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2019_09.17 CC Packet
KENNEDALE CITY COUNCIL AGENDA REGULAR MEETING | SEPTEMBER 17, 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 Anyone wishing to address the City Council regarding Work Session items may do so as that item is considered, provided that a ‘Speaker Request Form’ is submitted to the City Secretary before the Work Session 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. A. Continue interviews of applicants for appointment to Advisory Boards and Commissions, if needed B. Discussion regarding the composition, purpose, and charge of the Utility and Infrastructure Board (UIB) C. Discussion of contracting with Chute 2 Productions to hold the "Kennedale Western Festival", a Professional bull riding event with various vendors to be held on Saturday, November 9, 2019 in TownCenter, at a cost of $15,000.00 D. Continued discussion regarding the City Manager's Proposed Fiscal Year 2019–2020 annual budget E. 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 Indivisib le." 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 i ndividual 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 the 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 C. Updates from the City Manager IX. INCIDENTAL ITEMS X. MONITORING INFORMATION A. Monthly Financials for August 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 c onsidered separately. A. Approval of the minutes from the August 20, 2019 Regular Meeting B. Approval of the minutes from the 5:00 p.m. September 5, 2019 Special Meeting C. Approval of the minutes from the 7:00 p.m. September 5, 2019 Special Meeting D. Consider approval of Ordinance 677, approving a negotiated settlement between the Atmos Cities Steering Committee (“ACSC”) and Atmos Energy Corp., Mid-Tex Division regarding the company’s 2019 rate review mechanism (RRM) filing E. Consider authorizing the City Manager to sign a one-year extension of an Interlocal Agreement with City of Fort Worth for rabies control services and the utilization of animal impoundment and quarantine facilities F. Discuss and consider approval of Resolution 559, to adopt the HART InterCivic Verity, version 2.3.1, for use in Absentee Voting By Mail, Early Voting By Personal Appearance, Regular Voting on Election Day and Provisional Voting G. Approval of Resolution 560, approving the continued receipt of a share of bingo prize fees collected by licensed authorized organizations in accordance with section 2001.502 of the Texas Occupations Code XII. DECISION ITEMS A. Discuss and consider Ordinance 678 of the City of Kennedale, Texas, adopting the Budget for the Fiscal Year beginning October 1, 2019, and ending September 30, 2020; appropriating resources for each department, project, operation, activity, purchase, account, and other expenditures; providing for emergency expenditures and expenditures as allowed by applicable State Law; providing for the filing and posting of the Budget as required by State Law; providing a severability clause; and providing an effective date B. Discuss and consider ratification of property tax increase reflected in FY2019–2020 Adopted Budget C. Discuss and consider approval of Ordinance 679, fixing and levying municipal Ad Valorem Taxes for the City of Kennedale, Texas, for the Fiscal Year beginning October 1, 2019, and en ding September 30, 2020; directing the assessment and collection thereof; providing a severability clause; and providing an effective date D. Consider making appointments to various advisory boards and commissions E. Consider authorizing the City Manager to enter into an agreement with Shield Engineering Group for civil engineering services associated with roadway, water, sanitary sewer and drainage improvements for Linda Road F. Consider authorizing the City Manager to enter into an agreement with Shield Engineering Group for civil engineering services associated with roadway, water, sanitary sewer, and drainage improvements for Collett Sublet Road G. Consider authorizing the City Manager to enter into an agreement with Shield Engineering Group for civil engineering services associated with approximately 600 linear feet of roadway for Trent Street 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 salvage yards, including A&A Pickup & Van, Inc., and special exception/special use permits XIV. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO EXECUTIVE SESSION, IF NEEDED XV. ADJOURNMENT CERTIFICATION I DO HEREBY CERTIFY THAT THE SEPTEMBER 17, 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 accessible 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: September 17, 2019 AGENDA ITEM: WORK SESSION ITEM A. SUBJECT: Continue interviews of applicants for appointment to Advisory Boards and Commissions, if needed ORIGINATED BY: Leslie E. Galloway, City Secretary & Communications Coordinator SUMMARY: As the Council is aware, odd-numbered Advisory Board and Commission seats expire in September of odd years. Staff began sending emails to those with expiring terms on July 24, 2019, as well as posting application information on the City's website, Facebook, Twitter, and newsletter. During the July 16, 2019 Work Session, the consensus among the Council was to only interview new applicants. Interviews were held on Thursday, September 5 and Friday, September 13. There is an action item on this agenda to consider making appointments, if needed. Attached to this item are rosters of all current boards (indicating any expiring terms or vacancies, but not reflecting any appointments that may have been made by the Council during their meeting on Friday, September 13 at 2:30 p.m.). CITY OF KENNEDALE ADVISORY BOARDS AND COMMISSIONS The City maintains six advisory boards, five of which are advisory to Council, and provide feedback, updates, and recommendations on projects, actions, and other relevant topics: Keep Kennedale Beautiful Commission (KKB) Parks and Recreation Board Planning and Zoning Commission (P&Z) Utility and Infrastructure Board Youth Advisory Council (YAC) (application process occurs in the Spring) One board is advisory to staff: Library Advisory Board The City currently maintains two* quasi-judicial boards, which are tasked with enforcing public policy and making legally-binding decisions based on the authority given to the board by state law. These boards also provide feedback and updates Council: Board of Adjustment (BOA) Building Board of Appeals (BBA) *While these are, indeed, two separate boards, for the purposes of the City of Kennedale, all Board of Adjustment (BOA) members shall automatically serve as members of the Building Board of Appeals (BBA). The City maintains three separate entity boards, which serve as advisory to City Council, but are separate legal entities from the City of Kennedale. These boards each oversee an independent affiliate organization: Kennedale Economic Development Corporation (EDC or KEDC) TownCenter Development District (TDD) Tax Increment Reinvestment District (TIRZ) RECOMMENDATION: ATTACHMENTS: 1.2019_09.09 Board Rosters and Applicants 2019_09.12 Board Rosters and Applicants.pdf Attachment #NOTES APPLIED FORYour Nomination For This Applicant15:00 p.m.Parks, P&Z25:15 p.m.Parks3XBOA/BBA; EDC;KKB; Parks; TDD45:45 p.m.Parks; P&Z56:15 p.m.EDC; P&Z6XLibrary; KKB76:45 p.m.EDC; P&ZUPDATE62:30 p.m.Library; KKBUPDATENEW2:45 p.m.Previous ServiceP&ZUPDATE103:00 p.m.Serves on UIBEDC; P&ZUPDATE3X BOA/BBA; EDC;KKB; Parks; TDDUPDATENO APPXUnknown8Previous serviceParks; P&Z9Previous serviceBOA/BBA; P&Z10Serves on UIBEDC; P&Z11Previous service; *Requested BOA/BBAand P&Z be added to her applicationEDC; TDD; TIRZ, BOA/BBA*, P&Z*12Serves on EDC (Vice President)TDD; TIRZ13Serves as an alternate on BOA/BBAEDC; P&Z14Serves on BOA/BBATDDUPDATEPrevious ServiceP&ZInterviews to be Scheduled forFriday, September 13Jessica VirnocheHeather HicksMark PerkinsVinita ThomasKeith CourtneyAnn BeckJessica VirnocheJeremy JohnstonAndrew SchafferHeather HicksAustin DegenhartThose Who Have Previous Service on a Board OR are Currently Serving but have Applied for a New/Additional Board(The City Council did not request that these applicants be scheduled for interviews.) Derrick RubinLana SatherVinita ThomasDavid GreenAzam ShaikhMark PerkinsPatrick VaderJan JoplinRobert MundyNEW APPLICATIONS AS OF 09.08.2019Interview Schedule forThursday, September 5, 2019 from 5:00 to 7:00 p.m. Attachment #(Places in RED are expiring or vacant.)TERMENDSPLACE MEMBERYour Nomination For This Place1620191 Eric ElamBOA, Place 1: Incumbent Eric Elam ☐ OTHER _____________________________________20202Jeff NevarezChair1720193 Perry ClementiBOA, Place 3: Incumbent Perry Clementi ☐ OTHER _____________________________________20204 Martin Young1420195 Lana SatherBOA, Place 5: Incumbent Lana Sather OTHER _____________________________________20206*Kelli RodAlternateX20197*Josh VirnocheAlternateBOA, Place 7: IncumbentOTHER _____________________________________20208*Thelma KobeckAlternate1320199*Azam ShaikhAlternateBOA, Place 9: Incumbent Azam Shaikh ☐ OTHER _____________________________________BOA*These Places Serve as AlternatesNew Applicants: Jan Joplin, Patrick Vader, Jessica VirnocheBoard of Adjustment/Building Board of AppealsNOTESReapplied in hardcopy 08.01.2019Reapplied online 07.27.2019Reapplied online 07.09.2019Does not wish to continue service(via email 08.05.2019)Reapplied online 08.06.19;Requests promotion to regular place on BOA/BBA;+ applied for P&Z (new) + EDC (new) Attachment #(Places in RED are expiring or vacant.)TERMENDSPLACE MEMBERYour Nomination For This Place1820191 Johnny TrevinoEDC, Place 1: Incumbent Johnny Trevino ☐ OTHER _____________________________________UPDATE20202VACANTwas Cesar GuerraEDC, Place 2: Cesar GuerraOTHER _____________________________________X20193VACANT(was Ron Whitley)EDC, Place 3: IncumbentOTHER _____________________________________20204 Darold Tippey1220195Robert MundyVice PresidentEDC, Place 5: Incumbent Robert Mundy ☐ OTHER _____________________________________20206Mark YearyPresident1920197 April ColtharpEDC, Place 7: Incumbent April Coltharp ☐ OTHER _____________________________________NOTESEDCEconomic Development CorporationNew Applicants: Mark Perkins, Austin Degenhart, Jan Joplin, Jessica Virnoche, Azam Shaikh, Andrew SchafferAppointed November 2018 to partial term;Reapplied online 08.27.2019Cesar Guerra resigned 08.19.2019; Withdrew resignation 09.11.2019; Requests reappointment to same place.VACANCYAppointed May 2019; Wishes to continue service;Most recent application attachedAppointed November 2018 to partial term;Reapplied online 07.31.2019 Attachment #(Places in RED are expiring or vacant.)TERMENDSPLACE MEMBERYour Nomination For This Place2020191 Cesar GuerraKKB, Place 1: Incumbent Cesar Guerra ☐ OTHER ___________________________________20202 Darlene WintersX20193 Vinita ThomasKKB, Place 3: IncumbentOTHER _____________________________________X20204VACANT(was Michael Chandler, Chair)KKB, Place 4: IncumbentOTHER _____________________________________2120195 Wilda TurnerKKB, Place 5: Incumbent Wilda Turner ☐ OTHER _____________________________________20206 Kenneth Michels2220197 Linda MillerKKB, Place 7: Incumbent Linda Miller ☐ OTHER _____________________________________20208Laurie SandersVice Chair2320199 Lauren WarnKKB, Place 9: Incumbent Lauren Warn ☐ OTHER _____________________________________Keep Kennedale Beautiful CommissionNew Applicants: Heather Hicks, Jessica VirnocheKKBAppointed November 2018; Wishes to continue service but is moving in June 2020; Staff would still recommend reappointment; Most recent application attachedDoes not wish to continue service(via email 08.01.2019)VACANCYReapplied online 07.31.2019Appointed November 2018 to partial term;Wishes to continue service (via email 7.23.2019);Most recent application attachedNOTESReapplied online 08.07.2019 Attachment #(Places in RED are expiring or vacant.)TERMENDSPLACE MEMBER NOTESYour Nomination For This Place2420191 Susan Reed DalrympleLAB, Place 1: Incumbent Susan Dalrymple ☐ OTHER _____________________________________20202 Josh VirnocheX20193 Stan SeatLAB, Place 3: IncumbentOTHER _____________________________________20204 Troy BrannonX20195 Donald RaweLAB, Place 5: IncumbentOTHER _____________________________________Library BoardLIBRARYNew Applicants: Heather HicksDoes not wish to continue service (via email 07.24.2019)Does not wish to continue service (via email 08.28.2019)Appointed November 2018; Reapplied online 07.24.2019 Attachment #(Places in RED are expiring or vacant.)TERMENDSPLACE MEMBERYour Nomination For This Place1520191 David Deaver, ChairParks, Place 1: Incumbent David Deaver ☐ OTHER _____________________________________20202 Jeff Nevarez2520193Kenneth MichelsParks, Place 3: Incumbent Kenneth Michels ☐ OTHER _____________________________________20204 Gary Swan2620195 Phil WallaceParks, Place 5: Incumbent Phil Wallace ☐ OTHER _____________________________________20206VACANTwas Josh HayesParks, Place 6: IncumbentOTHER _____________________________________X20197 Donald Spikes Parks, Place 7: IncumbentOTHER _____________________________________New Applicants: Ann Beck, David Green, Jessica Virnoche, Keith Courtney, Jeremy JohnstonReapplied online 08.20.2019Appointed November 2018Does not wish to continue service(via email 07.31.2019)PARKSParks & Recreation BoardAppointed July 2019; Wishes to continue service;Most recent application attachedVACANCY; Josh Hayes resigned via email 09.04.2019NOTESReapplied online 07.27.2019 Attachment #(Places in RED are expiring or vacant.)TERMENDSPLACE MEMBERYour Nomination For This Place2720191 Greg AdamsP&Z, Place 1: Incumbent Greg Adams ☐ OTHER _____________________________________20202Martha DibellaChairX20193 Bob GruenhagenP&Z, Place 3: Incumbent Bob Gruenhagen ☐ OTHER _____________________________________20204 Kayla Hughes2820195 Sheldon GerronP&Z, Place 5: Incumbent Sheldon Gerron ☐ OTHER _____________________________________20206 Billy Don GilleyX20197 John HivaleP&Z, Place 7: Incumbent John Hivale ☐ OTHER _____________________________________20208Brent JonesAlternateX20199Allen RayAlternateP&Z, Place 9: IncumbentOTHER _____________________________________UPDATEReapplied online 07.25.2019New Applicants: Mark Perkins, Austin Degenhart, David Green, Jan Joplin, Patrick Vader, Keith Courtney, Azam Shaikh, Andrew Schaffer, Jeremy Johnston, Vinita ThomasP&Z*These Places Serve as AlternatesPlanning & Zoning CommissionAppointed November 2018;Does not wish to continue service;Resigned effective immediatelyNOTESAppointed May 2019; Wishes to continue service (via email 07.24.2019); Most recent application attachedPlans to reapply (via VM on 08.13.2019);No application received as of 08.29.2019Appointed May 2019Promoted in November 2018;Originally appointed to Place 8 (Alternate) May 2018;No application or response received as of 08.29.2019 Attachment #(Places in RED are expiring or vacant.)TERMENDSPLACE MEMBER NOTES REPRESENTINGYour Nomination For This Place2920191 Darold TippeyAppointed November 2018;Applied online 09.05.2019CityTIRZ, Place 1: Incumbent Darold Tippey ☐ OTHER _____________________________________20202 Bruce CatesCityX20193Councilmember Chris PughAppointed July 2019CityTIRZ, Place 3: Incumbent Chris Pugh ☐ OTHER _____________________________________20204 Councilmember Chad WandelAppointed July 2019CityX20195Precinct 2 CommissionerDevan AllenCountyTIRZ, Place 5: Tarrant County Precinct 2 Commissioner Devan AllenX20206Jill "J.R." Labbe, Vice President, Communications & Community Affairs Hospital DistrictTIRZ, Place 6: Jill "J. R." Labbe, Vice President, Communications & Community Affairs for JPSX20197Dr. Eugene Giovannini, Chancellor [If he is unavailable, Susan Alanis (Chief Operating Officer) will serve as his proxy.]College DistrictTIRZ, Place 7: Dr. Eugene Giovannini, Chancellor; with COO Susan Alanis designated as his proxy, if/when needed.TIRZNew Applicants: Jan Joplin, Robert MundyRepresentatives selected by external taxing unit; All are new and shouldbe included in any motion to appoint members to this Board.Tax Increment Reinvestment Zone #1 Board Attachment #(Places in RED are expiring or vacant.)TERMENDSPLACE MEMBER NOTESQUALIFYING PLACEYour Nomination For This PlaceX20191EDC PresidentMark YearyAutomatic Appointment of EDC PresidentEDC PresidentTDD, Place 1:Automatic Appointment of EDC President Currently: Mark Yeary20202EDC MemberApril ColtharpMust be EDC Board MemberAppointed July 2019EDC Board MemberX20193MayorBrian JohnsonAutomatic Appointment of MayorMayorTDD, Place 3: Automatic Appointment of MayorCurrently: Brian Johnson20204Mayor Pro TemSandra LeeMust be Councilmember CouncilmemberX20195CouncilmemberLinda RhodesMust be CouncilmemberAppointed July 2019CouncilmemberTDD, Place 5: Incumbent Linda Rhodes Must be a CouncilmemberOTHER _____________________________________TDDNew Applicants: Jan Joplin, Robert Mundy, Jessica Virnoche, Lana SatherTownCenter Development District Board Attachment #(Places in RED are expiring or vacant.)TERMENDSPLACE MEMBERYour Nomination For This PlaceX20191 Harry BrowneUIB, Place 1: IncumbentOTHER _____________________________________20202 Kenneth Michels1820193Johnny TrevinoVice ChairUIB, Place 3: Incumbent Johnny Trevino ☐ OTHER _____________________________________20204 Jeff GregoryX20195 Tom NewsomUIB, Place 5: IncumbentOTHER _____________________________________20206Idin DeljavanChair1020197 Mark PerkinsUIB, Place 7: Incumbent Mark Perkins ☐ OTHER _____________________________________20208*Amy CatesAlternateX20199*VACANTAlternateUIB, Place 9: IncumbentOTHER _____________________________________*These Places Serve as AlternatesNOTESDoes not wish to continue service (via email 08.27.2019)Utility & Infrastructure BoardVACANCYDoes not wish to continue service (via email 07.31.2019)Appointed November 2018; Reapplied online 08.27.2019Reapplied online 07.31.2019 + P&Z (new) and EDC (new)New Applicants: NONEUIB STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: WORK SESSION ITEM B. SUBJECT: Discussion regarding the composition, purpose, and charge of the Utility and Infrastructure Board (UIB) ORIGINATED BY: George Campbell, City Manager SUMMARY: The Utility and Infrastructure Board (UIB) was created via Ordinance 614 (attached) in October 2016 with 7 regular members (with a quorum of 4). It was expanded to include 2 alternate members via Ordinance 656 (attached) in December 2018. Also attached is current City Code (www.cityofkennedale.com/code) regarding this board (Chapter 23, Article 2, Division 1, Sec. 23-33), which incorporates each of these ordinances and defines the composition, purpose, and charge of the UIB. RECOMMENDATION: ATTACHMENTS: 1.Ordinance 614 - Creating UIB Ordinance 614 - Creating UIB.pdf 2.Ordinance 656 - Adding Alternate Members UIB Ordinance 656 - Adding Alternate Members UIB.pdf 3.Kennedale, TX Code of Ordinances - UIB Kennedale, TX Code of Ordinances - UIB.pdf (a) (b) (1) (2) a. b. c. (3) (4) (c) (1) (2) (3) (4) Sec. 23-33. - Utility and infrastructure board. Creation and purpose. There is hereby created and established a utility and infrastructure board. Such board shall be officially designated as the utility and infrastructure board of the City of Kennedale, Texas. The board shall provide recommendations and advice to the city council on policies, projects, and other matters pertaining to the water and wastewater system, the storm water utility system, the street/transportation system, and the solid waste collection system. Membership. The board shall consist of seven (7) regular members, designated by Places 1 through 7, who shall be appointed by a majority vote of the city council. Places 1, 3, 5, and 7 shall serve two (2) year terms expiring October 1 of odd numbered years and Places 2, 4, and 6 shall serve two (2) year terms expiring October 1 of even numbered years. The city council may also appoint by majority vote two (2) alternate members, designated as Places 8 and 9 who shall serve in the absence of one or more regular members. Place 8 shall be appointed to an initial term expiring October 1, 2020. Place 9 shall be appointed to an initial term expiring October 1, 2019. Thereafter the terms for each alternate place shall be two (2) years. Members must meet the following qualifications: Be a registered voter of the city; Shall have resided in the corporate limits of the city for at least one (1) year; and Shall continue residency in the city during the term of office. The city council shall appoint a replacement to fill any vacancy for the unexpired term of a member whose place has become vacant. The city council shall have the authority to remove any member at any time, with or without cause. Organization, rules, and requirements. By November of each year, the membership shall determine, by simple majority vote, a chair and vice chair. The terms of the chair and vice chair shall be one (1) year. It will be the duty of the chair to preside over meetings. If the chair is absent the vice chair shall assume the duties of the office. Members of the board shall meet at least six (6) times per year, on a regular day and time selected by its members. The chair may call special meetings as necessary. The board shall conduct meetings and govern its proceedings according to the city council's adopted rules of order, abide by the Texas Open Meetings Law, and shall keep a record of its proceedings, including votes and attendance, and shall submit these records to the city secretary's office. Members of the board shall not take any action unless a quorum is present. A quorum shall consist of four (4) members. Each member, including the chair, is entitled to one (1) vote, and action of the board shall require a majority of those members present. (5) (6) (d) (1) (2) a. b. c. d. e. f. The city manager shall designate a city employee to serve as staff liaison to the board. Members of the board shall receive one dollar ($1.00) for each regular meeting attended as compensation for the performance of their duties, but no compensation shall be paid for special meetings. In addition, members may receive reimbursement of authorized expenses attendant to the performance of their duties. Powers and duties. This board is advisory only and shall not have any decision-making authority. The board shall have the following duties: To make studies and project plans for the city's water and wastewater system; solid waste collection system; streets/transportation system; and storm water utility system, including erosion controls and improvements along Village Creek tributaries and improvements to the main branch of Village Creek; To aid and assist the city in the procuring of financial and other aids and assistance for the city from the state and federal governments and their agencies for each and all the purposes herein enumerated; To act with and assist all other municipal boards, governmental agencies, regional associations and the city council in formulating proper plans for utility infrastructure development; To plan and recommend capital improvement projects (CIP) related to the water and wastewater utility, storm water utility, streets and transportation, and solid waste utility; To recommend general rules and regulations governing use of water and wastewater utilities, storm water utility, streets and transportation, and solid waste collection; To accomplish these duties, the board may establish subcommittees as necessary. Any subcommittee shall be chaired by a utility and infrastructure board member, and an unspecified number of community volunteers may be chosen by the commission as working subcommittee members. ( Ord. No. 614 , §§ 1-4, 10-17-16; Ord. No. 656 , § 1, 12-11-18) STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: WORK SESSION ITEM C. SUBJECT: Discussion of contracting with Chute 2 Productions to hold the "Kennedale Western Festival", a Professional bull riding event with various vendors to be held on Saturday, November 9, 2019 in TownCenter, at a cost of $15,000.00 ORIGINATED BY: Larry Hoover, Public Works Director SUMMARY: Chute 2 Productions produces annual professional bull riding events in North Texas Cities including Lake Worth, Granbury, Springtown, Nevada, Princeton, Wylie and Haslet — each of which have experienced increasing revenues as the event grows in popularity over the years. The provided arena is portable and can be adjusted to accommodate almost any location and provide a safe event. As outlined in the contract, Kelly Clark and Chute 2 Productions would provide advertising, livestock, an arena, and personnel for the event; and the City would provide a location, electricity (200 amps), sand for the arena floor, a standby Ambulance/EMT, fencing for ticketed entrances, and lighting if needed. Public Works staff would assist Chute 2 with any necessary set-up (including fencing to direct the public to the entrance) and assist in directing parking. Parks Board members will be available to collect money at the gates. The attached contract is a draft provided by Chute 2, which has not yet been fully reviewed by the City Attorney, but is almost certainly insufficient to protect the City from the potential losses or liabilities related to such an event. Mr. Kelly Clark has provided a brief slide presentation with photos from his events (events). At their August 7, 2019 Regular Meeting, the Parks and Recreation Board received a presentation from Mr. Clark and voted unanimously to recommend hosting such an event in Kennedale. The Board would also recommend charging $5.00 for admission, with children 12 and under being free. However, during their September 4, 2019 Regular Meeting, the Parks Board continued their discussion of this potential event, and expressed concern regarding several factors including the lack of funding, the total budget required (including items and staffing outside of those provided by the contract), and the lack of lead time to plan and publicize such an event. Following that meeting, staff understood that it was the consensus of the Parks Board that the event might be better suited as a portion of a larger event (rather than an event unto itself) possibly during 2020 (to allow more time for development and promotion). However, no additional or substituted formal recommendation was made by the Board. Mr. Craig Hughes, Managing Principal of Hughes Commercial Texas, was not in favor of hosting the event on an undeveloped lot in TownCenter. A second potential location is Sonora Park. However, challenges could include its isolation from the business center, very limited parking (coupled with the significant cost and logistical hardship of providing and managing a transportation system to available parking), and the potential inconvenience to adjacent residents including those at the senior living facility. There is currently no funding allocated for this event, and with a cost of $5.00 per person (over age 12), an attendance of 4,000 people ages 13+ would be necessary to cover the costs of this event, which is estimated at ~$20,000 ($15,000 for the contract, plus additional costs for materials and staffing, which are estimated at $4,000 to $5,000). Staff reached out to some of the other Cities who have hosted this event to gather feedback, which is summarized as follows: The Granbury Convention and Visitors Bureau stated that they "highly recommend them and even advertise 'Visit Granbury' in the arena as a sponsor for Chute 2". The City of Lake Worth stated that "the City recently became more involved with the event, as the Lions Club used it as a fund raiser previously. They did have an issue with some damage last year, so they invoiced him for the repairs, which he paid. They are looking forward to this year’s event and they have no concerns with Chute 2." The City of Springtown stated that "the City has actually had a great deal of success in working with Chute 2 Productions. We have found them easy to work with and they work hard to make sure their events stay well within our ordinances. All the events that they have worked with us and our local chamber of commerce has always proved to be successful. Based on my past experiences with Chute 2, I would recommend them without hesitation." RECOMMENDATION: Postpone Staff recommends that the City continues to evaluate this proposal for consideration in 2020, allowing sufficient time to vet all issues and negotiate an acceptable contract for consideration by the City Council. ATTACHMENTS: 1.2019_08.07 Chute 2 Presentation to Parks Board 2019_08.07 Chute 2 Presentation to Parks Board.pdf 2.Chute 2 Provided Contract Kennedale Western Festival 2019 Chute 2 Provided Contract Kennedale Western Festival 2019.pdf 8/13/2019 1 Kelly Clark 817‐228‐2474 Springtown, Texas Granbury Granbury Granbury 8/13/2019 2 Granbury 2019 Texas Music Revolution, Plano 8/13/2019 3 Wylie First Baptist 2019 Lone Star Shootout, Nevada Haslet Open Bull Riding Haslet Open Bull Riding 8/13/2019 4 Haslet Open Bull Riding Haslet Open Bull Riding Haslet Open Bull Riding PBR World Champion Ednie Caminhas, Brazil Lake Worth 8/13/2019 5 8/13/2019 6 Justin Fun Days 8/13/2019 7 8/13/2019 8 8/13/2019 9 Chute 2 Productions 2019 Schedule of Shows Sixth Annual Bull Riding on the Beach March 16 24th Annual Texas Music Revolution and Rodeo Second Annual First Baptist Wylie Rodeo Third Annual Lone Star Shootout 10th Annual Haslet Wild West Fest 35 Annual Springtown Wild West Fest Fifth Annual Princeton Fall Fest Seventh Annual Bull Frog West Fest Kennedale Western Festival 2019 Agreement between Kelly Clark and the City of Kennedale , Texas to produce a Bull Riding show in Kennedale, Texas November 9 ,2019. Kelly Clark will provide the following to produce said Bull Riding event: 1.) Bulls and Riders for event 2.) Announcers for event 3.) Official Judges for Bull Riding Competitions 4.) Bull Fighters and Clown for Cowboy protection and entertainment 5.) Advertising for Bull Riding event 6.) Panel sled for animal removal in event of animal injury 7.) Secretary / Timer for bull riding event 8.) Music and Sound 9.) Calves and for kid events 10.) Awards for event 11.) All Arena advertising will be paid directly to Kelly Clark 12.) No other advertising allowed in arena except through Mr. Clark 13.) All arena video content is sole property of Kelly Clark Committee will provide: 1.) Event location 2.) Electricity to arena 200 amps 3.) Sand for Arena area 4.) Ambulance / EMT $ 15,000.00 paid to Kelly Clark 5.) Lighting if needed Payment schedule of $5,000.00 on signing contract Balance of $ 10,000.00 to be paid on or before November 1, 2019. City of Kennedale Representative _____________________________ Date___________________________ _____________________________ Date ___________________________ Kelly Clark 817-228-4274 1601 Mc Void Road Springtown, TX 76082 chute2productions@gmail.com WARNING UNDER TEXAS LAW (CHAPTER 87, CIVIL PRACTICE AND REMEDIES CODE), A FARM ANIMAL PROFESSIONAL IS NOT LIABLE FOR AN INJURY TO OR THE DEATH OF A PARTICIPANT IN FARM ANIMAL ACTIVITIES RESULTING FROM THE INHERENT RISKS OF FARM ANIMAL ACTIVITIES. STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: WORK SESSION ITEM D. SUBJECT: Continued discussion regarding the City Manager's Proposed Fiscal Year 2019–2020 annual budget ORIGINATED BY: George Campbell, City Manager Lakeita Sutton, Director of Finance and Information Technology SUMMARY: At this time, the Council may continue any discussion regarding the FY19–20 Proposed Budget and Tax Rate, and staff will, again, be available to answer questions. 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). It was distributed to the Council on Friday, August 16, along with an Informal Staff Report (attached) outlining the sources and outcome of changes in proposed amounts. Discussion of the Budget continued during the Work Session of the Tuesday, August 20 Regular Meeting. A second Informal Staff Report (also attached) was sent to the Council on Wednesday, August 28, addressing questions from Council during that meeting. Public Hearings were held on Thursday, September 5 (on the budget and the tax rate) and on Friday, September 13 (on the tax rate only). For your reference, staff's presentation from the Thursday, September 5 Public Hearing on the Proposed FY19–20 Budget is attached (with updated dates and one correction to slide 9 regarding the ending fund balance of the Stormwater Fund, as discussed during that meeting). The only additional update to the FY 19–20 Proposed Budget is the receipt of the proceeds from the 2019 Tax Notes. The Capital Bond Fund budget (attached) has been updated to recognize the $1,957,00 that the City anticipates receiving before the end of FY18–19, which will improve the Fund Balance of the Capital Bond Fund for both FY18–19 and FY19–20. The ending fund balance for FY19–20 is now projected to be $1.8 million. The Council can elect to spend the proceeds at any time for the purposes stated in Ordinance 670, which approved the debt issuance: "(I) acquiring land for parks and a future public safety facility, (II) constructing street improvements in various locations in the city, together with curbs, gutters, sidewalks, utility relocation and/or drainage improvements incidental thereto, (III) acquiring rights of way for existing and future streets, and (IV) paying professional services related to the design, construction, project management and financing of such projects" RECOMMENDATION: ATTACHMENTS: 1.**NEW** FY19–20 Capital Bond Fund Proposed Budget Update FY19–20 Capital Bond Fund Proposed Budget Update.pdf 2.2019_09.13 Proposed Budget 2019-2020 PPT for Pub Hearing 2019_09.13 Proposed Budget 2019-2020 PPT for Pub Hearing.pdf 3.2019_08.16 ISR FY19-20 Proposed Budget 2019_08.16 ISR FY19-20 Proposed Budget.pdf 4.2019_08.28 ISR Budget Questions From 8.20 Council Work Session 2019_08.28 ISR Budget Questions From 8.20 Council Work Session.pdf FISCAL YEAR 2019-2020 PROPOSED BUDGET CAPITAL BOND FUND 13-CAPITAL BOND FUND 2016-2017 2017-2018 2018-2019 2018-2019 2019-2020 ACTUAL ACTUAL APPROVED PROJECTED PROPOSED REVENUES 13-4401-00-00 INVESTMENT INCOME -$ -$ 10,770 500 13-4902-00-00 PROCEEDS-DEBT/LOAN/LEASE -$ 736,450 - 13-4903-00-00 2019 TAX NOTES 1,957,000 - TOTAL REVENUES -$ -$ -$ 2,704,220$ 500$ FUND EXPENDITURES 13-5625-03-00 ENGINEERING SVCS PENNSYLV - - - 5,186 - 13-5625-07-00 ENGINEERING SVCS BOWMAN SPRINGS - - - 81,615 - 13-5850-08-00 TX DOT BRIDGE PROJECT 570,000 - 570,000 13-5851-09-00 SAFE ROUTES TO SCHOOL 165,000 - 165,000 TOTAL FUND EXPENDITURES -$ -$ 735,000$ 86,801$ 735,000$ -$ -$ (735,000)$ 2,617,419$ (734,500)$ OTHER FINANCING SOURCES (USES) TRANSFERS IN (OUT)- - - - - - - - - - - - - - - NET CHANGE IN FUND BALANCE -$ -$ (735,000)$ 2,617,419$ (734,500)$ RESTRICTED FUND BALANCE, OCT 1 - - - - 2,617,419 - - - - - RESTRICTED FUND BALANCE, SEP 30 -$ -$ (735,000)$ 2,617,419$ 1,882,919$ REVENUES OVER (UNDER) EXPENDITURES TOTAL OTHER FINANCING SOURCES (USES) 9/9/2019 1 PROPOSED BUDGET HIGHLIGHTS FISCAL YEAR 2019–20 SEPTEMBER 13, 2019 AT 2:00 P.M. CITY COUNCIL WORK SESSION Major Assumptions & Highlights GENERAL FUND 9% increase in property valuations One-cent property tax increase Implementation of compensation and pay plan for City staff 9/9/2019 2 Major Assumptions & Highlights GENERAL FUND (cont.) 4.5% increase in health insurance costs Projected drawdown of $854,694 7.94% Fund Balance as a Percentage of Expenditures Budget Enhancements GENERAL FUND General Fund Salary Improvements $320,000 (Additional $30,000 in Streets Fund) Breathing Apparatus (Fire Dept.) $40,830 4.5% Health Insurance Increase $17,376 One Additional Police Officer $95,714 Planner I Position $56,208 Office Space in Library $14,000 Employee Assistance Program $1,746 9/9/2019 3 General Fund Expenditures FY16-17 ACTUAL FY17-18 ACTUAL FY18-19 APPROVED FY18-19 PROJECTED FY19-20 PROPOSED City Manager $ 356,066 $ 361,526 $ 365,464 $ 335,716 $ 347,179 Mayor/City Council 129,553 158,562 177,323 174,422 186,444 City Secretary 152,017 130,434 164,073 173,982 167,322 Municipal Court 110,036 89,729 108,148 99,072 110,778 Human Resources 123,083 165,221 104,909 103,537 104,931 Finance 293,954 341,383 358,365 316,745 378,601 Police 2,056,591 2,119,441 2,604,764 2,371,491 2,432,866 Police SRO 133,728 142,259 155,077 149,258 158,144 Fire 1,679,349 1,727,193 1,907,680 1,915,356 2,095,168 Community Development 305,758 337,991 371,590 380,707 395,323 Senior Citizen Center 66,084 49,895 54,528 53,244 63,376 Library 284,790 311,250 268,259 276,626 276,629 Non-Departmental 504,400 390,256 511,749 429,572 519,887 Health Insurance Increase 17,376 Salary Improvements 320,000 New Programs/Resources 208,498 Total Expenditures $ 6,195,408 $ 6,325,141 $ 7,151,929 $ 6,779,728 $ 7,782,522 Tax Rates Current Tax Rate: $0.725714/$100 Proposed Tax Rate: $0.734970/$100 Maximum Rate Council Can Adopt*: $0.734971/$100 Rollback Tax Rate: $0.734971/$100 Effective Tax Rate: $0.688321/$100 *Without possibility of a rollback election 9/9/2019 4 Major Assumptions & Highlights WATER AND SEWER FUND Arlington contracts in place $220,000 for FATHOM early release (one-time expense) Increase franchise fee to Street Fund from 5% to 7% ($77,000) Water/Sewer renewal for Linda Road ($300,000) Working Capital 31.2% No Water/Sewer Rate Increase Major Assumptions & Highlights STREET IMRPOVEMENT FUND Increase franchise fee transfer to Streets from the Water/Sewer Fund (from 5% to 7%) Adds approximately $77,000 in revenue Recommended adoption of Street Maintenance Fee (Similar to Stormwater Fee) 9/9/2019 5 Major Assumptions & Highlights STORMWATER FUND Recommend increasing Stormwater Fee from $3.50 to $4.50 (as a part of originally planned step program) Adds approximately $33,200 in revenue Cost of needed drainage projects: $1,009,371 Proposed Budget includes $866,787 drawdown, leaving an ending fund balance of $354,890 Next Steps TODAY: FRIDAY, SEPTEMBER 13 AT 2:00 P.M. Public Hearing on Tax Rate TUESDAY, SEPTEMBER 17 Regular Meeting to Adopt Budget and Tax Rate #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 #2019-08-28 PAGE 1 CITY OF KENNEDALE | www.cityofkennedale.com INFORMAL STAFF REPORT to the Mayor and City Council DATE: Wednesday, August 28, 2019 SUBJECT: Budget Questions from the August 20, 2019 City Council Work Session ORIGINATED BY: Lakeita Sutton, Finance Director During the Work Session of the Tuesday, August 20 City Council meeting, Councilmember Rhodes had several questions regarding the FY19–20 Proposed Budget. Below you will see those questions, as understood by staff, as well as the answers to each. Of note, the page numbers cited within this report reference the page numbers as marked (e.g., the page marked 18 is the 24th page of the PDF) in the Proposed Budget that was filed with the City Secretary on Monday, August 12, and is available to the public at cityofkennedale.com/budget (rather than the hardcopy draft distributed to the Council on Tuesday, August 6). The page numbers are similar in each, but not identical. On page 18, in the “All Funds Expenditure Summary”, why is there a $10,000 expenditure included for the TIF Fund for FY19–20, when no correlating expenditure is shown on the individual budget sheet for the TIF? The $10,000 should have been removed from the “All Funds Expenditure Summary” (as it was on the budget sheet) since this is not being proposed for FY19–20. Staff will make this correction before presenting an updated budget document for consideration by the Council. On page 21, why is there such a large difference between the FY18–19 Budgeted and FY18–19 Projected “Miscellaneous Income” line item? Landfill revenue should be received by the Capital Projects Fund. However, in FY18–19, $83,000 in landfill revenue was erroneously budgeted to be received by the General Fund instead. This error was recognized and corrected before calculating the FY18–19 projection. For FY19–20, the landfill revenue is appropriately budgeted to be received into the Capital Projects Fund. On page 28, what caused the increase in the Mayor/Council “Special Services” line item for FY19–20? The $6,350 difference (from FY18–19) reflects the cost of a consultant/facilitator for the City Council’s annual retreat. This expense was previously paid from the City Manager’s budget. However, since it is a City Council expense, it is appropriately being budgeted there for FY19–20. In the event the expense is not incurred in FY 19–20, a savings will be recognized. #2019-08-28 PAGE 2 CITY OF KENNEDALE | www.cityofkennedale.com On page 47, why did gas services increase from $1,800 in FY18–19 to $2,500 in FY19–20? The previous two years have shown an annual increase of approximately $400 for natural gas service to the Senior Center. For FY18–19, this line item was under-budgeted at $1,100. Staff estimates that the $2,500 budgeted for FY19–20 will account for both the historical increase plus ongoing inflation. On page 51, why is the budgeted $65,000 transfer from the General Fund to the Capital Replacement Fund not included in the FY18–19 projection? The Capital Replacement Fund has sufficient funding to support all budgeted needs for the remainder of FY18–19. Therefore, in an effort to offer relief to the General Fund, staff proposes to delay this transfer (originally budgeted to occur in FY18–19) until FY19–20. The Funds will be used in FY19–20 for information technology (IT) and/or vehicle replacements as needed. In the event that the expense is not incurred in FY19–20, the General Fund will, again, be provided relief and savings will be recognized. On page 54, why is the Police Personnel increasing by three positions in FY19–20? The original personnel budget included all three of the additional requested patrol officers. However, the final Proposed Budget recommended by the City Manager for FY19-20 reflects the addition of just one of these positions (for a total of 22 FTEs (Full-Time Equivalents)) for FY19–20. Staff will make this correction before presenting an updated budget document for consideration by the Council. On page 64, what does the $10,780 in the Enterprise Lease Senior Center line item cover? This amount covers the leased van for the Senior Center, which — as was discussed at the August 20 meeting — does not include a lift. On page 67, why did Drainage Improvements increase from $47,993 (FY18–19) to $1,009,371 (FY19–20)? Several drainage projects (including pipe rehabilitation on Hilltop Court and improvements along Pennsylvania Avenue) are budgeted in FY19–20 as a part of the Five-Year Stormwater Capital Projects Plan. However, during the discussion on August 20, it was determined that some of the projects originally included in the FY19–20 Proposed Budget will actually be funded with proceeds from the 2018 Tax Note. Therefore, the “Drainage Improvement” line item for FY19–20 will be updated to $427,000 (instead of $1,009,371). As a result, the drawdown of the Stormwater Utility Fund for FY19–20 will decrease from $866,878 to $284,416, with a projected ending Fund Balance of $937,261, providing additional opportunity for drainage improvements in FY 19-20. #2019-08-28 PAGE 3 CITY OF KENNEDALE | www.cityofkennedale.com On page 78, why did the Temporary Part Time line item in the Streets Fund increase significantly from FY18–19 to FY19–20? There are currently three employees budgeted in the Streets Fund that were previously positions in the Water/Sewer Fund. This change occurred as a result of the maintenance and operations functions within Water/Sewer Fund being transferred to the City of Arlington in March 2019. On page 94, why are there two “Misc-Income Paver” line items in the Park Dedication Fund? These two line items represent identical object codes being utilized in two different fiscal years. One of the line items will cease to appear in future years, but is still needed at this time for accounting purposes. Regarding renovations at the Senior Center: There are no funds allocated in the FY19–20 Budget for this project. However, estimates are expected to be available in the near future. Funding options will then be considered and recommended to Council as appropriate. SHOULD YOU HAVE ANY QUESTIONS REGARDING THIS REPORT, PLEASE CONTACT FINANCE DIRECTOR LAKEITA SUTTON AT 817-985-2110 OR EMAIL LSUTTON@CITYOFKENNEDALE.COM . STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: WORK SESSION ITEM E. SUBJECT: Discussion of items on the regular agenda ORIGINATED BY: George Campbell, City Manager SUMMARY: At this time, the Council may choose to discuss any item on the agenda. RECOMMENDATION: ATTACHMENTS: STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: REPORTS AND ANNOUNCEMENTS ITEM A. SUBJECT: Updates from the City Council ORIGINATED BY: George Campbell, City Manager SUMMARY: Updates and information from each of the Councilmembers, if any. RECOMMENDATION: ATTACHMENTS: STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: REPORTS AND ANNOUNCEMENTS ITEM B. SUBJECT: Updates from the Mayor ORIGINATED BY: George Campbell, City Manager SUMMARY: Updates and information from Mayor Brian Johnson, if any RECOMMENDATION: ATTACHMENTS: STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: REPORTS AND ANNOUNCEMENTS ITEM C. SUBJECT: Updates from the City Manager ORIGINATED BY: George Campbell, City Manager SUMMARY: Updates and information from City Manager George Campbell, if any. RECOMMENDATION: ATTACHMENTS: STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: MONITORING INFORMATION ITEM A. SUBJECT: Monthly Financials for August 2019 ORIGINATED BY: Lakeita Sutton, Director of Finance and Information Technology SUMMARY: Monthly financials and sales tax update as produced by the Finance Department. RECOMMENDATION: ATTACHMENTS: 1.2019_08 Expenditure Summary by Department 2019_08 Expenditure Summary by Department.pdf 2.2019_08 Revenue Summary by Fund 2019_08 Revenue Summary by Fund.pdf 3.8- 2019 SALES TAX COMPARISON 8- 2019 SALES TAX COMPARISON.pdf CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES August 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 324,881$ 363,210$ 365,464$ 39,876$ 298,084$ 89.4%81.6%67,380$ MAYOR/CITY COUNCIL 128,269$ 158,561$ 177,323$ 26,791$ 183,377$ 80.9%103.4%(6,054)$ CITY SECRETARY 116,294$ 130,433$ 164,073$ 15,769$ 145,053$ 89.2%88.4%19,020$ MUNICIPAL COURT 81,794$ 65,492$ 108,148$ 9,340$ 90,264$ 124.9%83.5%17,884$ HUMAN RESOURCES 151,413$ 165,966$ 104,909$ 13,976$ 87,792$ 91.2%83.7%17,117$ FINANCE 314,744$ 341,293$ 358,365$ 28,733$ 314,568$ 92.2%87.8%43,797$ POLICE 1,979,489$ 2,257,421$ 2,759,841$ 304,604$ 2,339,814$ 87.7%84.8%420,027$ FIRE 1,544,108$ 1,744,007$ 1,907,680$ 196,343$ 1,726,195$ 88.5%90.5%181,485$ COMMUNITY DEVELOPMENT 272,067$ 338,010$ 372,090$ 39,425$ 316,063$ 80.5%84.9%56,027$ SENIOR CITIZEN CENTER 44,199$ 49,877$ 54,028$ 6,206$ 43,184$ 88.6%79.9%10,844$ LIBRARY 259,877$ 311,250$ 268,259$ 30,946$ 247,831$ 83.5%92.4%20,428$ NONDEPARTMENTAL 308,301$ 414,496$ 511,749$ 15,708$ 407,016$ 74.4%79.5%104,733$ TOTAL EXPENDITURES 5,525,436$ 6,340,016$ 7,151,929$ 727,717$ 6,199,241$ 87.2%86.7%952,688$ 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 1,063,142$ 1,412,952$ 1,293,973$ 118,506$ 1,161,091$ 75.2%89.7%132,882$ WATER OPERATIONS 1,169,014$ 1,324,784$ 1,576,197$ 189,244$ 1,132,653$ 88.2%71.9%443,544$ DEBT 509,735$ 175,327$ 509,680$ 39,481$ 509,680$ 290.7% W&S CAPITAL 11,395$ 15,519$ 654,796$ 60,525$ 412,479$ 63.0%242,317$ NONDEPARTMENTAL 495,543$ 1,441,811$ 624,875$ 47,496$ 570,179$ 34.4%91.2%54,696$ TOTAL EXPENDITURES 3,248,829$ 4,370,393$ 4,659,521$ 455,252$ 3,786,082$ 74.3%81.3%873,439$ 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 545,064$ 630,950$ 740,910$ 79,063$ 614,884$ 86.4%83.0%126,026$ PARKS MAINTENANCE 64,677$ 80,379$ 125,920$ 9,239$ 81,566$ 80.5%64.8%44,354$ CAPITAL 32$ 60,555$ 79,058$ -$ 79,058$ TOTAL EXPENDITURES 609,773$ 771,884$ 945,888$ 88,302$ 775,508$ 79.0%82.0%170,380$ 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 120,606$ 142,581$ 168,360$ 18,565$ 150,242$ 84.6%89.2%18,118$ DEBT SERVICE 235,088$ 325,006$ 320,432$ 164,842$ 315,463$ 72.3%98.4%4,969$ TOWN SHOPPING CENTER 332,224$ 278,194$ 51,120$ 4,520$ 67,978$ 119.4%133.0%(16,858)$ TOWNCENTER REDEVELOPMENT 177,712$ 237,866$ $ --$ 5,738$ TOTAL EXPENDITURES 865,630$ 983,647$ 539,912$ 187,927$ 539,421$ 88.0%99.9%491$ EXPENDITURE SUMMARY BY DEPARTMENT "YOU'RE HERE. YOUR HOME." CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES August 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 6,215,569$ 6,751,815$ 6,406,759$ 255,296$ 6,481,608$ 92.1%101.2%(74,849)$ OTHER GENERAL FUNDS 529,757$ 1,035,991$ 941,983$ 44,736$ 701,375$ 51.1%74.5%240,608$ GENERAL FUND 6,745,326$ 7,787,806$ 7,348,742$ 300,032$ 7,182,983$ 86.6%97.7%165,759$ -$ GENERAL DEBT SERVICE FUND 1,392,268$ 1,572,159$ 1,518,995$ 27,969$ 1,353,905$ 88.6%89.1%165,090$ -$ WATER/SEWER FUND 4,393,903$ 4,804,352$ 4,010,901$ 467,732$ 3,982,344$ 91.5%99.3%28,557$ STORMWATER UTILITY FUND 241,912$ 256,278$ 254,950$ 22,954$ 246,946$ 94.4%96.9%8,004$ WATER IMPACT FUND 151,593$ 165,170$ 120,450$ 1,980$ 37,012$ 91.8%30.7%83,438$ SEWER IMPACT FUND 83,309$ 93,162$ 32,664$ 2,021$ 19,075$ 89.4%58.4%13,589$ WATER/SEWER FUND 4,870,717$ 5,318,962$ 4,418,965$ 494,687$ 4,285,377$ 91.6%97.0%133,588$ -$ EDC4B FUND 423,002$ 991,633$ 629,752$ 66,974$ 600,675$ 42.7%95.4%29,077$ -$ CAPITAL FUND 38,452$ 186,462$ 172,535$ 10,902$ 146,592$ 20.6%85.0%25,943$ -$ SPECIAL REVENUE FUND 44,862$ 43,873$ 127,497$ 3,675$ 248,978$ 102.3%195.3%(121,481)$ TOTAL REVENUES 13,514,627$ 15,900,895$ 14,216,486$ 904,239$ 13,818,510$ 85.0%97.2%397,976$ 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 5,525,436$ 6,340,017$ 7,028,284$ 727,717$ 6,199,241$ 87.2%88.2%829,043$ OTHER GENERAL FUND 609,773$ 1,063,510$ 1,197,369$ 88,302$ 775,508$ 57.3%64.8%421,861$ GENERAL FUND 6,135,209$ 7,403,527$ 8,225,653$ 816,019$ 6,974,749$ 82.9%84.8%1,250,904$ GENERAL DEBT SERVICE FUND 1,420,004$ 1,420,004$ 1,511,744$ 71,353$ 1,509,649$ 100.0%99.9%2,095$ -$ WATER/SEWER FUND 3,248,829$ 4,370,392$ 4,659,521$ 455,252$ 3,786,082$ 74.3%81.3%873,439$ STORMWATER UTILITY FUND 129,371$ 188,545$ 139,764$ 29,503$ 186,702$ 68.6%133.6%(46,938)$ WATER IMPACT FUND 151,593$ 153,573$ 152,525$ -$ 152,525$ 98.7%100.0%-$ SEWER IMPACT FUND 83,308$ 60,000$ 60,000$ -$ 60,000$ 138.8%100.0%-$ WATER/SEWER FUND 3,613,101$ 4,772,510$ 5,011,810$ 484,755$ 4,185,309$ 75.7%83.5%826,501$ -$ EDC4B FUND 865,630$ 1,013,841$ 539,912$ 187,927$ 539,421$ 85.4%99.9%491$ -$ CAPITAL FUND 83,000$ 186,536$ 735,000$ 107,119$ 193,920$ 44.5%26.4%541,080$ -$ SPECIAL REVENUE FUND 41,226$ 26,919$ 11,767$ 11,839$ 155,321$ 153.1%1320.0%(143,554)$ 0 TOTAL EXPENDITURES 12,158,170$ 14,823,337$ 16,035,886$ 1,679,012$ 13,558,369$ 82.0%84.6%2,477,517$ REVENUE SUMMARY BY FUND EXPENDITURE SUMMARY BY FUND "YOU'RE HERE. YOUR HOME." 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$ 110,825$ (7,945)$ 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$ 1,440,301$ 176,939$ 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 19 STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: REQUIRED APPROVAL ITEMS (CONSENT) ITEM A. SUBJECT: Approval of the minutes from the August 20, 2019 Regular Meeting ORIGINATED BY: Leslie E. Galloway, City Secretary & Communications Coordinator SUMMARY: Please see the attached minutes for your approval. RECOMMENDATION: ATTACHMENTS: 1.2019_08.20_Minutes_City Council Regular Meeting_DRAFT 2019_08.20_Minutes_City Council Regular Meeting_DRAFT.pdf KENNEDALE CITY COUNCIL MINUTES 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 Mayor Johnson called the meeting to order at 5:30 p.m.; and immediately recessed to Executive Session. Mayor Johnson reconvened the Work Session at 6:20 p.m. Motion To Approve. Action Approve authorizing the City Attorney to take action on A&A Pickup and Van. Moved By Altom. Seconded By Pugh. Motion passes unanimously. II. WORK SESSION A. Continued discussion regarding the City Manager's Proposed Fiscal Year 2019-2020 annual budget In response to Councilmember Rhodes questions regarding the Proposed FY19-20 budget, Finance Director Lakeita Sutton offered some additional information and stated that she would research each and submit more in-depth answers to Council following the meeting. B. Discussion of items on the regular agenda In regards to Decision Item XII.H., City Manager George Campbell stated that the health insurance bid had increased from what was included in the Proposed Budget, noting that Director of HR and Administrative Services Danielle Clarke was available to answer questions. In response to a question from Mayor Johnson regarding Consent Item XI.F., Police Chief Tommy Williams stated that the Kennedale Independent School District had not requested additional School Resource Officers (SROs) for other campuses (in addition to the Junior High and High School), but that it was a consideration for future years; and that there had not yet been a ny request for an officer to attend School Board meetings, but that it was being discussed. In response to a question from Mayor Pro Tem Lee regarding Decision Item XII.B., City Manager George Campbell stated that, after issuance, the Council would designate projects to be funded by the proceeds of the Tax Note. There was some discussion about the potential of using impact fees and the requirement for any projects funded by those funds to be included in the Impact Fee Capital Improvement Plan (CIP). Mayor Johnson closed the Work Session at 6:46 p.m. III. REGULAR SESSION Mayor Johnson called the Regular Session to order at 7:01 p.m. IV. 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. DRAFT UNTIL APPROVED BY COUNCIL Page 2 of 7 CITY COUNCIL MINUTES | AUGUST 20, 2019 Galloway, Finance Director Lakeita Sutton, Director of Planning & Economic Developmen t Melissa Dailey, Director of HR and Administrative Services Danielle Clarke, Public Works Director Larry Hoover, Library Director Amanda King, Fire Chief James Brown, Police Chief Tommy Williams, Planner Meghan Riddlespurger, City Attorney Drew Larkin V. INVOCATION Laurie Sanders offered the invocation. VI. UNITED STATES PLEDGE AND TEXAS PLEDGE VII. VISITOR AND CITIZEN FORUM Rockie Gilley, 220 S Dick Price Road, spoke in opposition of the Council having replaced him on the TIRZ Board before his term had expired. Perry Clementi, 103 Creekside Court, stated the need for debris to be picked up that was left after Atmos Energy completed a project near the corner of Sublett Road and Hillside Drive. City Manager George Campbell stated that staff would follow up on this item. Alex Alkhazshvill, 206 Collett Sublett, spoke regarding low water pressure at his home on Collet Sublett and construction traffic. City Manager George Campbell stated that staff would follow up on this item. Jessica Spiegel, 118 Peachtree Court #D, stated her desire to have a requirement for a grease trap waived for her establishment. Mayor Johnson asked that she speak with Director of Planning & Economic Development Melissa Dailey. Joe Palmer, 4017 Sanguinet Court, Fort Worth, spoke on behalf of the Kennedale Alliance of Business Owners (KABO), regarding bond elections and his desire for a congenial atmosphere. In response, Mayor Johnson noted that a bond election was being considered for May 2020. Susan Lewandowski, 212 Collett Sublett, spoke about construction traffic on Collett Sublett. VIII. REPORTS AND ANNOUNCEMENTS A. Updates from the City Council JOSH ALTOM, Place 1, had no announcements at this time. CHRIS PUGH, Place 2, announced that he attended the Tarrant County Mayors’ Council with City Manager George Campbell and Mayor Pro Tem Lee; and he and his wife attended the 1-year anniversary of the Iron Wheel Antiques Mall. MAYOR PRO TEM SANDRA LEE, Place 3, announced that she and Public Works Director Larry Hoover met with County Commissioner Devan Allen regarding creek erosion issues. LINDA RHODES, Place 4, announced that she attended the Parks Board meeting, where the Board recommended that the Council consider hosting a Chute 2 rodeo event. CHAD WANDEL, Place 5, announced that he attended a charity function for ‘When We Love’, which assists the homeless; and had been contacted by several regarding Collett Sublett. B. Updates from the Mayor Mayor Johnson announced that he attended a Tarrant Regional Transportation Coalition (TRTC) meeting regarding legislative issues; and attended a demonstration of the Hyperloop technology. Mayor Johnson announced that Summer Reading Club participants read a total of 98,560 minutes; that 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. Mayor Johnson Proclaimed September 2019 as Senior Center Month; and the week of September DRAFT UNTIL APPROVED BY COUNCIL Page 3 of 7 CITY COUNCIL MINUTES | AUGUST 20, 2019 9–14, 2019 as "The Future is Bright: A Week of Suicide Prevention". C. Updates from the City Manager City Manager George Campbell had no updates at this time. IX. INCIDENTAL ITEMS X. MONITORING INFORMATION A. Monthly Financials for July 2019 There was no discussion at this time. B. KEDC Financial Report for June 2019 There was no discussion at this time. C. Schedule of Investment Activity for quarter ending June 30, 2019 There was no discussion at this time. XI. REQUIRED APPROVAL ITEMS (CONSENT) 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) Motion To Approve. Action Approve the Consent Agenda (including the corrected version of the July 16, 2019 minutes as presented by staff this evening). Moved By Rhodes. Seconded By Altom. Motion passes unanimously. 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 THIS ITEM WAS TAKEN OUT OF ORDER. IT WAS CONSIDERED AFTER DECISION ITEM XII.B., BEFORE XII.C. City Manager George Campbell noted that the Public Hearing was held during the previous regular meeting, but that staff was available to answer any questions. Director of Planning & Economic Development Melissa Dailey offered an overview of the case, including surrounding uses and zoning, noting that staff recommends approval, but that the Planning and Zoning Commission (P&Z) recommended denial of the request with a vote of 4–3. She distributed a copy DRAFT UNTIL APPROVED BY COUNCIL Page 4 of 7 CITY COUNCIL MINUTES | AUGUST 20, 2019 of the current PD (Planned Development) Ordinance, and added that the owner was available to answer questions. There was brief discussion regarding potential uses of the land under the requested “UV” zoning, the size of the lot, and setback requirements. In response to a question from Councilmember Altom, Simon King, owner of Spirals Gymnastics, stated that there were no immediate plans to alter the use of the property. Motion To Approve. Action Approve 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. Moved By Mayor Pro Tem Lee. Seconded By Wandel. Motion passes unanimously. 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 THIS ITEM WAS TAKEN OUT OF ORDER. IT WAS CONSIDERED AFTER DECISION ITEM XII.H., BEFORE XII.A. Andrew Friedman of SAMCO Capital Markets, the City’s Financial Advisor , distributed a summary of the bids received, noting that the winning bid was 1.9% fixed rate. Motion To Approve. Action Approve 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. Moved By Mayor Pro Tem Lee. Seconded By Pugh. In response to a question from Mayor Johnson, City Manager George Campbell stated that the proceeds would be used for land acquisition for various projects to be determined by the Council. Motion passes unanimously. 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. THIS ITEM WAS TAKEN OUT OF ORDER. IT WAS CONSIDERED AFTER DECISION ITEM XII.A. Director of Planning & Economic Development Melissa Dailey stated that this request would rezone the front portion of the Coker Family property for retail pad sites. Dailey gave an overview or surrounding uses and zoning, noting that staff and the Planning and Zoning Commission (P&Z) both recommended approval; and that the developer was available to answer questions. There was a brief discussion of the expansion of Sublett Road by the City of Arlington. Mayor Johnson opened the Public Hearing at 8:05 p.m. BJ Hall, 6312 Calendar Road, Arlington, the agent for the property, spoke in support. Devan Pharis, 2900 Wingate Street, Fort Worth, of Vaquero Ventures — the developer — distributed a site plan and spoke in support. In response, Mayor Johnson requested a copy of the road plans. Jim Maibach, 1703 North Peyco Drive, Arlington, of Peyco Southwest Realty, spoke on behalf of the Coker Family in support. Bennett Cole Carter, 6903 Costa Del Sol Court, Arlington, spoke in support. Don Coker, 5306 Sublett Road, spoke in support. Ron Sturgeon, 1208 Mansfield Highway, spoke in support. Carolyn Williamson, 3170 Joplin Road, spoke in support. DRAFT UNTIL APPROVED BY COUNCIL Page 5 of 7 CITY COUNCIL MINUTES | AUGUST 20, 2019 Mayor Johnson closed the Public Hearing at 8:16 p.m. Motion To Approve. Action Approve 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. Moved By Pugh. Seconded By Wandel. Motion passes unanimously. 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 Director of Planning & Economic Development Melissa Dailey stated that this property, owned by the Economic Development Corporation (EDC) and leased by Adlai Pennington for use as ‘Red’s Roadhouse’, had been zoned Industrial for years. She outlined the surrounding uses and zoning, noting that staff recommends approval, but that the Planning and Zoning Commission (P&Z) recommended denial of the request with a vote of 5–2 (with a recommendation that the current non-conforming use continue to be permitted). Dailey stated that the lessee was present to answer questions, and wished to add a restaurant, which was not allowed in the current zoning. Mayor Johnson opened the Public Hearing at 8:22 p.m. Ron Sturgeon, 1208 Kennedale Parkway, spoke in opposition. Joe Palmer, 4017 Sanguinet Court, Fort Worth, spoke on behalf of KABO in opposition. Jim Eaton, 3901 San Miguel Court, Arlington, spoke on behalf of C&C Tire in opposition. Jose Jaime, 819 Shady Creek, spoke in opposition. Luke Beshura, 221 W Exchange Avenue, Ste. 206 A, Fort Worth, spoke on behalf of Ron Sturgeon Real Estate in opposition and provided a handout of the lease agreement. Carl Hall, 807 Shady Bend Drive, spoke on behalf of Speed Fab Crete in opposition. Adlai Pennington, 1375 Gilman Road, the lessee of the property, spoke on behalf of the Pennington family in support. The following registered in opposition, but did not speak: Ronald A. Hamm of Speed Fab- Crete Corporation, 1150 E Kennedale Parkway; Ron Sturgeon of Ron Sturgeon Real Estate, 1206 Kennedale Parkway, 1220 Kennedale Parkway, and 1208 Kennedale Parkway; Robert Ciszewski of RBL 1212 LLC, 1200 E Kennedale Parkway; Horatio Ramirez, 1111 E Kennedale Parkway; Ronald A. Hamm of JDJRC Warehouse Partners FW LP, 1201 E Kennedale Parkway; Joseph Moniz, 1113 E Kennedale Parkway; Kou L Lin, 1115 E Kennedale Parkway; Kirby Williams, 1109 E Kennedale Parkway; Craig Needham or RBL 1212 LLC, 1200 E Kennedale Parkway; and Hubert Haynie, 1109 E Mansfield Highway. The following registered in favor, but did not speak: Charles Stokely, 1107 E Kennedale Parkway; and Jazz Automotive, 1111 E Kennedale Parkway. Mayor Johnson closed the Public Hearing at 8:45 p.m. Mayor Johnson recessed to Executive Session at 8:48 p.m.; and reconvened at 8:59 p.m. Motion To Approve. Action Approve 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. Moved By Altom. Seconded By Mayor Pro Tem Lee. Motion passes unanimously. 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.” DRAFT UNTIL APPROVED BY COUNCIL Page 6 of 7 CITY COUNCIL MINUTES | AUGUST 20, 2019 Director of Planning & Economic Development Melissa Dailey stated that these changes to the Multi-Family regulations would allow for higher quality development and outlined some of the highlights including increased walkability and connectivity, rear parking, fenestration requirements, minimum setbacks, and street-oriented structures. Dailey recommended that a motion approving Ordinance 673 should include the deletion of the 8,000 square-foot maximum building footprint requirement from the table on page four, as it was not necessary for these types of developments. There was a brief discussion of roadway specifications . Mayor Johnson opened the Public Hearing at 9:13 p.m. There were no requests to speak; and the Public Hearing was closed. Motion To Approve. Action Approve Ordinance 673 (amended to delete the “Max building footprint” of 8,000 sqft. in the table on page 4), 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”. Moved By Wandel. Seconded By Pugh. Motion passes unanimously. 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”, Se ction 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”. Director of Planning & Economic Development Melissa Dailey stated that, in recent years, the City had approved several Planned Developments (PDs) to accommodate the smaller residential lots demanded by the market, and recommended adding R-4, which would allow for smaller lots with reduced setbacks – reducing the need for PDs. Mayor Johnson opened the Public Hearing at 9:18 p.m. There were no requests to speak; and the Public Hearing was closed. Motion To Approve. Action Approve 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 “Tem porary 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”. Moved By Mayor Pro Tem Lee. Seconded By Rhodes. Motion passes unanimously. 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 COUNCILMEMBER JOSH ALTOM RECUSED HIMSELF FROM THIS ITEM AS SOMEONE WITH AN EQUITABLE OR LEGAL OWNERSHIP OF THE PROPERTY CONCERNED; AND WAS NOT PRESENT IN THE COUNCIL CHAMBERS DURING EITHER THE DELIBERATION OR THE VOTE. Director of Planning & Economic Development Melissa Dailey stated that this was a 10-foot utility easement standard to most developments, but that neither the City of Kennedale nor any of the utility companies would have any future need for this particular easement. DRAFT UNTIL APPROVED BY COUNCIL Page 7 of 7 CITY COUNCIL MINUTES | AUGUST 20, 2019 Motion To Approve. Action Approve 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. Moved By Pugh. Seconded By Wandel. Motion passes unanimously. H. Consider approval of bid award for health insurance and authorize the City Manager to sign the agreement THIS ITEM WAS TAKEN OUT OF ORDER. IT WAS CONSIDERED BEFORE DECISION ITEM XII.B. There was no discussion at this time. Motion To Approve. Action Approve the bid award for health insurance and authorize the City Manager to sign the agreement. Moved By Pugh. Seconded By Rhodes. Motion passes unanimously. XIII. EXECUTIVE SESSION AN EXECUTIVE SESSION WAS HELD IMMEDIATELY FOLLOWING THE CALL TO ORDER AT 5:30 P.M., BEFORE THE DISCUSSION OF ANY WORK SESSION ITEMS. THE RESULTING MOTION IS NOTED BEFORE WORK SESSION ITEM II.A. MAYOR JOHNSON ALSO RECESSED TO EXECUTIVE SESSION DURING CONSIDERATION OF DECISION ITEM XII.D. 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 (Linda Road) 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 AN EXECUTIVE SESSION WAS HELD IMMEDIATELY FOLLOWING THE CALL TO ORDER AT 5:30 P.M., BEFORE THE DISCUSSION OF ANY WORK SESSION ITEMS. A MOTION RESULTING FROM EXECUTIVE SESSION IS DOCUMENTED IN THESE MINUTES BEFORE WORK SESSION ITEM II.A. XV. ADJOURNMENT Motion To Adjourn. Action Adjourn. Moved By Wandel. Seconded By Rhodes. Motion passes unanimously. Mayor Johnson adjourned the meeting at 9:22 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: September 17, 2019 AGENDA ITEM: REQUIRED APPROVAL ITEMS (CONSENT) ITEM B. SUBJECT: Approval of the minutes from the 5:00 p.m. September 5, 2019 Special Meeting ORIGINATED BY: Leslie E. Galloway, City Secretary & Communications Coordinator SUMMARY: Please see the attached minutes for your approval. RECOMMENDATION: ATTACHMENTS: 1.2019_09.05_5PM_Minutes_City Council Special Meeting_DRAFT 2019_09.05_5PM_Minutes_City Council Special Meeting_DRAFT.pdf KENNEDALE CITY COUNCIL MINUTES SPECIAL MEETING | SEPTEMBER 5, 2019 AT 5:00 PM CITY HALL COUNCIL CHAMBERS, 405 MUNICIPAL DRIVE I. CALL TO ORDER Mayor Johnson called the meeting to order at 5:07 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, Administrative Assistant Rosie Ericson III. VISITOR AND CITIZEN FORUM There were no requests to speak. IV. WORK SESSION A. Interviews of applicants for appointment to Advisory Boards and Commissions The Council interviewed Keith Courtney, Ann Beck, Jeremy Johnston, Andrew Schaffer, and Austin Degenhart. Jessica Virnoche and Heather Hicks were not able to attend. There was a brief discussion regarding residency requirements of board members, the ability to discuss board member performance in closed session, the need for another meeting to interview additional applicants, and the potential of adding two alternative places to the Parks and Recreation Board. It was the consensus of the Council to schedule a special meeting to continue interviews and consider appointments to various Advisory Boards and Commissions on Friday, September 13, immediately following the second public hearing on the Tax Rate. V. ADJOURNMENT Mayor Johnson adjourned the meeting at 6:52 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: September 17, 2019 AGENDA ITEM: REQUIRED APPROVAL ITEMS (CONSENT) ITEM C. SUBJECT: Approval of the minutes from the 7:00 p.m. September 5, 2019 Special Meeting ORIGINATED BY: Leslie E. Galloway, City Secretary & Communications Coordinator SUMMARY: Please see the attached minutes for your approval. RECOMMENDATION: ATTACHMENTS: 1.2019_09.05_7PM_Minutes_City Council Special Meeting_DRAFT 2019_09.05_7PM_Minutes_City Council Special Meeting_DRAFT.pdf KENNEDALE CITY COUNCIL MINUTES SPECIAL MEETING | SEPTEMBER 5, 2019 AT 7:00 PM CITY HALL COUNCIL CHAMBERS, 405 MUNICIPAL DRIVE I. CALL TO ORDER Mayor Johnson called the meeting to order at 7:00 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, Director of HR and Administrative Services Danielle Clarke, Planner Meghan Riddlespurger, Public Works Director Larry Hoover, Library Director Amanda King, Fire Chief James Brown, Police Chief Tommy Williams III. VISITOR AND CITIZEN FORUM There were no requests to speak. IV. WORK SESSION A. Continued discussion regarding the City Manager's Proposed Fiscal Year 2019–2020 annual budget There was no discussion at this time. V. REGULAR SESSION A. Public hearing on the Fiscal Year 2019–2020 Proposed Budget 1. Staff Presentation Finance Director Lakeita Sutton gave a brief overview of the budget including assumptions and highlights for the major funds, budget enhancements, proposed FY19–20 General Fund expenditures compared to those over the past three fiscal years, the proposed tax rate, and next steps in the process. She noted that there was an error on slide nine of the PowerPoint, in that the Stormwater Fund was projected to end FY19-20 with a balance of $354,890 (rather than the $1.22 million stated). City Manager George Campbell noted that this presentation covered both public hearings and that staff was available to answer any questions from Council. Councilmember Pugh stated his desire for staff to develop a proposed Street Maintenance Fee for consideration by the Council, including a comparison to other Cities’ fees and a timeline for implementation. Campbell stated that staff planned to bring such a proposal to the Council following the start of FY19–20. 2. Public Hearing Mayor Johnson opened the public hearing at 7:10 p.m. There were no requests to speak; Mayor Johnson closed the public hearing. DRAFT UNTIL APPROVED BY COUNCIL Page 2 of 2 CITY COUNCIL MINUTES | 7:00 PM SEPTEMBER 5, 2019 3. Staff Response and Summary There was no discussion at this time. 4. Council Action Motion To Postpone. Action Postpone consideration of the adoption of the FY 2019-2020 Budget to the next Regular Meeting, scheduled for 7:00 p.m., Tuesday, September 17, 2019, in these Chambers. Moved By Pugh. Seconded By Mayor Pro Tem Lee. Motion passes unanimously. B. Public hearing on the Fiscal Year 2019–2020 Tax Rate 1. Staff Presentation There was no additional presentation by staff at this time. 2. Public Hearing Mayor Johnson opened the public hearing at 7:12 p.m. There were no requests to speak; Mayor Johnson closed the public hearing. 3. Staff Response and Summary There was no discussion at this time. 4. Announcement of Date of Vote on Tax Rate Mayor Johnson announced that the vote on the FY 2019–2020 Tax Rate would be held Tuesday, September 17, 2019, at 7:00 p.m., in these Council Chambers (405 Municipal Drive, Kennedale, TX 76060); and that the next Public Hearing on the Tax Rate would be Friday, September 13, at 2:00 p.m., also in these chambers. VI. ADJOURNMENT Motion To Adjourn. Action Adjourn. Moved By Mayor Pro Tem Lee. Seconded By Pugh. Motion passes unanimously. Mayor Johnson adjourned the meeting at 7:13 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: September 17, 2019 AGENDA ITEM: REQUIRED APPROVAL ITEMS (CONSENT) ITEM D. SUBJECT: Consider approval of Ordinance 677, approving a negotiated settlement between the Atmos Cities Steering Committee (“ACSC”) and Atmos Energy Corp., Mid-Tex Division regarding the company’s 2019 rate review mechanism (RRM) filing ORIGINATED BY: George Campbell, City Manager SUMMARY: The attached Ordinance 677 adopts new gas rates for Atmos Mid-Tex, pursuant to a settlement between Atmos Cities Steering Committee (ACSC) and the Company to resolve the pending RRM rate filing. The included rates will go into effect on October 1, 2019. Thus, ACSC recommends approval of this ordinance by September 30. BACKGROUND AND SUMMARY The City of Kennedale, along with 171 other Mid-Texas cities served by Atmos Energy Corporation, Mid-Tex Division (“Atmos Mid-Tex” or “Company”), is a member of the Atmos Cities Steering Committee (“ACSC”). In 2007, ACSC and Atmos Mid-Tex settled a rate application filed by the Company pursuant to Section 104.301 of the Texas Utilities Code for an interim rate adjustment commonly referred to as a GRIP filing (arising out of the Gas Reliability Infrastructure Program legislation). That settlement created a substitute rate review process, referred to as Rate Review Mechanism (“RRM”), as a substitute for future filings under the GRIP statute. Since 2007, there have been several modifications to the original RRM Tariff. The most recent iteration of an RRM Tariff was reflected in an ordinance adopted by ACSC members in 2018. On or about April 1, 2019, the Company filed a rate request pursuant to the RRM Tariff adopted by ACSC members. The Company claimed that its cost-of-service in a test year ending December 31, 2018, entitled it to additional system-wide revenues of $70 million. Application of the standards set forth in ACSC’s RRM Tariff required Atmos to reduce its request to $54 million, $39.3 million of which would be applicable to ACSC members. ACSC’s consultants concluded that the system-wide deficiency under the RRM regime should be $38.7 million instead of the claimed $54 million. The amount of the $38.7 million deficiency applicable to ACSC members would be $28.2 million. After the Company reviewed ACSC’s consultants’ report, ACSC’s Executive Committee and the Company negotiated a settlement whereby the Company would receive an increase of $35.4 million from ACSC Cities. The Executive Committee recommends a settlement at this amount. The Effective Date for new rates is October 1, 2019. ACSC members should take action approving the Ordinance before the end of September. PROOF OF REVENUES Atmos generated proof that the rate tariffs attached to the Ordinance will generate $35.4 million in additional revenues from ACSC Cities (labeled as Attachment 1). ACSC consultants have agreed that Atmos’ Proof of Revenues is accurate. BILL IMPACT The impact of the settlement on average residential rates is an increase of $2.05 on a monthly basis, or 3.7 percent. The increase for average commercial usage will be $6.18 or 2.31 percent. A bill impact comparison is included (labeled as Attachment 2). SUMMARY OF ACSC’S OBJECTION TO THE UTILITIES CODE SECTION 104.301 GRIP PROCESS ACSC strongly opposed the GRIP process because it constitutes piecemeal ratemaking by ignoring declining expenses and increasing revenues while rewarding the Company for increasing capital investment on an annual basis. The GRIP process does not allow any review of the reasonableness of capital investment and does not allow cities to participate in the Railroad Commission’s review of annual GRIP filings or allow recovery of Cities’ rate case expenses. The Railroad Commission undertakes a mere administrative review of GRIP filings (instead of a full hearing) and rate increases go into effect without any material adjustments. In ACSC’s view, the GRIP process unfairly raises customers’ rates without any regulatory oversight. In contrast, the RRM process has allowed for a more comprehensive rate review and annual evaluation of expenses and revenues, as well as capital investment. RRM SAVINGS OVER GRIP While residents outside municipal limits must pay rates governed by GRIP, there are some cities served by Atmos Mid-Tex that chose to remain under GRIP rather than adopt RRM. Additionally, the City of Dallas adopted a variation of RRM which is referred to as DARR. When new rates become effective on October 1, 2019, ACSC residents will have a slight economic monthly advantage over comparable GRIP and comparable DARR rates (labeled Attachment 3). EXPLANATION OF “BE IT ORDAINED” PARAGRAPHS: 1.This section approves all findings in the Ordinance. 2.This section adopts the RRM rate tariffs and finds the adoption of the new rates to be just, reasonable, and in the public interest. 3.This section finds that existing rates are unreasonable. Such finding is a necessary predicate to establishment of new rates. The new tariffs will permit Atmos Mid-Tex to recover an additional $35.4 million from ACSC Cities. 4.This section approves an exhibit that establishes a benchmark for pensions and retiree medical benefits to be used in future rate cases or RRM filings. 5.This section approves an exhibit to be used in future rate cases or RRM filings regarding recovery of regulatory liabilities, such as excess deferred income taxes. 6.This section requires the Company to reimburse the City for expenses associated with review of the RRM filing, settlement discussions, and adoption of the Ordinance approving new rate tariffs. 7.This section repeals any resolution or ordinance that is inconsistent with the Ordinance. 8.This section finds that the meeting was conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. 9.This section is a savings clause, which provides that if any section is later found to be unconstitutional or invalid, that finding shall not affect, impair, or invalidate the remaining provisions of this Ordinance. This section further directs that the remaining provisions of the Ordinance are to be interpreted as if the offending section or clause never existed. 10.This section provides for an effective date upon passage. 11.This section directs that a copy of the signed Ordinance be sent to a representative of the Company and legal counsel for ACSC. CONCLUSION The Legislature’s GRIP process allowed gas utilities to receive annual rate increases associated with capital investments. The RRM process has proven to result in a more efficient and less costly (both from a consumer rate impact perspective and from a ratemaking perspective) than the GRIP process. Given Atmos Mid-Tex’s claim that its historic cost of service should entitle it to recover $70 million in additional system-wide revenues, or $54 million from ACSC Cities, the RRM settlement at $35.4 million for ACSC Cities reflects substantial savings to ACSC Cities in the amount of $18.6 million. ACSC’s consultants produced a report indicating that Atmos had justified increased revenues for ACSC Cities of at least $32.7 million. Settlement at $35.4 million is fair and reasonable. The ACSC Executive Committee consisting of city employees of 18 ACSC members urges all ACSC members to pass the Ordinance before September 30, 2019. New rates become effective October 1, 2019. RECOMMENDATION: Approve ATTACHMENTS: 1.ASCS Cities Exhibit A to RRM Tariff_Ver2.pdf 2.RRM Attachments RRM Attachments (3).pdf 3.2019 Atmos RRM FAQ 2019 Atmos RRM FAQ.pdf 4.O677_ATMOS RRM ACSC O677_ATMOS RRM ACSC.pdf ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM – Rate Review Mechanism APPLICABLE TO: ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT A TO THIS RATE SCHEDULE EFFECTIVE DATE:Bills Rendered on and after 04/01/2018 PAGE: 7 Exhibit A ACSC Cities Abilene Cleburne Frost Lincoln Park Addison Clyde Gainesville Little Elm Albany College Station Garland Lorena Allen Colleyville Garrett Madisonville Alvarado Colorado City Grand Prairie Malakoff Angus Comanche Grapevine Mansfield Anna Commerce Groesbeck Mckinney Argyle Coolidge Gunter Melissa Arlington Coppell Haltom City Mesquite Aubrey Copperas Cove Harker Heights Midlothian Azle Corinth Haskell Murphy Bedford Crandall Haslet Newark Bellmead Crowley Hewitt Nocona Benbrook Dalworthington Gardens Highland Park North Richland Hills Beverly Hills Denison Highland Village Northlake Blossom Denton Honey Grove Oak Leaf Blue Ridge Desoto Hurst Ovilla Bowie Draper Hutto Palestine Boyd Duncanville Iowa Park Pantego Bridgeport Eastland Irving Paris Brownwood Edgecliff Village Justin Parker Buffalo Emory Kaufman Pecan Hill Burkburnett Ennis Keene Petrolia Burleson Euless Keller Plano Caddo Mills Everman Kemp Ponder Canton Fairview Kennedale Pottsboro Carrollton Farmers Branch Kerens Prosper Cedar Hill Farmersville Kerrville Quitman Celeste Fate Killeen Red Oak Celina Flower Mound Krum Reno (Parker County) Centerville Forest Hill Lake Worth Rhome Cisco Forney Lakeside Richardson Clarksville Fort Worth Lancaster Richland Frisco Lewisville Richland Hills ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM – Rate Review Mechanism APPLICABLE TO: ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT A TO THIS RATE SCHEDULE EFFECTIVE DATE:Bills Rendered on and after 04/01/2018 PAGE: 8 River Oaks Temple Roanoke Terrell Robinson The Colony Rockwall Trophy Club Roscoe Tyler Rowlett University Park Royse City Venus Sachse Vernon Saginaw Waco Sansom Park Watauga Seagoville Waxahachie Sherman Westlake Snyder Westover Hills Southlake Westworth Village Springtown White Settlement Stamford Whitesboro Stephenville Wichita Falls Sulphur Springs Woodway Sweetwater Wylie Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Customer Class (a) Residential Customer Charge Consumption Charge Revenue Related Taxes Total Class Revenue Commercial Customer Charge Consumption Charge Revenue Related Taxes Total Class Revenue Industrial &Transportation Customer Charge Consumption Charge Tier 1 Consumption Charge Tier 2 Consumption Charge Tier 3 Revenue Related Taxes Total Class Revenue Total Excluding Other Revenue Revenue Related Tax Factor ATMOS ENERGY CORP.,MID-TEX DIVISION RRM CITIES RATE REVIEW MECHANISM PROOF OF REVENUES -SYSTEMWIDE TEST YEAR ENDING DECEMBER 31,2018 Current Proposed (b) 18.85 0.14846 43.50 0.09165 (c) 19.55 0.17423 46.50 0.09924 Bills Cof/MmBtu (d)(e) 18,572,400 876,575,629 1,492,740 576,758,305 $784.00 $845.50 9,804 $0.3312 $0.3572 10,724,328 $0.2425 $0.2616 12,346,302 $0.0520 $0.0561 22,335,700 6.7078% Current Revenues Proposed Revenues Increase (0 (g)(h) $350,089,740 $363,090,420 130,136,418 152,725,772 32,212,790 34,600,111 $512,438,948 $550,416,303 $37,977,356 64,934,190 $69,412,410 52,859,899 57,237,494 7,901,436 ^495,470 $125,695,525 $135,145,374 $9,449,849 7,686,336 $8,289,282 3,551,897 3,830,730 2,993,978 3,229,793 1,161,456 1,253,033 1,032,582 1,113,691 $16,426,250 $17,716,529 $1,290,278 $654,560,722 $703,278,206 $48,717,483 ATMOS ENERGY CORP..MID-TEX DIVISION AVERAGE BILL COMPARISON -BASE RATES TEST YEAR ENDING DECEMBER 31.2018 Line 1 Rate R (5)47.5 Ccf CURRENT 2 Customer charge $18.85 3 Consumption charge 47.5 CCF X $0.14846 7.05 4 Rider OCR Part A 47.5 CCF X $0.27375 13.00 5 Rider GCR Part B 47.5 CCF X $0.27485 13.06 6 Subtotal $51.96 7 Rider FF &Rider TAX $51.96 X 0.06708 3.49 8 n Total $55.45 9 10 Customer charge 11 Consumption charge 47.5 CCF X $0.17423 = 12 Rider GCR Part A 47.5 CCF X $0.27375 = 13 Rider GCR Part B 47.5 CCF X $0.27485 = 14 Subtotal 15 Rider FF &Rider TAX $53.89 X 0.06708 = 16 Total 17 18 19 Rate C (S)367.6 Ccf CURRENT 20 Customer charge $43.50 21 Consumption charge 367.6 CCF X $0.09165 33.69 22 Rider GCR Part A 367.6 CCF X $0.27375 100.62 23 Rider GCR Part B 367.6 CCF X $0.19927 73.25 24 Subtotal $251.06 25 Rider FF &Rider TAX $251.06 X 0.06708 16.84 26 Total $267.90 27 28 Customer charge 29 Consumption charge 367.6 CCF X $0.09924 - 30 Rider GCR Part A 367.6 CCF X $0.27375 = 31 Rider GCR Part B 367.6 CCF X $0.19927 = 32 Subtotal 33 Rider FF&Rider TAX $256.85 X 0.06708 = 34 Total 35 PROPOSED CHANGE $19.55 8.28 13.00 13.06 $53.89 3.61 $57.50 $2.05 3.70% PROPOSED CHANGE $46.50 36.48 100.62 73.25 $256.85 17.23 $274.08 6.18 2.31% WP_J-3.1 Page 1 of 2 ATMOS ENERGY CORP.,MID-TEX DIVISION AVERAGE BILL COMPARISON -BASE RATES TEST YEAR ENDING DECEMBER 31,2018 Line 36 Rate 1 (a>4066 MMBTU CURRENT PROPOSED 37 Customer charge $784.00 38 Consumption charge 1,500 MMBTU X $0.3312 =496.80 39 Consumption charge 2,566 MMBTU X $0.2425 =622.14 40 Consumption charge 0 MMBTU X $0.0520 :- 41 Rider OCR Part A 4,066 MMBTU X $2.6733 =10,868.51 42 Rider OCR Part B 4,066 MMBTU X $0.4491 =1,825.85 43 Subtotal $14,597.30 44 Rider FF &Rider TAX $14,597.30 X 0.06708 979.16 45 Total $15,576.46 46 47 Customer charge $845.50 48 Consumption charge 1,500 MMBTU X $0.3572 =535.80 49 Consumption charge 2,566 MMBTU X $0.2616 =671.14 50 Consumption charge 0 MMBTU X $0.0561 =- 51 Rider GCR Part A 4,066 MMBTU X $2.6733 =10,868.51 52 Rider GCR Part B 4,066 MMBTU X $0.4491 =1,825.85 53 Subtotal $14,746.80 54 Rider FF &Rider TAX $14,746.80 X 0.06708 989.19 55 Total $15,735.99 56 57 Rate T (d)4066 MMBTU CURRENT PROPOSED 58 Customer charge $784.00 59 Consumption charge 1,500 MMBTU X $0.3312 =496.80 60 Consumption charge 2,566 MMBTU X $0.2425 :622.14 61 Consumption charge 0 MMBTU X $0.0520 =- 62 Rider GCR Part B 4,066 MMBTU X $0.4491 =1,825.85 63 Subtotal $3,728.79 64 Rider FF &Rider TAX $3,728.79 X 0.06708 250.12 65 Total $3,978.91 66 67 Customer charge $845.50 68 Consumption charge 1,500 MMBTU X $0.3572 =535.80 69 Consumption charge 2,566 MMBTU X $0.2616 =671.14 70 Consumption charge 0 MMBTU X $0.0561 :- 71 Rider GCR Part B 4,066 MMBTU X $0.4491 =1,825.85 72 Subtotal $3,878.29 73 Rider FF &Rider TAX $3,878.29 X 0.06708 260.15 74 Total $4,138.44 75 CHANGE ;159.53 1.02% CHANGE 159.53 4.01% WP_J-3.1 Page 2 of 2 Group ACSC/RRM Environs GRIP ATM GRIP DARR ACSC Margin Advantage Over GRIP and DARR Residential Customers Effective October 1.2019 Average Monthly Customer Consumption Charge 47.5 CCF $19.55 47.5 CCF $19.84 47.5 CCF $21.69 47.5 CCF $21.25 Consumption Charge $0.17423 $0.18653 $0.14846 $0.14924 Average Bill $27.83 $28.70 $28.74 $28.34 Average Monthly Savings X $0.87 $0.92 $0.51 August 20, 2019 FREQUENTLY ASKED QUESTIONS REGARDING ACSC HISTORY AND THE RRM RATEMAKING PROCESS What is the role of Cities in ratemaking? Cities have historically exercised original jurisdiction over the level of gas rates charged within their boundaries. Generally, gas distribution utilitie s have filed rate cases at the City level and have only gone to the Railroad Commission of Texas (“RCT” or “Commission”) with an appeal of City action or when they could not reach a settlement with Cities. If a utility and Cities reach an agreement, the utility may then file a case at the RC T to implement the same rates approved by Cities in areas outside municipal boundaries. Once a case is at the RCT, the Commission Staff generally expects Cities to intervene and do most of the discovery, cross-examination, briefing, and sponsor opposing witnesses. There is no consumer advocate at the RCT. If Cities do not participate in hearings at the RCT, the request of a regulated utility is likely to be rubber-stamped. How and why was the Atmos Cities Steering Committee created? The Atmos pipeline and distribution systems were built, owned , and operated by Lone Star Gas (“LSG”), which maintained over 200 rate jurisdictions until it sold its assets to Texas Utilities (“TXU”) in the late 1990’s. That meant that many Cities had their own unique distribution rates and that individual Cities had to process rate cases at the local level. LSG-Pipeline served all 200-plus distribution systems, and pipeline rates were set by the RCT. From the early 1980’s through the late 1990’s, LSG filed no pipeline or system -wide rate cases at the RCT. When LSG was finally brought before the RCT to show cause why its rates should not be reduced, approximately 80 Cities intervened and created an ad hoc group known as the Steering Committee of Cities Served by Lone Star. In Gas Utilities Division (“GUD”) docket number 8664, three separate groups of Cities and a number of independent Cities (jointly the “Aligned Cities”) participated and coordinated their efforts to oppose the rate increase. TXU purchased the LSG assets in the late 1990’s and immediately commenced consolidating 200-plus ratemaking jurisdictions into regions. As regional cases were filed, Cities within each region created an ad hoc committee to form a common strategy and negotiating position . Once TXU had aggregated the Cities into five or six jurisdictions, each with a different rate, T exas Utilities Gas Company filed a system-wide case to bring all of the old LSG territory under o ne common rate. The different City regional committees then united and formed the Allied Coalition of Cities (“ACC”). While the gas utility assets were owned and controlled by TXU, the coalition transformed itself from an ad hoc group that came together only in response to rate filings by the utility into a permanent standing coalition. In Gas Utilities Docket (“GUD”) No. 9400 in 2004, TXU’s request for a $61.6 million system-wide increase was aggressively opposed by ACC. Cities achieved disallowances of $42.9 million of a regulatory asset and $87.8 million of capitalized gas utility plant. The company received only a $2.01 million increase. Unhappy with that result, TXU decided that owning a gas system was neither as fun nor as profitable as the deregulated electric system, and they sold the system to Atmos Energy Corporation (“Atmos” or “Company”). ACC was then transformed into the Steering 2557/28/7898547 2 Committee of Cities Served by Atmos and then renamed Atmos Cities Steering Committee to obtain an easy to remember acronym, “ACSC.” What is the Atmos Cities Steering Committee? ACSC is a coalition of 170 Cities that unite in common purpose to address gas utility rate and franchise issues related to Atmos Energy Corporation. Its objectives are to: (1) ensure tha t gas utility rates charged to Cities and their residents are fair and reasonable; (2) maintain reason able franchise fee revenues for Cities; (3) protect Cities’ original jurisdiction over rates and services; (4) be a voice for consumers where no state agency assumes such a role; and (5) promote sound ratemaking policies in the public interest. Cities join the permanent standing committee by passing a resolution and agreeing to support the work of ACSC through modest occasional per capita assessments that support ongoing administrative and legislative a dvocacy and all expenses where Cities are not entitled to reimbursement. Each member City designates a representative to ACSC. Member representatives may volunteer to serve on the ACSC Executive Committee. The Executive Committee sets policy, hires legal counsel and consultants, directs litigation, establishes a legislative agenda, sets assessments on members as needed, and meets quarterly with Atmos executives. The Settlement Committee is directly involved in negotiating resolution of contested matters with Atmos executives. The list of current members is attached. What is the benefit of membership in ACSC? One hundred seventy Cities speaking as one voice is much more effective in advocacy before the Railroad Commission and legislature than any one City or multiple small groups of Cities. The legislature has given gas utilities a right to an annual increase in rates. Resources (both financial and human) of individual Cities are conserved by membership in ACSC. Additionally, membership enhances institutional memory of ratemaking issues, public policy debate s, and right-of- way and franchise fee battles. What has ACSC accomplished? Going into the 82nd Legislative Session, in December 2010, ACSC released a 48-page report, “Natural Gas Consumers and the Texas Railroad Commission.” More than 200 television, newspaper and radio news sites posted information on, and a link to, the report that may be found on ACSC’s website, TexasGasConsumers.org. ACSC has also been instrumental in ongoing Sunset Commission reviews of the RCT. The agency has undergone three Sunset reviews since 2010, and in each case ACSC has maintained a watchful eye on the process to ensure that provisions that could harm the interest of gas utility ratepayers are excluded from the legislation. ACSC representatives also visited on several occasio ns with the Sunset Commission Staff, and several ACSC recommendations for reform were included in Sunset Commission Reports on the agency. Several ACSC member representatives testified before the legislature regarding the Sunset review of the Railroad Com mission. 2557/28/7898547 3 During the 2011 legislative session, lobbying efforts by ACSC were critical in killing two gas utility bills that would have undermined traditional regulation, deprived Cities of certain rights, and led to even greater rate increases. ACSC has also resolved a major issue involving franchise fees. In 2010, Atmos unilaterally, without notice, ceased inclusion of franchise fees in the calculations of gross receipts regardless of whether specific franchises included such payments. Several Cities were willing to pursue the matter through litigation. However, counsel for ACSC was able to negotiate a resolution that allowed each member City to determine whether it desired an increase in franchise fee payments based on inclusion of franchise fees in the calculation of gross receipts. If a City opted for inclusion of fee-on- fee revenues, it had the further option of retroactive payments back to the point in time that Atmos decided to curtail fee-on-fee payments. Each member had these options regardles s of the wording of the then-valid franchise agreement. This resolution spared significant litigation costs and anxiety and was only possible because of the clout of the ACSC membership. One of the most significant accomplishments of ACSC occurred in 2007 via a settlement of the then-pending, system-wide rate case. Approximately 50 ACSC City representatives showed up in Arlington for a meeting with Atmos executives who were shocked at the vocal opposition to Atmos’ practices, the unfairness of annual Gas Reliability Infrastructure Program (“GRIP”) rate filings that precluded City and citizen review, and the Company’s lack of coordination with Cities. That meeting led to the creation of the Rate Review Mechanism (“RRM”) process and improved ongoing communications between the Company and ACSC. In 2010, these improved communications between ACSC and the Company led to a workable solution to the need to replace steel service lines in a manner that accommodated Cities’ needs to control their rights-of-way, while moderating the rate impact and focusing first on the riskiest service lines based on leak repair histories. This compromise pr ecluded a more onerous (from a City and consumer perspective) program threatened by the RCT. What is an RRM case? The concept of an RRM proceeding emerged as a three-year experimental substitute for GRIP cases as part of the settlement of Atmos Mid -Tex’s 2007 system-wide rate case. In 2003, the Texas Legislature added Section 104.301, Interim Adjustment for Changes in Investment, to the Gas Utility Regulatory Act. While not identified as such in the law, § 104.301 was referred to as the Gas Reliability Infrastructure Program or GRIP. The GRIP adjustments allowed gas companies to recover changes to invested capital without a review of whether increased revenues or declining expenses offset the invested capital costs. Both Atmos Pipeline and Atmos Mid -Tex filed GRIP cases as soon as the RCT adopted rules to implement the interim adjustments. As explained below, it quickly became apparent that the GRIP adjustments were terrible public policy. As an alternative to GRIP, ACSC entered into a negotiated agreement with Atmos in 2007 to establish the RRM process. Unlike GRIP, the RRM provided for an annual review of all portions of Mid-Tex’s cost of service. It fixed an authorized rate of return on equity for the three -year period at 9.6% (which was less than what the RCT would have authorized) and set caps on the extent to which expenses or investments could increase from one year to the next. More importantly, it allowed Cities to make a comprehensive evaluation of all aspects of the utility’s business—investment, operation and maintenance expenses, and revenues—unlike GRIP that only allows consideration of changes to invested capital. 2557/28/7898547 4 Why is RRM superior to GRIP? GRIP cases guarantee a one-sided, rubber-stamp approval of the utility’s rate request. ACSC attempted to participate in the first two GRIP proceedings filed by both Atmos Pipeline and Atmos Mid-Tex at the RCT. Not only were Cities’ motions to intervene denied, but also, ACSC’s comments were ignored. At the City level, ACSC consultants determined that Atmos was not only including items such as artwork, chairs, computers, and meals in interim rate adjustments that were allegedly intended to promote pipeline safety, but the Company was also over-earning its previously authorized rate of return. ACSC attacked the Commission’s rule in court because it denied City participation, denied a hearing on a contested matter, and denied Cities’ recovery of any expenses associated with resisting GRIP rate increases. The courts were not helpful to Cities. In 2011, the Texas Supreme Court upheld the Commission’s rule implementing the GRIP statute. Cities have contended that the GRIP process is terrible public policy since it authorizes what would, from the perspective of a history of public interest regulation, be regarded as unlawful— piecemeal ratemaking. GRIP allows rates to increase if the utility’s invested capital net of depreciation increases year-over-year. An increase in rates is mandated under GRIP if investment increases, even if increasing revenues and declining expenses more than offset the costs associated with increased investment. The RRM process negotiated by ACSC solves the piecemeal ratemaking problem by providing for a comprehensive review of Atmos’ expenses and revenues. Furthermore, the RRM process benefitted ACSC by: (1) allowing Cities’ participation that would be denied under GRIP; (2) allowing Cities to recover, at utility shareholders’ expense, all their ratemaking costs; and (3) avoiding both litigation and RCT jurisdiction. The legislature has functionally authorized annual increases in gas utility rates through the GRIP process. Since consumers are otherwise stuck with annual rate increases, it is better to have Cities participate in the comprehensive RRM process than be unable to participate in a piecemeal process. What has been the history of the RRM efforts? A total of eleven RRM filings have been made by the Company. These filings all resulted in settlements at the City level, except for the 2014 filing, which the ACSC Cities denied. The Company appealed the denial to the RCT, and ACSC was ultimately able to settle that proceeding before it reached the stage of a final RCT order. The results of these filings from a system-wide perspective are as follows (continued on next page): RRM Filing Year Atmos Request ACSC Settlement #1 2008 $33.5 million $20 million #2 2009 $20.2 million $2.6 million #3 2010 $70.2 million $27 million #4 2011 $15.7 million $6.6 million #5 2013 $22.7 million $16.6 million #6 #7 #8 #9 2014 2015 2016 2017 $45.7 million $28.8 million $35.4 million 57.4 million $43.8 million $22.8 million $29.6 million $48 million 2557/28/7898547 5 RRM Filing #10 #11 Year 2018 2019 Atmos Request $27.4 million $54 million ACSC Settlement $24.9 million $35.4 million Unable to reach agreement to perpetuate t he original RRM terms, Atmos filed a traditional rate case with Cities in 2012 (GUD No. 10170), which was then appealed to the Railroad Commission. A final order in that case was entered in December 2012. The ratemaking decisions of the Commission then became the basis of renewal negotiations on the RRM process. The renewed RRM included some modifications that enhanced the original RRM process. Among these modifications were: A limit on the percentage of increase to be included in the monthly customer charge; A prohibition against capital post-test year adjustments; A time limit for known and measurable adjustments to operating and maintenance expenses; A guaranteed reduction in the Company’s requested increase of at least $3 million annually; and A limitation on the amount of equity in the Company’s capital structure. Changes to the RRM process As noted in a communication to ACSC in May 2017, the rate of return on equity (“ROE”) embedded in the RRM process between 2013 and 2017 of 10.5% is excessive by at least 100 basis points, based upon a reasonable rate of return that reflects the market conditions in which the Company, and its parent Atmos Energy, operates. Because this ROE cannot be altered except by (1) changing the terms of the RRM tariff, or (2) a Commi ssion order coming out of a new rate case, ACSC informed the Company that the 2017 RRM will be the last filing by the Company under the current tariff. Atmos agreed to renegotiate the terms and conditions of a revised RRM tariff in 2017 . In February and March 2018, ACSC adopted a new RRM tariff ordinance that implemented new procedures and criteria for the RRM process. The revised RRM tariff reduced the allowed ROE from 10.5% to 9.8% and captured the reduced federal income tax rate of 21%. The new tariff expanded Cities’ review period from three months to five months. It also required Atmos Mid -Tex to accept ACSC’s position regarding incentive compensation related to Atmos’ Shared Services Unit. The 2019 RRM filing is the second under the new tariff. When must Cities approve new rates? ACSC’s Tariff Ordinance adopted around March 2018 declares that new rates become effective October 1st of each year. While it is preferable that ordinances or resolutions adopting new tariffs are passed before the end of September, there is no adverse consequence if final action cannot take place until sometime in October. The only thing that will frustrate new rates becoming e ffective on October 1, 2019 is City action that specifically denies the increase. 2557/28/7898547 6 What would happen if a City Council denies the RRM rate increase? Atmos would either appeal the denial to the Railroad Commission or initiate imposition of GRIP rates or both. Rates for residents of that City would be higher than rates of other ACSC member residents. Rate case expenses (both the City and Company) associated with litigation at the Railroad Commission would likely be surcharged back to the City that denied the increase. If you have other questions please contact me at (512) 322-5875 and/or gmg@lglawfirm.com, or Georgia Crump at (512) 322-5832 and/or gcrump@lglawfirm.com. Geoffrey Gay ACSC, General Counsel ORDINANCE NO. 677 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF KENNEDALE, TEXAS, APPROVING A NEGOTIATED SETTLEMENT BETWEEN THE ATMOS CITIES STEERING COMMITTEE (“ACSC”) AND ATMOS ENERGY CORP., MID-TEX DIVISION REGARDING THE COMPANY’S 2019 RATE REVIEW MECHANISM FILING; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED SETTLEMENT; FINDING THE RATES TO BE SET BY THE ATTACHED SETTLEMENT TARIFFS TO BE JUST AND REASONABLE AND IN THE PUBLIC INTEREST; APPROVING AN ATTACHED EXHIBIT ESTABLISHING A BENCHMARK FOR PENSIONS AND RETIREE MEDICAL BENEFITS; APPROVING AN ATTACHED EXHIBIT REGARDING AMORTIZATION OF REGULATORY LIABILITY; REQUIRING THE COMPANY TO REIMBURSE ACSC’S REASONABLE RATEMAKING EXPENSES; DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; ADOPTING A SAVINGS CLAUSE; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND THE ACSC’S LEGAL COUNSEL. WHEREAS, the City of Kennedale, Texas (“City”) is a gas utility customer of Atmos Energy Corp., Mid-Tex Division (“Atmos Mid-Tex” or “Company”), and a regulatory authority with an interest in the rates and charges of Atmos Mid-Tex; and WHEREAS, the City is a member of the Atmos Cities Steering Committee (“ACSC”), a coalition of similarly-situated cities served by Atmos Mid-Tex (“ACSC Cities”) that have joined together to facilitate the review of, and response to, natural gas issues affecting rates charged in the Atmos Mid-Tex service area; and WHEREAS, ACSC and the Company worked collaboratively to develop a new Rate Review Mechanism (“RRM”) tariff that allows for an expedited rate review process by ACSC Cities as a substitute to the Gas Reliability Infrastructure Program (“GRIP”) process instituted by the Legislature, and that will establish rates for the ACSC Cities based on the system-wide cost of serving the Atmos Mid-Tex Division; and WHEREAS, the current RRM tariff was adopted by the City in a rate ordinance in 2018; and WHEREAS, on about April 1, 2019, Atmos Mid-Tex filed its 2019 RRM rate request with ACSC Cities based on a test year ending December 31, 2018; and INCLUDING EXHIBITS A, B, AND C, PAGE 1 OF 18 O677 CITY OF KENNEDALE, TX 2019 WHEREAS, ACSC coordinated its review of the Atmos Mid-Tex 2019 RRM filing through its Executive Committee, assisted by ACSC’s attorneys and consultants, to resolve issues identified in the Company’s RRM filing; and WHEREAS, the Executive Committee, as well as ACSC’s counsel and consultants, recommend that ACSC Cities approve an increase in base rates for Atmos Mid-Tex of $35.4 million applicable to ACSC Cities; and WHEREAS, the attached tariffs (Exhibit A) implementing new rates are consistent with the recommendation of the ACSC Executive Committee, are agreed to by the Company, and are just, reasonable, and in the public interest; and WHEREAS, the settlement agreement sets a new benchmark for pensions and retiree medical benefits (Exhibit B); and WHEREAS, the settlement agreement establishes an amortization schedule for regulatory liability (Exhibit C); and WHEREAS, the RRM Tariff contemplates reimbursement of ACSC’s reasonable expenses associated with RRM applications; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE, TEXAS, THAT: SECTION 1. That the findings set forth in this Ordinance are hereby in all things approved. SECTION 2. That, without prejudice to future litigation of any issue identified by ACSC, the City Council finds that the settled amount of an increase in revenues of $35.4 million for ACSC Cities represents a comprehensive settlement of gas utility rate issues affecting the rates, operations, and services offered by Atmos Mid-Tex within the municipal limits arising from Atmos Mid-Tex’s 2019 RRM filing, is in the public interest, and is consistent with the City’s authority under Section 103.001 of the Texas Utilities Code. SECTION 3. That the existing rates for natural gas service provided by Atmos Mid-Tex are unreasonable. The new tariffs attached hereto and incorporated herein as Exhibit A, are just and reasonable, and are designed to allow Atmos Mid-Tex to recover annually an additional $35.4 million from customers in ACSC Cities, over the amount allowed under currently approved rates. Such tariffs are hereby adopted. INCLUDING EXHIBITS A, B, AND C, PAGE 2 OF 18 O677 CITY OF KENNEDALE, TX 2019 SECTION 4. That the ratemaking treatment for pensions and retiree medical benefits in Atmos Mid- Tex’s next RRM filing shall be as set forth on Exhibit B, attached hereto and incorporated herein. SECTION 5. That amortization of regulatory liability shall be consistent with the schedule found in attached Exhibit C attached hereto and incorporated herein. SECTION 6. That Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of the ACSC in processing the Company’s 2019 RRM filing. SECTION 7. That to the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Ordinance, it is hereby repealed. SECTION 8. That the meeting at which this Ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. SECTION 9. That if any one or more sections or clauses of this Ordinance is adjudged to be unconstitutional or invalid, such judgment shall not affect, impair, or invalidate the remaining provisions of this Ordinance, and the remaining provisions of the Ordinance shall be interpreted as if the offending section or clause never existed. SECTION 10. That consistent with the City Ordinance that established the RRM process, this Ordinance shall become effective from and after its passage with rates authorized by attached tariffs to be effective for bills rendered on or after October 1, 2019. SECTION 11. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of Chris Felan, Vice President of Rates and Regulatory Affairs Mid-Tex Division, Atmos Energy Corporation, 5420 LJB Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay, General INCLUDING EXHIBITS A, B, AND C, PAGE 3 OF 18 O677 CITY OF KENNEDALE, TX 2019 Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE, TEXAS, THIS THE 17TH DAY OF SEPTEMBER, 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: ______________________________ CITY ATTORNEY DREW LARKIN INCLUDING EXHIBITS A, B, AND C, PAGE 4 OF 18 O677 CITY OF KENNEDALE, TX 2019 Exhibit A Rate Tariffs Effective October 1,2019 INCLUDING EXHIBITS A, B, AND C, PAGE 5 OF 18 O677 CITY OF KENNEDALE, TX 2019 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:R -RESIDENTIAL SALES APPLICABLE TO:ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE:Bills Rendered on or after 10/01/2019 PAGE: Application Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured through one meter. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery,additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Bill $19.55 per month Rider CEE Surcharge $ 0.05 per month' Total Customer Charge $19.60 per month Commodity Charge - AllCcf $0.17423 per Ccf Gas Cost Recovery:Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a)and Part (b),respectively,of Rider GCR. Weather Normalization Adjustment: Plus or Minus an amount for weather normalization calculated in accordance with Rider WNA. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment:Plus an amount for tax calculated in accordance with Rider TAX. Surcharges:Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. 'Reference Rider CEE -Conservation and Energy Efficiency as approved in GUD 10170.Surcharge billingeffective July 1, 2019. INCLUDING EXHIBITS A, B, AND C, PAGE 6 OF 18 O677 CITY OF KENNEDALE, TX 2019 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:C -COMMERCIAL SALES APPLICABLE TO:ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE:Bills Rendered on or after 10/01/2019 PAGE: Application Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured through one meter and to Industrial Customers with an average annual usage of less than 30,000 Ccf. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Bill $46.50 per month Rider CEE Surcharge $0.02 permonth^ Total Customer Charge $46.52 per month Commodity Charge -All Ccf $0.09924 per Ccf Gas Cost Recovery;Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a)and Part (b),respectively,of Rider GCR. Weather Normalization Adjustment:Plus or Minus an amount for weather normalization calculated in accordance with Rider WNA. Franchise Fee Adjustment:Plus an amount for franchise fees calculated in accordance with Rider FF,Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment:Plus an amount for tax calculated in accordance with Rider TAX. Surcharges:Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. 'Reference Rider CEE -Conservation and Energy Efficiency as approved in GUD 10170.Surcliarge billingeffective July 1, 2019. INCLUDING EXHIBITS A, B, AND C, PAGE 7 OF 18 O677 CITY OF KENNEDALE, TX 2019 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:1-INDUSTRIAL SALES APPLICABLE TO:ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE:Bills Rendered on or after 10/01/2019 PAGE: Application Applicable to Industrial Custonners with a maximum daily usage (MDU)of less than 3,500 MMBtu per day for all natural gas provided at one Point of Delivery and measured through one meter.Service for Industrial Customers with an MDU equal to or greater than 3,500 MMBtu per day will be provided at Company's sole option and will require special contract arrangements between Company and Customer. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and MMBtu charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Meter $845.50 per month First 0 MMBtu to 1,500 MMBtu $0.3572 per MMBtu Next 3,500 MMBtu $0.2616 per MMBtu All MMBtu over 5,000 MMBtu $0.0561 per MMBtu Gas Cost Recovery:Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a)and Part (b),respectively,of Rider GCR. Franchise Fee Adjustment:Plus an amount for franchise fees calculated in accordance with Rider FF.Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment:Plus an amount for tax calculated in accordance with Rider TAX. Surcharges:Plus an amount for surcharges calculated in accordance with the applicable rider(s). Curtailment Overpull Fee Upon notification by Company of an event of curtailment or interruption of Customer's deliveries. Customer will, for each MMBtu delivered in excess of the stated level of curtailment or internjption,pay Company 200%of the midpoint price for the Katy point listed in Platts Gas Daily published for the applicable Gas Day in the table entitled "Daily Price Survey." Replacement Index In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table entitled "Daily Price Survey"is no longer published,Company will calculate the applicable imbalance fees utilizing a daily price index recognized as authoritative by the natural gas industry and most closely approximating the applicable index. INCLUDING EXHIBITS A, B, AND C, PAGE 8 OF 18 O677 CITY OF KENNEDALE, TX 2019 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:1-INDUSTRIAL SALES APPLICABLE TO:ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE:Bills Rendered on or after 10/01/2019 PAGE: Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tarifffor Gas Service. Special Conditions In order to receive service under Rate I,Customer must have the type of meter required by Company. Customer must pay Company all costs associated with the acquisition and installation of the meter. INCLUDING EXHIBITS A, B, AND C, PAGE 9 OF 18 O677 CITY OF KENNEDALE, TX 2019 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:T-TRANSPORTATION APPLICABLE TO:ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE:Bills Rendered on or after 10/01/2019 PAGE: Application Applicable,in the event that Company has entered into a Transportation Agreement,to a customer directly connected to the Atmos Energy Corp., Mid-Tex Division Distribution System (Customer)for the transportation of all natural gas supplied by Customer or Customer's agent at one Point of Delivery for use in Customer's facility. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery,additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts and quantities due under the riders listed below: Charge Amount Customer Charge per Meter $845.50 per month First 0 MMBtu to 1,500 MMBtu $0.3572 per MMBtu Next 3,500 MMBtu $0.2616 per MMBtu All MMBtu over 5,000 MMBtu $0.0561 per MMBtu Upstream Transportation Cost Recovery:Plus an amount for upstream transportation costs in accordance with Part (b) of Rider GCR. Retention Adjustment:Plus a quantity of gas as calculated in accordance with Rider RA. Franchise Fee Adjustment:Plus an amount for franchise fees calculated in accordance with Rider FF.Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment:Plus an amount for tax calculated in accordance with Rider TAX. Surcharges:Plus an amount for surcharges calculated in accordance with the applicable rider(s). Imbalance Fees All fees charged to Customer under this Rate Schedule will be charged based on the quantities determined under the applicable Transportation Agreement and quantities will not be aggregated for any Customer with multiple Transportation Agreements for the purposes of such fees. Monthly Imbalance Fees Customer shall pay Company the greater of (i)$0.10 per MMBtu,or (ii)150% of the difference per MMBtu between the highest and lowest "midpoint" price for the Katy point listed in Platts Gas Daily in the table entitled "Daily Price Survey" during such month, for the MMBtu of Customer's monthly Cumulative Imbalance,as defined in the applicable Transportation Agreement,at the end of each month that exceeds 10%of Customer's receipt quantities for the month. INCLUDING EXHIBITS A, B, AND C, PAGE 10 OF 18 O677 CITY OF KENNEDALE, TX 2019 MID-TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE:T -TRANSPORTATION APPLICABLE TO:ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE:Bills Rendered on or after 10/01/2019 PAGE: Curtailment Overpull Fee Upon notification by Company of an event of curtailment or interruption of Customer's deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or Interruption,pay Company 200%of the midpoint price for the Katy point listed in Platts Gas Daily published for the applicable Gas Day in the table entitled "Daily Price Survey." Replacement Index In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Dally in the table entitled "Daily Price Survey"is no longer published,Company will calculate the applicable imbalance fees utilizing a daily price index recognized as authoritative by the natural gas industry and most closely approximating the applicable Index. Agreement A transportation agreement is required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions In order to receive service under Rate T,customer must have the type of meter required by Company. Customer must pay Company all costs associated with the acquisition and installation of the meter. INCLUDING EXHIBITS A, B, AND C, PAGE 11 OF 18 O677 CITY OF KENNEDALE, TX 2019 MID-TEX DIVISION ATMOS ENERGY CORPORATION RIDER:WNA-WEATHER NORMALIZATION ADJUSTMENT APPLICABLE TO:ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE:Bills Rendered on or after 11/01/2019 PAGE: Provisions for Adjustment The Commodity Charge per Ccf (100 cubic feet) for gas service set forth in any Rate Schedules utilized by the cities of the Mid-Tex Division service area for determining normalized winter period revenues shall be adjusted by an amount hereinafter described,which amount is referred to as the "Weather Normalization Adjustment."The Weather Normalization Adjustment shall apply to all temperature sensitive residential and commercial bills based on meters read during the revenue months of November through April.The five regional weather stations are Abilene,Austin,Dallas,Waco,and Wichita Falls. Computation of Weather Normalization Adjustment The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent per Ccf by the following fomiula: WNAF Where WNAF1 Ri = HSFj = NDD = ADD Bli Ri (HSFj (NDD-ADD)) (BLj (HSFj X ADD)) any particular Rate Schedule or billing classification within any such particular Rate Schedule that contains more than one billing classification Weather Normalization Adjustment Factor for the i*'^rate schedule or classification expressed in cents per Ccf Commodity Charge rate oftemperature sensitive sales for the i^l^schedule or classification. heat sensitive factor for the i^^schedule or classification divided by the average bill count in that class billingcycle normal heating degree days calculated as the simple ten-year average of actual heating degree days. billing cycle actual heating degree days. base load sales for the i^*^schedule or classification divided by the average bill count in that class The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as: WNAi = WNAFi x qij Where qy is the relevant sales quantity for the jth customer in ith rate schedule. INCLUDING EXHIBITS A, B, AND C, PAGE 12 OF 18 O677 CITY OF KENNEDALE, TX 2019 MID-TEX DIVISION ATMOS ENERGY CORPORATION RIDER:WNA -WEATHER NORMALIZATION ADJUSTMENT APPLICABLE TO:ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE:Bills Rendered on or after 11/01/2019 PAGE: Base Use/Heat Use Factors Residential Commercial Weather Station Abilene Base use Ccf 9.77 Heat use Ccf/HDD 0.1487 Base use Ccf 88.49 Heat use Ccf/HDD 0.7036 Austin 9.04 0.1537 201.48 1.0000 Dallas 13.07 0.2202 184.64 1.1385 Waco 8.77 0.1470 135.70 0.7744 Wichita Falls 11.40 0.1468 117.90 0.5943 Weather Normalization Adiustment (WNA)Report On or before June 1 of each year,the company posts on its website at atmosenergy.com/mtx-wna,in Excel format, a Weather Normalization Adjustment (WNA)Report to show how the company calculated its WNAs factor during the preceding winter season.Additionally, on or before June 1 of each year, the company files one hard copy and an Excel version of the WNA Report with the Railroad Commission of Texas'Gas Services Division,addressed to the Director of thatDivision. INCLUDING EXHIBITS A, B, AND C, PAGE 13 OF 18 O677 CITY OF KENNEDALE, TX 2019 Exhibit B 2019 Benchmark for Pensions and Retiree Medical Benefits INCLUDING EXHIBITS A, B, AND C, PAGE 14 OF 18 O677 CITY OF KENNEDALE, TX 2019 ATMOS ENERGY CORP.,MID-TEX DIVISION PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL TEST YEAR ENDING DECEMBER 31,2018 Shared Services Mid-Tex Direct Post-Supplemental Post- Line Pension Employment Pension Executive Benefit Employment Adjustment No.Description Account Plan Benefit Plan Account Plan Plan Benefit Plan Total 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 (a)(b)(c)(d)(e)(f) Proposed Benefits Benchmark - Fiscal Year 2019 Willis Towers Watson Report as adjusted (1) (2) (3)$2.744.088 $2,267.927 $4,724,119 $193,211 $2,621,842 Allocation to Mid-Tex 43.48%43.48%73.88%100.00%73.88% Proposed Benefits Benchmark Costs Allocated to Mid-Tex (Ln1 x Ln2) $1,193,029 $ 100.00% 986,012 $3,490,241 $193,211 $1,937,051 100.00%100.00%100.00% 100.00% (g) O&M and Capital Allocation Factor Proposed Benefits Benchmark Costs to Approve (Ln 3 x Ln 4) (3)$1,193,029 $986,012 $3,490,241 $193,211 $1,937,051 $7,799,544 Summary of Costs to Approve (1): O&M Expense Factor (WP_F-2.3, Ln2) Total Pension Account Plan Total Post-Employment Benefit Plan Total Supplemental Executive Benefit Plan Total (Ln 13 + Ln 14 + Ln 15)$ 81.35% 970,514 970,514 $ 81.35%38.28%16.24% $1,336,038 802,108 $31,377 802,108 $1,336,038 $31,377 $ Notes; 1.Studies not applicable to Mid-Tex or Shared Services are omitted. 2.The Company is requesting that the benchmark amount approved by the RRM Cities for future periods include only the expense amount. The amount attributable to capital would continue to be recorded to utility plant through the overhead process as described in the CAM. 3.SSU amounts exclude cost centers which do not allocate to Mid-Tex for rate making purposes. 38.28% 741,489 2,306,553 1,543,597 31,377 741,489 $3,881,527INCLUDING EXHIBITS A, B, AND C, PAGE 15 OF 18 O677 CITY OF KENNEDALE, TX 2019 Exhibit C 2019 Amortization Schedule for Regulatory Liability INCLUDING EXHIBITS A, B, AND C, PAGE 16 OF 18 O677 CITY OF KENNEDALE, TX 2019 Line No. ATMOS ENERGY CORP.,MID-TEX DIVISION RATE BASE ADJUSTMENTS TEST YEAR ENDING DECEMBER 31,2018 AMORTIZATION OF REGULATORY LIABILITY Year Ended Dec.31 Beginning of Year Rate Base Adjustment Amount (1) Annual Amortization (2) End of Year Rate Base Adjustment Amount (a)(b)(c)(d) 1 2018 $290,043,948 $-290,043,948 2 2019 290,043,948 12,085,165 277,958,784 3 2020 277,958,784 12,085,165 265.873,619 4 2021 265,873,619 12,085,165 253,788,455 5 2022 253,788,455 12,085,165 241,703,290 6 2023 241,703,290 12,085,165 229,618,126 7 2024 229,618,126 12,085,165 217,532,961 8 2025 217,532,961 12,085,165 205,447,797 9 2026 205,447,797 12,085,165 193,362,632 10 2027 193,362,632 12,085,165 181,277,468 11 2028 181,277,468 12,085,165 169,192,303 12 2029 169,192,303 12,085,165 157,107,139 13 2030 157,107,139 12,085,165 145,021,974 14 2031 145,021,974 12,085,165 132,936.810 15 2032 132,936,810 12,085,165 120.851,645 16 2033 120,851,645 12,085,165 108.766.481 17 2034 108,766,481 12,085,165 96.681.316 18 2035 96,681,316 12,085,165 84.596.152 19 2036 84,596,152 12,085,165 72.510.987 20 2037 72,510.987 12,085,165 60.425,823 21 2038 60,425,823 12,085,165 48,340,658 22 2039 48,340,658 12,085,165 36.255,494 23 2040 36,255,494 12,085,165 24,170,329 24 2041 24,170,329 12,085,165 12,085,165INCLUDING EXHIBITS A, B, AND C, PAGE 17 OF 18 O677 CITY OF KENNEDALE, TX 2019 25 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 2042 12,085,165 Revenue Related Tax Factor Revenue Related Taxes on Annual Amortization (see WP_B-6.3) Related Taxes (see WP_B-6.3) $ 12,085,165 (0) 6.71%SeeWP_F-5.1 Amortization *Tax 810,653 Factor $12,905,421 Amortization +Taxes Notes: 1.The beginning 2018 balance is the September,2018 balance.The regulatory liabilityfor excess deferred taxes is an estimate.This estimate will be finalized when the Company files its federal tax return in July,2019.To the extent that this estimate changes with the filing of the Company's tax return, the Company will 'true-up'the amount in the 2020 RRM filing. 2.The annual amortization of a 24 year recovery period is based on the Reverse South Georgia Method. 3.The Regulatory Liability is recorded to FERC Account 253,Sub Account 27909.INCLUDING EXHIBITS A, B, AND C, PAGE 18 OF 18 O677 CITY OF KENNEDALE, TX 2019 STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: REQUIRED APPROVAL ITEMS (CONSENT) ITEM E. SUBJECT: Consider authorizing the City Manager to sign a one-year extension of an Interlocal Agreement with City of Fort Worth for rabies control services and the utilization of animal impoundment and quarantine facilities ORIGINATED BY: Tommy Williams, Police Chief SUMMARY: In FY16–17, the City Council approved an Interlocal Agreement (ILA) with the City of Fort Worth for limited rabies control services and impoundment and quarantine facilities for animals. During FY18–19, we have impounded 39 dogs, 4 cats, and 1 raccoon. We have been billed for a total of $14,400 in shelter services to date. These invoices were associated with the impounding and adoption fees for our animals that were not claimed by an owner. The amount is much lower than FY17–18 due, in large part, to our Animal Control Officer (ACO) being hired as a police officer in early May of this year. We have used a contracted service since that time working on a part-time basis.This reduction of hours reduced the total animals impounded to a lower than average number. The original contract allowed for 3 (three) one-year extensions by written agreement of both parties. The first of these extensions was signed for FY17–18, the second for FY18–19, and the attached document (received August 16, 2019) would approve the final one-year extension through September 30, 2020. RECOMMENDATION: Approve ATTACHMENTS: 1.One-Year Extension of ILA Ft Worth Shelter Agreement.pdf STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: REQUIRED APPROVAL ITEMS (CONSENT) ITEM F. SUBJECT: Discuss and consider approval of Resolution 559, to adopt the HART InterCivic Verity, version 2.3.1, for use in Absentee Voting By Mail, Early Voting By Personal Appearance, Regular Voting on Election Day and Provisional Voting ORIGINATED BY: Leslie E. Galloway, City Secretary & Communications Coordinator SUMMARY: As the Council is aware, the City contracts with Tarrant County Elections for election services. On August 13, 2019, the the Tarrant County Commissioners Court voted to accept a contract with HART InterCivic to purchase a new voting system (the Verity System Version 2.3.1); and on August 27, 2019, adopted that system as the voting system for Tarrant County to be used for all forms of voting in Tarrant County including election day voting at polling locations, early voting in person, early voting by mail, and provisional voting. The new system will be used beginning with the Constitutional Amendment Election in November 2019. Section 123.001 of the Texas Elections Code requires that “Before a voting system may be used in elections, the authority designated by this section, by resolution, order, or other official action of the authority, must adopt the system for use in the elections.” Resolution 559 (attached) serves to adopt the system for use by the City of Kennedale. RECOMMENDATION: Approve ATTACHMENTS: 1.Staff Report from Commissioners Court Adoption of the Verity Voting System Staff Report from Commissioners Court Adoption of the Verity Voting System.pdf 2.R559_Voting Equipment R559_Voting Equipment.pdf SUBMITTED BY: Elections PREPARED BY: APPROVED BY: Heider Garcia COMMISSIONERS COURT COMMUNICATION REFERENCE NUMBER PAGE 1 OF 1 DATE: 08/27/2019 SUBJECT: ADOPTION OF THE HART INTERCIVIC VERITY SYSTEM AS THE VOTING SYSTEM TO BE USED FOR ALL FORMS OF VOTING IN TARRANT COUNTY COMMISSIONERS COURT ACTION REQUESTED: It is requested that the Commissioners Court adopt the Hart Intercivic Verity Voting System v. 2.3.1, as the voting system for Tarrant County to be used in accordance with the terms and conditions specified in the certification order issued by the Texas Secretary of State, for all forms of voting in Tarrant County, including election day voting at polling locations, early voting in person, early voting by mail, and provisional voting. BACKGROUND: Section 123.001 of the Texas Elections Code requires that “Before a voting system may be used in elections, the authority designated by this section, by resolution, order, or other official action of the authority, must adopt the system for use in the elections.” On August 13, 2019, the Commissioners Court, through Court Order #130826, awarded RFP 2019-002 to HART InterCivic, completing the acquisition of the new voting system. It is now necessary that the Court formally adopt this newly purchased voting system for voting in Tarrant County, starting with the Constitutional Amendment Election of November 2019 for all forms of voting in this election. FISCAL IMPACT: There is no fiscal impact associated to this item. Page 1 of 2 R559 CITY OF KENNEDALE, TX 2019 RESOLUTION NO. 559 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KENNEDALE, TEXAS, ADOPTING A NEW VOTING SYSTEM FOR CITY ELECTIONS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Kennedale contracts with Tarrant County for the purpose of conducting its elections; and WHEREAS, on August 13, 2019, the Tarrant County Commissioners Court voted to accept a contract with HART InterCivic to purchase Verity System version 2.3.1 (the “System”); and WHEREAS, the System will be used in accordance with the terms and conditions specified in the certification order issued by the Texas Secretary of State; and WHEREAS, Chapter 123, Subchapter A of the Texas Election Code requires voting systems to be adopted by the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE, TEXAS, THAT: SECTION 1. The City adopts the HART InterCivic Verity Voting System version 2.3.1 as the voting system for City elections, including absentee voting by mail, early voting by personal appearance, regular voting on election day and provisional voting. SECTION 2. This resolution shall be effective immediately from and after its passage. DULY PASSED, ADOPTED, AND APPROVED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE, TEXAS, ON THE 17TH DAY OF SEPTEMBER, 2019. APPROVED: ______________________________ MAYOR BRIAN JOHNSON [ C I T Y S E A L ATTEST: ______________________________ CITY SECRETARY LESLIE E. GALLOWAY STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: REQUIRED APPROVAL ITEMS (CONSENT) ITEM G. SUBJECT: Approval of Resolution 560, approving the continued receipt of a share of bingo prize fees collected by licensed authorized organizations in accordance with section 2001.502 of the Texas Occupations Code ORIGINATED BY: George Campbell, City Manager SUMMARY: As outlined in the attached letters from the Texas Lottery Commission (TLC), currently non-profit charitable organizations conducting bingo collect a 5% fee on prizes awarded. These funds are submitted each quarter to the TLC, which in turn remits a pro rata share of the funds to local governments at the end of each fiscal year. The City of Kennedale is eligible to receive a share of these bingo prize fees because it elected to do so prior to September 1, 1993. The City does not, however, currently receive any proceeds from this eligibility, as a search of Charitable Bingo Units at https://bsc.txbingo.org/bsp/faces/bspPublicReports.jsf shows that none are currently registered in Kennedale. Pursuant to House Bill (HB) 914, enacted by the 86th Texas Legislature, in order to continue to be eligible to receive a share of bingo prize fees after January 1, 2020, a municipal governing board must affirmatively vote to do so and submit proof of that vote to the Texas Lottery Commission (TLC) by Friday, November 1, 2019. If no eligible local governments vote to continue receiving their share of the prize fee, the bingo organizations will keep that share for themselves to fund their charitable purposes. If the Council chooses to maintain this eligibility, three requirements must be met: 1.approve the continued receipt of the share of bingo prize fee funds by a majority vote; and 2.notify the TLC of that decision no later than November 1, 2019; and 3.notify each licensed authorized organization within the county's or municipality's jurisdiction, as applicable, of the continued imposition of the fee. If the Council adopts Resolution 560, the attached "Vote Verification Notice" will be submitted to the TLC; and any affected organization within the jurisdiction will be notified. RELATED INFORMATION: Another change effective January 1, 2020, impacts the collection and remittance of prize fees. Local governments will no longer receive their bingo prize fee payments from TLC at the end of the fiscal year. After January 1, 2020, licensed organizations conducting bingo in a jurisdiction that has fulfilled all of the requirements of Section 11 of H.B. 914 will remit to that jurisdiction, allocations up to 50% of the prize fees the charitable organizations collect payable on a quarterly basis. RECOMMENDATION: Approve ATTACHMENTS: 1.2019_07.17 Texas Lottery Commission Letter 1 2019_07.17 Texas Lottery Commission Letter 1.pdf 2.2019_08.26 Texas Lottery Commission Letter 2 2019_08.26 Texas Lottery Commission Letter 2.pdf 3.R560 Bingo Prize Fees R560 Bingo Prize Fees.pdf 4.BINGO - Vote Verification Notice BINGO - prescribed_attestation_form.pdf Page 1 of 2 R560 CITY OF KENNEDALE, TX 2019 RESOLUTION NO. 560 A RESOLUTION OF THE CITY OF KENNEDALE, TEXAS, APPROVING THE CONTINUED RECEIPT OF A SHARE OF BINGO PRIZE FEES COLLECTED BY LICENSED AUTHORIZED ORGANIZATIONS IN ACCORDANCE WITH SECTION 2001.502 OF THE TEXAS OCCUPATIONS CODE; 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 Code; and WHEREAS, the City Council previously imposed a gross receipt tax on licensed authorized organizations conducting charitable bingo; and WHEREAS, House Bill 914, enacted by the 86th Texas Legislature amends Section 2001.502 of the Texas Occupations Code to require licensed authorized organizations conducting charitable bingo to now send local governments fifty (50) percent of the bingo prize fees they collect to eligible local governments each quarter; and WHEREAS, a county and/or municipal governing board, who previously elected to impose a gross receipts tax on licensed authorized organizations must also affirmatively vote by November 1, 2019, to continue to receive its share of bingo prize fees collected after January 1, 2020. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE, TEXAS: SECTION 1. That the City approves the continued receipt of the share of bingo prize fee funds after January 1, 2020. SECTION 2. That the City Manager is authorized to execute all documents necessary to implement this resolution, including notifying the Texas Lottery Commission of the City’s decision, and notifying all licensed authorized organizations conducting charitable bingo within its jurisdiction of the continued imposition of the bingo fee. SECTION 3. That this resolution shall be effective immediately from and after its passage. Page 2 of 2 R560 CITY OF KENNEDALE, TX 2019 DULY PASSED, ADOPTED, AND APPROVED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE, TEXAS, ON THE 17TH DAY OF SEPTEMBER, 2019. APPROVED: ______________________________ MAYOR BRIAN JOHNSON [ C I T Y S E A L ATTEST: ______________________________ CITY SECRETARY LESLIE E. GALLOWAY TEXAS LOTTERY COMMISSION – CHARITABLE BINGO DIVISION BINGO PRIZE FEE FUNDS COUNTY/MUNICIPALITY GOVERNING BODY VOTE VERIFICATION NOTICE 1 This form serves as the required notice to the Texas Lottery Commission (Commission) that a county or municipality has fulfilled two of the requirements of House Bill 914, 86th Texas Legislature (H.B. 914) that are necessary for that county or municipality to continue to receive a share of bingo prize fees after January 1, 2020. Specifically, Section 11 of H.B. 914 provides: “(a) a county or municipality may receive a portion of the prize fee…only if: (1) The county or municipality was entitled to receive a portion of a bingo prize fee as of January 1, 2019; and (2) The governing body of the county or municipality: (A) by majority vote of the members of the governing body approves the continued receipt of funds under that section and notifies the Texas Lottery Commission of that decision not later than November 1, 2019; and (B) notifies each licensed authorized organization within the county’s or municipality’s jurisdiction, as applicable, of the continued imposition of the fee.” Your county/municipality should consult with an attorney if you have any questions about complying with the provisions of H.B. 914. This form is only an attestation that certain requirements set forth in H.B. 914 have been fulfilled. Accordingly, the undersigned county or municipal representative hereby swears and affirms that: (1) the county or municipality was entitled to receive a share of a bingo prize fee as of January 1, 2019; and (2) the governing body of the county or municipality approved the continued receipt of the share of bingo prize fee funds by a majority vote. ___________________________________ Name of County or Municipality _____________________________________________ Authorized Signature (Name and Title) Date TEXAS LOTTERY COMMISSION – CHARITABLE BINGO DIVISION BINGO PRIZE FEE FUNDS COUNTY/MUNICIPALITY GOVERNING BODY VOTE VERIFICATION NOTICE 2 State of Texas County of __________________________ This form attesting to the fulfillment of the requirements of H.B. 914 was acknowledged before me on ______ by ____________________ as _________________________ of (date) (name of representative) (title of representative) ____________________________________. (name of county or municipality) __________________________________ (Personalized Seal) Notary Public’s Signature STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: DECISION ITEMS ITEM A. SUBJECT: Discuss and consider Ordinance 678 of the City of Kennedale, Texas, adopting the Budget for the Fiscal Year beginning October 1, 2019, and ending September 30, 2020; appropriating resources for each department, project, operation, activity, purchase, account, and other expenditures; providing for emergency expenditures and expenditures as allowed by applicable State Law; providing for the filing and posting of the Budget as required by State Law; providing a severability clause; and providing an effective date ORIGINATED BY: Lakeita Sutton, Director of Finance and Information Technology SUMMARY: At this time, Council will consider adoption of Ordinance 678, adopting the FY19–20 Budget (Program of Services) for the City of Kennedale, Texas. A PDF of the FY19–20 Budget, as adopted by City Council will be posted at www.cityofkennedale.com/budget no later than September 30, 2019. According to Chapter 102, Municipal Budget, of the Local Government Code (LGC), a municipal budget shall be prepared to cover the proposed expenditures of the municipal government for the succeeding year. The proposed budget must be filed with the municipal clerk for public inspection, and a public hearing conducted on the budget with special notice published in relation to the budget hearing. At the conclusion of the public hearing, the governing body of the municipality shall take action on the proposed budget (or table it for adoption at a later meeting), and it may make any changes in the budget that it considers warranted by the law or by the best interest of the municipal taxpayers. A vote to adopt the budget under this Chapter is in addition to and separate from the vote to set the tax rate required by Chapter 26, Tax Code, or other law. The following timetable represents key dates during which notices were published and meetings were conducted: DATE ACTION 08/06/19 Draft of Proposed FY19–20 Budget was distributed to the Council 08/08/19 Council FY19-20 Budget Meeting (presentation of the City Manager's Proposed Budget) Staff Provides Effective Tax Rate And Schedules To Council Council Votes To Place Proposal For Tax Increase On Future Agenda and set Public Hearing Dates 08/12/19 Proposed FY19–20 Budget filed with City Secretary's Office 08/16/19 Hardcopy of Final Proposed FY19–20 Budget distributed to Council along with an Informal Staff Report 08/20/19 Council discussion of the FY19–20 Proposed Budget continues during Regular Meeting Work Session 08/28/19 Informal Staff Report issued to the Council to address questions from the August 20 discussion 08/21/19 Publish Notice of Public Hearing On Budget in the Newspaper of Record (Star-Telegram) 08/23/19 Publish Notice of Proposed Property Tax Rate in the Newspaper of Record (Star-Telegram) 09/05/19 Hold Public Hearing On Budget AND First Public Hearing on Tax Rate 09/13/19 Hold Second Public Hearing on Tax Rate 09/17/19 Adopt FY19–20 Budget (via Ordinance 678) Ratify Tax Revenue Rate that supports FY19–20 Adopted Budget Adopt FY19–20 Tax Rate (via Ordinance 679) RECOMMENDATION: Approve MUST BE A RECORD VOTE. ATTACHMENTS: 1.O678_Adoption of Budget O678_Adoption of Budget.pdf INCLUDING ATTACHMENT “A”, PAGE 1 OF 4 O678 CITY OF KENNEDALE, TX 2019 ORDINANCE NO. 678 AN ORDINANCE OF THE CITY OF KENNEDALE, TEXAS, ADOPTING THE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2019, AND ENDING SEPTEMBER 30, 2020; APPROPRIATING RESOURCES FOR EACH DEPARTMENT, PROJECT, OPERATION, ACTIVITY, PURCHASE, ACCOUNT AND OTHER EXPENDITURES; PROVIDING FOR EMERGENCY EXPENDITURES AND EXPENDITURES AS ALLOWED BY APPLICABLE STATE LAW; PROVIDING FOR THE FILING AND POSTING OF THE BUDGET AS REQUIRED BY STATE LAW; PROVIDING A SEVERABILITY CLAUSE 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 Code; and WHEREAS, the City Manager of the City has filed with the City Secretary a budget outlining all proposed expenditures of the government of the City for the fiscal year beginning October 1, 2019, and ending September 30, 2020, (hereinafter referred as the “Budget”); and WHEREAS, the Budget specifically sets forth each of the various projects for which appropriations are delineated, and the estimated amount of money carried in the Budget for each of such projects; and WHEREAS, the Budget has been filed with the City Secretary for at least thirty (30) days before the date the City Council makes its tax levy for the fiscal year and such Budget has been available for inspection by any taxpayer; and WHEREAS, notice of a public hearing on the proposed Budget, stating the date, time, place and subject matter of said public hearing, was given as required by the laws of the State of Texas; and WHEREAS, such public hearing was held on September 5, 2019, prior approval of such date being ratified and confirmed by the City Council, and those wishing to speak on the Budget were heard; and WHEREAS, the City Council has studied the Budget and listened to the comments of the taxpayers at the public hearing held thereon and has determined that the Budget, a copy of which is attached hereto as Exhibit “A” and incorporated herein for all purposes, is in the best interest of the City and that same should be approved and adopted. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE, TEXAS, THAT: INCLUDING ATTACHMENT “A”, PAGE 2 OF 4 O678 CITY OF KENNEDALE, TX 2019 SECTION 1. All of the above premises are found to be true and correct and are incorporated into the body of this Ordinance as if copied in their entirety. SECTION 2. The Budget of the revenue of the City and the expenses of conducting the affairs thereof for the ensuing fiscal year beginning October 1, 201 9, and ending September 30, 2020, is hereby adopted and approved, and there is hereby appropriated from the funds indicated therein such sums for the projects, operations, activities, purchases, accounts and other expenditures proposed in the Budget, as set forth in Exhibit “A”. SECTION 3. No expenditure of the funds of the City of Kennedale shall hereafter be made except in compliance with the Budget and applicable state law; provided, however, that in case of grave public necessity to meet unusual and unforeseen conditions, which could not by reasonable, diligent thought and attention have been include d in the original Budget, expenditures may from time to time be authorized by the City Council as amendments to the original Budget. SECTION 4. A copy of the approved Budget, including the cover page, shall be posted on the City’s website, along with the record vote of each member of the City Council, as required by law. In addition, the City Manager shall file or cause to be filed a true and correct copy of this ordinance, along with the approved Budget attached hereto, with the City Secretary. The City Manager shall file or cause to be filed a true and correct copy of this ordinance, along with the approved Budget attached hereto, and any amendments thereto, in the office of the County Clerk of Tarrant County, Texas, as required by State law. SECTION 5. 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 incorporati on in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. INCLUDING ATTACHMENT “A”, PAGE 3 OF 4 O678 CITY OF KENNEDALE, TX 2019 SECTION 6. That this ordinance be in full force and effect from and after its adoption. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE, TEXAS, THIS THE 17TH DAY OF SEPTEMBER, 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: ______________________________ CITY ATTORNEY DREW LARKIN INCLUDING ATTACHMENT “A”, PAGE 4 OF 4 O678 CITY OF KENNEDALE, TX 2019 ORDINANCE NO. 678 ATTACHMENT “A” GENERAL FUNDS GENERAL FUNDS GENERAL FUND 6,919,577 GENERAL FUND 7,782,522 CAPITAL REPLACEMENT FUND 185,732 CAPITAL REPLACEMENT FUND 185,732 COURT SECURITY FUND 3,000 COURT SECURITY FUND – COURT TECHNOLOGY FUND 3,920 COURT TECHNOLOGY FUND 875 STREET IMPROVEMENT FUND 838,926 STREET IMPROVEMENT FUND 1,052,154 JUVENILE CASE MANAGER FUND 5,650 JUVENILE CASE MANAGER FUND 13,873 PARK REC/OTHER DONATION FUND 50 PARK REC/OTHER DONATION FUND – TREE REFORESTATION FUND 500 TREE REFORESTATION FUND – UNCLAIMED PROPERTY FUND –UNCLAIMED PROPERTY FUND – GENERAL DEBT SERVICE FUND 1,487,585 GENERAL DEBT SERVICE FUND 1,487,059 WATER AND SEWER FUNDS WATER AND SEWER FUNDS WATER/SEWER FUND 4,028,331 WATER/SEWER FUND 4,350,939 STORMWATER UTILITY FUND 300,900 STORMWATER UTILITY FUND 585,316 WATER IMPACT FUND 35,146 WATER IMPACT FUND 152,525 SEWER IMPACT FUND 17,201 SEWER IMPACT FUND 60,000 WATER IMPROVEMENT FUND –WATER IMPROVEMENT FUND – EDC FUNDS EDC FUNDS EDC4B FUND 700,728 EDC4B FUND 572,598 EDC4B CAPITAL BOND FUND –EDC4B CAPITAL BOND FUND – EDC4B BOND RESERVE FUND 2,000 EDC4B BOND RESERVE FUND – CAPITAL PROJECT FUNDS CAPITAL PROJECT FUNDS CAPITAL PROJECTS FUND 70,250 CAPITAL PROJECTS FUND 104,768 CAPITAL BOND FUND –CAPITAL BOND FUND 735,000 PARK DEDICATION FUND 800 PARK DEDICATION FUND 30,170 LIBRARY BUILDING FUND 2,270 LIBRARY BUILDING FUND 2,000 ROADWAY IMPACT FEE FUND 27,535 ROADWAY IMPACT FEE FUND 10,000 SPECIAL REVENUE FUNDS SPECIAL REVENUE FUNDS TIF #1 (NEW HOPE) FUND 146,648 TIF #1 (NEW HOPE) FUND – HOTEL/MOTEL TAX FUND –HOTEL/MOTEL TAX FUND – POLICE SEIZURE FUND –POLICE SEIZURE FUND – LEOSE FUND 1,767 LEOSE FUND 1,650 TOTAL REVENUES 14,778,516$ TOTAL EXPENDITURES 17,127,181$ REVENUES EXPENDITURES FY 2019-2020 ALL FUNDS REVENUE AND EXPENDITURE SUMMARY CITY OF KENNEDALE STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: DECISION ITEMS ITEM B. SUBJECT: Discuss and consider ratification of property tax increase reflected in FY2019–2020 Adopted Budget ORIGINATED BY: Lakeita Sutton, Director of Finance and Information Technology SUMMARY: At this time, the Council will consider ratifying the FY19–20 Property Tax Increase reflected in the adopted FY19–20 Budget for the City of Kennedale. According to Chapter 102, Municipal Budget, of the Local Government Code (LGC), a municipal budget shall be prepared to cover the proposed expenditures of the municipal government for the succeeding year. In addition to the adoption of a budget, should that budget require raising more revenue from property taxes than in the previous year, the governing body must conduct a separate vote to ratify the property tax increase reflected in the budget. A vote under this subsection is in addition to and separate from the vote to adopt the budget or a vote to set the tax rate required by Chapter 26, Tax Code, or other law. RECOMMENDATION: Approve This should be approved by a separate motion, immediately after approval of the budget. Required wording for a motion by a governing body to ratify a property tax increase in an approved budget: I MOVE TO RATIFY THE PROPERTY TAX INCREASE REFLECTED IN THE FY19–20 ADOPTED BUDGET. ATTACHMENTS: STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: DECISION ITEMS ITEM C. SUBJECT: Discuss and consider approval of Ordinance 679, fixing and levying municipal Ad Valorem Taxes for the City of Kennedale, Texas, for the Fiscal Year beginning October 1, 2019, and ending September 30, 2020; directing the assessment and collection thereof; providing a severability clause; and providing an effective date ORIGINATED BY: Lakeita Sutton, Director of Finance and Information Technology SUMMARY: At this time, Council will consider adoption of Ordinance 679, fixing and levying FY19–20 ad valorem (property) taxes for the City of Kennedale. According to the Texas Constitution and Property Tax Code, which both embody the concept of truth-in-taxation, a municipality is required to comply with certain steps in adopting their tax rate in an effort to make taxpayers aware of tax rate proposals and allow taxpayers, in certain cases, roll back or limit a tax increase. A vote to set the tax rate required by Chapter 26, Tax Code, is in addition to and separate from the vote to adopt the budget. According to Section 5.05 of the Texas Tax Code, the taxing unit must vote to place a proposal to adopt the proposed tax rate as an action item on the agenda of a future meeting when a proposed rate exceeds the rollback rate or the effective rate, whichever is lower, and hold two public hearings prior to consideration of adoption. At its Special Meeting on Thursday, August 8, 2019, the Council approved the placement of an item to adopt a proposed tax rate not to exceed $0.734970 on the agenda for the Tuesday, September 17, 2019 Regular Meeting. Furthermore, the Council scheduled two public hearings on the proposal to occur on Thursday, September 5, at 7:00 p.m. and Friday, September 13, at 2:00 p.m., at which time taxpayers were given an opportunity to express their views on the proposed FY19–20 tax rate. These dates were published in the Fort Worth Star-Telegram (the City's newspaper of record) on Friday, August 23, 2019. The City Manager's FY19–20 Budget Proposal (presented at the August 8, 2019 meeting) was based on a FY19–20 Tax Rate of $0.734970 (an increase of $0.09256 from FY18–19). Should the FY19–20 Budget adopted by Council require raising more revenue from property taxes than in the previous year, the governing body must conduct a separate vote to ratify the property tax increase reflected in the budget (the item immediately preceding this agenda item). Action can now be taken by Council at tonight's meeting (Tuesday, September 17, 2019) on the FY19–20 Budget and Tax Rate. Council can consider and adopt any FY19–20 Tax Rate, up to and including $0.734970 (per $100 of assessed valuation). RECOMMENDATION: Approve The vote on tax rate must be a RECORD vote. There is specific required wording for a motion by a governing body to set the tax rate. A motion to adopt an ordinance, resolution, or order setting a tax rate that exceeds the no-new- revenue (or "effective") tax rate must be made in the following form. Choose the appropriate motion: RECOMMENDED TAX RATE REFLECTED IN THE PROPOSED BUDGET: "I move that the property tax rate be increased by the adoption of a tax rate of $0.734970, which is effectively a 8.0% increase in the tax rate." OTHER: "I move that the property tax rate be increased by the adoption of a tax rate of (SPECIFY TAX RATE), which is effectively a _____% increase in the tax rate." ATTACHMENTS: 1.O679_Adoption of Tax Rate O679_Adoption of Tax Rate.pdf PAGE 1 OF 3 O679 CITY OF KENNEDALE, TX 2019 ORDINANCE NO. 679 AN ORDINANCE FIXING AND LEVYING MUNICIPAL AD VALOREM TAXES FOR THE CITY OF KENNEDALE, TEXAS, FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2019, AND ENDING SEPTEMBER 30, 2020; DIRECTING THE ASSESSMENT AND COLLECTION THEREOF; PROVIDING FOR THE APPROVAL OF THE TAX ROLL; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE CLAUSE. WHEREAS, the City Council has approved on the 17th day of September 2019, the budget for the fiscal year beginning October 1, 201 9, and ending September 30, 2020; and WHEREAS, the City Council of the City of Kennedale, Texas, hereby finds that a tax at the rate set forth below for the fiscal year beginning October 1, 2019, and ending September 30, 2020, must be levied to provide the revenue requirements of the budget for the ensuing year; and WHEREAS, the City Council desires to approve the official tax roll of the City which is calculated based upon the adopted tax rate; and WHEREAS, all statutory and constitutional requirements concerning the levying and assessing of ad valorem taxes have been completed in due and correct time, including providing notice of and conducting public hearings regarding the ad valorem tax levied hereby. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE, TEXAS, THAT: SECTION 1. For the current expense of the City of Kennedale and for the general improvements of the City and its property, there is hereby levied and ordered to be assessed and collected for the fiscal year beginning Octob er 1, 2019, and ending September 30, 2020, and for each fiscal year thereafter until it be otherwise provided and ordained, on all property situated within the corporate limits of the City of Kennedale, and not exempt from taxation by valid laws, an ad valorem tax rate of $0.734970 cents on each One Hundred Dollars ($100.00) of valuation of such property, to be assessed as follows: $0.544429 FOR THE PURPOSE OF MAINTENANCE AND OPERATION $0.190541 FOR THE PURPOSE OF INTEREST AND SINKING $0.734970 TOTAL TAX RATE PAGE 2 OF 3 O679 CITY OF KENNEDALE, TX 2019 THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR’S TAX RATE. THE TAX RATE WILL EFFECTIVELY BE RAISED BY 8.00 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $9.21. SECTION 2. The taxes herein are levied according to law and shall be due and payable on October 1, 2019, and the same shall become delinquent on February 1, 2020. Should any taxpayer fail to make payment before the date of delinquency, a penalty and interest as provided by law shall be assessed until the unpaid taxes and penalty have been satisfied. SECTION 3. Pursuant to the authority granted by Section 33.07 of the Texas Tax Code, in the event that the taxes become delinquent on or after February 1 , 2020, but not later than May 1, 2020, and that remain delinquent on July 1, 2020, and in the event such delinquent taxes are referred to an attorney for collection, an additional amount of twenty percent (20%) of the total amount of tax, penalty and interest the n due shall be added as collection costs to be paid by the taxpayer. SECTION 4. Pursuant to the authority granted by Section 33.08 of the Texas Tax Code, the City further provides that all taxes that become delinquent on or after June 1 , 2020, shall, in order to defray the costs of collection, incur an additional penalty in the amount of twenty percent (20%) of the delinquent tax, penalty and interest. SECTION 5. The tax roll for tax year 2019 for the City of Kennedale, Texas, is hereby approved. SECTION 6. In the event any section, subsection, clause, sentence, or phrase of this ordinance shall be declared or adjudged invalid or unconstitutional, such adjudication shall in no means affect any other section, subsection, clause sentence, or phrase of this ordinanc e, but all the rest thereof shall be in full force and effect just as though the section, subsection, sentence, clause or phrase so declared or adjudged invalid or unconstitutional was not originally a part thereof. SECTION 7. This ordinance shall be in full force and effect from and after its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE, TEXAS, THIS THE 17TH DAY OF SEPTEMBER, 2019. PAGE 3 OF 3 O679 CITY OF KENNEDALE, TX 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: ______________________________ CITY ATTORNEY DREW LARKIN STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: DECISION ITEMS ITEM D. SUBJECT: Consider making appointments to various advisory boards and commissions ORIGINATED BY: George Campbell, City Manager SUMMARY: At this time, Council may consider making appointments to various advisory boards and commissions. A full listing of the membership, vacancies, and applications received for each of the boards is attached to Work Session Item A. RECOMMENDATION: ATTACHMENTS: STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: DECISION ITEMS ITEM E. SUBJECT: Consider authorizing the City Manager to enter into an agreement with Shield Engineering Group for civil engineering services associated with roadway, water, sanitary sewer and drainage improvements for Linda Road ORIGINATED BY: Larry Hoover, Public Works Director SUMMARY: The attached agreement would replace Linda Road (an existing ~20-foot-wide asphalt roadway with bar ditches along both sides contained within a 50-foot public right of way (ROW)) with a 24-foot edge-to-edge asphalt roadway with culverts and drainage ditches along both sides. The capacity of the drainage system will also be analyzed and up-sized if necessary. This analysis will also consider the system for a future curb and gutter section with storm drainage. The existing water lines include an 8” asbestos line along the north side of Linda Road between S Dick Price and Gail Drive, a 16” line between Gail Drive and Susan Drive, and a 2” line along the south side of Linda Road. A new 8” waterline is proposed to replace and abandon the existing 8” asbestos one. The services will be reconnected to this new waterline, at which time the existing 2” line would also be abandoned. The existing sanitary sewer line is a 6” line along the north side of Linda Road that will be reviewed using CCTV and rehabilitated, based on the condition assessment of the pipe. The agreement will also review a potential future connection to Little School Road (as outlined in the Master Thoroughfare Plan) including necessary improvements to accommodate future needs, which may consist of curb and gutter, close drainage, and/or additional ROW acquisition. The Agreement has four sections: the first addresses improvements related to the Compressed Air Systems (CAS) 380 Agreement; the second serves to complete the block to Gail Drive; the third addresses the stretch between Gail Drive and Susan Drive; and the fourth completes the remaining existing portion of Linda Road. The agreement provides services from design to bidding to completion of construction. Possible funding sources for this $99,200 project are the 2019 Tax Notes, the Stormwater Fund, or the Water and Sewer Fund. RECOMMENDATION: Approve ATTACHMENTS: 1.Linda Road Professional Services Agreement (PSA) Linda Road Professional Services Agreement (PSA)_2.pdf 2.Linda Road Project Extents Linda Road Project Extents.pdf Initials _______ _______ Page 1 of 9 (FIRM) (CLIENT) AN AGREEMENT TO PROVIDE LIMITED PROFESSIONAL SERVICES PROJECT NAME: Linda Road Improvements PROJECT NO: 2019033.01 CLIENT: City of Kennedale, Attn: Larry Hoover ADDRESS: 405 Municipal Drive, Kennedale, TX 76060 hereby requests and authorizes Shield Engineering Group, PLLC (the Firm) to perform the following Services.: SCOPE: The city of Kennedale (Client, CITY or Owner) has identified roadway, drainage and utility improvements along Linda Road to be rehabilitated in conjunction with the Compressed Air Systems (CAS) development. The City has also identified a potential need for these improvements to be extended for future development. The segments proposed for rehabilitation along Linda Road breakdown as follows: Segment A: S Dick Price to CAS driveway – 1212 LF Segment B: CAS driveway to Gail Drive – 423 LF Segment C: Gail Drive to Susan Drive – 431 LF Segment D: Susan Drive to end of Linda Road – 670 LF Total Linda Road Rehabilitation 2736 Linear Feet The Firm understands Linda Road Improvements, located in Kennedale, Texas, to consist of civil engineering services associated with roadway, water, sanitary sewer and drainage rehabilitation improvements. Linda Road is an existing 20’+/- asphalt roadway with bar ditches along both sides contained within a 50’ public ROW. This roadway is proposed to be replaced with 24’ edge to edge asphalt roadway with culverts and drainage ditches along both sides in the existing 50’ ROW. The drainage system will be analyzed for capacity and upsized if necessary. The analysis will also consider the system for future curb and gutter section with a future storm drain system. The existing water lines include an asbestos 8” WL along the north side of Linda Road between S Dick Price and Gail Drive, a 16” WL between Gail Drive and Susan Drive and a 2” WL along the south side of Linda Road. A new 8” water line is proposed to replace and abandon the existing 8” asbestos water pipe. The services will be reconnected to the new water line and the existing 2” water line will be abandoned. The existing sanitary sewer line is shown as a 6” SS along the north side of Linda Road. This line will be reviewed using CCTV and rehabilitated based on the condition assessment of the pipe. The Firm understands that the current City master thoroughfare plan from the 2012 Comprehensive Plan Update shows the future extension of Little School Road to follow a proposed alignment near Linda Road and it is the City’s intent to analyze this alignment with these proposed improvements to plan for these future improvements. This may include identifying future needs for ROW acquisition to accommodate the proposed 100’ ROW and location of proposed and future curb and gutter with a closed drainage system. Exhibits, as-built plans, and other miscellaneous services beyond this scope will be Additional Services and billed at the Hourly Rate Schedule provided with this scope. Initials _______ _______ Page 2 of 9 (FIRM) (CLIENT) The Client shall either directly provide the following information or make the information available from one of the Client’s subconsultants including but not limited to: Geotechnical Report for pavement recommendation CCTV of SS Line for condition assessment Basic Services: 1. Conceptual Design Package and Data Collection: $14,800 a. Site Visit: The Firm will visit the site one time to observe existing conditions. b. Plan Research: The Firm will gather available existing infrastructure plans adjacent to and serving the site to be used for the site civil design. Firm will research proposed improvements in conjunction with any other planned future improvements that may influence the project. c. Future Improvements: The Firm will research proposed improvements in conjunction with any other planned future improvements that may influence the project. d. Data Collection: The data collection efforts may include conducting special coordination meetings with affected property owners and businesses as necessary to develop rehabilitation plans. e. Conceptual Design Package: shall include the following: i. Graphic exhibits and written summary of alternative design concepts considered, strengths and weaknesses of each, and the rationale for selecting the recommended design concept. ii. Proposed phasing of any water, sanitary sewer, and pavement work that is included in this project. iii. Existing and proposed typical sections of the roadway to be constructed for the roadway including: existing and proposed ROW, existing and proposed lane widths, existing and proposed curbs, sidewalks, and retaining walls. It is assumed that the proposed roadway section will be POL or MOL depending on the geotechnical report provided by the City or as directed by the City. iv. Conceptual plan and profile sheets showing existing and proposed horizontal roadway alignments, existing and proposed ROW, existing and proposed sidewalks and driveways, proposed lane dimensions, existing drainage structures, city owned and franchise utilities as determined by dig-tess, and existing roadway vertical alignments (profiles). f. Preliminary Opinion of Probable Costs: The Firm will prepare one Preliminary Opinion of Probable Cost using our recent bid tabs, or Client provided unit prices, however, in either case, the Client represents their acceptance of these prices by using the estimate provided. 2. Survey Services: $23,200 a. Topographic Design Survey: Perform on-the-ground design survey for the site (as defined above) to verify detailed information for engineering design. The Firm will provide topographic design survey which may include but is not limited to 1’ contour intervals, horizontal and vertical location of existing surface features such as water valves, fire hydrants, telephone poles, sanitary sewer manholes and flowline information, storm drain system structures and flowlines Initials _______ _______ Page 3 of 9 (FIRM) (CLIENT) and pipe sizes, curbs, edge of pavement, retaining walls, power poles, dig-tess pin flags, creek cross sections, etc. b. Right-of-Way Research: The Firm shall determine rights-of-way and easements needed for construction of the project. Required temporary and permanent easements will be identified based on available information and recommendations will be made for approval by the City. c. Right of Entry: Prior to construction, the Firm’s Surveyor shall prepare Temporary Right of Entry documents for the City to use and obtain from landowners. It is assumed that letters will only be required for land owners adjacent to temporary construction easements or who are directly affected by the project and no easement is required to enter their property. 3. Preliminary Design and Specifications: $35,800 a. Preliminary Design Drawings: The preliminary design drawings shall include: i. Project Control Sheet showing all control points used or set while gathering data, ii. Overall project easement layout, iii. Overall Water layout sheet, preliminary water plans and water profiles for waterlines 12” and larger, iv. Overall Sanitary Sewer layout sheets and preliminary sanitary sewer plan and profiles, v. Preliminary iSWM: The Firm will prepare a preliminary iSWM submittal per the City requirements. vi. Downstream Assessment: The Firm will provide a downstream assessment for the site. This assessment will include the current City Design Criteria and adopted iSWM standards. The intent of this modeling and design is to satisfy the “no adverse impact” criteria downstream. vii. Drainage area map and preliminary drainage plans, viii. Preliminary Roadway plan and profiles and typical roadway sections, ix. Preliminary details. b. Traffic Control Plan: The Firm will prepare a traffic control plan using City and MUTCD standards. c. Erosion Control Plan: The Firm will prepare an erosion control plan using City and TCEQ standards to be used with the contractor SWPPP. d. Preliminary Opinion of Probable Costs: The Firm will update the Preliminary Opinion of Probable Cost. e. Specifications: The Firm shall prepare draft specifications. 4. Final Design and Construction Documents: $17,900 a. SWPPP: For projects that disturb an area greater than one (1) acre, the Contractor will be responsible for preparing and submitting the Storm Water Pollution Prevention Plan (SWPPP) with appropriate regulatory agencies. b. Draft Final plans (90%) and specifications shall be submitted to City for final comments. Initials _______ _______ Page 4 of 9 (FIRM) (CLIENT) c. Following a 90% construction plan review meeting with the City, the Firm shall submit Construction Documents (100%) to the City per the approved Project Schedule. Each plan sheet shall be stamped, dated, and signed by the engineer registered in State of Texas. d. The Firm shall submit a final design estimate of probable construction cost with 100% design package. 5. Bid Phase Support Services: $2,500 Hourly a. The Firm shall sell (or transmit electronically at no cost) contract documents and maintain a plan holders list of Contractor’s and Plan Holder Registrations who have requested or purchased plans. b. The Firm will develop and implement procedures for receiving and answering bidders’ questions and requests for additional information. The procedures shall include a log of all significant bidders questions and requests and the response thereto. The Firm will provide technical interpretation of the contract bid documents and will prepare proposed responses to all bidders questions and requests, in the form of addenda. The Firm shall transmit all approved addenda distribute addenda to all plan holders. c. The Firm will attend the prebid conference in support of the City. d. The Firm will assist the City in determining the qualifications and acceptability of prospective contractors, subcontractors, and suppliers. e. The Firm will attend the bid opening in support of the City. f. The Firm will tabulate and review all bids received for the construction project, assist the City in evaluating bids, and recommend award of the contract. g. The Firm will incorporate all addenda into the contract documents and issue conformed sets. 6. Construction Phase Services: $5,000 Hourly a. The Firm shall attend the preconstruction conference. b. The Firm shall visit the project site at requested intervals as construction proceeds to observe and report on progress. c. As requested by the City, the Firm shall provide necessary interpretations and clarifications of contract documents, review change orders, and make recommendations as to the acceptability of the work. 7. Easement Separate Instruments: The Firm’s Surveyor shall prepare documents to be used to obtain permanent and/or temporary easements required to construct the improvements. The Firm shall assist the Client with normal coordination of the easement process but is not responsible for negotiating, securing or executing any part of the easement(s). Additional easements will be considered Additional Services. $1,500 each, scope to be determined. 8. Right-of-Way: The Firm’s Surveyor shall prepare documents to be used to obtain right-of-way required to construct the improvements. The Firm shall assist the Client with normal coordination of the ROW acquisition process but is not responsible for negotiating, securing or executing any part of the ROW(s). $TBD, scope to be determined. Initials _______ _______ Page 5 of 9 (FIRM) (CLIENT) SUMMARY: 1. Conceptual Design Package and Data Collection $ 14,800 2. Survey Services $ 23,200 3. Preliminary Design and Specifications $ 35,800 4. Final Design and Construction Documents $ 17,900 5. Bid Phase Support Services hourly estimate $ 2,500 6. Construction Phase Services hourly estimate $ 5,000 Total Estimated Fee: $ 99,200 7. Easements each $ 1,500 8. Right-of-Way if needed $ TBD Reimbursable budget estimate: As Incurred The Client will pay all Impact fees, FEMA fees, submittal fees, and all other fees and taxes. The Firm will provide the professional services listed above in accordance with local requirements and per the Client’s instructions within the legal and ethical obligations as described in The State of Texas, Texas Engineering Practice Act and Rules Concerning the Practice of Engineering and Professional Engineering Licensure (latest edition). This scope of services contract does not imply or guarantee acceptance by governing agencies or municipalities. Accepted for CLIENT Accepted for SHIELD ENGINEERING GROUP, PLLC By: By: Name: Name: Craig H. Barnes Title: Title: President Date: Date: Initials _______ _______ Page 6 of 9 (FIRM) (CLIENT) Exclusions and Additional Services: This proposal was prepared based on information provided by the Client and the conditions known to Shield Engineering Group, PLLC at the time of preparing this proposal. Tasks not included in the scope will be considered Additional Services. If the Engineer is requested to become involved with any of the following items, the Firm will be pleased to provide them for additional fees to be determined at that time. Additional Services include any services not listed above and all other special or miscellaneous services specifically authorized by the Client. Authorized Additional Services shall be billed in accordance with the attached Hourly Rate Schedule or for a prenegotiated lump sum fee approved by the Client. The following is an example of services which will be considered additional or excluded: Bidding Phase Services beyond those listed above. Construction Phase Services beyond those listed above. Subsurface Utility Engineering (SUE) Franchise Utility Relocation Coordination and Offsite Franchise Utility Coordination Traffic Analysis, Parking Flow Study, Signal Warrant Study Studies: Line of Sight, Water, Sanitary Sewer, Traffic, Flood Special Use Permits for Oil and Gas Coordination Survey (beyond those listed above): As-Built Survey/ALTA Survey, Boundary Title Search, Vacation Instruments, Additional Closing Exhibits and Legal Descriptions, Grade Certification, Rail Certification, or any other surveying services beyond those listed above Demolition Plan City Encroachment Agreements TxDOT Driveway/Utility Permit, Design and Details Water Appropriations, FAA, TxDOT, TRA, Railroad, Driveway Landscape architecture and irrigation system design Environmental Waters of the US/Wetland permits LOMR, CLOMR, Design of pump house, fire alarms, flow test(s) and/or ground storage tank for fire protection system design Design of retaining walls, screening walls, detached structures, special brick paved areas, etc. Design of offsite spoil/borrow area for excavation material Geotechnical Investigations, Material Testing and Inspection Services Coordination of Building Permit Processing and TDLR Review shall be provided by Architect or a third-party reviewer. This includes review of the latest edition of the Texas Accessibility Standards (TAS). Services of Special Consultants Initials _______ _______ Page 7 of 9 (FIRM) (CLIENT) TERMS AND CONDITIONS 1. AUTHORIZATION TO PROCEED: Signing this Agreement shall be construed as authorization by CLIENT for the FIRM to proceed with the Services, unless otherwise provided for in this Agreement. 2. ACCESS TO SITE: Unless otherwise stated, the Firm will have access to the site for activities necessary for the performance of the services. 3. COST ESTIMATES: Any cost estimates provided will be on a basis of experience and judgment. Since the FIRM has no control ov er market conditions or bidding procedures, the FIRM does not warrant that bids or ultimate construction costs will not vary from these cost estimates. 4. ADDITIONAL SERVICES: Services in addition to those specified in Scope will be provided if authorized in writing by CLIENT. Additional services will be paid for by CLIENT as indicated in any Letter of Proposal, Task Authorization, or such other document as deemed appropriate by CLIENT and FIRM. In the absence of an express agreement about compensation, the FIRM shall be entitled to an equitable adjustment to its compensation for performing such additional services. 5. STANDARD OF CARE: In providing services under this Agreement, the Consultant shall perform in a manner consistent with that degree of care and skill ordinarily exercised by members of the same profession currently practicing under similar circumstances at the same time and in the same or similar locality. Upon notice to the FIRM and by mutual agreement between the parties, the FIRM will, without additional compensation, correct those services not meeting such a standard. 6. INDEMNIFICATION: FIRM SHALL INDEMNIFY AND HOLD HARMLESS CLIENT, ITS OFFICERS, OFFICIALS, AGENTS AND EMPLOYEES, IN THEIR INDIVIDUAL AND OFFICIAL CAPACITIES, FROM ANY LOSS, DAMAGES, LIABILITY OR EXPENSE ON ACCOUNT OF DAMAGE TO PROPERTY AND/OR INJURIES (INCLUDING DEATH) TO ANY PERSON OR PERSONS, INCLUDING OFFICERS, EMPLOYEES OR AGENTS OF FIRM, WHICH ARE CAUSED BY ANY NEGLIGENT ERROR, OMISSION, DEFECT, OR DEFICIENCY IN THE PERFORMANCE OF FIRM'S PROFESSIONAL SERVICES OR IN THE NEGLIGENT PREPARATION OF DESIGNS, WORKING DRAWINGS, SPECIFICATIONS OR OTHER ENGINEERING DOCUMENTS INCORPORATED INTO ANY IMPROVEMENTS CONSTRUCTED IN ACCORDANCE HEREWITH. FIRM SHALL PAY ALL EXPENSES (INCLUDING REIMBURSEMENT OF REASONABLE ATTORNEY'S FEES AND COSTS OF COURT IN PROPORTION TO ENGINEER’S LIABILITY) AND SATISFY ALL JUDGMENTS WHICH MAY BE INCURRED BY OR RENDERED AGAINST CLIENT OR ITS OFFICERS, OFFICIALS, AGENTS OR EMPLOYEES IN CONNECTION HEREWITH; PROVIDING AND EXCEPT, HOWEVER, THAT THIS INDEMNITY PROVISION SHALL NOT BE CONSTRUED AS REQUIRING ENGINEER TO INDEMNIFY OR HOLD HARMLESS CLIENT, ITS OFFICERS, OFFICIALS, AGENTS, OR EMPLOYEES FROM LOSS, DAMAGES, LIABILITY OR EXPENSE ON ACCOUNT OF DEFECTS OR DEFICIENCIES IN DESIGN CRITERIA AND INFORMATION FURNISHED TO FIRM BY CLIENT AND WHICH FIRM COULD NOT DISCOVER BY THE EXERCISE OF REASONABLE DILIGENCE. IT IS UNDERSTOOD AND AGREED BY BOTH PARTIES TO THIS AGREEMENT THAT THE FIRST TEN DOLLARS ($10.00) OF REMUNERATION PAID TO FIRM UNDER THIS AGREEMENT SHALL BE IN CONSIDERATION FOR INDEMNITY/INDEMNIFICATION PROVIDED FOR IN THIS AGREEMENT. THIS SECTION WILL SURVIVE THE TERMINATION OF THIS AGREEMENT. 7. DISPUTE RESOLUTION: Any claims or disputes made during design, construction or post-construction between the CLIENT and FIRM shall be submitted to non-binding mediation, and any mediation must be conducted by a mutually agreed upon mediator located in Tarrant County, Texas. CLIENT and FIRM agree to include a similar mediation agreement with all contractors, subcontractors, sub-consultants, suppliers and fabricators, thereby providing for mediation as the primary method for dispute resolution between all parties. 8. PAYMENT TO FIRM: Invoices for the FIRM’s service shall be submitted to CLIENT on a monthly basis. The CLIENT shall either approve these invoices or notify the FIRM of any invoices not approved. The CLIENT and the FIRM shall confer and attempt to resolve such disputed invoices. The CLIENT shall pay the FIRM for all undisputed invoices 30 days after CLIENT receives the invoice. If Client has failed to pay an undisputed invoice after 45 days of CLIENT’s receipt of the invoice, FIRM may, without waiving any claim or right against the CLIENT, and without liability whatsoever to the CLIENT, terminate the performance of the servi ce. [Retainers/Deposits shall be credited on the final invoice.] 9. LATE PAYMENTS: Accounts unpaid 30 days after the invoice date may be subject to a monthly service charge of 1.5% (or the leg al rate) on the then unpaid balance. In the event any portion or all of an account remains unpaid 90 days after billing, the Client shall pay all costs of collection, including reasonable attorney’s fees. 10. TERMINATION: Either CLIENT or FIRM may terminate this Agreement by giving 30 days’ written notice to the other party. In such event CLIENT shall forthwith pay FIRM in full for all work previously authorized and performed prior to effective date of termination. FIRM, unless requested by CLIENT, is not authorized to perform any services after either party receives a notice of termination, and will not be paid for any such unauthorized work. If no notice of termination is given, relationships and obligations created by this Agreement shall be terminated upon completion of all applicable requirements of this Agreement. 11. CERTIFICATIONS: Guarantees and Warranties: The FIRM shall not be required to execute any document that would result in its certifying, guaranteei ng or warranting the existence of conditions whose existence the FIRM cannot ascertain. 12. OWNERSHIP OF DOCUMENTS: Upon FIRM’s completion of services and receipt of payment in full, or upon termination of this Agreement, FIRM shall grant to CLIENT a non-exclusive license to possess the final drawings and instruments produced in connection with FIRM’s performance of the work under this Agreement, if any. Said drawings and instruments may be copied, duplicated, reproduced and used by CLIENT for the purpose of constructing, operating and maintaining the improvements contemplated by this Agreement. CLIENT agrees that such documents are not intended or represented to be suitable for reuse by CLIENT or others for purposes outside the scope of this Agreement. Notwithstanding the foregoing, CLIENT understands and agrees that any and all computer programs, GIS applications, proprietary data or processes, and certain other items related to the services performable under this Agreement are and shall remain the sole and exclusive property of FIRM and may not be used or reused, in any form, by CLIENT without the express written authorization of FIRM. Client agrees that any reuse by CLIENT, or by those who obtain said information from or through CLIENT, without written verification or adaptation by FIRM, will be at CLIENT’s sole risk and without liability or legal exposure to FIRM or to FIRM’s employees, agents, representatives, officers, directors, affiliates, shareholders, owners, members, managers, attorneys, subsidiary entities, advisors, subconsultants or i ndependent contractors or associates. 13. SEVERABILITY: In case any one or more of the provisions contained in this Agreement shall be held illegal, the e nforceability of the remaining provisions contained herein shall not be impaired thereby 14. JOBSITE SAFETY: Neither the professional activities of the FIRM, nor the presence of the FIRM or its employees and subconsultant’s at a construction/project site, shall impose any duty on the FIRM, nor relieve the General Contractor of its obligations, duties and responsibilities including, but not limited to, construction means, methods, sequence, techniques or procedures necessary for performing, superintending and coordinating the Work in accordance with the Contract Documents and any health or safety precautions required by any regulatory agencies. The FIRM and its personnel have no authority to exercise any control over any construction contractor or its employees in connection with their work or any health or safety programs or procedures. 15. ENTIRE AGREEMENT: This Agreement represents the entire understanding of CLIENT and FIRM. No prior oral or written understandings shall be of any force or effect with respect to those matters covered herein. This Agreement may not be modified or altered except in writing signed by both parties. This Agreement constitutes, represents and is intended by the parties to be the complete and final statement and expression of all of the terms and arrangements between the parties to this Agreement with respect to the matters provided for in this Agreement. This Agreement supersedes any and all prior or contemporaneous agreements, understandings, negotiations, and discussions between the parties and all such matters are merged into this Agreement. 16. INSURANCE: FIRM shall, at its own expense, purchase, maintain and keep in force throughout the duration of this Agreement and for a period of four (4) years thereafter, professional liability insurance. The limits of liability shall be $1,000,000 per claim and in the aggregate. FIRM shall submit to the CLIENT a certificate of insurance prior to commencing any work for the CLIENT. 17. ASSIGNMENT: Neither the CLIENT nor FIRM may assign their rights or delegate their duties without the written consent of the other party. This Agreement is binding o n the parties to the fullest extent permitted by law. Nothing herein is to be construed as creating any personal liability on the part of any CLIENT officer, employee or agent. 18. JURISDICTION AND VENUE: This Agreement shall be administered under the substantive laws of the State of Texas (and not its conflicts of law principles) which shall be used to govern all matters arising out of, or relating to, this Agreement and all of the transactions it contemplates, including without limitation, its validity, interpretation, construction, performance and enforcement. Exclusive venue shall lie in any court of competent jurisdiction in Tarrant County, Texas. 19. ATTORNEY’S FEES: If it becomes necessary to take legal action to interpret or enforce the terms of this Agreement, the pr evailing party in such action shall be entitled to recover from the non-prevailing party, the prevailing party’s reasonable attorney’s fees and costs of court. Initials _______ _______ Page 8 of 9 (FIRM) (CLIENT) 2019 HOURLY RATE SCHEDULE Principal $235 Program Manager $200 Project Manager $180 Senior Professional Engineer $170 Professional Engineer $145 EIT II $115 EIT I $100 Senior Designer $125 Designer $100 CAD Drafter $85 Support $70 QA/QC $155 Senior RPLS $175 RPLS $155 GIS Specialist $135 Survey Technician $100 Party Chief $100 Survey Crew Member $55 Hourly Rate Schedule as of the date of this contract is subject to change without notice. Initials _______ _______ Page 9 of 9 (FIRM) (CLIENT) !!2 !!2 !!2 !!2 !!2 !!2 !!2 !!2 !!2 G!. G!.G!. G!.G!. G!. G!.G!. G!. G!. G!. G!. G!. G!. &É &É &É &É &É &É &É 1,212FT 423FT 670FT431FT 18" CMP 33"CMP6"SS8" SS6" SS6" SS6" SS6" SS8" WL 8" WL8" WL8" WL16"WL16" WL8"WL16" WL12" WL 6" WL16" WL6" WL16" WL6" WL 16" WL 2" WL12" WL12" WLLegend Water &É Valves G!.Fire Hydrants Mains Sanitary Sewer !!2 Manhole Gravity Mains Culvert Parcels Area of Interest A B C D Overlay Districts Floodplain Floodway 1% Annual Chance Flood Hazard 0.2% Annual Chance Flood Hazard 200 0 200100 US Feet LINDA ROAD (EXISTING 50' RIGHT-OF-WAY) UTILITY LOCATIONS L:\Jobs\2019033.01 Linda Road Improvments\Exhibits\GIS Layout\LindaRdImprovements\Created by: Shield Engineering Group, PLLC, Last Updated 8/22/2019 1:07 PM STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: DECISION ITEMS ITEM F. SUBJECT: Consider authorizing the City Manager to enter into an agreement with Shield Engineering Group for civil engineering services associated with roadway, water, sanitary sewer, and drainage improvements for Collett Sublet Road ORIGINATED BY: Larry Hoover, Public Works Director SUMMARY: The attached agreement would replace Collett Sublett Road (an existing ~20-foot-wide asphalt roadway with bar ditches along both sides contained within a 50-foot public right of way (ROW)) with a 28-foot back-to-back concrete roadway with a storm drainage system and curb inlets. The existing water line is an 8-inch asbestos line along the west side of the roadway, which would be abandoned and replaced with a 12-inch line. The existing sanitary sewer line is shown as a 6-inch PVC line along the west side of the roadway, which would be reviewed using CCTV and rehabilitated, based on the condition assessment of the pipe. There is a potential that this line will need to be relocated to meet State minimum separation standards between it and the waterline. Sidewalks are proposed along both sides of the roadway. The current Master Thoroughfare Plan from the 2012 Comprehensive Plan Update designates the future extension of Collett Sublett Road as an “Avenue” section contained within a 60-foot ROW with on-street parallel parking. However, these plans, as presented, would waive the on-street parking so that the improved roadway can be contained within the existing 50-foot ROW. The agreement provides services from design to completion of construction. Possible funding sources for this $87,700 project are the 2019 Tax Notes, the Stormwater Fund, the Water and Sewer Fund, or the Impact Fee Capital Improvement Fund. RECOMMENDATION: Approve ATTACHMENTS: 1.Collett Sublett Road Infrastructure Professional Services Agreeement (PSA) Collett Sublett Road Infrastructure Professional Services Agreeement (PSA).pdf 2.Collett Sublett Road Project Extents Collett Sublett Road Project Extents.pdf Initials _______ _______ Page 1 of 10 (FIRM) (CLIENT) AN AGREEMENT TO PROVIDE LIMITED PROFESSIONAL SERVICES PROJECT NAME: Collett Sublett Infrastructure Improvements PROJECT NO: 2019035.01 CLIENT: City of Kennedale, Attn: Larry Hoover ADDRESS: 405 Municipal Drive, Kennedale, TX 76060 hereby requests and authorizes Shield Engineering Group, PLLC (the Firm) to perform the following Services.: SCOPE: The city of Kennedale (Client, City or Owner) has identified roadway, drainage and utility improvements along Collett Sublett Road to be rehabilitated from Swiney Hiett Road north to the proposed Magnolia Hills subdivision approximately 1600 linear feet. The Firm understands Collett Sublett Road Improvements, located in Kennedale, Texas, to consist of civil engineering services associated with roadway, water, sanitary sewer and drainage rehabilitation improvements. The existing asphalt roadway is 20’+/- wide with bar ditches along both sides contained within a 50’ public ROW. This roadway is proposed to be replaced with 28’ back to back concrete roadway with a storm drainage system and curb inlets contained within the existing 50’ ROW. The existing water line is an 8” WL along the west side of the roadway. A new 8” water line is proposed to replace and abandon the existing 8” asbestos water pipe. The services will be reconnected to the new water line. The existing sanitary sewer line is shown as a 6” SS PVC along the west side of the roadway. This line will be reviewed using CCTV and rehabilitated based on the condition assessment of the pipe. This line may also need to be relocated due to the apparent proximity to the water line to meet State minimum separation standards. The sidewalks are proposed along both sides of the roadway. The Firm understands that the current City master thoroughfare plan from the 2012 Comprehensive Plan Update shows the future extension of Collett Sublett Road as an “Avenue” section in a 60’ ROW with on-street parallel parking. It is our understanding that the on-street parking will be waived by the City so that the proposed improvements can be contained within the existing 50’ ROW. Exhibits, as-built plans, and other miscellaneous services beyond this scope will be Additional Services and billed at the Hourly Rate Schedule provided with this scope. The Client shall either directly provide the following information or make the information available from one of the Client’s subconsultants including but not limited to: Geotechnical Report for pavement recommendation CCTV of SS Line for condition assessment Initials _______ _______ Page 2 of 10 (FIRM) (CLIENT) Basic Services: 1. Conceptual Design Package and Data Collection: $12,800 a. Site Visit: The Firm will visit the site one time to observe existing conditions. b. Plan Research: The Firm will gather available existing infrastructure plans adjacent to and serving the site to be used for the site civil design. Firm will research proposed improvements in conjunction with any other planned future improvements that may influence the project. c. Future Improvements: The Firm will research proposed improvements in conjunction with any other planned future improvements that may influence the project. d. Data Collection: The data collection efforts may include conducting special coordination meetings with affected property owners and businesses as necessary to develop rehabilitation plans. e. Conceptual Design Package: shall include the following. i. Graphic exhibits and written summary of alternative design concepts considered, strengths and weaknesses of each, and the rationale for selecting the recommended design concept. ii. Proposed phasing of any water, sanitary sewer, and pavement work that is included in this project. iii. Existing and proposed typical sections of the roadway to be constructed for the roadway including: existing and proposed ROW, existing and proposed lane widths, existing and proposed curbs, sidewalks, and retaining walls. It is assumed that the proposed roadway section will be reinforced concrete section as specified in the geotechnical report provided by the City or as directed by the City. iv. Conceptual plan and profile sheets showing existing and proposed horizontal roadway alignments, existing and proposed ROW, existing and proposed sidewalks and driveways, proposed lane dimensions, existing drainage structures, city owned and franchise utilities as determined by dig-tess, and existing roadway vertical alignments (profiles). f. Preliminary Opinion of Probable Costs: The Firm will prepare one Preliminary Opinion of Probable Cost using our recent bid tabs, or Client provided unit prices, however, in either case, the Client represents their acceptance of these prices by using the estimate provided. 2. Survey Services: $21,900 a. Topographic Design Survey: Perform on-the-ground design survey for the site (as defined above) to verify detailed information for engineering design. The Firm will provide topographic design survey which may include but is not limited to 1’ contour intervals, horizontal and vertical location of existing surface features such as water valves, fire hydrants, telephone poles, sanitary sewer manholes and flowline information, storm drain system structures and flowlines and pipe sizes, curbs, edge of pavement, retaining walls, power poles, dig-tess pin flags, creek cross sections, etc. b. Right-of-Way Research: The Firm shall determine rights-of-way and easements needed for construction of the project. Required temporary and permanent easements will be identified based on available information and recommendations will be made for approval by the City. c. Right of Entry: Prior to construction, the Firm’s Surveyor shall prepare Temporary Right of Entry documents for the City to use and obtain from landowners. It is assumed that letters will only Initials _______ _______ Page 3 of 10 (FIRM) (CLIENT) be required for land owners adjacent to temporary construction easements or who are directly affected by the project and no easement is required to enter their property. 3. Preliminary Design and Specifications: $30,300 a. Preliminary Design Drawings: The preliminary design drawings shall include: i. Project Control Sheet showing all control points used or set while gathering data, ii. Overall project easement layout, iii. Overall Water layout sheet, preliminary water plans and water profiles for waterlines 12” and larger, iv. Overall Sanitary Sewer layout sheets and preliminary sanitary sewer plan and profiles, v. Preliminary iSWM: The Firm will prepare a preliminary iSWM submittal per the City requirements. vi. Downstream Assessment: The Firm will provide a downstream assessment for the site. This assessment will include the current City Design Criteria and adopted iSWM standards. The intent of this modeling and design is to satisfy the “no adverse impact” criteria downstream. vii. Drainage area map and preliminary drainage plans – including hydraulic calculations and preliminary storm drain plan and profile, viii. Preliminary Roadway plan and profiles and typical roadway sections, ix. Preliminary details. b. Traffic Control Plan: The Firm will prepare a traffic control plan using City and MUTCD standards. c. Erosion Control Plan: The Firm will prepare an erosion control plan using City and TCEQ standards to be used with the contractor SWPPP. d. Preliminary Opinion of Probable Costs: The Firm will update the Preliminary Opinion of Probable Cost. e. Specifications: The Firm shall prepare draft specifications. 4. Final Design and Construction Documents: $15,200 a. SWPPP: For projects that disturb an area greater than one (1) acre, the Contractor will be responsible for preparing and submitting the Storm Water Pollution Prevention Plan (SWPPP) with appropriate regulatory agencies. b. Draft Final plans (90%) and specifications shall be submitted to City for final comments. c. Following a 90% construction plan review meeting with the City, the Firm shall submit Construction Documents (100%) to the City per the approved Project Schedule. Each plan sheet shall be stamped, dated, and signed by the engineer registered in State of Texas. d. The Firm shall submit a final design estimate of probable construction cost with 100% design package. 5. Bid Phase Support Services: $2,500 Hourly Initials _______ _______ Page 4 of 10 (FIRM) (CLIENT) a. The Firm shall sell (or transmit electronically at no cost) contract documents and maintain a plan holders list of Contractor’s and Plan Holder Registrations who have requested or purchased plans. b. The Firm will develop and implement procedures for receiving and answering bidders’ questions and requests for additional information. The procedures shall include a log of all significant bidders questions and requests and the response thereto. The Firm will provide technical interpretation of the contract bid documents and will prepare proposed responses to all bidders questions and requests, in the form of addenda. The Firm shall transmit all approved addenda distribute addenda to all plan holders. c. The Firm will attend the prebid conference in support of the City. d. The Firm will assist the City in determining the qualifications and acceptability of prospective contractors, subcontractors, and suppliers. e. The Firm will attend the bid opening in support of the City. f. The Firm will tabulate and review all bids received for the construction project, assist the City in evaluating bids, and recommend award of the contract. g. The Firm will incorporate all addenda into the contract documents and issue conformed sets. 6. Construction Phase Services: $5,000 Hourly a. The Firm shall attend the preconstruction conference. b. The Firm shall visit the project site at requested intervals as construction proceeds to observe and report on progress. c. As requested by the City, the Firm shall provide necessary interpretations and clarifications of contract documents, review change orders, and make recommendations as to the acceptability of the work. 7. Easement Separate Instruments: The Firm’s Surveyor shall prepare documents to be used to obtain permanent and/or temporary easements required to construct the improvements. The Firm shall assist the Client with normal coordination of the easement process but is not responsible for negotiating, securing or executing any part of the easement(s). Additional easements will be considered Additional Services. $1,500 each 8. Right-of-Way: The Firm’s Surveyor shall prepare documents to be used to obtain right-of-way required to construct the improvements. The Firm shall assist the Client with normal coordination of the easement process but is not responsible for negotiating, securing or executing any part of the easement(s). Additional easements will be considered Additional Services. TBD Initials _______ _______ Page 5 of 10 (FIRM) (CLIENT) SUMMARY: 1. Conceptual Design Package and Data Collection $ 12,800 2. Survey Services $ 21,900 3. Preliminary Design and Specifications $ 30,300 4. Final Design and Construction Documents $ 15,200 5. Bid Phase Support Services hourly estimate $ 2,500 6. Construction Phase Services hourly estimate $ 5,000 Total Estimated Fee: $ 87,700 7. Easements each $ 1,500 8. Right-of-Way if needed $ TBD Reimbursable budget estimate: As Incurred The Client will pay all Impact fees, FEMA fees, submittal fees, and all other fees and taxes. The Firm will provide the professional services listed above in accordance with local requirements and per the Client’s instructions within the legal and ethical obligations as described in The State of Texas, Texas Engineering Practice Act and Rules Concerning the Practice of Engineering and Professional Engineering Licensure (latest edition). This scope of services contract does not imply or guarantee acceptance by governing agencies or municipalities. Accepted for CLIENT Accepted for SHIELD ENGINEERING GROUP, PLLC By: By: Name: Name: Craig H. Barnes Title: Title: President Date: Date: Initials _______ _______ Page 6 of 10 (FIRM) (CLIENT) Exclusions and Additional Services: This proposal was prepared based on information provided by the Client and the conditions known to Shield Engineering Group, PLLC at the time of preparing this proposal. Tasks not included in the scope will be considered Additional Services. If the Engineer is requested to become involved with any of the following items, the Firm will be pleased to provide them for additional fees to be determined at that time. Additional Services include any services not listed above and all other special or miscellaneous services specifically authorized by the Client. Authorized Additional Services shall be billed in accordance with the attached Hourly Rate Schedule or for a prenegotiated lump sum fee approved by the Client. The following is an example of services which will be considered additional or excluded: Bidding Phase Services beyond those listed above. Construction Phase Services beyond those listed above. Subsurface Utility Engineering (SUE) Franchise Utility Relocation Coordination and Offsite Franchise Utility Coordination Traffic Analysis, Parking Flow Study, Signal Warrant Study Studies: Line of Sight, Water, Sanitary Sewer, Traffic, Flood Special Use Permits for Oil and Gas Coordination Survey (beyond those listed above): As-Built Survey/ALTA Survey, Boundary Title Search, Vacation Instruments, Additional Closing Exhibits and Legal Descriptions, Grade Certification, Rail Certification, or any other surveying services beyond those listed above Demolition Plan City Encroachment Agreements TxDOT Driveway/Utility Permit, Design and Details Water Appropriations, FAA, TxDOT, TRA, Railroad, Driveway Landscape architecture and irrigation system design Environmental Waters of the US/Wetland permits LOMR, CLOMR, Design of pump house, fire alarms, flow test(s) and/or ground storage tank for fire protection system design Design of retaining walls, screening walls, detached structures, special brick paved areas, etc. Design of offsite spoil/borrow area for excavation material Geotechnical Investigations, Material Testing and Inspection Services Coordination of Building Permit Processing and TDLR Review shall be provided by Architect or a third-party reviewer. This includes review of the latest edition of the Texas Accessibility Standards (TAS). Services of Special Consultants Initials _______ _______ Page 7 of 10 (FIRM) (CLIENT) TERMS AND CONDITIONS 1. AUTHORIZATION TO PROCEED: Signing this Agreement shall be construed as authorization by CLIENT for the FIRM to proceed with the Services, unless otherwise provided for in this Agreement. 2. ACCESS TO SITE: Unless otherwise stated, the Firm will have access to the site for activities necessary for the performance of the services. 3. COST ESTIMATES: Any cost estimates provided will be on a basis of experience and judgment. Since the FIRM has no control ov er market conditions or bidding procedures, the FIRM does not warrant that bids or ultimate construction costs will not vary from these cost estimates. 4. ADDITIONAL SERVICES: Services in addition to those specified in Scope will be provided if authorized in writing by CLIENT. Additional services will be paid for by CLIENT as indicated in any Letter of Proposal, Task Authorization, or such other document as deemed appropriate by CLIENT and FIRM. In the absence of an express agreement about compensation, the FIRM shall be entitled to an equitable adjustment to its compensation for performing such additional services. 5. STANDARD OF CARE: In providing services under this Agreement, the Consultant shall perform in a manner consistent with that degree of care and skill ordinarily exercised by members of the same profession currently practicing under similar circumstances at the same time and in the same or similar locality. Upon notice to the FIRM and by mutual agreement between the parties, the FIRM will, without additional compensation, correct those services not meeting such a standard. 6. INDEMNIFICATION: FIRM SHALL INDEMNIFY AND HOLD HARMLESS CLIENT, ITS OFFICERS, OFFICIALS, AGENTS AND EMPLOYEES, IN THEIR INDIVIDUAL AND OFFICIAL CAPACITIES, FROM ANY LOSS, DAMAGES, LIABILITY OR EXPENSE ON ACCOUNT OF DAMAGE TO PROPERTY AND/OR INJURIES (INCLUDING DEATH) TO ANY PERSON OR PERSONS, INCLUDING OFFICERS, EMPLOYEES OR AGENTS OF FIRM, WHICH ARE CAUSED BY ANY NEGLIGENT ERROR, OMISSION, DEFECT, OR DEFICIENCY IN THE PERFORMANCE OF FIRM'S PROFESSIONAL SERVICES OR IN THE NEGLIGENT PREPARATION OF DESIGNS, WORKING DRAWINGS, SPECIFICATIONS OR OTHER ENGINEERING DOCUMENTS INCORPORATED INTO ANY IMPROVEMENTS CONSTRUCTED IN ACCORDANCE HEREWITH. FIRM SHALL PAY ALL EXPENSES (INCLUDING REIMBURSEMENT OF REASONABLE ATTORNEY'S FEES AND COSTS OF COURT IN PROPORTION TO ENGINEER’S LIABILITY) AND SATISFY ALL JUDGMENTS WHICH MAY BE INCURRED BY OR RENDERED AGAINST CLIENT OR ITS OFFICERS, OFFICIALS, AGENTS OR EMPLOYEES IN CONNECTION HEREWITH; PROVIDING AND EXCEPT, HOWEVER, THAT THIS INDEMNITY PROVISION SHALL NOT BE CONSTRUED AS REQUIRING ENGINEER TO INDEMNIFY OR HOLD HARMLESS CLIENT, ITS OFFICERS, OFFICIALS, AGENTS, OR EMPLOYEES FROM LOSS, DAMAGES, LIABILITY OR EXPENSE ON ACCOUNT OF DEFECTS OR DEFICIENCIES IN DESIGN CRITERIA AND INFORMATION FURNISHED TO FIRM BY CLIENT AND WHICH FIRM COULD NOT DISCOVER BY THE EXERCISE OF REASONABLE DILIGENCE. IT IS UNDERSTOOD AND AGREED BY BOTH PARTIES TO THIS AGREEMENT THAT THE FIRST TEN DOLLARS ($10.00) OF REMUNERATION PAID TO FIRM UNDER THIS AGREEMENT SHALL BE IN CONSIDERATION FOR INDEMNITY/INDEMNIFICATION PROVIDED FOR IN THIS AGREEMENT. THIS SECTION WILL SURVIVE THE TERMINATION OF THIS AGREEMENT. 7. DISPUTE RESOLUTION: Any claims or disputes made during design, construction or post-construction between the CLIENT and FIRM shall be submitted to non-binding mediation, and any mediation must be conducted by a mutually agreed upon mediator located in Tarrant County, Texas. CLIENT and FIRM agree to include a similar mediation agreement with all contractors, subcontractors, sub-consultants, suppliers and fabricators, thereby providing for mediation as the primary method for dispute resolution between all parties. 8. PAYMENT TO FIRM: Invoices for the FIRM’s service shall be submitted to CLIENT on a monthly basis. The CLIENT shall either approve these invoices or notify the FIRM of any invoices not approved. The CLIENT and the FIRM shall confer and attempt to resolve such disputed invoices. The CLIENT shall pay the FIRM for all undisputed invoices 30 days after CLIENT receives the invoice. If Client has failed to pay an undisputed invoice after 45 days of CLIENT’s receipt of the invoice, FIRM may, without waiving any claim or right against the CLIENT, and without liability whatsoever to the CLIENT, terminate the performance of the servi ce. [Retainers/Deposits shall be credited on the final invoice.] 9. LATE PAYMENTS: Accounts unpaid 30 days after the invoice date may be subject to a monthly service charge of 1.5% (or the leg al rate) on the then unpaid balance. In the event any portion or all of an account remains unpaid 90 days after billing, the Client shall pay all costs of collection, including reasonable attorney’s fees. 10. TERMINATION: Either CLIENT or FIRM may terminate this Agreement by giving 30 days’ written notice to the other party. In such event CLIENT shall forthwith pay FIRM in full for all work previously authorized and performed prior to effective date of termination. FIRM, unless requested by CLIENT, is not authorized to perform any services after either party receives a notice of termination, and will not be paid for any such unauthorized work. If no notice of termination is given, relationships and obligations created by this Agreement shall be terminated upon completion of all applicable requirements of this Agreement. 11. CERTIFICATIONS: Guarantees and Warranties: The FIRM shall not be required to execute any document that would result in its certifying, guaranteei ng or warranting the existence of conditions whose existence the FIRM cannot ascertain. 12. OWNERSHIP OF DOCUMENTS: Upon FIRM’s completion of services and receipt of payment in full, or upon termination of this Agreement, FIRM shall grant to CLIENT a non-exclusive license to possess the final drawings and instruments produced in connection with FIRM’s performance of the work under this Agreement, if any. Said drawings and instruments may be copied, duplicated, reproduced and used by CLIENT for the purpose of constructing, operating and maintaining the improvements contemplated by this Agreement. CLIENT agrees that such documents are not intended or represented to be suitable for reuse by CLIENT or others for purposes outside the scope of this Agreement. Notwithstanding the foregoing, CLIENT understands and agrees that any and all computer programs, GIS applications, proprietary data or processes, and certain other items related to the services performable under this Agreement are and shall remain the sole and exclusive property of FIRM and may not be used or reused, in any form, by CLIENT without the express written authorization of FIRM. Client agrees that any reuse by CLIENT, or by those who obtain said information from or through CLIENT, without written verification or adaptation by FIRM, will be at CLIENT’s sole risk and without liability or legal exposure to FIRM or to FIRM’s employees, agents, representatives, officers, directors, affiliates, shareholders, owners, members, managers, attorneys, subsidiary entities, advisors, subconsultants or i ndependent contractors or associates. 13. SEVERABILITY: In case any one or more of the provisions contained in this Agreement shall be held illegal, the e nforceability of the remaining provisions contained herein shall not be impaired thereby 14. JOBSITE SAFETY: Neither the professional activities of the FIRM, nor the presence of the FIRM or its employees and subconsultant’s at a construction/project site, shall impose any duty on the FIRM, nor relieve the General Contractor of its obligations, duties and responsibilities including, but not limited to, construction means, methods, sequence, techniques or procedures necessary for performing, superintending and coordinating the Work in accordance with the Contract Documents and any health or safety precautions required by any regulatory agencies. The FIRM and its personnel have no authority to exercise any control over any construction contractor or its employees in connection with their work or any health or safety programs or procedures. 15. ENTIRE AGREEMENT: This Agreement represents the entire understanding of CLIENT and FIRM. No prior oral or written understandings shall be of any force or effect with respect to those matters covered herein. This Agreement may not be modified or altered except in writing signed by both parties. This Agreement constitutes, represents and is intended by the parties to be the complete and final statement and expression of all of the terms and arrangements between the parties to this Agreement with respect to the matters provided for in this Agreement. This Agreement supersedes any and all prior or contemporaneous agreements, understandings, negotiations, and discussions between the parties and all such matters are merged into this Agreement. 16. INSURANCE: FIRM shall, at its own expense, purchase, maintain and keep in force throughout the duration of this Agreement and for a period of four (4) years thereafter, professional liability insurance. The limits of liability shall be $1,000,000 per claim and in the aggregate. FIRM shall submit to the CLIENT a certificate of insurance prior to commencing any work for the CLIENT. 17. ASSIGNMENT: Neither the CLIENT nor FIRM may assign their rights or delegate their duties without the written consent of the other party. This Agreement is binding o n the parties to the fullest extent permitted by law. Nothing herein is to be construed as creating any personal liability on the part of any CLIENT officer, employee or agent. 18. JURISDICTION AND VENUE: This Agreement shall be administered under the substantive laws of the State of Texas (and not its conflicts of law principles) which shall be used to govern all matters arising out of, or relating to, this Agreement and all of the transactions it contemplates, including without limitation, its validity, interpretation, construction, performance and enforcement. Exclusive venue shall lie in any court of competent jurisdiction in Tarrant County, Texas. 19. ATTORNEY’S FEES: If it becomes necessary to take legal action to interpret or enforce the terms of this Agreement, the pr evailing party in such action shall be entitled to recover from the non-prevailing party, the prevailing party’s reasonable attorney’s fees and costs of court. Initials _______ _______ Page 8 of 10 (FIRM) (CLIENT) 2019 HOURLY RATE SCHEDULE Principal $235 Program Manager $200 Project Manager $180 Senior Professional Engineer $170 Professional Engineer $145 EIT II $115 EIT I $100 Senior Designer $125 Designer $100 CAD Drafter $85 Support $70 QA/QC $155 Senior RPLS $175 RPLS $155 GIS Specialist $135 Survey Technician $100 Party Chief $100 Survey Crew Member $55 Hourly Rate Schedule as of the date of this contract is subject to change without notice. Initials _______ _______ Page 9 of 10 (FIRM) (CLIENT) Initials _______ _______ Page 10 of 10 (FIRM) (CLIENT) !!2 !!2 !!2!!2 !!2 !!2 !!2!!2 !!2 !!2 !!2!!2!!2 !!2 !!2 !!2!!2 !!2 !!2 !!2 !!2 &É &É &É &É &É &É &É &É&É &É &É &É &É &É &É &É &É &É &É &É &É &É &É G!.G!. G!. G!. G!. G!.G!.G!.G!. G!. G!. G!. G!.G!. G!. G!. G!. G!. G!. G!.1,584FT18" RCP18"RCP24" RCP 6" SS 6" SS6 "S S 8"SS12" SS8" SS 6" SS6" SS 12" SS 12" SS 6"SS 8"SS8" SS 8" SS 6" SS6" SS 8" SS 6" SS8" WL8" WL 8" WL8"WL8"WL8" WL8" WL 8" WL8" WL 8" WL8" WL 8" WL 8" WL12" WL 8" WL8" WL8" WLLegend Water &É Valves G!.Fire Hydrants Mains Parcels Sanitary Sewer !!2 Manhole Gravity Mains Culvert Area of Interest 200 0 200100 US Feet COLLETT SUBLETT ROAD (EXISTING 50' RIGHT-OF-WAY) UTILITY LOCATIONS L:\Jobs\2019XXX.01 Collett Sublett Road Improvments\Exhibits\GIS Layout\CollettSublettRdImprovements\Created by: Shield Engineering Group, PLLC, Last Updated 8/21/2019 6:08 PM STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: DECISION ITEMS ITEM G. SUBJECT: Consider authorizing the City Manager to enter into an agreement with Shield Engineering Group for civil engineering services associated with approximately 600 linear feet of roadway for Trent Street ORIGINATED BY: Larry Hoover, Public Works Director SUMMARY: This project would connect Trent Street to Kennedale Parkway (Business 287), which is necessary as a second point of access for the Oak Crest area of Valley Lane, Trent Street, and Grapevine Trail as there are plans to address the erosion issues on Valley Lane in the coming months. (Staff is currently in discussions with another engineering firm to address the erosion issues and expects to receive a proposed contract for that work later this month.) The next significant rain event could leave this area without access if the existing roadway is further eroded. The attached agreement provides for civil engineering services to design and complete construction — within a 50- foot right of way (ROW) — of a County-designed and City-approved 30-foot edge-to-edge asphalt roadway of approximately 600 linear feet, including all documents necessary for ROW acquisition. The road will require TxDOT permitting for the connection to Kennedale Parkway (Business 287), and Shield will act as the City’s representative to obtain any necessary permits and submit required plans to TxDOT. Possible funding sources for this $59,400 project are the 2019 Tax Notes or the Stormwater Fund. RECOMMENDATION: Approve ATTACHMENTS: 1.Trent Street Professional Services Agreement (PSA) Trent Street Professional Services Agreement (PSA)_2.pdf 2.Trent Street Preliminary Opinion of Profitable Cost Trent Street Preliminary Opinion of Profitable Cost.pdf 3.Trent Street Proposed Connection Trent Street Proposed Connection.pdf Initials _______ _______ Page 7 of 10 (FIRM) (CLIENT) TERMS AND CONDITIONS 1. AUTHORIZATION TO PROCEED: Signing this Agreement shall be construed as authorization by CLIENT for the FIRM to proceed with the Services, unless otherwise provided for in this Agreement. 2. ACCESS TO SITE: Unless otherwise stated, the Firm will have access to the site for activities necessary for the performance of the services. 3. COST ESTIMATES: Any cost estimates provided will be on a basis of experience and judgment. Since the FIRM has no control ov er market conditions or bidding procedures, the FIRM does not warrant that bids or ultimate construction costs will not vary from these cost estimates. 4. ADDITIONAL SERVICES: Services in addition to those specified in Scope will be provided if authorized in writing by CLIENT. Additional services will be paid for by CLIENT as indicated in any Letter of Proposal, Task Authorization, or such other document as deemed appropriate by CLIENT and FIRM. In the absence of an express agreement about compensation, the FIRM shall be entitled to an equitable adjustment to its compensation for performing such additional services. 5. STANDARD OF CARE: In providing services under this Agreement, the Consultant shall perform in a manner consistent with that degree of care and skill ordinarily exercised by members of the same profession currently practicing under similar circumstances at the same time and in the same or similar locality. Upon notice to the FIRM and by mutual agreement between the parties, the FIRM will, without additional compensation, correct those services not meeting such a standard. 6. INDEMNIFICATION: FIRM SHALL INDEMNIFY AND HOLD HARMLESS CLIENT, ITS OFFICERS, OFFICIALS, AGENTS AND EMPLOYEES, IN THEIR INDIVIDUAL AND OFFICIAL CAPACITIES, FROM ANY LOSS, DAMAGES, LIABILITY OR EXPENSE ON ACCOUNT OF DAMAGE TO PROPERTY AND/OR INJURIES (INCLUDING DEATH) TO ANY PERSON OR PERSONS, INCLUDING OFFICERS, EMPLOYEES OR AGENTS OF FIRM, WHICH ARE CAUSED BY ANY NEGLIGENT ERROR, OMISSION, DEFECT, OR DEFICIENCY IN THE PERFORMANCE OF FIRM'S PROFESSIONAL SERVICES OR IN THE NEGLIGENT PREPARATION OF DESIGNS, WORKING DRAWINGS, SPECIFICATIONS OR OTHER ENGINEERING DOCUMENTS INCORPORATED INTO ANY IMPROVEMENTS CONSTRUCTED IN ACCORDANCE HEREWITH. FIRM SHALL PAY ALL EXPENSES (INCLUDING REIMBURSEMENT OF REASONABLE ATTORNEY'S FEES AND COSTS OF COURT IN PROPORTION TO ENGINEER’S LIABILITY) AND SATISFY ALL JUDGMENTS WHICH MAY BE INCURRED BY OR RENDERED AGAINST CLIENT OR ITS OFFICERS, OFFICIALS, AGENTS OR EMPLOYEES IN CONNECTION HEREWITH; PROVIDING AND EXCEPT, HOWEVER, THAT THIS INDEMNITY PROVISION SHALL NOT BE CONSTRUED AS REQUIRING ENGINEER TO INDEMNIFY OR HOLD HARMLESS CLIENT, ITS OFFICERS, OFFICIALS, AGENTS, OR EMPLOYEES FROM LOSS, DAMAGES, LIABILITY OR EXPENSE ON ACCOUNT OF DEFECTS OR DEFICIENCIES IN DESIGN CRITERIA AND INFORMATION FURNISHED TO FIRM BY CLIENT AND WHICH FIRM COULD NOT DISCOVER BY THE EXERCISE OF REASONABLE DILIGENCE. IT IS UNDERSTOOD AND AGREED BY BOTH PARTIES TO THIS AGREEMENT THAT THE FIRST TEN DOLLARS ($10.00) OF REMUNERATION PAID TO FIRM UNDER THIS AGREEMENT SHALL BE IN CONSIDERATION FOR INDEMNITY/INDEMNIFICATION PROVIDED FOR IN THIS AGREEMENT. THIS SECTION WILL SURVIVE THE TERMINATION OF THIS AGREEMENT. 7. DISPUTE RESOLUTION: Any claims or disputes made during design, construction or post-construction between the CLIENT and FIRM shall be submitted to non-binding mediation, and any mediation must be conducted by a mutually agreed upon mediator located in Tarrant County, Texas. CLIENT and FIRM agree to include a similar mediation agreement with all contractors, subcontractors, sub-consultants, suppliers and fabricators, thereby providing for mediation as the primary method for dispute resolution between all parties. 8. PAYMENT TO FIRM: Invoices for the FIRM’s service shall be submitted to CLIENT on a monthly basis. The CLIENT shall either approve these invoices or notify the FIRM of any invoices not approved. The CLIENT and the FIRM shall confer and attempt to resolve such disputed invoices. The CLIENT shall pay the FIRM for all undisputed invoices 30 days after CLIENT receives the invoice. If Client has failed to pay an undisputed invoice after 45 days of CLIENT’s receipt of the invoice, FIRM may, without waiving any claim or right against the CLIENT, and without liability whatsoever to the CLIENT, terminate the performance of the servi ce. [Retainers/Deposits shall be credited on the final invoice.] 9. LATE PAYMENTS: Accounts unpaid 30 days after the invoice date may be subject to a monthly service charge of 1.5% (or the leg al rate) on the then unpaid balance. In the event any portion or all of an account remains unpaid 90 days after billing, the Client shall pay all costs of collection, including reasonable attorney’s fees. 10. TERMINATION: Either CLIENT or FIRM may terminate this Agreement by giving 30 days’ written notice to the other party. In such event CLIENT shall forthwith pay FIRM in full for all work previously authorized and performed prior to effective date of termination. FIRM, unless requested by CLIENT, is not authorized to perform any services after either party receives a notice of termination, and will not be paid for any such unauthorized work. If no notice of termination is given, relationships and obligations created by this Agreement shall be terminated upon completion of all applicable requirements of this Agreement. 11. CERTIFICATIONS: Guarantees and Warranties: The FIRM shall not be required to execute any document that would result in its certifying, guaranteei ng or warranting the existence of conditions whose existence the FIRM cannot ascertain. 12. OWNERSHIP OF DOCUMENTS: Upon FIRM’s completion of services and receipt of payment in full, or upon termination of this Agreement, FIRM shall grant to CLIENT a non-exclusive license to possess the final drawings and instruments produced in connection with FIRM’s performance of the work under this Agreement, if any. Said drawings and instruments may be copied, duplicated, reproduced and used by CLIENT for the purpose of constructing, operating and maintaining the improvements contemplated by this Agreement. CLIENT agrees that such documents are not intended or represented to be suitable for reuse by CLIENT or others for purposes outside the scope of this Agreement. Notwithstanding the foregoing, CLIENT understands and agrees that any and all computer programs, GIS applications, proprietary data or processes, and certain other items related to the services performable under this Agreement are and shall remain the sole and exclusive property of FIRM and may not be used or reused, in any form, by CLIENT without the express written authorization of FIRM. Client agrees that any reuse by CLIENT, or by those who obtain said information from or through CLIENT, without written verification or adaptation by FIRM, will be at CLIENT’s sole risk and without liability or legal exposure to FIRM or to FIRM’s employees, agents, representatives, officers, directors, affiliates, shareholders, owners, members, managers, attorneys, subsidiary entities, advisors, subconsultants or i ndependent contractors or associates. 13. SEVERABILITY: In case any one or more of the provisions contained in this Agreement shall be held illegal, the e nforceability of the remaining provisions contained herein shall not be impaired thereby 14. JOBSITE SAFETY: Neither the professional activities of the FIRM, nor the presence of the FIRM or its employees and subconsultant’s at a construction/project site, shall impose any duty on the FIRM, nor relieve the General Contractor of its obligations, duties and responsibilities including, but not limited to, construction means, methods, sequence, techniques or procedures necessary for performing, superintending and coordinating the Work in accordance with the Contract Documents and any health or safety precautions required by any regulatory agencies. The FIRM and its personnel have no authority to exercise any control over any construction contractor or its employees in connection with their work or any health or safety programs or procedures. 15. ENTIRE AGREEMENT: This Agreement represents the entire understanding of CLIENT and FIRM. No prior oral or written understandings shall be of any force or effect with respect to those matters covered herein. This Agreement may not be modified or altered except in writing signed by both parties. This Agreement constitutes, represents and is intended by the parties to be the complete and final statement and expression of all of the terms and arrangements between the parties to this Agreement with respect to the matters provided for in this Agreement. This Agreement supersedes any and all prior or contemporaneous agreements, understandings, negotiations, and discussions between the parties and all such matters are merged into this Agreement. 16. INSURANCE: FIRM shall, at its own expense, purchase, maintain and keep in force throughout the duration of this Agreement and for a period of four (4) years thereafter, professional liability insurance. The limits of liability shall be $1,000,000 per claim and in the aggregate. FIRM shall submit to the CLIENT a certificate of insurance prior to commencing any work for the CLIENT. 17. ASSIGNMENT: Neither the CLIENT nor FIRM may assign their rights or delegate their duties without the written consent of the other party. This Agreement is binding o n the parties to the fullest extent permitted by law. Nothing herein is to be construed as creating any personal liability on the part of any CLIENT officer, employee or agent. 18. JURISDICTION AND VENUE: This Agreement shall be administered under the substantive laws of the State of Texas (and not its conflicts of law principles) which shall be used to govern all matters arising out of, or relating to, this Agreement and all of the transactions it contemplates, including without limitation, its validity, interpretation, construction, performance and enforcement. Exclusive venue shall lie in any court of competent jurisdiction in Tarrant County, Texas. 19. ATTORNEY’S FEES: If it becomes necessary to take legal action to interpret or enforce the terms of this Agreement, the pr evailing party in such action shall be entitled to recover from the non-prevailing party, the prevailing party’s reasonable attorney’s fees and costs of court. 2019025.01 Project Name Trent Street City: Kennedale June 26, 2019 BIDLIST ITEM # DESCRIPTION UNIT QTY PRICE AMOUNT 1 Removal & Disposal of Conc Pvmt SY 222 45.00$ 9,990.00$ 2 SWPPP 1 acre LS 1 3,000.00$ 3,000.00$ 3 10" Pulverization SY 1376 7.00$ 9,630.59$ 4 4" Asphalt Base Type B SY 1376 26.00$ 35,770.75$ 5 3" Ashpalt Pvmt Type C SY 1376 17.00$ 23,388.56$ 6 ADA Ramp EA 2 2,800.00$ 5,600.00$ 7 4" Solid White Thermoplastic (HAS) Lane LF 1150 5.00$ 5,750.00$ 8 4" Yellow Center Stripe LF 575 5.00$ 2,875.00$ 9 Traffic Control MO 1 7,333.33$ 7,333.33$ 10 24" RCP LF 40 125.00$ 5,000.00$ 11 24" Type "B" HDWL EA 2 3,000.00$ 6,000.00$ 12 8" Reinf Conc Pvmt SY 201 89.00$ 17,906.99$ 114,338.23$ PRELIMINARY OPINION OF PROBABLE COST DATE: SHIELD PROJECT NO.: TOTAL CONSTRUCTION COST SHIELD ENGINEERING GROUP, PLLC 1600 W 7th STREET SUITE 200, FORT WORTH, TEXAS 76102 PHONE NO. (817) 810-0696 CONSTRUCTION COSTS L:\Jobs\2019025.01 Trent Street\Calcs\QTO-POOPC\2019025.01 Trent Street POOPC.xlsx LOT 4R2LOT 4R1LOT 6VALLEY LANEGRAPEVINE LANEWEST KENNEDALE PARKWAY LOT 3BLOT DLOT 4APENNINGTON FAMILY LP INC801 W KENNEDALE PKWYKENNEDALE TX, 76060INST. NO. D213182500LOT 4SHANDALE LLC805 W KENNEDALE PKWYkENNEFALE TX, 76060INST. NO. D212255379LOT 1 THRU 3RHIMA LINDA811 W KENNEDALE PKWY.KENNEDALE TX, 76060INST. NO. D212041786PROPOSED TRENTSTREET CONNECTIONROADTRENT STREETGRAPEVINETRAILVALLEY LANE250 'MINIMUM DESIGNED: ___DRAWN: ___SCALE:DATE:JUN 2019SHEET: 1 OF 1TRENT STREET CONSTRUCTIONCOPYRIGHT ©2017 BY SHIELD ENGINEERING GROUP PLLC. TBPE F-11039 & TBPLS 10193890CITY OF KENNEDALE, TEXASPUBLIC WORKSTRENT STREET CONSTRUCTIONN0GRAPHIC SCALE IN FEET300200100 STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL DATE: September 17, 2019 AGENDA ITEM: EXECUTIVE SESSION ITEM A. SUBJECT: Discussion with the City Attorney regarding salvage yards, including A&A Pickup & Van, Inc., and special exception/special use permits ORIGINATED BY: SUMMARY: RECOMMENDATION: ATTACHMENTS: