On May 1, 2007, Sugar Land City Council adopted Resolution No. 07-12 (GRP Policy). The GRP Policy establishes the terms and conditions for participation in the City’s Groundwater Reduction Plan (GRP). There are 6 components to the GRP Policy summarized below:

1. GRP Agreement: This section requires any participant in the City’s GRP conversion efforts to enter into a GRP Contract with the City.
2. GRP Administration: This section identified the City of Sugar Land as the GRP Administrator. As GRP Administrator, the City has sole authority to make all decisions involved with the conversion implementation.
3. Surface Water Fund: This section requires the City to maintain the Surface Water Fund as a separate, City enterprise fund.
4. Cost Allocation: This section lays out that the cost allocation shall be paid equally among participants through fees paid for water consumption.
5. Water Source: This section allows the GRP Administrator to make all decisions with respect to the source of conversion water.
6. GRP Infrastructure Ownership: This section calls out that the construction, maintenance, and ownership of the GRP Infrastructure shall be the responsibility of the GRP Administrator.
   
   

The Fiscal Year 2019 budget combined the Utility Fund with the Surface Water Fund. In researching policy actions necessary as a result of the change in the management of the Utility Enterprise Funds, the resolution amending the GRP Policy section will address this change.

Under the proposed Resolution No. 18-40, all surface water fees and pumpage fees will be maintained separately within the System Utility Fund. All expenses related to the conversion process will be funded by the pumpage and surface water fees maintained within the System Utility Fund.

All other provisions of the GRP Policy remain the same. Future amendments will need to be made to the City’s Financial Management Policy Statements to address minimum Cash Equivalent policy requirements; those revisions will be brought forward at a later date.

Staff reviewed the recommendation with the Council Finance/Audit Committee at the November 15th meeting; the Committee recommended moving forward with the recommendation and placing it on the Resolutions portion of the agenda for maximum transparency.

Recommendation

Consideration and approval of Resolution No. 18-40, a Resolution of the City Council of the City of Sugar Land, Texas, amending Resolution No. 07-12 to provide for the Surface Water Fund to be maintained as revenues separately accounted for within the System Utility Fund in connection with the policy establishing the terms and conditions for participation in the City’s Groundwater Reduction Plan.