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129 Regular Meeting November 23, 1992 Page 5 THE EAST SIDE INTERCEPTOR PROJECT; AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT; AND DECLARING AN EFFECTIVE DATE. A RESOLUTION OF THE CITY OF SAN MARCOS, TEXAS, APPROVING FINAL PAYMENT TO STOKES CONSTRUCTION COMPANY FOR COMPLETION OF THE CONSTRUCTION OF AN AIRCRAFT SHELTER; ACCEPTING THE PROJECT FOR USE BY THE CITY; AUTHORIZING FINAL PAYMENT IN THE AMOUNT OF $19,304.00; AND DECLARING AN EFFECTIVE DATE. (Mayor Morris abstaining to the preceding item). Mayor Morris introduced for consideration Item 7.B. which was removed from the concensus agenda, approval of an Ordinance on second reading, the caption which was read as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, SETTING A FEE FOR THE USE OF ANY STREET, ALLEY, HIGHWAY OR GROUNDS OF THE CITY BY ANY PERSON OPERATING A BUS SERVICE PRIMARILY WITHIN THE CITY THAT DOES NOT HAVE A FRANCHISE AGREEMENT WITH THE CITY; PROVIDING FOR THE TERMS AND CONDITIONS OF THE PAYMENT OF SUCH FEE; PROHIBITING THE USE OF ANY STREET~ ALLEY, HIGHWAY OR GROUNDS OF THE CITY BY SUCH A SERVICE UNLESS THIS FEE IS PAID; PROVIDING FOR SEVERABILITY; REPEALING ALL CONFLICTING ORDINANCES; PROVIDING A PENALTY; PROVIDING FOR PUBLICATION AND PROVIDING AN EFFECTIVE DATE. Ms. Kissler moved for approval of the Ordinance on second reading and Mr. Guerra seconded the motion. Mayor Morris stated in 1984 the city of San Marcos entered into an agreement with Laidlaw for a street use fee of $600.00 a month which remains in effect at this time. The city would like to continue to negotiate with any public transportation system that is a for-profit system operating in the city. Due to the fact there was no policy franchise ordinance, the Council would like to establish an ordinance to exercise the right to negotiate with a vendor that provides for-profit bus service in San Marcos. This ordinance would be specific to public buses for-profit. The fee will be based on the exact cost to the city for street maintenance and the American with Diabilities Act. The Mayor further stated this was a federal mandate without funding, so the taxpayers would have to fund this law. Therefore, the Council would establish a Franchise Ordinance allowing the city to negotiate a franchise. Mayor Morris asked Mr. Gilley what the date was that the University would renegotiate the contract with Laidlaw. Mr. Gilley stated the contract expires in August 1994. Mr. Guerra asked who pays the city contract with Laidlaw. Sam Woods, Graduate Student at Southwest Texas, stated the University pays the fees for Laidlaw from the student fees. Mr. Woods stated he was vigorously opposed to the increase in the franchise fee for the shuttle bus operation at SWT. He felt the city should look at the students as a source of revenue and an important part of this community and not continue to charge the students for continuous maintenance. Mayor Morris stated the Council was i not out to get the students, but to offer a cost allocation of what it cost the taxpayers to provide the street repairs and accommodations in regard to the shuttle bus system. Mayor Morris also stated the city and the University work closely as a partnership when necessary and the Council does not work against the students. Christopher Kuhl, student at SWT, asked the Council if the 5% increase was a fixed fee. The Mayor stated it was not, and that this ordinance would give the city the authority to establish a 5% of gross receipts, but it is not specific to any company, therefore, it will be based on the cost of maintaining and upgrading the city streets to accommodate the buses. Mr. Kuhl suggested the Council could set a flat-rate fee as opposed to the percentage increase. The \