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City Council |
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Agenda Request |
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Agenda Of: |
january 15, 2008 |
Agenda Request No: |
III E |
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Initiated By: |
Glenda Gundermann, City Secretary |
Responsible Department: |
City Secretary |
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Presented By: |
Glenda Gundermann, City Secretary |
Department Head: |
Glenda Gundermann, City Secretary |
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Additional Department. Head (s): |
N/A |
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Subject / Proceeding: |
Minutes City Council Meeting JANUARY 02, 2008 Approve Minutes |
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Exhibits: |
Minutes JANUARY 02, 2008 |
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Clearances |
Approval |
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Legal: |
N/A |
Executive Director: |
N/A |
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Purchasing: |
N/A |
Asst. City Manager: |
N/A |
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Budget: |
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City Manager: |
Allen Bogard |
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Budget |
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Expenditure Required: $ |
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Amount Budgeted/Reallocation: $ |
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Additional Appropriation: $ |
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Recommended Action |
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Approve the minutes of the City Council meeting January 02, 2008. |
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Exhibits |
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STATE OF TEXAS |
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COUNTY OF FORT BEND |
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CITY OF SUGAR LAND |
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CITY OF SUGAR LAND
CITY COUNCIL REGULAR MEETING
WEDNESDAY, JANUARY 02, 2008
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 Wednesday, January 02, 2008 at 5:42 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
Donald G. Olson, 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 Council Member Abraham who was absent.
Also present were:
Allen Bogard, City Manager
Glenda Gundermann, City Secretary
Eugenia Cano, Assistant City Attorney, and
A Number of Visitors
CONVENE MEETING
Mayor David Wallace convened the session, open to the public, to order at 5:43 o’clock P.M.
INVOCATION
Council Member Schiff delivered the invocation.
PLEDGE OF ALLEGIANCE
Council Member Schiff led the pledge of allegiance to the Flag of the United States of America.
PUBLIC COMMENT
Mayor Wallace introduced Public Comment and entertained registered speakers. There were no public comments.
REVIEW OF CONSENT AGENDA
Mayor Wallace introduced Review of the Consent Agenda and entertained questions and/or comments.
CONSENT AGENDA
Mayor Wallace introduced III.A) SECOND CONSIDERATION: CITY OF SUGAR LAND ORDINANCE NO. 1650 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, ADOPTING THE 2007 HIKE AND BIKE TRAILS MASTER PLAN AS A PART OF THE COMPREHENSIVE PLAN; III.B) SECOND CONSIDERATION: CITY OF SUGAR LAND ORDINANCE NO. 1657 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, CREATING REINVESTMENT ZONE NO. 2007-02 FOR A 8.9 ACRE TRACT OF LAND LOCATED IN THE BROWN & BELKNAP LEAGUE, A-15 RESERVE “A”, BLOCK 1, KNOWN AS ONE SUGAR CREEK PLACE; III.C) SECOND CONSIDERATION: CITY OF SUGAR LAND ORDINANCE NO. 1670 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, AMENDING THE FINAL PLAN FOR THE PLANNED DEVELOPMENT DISTRICT KNOWN AS LAKE POINTE TOWN CENTER BY REPLACING EXHIBITS B AND C WITH EXHIBIT B-C; III.D) Authorizing a one-year renewal in the amount of $27,180.00 with Windstream, Incorporated for telecommunications system maintenance services; III.E) Authorizing High Technology Replacement Purchase in the amount of $336,214.08 through Texas Department of Information Resources Cooperative Purchasing Agreement; III.F) Authorizing execution of a Contract in an amount not to exceed $57,000.00 with Hostetler Johnston, L.L.C. for design and construction services for water plant renovations and upgrades; III.G) Approval of the minutes of the regular meeting of December 18, 2007.
Following a full and complete discussion, Council Member Olson, seconded by Council Member Schiff, made a motion to approve the Consent Agenda. The motion carried unanimously.
BUDGET
FISCAL YEAR 2006-2007 CARRYOVERS AND BUDGET ADJUSTMENT
Mayor Wallace introduced consideration on approval of Fiscal Year 2006-2007 Carryovers and Budget adjustment in the amount of $88,439.00 to revenues and in the amount of $1,572,742 to expenditures.
Ms. Linda Symank, Director of Fiscal Services, stated the Fiscal Year ended September 30, 2007 and any funds that were not expended are closed into fund balance and the new budget becomes effective October 1.
City departments have projects that are not completed as of September 30; for the projects to be completed without impacting the current year budget a budget amendment is required to reestablish the balance of funds in the budget for Fiscal Year 2007-2008.
The General Fund carryover totals $661,000 in expenditures; the fund ended the year $2.8 million higher than the budgeted ending balance leaving a balance of $2.2 million after carryover. Currently there are construction projects that require additional funding; the strong construction environment has driven material costs up, and a competitive labor market is driving higher labor cost. Projects are being reviewed to determine additional funding requirements; it is proposed that the higher than budgeted fund balance be, used as a funding source to cover additional project construction costs. City sales tax is under budget as of December is primarily due to a one-time adjustment in November that represented sales tax the state collected and remitted to City the last fiscal year that was in error. The vendor has proved that the taxes were not owed and the state recouped with a credit against the November remittance. There has been a slight downward trend in the base collections for the past two months; Staff is looking at the funds as a possible funding source for the revenue shortfall.
Following a full and complete discussion, Council Member Parmer, seconded by Council Member Schiff, made a motion to approve Fiscal Year 2006-2007 Carryovers and Budget adjustment in the amount of $88,439.00 to revenues and in the amount of $1,572,742 to expenditures. The motion carried unanimously.
TAX ABATEMENT
TAX ABATEMENT AGREEMENT
Mayor Wallace introduced consideration on authorizing a Tax Abatement Agreement by and between the City of Sugar Land and HE Sugar Land Buildings, L.P. for value added improvements to One Sugar Creek Place.
Ms. Regina Morales, Director of Economic Development, stated the abatement is applicable to the former Unocal Building, One Sugar Creek Place. Ordinance No. 1657 created Reinvestment Zone No. 2007-02 for an 8.9 acre tract, allowing for the abatement.
The building is over 25 years old and because of age and other factors, the value has declined over the last few years; appraised value has decreased by -40.85 percent from 2003 to 2007, or $27,901,000 of value losses. Ellman Companies purchased the property and will make necessary upgrades. Original building design was for one tenant. Unocal was acquired by Chevron in 2005, and the majority of employees have been relocated to Chevron’s downtown Houston offices. Currently, the building is leased to Chevron through March 2010; Fluor has subleased space from Chevron. Tenant improvements cannot occur until after the Chevron lease expires. A revised phased and scaled abatement schedule was reviewed with the Business Incentive Committee to accommodate the developer renovation schedule.
In spring of 2010, over a half million square feet of aging office space will come onto the market and will require renovations in order to sublease as a multi-tenant facility. As there will be tenants in the building, the Class-A office renovations will be structured in phases. Phase I involves proposed upgrades; HVAC improvements, renovated elevators, reconfigured interior entrance, and expansion of the parking garage. The second phase will include tenant improvements, which will occur after Chevron and Fluor leases expire.
The proposed abatement is for new improvements only, beginning in 2010. An agreement was created that applies only to the new, real property; the City will continue to tax at 2008 values, yet to be determined. Since the sale of the building occurred in August 2007, staff expects to see some increase of the building value based on new market comps that will come from the sale. The agreement will apply to the new investment and improvements and will address market increases beginning in 2009. Staff recommends ten year tax abatement up to 700% upon completion of all phases for new improvements only. The Company will receive 600 % abatement for $5million in improvements completed by January 1, 2010 and an additional 100% abatement if they complete $8 million in improvements by January 2012. The agreement awards abatements at the end of the 10-year period with the first 100% being provided in 2012 if the company completes $8 million and beginning in 2013 if they complete $5 million by the stated deadlines. This ensures that the incentive is passed through to the new tenants once Chevron vacates the property in 2010. The existing property value will not receive tax abatement and will continue to be taxed at its 2007 certified assessed value. The recommendation is consistent with the City tax abatement guidelines and tax abatement ranking system.
The Business Incentive Committee has reviewed and concurs with staff recommendation of scaled and phased tax abatement for The Ellman Companies at One Sugar Creek Place.
Following a full and complete discussion, Council Member Olson, seconded by Council Member Jones, made a motion to approve a Tax Abatement Agreement by and between the City of Sugar Land and HE Sugar Land Buildings, L.P. for value added improvements to One Sugar Creek Place. The motion carried unanimously.
CONTRACTS AND AGREEMENTS
AUSTIN PARKWAY GROUND STORAGE TANK REHABILITATION PROJECT
Mayor Wallace introduced a Contract in an amount not to exceed $672,050.00 with Layne Texas, Incorporated for Austin Parkway Ground Storage Tank Rehabilitation Project; and approval of a budget reallocation in the amount of $45,000.00.
Ms. SuEllen Staggs, Director of Utilities, stated on November 15, 2007, six bids were opened for the Austin Parkway Ground Storage Tank (GST) Rehabilitation Project; apparent low bidder was Layne Texas Incorporated, with a base bid of $672,050. The Austin Parkway GST 3 was originally constructed in 1981 with no rehabilitation to date. Scope of the Project includes complete removal and replacement of the tank roof including the tank rafters, girders and other support structures due to severe deterioration; also included are the replacement of interior and exterior coatings and structural modification to tank vents, overflow piping and man-ways in order to bring GST into compliance with current regulatory standards.
Pate
Engineers Incorporated, City consultant for the project, completed a reference
review, evaluation, and provided a letter of recommendation stating Layne Texas
Inc. is capable of completing the project, and the firm has successfully
completed other water plant projects for City.
There is currently $655,149.00 available in funding for the construction phase of the project in Capital Improvement Program Project No. WA0604; an additional $45,000 has been identified from the completed project WA0702 (2007 well rehabilitation project) with which to fund the remaining $16,901 shortfall and allow for testing and contingency.
Notice to proceed for construction of the project is anticipated for January 2008 and with a 220-calendar day completion time, the project should be completed by August 2008.
Following a full and complete discussion, Council Member Wong, seconded by Council Member Parmer, made a motion to approve a Contract in an amount not to exceed $672,050.00 with Layne Texas, Incorporated for Austin Parkway Ground Storage Tank Rehabilitation Project; and approval of a budget reallocation in the amount of $45,000.00. The motion carried unanimously.
RECUSAL OF COUNCIL MEMBER
Council Member Wong recused himself from the Council Chamber at 6:18 o’clock P.M., stating he had filed a conflict of interest affidavit.
WEST (NEW TERRITORY) WASTEWATER tREATMENT PLANT
Mayor Wallace introduced a Contract in an amount not to exceed $162,612.00 with Brown and Gay Engineers, Incorporated for design services for West (New Territory) Wastewater Treatment Plant levee protection system, and approval of a budget adjustment in the amount of $162,612.00 to revenues and expenses.
Mr. Christopher Steubing, City Engineer, stated needs have
been identified for expansion of the West (New Territory) Wastewater Treatment
Plant (WWTP) that will require additional design and construction
services. Based on the ongoing FEMA Map
Modernization Program, base flood elevations will increase over the current
effective maps; the increase will have a negative impact on City property that
is proposed for the WWTP expansion. Creation
of a new CIP project (WW0803) will address design and construction of
anticipated improvements to keep the area out of any proposed floodplain and/or
floodway designations. The WWTP serves
various Municipal Utility Districts and is currently owned by Fort Bend
Municipal Utility District No.112 (MUD 112).
The treatment plant expansion is outlined in the recently executed Strategic
Partnership Agreement between the City and various Municipal Utility Districts,
which includes MUD 112; the SPA includes the responsibilities between City and
MUD 112.
Staff anticipated the need for floodway mitigation during the SPA negotiations. Timely flood protection improvements must be constructed. A flood protection levee around the WWTP expansion site has been evaluated by the Engineering Department and has proven to be the best available alternative. The levee is expected to offer protection from a 100-year design flood, while also meeting the applicable regulatory requirements with the Texas Commission on Environmental Quality (TCEQ) and FEMA.
To facilitate timely design and construction of flood protection improvements, engineering staff is proposing to utilize the services of Brown & Gay Engineers, Incorporated (BGE), who is currently under contract with City to evaluate the potential impact of proposed base flood elevations on the overall infrastructure. Brown & Gay serves as the MUD 112 engineer and will ensure coordination with MUD improvements. Services include engineering design, geotechnical and environmental with the scope including:
· Design the city section of the levee around the proposed WWTP expansion site in accordance with levee re-certification requirements.
· Coordination with MUD 112 in tying the city section of the levee with
the District proposed levee section.
· Coordination with the on-going
design work to expand the current capacity of the treatment plant.
· Coordination
with Fort Bend County Drainage District and FEMA staff/contractor to ensure
that the proposed improvement is incorporated within the new DFIRM maps to be
released by FEMA.
Project funding will be through the issuance of utility revenue bonds. Anticipated construction completion date is June/July of 2008. Staff met with FEMA and Fort Bend County Drainage District who concur that the City should proceed forward.
Council questioned the value of the West Wastewater Treatment Plant. Estimated eventual plant size would be approximately 10.5 million gallons per day and about $5 to $6 per gallon; value of the plant, $50-$60 million.
Following a full and complete discussion, Council Member Schiff, seconded by Council Member Olson, made a motion to approve a Contract in an amount not to exceed $162,612.00 with Brown and Gay Engineers, Incorporated for design services for West (New Territory) Wastewater Treatment Plant levee protection system, and approval of a budget adjustment in the amount of $162,612.00 to revenues and expenses. The motion carried unanimously with Council Member Wong abstaining.
RE-ENTRY OF COUNCIL MEMBER
Council Member Wong re-entered the Council Chamber at 6:26 o’clock P.M.
ORDINANCES AND RESOLUTIONS
ORDINANCE NO. 1665 – AMENDING SECTION 5-249, CODE OF ORDINANCES
SINGLE FAMILY CONNECTION CHARGE
Mayor Wallace introduced FIRST CONSIDERATION: CITY OF SUGAR LAND ORDINANCE NO. 1665 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, AMENDING SECTION 5-249 OF THE CODE OF ORDINANCES BY AMENDING THE SINGLE-FAMILY CONNECTION CHARGE FOR DISTRICTS SERVED BY THE UTILITY SYSTEM.
Ms. SuEllen Staggs, Director of Utilities, stated that Section 5 of the City of Sugar Land Code of Ordinances includes the collection of connection fees for utility districts outside the City but served by the City water and wastewater systems; and for districts inside the city when specifically included in Development and Utility Agreements. The purpose of connection fees is to pay for the expansion of new water and wastewater systems to accommodate new development so that existing customers do not pay for infrastructure needs caused and used by new customers. The fee is calculated and imposed to pay for the capital costs of providing water and wastewater services to the districts that contract with the city for services. The fee is established as one fee for all non-developed areas. The connection fee is calculated by dividing the cost for the infrastructure by the total Equivalent Single-Family Connections (ESFC). Pursuant to development agreements, the City can review and adjust the connection fee periodically to ensure the fees will cover the cost of improvements.
The calculations were revised in early to mid-2007; staff looked at the number of anticipated connections, worked with the development community to ensure the number was accurate, and updated the costs of the infrastructure to serve developments. Significant increases in construction costs have contributed to the increase in the connection fee.
In November 2007, the proposed revision was discussed in a workshop with City Council. At that time, the price for updating the connection fee was anticipated to be approximately $6,000. Since that time Telfair bid several projects in which actual costs were less than estimates in connection fee calculations, which resulted in a decrease in the fee presented during the Council workshop. The revised connection fee has been reduced to $5,670; the proposed connection fee increase is based on:
Current Fee Proposed Fee
Water Production and Storage $ 875 $1,247
Water Distribution and Wastewater Collection 2,100 2,334
Wastewater Treatment 1,335 2,089
Total Connection Fee $4,310 $5,670
Developers have been sent the recommended 60-day notice of the fee increase. The fee increase will become effective to the development community on January 16, 2008.
Following a full and complete discussion, Council Member Schiff, seconded by Council Member Olson, made a motion to pass to second reading CITY OF SUGAR LAND ORDINANCE NO. 1665 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, AMENDING SECTION 5-249 OF THE CODE OF ORDINANCES BY AMENDING THE SINGLE-FAMILY CONNECTION CHARGE FOR DISTRICTS SERVED BY THE UTILITY SYSTEM. The motion carried unanimously.
WORKSHOP
TEXAS DEPARTMENT OF TRANSPORTATION – HIGHWAY EXPANSION PROJECTS
Mayor Wallace introduced discussion on Texas Department of Transportation highway expansion projects.
Mr.
Christopher Steubing, City Engineer, stated that completion of various TxDOT
projects will be occurring throughout 2008 and many new transportation lanes
will be opened to the public. The Engineering Department has invited Mr. Jim
Hunt of TxDOT to provide an update on the various highway expansion projects in
the Sugar Land area.
Mr. Jim Hunt, Texas
Department of Transportation, Fort Bend Area Engineer, stated TxDOT is continuing to move forward on
U.S. 59, widening 59 from Highway 6 south to the Grand Parkway, continuing on
with what has already been built north of Highway 6; the (4) main lanes each
direction, carpool lane each direction, and 2-3 lane frontage road each
direction including new bridges over the Brazos River. A tremendous amount of work
has been done at the intersections of Sweetwater Boulevard and University
Boulevard. Contractors are currently focusing on the landscape areas and installing
decorative signal poles, the northern half will be done as soon as possible so
the contractor can continue to move south.
The biggest area of concern is the area surrounding the Brazos River. Everything north and south of the river has been either on-schedule or ahead of schedule, however, the river has been a challenge this past year. Normally the river maintains an elevation of approximately 20 feet deep but has risen to about 50 feet and stayed in that range for a considerable amount of time. Coffer dams are large perimeter fencing of metal sheet piling driven into the ground to hold the water out while TxDOT works to build the foundations for new bridges. The new foundations go120 feet below the bottom of the river, which means driving concrete piles into the ground, 120 feet down, as well as building a massive footing that stands on top of the cluster of piles or legs that holds the massive footing 30 feet below the river, and build up from there. The coffer dams were only able to hold water back for a short time until the river reached such a height that now, “the bathtub filled in” and has stayed filled in for quite some time. Even the barges were difficult to work at, because although the workers could not work in the coffer dams, and due to the river high velocity, debris, and clearance of the existing bridges, the workers could not move the barges underneath due to clearance issue of the cranes. The Brazos River is now down and TxDOT is trying to recover from the impact and determine the value of the impact. Now that workers are back in the river, the degree of impact can be determined and TxDOT can evaluate how this will affect the overall project completion. The evaluation was completed in December; and the current contract schedule is showing that the Brazos River bridges will be completed in May of 2009, instead of the latter part of 2008.
Although the Brazos River bridges will not be completed until May of 2009, there will be some additional lanes that will cross over the river before that time. The target and schedule predictions currently show that there will be two additional lanes crossing over the Brazos River by May of 2008, which will total (4) lanes each way. At this time there are already two lanes each way, which are the frontage road bridges that are temporarily serving as the main lane bridges. There will be the (2) additional lanes that will be the halves of the main lane bridges currently being built.
The entrance ramp from Sweetwater Boulevard is closed for safety reasons on the southbound frontage road at University Boulevard. The southbound main lanes go from (4) down to (2); with the merging activity that this causes, there should not be an entrance ramp joining the freeway at that location. Once the (2) additional lanes are opened, the frontage road bridges will serve as frontage roads and the (2) new main lanes will serve as the main lanes. TxDOT will evaluate the possibility of opening some of that ramp in May 2008 if possible; however, safety must be maintained.
Construction at the interchange of Grand Parkway should be completed by August 2008; however, TxDOT will not necessarily open up all lanes. Everything transitions back to the existing facility south of Highway 99, (2) lanes each way. Although the interchange job will be complete in August 2008, some of the main lanes will still be striped out because of the Brazos River impact. Once construction is complete, Grand Parkway will be (2) parallel frontage roads with no main lanes and will tie in similar to a boulevard style and then choke down to FM 2759 near the Exxon Station, which will be the permanent configuration for this construction job.
CITY COUNCIL CITY MANAGER REPORTS
CITY COUNCIL REPORTS
Mayor Wallace introduced reports from the Finance/Audit Committee, the Business Incentive Committee, and the Intergovernmental Relations Committee.
There were no reports.
CITY MANAGER REPORT
There was no report.
ADJOURN
There, being no further business to come before Council, Council Member Olson, seconded by Council Member Schiff, moved that the meeting adjourn. The motion carried unanimously and the meeting adjourned, time at 7:11 o'clock P.M.
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Glenda Gundermann, City Secretary