Houston City Council unanimously approved an agreement yesterday with the $2.5 billion Houston Police Officers' Pension System that includes a $36.6 million payment to the system for the 2005 fiscal year, according to Patrick Trahan, city spokesman. In fiscal 2006, the city's contribution would be 16% of the police payroll, estimated in the agreement to be $55.9 million. From fiscal year 2007 through 2012, payments increase by $5 million over the prior year payment. The city is expected to issue up to $100 million in pension obligation bonds to fund the contributions. Also, the system agreed to drop its lawsuit, filed in July, to force the city to contribute $53 million to the system this year.