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62. Regular Meeting May 16, 2006 Page 6 Guerrero seconded the motion. Mr. O'Leary stated in accordance with Section 3.3 of the Residential Solid Waste Services Contract, TDS is I requesting a 6.46% increase to their fee. He stated the modification of rates is based on the CPI index for urban wage earners and clerical workers and the Gasoline index. He stated the increase would be $0.85. Mr. Bose stated he feels TDS needs to live within their contract. Mr. Jones inquired who is allowed to have a contract with CPl. Mr. O'Leary stated long term contracts with 5 years or more have CPI cost of living written into them. Mayor Narvaiz stated there are other ways we can cut costs. She stated when the bids went out the citizens of San Marcos wanted 2 pick ups per week, which increased the cost. On roll call for approval of the Ordinance on first reading, the following vote was recorded: AYE: Thomaides, Guerrero, Mihalkanin, Narvaiz, Diaz and Jones. NAY: Bose. ABSTAIN: None. Mayor Narvaiz introduced for consideration approval of an Annexation Ordinance on first reading, the caption which was read as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, ANNEXING TO THE CITY A TRACT OF LAND CONTAINING 81.15 ACRES, MORE OR LESS, LOCATED IN THE 3200-3300 BLOCKS OF HUNTER ROAD (FIRST BAPTIST CHURCH TRACT); APPROVING A SERVICE PLAN FOR THIS TRACT; AND INCLUDING PROCEDURAL PROVISIONS. I Mr. Mihalkanin moved for approval of the Ordinance on first reading, and Mr. Diaz seconded the motion, which passed unanimously. Mayor Narvaiz introduced a discussion regarding Project Updates on the Skate Park, Loop 82 Railroad Overpass and Traffic Signal Projects and direction to Staff. Sabas Avila, Assistant Director of Engineering, stated the Traffic Signalization Project is a joint Texas Department of Transportation and City project. He stated this project is ahead of schedule and should be completed by December. He stated all above-ground improvements are complete and currently the underground work is being conducted. He stated all the signals will be interconnected and centralized in the Engineering Department, where three staff members will assist in maintaining synchronization. He stated during the first year there will be a maintenance contract to learn the system, the second year the maintenance contract will decrease and the third year a new employee will be hired to specifically be a traffic signal technician. He stated this project should provide less congestion, which will be detected by a I video camera allowing Staff to make adjustments to have a steady progression of green lights. Mr. Thomaides inquired to the process for identifying pedestrian crossings. Mr. Avila stated usually it involves