09241986 Emergency Meeting - Laserfiche WebLink

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1 MINUTES OF THE EMERGENCY MEETING OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, SEPTEMBER 24, 1986 PRESENT: Mayor J. E. Younger Hayor Pro-Tern Council Members Betty Jane Kissler Karl W. Brown Bill Coddington Gerald G. Farr * Fred Guerra William C. Nicola City Manager City Secretary City Attorney Assistant City Attorney A. C. Gonzalez Janis K. Womack * Lamar W. Hankins Ross Allegro Also Present: Mark Hendricks, Ruth Ann Hoch, Ruben Barrera, Tex Hughson, Jeff Hill, Don Laine, Chuck Smith and others. Mayor Younger called the meeting to order at 7:00 p.m. Mayor Younger introduced for consideration adoption of a Resolution, the caption which was read as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN ~~RCOS, TEXAS, APPROVING THE ARTICLES OF INCORPORA- TION OF S.E.M. CORPORATION, BYLAWS OF S.E.M. CORPORA- TION, MINUTES OF THE FIRST MEETING OF THE BOARD OF TRUSTEES OF S.E.M. CORPORATION, THE PROMISSORY NOTE OF ELIM WATER COMPANY, INC., THE DEED OF TRUST OF ELIM WATER COMPANY, THE REORGANIZATION AGREEMENT BETWEEN THE NON-PROFIT CORPORATION AND ELIM WATER COMPANY, INC.; APPROVING THE CONTRACT OF SALE BETWEEN S.E.M. CORPORA- TION AND THE CITY OF SAN MARCOS AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONTRACT; APPROVING THE CONTRACT FOR TRANSFER OF CERTAIN WATER SYSTEM FACILI- TIES BETWEEN ELIM WATER COMPANY, INC. AND THE CITY OF SAN MARCOS AND AUTHORIZING THE CITY MANAGER TO EXECUTE THAT CONTRACT; APPOINTING FOUR TRúSTEES TO THE S.E.M. CORPORATION BOARD OF TRUSTEES; APPOINTING A TRUSTEE FOR THE DEED OF TRUST OF ELIM WATER COMPANY, INC., AND DE- CLARING AN EFFECTIVE DATE. Ms. Kissler moved for adoption of the Resolution and Mr. Coddington seconded the motion. Mr. Coddington asked Mr. Gonzalez if this is a good deal for the City. Mr. Gonzalez stated the City will be able to purchase Elim in the future without additional investment, and that the City will be in a position to be able to control more ef- fectivelythe water development in our ETJ. The City will take over the water system by 2006. The City will be able to implement the "Maxwell" type agreement. Mr. Coddington pointed out the City will be advancing more than the $308,000 as is reflected in the Deed of Trust on Page 1, Sec. 5. Mr. Coddington asked if it would require six votes of approval for anything to be passed on the NPC Board, to which Mr. Gonzalez stated this is not true, but for major items to be passed it will require six votes of approval. Mr. Coddington stated there are $371,625 of notes payable listed, and it could be possible that there are other undisclosed liabilities. Mr. Gonzalez stated in the Reorganization Agreement, there is a warranty that pro- vides the owners of Elim are representing there are no other liabili- ties other than those represented in the cash and disbursements account other than those that would be in a normal transaction of business. * Messrs. Guerra and Hankins were not present at this meeting.