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141. Regular Meeting October 28, 2002 Page 4 options are options at any time. Mr. O'Leary stated yes, grandfathering can be an option at anytime. Mr. Mark Taylor stated the State vesting statutes allow fees to be changed by a City and not subject to being fixed. Ms. Narvaiz stated she supports what the City has done. She also stated she feels housing needs to occur, and this is what keeps the economy going. Mr. Mihalkanin stated what concerns him is this should not be isolated from other building costs, and lot prices are more here than in New Braunfels. He stated he does not want to chase off investment in the community. He feels there needs to be some sense of balance from short-term fiscal balance not to change the economic climate or to choke it off. He asked the Staff to give Council recommendations in regard to the effect of keeping the $2000 impact fee and review this again next year, or keeping the $2000 impact fee and phase in increase each fiscal year. He stated he is not in favor of going back on the City's word in regard to ungrandfathering, but does not want to leave projects unfinished without a time frame of completion before collecting impact fees. He requested Staff to give Council a recommendation on a reasonable time frame for developers to complete projects before paying an impact fee. Mr. Taylor inquired where the number Chris Carson spoke of regarding incomes in San Marcos being the lowest in the region was derived and whether this number includes college students. Chris Carson stated he received this figure from Mr. Patterson's office. Ron Patterson, Director of Planning, stated this was the figure from the census data. He stated he would have to look at the household incomes to see whether students were included in this data and bring this back to the Council. Mr. Taylor stated he was reluctant to ungrandfather. He urged the Council not to go in that direction unless it was related to a time frame for completion. Ms. Narvaiz stated she would like to know the percentage of developments, which began and were completed within the past ten years. Mayor Habingreither stated he does not know how to handle this project without increasing impact fees. He also agrees there should be a time frame on completing developments. Mr. Taylor asked what the impact fees were on commercial and industrial developments. Mr. O'Leary stated currently these fees are based on the quantity of water used, and in the past they were based on living units. He also stated the Staff would come back with a recommendation regarding expiration of grandfathered development impact fees and would look at different geographical area actual cost of development. Mayor Habingreither introduced for consideration adoption of an Ordinance on emergency, the caption which was read as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, ANNEXING TO THE CITY A TRACT OF LAND CONTAINING 677 ACRES, MORE OR LESS, LOCATED ALONG AND ADJACENT TO THE 2500 TO 4500 BLOCKS OF STATE HIGHWAY 123 (HIGHWAY 123 SOUTH TRACT); APPROVING A SERVICE PLAN FOR THIS TRACT; PROVIDING FOR PUBLICATION; AND DECLARING AN EMERGENCY. Mr. Mihalkanin moved for adoption of the Ordinance on emergency and Mr. Mayhew seconded the motion. Mr. O'Leary stated the property owners are requesting this be adopted by emergency so they can begin the zoning