City Council
	Agenda Request
Agenda Of:	april 15, 2008	Agenda Request No:		III D
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 April 01, 2008 Approve Minutes
Exhibits:	Minutes APRIL 01, 2008
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
Current Budget: $			N/A
Additional Funding: $			N/A
Recommended Action
Approve the minutes of the City Council meeting April 01, 2008.
Exhibits

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

CITY OF SUGAR LAND

CITY COUNCIL REGULAR MEETING

tuesday, april 01, 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 Tuesday, April 01, 2008 at 4:00 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.

Also present were:

Allen Bogard, City Manager

Glenda Gundermann, City Secretary

Joe Morris, City Attorney, and

A Number of Visitors

CONVENE MEETING

Mayor David Wallace convened the session, open to the public, to order at 4:00 o’clock P.M.

WORKSHOP

FISCAL YEAR 2009 BUDGET AND STRATEGIC PLANNING PRIORITIES

Mayor Wallace introduced discussion on Fiscal Year 2009 Budget and Strategic Planning priorities.

Mr. Allen Bogard, City Manager, stated Fiscal Year 2009 begins on October 1, 2008. In November 2007,

Council met and began discussions on where the City wanted to be in Fiscal Year 2009, focusing on any gaps, shortcomings on current program of services, or projects, and policies that needed to be addressed. Staff has identified the items which will be reviewed with Council and a summary of the 2009planning, including added projects to be reviewed, and the budget process.

Karen Daly, Assistant City Manager, stated the current Budget position includes (4) areas to be highlighted; staff has analyzed the economic trends to prepare City for the remaining six months of the year; two revenue streams that are not performing as budgeted, a report on the status of City expenditures, and the planned approach for capital projects.

Sales tax revenue is analyzed on a monthly basis; a change seen this year is actual revenues are not meeting budgeted revenues. With (6) months remaining, staff is predicting a budget shortfall. Due to a large one-time adjustment, incentive agreements, and a slowdown in retail growth, staff does not believe the budget will be met for Fiscal Year 2008. Another revenue stream that will not meet budget is interest income. Interest earnings are budgeted at 5 percent and staff is seeing a decline; every month as some of the investments mature, City has to reinvest at a lower rate.

Staff is closely monitoring city expenditures. Currently departments are spending at or below expected levels. City is experiencing savings due to incentive agreements not bringing in revenue, as subsequent payments will not be made. Staff believes the department spending levels, incentive agreement payments, and some capital projects will offset the decline in revenue that is forecast for the remainder of the year.

Staff is closely monitoring key CIP projects and will proceed with the planning, design and/or construction of the projects; the 90A Landscaping, the Recreation Center, Sugar Mill Drainage, Dulles Avenue, Riverbend Country Club drainage, and the emergency generators. There are currently 35 projects on the books which Council approved, intent to reimburse or ready for a GO bond sale, and over a span of two years. The projects cover water plant rehab, main street reconstruction, road and drainage improvements. The total authorized on the intent to reimburse is $14.5 million in revenue bonds, $7.257 million in Certificates of Obligation, and sale of the remaining $3.7 million in GO. To make the debt offering as attractive as possible, and planning for a spring sale, staff has been working with the financial advisor to ensure optimal timing. Many of the school districts have passed bond elections and City wants to ensure being ahead before the market gets saturated with public offerings. Staff will return in April with a list for Council to consider.

The plan for the remainder of the fiscal year includes: monitor sales tax closely and follow guidelines established in the Financial Management Policy, continue with program of projects approved by Council, and plan for stable revenue for remainder of year; examine cash funding of CIP projects and look for future CO issuance instead of obligating cash revenue, which is a change in strategy.

Council questioned the base sales tax, year-to-date; last year from March was $17.55 million; and this year, $17.53 million. The drop is in the incentive payments. Council questioned cutbacks in anticipated projects; City ended with a cash surplus for the year and staff was looking at the cash surplus to possibly fund some projects that were going over budget. City Manager Bogard stated that will not be done and instead reserve the surplus to offset any other unknowns, such as a further decline in sales tax. Staff is holding based on information received from the surrounding Houston and Sugar Land area, and will make adjustments accordingly unless directed otherwise by Council.

The plan for next year includes looking at limited growth and revenues. Currently, staff is not confident that sales tax will have an astounding increase next year, and are looking at a flat revenue stream. The preliminary tax roll comes in around May 25 and staff will get more estimates on some of the cost increases as the budget progresses the pre-planning work, which will be provided to the City Manager for development of the budget for next year. Staff general assumptions include: two major sources of sales will be flat, property will see a slight increase; full year funding of mid year positions added in the budget which will begin impacting the budget this month. A very conservative approach will be used concerning new projects and services. There will be minimal increases in departmental expenditures, if any.

Utility fund staff will continue implementation of the rate study. Fiscal Year 2009 will represent the last major adjustment to the base rates. Staff is proposing FY 2009 budget priorities of: Fund operating budget and fund federal and state mandates that City is committed to, including surface water and storm water; second priority is the CIP, public commitment to the projects that City intends to honor, including the impact of the operations and maintenance for the capital projects. Third priority is the policy and management projects resulting from studies and policies that Council worked on through the strategic projects which may include a new staffing plan for the Traffic Management Center. Fourth priority would be called the efficiency priorities, which include the investment and programs that reduce energy consumption or improve productivity. The last priority is new services; staff will concentrate on what has already been committed, working better and more efficiently.

Council asked for clarification regarding the efficiency priorities. Mr. Bogard stated that City is now under a State mandate to reduce electricity; the State has literally passed a law that says the city needs to reduce electricity usage every year for the next five years. Looking at the growing costs of electricity, City could operate facilities in a more efficient manner and save money. Council questioned the use of solar panels as an option.

Karen Glynn, Assistant City Manager, presented an overview of the Strategic Planning priorities for the new year, which includes policy projects, management projects, and the CIP that are used to build the next year work plan. The majority of the projects are not one-year projects; one example is the Visioning Project. The Work Plan for the year included the policy projects adopted by Council resolution, 20 of 38 projects that staff believe, will be completed this year; some may turn into Capital Improvement Projects and some into an implementation plan. Studies include the Drainage Master Plan, S.H. 6 Landscape Plan, Water and Waste Water Planning, many of which are now completed.

There are 18 anticipated carryover projects from 2008; the vision and long-term planning for Highway 59 and the Entertainment facility will not finish by October 1, 2008. Other projects which will go into the next fiscal year are the aviation oriented business park, some of the steps reached with the airport, and the Central Prison Unit.

Staff identified (5) new mid-year projects which will carry over; Sustainability Initiative, Community of Respect, Charter Review, Lakeview Auditorium, and Legislative Agenda. Four other projects identified as priorities for next year beginning in October include the Fort Bend County Mobility Planning, Airport Lay-Out Plan Update, Civic Association Development for Non-HOA Areas, and ETJ Adjustments.

Council discussion ensued regarding the ETJ issue with the Town of Thompsons, the Development Code related to hotels in different city zoning districts, and possible changes to the Hill zoning district.

RECESS MEETING

Mayor Wallace recessed the meeting, time 5:05 o’clock P.M.

RECONVENE MEETING

Mayor Wallace reconvened the meeting, time 5:30 o’clock P.M.

INVOCATION

Council Member Parmer delivered the invocation.

PLEDGE OF ALLEGIANCE

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

RECOGNITIONS

LITERACY COUNCIL PRESENTS ROCKING CHAIR

FROM JAN AND MICHAEL SCHIFF

Council Member Michael Schiff and Lisa Pauls, Executive Director of the Literacy Council of Fort Bend County, presented a rocking chair to the City of Sugar Land in support of the Literacy Council “Reading Rocks” program. The chair was purchased by Jan and Michael Schiff at an auction benefiting the Fort Bend Literacy Council and will be on display in City Hall at designated times to promote the reading program.

The Literacy Council provides services to adults who cannot read or write well or cannot speak English; the Council provides tutoring services, a GED (Grade Equivalent Diploma) class, and works with approximately 1,000 students each month. The city provided the Literacy Council with a community development block grant in recent years that was helpful in terms of overall community support. On behalf of the Literacy Council, Ms. Pauls extended sincere thanks to the City of Sugar Land, the community, and Fort Bend County for their tremendous support.

Mayor Wallace thanked the Literacy Council for the time and energy spent changing people’s lives through education and literacy, and expressed appreciation to Jan and Michael Schiff for the wonderful donation to the City of Sugar Land and commented that our hearts continue to go out to Michael Schiff for his loss stating the entire community continues to mourn the loss of Jan, this is so much more than just a chair representing literacy, it is a memory of Jan and tribute to her drive to make a difference and change the world one person at a time.

GERMAN AMERICAN PARTNERSHIP PROGRAM EXCHANGE STUDENTS

Mayor Wallace stated the German American Partnership Program (GAPP), funded by the United States and German governments, is a high school exchange program linking an American and a German high school over an extended period. International education increases student knowledge and awareness of world cultures and languages, and brings an international perspective to the classroom. Members of host families and host schools find an enriched quality of life and understanding of other nations, and the International Students experience an enrichment and understanding of life in the United States and in our communities.

One of the greatest assets in our community is people with rich traditions, different cultures, and different heritages, yet they come together to form a wonderful community. On March 18 through April 4, 2008 students from Lessing-Gymnasium in Cologne, Germany attended Clements High School; and on June 7 through July 10, 2008 students from Clements High School will attend school in Cologne.

The 42 students and teachers of the German-American Partnership Program were presented with proclamations and Mayor Wallace encouraged citizens to join in recognizing the valuable contribution of cultural diversity within our community.

DULLES HIGH SCHOOL BOYS BASKETBALL TEAM

Mayor Wallace stated active participation in organized athletics is influential to building good sportsmanship among our youth and in order to excel in any one sport, a young person must demonstrate an outstanding spirit of dedication, enthusiasm, and hard work. A vivid example of this has been established by the achievements of the Dulles Vikings Boys Basketball Team who advanced to the 5A Region III Championship game in Austin, Texas ranking 2^nd out of 280 schools, with a record of 34-5. The team is to be applauded for an exciting, hard-fought, successful season.

Mayor Wallace recognized the John Foster Dulles Vikings Boys Basketball Team for their Championship efforts and presented each player with a proclamation, extending the expression of City pride in their accomplishments by the good sportsmanship and inspired team play.

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 stating that at the request of Staff Item IV.B, Emergency Notification System, has been removed from the Agenda.

CONSENT AGENDA

Mayor Wallace introduced IV.A) bid evaluation and authorizing Purchase in the amount of $43,810.00 from Godwin Pumps of America, Incorporated for two trailer-mounted pumps; IV.C) authorizing one-year renewal of Contract in an amount not to exceed $115,000.00 with Sugar Land Auto Parts for the period March 19, 2008 through March 18, 2009; IV.D) authorizing Purchase in the amount of $320,797.95 from Motorola through Houston-Galveston Area Council purchasing agreement for 127 public safety radios; IV.E) approval of the minutes of the regular meeting of March 18, 2008.

Following a full and complete discussion, Council Member Olson, seconded by Council Member Wong, made a motion to approve the Consent Agenda; Item IV.B was removed from the Agenda and not included in the approval. The motion carried unanimously.

BONDS

FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 21

$4,000,000 UNLIMITED TAX AND CONTRACT REVENUE BONDS, SERIES 2008

Mayor Wallace introduced consideration on authorizing Fort Bend County Municipal Utility District No. 21, $4,000,000 Unlimited Tax and Contract Revenue Bonds, Series 2008.

Ms. Jennifer Brown, Assistant Fiscal Services Director, stated Fort Bend County Municipal Utility District No. 21 is wholly located within the corporate limits of the City, encompassing Sugar Land Business Park. The district is proposes to issue the eighth installment of a total $64,055,000 bond authorization approved by the voters of the district; upon issuance there will be $4,730,000 un-issued for water, sewer and drainage.

Staff has expedited review with approval requested by the District at one meeting to ensure an April 9 sale date. The original debt structure extended debt repayment terms by six years and retired 93 percent of the principal being issued in 2008 within the last six years, which extended the city obligation to rebate taxes to the MUD by six years. Recommendations addressing staff concerns were made to the financial advisor and bond counsel as directed under Chapter 5 of the Code of Ordinances, and modifications have been made to the debt structure.

Jeanne McDonald, Bond Counsel for MUD No. 21, stated the city is extending the terms of the debt for three years. City will contribute toward paying off the district debt for an additional three years, yet is still consistent with what was agreed upon in the 1977 contract which stated City would continue to pay the rebate until all District bonds are paid off even if the amount of the debt is increased.

Following a full and complete discussion, Council Member Abraham, seconded by Council Member Wong, made a motion to approve authorizing Fort Bend County Municipal Utility District No. 21, $4,000,000 Unlimited Tax and Contract Revenue Bonds Series 2008. The motion carried unanimously. Council Member Jones as a property owner within the District abstained.

CONTRACTS AND AGREEMENTS

EMERGENCY WATER SUPPLY CONTRACT

Mayor Wallace introduced consideration on an Emergency Water Supply Contract by and between the City of Sugar Land and Fort Bend County Municipal Utility District No. 25.

Ms. SuEllen Staggs, Director of Utilities, stated Fort Bend Municipal Utility District Number 25 (District) has requested permission to install an emergency interconnect with the city. The interconnect will only be opened to provide the District with water in the event of an emergency that resulted in the inability to supply their customers with water for consumption or fire fighting purposes. City currently has other emergency interconnects including WCID #2, Stafford; First Colony MUD #9, Missouri City; Fort Bend Utilities, and Imperial. Fort Bend MUD 25 has been a good neighbor; several years ago, Airport was having significant problems with septic systems and City did not have wastewater lines near the Airport. The city and MUD 25 reached an agreement whereby the District treats the wastewater from the Airport. The current wastewater services contract expires in 2014; the District has agreed to serve the Airport for an additional 10 years in consideration of the interconnect agreement. The partnership has saved the Airport and Utility Fund significant capital costs.

The interconnect agreement terms include: City will provide water for emergency use only for 30 days; emergency is defined as loss of at least 50 percent of the production capacity or a fire; cost of water will be at residential rate including surface water fees; MUD 25 will design, construct, own and maintain water line

and meter; City reviews and approves plans; City is not obligated if the city has own emergency; contract is subject to the city Drought Contingency Plan; term is for 20 years, automatically renews after 20 years, and can be terminated with 90 day notice.

Following a full and complete discussion, Council Member Parmer, seconded by Council Member Olson, made a motion to approve an Emergency Water Supply Contract by and between the City of Sugar Land and Fort Bend County Municipal Utility District No. 25. The motion carried unanimously.

ORDINANCES AND RESOLUTIONS

ORDINANCE NO. 1668 – WATER LINE EASEMENT IN

LAKE POINTE TOWN CENTER, TRACT 3

Mayor Wallace introduced FIRST CONSIDERATION: CITY OF SUGAR LAND ORDINANCE NO. 1668 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, ABANDONING AND RELEASING A PORTION OF A TEN-FOOT WATER LINE EASEMENT LOCATED IN LAKE POINTE TOWN CENTER, TRACT 3.

Mr. Clayton Taylor, Right of Way Manager, stated Lake Pointe Town Center LTD. requested the City abandon a portion (0.2816 acres) of a 10-foot water line easement in Lake Pointe Town Center, Tract 3. A new easement has been dedicated to accommodate the commercial development pursuant to the Lake Point Tract “C” replat. Engineering acknowledged initial acceptance of the new water line, which is in service.

Public Works staff completed review of the proposal to abandon the portion of a 10-foot water line easement, and the Development Review Committee (DRC) including representatives from Engineering and Utilities Departments has determined that the proposed abandonment will not hinder maintenance or operation of the public infrastructure. Based on findings of the review, Public Works has no objection to the proposed abandonment.

Following a full and complete discussion, Council Member Olson, seconded by Council Member Schiff, made a motion to pass to second reading CITY OF SUGAR LAND ORDINANCE NO. 1668 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, ABANDONING AND RELEASING A PORTION OF A TEN-FOOT WATER LINE EASEMENT LOCATED IN LAKE POINTE TOWN CENTER, TRACT 3. The motion carried unanimously.

WORKSHOP

VISIONING EFFORTS AND ENTERTAINMENT DISTRICT

Mayor Wallace introduced discussion on visioning efforts and entertainment district.

Mr. Joseph Esch, Executive Director Business and Intergovernmental Relations, presented an update of the actions undertaken over the past year, a current status, and recommendations to chart a course forward. There are approximately 1,000 acres of undeveloped land in the community outside of the Imperial Sugar tract remaining for development. This is the last opportunity for City to accomplish a coordinated effort, meeting the needs of all owners and accomplishing community goals, consolidating and building on base work in existing City documents.

City started with a two-phase Visioning process, which initially included forming a Task Force of 25 individuals who created a Vision Statement. Phase II included creating a base line of expectations and agreement between Newland and the city, and conceptual site planning. City is currently working with Newland Communities to create an agreed map of uses, identify agreed massing/square footage and uses, create framework for development agreements to accomplish vision with future developers, create a common development theme, request to split cost of conceptual design, and identify possible incentives needed, possibly a TIRZ.

Conceptual plan status includes the scope , remainder of commercial property in visioning area includes a 95 acre option and balance of University of Houston property with U of H participation; anticipate same process used in conceptual planning for Entertainment District; and will require budget adjustment, anticipated April 2008 and Council approval of contract, anticipated May 2008.

The goal of the city is to create a series of venues that provide a variety of year-round entertainment activities for all ages that tie into both the University of Houston and community programs and activities. The Vision Task Force recommended creating an Entertainment District with elements of: festival site, indoor concert venue, minor league ballpark, cultural arts venue/performing arts academy, full service hotel and convention center. The conceptual site plan includes connectivity to Brazos Park, Highway 59, and the University of Houston current facility.

The Festival Site would be tied into Phase II of Brazos Park and would be the first opportunity to develop, and meets the city current and growing need for large outdoor event venues. Phase II of park planning is currently in the budget, a firm selection process is underway; anticipated inclusion of design and development in 2008/09 budget.

The Indoor Concert Venue is a flexible design to handle events from approximately 2,000 to 6,500 attendees; primary uses include concerts, traveling shows, corporate meetings and events; secondary uses include graduations and performing arts venue for local school districts and community needs. Status of the Indoor Concert Venue includes Memorandum of Understanding (MOU) approved in May 2007 with Anschutz Entertainment Group (AEG), preliminary design completed in August 2007, draft development agreement completed in November 2007, financial and market feasibility assessment completed which indicates market opportunity for identified project.

In January 2008 meetings, AEG requested a change in base line assumptions; City is continuing discussions and evaluating impact of the AEG request. Ultimately, there were four tests that Council assigned for this project: (1) could not affect security, (2) could not have a negative traffic impact, (3) could not affect noise, and (4) had to pay for itself, could not use property taxes to pay for the project and had to be self-funding.

The city goal for a Minor League Ballpark is to develop an affiliated or independent minor league baseball facility. The benefits of a Ballpark include: Supports regional draw objective, Family and youth oriented experience, Allows educational ties to event and venue management, sports management and marketing, sports medicine, and college and high school baseball; Provides venue with multiple uses for tournaments, corporate events. City is currently in discussions with owners and a financial feasibility assessment is forthcoming, a 10-12 week process, and will require 4B budget adjustment and contract approval by City Council.

Objectives for a Cultural Arts Venue include providing a facility to promote, develop and showcase a community cultural and performing arts group, K-12 and U of H educational programs and performances, and a variety of community and private events. Cultural Arts facility could include classroom space for physical arts of dance, music, painting, sculpture, theater; a small theater; display and exhibit space; and public art in and around the venue. City staff has initiated discussions between University of Houston and Fort Bend ISD on partnership and development of academies. Lakeview Auditorium could provide a short term opportunity to address current needs; staff is working with Sugar Land Cultural Arts Foundation on a business plan and proposal for completion of the auditorium restoration, inclusive of marketing and use of the facilities.

City is looking at a full service Hotel and Convention Center space which could tie in with University of Houston Hilton School of Management and other programs. Status is initial concept discussions were held with the University of Houston, the city remains open to partnership opportunities, and anticipates pursuing after other elements of entertainment district are solidified.

Staff recommendations include: Festival Site: Complete Phase II Brazos Park master plan with tie to festival site and focus on festival site in next year budget. Indoor Concert Venue: Continue discussions with AEG on indoor concert venue and explore impact of new financial proposal provided by AEG. Minor League Ballpark: Conduct financial and market feasibility assessment for minor league baseball, continue discussions with ownership groups, and select ownership group and enter into memorandum of understanding. Cultural Arts Venue: Continue promotion of discussions with University of Houston and Fort Bend ISD on development of performing arts academies, and consider opportunities for ties with other museums, Houston Children’s Museum and Museum of Fine Arts. Full Service Hotel and Convention Center: Remain open to discussions with University of Houston and Telfair on location opportunities and program ties.

Administrative plans include Council adoption of entertainment district conceptual plan and City requesting assistance from University of Houston for: Commitment of support from U of H to create entertainment district, development of Sugar Land campus as degree granting institution for Bachelor and Graduate Degrees, development of common architectural theme for development on U of H Sugar Land campus, and continue discussions with FBISD on performing arts academies.

Mayor Wallace stated that moving forward, the entertainment district does fit with what the community and Council is looking for, and that he would definitely be in favor of adopting the entertainment district as a Conceptual Plan. City Manager Bogard stated Council discussion allows staff to continue moving forward; during the next few weeks there will be important meetings held with major stakeholders.

Council questioned the Land Use Plan and the Conceptual Plan, and zoning issues for the entertainment district area; the University of Houston is exempt from zoning as a state entity.

Council discussion ensued regarding plans on a study for the Baseball Park, Anschutz Entertainment Group

request for financial proposal change, and partnership with University of Houston. Staff has had discussions with the vice chancellors of the University who have seen the Conceptual Plan and have a facility development agreement which was required under the city lease with UofH for the entertainment venue. The current lease agreement provides that on 52 acres, the city could build a number of facilities, all of which are included in the entertainment district. City can not accomplish all of the elements included in the vision without participation of the University. Mr. Bogard added that a degree granting institution at the University is a priority to the city and requests that Council take formal action to document and communicate the objective.

Council consensus was to move forward with a resolution for the Conceptual Plan and a resolution requesting a degree granting institution with the University of Houston Sugar Land.

RATE FILING

CENTERPOINT ENERGY

Mayor Wallace introduced CenterPoint Energy gas rate filing and request for rate change.

Mr. Doug Ward, District Manager, CenterPoint Energy, Texas Coast Division, stated CenterPoint Energy Gas has filed an application with cities retaining original jurisdiction over rates and services to increase rates within the Texas Coast Division by $7.36 million; the application was filed with the city on March 6, 2008. The proposed city resolution suspends the effective date of the rate increase for the maximum period permitted by law to allow the city time to evaluate the filing. CenterPoint Energy has filed statements of intent with the Texas Railroad Commission and 47 other cities.

Company revenues in the Texas Coast Division are not keeping pace with increasing operating costs and capital investment required to maintain safe, adequate and safe, reliable service. The company has worked hard to keep the costs down and continues to provide the service at a reasonable rate. Unfortunately, the costs of labor, operating costs, materials and supplies continues to rise. Capital investment necessary to serve the area, to serve new customers, replace the old pipelines and improve the system is needed. The Texas Coast Division has not had a general rate increase in over 30 years.

The law provides that a rate request made by a natural gas utility cannot become effective until 35 days following the filing of the application to change rates. The law permits the city to suspend the effective date for 90 days. If the city does not take action to suspend the filing, CenterPoint may begin charging increased rates after April 10, 2008. CenterPoint, annual rates would increase by approximately $42 for residential customers.

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.

Council Member Parmer reported attending Planning and Zoning meeting where staff presented a workshop

on the Houston Museum of Natural Science/Sugar Land and held two Public Hearings; Transportation Policy Council meeting and discussions on TxDOT budget concerns and the possible short funding impact to projects within the city of Sugar Land.

Council Member Abraham reported he attended the Festival of Colours: Holi 2008 at Oyster Creek Park that was attended by approximately 6,000 people from surrounding regions.

Council Member Olson reported attending the Sugar Land Little League 50^th Anniversary celebration and the CASA Blue Ribbon Quilt project where Council Member Schiff was emcee; commenting both were very enjoyable events.

Council Member Jones reported attending the Fort Bend CASA Blue Ribbon Quilt event which was held in awareness of Child Abuse Prevention Month; the ARC of Fort Bend County was celebrating the conclusion of Celebrating Abilities month, both events were well-attended and very successful.

Mayor Wallace stated that the Mayor’s Youth Advisory Council held their yearly “think tank” session resulting in the “Big Day Out” which will take place on Sunday, April 6, at Oyster Creek Park, with the Night Beat Band performing. The focus is on healthy lifestyle issues and includes moonwalks, games, a walk, booths from Whole Foods, Shape Up Sugar Land, Fort Bend Fit, Methodist Hospital, Sugar Land Gyms, and many others. Registration for the walk is 2:30-3:00 p.m.; booths will be open from 2:30-5:00 p.m.

CITY MANAGER REPORT

City Manager Allen Bogard stated there was no report.

RECESS REGULAR MEETING

Mayor Wallace recessed the Regular Meeting to go into Closed Executive Session, time 7:51 o’clock P.M.

CLOSED EXECUTIVE SESSION

Mayor Wallace introduced Closed Executive Session as authorized by Chapter 551, Texas Government Code, in accordance with:

Legal Advice: Section 551.071, Texas Government Code (Consultation with City’s Attorney

to receive legal advice.)

a) For the purpose of discussion with respect to CenterPoint Energy gas rate increase.

Mr. Joe Morris, City Attorney.

ADJOURN CLOSED EXECUTIVE SESSION

Mayor Wallace adjourned the Closed Executive Session, time 8:43 o’clock P.M.

RECONVENE MEETING

Mayor Wallace reconvened the Regular Meeting, time 8:45 o’clock P.M.

ORDINANCES AND RESOLUTIONS

RESOLUTION NO. 08-12 - CENTERPOINT ENERGY

REQUESTED RATE CHANGE

Mayor Wallace introduced consideration on CITY OF SUGAR LAND RESOLUTION NO. 08-12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND, TEXAS, SUSPENDING THE APRIL 10, 2008, EFFECTIVE DATE OF CENTERPOINT ENERGY RESOURCES CORP., D/B/A CENTERPOINT ENERGY ENTEX AND CENTERPOINT ENERGY TEXAS GAS (CENTERPOINT) REQUESTED RATE CHANGE TO PERMIT THE CITY TIME TO STUDY THE REQUEST AND TO ESTABLISH REASONABLE RATES; APPROVING COOPERATION WITH THE GULF COAST COALITION OF CITIES AND OTHER CITIES IN THE CENTERPOINT AREA TO HIRE LEGAL AND CONSULTING SERVICES AND TO NEGOTIATE WITH THE COMPANY AND DIRECT ANY NECESSARY LITIGATION AND APPEALS; RATIFYING THE SELECTION OF LLOYD GOSSELINK AS LEGAL COUNSEL; REQUIRING REIMBURSEMENT OF CITIES’ RATE CASE EXPENSES; FINDING THAT THE MEETING AT WHICH THIS RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; AND REQUIRING NOTICE OF THIS RESOLUTION TO THE COMPANY AND LEGAL COUNSEL.

Following a full and complete discussion, Mayor Wallace, seconded by Council Member Parmer, made a motion to approve CITY OF SUGAR LAND RESOLUTION NO. 08-12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND, TEXAS, SUSPENDING THE APRIL 10, 2008, EFFECTIVE DATE OF CENTERPOINT ENERGY RESOURCES CORP., D/B/A CENTERPOINT ENERGY ENTEX AND CENTERPOINT ENERGY TEXAS GAS (CENTERPOINT) REQUESTED RATE CHANGE TO PERMIT THE CITY TIME TO STUDY THE REQUEST AND TO ESTABLISH REASONABLE RATES; APPROVING COOPERATION WITH THE GULF COAST COALITION OF CITIES AND OTHER CITIES IN THE CENTERPOINT AREA TO HIRE LEGAL AND CONSULTING SERVICES AND TO NEGOTIATE WITH THE COMPANY AND DIRECT ANY NECESSARY LITIGATION AND APPEALS; RATIFYING THE SELECTION OF LLOYD GOSSELINK AS LEGAL COUNSEL; REQUIRING REIMBURSEMENT OF CITIES’ RATE CASE EXPENSES; FINDING THAT THE MEETING AT WHICH THIS RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; AND REQUIRING NOTICE OF THIS RESOLUTION TO THE COMPANY AND LEGAL COUNSEL.

Council Member Jones, seconded by Council Member Abraham, made a motion to amend the resolution to delete the portions of the resolution related to joining the coalition and hiring the attorneys, but retaining the portion relating to the suspension of the rates for 90 days. City Attorney Joe Morris clarified the motion, stating that the amended resolution would cover the suspension of rate, everything else would be deleted.

Mayor Wallace called for a vote on the amended motion by Council Member Jones, seconded by Council Member Abraham to amend the resolution. The amended motion failed.

Mayor Wallace called for a vote on the motion by Mayor Wallace, seconded by Council Member Parmer, to approve CITY OF SUGAR LAND RESOLUTION NO. 08-12 as presented. The motion carried unanimously.

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 8:55 o'clock P.M.

_____________________________________

Glenda Gundermann, City Secretary

(SEAL)