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Regular Meeting March 6, 2007 Pagel A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, APPROVING THE TERMS AND CONDITIONS OF A REIMBURSEMENT AGREEMENT BETWEEN THE CITY AND CFAN FOR CONSTRUCTION OF A FIRE PROTECTION PUMP; AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT ON BEHALF OF THE CITY; AND DECLARING AN EFFECTIVE DATE. Mr. Thomaides moved for adoption of the Resolution, and Ms. Jones seconded the motion. Mr. O'Leary stated with the expansion of CFAN's facility the City requested CFAN to relocate its fire protection system to an on -site facility. The Resolution allows the City's offer to participate in 50% of the construction of an on -site station. The City will also work with BF Goodrich for a similar project. Ms. Couch stated she supports this Resolution, but she would like to a cap on the funding cost. Mr. Thomaides inquired to whether placing a cap on this project would hurt this project. Mr. O'Leary stated the estimate was provided by CFAN and the City would pay half of the estimate. He stated he feels putting a cap would not hurt the project. Mayor Narvaiz inquired to whether there would be a public benefit for this project. Mr. Taggart stated if the Cit continues to over pressurize the grid at 110 -120 PSI, it will cause pipes to fail and this will remove the potential risk of that occurring. Ms. Couch moved to amend the Resolution to add a cap on the cost of the City's participation at $78,000.00 or less if the project comes in less than $156,000.00, and Mr. Jones seconded the motion.. Mr. O'Leary introduced Mr. Baummel, Plant Manger at CFAN. Mr. Braummel stated CFAN broke ground a year ago. He stated CFAN is currently hiring a lot of people, but the employment situation in town is becoming tough. He stated they need to hire about 300 people in the next few years. He also thanked the Council for working with CFAN. The Council then voted unanimously for the adoption of the Resolution. Mayor Narvaiz introduced for consideration Item 16, removed from the Consent agenda, adoption of a Resolution, the caption which was read as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS APPROVING A CONTRACT FOR THE SALE OF RECLAIMED WATER BETWEEN THE CITY AND TXI OPERATIONS, LP; AUTHORIZING THE CITY MANAGER TO EXECUTE THIS AGREEMENT ON BEHALF OF THE CITY; AND DECLARING AN EFFECTIVE DATE. Ms. Robertson moved for adoption of Resolution, and Ms. Couch seconded the motion. Mr. O'Leary stated TXI Inc. is a cement manufacturer located on Hunter Road south of San Marcos. He stated TXI is planning expansion of their manufacturing facilities and needs to secure reliable future water supplies to serve their process needs. He stated this contract would provide reclaimed water from the City's system. He stated TXI will pay infrastructure construction costs for connection to the existing system. The City will provide up to 700,000 gallons per day to TXI of reclaimed