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53 Regular Meeting June 10, 1996 - Page 3 TEXAS DEPARTMENT OF TRANSPORTATION REGARD NG THE CITY'S APPLICATION FOR FUNDING FOR THE CITY-WIDE INTERMODAL TRANSPORTATION SYSTEM PROJECT; APPROVING THE COMMITMENT OF AT LEAST A 20% LOCAL MATCH OF PROJECT COSTS IF THE CITY'S PROJECT IS SELECTED; AUTHORIZING THE CITY MANAGER TO ACT IN ALL MATTERS REGARDING THIS PROJECT AND DECLARING AN EFFECTIVE DATE. Mayor Moore introduced for consideration Item 6.A. removed from the consensus agenda, approval of minutes of Regular Meeting held May 20, 1996. Mr. Cox moved for approval of the minutes and Mr. Guerra seconded the motion. Mr. Cox moved to amend the minutes on Page 1 to state "Mr. Cox stated the City had attended two meetings, one with the University, and one with the City, University, County and School District", and to delete the line that states "Dr. Supple requested information from the State regarding refunds of utilities paid by the State to the City", and Mr. Guerra seconded the motion, which passed unanimously. The Council then voted unanimously for approval of the minutes. Mayor Moore introduced for consideration Item 6.D. removed from the consensus agenda, removing from table and 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 A TOWER AGREEMENT BETWEEN THE CITY AND GTECH CORPORATION; AUTHORIZING THE CITY MANAGER TO SIGN THE AGREEMENT; AND DECLARING AN EFFECTIVE DATE. Mr. Guerra moved to remove from table and adoption of the Resolution and Mr. Hart -conded the motion. Mr. Gilley stated a number of cities around the state had been surveyed with regard to the current market rates for antennas and towers located on city properties. He stated the current range that the City of San Marcos has with GTECH at this time does represent current market rates and he feels confident the negotiated rate is acceptable, however the city does need to watch what goes on with jurisdictions around the state regarding changes in the telecommunications business and be prepared to act on those changes. The Council then voted unanimously for adoption of the Resolution. Mayor Moore introduced for consideration Item 6.E.(2), removed from the consensus agenda, adoption of a Resolution, the caption which was read as follows: A RESOLUTION BY THE CITY COUNCIL OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, AUTHORIZING THE PURCHASE OF A DEBT SERVICE RESERVE FUND SURETY POLICY WITH RESPECT TO THE CITY'S WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1996-A, IN LIEU OF ACCUMULATION OF A CASH RESERVE; AND CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT. Mr. Cox moved for adoption of the Resolution and Mr. Hernandez seconded the motion. Mr. Cox asked if this one million dollars was part of the fund balances kept for the bond rating funds. Mr. Gilley stated this money was part of the cash reserve required to be kept on hand for water/wastewater bond debt services. However, once the surety occurs it frees up the cash and the cash becomes part of the water/wastewater revenue fund balance, which then can be used in any way Council sees fit for water/wastewater fund. Mr. Gilley stated each issue carries its own debt reserve requirements. Mr. Hart asked if this was the same debt service fund that was used for the airport hangar. Mr. Gilley stated he would check into where the money came from for the airport. Diane Wassenich asked if this money would be used to build the new wastewater treatment plant. Mr. Gilley stated that was incorrect, and the wastewater treatment plant was a different project. Dan Wegmiller, First Southwest Company, stated the reserve fund was viewed from a market perspective as security for the bond holder, in that you don't have direct ability to tax a community, instead you rely on the revenue from the water/wastewater system. He stated with this type of security you are required to maintain a reserve fund. Most cities with a population under 95,000 are not permitted to use a surety bond because of the structural nature of the policy. He stated San Marcos was actually the first City under 95,000 to be able to use a