Agenda Request

	City Council
	Agenda Request
Agenda Of:	October 02, 2007	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 18, 2007 Approve Minutes
Exhibits:	Minutes september 18, 2007
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 the minutes of the City Council meeting September 18, 2007.
Exhibits

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

CITY OF SUGAR LAND

CITY COUNCIL REGULAR MEETING

tuesday, september 18, 2007

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 18, 2007 at 5:49 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 5:49 o’clock P.M.

INVOCATION

Council Member Olson delivered the invocation.

PLEDGE OF ALLEGIANCE

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

RECOGNITIONS

BOY SCOUT TROOP NO. 1540

Mayor Wallace recognized Boy Scout Troop No. 1540 who were in attendance to earn the Citizenship in the Community merit badge.

TEXAS COMMISSION ON ENVIRONMENTAL QUALITY

DRINKING WATER AWARD

Mayor Wallace stated the Utilities Department recently received two recognition certificates, one for Outstanding Public Drinking Water System Award 2006 and one for Total Coliform Rule Program Award 2006. The purpose of the awards is to recognize the commitment to protecting public health, focus public attention on the importance of water facilities, and provide opportunities for water systems management to interact with each other, national organizations, and the regulatory agency. Ms. SuEllen Staggs, Director of Utilities, stated that the water utilities staff is committed to providing the best service 24/7 and the best water. The two awards prove once again that the finest tasting and safest drinking water comes directly from the faucets in our homes. The Total Coliform Rule Program award recognizes systems that have successfully complied with the Total Coliform Rule without a single violation for 60 consecutive months. The Texas Commission on Environmental Quality stated, “in achieving this consistent level of compliance with the Total Coliform Rule, the systems are doing an exceptional job of protecting public health.”

Mayor Wallace congratulated the Utilities Department on receipt of the awards and thanked them for their efforts and dedication in providing the city with the best service, finest tasting and safest water.

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. 1640 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, AMENDING CHAPTER 2, ARTICLE VI OF THE CODE OF ORDINANCES BY ESTABLISHING A MUNICIPAL COURT COLLECTION FEE; III.B) bid evaluation and authorizing execution of a Contract in an amount not to exceed $200,000.00 with PB & J Pavement Marking, Incorporated for pavement marking services for the period October 1, 2007 through September 30, 2008; III.C) authorizing Purchase in the amount of $40,365.35 from SHI – Government Solutions for Novell Master License Agreement; III.D) authorizing execution of a Five-Year Lease Agreement by and between the City of Sugar Land and William Smith, Sr. Tri County Child Development Council, Incorporated for lease of Mayfield Neighborhood Park, 112 Avenue D, for operation of Head Start Center; III.E) authorizing execution of an Interlocal Agreement by and between the City of Sugar Land and Fort Bend County for fuel for Fire Station No. 6 vehicles; III.F) authorizing execution of a Primary Interlocal Agreement by and between the City of Sugar Land and Fort Bend County for mutually beneficial projects; III.G) authorizing execution of a Contract in the amount of $91,060.00 with Naztec ITS for retiming traffic signals on State Highway 6 and Sweetwater Boulevard; III.H) authorizing execution of an Agreement in an amount not to exceed $206,321.00 with Comp Benefits

for employee dental benefits; and authorizing execution of an Agreement in an amount not to exceed $85,942.00 with The Standard for group life products; and authorizing execution of a renewal Agreement in an amount not to exceed $4,338,409.00 with Aetna Insurance for the 2008 Plan Year employee medical benefits; and rejecting all requests for proposals received for flexible spending account administration; III.I) authorizing execution of a month-to-month Lease Agreement by and between the City of Sugar Land and All Around Aviation for hangar and office space located at 12718 Diamond Drive; III.J) authorizing execution of an Advanced Funding Agreement for Texas Department of Transportation Change Order No. 17 in an amount not to exceed $46,905.16 for construction of two access road turnouts for U. S. Highway 90A widening project; III.K) CITY OF SUGAR LAND RESOLUTION NO. 07-30 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND, TEXAS, PROVIDING FOR THE APPROVAL OF THE AGREEMENT DATED SEPTEMBER 18, 2007 BETWEEN THE STATE OF TEXAS AND THE CITY OF SUGAR LAND, FOR THE INSTALLATION, CONSTRUCTION, EXISTENCE, USE, OPERATION AND MAINTENANCE OF CERTAIN TRAFFIC SIGNALS AND RELATED EQUIPMENT TO IMPROVE TRAFFIC PROGRESSION AND PEDESTRIAN SAFETY AT THE LOCATION(S) SHOWN ON THE AGREEMENT, ATTACHED HERETO AND MADE A PART HEREOF, IN THE CITY OF SUGAR LAND, AND PROVIDING FOR THE EXECUTION OF SAID AGREEMENT; III.L) authorizing Purchase in an amount not to exceed $187,203.00 from Structural and Steel Products, Incorporated for ornamental traffic signal poles for U.S. Highway 59 at State Highway 99; III.M) CITY OF SUGAR LAND RESOLUTION NO. 07-31 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND, TEXAS, PROVIDING FOR THE APPROVAL OF THE AGREEMENT DATED SEPTEMBER 18, 2007 BETWEEN THE STATE OF TEXAS AND THE CITY OF SUGAR LAND, FOR THE INSTALLATION, CONSTRUCTION, EXISTENCE, USE, OPERATION AND MAINTENANCE OF CERTAIN TRAFFIC SIGNALS AND RELATED EQUIPMENT TO IMPROVE TRAFFIC PROGRESSION AND PEDESTRIAN SAFETY AT THE LOCATION(S) SHOWN ON THE AGREEMENT, ATTACHED HERETO AND MADE A PART HEREOF, IN THE CITY OF SUGAR LAND, AND PROVIDING FOR THE EXECUTION OF SAID AGREEMENT; III.N) authorizing Purchase in an amount not to exceed $579,244.00 from Structural and Steel Products, Incorporated for ornamental traffic signal poles for U. S. Highway 90A widening; III.O) authorizing Payment for land acquisition costs in the amount of $1,412,408.00 for the Sugar Creek/Market Place drainage improvements, and approval of a capital project budget amendment in the amount of $1,220,000.00 in revenues and expenditures; III.P) approval of the minutes of the regular meeting of September 04, 2007.

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

CONTRACTS AND AGREEMENTS

FUEL STORAGE CAPACITY EXPANSION

Mayor Wallace introduced consideration on a Contract in the amount of $222,295.00 with Pemco, Incorporated for fuel storage capacity expansion and authorizing a budget adjustment in the amount of $66,000.00.

Ms. SuEllen Staggs, Director of Utilities, stated the project was initiated after Hurricane Rita when it was determined that the City is deficient in fuel storage capacity for diesel, the predominant fuel used during emergencies to operate all the generators and right angle drives for the critical City facilities. Current diesel storage for existing emergency equipment, fire trucks and large vehicles would be exhausted in approximately 1½ - 2 days during an incident.

The project scope of work consists of installing a 6,000-gallon underground diesel storage tank at the Gillingham site and a 6,000-gallon above ground diesel storage tank at the Austin Parkway site with new level sensors and dispensers, and any site restoration. The above ground tank is a mirror duplicate of the existing above ground tank at Austin Parkway. The Austin Parkway site fuel depot was designed for an additional tank; the foundation for the proposed tank was poured with the original installation 15 years ago. Once the two tanks are installed, the capacity will increase to about 4-1/2 to 5 days, which should be sufficient during an emergency. Both installations will be integrated into the City fuel management system and will more than double the diesel storage capacity (from 8,000 to 20,000) at the two current fueling stations without significant construction.

The only bidder was Pemco, Incorporated; consulting engineers Hostetler/Johnston, Incorporated completed a reference review and evaluation and provided a letter of recommendation indicating Pemco is capable of completing the project. Anticipated completion date is May 2008.

Council requested information relative to shelf-life of the increased capacity of diesel, interlocal agreements with County and nearby cities during emergency situations and mobility issues.

Following a full and complete discussion, Council Member Schiff, seconded by Council Member Abraham, made a motion to approve execution of a Contract in the amount of $222,295.00 with Pemco, Incorporated for fuel storage capacity expansion and authorizing a budget adjustment in the amount of $66,000.00. The motion carried unanimously.

PUBLIC HEARINGS

CONDITIONAL USE PERMIT – EXPANSION OF LONG TERM CARE FACILITY

Mayor Wallace convened the Public Hearing to receive and hear all persons desiring to be heard on a request for a Conditional Use Permit for expansion of a long term care facility located at 1550 First Colony Boulevard in the Business Office (B-O) District.

Mr. Douglas Schomburg, Assistant Planning Director, stated the property is located to the south of the intersection of Soldiers Field Court and First Colony Boulevard on an eight acre site that has been used consistently as a long term care facility since 2002. City Council approved a CUP in 2004 for an expansion to the hospital; however, expansion was not carried out and the CUP expired. The applicant has revised expansion plans that are based on the 2004 CUP concept but reduced the proposed square footage by 62 percent; the proposed expansion is approximately 12,802 square feet in a one-story plan. The site has adequate parking and circulation.

This item went before the Planning and Zoning Commission on July 26, 2007; no significant issues were expressed and the Commission voted unanimously to recommend approval of the requested CUP on August 14, 2007.

Staff has received one general inquiry at this time; no opposition received.

Mayor Wallace entertained comments from the public; hearing none the Public Hearing was closed.

ORDINANCE NO. 1642 – CONDITIONAL USE PERMIT FOR

EXPANSION OF LONG TERM CARE FACILITY

Mayor Wallace introduced FIRST CONSIDERATION: CITY OF SUGAR LAND ORDINANCE NO. 1642 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, GRANTING A CONDITIONAL USE PERMIT TO EXPAND AN EXISTING HOSPITAL FACILITY LOCATED AT 1550 FIRST COLONY BOULEVARD.

Mr. Douglas Schomburg, Assistant Planning Director, stated he had no further comments.

Mayor Wallace questioned the nature of one general inquiry received regarding the CUP for expansion of the existing hospital facility. Mr. Schomburg stated the inquiry referred to location of the proposed expansion, which will be to the center in the back of the existing facility.

Following a full and complete discussion, Council Member Abraham, seconded by Council Member Olson, made a motion to pass to second reading CITY OF SUGAR LAND ORDINANCE NO. 1642 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, GRANTING A CONDITIONAL USE PERMIT TO EXPAND AN EXISTING HOSPITAL FACILITY LOCATED AT 1550 FIRST COLONY BOULEVARD. The motion carried unanimously.

REZONE ACREAGE FROM MIXED USE CONSERVATION

DISTRICT TO BUSINESS OFFICE DISTRICT

Mayor Wallace convened the Public Hearing to receive and hear all persons desiring to be heard on a request to rezone approximately 31 acres bounded by acreage within Imperial Park, north by Guenther Street, east by Mill Street and Brooks Street, and south by Matlage Way and Brooks Street from Mixed Use Conservation District to Business Office (B-O) District.

Ms. Sabine Somers-Kuenzel, Director of Planning, stated the proposed rezoning is the first of two Public Hearings related to the Mixed Use Conservation (MUC) District Strategic Project. The proposal is to rezone approximately 31 acres within the MUC District to Business Office (B-O), which removes several large tracts of land to the south of Guenther along Matlage Way from the District.

Staff conducted fieldwork, analysis, and research, identifying characteristics of the area; and found definite development and building style patterns. On the non-residential properties, little in common was found. Staff’s initial recommendations were taken to the stakeholder group and two meetings were held; one in January 2007, which resulted in some changes being suggested, and a final meeting in late April. The result was general concurrence with the stakeholder group. The recommendation to rezone some of the acreage to Business Office is based on the fact that none of the sites share common characteristics with the core of the MUC District. The sites include city-owned facilities, a U.S. Post Office, a nursing home, and a church. Staff is recommending the Brooks Street frontage be maintained and kept in the MUC District.

Following two workshops in 2007 with the Planning and Zoning Commission on the MUC District Strategic Project, a Public Hearing was held on July 26, 2007 with the Commission regarding the rezoning proposal. On August 14, 2007 the Commission voted unanimously to recommend approval of the 31 acre rezoning to Business Office (B-O) District.

Mayor Wallace entertained comments from the public; hearing none the Public Hearing was closed.

ORDINANCE NO. 1641 – CHANGE OF ZONING FROM MIXED USE CONSERVATION DISTRICT TO BUSINESS OFFICE DISTRICT

Mayor Wallace introduced FIRST CONSIDERATION: CITY OF SUGAR LAND ORDINANCE NO. 1641 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, PROVIDING FOR A CHANGE OF ZONING FROM MIXED USE CONSERVATION ZONING DISTRICT (MUC) TO BUSINESS OFFICE ZONING DISTRICT (B-O) FOR APPROXIMATELY 31 ACRES OF LAND LOCATED ALONG MATLAGE WAY BETWEEN GUENTHER AND AZALEA STREETS; THE EAST SIDE OF BROOKS

STREET BETWEEN U.S. 90A AND GUENTHER STREET; AND ALONG THE SOUTH SIDE OF U.S. 90A EASTBOUND FROM GUENTHER STREET TO OYSTER CREEK.

Ms. Sabine Somers-Kuenzel, Director of Planning, stated there were no further comments.

Following a full and complete discussion, Council Member Parmer, seconded by Council Member Olson, made a motion to pass to second reading CITY OF SUGAR LAND ORDINANCE NO. 1641 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, PROVIDING FOR A CHANGE OF ZONING FROM MIXED USE CONSERVATION ZONING DISTRICT (MUC) TO BUSINESS OFFICE ZONING DISTRICT (B-O) FOR APPROXIMATELY 31 ACRES OF LAND LOCATED ALONG MATLAGE WAY BETWEEN GUENTHER AND AZALEA STREETS; THE EAST SIDE OF BROOKS STREET BETWEEN U.S. 90A AND GUENTHER STREET; AND ALONG THE SOUTH SIDE OF U.S. 90A EASTBOUND FROM GUENTHER STREET TO OYSTER CREEK. The motion carried unanimously.

AMENDMENTS TO SUGAR LAND DEVELOPMENT CODE

Mayor Wallace convened the Public Hearing to receive and hear all persons desiring to be heard on amendments to Sugar Land Development Code, Chapter Two (Zoning) for Mixed Use Conservation District regulations.

Ms. Sabine Somers-Kuenzel, Director of Planning, stated the proposed Development Code amendments conclude the second portion of the Mixed Use Conservation (MUC) District Strategic Project. The proposal, covered in a City Council workshop on August 28, 2007, replaces a Conditional Use Permit process with a staff-approvable process, with specific criteria, for new buildings and building additions within the MUC District. Also provided is a Planning and Zoning Commission approval option for proposals from applicants when an alternative design, layout, or materials are desired that do not qualify for staff approval. City Council concurred with the Commission’s proposal with the exception that an applicant could appeal a denial by the Commission directly to the Council.

The Planning and Zoning Commission held a Public Hearing on the proposal on July 26, 2007; there was no opposition. The Commission unanimously recommended approval of the proposed amendments, with the request that Staff provide an annual review for the District regulations to examine results of the standards.

The amendments to the district regulations include the following: adds antique stores, book stores, and accounting services to the list of permitted uses; classification of original residential properties into three specific sectors based on characteristics; list of specific standards (staff-approvable); and MUC Site Development Permit approval option by Commission (Commission-approvable) with appeal option to Council.

Mayor Wallace entertained comments from the public; hearing none the Public Hearing was closed.

ORDINANCE NO. 1645 – AMENDING CHAPTER 2 OF SUGAR LAND DEVELOPMENT CODE

Mayor Wallace introduced FIRST CONSIDERATION: CITY OF SUGAR LAND ORDINANCE NO.

1645 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, AMENDING CHAPTER 2, OF THE SUGAR LAND DEVELOPMENT CODE BY AMENDING REGULATIONS FOR THE MIXED USE CONSERVATION DISTRICT.

Ms. Sabine Somers-Kuenzel, Director of Planning, stated she had no further comments.

Council questioned the public concerns regarding parking in the area. Staff stated the parking issue was a concern, and the public wanted to continue with past practices which were to have exemptions in the ordinance so that massive parking lots are not created and a residential feel is maintained in the area. This is carried over from direction that the original planning staff had in implementing the original MUC regulations.

Following a full and complete discussion, Council Member Abraham, seconded by Council Member Schiff, made a motion to pass to second reading CITY OF SUGAR LAND ORDINANCE NO. 1645 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, AMENDING CHAPTER 2, OF THE SUGAR LAND DEVELOPMENT CODE BY AMENDING REGULATIONS FOR THE MIXED USE CONSERVATION DISTRICT. The motion carried unanimously.

ORDINANCES AND RESOLUTIONS

ORDINANCE NO. 1647 – AMENDING CHAPTER TWO, CODE OF ORDINANCES

Mayor Wallace introduced FIRST CONSIDERATION: CITY OF SUGAR LAND ORDINANCE NO. 1647 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, AMENDING CHAPTER TWO OF THE CODE OF ORDINANCES BY DELETING THE FEE FOR A CONDITIONAL USE PERMIT WITHIN THE MIXED USE CONSERVATION DISTRICT AND ADDING A FEE FOR A SITE DEVELOPMENT PERMIT IN THE MIXED USE CONSERVATION DISTRICT.

Ms. Sabine Somers-Kuenzel, Director of Planning, stated the ordinance adds a fee for the administrative process involved in review for a Site Development Permit for construction proposed within the Mixed Use Conservation (MUC) District. The new process is made possible by the Development Code amendment as outlined in Ordinance No. 1645. Currently, the Code of Ordinances requires a fee for the processing of a Conditional Use Permit (CUP) application for the district. The new Development Code amendments remove the CUP process and replace it with a Site Development Permit that can be approved by staff. If staff cannot approve the plans, there is an option for review and approval by the Planning and Zoning Commission, with an appeal option to Council. The existing fee structure is proposed that applied to the CUP process in the MUC District and applies it to the Site Development Permit process; the Code is required to be amended to reflect this change.

Mayor Wallace stated the fee for a site development permit within the Mixed Use Conservation District would be $400.00.

Following a full and complete discussion, Council Member Schiff, seconded by Council Member Parmer, made a motion to pass to second reading CITY OF SUGAR LAND ORDINANCE NO. 1647 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, AMENDING CHAPTER TWO OF THE CODE OF ORDINANCES BY DELETING THE FEE FOR A CONDITIONAL USE PERMIT WITHIN THE MIXED USE CONSERVATION DISTRICT AND ADDING A FEE FOR A SITE DEVELOPMENT PERMIT IN THE MIXED USE CONSERVATION DISTRICT. The motion carried unanimously.

ORDINANCE NO. 1644 – ADOPTING THE ANNUAL BUDGET FOR CITY OF SUGAR LAND

Mayor Wallace introduced FIRST AND FINAL CONSIDERATION: CITY OF SUGAR LAND ORDINANCE NO. 1644 AN ORDINANCE ADOPTING THE ANNUAL BUDGET FOR THE CITY OF SUGAR LAND, TEXAS, FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2007 AND ENDING SEPTEMBER 30, 2008, APPROPRIATING THE SUMS AS SET FORTH THEREIN, ADOPTING THE CAPITAL IMPROVEMENTS PROGRAM 2008-2012, AND ADOPTING A COMPENSATION PLAN.

Ms. Linda Symank, Director of Fiscal Services, stated the ordinance adopts the Fiscal Year 2008 Budget, five-year Capital Improvement Program, and 2008 Compensation Plan. The process began in March 2007, and Staff has adhered to requirements of the City Charter, Texas Government Code, and truth in taxation laws in development of the budget and proposal of a tax rate.

In compliance with City Charter, Staff filed the budget with Council on July 24, 2007 and during August, five budget workshops were held. During that time, Staff reviewed with Council the projections for current year, projections for 2008 revenues, and proposed expenditures. On August 21 and September 24, two public hearings were held on budget.

Staff is proposing a budget of $150,184,910, which includes $114.6 million in the Operating Budget, $8.6 million in the two Development Corporations, and $27 million in the first year of the five-year Capital Improvement Programs.

Since the budget was filed on July 24, revisions have been made; certified tax roll was received, and revenues were adjusted. Revisions to the General Fund include the funding of two additional police investigators per Council request, and additional funding for non-recurring items in terms of facility maintenance, computers, and equipment. Grants were awarded to City, and funding was adjusted.

The budget is prepared with a taxable value of $7.579 billion; a tax rate of $0.3000; based on Council direction, homestead exemption increased from 1 percent to 5 percent; Council will consider a vote on the tax rate this evening.

The five-year Capital Improvement Program (CIP) total projects for the five years is $177.3 million, $27 million is in the first year as: surface water projects – 33 percent; water and wastewater – 33 percent; streets, traffic and drainage – 22 percent; parks and municipal – 10 percent; and airport – 2 percent.

Mid-year budget adjustments include (1) Solid Waste Fund; contract expires February 2008 and in negotiations for a new contract. Based on preliminary negotiations it is likely there will be a rate increase and once that is complete there will be a budget adjustment; and (2) Capital Projects; there are many master plans and studies underway and nearing completion. A decision was made to focus the five-year CIP on current projects and to complete those. When the master plans and studies are completed, staff will go to those sources and look at additional projects that may need funding during the year, which will require a mid-year adjustment to the CIP.

Mayor Wallace commented that the average citizen in the City of Sugar Land will be writing a smaller check this year than they did last year.

Council Member Parmer commended Staff for the preparation of something that will be talked about for the next 6-7 years, which is surface water conversion stating that an extensive education process is required for an understanding of the future water supply and thanked Staff for preparing for the process as the city moves forward.

Following a full and complete discussion, Mayor Wallace, seconded by Council Member Parmer, made a motion to approve CITY OF SUGAR LAND ORDINANCE NO. 1644 AN ORDINANCE ADOPTING THE ANNUAL BUDGET FOR THE CITY OF SUGAR LAND, TEXAS, FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2007 AND ENDING SEPTEMBER 30, 2008, APPROPRIATING THE SUMS AS SET FORTH THEREIN, ADOPTING THE CAPITAL IMPROVEMENTS PROGRAM 2008-2012, AND ADOPTING A COMPENSATION PLAN. The motion carried unanimously.

ORDINANCE NO. 1648 – LEVYING PROPERTY TAX RATE FOR YEAR 2007

Mayor Wallace introduced FIRST AND FINAL CONSIDERATION: CITY OF SUGAR LAND ORDINANCE NO. 1648 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, LEVYING A PROPERTY TAX RATE FOR THE YEAR 2007; DIRECTING THE TAX ASSESSOR-COLLECTOR TO

ASSESS, ACCOUNT FOR, AND DISTRIBUTE THE PROPERTY TAXES AS HEREIN LEVIED.

Ms. Donna Svatek, Treasury Manager, stated the 2007/2008 fiscal year budget was adopted tonight based on a tax rate of $0.30000. The proposed tax rate is equal to the effective tax rate plus 3.33 percent. All required notices have been published. Two public hearings have been held on the proposed tax rate as required by law. The proposed tax rate is a decrease of 2.14 percent from the 2006 tax year. Although the city will generate more revenue from this tax rate than it would using the effective tax rate, the average homestead will see a reduction of $3.76 or 0.5 percent compared to 2006. In conjunction with the proposed tax rate, Council approved an increase to the homestead exemption from one percent to five percent for the year 2007, which saves approximately $21 on the tax bill, helping to reduce the impact of the increase in the average value.

Maintenance and operations taxes will raise $594,144 more than last year, the ordinancewill include in large type, “This tax rate will raise more taxes for maintenance and operations than last year’s tax rate.” Although the tax rate raises more for maintenance and operations than last year, increased revenues are mainly from new value on the tax roll, leading to an overall decrease in the total tax rate.

State law specifies that the Council Member making the motion to adopt the tax rate must state, “I move that property taxes be increased by the adoption of a tax rate of $0.30000.”

Mayor Wallace clarified the meaning of the ordinance, stating the average citizen who lives in the City of Sugar Land will be paying less this year than last year. The Mayor also mentioned that this tax rate is a decrease of $0.00655 from the 2006 tax rate.

Following a full and complete discussion, Mayor Wallace, seconded by Council Member Parmer, made a motion stating I move that property taxes be increased by the adoption of a tax rate of $0.30000 and to approve CITY OF SUGAR LAND ORDINANCE NO. 1648 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, LEVYING A PROPERTY TAX RATE FOR THE YEAR 2007; DIRECTING THE TAX ASSESSOR-COLLECTOR TO ASSESS, ACCOUNT FOR, AND DISTRIBUTE THE PROPERTY TAXES AS HEREIN LEVIED. The motion carried unanimously.

WORKSHOP

COMMUTER AND FREIGHT RAIL

Mayor Wallace introduced discussion on commuter and freight rail.

Mr. Dale Rudick, Director of Business and Intergovernmental Relations, stated there had been a great deal of activity recently with respect to rail, including the legislature placing TxDOT in the rail business, and the state voters approving the Rail Relocation & Improvement Fund; however, the legislature has yet to appropriate any funds for that major fund. HGAC has completed a U.S. 90A commuter rail feasibility study in which Council did approve a resolution in support of the next level of study provided they address the current conditions of mobility, safety, and quality of life. TxDOT has released their Regional Freight Rail Study. HGAC is currently performing a regional Commuter Rail Connectivity Study, and this study refers to the logistics region-wide. The Gulf Coast Freight Rail District, which is comprised of the City of Houston, Harris County, Fort Bend County, and also representation from the Port of Houston, recently held their inaugural meeting. The TxDOT Freight Rail Study has been handed off to the Freight Rail District.

As a result of Sugar Land potentially being affected by agency activities outside of our jurisdiction, City utilized the services of a rail consultant, Mr. Dick Schiefelbein who has worked with the City on a number of rail related issues, to review available rail reports and present information to Council. He is a former Deputy Administrator of the Federal Railroad Administrator and now serves as a consultant to many local agencies.

Mr. Schiefelbein stated that the first freight rail study sponsored by Harris County and the Port of Houston recommended creating a system that included super rail corridors, ones that are grade-separated from the community so that the rail operations and the community operations, particularly the mobility of motorists, are taken care of. Make the railroads more efficient and at the same time reduce the impact on the community. The idea was to consolidate trains that are coming into and out of Houston onto a few lines and to greatly improve those lines. The remaining lines would stay in place, but would only have local pickup and delivery services which are far fewer in number than the mainline trains.

There were three routes, and they all included the Highway 90-A corridor because it is so important. Also included are the industrial areas of the east end and the Hardy Toll Road corridor. These three corridors used by all railroads could consolidate rail traffic in Houston and eliminate most of the trains currently using the other rail lines in Houston.

Some models for super corridors are the Alameda Corridor Model and the Hardy Toll Road Model. The Alameda Corridor Model, which is 20 miles between Ports of Los Angeles and Long Beach and the railroad yards in downtown Los Angeles, replaced four existing railroad lines. County/Port study recommended this for tracks through Sugar Land. The example closer to home and one that may work better in climates that have as much rain as the Houston area is the Hardy Toll Road Model, 18 miles of railroad track with no crossings impacting motorists. Both these models could work in Houston, the first one just takes slight control of the water.

The Harris/ Fort Bend/ Port/City/ Railroads Study recommended a major loop bypass route with a tunnel under the Ship Channel, which was thought to reduce train traffic from Central Houston. However, this looks like a highway solution; it is not the nature of the freight rail traffic in Houston.

The Railroads’ proposal was to reduce the impact of existing railroad routes; the routes would be improved with bridges and underpasses at major roads.

The TxDOT Study is a massive; they developed a railroad network simulation model for the Houston region. The amount of data that goes into this is incredible, and TxDOT spent the money and took the time to develop this model which exists for the Houston region. The Freight Rail District or anyone who is doing a freight rail study can use the model because the hard work has been done; now one can analyze different alternatives. TxDOT also aggregated individual projects into “planning cases” (each also included grade crossing separations and closures). The first case was designed to unlock most critical rail bottlenecks; the second case was to add rail capacity to increase train speed and performance and double US 90A track through Sugar Land. The third case was a proposal to build a bypass around US 90A track.

The first illustration of these is in Planning Case 2 for the purpose of reducing train delays; the proposal was double-tracking from the west end (Rosenberg) to West Junction, which is in the vicinity of US 90A Main Street and South Post Oak Road, and is a major railroad intersection. This would cost $137 million.

The US 90A track is Union Pacific’s main line between California, Houston, New Orleans, and southeastern states and is critical to Union Pacific’s rail network It is unlikely to be eliminated or even downgraded (bypass would divert only 2/3 of trains) and is likely to be a growth corridor as imports from Asia continue to grow.

Regarding the US 90A double-tracking, mitigation proposed for Sugar Land was two grade separations, at Eldridge and Dairy Ashford. Despite the fact that the Highway 6 intersection is designed to allow a grade separation of the frontage roads at the new Highway 6 Bridge that is not even proposed. There are no other mitigation measures included in this other than the two grade separations.

Other effective mitigation measures include the illustration of the Alameda Corridor, depress the rail line into a trench, develop grade separations that do not detract from the character of the surrounding community, and re-route a substantial portion of the traffic.

The bypass that was presented as Planning Case 3 in TxDOT Report is $880 million. It looks like this is a very expensive option to show that there is no reasonable alternative to double-tracking the main line through Sugar Land. There are other alternatives that were not pursued. In a regional perspective, what this bypass does is put a lot more trains into the east end of Houston, which is an area that already has a tremendous number of trains and grade crossings.

As an alternative that was not considered in the report but should be, is pairing the track (two “one-way” tracks) along 90-A, the Union Pacific track with the Burlington-Northern/Santa Fe track that goes along 762 and making each one of them a one-way street. There could be more capacity on the existing rail track with fewer delays and fewer blocked crossings if they made these two sets of lines paired one-way tracks. Cost: $22 million. Mayor Wallace asked why this was not considered. Mr. Schiefelbein stated he was not sure, but presumes that TxDOT’s consultant was seeking solutions from the railroads and was really thinking in an engineering sense, what they could construct as opposed to what they could do operationally different.

Another alternative not considered which would have a greater impact would be to upgrade the BNSF line that goes along Highway 762 over to the existing line that comes down from Houston to serve the power plants and make that the Super Corridor, do all the things that need to be done to improve the capacity of that and to make it grade separated so that it does not impact the communities. This would divert a significant amount of traffic off of the 90-A line. Cost: $282 million.

Summary of US 90A alternatives’ estimated costs are: TxDOT Double-track US 90A $137 M; Paired track (not modeled) $22 M; BNSF as bypass (not modeled) $282 M; and TxDOT “Fort Bend Bypass” $880 M.

The decisions that will affect the rail line through Sugar Land are being made by decision-makers outside of Sugar Land. They include: Gulf Coast Freight Rail District, Texas Legislature, TxDOT, Port Authority, and Railroad companies.

Regional impacts include:

– Both bypass alternatives shift trains to tracks in Houston’s East End

– Bypass on BNSF adds trains to Sienna Plantation

Gulf Coast Freight Rail District is of critical importance to Sugar Land’s interests. They will set freight rail policy in the region for the next 15 to 20 years and will set priorities and provide funds for designated projects.

City Manager Bogard asked if there are examples in other parts of the country where there has been public sector, or federal or state assistance involved in these types of projects for freight rail consolidation similar to what we are discussing here. Mr. Schiefelbein stated that the Alameda Corridor, which was approximately $1.4 billion, had significant federal money, local monies, and a per container fee of $30 per container indexed for inflation to pay it off. In Chicago, a coordinated effort between the State of Illinois, the City of Chicago, and the six railroads that serve Chicago have received some preliminary funding. The railroads, the state, and the Federal Government each put in $100 million, and they have started their projects. They have a collection of 75 individual projects, but each one of them stands alone. In addition, in the Texas Legislature this year, there was legislation that stated all rail funds from the Federal Government would go through TxDOT with the exception of the Freight Rail District in Houston. It could be a vehicle to which Congress could designate funds which would later be appropriated to the Freight Rail District probably with some type of local match.

The Gulf Coast Freight Rail District has 11 appointed members; Leonard Scarcella was appointed by the Fort Bend mayors, and Bill Jameson was appointed by the Fort Bend County commissioners. Projects in Fort Bend County require affirmative votes from both Fort Bend County members. It will have a regional perspective; there are appointees by the Mayor of Houston, the County Judge, by other mayors, the Chairman of the Port Authority, and as a non-voting member TxDOT picked Mr. Ned Holmes. There is a conduit for federal, state, and local match funds. Currently there is no funding source.

Potential funding sources include interim funding promised (studies, not projects) by the following: City of Houston, counties, Port Authority, and H-GAC. Potential permanent funding includes the Texas Railroad Relocation and Improvement Fund (if funded in next legislative session) and designations in next federal transportation bill (individual projects).

Commuter rail issues include the following: US 90A line ranks high in commuter ridership studies; rail track exists, but has no available capacity; US 90A rail commuter line was included in both the 2025 and 2035 Regional Transportation Plans; US 90A may not be best location for Sugar Land, but its selection is unlikely to change; and 2004 Council Resolution supported next level of study, with conditions (mobility, safety & quality of life).

Mr. Rudick stated that recommendations include actively monitor/participate in Gulf Coast Freight Rail District activities; hire national firm to model and study freight bypass alternatives; revisit Council Resolution to include freight component; monitor Commuter Rail Study; keep IGR Committee informed.

Mayor Wallace suggested a study that Sugar Land would prepare should perhaps be a more cohesive effort, involving other surrounding cities; and that this possibly could be discussed at the upcoming annual work plan session; and suggested to obtain feedback from Jack Steele or others regarding funding sources in order to do an appropriate study that would represent the City of Sugar Land.

The question was raised regarding so many studies being prepared but no action taken and moving forward to the next step, Mr. Rudick commented that we have to look at several issues. It is no longer just the highway department; that has been legislatively changed. And the regional transportation plan is no longer just highways. Metro solutions have come forward and people are looking at alternatives. There are many pieces to the puzzle yet to be addressed; in the event a firm is chosen, it should be well-respected by the rail industry.

Council discussion ensued concerning other alternatives for potentially some cash support; engaging the railroads into the study; looking at the big picture, determining Sugar Land’s interests, position and goals with respect to commuter and freight rail.

City Manager Bogard stated that it is important for the City to determine the level of interest, what it would take to attempt to accomplish both short-term and long-term, whether it is reviewing the existing studies or attempting to influence the decision-making that is made by others, the level of importance on the issue, and to define the objectives.

Mr. Rudick stated he is on the Steering Committee and will continue to monitor the Commuter Rail Connectivity Study, which is anticipated to be completed next spring. Regular updates will be provided to the Intergovernmental Relations Committee.

CITY COUNCIL CITY MANAGER REPORTS

CITY COUNCIL REPORTS

Mayor Wallace introduced reports from the Finance/Audit Committee, the Business Incentive Committee, the Intergovernmental Relations Committee, and the Compensation Committee.

Council Member Wong reported that the Intergovernmental Relations Committee met and discussed the annexation policy on the MUD area, which will come to Council soon for workshop discussion. He attended HGAC board meeting where they discussed a couple of items impacting the area, the Homeland Security funding from the State; this year they were concerned about the funding source amount but actually there will be about 10 percent more money appropriated than last year, attended a workshop on Transportation Improvement Program for the next four years and discussed access management for the Highway 6 corridor. Transportation Policy Council meeting was held and in terms of the Grand Parkway, some issues were resolved and will be moving ahead.

Council Member Parmer reported the Fort Bend Walk to cure diabetes will be held on Sunday, October 28, at 8:30 a.m.

Council Member Abraham reported attending the Brooks Street meeting and discussing various issues with the residents.

Council Member Olson attended the District Two Town Hall Meeting, which had low attendance, which hopefully indicates satisfaction with the City. He attended Parks Board meeting and the Hike and Bike Trail Plan is moving forward and will soon be going to the Planning and Zoning Commission. The Compensation Committee met and is working through performance evaluations and benefits package. He also attended the charette for Imperial Sugar and commented that the redevelopment should be an exciting project for the City.

Council Member Jones reported attending the Finance Committee meeting where several important issues were discussed including new audit rules in force, and the solid waste contract which likely will be renewed with higher prices but still lower than surrounding areas.

Council Member Schiff attended the Finance Committee meeting and commented that the rules under which the city will be audited have changed to the point where it will be difficult to get a clean Management Report for the audit because of technical issues.

CITY MANAGER REPORT

City Manager Bogard reported on Tuesday, September 25, at 4:00 p.m. the Council Strategic Planning Work Session will be held at City Hall. Department heads and Executive team met last week pulling together the plans and projects for next year. On Wednesday, September 26, at 6:30 p.m., City will be hosting a combined town hall meeting for Districts Three and Four at City Hall.

CLOSED EXECUTIVE SESSION

Mayor Wallace, seconded by Council Member Parmer, made a motion to remove from the agenda the Closed Executive Session as authorized by Chapter 551, Texas Government Code, in accordance with: Public Officers: Section 551.074 (Discuss public officers). The motion carried unanimously.

APPOINTMENTS, BOARDS AND COMMISSIONS

PLANNING AND ZONING COMMISSION

Mayor Wallace introduced consideration on appointment of five members to the Planning and Zoning Commission for two-year terms expiring September 30, 2009 and appointment of the commission chair and vice chair by the Mayor with approval of City Council.

Following a full and complete discussion, Mayor Wallace, seconded by Council Member Olson, made a motion to approve appointments to the Planning and Zoning Commission: District 1, appointing Larry Davidson; District 2, appointing Bridget Yeung; District 3, appointing Carl Stephens; District 4, appointing Paula Stansell; and all of Council appointing Jim Shaw; and appointing Bridget Yeung as Chair and Vice Chair Joe Zimmerman. The motion carried unanimously.

ZONING BOARD OF ADJUSTMENT

Mayor Wallace introduced consideration on appointment to the Zoning Board of Adjustment of three members for two-year terms expiring September 30, 2009; appointment of three alternate members for one-year terms expiring September 30, 2008; appointment of one member to fill an unexpired term expiring September 30, 2008 and appointment of chair and vice chair by the Mayor with approval of City Council.

Following a full and complete discussion, Mayor Wallace, seconded by Council Member Parmer, made a motion to approve appointments to the Zoning Board of Adjustment: Kathy Huebner with a term expiring September 2009; Nancy Porter with a term expiring September 2009; Jim Lord with a term expiring September 2009; Harish Jajoo to fill an unexpired term expiring September 2008; alternates with terms expiring September 2008: Robert Dunham, Bud Friedman, and Sean Burnett; appointment of Chair Jim Lord and Vice-Chair Kathy Huebner. The motion carried unanimously.

SUGAR LAND 4B CORPORATION

Mayor Wallace introduced consideration on appointment of three members to the Sugar Land 4B Corporation for two year terms expiring September 30, 2009 and one member to fill an unexpired term expiring September 30, 2008.

Following a full and complete discussion, Mayor Wallace, seconded by Council Member Schiff, made a motion to approve appointments to the Sugar Land 4B Corporation: District 2 appointing Cyril Hosley with a term expiring September 2009; District 3 appointing Bob Elberger with a term expiring September 2009; District 4 appointing Jeng Liang with a term expiring September 2009; At-Large Position 1 appointing Donald Olson for an unexpired term expiring September 2008. The motion carried unanimously.

BUILDING AND STANDARDS COMMISSION

Mayor Wallace introduced consideration on appointment of four members and three alternate members to the Building and Standards Commission for two-year terms expiring September 30, 2009 and appointment of the chair by the Mayor with approval of City Council. .

Following a full and complete discussion, Mayor Wallace, seconded by Council Member Olson, made a motion to approve appointments to the Building and Standards Commission: District 1 appointing Robert Ring with a term expiring September 2009; District 2 appointing Jim Lancaster with a term expiring September 2009; District 3 appointing Harvinder Arora with a term expiring September 2009; District 4 appointing Al Abramczyk with a term expiring September 2009; all of Council appointing alternates Lars Hagen, Jr., Pankaj Shah, and Paul Barnett for terms expiring September 2009; and appointing Chair, Al Abramczyk. The motion carried unanimously.

PARKS AND RECREATION ADVISORY BOARD

Mayor Wallace introduced consideration on appointment of seven members to the Parks and Recreation Advisory Board for one-year terms expiring September 30, 2008 and appointment of the chair by the Mayor with approval of City Council.

Following a full and complete discussion, Mayor Wallace, seconded by Council Member Olson, made a motion to approve appointments to the Parks and Recreation Advisory Board: Mayor appointing Sue Chiang, At-Large Position 1, At-Large Position 1 appointing Hillary Goldstein, At-Large Position 2, Andre McDonald, District 1, Michelle Wohlwend, District 2 appointing Tony Talamini, District 3 appointing Arnold Arevalo, and District 4 appointing John Braswell for terms expiring September 2008; and appointing Chair, Arnold Arevalo. The motion carried unanimously.

ANIMAL ADVISORY BOARD

Mayor Wallace introduced consideration on appointment of two members to the Animal Advisory Board for a one-year term expiring September 30, 2008 and appointment of the chair by the Mayor with approval of City Council.

Following a full and complete discussion, Mayor Wallace, seconded by Council Member Schiff, made a motion to approve appointments to the Animal Advisory Board: James Cox and Susan Wege for terms expiring September 2008; and appointing as Chair, James Cox. 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 7:54 o'clock P.M.

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Glenda Gundermann, City Secretary

(SEAL)