1. Regular City Council Meeting September 2, 2008

2. LOCATION: 1400 Main Street, Southlake, Texas Council Chambers in Town Hall Council Chambers in Town Hall WORK SESSION: 4:00 p.m. 1.Call to order. 2.Invocation: Scott Berry, Chaplain of the Month 3.FY 2009 Budget 4. Erosion and Sediment Control 5.Discuss all items on tonight’s meeting agenda. REGULAR SESSION: 1.Call to order. 2A.Executive Session. 2B.Reconvene / Action necessary from Executive Session.

3. 3A. Mayor’s Report 1. Proclamation for Polycystic Kidney Disease Awareness Month 2. Proclamation in recognition of the Southlake Green Dragons winning the USSSA 16U State Baseball Championship 3B. City Manager’s Report 3C.Parks and Recreation Board Report CONSENT AGENDA: 4A.Approve the minutes from the August 19, 2008, regular City Council meeting. 4B.Excuse a City Council member for absences from meetings. 4C. Resolution No. 08-046, Annual review of Investment Policy and Investment Strategies. Resolution No. 08-046, Annual review of Investment Policy and Investment Strategies.Resolution No. 08-046, Annual review of Investment Policy and Investment Strategies.

4. 4D.Ordinance No. 945, 1 st Reading, Approve a negotiated resolution between the Atmos Cities Steering Committee and Atmos Energy Corp. Ordinance No. 945, 1 st Reading, Approve a negotiated resolution between the Atmos Cities Steering Committee and Atmos Energy Corp.Ordinance No. 945, 1 st Reading, Approve a negotiated resolution between the Atmos Cities Steering Committee and Atmos Energy Corp. 4E.Ordinance No. 480-509A, 1 st Reading (ZA08-072), Zoning Change and Development Plan for Cotswold Valley (FKA Estancia) at 579 N. Kimball Ave. Current Zoning: R-PUD. Requested Zoning: R-PUD. SPIN #6. Ordinance No. 480-509A, 1 st Reading (ZA08-072), Zoning Change and Development Plan for Cotswold Valley (FKA Estancia) at 579 N. Kimball Ave. Current Zoning: R-PUD. Requested Zoning: R-PUD. SPIN #6.Ordinance No. 480-509A, 1 st Reading (ZA08-072), Zoning Change and Development Plan for Cotswold Valley (FKA Estancia) at 579 N. Kimball Ave. Current Zoning: R-PUD. Requested Zoning: R-PUD. SPIN #6. REGULAR AGENDA: 5.Public Forum. 6A.ZA08-061, Revised Site Plan for Watermere at Southlake Clubhouse on Lot 4, Block 1, Watermere Addition at 301 Watermere Dr. Current Zoning: S-P-2. SPIN #15. PUBLIC HEARING ZA08-061, Revised Site Plan for Watermere at Southlake Clubhouse on Lot 4, Block 1, Watermere Addition at 301 Watermere Dr. Current Zoning: S-P-2. SPIN #15. PUBLIC HEARINGZA08-061, Revised Site Plan for Watermere at Southlake Clubhouse on Lot 4, Block 1, Watermere Addition at 301 Watermere Dr. Current Zoning: S-P-2. SPIN #15. PUBLIC HEARING 6B.Ordinance No. 480-566, 2 nd Reading (ZA08-056), Zoning Change and Concept Plan for Lots 9-12, J.H. Childress No. 254 Addition at 3010 Lake Dr. Current Zoning: AG. Requested Zoning: SF-20B. SPIN #3. PUBLIC HEARING Ordinance No. 480-566, 2 nd Reading (ZA08-056), Zoning Change and Concept Plan for Lots 9-12, J.H. Childress No. 254 Addition at 3010 Lake Dr. Current Zoning: AG. Requested Zoning: SF-20B. SPIN #3. PUBLIC HEARINGOrdinance No. 480-566, 2 nd Reading (ZA08-056), Zoning Change and Concept Plan for Lots 9-12, J.H. Childress No. 254 Addition at 3010 Lake Dr. Current Zoning: AG. Requested Zoning: SF-20B. SPIN #3. PUBLIC HEARING

5. 6C.ZA08-057, Plat Showing for Lots 9 – 12, J.H. Childress No. 254 Addition, being Tract 3D2, J.H. Childress Survey, Abstract No. 254 at 3010 Lake Dr. Current Zoning: AG. Proposed Zoning: SF-20B. SPIN #3. 6D.Ordinance No. 941, 2 nd Reading, Adopt an ordinance to dedicate a public utility easement for public purposes on city owned property at Bicentennial Park for the construction of a right turn deceleration lane along W. Southlake Blvd. PUBLIC HEARING Ordinance No. 941, 2 nd Reading, Adopt an ordinance to dedicate a public utility easement for public purposes on city owned property at Bicentennial Park for the construction of a right turn deceleration lane along W. Southlake Blvd. PUBLIC HEARINGOrdinance No. 941, 2 nd Reading, Adopt an ordinance to dedicate a public utility easement for public purposes on city owned property at Bicentennial Park for the construction of a right turn deceleration lane along W. Southlake Blvd. PUBLIC HEARING 6E.Ordinance No. 942, 1 st Reading, Approve and adopt the annual budget for Fiscal Year 2009 and approve the revised budget figures for Fiscal Year 2008 and multi-year Capital Improvement Plan. FIRST PUBLIC HEARING 6F.Ordinance No. 943, 1 st Reading, Tax Levy Ordinance. FIRST PUBLIC HEARING. 6G.Ordinance No. 944, 1 st Reading, Approve an ordinance providing for a residential homestead property tax exemption.

6. 7A. Ordinance No. 480-565, 1 st Reading (ZA08-050), Zoning Change and Site Plan for CySolutions Office Complex at 165 S. Kimball Ave. Current Zoning: SF-1A. Requested Zoning: S-P-1. SPIN #7. Ordinance No. 480-565, 1 st Reading (ZA08-050), Zoning Change and Site Plan for CySolutions Office Complex at 165 S. Kimball Ave. Current Zoning: SF-1A. Requested Zoning: S-P-1. SPIN #7.Ordinance No. 480-565, 1 st Reading (ZA08-050), Zoning Change and Site Plan for CySolutions Office Complex at 165 S. Kimball Ave. Current Zoning: SF-1A. Requested Zoning: S-P-1. SPIN #7. 7B.Ordinance No. 480-567, 1 st Reading (ZA08-007), Zoning Change and Site Plan for Legacy Business Park at 240 S. Peytonville Ave. being Lot 3, Akard Addition. Current Zoning: S-P-2. Requested Zoning: S- P-1. SPIN #16. Ordinance No. 480-567, 1 st Reading (ZA08-007), Zoning Change and Site Plan for Legacy Business Park at 240 S. Peytonville Ave. being Lot 3, Akard Addition. Current Zoning: S-P-2. Requested Zoning: S- P-1. SPIN #16.Ordinance No. 480-567, 1 st Reading (ZA08-007), Zoning Change and Site Plan for Legacy Business Park at 240 S. Peytonville Ave. being Lot 3, Akard Addition. Current Zoning: S-P-2. Requested Zoning: S- P-1. SPIN #16. 7C.Ordinance No. 480-543, 1 st Reading (ZA07-126), Zoning Change and Concept Plan for 200 S. Peytonville Ave. being Tract 3C02, W.R. Eaves Survey, Abstract No. 500. Current Zoning: S-P-2. Requested Zoning: O-1. SPIN #16. Ordinance No. 480-543, 1 st Reading (ZA07-126), Zoning Change and Concept Plan for 200 S. Peytonville Ave. being Tract 3C02, W.R. Eaves Survey, Abstract No. 500. Current Zoning: S-P-2. Requested Zoning: O-1. SPIN #16.Ordinance No. 480-543, 1 st Reading (ZA07-126), Zoning Change and Concept Plan for 200 S. Peytonville Ave. being Tract 3C02, W.R. Eaves Survey, Abstract No. 500. Current Zoning: S-P-2. Requested Zoning: O-1. SPIN #16. 7D.Ordinance No. 480-568, 1 ST Reading (ZA08-046), Zoning Change and Concept Plan for Lots 22 and 23, TM Hood No. 706 at 1340 and 1340B Shady Oaks Dr. being Tracts 2C, 2C2, 2C2A, 2C2B, TM Hood Survey, Abstract No. 706. Current Zoning: AG. Requested Zoning: SF-1A. Ordinance No. 480-568, 1 ST Reading (ZA08-046), Zoning Change and Concept Plan for Lots 22 and 23, TM Hood No. 706 at 1340 and 1340B Shady Oaks Dr. being Tracts 2C, 2C2, 2C2A, 2C2B, TM Hood Survey, Abstract No. 706. Current Zoning: AG. Requested Zoning: SF-1A.Ordinance No. 480-568, 1 ST Reading (ZA08-046), Zoning Change and Concept Plan for Lots 22 and 23, TM Hood No. 706 at 1340 and 1340B Shady Oaks Dr. being Tracts 2C, 2C2, 2C2A, 2C2B, TM Hood Survey, Abstract No. 706. Current Zoning: AG. Requested Zoning: SF-1A.

7. 8. There are no items on this agenda. 9A.Award a construction contract to Legacy Contracting, LP in the amount of $776,867 for the wholesale meter station improvements and provide for construction phase contingencies or reject all bids. Award a construction contract to Legacy Contracting, LP in the amount of $776,867 for the wholesale meter station improvements and provide for construction phase contingencies or reject all bids.Award a construction contract to Legacy Contracting, LP in the amount of $776,867 for the wholesale meter station improvements and provide for construction phase contingencies or reject all bids. 9B.Consider SP08-199, Conditional Sign Permit for East Southlake #2 LTD at 910 E. Southlake Blvd. Consider SP08-199, Conditional Sign Permit for East Southlake #2 LTD at 910 E. Southlake Blvd.Consider SP08-199, Conditional Sign Permit for East Southlake #2 LTD at 910 E. Southlake Blvd. 9C.Consider SP08-210, Conditional Sign Permit for 280 Sports Complex at 280 Commerce St. Consider SP08-210, Conditional Sign Permit for 280 Sports Complex at 280 Commerce St.Consider SP08-210, Conditional Sign Permit for 280 Sports Complex at 280 Commerce St. 10.There are no items on this agenda. 11.Meeting adjourned.

8. Resolution 08-046 Annual Review of Investment Policy and Strategies September 2, 2008

9. Purpose of Review Public Funds Investment Act Section 2256Public Funds Investment Act Section 2256 –Requires the governing body to review its policy and strategies annually (last review September 2007)

10. Resolution No. 08-046 Policy reviewed against the Public Funds Investment ActPolicy reviewed against the Public Funds Investment Act –Identified no necessary changes to the investment policy.

11. Investment Strategy Operating fundsOperating funds –First objective is to assure that anticipated cash flows are matched with adequate investment liquidity. –Second objective is to create a portfolio structure which will experience minimal volatility during economic cycles.

12. Investment Strategy Debt service fundsDebt service funds –Primary objective: to ensure adequate investment liquidity to cover the debt service obligation on the required payment date.

13. Investment Strategy Special projects, special purpose, or construction fundSpecial projects, special purpose, or construction fund –Primary objective: to ensure anticipated cash flows are matched with adequate investment liquidity.

14. Investment Authority Investment Officer(s) of the City are responsible for investment decisions and activities.Investment Officer(s) of the City are responsible for investment decisions and activities. –Director of Finance –Deputy Director-Administration City staff involved in the investment process shall refrain from personal business activityCity staff involved in the investment process shall refrain from personal business activity

15. Investment Objectives SafetySafety LiquidityLiquidity YieldYield Public TrustPublic Trust

16. QUESTIONS? Please contact Sharen Jackson 817.748.8042

17. Ordinance No. 945 Approve a negotiated resolution between the Atmos Cities Steering Committee and Atmos Energy Corp., Mid-Tex Division September 2, 2008

18. Background Member of the Atmos Cities Steering Committee (“ACSC”)Member of the Atmos Cities Steering Committee (“ACSC”) Atmos filed application to increase natural gas ratesAtmos filed application to increase natural gas rates –$33.5 million rate increase

19. Ordinance No. 945 Approve new ratesApprove new rates –Rate tariffs (Attachment A) –Atmos’ proof of revenues (Attachment B)

20. Ordinance No. 945 SettlementSettlement –Reduced Atmos requested increase –$0.81 monthly increase for residential customer –Will eliminate potential rate case legal fees –ACSC Executive Committee recommends approval of proposed settlement

21. QUESTIONS? Please contact Sharen Jackson 817.748.8042

22. ZA08-072 OWNER :579 Kimball LLC REQUEST:Approval of a zoning change and development plan for “R-PUD” Residential Planned Unit Development District to change the wall and entry feature design for Cotswold valley (f.k.a. Estancia) being approximately 8 acres. LOCATION:The property is located at 579 N. Kimball Ave.

25. Cotswold Valley (f.k.a Estancia)

27. Approved Development Plan

28. Approved Wall & Entry Features

30. Proposed Development Features

33. Questions?Contact Dennis Killough (817) 748-8072