Agenda Request

	City Council
	Agenda Request
Agenda Of:	October 03, 2006	Agenda Request No:		III I
Initiated By:	Glenda Gundermann, City Secretary	Responsible Department:		City Secretary
Presented By:	Glenda Gundermann, City Secretary	Department Head:		Glenda Gundermann, City Secretary
		Additional Department. Head (s):		N/A
Subject / Proceeding:	Minutes City Council Meeting september 19, 2006 Approve Minutes
Exhibits:	Minutes september 19, 2006
Clearances			Approval
Legal:	N/A		Executive Director:	N/A
Purchasing:	N/A		Asst. City Manager:	N/A
Budget:	N/A		City Manager:	Allen Bogard
Budget
Expenditure Required: $			N/A
Amount Budgeted/Reallocation: $			N/A
Additional Appropriation: $			N/A
Recommended Action
Approve minutes of the City Council meeting September 19, 2006.
Exhibits

STATE OF TEXAS	§
COUNTY OF FORT BEND	§
CITY OF SUGAR LAND	§

CITY OF SUGAR LAND

CITY COUNCIL REGULAR MEETING

tuesday, september 19, 2006

REGULAR MEETING

The City Council of the City of Sugar Land convened in a regular meeting open to the public and pursuant to notice thereof duly given in accordance with Chapter 551, Government Code, Vernon's Texas Codes, Annotated, as amended, in Sugar Land City Hall within said City on Tuesday, September 19, 2006 at 5:37 o'clock P.M. and the roll was called of the members; to wit:

David G. Wallace, Mayor

Thomas Abraham, Council Member at Large, Position One

Daniel O. Wong, Council Member at Large, Position Two

Dennis C. Parmer, Council Member District One

M. Cyril Hosley, Council Member District Two

Russell C. Jones, Council Member District Three

Michael S. Schiff, Council Member District Four

QUORUM PRESENT

All of said members were present with the exception of Mayor Wallace, who was absent.

Also present were:

Allen Bogard, City Manager

Grace Tamez, Assistant City Secretary

Joe Morris, City Attorney, and

A Number of Visitors

CONVENE MEETING

Mayor Pro Tem Cyril Hosley convened the session, open to the public, to order at 5:37 o’clock P.M.

INVOCATION

Council Member Thomas Abraham delivered the invocation.

PLEDGE OF ALLEGIANCE

Council Member Thomas Abraham led the pledge of allegiance to the Flag of the United States of America.

RECOGNITIONS

Mayor Pro Tem Hosley stated the representative of the Texas Gulf Coast Chapter of the Leukemia and Lymphoma Society was unable to attend the meeting, therefore, the recognition for Leukemia and Lymphoma Awareness Month has been postponed.

PUBLIC COMMENT

Mayor Pro Tem Hosley introduced Public Comment and entertained registered speakers. There were no public comments.

REVIEW OF CONSENT AGENDA

Mayor Pro Tem Hosley introduced Review of the Consent Agenda and entertained questions and/or comments.

CONSENT AGENDA

Mayor Pro Tem Hosley introduced consideration on III A) SECOND CONSIDERATION: CITY OF SUGAR LAND ORDINANCE NO. 1576 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, AMENDING CHAPTER 5 OF THE CODE OF ORDINANCES RELATING TO WASTEWATER SERVICE LINES FOR COMMERCIAL STRUCTURES; III B) Authorizing execution of a Water Supply Agreement by and between the City of Sugar Land and Fort Bend County Levee Improvement District 17 utilizing surface water for non potable water uses; III C) Authorizing execution of a Contract extension in the amount of $150,000.00 with S & C Construction for on-call services for street rehabilitation for the period October 1, 2006 through September 30, 2007; III D) Authorizing execution of a Contract in the amount of $297,718.00 with Bio-Landscape and Maintenance for landscape beautification maintenance; III E) Authorizing acceptance of a Houston Galveston Area Council Grant in the amount of $30,894.00 for a solid waste education campaign; III F) Authorizing execution of an Interlocal Agreement by and between the City of Sugar Land and the City of Richardson for cooperative purchasing opportunities; III G) Authorizing execution of a Contract extension in an amount not to exceed $47,000.00 with Gulfstream Graphics Corporation for printing services for Sugar Land Today community newsletters for the period October 01, 2006 through September 30, 2007; III H) Authorizing execution of a Contract in an amount not to exceed $69,708.00 with Landscape Professionals of Texas for facility landscape maintenance for the period September 23, 2006 through September 22, 2007; III i) Approval of the minutes of the regular meeting of September 05, 2006.

Following a full and complete discussion, Council MemberWong, seconded by Council Member Schiff, made a motion to approve the Consent Agenda. The motion carried unanimously.

DONATION TO PARKS

Mayor Pro Tem Hosley introduced acceptance of a donation of 100 five-gallon trees valued at $1,000.00 from Treesearch Farms and a Plainwell litter receptacle valued at $1,100.00 from Cathy Comeaux-Wright, sales representative of Landscape Forms.

Ms. Kimberly Terrell, Development Manager, stated Ms. Heidi Sheesley, owner of Treesearch Farms, has donated 100 five-gallon trees valued at $1,000.00 for Duhacsek Park. In addition, Ms. Cathy Comeaux-Wright, Landscape Forms, has donated a Plainwell Litter Receptacle valued at $1,100.00 for use outside the Parks and Recreation Senior Center.

Mayor Pro Tem Hosley expressed appreciation for the generous donations adding the Tomahawk District Boy Scout Troop 100 has volunteered to plant the trees with the assistance of the Coastal Prairie Master Naturalists.

Following a full and complete discussion, Council Member Parmer, seconded by Council Member Abraham, made a motion to accept donation of 100 five-gallon trees valued at $1,000.00 from Treesearch Farms and a Plainwell litter receptacle valued at $1,100.00 from Cathy Comeaux-Wright, sales representative of Landscape Forms. The motion carried unanimously.

AMEND ORDER OF AGENDA

Mayor Pro Tem Hosley stated the order of the Agenda would be amended to accommodate the Public Hearings at 6:00 o’clock P.M.

CONTRACTS AND AGREEMENTS

SUGAR MILL DRAINAGE STUDY

Mayor Pro Tem Hosley introduced a Contract in an amount not to exceed $157,600.00 with Costello, Incorporated for Sugar Mill drainage study.

Mr. Patrick Walsh, Interim City Engineer, stated previous drainage studies focusing on Ditch A-22 which bisects the Sugar Mill subdivision revealed evidence of inadequate capacity of the storm sewer system. Ponding at several locations exceeds standard criteria and the older design contributes to the possibility of trapped sheet flow for extended periods. The study recommended modification of the existing restrictor as well as construction of a new restrictor east of Eldridge Road.

The study to be completed by March 2007 will determine the size of the new restrictor and the feasibility of removal of the existing one and will be incorporated into the Master Drainage Plan. CIP funding has been provided for both the study and construction of the new restrictor in the summer of 2007. Staff proposes Costello, Inc. perform the study due to the firm’s familiarity with the watershed. Costello, Inc. was under contract by MUD 21 for modifications to the existing restrictor, however, no conflict of interest is perceived. The subdivision has experienced long standing issues unassociated with Ditch A-22 and this study is consistent with other authorized drainage studies such as the one done for Sugar Creek. Staff will coordinate with the HOA to publicize and hold the first public meeting in the next thirty days in order to solicit input from residents.

Following a full and complete discussion, Council Member Parmer, seconded by Council Member Wong, made a motion to approve a Contract in an amount not to exceed $157,600.00 with Costello, Incorporated for Sugar Mill drainage study. The motion carried unanimously.

ordinances and resolutions

ANNUAL BUDGET – FISCAL YEAR 2006 - 2007

Mayor Pro Tem Hosley introduced FIRST AND FINAL CONSIDERATION: CITY OF SUGAR LAND ORDINANCE NO. 1587 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, ADOPTING THE ANNUAL BUDGET FOR THE CITY OF SUGAR LAND, TEXAS, FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2006 AND ENDING SEPTEMBER 30, 2007, APPROPRIATING THE SUMS AS SET FORTH THEREIN, ADOPTING THE CAPITAL IMPROVEMENTS PROGRAM 2007 - 2011, AND ADOPTING A COMPENSATION PLAN.

Ms. Jennifer Brown, Assistant Fiscal Services Director, presented an overview stating the City Manager submitted a proposed budget on July 25^th which will be adopted by Ordinance September 26, 2006. The finalized budget totals $141.6 million representing a 2.6% increase over the fiscal year 2005/06 original budget, amended for the annexation of MUD113. The budget comprises three major areas: Operating with an 11.58% increase or $10.6 million over FY 2005/06; Component Units exhibited a decrease of almost 70% or $15.5 million; and, Capital Projects experienced a 37.22% increase or $8.5 million for a total increase of 2.62% or $3.6 million.

Budget changes include revisions to property tax revenues in the General Fund, Debt Service Fund and Drainage Fund to reflect the certified tax roll of $7.077 billion and proposed tax rate of $0.30655 per $100 valuation, which is a decrease of $0.01056 from the 2005 tax rate. Three grants are built into the final budget based on City Council approval, increasing revenues and expenditures by equal amounts for the STEP Grant ($99,000 in the General Fund), JAG Grant ($10,805 in PD Trust Fund) and HGAC Grant ($30,894 in Solid Waste Fund). The airport fund has been revised to reflect updated fuel revenue and expense estimates. Although there is no total budget impact, several funds have been updated to reflect recent organizational changes.

The recommended five-year capital improvement program for fiscal year 2008 to 2011 is for planning purposes and are not appropriated unless included in the annual budget for each year approved by City Council. The five- year CIP totals $183.7 million. Funding is incorporated into the proposed budget for all capital projects including moving the Eldridge Park Trail Extension project up one year with design budgeted in fiscal year 2006-07. Council Members discussed the phasing of Sugar Creek drainage improvements to include flow monitors, the proposed Animal Control facility, establishment of emergency power for City facilities and additional fuel capacity and staff will provide additional information to facilitate future policy decisions. The final compensation plan reflects organizational and title changes, new positions added in the fiscal year 2006-2007 budget and the recommendations of the public safety compensation study.

Mayor Pro Tem Hosley brought to Council’s attention that the budget includes $700,000 for a new Animal Control Facility and there will be many more opportunities to make suggestions or changes on that item.

Mayor Pro Tem Hosley was pleased to announce the budget lowers the tax rate while increasing services noting the Police Department stands fully staffed, considered exceptional due to competition with other communities and speaks well for the City. Staff was commended on an excellent job during the lengthy budget process.

Following a full and complete discussion, Council Member Schiff, seconded by Council Member Jones, made a motion to approve on first and final reading CITY OF SUGAR LAND ORDINANCE NO. 1587 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, ADOPTING THE ANNUAL BUDGET FOR THE CITY OF SUGAR LAND, TEXAS, FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2006 AND ENDING SEPTEMBER 30, 2007, APPROPRIATING THE SUMS AS SET FORTH THEREIN, ADOPTING THE CAPITAL IMPROVEMENTS PROGRAM 2007 - 2011, AND ADOPTING A COMPENSATION PLAN. The motion carried unanimously.

PUBLIC HEARING – AD VALOREM TAX RATE

Mayor Pro Tem Hosley convened the Public Hearing to receive and hear all persons desiring to be heard on a proposal to adopt an ad valorem tax rate of $0.30655 to increase tax revenues by 1.88 percent.

Ms. Donna Svatek, Treasurer, presented an overview stating on August 15th City Council agreed on a tax rate of $0.30655 and the truth-in-taxation law requires two public hearings prior to adoption.

The Financial Management Policy Statements provide that if financial conditions allow the proposed budget is filed with a tax rate no greater than the effective tax rate plus 3%. The fiscal year 2006/2007 budget was filed on July 25th with a tax rate of $0.30655, which was the effective tax rate plus 3% based on the preliminary tax roll. The certified tax roll was received on July 28^th and the proposed tax rate is 1.88% above the effective tax rate which is less than the effective rate plus 3% resulting in an increase in the average residential tax bill of $3.38 or 0.5%. The City Manager recommends no change in the tax rate as discussed with City Council during the budget workshops.

Hearing no further comments, Mayor Pro Tem Hosley closed the Public Hearing.

PUBLIC HEARING – AGREEMENT WITH MUD NUMBER 1

Mayor Pro Tem Hosley convened the Public Hearing to receive and hear all persons desiring to be heard on a proposed Strategic Partnership Agreement with Fort Bend County Municipal Utility District Number 1 for provisions of municipal services and annexation into the corporate limits.

Mr. Jim Callaway, Executive Director Community Development, presented an overview stating this is the second Public Hearing for the proposed Strategic Partnership Agreement with Fort Bend County Municipal Utility District No. 1 (River Park Community) for provisions of services to and annexation of the District into the corporate limits. The agreement provides for Limited Purpose Annexation followed by Full Purpose Annexation and dissolution of the District to include:

City will adopt an ordinance to annex the District for limited purposes within 90 days of effective date of SPA
City will impose a Sales and Use Tax within the District in the ordinance annexing the District for limited purposes. The Sales and Use Tax will be imposed on the receipts from the sale and use at retail of taxable items at the rate of two percent or the rate specified under future amendments to Chapter 321 of the Tax Code
During Limited Purpose annexation period, the City will rebate to the District 50% of Sales and Use Tax that City and its 4A and 4B Corporations collect from the boundaries of the District
During Limited Purpose annexation period, Districts assets, liabilities, indebtedness, and obligations will remain the responsibility of the District
District agrees to keep all payments of rebate provided in a separate account and may use those payments for infrastructure projects and general district purposes as defined in the SPA
During Limited Purpose annexation, City will continue to provide pre-annexation Fire Protection Services to the District pursuant to current Fire Protection Services Agreement
After effective date of SPA, District will not file a bond application for issuance of new debt without written consent of City Manager
During Limited Purpose annexation period, District shall participate in City Groundwater Reduction Plan (GRP) and there will be a one-time initial GRP participation payment of $35 for each Equivalent Single Family Connection projected to be in District at build-out
City and District agree that the District is annexed for full purposes, effective December 1, 2009 without further action of the City or District. City will provide full City services, including fire service upon Full Purpose annexation
Upon Full Purpose annexation, the District is dissolved and the City will assume all of the assets and liabilities of the District in accordance with Texas Law

The Council may only adopt a SPA after the District has adopted the agreement; the Council and District may adopt the same agreement; in addition, the terms may be amended after receiving public comments, testimony, or evidence.

Hearing no further comments, Mayor Pro Tem Hosley closed the Public Hearing.

WORKSHOP - KEEP SUGAR LAND BEAUTIFUL

Mayor Pro Tem Hosley introduced receipt of annual update for Keep Sugar Land Beautiful.

Ms. Vicki Gist, Executive Director, Keep Sugar Land Beautiful, stated the organization partners with the City to provide services to Sugar Land residents. Sponsored events include Recycle for Reuse, recycling for batteries, oil, latex paint and antifreeze, Don’t Mess with Texas Trash-Off, Boo Bash, Christmas Tree Recycling, Earth Day Recycling, and the H2O Expo. Education is an important element of KSLB and they subsidize an Arbor Day Poster Contest, provide free speakers and classes, provide ten mobile Planet Earth Carts serving over 5,000 students and 300 teachers, and partner with FBISD on staff development. Community service includes Adopt a spot, cell phone recycling, volunteer management and supervision of the Eagle Scouts for storm drain marking. City storm drains empty into Oyster Creek and oil, grass clippings, etc. are prohibited. In keeping with the community spirit, 2,744 volunteers have contributed 6,874 hours of service. Affiliations have been forged with 27 youth groups, 19 civic and community groups and 61 businesses. A fundraising sporting clays event is held annually in February to promote partnership opportunities. The squirrel tree frog was recently adopted as the KSLB logo.

Ms. Gist summarized a few of the numerous grants and awards received stating in 2002 a landscaping grant was received in the amount of $130,000 for continuing excellence in the environment which was used to beautify the intersection of Diary Ashford at US 59. The grocery chain HEB awarded a grant to establish recycling programs at two high school campuses. An award was received from Coke for a green team recycling event with high schools at homecoming events. The organization garnered a prestigious first place from the Governor’s Community Achievement Awards, a joint project by Keep Texas Beautiful and the Texas Department of Transportation for environmental excellence.

Mayor Pro Tem Hosley noted that KSLB initially began as a Council appointed recycling committee which has grown to a full fledged tax exempt organization leveraging tax dollars and is a perfect example of a public/private partnership.

WORKSHOP – TELFAIR PLANNED DEVELOPMENT DISTRICT

Mayor Pro Tem Hosley introduced discussion on Telfair Planned Development District (Telfair Crossing).

Ms. Sabine Somers-Kuenzel, City Planner, stated Council tabled a General Business zoning request on August 15th requesting a Planned Development (PD) instead in order to facilitate clear development standards for this prominent tract bordered by US 90A and SH 6. Staff was directed to assist the Applicant in expediting the process providing clear guidance for a 60 day approval schedule. Input from both the Planning and Zoning Commission and Council Workshops is critical to expedite the request which has been placed on the September 28th Commission meeting agenda for consideration with a public hearing as well.

Mr. Doug Schomburg, Assistant City Planner, presented an overview stating the Planning and Zoning Commission held a workshop September 12^th to review the PD zoning request for the 112.7 acres. Three key points surfaced from the workshop: a lack of level of detail for the 112 acres; concerns on conditional uses in B-2 requested as uses by right; and the timing and magnitude of the request. Newland Communities and the commercial real estate developer have since refocused the request for just 28 acres on the eastern portion of the property known as Phase 1. Phase 1 is designated as mixed use but there is an absence of a large retail anchor and there is 25% less retail than in a typical B2 district; grocery and auto stores are not proposed; landscaping and green space exceeds code; the proposed primary and secondary finishes are those used for B2 districts and height setbacks, architectural features and street trees will be detailed in the PD submittal. Concern was expressed about the timeline being realistic as it appears the Planning and Zoning Commission is requesting a high level of detail. The next meeting is September 28^th and a public hearing has been scheduled as well.

Mr. Peter Jacob, Weaver, Davis, Jacob, a commercial property developer, prefaced his overview with salient points stating the Planning and Zoning Workshop was beneficial as it flushed out concerns on the magnitude of the development. He expressed a preference for a PD for a specific 28 acre tract known as Phase I stating this was a better approach because the tract has the greatest amount of interest and the City would be able to observe the “quality on the ground” for future development requests.

The site plan for Phase I located at University Boulevard and SH 6 is a transition area for uses such as office, buildings, a hotel, a hospital, medical professional offices, restaurants and small, not big box retail. The maximum cumulative square feet is 715,000 housed on ground and in multi-story. It is far removed from the Regional Airport to accommodate multi story buildings. This phase will be the gateway to SH 6 from University Boulevard with landscape easements along University and signage as an entrance to Telfair and an 80 foot right of way tree-lined private quasi-boulevard with 12 feet of landscaping and pedestrian access on either side with boulevard corners having hard and soft landscape. He addressed building line setbacks, which exceed City requirements and streetscapes with interlocking pavers. Architectural and building finishes will match Telfair with 70% primary and 30% secondary and the number of finishes on a building can be no more than three. No single finish can be more than 80% on the front of any building. He addressed glass, stone, stucco on buildings. The percentage of open space including landscape buffers and parking lot islands will be a minimum of 20% of the total land area where the City requires only 15% in B O and B 2. Concern was expressed at the Planning and Zoning meeting regarding Bullhead Slough abutting and separating the proposed commercial development from the planned residential, schools and parks and the Slough provides a 300 foot wide buffer. There will be a 16 foot utility easement on the levy dedicated to CenterPoint Energy including an aerial easement of 21 feet and CenterPoint dictates what can be planted; there will probably be no trees planted but landscaping will be placed on the rear property line. Landscape buffers of 35 and 40 feet will parallel US 90A and SH 6. All trees shall have a minimum caliper of four inches planted on 30 foot centers.

Initially favorable comments were received that this small tract would provide for a more manageable PD project in the allotted time frame. However after lengthy discussion because the 113 acre tract is considered a “gateway to the City,” concern arose over small tracts being developed over time resulting in perhaps a series of undesirable strip shopping centers rather than a planned, thought out development. The developer acknowledged that designing the remainder of the site would be conceptual in nature and the firm is not in a position to predict what is going to transpire over the next five to ten years due to market demand, however, the intent is to develop the remaining tract in a similar upscale manner. Buildings would be finished on all four sides in primary and secondary finishes.

Council consensus recommended fast tracking the Planned Development of Phase 1 for the 28 acres and a Planned Development for the remaining acreage using the normal two step process, providing assurance for future development in keeping with City philosophy. Mr. Jacob was in agreement, stating he has been a proud member of the community for over 20 years having worked with Sugarland Properties prior to establishing a partnership firm, whose development record has a fine reputation.

RECESS

Mayor Pro Tem Hosley recessed the Workshop meeting, time 7:17 o’clock P.M.

RECONVENE

Mayor Pro Tem Hosley reconvened the Workshop meeting, time 7:25 o’clock P.M.

WORKSHOP – NAMING BRAZOS RIVER PARKLAND

Mayor Pro Tem Hosley introduced discussion on naming Brazos River parkland.

Ms. Kimberly Terrell, Development Manager, stated the Parks and Recreation Policy Advisory Board approved recommendations of the Brazos River Parkland Naming Committee for the 420 acres of parkland parallel to nine miles on the Brazos River. The committee comprised of three Parks and Recreation Advisory Board members, Tony Talamini, Michelle Wohlwend, and André McDonald were recognized for their contributions. The Board recommends the theme "Brazos Trail" for the several future park sites that will be constructed over time along the Brazos River which occupies 3,600 acres of flood way property within the corporate limits. A long anticipated ground breaking ceremony will be held on Wednesday, September 27th at 10 A.M for the initial 420 acres being developed on the site near the University of Houston, Sugar Land.

Three options were presented for naming the 420-acre park adjacent to the University of Houston and are listed in a prioritized order of recommendation, “Brazos River Park” being the first choice, and are in compliance with policy

1. “Brazos River Park” – Descriptive of the park site

2. “Park on the Bend” – From the historical significance of “Fort-on-the-Bend” being the origin of the name “Fort Bend” County

3. “Sugar Cane Park” – Named for the past agricultural uses of the site

Proposed signage comparable to the Oyster Creek Park sign would identify each park within the linear trail and the City logo as well as “Brazos Trail” would appear.

Mayor Pro Tem Hosley, invited comments from Park Board Chairman, Mr. Arevalo, who remarked what makes the City of Sugar Land exceptional is the quality of family life and that the Park reflects the values of the community.

Appreciation was expressed to Park Board members and Staff for the hard work and dedication on the task. Brazos River Park has instant recognition and Brazos Trail adds the distinction. Council consensus was to accept the recommendations with extreme gratitude that will serve the City well through the years, but to pause and reflect and give further thought about the recommendations prior to the naming being placed on a futureCity Council agenda.

Mr. Talamini stated Brazos Trails was recommended due to the length and numerous entrances throughout the linear park system.

WORKSHOP – txdot freight rail study

Mayor Pro Tem Hosley introduced discussion on Texas Department of Transportation Freight Rail Study.

Mr. Dale Rudick, Intergovernmental Relations Director, stated a workshop was sponsored by HGAC at the Transportation Policy Council meeting on August 26^th to discuss the TxDOT preliminary study on Houston Area Freight Rail. The study to examine the State rail infrastructure was prompted by a constitutional amendment creating the Texas Rail Relocation and Improvement Fund which is unfunded at this time. It is expected the Texas Transportation Commission will send the study to the 80^th Legislature in January 2007 to facilitate funding.

The City can officially comment on the proposed projects/improvements that directly impact Sugar Land by September 29^th. Staff is requesting input from Council prior to a draft letter from the Mayor is finalized that covers the following locations:

· Proposed Eldridge Road underpass: Consistent with the City’s planning efforts.

· Proposed Dairy Ashford Road overpass: Consistent with the City’s planning efforts.

· Proposed Gillingham crossing: Opposed to due to it affecting our Business Park along with a proposed alternative route being on a private road and crossing.

· Proposed Research Street crossing: Opposed to the closure of this private crossing unless access is allowed via the planned University Boulevard North roadway.

· University Boulevard North crossing: Needs to be added as a crossing consistent with City’s Thoroughfare Plan.

The study does not address the long range which is imperative due to economic development. At City Official’s dismay, there is no mention of rail relocation. At one time the preliminary study recommended double tracking which the City is adamantly against and which has since been ruled out by TxDOT. Short-term project recommendations should include both planning and corridor preservation for future rail relocation. It is imperative the City respond in the preliminary stages of gathering public input and address the full picture about rail relocation. City intent is to be more proactive to relieve congestion and noise and improve mobility in the US 90A corridor and have community input in the expenditure of public funds. Staff does endorse the recommendation on grade separations at Dairy Ashford and Eldridge Road that are in line with the general plan. Staff is against the Gillingham recommendation because it negatively impacts the economy at the Business Park. Regarding the Research Street project, Staff is in agreement if University Boulevard North is built back into the study and we continue to work with Nalco.

Council consensus was a response taking a strong position with surrounding cities and the county in a unifying effort to address public best interest utilizing tax payer funds to address congestion, mitigation, safety and quality of life because voters statewide approved rail relocation. Also noted was that the US 90A rail corridor through the City, 100 feet wide, and could regrettably accommodate as many as three rails.

WORKSHOP – TELFAIR ANNEXATION BEING PLACED IN DISTRICTS

Mayor Pro Tem Hosley introduced discussion on placing Telfair annexed property in one or more single-member districts.

Ms. Eugenia Cano, Assistant City Attorney, stated in 2004 the City annexed 1,993 acres that makes up the Telfair development. With the residential property now being developed it is timely to place the development in one of the single-member districts prior to the May 2007 city elections. Staff reviewed the matter with Council Members Jones and Schiff who recommend the Telfair property north of US 59 be placed in District 2 and the Telfair property south of US 59 be placed in District 3.

In addition, when the City annexed a strip of land north and south on Highway 90A extending west of Highway 6, it was logically placed in District 1. That land now resides in Telfair and Staff recommends it be placed in District 2.

The population of the Districts is based on the 2000 census and therefore does not consider the growth of population since that date. This recommendation is based on contiguity of the annexed land to existing Districts rather than the current and undetermined population of each District. The City will most likely not be redistricting until after the 2010 census at which time all the District boundaries will be significantly revised.

The Council consensus was to move forward.

WORKSHOP – CITY AUTHORITY ON CLAIMS OR LAWSUITS

Mayor Pro Tem Hosley introduced discussion on City Manager and City Attorney authority on claims or lawsuits.

Ms. Eugenia Cano, Assistant City Attorney, presented an overview stating the discussion was promulgated by the City Attorney Office to address the authority limits of the City Manager and City Attorney pertaining to City claims and lawsuits not covered by the insurance carrier. The resolution has been discussed with the Finance Committee.

The Council consensus was no objection to proceed as the Resolution would fill a void in existing authority and prevent future problems and provide flexibility in the event a quorum could not be reached.

CITY COUNCIL CITY MANAGER REPORTS

CITY COUNCIL REPORTS

Mayor Pro Tem Hosley introduced reports from the Finance/Audit Committee, the Business Incentive Committee, and the Intergovernmental Relations Committee.

Council Member Schiff reported attendance at the Planning and Zoning Commission and Parks Board meeting as liason.

Council Member Wong reported the Intergovernmental Relations Committee met with Council Member Parmer to discuss the rail issue and the legislative agenda for the City Council. The Transportation Committee of the HGAC met to discuss the SH 6 corridor from I 10 to SH 521 regarding congestion in areas, which have no right of way focusing on the “smart street” technology. Homeland Security Funding for the region is $2.6 million this year compared to the $7.2 million last year making it difficult to fund at the existing level.

Council Member Abraham reported he attended an event that was a heartfelt experience for a newly constructed home with volunteer support from the City and attended a ceremony for the opening of new streets in Mayfield Park and that the citizens are very happy with the project.

Council Member Parmer reported Intergovernmental Relations Committee met to discuss a revised legislative agenda which will be brought to Council in the near future. The ribbon cutting ceremony for new streets in Mayfield Park occurred and he commended Council for approving matching funds for this project.

Council Member Jones reported he attended the quarterly Municipal Court meeting as City Council liaison and was pleased to report on improved customer service and planned improvements for the future.

Mayor Pro Tem Hosley reminded fellow Council Members that evaluation forms are due for the Compensation Committee.

CITY MANAGER REPORT

City Manager Bogard reported that the groundbreaking ceremony for the long awaited Brazos River Park will be held Wednesday, September 27^th at 10 A.M. He introduced Ms. Linda Symank, the new Director of Fiscal Services, citing her excellent credentials. She will oversee Budget, Treasury, Accounting and the Municipal Court.

RECESS REGULAR MEETING

Mayor Pro Tem Hosley recessed the Regular Meeting to go into Closed Executive Session, time 8:28 o’clock P.M.

CLOSED EXECUTIVE SESSION

Mayor Pro Tem Hosley introduced Closed Executive Session as authorized by Chapter 551, Texas

Government Code, in accordance with:

Personnel Matters and Legal Advice: Section 551.074, (Matters regarding personnel) and Section 551.071 (Consultation with attorney to receive legal advice).

a) For the purpose of discussion with respect to Municipal Court Judge annual performance evaluation. Council Member Russell Jones.

b) Receive legal advice from the City Attorney relating to CenterPoint litigation settlement. Ms. Eugenia Cano, Assistant City Attorney.

ADJOURN CLOSED EXECUTIVE SESSION

Mayor Pro Tem Hosley adjourned the Closed Executive Session time, 9:23 P.M. o’clock P.M.

RECONVENE MEETING

Mayor Pro Tem Hosley reconvened the Regular Meeting time 9:24 o’clock P.M.

MUNICIPAL COURT JUDGE

Mayor Pro Tem Hosley introduced consideration on setting the annual salary for Sugar Land Municipal Court Judge.

Council Member Russell Jones stated the Judge received outstanding performance reviews and that the increase is deserved and appropriate.

Council Member Jones, seconded by Council Member Schiff, made a motion to increase by 5% or $3,912.60 for an annual salary in the amount of $82,164 for Sugar Land Municipal Court Judge. The motion carried unanimously.

RESOLUTION NO. 06-40 – SETTLEMENT AGREEMENT WITH CENTERPOINT ENERGY

Mayor Pro Tem Hosley introduced consideration on CITY OF SUGAR LAND RESOLUTION NO. 06-40 A RESOLUTION OF THE CITY OF SUGAR LAND, TEXAS, ("CITY") TO ADOPT A SETTLEMENT AGREEMENT BETWEEN THE CITY AND CENTERPOINT ENERGY, INC. ("CENTERPOINT”) WITH REGARD TO CENTERPOINT'S RATE FILING PACKAGE FILED ON APRIL 14, 2006 AND APPROVED BY THE PUBLIC UTILITY COMMISSION OF TEXAS ("PUC") ON AUGUST 23, 2006.

Ms. Eugenia Cano, Assistant City Attorney, introduced Mr. Thomas Brocato who represented the City in the proceeding.

Mr.Thomas Brocato, Attorney for the Gulf Coast Coalition of Cities, presented an overview citing the major components of the Settlement Agreement as follows:

$67.86 million per year in rate reductions for CenterPoint customers; $62.86 million to retail consumers and $5 million to wholesale transmission customers;

$10 million per year in funding for programs assisting low-income consumers and rate discounts;

$10 million per year in additional funding for conservation and energy efficiency programs over and above the $13 million used in setting current rates with the additional funds coming from the residential and commercial customer classes’ share of the rate reductions noted above;