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I I I regular meeting, november 20, 1978 page three III At 8:30 p.m. the Council recessed into Executive Session. The meeting was reconvened at 9:50 p.m. on motion of Mr. Hansen and second of Mr. Hyatt. The Mayor reported that the Council had discussed acquisition of property and the court case involving I the City and Mr. and Mrs. D.B. Thomas. Mr. James moved to authorize the City Attorney to investigate an appeal of that case to the Court of Civil Appeals. Mr. Hansen seconded the motion, which passed unanimously. Mr. Cavazos introduced rate consultants from Deloit,Sells and Haskins. Mr. John McClellan informed the Council that his firm had investigated the rate request made by Entex, Inc. and based its study on the company's 1977 fiscal year. Mr. McClellan said his. study indicated the company was receiving a return of 4.4% on the current rates and that the Railroad Commission and Public Utilities Commission recommended a return of between 5 and 6%. At a 5.5% rate of return, the company would need to add about $34,000 to its revenues from San Marcos, compared to the requested I increase of over $100,000. Mr. McClellan said this would mean roughly an increase of 8% in the Entex base rate. He also recommended that the cost-of-service clause requested by Entex be approved by the Coupcil. Council requested Mr. McClellan . present the results of his study in written form. Mr. Steve Gardner, representing the Legal Aid Society of Central Texas also encouraged the Council to hold Entex to a lesser rate increase than requested. No action was taken by the Council. ~&E. eb,el!€-<!f;.,v ,e!()Lf!.:SL jJ""I':' - '//!5/H714 The City Attorney read an Ordinance having the following caption: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, AMENDING THAT ORDINANCE OF JUNE 9, 1970, ENTITLED "ALCOHOLIC BEVERAGES", CODIFIED AS SECTION 2~-1 OF CHAPTER 2~ OF THE CODE OF ORDINANCES OF THE CITY OF SAN MARCOS; PROVIDING FOR A NEW COMPREHENSIVE LOCAL PUBLIC POLICY REGARDING THE POSSESSION, SALE, AND CONSUMPTION OF ALCOHOLIC BEVERAGES; ESTABLISHING A MORE EFFECTIVE ENFORCEMENT RELA- TIONSHIP BETWEEN THE CITY OF SAN MARCOS AND THE TEXAS ALCOHOLIC BEVERAGE COMMISSION AND ITS LOCAL ADMINISTRATOR; PROVIDING FOR THE COLLECTION OF FEES; ESTABLISHING PROCEDURESI AND CRITERIA FOR THE ISSUANCE OF "CONDITIONAL USE PERMITS" TO PROPERTY OWNERS FOR ESTABLISHMENTS LOCATED IN THE CITY OF SAN MARCOS WHICH DISPENSE LIQUOR, WINE, OR BEER FOR ON- PREMISE CONSUMPTION UNDER PERMIT BY THE STATE OF TEXAS; PROVIDING PROCEDURES FOR THE SUSPENSION AND REVOLCATION OF "CONDITIONAL USE PERMITS"; PROVIDING FOR THE EQUITABLE APPLICATION OF NEW POLICIES ESTABLISHED HEREIN AND FOR THE EXTINCTION OF OUTDATED POLICIES; PROVIDING FOR THE SUPER- CISION OF ALL ORDINANCES IN CONFLICT WITH THIS ORDINANCE; PROVIDING FOR INTERIM ADMINISTRATION OF THIS ORDINANCE AND A MORATORIUM ON THE PROCESSING OF APPLICATIONS FOR PERMITS ALLOWING THE DISPENSING OF ALCOHOLIC BEVERAGES FOR ON- PREMISE CONSUMPTION; PROVIDING FOR ORDERLY AND EFFICIENT AMENDMENT OF ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR A PENALTY CLAUSE; PROVIDING FOR A SEVERABILITY CLAUSE; DECLARING AN EMERGENCY; AND ESTABLISHING THE EFFECTIVE DATE TO BE IMMEDIATELY FROM AND AFTER PASSAGE OF THIS ORDINANCE. Mr. Sutton moved the Ordinance be adopted. Mr. Hansen seconded the motion. On roll call, the following vote was recorded: AYE: Hansen, Cavazos, Hyatt, James, Sutton, Breihan NAY: Arredondo. At 11:00 p.m. the Council recessed to Executive Session on motion, of Mr. Hansen and second of Mr. Hyatt. The meeting reconvened at 12:53 p.m. on motion of Mr. Arredondo and second of Mr. Hansen The Mayor announced that the Council had interviewed an applicant