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Regular Meeting June 6, 2006 88. Page 9 reduced property tax liability incentive. He stated in Bay town , GLO not I only leased a parcel of land to Wal-Mart for 30 years, but also built the Wal-Mart building and leased it to Wal-Mart for 30 years so that Wal-Mart escaped the property tax burden. The Deputy Commissioner stated the inventory of Wal-Mart generates property tax at a level much greater than the agriculture exempt land that was undeveloped. Mayor Narvaiz stated she met with a representative of GLO. She stated she provided a copy of this Resolution, which she feels they will work with the City to resolve this issue. Mr. Thomaides thanked the Staff for moving so quickly on this issue. He stated he feels the map that was provided in the Council packets should be sent along with the Resolution. He stated he also feels the Resolution and the map should be sent to the County. Mr. Mihalkanin stated he agrees with Mr. Thomaides, and he also feels GLO has now become a developer, which is not the business of the government. Mr. Jones stated he also spoke with GLO, who stated the City would receive taxes from the lessee's inventory. He inquired as to the difference between the property taxes and the taxes from inventory. Mr. Taylor stated he would need to contact the appraisal district for this information. He stated a lease substantially removes property off the tax roll, and is worth less during the duration of the lease. The Council then voted unanimously for adoption of the Resolution. Mayor Narvaiz introduced for consideration Item 22, removed from the I consent agenda, approval to authorize the expenditure of $78,000.00 from Electric Utility Fund Contingency Funds for the purchase of transformers. Mr. O'Leary stated due to the increase in apartment and commercial construction, as well as residential subdivisions requiring pad mounted transformers, the Electric Utility has expended the $132,600.00, which was budgeted. Mr. Bose inquired whether the customer pays for the pad mounted transformers. Mr. O'Leary stated the City pays for the pad mounted transformers. The Council then voted unanimously for approval to authorize the expenditure of $78,000.00 from the Electric Utility Fund Contingency Funds for the purchase of transformers. I Mayor Narvaiz introduced for consideration Item 23, removed from the consent agenda, approval to authorize the expenditure of $17,100.00 from General Fund Contingency Funds to cover fuel costs for FY2006 for the San Marcos Fire Rescue. Mr. O'Leary stated San Marcos Fire Rescue call volume has increased 107% in the last 6 years with a 15% growth in services. He stated the budgeted fuel costs were underestimated with the 40% fuel price escalation in the last 18 months. Mr. Mihalkanin inquired as to the process of estimating fuel costs. Mr. O'Leary stated previously each Department estimated their fuel usage, which will now be done by an analysis to determine fuel usage and cost. He stated OPEC and weather patterns have a significant impact of what costs will be this next year. Mr. Bose inquired to how the Fire Department was reducing fuel consumption. Mr. O'Leary stated Staff has been asked to reduce their fuel consumption by