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104 Regular Meeting August 2, 2006 Page 5 OF SAN MARCOS TAX INCREMENT REINVESTMENT ZONE NO.3; INCLUDING I PROCEDURAL PROVISIONS; AND DECLARING AN EMERGENCY. r. Diaz moved for adoption of the Ordinance on emergency, and Mr. Bose seconded the motion. Mr. O'Leary stated the purpose of the Tax Increment Reinvestment Zone No. 3 is establishing a financing mechanism for the construction of the San Marcos Conference Center in conjunction with the John Q. Hammons Hotel project. He stated the TIRZ creation will allow the tax increment, or the increased ad valorem tax collection, to be captured and utilized to fund specific public facility projects, such as the new conference center. Tax Increment Reinvestment Zone No. 3 consists of a 15- acre tract of property at the intersection of IH 35 South and McCarty Lane. He stated approval of the project 'plan and financing plan by the Board of Directors for the Zone and by the City Council is needed in order to begin operation of the Zone and help pay the debt. Mr. Mihalkanin stated he voted against the John Q. Hammons Hotel project, but will be voting to support this Tax Zone, which will help pay the debt. The Council then voted unanimously for adoption of the Ordinance on emergency. Mayor Narvaiz introduced for consideration approval of an Ordinance on first reading, the caption which was read as follows: I AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, APPROVING AMENDING ARTICLE 2, DIVISION 2 OF CHAPTER 86, AND ARTICLE 6 OF CHAPTER 14 OF THE CITY CODE TO REVISE AND UPDATE THE CITY'S WATER CONSERVATION AND DROUGHT RESPONSE PLANS AND REGULATIONS; PROVIDING FOR PENALTIES; AND INCLUDING PROCEDURAL PROVISIONS. Mayor Narvaiz stated two citizens have signed up to speak on this item. 1) Dianne Wassenich stated the River Foundation Board meets Thursday, August 3, 2006, and she might have additional comments after the meeting where they plan to discuss these changes to the Ordinance. She stated the previous Ordinance was difficult for people to understand the rules of the water systems. She encouraged the Council to support the changes in the proposed Ordinance. 2) Brad Smith stated he supports these changes to the Ordinance, but he would like to see some additional technical issues tweaked. He encouraged the Council to support this Ordinance. Mr. Thomaides moved for approval of the Ordinance on first reading, including amendments provided by Staff, and Mr. Mihalkanin seconded the motion. Mr. O'Leary stated the objectives of the City of San Marcos Water Conservation Plan are to improve efficiency of water use and to decrease per capita consumption to provide additional water supplies for future growth. The Plan also fulfills the requirements of several state agencies that require utilities to have a water conservation plan. Jan Klein, Water Conservation loordinator, provided the Council with a powerpoint presentation regarding he proposed water conservation Ordinance amendments. The Council asked taff for a comparison table with the current Ordinance and the amendments. Mr. Mihalkanin stated since the proposed Ordinance will now affect the