESTMENT EARNINGS 2,210 3,574 65 553 4,577 61.8%7042.1%(4,512)
MISCELLANEOUS INCOME 30,248 51,522 24,120 3,071 26,467 58.7%109.7%(2,347)
SURPLUS SALES/RENTALS 415,888 487,579 185,969 18,820 169,855 85.3%91.3%16,114
TOTAL REVENUES 715,027$ 989,808$ 629,752$ 61,412$ 533,702$ 72.2%84.7%96,050$
SUPPLIES - - 2,100 - - 0.0%2,100
MAINTENANCE 281,439 237,161 29,920 3,751 39,420 118.7%131.8%(9,500)
SUNDRY 141,854 183,614 187,460 10,809 138,379 77.3%73.8%49,081
DEBT 158,074 172,418 165,607 - 150,621 91.7%91.0%14,986
TRANSFERS 67,588 152,588 154,825 - - 44.3%0.0%154,825
CAPITAL 177,712 237,866 - - 5,738 74.7%
TOTAL EXPENDITURES 826,667$ 983,646$ 539,912$ 14,561$ 334,157$ 84.0%61.9%211,493$
REVENUES OVER EXPENDITURES(111,639)$ 6,162$ 89,840$ 46,851$ 199,545$
ENDING FUND BALANCE 52,821$ 152,017$ 74,323$ 351,562$
FUND BALANCE AS % OF EXP 6.4%15.5%13.8%0.0%105.2%
RESERVE (NO REQUIREMENT)-$ -$ -$ -$ -$
RESERVE SURPLUS/(SHORTFALL)52,821$ 152,017$ 74,323$ -$ 351,562$
"YOU'RE HERE. YOUR HOME."
1 CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
June 2019
15: EDC4B FUND
FY17-18 FY17-18 FY18-19 CURRENT FY18-19% OF PY ACTUAL% OF CY BUDGETBUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING
4002-00-00 MMD TAX-CURRENT YEAR - - 35,000 - - 0.0%35,000
AD VALOREM TAXES -$ -$ 35,000$ -$ -$ 0.0%35,000$
4081-00-00 SALES TAX 266,682 447,132 384,598 38,968 332,803 59.6%86.5%51,795
SALES/BEVERAGE TAXES 266,682$ 447,132$ 384,598$ 38,968$ 332,803$ 59.6%86.5%51,795$
4401-00-00 INVESTMENT INCOME 2,210 3,574 65 553 4,577 61.8%7042.1%(4,512)
INVESTMENT EARNINGS 2,210$ 3,574$ 65$ 553$ 4,577$ 61.8%7042.1%(4,512)$
4409-00-00 MISCELLANEOUS INCOME 30,248 36,624 24,120 3,071 26,467 82.6%109.7%(2,347)
4415-00-00 INSURANCE REIMBURSEMENTS - 14,898 - - - 0.0%0.0%-
MISCELLANEOUS INCOME 30,248$ 51,522$ 24,120$ 3,071$ 26,467$ 58.7%109.7%(2,347)$
4805-00-00 RENTAL FEES-SHOPPING CENTER 66,709 105,856 185,223 18,820 169,855 63.0%91.7%15,368
4806-00-00 RENTAL INSURANCE - 2,350 746 - - 0.0%0.0%746
4902-00-00 PROCEEDS-DEBT/LOAN/LEASE - 30,194 - - - 0.0%-
4884-00-01 SALE OF ASSETS 349,179 349,179 - - - 100.0%-
SURPLUS SALES/RENTALS 415,888$ 487,579$ 185,969$ 18,820$ 169,855$ 163.0%91.7%16,114$
TOTAL REVENUES 715,027$ 989,808$ 629,752$ 61,412$ 533,702$ 72.2%84.7%96,050$
TOTAL REVENUES (EXCLUDING INTEREST/TRANSFERS)712,818$ 986,234$ 629,687$ 60,859$ 529,125$
"YOU'RE HERE. YOUR HOME."
1 CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
June 2019
15: EDC4B FUND
01: ADMINISTRATION
FY17-18 FY17-18 FY18-19 CURRENT FY18-19% OF PY ACTUAL% OF CY BUDGETBUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING
5240-01-00 PRINTED SUPPLIES - - 2,000 - - 0.0%2,000
5260-01-00 GENERAL OFFICE SUPPLIES - - 50 - - 0.0%0.0%50
5261-01-00 POSTAGE - - 50 - - 0.0%0.0%50
SUPPLIES -$ -$ 2,100$ -$ -$ 0.0%2,100$
5501-01-00 ADVERTISING 35 35 1,200 - - 100.0%0.0%1,200
5510-01-00 ASSOC DUES/PUBLICATIONS 4,890 4,890 5,320 - 4,932 100.0%92.7%388
5525-01-00 TRAINING/SEMINARS - - 250 - - 0.0%250
5565-01-00 LEGAL SERVICES 11,580 20,855 13,000 121 2,223 55.5%17.1%10,777
5567-01-00 AUDIT SERVICES 2,000 2,000 4,250 - 4,250 100.0%100.0%-
5570-01-00 SPECIAL SERVICES 12,299 13,774 250 43 275 89.3%110.1%(25)
5578-01-00 TRAVEL - - 100 - - 0.0%0.0%100
5580-01-00 ENGINEERING SERVICES - - - - - 100.0%-
5595-01-00 ADMIN CHARGE-GENERAL FUND61,235 81,647 117,890 9,824 88,418 75.0%75.0%29,472
5615-01-00 FUNCTIONAL GRANT 14,059 19,380 24,000 - 19,040 72.5%79.3%4,960
SUNDRY 106,098$ 142,581$ 166,260$ 9,988$ 119,137$ 74.4%71.7%47,123$
CAPITAL -$ -$ -$ -$ -$ 0.0%-$
TOTAL EXPENDITURES 106,098$ 142,581$ 168,360$ 9,988$ 119,137$ 74.4%70.8%49,223$
"YOU'RE HERE. YOUR HOME."
1 CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
June 2019
15: EDC4B FUND
01: ADMINISTRATION
03: DEBT SERVICE
FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY BUDGET% OF CY BUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING
5643-01-03 2007 $1.2M TAX BOND-INTEREST54,831 54,831 50,735 - 50,689 100.0%99.9%46
5644-01-03 2007 $1.2M TAX BOND-PRINCIPAL60,000 60,000 60,000 - 60,000 100.0%100.0%-
5645-01-03 2011 $1.7M TX LEVERAGE-INT 13,291 17,926 12,834 - 13,503 74.1%105.2%(669)
5646-01-03 2011 $1.7M TX LEVERAGE-PRI 29,952 39,661 42,038 - 26,429 75.5%62.9%15,609
DEBT 158,074$ 172,418$ 165,607$ -$ 150,621$ 91.7%91.0%14,986$
5702-01-03 TRANSFER OUT-DEBT SERVICE FUND67,588 152,588 154,825 - - 44.3%0.0%154,825
TRANSFER 67,588$ 152,588$ 154,825$ -$ -$ 44.3%0.0%154,825$
TOTAL EXPENDITURES 225,662$ 325,006$ 320,432$ -$ 150,621$ 69.4%47.0%169,811$
"YOU'RE HERE. YOUR HOME."
1 CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
June 2019
15: EDC4B FUND
02: TOWN SHOPPING CENTER
FY17-18 FY17-18 FY18-19 CURRENT FY18-19% OF PY ACTUAL% OF CY BUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING
5403-02-00 BUILDING MAINTENANCE281,439 237,161 29,920 3,751 39,420 118.7%131.8%(9,500)
MAINTENANCE 281,439$ 237,161$ 29,920$ 3,751$ 39,420$ 118.7%131.8%(9,500)$
5530-02-00 ELECTRIC SERVICES 4,224 8,002 6,700 322 3,602 52.8%53.8%3,098
5545-02-00 INSURANCE-PROPERTY 8,341 8,341 8,500 - 11,139 100.0%131.0%(2,639)
5570-02-00 SPECIAL SERVICES 23,191 24,691 6,000 500 4,500 93.9%75.0%1,500
SUNDRY 35,756$ 41,033$ 21,200$ 822$ 19,242$ 87.1%90.8%1,958$
TOTAL
EXPENDITURES 317,195$ 278,194$ 51,120$ 4,573$ 58,661$ 114.0%114.8%(7,541)$
"YOU'RE HERE. YOUR HOME."
1 CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
June 2019
15: EDC4B FUND
03: TOWN CENTER REDEVELOPMENT
FY17-18 FY17-18 FY18-19 CURRENT FY18-19CY - PY% OF PY ACTUAL% OF CY BUDGETBUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTDCHANGEUSED USED REMAINING
5847-03-00 CONSTRUCTION 177,712 237,866 - - 5,738 0.0%(5,738)
CAPITAL 177,712$ 237,866$ -$ -$ 5,738$ 0.0%(5,738)$
TOTAL
EXPENDITURES 177,712$ 237,866$ -$ -$ 5,738$ 0.0%(5,738)$
"YOU'RE HERE. YOUR HOME."
1 CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
June 2019
15: EDC4B FUND
04: TEXAS LEVERAGE PROGRAM
FY17-18 FY17-18 FY18-19 CURRENTFY18-19% OF PY ACTUAL% OF CY BUDGETBUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING
5800-04-00 LAND - - - - - 0.0%-
CAPITAL -$ -$ -$ -$ -$ 0.0%-$
TOTAL
EXPENDITURES -$ -$ -$ -$ -$ 0.0%-$
"YOU'RE HERE. YOUR HOME."
1 CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
June 2019
19: EDC4B CAPITAL BOND FUND
FY17-18 FY17-18 FY18-19 CURRENT FY18-19% OF PY ACTUAL% OF CY BUDGET BUDGET
CATEGORY YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING
BEGINNING FUND BALANCE 29,444$ 29,444$ 29,719$ 29,904$
INVESTMENT EARNINGS 313 460 - - - 68.1%-
TOTAL REVENUES 313$ 460$ -$ -$ -$ 68.1%-$
TRANSFERS - - 29,719 - - 0.0%0.0%-
CAPITAL - - - - - 0.0%0.0%-
TOTAL EXPENDITURES -$ -$ 29,719$ -$ -$ 0.0%0.0%-$
REVENUES OVER EXPENDITURES313$ 460$ (29,719)$ -$ -$
ENDING FUND BALANCE 29,757$ 29,904$ 0$ 29,904$
FUND BALANCE AS % OF EXP N/A N/A N/A N/A N/A
RESERVE (NO REQUIREMENT)-$ -$ -$ -$ -$
RESERVE SURPLUS/(SHORTFALL)29,757$ 29,904$ 0$ -$ 29,904$
"YOU'RE HERE. YOUR HOME."
1 CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
June 2019
19: EDC4B CAPITAL BOND FUND
FY17-18 FY17-18 FY18-19 CURRENTFY18-19% OF PY ACTUAL% OF CY BUDGETBUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING
4401-00-00 INVESTMENT INCOME 313 460 - - - 68.1%-
INVESTMENT EARNINGS 313$ 460$ -$ -$ -$ 68.1%-$
TOTAL REVENUES 313$ 460$ -$ -$ -$ 68.1%-$
19: EDC4B CAPITAL BOND FUND
01: TOWN CENTER REDEVELOPMENT
FY17-18 FY17-18 FY18-19 CURRENTFY18-19% OF PY ACTUAL% OF CY BUDGETBUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING
5580-01-00 TRANSFER OUT - - - - - 0.0%0.0%-
TRANSFERS -$ -$ -$ -$ -$ 0.0%0.0%-$
5800-01-00 LAND - - - - - 0.0%0.0%-
5847-01-00 CONSTRUCTION - - - - - 0.0%0.0%-
CAPITAL -$ -$ -$ -$ -$ 0.0%0.0%-$
TOTAL EXPENDITURES -$ -$ -$ -$ -$ 0.0%0.0%-$
"YOU'RE HERE. YOUR HOME."
1 CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
June 2019
95: EDC4B RESERVE FUND
FY17-18 FY17-18 FY18-19 CURRENT FY18-19% OF PY ACTUAL% OF CY BUDGETBUDGET
CATEGORY YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING
BEGINNING FUND BALANCE 119,962$ 119,962$ 120,582$ 121,327$
INVESTMENT EARNINGS 888 1,365 - 227 1,958 65.0%(1,958)
TOTAL REVENUES 888$ 1,365$ -$ 227$ 1,958$ 65.0%(1,958)$
TOTAL EXPENDITURES -$ -$ -$ -$ -$ 0.0%0.0%-$
REVENUES OVER EXPENDITURES 888$ 1,365$ -$ 227$ 1,958$
ENDING FUND BALANCE 120,850$ 121,327$ 120,582$ 123,285$
FUND BALANCE AS % OF EXP N/A N/A N/A N/A N/A
RESERVE ($112,606 REQUIREMENT)112,606$ 112,606$ 112,606$ 112,606$ 112,606$
RESERVE SURPLUS/(SHORTFALL)8,244$ 8,721$ 7,976$ (112,606)$ 10,679$
"YOU'RE HERE. YOUR HOME."
1 CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
June 2019
95: EDC4B RESERVE FUND
FY17-18 FY17-18 FY18-19 CURRENT FY18-19% OF PY BUDGET% OF CY BUDGETBUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING
4401-00-00 INVESTMENT INCOME 888 1,365 - 227 1,958 65.0%(1,958)
INVESTMENT EARNINGS 888$ 1,365$ -$ 227$ 1,958$ 65.0%(1,958)$
TOTAL REVENUES 888$ 1,365$ -$ 227$ 1,958$ 65.0%(1,958)$
95: EDC4B RESERVE FUND
FY17-18 FY17-18 FY18-19 CURRENT FY18-19% OF PY BUDGET% OF CY BUDGETBUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING
TRANSFERS -$ -$ -$ -$ -$ 0.0%0.0%-$
TOTAL EXPENDITURES -$ -$ -$ -$ -$ 0.0%0.0%-$
"YOU'RE HERE. YOUR HOME."
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: MONITORING INFORMATION - C.
I. Subject:
Schedule of Investment Activity for quarter ending June 30, 2019
II. Originated by:
Lakeita Sutton, Director of Finance and Information Technology
III. Summary:
In accordance with Public Funds Investment Act (PFIA), the investments should be reported quarterly. This is for the
third quarter for FY19 and subsequently will be presented for each quarter to Council to stay current with PFIA.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
VII. Alternative Actions:
VIII. Attachments:
1.JUNE_2019 Investment Report_form JUNE_2019 Investment Report_form.pdf
Fund Apr-19 May-19 Jun-19
01- General Fund 3,042,461.23$ 2,745,233.12$ 2,615,140.42$
02- Debt Service Fund 121,720.70$ 111,046.21$ 139,016.06$
04- Capital Project Fund 42,404.57$ 49,302.88$ 64,803.72$
05- Capital Replacement Fund 197,877.78$ 189,816.56$ 182,210.98$
07- Storm Drainage Utility Fund 45,847.42$ 39,401.85$ 50,962.55$
10- Water/Sewer Fund 1,792,770.69$ 1,865,487.04$ 1,524,623.22$
12- Court Security Fund 19,650.97$ 19,958.18$ 20,264.46$
13-CIP Tax Note 713,951.85$ 703,753.24$ 700,327.74$
14- Park Dedication Fund 160,314.14$ 160,927.46$ 161,222.22$
15- Economic Development Fund 205,632.97$ 225,909.68$ 378,514.03$
16- Court Technology Fund 9,637.44$ 9,181.24$ 9,557.72$
17- Streets Improvement Fund 340,002.39$ 309,532.65$ 485,330.38$
18- Juvenile Case Manager Fund 10,541.90$ 10,227.89$ 9,835.07$
21- TIF #1 New Hope Fund 103,833.96$ 125,725.83$ 125,956.14$
31- Police Seizure 651.17$ 652.44$ 653.64$
32- Library Building Fund (5,232.47)$ (4,977.99)$ (4,820.89)$
34- LEOSE Fund 1,878.07$ 1,881.75$ 1,885.20$
41- Park Rec/Other Donation Fund 11,991.32$ 12,894.37$ 19,705.70$
45- Roadway Impact Fee Fund 275,872.02$ 277,748.34$ 282,269.73$
61- Water Impact Fee Fund 152,157.59$ 153,943.14$ 161,085.69$
62- Sewer Impact Fee Fund 132,191.81$ 133,530.98$ 135,560.87$
83- Tree Reforestation Fund 69,791.53$ 69,927.81$ 70,055.89$
85- Unclaimed Property Fund 1,990.24$ 1,990.24$ 1,990.24$
95- EDC Reserve Fund 123,489.69$ 123,730.82$ 123,957.45$
TOTAL ALL FUNDS 7,571,428.98$ 7,336,825.73$ 7,260,108.23$
FOR QUARTER ENDING JUNE 30, 2019
CITY OF KENNEDALE, TEXAS
INVESTMENT REPORT
INVESTMENT PORTFOLIO ALLOWABLE BREAKDOWN
INVESTMENT STRATEGIES
The City's main objectives in managing the portfolio are as follows: suitability, preservation & safety of principal,
liquidity, marketability, diversification, and yield.
CASH BREAKDOWN BY FUND
SUMMARY OF INVESTMENTS FOR THE QUARTER
Certificates of Deposit (50%), Investment Pools (100%)* , Money Market Mutual Funds (100%)*, Repurchase
Agreements (50%)*, Government Obligations (25%), US Treasury & US Agency Callables (25%), US Government
Agencies & Instrumentalities (100%), and US Treasury Notes/Bills (100%)
*(no more than 50% in any individual pool, fund, or repurchase agreement)
The Quarterly InvestmentReportprovides the City's investmentportfolioposition as of the report period indicated above. Funds
areinvestedinaccordancewiththe Cityof KennedaleInvestmentPolicy,as originallyadopted onSeptember 13,2001andmost
recently reviewed and adopted in June of 2018.
100% of the City of Kennedale's investments are owned by the Pooled Cash Fund. As of the reporting quarter, 93.88%
of the City's investments are in investment pools, and 6.12% are invested in money market savings accounts.
Bank AccountMarch 31, 2019GL BalanceMarch 31, 2019 Bank BalanceAdd: April DepositsLess: April Withdrawals Add: April Interest Add: May DepositsLess: May Withdrawals Add: May Interest Add: June DepositsLess: June Withdrawals Add: June InterestJune 30, 2019 Ending Bank Balance Ending GL BalanceUnreconciled DifferenceConsolidated Cash 428,664.20$ 428,664.20$ 1,336,388.53$ (1,181,935.16)$ 1,168,882.19$ (1,254,755.65)$ 915,502.22$ (972,478.00)$ 440,268.33$ 440,268.33$ -$ Payroll Clearing 49,405.93$ 49,405.93$ 309,447.58$ (358,260.61)$ 298,299.08$ (298,879.96)$ 304,930.42$ (304,928.24)$ 14.20$ 14.20$ -$ Section 125 Flex -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Health Reimbursement -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Employee Health Benefit Trust 39,684.55$ 39,684.55$ -$ (39,677.26)$ 0.21$ 75,048.43$ (36,374.00)$ (38,674.00)$ 1.06$ 8.99$ 8.99$ -$ Economic Development Corp 30,177.70$ 30,177.70$ -$ (42.67)$ -$ (43.15)$ -$ -$ (42.63)$ -$ 30,049.25$ 30,049.25$ -$ TOTAL WELLS FARGO ACCOUNTS 119,268.18$ 119,268.18$ 470,340.77 470,340.77 - Bank AccountMarch 31, 2019GL BalanceMarch 31, 2019 Bank BalanceAdd: April DepositsLess: April Withdrawals Add: April Interest Add: May DepositsLess: May Withdrawals Add: May Interest Add: June DepositsLess: June Withdrawals Add: June InterestJune 30, 2019 Ending Bank Balance Ending GL BalanceUnreconciled DifferenceConsolidated Cash 32,595.02$ 32,595.02$ -$ -$ 64.49$ -$ 66.91$ -$ 64.74$ 32,791.16$ 32,791.16$ -$ TOTAL TEX DAILY ACCOUNTS 32,595.02$ 32,595.02$ 32,791.16 32,791.16 - Bank AccountMarch 31, 2019GL BalanceMarch 31, 2019 Bank BalanceAdd: April DepositsLess: April Withdrawals Add: April Interest Add: May DepositsLess: May Withdrawals Add: May Interest Add: June DepositsLess: June Withdrawals Add: June InterestJune 30, 2019 Ending Bank Balance Ending GL BalanceUnreconciled DifferenceConsolidated Cash 339,347.99$ 339,347.99$ -$ -$ 676.17$ -$ -$ 694.48$ -$ -$ 666.14$ 341,384.78$ 341,384.78$ -$ TOTAL TEX STAR ACCOUNTS 339,347.99$ 339,347.99$ 341,384.78 341,384.78 - Bank AccountMarch 31, 2019GL BalanceMarch 31, 2019 Bank BalanceAdd: April DepositsLess: April Withdrawals Add: April Interest Add: May DepositsLess: May Withdrawals Add: May Interest Add: June DepositsLess: June Withdrawals Add: June InterestJune 30, 2019 Ending Bank Balance Ending GL BalanceUnreconciled DifferenceConsolidated Cash 7,573,940.12$ 7,573,940.12$ 198,386.58$ (875,932.15)$ 14,402.86$ 231,160.22$ (657,815.35)$ 13,774.03$ 231,415.73$ (232,855.87)$ 12,629.67$ 6,509,105.84$ 6,509,105.84$ -$ TOTAL TEX POOL ACCOUNTS 7,573,940.12$ 7,573,940.12$ 6,509,105.84 6,509,105.84 - 31-Mar-1930-Jun-19TOTAL INVESTMENT POOLS 7,945,883.13$ 6,883,281.78 Wells Fargo Payroll Clearning 0.04%–0.05%Wells Fargo Section 125 Flex 0.04%–0.05%TEX STAR INVESTMENTSAPR %TEX POOL INVESTMENTSWELLS FARGO ACCOUNTS RECONCILIATIONTEX TERM INVESTMENTS
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: REQUIRED APPROVAL ITEMS (CONSENT) - A.
I. Subject:
Approval of the minutes from the July 16, 2019 Regular Meeting
II. Originated by:
Leslie E. Galloway, City Secretary & Communications Coordinator
III. Summary:
Please see the attached minutes for your approval.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
VII. Alternative Actions:
VIII. Attachments:
1.2019_07.16_Minutes_City Council Regular
Meeting_DRAFT
2019_07.16_Minutes_City Council Regular
Meeting_DRAFT.pdf
KENNEDALE CITY COUNCIL MINUTES
REGULAR MEETING | JULY 16, 2019
CITY HALL COUNCIL CHAMBERS, 405 MUNICIPAL DRIVE
WORK SESSION AT 5:30 PM | REGULAR SESSION AT 7:00 PM
I. CALL TO ORDER
Mayor Brian Johnson called the Work Session to order at 5:30 p.m.
II. WORK SESSION
A. Review the 2019 Board and Commission appointment process and calendar
City Manager George Campbell stated that the packet included the memberships of the current
boards and a proposed timeline for the appointment process. He added that there was an item on
this agenda to fill vacancies now, if Council chose to do so. The consensus among the Council at
this time was to not require returning applicants to interview, but to only interview new applicants.
Jeff Nevarez, 338 Spring Branch Lane, spoke on behalf of the Parks Board stating that,
following the resignation of Michael Chandler, the Board respectfully recommended
appointment of Kenneth Michels to that vacancy at this time, if possible.
Mayor Brian Johnson stated his preference for Councilmember Rhodes to replace former
Councilmember Rockie Gilley on the TownCenter Development (TDD) Board; and for
Councilmembers Pugh and Wandel to fill standing vacancies on the Tax Increment Reinvestment
Zone (TIRZ) #1 Board. He added that the representatives from Tarrant County and Tarrant
Council College (TCC) were no longer with those organizations. Campbell stated that staff would
reach out to the three taxing units with a place on the board to request updated representatives.
B. Discuss and provide staff direction regarding the possible issuance of $2,000,000 of tax notes for
capital projects
City Manager George Campbell stated that staff proposed including the issuance of $2 million in
tax notes on the August 20 agenda; and provided a tax rate impact analysis from SAMCO Capital
showing that in order to maintain the existing I&S tax rate in 2020, it was advisable to issue $2
million in tax notes in 2019 (of a proposed estimated $18 million over the next several years). He
added that Finance Director Lakeita Sutton was available to answer any questions . There was
some discussion about the current needs this debt might address including acquisition of rights-of-
way for streets, economic development, and parks or open space projects; that the issuance
would have no effect on the tax rate; and the repayment schedule. There was a consensus
among Council to add this item to the August 20 agenda.
C. Discussion of items on the regular agenda
In response to a question from Councilmember Pugh, City Manager George Campbell stated that
staff had provided the vote record of the Planning & Zoning Commission regarding two of t onight’s
cases; and that Director of Planning & Economic Development Melissa Dailey would present each
case and be available to answer questions.
Mayor Johnson recessed to Executive Session at 5:44 p.m.
III. REGULAR SESSION
Mayor Brian Johnson called the Regular Session to order at 7:00 p.m.
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CITY COUNCIL MINUTES | JULY 16, 2019
IV. ROLL CALL
Present: Mayor Brian Johnson; Mayor Pro Tem Sandra Lee, Place 3;Chris Pugh, Place 2;
Linda Rhodes, Place 4; Chad Wandel, Place 5; Absent: Josh Altom, Place 1.
Staff: City Manager George Campbell, City Secretary & Communications Coordinator Leslie E.
Galloway, City Attorney Drew Larkin, Finance Director Lakeita Sutton, Director of Planning & Economic
Development Melissa Dailey, Public Works Director Larry Hoover, Librar y Director Amanda King, Fire
Chief James Brown, Police Chief Tommy Williams, Director of Human Resources and Administrative
Services Danielle Clarke, Planner Meghan Riddlespurger
V. INVOCATION
Pastor Greg Adams of Covenant Life Baptist Church offered the invocation.
VI. UNITED STATES PLEDGE AND TEXAS PLEDGE
VII. VISITOR AND CITIZEN FORUM
Jeff Nevarez, 338 Spring Branch Lane, spoke on behalf of the Kennedale Rotary Club, announcing
that on the last Tuesday of each month the organization would be holding an evening meeting at
6:30 p.m. at the Tipsy Turtle; that membership was growing; and that vendors and sponsors were
currently being sought for the Chili Cook-Off on Saturday, November 2.
Sarah Johnson Cotton, 700 Crestview Drive, spoke on behalf of Senior Outreach – Kennedale,
announcing that the organization had a meeting on July 22, at 6:00 p.m. at Blessed Hope Baptist
Church; that paint was donated for the Senior Center; that there would be an Senior Aging Wellness
meeting on Thursday, August 8, at 1:00 p.m. also at Blessed Hope; and discussed the partnership
between the YMCA and the Senior Center for a swim class.
Tanya Ehler, 2308 Dobree Street in Mansfield , spoke on behalf of the Tejas District Day Camp,
announcing the Boy Scouts’ appreciation of the use of Sonora Park for the event, for staff’s help in
coordinating State required water testing, and the response of the Kennedale Police Department
after the unfortunate overnight vandalism of the campsite.
VIII. REPORTS AND ANNOUNCEMENTS
A. Updates from the City Council
Chris Rhodes, Place 2, had no announcements at this time.
Mayor Pro Tem Lee, Place 3, had no announcements at this time.
Linda Rhodes, Place 4, announced that she appreciated staff’s response to her proposal of
the City potentially hosting a Chute 2 Productions rodeo event, which would be presented for
consideration at an upcoming Parks & Recreation Board Meeting.
Chad Wandell, Place 5, had no announcements at this time.
B. Updates from the Mayor
Mayor Brian Johnson thanked Councilmember Wandell for inviting City staff to a Texas Rangers
game at his office at the ballpark; announced that he spoke at the Fort Worth Rotary regarding
transportation and toured Alliance Airport; and thanked Firefighter Kristin Dumas who was among
the responders when he lost consciousness during a bike ride hosted by Fort Worth Mayor Betsy
Price. Mayor Brian Johnson and Mayor Pro Tem Lee then recognized all 2018–19 YAC members.
YAC President Leland Murphy and Secretary Kayla Guevara were in attendance.
C. Updates from the City Manager
City Manager George Campbell introduced new Finance Director Lakeita Sutton; announced that
a Community Development Block Grant (CDBG) survey was available through July 31; and
announced the City’s partnership with the Tarrant County HOME Program.
IX. INCIDENTAL ITEMS
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CITY COUNCIL MINUTES | JULY 16, 2019
X. MONITORING INFORMATION
A. Monthly Financials for June 2019
There was no discussion at this time.
B. KEDC Financial Report for May 2019
There was no discussion at this time.
XI. REQUIRED APPROVAL ITEMS (CONSENT)
A. Approval of the minutes from the June 20, 2019 Regular Meeting
B. Approval of tax collection contract with the Tarrant County Tax Office
C. Approval of an Interlocal Agreement with Tarrant County in the amount of $7,500.00 for roadside
ditch line maintenance of selected streets and any other minor drainage needs that may arise
during the project time period
Motion To Approve. Action Approve the Consent Agenda (including the corrected version of the
June 20, 2019 minutes as presented by staff this evening). Moved By Pugh. Seconded By
Mayor Pro Tem Lee. Motion passes unanimously.
XII. DECISION ITEMS
ITEM XIV. (ACTION PURSUANT TO EXECUTIVE SESSION) WAS TAKEN OUT OF ORDER. A MOTION WAS MADE IMMEDIATELY
FOLLOWING THE MOTION TO APPROVE XI. REQUIRED APPROVAL ITEMS (CONSENT), BUT BEFORE DECISION ITEM XII.A.
A. Consider making appointments to the 2019–2020 Youth Advisory Council (YAC)
Councilmember Pugh stated his desire to increase City Council involvement with YAC.
Motion To Approve. Action Approve the appointment of incumbents Allen Constantino, Kayla
Guevara, Quincy Martin, Allie Murphy, Riya Patel, and Ryan Roller; and new applicants Libby
Beck, Ella Beene, Amaya Constantino, Amber Guo, Bri Hull, Grant McConnell, Julia McHugh, Luc
Ngo, Jaiden Patel, Michelle Pham, Preston Roller, Christian Rockin, Lillian Rychlik, Luciane
Williams to the 2019-20 Youth Advisory Council (YAC). Moved By Rhodes. Seconded By Mayor
Pro Tem Lee. Motion passes unanimously.
B. Consider making appointments to various advisory boards and commissions, including the
TownCenter Development District (TDD) Board, the Tax Increment Reinvestment Zone #1 (TIRZ)
Board, and the Parks & Recreation Board
Motion To Approve. Action Approve the appointment of Kenneth Michels to the Parks and
Recreation Board, Place 3. Moved By Pugh. Seconded By Mayor Pro Tem Lee. Motion passes
unanimously.
Motion To Approve. Action Approve the appointment of April Coltharp to the TownCenter
Development District (TDD) Board, Place 2; and Councilmember Linda Rhodes to TDD Place 5.
Moved By Wandel. Seconded By Mayor Pro Tem Lee. Motion passes unanimously.
Motion To Approve. Action Approve the appointment of Councilmember Chris Pugh to the Tax
Increment Reinvestment Zone (TIRZ) Board, Place 3; and Councilmember Chad Wandel to TIRZ,
Place 4. Moved By Rhodes. Seconded By Mayor Pro Tem Lee. Motion passes unanimously.
C. Consider authorizing the City Manager to enter into a contract with ABLe Communications for
improvements to the Council Chambers audiovisual equipment
City Manager George Campbell noted that the quote included the purchase and installation of DRAFT UNTIL APPROVED BY COUNCIL
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CITY COUNCIL MINUTES | JULY 16, 2019
large presentation monitors for the Council and the audience, improvements to the sound system,
the ability to film and upload meetings (with livestreaming in the future), and the reinstatement
electronic voting. He added that the cost of the low proposal was $49,964, and that staff would
recommend approval. Campbell added that the City already had the voting software, that iPads
would be utilized for packets, and that unused televisions and monitors would be removed.
Motion To Approve. Action Approve authorizing the City Manager to enter into a contract with
ABLe Communications for improvements to the Council Chambers audiovisual equipment . Moved
By Mayor Pro Tem Lee. Seconded By Wandel. Motion passes unanimously.
In response to a question from Councilmember Pugh, Campbell stated that it was possible these
improvements would be made in time for the August 20 regular meeting; and in response to a
question from Mayor Johnson that Council meetings would be the first meetings to benefit from
the technology, but that it was planned to be extended to other boards meeting in the chambers.
D. Hold a public hearing and consider a request by ODAAT 52, LLC for a variance at 1375 Gilman
Road to sell alcoholic beverages within 300 feet of a church, public or private school, or public
hospital as required by Municipal Code, Article XI, Section 11.274
There were no requests to speak at the public hearing.
Director of Planning & Economic Development Melissa Dailey stated that Adlai Pennington, owner
of the property, desired to open a facility similar to Red’s Roadhouse – with entertainment, food,
and alcohol. She noted that, in addition to advertising and mailing notices, staff also proactively
called the church to request input, but that no response (in opposition or otherwise) was received.
Motion To Approve. Action Approve a request by ODAAT 52, LLC for a variance at 1375 Gilman
Road to sell alcoholic beverages within 300 feet of a church, public or private scho ol, or public
hospital as required by Municipal Code, Article XI, Section 11.274 . Moved By Pugh. Seconded
By Wandel.
In response to a question from Councilmember Wandel, Dailey stated that Pennington also own ed
the property and building being occupied by the church.
Motion passes unanimously.
E. Case #PZ19-02 — Hold a public hearing and consider an ordinance and request by Spirals
Gymnastics, Inc. for a rezoning from "PD-UV" Planned Development Urban Village to "UV" of
approximately 2 acres at 1083 Bowman Springs Road, Block 1, Lot 19R, Woodlea Acres Addition ,
City of Kennedale, Texas
There were no requests to speak at the public hearing.
Director of Planning & Economic Development Melissa Dailey stated that when the applicant
originally approached City staff in 2015 regarding the construction of this building – which houses
Spirals Gymnastics – that the Zoning Ordinance (or Unified Development Code (UDC)) was being
updated, and the Urban Village (“UV”) zoning was not yet available. Therefore, the applicant was
granted a PD-UV zoning, with assurance from then City Manager Bob Hart that they could rezone
to UV. Dailey added that this location is across from Fellowship Academy; that the surrounding
zoning was Agricultural, Residential, Commercial, and Industrial; and that the Future Land Use
Plan designates the site as a commercial corridor. She noted that the Planning and Zoning
Commission (P&Z) denied the request with a vote of 4-3; but that staff did recommend approval.
Discussion included compliance with current zoning, what might be required to meet stricter UV
standards, a letter written by then City Manager Bob Hart, the current Council’s authority over the
decision at hand, features of the lot, and the surrounding uses.
Motion To Approve. Action Approve Ordinance 667 and a request by Spirals Gymnastics, Inc.
for a rezoning from "PD-UV" Planned Development Urban Village to "UV" of approximately 2 DRAFT UNTIL APPROVED BY COUNCIL
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CITY COUNCIL MINUTES | JULY 16, 2019
acres at 1083 Bowman Springs Road, Block 1, Lot 19R, Woodlea Acres Addition, City of
Kennedale, Texas. Moved By Wandel. Seconded By Pugh.
Councilmember Rhodes noted that including the letter in the packet would have been helpful.
Motion denied 2-3, with Pugh and Wandel voting for, Mayor Pro Tem Lee and Rhodes voting
against, and Mayor Johnson breaking the tie with a vote against.
F. Case #PZ19-03 — Hold a public hearing and consider an ordinance and request by Water Tank
Services, LLC for a modification to the "PD" Planned Development, Ordinance 561, Section 2.7
related to building materials at 6901 Mansfield Cardinal Road, Lot 4, Jesse Russell Addition, City
of Kennedale, Texas
Mayor Johnson opened the Public Hearing at 7:42 p.m.
Michael Green, 1501 W Randol Mill in Arlington, an attorney on behalf of the applicant,
spoke in favor of Case #PZ19-03.
Mayor Johnson closed the Public Hearing at 7:44 p.m.
Director of Planning & Economic Development Melissa Dailey stated that staff recommended
approval, noting that this request waives the masonry requirement for the existing building, but
future structures would have to comply. Mayor Johnson noted complaints against the previous
owners. Dailey added that she received calls from residents, but that none had any concerns.
Motion To Approve. Action Approve Ordinance 668, regarding a request by Water Tank
Services, LLC for a modification to the "PD" Planned Development, Ordinance 561, Section 2.7
related to building materials at 6901 Mansfield Cardinal Road, Lot 4, Jesse Russell Addition, City
of Kennedale, Texas. Moved By Rhodes. Seconded By Wandel. Motion passes unanimously.
G. Case #PZ19-04 — Hold a public hearing and consider an ordinance and request by KD Hammack
Creek Housing, LP for a rezoning from “AG” Agricultural to “UV” Urban Village for approximately
12 acres located at 406 Crestview Drive, Block 2, Lot 1, Hammack Creek Addition, 121 E
Kennedale Parkway, Block 2, Lot 2, Hammack Creek Addition, 129 E. Kennedale Parkway, Block
2, Lot 3, Hammack Creek Addition, 220 Kennedale Sublett Rd, Block 2, Lot 4, Hammack Creek
Addition, 337 Kennedale Sublett Road, Jesse B Renfro Survey, Abstract 1260, Tract 3D, and 345
Kennedale Sublett Road, Jesse B Renfro Survey, Abstract 1260, Tract 3D01, City of Kennedale,
Tarrant County, Texas
Director of Planning & Economic Development Melissa Dailey stated that the current request was
specifically for the lot 300 feet behind Kennedale Parkway; and that the applicant intended to
request a rezoning for the remainder in the future. She noted that the current zoning was
Agricultural (AG), but that the Future Land Use Plan designated this site as a commercial corridor
along Kennedale Parkway and residential behind. Dailey stated that it was a straight zoning case
and was approved by the Planning & Zoning (P&Z) Commission with a vote of 4 -2-1.
Mayor Johnson opened the Public Hearing at 7:51 p.m.
Anthony Bichel, 908 Shady Vale Drive, spoke in opposition of Case #PZ19-04.
Frank Fernandez, 911 Shady Vale Drive, spoke in opposition of Case #PZ19-04.
Sara Johnson Cotton, 700 Crestview Drive, spoke in opposition of Case #PZ19-04.
Roy Stott, 1260 Elmbrook Drive, spoke in opposition of Case #PZ19-04.
Kay Seat, 1325 Meadowview Drive, spoke in opposition of Case #PZ19-04.
Councilmember Pugh responded that the City does have a Building Inspector and that this decision had
been under consideration for three years.
Jonathan Beranek, 619 Reeves Lane, spoke in opposition of Case #PZ19-04.
Mayor Johnson responded that strict subdivision ordinances would apply to this development under the UV
Zoning, that he would agree a traffic study may be needed, that water runoff engineering would be required,
and that other Cities are benefitting from similar projects. DRAFT UNTIL APPROVED BY COUNCIL
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CITY COUNCIL MINUTES | JULY 16, 2019
Sam Masner, 100 Creekside Court, spoke in opposition of Case #PZ19-04.
Eric Elam, Sr., Linda Elam, Austen Elam, and Phillip Elam, Jr., 349 Sublett Road, did
not speak, but registered in favor of Case #PZ19-04.
Mayor Johnson closed the public hearing at 8:12 p.m.
Deepak Sulakhe, CEO of OM Housing, and Jason Lain, Director of Acquisitions for OM Housing,
were both available to answer questions from Council. Sulakhe discussed items including
infrastructure, traffic flow, the quality of the development and the stringent requirements of UV
Zoning, erosion and runoff, the financing of ongoing maintenance and repairs, and this project
serving as a catalyst to revitalize this portion of the City.
Councilmember Pugh asked about the awards won by OM Housing, including the “Best Suburban
Multifamily Project of the Year” from the Dallas Business Journal, as well as Mr. Sulakhe’s long
history as a developer in North Texas. In response to a question from Councilmember Rhodes,
Sulakhe stated that the Council tabled this three years ago because of unfamiliarity with mixed
use development; and Mayor Johnson added that there was a short deadline at that time.
Councilmember Wandel stated that he did have some concerns about the concept plan itself, but
felt that traffic problems were partially caused by the one-way streets in the area; noted that, on
average, apartment dwellers have fewer cars and children per household; that higher density
housing makes more efficient use of City staff; and closed by urging everyone to judge the project
on its own merits rather than discriminating against the demographic it might serve.
Dailey addressed citizen concerns, noting that the City did have a Code Compliance Officer and a
Building Inspector; that the City participates in the iSWM (Integrated Stormwater Management)
Program, which has stringent requirements aimed at reducing developments’ effect on drainage;
that traffic should be considered by looking at the area as a whole; that the project would generate
$20 million in revenue to the City and KISD over the next 20 years; and reiterated that the
question at hand was whether UV was the best zoning for this site.
Councilmember Wandel noted that the Safe Routes to School Program would add sidewalks to
nearby neighborhoods. Dailey added that, under UV Zoning, sidewalks would be required for this
development and noted the synergistic effect this development could have on TownCenter.
Motion To Approve. Action Approve Ordinance 669, regarding and request by KD Hammack
Creek Housing, LP for a rezoning from “AG” Agricultural to “UV” Urban Village for approximately
12 acres located at 406 Crestview Drive, Block 2, Lot 1, Hammack Creek Addition, 121 E
Kennedale Parkway, Block 2, Lot 2, Hammack Creek Addition, 129 E. Kennedale Parkway, Block
2, Lot 3, Hammack Creek Addition, 220 Kennedale Sublett Rd, Block 2, Lot 4, Hammack Creek
Addition, 337 Kennedale Sublett Road, Jesse B Renfro Survey, Abstract 1260, Tract 3D, and 345
Kennedale Sublett Road, Jesse B Renfro Survey, Abstract 1260, Tract 3D01, City of Kennedale,
Tarrant County, Texas. Moved By Pugh. Seconded By Mayor Pro Tem Lee.
Councilmember Pugh stated that he would agree that a traffic study would be necessary; and
added that the Fire and Police Chiefs had each confirmed that their departments could support
the addition of this development; and that the developer would cover the infrastructure costs.
Councilmember Wandel stated that he was concerned about the angle at which Sublett Road
approaches Kennedale Parkway and other sightline concerns; the drainage and erosion issues in
the area; and whether or not UV was the best zoning for the residential portion.
Mayor Johnson stated that he agreed with statements made regarding the salvage yards; that he
had worked closely with KISD School Board President John Hunt regarding the Village at
Hammack Creek and numerous other projects; that he and City Manager Campbell were
arranging a meeting with Michael Morris, Director of Transportation for NCTCOG, and
representatives from TxDOT regarding the potential for straightening out the intersections on
Kennedale Parkway and installing a median; that traffic and drainage studies would be needed;
and noted the support of this project by the local businesses because of the added foot traffic. DRAFT UNTIL APPROVED BY COUNCIL
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CITY COUNCIL MINUTES | JULY 16, 2019
Motion passes 3-1, with Councilmember Rhodes voting against.
H. Consider approval of Ordinance 665, amending Chapter 15 “Nuisances” of the Kennedale
Municipal Code to add regulations regarding residential outdoor storage
Director of Planning & Economic Development Melissa Dailey stated that, for more consistent
code enforcement, there was a need for a clear definition of what is “junk” – which was provided
by Ordinance 665. She discussed some exceptions, particularly for those properties that had a
carport rather than a garage.
Mayor Johnson opened the Public Hearing at 8:50 p.m.
Sara Johnson Cotton, 700 Crestview Drive, spoke in opposition of Ordinance 665.
Mayor Johnson closed the Public Hearing at 8:52 p.m.
Dailey noted that movable toys and furniture designed for outdoor use were not subject to
screening requirements. In response to a question from Councilmember Rhodes, Dailey stated
that a utility trailer would be considered a vehicle and, thus, not subject to this ordinance.
Motion To Approve. Action Approve Ordinance 665, amending Chapter 15 “Nuisances” of the
Kennedale Municipal Code to add regulations regarding residential outdoor storage . Moved By
Mayor Pro Tem Lee. Seconded By Wandel. Motion passes unanimously.
I. Consider approval of Ordinance 666, amending Chapter 11 “Licenses, Taxation and
Miscellaneous Business Regulations” of the Kennedale Municipal Code to add regulations
regarding short-term rentals
Director of Planning & Economic Development Melissa Dailey stated that, in April, staff presented
options regarding the regulation of short-term rentals (rental of residential property for a term of
less than 30 days), and that feedback from Council had since been incorporated into Ordinance
666. She added that an annual permit would be required; that the number of people and vehicles
would be regulated; that advertising as an event venue would be prohibited; that there was a
distance regulation; and that proof of liability insurance was required. There was a brief discussion
about the potential uses of Hotel Occupancy Tax (HOT). Councilmember Pugh stated that he
believed the Ordinance addressed all concerns and thanked staff.
Motion To Approve. Action Approve Ordinance 666, amending Chapter 11 “Licenses, Taxation
and Miscellaneous Business Regulations” of the Kennedale Municipal Code to add regulations
regarding short-term rentals. Moved By Mayor Pro Tem Lee. Seconded By Wandel. Motion
passes unanimously.
THE COUNCIL DID NOT CONVENE INTO EXECUTIVE SESSION AT THIS TIME. THERE WAS AN EXECUTIVE SESSION
HELD IMMEDIATELY FOLLOWING THE WORK SESSION, BUT BEFORE THE REGULAR SESSION.
XIII. EXECUTIVE SESSION
A. Discussion with the City Attorney regarding settlement agreement between Ron Sturgeon, et
al and the City of Kennedale
B. Discussion with the City Attorney regarding salvage yard special exception/special use permits
C. Discussion with the City Attorney regarding an early termination and release agreement with
Global Water Management, LLC
D. Discussion with City Attorney regarding legal issues associated with Economic Development and
Performance Agreement, Tax Abatement, and Chapter 380 Agreement with Compressed Air
Systems for project located at Harris Corporation Addition, Block 1 Lot 1A2 (Linda Road)
E. Economic Development and Performance Agreement, Tax Abatement, and Chapter 380 DRAFT UNTIL APPROVED BY COUNCIL
Page 8 of 8
CITY COUNCIL MINUTES | JULY 16, 2019
Agreement with Compressed Air Systems for project located at Harris Corporation Addition, Block
1 Lot 1A2 (Linda Road)
XIV. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO
EXECUTIVE SESSION, IF NEEDED
THIS ITEM WAS TAKEN OUT OF ORDER. THE MOTION WAS MADE IMMEDIATELY FOLLOWING THE MOTION TO APPROVE XI.
REQUIRED APPROVAL ITEMS (CONSENT), BUT BEFORE DECISION ITEM XII.A.
Motion To Approve. Action Approve, pursuant to discussion during Executive Session, authorization of
the City Manager to negotiate, finalize, and execute an early termination and release agreement with
Global Water Management, LLC. Moved By Mayor Pro Tem Lee. Seconded By Wandel. Motion
passes unanimously.
XV. ADJOURNMENT
Motion To Adjourn. Action Adjourn. Moved By Rhodes. Seconded By Wandel. Motion passes
unanimously.
Mayor Johnson adjourned the meeting at 8:58 p.m.
APPROVED: ATTEST:
BRIAN JOHNSON, MAYOR LESLIE E. GALLOWAY, CITY SECRETARY
DRAFT UNTIL APPROVED BY COUNCIL
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: REQUIRED APPROVAL ITEMS (CONSENT) - B.
I. Subject:
Approval of the minutes from the August 8, 2019 Special Meeting
II. Originated by:
Leslie E. Galloway, City Secretary & Communications Coordinator
III. Summary:
Please see the attached minutes for your approval.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
VII. Alternative Actions:
VIII. Attachments:
1.2019_08.08_Minutes_City Council Special
Meeting_DRAFT
2019_08.08_Minutes_City Council Special
Meeting_DRAFT.pdf
KENNEDALE CITY COUNCIL MINUTES
SPECIAL MEETING | AUGUST 8, 2019 AT 5:30 PM
CITY HALL COUNCIL CHAMBERS, 405 MUNICIPAL DRIVE
I. CALL TO ORDER
Mayor Brian Johnson called the meeting to order at 5:30 p.m.
II. ROLL CALL
Present: Mayor Brian Johnson; Mayor Pro Tem Sandra Lee, Place 3; Josh Altom, Place 1;
Chris Pugh, Place 2; Linda Rhodes, Place 4; Chad Wandel, Place 5; Absent: NONE.
Staff: City Manager George Campbell, City Secretary & Communications Coordinator Leslie E.
Galloway, Finance Director Lakeita Sutton, Director of Planning & Economic Development Melissa
Dailey, Public Works Director Larry Hoover, Library Director Amanda King, Fir e Chief James Brown,
Police Chief Tommy Williams, and Accounting Technicians Debby Scott and Tanisha Cunningham
III. WORK SESSION
A. Receive a report and hold a discussion regarding the City Manager's Proposed Fiscal Year 2019-
2020 annual budget
City Manager George Campbell stated that the Proposed Fiscal Year 2019 -2020 Budget was not
required to be filed with the City Secretary until August 17, and that the Council should view the
version distributed prior to this meeting as a draft. He noted that several adjustments were
expected, including the health insurance increase (now projected at ~4.5% rather than 3%) and
compensation numbers. Campbell stated his intention to schedule further discussion of the budget
proposal during the Work Session of the August 20 Regular Meeting, adding that Directors were
available tonight to answer questions and urging the Council to forward any additional questions
to staff that might arise between now and the next meeting.
He went on to discuss the significant challenges resulting from, primarily, the adoption of the
FY18-19 Budget but not the tax rate necessary to support it. He added that the General Fund
balance was projected to be roughly 22% at the end of FY18-19 (due to savings in salary costs
via turnover and the purposeful delay of certain projects); however, if the Proposed Budget were
adopted in its current form , the fund balance was projected to drop below 3% for two years.
Campbell then presented highlights of the Proposed FY19-20 Budget and he and the Directors
were available to answer questions from the Council. Discussion included:
Overview of Budget Process and Next Steps
Funds Structure and a Review of Individual Funds
Major Assumptions and Highlights
Budget Enhancements (New or Expanded Programs)
Five-Year Projections
Specific discussion items included the water contracts with the City Arlington; the delay of both the
civilian compensation adjustments and the continued and planned implementation of the public
safety step plan that were included in the FY18-19 Adopted Budget; delays in transfers from the
General Fund to the Capital Replacement Fund; end-of-year balance projections for various
funds; the proposed implementation of a street maintenance fee; the 9% increase in property
valuations and a proposed ~$0.01 increase in the ad valorem tax rate (from $0.725714/$100 to
$0.734970/$100); $208,000 in other new programs (including incremental replacement of self-
contained breathing apparatus for the Fire Department and an added Police Of ficer and Planner I DRAFT UNTIL APPROVED BY COUNCIL
Page 2 of 2
CITY COUNCIL MINUTES | AUGUST 8, 2019
position); a projected drawdown of $854,000 in FY19-20 (leaving the General Fund balance at an
estimated 8.05% (with a plan to recover to 15-17% in a few years); the negotiations to terminate
the City’s contract with Global Water FATHOM; a recommended increase in the transfer (from 5%
to 7%) from the Water Fund to the Street Fund; a recommendation against adjusting water utility
rates at this time; staff’s research into the possibility of moving the Streets Department back under
the General Fund; a recommended $1.00 increase in the Stormwater Fee (to $4.50); a projected
4% increase in sales tax revenue; the potential issuance of $2 million in tax notes before the end
of the calendar year (with no impact to the debt service portion of the tax rate); development
within the TIRZ; assumptions behind the five-year projections; and potential impacts on the bond
rating.
Mayor Johnson requested that staff present a comparison of other Cities’ Stormwater Fees.
Councilmember Rhodes suggested raising that fee by $0.50 rather than $1.00. There was a
consensus among the Council that employee compensation and benefits should be prioritized;
and they thanked the staff for their time and dedication throughout the budget process.
Finance Director Lakeita Sutton noted that by decreasing the FY18-19 tax rate (via adoption of
the Effective Rate) – the City had reduced revenues by almost $400,000, and should now aim to
recover lost ground.
City Manager George Campbell thanked Sutton for her time and expertise and recognized
Accounting Technician Debby Scott for guiding staff through the development of this budget in her
role as Interim Finance Director.
IV. REGULAR SESSION
V. DECISION ITEMS
A. Discuss and consider approval of a Resolution of the City Council of the City of Kennedale,
Texas, approving the placement of a proposal on the September 17, 2019 City Council Public
Meeting agenda to adopt a 2019 tax rate that may exceed the lower of the rollback rate or the
effective tax rate; calling public hearings on September 5, 2019 and September 13, 2019 (if
necessary)
Motion To Approve. Action Approve, Resolution 555 of the City Council of the City of Kennedale,
Texas, approving the placement of a proposal on the September 17, 2019 City Council Public
Meeting agenda to adopt a 2019 tax rate that may exceed the lower of the rollback rate or the
effective tax rate; calling public hearings on September 5, 2019 and September 13, 2019 (if
necessary). Moved By Pugh. Seconded By Altom. Motion passes unanimously.
VI. ADJOURNMENT
Motion To Adjourn. Action Adjourn. Moved By Mayor Pro Tem Lee. Seconded By Wandel. Motion
passes unanimously.
Mayor Johnson adjourned the meeting at 7:03 p.m.
APPROVED: ATTEST:
BRIAN JOHNSON, MAYOR LESLIE E. GALLOWAY, CITY SECRETARY
DRAFT UNTIL APPROVED BY COUNCIL
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: REQUIRED APPROVAL ITEMS (CONSENT) - C.
I. Subject:
Consider adopting Resolution 556, amending authorized representatives of TEXPOOL local government investment
pool
II. Originated by:
Lakeita Sutton, Director of Finance and Information Technology
III. Summary:
The attached resolution amends authorized representatives for TEXPOOL. By approving the resolution, Council will
be designating Finance Director Lakeita Sutton and Accounting Technician Debby Scott as authorized representatives
to transmit local funds for investments. Lakeita Sutton will be the primary representative, performing transactions and
receiving confirmations of monthly statements.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
Approve
VII. Alternative Actions:
VIII. Attachments:
1.R556 Amending TEXPOOL Authorized Users R556 Amending TEXPOOL Authorized Users.pdf
Page 1 of 2
R556 CITY OF KENNEDALE, TX 2019
RESOLUTION NO. 556
A RESOLUTION OF THE CITY OF KENNEDALE, TEXAS, AMENDING
AUTHORIZED REPRESENTATIVES OF TEXPOOL LOCAL
GOVERNMENT INVESTMENT POOL.
WHEREAS, the City of Kennedale (the "Participant") is a local government of the
State of Texas and is empowered to delegate to a public funds investment Pool the
authority to invest funds and to act as custodian of investments purchased with local
investment funds; and
WHEREAS, it is in the best interest of the City of Kennedale, Texas, to invest
local funds in investments that provide for the preservation and safety of principal,
liquidity, and yield consistent with the Public Funds Investment Act; and
WHEREAS, the TexasPool Local Government Investment Portfolio, a public
funds investment pool (a “Pool”), was created on behalf of entities whose investment
objectives in order of priority are preservation and safety of principal, liquidity, and yield
consistent with the Public Funds Investment Act.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF
THE CITY OF KENNEDALE, TEXAS:
A. That the City of Kennedale, Texas, shall amend authorized representatives, for
the purpose of transmitting local funds for investment in the TexasPool series.
The form of application for amendment to this resolution is approved.
B. That the individuals, whose signatures appear in this Resolution, are Authorized
Representatives of the City of Kennedale, Texas, and are each hereby
authorized to transmit funds for investment in the Pool and are each further
authorized to withdraw funds from time to time, to issue letters of instruction, and
to take all other actions deemed necessary or appropriate for the investment of
local funds.
C. That the City of Kennedale, Texas, may by Amending Resolution change
Authorized Representatives provided the additional Authorized Representative is
an officer, employee, or agent of the City of Kennedale.
List of the Authorized Representatives of the City of Kennedale, Texas.
These individuals may be issued P.I.N. Numbers.
1. Name: Lakeita Sutton Title: Finance Director
2. Name: Debby Scott Title: Accounting Technician
List the name of the Authorized Representative provided above that will
have primary responsibility for performing transactions and receiving
Page 2 of 2
R556 CITY OF KENNEDALE, TX 2019
confirmations and monthly statements under the Participation Agreement.
Name: Lakeita Sutton Title: Finance Director
D. That this Resolution and its authorization shall continue in full force and effect
until amended or revoked by the Participant and until the Pool receives a copy of
any such amendment or revocation.
DULY PASSED, ADOPTED, AND APPROVED BY THE CITY COUNCIL OF THE
CITY OF KENNEDALE, TEXAS, ON THE 20TH DAY OF AUGUST, 2019.
APPROVED:
______________________________ MAYOR BRIAN JOHNSON
[ C I T Y S E A L
ATTEST:
______________________________
CITY SECRETARY LESLIE E. GALLOWAY
APPROVED AS TO FORM AND LEGALITY:
______________________________
CITY ATTORNEY DREW LARKIN
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: REQUIRED APPROVAL ITEMS (CONSENT) - D.
I. Subject:
Consider adopting Resolution 557, amending authorized representatives for the Texas Short-Term Asset Reserve
Program (TexSTAR) local government investment pool
II. Originated by:
Lakeita Sutton, Director of Finance and Information Technology
III. Summary:
The attached resolution amends authorized representatives for TexSTAR. By approving the resolution, Council will be
designating Finance Director Lakeita Sutton and Accounting Technician Debby Scott as authorized representatives to
transmit local funds for investments. Lakeita Sutton will be the primary representative, performing transactions and
receiving confirmations of monthly statements.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
Approve
VII. Alternative Actions:
VIII. Attachments:
1.R557 Amending TEXStar Authorized Users R557 Amending TEXStar Authorized Users_FINAL.pdf
Page 1 of 2
R557 CITY OF KENNEDALE, TX 2019
RESOLUTION NO. 557
A RESOLUTION OF THE CITY OF KENNEDALE, TEXAS, AMENDING
AUTHORIZED REPRESENTATIVES OF TEXAS SHORT TERM ASSET
RESERVE PROGRAM (TEXSTAR) LOCAL GOVERNMENT
INVESTMENT POOL.
WHEREAS, the City of Kennedale (the "Participant") is a local government of the
State of Texas and is empowered to delegate to a public funds investment Pool the
authority to invest funds and to act as custodian of investments purchased with local
investment funds; and
WHEREAS, it is in the best interest of the City of Kennedale, Texas, to invest
local funds in investments that provide for the preservation and safety of principal,
liquidity, and yield consistent with the Public Funds Investment Act; and
WHEREAS, the TEXSTAR Local Government Investment Portfolio, a public
funds investment pool (a “Pool”), was created on behalf of entities whose investment
objectives in order of priority are preservation and safety of principal, liquidity, and yield
consistent with the Public Funds Investment Act.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF
THE CITY OF KENNEDALE, TEXAS:
A. That the City of Kennedale, Texas, shall amend authorized representatives, for
the purpose of transmitting local funds for investment in the TEXSTAR series.
The form of application for amendment to this resolution is approved.
B. That individuals, whose signatures appear in this Resolution, are Authorized
Representatives of the City of Kennedale, Texas, and are each hereby
authorized to transmit funds for investment in the Pool and are e ach further
authorized to withdraw funds from time to time, to issue letters of instruction, and
to take all other actions deemed necessary or appropriate for the investment of
local funds.
C. That the City of Kennedale, Texas, may by Amending Resolution change
Authorized Representatives provided the additional Authorized Representative is
an officer, employee, or agent of the City of Kennedale.
List of the Authorized Representatives of the City of Kennedale, Texas.
These individuals may be issued P.I.N. Numbers.
1. Name: Lakeita Sutton Title: Finance Director
2. Name: Debby Scott Title: Accounting Technician
List the name of the Authorized Representative provided above that will
Page 2 of 2
R557 CITY OF KENNEDALE, TX 2019
have primary responsibility for performing transactions and receiving
confirmations and monthly statements under the Participation Agreement.
Name: Lakeita Sutton Title: Finance Director
D. That this Resolution and its authorization shall continue in full force and effect
until amended or revoked by the Participant and until the Pool receives a copy of
any such amendment or revocation.
DULY PASSED, ADOPTED, AND APPROVED BY THE CITY COUNCIL OF THE
CITY OF KENNEDALE, TEXAS, ON THE 20TH DAY OF AUGUST, 2019.
APPROVED:
______________________________ MAYOR BRIAN JOHNSON
[ C I T Y S E A L
ATTEST:
______________________________
CITY SECRETARY LESLIE E. GALLOWAY
APPROVED AS TO FORM AND LEGALITY:
______________________________
CITY ATTORNEY DREW LARKIN
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: REQUIRED APPROVAL ITEMS (CONSENT) - E.
I. Subject:
Consider adopting Resolution 558, amending authorized representatives for the TexasTERM / TexasDAILY local
government investment pool
II. Originated by:
Lakeita Sutton, Director of Finance and Information Technology
III. Summary:
The attached resolution amends authorized representatives for TexasTERM / TexasDAILY. By approving the
resolution, Council will be designating Finance Director Lakeita Sutton and Accounting Technician Debby Scott as
authorized representatives to transmit local funds for investments. Lakeita Sutton will be the primary representative,
performing transactions and receiving confirmations of monthly statements.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
Approve
VII. Alternative Actions:
VIII. Attachments:
1.R558 Amending TexasTERM Authorized Users R558 Amending TexasTERM Authorized Users.pdf
Page 1 of 2
R558 CITY OF KENNEDALE, TX 2019
RESOLUTION NO. 558
A RESOLUTION OF THE CITY OF KENNEDALE, TEXAS, AMENDING
AUTHORIZED REPRESENTATIVES OF TEXAS TERM/TEXAS DAILY
LOCAL GOVERNMENT INVESTMENT POOL.
WHEREAS, the City of Kennedale (the "Participant") is a local government of the
State of Texas and is empowered to delegate to a public funds investment Pool the
authority to invest funds and to act as custodian of investments purchased with local
investment funds; and
WHEREAS, it is in the best interest of the City of Kennedale, Texas, to invest
local funds in investments that provide for the preservation and safety of principal,
liquidity, and yield consistent with the Public Funds Investment Act; and
WHEREAS, the Texas Term/Texas Daily Local Government Investment
Portfolio, a public funds investment pool (a “Pool”), was created on behalf of entities
whose investment objectives in order of priority are preservation and safety of principal,
liquidity, and yield consistent with the Public Funds Investment Act.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF
THE CITY OF KENNEDALE, TEXAS:
A. That the City of Kennedale, Texas, shall amend authorized representatives, for
the purpose of transmitting local funds for investment in the Texas Term/Texas
Daily series. The form of application for amendment to this resolution is
approved.
B. That individuals, whose signatures appear in this Resolution, are Authorized
Representatives of the City of Kennedale, Texas, and are each hereby
authorized to transmit funds for investment in the Pool and are each further
authorized to withdraw funds from time to time, to issue letters of instruc tion, and
to take all other actions deemed necessary or appropriate for the investment of
local funds.
C. That the City of Kennedale, Texas, may by Amending Resolution change
Authorized Representatives provided the additional Authorized Representative is
an officer, employee, or agent of the City of Kennedale.
List of the Authorized Representatives of the City of Kennedale, Texas.
These individuals may be issued P.I.N. Numbers.
1. Name: Lakeita Sutton Title: Finance Director
2. Name: Debby Scott Title: Accounting Technician
List the name name of the Authorized Representative provided above that
Page 2 of 2
R558 CITY OF KENNEDALE, TX 2019
will have primary responsibility for performing transactions and receiving
confirmations and monthly statements under the Participation Agreement.
Name: Lakeita Sutton Title: Finance Director
D. That this Resolution and its authorization shall continue in full force and effect
until amended or revoked by the Participant and until the Pool receives a copy of
any such amendment or revocation.
DULY PASSED, ADOPTED, AND APPROVED BY THE CITY COUNCIL OF THE
CITY OF KENNEDALE, TEXAS, ON THE 20TH DAY OF AUGUST, 2019.
APPROVED:
______________________________ MAYOR BRIAN JOHNSON
[ C I T Y S E A L
ATTEST:
______________________________
CITY SECRETARY LESLIE E. GALLOWAY
APPROVED AS TO FORM AND LEGALITY:
______________________________
CITY ATTORNEY DREW LARKIN
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: REQUIRED APPROVAL ITEMS (CONSENT) - F.
I. Subject:
Consider approval of amended interlocal agreement with Kennedale ISD for the provision of two School Resource
Officers (SRO)
II. Originated by:
Tommy Williams, Police Chief
III. Summary:
Attached is an updated contract for School Resource Officers (SROs) for the Kennedale Independent School District
(KISD). The SRO program began as a COPS grant in 2004. In 2007, when the grant completed its funding cycle, the
City assumed the cost of the program in conjunction with KISD. The salary, benefits, and equipment costs are shared
equally between the City and the District.
KISD requested to update the contract this year due to the creation of a position for a Safety and Security Director
position. This position will replace the campus principals as the primary district contact for the SROs. All other duties
and responsibilities remain in effect.
The City Attorney has reviewed and approved the contract.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
Approve
VII. Alternative Actions:
Staff recommends approval.
VIII. Attachments:
1.Final SRO Agreement 2018 SRO Interlocal Agreement 2019.pdf
Page 1 of 8
2019 INTERLOCAL AGREEMENT FOR
SCHOOL RESOURCE OFFICERS (SRO)
CITY OF KENNEDALE / KENNEDALE ISD
STATE OF TEXAS §
§
COUNTY OF TARRANT §
INTERLOCAL AGREEMENT FOR
SCHOOL RESOURCE OFFICERS
This Interlocal Agreement for School Resource Officers (“Agreement”) is made between
the Kennedale Independent School District (“District”) and the City of Kennedale (“City”) for
the purpose of establishing the terms under which the City will provide the District with School
Resource Officers (“SRO”s). Pursuant to the provisions of the Interlocal Cooperation Act, Tex as
Government Code Chapter 791, as amended, the parties to this Agreement have determined that
the most economic and efficient manner to fulfill their obligations to the young people that are
enrolled in the District and to the tax paying citizens of the City and the District is to enter into
this interlocal cooperative Agreement between and among themselves and therefore have agreed
and do hereby agree, as follows:
I. CITY RESPONSIBILITIES
(a) School Resource Officers (SROs)
(1) Officers provided. The City agrees to assign two 2 police officers to serve
as SROs to the (4) District campuses located within the Kennedale city
limits as well as non-enforcement services to (1) campus outside of the
Kennedale city limits. The SROs will be primarily assigned to the high
school and junior high school but will respond to requests from Director of
School Safety and Security or other school principals within the District.
(2) Functions. The SROs shall have the following responsibilities:
(A) provide campus security and safety to the District’s students,
personnel, and any person in the jurisdiction of the SROs, in
accordance with the duties of a commissioned police officer of the
City;
(B) assist in limiting access to the school grounds to authorized
persons;
(C) eject a person from school property under the District’s control in
accordance with Penal Code 30.05;
(D) investigate and deter criminal acts on school grounds;
(E) serve as liaison between the school, police department, juvenile
officials, probation officials, courts, and other agencies of the
juvenile justice system;
Page 2 of 8
2019 INTERLOCAL AGREEMENT FOR
SCHOOL RESOURCE OFFICERS (SRO)
CITY OF KENNEDALE / KENNEDALE ISD
(F) attempt to identify and counter deviant behavior, such as gang
activity, through information gained from assistance to young
people and performance of other responsibilities;
(G) at least once each school year offer to provide instruction to
elementary students in a firearms accident prevention program, as
determined by the District, pursuant to Texas Occupations Code
Section 1701.603;
(H) be available as a resource to teach, lead a discussion, or offer
information on topics on which the SRO has special competence
due to law enforcement training, such as safety or drug education;
and
(I) take a pro-active role to provide a high visibility crime deterrent
and police presence on school property, including, but not limited
to, buildings, parking lots, and athletic fields, in order to
effectively promote security and order in the schools.
(b) Working conditions. The City shall assign the SROs to work Monday through
Friday during the regular school term with a shift beginning 30 minutes before the
start of the school day and ending 30 minutes after school is dismissed, with a 30-
minute lunch break. Average number of hours worked each week will be no more
than 40 hours. Authorization must be obtained in writing from the Kennedale
Chief of Police or his designee prior to an SRO working in excess of 40 hours in
any given week. Saturdays and Sundays are normal days off unless otherwise
directed by the Director of School Safety and Security or Kennedale Police
Department administration. SROs observing school holidays in excess of City
recognized holidays will use appropriate compensatory, vacation, or other
approved forms of City leave.
(c) Unavailability. In the event a SRO is absent from work, he is to notify both his
supervisor at the Kennedale Police Department and the Director of School Safety
along with the principal of the SRO’s assigned school. The District agrees and
acknowledges that the SRO may be required to leave the District campuses during
school hours as necessary to fulfill the SRO’s duties as a police officer. These
duties include, but are not limited to, attending mandated training, court, traveling
to the detention center, and making arrests. The City shall provide the District
notice by notifying the Director of School Safety when the SRO will be
unavailable due to training, court, or other required assignments ten (10) days
prior or, when ten (10) days prior notice is not possible, as soon as City becomes
aware of such conflict. The parties agree that every effort should be made to
schedule and/or designate vacation days, compensatory time, and other days off at
times when school is not in session or at other times when the absence of a SRO
will not otherwise create an unnecessary risk or hamper school operations.
Page 3 of 8
2019 INTERLOCAL AGREEMENT FOR
SCHOOL RESOURCE OFFICERS (SRO)
CITY OF KENNEDALE / KENNEDALE ISD
(d) Direction. The SRO shall remain an employee of the City and shall be assigned
by and responsible to the Kennedale Police Department, but shall work upon the
request and with the direction of the District’s Director of Safety and Security or
his designee.
(e) Reassignment. If a school principal or Director of Safety and Security is not
satisfied with the performance of the SRO assigned to the school, the y may
request in writing the transfer of the SRO, specifying the reason for the request.
The Chief of Police for the Kennedale Police Department will then make a
reasonable effort to replace the SRO.
(f) Training and equipment. The SRO shall wear a police uniform and carry a
service weapon while on duty at the school. The City agrees to provide the SRO
with office supplies and all forms required in the performance of his duties. The
City shall provide law enforcement training and certification as required by law, a
City police vehicle and other police equipment including communication
equipment necessary to allow the SRO to communicate with the City Police
Department and other officers. The SROs must be licensed as provided by
Occupations Code Chapter 1701. The District shall provide any equipment
necessary to allow the SRO to communicate with school staff if desired by the
District.
(g) Law enforcement. The SRO shall take law enforcement action when necessary,
but shall not be utilized as a school disciplinarian in the enforcement of District
rules or policies. The SRO shall notify the school principal of all occurrences of
crime on District campuses, and all custodial arrests or detentions of a student.
The SRO shall notify the school principal prior to removing a student from
school. The SRO shall follow the guidelines of the Texas Penal Code, Texas
Education Code, Texas Code of Criminal Procedure, Texas Occupations Code
Chapter 1701, District Policies and Safety Programs, and the Policies and
Procedures of the Kennedale Police Department regarding investigations,
interviews, and searches relating to juveniles.
(h) Confidentiality. In carrying out duties, SROs shall at all times recognize and respect the
confidentiality of student and education records and shall seek access to such records only in
accordance with the requirements of the Family Education Rights and Privacy Act, 20
U.S.C.§1232g and its implementing regulations 34 C.F.R. Part 99 (“FERPA”) and District Board
Policy FL (LEGAL) and (LOCAL). The District agrees to provide SROs access to student
records to the extent permitted under FERPA. All SROs provided with student records shall
follow the same rules as District employees concerning privacy of the records and shall return
the records to the District upon completion of their assignment. City agrees that any student
information obtained from the District will be used solely for legitimate educational purposes in
accordance with all applicable, federal, state, and local laws, rules and regulations. The City
Page 4 of 8
2019 INTERLOCAL AGREEMENT FOR
SCHOOL RESOURCE OFFICERS (SRO)
CITY OF KENNEDALE / KENNEDALE ISD
agrees to provide the District access to information, to the extent required or permitted by law,
pertinent to the safety of any party that the District is responsible for, and all information
pertinent to investigations. Nothing contained herein shall restrict an officer’s method of
response during health or safety emergencies, investigations of criminal activity, or response to
behavior that violates criminal laws or threatens the safety of a student or others.
II. DISTRICT RESPONSIBILITIES
(a) Cooperation. The District agrees to fully cooperate with the City in the
implementation of this Agreement.
(b) Selection of SROs. The Kennedale Police Department and the District staff will
jointly select the SROs.
(c) Prompt payment. The District shall remit funds to the City in a timel y manner
following receipt of a City invoice.
(d) Office Space. The District agrees to provide the SROs with an office containing
appropriate furnishings and a computer workstation capable of connecting to the
Police Department Local Area Network. The SRO may be required to sign an
Acceptable Use Agreement regarding use of District computer networks and
internet access.
III. CONSIDERATION
(a) Source of funding. Each party paying for the performance of services required by
this Agreement shall make those payments from current revenues available to the
paying party.
(b) Payments by District. The District agrees to pay the City an amount equal to
fifty percent (50%) of all personnel costs incurred by the City under this
Agreement, including Base Pay, Salary Increases, Longevity Pay, Incentive Pay,
Bilingual Pay, FLSA, Court Attendance Costs, Medicare, Workers’
Compensation Insurance, Group Health Insurance, and Retirement. The City will
provide an estimate each year to the district outlining the cost for the next fiscal
year’s agreement. These payments shall be made to the City in four equal
payments to be paid by the 20th day of each month following the completion of a
calendar quarter.
(c) Renegotiated annually. The payments under this Agreement shall be renegotiated
annually and changes shall be documented by letter agreement on or before
August 1 of each year. If a letter agreement is executed, this Agreement shall be
automatically renewed for successive one-year terms, provided however, that any
Page 5 of 8
2019 INTERLOCAL AGREEMENT FOR
SCHOOL RESOURCE OFFICERS (SRO)
CITY OF KENNEDALE / KENNEDALE ISD
payment is subject to the District’s budget appropriation of this purpose.
IV. TERM
(a) Initial term. The term of this Agreement is for a period of one year beginning on
September 1, 2019 and ending on August 31, 2020.
(b) Additional terms. This Agreement shall be automatically renewed for successive
one-year terms unless in any year the parties are unable to agree on renegotiated
compensation or one party notifies the other in writing of termination of at least
sixty (60) days before the expiration of the term.
V. INDEPENDENT CONTRACTOR RELATIONSHIP
The City shall perform its obligations under this Agreement as an independent contractor
and not as an officer, agent, servant or employee of the District. The City shall be solely
responsible for the acts and omissions of its officers, members, agents, servants, employees,
subcontractors, program participants, licensees or invitees. The doctrine of respondeat superior
shall not apply as between the City and the District, its officers, members, agents, servants,
employees, subcontractors, program participants, licensees or invitees, and nothing herein shall
be construed as creating a partnership or joint enterprise between the City and the District. It is
expressly understood and agreed that no officer, member, agent, employee, subcontractor,
licensee, or invitee of the District, or any program participant hereunder is in the paid service of
the City. It is also expressly understood that the police officers assigned to this program are
employees of the City of Kennedale, and will be paid by the City of Kennedale. The Kennedale
Chief of Police may discipline, reassign, or dismiss the SRO based upon the City of Kennedale
and Kennedale Police Department policies and procedures. In the event an assigned SRO is
reassigned or dismissed, the City shall provide a replacement officer. In the event that the SRO is
reassigned or dismissed, the District will not be required to compensate City for the affected
SRO for the time period for which the SRO is removed and no replacement is available. Further,
City will reimburse the District for any time period not served by the SRO and for which City
has already received payment.
VI. NOTICES AND ADMINISTRATION
District and City shall each monitor, review and provide oversight of the services as they are
provided and each agrees to notify the other as soon as reasonably possible in the event the level
or quality of any services becomes unsatisfactory.
All notices, communications and reports required or permitted under this Agreement shall be
personally delivered to the respective parties, by depositing same in the United States mail,
postage prepaid, at the addresses shown below, unless and until either party is subsequently
notified otherwise in writing.
Page 6 of 8
2019 INTERLOCAL AGREEMENT FOR
SCHOOL RESOURCE OFFICERS (SRO)
CITY OF KENNEDALE / KENNEDALE ISD
If intended for City, to: If intended for District, to:
Kennedale Police Chief Director of Safety and Security
401 Municipal Drive Kennedale Independent School District
Kennedale, TX 76060 120 W. Kennedale Parkway
Kennedale, TX 76060
VII. MISCELLANEOUS PROVISIONS
(a) District property. The City is not responsible for any property belonging to the
District, its officers, members, agents, employees, subcontractors, program
participants, licensees or invitees, which may be lost, destroyed, or damaged.
(b) Non-discrimination - age. Both parties agree that neither it nor any of this
officers, members, agents, employees, program participants, or subcontractors,
while engaged in performing this Agreement shall in connection with the
employment, advancement, or discharge of employees, or in connection with the
terms, conditions or privileges of their employment, discriminate against persons
because of their age, except on the basis of a bona fide occupational qualification,
retirement plan, or statutory requirement.
(c) Non-discrimination - other. Both parties, in the performance of this Agreement,
will not discriminate against any person or persons because of sex, race, religion,
color, disability, national origin, nor will either party permit its agents, employees,
subcontractors, program participants, licensees or invitees to engage in such
discrimination.
(d) Termination. The District and the City agree that if either party to this
Agreement fails to comply with or breaches any of the material terms and
provisions of this Agreement, the non-breaching party shall have the right to
declare this Agreement immediately terminated, and the non-breaching party shall
have no further responsibility or liability hereunder. Even without breach, this
Agreement may be terminated by either party at its sole option and without
prejudice by giving thirty (30) days written notice of termination to the other
party.
(e) Severability. The provisions of this Agreement are severable and if for any
reason a clause, sentence, paragraph or other part of this Agreement shall be
determined to be invalid by a court or federal or state agency, board or
commission having jurisdiction over the subject matter thereof, such invalidity
shall not affect other provisions which can be given effect without the invalid
provision.
Page 7 of 8
2019 INTERLOCAL AGREEMENT FOR
SCHOOL RESOURCE OFFICERS (SRO)
CITY OF KENNEDALE / KENNEDALE ISD
(f) Enforcement. The failure of either party to insist upon the performance of any
term or provision of this Agreement or to exercise any right conferred by this
Agreement shall not be construed as a waiver or relinquishment of that party’s
right to assert or rely upon any term or right on any future occasion.
(g) Venue. This Agreement is entered into and performable in Tarrant County, Texas
and shall be interpreted and enforced in accordance with the laws of the State of
Texas. Should any claim or action, whether real or asserted, at law or in equity,
arise out of the execution, performance, attempted performance or non-
performance of this Agreement, venue shall lie in Tarrant County, Texas.
(h) Entire agreement. This written instrument constitutes the entire agreement by
the parties concerning school resource officers, and any prior or
contemporaneous, oral or written agreement which purports to vary from the
terms of this Agreement is void. This Agreement has been approved by the
governing bodies of each party. Changes in the total number of SROs to be
provided by the City and the duty hours to be worked by the SROs shall be
determined by mutual consent of the parties.
(i) Attorney’s Fees. The City and the District expressly agree that in the event of an
adjudication of a claim which includes a legal proceeding brought under or
relating in any way to this Interlocal Agreement For School Resource Officers,
the prevailing party shall recover its reasonable and necessary attorney’s fees as
authorized by Texas Local Government Code 271.159.
(j) Immunity. This Agreement is expressly made subject to the City and
District’s governmental immunity under the Texas Civil Practice and Remedies
Code and all applicable federal, state, and local laws, rules, regulations,
ordinances, and policies. Nothing in this Agreement shall be deemed to waive,
modify or amend any legal defense available at law or in equity to City or District
or to create any legal rights or claim on behalf of any third party. Neither City nor
District waive, modify or alter to any extent whatsoever the availability of the
defense of governmental immunity under the laws of the State of Texas.
(k) Counterparts. This Agreement may be executed in an y number of
counterparts, each of which shall be deemed an original and constitute one and the
same instrument.
EXECUTED this _________ day of __________________, 2019
Page 8 of 8
2019 INTERLOCAL AGREEMENT FOR
SCHOOL RESOURCE OFFICERS (SRO)
CITY OF KENNEDALE / KENNEDALE ISD
SIGNATURE PAGE
FOR INTERLOCAL AGREEMENT FOR
SCHOOL RESOURCE OFFICERS
CITY OF KENNEDALE KENNEDALE INDEPENDENT
SCHOOL DISTRICT
BY: BY:
_________________________________ _________________________________
CITY MANAGER GEORGE CAMPBELL PRESIDENT, BOARD OF TRUSTEES
DATE: DATE:
_________________________________ _________________________________
ATTEST: ATTEST:
_________________________________ _________________________________
CITY SECRETARY LESLIE E. GALLOWAY SECRETARY, BOARD OF TRUSTEES
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: REQUIRED APPROVAL ITEMS (CONSENT) - G.
I. Subject:
Consider appointment of Martin Young as Vice Chair of the Board of Adjustment (BOA) / Building Board of Appeals
(BBA)
II. Originated by:
Melissa Dailey, Director of Planning & Economic Development
III. Summary:
The Board of Adjustment (BOA) / Building Board of Appeals (BBA), during their August 5, 2019 meeting, nominated
and would respectfully request that Council appoint Martin Young as Vice Chair of the Board.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
Approve
VII. Alternative Actions:
VIII. Attachments:
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: DECISION ITEMS - A.
I. Subject:
Case #PZ19-02 — Consider an ordinance 667 and request by Spirals Gymnastics, Inc. for a rezoning from "PD-UV"
Planned Development Urban Village to "UV" of approximately 2 acres at 1083 Bowman Springs Road, Block 1, Lot
19R, Woodlea Acres Addition, City of Kennedale, Texas
II. Originated by:
Melissa Dailey, Director of Planning & Economic Development
III. Summary:
This case was originally presented to Council at the July 16, 2019 meeting, at which time the required public hearing
was held. A motion was made by Council to approve the application, but the motion did not pass. No subsequent
motion was made, and, therefore, no decision has been made by the Council at this point. Staff will be available to
answer questions and respectfully requests a vote from the Council regarding this matter at this time.
BACKGROUND AND OVERVIEW
Request Rezone from “PD-UV” Planned Development Urban Village to “UV” Urban Village
Applicant Spirals Gymnastics, Inc.
Location 1083 Bowman Springs Road
Surrounding Uses Single family, schools, industrial
Surrounding Zoning PD-UV1, R3, R1
Future Land Use Plan Designation Residential
Staff Recommendation Approve
CURRENT STATUS OF PROPERTY
The property is currently in use by Spiral Gymnastics, Inc.
SURROUNDING PROPERTIES & NEIGHBORHOOD
The property fronts Bowman Springs Road, an arterial thoroughfare that connects Kennedale Parkway to Interstate
20 to the northeast. Surrounding properties are mixed and include the Fellowship Academy, Kennedale Junior High
School, single family, vacant commercially zoned property, and an industrial park.
STAFF REVIEW
Future Land Use Plan
The Future Land Use Plan indicates this property as residential but adjacent to Urban Village at the corner of Bowman
Springs and Kennedale Parkway The UV District is established to provide an area with an intense mix of uses in a
compact, walkable urban form, transitioning down in intensity toward and complementing surround residential
neighborhoods. Given the location fronting an arterial roadway, a mix of uses is appropriate for this site and this
commercial corridor.
Related Goals From the Comprehensive Land Use Plan
The comprehensive plan goal related to this rezoning request falls under:
PRINCIPLE 1: CONNECTED CITY. SUPPORTING A WALKABLE BUILT ENVIRONMENT.
As land development creates the demand to travel, ensure that it reduces the need to drive by providing
ample direct connections for pedestrians, bicycles, and transit.
PRINCIPLE 2: ECONOMIC PROSPERITY. PROMOTE ACCESS TO HOUSING.
Providing housing options for people of varying financial means and residential preferences. Provide the
regulatory framework and developer support to provide quality housing for residents. Create job opportunities
in Kennedale that help stabilize the local tax base and allow residents to work close to home.
PRINCIPLE 3: THRIVING COMMUNITY. CREATE VIBRANT CENTERS.
Promote social integration and economic activity through the development of different scale centers
throughout the community.
City Council Ends Statements and Goals
Kennedale has excellent neighborhoods and a wide range of home options.
Business uses are compatible with residential areas.
Well planned community based on principles of a connected city, economic prosperity, and a thriving
community.
SUMMARY
The property owner worked with City staff in 2015 to rezone the property to PD-UV1, with the anticipation of a new
zoning code being adopted and the property zoning then changed to UV. The Unified Development Code (UDC) was
adopted by City Council in 2016. The owner is following up on the plan to rezone to UV now that that zoning category
is available. The existing building on the site alone would not meet the UV requirements and would become a legal
non-conforming use. However, any changes to the building or to the property would need to comply with UV zoning
requirements. Staff believes that UV is an appropriate use for this site and creates the potential of high-quality mixed-
use development in the future. The Planning & Zoning Commission denied the request to rezone with a 4-3 vote at
their regular meeting on June 27, 2019.
STAFF RECOMMENDATION
Based on the above analysis, staff recommends approval of the rezoning.
ACTION BY THE CITY COUNCIL
Approval: Based on the information presented, I find that the request meets city requirements and is in
compliance with the comprehensive land use plan and make a motion to approve the request for rezoning.
Deny: Based on the information presented, I find that the proposed use does not meet (list standards or
requirements not met) and make a motion to deny the request.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
Approve
VII. Alternative Actions:
VIII. Attachments:
1.2015_04.27 Spirals Gymnastics Letter 2015_04.27 Spirals Gymnastics Letter.pdf
2.O667_1083BowmanSpringsZoningUV_Spirals_PZ19
-02
O667_1083BowmanSpringsZoningUV_Spirals_PZ19-
02_FINAL.pdf
PAGE 1 OF 4, INCLUDING “EXHIBIT A”
O667 CITY OF KENNEDALE, TX 2019
ORDINANCE NO. 667
AN ORDINANCE AMENDING THE UNIFIED DEVELOPMENT CODE OF
THE CITY OF KENNEDALE, TEXAS, BY CHANGING THE ZONING
CLASSIFICATION OF CERTAIN PROPERTY WITHIN THE CITY OF
KENNEDALE, BEING APPROXIMATELY 1.88 ACRES DESCRIBED AS
LOT 1, BLOCK 19R, WOODLEA ACRES ADDITION, FROM “PD-UV1”
PLANNED DEVELOPMENT URBAN VILLAGE DISTRICT TO “UV”
URBAN VILLAGE DISTRICT; PROVIDING FOR THE AMENDMENT OF
THE OFFICIAL ZONING MAP TO REFLECT SUCH CHANGE;
PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF
ALL ORDINANCES; PROVIDING A SAVINGS CLAUSE; PROVIDING
FOR A PENALTY CLAUSE; PROVIDING A SEVERABILITY CLAUSE;
PROVIDING FOR PUBLICATION IN THE OFFICIAL NEWSPAPER;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Kennedale, Texas, is a home rule city acting under its
charter adopted by the electorate pursuant to Article XI, Section 5, of the Texas
Constitution and Chapter 9 of the Local Government; and
WHEREAS, pursuant to Chapter 211 of the Local Government Code, the City
has adopted a comprehensive zoning ordinance and map regulating the location and
use of buildings, other structures and land for business, industrial, residential or other
purposes, for the purpose of promoting the public health, safety, morals and general
welfare, all in accordance with a comprehensive plan; and
WHEREAS, a change in the zoning classification of the property listed below was
requested by a person or entity having a proprietary interest in said property; and
WHEREAS, a public hearing was duly held by the Planning and Zoning
Commission of the City of Kennedale on June 27, 2019 , and by the City Council of the
City of Kennedale on July 16, 2019, with respect to the zoning change described herein;
and
WHEREAS, all requirements of law dealing with notice to other property owners,
publication and all procedural requirements have been complied with in accordance with
Chapter 211 of the Local Government Code; and
WHEREAS, the City Council of the City of Kennedale, Texas, does hereby deem
it advisable and in the public interest to amend the Unified Development Code, as
amended, as described herein.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF KENNEDALE, TEXAS, THAT:
PAGE 2 OF 4, INCLUDING “EXHIBIT A”
O667 CITY OF KENNEDALE, TX 2019
SECTION 1.
The Unified Development Code, as amended, is hereby amended so that the
permitted uses in the hereinafter described area shall be altered, changed and
amended as shown and described below:
Approximately 1.88 acres, located at 1083 Bowman Springs Road, and
being described as Lot 1, Block 19R, Woodlea Acres, Tarrant County,
Texas, on the illustration attached hereto as Exhibit “A” and incorporated
herein for all purposes of this ordinance, is hereby rezoned from “PD-UV1”
Planned Development Urban Village District to “UV” Urban Village District.
SECTION 2.
The zoning districts and boundaries as herein established have been made in
accordance with the comprehensive plan for the purpose of promoting the health,
safety, morals, and general welfare of the community. They have been designed to
lessen congestion in the streets, to secure safety from fire, panic, flood and other
dangers, to provide adequate light and air, to prevent overcrowding of land, to avoid
undue concentration of population, to facilitate the adequat e provisions of
transportation, water, sewerage, parks and other public requirements. They have been
made after a full and complete hearing with reasonable consideration among other
things of the character of the district and its peculiar suitability for the particular uses
allowed and with a view of conserving the value of the buildings and encouraging the
most appropriate use of land throughout the community.
SECTION 3.
The City Secretary is hereby directed to amend the official zoning map to reflect
the changes in classifications approved herein.
SECTION 4.
The use of the property hereinabove described shall be subject to all the
applicable regulations contained in the Unified Development Code, as amended, and all
other applicable and pertinent ordinances of the City of Kennedale, Texas.
SECTION 5.
This Ordinance shall be cumulative of the Unified Development Code, as
amended, and all other Ordinances of the City of Kennedale affecting zoning and land
use, and shall not repeal any of the provisions of such ordinances except in those
instances where provisions of such ordinances are in direct conflict with the provisions
of this ordinance.
SECTION 6.
All rights or remedies of the City of Kennedale, Texas , are expressly saved as to
any and all violations of Unified Development Code, as amended, that have accrued at
the time of the effective date of this Ordinance and as to such accrued violations and all
pending litigation, both civil and criminal, same shall not be affected by this Ordinance
but may be prosecuted until final disposition by the Courts.
PAGE 3 OF 4, INCLUDING “EXHIBIT A”
O667 CITY OF KENNEDALE, TX 2019
SECTION 7.
It is hereby declared to be the intention of the City Council that the phrases,
clauses, sentences, paragraphs, and sections of this ordinance are severable, and if
any phrase, clause, sentence, paragraph or section of this ordinance shall be declared
unconstitutional by the valid judgment or decree of any court of competent jurisdiction,
such unconstitutionality shall not affect any of the remaining phrases, clauses,
sentences, paragraphs and sections of this ordinance, since the same would have been
enacted by the City Council without the incorporation in this ordinance of any such
unconstitutional phrase, clause, sentence, paragraph or section.
SECTION 8.
Any person, firm or corporation who violates, disobeys, omits, neglects or refuses
to comply with or who resists enforcement of any of the provisions of this ordinance
shall be fined not more than Two Thousand Dollars ($2,000.00) for each offens e. Each
day that a violation is permitted to exist shall constitute a separate offense.
SECTION 9.
The City Secretary of the City of Kennedale is hereby directed to publish the
ordinance as required by law.
SECTION 10.
This ordinance shall be in full f orce and effect from and after its passage and
publication as required by law and it is so ordained
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE,
TEXAS, THIS THE 20TH DAY OF AUGUST, 2019.
APPROVED:
______________________________
MAYOR BRIAN JOHNSON
ATTEST: [ C I T Y S E A L ]
______________________________
CITY SECRETARY LESLIE E. GALLOWAY
APPROVED AS TO FORM AND LEGALITY: EFFECTIVE DATE:
______________________________ ______________________________
CITY ATTORNEY DREW LARKIN
PAGE 4 OF 4, INCLUDING “EXHIBIT A”
O667 CITY OF KENNEDALE, TX 2019
ORDINANCE NO. 667
“EXHIBIT A”
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: DECISION ITEMS - B.
I. Subject:
Consider approval of Ordinance 670, authorizing the issuance of up to $2,000,000 in principal amount of City of
Kennedale, Texas Tax Note, Series 2019; securing the payment thereof by authorizing the levy of an annual ad
valorem tax; and approving and authorizing the execution of a Paying Agent/Registrar Agreement, a Purchase Letter,
and all other instruments and procedures related thereto
II. Originated by:
Lakeita Sutton, Director of Finance and Information Technology
III. Summary:
During the July 16, 2019 Work Session, staff presented to Council the potential issuance of $2 Million in Tax Notes to
fund future capital projects. At that time, it was the consensus of the Council for staff to proceed with the issuance. In
the intervening time, staff has worked with the City’s Bond Counsel (McCall, Parkhurst & Horton) and Financial
Advisors (SAMCO Capital) to develop the attached Ordinance and related documents required to issue the proposed
debt.
Issuance of this debt would allow the City to maintain its debt level near its current interest and sinking (I&S) tax rate
(or debt service tax rate) — allowing the City to borrow a possible $15 Million over the next five years (to include the
$2 million presented here). As discussed previously, the proceeds from these Tax Notes could be used for a wide
array of projects — mostly related to land acquisition and/or street construction.The I&S Tax Rate in the FY19–20
Proposed Budget includes this $2 Million issuance.
THE PROPOSED FY19–20 TAX RATE IS AS FOLLOWS:
I&S Tax Rate 0.190541
M&O Tax Rate 0.544429
Total Tax Rate 0.734970
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
Approve
VII. Alternative Actions:
VIII. Attachments:
1.Tax Note Ordinance 670 O670 Tax Note Ordinance-2019 City of Kennedale-2.pdf
2.Paying Agent/Registrar Agreement Paying Agent Ag - 2019 Kennedale Tax Note-2.pdf
3.Certificates and Other Closing Documents Closing Docs - 2019 Kennedale Tax Note-2.pdf
4.Bond Opinion issued by McCall, Parkhurst & Horton Bond Opinion - 2019 Kennedale Tax Note-1.pdf
PAGE 1 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
TABLE OF CONTENTS
Recitals ............................................................. 1
Section 1. Amount and Purpose of the Note................................... 2
Section 2. Designation, Date, Denominations, Numbers, and Maturity of Note ....... 2
Section 3. Interest ....................................................... 2
Section 4. Characteristics of the Note........................................ 3
Section 5. Form of Note .................................................. 5
Section 6. Interest and Sinking Fund; Tax Levy; Security Interest ................. 11
Section 7. Construction Fund .............................................. 11
Section 8. Investments ................................................... 12
Section 9. Defeasance of Note ............................................. 12
Section 10. Damaged, Mutilated, Lost, Stolen, or Destroyed Note .................. 13
Section 11. Custody, Approval, and Registration of Note; Bond Counsel's Opinion,
Insurance, and CUSIP Numbers ................................... 14
Section 12. Covenants Regarding Tax-Exemption of Interest on the Note ............ 15
Section 13. Sale of Note ................................................... 18
Section 14. No Rule 15c2-12 Undertaking; Annual Financial Statements ............. 18
Section 15. Further Procedures .............................................. 18
Section 16. Ordinance a Contract; Amendments ................................ 19
Section 17. Defaults and Remedies .......................................... 19
Section 18. Interested Parties ............................................... 20
Section 19. Incorporation of Recitals ......................................... 20
Section 20. Severability ................................................... 20
Section 21. Effective Date ................................................. 20
Signatures .............................................................
Exhibit A Form of Paying Agent/Registrar Agreement
Exhibit B Written Procedures Relating to Continuing Compliance with Federal Tax Covenants
Exhibit C Form of Purchase Letter
PAGE 2 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
ORDINANCE NO. ___
ORDINANCE AUTHORIZING THE ISSUANCE OF [$2,000,000] IN
PRINCIPAL AMOUNT OF CITY OF KENNEDALE, TEXAS TAX NOTE,
SERIES 2019; SECURING THE PAYMENT THEREOF BY AUTHORIZING
THE LEVY OF AN ANNUAL AD VALOREM TAX; AND APPROVING AND
AUTHORIZING THE EXECUTION OF A PAYING AGENT/REGISTRAR
AGREEMENT, A PURCHASE LETTER, AND ALL OTHER INSTRUMENTS
AND PROCEDURES RELATED THERETO
STATE OF TEXAS §
COUNTY OF TARRANT §
CITY OF KENNEDALE §
WHEREAS, the CITY OF KENNEDALE, TEXAS (the "City") in Tarrant County, Texas, is a
political subdivision of the State of Texas operating as a home rule municipality under the
Constitution and laws of the State of Texas and its City Charter, which was initially approved by the
qualified voters of the City on January 17, 1998, and was most recently amended by the qualified
voters of the City on May 4, 2019; and
WHEREAS, the City Council of the City hereby determines that it is necessary and desirable
to (i) acquire land for parks and a future public safety facility, (ii) construct street improvements in
various locations in the City, together with curbs, gutters, sidewalks, utility relocation and/or
drainage improvements incidental thereto, (iii) acquire rights of way for existing and future streets
and (iv) pay professional services related to the design, construction, project management and
financing of such projects (collectively, the "Projects"); and
WHEREAS, pursuant to Chapter 1431, Texas Government Code, as amended (the "Act"),
the City Council of the City is authorized and empowered to issue anticipation notes to pay
contractual obligations incurred or to be incurred (i) for the construction of any public work, and (ii)
for the purchase of materials, supplies, equipment, machinery, buildings, lands and rights-of-way
for the City's authorized needs and purposes; and
WHEREAS, in accordance with the provisions of the Act, the City Council hereby finds and
determines that an anticipation note should be issued and sold at this time to finance the Projects;
and
WHEREAS, the City Council of the City deems it appropriate to adopt this Ordinance and
issue the Note herein authorized as permitted by the Act; and
WHEREAS, it is hereby officially found and determined that the meeting at which this
Ordinance was adopted was open to the public and public notice of the time, place, and purpose of
said meeting was given, all as required by Chapter 551, Texas Government Code;
PAGE 3 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
2
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
KENNEDALE, TEXAS:
SECTION 1. AMOUNT AND PURPOSE OF THE NOTE. The Note of the City is hereby
authorized to be issued and delivered in the aggregate principal amount of [$2,000,000] THE
PURPOSE OF (I) ACQUIRING LAND FOR PARKS AND A FUTURE PUBLIC SAFETY
FACILITY, (II) CONSTRUCTING STREET IMPROVEMENTS IN VARIOUS LOCATIONS
IN THE CITY, TOGETHER WITH CURBS, GUTTERS, SIDEWALKS, UTILITY
RELOCATION AND/OR DRAINAGE IMPROVEMENTS INCIDENTAL THERETO, (III)
ACQUIRING RIGHTS OF WAY FOR EXISTING AND FUTURE STREETS, AND (IV)
PAYING PROFESSIONAL SERVICES RELATED TO THE DESIGN, CONSTRUCTION,
PROJECT MANAGEMENT AND FINANCING OF SUCH PROJECTS.
SECTION 2. DESIGNATION, DATE, DENOMINATIONS, NUMBERS, AND
MATURITY OF NOTE. (a) Each note issued pursuant to this Ordinance shall be designated CITY
OF KENNEDALE, TEXAS TAX NOTE, SERIES 2019, and initially there shall be issued, sold, and
delivered hereunder one fully registered note, without interest coupons, dated September 1, 2019,
in the denomination and principal amount of [$2,000,000], numbered R-1, with any note issued in
replacement thereof being in the denomination and principal amount hereinafter stated and
numbered consecutively from R-2 upward, payable in installments to the registered owner thereof,
or to the registered assignee of said note (in each case, the "Registered Owner").
(b) Principal of the Note shall mature and be payable in installments on the dates and in the
principal installment amounts and shall bear interest at the per annum rate set forth in the following
schedule:
PAYMENT
DATE
PRINCIPAL
AMOUNT ($)
INTEREST
RATE (%)
02/01/2020 80,000
02/01/2021 150,000
02/01/2022 265,000
02/01/2023 365,000
02/01/2024 370,000
02/01/2025 380,000
02/01/2026 390,000
The term "Note" as used in this Ordinance shall mean and include collectively the note initially
issued and delivered pursuant to this Ordinance, as well as all other substitute notes and replacement
notes issued pursuant hereto.
SECTION 3. INTEREST. The Note shall bear interest from the dates specified in the FORM
OF NOTE set forth in this Ordinance to date of maturity at the respective rate per annum for each
principal installment set forth above. Said interest shall be payable in the manner provided and on
PAGE 4 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
3
the dates stated in the FORM OF NOTE set forth in this Ordinance. Interest shall be calculated on
the basis of a 360-day year composed of twelve 30-day months.
SECTION 4. CHARACTERISTICS OF THE NOTE.
(a) Registration and Transfer; Authentication. The City shall keep or cause to be kept at
the designated corporate trust or commercial banking office of ______________ (currently located
in ________, Texas) (the "Paying Agent/Registrar") books or records for the registration of the
transfer of the Note (the "Registration Books"), and the City hereby appoints the Paying
Agent/Registrar as its registrar and transfer agent to keep such books or records and make such
registrations of transfers under such reasonable regulations as the City and Paying Agent/Registrar
may prescribe; and the Paying Agent/Registrar shall make such registrations and transfers as herein
provided within three days of presentation in due and proper form. The Paying Agent/Registrar
shall obtain and record in the Registration Books the address of the Registered Owner of the Note
to which payments with respect to the Note shall be mailed, as herein provided; but it shall be the
duty of the Registered Owner to notify the Paying Agent/Registrar in writing of the address to which
payments shall be mailed, and such interest payments shall not be mailed unless such notice has
been given. The City shall have the right to inspect the Registration Books during regular business
hours of the Paying Agent/Registrar, but otherwise the Paying Agent/Registrar shall keep the
Registration Books confidential and, unless otherwise required by law, shall not permit their
inspection by any other entity. The City shall pay the Paying Agent/Registrar's standard or
customary fees and charges for making such registration, transfer and delivery of a substitute Note.
Registration of assignment and transfer of the Note shall be made in the manner provided and with
the effect stated in the FORM OF NOTE set forth in this Ordinance. Each substitute Note shall bear
a letter and/or number to distinguish it from each other Note.
Except as provided in Section 5(c) hereof, an authorized representative of the Paying
Agent/Registrar shall, before the delivery of any such Note, date and manually sign said Note, and
no such Note shall be deemed to be issued or outstanding unless such Note is so executed. The
Paying Agent/Registrar promptly shall cancel the paid Note or a Note surrendered for transfer. No
additional ordinances, orders or resolutions need be passed or adopted by the governing body of the
City or any other body or person so as to accomplish the foregoing, and the Paying Agent/Registrar
shall provide for the printing, execution and delivery of the substitute Note in the manner prescribed
herein. Pursuant to Subchapter D, Chapter 1201, Texas Government Code, the duty of transfer of
the Note as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the execution
of said Note, the transferred Note shall be valid, incontestable, and enforceable in the same manner
and with the same effect as the Note which initially was issued and delivered pursuant to this
Ordinance, approved by the Attorney General, and registered by the Comptroller of Public
Accounts.
(b) Payment of Note and Interest. The City hereby further appoints the Paying
Agent/Registrar to act as the paying agent for paying the principal of and interest on the Note, all
as provided in this Ordinance. The Paying Agent/Registrar shall keep proper records of all
payments made by the City and the Paying Agent/Registrar with respect to the Note, and of all
transfers of the Note, and all replacements of the Note, as provided in this Ordinance. However, in
PAGE 5 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
4
the event of a nonpayment of interest on a scheduled payment date, and for thirty (30) days
thereafter, a new record date for such interest payment (a "Special Record Date") will be established
by the Paying Agent/Registrar, if and when funds for the payment of such interest have been
received from the City. Notice of the Special Record Date and of the scheduled payment date of the
past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5)
business days prior to the Special Record Date by United States mail, first-class postage prepaid,
to the address of the Registered Owner appearing on the Registration Books at the close of business
on the fifteenth business day next preceding the date of mailing of such notice.
(c) In General. The Note (i) shall be issued in fully registered form, without interest
coupons, with the principal of and interest on such Note to be payable only to the Registered Owner
thereof, (ii) may be transferred and assigned, (iii) shall have the characteristics, (iv) shall be signed,
sealed, executed and authenticated, (v) the principal of and interest on the Note shall be payable, and
(vi) shall be administered, and the Paying Agent/Registrar and the City shall have certain duties and
responsibilities with respect to the Note, all as provided, and in the manner and to the effect as
required or indicated, in the FORM OF NOTE set forth in this Ordinance. The Note initially issued
and delivered pursuant to this Ordinance is not required to be, and shall not be, authenticated by the
Paying Agent/Registrar, but on each substitute Note issued in transfer or replacement for any Note
issued under this Ordinance the Paying Agent/Registrar shall execute the PAYING
AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE, in the form set forth in the FORM
OF NOTE.
(d) Substitute Paying Agent/Registrar. The City covenants with the registered Owner of the
Note that at all times while the Note is outstanding the City will provide a competent and legally
qualified bank, trust company, financial institution or other agency to act as and perform the services
of Paying Agent/Registrar for the Note under this Ordinance, and that the Paying Agent/Registrar
will be one entity. The City reserves the right to, and may, at its option, change the Paying
Agent/Registrar upon not less than 40 days written notice to the Paying Agent/Registrar, to be
effective not later than 30 days prior to the next principal or interest payment date after such notice.
In the event that the entity at any time acting as Paying Agent/Registrar (or its successor by merger,
acquisition, or other method) should resign or otherwise cease to act as such, the City covenants that
promptly it will appoint a competent and legally qualified bank, trust company, financial institution,
or other agency to act as Paying Agent/Registrar under this Ordinance. Upon any change in the
Paying Agent/Registrar, the previous Paying Agent/Registrar promptly shall transfer and deliver the
Registration Books (or a copy thereof), along with all other pertinent books and records relating to
the Note, to the new Paying Agent/Registrar designated and appointed by the City. Upon any
change in the Paying Agent/Registrar, the City promptly will cause a written notice thereof to be
sent by the new Paying Agent/Registrar to the Registered Owner of the Note, by United States mail,
first-class postage prepaid, which notice also shall give the address of the new Paying
Agent/Registrar. By accepting the position and performing as such, each Paying Agent/Registrar
shall be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this
Ordinance shall be delivered to the Paying Agent/Registrar.
(e) On the closing date, one Initial Note representing the entire principal amount of the Note,
payable in stated installments to the initial purchaser identified in Section 12 hereof, executed by
PAGE 6 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
5
manual or facsimile signature of the Mayor and City Secretary of the City, approved by the Attorney
General of Texas, and registered and manually signed by the Comptroller of Public Accounts of the
State of Texas, will be delivered to the initial purchaser or its designee. The Paying Agent/Registrar
shall insert the date of delivery and deliver the Note to the initial purchaser.
SECTION 5. FORM OF NOTE. The form of the Note, including the form of Paying
Agent/Registrar's Authentication Certificate, the form of Assignment and the form of Registration
Certificate of the Comptroller of Public Accounts of the State of Texas to be attached to the Note
initially issued and delivered pursuant to this Ordinance, shall be, respectively, substantially as
follows, with such appropriate variations, omissions, or insertions as are permitted or required by
this Ordinance.
(a) Form of Note.
NO. R-__PRINCIPAL AMOUNT
$__________
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF TARRANT
CITY OF KENNEDALE, TEXAS TAX NOTE, SERIES 2019
Interest Rate Delivery Date Maturity Date
As shown below September __, 2019 As shown below
REGISTERED OWNER:
PRINCIPAL AMOUNT:DOLLARS
CITY OF KENNEDALE, TEXAS (the "City"), being a political subdivision and a home-rule
municipality of the State of Texas, for value received, hereby promises to pay, from the sources
described herein, to the Registered Owner specified above, or registered assign (the "Registered
Owner"), the principal amount from time to time unpaid and to pay interest thereon from the date
of delivery of this Note as specified above, at the respective rates per annum set forth in the table
below, calculated on the basis of a 360-day year of twelve 30-day months. The principal of this
Note shall mature and be paid in installments on the dates and in the amounts set forth in the table
below:
PAGE 7 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
6
PAYMENT
DATE
PRINCIPAL
AMOUNT ($)
INTEREST
RATE (%)
02/01/2020 80,000
02/01/2021 150,000
02/01/2022 265,000
02/01/2023 365,000
02/01/2024 370,000
02/01/2025 380,000
02/01/2026 390,000
THE PRINCIPAL OF AND INTEREST ON THIS NOTE are payable in lawful money of
the United States of America, without exchange or collection charges. The City shall pay interest
on the unpaid principal installments of this Note on February 1, 2020, and on each February 1 and
August 1 thereafter to the date of maturity thereof. The last principal installment of this Note,
together with accrued interest thereon to the maturity date thereof, shall be paid to the Registered
Owner hereof upon presentation and surrender of this Note at maturity at the designated office of
____________________, which is the "Paying Agent/Registrar" for this Note. The payment of all
other principal installments of and interest on this Note shall be made by the Paying Agent/Registrar
to the Registered Owner hereof on each principal and interest payment date by check or draft, dated
as of such principal and interest payment date, drawn by the Paying Agent/Registrar on, and payable
solely from, funds of the City required by the ordinance authorizing the issuance of this Note (the
"Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter
provided; and such check or draft shall be sent by the Paying Agent/Registrar by United States mail,
first-class postage prepaid, on each such interest payment date, to the Registered Owner hereof, at
its address as it appeared on the fifteen (15th) business day of the month next preceding each such
date (the "Record Date") on the Registration Books kept by the Paying Agent/Registrar, as
hereinafter described. In addition, principal and interest may be paid by such other method,
acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the
Registered Owner.
ANY ACCRUED INTEREST due at maturity as provided herein shall be paid to the
Registered Owner upon presentation and surrender of this Note for payment at the principal
corporate trust office of the Paying Agent/Registrar. The City covenants with the Registered Owner
of this Note that on or before each principal payment date and interest payment date for this Note
it will make available to the Paying Agent/Registrar, from the "Interest and Sinking Fund" created
by the Ordinance, the amounts required to provide for the payment, in immediately available funds,
of all principal of and interest on the Note, when due.
IF THE DATE FOR THE PAYMENT of the principal of or interest on this Note shall be
a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the
principal corporate trust office of the Paying Agent/Registrar is located are authorized by law or
executive order to close, then the date for such payment shall be the next succeeding day which is
PAGE 8 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
7
not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to
close; and payment on such date shall have the same force and effect as if made on the original date
payment was due.
THIS NOTE, DATED AS OF SEPTEMBER 1, 2019, IS AUTHORIZED and issued in
accordance with the Constitution and laws of the State of Texas in the principal amount of
[$2,000,000] FOR THE PURPOSE OF (I) ACQUIRING LAND FOR PARKS AND A FUTURE
PUBLIC SAFETY FACILITY, (II) CONSTRUCTING STREET IMPROVEMENTS IN
VARIOUS LOCATIONS IN THE CITY, TOGETHER WITH CURBS, GUTTERS, SIDEWALKS,
UTILITY RELOCATION AND/OR DRAINAGE IMPROVEMENTS INCIDENTAL THERETO,
(III) ACQUIRING RIGHTS OF WAY FOR EXISTING AND FUTURE STREETS, AND (IV)
PAYING PROFESSIONAL SERVICES RELATED TO THE DESIGN, CONSTRUCTION,
PROJECT MANAGEMENT AND FINANCING OF SUCH PROJECTS.
[ON FEBRUARY 1, _____, AND ON DATE THEREAFTER, the principal installments
of this Note may be redeemed prior to their scheduled payment dates, at the option of the City, with
funds derived from any available and lawful source, as a whole only, at a redemption price equal to
the principal amount to be redeemed plus accrued interest thereon to the date of redemption.
AT LEAST THIRTY (30) DAYS PRIOR to the date fixed for any optional redemption of
the Note prior to maturity a written notice of such redemption shall be sent by the Paying
Agent/Registrar by United States mail, first-class postage prepaid, to the Registered Owner of the
Note at its address as it appeared on the Registration Books on the day such notice of redemption
is mailed; provided, however, that the failure of the Registered Owner to receive such notice, or any
defect therein or in the sending or mailing thereof, shall not affect the validity or effectiveness of
the proceedings for the redemption of this Note. The notice with respect to the optional redemption
of this Note may state (1) that it is conditioned upon the deposit of moneys, in an amount equal to
the amount necessary to effect the redemption, with the Paying Agent/Registrar no later than the
redemption date, or (2) that the City retains the right to rescind such notice at any time prior to the
scheduled redemption date if the City delivers a certificate of an authorized representative to the
Paying Agent/Registrar instructing the Paying Agent/Registrar to rescind the redemption notice, and
such notice and optional redemption shall be of no effect if such moneys are not so deposited or if
the notice is so rescinded. By the date fixed for any such redemption, due provision shall be made
with the Paying Agent/Registrar for the payment of the required redemption price for the Note. If
such written notice of redemption is sent and if due provision for such payment is made, all as
provided above, the Note shall be treated as redeemed prior to its scheduled maturity, and shall not
bear interest after the date fixed for redemption, and shall not be regarded as being outstanding
except for the right of the Registered Owner to receive the redemption price from the Paying
Agent/Registrar out of the funds provided for such payment.]
OR
[THIS NOTE IS NOT SUBJECT TO OPTIONAL REDEMPTION PRIOR TO STATED
MATURITY.]
PAGE 9 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
8
UPON THE PAYMENT OF THE OUTSTANDING principal balance of this Note, the
Paying Agent/Registrar shall note in the Bond Registration Books the amount of such payment, the
date said payment was made and the remaining unpaid principal balance of this Note.
THIS NOTE IS ISSUED AS A FULLY REGISTERED NOTE, without interest coupons,
in the denomination of the principal amount thereof. As provided in the Ordinance, this Note may,
at the request of the Registered Owner or the assignee hereof, be assigned or transferred for a like
aggregate principal amount of a fully registered Note in the denomination of the principal amount
hereof, without interest coupons, payable to the Registered Owner or assignees as the case may be,
having the same denomination, upon surrender of this Note to the Paying Agent/Registrar for
cancellation, all in accordance with the form and procedures set forth in the Ordinance. Among
other requirements for such assignment and transfer, this Note must be presented and surrendered
to the Paying Agent/Registrar, together with proper instruments of assignment, in form and with
guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment of this
Note. The form of Assignment printed or endorsed on this Note may be executed by the Registered
Owner to evidence the assignment hereof, but such method is not exclusive, and other instruments
of assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment
of this Note by the Registered Owner. The Paying Agent/Registrar's reasonable standard or
customary fees and charges for assigning, transferring or exchanging any Note will be paid by the
City. In any circumstance, any taxes or governmental charges required to be paid with respect
thereto shall be paid by the one requesting such assignment or transfer, as a condition precedent to
the exercise of such privilege. The Paying Agent/Registrar shall not be required to make any such
transfer during the period commencing with the close of business on any Record Date and ending
with the opening of business on the next following principal or interest payment date.
IN THE EVENT ANY PAYING AGENT/REGISTRAR FOR THE NOTE IS CHANGED
by the City, resigns, or otherwise ceases to act as such, the City has covenanted in the Ordinance that
it promptly will appoint a competent and legally qualified substitute therefor, and cause written
notice thereof to be mailed to the Registered Owner of the Note.
IT IS HEREBY CERTIFIED, RECITED, AND COVENANTED that this Note has been
duly and validly authorized, issued, and delivered; that all acts, conditions, and things required or
proper to be performed, exist, and be done precedent to or in the authorization, issuance, and
delivery of this Note have been performed, existed, and been done in accordance with law; that this
Note is a general obligation of the City, issued on the full faith and credit thereof; and that ad
valorem taxes sufficient to provide for the payment of the interest on and principal of this Note, as
such interest comes due, and as such principal matures, have been levied and ordered to be levied
against all taxable property in the City, and have been pledged for such payment within the limits
provided by law.
THE CITY ALSO HAS RESERVED THE RIGHT to amend the Note Ordinance as
provided therein, and under some (but not all) circumstances amendments thereto must be approved
by the Registered Owner of the Note.
PAGE 10 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
9
BY BECOMING THE REGISTERED OWNER OF THIS NOTE, the Registered Owner
thereby acknowledges all of the terms and provisions of the Ordinance, agrees to be bound by such
terms and provisions, acknowledges that the Ordinance is duly recorded and available for inspection
in the official minutes and records of the governing body of the City, and agrees that the terms and
provisions of this Note and the Ordinance constitute a contract between each Registered Owner
hereof and the City.
IN WITNESS WHEREOF, the City has caused this Note to be signed with the facsimile
signature of the Mayor of the City and countersigned with the facsimile signature of the City
Secretary of the City, and has caused the official seal of the City Council of the City to be duly
impressed, or placed in facsimile, on this Note.
(facsimile signature) (facsimile signature)
City Secretary Mayor
City of Kennedale, Texas City of Kennedale, Texas
(CITY SEAL)
(b) Form of Paying Agent/Registrar's Authentication Certificate.
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
(To be executed if this Note is not accompanied by an executed Registration Certificate
of the Comptroller of Public Accounts of the State of Texas)
It is hereby certified that this Note has been issued under the provisions of the Ordinance
described in the text of this Note; and that this Note has been issued in replacement of, or transferred
for, a Note of a Series which originally was approved by the Attorney General of the State of Texas
and registered by the Comptroller of Public Accounts of the State of Texas.
Dated: ______________________
Paying Agent/Registrar
By:
Authorized Representative
[The remainder of this page intentionally left blank]
PAGE 11 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
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(c) Form of Assignment.
ASSIGNMENT
(Please print or type clearly)
For value received, the undersigned hereby sells, assigns and transfers
unto:
Transferee's Social Security or Taxpayer Identification Number:
Transferee's name and address, including zip code:
the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
, attorney, to register the transfer of
the within Note on the books kept for registration thereof, with full power of substitution in the premises.
Dated: .
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed by an
eligible guarantor institution participating in a
securities transfer association recognized signature
guarantee program.
NOTICE: The signature above must correspond with
the name of the Registered Owner as it appears upon
the front of this Note in every particular, without
alteration or enlargement or any change whatsoever.
(d) Form of Registration Certificate of the Comptroller of Public Accounts:
COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO.
I hereby certify that this Note has been examined, certified as to validity, and approved by
the Attorney General of the State of Texas, and that this Note has been registered by the Comptroller
of Public Accounts of the State of Texas.
Witness my signature and seal this _________________________.
Comptroller of Public Accounts
of the State of Texas
(COMPTROLLER'S SEAL)
PAGE 12 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
11
SECTION 6. INTEREST AND SINKING FUND; TAX LEVY; SECURITY
INTEREST. (a) Interest and Sinking Fund; Tax Levy. A special Interest and Sinking Fund (the
"Interest and Sinking Fund") is hereby created solely for the benefit of the Note, and the Interest
and Sinking Fund shall be established and maintained by the City at an official depository bank of
the City for so long as the Note or interest thereon are outstanding and unpaid. The Interest and
Sinking Fund shall be kept separate and apart from all other funds and accounts of the City, and shall
be used only for paying the interest on and principal of the Note. Until expended for the purposes
set forth in Section 1 hereof, the proceeds derived from the sale of the Note shall be held as further
security for the timely payment of the principal and interest on the Note. All ad valorem taxes levied
and collected for and on account of the Note and all accrued interest and premium on the Note
received by the City from the initial purchaser of the Note, if any, shall be deposited, as collected,
to the credit of the Interest and Sinking Fund. During each year while the Note or interest thereon
are outstanding and unpaid, the City shall compute and ascertain a rate and amount of ad valorem
tax which will be sufficient, together with other moneys deposited to the credit of the Interest and
Sinking Fund, to raise and produce the money required to pay the interest on the Note as such inter-
est comes due, and to provide and maintain a sinking fund adequate to pay the principal installment
of the Note as such principal installment matures (but never less than 2% of the original principal
amount of the Note as a sinking fund each year); and said tax shall be based on the latest approved
tax rolls of the City, with full allowance being made for tax delinquencies and the cost of tax
collection. Said rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be
levied, against all taxable property in the City for each year while the Note or interest thereon are
outstanding and unpaid; and said tax shall be assessed and collected each such year and deposited
to the credit of the aforesaid Interest and Sinking Fund. Said ad valorem taxes sufficient to provide
for the payment of the interest on and principal of the Note, as such interest comes due and such
principal matures, are hereby pledged for such payment, within the limits provided by law.
(b) Security Interest. Chapter 1208, Texas Government Code, applies to the issuance of the
Note and the pledge of the ad valorem taxes granted by the City under Section 6(a) of this
Ordinance, and is therefore valid, effective, and perfected. If Texas law is amended at any time
while the Note is outstanding and unpaid such that the pledge of the ad valorem taxes granted by the
City under Section 6(a) of this Ordinance is to be subject to the filing requirements of Chapter 9,
Texas Business & Commerce Code, then in order to preserve to the Registered Owner of the Note
the perfection of the security interest in said pledge, the City agrees to take such measures as it
determines are reasonable and necessary under Texas law to comply with the applicable provisions
of Chapter 9, Texas Business & Commerce Code, and enable a filing to perfect the security interest
in said pledge to occur.
SECTION 7. CONSTRUCTION FUND. There is hereby created and established in the
depository of the City, a fund to be called the City of Kennedale, Texas Tax Note (Series 2019)
Construction Fund (herein called the "Construction Fund"). Proceeds from the sale and delivery
of the Note (other than proceeds representing accrued interest on the Note and any premium on the
Note that is not used by the City to pay costs of issuance in accordance with the provisions of
Section 1201.042(d), Texas Government Code, as amended, which shall be deposited in the Interest
and Sinking Fund) shall be deposited in the Construction Fund. Money in the Construction Fund
shall be subject to disbursements by the City for payment of all costs incurred in carrying out the
PAGE 13 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
12
purpose for which the Note is issued, including but not limited to costs for construction, engineering,
architecture, financing, financial consultants and legal services related to the project being financed
with proceeds of the Note and the issuance of the Note. All funds remaining on deposit in the
Construction Fund upon completion of the projects being financed with the proceeds from the Note,
if any, shall be transferred to the Interest and Sinking Fund.
SECTION 8. INVESTMENTS. Funds on deposit in the Interest and Sinking Fund and the
Construction Fund shall be secured by the depository bank of the City in the manner and to the
extent required by law to secure other public funds of the City and may be invested from time to
time in any investment authorized by applicable law, including but not limited to the Public Funds
Investment Act (Chapter 2256, Texas Government Code), and the City's investment policy adopted
in accordance with the provisions of the Public Funds Investment Act; provided, however, that
investments purchased for and held in the Interest and Sinking Fund shall have a final maturity no
later than the next principal or interest payment date for which such funds are required, and
investments purchased for and held in the Construction Fund shall have a final maturity of not later
than the date the City reasonably expects the funds from such investments will be required to pay
costs of the projects for which the Note was issued. Income and profits from such investments shall
be deposited in the respective Fund which holds such investments; however, any such income and
profits from investments in the Construction Fund may be withdrawn by the City and deposited in
the Interest and Sinking Fund to pay all or a portion of the interest next coming due on the Note.
SECTION 9. DEFEASANCE OF NOTE. (a) The Note and the interest thereon shall be
deemed to be paid, retired and no longer outstanding (a "Defeased Note") within the meaning of this
Ordinance, except to the extent provided in subsection (d) of this Section, when payment of the
principal of such Note, plus interest thereon to the due date (whether such due date be by reason of
maturity or otherwise) either (i) shall have been made or caused to be made in accordance with the
terms thereof, or (ii) shall have been provided for on or before such due date by irrevocably
depositing with or making available to the Paying Agent/Registrar in accordance with an escrow
agreement or other instrument (the "Future Escrow Agreement") for such payment (1) lawful
money of the United States of America sufficient to make such payment or (2) Defeasance Securities
that mature as to principal and interest in such amounts and at such times as will insure the
availability, without reinvestment, of sufficient money to provide for such payment, and when
proper arrangements have been made by the Authority with the Paying Agent/Registrar for the
payment of its services until the Defeased Note shall have become due and payable. Thereafter, the
City will have no further responsibility with respect to amounts available to the Paying
Agent/Registrar for the payment of such Defeased Note, including any insufficiency therein caused
by the failure of the escrow agent under such Future Escrow Agreement to receive payment when
due on the Defeasance Securities. At such time that the Note shall be deemed to be a Defeased Note
hereunder, as aforesaid, such Note and the interest thereon shall no longer be secured by, payable
from, or entitled to the benefits of, the ad valorem taxes or revenues herein levied and pledged as
provided in this Ordinance, and such principal and interest shall be payable solely from such money
or Defeasance Securities.
PAGE 14 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
13
(b) Any moneys so deposited with the Paying Agent/Registrar may at the written
direction of the Authority be invested in Defeasance Securities, maturing in the amounts and times
as hereinbefore set forth, and all income from such Defeasance Securities received by the Paying
Agent/Registrar that is not required for the payment of the Note and interest thereon, with respect
to which such money has been so deposited, shall be turned over to the Authority, or deposited as
directed in writing by the Authority. Any Future Escrow Agreement pursuant to which the money
and/or Defeasance Securities are held for the payment of the Defeased Note may contain provisions
permitting the investment or reinvestment of such moneys in Defeasance Securities or the
substitution of other Defeasance Securities upon the satisfaction of the requirements specified in
subsection (a)(i) or (ii) of this Section. All income from such Defeasance Securities received by the
Paying Agent/Registrar which is not required for the payment of the Defeased Note, with respect
to which such money has been so deposited, shall be remitted to the Authority or deposited as
directed in writing by the Authority.
(c) The term "Defeasance Securities" means (i) direct, noncallable obligations of the
United States of America, including obligations that are unconditionally guaranteed by the United
States of America, (ii) noncallable obligations of an agency or instrumentality of the United States
of America, including obligations that are unconditionally guaranteed or insured by the agency or
instrumentality and that, on the date of the purchase thereof are rated as to investment quality by a
nationally recognized investment rating firm not less than AAA or its equivalent, (iii) noncallable
obligations of a state or an agency or a City, municipality, or other political subdivision of a state
that have been refunded and that, on the date on the date the governing body of the Authority adopts
or approves the proceedings authorizing the financial arrangements are rated as to investment quality
by a nationally recognized investment rating firm not less than AAA or its equivalent, and (iv) any
other then authorized securities or obligations under applicable state law that may be used to defease
obligations such as the Note.
(d) Until the Defeased Note shall have become due and payable, the Paying
Agent/Registrar shall perform the services of Paying Agent/Registrar for the Defeased Note the
same as if they had not been defeased, and the Authority shall make proper arrangements to provide
and pay for such services as required by this Ordinance.
SECTION 10. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED NOTE.
(a) Replacement Note. In the event the Note is damaged, mutilated, lost, stolen, or
destroyed, the Paying Agent/Registrar shall cause to be printed, executed, and delivered, a new Note
of the same principal installment amounts, maturity dates and interest rates as the damaged,
mutilated, lost, stolen, or destroyed Note, in replacement for such Note in the manner hereinafter
provided.
(b) Application for Replacement Note. Application for replacement of a damaged,
mutilated, lost, stolen, or destroyed Note shall be made by the Registered Owner thereof to the
Paying Agent/Registrar. In every case of loss, theft, or destruction of a Note, the Registered Owner
applying for a replacement Note shall furnish to the City and to the Paying Agent/Registrar such
security or indemnity as may be required by them to save each of them harmless from any loss or
PAGE 15 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
14
damage with respect thereto. Also, in every case of loss, theft, or destruction of a Note, the
Registered Owner shall furnish to the City and to the Paying Agent/Registrar evidence to their
satisfaction of the loss, theft, or destruction of such Note, as the case may be. In every case of
damage or mutilation of a Note, the Registered Owner shall surrender to the Paying Agent/Registrar
for cancellation the Note so damaged or mutilated.
(c) No Default Occurred. Notwithstanding the foregoing provisions of this Section, in
the event any such Note shall have matured, and no default has occurred which is then continuing
in the payment of the principal of or interest on the Note, the City may authorize the payment of the
same (without surrender thereof except in the case of a damaged or mutilated Note) instead of
issuing a replacement Note, provided security or indemnity is furnished as above provided in this
Section.
(d) Charge for Issuing Replacement Note. Prior to the issuance of any replacement Note,
the Paying Agent/Registrar shall charge the Registered Owner of such Note with all legal, printing,
and other expenses in connection therewith. Every replacement Note issued pursuant to the
provisions of this Section by virtue of the fact that any Note is lost, stolen, or destroyed shall
constitute a contractual obligation of the City whether or not the lost, stolen, or destroyed Note shall
be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this
Ordinance.
(e) Authority for Issuing Replacement Note. In accordance with Chapter 1206, Texas
Government Code, this Section of this Ordinance shall constitute authority for the issuance of any
such replacement Note without necessity of further action by the governing body of the City or any
other body or person, and the duty of the replacement of such Note is hereby authorized and
imposed upon the Paying Agent/Registrar, and the Paying Agent/Registrar shall authenticate and
deliver such Note in the form and manner and with the effect, as provided in Section 4(a) of this
Ordinance for a Note issued in exchange for another Note.
SECTION 11. CUSTODY, APPROVAL, AND REGISTRATION OF NOTE; BOND
COUNSEL'S OPINION, INSURANCE, AND CUSIP NUMBERS. The Mayor of the City, on
behalf of the City, is hereby authorized to have control of the Note initially issued and delivered
hereunder and all necessary records and proceedings pertaining to the Note pending its delivery and
their investigation, examination, and approval by the Attorney General of the State of Texas, and
their registration by the Comptroller of Public Accounts of the State of Texas. Upon registration
of the Note said Comptroller of Public Accounts (or a deputy designated in writing to act for said
Comptroller) shall manually sign the Comptroller's Registration Certificate attached to such Note,
and the seal of said Comptroller shall be impressed, or placed in facsimile, on such Certificate. The
approving legal opinion of the City's Bond Counsel and the assigned CUSIP numbers, if any, may,
at the option of the City, be printed on the Note issued and delivered under this Ordinance, but
neither shall have any legal effect, and shall be solely for the convenience and information of the
Registered Owner of the Note. In addition, if municipal bond insurance is obtained, the Note may
bear an appropriate legend as provided by the insurer.
PAGE 16 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
15
SECTION 12. COVENANTS REGARDING TAX EXEMPTION OF INTEREST ON
THE NOTE. (a) Covenants. The City covenants to take any action necessary to assure, or
refrain from any action which would adversely affect, the treatment of the Note as an obligation
described in section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), the interest
on which is not includable in the "gross income" of the holder for purposes of federal income
taxation. In furtherance thereof, the City covenants as follows:
(1) to take any action to assure that no more than 10 percent of the proceeds of the
Note or the projects financed therewith (less amounts deposited to a reserve fund, if any) are
used for any "private business use," as defined in section 141(b)(6) of the Code or, if more
than 10 percent of the proceeds or the projects financed therewith are so used, such amounts,
whether or not received by the City, with respect to such private business use, do not, under
the terms of this Ordinance or any underlying arrangement, directly or indirectly, secure or
provide for the payment of more than 10 percent of the debt service on the Note, in
contravention of section 141(b)(2) of the Code;
(2) to take any action to assure that in the event that the "private business use"
described in subsection (1) hereof exceeds 5 percent of the proceeds of the Note or the
projects financed therewith (less amounts deposited into a reserve fund, if any) then the
amount in excess of 5 percent is used for a "private business use" which is "related" and not
"disproportionate," within the meaning of section 141(b)(3) of the Code, to the governmental
use;
(3) to take any action to assure that no amount which is greater than the lesser of
$5,000,000, or 5 percent of the proceeds of the Note (less amounts deposited into a reserve
fund, if any) is directly or indirectly used to finance loans to persons, other than state or local
governmental units, in contravention of section 141(c) of the Code;
(4) to refrain from taking any action which would otherwise result in the Note being
treated as a "private activity bond" within the meaning of section 141(b) of the Code;
(5) to refrain from taking any action that would result in the Note being "federally
guaranteed" within the meaning of section 149(b) of the Code;
(6) to refrain from using any portion of the proceeds of the Note, directly or
indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire
investment property (as defined in section 148(b)(2) of the Code) which produces a
materially higher yield over the term of the Note, other than investment property acquired
with --
(A) proceeds of the Note invested for a reasonable temporary period of three
(3) years or less or, in the case of a refunding bond, for a period of 90 days or less,
until such proceeds are needed for the purpose for which the Note is issued,
PAGE 17 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
16
(B) amounts invested in a bona fide debt service fund, within the meaning
of section l.148-1(b) of the Treasury Regulations, and
(C) amounts deposited in any reasonably required reserve or replacement
fund to the extent such amounts do not exceed 10 percent of the proceeds of the
Note;
(7) to otherwise restrict the use of the proceeds of the Note or amounts treated as
proceeds of the Note, as may be necessary, so that the Note does not otherwise contravene
the requirements of section 148 of the Code (relating to arbitrage);
(8) to refrain from using the proceeds of the Note or proceeds of any prior bonds to
pay debt service on another issue more than 90 days after the date of issue of the Note in
contravention of the requirements of section 149(d) of the Code (relating to advance
refundings); and
(9) to pay to the United States of America at least once during each five-year period
(beginning on the date of delivery of the Note) an amount that is at least equal to 90 percent
of the "Excess Earnings," within the meaning of section 148(f) of the Code and to pay to the
United States of America, not later than 60 days after the Note has been paid in full, 100
percent of the amount then required to be paid as a result of Excess Earnings under section
148(f) of the Code.
(b) Rebate Fund. In order to facilitate compliance with the above covenant (9), a "Rebate
Fund" is hereby established by the City for the sole benefit of the United States of America, and
such fund shall not be subject to the claim of any other person, including without limitation the
bondholders. The Rebate Fund is established for the additional purpose of compliance with section
148 of the Code.
(c) Proceeds. The City understands that the term "proceeds" includes "disposition
proceeds" as defined in the Treasury Regulations and, in the case of refunding bonds, transferred
proceeds (if any) and proceeds of the refunded bonds expended prior to the date of issuance of the
Note. It is the understanding of the City that the covenants contained herein are intended to assure
compliance with the Code and any regulations or rulings promulgated by the U.S. Department of
the Treasury pursuant thereto. In the event that regulations or rulings are hereafter promulgated
which modify or expand provisions of the Code, as applicable to the Note, the City will not be
required to comply with any covenant contained herein to the extent that such failure to comply, in
the opinion of nationally recognized bond counsel, will not adversely affect the exemption from
federal income taxation of interest on the Note under section 103 of the Code. In the event that
regulations or rulings are hereafter promulgated which impose additional requirements which are
applicable to the Note, the City agrees to comply with the additional requirements to the extent
necessary, in the opinion of nationally recognized bond counsel, to preserve the exemption from
federal income taxation of interest on the Note under section 103 of the Code. In furtherance of such
intention, the City hereby authorizes and directs the Mayor, the City Manager and the Director or
Finance of the City to execute any documents, certificates or reports required by the Code and to
PAGE 18 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
17
make such elections, on behalf of the City, which may be permitted by the Code as are consistent
with the purpose for the issuance of the Note.
(d) Allocation of, and Limitation on, Expenditures for the Projects. The City covenants
to account for the expenditure of sale proceeds and investment earnings to be used for the purposes
described in Section 1 of this Ordinance (the "Projects") on its books and records in accordance with
the requirements of the Internal Revenue Code. The City recognizes that in order for the proceeds
to be considered used for the reimbursement of costs, the proceeds must be allocated to expenditures
within 18 months of the later of the date that (1) the expenditure is made, or (2) the Projects are
completed; but in no event later than three years after the date on which the original expenditure is
paid. The foregoing notwithstanding, the City recognizes that in order for proceeds to be expended
under the Internal Revenue Code, the sale proceeds or investment earnings must be expended no
more than 60 days after the earlier of (1) the fifth anniversary of the delivery of the Note, or (2) the
date the Note is retired. The City agrees to obtain the advice of nationally-recognized bond counsel
if such expenditure fails to comply with the foregoing to assure that such expenditure will not
adversely affect the tax-exempt status of the Note. For purposes hereof, the City shall not be
obligated to comply with this covenant if it obtains an opinion that such failure to comply will not
adversely affect the excludability for federal income tax purposes from gross income of the interest.
(e) Disposition of Projects. The City covenants that the property constituting the
Projects will not be sold or otherwise disposed in a transaction resulting in the receipt by the City
of cash or other compensation, unless any action taken in connection with such disposition will not
adversely affect the tax-exempt status of the Note. For purpose of the foregoing, the City may rely
on an opinion of nationally-recognized bond counsel that the action taken in connection with such
sale or other disposition will not adversely affect the tax-exempt status of the Note. For purposes
of the foregoing, the portion of the property comprising personal property and disposed in the
ordinary course shall not be treated as a transaction resulting in the receipt of cash or other
compensation. For purposes hereof, the City shall not be obligated to comply with this covenant if
it obtains an opinion that such failure to comply will not adversely affect the excludability for
federal income tax purposes from gross income of the interest.
(f) Written Procedures. Unless superseded by another action of the City, to ensure
compliance with the covenants contained herein regarding private business use, remedial actions,
arbitrage and rebate, the City Council hereby adopts and establishes the instructions attached hereto
as Exhibit B as the City's written procedures.
(g) Reimbursement. This Ordinance is intended to satisfy the official intent requirements
set forth in section 1.150-2 of the Treasury Regulations.
(h) Designation as Qualified Tax-Exempt Obligation. The City hereby designates the
Note as a "qualified tax-exempt obligation" as defined in section 265(b)(3) of the Code. In
furtherance of such designation, the City represents, covenants and warrants the following: (a) that
during the calendar year in which the Note is issued, the City (including any subordinate entities)
has not designated nor will designate obligations, which when aggregated with the Note, will result
in more than $10,000,000 of "qualified tax-exempt obligations" being issued; (b) that the City
PAGE 19 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
18
reasonably anticipates that the amount of tax-exempt obligations issued, during the calendar year
in which the Note is issued, by the City (or any subordinate entities) will not exceed $10,000,000;
and, (c) that the City will take such action or refrain from such action as necessary, and as more
particularly set forth in this Section, in order that the Note will not be considered a "private activity
bond" within the meaning of section 141 of the Code.
SECTION 13. SALE OF NOTE; USE OF PROCEEDS. The Note is hereby initially sold
and shall be delivered to ______________________________________ (the "Purchaser") for cash
for the par value thereof and no accrued interest, pursuant to a Purchase Letter, in substantially the
form attached hereto as Exhibit C, which the Mayor is hereby authorized to accept, approve all
changes, and execute on behalf of the City. In satisfaction of Section 1201.022(a)(3), Texas
Government Code, and upon consultation with the City's Financial Advisor, the City Council hereby
determines that the final terms of the Note as set forth in this Ordinance are in the City's best
interests. The Note initially shall be registered in the name of _________________________.
SECTION 14. NO RULE 15C2-12 UNDERTAKING; ANNUAL FINANCIAL
STATEMENTS. The City has not made an undertaking in accordance with Rule 15c2-12 of the
Securities and Exchange Commission (the "Rule") in connection with the issuance of the Note
inasmuch as the Purchaser is not acting as an "underwriter in a primary offering of municipal
securities" within the meaning of the Rule. The City is not, therefore, obligated pursuant to the Rule
to provide any on-going disclosure relating to the City or the Note; however, so long as the
Purchaser or its assignee is the sole Registered Owner of the Note, unless waived by the Purchaser,
the City shall provide the following to the Purchaser:
(a) Audited financial statements, to be provided within six months after the close of each
City fiscal year ending on and after September 30, 2019, and
(b) Such other financial information regarding the City as the Purchaser shall reasonably
request.
SECTION 15. FURTHER PROCEDURES. The Mayor, Mayor Pro-Tem, City Manager,
Director of Finance, and City Secretary of the City and all other officers, employees, and agents of
the City and each of them, are each hereby expressly authorized, empowered, and directed from time
to time and at any time to do and perform all such acts and things and to execute, acknowledge, and
deliver in the name and under the corporate seal and on behalf of the City all such instruments,
whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms
and provisions of this Ordinance and the Note. In addition, prior to the initial delivery of the Note,
the Mayor, City Manager, Director of Finance, the City Secretary, and the City's Bond Counsel are
hereby authorized and directed to approve any technical changes or correction to this Ordinance or
to any of the instruments authorized and approved by this Ordinance necessary in order to (i) correct
any ambiguity or mistake or properly or more completely document the transactions contemplated
and approved by this Ordinance, (ii) obtain a rating from any of the national bond rating agencies,
if any rating is obtained, or satisfy any requirements of the provider of a municipal bond insurance
policy, if any, or (iii) obtain the approval of the Note by the Attorney General of the State of Texas.
In case any officer whose signature shall appear on any Note shall cease to be such officer before
PAGE 20 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
19
the delivery of such Note, such signature shall nevertheless be valid and sufficient for all purposes
the same as if such officer had remained in office until such delivery.
SECTION 16. ORDINANCE A CONTRACT; AMENDMENTS. This Ordinance shall
constitute a contract with the Registered Owner of the Note, binding on the City and its successors
and assigns, and shall not be amended or repealed by the City as long as any Note remains
outstanding except as permitted in this Section. The City may, without the consent of or notice to
the Registered Owner (other than the Purchaser as long as the Purchaser is a Registered Owner, in
which case the City must receive the Purchaser's prior written consent to), amend, change, or modify
this Ordinance as may be required (i) by the provisions hereof, (ii) for the purpose of curing any
ambiguity, inconsistency, or formal defect or omission herein, or (iii) in connection with any other
change which is not to the prejudice of the Registered Owner. The City may, with the written
consent of the Registered Owner of the Note, amend, change, modify, or rescind any provisions of
this Ordinance not otherwise permitted to be amended in accordance with the preceding sentence.
Whenever the City shall desire to make any amendment or addition to or rescission of this
Ordinance requiring consent of the Registered Owner, the City shall cause notice of the amendment,
addition, or rescission to be sent by first class mail, postage prepaid, to the Registered Owner at the
respective addresses shown on the Registration Books. Whenever at any time within one year after
the date of the giving of such notice, the City shall receive an instrument or instruments in writing
executed by the Registered Owner of the Note requiring the consent of the Registered Owner, which
instrument or instruments shall refer to the proposed amendment, addition, or rescission described
in such notice and shall specifically consent to and approve the adoption thereof in substantially the
form of the copy thereof referred to in such notice, thereupon, but not otherwise, the City may adopt
such amendment, addition, or rescission in substantially such form, except as herein provided. No
Registered Owner may thereafter object to the adoption of such amendment, addition, or rescission,
or to any of the provisions thereof, and such amendment, addition, or rescission shall be fully
effective for all purposes.
SECTION 17. DEFAULTS AND REMEDIES. In addition to all the rights and remedies
provided by the laws of the State of Texas, it is specifically covenanted and agreed particularly that
in the event the City (i) defaults in the payment of the principal, premium, if any, or interest on the
Note, (ii) defaults in the deposits and credits required to be made to the Interest and Sinking Fund,
or (iii) defaults in the observance or performance of any other of the covenants, conditions or
obligations set forth in this Ordinance and the continuation thereof for 30 days after the City has
received written notice of such defaults, the Registered Owner of the Note shall be entitled to seek
a writ of mandamus issued by a court of proper jurisdiction compelling and requiring the governing
body of the City and other officers of the City to observe and perform any covenant, condition or
obligation prescribed in this Ordinance.
No delay or omission to exercise any right or power accruing upon any default shall impair
any such right or power or shall be construed to be a waiver of any such default or acquiescence
therein, and every such right and power may be exercised from time to time and as often as may be
deemed expedient. The specific remedy herein provided shall be cumulative of all other existing
remedies, and the specification of such remedy shall not be deemed to be exclusive.
PAGE 21 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
20
SECTION 18. INTERESTED PARTIES. Nothing in this Ordinance expressed or implied
is intended or shall be construed to confer upon, or to give to, any person or entity, other than the
City and the Registered Owner of the Note, any right, remedy or claim under or by reason of this
Ordinance or any covenant, condition or stipulation hereof, and all covenants, stipulations, promises
and agreements in this Ordinance contained by and on behalf of the City shall be for the sole and
exclusive benefit of the City and the Registered Owner of the Note.
SECTION 19. INCORPORATION OF RECITALS. The City hereby finds that the
statements set forth in the recitals of this Ordinance are true and correct, and the City hereby
incorporates such recitals as a part of this Ordinance.
SECTION 20. SEVERABILITY. The provisions of this Ordinance are severable and if any
provision or the applicability thereof to any person or circumstance is ever held by a court of
competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this
Ordinance and the application of such provisions to other persons or circumstances shall not be
affected thereby.
SECTION 21. EFFECTIVE DATE. Pursuant to the provisions of Section 1201.028, Texas
Government Code, this Ordinance shall become effective immediately upon adoption by the City
Council.
[The remainder of this page intentionally left blank]
PAGE 22 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE,
TEXAS AT A REGULAR MEETING ON THE 20TH DAY OF AUGUST, 2019, AT WHICH
MEETING A QUORUM WAS PRESENT.
ATTEST:
____________________________________
City Secretary
__________________________________
Mayor
(Seal)
** ** ** ** **
Signature Page to Ordinance Authorizing the Issuance of
City of Kennedale, Texas Tax Note, Series 2019
PAGE 23 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
EXHIBIT A
FORM OF PAYING AGENT/REGISTRAR AGREEMENT
The Paying Agent/Registrar Agreement is omitted at this point as it appears in
executed form elsewhere in this Transcript of Proceedings.
PAGE 24 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
B-1
EXHIBIT B
WRITTEN PROCEDURES RELATING TO
CONTINUING COMPLIANCE WITH FEDERAL TAX COVENANTS
A. Arbitrage. With respect to the investment and expenditure of the proceeds of the
Certificates, the City's chief financial officer (the "Responsible Person"), which is currently the
Director of Finance will:
(i) instruct the appropriate person or persons that the construction, renovation or
acquisition of the facilities must proceed with due diligence and that binding
contracts for the expenditure of at least 5%of the proceeds of the Note will be
entered into within six (6) months of the date of delivery of the Note (the "Issue
Date");
(ii) monitor that at least 85% of the proceeds of the Note to be used for the construction,
renovation or acquisition of any facilities are expended within three (3) years of the
Issue Date;
(iii) restrict the yield of the investments to the yield on the Note after three (3) years of
the Issue Date;
(iv) monitor all amounts deposited into a sinking fund or funds (e.g., the Interest and
Sinking Fund), to assure that the maximum amount invested at a yield higher than
the yield on the Note does not exceed an amount equal to the debt service on the
Note in the succeeding 12 month period plus a carryover amount equal to one-twelfth
of the principal and interest payable on the Note for the immediately preceding
12-month period;
(v) ensure that no more than 50% of the proceeds of the Note are invested in an
investment with a guaranteed yield for 4 years or more;
(vi) maintain any official action of the City (such as a reimbursement resolution) stating
its intent to reimburse with the proceeds of the Note any amount expended prior to
the Issue Date for the acquisition, renovation or construction of the facilities;
(vii) ensure that the applicable information return (e.g., IRS Form 8038-G, 8038-GC, or
any successor forms) is timely filed with the IRS; and
(viii) assure that, unless excepted from rebate and yield restriction under section 148(f) of
the Code, excess investment earnings are computed and paid to the U.S. government
at such time and in such manner as directed by the IRS (A) at least every 5 years
after the Issue Date and (B) within 30 days after the date the Note is retired.
PAGE 25 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
B-2
B. Private Business Use. With respect to the use of the facilities financed or refinanced
with the proceeds of the Note the Responsible Person will:
(i) monitor the date on which the facilities are substantially complete and available to
be used for the purpose intended;
(ii) monitor whether, at any time the Note is outstanding, any person, other than the City,
the employees of the City, the agents of the City or members of the general public
has any contractual right (such as a lease, purchase, management or other service
agreement) with respect to any portion of the facilities;
(iii) monitor whether, at any time the Note is outstanding, any person, other than the City,
the employees of the City, the agents of the City or members of the general public
has a right to use the output of the facilities (e.g., water, gas, electricity);
(iv) monitor whether, at any time the Note is outstanding, any person, other than the City,
the employees of the City, the agents of the City or members of the general public
has a right to use the facilities to conduct or to direct the conduct of research;
(v) determine whether, at any time the Note is outstanding, any person, other than the
City, has a naming right for the facilities or any other contractual right granting an
intangible benefit;
(vi) determine whether, at any time the Note is outstanding, the facilities are sold or
otherwise disposed of; and
(vii) take such action as is necessary to remediate any failure to maintain compliance with
the covenants contained in the Ordinance related to the public use of the facilities.
C. Record Retention. The Responsible Person will maintain or cause to be maintained
all records relating to the investment and expenditure of the proceeds of the Note and the use of the
facilities financed or refinanced thereby for a period ending three (3) years after the complete
extinguishment of the Note. If any portion of the Note is refunded with the proceeds of another
series of tax-exempt obligations, such records shall be maintained until the three (3) years after the
refunding obligations are completely extinguished. Such records can be maintained in paper or
electronic format.
D. Responsible Person. The Responsible Person shall receive appropriate training
regarding the City's accounting system, contract intake system, facilities management and other
systems necessary to track the investment and expenditure of the proceeds and the use of the
facilities financed or refinanced with the proceeds of the Note. The foregoing notwithstanding, the
Responsible Person is authorized and instructed to retain such experienced advisors and agents as
may be necessary to carry out the purposes of these instructions.
PAGE 26 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
EXHIBIT C
FORM OF PURCHASE LETTER
The Purchase Letter is omitted at this point as it appears
in executed form elsewhere in this Transcript of Proceedings.
PAGE 27 of 27 INCLUDING EXHIBITS A, B and C
O670 CITY OF KENNEDALE, TX 2019
DRAFT DATE: AUGUST 8, 2019
PAYING AGENT/REGISTRAR AGREEMENT
THIS PAYING AGENT/REGISTRAR AGREEMENT, dated as of September 1, 2019 (this
"Agreement"), is by and between the CITY OF KENNEDALE, TEXAS (the "Issuer") and
___________________________, ________, Texas (the "Bank"), a national bank duly organized
and operating under the laws of the United States of America.
WHEREAS, the Issuer has duly authorized and provided for the issuance of its CITY OF
KENNEDALE, TEXAS TAX NOTE, SERIES 2019 (the "Securities"), such Securities to be issued in
fully registered form only as to the payment of principal and interest thereon; and
WHEREAS, the Securities are scheduled to be delivered to the initial purchaser thereof on
or about September 18, 2019; and
WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in
connection with the payment of the principal of, premium, if any, and interest on the Securities and
with respect to the registration, transfer, and exchange thereof by the registered owners thereof; and
WHEREAS, the Bank has agreed to serve in such capacities for and on behalf of the Issuer
and has full power and authority to perform and serve as Paying Agent/Registrar for the Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE ONE
APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR
SECTION 1.01. APPOINTMENT. The Issuer hereby appoints the Bank to serve as Paying
Agent with respect to the Securities. As Paying Agent for the Securities, the Bank shall be
responsible for paying on behalf of the Issuer the principal, premium (if any), and interest on the
Securities as the same become due and payable to the registered owners thereof, all in accordance
with this Agreement and the "Ordinance" (hereinafter defined).
The Issuer hereby appoints the Bank as Registrar with respect to the Securities. As Registrar
for the Securities, the Bank shall keep and maintain for and on behalf of the Issuer books and records
as to the ownership of said Securities and with respect to the transfer and exchange thereof as
provided herein and in the Ordinance, a copy of which books and records shall be maintained at the
office of the Bank located in the State of Texas or shall be available to be accessed from such office
located in the State of Texas.
The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and
Registrar for the Securities.
2
SECTION 1.02. COMPENSATION. As compensation for the Bank's services as Paying
Agent/Registrar, the Issuer hereby agrees to pay the Bank the fees and amounts set forth in
Schedule A attached hereto for the first year of this Agreement and thereafter the fees and amounts
set forth in the Bank's current fee schedule then in effect for services as Paying Agent/Registrar for
municipalities, which shall be supplied to the Issuer on or before 90 days prior to the close of the
Fiscal Year of the Issuer, and shall be effective upon the first day of the following Fiscal Year.
In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable
expenses, disbursements and advances incurred or made by the Bank in accordance with any of the
provisions hereof (including the reasonable compensation and the expenses and disbursements of
its agents and counsel).
ARTICLE TWO
DEFINITIONS
SECTION 2.01. DEFINITIONS. For all purposes of this Agreement, except as otherwise
expressly provided or unless the context otherwise requires:
"Bank Office" means the corporate trust or commercial banking office of the Bank initially
located at the following address:
_____________________________
Attention: ____________________
_____________________________
_______, Texas _____
The Bank will notify the Issuer in writing of any change in location of the Bank Office.
"Financial Advisor" means SAMCO Capital Markets, Inc.
"Fiscal Year" means the fiscal year of the Issuer, ending September 30.
"Holder" and "Security Holder" each means the Person in whose name a Security is
registered in the Security Register.
"Legal Holiday" means a day on which the Bank is required or authorized to be closed.
"Ordinance" means the resolutions, orders or ordinances of the governing body of the Issuer
pursuant to which the Securities are issued, certified by the Secretary or any other officer of the
Issuer and delivered to the Bank, together with any pricing certificate executed pursuant thereto.
"Person" means any individual, corporation, partnership, joint venture, association, joint
stock company, trust, unincorporated organization or government or any agency or political
subdivision of a government.
3
"Predecessor Securities" of any particular Security means every previous Security
evidencing all or a portion of the same obligation as that evidenced by such particular Security (and,
for the purposes of this definition, any mutilated, lost, destroyed, or stolen Security for which a
replacement Security has been registered and delivered in lieu thereof pursuant to Section 4.06
hereof and the Ordinance).
"Redemption Date" when used with respect to any Security to be redeemed means the date
fixed for such redemption pursuant to the terms of the Ordinance.
"Responsible Officer" when used with respect to the Bank means the Chairman or Vice-
Chairman of the Board of Directors, the Chairman or Vice-chairman of the Executive Committee
of the Board of Directors, the President, any Vice President, the Secretary, any Assistant Secretary,
the Treasurer, any Assistant Treasurer, the Cashier, any Assistant Cashier, any Trust Officer or
Assistant Trust Officer, or any other officer of the Bank customarily performing functions similar
to those performed by any of the above designated officers and also means, with respect to a
particular corporate trust matter, any other officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.
"Security Register" means a register maintained by the Bank on behalf of the Issuer
providing for the registration and transfer of the Securities.
"Stated Maturity" means the date specified in the Ordinance the principal of a Security is
scheduled to be due and payable.
SECTION 2.02. OTHER DEFINITIONS. The terms "Bank," "Issuer," and "Securities"
("Security") have the meanings assigned to them in the recital paragraphs of this Agreement.
The term "Paying Agent/Registrar" refers to the Bank in the performance of the duties and
functions of this Agreement.
ARTICLE THREE
PAYING AGENT
SECTION 3.01. DUTIES OF PAYING AGENT. (a) Principal Payments. As Paying Agent, the
Bank shall, provided adequate collected funds have been provided to it for such purpose by or on
behalf of the Issuer, pay on behalf of the Issuer the principal of each Security at its Stated Maturity
or Redemption Date, to the Holder upon surrender of the Security to the Bank at the Bank Office.
(b) Interest Payments. As Paying Agent, the Bank shall, provided adequate collected funds
have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer
the interest on each Security when due, by computing the amount of interest to be paid each Holder
and preparing and sending checks by United States mail, first class postage prepaid, on each
payment date, to the Holders of the Securities (or their Predecessor Securities) on the respective
4
Record Date, to the address appearing on the Security Register or by such other method, acceptable
to the Bank, requested in writing by the Holder at the Holder's risk and expense.
(c) Federal Tax Information Reporting. To the extent required by the Code and the
Regulations it shall be the duty of the Bank to report to the owners of the Securities and the Internal
Revenue Service (i) the amount of "reportable payments," if any, subject to back up withholding
during each year and the amount of tax withheld, if any, with respect to the payments on the
Securities, and (ii) the amount of interest or amount treated as interest, such as original issue
discount, on the Securities required to be included in the gross income of the owners thereof for
federal income tax purposes.
SECTION 3.02. PAYMENT DATES. The Issuer hereby instructs the Bank to pay the principal
of and interest on the Securities on the dates specified in the Ordinance.
ARTICLE FOUR
REGISTRAR
SECTION 4.01. SECURITY REGISTER - TRANSFERS AND EXCHANGES. The Bank agrees to
keep and maintain for and on behalf of the Issuer at the Bank Office books and records (herein
sometimes referred to as the "Security Register") for recording the names and addresses of the
Holders of the Securities, the transfer, exchange, and replacement of the Securities, and the payment
of the principal of and interest on the Securities to the Holders and containing such other information
as may be reasonably required by the Issuer and subject to such reasonable regulations as the Issuer
and the Bank may prescribe. If the Bank Office is located outside the State of Texas, a copy of the
Security Register shall be kept in the State of Texas. All transfers, exchanges, and replacement of
Securities shall be noted in the Security Register.
Every Security surrendered for transfer or exchange shall be duly endorsed or be
accompanied by a written instrument of transfer, the signature on which has been guaranteed by an
officer of a federal or state bank or a member of the Financial Industry Regulatory Authority, in
form satisfactory to the Bank, duly executed by the Holder thereof or his agent duly authorized in
writing.
The Bank may request any supporting documentation it feels necessary to effect a re-
registration, transfer, or exchange of the Securities.
To the extent possible and under reasonable circumstances, the Bank agrees that, in relation
to an exchange or transfer of Securities, the exchange or transfer by the Holders thereof will be
completed and new Securities delivered to the Holder or the assignee of the Holder in not more than
three business days after the receipt of the Securities to be cancelled in an exchange or transfer and
the written instrument of transfer or request for exchange duly executed by the Holder, or his duly
authorized agent, in form and manner satisfactory to the Paying Agent/Registrar.
5
SECTION 4.02. SECURITIES. The Issuer shall provide an adequate inventory of printed
Securities to facilitate transfers or exchanges thereof. The Bank covenants that the inventory of
printed Securities will be kept in safekeeping pending their use, and reasonable care will be
exercised by the Bank in maintaining such Securities in safekeeping, which shall be not less than
the care maintained by the Bank for debt securities of other political subdivisions or corporations
for which it serves as registrar, or that is maintained for its own securities.
SECTION 4.03. FORM OF SECURITY REGISTER. The Bank, as Registrar, will maintain the
Security Register relating to the registration, payment, transfer, and exchange of the Securities in
accordance with the Bank's general practices and procedures in effect from time to time. The Bank
shall not be obligated to maintain such Security Register in any form other than those which the
Bank has currently available and currently utilizes at the time.
The Security Register may be maintained in written form or in any other form capable of
being converted into written form within a reasonable time.
SECTION 4.04. LIST OF SECURITY HOLDERS. The Bank will provide the Issuer at any time
requested by the Issuer, upon payment of the required fee, a copy of the information contained in
the Security Register. The Issuer may also inspect the information contained in the Security
Register at any time the Bank is customarily open for business, provided that reasonable time is
allowed the Bank to provide an up-to-date listing or to convert the information into written form.
Unless required by law, the Bank will not release or disclose the contents of the Security
Register to any person other than to, or at the written request of, an authorized officer or employee
of the Issuer, except upon receipt of a court order or as otherwise required by law. Upon receipt of
a court order and prior to the release or disclosure of the contents of the Security Register, the Bank
will notify the Issuer so that the Issuer may contest the court order or such release or disclosure of
the contents of the Security Register.
SECTION 4.05. RETURN OF CANCELLED SECURITIES. The Bank will, at such reasonable
intervals as it determines, surrender Securities to the Issuer in lieu of which or in exchange for which
other Securities have been issued, or which have been paid, or will provide a certificate of
destruction relating thereto.
SECTION 4.06. MUTILATED, DESTROYED, LOST, OR STOLEN SECURITIES. The Issuer
hereby instructs the Bank, subject to the applicable provisions of the Ordinance, to deliver and issue
Securities in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities as long as the
same does not result in an over issuance.
In case any Security shall be mutilated, or destroyed, lost, or stolen, the Bank, in its
discretion, may execute and deliver a replacement Security of like form and tenor, and in the same
denomination and bearing a number not contemporaneously outstanding, in exchange and
substitution for such mutilated Security, or in lieu of and in substitution for such destroyed, lost, or
stolen Security, only after (i) the filing by the Holder thereof with the Bank of evidence satisfactory
6
to the Bank of the destruction, loss, or theft of such Security, and of the authenticity of the
ownership thereof and (ii) the furnishing to the Bank of indemnification in an amount satisfactory
to hold the Issuer and the Bank harmless. All expenses and charges associated with such indemnity
and with the preparation, execution, and delivery of a replacement Security shall be borne by the
Holder of the Security mutilated, or destroyed, lost, or stolen.
SECTION 4.07. TRANSACTION INFORMATION TO ISSUER. The Bank will, within a
reasonable time after receipt of written request from the Issuer, furnish the Issuer information as to
the Securities it has paid pursuant to Section 3.01, Securities it has delivered upon the transfer or
exchange of any Securities pursuant to Section 4.01, and Securities it has delivered in exchange for
or in lieu of mutilated, destroyed, lost, or stolen Securities pursuant to Section 4.06.
ARTICLE FIVE
THE BANK
SECTION 5.01. DUTIES OF BANK. The Bank undertakes to perform the duties set forth
herein and in the Ordinance and agrees to use reasonable care in the performance thereof.
The Bank is also authorized to transfer funds relating to the closing and initial delivery of
the Securities in the manner disclosed in the closing memorandum as prepared by the Issuer's
Financial Advisor, bond counsel or other agent. The Bank may act on a facsimile or e-mail
transmission of the closing memorandum acknowledged by the Financial Advisor or the Issuer as
the final closing memorandum. The Bank shall not be liable for any losses, costs or expenses arising
directly or indirectly from the Bank's reliance upon and compliance with such instructions.
SECTION 5.02. RELIANCE ON DOCUMENTS, ETC. (a) The Bank may conclusively rely, as
to the truth of the statements and correctness of the opinions expressed therein, on certificates or
opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it shall be proved that the Bank was negligent in ascertaining the
pertinent facts.
(c) No provisions of this Agreement shall require the Bank to expend or risk its own funds
or otherwise incur any financial liability for performance of any of its duties hereunder, or in the
exercise of any of its rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity satisfactory to it against such risks or liability is not
assured to it.
(d) The Bank may rely and shall be protected in acting or refraining from acting upon any
resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, note, security, or other paper or document believed by it to be genuine and to have been
signed or presented by the proper party or parties. Without limiting the generality of the foregoing
statement, the Bank need not examine the ownership of any Securities, but is protected in acting
7
upon receipt of Securities containing an endorsement or instruction of transfer or power of transfer
which appears on its face to be signed by the Holder or an agent of the Holder. The Bank shall not
be bound to make any investigation into the facts or matters stated in a resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security,
or other paper or document supplied by the Issuer.
(e) The Bank may consult with counsel, and the written advice of such counsel or any
opinion of counsel shall be full and complete authorization and protection with respect to any action
taken, suffered, or omitted by it hereunder in good faith and in reliance thereon.
(f) The Bank may exercise any of the powers hereunder and perform any duties hereunder
either directly or by or through agents or attorneys of the Bank.
SECTION 5.03. RECITALS OF ISSUER. The recitals contained herein with respect to the
Issuer and in the Securities shall be taken as the statements of the Issuer, and the Bank assumes no
responsibility for their correctness.
The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Security, or
any other Person for any amount due on any Security from its own funds.
SECTION 5.04. MAY HOLD SECURITIES. The Bank, in its individual or any other capacity,
may become the owner or pledgee of Securities and may otherwise deal with the Issuer with the
same rights it would have if it were not the Paying Agent/Registrar, or any other agent.
SECTION 5.05. MONEY HELD BY BANK. The Bank shall deposit any moneys received from
the Issuer into an account to be held in an agency capacity for the payment of the Securities,
with such moneys in the account that exceed the deposit insurance, available to the Issuer, provided
by the Federal Deposit Insurance Corporation to be fully collateralized with securities or
obligations that are eligible under the laws of the State of Texas and to the extent practicable
under the laws of the United States of America to secure and be pledged as collateral for trust
accounts until the principal and interest on such securities have been presented for payment and paid
to the owner thereof. Payments made from such trust account shall be made by check drawn on
such trust account unless the owner of such Securities shall, at its own expense and risk, request
such other medium of payment.
Funds held by the Bank hereunder need not be segregated from any other funds provided
appropriate accounts are maintained in the name and for the benefit of the Issuer.
The Bank shall be under no liability for interest on any money received by it hereunder.
Any money deposited with the Bank for the payment on any Security and remaining
unclaimed for three years after final maturity of the Security has become due and payable will be
held by the Bank and disposed of only in accordance with Title 6 of the Property Code (Unclaimed
Property).
8
The Bank will comply with the reporting provisions of Chapter 74 of the Property Code with
respect to property that is presumed abandoned under Chapter 72 or Chapter 75 of the Property Code
or inactive under Chapter 73 of the Property Code.
SECTION 5.06. INDEMNIFICATION. To the extent permitted by law, the Issuer agrees to
indemnify the Bank for, and hold it harmless against, any loss, liability, or expense incurred without
negligence or bad faith on its part, arising out of or in connection with its acceptance or
administration of its duties hereunder, including the cost and expense against any claim or liability
in connection with the exercise or performance of any of its powers or duties under this Agreement.
SECTION 5.07. INTERPLEADER. The Issuer and the Bank agree that the Bank may seek
adjudication of any adverse claim, demand, or controversy over its person as well as funds on
deposit, in either a Federal or State District Court located in the County in the State of Texas where
either the Bank maintains an office or the administrative offices of the Issuer is located, and agree
that service of process by certified or registered mail, return receipt requested, to the address referred
to in Section 6.03 of this Agreement shall constitute adequate service. The Issuer and the Bank
further agree that the Bank has the right to file a Bill of Interpleader in any court of competent
jurisdiction located in the State of Texas to determine the rights of any Person claiming any interest
herein.
SECTION 5.08. DEPOSITORY TRUST COMPANY SERVICES. It is hereby represented and
warranted that, in the event the Securities are otherwise qualified and accepted for "Depository Trust
Company" services or equivalent depository trust services by other organizations, the Bank has the
capability and, to the extent within its control, will comply with the "Operational Arrangements,"
effective from time to time, which establishes requirements for securities to be eligible for such type
depository trust services, including, but not limited to, requirements for the timeliness of payments
and funds availability, transfer turnaround time, and notification of redemptions and calls.
SECTION 5.09. CERTIFICATE OF INTERESTED PARTIES FORM 1295. The Bank represents
that it is a wholly owned subsidiary of a "publicly traded business entity" within the meaning of
Section 2252.908(c)(4), Texas Government Code; therefore, the Bank further represents that it is
not required to submit a disclosure of interested parties form to the Issuer in accordance with Section
2252.908(d), Texas Government Code, prior to entering into this Agreement with the Issuer.
SECTION 5.09. NO BOYCOTT OF ISRAEL. The Bank hereby verifies that it and its parent
company, wholly- or majority-owned subsidiaries, and other affiliates, if any, do not boycott Israel
and, to the extent this Agreement is a contract for goods or services, will not boycott Israel during
the term of this Agreement. The foregoing verification is made solely to comply with Section
2270.002, Texas Government Code, and to the extent such Section does not contravene applicable
Federal law. As used in the foregoing verification, "boycott Israel" means refusing to deal with,
terminating business activities with, or otherwise taking any action that is intended to penalize,
inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or
entity doing business in Israel or in an Israeli-controlled territory, but does not include an action
9
made for ordinary business purposes. The Bank understands "affiliate" to mean an entity that
controls, is controlled by, or is under common control with the Bank and exists to make a profit
SECTION 5.10. NOT A LISTED COMPANY. The Bank represents that neither it nor any of its
parent company, wholly- or majority-owned subsidiaries, and other affiliates is a company identified
on a list prepared and maintained by the Texas Comptroller of Public Accounts under Section
2252.153 or Section 2270.0201, Texas Government Code, and posted on any of the following pages
of such officer's internet website:
https://comptroller.texas.gov/purchasing/docs/sudanlist.pdf;
https://comptroller. texas. gov/purchasing/docs/iran-list.pdf; or
https://comptroller. texas.gov/purchasing/docs/ftolist.pdf.
The foregoing representation is made solely to comply with Section 2252.152, Texas Government
Code, and to the extent such Section does not contravene applicable Federal law and excludes the
Bank and each of its parent company, wholly- or majority-owned subsidiaries, and other affiliates,
if any, that the United States government has affirmatively declared to be excluded from its federal
sanctions regime relating to Sudan or Iran or any federal sanctions regime relating to a foreign
terrorist organization. The Bank understands "affiliate" to mean any entity that controls, is controlled
by, or is under common control with the Bank and exists to make a profit.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
SECTION 6.01. AMENDMENT. This Agreement may be amended only by an agreement in
writing signed by both of the parties hereto.
SECTION 6.02. ASSIGNMENT. This Agreement may not be assigned by either party without
the prior written consent of the other.
SECTION 6.03. NOTICES. Any request, demand, authorization, direction, notice, consent,
waiver, or other document provided or permitted hereby to be given or furnished to the Issuer or the
Bank shall be mailed or delivered to the Issuer or the Bank, respectively, at the addresses set forth
below:
Issuer: City of Kennedale, Texas
405 Municipal Drive
Kennedale, Texas 76060
Bank: _____________________
Attention: _____________
_____________________
_________, Texas _____
10
SECTION 6.04. EFFECT OF HEADINGS. The Article and Section headings herein are for
convenience only and shall not affect the construction hereof.
SECTION 6.05. SUCCESSORS AND ASSIGNS; MERGER, CONVERSION, CONSOLIDATION OR
SUCCESSION. All covenants and agreements herein by the Issuer shall bind its successors and
assigns, whether so expressed or not.
Any corporation into which the Bank may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion, or consolidation to which
the Bank shall be a party, or any corporation succeeding to all or substantially all of the corporate
trust business of the Bank shall be the successor the Bank hereunder without the execution or filing
of any paper or any further act on the part of either of the parties hereto. In case any Security shall
have been registered, but not delivered, by the Bank then in office, any successor by merger,
conversion, or consolidation to such authenticating Bank may adopt such registration and deliver
the Security so registered with the same effect as if such successor Bank had itself registered such
Security.
SECTION 6.06. SEVERABILITY. In case any provision herein shall be invalid, illegal, or
unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any
way be affected or impaired thereby.
SECTION 6.07. BENEFITS OF AGREEMENT. Nothing herein, express or implied, shall give
to any Person, other than the parties hereto and their successors hereunder, any benefit or any legal
or equitable right, remedy, or claim hereunder.
SECTION 6.08. ENTIRE AGREEMENT. This Agreement and the Ordinance constitute the
entire agreement between the parties hereto relative to the Bank acting as Paying Agent/Registrar
and if any conflict exists between this Agreement and the Ordinance, the Ordinance shall govern.
SECTION 6.09. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all of which shall constitute one and the
same Agreement.
SECTION 6.10. TERMINATION. This Agreement will terminate on the date of final payment
of the principal of and interest on the Securities to the Holders thereof or may be earlier terminated
by either party upon 60 days written notice; provided, however, an early termination of this
Agreement by either party shall not be effective until (a) a successor Paying Agent/Registrar has
been appointed by the Issuer and such appointment accepted, and (b) notice has been given to the
Holders of the Securities of the appointment of a successor Paying Agent/Registrar. If the 60-day
notice period expires and no successor has been appointed, the Bank, at the expense of the Issuer,
has the right to petition a court of competent jurisdiction to appoint a successor under the
Agreement. Furthermore, the Bank and the Issuer mutually agree that the effective date of an early
termination of this Agreement shall not occur at any time which would disrupt, delay or otherwise
adversely affect the payment of the Securities.
11
Upon an early termination of this Agreement, the Bank agrees to promptly transfer and
deliver the Security Register (or a copy thereof), together with other pertinent books and records
relating to the Securities, to the successor Paying Agent/Registrar designated and appointed by the
Issuer.
The provisions of Section 1.02 and of Article Five shall survive and remain in full force and
effect following the termination of this Agreement.
SECTION 6.11. GOVERNING LAW. This Agreement shall be construed in accordance with
and governed by the laws of the State of Texas.
[The remainder of this page intentionally left blank]
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.
_____________________
By: _________________________________
Title: _________________________________
Attest:
________________________________
Title: ___________________________
CITY OF KENNEDALE, TEXAS
By: ________________________________
Mayor
Address: 405 Municipal Drive
Kennedale, Texas 76060
Attest:
________________________________
City Secretary
Signature Page to Paying Agent/Registrar Agreement Relating to
City of Kennedale, Texas Tax Note, Series 2019
SCHEDULE A
PAYING AGENT/REGISTRAR FEE SCHEDULE
See attached
DRAFT DATE: AUGUST 8, 2019
$___________
CITY OF KENNEDALE, TEXAS TAX NOTE, SERIES 2019
TABLE OF CONTENTS
PRIMARY FINANCING DOCUMENTS AND AGREEMENTS
*Note Ordinance........................................................... 1
*Purchase Letter ........................................................... 2
*Paying Agent/Registrar Agreement ........................................... 3
DOCUMENTS RELATED TO TAX EXEMPTION
Federal Tax Certificate ..................................................... 4
Form 8038-G ............................................................. 5
NOTES
*General Certificate ........................................................ 6
* Signature Identification and No-Litigation Certificate ............................. 7
MISCELLANEOUS DOCUMENTS
* Instruction Letters to Attorney General and Comptroller of Public Accounts ........... 8
Evidence of Business Entities Filing Form 1295 Ethics Disclosure Form .............. 9
Closing Memorandum ..................................................... 10
Receipt for Proceeds ....................................................... 11
OPINIONS
Attorney General's Opinion with Comptroller's Registration Note ................... 12
Opinion of Bond Counsel ................................................... 13
_______________________
*Indicates documents included in the Transcript of Proceedings submitted to the Attorney General of Texas.
CERTIFICATE FOR ORDINANCE
THE STATE OF TEXAS §
COUNTY OF TARRANT §
CITY OF KENNEDALE §
I, the undersigned City Secretary of the CITY OF KENNEDALE, TEXAS (the "City"), hereby certify as
follows:
1. The City Council of the City (the "City Council") convened in Regular Meeting on
August 20, 2019, at the City Hall (the "Meeting"), and the roll was called of the duly constituted officers and
members of the City Council, to wit:
Brian Johnson, Mayor
Sandra Lee, Councilmember - Place 3
Josh Altom, Councilmember - Place 1
Chris Pugh, Councilmember - Place 2
Linda Rhodes, Councilmember - Place 4
Chad Wandel, Councilmember - Place 5
and all of the officers and members of the City Council were present, except the following absentees:
, thus constituting a quorum. Whereupon, among other business, the following
was transacted at the Meeting: a written
ORDINANCE AUTHORIZING THE ISSUANCE OF $______________ IN
PRINCIPAL AMOUNT OF CITY OF KENNEDALE, TEXAS TAX NOTE, SERIES
2019; SECURING THE PAYMENT THEREOF BY AUTHORIZING THE LEVY OF
AN ANNUAL AD VALOREM TAX; AND APPROVING AND AUTHORIZING THE
EXECUTION OF A PAYING AGENT/REGISTRAR AGREEMENT, A PURCHASE
LETTER, AND ALL OTHER INSTRUMENTS AND PROCEDURES RELATED
THERETO
(the "Ordinance") was duly introduced for the consideration of the City Council. It was then duly moved and
seconded that the Ordinance be adopted; and, after due discussion, said motion carrying with it the adoption
of the Ordinance, prevailed and carried by the following vote:
AYES: NOES: ABSTENTIONS:
2. A true, full and correct copy of the Ordinance adopted at the Meeting described in the above and
foregoing paragraph is attached to and follows this Note; the Ordinance has been duly recorded in the City
Council's minutes of the Meeting; the above and foregoing paragraph is a true, full and correct excerpt from
the City Council's minutes of the Meeting pertaining to the passage of the Ordinance; the persons named in
the above and foregoing paragraph are the duly chosen, qualified and acting officers and members of the City
Council as indicated therein; each of the officers and members of the City Council was duly and sufficiently
notified officially and personally, in advance, of the time, place and purpose of the Meeting, and that the
Ordinance would be introduced and considered for passage at the Meeting, and each of the officers and
members consented, in advance, to the holding of the Meeting for such purpose; and the Meeting was open
to the public and public notice of the time, place and purpose of the Meeting was given, all as required by
Chapter 551, Texas Government Code.
SIGNED AND SEALED the 20th day of August, 2019.
____________________________________
(SEAL) City Secretary
City of Kennedale, Texas
Signature Page to the Note for Ordinance Relating to the Issuance of
City of Kennedale, Texas Tax Note, Series 2019
GENERAL CERTIFICATE
THE STATE OF TEXAS §
COUNTY OF TARRANT §
CITY OF KENNEDALE §
We, the undersigned, hereby officially certify that we are the Mayor and City Secretary,
respectively, of the CITY OF KENNEDALE, TEXAS (the "City"), and we further certify as follows:
1. This Certificate is given for the benefit of the Attorney General of the State of Texas
and all parties interested in the CITY OF KENNEDALE, TEXAS TAX NOTE, SERIES 2019 (the "Note"),
dated as of September 1, 2019, and authorized by an ordinance passed by the City Council of the
City on August 20, 2019 (the "Ordinance").
2. The City is a duly incorporated Home Rule City, having more than 5,000 inhabitants,
operating and existing under the Constitution and laws of the State of Texas and the duly adopted
Home Rule Charter of the City, which Charter has not been changed or amended since the voters
of the City approved certain amendments at an election held on May 4, 2019.
3. No litigation of any nature has ever been filed pertaining to, affecting or contesting:
(a) the issuance, delivery, payment, security or validity of the proposed Note; (b) the authority of
the officers of the City to issue, execute and deliver the Note; or (c) the validity of the corporate
existence or the current Tax Rolls of the City; and no litigation is pending pertaining to, affecting
or contesting the boundaries of the City.
4. The currently effective ad valorem tax appraisal roll of the City (the "Tax Roll") is
the Tax Roll prepared and approved during the calendar year 2019, being the most recently approved
Tax Roll of the City; that the taxable property in the City has been appraised, assessed, and valued
as required and provided by the Texas Constitution and Property Tax Code (collectively, "Texas
law"); that the Tax Roll for said year has been submitted to the City Council of the City as required
by Texas law, and has been approved and recorded by the City Council; and according to the Tax
Roll for said year the net aggregate taxable value of taxable property in the City (after deducting the
amount of all applicable exemptions required or authorized under Texas law), upon which the annual
ad valorem tax of the City has been or will be imposed and levied, is $____________.
5. Attached hereto as Exhibit A is a true, full and correct schedule and statement of the
aforesaid proposed Note, and all presently outstanding tax indebtedness of the City, and attached
hereto as Exhibit B is a combined debt service schedule for all outstanding tax indebtedness of the
City (including the proposed Note). The City is not in default as to any covenant, condition, or
obligation in connection with any of such outstanding obligations or the ordinances authorizing
same.
2
6. The following persons are the duly elected members of the City Council of the City
as of the date hereof:
Mayor
Councilmember - Place 1
Councilmember - Place 2
Mayor Pro Tem - Place 3
Councilmember - Place 4
Councilmember - Place 5
Brian Johnson
Josh Altom
Chris Pugh
Sandra Lee
Linda Rhodes
Chad Wandel
7. The following persons are the duly appointed City Manager, City Secretary and
Director of Finance of the City as of the date hereof:
City Manager
City Secretary
Director of Finance
George Campbell
Leslie E. Galloway
Lakeita Sutton
8. The City received all required disclosure filings under Section 2252.908, Texas
Government Code, in connection with the authorization and issuance of the Note and has notified,
or will timely notify, the Texas Ethics Commission of its receipt of such filings by acknowledging
such filings in accordance with the provisions of Section 2252.908, Texas Government Code, and
1 Tex. Admin. Code § 46.5(c).
9. With respect to the contracts contained within the transcript of proceedings relating
to the Bonds submitted to the Attorney General of Texas that are subject to Subchapter F of Chapter
2252, Texas Government Code, the District has confirmed that none of such counter parties are
identified on a list prepared and maintained under Sections 2270.0201 or 2252.153 of the Texas
Government Code, to the extent such lists have been prepared and made available for public review
as of the date of this Note by the appropriate state agency.
[The remainder of this page intentionally left blank]
SIGNED AND SEALED THIS 20TH DAY OF AUGUST, 2019.
Mayor
City of Kennedale, Texas
City Secretary
City of Kennedale, Texas
(SEAL)
Signature Page to the General Certificate Relating to
City of Kennedale, Texas Tax Note, Series 2019
EXHIBIT A
SCHEDULE OF ALL OUTSTANDING GENERAL OBLIGATION INDEBTEDNESS
OF THE CITY OF KENNEDALE, TEXAS
THE PROPOSED TAX NOTE
TAX NOTE, SERIES 2019, dated September 1, 2019, to be outstanding in the aggregate
principal amount of $_____________, bearing interest and maturing as set forth in the Ordinance
authorizing such Note.
ALL PRESENTLY OUTSTANDING TAX INDEBTEDNESS:
TITLE OF OUTSTANDING OBLIGATIONS
DATED
DATE
CURRENT
OUTSTANDING
PRINCIPAL
AMOUNT ($)
General Obligation Refunding Bonds, Series 2007 02/01/2007 1,285,000
Combination Tax & Revenue Notes of Obligation, Series 2007 02/01/2007 1,450,000
Combination Tax & Revenue Notes of Obligation, Series 2007A 10/01/2007 1,000,000
Combination Tax & Revenue Notes of Obligation, Series 2010 01/01/2010 1,275,000
Combination Tax & Revenue Notes of Obligation, Series 2011 06/01/2011 1,755,000
General Obligation Refunding Bonds, Series 2016 09/01/2016 3,195,000
Tax Note, Series 2018 10/01/2018 575,000
TOTAL PRINCIPAL AMOUNT CURRENTLY OUTSTANDING: *** 10,535,000
EXHIBIT B
COMBINED DEBT SERVICE SCHEDULE
SIGNATURE IDENTIFICATION AND NO-LITIGATION CERTIFICATE
We, the undersigned Mayor and City Secretary, respectively, of the CITY OF KENNEDALE,
TEXAS (the "City"), hereby certify as follows:
(a) This Note is executed and delivered with reference to the CITY OF KENNEDALE,
TEXAS TAX NOTE, SERIES 2019, dated September 1, 2019, authorized by an ordinance passed by
the City Council of the City on August 20, 2019 (the "Note").
(b) Each of us signed the Note by manually executing or causing facsimiles of our
manual signatures to be printed or lithographed on the Note, and we hereby adopt said facsimile
signatures as our own, respectively, and declare that said facsimile signatures constitute our
signatures the same as if we had manually signed the Note.
(c) The Note is substantially in the form, and it has been duly executed and signed in the
manner, prescribed in the ordinance authorizing the issuance thereof.
(d) At the time we so executed and signed the Note we were, and at the time of executing
this Note we are, the duly chosen, qualified, and acting officers indicated therein, and authorized to
execute and sign the same.
(e) No litigation of any nature has been filed or is now pending or, to our knowledge,
threatened, to restrain or enjoin the issuance or delivery of the Note, or which would affect the
provision made for its payment or security, or in any manner questioning the proceedings or
authority concerning the issuance of the Note, and that so far as we know and believe no such
litigation is threatened.
(f) Neither the corporate existence nor boundaries of the City is being contested; no
litigation has been filed or is now pending or, to our knowledge, threatened, which would affect the
authority of the officers of the City to issue, execute, sign, and deliver the Note; and no authority
or proceedings for the issuance of the Note have been repealed, revoked, or rescinded.
(g) We have caused the official seal of the City to be impressed, or printed, or
lithographed on the Note; and said seal on the Note has been duly adopted as, and is hereby declared
to be, the official seal of the City.
[The remainder of this page intentionally left blank]
EXECUTED and delivered this ____________________________.
MANUAL SIGNATURES OFFICIAL TITLES
_________________________________ Brian Johnson, Mayor
_________________________________ Leslie E. Galloway, City Secretary
Before me, on this day personally appeared the foregoing individuals, known to me to be the
officers whose true and genuine signatures were subscribed to the foregoing instrument in my
presence.
Given under my hand and seal of office this __________________________.
________________________________________
Notary Public
Typed Name ______________________________
(My Commission Expires ____________________)
(Notary Seal)
Signature Page to the Signature Identification and No-Litigation Note Relating to
City of Kennedale, Texas Tax Note, Series 2019
August 20, 2019
Texas State Comptroller of Public Accounts
Cash and Securities Management Division
Thomas Jefferson Rusk Building
208 East 10th Street, 4th Floor, Room 448
Austin, Texas 78701-2407
Attn: Melissa Popkoff
RE:CITY OF KENNEDALE, TEXAS TAX NOTE, SERIES 2019
Ladies and Gentlemen:
The Attorney General will deliver to you the above-described issues of obligations. At such
time as you have registered such obligations, this will be your authority to deliver them to an
authorized representative of McCall, Parkhurst & Horton L.L.P. who will deliver said obligations
to the Paying Agent/Registrar named in the obligations for delivery to the purchasers thereof.
At the time you have registered the obligations, please deliver three copies of the Attorney
General's opinion and the Comptroller's Signature Note covering said issue of obligations to a
representative of McCall, Parkhurst & Horton L.L.P., or send such documents by overnight courier
to Orlando "Jay" Juarez, Jr. and Thomas K. Spurgeon, McCall, Parkhurst & Horton L.L.P., 700 N.
St. Mary's, Suite 1525, San Antonio, Texas 78205.
Sincerely yours,
CITY OF KENNEDALE, TEXAS
____________________________
Mayor
cc: Attorney General of Texas
August 20, 2019
The Attorney General of Texas
Public Finance Division
300 W. 15th Street, 7th Floor
Austin, Texas 78701
RE:CITY OF KENENDALE, TEXAS TAX NOTE, SERIES 2019
Ladies and Gentlemen:
It is requested that you examine the above issues of obligations and the proceedings
authorizing their issuance.
We enclose herewith one signed but undated copy of the Signature Identification and No-
Litigation Note. Upon approval of the obligations, you are authorized to insert the date of approval
in said Signature Note. If any litigation should develop before you have approved the obligations,
we will notify you at once both by telephone and telecopy. With this assurance you can rely upon
the absence of any such litigation at the time you approve the obligations unless we advise you
otherwise.
After you have examined the obligations, kindly deliver them to the Office of the
Comptroller of Public Accounts of the State of Texas. The Comptroller has received instructions
as to disposition of such obligations following their registration.
Sincerely yours,
CITY OF KENNEDALE, TEXAS
____________________________
Mayor
cc: Comptroller of Public Accounts
RECEIPT FOR PROCEEDS
The undersigned hereby certifies as follows:
(a) This Receipt is executed and delivered with reference to the CITY OF KENNEDALE,
TEXAS TAX NOTE, SERIES 2019 (the "Note"), dated September 1, 2019, in the aggregate principal
amount of $___________ authorized by an ordinance passed by the City Council of the CITY OF
KENNEDALE, TEXAS (the "City") on August 20, 2019.
(b) The undersigned is the duly chosen, qualified, and acting Director of Finance of the
City.
(c) The Note has been duly delivered to the initial purchaser thereof, namely
________________________________________
(d) The Note has been paid for in full by said purchaser concurrently with the delivery
of this Receipt, and the City has received, and hereby acknowledges receipt of, the agreed purchase
price for the Note, being $___________ (which amount is equal to par), and no accrued interest.
EXECUTED and delivered this _______________________.
CITY OF KENNEDALE, TEXAS
_____________________________
Director of Finance
September __, 2019
CITY OF KENNEDALE, TEXAS
TAX NOTE, SERIES 2019
DATED AS OF SEPTEMBER 1, 2019
IN THE AGGREGATE PRINCIPAL AMOUNT OF $__________
AS BOND COUNSEL FOR THE CITY OF KENEDY, TEXAS (the "City") in connection
with the issuance of the Tax Note described above (the "Note"), we have examined into
the legality and validity of the Note, which bears interest from the dates specified in the
text of the Note until maturity or prior redemption at the rates and payable on the dates
as stated in the text of the Note, [and which is subject to redemption,] all in accordance
with the terms and conditions stated in the text of the Note.
WE HAVE EXAMINED the applicable and pertinent provisions of the Constitution
and laws of the State of Texas and a transcript of certified proceedings of the City, and
other pertinent instruments authorizing and relating to the issuance of the Note including
(i) the ordinance authorizing the issuance of the Note (the "Ordinance"), (ii) one of the
executed Note (Certificate No. T-1), and (iii) the City's Federal Tax Certificate of even date
herewith.
BASED ON SAID EXAMINATION, IT IS OUR OPINION that the Note has been
authorized, issued and delivered in accordance with law; that the Note constitutes a valid
and legally binding general obligation of the City in accordance with its terms except as
the enforceability thereof may be limited by governmental immunity, bankruptcy,
insolvency, reorganization, moratorium, liquidation and other similar laws now or
hereafter enacted relating to creditors' rights generally or by general principles of equity
which permit the exercise of judicial discretion; that the City has the legal authority to
issue the Note and to repay the Note; and that ad valorem taxes sufficient to provide for
the payment of the interest on and principal of the Note, as such interest comes due, and
as such principal matures, have been levied and ordered to be levied against all taxable
property in the City, and have been pledged for such payment, within the limits prescribed
by law.
IT IS FURTHER OUR OPINION, except as discussed below, that the interest on the
Note is excludable from the gross income of the owners for federal income tax purposes
under the statutes, regulations, published rulings and court decisions existing on the date
of this opinion. We are further of the opinion that the Note is not a "specified private
activity bond" and that, accordingly, interest on the Note will not be included as an
individual alternative minimum tax preference item under section 57(a)(5) of the Internal
City of Kennedale, Texas Tax Note, Series 2019
Page 2
Revenue Code of 1986. In expressing the aforementioned opinions, we have relied on
certain representations of the City, the accuracy of which we have not independently
verified, and have assumed compliance by the City with certain covenants regarding the
use and investment of the proceeds of the Note and the use of the property financed
therewith. We call your attention to the fact that if such representations are determined
to be inaccurate or if the City fails to comply with such covenants, interest on the Note
may become includable in gross income retroactively to the date of issuance of the Note.
EXCEPT AS STATED ABOVE, we express no opinion as to any other federal, state
or local tax consequences of acquiring, carrying, owning or disposing of the Note,
including the amount, accrual or receipt of interest on, the Note. Owners of the Note
should consult their tax advisors regarding the applicability of any collateral tax
consequences of owning the Note.
OUR OPINIONS ARE BASED ON EXISTING LAW, which is subject to change. Such
opinions are further given, and are based on our knowledge of facts, as of the date hereof.
We assume no duty or obligation to update or supplement our opinions to reflect any
facts or circumstances that may hereafter come to our attention or to reflect any changes
in any law that may hereafter occur or become effective. Moreover, our opinions are not
a guarantee of result and are not binding on the Internal Revenue Service (the "Service");
rather, such opinions represent our legal judgment based upon our review of existing law
and in reliance upon the representations and covenants referenced above that we deem
relevant to such opinions. The Service has an ongoing audit program to determine
compliance with rules that relate to whether interest on state or local obligations is
includable in gross income for federal income tax purposes. No assurance can be given
whether or not the Service will commence an audit of the Note. If an audit is commenced,
in accordance with its current published procedures the Service is likely to treat the City
as the taxpayer. We observe that the City has covenanted not to take any action, or omit
to take any action within its control, that if taken or omitted, respectively, may result in
the treatment of interest on the Note as includable in gross income for federal income
tax purposes.
WE EXPRESS NO OPINION as to any insurance policies issued with respect to the
payments due for the principal of and interest on the Note, nor as to any such insurance
policies issued in the future.
OUR SOLE ENGAGEMENT in connection with the issuance of the Note is as Bond
Counsel for the City, and, in that capacity, we have been engaged by the City for the sole
purpose of rendering an opinion with respect to the legality and validity of the Note under
the Constitution and laws of the State of Texas, and with respect to the exclusion from
gross income of the interest on the Note for federal income tax purposes, and for no other
reason or purpose. The foregoing opinions represent our legal judgment based upon a
review of existing legal authorities that we deem relevant to render such opinions and
City of Kennedale, Texas Tax Note, Series 2019
Page 3
are not a guarantee of a result. We have not been requested to investigate or verify, and
have not independently investigated or verified, any records, data, or other material
relating to the financial condition or capabilities of the City, or the disclosure thereof in
connection with the sale of the Note, and have not assumed any responsibility with
respect thereto. We express no opinion and make no comment with respect to the
marketability of the Note and we have relied solely on certificates executed by officials of
the City as to the current outstanding indebtedness of, and assessed valuation of taxable
property within, the City.
Respectfully,
STAFF REPORT TO THE BOARD OF DIRECTORS
Date: August 20, 2019
Agenda Item No: DECISION ITEMS - C.
I. Subject:
CASE #PZ 19-05 — Conduct a public hearing and consider Ordinance 671, regarding a request by
Cannon Maki for a rezoning from "R3" Residential to "C2" Commercial for approximately 6 acres located at
5306 Kennedale Sublett Road, Abstract 792, Tract 1 Less HS, James R Hawkins Survey, City of
Kennedale, Tarrant County, Texas.
II. Originated by:
III. Summary:
BACKGROUND AND OVERVIEW
Request Rezone from R3 (Residential to C2 (Commercial)
Applicant Cannon Maki
Location 5306 Kennedale Sublett Road
Surrounding Uses Commercial, Vacant Land, Single-Family Residential
Surrounding Zoning R3 in Kennedale, Commercial in Arlington
Future Land Use Plan Designation Urban Village
Staff Recommendation Approve
CURRENT STATUS OF PROPERTY
The property is currently vacant land.
SURROUNDING PROPERTIES & NEIGHBORHOOD
The property fronts Kennedale Sublett Road and is on the edge of Kennedale city boundaries with
Arlington. Significant development has occurred in the immediate area recently in Arlington, including a
Kroger, Starbucks, Chick-fil-a, personal storage facility and other retail and restaurants. A strip center for
retail is currently under development directly across the street. This lot is within 1,000 feet of Interstate 287.
Some single family homes exist immediately to the south, and this land will be part of the same
development for residential. To the west of the development is a single family subdivision, Steeplechase.
STAFF REVIEW
Future Land Use Plan
The Future Land Use Plan indicates this property as Urban Village.
Related Goals From the Comprehensive Land Use Plan
The comprehensive plan goal related to this rezoning request falls under:
PRINCIPLE 2: ECONOMIC PROSPERITY. PROMOTE ACCESS TO HOUSING.
Promote access to jobs. Create job opportunities in Kennedale that help stabilize the local tax base
and allow residents to work close to home. Support sustainable business practices. Encourage
businesses to conduct their operations in support of the local economy to maximize growth and
available resources.
City Council Ends Statements and Goals
Business uses are compatible with residential areas.
Well planned community based on principles of a connected city, economic prosperity, and a
thriving community.
SUMMARY
This property has been vacant for many years. The growth in the area along with the surrounding
development in the immediate vicinity has made this property viable for commercial development.
Continued growth in Kennedale and in adjacent Arlington has created demand for retail development. The
location on Kennedale Sublett, a commercial corridor, along with the surrounding commercial uses,
indicates that C2 zoning is an appropriate zoning for this site. The developer has requested C2 instead of
C1 to have the ability to have drive throughs. Staff met with the developers to discuss the potential of UV
zoning, since there is discussion of higher density residential behind this site to the south. It appears that
another developer will be developing the residential, and this commercial site will be developed first, thus
the reason for the request for zoning for the commercial site only at this time. Additionally staff is currently
proposing modifications to multi-family zoning that will require similar building and street form as is required
in UV zoning, so the residential behind this site could have the Urban Village walkability and feel. During
site plan review, staff will encourage the commercial development to be walkable have connectivity to the
residential and other areas around it.
The Planning & Zoning Commission approved the application with a 4-3 vote at the July 30, 2019 P&Z
meeting.
STAFF RECOMMENDATION
Based on the above analysis, staff recommends approval of the rezoning.
ACTION BY THE CITY COUNCIL
Approval: Based on the information presented, I find that the request meets city requirements and
is in compliance with the comprehensive land use plan and make a motion to approve the request
for rezoning.
Deny: Based on the information presented, I find that the proposed use does not meet (list
standards or requirements not met) and make a motion to deny the request.
IV. Notification:
V. Fiscal Impact Summary:
VI. Legal Impact:
VII. Recommendation:
VIII. Alternative Actions:
IX. Attachments:
1.PZ 19-05 Map PZ 19-05 Map.pdf
2.O671_5306 Kennedale Sublett Road from
R3 to C2 PZ 19-05
O671_5306 Kennedale Sublett Road from R3 to C2
PZ 19-05_TOASE.pdf
PZ 19-05
5306 KENNEDALE SUBLETT RD
PZ 19-05 FUTURE LAND USE PLAN
5306 KENNEDALE SUBLETT RD
PZ 19-05 ZONING
5306 KENNEDALE SUBLETT RD
PAGE 1 OF 4, INCLUDING “EXHIBIT A”
O671 CITY OF KENNEDALE, TX 2019
ORDINANCE NO. 671
AN ORDINANCE AMENDING THE UNIFIED DEVELOPMENT CODE OF
THE CITY OF KENNEDALE, TEXAS, BY CHANGING THE ZONING
CLASSIFICATION OF CERTAIN PROPERTY WITHIN THE CITY OF
KENNEDALE, BEING APPROXIMATELY 6 ACRES DESCRIBED AS
ABSTRACT 792, TRACT 1, LESS HS, JAMES R HAWKINS SURVEY,
FROM “R-3” SINGLE FAMILY RESIDENTIAL DISTRICT TO “C-2”
GENERAL COMMERCIAL DISTRICT; PROVIDING FOR THE
AMENDMENT OF THE OFFICIAL ZONING MAP TO REFLECT SUCH
CHANGE; PROVIDING THAT THIS ORDINANCE SHALL BE
CUMULATIVE OF ALL ORDINANCES; PROVIDING A SAVINGS
CLAUSE; PROVIDING FOR A PENALTY CLAUSE; PROVIDING A
SEVERABILITY CLAUSE; PROVIDING FOR PUBLICATION IN THE
OFFICIAL NEWSPAPER; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Kennedale, Texas, is a home rule city acting under its
charter adopted by the electorate pursuant to Article XI, Section 5, of the Texas
Constitution and Chapter 9 of the Local Government; and
WHEREAS, pursuant to Chapter 211 of the Local Government Code, the City
has adopted a comprehensive zoning ordinance and map regulating the location and
use of buildings, other structures and land for business, industrial, residential or other
purposes, for the purpose of promoting the public health, safety, morals and general
welfare, all in accordance with a comprehensive plan; and
WHEREAS, a change in the zoning classification of the property listed below was
requested by a person or entity having a proprietary interest in said property; and
WHEREAS, a public hearing was duly held by the Planning and Zoning
Commission of the City of Kennedale , Texas, on July 30, 2019, and by the City Council
of the City of Kennedale, Texas, on August 20, 2019, with respect to the zoning change
described herein; and
WHEREAS, all requirements of law dealing with notice to other property owners,
publication and all procedural requirements have been complied with in accordance with
Chapter 211 of the Local Government Code; and
WHEREAS, the City Council of the City of Kennedale , Texas, does hereby deem
it advisable and in the public interest to amend the Unified Development Code, as
amended, as described herein.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF KENNEDALE, TEXAS:
PAGE 2 OF 4, INCLUDING “EXHIBIT A”
O671 CITY OF KENNEDALE, TX 2019
SECTION 1.
The Unified Development Code, as amended, is hereby amended so that the
permitted uses in the hereinafter described area shall be altered, changed and
amended as shown and described below:
Approximately 6 acres, located at 5306 Kennedale Sublett Road, and
being described as Abstract 792, Tract 1, Less HS, James R Hawkins
Survey, Tarrant County, Texas, on the illustration attached hereto as
Exhibit “A” and incorporated herein for all purposes of this ordinance, is
hereby rezoned from “R-3” Single Family Residential District to “C-2”
General Commercial District.
SECTION 2.
The zoning districts and boundaries as herein established have been made in
accordance with the comprehensive plan for the purpose of promoting the health,
safety, morals, and general welfare of the community. They have been designed to
lessen congestion in the streets, to secure safety from fire, panic, flood and other
dangers, to provide adequate light and air, to prevent overcrowding of land, to avoid
undue concentration of population, to facilitate the adequate provisions of
transportation, water, sewerage, parks and other public requirements. They have been
made after a full and complete hearing with reasonable consideration among other
things of the character of the district and its peculia r suitability for the particular uses
allowed and with a view of conserving the value of the buildings and encouraging the
most appropriate use of land throughout the community.
SECTION 3.
The City Secretary is hereby directed to amend the official zonin g map to reflect
the changes in classifications approved herein.
SECTION 4.
The use of the property hereinabove described shall be subject to all the
applicable regulations contained in the Unified Development Code, as amended, and all
other applicable and pertinent ordinances of the City of Kennedale, Texas.
SECTION 5.
This Ordinance shall be cumulative of the Unified Development Code, as
amended, and all other Ordinances of the City of Kennedale , Texas, affecting zoning
and land use, and shall not repeal any of the provisions of such ordinances except in
those instances where provisions of such ordinances are in direct conflict with the
provisions of this ordinance.
SECTION 6.
All rights or remedies of the City of Kennedale, Texas, are expressly saved as to
any and all violations of Unified Development Code, as amended, that have accrued at
the time of the effective date of this Ordinance and as to such accrued violations and all
pending litigation, both civil and criminal, same shall not be affected by this Ordinance
but may be prosecuted until final disposition by the Courts.
PAGE 3 OF 4, INCLUDING “EXHIBIT A”
O671 CITY OF KENNEDALE, TX 2019
SECTION 7.
It is hereby declared to be the intention of the City Council that the phrases,
clauses, sentences, paragraphs, and sections of this ordinance are severable, and if
any phrase, clause, sentence, paragraph or section of this ordinance shall be declared
unconstitutional by the valid judgment or decree of any court of competent jurisdiction,
such unconstitutionality shall not affect any of the remaining phrases, clauses,
sentences, paragraphs and sections of this ordinance, since the same would have been
enacted by the City Council without the incorporation in this ordinance of any such
unconstitutional phrase, clause, sentence, paragraph or section.
SECTION 8.
Any person, firm or corporation who violates, disobeys, omits, neglects or refuses
to comply with or who resists enforcement of any of the provisions of this ordinance
shall be fined not more than Two Thousand Dollars ($2,000.00) for each offense. Each
day that a violation is permitted to exist shall constitute a separate offense.
SECTION 9.
The City Secretary of the City of Kennedale is hereby directed to publish the
caption, Section 1, penalty clause, publication c lause and effective date clause of this
ordinance in every issue of the official newspaper of the City of Kennedale for two days
or one issue of the newspaper if the official newspaper is a weekly newspaper as
authorized by Section 3.10 of the City of Kenn edale Charter.
SECTION 10.
This ordinance shall be in full force and effect from and after its passage and
publication as required by law and it is so ordained
PASSED AND APPROVED BY THE CITY COUNCIL OF THE
CITY OF KENNEDALE, TEXAS, THIS THE 20TH DAY OF AUGUST, 2019.
APPROVED:
______________________________
MAYOR BRIAN JOHNSON
ATTEST: [ C I T Y S E A L ]
______________________________
CITY SECRETARY LESLIE E. GALLOWAY
APPROVED AS TO FORM AND LEGALITY: EFFECTIVE DATE:
______________________________ ______________________________
CITY ATTORNEY DREW LARKIN
PAGE 4 OF 4, INCLUDING “EXHIBIT A”
O671 CITY OF KENNEDALE, TX 2019
ORDINANCE NO. 671
EXHIBIT A
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: DECISION ITEMS - D.
I. Subject:
CASE #PZ 19-06 — Conduct a public hearing and consider Ordinance 672, regarding a request by Adlai Pennington
for a rezoning from "I" Industrial to "C2" Commercial for approximately 2 acres located at 1170 E Kennedale Parkway,
Abstract 378, Tract 1DD01, E C Cannon Survey, City of Kennedale, Tarrant County, Texas
II. Originated by:
Melissa Dailey, Director of Planning & Economic Development
III. Summary:
BACKGROUND AND OVERVIEW
Request Rezone from I (Industrial) to C2 (Commercial)
Applicant Adlai Pennington
Location 1170 E Kennedale Parkway
Surrounding Uses Primarily Light and heavy industrial
Surrounding Zoning I, PD-ID
Future Land Use Plan Designation Light Industrial
Staff Recommendation Approve
CURRENT STATUS OF PROPERTY
The property is currently operated as Red’s Roadhouse, an event and party venue. The applicant leases the property
from the Economic Development Corporation with the option to purchase the property.
SURROUNDING PROPERTIES & NEIGHBORHOOD
The property fronts Kennedale Parkway and is surrounding by a variety of auto uses such as salvage yards and auto
repair, and Speed Fab-Crete. Tarrant County has a maintenance facility across the street.
STAFF REVIEW
Future Land Use Plan
The Future Land Use Plan indicates this property as Urban Corridor with Light Industrial District behind urban corridor
uses fronting the Parkway. This use is consistent with the urban corridor use. The City does not have a zoning
category for light industrial, only Industrial. The zoning category that captures many of the Light Industrial uses
includes C2 zoning, which allows both commercial and some light industrial uses similar to existing uses near this
site.
Related Goals From the Comprehensive Land Use Plan
The comprehensive plan goal related to this rezoning request falls under:
PRINCIPLE 2: ECONOMIC PROSPERITY. PROMOTE ACCESS TO HOUSING.
Promote access to jobs. Create job opportunities in Kennedale that help stabilize the local tax base and allow
residents to work close to home. Support sustainable business practices. Encourage businesses to conduct
their operations in support of the local economy to maximize growth and available resources.
City Council Ends Statements and Goals
Business uses are compatible with residential areas.
Well planned community based on principles of a connected city, economic prosperity, and a thriving
community.
SUMMARY
The applicant has leased this property from the Economic Development Corporation (EDC). The goal for the EDC
was to attract business and create activity along Kennedale Parkway. Red’s Roadhouse has been in operation as an
events and party venue. The applicant would like to bring food service with a drive through to the site, which is not
allowed in "I" zoning. Attracting restaurants brings business to Kennedale, helping to accomplish a goal for the
Economic Development Corporation. The EDC, as the owner of this property, voted to approve the applicant’s request
to rezone the property to C2 at their regular meeting on June 25, 2019. This use is consistent with the urban corridor
identified on the Future Land Use Plan.
The Planning & Zoning Commission (P&Z) denied the application with a 5-2 vote at their regular meeting on August
15, 2019. The P&Z recommended that the current use be allowed to continue. The operator of the current use would
be able to continue the use and adapt to market conditions with needed changes with C2 zoning.
STAFF RECOMMENDATION
Based on the above analysis, staff recommends approval of the rezoning.
ACTION BY THE CITY COUNCIL
Approval: Based on the information presented, I find that the request meets city requirements and is in
compliance with the comprehensive land use plan and make a motion to approve the request for rezoning.
Deny: Based on the information presented, I find that the proposed use does not meet (list standards or
requirements not met) and make a motion to deny the request.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
Approve
VII. Alternative Actions:
VIII. Attachments:
1.PZ 19-06 Map PZ 19-06 Map.pdf
2.O672 RedsRoadhouseZoningC2 O672 RedsRoadhouseZoningC2_TOASE_FF.pdf
PZ 19-06
1170 E Kennedale Parkway
PZ 19-06 Future Land Use Plan
1170 E Kennedale Parkway
PZ 19-06 Zoning
1170 E Kennedale Parkway
PAGE 1 OF 4, INCLUDING “EXHIBIT A”
O672 CITY OF KENNEDALE, TX 2019
ORDINANCE NO. 672
AN ORDINANCE AMENDING THE UNIFIED DEVELOPMENT CODE OF
THE CITY OF KENNEDALE, TEXAS BY CHANGING THE ZONING
CLASSIFICATION OF CERTAIN PROPERTY WITHIN THE CITY OF
KENNEDALE, BEING APPROXIMATELY 2 ACRES DESCRIBED AS
ABSTRACT 378, TRACT 1DD01, E C CANNON SURVEY, FROM “I”
INDUSTRIAL DISTRICT TO “C-2” GENERAL COMMERCIAL
DISTRICT; PROVIDING FOR THE AMENDMENT OF THE OFFICIAL
ZONING MAP TO REFLECT SUCH CHANGE; PROVIDING THAT THIS
ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES;
PROVIDING A SAVINGS CLAUSE; PROVIDING FOR A PENALTY
CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR
PUBLICATION IN THE OFFICIAL NEWSPAPER; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Kennedale, Texas is a home rule city acting under its
charter adopted by the electorate pursuant to Article XI, Section 5, of the Texas
Constitution and Chapter 9 of the Local Government;
WHEREAS, pursuant to Chapter 211 of the Local Government Code, the City
has adopted a comprehensive zoning ordinance and map regulating the location and
use of buildings, other structures and land for business, industrial, residential or other
purposes, for the purpose of promoting the public health, safety, morals and general
welfare, all in accordance with a comprehensive plan; and
WHEREAS, a change in the zoning classification of the property listed below was
requested by a person or entity having a proprietary interest in said property; and
WHEREAS, a public hearing was duly held by the Planning and Zoning
Commission of the City of Kennedale on August 15, 2019 and by the City Council of the
City of Kennedale on August 20, 2019, with respect to the zoning change described
herein; and
WHEREAS, all requirements of law dealing with notice to other property owners,
publication and all procedural requirements have been complied with in accordance with
Chapter 211 of the Local Government Code; and
WHEREAS, the City Council of the City of Kennedale, Texas does hereby deem
it advisable and in the public interest to amend the Unif ied Development Code, as
amended, as described herein.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF KENNEDALE, TEXAS, THAT:
PAGE 2 OF 4, INCLUDING “EXHIBIT A”
O672 CITY OF KENNEDALE, TX 2019
SECTION 1.
The Unified Development Code, as amended, is hereby amended so that the
permitted uses in the hereinafter described area shall be altered, changed and
amended as shown and described below:
Approximately 2 acres, located at 1170 E Kennedale Parkway, and being
described as Abstract 378, Tract 1DD01, E C Cannon Survey, Tarrant
County, Texas, on the illustration attached hereto as Exhibit “A” and
incorporated herein for all purposes of this ordinance, is hereby rezoned
from “I” Industrial District to “C-2” General Commercial District.
SECTION 2.
The zoning districts and boundaries as herein established have been made in
accordance with the comprehensive plan for the purpose of promoting the health,
safety, morals, and general welfare of the community. They have been designed to
lessen congestion in the streets, to secure safety from fire, panic, f lood and other
dangers, to provide adequate light and air, to prevent overcrowding of land, to avoid
undue concentration of population, to facilitate the adequate provisions of
transportation, water, sewerage, parks and other public requirements. They hav e been
made after a full and complete hearing with reasonable consideration among other
things of the character of the district and its peculiar suitability for the particular uses
allowed and with a view of conserving the value of the buildings and encour aging the
most appropriate use of land throughout the community.
SECTION 3.
The City Secretary is hereby directed to amend the official zoning map to reflect
the changes in classifications approved herein.
SECTION 4.
The use of the property hereinabove described shall be subject to all the
applicable regulations contained in the Unified Development Code, as amended, and all
other applicable and pertinent ordinances of the City of Kennedale, Texas.
SECTION 5.
This Ordinance shall be cumulative of the Unified Development Code, as
amended, and all other Ordinances of the City of Kennedale , Texas, affecting zoning
and land use, and shall not repeal any of the provisions of such ordinances except in
those instances where provisions of such ordinances are in direct conflict with the
provisions of this ordinance.
SECTION 6.
All rights or remedies of the City of Kennedale, Texas , are expressly saved as to
any and all violations of Unified Development Code, as amended, that have accrued at
the time of the effective date of this Ordinance and as to such accrued violations and all
pending litigation, both civil and criminal, same shall not be affected by this Ordinance
but may be prosecuted until final disposition by the Courts.
PAGE 3 OF 4, INCLUDING “EXHIBIT A”
O672 CITY OF KENNEDALE, TX 2019
SECTION 7.
It is hereby declared to be the intention of the City Council that the phrases,
clauses, sentences, paragraphs, and sections of this ordinance are severable, and if
any phrase, clause, sentence, paragraph or section of this ordinance shall be declared
unconstitutional by the valid judgment or decree of any court of competent jurisdiction,
such unconstitutionality shall not affect any of the remaining phrases, clauses,
sentences, paragraphs and sections of this ordinance, since the same would have been
enacted by the City Council without the incorporation in this ordinance of any such
unconstitutional phrase, clause, sentence, paragraph or section.
SECTION 8.
Any person, firm or corporation who violates, disobeys, omits, neglects or refuses
to comply with or who resists enforcement of any of the provisions of this ordinance
shall be fined not more than Two Thousand Dollars ($2,000.00) for each offense. Each
day that a violation is permitted to exist shall constitute a separate offense.
SECTION 9.
The City Secretary of the City of Kennedale, Texas, is hereby directed to publish
the caption, Section 1, penalty clause, publication clause and effective date clause of
this ordinance in every issue of the official newspaper of the City of Kennedale for two
days or one issue of the newspaper if the official newspaper is a weekly newspaper as
authorized by Section 3.10 of the City of Kennedale Charter.
SECTION 10.
This ordinance shall be in full force and effect from and after its passage and
publication as required by law and it is so ordained
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
KENNEDALE, TEXAS, THIS THE 20TH DAY OF AUGUST, 2019.
APPROVED:
______________________________
MAYOR BRIAN JOHNSON
ATTEST: [ C I T Y S E A L ]
______________________________
CITY SECRETARY LESLIE E. GALLOWAY
APPROVED AS TO FORM AND LEGALITY: EFFECTIVE DATE:
______________________________ ______________________________
CITY ATTORNEY DREW LARKIN
PAGE 4 OF 4, INCLUDING “EXHIBIT A”
O672 CITY OF KENNEDALE, TX 2019
ORDINANCE NO. 672
EXHIBIT A
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: DECISION ITEMS - E.
I. Subject:
Conduct a public hearing and consider approval of Ordinance 673, amending the Unified Development Code by
including additional multi-family regulations by adding a new Section 3.6 “Additional Multi-Family Regulations”,
amending Section 12.8 “Required Off-street Parking”, and amending Table 13.6 "Buffer Area Landscape
Requirement.”
II. Originated by:
Melissa Dailey, Director of Planning & Economic Development
III. Summary:
The Comprehensive Plan principles include promoting access to housing for people of varying financial means and
residential preferences and supporting a walkable environment. The Unified Development Code (UDC) includes a
zoning category for “MF” Multi-Family for higher density residential developments, offering a different type of housing.
However, the MF requirements do not result in site plans that create a walkable community.
Staff is recommending the attached revisions to the UDC code regarding MF zoning requirements. These revisions
are similar to those in Village Zoning within the UDC code that relates to residential development.
These revisions will result in multi-family developments being urban in character and walkable both within the multi-
family communities and connected to adjacent developments. This type of development is common throughout the
Metroplex in response to market demand.
The Planning & Zoning Commission recommended approval with a 6-1 vote at their Regular Meeting on Thursday,
August 15, 2019.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
Approve
VII. Alternative Actions:
VIII. Attachments:
1.MF Zoning Changes MF Zoning Changes.pdf
2.O673_Multi Family MF O673_Multi Family MF_TOASE.pdf
Proposed Revisions to Multi-Family (MF) Zoning
Purpose:
To require a higher standard of development for new multi-family developments by utilized a form-
based code similar to Village zoning. These modifications are consistent with the Comprehensive Plan
Economic Prosperity principle of “Promoting access to housing”, providing housing options for people of
varying financial means and residential preferences, while ensuring quality development in the City.
Form and Character:
Multi-family developments should have an urban building form and street frontage. The primary
building form is street-oriented with windows across the façade and one or more entrances along the
street. Buildings sit behind a landscaped dooryard and may be configured around a courtyard. The
buildings define the street space and typically provide private open space through a combination of
balconies, roof decks and spaces interior to the lot.
Building Form Standards
All buildings shall meet the following standards:
Height:
The height of all buildings is measured in stories, with an ultimate building height in feet,
measured to the top of the wall plate. At no time may a building exceed the prescribed
maximum height in stories or in feet.
All heights are measured from the average fronting sidewalk elevation (at the required building
line) unless otherwise noted.
A half-story (or attic story), defined as habitable space within a pitched roof, does not count
against the maximum height in stories or feet, but may provide no greater than 75 percent of
the square footage of the floor immediately below.
The prescribed minimum story clear height shall be met within 30 feet of the required building
line (RBL) and by at least 80 percent of each story floor area.
The required ground story finished floor level shall be measured within 30 feet of any RBL.
Residential entrances may be at grade, with transitions to meet the minimum finished floor
elevation within the building interior.
Siting:
Building facades shall be built to the RBL.
The building façade shall be built to the RBL within 30 feet of a block corner.
No part of any building or structure may encroach beyond the RBL or into any required setback
except overhanging eves, awnings, balconies, bay windows, stoops, steps or barrier free ramps
approved by the Administrator.
There are no side setbacks
The parking setback line is generally 20 or 30 feet behind the RBL. Vehicle parking shall be
located behind the parking setback line, except where parking is provided below grade, on
street, or otherwise indicated.
All lots, including corner lots and through lots, shall satisfy the build-to requirements for any and
all of their RBL frontages.
Elements:
Fenestration is regulated as a percentage of the façade between floor levels. Fenestration is
measured as a glass area (including mullions, muntins, and similar window frame elements with
a dimension less than one inch) and/or open area.
At least one (1) functioning entry door shall be provided along each ground story façade. The
maximum distance between functioning façade entrances shall not be exceed.
In no case shall a garage door be located at or face the RBL.
No privates fences may be constructed forward of the RBL.
A garden wall may be used to define the street edge, to secure a pedestrian passage, to enclose
a courtyard space, on rear lot lines, or to screen building service elements.
Height
Max Building 3 stores and 38’
Minimum ground floor clear height 9’
Minimum upper story clear height 9’
Max Garden Wall Height 10’
Max Privacy Fence Height 7’
Siting
Min Build-To 75%
Min Parking Steback 30’
Side setbacks None required
Min rear setback with alley 3’
Min rear setback with no ally 20’
Garden wall Permitted on unbuilt RBL
Privacy fence Permitted on common and rear lot lines only
Max building footprint 8,000 sf
Elements
Min/Max Ground floor Façade Fenestration 33 to 80%
Min/Max Upper Story Fenestration 20 to 70%
Max Blank Wall Limitation 30’
Max Distance between Façade Entrances 60’
Balconies Permitted
Parking
Parking may be located on the street, in a surface lot or in a structure.
No parking shall be located between the building façade and the back of curb.
All off-street parking shall be located behind the parking setback line, typically 25’ feet or more
behind the back of sidewalk
All surface parking (as well as loading areas) shall be placed to the rear or to the side of the
buildings, but in no case shall more than 60 feet of the property frontage (along the required
building line) be used for surface parking.
All surface parking and loading areas shall be screened from public areas, public sidewalks, and
abutting residentially zoned properties by landscaping and a four (4) foot solid wall or a
combination masonry and a wrought iron or metal fence.
When parking is above grade within a structure, a façade treatment that is consistent (in terms
of materials and design) with the building façade shall be provided for the parking floors/levels.
Parking structures shall be constructed so that commercial uses occupy the ground floor level on
all street frontages. Automobile parking spaces are to be provided as required in this section
and configured according to Sections 12.8 and 12.9.
Residential minimum reserved parking spaces per unit: Up to 1,000 square feet, regardless of
bedroom county: one (1) space/unit. Above 1,000 square feet: one and a quarter (1.25) spaces
per unit.
Bicycle parking:
Sites and/or projects over 10,000 square feet in land area require one (1) tenant bicycle parking
rack (2-bike capacity) per ten (10) units. Buildings under four (4) units shall have no
requirement.
Bicycle parking facilities shall be visible to intended users. The bicycle parking facilities shall not
encroach on any area in the public right-of-way designated as the clear walkway nor shall they
encourage on any required fire egress.
On-street bicycle parking spaces (typically along the street tree alignment line) may be counted
toward the minimum customer/visitor bicycle parking requirement. For areas with constrained
street-space, an optional approach is to consolidate public bicycle parking in a singe (1)
dedicated on-street parking space per block.
Bike rack design shall meet the requirements of Section 12.4D.
Permissive Parking and Loading Facilities :
Nothing in this ordinance shall be deemed to prevent the voluntary establishment of off-street parking
or loading facilities to serve any existing use of land or buildings, in accordance with all regulations
herein governing the location, design and operation of such facilities.
A parking
On-Street Parking
A parking space located on a public street may be included in the calculation of parking requirements if
it is adjacent to the building site (where more than 50 percent of the space is fronting)
Each on-street parking space may only be counted once.
Loading Facilities
If provided, loading zones shall be located to the rear and/or alley side of buildings.
Parking Lot Plantings for New Development
Trees: for any surface parking lot not separated from the street or public realm by a building, the space
between the RBL and the parking setback line shall be planted with canopy shade trees. Trees shall be
planted at an average distance not to exceed 30 feet on center and aligned parallel three (3) to seven (7)
feet behind the RBL or garden wall.
Edge
The edge of any surface parking lot adjacent to a single family lot shall:
Be planted with canopy shade trees placed at an average distance not to exceed 40 feet on center and
aligned parallel three (3) to seven (7) feet behind the common lot line; and
Have a garden wall or privacy fence along the common lot line at least three(3) feet in height.
Streets & Streetscape – Public Realm
The street graphic illustrates the recommended typical configuration for street spaces within multi-
family developments. The plans and sections specify ideal vehicular travel lane widths, curb radii,
sidewalks, tree planting areas, and on-street parking configurations. The streets must work in
conjunction with the building form standards to create the type of walkable place envisioned by the
Comprehensive Plan. Streets must balance the needs of all forms of traffic – auto, bicycle and
pedestrian.
PAGE 1 OF 9
O673 CITY OF KENNEDALE, TX 2019
ORDINANCE NO. 673
AN ORDINANCE AMENDING THE UNIFIED DEVELOPMENT CODE OF
THE CITY OF KENNEDALE, TEXAS, BY INCLUDING ADDITIONAL
MULTI-FAMILY REGULATIONS BY ADDING A NEW SECTION 3.6
“ADDITIONAL MULTI-FAMILY REGULATIONS”, AMENDING SECTION
12.8 “REQUIRED OFF-STREET PARKING” AND TABLE 13.6
“BUFFER AREA LANDSCAPE REQUIREMENTS”; PROVIDING THAT
THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES;
PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR A
PENALTY FOR VIOLATIONS HEREOF; PROVIDING A SAVINGS
CLAUSE; PROVIDING FOR PUBLICATION; AND PROVIDING AND
EFFECTIVE DATE.
WHEREAS, the City of Kennedale, Texas, is a home rule city acting under its
charter adopted by the electorate pursuant of Article XI, Section 5 of the Texas
Constitution and Chapter 9 of the Local Government Code; and
WHEREAS, the City Council has adopted the City of Kennedale Unified
Development Code (“Unified Development Code”) that regulates the location and use of
buildings, other structures and land for business, industri al, residential or other
purposes, for the purpose of promoting the public health, safety, morals and general
welfare, all in accordance with a comprehensive plan and that otherwise regulates the
development and use of properties within the city limits of the City of Kennedale; and
WHEREAS, the City Council deems it necessary and in the best interest of the
public health, safety and welfare to adopt additional multi-family regulations for future
multi-family developments that locate within the city; and
WHEREAS, the Planning and Zoning Commission of the City of Kennedale,
Texas, held a public hearing on August 15, 2019, and the City Council of the City of
Kennedale, Texas, held a public hearing on August 20, 2019, with respect to the
amendments described herein; and
WHEREAS, the City has complied with all requirements of Chapter 211 of the
Local Government Code, Article 22 of the Unified Development Code, and all other laws
dealing with notice, publication, and procedural requirements for amending the Unified
Development Code.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF KENNEDALE, TEXAS, THAT:
SECTION 1.
Article 3 “Agricultural and Residential Zoning Districts” of the Unified
Development Code is hereby amended by adding a new Section 3.6 to read as follows:
PAGE 2 OF 9
O673 CITY OF KENNEDALE, TX 2019
3.6 Additional Multi-Family Regulations
A. Purpose. To require a higher standard of development for new multi-family
developments by utilized a form-based code similar to Village zoning. These
modifications are consistent with the Comprehensive Plan Economic Prosperity
principle of “Promoting access to housing”, providing housing options for people
of varying financial means and residential preferences, while ensuring quality
development in the City.
B. Form and Character. Multi-family developments should have an urban building
form and street frontage. The primary building form is street-oriented with
windows across the façade and one or more entrances along the street.
Buildings sit behind a landscaped dooryard and may be configured around a
courtyard. The buildings define the street space and typically provide private
open space through a combination of balconies, roof decks and spaces interior to
the lot.
C. Building Form Standards. All buildings shall meet the following standards:
1. Height.
a. The height of all buildings is measured in stories, with an ultimate
building height in feet, measured to the top of the wall plate. At no
time may a building exceed the prescribed maximum height in
stories or in feet.
b. All heights are measured from the average fronting sidewalk
elevation (at the required building line) unless otherwise noted.
c. A half-story (or attic story), defined as habitable space within a
pitched roof, does not count against the maximum height in stories
or feet, but may provide no greater than 75 percent of the square
footage of the floor immediately below.
d. The prescribed minimum story clear height shall be met within 30
feet of the required building line (RBL) and by at least 80 percent of
each story floor area.
e. The required ground story finished floor level shall be measured
within 30 feet of any RBL.
f. Residential entrances may be at grade, with transitions to meet the
minimum finished floor elevation within the building interior.
PAGE 3 OF 9
O673 CITY OF KENNEDALE, TX 2019
2. Siting.
a. Building facades shall be built to the RBL.
b. The building façade shall be built to the RBL within 30 feet of a
block corner.
c. No part of any building or structure may encroach beyond the RBL
or into any required setback except overhanging eves, awnings,
balconies, bay windows, stoops, steps or barrier free ramps
approved by the Administrator.
d. There are no side setbacks
e. The parking setback line is generally 20 or 30 feet behind the RBL.
Vehicle parking shall be located behind the parking setback line,
except where parking is provided below grade, on street, or
otherwise indicated.
f. All lots, including corner lots and through lots, shall satisfy the build-
to requirements for any and all of their RBL frontages.
3. Elements.
a. Fenestration is regulated as a percentage of the façade between
floor levels. Fenestration is measured as a glass area (including
mullions, muntins, and similar window frame elements with a
dimension less than one inch) and/or open area.
b. At least one (1) functioning entry door shall be provided along each
ground story façade. The maximum distance between functioning
façade entrances shall not be exceed.
c. In no case shall a garage door be located at or face the RBL.
d. No privates fences may be constructed forward of the RBL.
e. A garden wall may be used to define the street edge, to secure a
pedestrian passage, to enclose a courtyard space, on rear lot lines,
or to screen building service elements.
PAGE 4 OF 9
O673 CITY OF KENNEDALE, TX 2019
Height
Max Building 3 stores and 38’
Minimum ground floor clear height 9’
Minimum upper story clear height 9’
Max Garden Wall Height 10’
Max Privacy Fence Height 7’
Siting
Min Build-To 75%
Min Parking Setback 30’
Side setbacks None required
Min rear setback with alley 3’
Min rear setback with no ally 20’
Garden wall Permitted on unbuilt RBL
Privacy fence Permitted on common and rear lot lines
only
Max building footprint 8,000 sf
Elements
Min/Max Ground floor Façade
Fenestration
33 to 80%
Min/Max Upper Story Fenestration 20 to 70%
Max Blank Wall Limitation 30’
Max Distance between Façade Entrances 60’
Balconies Permitted
4. Parking.
a. Parking may be located on the street, in a surface lot or in a
structure.
b. No parking shall be located between the building façade and the
back of curb.
c. All off-street parking shall be located behind the parking setback
line, typically 25’ feet or more behind the back of sidewalk.
d. All surface parking (as well as loading areas) shall be placed to the
rear or to the side of the buildings, but in no case shall more than
60 feet of the property frontage (along the required building line) be
used for surface parking.
e. All surface parking and loading areas shall be screened from public
areas, public sidewalks, and abutting residentially zoned properties
by landscaping and a four (4) foot solid wall or a combination
masonry and a wrought iron or metal fence.
PAGE 5 OF 9
O673 CITY OF KENNEDALE, TX 2019
f. When parking is above grade within a structure, a façade treatment
that is consistent (in terms of materials and design) with the
building façade shall be provided for the parking floors/levels.
g. Parking structures shall be constructed so that commercial uses
occupy the ground floor level on all street frontages. Automobile
parking spaces are to be provided as required in this section and
configured according to Sections 12.8 and 12.9.
h. Residential minimum reserved parking spaces per unit: Up to 1,000
square feet, regardless of bedroom count: one (1) space/unit.
Above 1,000 square feet: one and a quarter (1.25) spaces per unit.
5. Bicycle Parking.
a. Sites and/or projects over 10,000 square feet in land area require
one (1) tenant bicycle parking rack (2-bike capacity) per ten (10)
units. Buildings under four (4) units shall have no requirement.
b. Bicycle parking facilities shall be visible to intended users. The
bicycle parking facilities shall not encroach on any area in the
public right-of-way designated as the clear walkway nor shall they
encourage on any required fire egress.
c. On-street bicycle parking spaces (typically along the street tree
alignment line) may be counted toward the minimum
customer/visitor bicycle parking requirement. For areas with
constrained street-space, an optional approach is to consolidate
public bicycle parking in a single (1) dedicated on-street parking
space per block.
d. Bike rack design shall meet the requirements of Section 12.4D.
6. Permissive Parking and Loading Facilities. Nothing in this ordinance shall
be deemed to prevent the voluntary establishment of off -street parking or
loading facilities to serve any existing use of land or buildings, in
accordance with all regulations herein governing the location, design and
operation of such facilities.
7. On-Street Parking. A parking space located on a public street may be
included in the calculation of parking requirements if it is adjacent to the
building site (where more than 50 percent of the space is fronting). Each
on-street parking space may only be counted once.
PAGE 6 OF 9
O673 CITY OF KENNEDALE, TX 2019
8. Loading Facilities. If provided, loading zones shall be located to the rear
and/or alley side of buildings.
9. Parking Lot Plantings for New Development.
a. Trees. For any surface parking lot not separated from the street or
public realm by a building, the space between the RBL and the
parking setback line shall be planted with canopy shade trees.
Trees shall be planted at an average distance not to exceed 30 feet
on center and aligned parallel three (3) to seven (7) feet behind the
RBL or garden wall.
b. Edge. The edge of any surface parking lot adjacent to a single-
family lot shall:
i. Be planted with canopy shade trees placed at an average
distance not to exceed 40 feet on center and aligned parallel
three (3) to seven (7) feet behind the common lot line; and
ii. Have a garden wall or privacy fence along the common lot
line at least three (3) feet in height.
c. Streets & Streetscape – Public Realm. The street graphic below
illustrates the recommended typical configuration for street spaces
within multi-family developments. The plans and sections specify
ideal vehicular travel lane widths, curb radii, sidewalks, tree
planting areas, and on-street parking configurations. The streets
must work in conjunction with the building form standards to create
the type of walkable place envisioned by the Comprehensive Plan.
Streets must balance the needs of all forms of traffic – auto, bicycle
and pedestrian.
PAGE 7 OF 9
O673 CITY OF KENNEDALE, TX 2019
SECTION 2.
Section 12.8 “Required Off -Street Parking” of the Unified Development Code is
amended by amending Section 12.8.A.6. to read as follows:
“6. MF District. Parking spaces must be enclosed or covered in compliance with Section
3.6 of this Code”.
PAGE 8 OF 9
O673 CITY OF KENNEDALE, TX 2019
SECTION 3.
Table 13.6 “Buffer Area Landscape Requirements” of the Unified Development
Code is hereby amended to read as follows:
Table 13.6 Buffer Area Landscape Requirements
District T ype Min. W idth Min. Landscaping Requirements
per 50 Linear Ft.
AG, R-1, R-2, R-3, D, MH
(non- agricultural and
residential principal uses)
1 10 ft. 1 canopy tree or 1 evergreen tree
1 ornam ental tree or 12 shrubs
MF In compliance with Section 3.6
C-0, C-1, C-2 2 10 ft.
1 canopy tree
1 evergreen tree or 1 ornam ental tree
8 shrubs
I 3 25 ft.
2 canopy trees
1 evergreen tree or 1 ornam ental tree
12 shrubs
SECTION 4.
This Ordinance shall be cumulative of all provisions of ordinances and of the
Unified Development Code of the City of Kennedale, Texas (2016), as amended, except
when the provisions of this Ordinance are in direct conflict with the provisions of such
ordinances and such code, in which event the conflicting provisions of such ordinances
and such code are hereby repealed.
SECTION 5.
It is hereby declared to be the intention of the City Council that the sections,
paragraphs, sentences, clauses, or phrases of this Ordinance shall be declared invalid
or unconstitutional by the valid judgment or decree of any court of competent jurisdiction
such invalidity or unconstitutionality shall not affect any of the remaining sections,
paragraphs, sentences, clauses, and phrases of this Ordinance, since the same would
have been enacted by the City Council without the incorporation in this Ordinance of
any such invalid or unconstitutional section, paragraph, sentence, clause, or phrase.
SECTION 6.
Any person, firm, or corporation who violates, disobeys, omits, neglects or
refuses to comply with or who resists the enforcement of any of the provisions of this
Ordinance shall be fined not more than Two Thousand Dollars ($2,000.00). Each day
that a violation is permitted to exist shall constitute a separate offense.
SECTION 7.
All rights and remedies of the City of Kennedale , Texas, are expressly saved as
to any and all violations of the provisions of any ordinances governing development that
have accrued at the time of the effective date of this Ordinance; and, as to such accrued
PAGE 9 OF 9
O673 CITY OF KENNEDALE, TX 2019
violations and all pending litigation, both civil and criminal, whether pending in court or
not, under such ordinances, same shall not be affected by this Ordinance but may be
prosecuted until final disposition by the courts.
SECTION 8.
The City Secretary of the City of Kennedale is hereby directed to publish in the
official newspaper of the City of Kennedale the caption, the penalty clause, the
publication clause, and the effective date clause of this ordinance as provided by
Section 3.10 of the Charter of the City of Kennedale.
SECTION 9.
This Ordinance shall be in full force and effect from and after the date of its
passage and publication as required by law, and it is so ordained.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
KENNEDALE, TEXAS, THIS THE 20TH DAY OF AUGUST, 2019.
APPROVED:
______________________________
MAYOR BRIAN JOHNSON
ATTEST: [ C I T Y S E A L ]
______________________________
CITY SECRETARY LESLIE E. GALLOWAY
APPROVED AS TO FORM AND LEGALITY: EFFECTIVE DATE:
______________________________ ______________________________
CITY ATTORNEY DREW LARKIN
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: DECISION ITEMS - F.
I. Subject:
Conduct a public hearing and consider approval of Ordinance 674, amending the Unified Development Code by
adding a new “R-4” Single-Family District and providing for new R-4 District regulations by amending Section 3.1
“Purpose”, Table 3.2 “Schedule of Uses: Agricultural and Residential Districts”, Table 3.3 “Spatial Requirements:
Agricultural and Residential Districts”, Section 10.9.C.1 “Dwellings per Lot”, Section 11.2 “Accessory Buildings”,
Section 11.30 “Residential Sales”, Section 11.36 “Sexually Oriented Businesses”, Section 11.38 “Temporary Uses”,
Section 12.8 “Required Off-Street Parking”, Section 13.2 “General Landscaping Requirements”, Table 13.6 “Buffer
Area Landscape Requirements”, and Section 29.5 “Board of Adjustment”.
II. Originated by:
Melissa Dailey, Director of Planning & Economic Development
III. Summary:
Most of the residential developments in recent years have had smaller lot sizes than what is currently allowed by the
City’s Unified Development Code (UDC). Currently, the smallest allowable lot width for a single family development is
80 feet wide (R3). The City’s code currently has three zoning categories – R1 with a 100-foot width and 1 acre
minimum; R2 with a 100-foot width and approximately 1/3 acre minimum; and R3 with an 80-foot width and 1/5 acre
minimum.
Developments including the Glen of Village Creek, Hilltop, and (most recently) Magnolia Hills, are all smaller lot
developments of 5,000 to 6,000 square feet, with most lots having a 50-foot width. Oak’s Court – a small new
development of 14 homes targeted to baby boomers – includes lots that are 40 feet wide. These developments are
being built to respond to the significant growth in the Metroplex. More than half of the population is comprised of
millennials and baby boomers, many of whom have a tendency to want properties with less yard and maintenance.
The only current zoning option for these smaller lot developments is PD (Planned Development) zoning, and the
process to obtain a PD requires an extensive amount of time for developers. This longer approval time creates a
deterrent to residential development for Kennedale. Planned Developments are intended to be a zoning option for
unique developments that do not fit into any existing zoning categories. Smaller lot developments are not unique in
this market, as evidenced by the trend for residential development in Kennedale in the last several years.
In response to the demand for smaller lot developments in this market, staff is recommending an additional residential
zoning category of R4, which would allow for a minimum 5,000 square foot lot with 50-foot frontages and 5-foot side
setbacks. As with all rezoning, a request for R4 zoning would be subject to the same review and approval process as
other applications, but the option for the smaller lot size would be available to developers and would streamline the
process.
The Planning & Zoning Commission recommended approval by a 6-1 vote at their Regular Meeting on August 15,
2019.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
Approve
VII. Alternative Actions:
VIII. Attachments:
1.O674_R-4 Zoning District O674_R-4 Zoning District_TOASE.pdf
PAGE 1 OF 11
O674 CITY OF KENNEDALE, TX 2019
ORDINANCE NO. 674
AN ORDINANCE AMENDING THE UNIFIED DEVELOPMENT CODE OF
THE CITY OF KENNEDALE, TEXAS, BY ADDING A NEW “R-4"
SINGLE-FAMILY DISTRICT AND PROVIDING FOR NEW R-4 DISTRICT
REGULATIONS BY AMENDING SECTION 3.1 “PURPOSE”, TABLE 3.2
“SCHEDULE OF USES: AGRICULTURAL AND RESIDENTIAL
DISTRICTS”, TABLE 3.3 “SPATIAL REQUIREMENTS:
AGRICULTURAL AND RESIDENTIAL DISTRICTS”, SECTION 10.9.
C.1. “DWELLINGS PER LOT”, SECTION 11.2 “ACCESSORY
BUILDINGS”, SECTION 11.30 “RESIDENTIAL SALES”, SECTION
11.36 “SEXUALLY ORIENTED BUSINESSES”, SECTION 11.38
“TEMPORARY USES”, SECTION 12.8 “REQUIRED OFF-STREET
PARKING”, SECTION 13.2 “GENERAL LANDSCAPING
REQUIREMENTS”, TABLE 13.6 “BUFFER AREA LANDSCAPE
REQUIREMENTS”, AND SECTION 29.5 “BOARD OF ADJUSTMENT”;
PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF
ALL ORDINANCES; PROVIDING A SEVERABILITY CLAUSE;
PROVIDING FOR A PENALTY FOR VIOLATIONS HEREOF;
PROVIDING A SAVINGS CLAUSE; PROVIDING FOR PUBLICATION;
AND PROVIDING AND EFFECTIVE DATE.
WHEREAS, the City of Kennedale, Texas, is a home rule city acting under its
charter adopted by the electorate pursuant of Article XI, Section 5 of the Texas
Constitution and Chapter 9 of the Local Government Code; and
WHEREAS, the City Council has adopted the City of Kennedale Unified
Development Code (“Unified Development Code”) that regulates the location and use of
buildings, other structures and land for business, industrial, residential or other
purposes, for the purpose of promoting the public health, safety, mo rals and general
welfare, all in accordance with a comprehensive plan and that otherwise regulates the
development and use of properties within the city limits of the City of Kennedale; and
WHEREAS, the City Council deems it necessary and in the best int erest of the
public health, safety and welfare to adopt a new R-4 zoning district for residential uses
which may in the future be located within the city; and
WHEREAS, the Planning and Zoning Commission of the City of Kennedale,
Texas, held a public hearing on August 15, 2019, and the City Council of the City of
Kennedale, Texas, held a public hearing on August 20, 2019, with respect to the
amendments described herein; and
WHEREAS, the City has complied with all requirements of Chapter 211 of the
Local Government Code, Article 22 of the Unified Development Code, and all other laws
dealing with notice, publication, and procedural requirements for amending the Unified
Development Code.
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O674 CITY OF KENNEDALE, TX 2019
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF KENNEDALE, TEXAS, THAT:
SECTION 1.
Section 3.1 “Purpose” of the Unified Development Code is hereby amended to
read as follows:
“Section 3.1 Purpose
This article outlines the Agricultural and Residential Zoning Districts and contains basic
information pertaining to the land use regulation and spatial requirements for buildings
and lots.
A. Agricultural District (AG). The AG District is established to be used primarily in areas
where agricultural uses or open space currently exist and are planned to be preserved.
B. Single-Family Residential District (R-1). The R-1 District is established to allow for
larger, single-family dwellings on large lots. This district is intended to provide a more
rural residential setting.
C. Single-Family Residential District (R-2). The R-2 District permits dwellings on
smaller lots.
D. Single-Family Residential District (R-3). The R-3 District permits dwellings on
smaller lots allowing for affordable housing for residents and is intended to
accommodate development in existing subdivisions and new development.
E. Single-Family Residential District (R-4). The R-4 District permits dwellings on lots
smaller than those lots within R-3, allowing for affordable housing for residents and is
intended to accommodate development in existing subdivisions and new development.
F. Two-Family Residential District (D). The D District is established to allow more
affordable housing for both rental and ownership, as well as for a more diverse housing
stock. This district is established to meet the needs for two-family residential
development where such areas are suitable for higher densities than traditional areas of
single-family dwellings.
G. Multi-Family Residential District (MF). The MF District is established to meet the
needs for medium to high density residential development where such areas are
suitable for higher impact development and higher volume traffic while encouraging the
provision of conveniently located rental accommodations.
H. Manufactured Home District (MH). The MH District is intended to provide for quality
manufactured home park subdivision development containing many of the
characteristics and atmosphere of a conventional type single-family residential
subdivision.”
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O674 CITY OF KENNEDALE, TX 2019
SECTION 2.
Table 3.2 “Schedule of Uses: Agricultural and Residential Districts” of the Unified
Development Code is hereby amended to read as follows:
Table 3.2 Schedule of Uses: Agricultural and Residential Districts
Use AG R-1 R-2 R-3 R-4 D MF MH Other
Accessory Uses
Accessor y buildings P P P P P P P P 11.2
Garage sales P P P P P P P P 11.10
Holida y tree and firewood sales S 11.17
Hom e occupation P P P P P P P P 11.18
Outdoor displa y, accessor y retail sales 11.23
Outdoor displa y, tem porary accessory retail sales 11.24
Outdoor storage, comm ercial and industrial 11.25
Residential sales P P P P P P P P 11.30
Solar energ y equipm ent P P P P P P P P 11.37
Accommodations, Hospitality, Entertainment
Banquet hall
Bed and breakfast S S S S S S P
Hotel/m otel
Micro-brewer y
Micro-winery with vineyard
Micro-winery without vineyard
Private club
Recreation facilit y, cam pground S
Recreation facilit y, comm ercial indoor
Recreation facilit y, comm ercial indoor,
am usem ent m achine establishm ent
11.26
Recreation facilit y, commercial indoor-
pool or billiards hall
Recreation facilit y, comm ercial indoor-
gun shooting range
S
11.27
Recreation facility, comm ercial indoor-
paintball or other sur vival gam es
Recreation facilit y, comm ercial outdoor 11.28
Recreation facilit y, commercial outdoor- paintball
or other sur vival gam es
S
11.28
Recreation facilit y, comm unit y-based S S S S S S S S
Recreation facilit y, driving range P
Recreation facilit y, golf course P S S S S S S S
Recreation facilit y, recreational vehicle park P 11.29
Recreation facilit y, rodeo ground and arena S
Recreation facilit y, vehicular racing facilit y
Restaurant
Restaurant with drive-through 11.31
Restaurant with m icro-brewery or m icro-winery
Restaurant with outdoor dining or service
Tavern
Theater, m ovie, indoor
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O674 CITY OF KENNEDALE, TX 2019
Table 3.2 Schedule of Uses: Agricultural and Residential Districts
Use AG R-1 R-2 R-3 R-4 D MF MH Other
Agricultural
Agricultural operation or farm P S S S S 11.3
Agribusiness and feed store (without anim al sales) P
Agribusiness and feed store (with anim al sales) S
Agritourism P
Farm ers market S
Greenhouse and nurser y, comm ercial A 11.15
Keeping of anim als, hobby farm P
Roadside (produce) stand S 11.32
Stables, private P S
Stables, public/comm ercial P
W inery, with vine yard P
Industrial
Im pound vehicle storage facility 11.19
Landfill
Manufacturing, processing and packaging- light 11.20
Manufacturing, processing and packaging- light,
and associate r etail sales
11.20
Manufacturing, processing and packaging- heavy 11.20
Mining and m ineral extraction operation 11.22
Outdoor storage, comm ercial and industrial 11.25
Salvage operations 11.33
W arehousing
W holesale and distribution
Mini-warehouse/self-storage
W inery, without vineyard
Infrastructure, Transportation, Communications
Airport 11.5
Airstrip S 11.5
Bus term inal
Essential services P P P P P P P P 11.9
Drilling and production of oil and gas S S S S S S S S 11.7
Freight term inal, railroad
Freight term inal, trucking
Gathering and com pression station S S S S S S S S 11.7
Helicopter landing pad S 11.5
Infrastructure and utilities- regional S S S S S S S S
Park ing facilit y, public or commercial
Satellite transm ission antenna S S S S S S S S 11.34
W aste m anagem ent facility
W aste m anagem ent facility- transfer station
W ind energy turbine S 11.41
W ireless communication facilit y S S S S S S S S 11.42
Institutional/Civic
Cem eter y S S S S S S S S
Community oriented cultural facilit y P P P P P P P P
Community public safety- fire P P P P P P P P
Community public safety- police S S S S S S S S
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O674 CITY OF KENNEDALE, TX 2019
Table 3.2 Schedule of Uses: Agricultural and Residential Districts
Use AG R-1 R-2 R-3 R-4 D MF MH Other
Community public safety- prison or penitentiar y
Governm ental facility P
Meeting facility
Park s, playgrounds, outdoor recreation P P P P P P P P
Place of worship P P P P P P P P
School, college or university S S S S S S S S
School, elem entar y, m iddle, high school P P P P P P P P
School, nurser y or k indergarten S S S S S S S S
School, specialized/training
Offices and Services
Anim al services, anim al clinic/hospital 11.4
Anim al services, comm ercial kennel S 11.4
Anim al services, shelter or rescue S 11.4
Bod y branding, piercing and tattoo facilit y
Child care center 11.6
Crem atorium
General offices and services, alternative financial
establishm ents
11.11
General offices and services, bank/financial
services
General offices and services, bail bond
establishm ent
11.12
General offices and services - business services
General offices and services - business support
services
General Offices & Services- Construction and
Building Services, outdoor storage
11.25
General offices and services - gunsm ith and sales
General offices and services - personal services
General offices and services- personal services-
funeral hom e (without crematory services)
General offices and services- personal services-
laundry and dr y cleaners
General offices and services - professional and
adm inistrative services
General offices and services- with a drive through
facility
Medical ser vices, clinics
Medical ser vices, m edical offices
Medical ser vices, hospital
Vehicle r epair, m ajor 11.39
Vehicle r epair, m inor
Vehicle wash
Vehicle wash, truck s and heavy equipm ent
Residential
Day care, child da y care home P P P P P P P P 11.6
Day care, group hom e day care hom e S S S S S S S 11.6
Dwelling, attached accessory S S S S S S S S 11.8
Dwelling, detached accessory S S S S S S S S 11.8
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O674 CITY OF KENNEDALE, TX 2019
Table 3.2 Schedule of Uses: Agricultural and Residential Districts
Use AG R-1 R-2 R-3 R-4 D MF MH Other
Dwelling, m ulti-family P
Dwelling, m ulti-family, upper floor
Dwelling, single-fam ily P P P P P P P P
Dwelling, single-fam ily attached P
Dwelling, two-fam ily P P
Group housing, adult group hom e P P P P P P P 11.16
Group housing, boarding (room ing) house P
Group housing, convalescent or nursing hom e P
Group housing, fraternit y or sororit y hom e P
Group housing, halfwa y house S S S S S S S
Group housing, independent and assisted living P
Live-work unit
Manufactured hom e community P 11.21
Retail
Bakery, retail- under 2,000 square feet of gross
floor area
Bakery, retail- 2,000 square feet or m ore of gross
floor area
General retail (indoor)
General retail (indoor)- over 50,000 square feet of
gross floor area
11.13
General retail (outdoor)
General retail, alcohol sales 11.14
General retail (indoor)- auto parts
General retail (indoor)- pawnshop 11.11
General retail with a drive-through
Liquefied petroleum gas (LPG) sales
Service station 11.35
Vehicle sales and rental: autom obiles, light trucks,
boats
11.40
Vehicle sales and rental: heav y equipm ent/tools,
heavy truck s, RVs, m anufactured hom es
11.40
Other
Sim ilar uses P,S
C
P,S
C
P,S
C
P,S
C
P,S
C
P,S
C
P,S
C
P,S
C
2.7
Sexuall y oriented business 11.36
Tem porar y construction office S S S S S S S S 11.38
Tem porar y sales office S S S S S S S S 11.38
Tem porar y use- mobile food establishment
catering truck P P P P P P P P 11.38
ice cream truck P P P P P P P P 11.38
lunch truck 11.38
mobile food preparation truck P P P P P P P P 11.38
produce truck 11.38
Tem porar y use- special function S S S S S 11.38
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O674 CITY OF KENNEDALE, TX 2019
SECTION 3.
Table 3.3 “Spatial Requirements: Agricultural and Residential Districts” of the
Unified Development Code is hereby amended to read as follows:
Table 3.3 Spatial Requirements: Agricultural and Residential Districts
Requirem ent AG R-1 R-2 R-3 R-4 D MF MH
Lots
Min. Area
(s.f.)
Sewer 43,560 21,780 15,000 8,750 5,000 8,750 2,750/
unit
5,000
Septic 43,560 43,560 43,560 43,560 43,560 43,560 43,560 43,560
Max. Densit y
(units per acre)
- - - - - - 16 -
Min. W idth (ft.) 80 100 100 80 50 70 75 50/lot
Min. Depth (ft.) 125 125 125 100 100 125 125 100/lot
Max Im pervious (%) 50 50 50 50 50 50 50 50
Setbacks
Min. Front
(ft.)1
Prim ary 50 50 40 30 30 30 30 10/lot
Secondar y 20 20 20 15 15 15 15 10
Min. Side
(ft.)
T otal2 30 30 30 20 5 16 16 8
Least 10 10 10 8 2 8 8 4
Min. Rear (ft.)3 45 30 30 15 15 15 15 10/lot
Principal Buildings
Max. Height (ft.) 50 50 40 40 40 35 30 22.5
Max. Stories (num ber) 2.5 2.5 2.5 2.5 2.5 2.5 2 1.5
Min. GFA (s.f.) 1,500 1,500 1,500 1,250 1,250 1,000/
unit
- 320
Min. Multi-
Fam ily
Bedroom Area
(s.f.)4
Efficiency - - - - - - 600 -
One BR - - - - - - 800 -
T wo BR - - - - - - 900 -
T hree BR - - - - - - 1,000 -
Min. Masonr y (%) 80 80 80 80 80 80 80 -
Accessory Buildings (100 s.f. +)
Max. Num ber - 3 2 1 1 2 - 1
Max. Size (% of rear
yard)
20 10 10 10 10 10 10 10
Max. Height (ft.) - 15 15 15 15 15 - -
Max. Stories (num ber) 1 1 1 1 1 1 1 1
Min. Side Street Setback
(ft.)
- - - - - - 15 -
Min. Side Setback (ft.) 8 8 8 8 8 8 8 -
Min. Rear Setback (ft.) 8 8 8 8 8 8 25 -
Min. Setback from
Principal (ft.)
5 5 5 5 5 5 15 -
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O674 CITY OF KENNEDALE, TX 2019
SECTION 4.
Section 10.9.C.1. “Dwellings per Lot” of the Unified Development Code is hereby
amended to read as follows:
“1. Dwellings per Lot. No more than one (1) primary dwelling shall be permitted on
any lot of record which is zoned as an AG, R-1, R-2, R-3, R-4 or MH District.”
SECTION 5.
Section 11.2 “Accessory Buildings” of the Unified Development Code is amended
by amending Section 11.2.B.3.a. to read as follows:
“a. Attached and detached accessory buildings shall be of new construction and have
exterior walls made of wood, stone, brick, or vinyl siding. The Board of Adjustment may
approve accessory buildings with an exterior building material other than wood, stone,
brick or vinyl siding in the R-1, R-2, R-3, R-4, D, and Old Town Districts.”
SECTION 6.
Section 11.30 “Residential Sales” of the Unified Development Code is amended
by amending Section 11.30.B.2. to read as follows:
“2. No more than two (2) motor vehicles, boats or other similar vessels subject to
registration under V.T.C.A., Parks and Wildlife Code, Chapter 31, camper shells, or
combination these items, shall be displayed on a lot at any one (1) time on a parcel in
the R-3, R-4, and MH Zoning Districts.”
SECTION 7.
Section 11.36 “Sexually Oriented Businesses” of the Unified Development Code
is amended by amending Section 11.36.D.3. to read as follows:
“3. A boundary of a residential district (including, but not lim ited to, zoning
classifications AG, R-1, R-2, R-3, R-4, OT, D, MF and MH);”
SECTION 8.
Section 11.38 “Temporary Uses” of the Unified Development Code is amended
by amending Section 11.38.D.1 to read as follows:
“1. Locations. Special functions may be permitted in an R-1, R-2, R-3 or R-4
Districts.”
SECTION 9.
Section 12.8 “Required Off-Street Parking” of the Unified Development Code is
hereby amended by amending Section 12.8.A.4. to read as follows:
“4. R-2, R-3, and R-4 Districts. Parking spaces for at least two (2) vehicles shall be
provided in an enclosed garage for any single -family dwelling constructed after the date
of adoption of this section. A front entry garage is prohibited unless the vehicle entryway
is screened from view from the front public right -of-way by the dwelling or other
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O674 CITY OF KENNEDALE, TX 2019
structure. For the purposes of this section, a porte-cochere shall constitute sufficient
screening of a front entry garage provided the vehicle entryway of the garage is located
no less than 80 feet from the front property line. Regardless of the orientation of the
garage required by this section, any gate or door to a porte -cochere must be of wrought
iron construction and must not screen more than 25 percent of its entryway.”
SECTION 10.
Section 13.2 “General Landscaping Requirements” of the Unified Development
Code is amended by amending Section 13.2.A. to read as follows:
“A. Applicability. The requirements contained in this article shall be applicable to all
zoning districts in the city except for the AG, R-1, R-2, R-3 and R-4 zoning districts;
however any non-residential use (such as, but not limited to, governmental, nonprofit,
religious, institutional, and educational facilities) located within the AG, R-1, R-2, R-3,
and R-4 zoning districts, which involves the construction of any principle building,
parking area, or sign, shall comply with the requirements contained in this article. The
requirements in this article shall apply in the following situations:
1. When an existing building is proposed for remodeling, alteration, addition,
or expansion, and the value of the proposed construction exceeds 75
percent of the current appraised value of the existing structures, excluding
the value of the land;
2. When an existing building is proposed for an addition that will have the
cumulative effect of increasing the footprint of the original building existing
on the date of the adoption of this article by more than 50 percent;
3. When new construction is proposed on the property;
4. As a requirement of the approval of a rezoning, special use permit, or PD;
5. When a new certificate of occupancy is requested and two (2) or more
years has passed since the last occupancy of the property; or
6. There is a change in use of the property. A change in use shall be defined
as occurring when one (1) of the following conditions is satisfied:
a. The new use of the property is first allowed in a less restrictive
(more intensive) zoning district than the most recent use; or
b. A rezoning to a less restrictive (more intensive) zoning district
classification is necessary.”
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O674 CITY OF KENNEDALE, TX 2019
SECTION 11.
Table 13.6 “Buffer Area Landscape Requirements” of the Unified Development
Code is hereby amended to read as follows:
Table 13.6 Buffer Area Landscape Requirements
District T ype Min. W idth Min. Landscaping Requirem ents
per 50 Linear Ft.
AG, R-1, R-2, R-3, R-4, D,
MF, MH (non- agricultural
and residential principal
uses)
1 10 ft. 1 canopy tree or 1 evergreen tree
1 ornam ental tree or 12 shrubs
C-0, C-1, C-2 2 10 ft. 1 canopy tree
1 evergreen tree or 1 ornam ental tree
8 shrubs
I 3 25 ft. 2 canopy trees
1 evergreen tree or 1 ornam ental tree
12 shrubs
SECTION 12.
Section 29.5 “Board of Adjustment” of the Unified Development Code is
amending by amending Section 29.5.D.10. to read as follows:
“10. Consider construction of an accessory building in the R -1, R-2, R-3, R-4, Duplex
and Old Town districts with an exterior building material other than wood, stone, brick,
or vinyl siding; and”
SECTION 13.
This Ordinance shall be cumulative of all provisions of ordinances and of the
Unified Development Code of the City of Kennedale, Texas (2016), as amended, except
when the provisions of this Ordinance are in direct conflict with the provisions of such
ordinances and such code, in which event the conflicting provisions of such ordinances
and such code are hereby repealed.
SECTION 14.
It is hereby declared to be the intention of the City Council that the sections,
paragraphs, sentences, clauses, or phrases of this Ordinance shall be declared invalid
or unconstitutional by the valid judgment or decree of any court of competent jurisdic tion
such invalidity or unconstitutionality shall not affect any of the remaining sections,
paragraphs, sentences, clauses, and phrases of this Ordinance, since the same would
have been enacted by the City Council without the incorporation in this Ordinanc e of
any such invalid or unconstitutional section, paragraph, sentence, clause, or phrase.
SECTION 15.
Any person, firm, or corporation who violates, disobeys, omits, neglects or
refuses to comply with or who resists the enforcement of any of the provisions of this
Ordinance shall be fined not more than Two Thousand Dollars ($2,000.00). Each day
that a violation is permitted to exist shall constitute a separate offense.
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O674 CITY OF KENNEDALE, TX 2019
SECTION 16.
All rights and remedies of the City of Kennedale are expressly saved as to any
and all violations of the provisions of any ordinances governing development that have
accrued at the time of the effective date of this Ordinance; and, as to such accrued
violations and all pending litigation, both civil and criminal, whether pending in court or
not, under such ordinances, same shall not be affected by this Ordinance but may be
prosecuted until final disposition by the courts.
SECTION 17.
The City Secretary of the City of Kennedale is hereby directed to publish in the
official newspaper of the City of Kennedale the caption, the penalty clause, the
publication clause, and the effective date clause of this ordinance as provided by
Section 3.10 of the Charter of the City of Kennedale.
SECTION 18.
This Ordinance shall be in full force and effect from and after the date of its
passage and publication as required by law, and it is so ordained.
PASSED AND APPROVED BY T HE CITY COUNCIL OF THE CITY OF
KENNEDALE, TEXAS, THIS THE 20TH DAY OF AUGUST, 2019.
APPROVED:
______________________________
MAYOR BRIAN JOHNSON
ATTEST: [ C I T Y S E A L ]
______________________________
CITY SECRETARY LESLIE E. GALLOWAY
APPROVED AS TO FORM AND LEGALITY: EFFECTIVE DATE:
______________________________ ______________________________
CITY ATTORNEY DREW LARKIN
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: DECISION ITEMS - G.
I. Subject:
Consider Ordinance 675, vacating and abandoning a 10’ utility easement on 1033 Estates Drive, Lot 9, Block 1,
Brookstone Estates Addition, and authorizing the City Manager to execute a Quitclaim Deed
II. Originated by:
Melissa Dailey, Director of Planning & Economic Development
III. Summary:
Staff has received an application by a property owner, Josh Altom, for vacation of a 10-foot utility easement on the
rear of his property for the purposes of installing a pool. This easement surrounds the perimeter of the Brookstone
Estates neighborhood, a standard requirement for new neighborhoods to accommodate future adjacent development.
DFW Midstream has a 20-foot gas line easement directly behind this utility easement, and the City’s Future
Transportation Plan shows a road extension behind this property. Therefore, there would not be future residential
development adjacent to this property or utilities for any future development within this utility easement.
All required documents have been provided, and the utility companies have all approved vacating this easement. Staff
recommends approval.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
Approve
VII. Alternative Actions:
VIII. Attachments:
1.Altom Notated Plat Altom Notated Plat.pdf
2.O675_Vacating and Abandoning Easement O675_Vacating and Abandoning Easement.pdf
3.O675 Quitclaim Deed.Abandon Easement O675 Quitclaim Deed.Abandon Easement.pdf
PAGE 1 OF 4, INCLUDING EXHIBIT “A”
O675 CITY OF KENNEDALE, TX 2019
ORDINANCE NO. 675
AN ORDINANCE OF THE CITY OF KENNEDALE, TEXAS, VACATING
AND ABANDONING A CERTAIN DESCRIBED UTILITY EASEMENT;
DECLARING THAT SUCH EASEMENT IS UNNECESSARY FOR USE
BY THE PUBLIC; AUTHORIZING THE CITY MANAGER TO EXECUTE
A QUITCLAIM DEED; PROVIDING FOR SEVERABILITY; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Kennedale, Texas, is a home rule city acting under its
power adopted by the electorate pursuant to Article XI, Section 5 of the Texas
Constitution and Chapter 9 of the Local Government Code ; and
WHEREAS, the City Council of the City of Kennedale, Texas, after careful study
and consideration, has determined that a portion of a utility easement, described on the
attached Exhibit “A” is not being used by, nor is useful or convenient to the public in
general; therefore, it constitutes a public charge without a corresponding public benefit,
and the public would be better served and benefitted by its vacation and abandonment;
and
WHEREAS, in order to remove any question as to the continued interest in the
easement to be abandoned, the City of Kennedale, Texas, desires to execute a
quitclaim deed releasing and assigning all title and control in the easement to be
abandoned to the owners of the estate on which the easement to be abandoned is
located.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF KENNEDALE, TEXAS, THAT:
SECTION 1.
The City Council finds that the portion of the utility easement more particularly described
on the attached Exhibit “A” (the “Easement”), is not being used by, nor useful or
convenient to the public in general and that the public would be better served and
benefitted by the vacation and abandonment of the Easement, and the City of
Kennedale, Texas, hereby vacates, abandons, and releases the Easement.
SECTION 2.
The City Manager of the City of Kennedale, Texas, is hereby authorized and
empowered to execute a quitclaim deed releasing all claims to title, ownership, or
control of the Easement.
SECTION 3.
After the quitclaim deed is executed, the City Secretary of the City of Kennedale, Texas,
is authorized and instructed to file it in the deed records of Tarrant County, Texas.
PAGE 2 OF 4, INCLUDING EXHIBIT “A”
O675 CITY OF KENNEDALE, TX 2019
SECTION 4.
In the event any clause, phrase, provision, sentence, or part of this ordinance or
the application of the same to any person or circumstance shall for any reason be
adjudged invalid or held unconstitutional by a court of competent jurisdiction, it shall not
affect, impair, or invalidate this ordinance as a whole or any part o r provision hereof
other than the part declared to be invalid or unconstitutional; and the City Council of the
City of Kennedale, Texas, declares that it would have passed each and every part of the
same notwithstanding the omission of any such part thus declared to be invalid or
unconstitutional, whether there be one or more parts.
SECTION 5.
This Ordinance shall be in full force and effect from and after its passage, and it is so
ordained.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
KENNEDALE, TEXAS, THIS THE 20TH DAY OF AUGUST, 2019.
APPROVED:
______________________________
MAYOR BRIAN JOHNSON
ATTEST: [ C I T Y S E A L ]
______________________________
CITY SECRETARY LESLIE E. GALLOWAY
APPROVED AS TO FORM AND LEGALITY: EFFECTIVE DATE:
______________________________ ______________________________
CITY ATTORNEY DREW LARKIN
PAGE 3 OF 4, INCLUDING EXHIBIT “A”
O675 CITY OF KENNEDALE, TX 2019
ORDINANCE NO. 675
EXHIBIT “A”
The Easement
PAGE 4 OF 4, INCLUDING EXHIBIT “A”
O675 CITY OF KENNEDALE, TX 2019
PAGE 1 OF 4, INCLUDING EXHIBIT “A”
QUITCLAIM DEED RELATED TO O675 CITY OF KENNEDALE, TX 2019
QUITCLAIM DEED
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
That the City Council of the City of Kennedale, Texas, after careful study and consideration,
has determined that certain property used for a utility easement, and hereinafter specifically
described, is not being used by, nor useful or convenient to the public in general; therefore, it
constitutes a public charge without a corresponding public benefit, the public would be better
served and benefitted by its vacation, abandonment, and release, and the City of Kennedale has
therefore, by Ordinance No. 675, vacated, abandoned, and released the easement. For and in
consideration of the above findings and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the City of Kennedale does hereby bargain, sell,
release, vacate, abandon and forever quitclaim unto
____________________________________________________________________ (“Grantee”)
and any and all of his/her/their heirs, legal representatives or assigns, all of its right, title, and
interest in and to the following described real property situated in Tarrant County, Texas, to wit:
A portion of a utility easement more particularly described on the attached Exhibit
“A”.
TO HAVE AND TO HOLD all of its right, title and interest in and to the above described
property unto the said Grantee, his/her/their heirs and assigns forever, so that neither Grantor nor its
heirs, legal representatives or assigns shall have, claim or demand any right or title to the aforesaid
property, premises or appurtenances or any part thereof.
EXECUTED this _____ day of _____________________, 2019.
CITY OF KENNEDALE, TEXAS
By: _______________________________
George Campbell, City Manager
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QUITCLAIM DEED RELATED TO O675 CITY OF KENNEDALE, TX 2019
ACKNOWLEDGEMENT
STATE OF TEXAS §
§
COUNTY OF TARRANT §
This instrument was acknowledged before me on the ______ day of
___________________, 2019, by George Campbell, City Manager of the City of Kennedale,
Texas, a municipality, on behalf of said municipality.
_______________________________
Notary Public in and for the
State of Texas
My Commission Expires: _______________________________
Type or Print Notary's Name
______________________
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QUITCLAIM DEED RELATED TO O675 CITY OF KENNEDALE, TX 2019
EXHIBIT “A”
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QUITCLAIM DEED RELATED TO O675 CITY OF KENNEDALE, TX 2019
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: EXECUTIVE SESSION - A.
I. Subject:
Discussion with the City Attorney regarding settlement agreement between Ron Sturgeon, et al and the City of
Kennedale
II. Originated by:
III. Summary:
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
VII. Alternative Actions:
VIII. Attachments:
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: EXECUTIVE SESSION - B.
I. Subject:
Discussion with the City Attorney regarding salvage yards, including A&A Pickup & Van, Inc., and special
exception/special use permits
II. Originated by:
III. Summary:
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
VII. Alternative Actions:
VIII. Attachments:
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: EXECUTIVE SESSION - C.
I. Subject:
Discussion with the City Attorney regarding an early termination and release agreement with Global Water
Management, LLC
II. Originated by:
III. Summary:
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
VII. Alternative Actions:
VIII. Attachments:
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: July 16, 2019
Agenda Item No: EXECUTIVE SESSION - D.
I. Subject:
Discussion with City Attorney regarding legal issues associated with Economic Development and Performance
Agreement, Tax Abatement, and Chapter 380 Agreement with Compressed Air Systems for project located at Harris
Corporation Addition, Block 1 Lot 1A2 (Linda Road)
II. Originated by:
III. Summary:
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
VII. Alternative Actions:
VIII. Attachments:
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: August 20, 2019
Agenda Item No: EXECUTIVE SESSION - E.
I. Subject:
Economic Development and Performance Agreement, Tax Abatement, and Chapter 380 Agreement with Compressed
Air Systems for project located at Harris Corporation Addition, Block 1 Lot 1A2 (Linda Road)
II. Originated by:
III. Summary:
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
VII. Alternative Actions:
VIII. Attachments: