Agenda Request

	City Council
	Agenda Request
Agenda Of:	november 03, 2009	Agenda Request No:		IV-H
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 october 20, 2009 Approve Minutes
Exhibits:	Minutes october 20, 2009
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 October 20, 2009.
Exhibits

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

CITY OF SUGAR LAND

CITY COUNCIL REGULAR MEETING

tuesday, october 20, 2009

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, October 20, 2009 at 5:30 o'clock P.M. and the roll was called of the members; to wit:

James A. Thompson, Mayor

Thomas Abraham, Council Member at Large, Position One

Jacqueline Baly Chaumette, Council Member at Large, Position Two

Donald L. Smithers, 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 Jones who was absent.

Also present were:

Allen Bogard, City Manager

Glenda Gundermann, City Secretary

Joe Morris, City Attorney, and

A Number of Visitors

CONVENE MEETING

Mayor James Thompson convened the session, open to the public, to order at 5:31 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.

RECOGNITIONS

environmental awards

Mayor Thompson introduced Mr. Adam Smith, Environmental Manager, who stated the City of Sugar Land recently received (2) awards for the commitment to environmental stewardship. The H-GAC 2009 Clean Air Champion Award was presented to the City for commitment to support voluntary measures reducing air pollution and promoting regional air quality measures. City Council adopted an agreement to take on some voluntary mobile emission sources to help air quality in Sugar Land; clean fleet, alternative work weeks, livable communities.

Ms. Vicki Gist, Executive Director Keep Sugar Land Beautiful, stated the Keep Texas Beautiful 2009 Government Project Award is an award that the City of Sugar Land received for the partnership with Keep Sugar Land Beautiful and is in recognition of the first annual Environmental Week activities which included an Eco-Car Show and Earth Day recycling event. Upcoming events include a Latex paint collection for recycling that will be held at Schlumberger in the parking lot on Gillingham Drive, 10:00 a.m. – 2:00 p.m.; the latex paint must be in a sealed can.

heavy construction systems specialists, incorporated

“top small workplaces 2009”

Mayor Thompson introduced Ms. Regina Morales, Director of Economic Development, who stated Heavy Construction Systems Specialists, Incorporated (HCSS), a software developer company in the City of Sugar Land, has received national recognition as one of the top “Small Workplaces for 2009” by The Wall Street Journal. Fifteen small employers throughout the U.S. who have built some of the most exemplary, innovative workplaces were selected. The new headquarters at HCSS include a one-third mile crushed granite jogging trail, exercise room, game room, gym with basketball court and putting green; the company pays fitness and wellness trainers to counsel employees on nutrition and exercise and offers on-site yoga, Pilates, and exercise classes.

Mayor Thompson recognized the Houston Association of Realtors (HAR), a group active in Fort Bend County and the Greater Houston Metro, and commented that the Fort Bend County leadership has been an asset to the community with over 1,500 realtors operating in the Sugar Land area.

PUBLIC COMMENT

Mayor Thompson introduced Public Comment and entertained registered speakers. There were no public comments.

REVIEW OF CONSENT AGENDA

Mayor Thompson introduced Review of the Consent Agenda and entertained questions and/or comments.

consent agenda

Mayor Thompson introduced III.A) CITY OF SUGAR LAND RESOLUTION NO. 09-37 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND, TEXAS APPROVING THE UNANIMOUS SETTLEMENT AGREEMENTS IN THE PUBLIC UTILITY COMMISSION OF TEXAS DOCKET NOS. 36918 AND 37200 REGARDING CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC'S APPLICATIONS FOR APPROVAL OF HURRICANE RESTORATION COSTS AND OF A FINANCING ORDER AUTHORIZING SECURITIZATION OF THE COSTS; AND RATIFYING THE SIGNATURE OF THE CITY’S COUNSEL ON THE SETTLEMENT AGREEMENTS; III.B) Authorizing execution of a Lease Agreement by and between the City of Sugar Land and Longhorn Holding, LLC for 0.76 acre Sugar Land Regional Airport executive hangar land lease for a term of thirty years effective December 01, 2009; III.C) Authorizing execution of a License Agreement by and between the City of Sugar Land and Cherokee Sugar Land, Limited Partnership for installation of two antennas to support the Three Tier Wireless Communications Project; III.D) Authorizing execution of a License Agreement by and between the City of Sugar Land and Town Center Lakeside, Limited for installation of two antennas to support the Three Tier Wireless Communications Project; III.E) Authorizing acceptance of Solid Waste Recycling Awareness Grant in the amount of $13,459.00 from Houston-Galveston Area Council; and authorizing budget adjustment in the amount of $13,459.00 to revenues and expenditures; III.F) Authorizing execution of a Contract in the amount of $63,703.00 with Keep Sugar Land Beautiful for environmental education and public awareness programs and services; III.G) Authorizing execution of a Contract in the amount of $133,870.90 with Third Coast Services, LLC for reinstallation of U.S. 90A street lights; III.H) Approval of the minutes of the regular meeting of October 06, 2009.

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

municipal utility district bonds

Mayor Thompson introduced consideration on approval of First Colony Municipal Utility District No. 10 issuance of $4,280,000 Unlimited Tax Bonds, Series 2009.

Mr. Bryan Guinn, Budget Manager, stated First Colony MUD No. 10 is located in the Lake Pointe Development within the City limits. The District is proposing the issuance of $4.28 million of Unlimited Tax Bonds Series 2009. This is the 3^rd installment of a $34.37 million bond issuance that was authorized by voters in the District. The District has $9.38 million in outstanding bonds and the proposed issue will increase the amount to $l3.66 million. The 2009 certified assessed valuation for the District totals $289 million and the anticipated tax rate is $0.75. The proposed issuance is for 22 years with principal payments beginning 2011, and this will not extend the District’s debt.

According to Chapter 5 of the City Code of Ordinances, the MUD must obtain consent of the City prior to issuing debt. Staff has reviewed the proposed issuance and recommends approval.

Mr. Duncan Lamme, Allen Boone Humphries Robinson, LLP, stated the bonds sale is scheduled to receive competitive bids on November 3; an (A-) rating has been received from Standard & Poor’s and insurance has been applied for. In the event of qualifying for insurance, the insurance will be paid at the bidder option and at the time of the bid.

Following a full and complete discussion, Council Member Smithers, seconded by Council Member Abraham, made a motion to approve First Colony Municipal Utility District No. 10 issuance of $4,280,000 Unlimited Tax Bonds, Series 2009. The motion carried unanimously.

contracts and agreements

Three-Tier Wireless Comunications Network

Mayor Thompson introduced consideration on a Contract in an amount not to exceed $1,596,099.02 with TransCore ITS, LLC for Three Tier Wireless Communications Network for Traffic Management Center.

Mr. David Worley, Assistant Public Works Director, stated in the April 28, 2009 workshop he had informed Council that the city received a federal funded project through the Congestion Mitigation Air Quality grant program. An Advanced Funding Agreement (AFA) with TxDOT was executed early in 2008 that included an 80/20 split. The 80 percent is approximately $1.5 million with the total amount $1.9 million. This contract is a key element to the 5-year ITS (Intelligent Transportation System) Operations plan. The wireless network is designed to support state of the art traffic projects: Traffic Responsive Signal System, additional traffic cameras, and detection improvements; and future non-traffic projects: redundant fiber optic infrastructure, PD video surveillance, and improve operations by leveraging Wi-Fi. It is anticipated that the majority of the operations and maintenance needs of the new network will be handled internally by I.T. personnel.

On September 30, 2009, five bids were opened for the Wireless Communications Network project. Apparent low bidder was TransCore ITS, LLC, with a total bid of $1,596,099.02 and a 180 calendar day completion time. Funding will come from CIP – TR0701, and anticipated start date of November/December 2009.

Council discussion ensued regarding location of the towers. Staff stated a tower will be built on City property, existing water towers will be used, antennas will be placed on top of the Minute Maid building, and towers will be placed on the Imperial/Cherokee char house site and at the University of Houston/Sugar Land which is still under negotiation.

Following a full and complete discussion, Council Member Olson, seconded by Council Member Abraham, made a motion to approve a Contract in an amount not to exceed $1,596,099.02 with TransCore ITS, LLC for Three Tier Wireless Communications Network for Traffic Management Center. The motion carried unanimously.

purchase of ladder truck and equipment

Mayor Thompson introduced consideration on Purchase of one replacement ladder truck and associated equipment in the amount of $1,045,542 from Metro Fire Apparatus through the Houston Galveston Area Council.

Mr. Clay Fenwick, Assistant Fire Chief, stated the City has adopted a replacement schedule for its fire apparatus at 10 years front-line service and 5 years in reserve. The purchase of a replacement ladder truck was budgeted and planned for in Fiscal Year 2009 and will be included in the recommended carryovers to Fiscal Year 2010. The unit will be purchased through the Houston Galveston Area Council (HGAC) purchasing contract process; the purchase is planned for financing through a lease/purchase agreement. Upon delivery of the new apparatus, the unit being replaced will be moved to reserve status. The purchase includes associated equipment needed to place this unit in service as a front-line aerial apparatus.

The City will be purchasing a Custom Spartan/Crimson 103-foot Super Duty aerial fire truck from Metro Fire Apparatus Specialists, Incorporated at a total price of $1,045,542; truck and equipment $1,022,672; HGAC fees $2,000; and engineering/inspection $20,870. The ladder truck will have similar specifications to previous units purchased along with consideration for the vehicle it is replacing.

Aerial fire apparatus currently have up to a 12-month lead-time between placement of the order and delivery of the unit. Initial specification process for the apparatus has been ongoing since March 2009. The design and construction review is a critical component to ensure the vehicle specifications are correct and the apparatus is being built to identified specifications and expectations. During the construction process, representatives from the City will conduct site visits on four different occasions from inception to final factory acceptance.

Following a full and complete discussion, Council Member Abraham, seconded by Council Member Olson, made a motion to approve Purchase of one replacement ladder truck and associated equipment in the amount of $1,045,542 from Metro Fire Apparatus through the Houston Galveston Area Council. The motion carried unanimously.

emergency power generators

Mayor Thompson introduced consideration on a Contract in an amount not to exceed $680,955.00 with Cummins South Plains for three emergency power generators for North and South Wastewater Treatment Plants CIP WW0902.

Mr. Timothy Jahn, Engineer IV, stated the North and South Wastewater Treatment Plants (WWTPs) treat all the wastewater for the City and do not have emergency power capacity. Based on a facility-wide Vulnerability Assessment in 2004, a Preliminary Engineering Report in 2007, and direct experience encountered during Hurricane Ike in September 2008, the Utilities Department recommends adding permanent power generators to the WWTPs. Main purpose of the overall project is to eventually install generators at the Wastewater Treatment Plants.

With forthcoming Senate Bill No. 361, water utilities will be impacted in 2010. Staff prefers to get ahead of the curve and purchase the generators. Three advantages to purchasing versus hiring a contractor: (1) Beat the timeline while design is being completed for installation; construction plans are currently being completed, and lead time for ordering generators is from 4-5 months; design is being completed now and expect plans in early November and return to Council for construction plan approval and bid of construction plans for low bidder of project; (2) Reduces contractor markup and saves 15-20 percent by purchasing directly, and taking advantage of economic times by getting better prices; (3) Due to Senate Bill 361, a large rush and demand of this size generator are expected mainly in Harris County and possibly Fort Bend County in 2010.

Two bids were received and opened on September 24, 2009; low bidder for purchase of three generators was Cummins Southern Plains for $680,955. The North WWTP will receive two generators, one for the wastewater treatment process area and one for the onsite lift station. The South WWTP will receive one generator for the wastewater treatment process area. Staff expects the construction to bid in November 2009 and construction phase to start in January 2010. Operation of the new generators will partly depend upon CenterPoint Energy installation of new electrical services. Startup, testing, and acceptance of the project are expected by July 2010. Staff expects project completion by the 2010 hurricane season.

Following a full and complete discussion, Council Member Chaumette, seconded by Council Member Smithers, made a motion to approve a Contract in an amount not to exceed $680,955.00 with Cummins South Plains for three emergency power generators for North and South Wastewater Treatment Plants CIP WW0902. The motion carried unanimously.

surface water

current water supplies and long range water supply strategies

Mayor Thompson introduced discussion on current water supplies and long range water supply contracts and strategies.

Ms. SuEllen Staggs, Director of Utilities, stated during the summer drought, there were many questions and concerns regarding water supplies from residents. The city water supply needs include: 2013 is Phase I of the Surface Water Plant. For the city to have 9 million gallons per day (MGD) of treated surface water, 9.2 MGD of raw water are needed. Non-potable pump stations serve Telfair, Lake Pointe; and additional projects will be brought online that would require approximately 2.5 MGD of untreated raw water, a total of 11.7 MGD. In 2025, the city would need a total of 25.5 MGD for treated water and non-potable pump stations.

Current raw water supplies: The City signed an option water contract with Gulf Coast Water Authority (GCWA) for 20 MGD of water, and has a water supply agreement with Fort Bend County Water Control and Improvement District #1 (WCID #1) for approximately 15.3 MGD from Oyster Creek; information indicates the water is not fully reliable and will probably not be available. The summer drought emphasized the City vulnerability to receiving water under the current contracts.

Staff is working on a project to transport wastewater from New Territory wastewater plant up to Oyster Creek and permit that capacity which would give the city 2.0 MGD; total supply 37.3 MGD and supply needed is 25.5 MGD. There should be sufficient water supply to meet City needs. If the surface water plant needs to go to reverse osmosis, in 2025 the city may need additional capacity.

The Groundwater Reduction Plan (GRP) included over-sizing the Surface Water plant by 10 percent in Phase I and 15 percent in Phase II (2025) which helps protect the city; provides a buffer for problems with water quality, plant maintenance, canal maintenance, water availability; and allows for reduced plant operation or 30 days of no operation and still meet GRP requirements. Staff is working on additional conversion credits to ensure meeting goals from the Subsidence District. By 2013, the goal is to have one year of credits available to meet the shortfall. By the end of Fiscal Year 2009, there were 1.3 billion gallons of water in credits with Subsidence District which is approximately 145 days of conversion; by 2013, there would be approximately 4 billion gallons or over a year of conversion credits.

There are two raw water supply issues, water availability and water delivery. New information this summer indicated that during a drought, the GCWA contract is not firm. If the river is low, there is potentially no water. Looking at availability, the city could have several months without any water from GCWA. This is not regarding available drinking water in the future; there would be water to drink as the city will continue to have groundwater wells. It is about the ability to meet the compliance requirements through the Subsidence District.

Staff has worked on several strategies for additional firm supplies. The city will have surface water credits available and have requested additional water from the Brazos River Authority (BRA); the BRA has a permit amendment at the State, the SYSOPS (Systems Operations) permit, and the city asked for 20,000 acre feet from the permit, or 18 MGD. Another strategy is to permit and transport the New Territory reclaimed water upstream of plant site. Additional management strategies include emergency use of WCID #1 water, pipeline to lake system; staff is currently reviewing impact to level of lakes/creek. Over-conversion credits could be increased. There are currently no wastewater reuse projects anticipated in the GRP; any reuse projects would be additional over-conversion credits that are currently not in the strategies.

Regarding water delivery, the city has a contract with GCWA for 20 MGD; at this time there is no commitment to daily delivery from GCWA, and through correspondence, GCWA has stated that how to take and store water as delivered from GCWA is a problem for the city to solve, and recommended City options that include: (1) Install smaller pump at the GCWA Shannon pump station, our cost estimate of $2-4 million; and there is no guarantee of daily delivery due to canal maintenance. (2) Build a 5-day reservoir.

Staff stated the city strategy is to build Phase II forebay in Phase I which is five days of storage for Phase I raw water needs to meet requirements of Gulf Coast delivery method. A permanent solution is to move take point to Oyster Creek lake system which would require TCEQ approval and new pilot study, additional source monitoring. This would be considered a backup strategy if there are additional concerns in the future.

Next steps include working with GCWA for better solution to delivery method, review current flows on Oyster Creek and impact to the creek, and move forward with the design contract that includes flexibility to do additional services to increase forebay size and pumps.

Council discussion ensued regarding the SYSOPS permit and water delivery issue.

final engineering design – phase i surface water treatment plant

Mayor Thompson introduced consideration of a contract in an amount not to exceed $4,296,000 with CDM, Incorporated for final engineering design for CIP SW0802 Phase I Surface Water Treatment Plant.

Ms. Jessie Li, Assistant Utilities Director, stated the city has a FBSD mandated groundwater conversion requirement to convert 30 percent by 2013. The city will build a 9 MGD Surface Water Treatment Plant (SWTP) in Phase I to meet the requirement. The PER (Preliminary Engineering Report) has been completed and Council conducted a workshop on July 7, 2009. The Plant will be located in the Gannoway Lake area. A raw water forebay or reservoir will be constructed on the south side of Gannoway Lake; the water will be pumped from Oyster Creek to the reservoir and be delivered to the treatment process on the north side of the lake near Voss Road and Burney Road.

To have an operable Surface Water Treatment Plant, there are projects that need to be completed and the first project is Phase I of the 9 MGD SWTP final design. Council passed a resolution to allow staff to use Construction Manager At Risk for the SWTP construction and commissioning; Fiscal Year 2010 CMAR Preconstruction services; Fiscal Year 2011 CMAR construction, design engineer construction support services, application engineering services (programming), and 3^rd party construction inspection and management service. The SWTP design team will include CDM, Malcolm Pirnie, Huitt-Zollars, and Kalluri Group.

Final design scope of work includes: Design to 100 percent and ready to bid; conduct 2 years EPA and TCEQ required source water monitoring at intake point; geotechnical and architectural services; archeological investigation of forebay property; supplemental survey as required; O&M guide development, vulnerability assessment recommended by Homeland Security Department, electrical circuit and motor starting study, and obtain TCEQ approval.

In addition to basic services, there are additional services included in the contract but will be authorized separately on an as-needed basis. (1) Larger forebay and intake; (2) U.S. Army Corps of Engineers individual wetland permit. (3) If the city can successfully select a CMAR, the services will be carried out by the CMAR contract: construction cost estimates, bid phase reproduction and services, and conformed drawing sets for build team.

Project delivery planning schedule: Complete 100 percent design by October 01, 2010; award CMAR in late December 2009 or January 2010; CMAR Guaranteed Maximum construction Price negotiation September 2010, construction start October 2010, and plant on line in October 2012.

Following a full and complete discussion, Council Member Olson, seconded by Council Member Schiff, made a motion to approve a contract in an amount not to exceed $4,296,000 with CDM, Incorporated for final engineering design for CIP SW0802 Phase I Surface Water Treatment Plant. The motion carried unanimously with Council Member Chaumette abstaining.

public hearing

proposed 2009 property tax rate

Mayor Thompson convened the Public Hearing to receive and hear all persons desiring to be heard on proposed 2009 Property Tax Rate.

Ms. Donna Svatek, Treasury Manager, stated the Fiscal Year 2010 budget was adopted on September 15 with a proposed tax rate of $0.30000. Since the proposed tax rate exceeds the calculated effective tax rate of $0.29096 and will generate more property tax revenue than in 2008 due to increase in valuations, the City must follow the steps mandated by the Truth-in-Taxation law in order to adopt the same tax rate as 2008. On September 15, City Council approved a proposal to place an item for consideration to set the tax rate at $0.30000. Before the adoption of the tax rate on November 3, the city must hold two public hearings on the proposed tax increase and publish the notices in the newspaper. The first hearing was held on October 6. At this time, all taxpayers are encouraged to participate and be heard.

Ms. Nancy Hentschel, 6610 Kendall Creek Drive, Sugar Land, voiced her concerns stating the city is raising taxes at a time when our community and nation are suffering from an economic setback that is impacting unemployment, foreclosures, homeowner associations raising dues, reduction in work hours, and layoffs.

Hearing no further comments, Mayor Thompson closed the Public Hearing.

ordinances and resolutions

ORDINANCE NO. 1759 – GENERAL OBLIGATION REFUNDING BONDS SERIES 2009

Mayor Thompson introduced FIRST AND FINAL CONSIDERATION: CITY OF SUGAR LAND ORDINANCE NO. 1759 AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF SUGAR LAND, TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2009; SETTING CERTAIN PARAMETERS FOR THE BONDS; AUTHORIZING THE REDEMPTION PRIOR TO MATURITY OF CERTAIN OUTSTANDING OBLIGATIONS; AUTHORIZING THE CITY MANAGER TO APPROVE THE AMOUNT, THE INTEREST RATE, PRICE, AND TERMS THEREOF AND CERTAIN OTHER PROCEDURES AND PROVISIONS RELATED THERETO; AUTHORIZING THE ADVANCE REFUNDING OF CERTAIN OUTSTANDING OBLIGATIONS AND THE EXECUTION AND DELIVERY OF AN ESCROW AGREEMENT AND THE SUBSCRIPTION FOR AND PURCHASE OF CERTAIN ESCROWED SECURITIES.

Ms. Jennifer Brown, Budget and Research Director, stated First Southwest, the city Financial Advisor, has identified an opportunity for the City to realize savings by refunding some outstanding principals from outstanding debt. There is $14,800,000 in principal identified that could be refunded. Staff is asking approval for a parameter sale in which Council approves the ordinance authorizing the sale prior to actual sale date of the bonds, ordinance defines acceptable conditions for refunding transaction; once approved, First Southwest monitors bond market and moves forward with refunding when conditions are at peak to capitalize on market conditions and maximize savings. The refunding would be a negotiated sale which provides flexibility to move forward.

There are four issues that make up the principal amount that is eligible for refunding; two of the issues are currently callable. The remaining two issues are callable in February 2011.

Issue	Call Date	Amount
2002 Certificates of Obligation	2/15/2011	7,480,000
2001 General Obligation Ref	2/15/2011	2,680,000
1998 General Obligation Ref	Current	2,930,000
1996A General Obligation Ref	Current	1,710,000
Total Principal		14,800,000

Market timing is critical to a successful refunding. On September 28, 2009, the $14.8 million issue showed in the market a potential 6.813 percent Net Present Value (NPV) savings; on October 7, showed 7.746 percent NPV savings; and on October 19, showed 4.375 percent NPV savings.

On October 8, 2009, staff met with the Finance/Audit Committee and received a positive feedback from the committee to put measures in place and proceed with the parameter sale when conditions are optimal. Conditions discussed were a minimum Net Present Value Savings of 5 percent and a par amount not to exceed $15.59 million, which allows City the flexibility to structure the debt as needed to meet the maturity schedule.

The Financing team participating would include: Financial Advisor: First Southwest; Bond Counsel: Vinson & Elkins; Underwriters’ Council: Fulbright & Jaworski; and Underwriters: Morgan Keegan and Coastal Securities. GO Bond Ratings: Standard & Poor’s, upgraded to AA+; Fitch Ratings, AA+.

Next steps include approval of Ordinance No. 1759, print preliminary official statement, subject to market conditions: pricing of refunding bonds and award to underwriter, and closing approximately 30 days after pricing.

Council Member Olson stated the city is taking advantage of the market and the savings on interest rates, the time of the bonds will not be extended, and feels it is a great deal for the City.

Council Member Schiff asked if the city does not reach the goal of NPV savings of 5 percent or better, what would be the cutoff time to meet again and reevaluate the issue. Tom Sage, Bond Counsel, advised Staff that the city has 180 days to return to Council and reevaluate; the primaries stay in effect for 180 days without additional action by City Council.

Following a full and complete discussion, Council Member Olson, seconded by Council Member Abraham, made a motion to approve CITY OF SUGAR LAND ORDINANCE NO. 1759 AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF SUGAR LAND, TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2009; SETTING CERTAIN PARAMETERS FOR THE BONDS; AUTHORIZING THE REDEMPTION PRIOR TO MATURITY OF CERTAIN OUTSTANDING OBLIGATIONS; AUTHORIZING THE CITY MANAGER TO APPROVE THE AMOUNT, THE INTEREST RATE, PRICE, AND TERMS THEREOF AND CERTAIN OTHER PROCEDURES AND PROVISIONS RELATED THERETO; AUTHORIZING THE ADVANCE REFUNDING OF CERTAIN OUTSTANDING OBLIGATIONS AND THE EXECUTION AND DELIVERY OF AN ESCROW AGREEMENT AND THE SUBSCRIPTION FOR AND PURCHASE OF CERTAIN ESCROWED SECURITIES. The motion carried unanimously.

ordinance no. 1760 – waterworks and sewer system revenue

refunding bonds series 2009

Mayor Thompson introduced FIRST AND FINAL CONSIDERATION: CITY OF SUGAR LAND ORDINANCE NO. 1760 AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF SUGAR LAND, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BONDS, SERIES 2009; SETTING CERTAIN PARAMETERS FOR THE BONDS; AUTHORIZING THE REDEMPTION PRIOR TO MATURITY OF CERTAIN OUTSTANDING OBLIGATIONS; AUTHORIZING THE CITY MANAGER TO APPROVE THE AMOUNT, THE INTEREST RATE, PRICE, AND TERMS THEREOF AND CERTAIN OTHER PROCEDURES AND PROVISIONS RELATED THERETO.

Ms. Jennifer Brown, Budget and Research Director, stated the city engaged in a parameter sale in June 2003 when Council approved a similar ordinance and proceeded with a 2003A refunding approximately two weeks later. The city has used the method successfully in the past.

Staff has identified $8,535,000 in principal that is eligible for refunding. Staff is asking approval for a parameter sale in which Council approves the ordinance prior to sale of bonds and moves forward when market conditions warrant. In this potential refunding, there are four issues. All four of the issues are currently callable. There will not be an escrow account associated with the revenue bond refunding. Staff is looking back into the 1997 and 1999 issues. Included are old MUD 13 contract revenue bonds that City picked up through annexations and contracts with the BRA.

The market analysis associated with the revenue bonds shows that on September 28, 2009, the NPV savings was 7.83 percent; on October 7, NPV savings was 7.21 percent; and on October 19, NPV savings was 5.35 percent. This is over the 5 percent threshold at this point, but staff stated the city will probably wait and proceed with both sales at the same time to get the best benefit.

Conditions associated with the issue would be the minimum of 5 percent NPV savings and the par amount would not exceed $8,910,000. The financing team associated with the revenue bonds refunding: Financial Advisor, First Southwest; Bond Counsel, Vinson & Elkins; Underwriters’ Counsel, Fulbright & Jaworski; and underwriters Morgan Keegan and Coastal Securities. Revenue bond ratings were AA by Standard and Poor’s, and Moody’s Investors Services is pending but did upgrade the revenue bonds last June to AA3 rating.

Once ordinance is approved, next steps include watching the market and bringing forward the information once the sale is ready to proceed.

Following a full and complete discussion, Council Member Schiff, seconded by Council Member Smithers, made a motion to approve CITY OF SUGAR LAND ORDINANCE NO. 1760 AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF SUGAR LAND, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BONDS, SERIES 2009; SETTING CERTAIN PARAMETERS FOR THE BONDS; AUTHORIZING THE REDEMPTION PRIOR TO MATURITY OF CERTAIN OUTSTANDING OBLIGATIONS; AUTHORIZING THE CITY MANAGER TO APPROVE THE AMOUNT, THE INTEREST RATE, PRICE, AND TERMS THEREOF AND CERTAIN OTHER PROCEDURES AND PROVISIONS RELATED THERETO. The motion carried unanimously.

ordinance no. 1758 – amending code of ordinances – city manager’s authority over purchases and real estate matters

Mayor Thompson introduced FIRST CONSIDERATION: CITY OF SUGAR LAND ORDINANCE NO. 1758 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, AMENDING CHAPTER 2 OF THE CODE OF ORDINANCES RELATING TO THE CITY MANAGER’S AUTHORITY OVER PURCHASES AND REAL ESTATE MATTERS; AND PROVIDING FOR THE PERIODIC REVIEW OF SECTION 2-11 OF THE CODE OF ORDINANCES.

Ms. Karen Daly, Assistant City Manager, stated Staff recognizes the speed of doing business in government can be slow at times, and when State laws change that can help to improve the ability to act and respond, staff is eager to make those improvements. These requests are staff driven by various City departments including Public Works, Utilities, Engineering, and Purchasing.

Mr. Aaron Dobbs, Assistant City Attorney, stated the first change is the increase in the City Manager’s contract approval authority. In 2007, the State Legislature changed the threshold amount requiring purchases to be competitively purchased from $25,000 to $50,000. The change effectively decreases the number of City contracts that are required to be competitively purchased. While the change in law does not necessarily affect the City Manager’s contract approval authority, the proposed change to the City Manager’s ordinance would mirror the change in State law by allowing those contracts between $25,000 and $50,000 to be approved by the City Manager. The change would make the competitive purchasing requirements and the contract approval limits the same as they were when $25,000 was the number for both. In each year of Fiscal Years 2007, 2008, and 2009, approximately 6 percent of the City contracts fell between $25,000 and $50,000 which is about 36 contracts out of 600 contracts a year.

The next change would be to delegate to the City Manager the authority to approve the use of the competitive sealed proposal purchasing procedures for certain contracts. Prior to 2007, cities were allowed to use the competitive sealed proposal procedures in lieu of the traditional competitive sealed bid procedures, but could only do so for high technology and insurance contracts. In recent years, the legislature expanded the use of competitive sealed proposal procedures for purchases of most goods and services and for Civil Engineering construction projects under $1.5 million. At that time, the legislature required that before the city could utilize the competitive sealed proposal procedures, the governing body, or City Council, must make a determination that the procedures would provide the city with the best value for that specific purchase, and would have to be made on purchase by purchase basis. The Legislature does allow the governing body to delegate the determination. Accordingly, the change in the City Manager ordinance would be to delegate the authority to the City Manager. Staff pointed out that even if Council delegates the authority, Council would still approve the word of any contract that results from the use of the competitive sealed proposal procedures.

Ms. Karen Daly stated the other changes in the ordinance that staff is requesting Council to consider relate to real estate. Granting easement/right-of-ways to provide utilities to a city facility: Council went through the process of granting a temporary easement to Fire Station #1; the permanent easement had to be done to proceed with construction as expediently as possible. This represents delays in construction time and lead time that must be done to ensure the item gets on proper Council agenda and ready for consideration.

The second item regarding real estate is abandon easement/right-of-ways if easement is not being used or City has no future need: there was waterline easement abandonment in Lake Pointe, the waterline had been moved by Lake Pointe to better accommodate construction and to use the abandoned property. Staff moved through the Council process which slowed down some development. If the easement is not being used and City has no future need, staff is requesting that City Manager have authority to abandon the easement.

The third item is regarding land use licenses for less than one year which normally represents a temporary use of a piece of land within the city: the Super Bowl was in town and some companies needed additional staging area at the airport. The city granted a land use license.

The proposed changes to the ordinance were reviewed with the Audit and Finance Committee, and a suggestion was made to establish a periodic review. Included in the recommendations is a sunset provision for three-year intervals to ensure the authority of limits that Council approves is appropriate and the most beneficial to our government.

Council Member Schiff stated the Finance/Audit Committee reviewed this and feels it is straightforward and reasonable.

Following a full and complete discussion, Council Member Olson, seconded by Council Member Chaumette, made a motion to pass to second reading CITY OF SUGAR LAND ORDINANCE NO. 1758 AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, AMENDING CHAPTER 2 OF THE CODE OF ORDINANCES RELATING TO THE CITY MANAGER’S AUTHORITY OVER PURCHASES AND REAL ESTATE MATTERS; AND PROVIDING FOR THE PERIODIC REVIEW OF SECTION 2-11 OF THE CODE OF ORDINANCES. The motion carried unanimously.

resolution no. 09-38 –fort bend county central appraisal district

Mayor Thompson introduced CITY OF SUGAR LAND RESOLUTION NO. 09-38 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND, TEXAS, NOMINATING ONE OR MORE CANDIDATES FOR THE FORT BEND COUNTY CENTRAL APPRAISAL DISTRICT BOARD OF DIRECTORS FOR THE 2010/2011 TERM OF OFFICE.

Ms. Donna Svatek, Treasury Manager, stated every two years, the county, cities, school districts, MUD and LID districts have the responsibility to appoint by vote (5) members to serve as Board of Directors of the appraisal district. The five members serve a two-year term beginning January 1 of even-numbered years. Staff was notified by the Central Appraisal District that there are (7) nominees who have agreed to be placed on the ballot: Lee Duggan III, Mary Gayle Brindley, Wayne Poldrack, Jim Kij, Rick Garcia, Jim Gammill, and Kraig Warren.

The deadline for nominating candidates is October 21 to the Chief Appraiser. Once all the nominees have been submitted, a ballot will be created, and City Council will have the opportunity to vote for one or more candidates by December 15. The city will receive 130 votes out of the 5,000 to be cast to one candidate or allocated among multiple candidates. Council will be asked to cast their votes by resolution at the December 1st Council meeting.

Recommendation is to approve Resolution No. 09-38 nominating one or more candidates for the Fort Bend Central Appraisal District Board of Directors for the 2010-2011 Term of Office.

Following a full and complete discussion, Council Member Olson, seconded by Council Member Schiff, made a motion to make no nominations and take no action on Resolution No. 09-38. The motion carried unanimously.

RECESs MEETING

Mayor Thompson recessed the Regular Meeting, time 7:20 o’clock P.M.

REConvene MEETING

Mayor Thompson reconvened the Regular Meeting, time 7:44 o’clock P.M.

workshops

city of sugar land 50^th anniversary celebration

Mayor Thompson introduced discussion on City of Sugar Land 50^th Anniversary Celebration.

Ms. Teresa Preza, Event Production Manager, stated as the City’s 50^th Anniversary year comes to an end, plans are developing for a celebration to be held in conjunction with New Year’s Eve from 5 p.m. December 31, 2009 to 1 a.m. January 1, 2010 in Sugar Land Town Square. The primary goals of the event are to celebrate Sugar Land’s birthday, rich past, and create a unique event that paves the way for future years. It is anticipated that the 50^th Anniversary celebration will be economically beneficial to the retailers and hotels in the surrounding area, attracting approximately 10,000 to 15,000 people of all ages. The city will continue City branding and host a premiere event.

The City of Sugar Land is a family-oriented community yet New Year’s Eve tends to be more of an adult event. The event will be divided into two segments:

50^th Anniversary - Program

Time Program

5:00 – 7:30 p.m. Children Celebration

Community Performances

Children’s Walk-Around Entertainment

7:30 – 8:00 p.m. 50^th Anniversary Ceremony

Unveiling of commemorative art piece

Happy “Birthday” to Sugar Land

Birthday cake distribution

8:00 – 9:00 p.m. Transition Period (Play “top 100” hits from 1959)

9:00 p.m. – 1:00 a.m. Adult Celebration

Alcohol service (wine and beer cash bar) starts at 9 p.m., ends at 1 a.m.

Live Band and DJ

Midnight Sugar Cube Drop

Fireworks off City Hall rooftop

Ms. Honor Iosif, Recreation Coordinator, stated the 50^th Celebration Experience will create something unique by bringing in entertainment pieces and items that have not been done before in Sugar Land and first class performers from across the nation, paving the way for the next 50 years.

The city will be providing an event that is both adult and children friendly. Entertainment for the evening includes: (1) “The Living Fountain”, a very upscale, elegant act from Las Vegas, a 20-minute performance for both children and adults; (2) The Supernatural Museum of History brings walk-around entertainment to City Walk fusing theatre, street performance, puppet trees, stilt walkers providing entertainment for both children and adults; (3) Shan the Candyman: Performs the Japanese ancient art of Candy Sculpting.

Historical vignettes highlighting moments from Sugar Land history will be displayed in the square and a video montage playing on screens throughout the evening. Music will consist of a DJ and a live band. Lighting images will be put up on all the buildings in the square except for the residential and the Marriott. The grand finale will include the Midnight Sugar Cube Drop; the Mayor and City Council will count down the year. After the Sugar Cube is dropped, a 5-minute fireworks display will begin from City Hall.

Council inquired regarding restaurants in the Town Square area and how the event would affect their businesses. Staff will meet with the local bars and restaurants, give them the opportunity to participate, and discuss how they would like to participate.

Council Member Chaumette stated the local restaurants were concerned how the City event would play into the activities they have planned, as New Year’s Eve is one of the busiest evenings of the year.

Mayor Thompson inquired about inclement weather plans; staff commented it would depend on the degree of rain that occurs rain insurance will be acquired for the event. Depending on the degree of rain, several steps will be taken. Staff will speak with Town Square Management regarding empty retail spaces to determine availability that evening, local parking garages; and if there is severe weather, postponing the event would be a consideration.

conceptual plan for development of 300 acres

Mayor Thompson introduced discussion on conceptual plan for development of 300 acres located near U.S. 59 and University Boulevard.

Ms. Regina Morales, Director of Economic Development, presented a brief overview of the 1,000 acre Community Visioning effort of the city, highlighting the efforts that occurred which created the basis for the 300 acre Conceptual Planning effort; and identifies the 300 acres of commercial reserves owned by Newland Communities at University Boulevard and U.S. 59.

Over a decade ago, the City established a vision for an entertainment district within the city and incorporated that goal into its comprehensive and master plans. In 2003, the City and Newland Communities approved a Development Agreement in October that provided an option for the City to purchase 95 acres for economic development purposes, located within the 300 acres of the commercial reserve. In 2005, the city leased 52 acres from the University of Houston (UH) Sugar Land Campus for recreational and entertainment purposes. In 2007, the city, UH, and Newland agreed upon a public process to determine a community vision and path forward for the remaining 1,000 acres located at University Boulevard and U.S. 59. In 2009, the city began a joint planning process with Newland Communities and Means-Knaus Partners to develop a conceptual plan for 300 acres of commercial property located along the U.S. 59 corridor.

The City recognized that the Newland commercial property, the UH site, and the City’s Brazos River Park represented the last undeveloped 1,000 acres in Sugar Land at a key location for the goal of an entertainment district. It would be the last opportunity for the city to accomplish a coordinated effort, meeting the needs of all owners and accomplishing community goals yet to be achieved.

The property would be developed regardless, and the City now needed a vision for the future. In July 2007, a Vision Task Force recommended developing the 1,000 acres as a unified and integrated mixed use urban destination, featuring opportunities and amenities that would be attractive to residents and others throughout the region. In April 2008, City Council adopted a conceptual site plan for a Cultural/Entertainment District. In November 2008, the residents approved four ballot propositions allowing the City to utilize funds from the 4A Corporation and venue taxes to fund development of a Cultural/Entertainment District.

In January 2009, City Council approved a Memorandum of Understanding (MOU) which initiated the joint planning effort with Newland Communities and Means-Knaus Partners to develop the conceptual plan; City’s 95-acre option was included. Conceptual planning included all partners in the process. The City and Newland participated in several planning workshops, each providing input that led to creation of the draft conceptual plan for the total acreage.

Basis for the conceptual plan included: visioning document adopted by City, existing and proposed City plans for thoroughfare, transit, hike and bike; anticipated location of concert venue and hotel/convention center, and cultural arts center as catalysts for development. City objective was the development of a coordinated multi-use environment that promotes attraction of corporate investment and job creation. Project goals were mixed use urban center, pedestrian friendly and transit ready, quality public spaces, and connections to regional hike and bike trails.

City created the Plan Framework statement: Create a walkable development with an integrated street network, access to parks, trails and open spaces, connections to future transit systems, and a flexible development pattern to allow infill over time. The city anticipated specific uses: substantial corporate site opportunities and development of Entertainment District components which include the Concert Venue, Full Service Hotel and Convention Center; anticipates other hotel developments within the project and reserves a site for a Cultural Arts Center.

The 300 acres was a very large development and would have to be developed in a different way. Because of the adjacent uses and the fact that the acreage was on two different sides of the freeway and occupying three corners of University and U.S.59, these issues had to be addressed to move forward in developing a plan. The plan represents a collection of Development Areas each unique in character, and when viewed together, create an overall development that will support the intent of the City visioning efforts. Some of the names proposed were Telfair Business District, Telfair Center District, Lakefront District, High Street District, Sugar Land Arts District, and Corporate District.

Telfair Business District, northwest corner, adjacent to the existing Telfair community and conveniently located along University Boulevard, is made up of low-scale buildings and provides access to office, commercial, and retail offerings. Telfair Center District, northeast corner, easily accessible from U.S. 59; the district provides an opportunity to support in-line retail tenants and a large format retailer. Lakefront District, northeast corner-north side, office, commercial, and residential are found in this mixed use district and are afforded views of the lake and adjacent Telfair community. High Street District, southeast corner-center, a walkable, dense urban environment is concentrated in the heart; wide sidewalks and buildings close to the street create a sense of enclosure and a large urban park anchors the district on the southern end. Sugar Land Arts District, southeast corner, center; this district benefits from the activity and mix of uses offered by the High Street District to the north; civic components could include a theater, performing arts center, and academy for the residents. Corporate District, southeast corner-outer edge; along Ditch H and the southern boundary of the property, the Corporate District affords a chance to accommodate a corporate campus and/or infill commercial office sites.

Another component considered in the Conceptual Plan was Transportation and Thoroughfare; goals include interconnected network, variety of transportation modes, and transit ready. Open Space was incorporated in the Plan with goals: high quality outdoor public spaces and connection to regional trail network. Public Spaces; throughout the Conceptual Plan are pocket parks and small plazas, and public green areas.

Next steps include TIRZ #4 creation and utilizing the Conceptual Plan as the basis for a Preliminary Project Plan for the TIRZ which included the participation of Newland Communities, the City, and Means-Knaus. Approval for the TIRZ is expected by end of 2009. The Preliminary Project Plan includes public improvements and funding opportunities for the public facilities (Entertainment District venues). Simultaneous to the TIRZ process, Planning is beginning the PD process with a preliminary plan based on the Conceptual Plan.

Council discussion ensued regarding the PD process for the TIRZ #4 and for the entire 300 acres.

City Manager Bogard stated that the TIRZ is not motivating the need for the PD; it is the fact that the developer is ready to begin selling and developing property out of the 300 acres.

Mayor Thompson inquired if the developer is in agreement to do a PD on the full 300 acres.

City Manager Bogard stated that discussions have been held with the developer and the city is waiting on a response. The Conceptual Plan has been reviewed with the Economic Development Committee and will be reviewed with Planning and Zoning on November 10.

2008 charter commission

Mayor Thompson introduced discussion on 2008 Charter Commission report and recommendations.

Mr. Joe Morris, City Attorney, presented the last five minor recommendations of the Charter Commission, stating he would bring back to Council a draft ordinance for an election ordinance which would enable Council to review all the proposed ballot propositions resulting from the recommendation.

Introductory Paragraph to Charter (not part of the Charter and would not go to the voters for election)

In Texas, a city with more than 5000 inhabitants may become a home-rule city by the adoption of a charter, as authorized by Article XI, Section 5 of the Texas Constitution. Home-rule authority means a city may adopt any ordinance for its governance if the ordinance is not in conflict with or prohibited by Federal or State law. Any amendments of the Charter must also be approved by the voters, but changes in the Charter may not be made more often than every two years. The City Charter was adopted by the City’s voters in 1981 and has been amended on the recommendations of successive Charter Commissions appointed by the Council to review the Charter every five years. There are numerous State and Federal laws and regulationsthat apply to city operations that are not referenced or cited in the Charter.

City Council concurred with the Charter Commission recommendation.

Section 1.03(e) – Limit on Franchises

To the full extent allowed by law, to require that any person, utility, or company making use of the city’s streets or property to provide any service to the public first obtain the written consent of the city by license, permit, franchise, ordinance or otherwise. ~~A franchise shall not be valid for more than fifty (50) years.~~

City Council accepted the Charter Commission recommendation.

Section 1.09(f) – Voters in Area Annexed for Limited Purposes (this provision is no longer valid)

(f) The property owners and inhabitants of an area annexed for limited purposes may not vote in any City election or exercise any of the other rights or privileges enjoyed by the property owners and inhabitants within the full purpose corporate limits of the City area, except as otherwise provided for in this Charter, the ordinance annexing an area for limited purposes, or as provided by other law.

City Council concurred with the Charter Commission recommendation.

Section 2.01(d) – Time of Taking Office

(d) The city secretary shall promptly notify all persons elected to office. The persons elected shall take their oaths of office and begin their official duties immediately following the council’s adoption of the ordinance or resolution declaring the results of the election. A candidate who is elected in a regular, special or runoff city election shall, after taking the oath of office as prescribed in Section 10.02 of this charter, take office, and enter upon his duties at the next council meeting.

City Council accepted the Charter Commission recommendation.

Section 6.04 – Financial Reporting

~~MONTHLY~~ FINANCIAL STATEMENTS.

~~Prior to the end of each month~~, tThe city manager shall provide the city council with ~~an interim~~ financial statements ~~for the prior~~ at least once a month.

City Council did not concur with the Charter Commission recommendation.

CITY COUNCIL CITY MANAGER REPORTS

CITY COUNCIL REPORTS

Mayor Thompson introduced Community Events Attended or Scheduled.

Council Member Chaumette reported attending the Dragon Boat races, Run for the Cure, and Energy Conservation Conference.

Council Member Abraham reported attending H-GAC meeting.

Council Member Olson reported attending Fire Department Promotional ceremonies, Citizens Fire Academy, and MUD No. 1 hearing.

Council Member Schiff reported he attended the Dragon Boat races, the LPGA press conference, and Finance Committee meeting.

Mayor Thompson reported on the Boards and Commissions dinner, opening of the Justin Brindley Trail and the Pawm Springs Dog Park.

CITY MANAGER REPORT

City Manager Bogard welcomed back Karen Glynn, Assistant City Manager, and recognized the promotion of Former Police Chief Steve Griffith to position of Assistant City Manager for Public Safety, and the promotion of Assistant Police Chief Douglas Brinkley to position of Police Chief.

recess regular meeting

Mayor Thompson recessed the Regular Meeting to go into Closed Executive Session, time 8:50 o’clock P.M.

closed executive session

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

Real Property: Section 551.072 (Deliberation Regarding Real Property).

a) For the purpose of discussion with respect to acreage and value, offer to purchase, and status of negotiations regarding real property to be acquired for economic development purposes. Ms. Regina Morales, Director of Economic Development.

adjourn closed executive session

Mayor Thompson adjourned the Closed Executive Session, time 9:36 o’clock P.M.

reconvene meeting

Mayor Thompson reconvened the Regular Meeting, time 9:36 o’clock P.M.

ADJOURN

There, being no further business to come before Council, Council Member Smithers, seconded by Council Member Olson, moved that the meeting adjourn. The motion carried unanimously and the meeting adjourned, time at 9:36 o'clock P.M.

_____________________________________

Glenda Gundermann, City Secretary

(SEAL)