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115. Regular Meeting July 23, 2001 Page 5 MAINTENANCE, EQUIPMENT UPGRADE AND TRAINING; AUTHORIZING THE CITY MANAGER'S EXECUTION OF THIS AGREEMENT ON BEHALF OF THE CITY; AND DECLARING AN EFFECTIVE DATE. Mayor Chiu introduced for consideration Item 19 removed from the consent 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 RESALE OF A PARCEL OF REAL PROPERTY LOCATED IN THE 1000 BLOCK OF DAILEY STREET THAT WAS FORECLOSED FOR UNPAID TAXES; AND DECLARING AN EFFECTIVE DATE. Ms. Hughson moved to deny this Resolution and Mr. Mayhew seconded the motion, which passed unanimously. Mayor Chiu introduced for consideration Item 22 removed from the consent agenda, adoption of a Resolution, the caption which was read as follows: A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, DIRECTING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION. Mr. Mayhew moved for adoption of the Resolution and Ms. Tatum seconded the motion. Mr. Mihalkanin inquired as to street overlay being funded with Certificates of Obligation. Mr. Gilley stated this would keep the City's debt service as low as possible without spikes. The debt service will be consistent with the life of the project. Mr. Mihalkanin stated the street overlay program was not included in the bond program. Mr. Gilley stated he would have significant reluctance to issue General Obligation Bonds for a street overlay program, as those bonds are issued for twenty or twenty- five years. Mr. Gilley stated Certificates of Obligation do make sense for a street overlay program, as they can be issued as they are needed and fit well with the life of the project. Mr. Gilley stated the annual cost of the street overlay is significant, and the Council has requested $50,000.00 additional be added each year in hopes of catching up with this program. Mr. Mihalkanin requested Staff provide the Council with an estimate of what amount of funds could be used towards the street overlay program without issuing Certificates of Obligation. Council agreed this information would be helpful. The Council then voted unanimously for adoption of the Resolution. Mayor Chiu introduced for consideration Item 23 removed from the consent agenda, approval to allow First Southwest Company to bid on City of San Marcos, Texas Combination Tax and Revenue Certificates of Obligation, Series 2001. Ms. Hughson moved for approval and Mr. Mayhew seconded the motion, which passed unanimously. Mayor Chiu introduced the City Council's Report. (1) Mr. Mihalkanin stated a citizen who resides in Sunset Acres Neighborhood called him to state CARTS has defunct bus stop signs remaining in their neighborhood.