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REGULAR MEETING AUGUST 10, 1998 PAGE 3 settled for $138,000, which would be two-thirds the amount. He requested support of the Council to pursue this proposal. Dr. Supple advised the two-third's amount was an arbitrary number, and in settling, they are not admitting the taxes were owed (to not set a precedent). Mr. Cox added the Appraisal District was not represented at the meeting other than through the taxing entities. Mr. Taylor stated the CAD does approve of settling; they are the party in litigation with SWT and the Foundation. Mr. Moseley expressed favor in negotiating to find a resolution. Mr. Cox stated this would be an opportunity to bring closure. Mr. Hernandez stated he wanted the City to not settle for anything less than the amount owed, $205,000.00 if that is the correct figure. He stated on behalf of the citizens of San Marcos, he would be hard pressed to settle for less than what is owed. Mr. Cox stated SWT's attorneys advised them they cannot spend tax money as tax money with the exception of the Fire Station Studio. They have been advised they can only settle for a lesser amount, and if the City is unwilling to accept this, we will remain in a deadlock. Mr. Taylor stated the parties can let this play out in the courts. Mr. Doiron agreed with Mr. Hernandez that the City should not dismiss a full one- third of the amount owed, maybe one dollar less, but not one-third less. Mr. Taylor advised a percentage fee would be attached on to the collection attorneys. Mr. Force stated they would waive their fee on this matter if less than the full amount is collected. He stated if SWT paid the full amount through the normal course, they would include their fee as part of the amount SWT would pay. Mr. Taylor stated CAD is verifying when the properties went off the tax roles. Ms. Hughson asked why the amounts provided by the CAD would need to correlate with SWT's, and wants to know CAD's amounts. Mr. Cox stated the primary issue for the Council to determine is whether or not to consider the two-third's settlement figure or provide another figure and whether or not the City is interested in settling this matter. Mr. Mihalkanin stated he was uncomfortable discussing this matter publicly, because we are in litigation on this issue. He stated he hoped that SWT would not spend more to appeal this matter than the amount owed. Mr. Taylor stated the State is afraid of setting a bad precedent. Mr. Mihalkanin stated he wants the alleged back taxes paid in full and to not discuss it further in public. Ms. Hughson and Messrs. Doiron and Hernandez want the City to pursue settling for the full amount. Mr. Moseley wants the amount owed to be determined and continue to negotiate, and Mr. Cox stated he would be interested in settling for three-quarters the amount owed. It was consensus of the Council to schedule an Executive Session on this matter at the next meeting of the Council. Dr. Supple expressed his appreciation for the Council's consideration. Mayor Moore introduced for consideration reconsideration of a Zoning Ordinance. The Council did not wish to reconsider this matter. The caption of the Ordinance reads as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, AMENDING THE OFFICIAL ZONING MAP OF THE CITY BY REZONING A 2.975 ACRE TRACT OF PROPERTY LOCATED AT 1511 RANCH ROAD 12, FROM "R-1" (SINGLE-FAMILY DWELLING DISTRICT [LOW DENSITY]) TO "MF-1" (MULTI-FAMILY DWELLING DISTRICT [LOW DENSITY]); INCLUDING PROCEDURAL PROVISIONS; AND PROVIDING FOR PENALTIES. Mayor Moore introduced for consideration approval of minutes of the Regular Meeting held July 27, 1998, adoption of three Ordinances on third and final reading, and adoption of nine Resolutions on consensus. The Council removed Items 8.B.(1), adoption of Ordinance on third and final reading, 8.C.(1), B.C.(6), 8.C.(7) and 8.C.(9), adoption of Resolutions, to be considered separately. Mr. Hernandez moved for approval of the minutes of the Regular Meeting held July 27, 1998, for adoption of the remaining two Ordinances on third and final reading, and for adoption of the remaining five Resolutions on consensus, and Mr. Mihalkanin seconded the motion, which passed unanimously (Ms Hughson abstaining to Item 8.C.13], adoption of Resolution). The captions of the Ordinances and Resolutions read as follows: Adoption of Ordinances on third and final reading: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, AMENDING THE CITY BUDGET ORDINANCE FOR THE 1997-98 FISCAL YEAR TO PROVIDE FUNDING FOR THE PROJECTS RECOMMENDED IN THE WASTEWATER MASTER PLAN; AND DECLARING AN EFFECTIVE DATE.