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01.08.2004 CC Minutes2974 MINUTES KENNEDALE CITY COUNCIL REGULAR MEETING -JANUARY 8, 2004 405 MUNICIPAL DR. - KENNEDALE MUNICIl'AL BLDG. Mayor Wright called the meeting to order at 5:30 p.m. Members present: Mayor Wright, Council Members Clark, Mitchell, Barrett, Vaughn, and Kovach. Members absent: None Staff present: David Miller, City Manager; Margaret Eichelberger, Assistant to City Manager; Kathy Turner, City Secretary, Li Jen Lee, Director of Finance; Don Burns, Director of Public Works; Jim Rutledge, Police Chief; Dan Dittfurth, Fire Chief; and legal counsel, Wayne K. Olson. I. WORK SESSION A. DISCUSSION REGARDING THE FOLLOWING MATTERS: 1. Water supply with City Engineer, Cheatham and Associates, Inc. City Engineer, Eddie Cheatham spoke to Council regarding the 5-year Capital Improvement Plan. He referred to the 2004-2009 CIP Program and recommended the City run a 16" diameter water line from Pennsylvania Avenue to Highway 287 for an emergency connection with the City of Arlington, and place a new well and storage tank in the Swiney-Hiett area for a proposed 2.2 Million costs. It was also noted that with the city's current growth, a new well would only get the city by for another two to three years, and eventually the city would need to phase out the wells and go to surface water. 2. Financing options with Bond Counsel, Boyd London. Mr. Boyd London with First Southwest addressed Council regarding finance options for long term projects. He spoke of Certificate of Obligations, which are general obligation bonds that are issued without a vote, and are payable as a combination, tax and revenue. Property tax can be levied to pay the bond, water/sewer revenues can be used or a combination of both can be used. Second option is to fund a project through water/sewer revenues, which are only payable through those revenues. He noted that the City already had a SIB loan and a portion of revenues were already dedicated for this type of bond, which would be paid off in six to eight years. It was suggested that a workshop be scheduled to review more accurate cost estimates, which is to include the emergency connection, well and storage tank on Swiney Hiett, and storage on Little School Road. 2975 In closing, Mr. London suggested that the city hire an outside consultant to do a water/sewer rate study to ensure that each class of customer is paying what they need to be paying in terms of costs to the system. 3. Banner signs. Director of Public Works, Don Burns addressed Council with a request that he had received regarding banner signs. Mr. Burns said that due to the construction, business has dropped considerably, and business owners were requesting banners be used longer than the code allowed to attract customers. It was suggested to let those businesses in the Highway 287 Overlay that are affected by the highway widening to place banners through December 2004, as long as the banners met other existing codes. 4. Any other item on the agenda. City Manager, David Miller addressed the proposed rate study and said the $15,000 fee would be paid from the utility fund. Director of Finance said monies were available as replacement personnel would be hired at a lower cost, and it would not adversely impact the budget. David Mayes with Cheatham and Associates recommended that the 30"' Year Community Development Block Grant be a continuation of the 29"' Year CDBG. This would include the continuation of water line/fire hydrant installation in the Oak Crest Addition with an estimated cost of $171,882. Funds available include 29`" Year CDBG contingency of $26,882, City designated funds of $40,000, and projected estimated cost of $105,000. City Attorney, Wayne Olson addressed the Tarrant County Emergency Services contract. He said that overall the contract was okay, however one issue needed to be addressed. He suggested that both parties make a finding that a reciprocal operation would be mutually beneficial and not detrimental to the district. Mr. Olson recommended that when a motion was made to approve the contract that this language be included in the motion. City Manager, David Miller provided Council a review of Mr. Franks' financial statement for the consideration of waiver to the impact fees. He addressed his concerns with Council granting a waiver, as it would set precedence. B. RECESS WORK SESSION TO ENTER INTO REGULAR SESSION Mayor Wright recessed the work session at 6:38 p.m. II. REGULAR SESSION A. RECONVENE AND CALL REGULAR SESSION TO ORDER Mayor Wright reconvened into regular session at 6:42 p.m. with all members present. 2976 B. EXECUTIVE SESSION Mayor Wright recessed the meeting at 7:12 p.m. to enter into executive session. The City Council met in closed session pursuant to Section 551.071 of the Texas Government Code for consultation with the City Attorney pertaining to any matter in which the duty of the City Attorney under the Texas Disciplinary Rules of Professional Conduct may conflict with the Open Meetings Act, including discussion on any item posted on the agenda and legal issues regarding amortization of nonconforming uses; reconstruction of Dick Price Road; and litigation, settlement offers, and/or claims regarding the following matters: a. H&A Land Corporation, d/b/a Showtime Cabaret v. City of Kennedale; Cause No. 402- CV-0458-Y b. Jerry Coyel v. City of Kennedale, Cause No. 236-193444-02 c. Police Department issues. d. County of Tarrant, Texas v. Jerry Coyel; Cause No. 348-185513-00 e. Wheeler's Motor Service v. Board of Adjustment; Cause No. 153-201934-03 f. Interlocal Agreement with City of Arlington. g. Refund of Roadway Assessment Fee C. RECONVENE INTO CITY COUNCIL CHAMBERS FOR REGULAR SESSION AND CONSIDER ACTION, IF ANY, ON ITEMS DISCUSSED IN EXECUTIVE SESSION. Mayor Wright reconvened into open session at 8:44 p.m. with no action taken on executive session items. D. INVOCATION AND PLEDGE OF ALLEGIANCE Council Member Barrett gave the invocation followed by the Pledge of Allegiance. E. VISITOR/CITIZENS FORUM No persons registered to speak. F. PUBLIC HEARING 1. To receive citizens' comments regarding projects to be funded under the Community Development Block Grant program. This grant program is generally limited to street, drainage, water or sewer improvements within the approved target area for the benefit of low to moderate-income neighborhoods. Projects will be identified for the 30"' Year CDBG with an estimated annual cost of $90,000 to $120,000. No persons registered to speak. G. CONSENT AGENDA 1. Approval of minutes: special meeting dated December 9, 2003, and regular meeting dated December 11, 2003. 2977 2. Consider approval of Contract 04-01 with Tarrant County Emergency Services District. 3. Consider approval to authorize Mayor to execute agreement with First Southwest Asset Management, Inc. to perform arbitrage rebate services. 4. Consider approval to authorize Mayor to execute engagement letter to perform utility rate study. 5. Consider selecting projects to be constructed and pledging funds for participating in the 30~' Year Community Development Block Grant (CDBG) Project with Tarrant County. 6. Consider approval to rent Senior Citizen Center to eligible Senior Citizens. 7. Consider assisting businesses in 287 Overlay District from Dick Price Road to Eden Road with signage through December 2004. Council Member Kovach requested items 2 and 4 be removed from consent agenda. Council Member Vaughn moved to approve consent agenda items 1, 3, 5, 6 and 7, second by Council member Kovach. Motion carried with all members voting in favor. H. REGULAR ITEMS 2. Consider approval of Contract 04-01 with Tarrant County Emergency Services District. Council Member Barrett moved to approve Contract 04-01 with Tarrant County Emergency Services District and to make a finding that a reciprocal operation would be mutually beneficial and not detrimental to the District. Council Member Kovach second the motion with all members voting favor. Motion carried. 4. Consider approval to authorize Mayor to execute engagement letter to perform utility rate study. Council Member Barrett moved to authorize the Mayor to execute the engagement letter with Carolyn Marshall to perform a utility rate study, second by Council Member Kovach. Motion carried unanimously. 8. Consider action on Mr. Bill Franks request for waiver of impact fees. Council Member Kovach moved to waive seventy-five percent (75%) of the impact fees, second by Council Member Mitchell. A brief discussion took place regarding the rational of granting aseventy-five percent (75%) waiver, and whether proper procedures were followed when notifying applicant of all fees due. It was noted that improvements had taken place to ensure that all fees were implemented in future building packets. All members voted in favor of the seventy-five percent (75%) waiver. Motion carried. 1 ~~ 2978 I. CITY MANAGER REPORT City Manager, David Miller spoke on the following: 1. Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting awarded to Director of Finance, Li Jen Lee; 2. Re-certification from the Texas Municipal Clerks Certification Program to City Secretary, Kathy Turner; 3. Administration providing van drivers for the Senior Citizens on field trips; 4. Christmas Tree drop off at City Park for recycling; 5. Fire Department delivered 113 Christmas gifts to area children through the Angel Tree program; 6. Police Department adopted a family for Christmas through Oak Crest Church; 7. Thanked Council Member Vaughn and City Staff for their efforts in the annual Christmas Tree Lighting ceremony; 8. Grants received for the Library, Police and Fire Departments exceeding $158,000; and 9. Retirement party for Linda Royster scheduled for January 16, 2004 after 26.5 years of service to the city. 10. Result of influx charge from the City of Arlington, the city is going to smoke test the old portion of the system, which will result in a $21,000 charge, and monies are available in this year's budget. J. MAYOR/COUNCIL REPORT/ANNOUNCEMENTS 1. Mayor Report/Announcements - No report/announcements. 2. Council Reports/Announcements It was requested that start and estimated completion dates be noted on monthly project report. K. ADJOURNMENT Council Member Clark moved to adjourn the meeting at 8:45 p.m., second by Council ~` ~me~nber Kovach. Motion carried. ~` = APPROVED: ~_~ /'~ ,vim ~- :. ~' ~ ~ try .,~' Mayor, Mark S. W ~ t FY 0. .~`P o Ka by Turner, City Secretary