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4 Regular Meeting October 25, 1993 Page 4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, APPROVING THE TERMS AND CONDITIONS OF AN AGREEMENT BETWEEN THE CITY AND THE SAN MARCOS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT RELATED TO THE CONSTRUCTION OF A NEW INTERMEDIATE SCHOOL AND RELATED PUBLIC FACILITIES; AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT ON BEHALF' OF THE CITY; AND DECLARING AN EFFECTIVE DATE. ,~-'~ Mr. Guerra moved for adoption of the Resolution and Mr. Moore ¡ seconded the motion. The Council was advised this process will take approximately 90 days to complete. Dr. Anderson, the SMCISD Superintendent, provided the Council with a handout of action taken by the School Board earlier in the day objecting to providing security in the form of an escrow account in the amount of $750,000 for the completion of road and utility improvements associated with the construction of the intermediate school, reluctantly agreeing to provide the security required, but not agreeing for the escrow to be subject to draft by the city of San Marcos. Dr. Anderson also advised they will lose $6,000 in interest if required to provide this security and are not interested in using a letter of credit. Dr. Anderson advised the target date for this school is August 15, 1994, and if this date is not met, it will impact five school campuses. He stated the School Board is committedito meet the City's required standards. Mr. Patterson advised the Council the SMCISD is in the process of acquiring easements from TETCO for water and wastewater. The Council asked Mr. Taylor under what circumstances could the city withdraw funds in escrow, and Mr. Taylor stated if the contractor is seriously behind schedule, the city would have access to the funds. Staff advised the Council the utilities would be in the contractor's name, and school might begin without everything in place. Mr. Guerra asked Dr. Anderson if the school would move in prior to the City's requirements being met, and Dr. Anderson stated they would not. The Council discussed Section 3.7 of the inter local agreement regarding the $750,000 escrow funds and if the citizens would be protected if a portion of 3.7.2 is deleted. Mr. Moore then moved to amend section 3.7.2 in the second sentence as follows, "The escrow account or letter of credit shall be subject to draft by the City ÈY mutual agreement in the estimated amount of completion costs if the Improvements are not fully completed by the time the School is ready for occupancy, [deletion of remainder of sentence]," and Mr. Cox seconded the motion. Mr. Taylor stated the City either has security or does not, and recommended deletion of all of Section 3.7 if "by mutual consent" is added, because this takes away the security. Tbis would also require this matter to go back to the Planning commission for approval if the security is deleted. The city requires a certificate of occupancy to be issued prior to occupancy. Dr. Anderson stated section 3.2 of the agreement states the School District agrees to meet the City and Fire Codes. On roll call of the amendment the following vote was recorded: AYE: Moore, Hart, Cox, Plummer. NAY: Mooney, Morris, Guerra. ABSTAIN: None. Mr. Guerra then moved to amend the agreement to delete all of Section 3.7 (this would require this matter to be returned to the Planning Commission to revise the variance conditions as approved by Council) and Mr. Cox seconded the motion. On roll call of the amendment the following vote was recorded: AYE: Hart, Guerra, Cox. NAY: Moore, Mooney, Morris, Plummer. ABSTAIN: None. Mayor Morris then moved to amend section 3.6 as follows, "SMCISD . . . Road, or an all-weather road adjacent to stagecoach Road, will remaln .~ ~.," and in section 3.7.2 in~he second paragraph in the second sentence as follows, "The amount of security. . . contractor's invoices times 125% for work on the Improvements which has been. . . .", and Mr. Moore seconded the motion, which passed unanimously (Mr. Hart not present to vote on this amendment). On