08261996 Regular Meeting - Laserfiche WebLink

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82 Regular Meeting August 26, 1996 Page 11 a policy decision. Mr. Guerra stated he wants to address the oversizing issue and if Mr. Gilley needs the Council direction now regarding this. Mr. Gilley stated it is needed as soon as possible because the engineering work will begin soon. Mr. Boeker also added another factor to take into consideration is Gary Job Corps' permit to discharge. Mr. Guerra stated there seems to be confusion what direction the Council provided regarding this matter and would like the information reviewed that gave that direction. Mr. Hart stated he will respect the direction Council gave Mr. Gilley but he does not remember that direction being given. Mr. Gilley stated it is not too late to delete the oversize issue. Mr. Guerra stated if oversizing is deleted now, how could we deal with growth in that part of town in the future, and Mr. Gilley stated we could use septic systems, package plants or pursue a separate wastewater line later. Ms. Hughson asked if we know the oversizing will run $500,000.00, and Mr. Gilley stated it is an estimate and could cost more. On roll call the following vote was recorded: AYE: Hughson, Moore, Guerra, Cox, Hernandez. NAY: Mihalkanin, Hart. ABSTAIN: None. Mayor Moore introduced for consideration Item 10.B.(9) removed..from the consensus agenda, adoption of a Resolution, the caption which was read as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, APPROVING THE TERMS AND CONDITIONS OF A LETTER OF INTENT BETWEEN THE CITY AND ELIM WATER COMPANY, INC. (ELIM) FOR THE CITY'S ACQUISITION OF ELIM; AUTHORIZING THE CITY MANAGER TO EXECUTE THE LETTER ON BEHALF OF THE CITY; AUTHORIZING THE FILING OF AN APPLICATION FOR APPROVAL OF THIS ACQUISITION BY THE TEXAS NATURAL RESOURCE CONSERVATION COMMISSION; AND DECLARING AN EFFECTIVE DATE. Ms. Hughson moved for adoption of the Resolution and Mr. Hart seconded the motion. Ms. Hughson stated this is a major item and should not have been placed on the consensus agenda. Mayor Moore stated this is to approve a letter of intent, put $10,000.00 towards the initiation of the negotiation, allow an evaluation of the system for soundness, and negotiate the fine points of the contract. Mr. Cox stated it is his understanding Elim's issue of outstanding notes is being paid with revenues from their service area and would apply to us also. We would pay for the notes in addition to the stock, but the revenues would pay off the notes for us, and Mr. Gilley stated it would presumably operate in the same manner as it is structured now. Mayor Moore asked upon acquisition if we would alter Elim's rate structure, and Mr. Gilley stated that issue will have to be determined by the Council. Mr. Gilley stated most of Elim's system would be subject to our out of City rate, and our assumption is our City rates would apply. Ms. Hughson asked for a copy of their current rates. The Council voted unanimously for adoption of the Resolution. Mayor Moore introduced the City Manager's Report. The Corridor Business Incubator has requested the City allow them to lease a portion of their building to an anchor tenant who is not an incubator tenant. Our contract with them requires they get approval from the City before they can lease to someone who is not an but incubator tenant. We do not have a procedure to deal with this, Mr. Gilley thinks this should be authorized by the Council rather than the staff, and this could be placed on a Council agenda if Council concurs. Mayor Moore stated the Board of Directors of the Corridor Business Incubator will be meeting and this item needs to be discussed there first. Mayor Moore invited the Council to give a consensus to take this matter to that meeting and then place it on the agenda. Mr. Hernandez stated he would not be interested in doing this. He feels the project has a sole purpose and needs to work only on that purpose. The Council concurred with Mr. Hernandez.