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88. Regular Meeting July 26, 2004 Page 12 Mr. Taylor moved for adoption of the Resolution and Mr. Thomaides seconded the motion. Mr. O'Leary stated in July, 2000, the City entered into a tax abatement agreement with Hays Energy, L. P. to use reclaimed water for cooling purposes. He stated in late 2003, Hays Energy deactivated the plant. He stated on May 24, 2004, the Council tabled the Resolution for declaring a default under the tax abatement agreement, to allow Staff to negotiate a contract amendment. He stated Staff has negotiated for the 1) monthly paYment to the City for 500,000 gallons of reclaimed water until June 30, 2006, 2) tþe City will credit Hays Energy for $71,626.71 for past overpaYments made by Hays Energy for wastewater services, 3) the base quantity of reclaimed water Hays Energy would expect would increase from 1.5 mgd to 2.0 mgd, 4) the maximum quantity of reclaimed water Hays Energy would expect to supply would decrease from 3.6 mgd to 2.6 mgd, 5) Hays Energy would allow connection to the wastewater line it constructed and dedicated to the City as long as the City maintains 0.5 mgd, 6) Hays Energy would pay the City $500.00 per month for maintenance of the dormant water and wastewater lines while the plant is inactive, and 7) the cessation of use of reclaimed water would be removed as a default event under the tax abatement agreement. The Council then voted unanimously for adoption of the Resolution. Mayor Narvaiz introduced for consideration approval of minutes of the Regular Meeting held July 12, 2004, approval of four Ordinances on second reading, adoption of two Ordinances on third and final reading, adoption of six Resolutions, approval of a Letter Agreement authorizing First Southwest Company to bid on Revenue Bonds issued by the City of San Marcos, on consensus. The Council removed Items 16 and 18, approval of Ordinances on second reading, and Item 25, adoption of a Resolution, to be considered separately. Mr. Mihalkanin moved for approval of minutes of the Regular Meeting held July 12, 2004, approval of two Ordinances on second reading, adoption of two Ordinances on third and final reading, adoption of the remaining five Resolutions, and approval of a Letter Agreement authorizing First Southwest Company to bid on Revenue Bonds issued by the City of San Marcos, on consensus and Mr. Guerrero seconded the motion, which passed unanimously. The captions of the Ordinances and Resolutions read as follows: Approval of Ordinances on second reading: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, MAKING NONSUBSTANTIVE REVISIONS TO SECTIONS 3.01, 7.04, 10.01, 10.07 AND 12.01 OF THE CITY CHARTER; AND INCLUDING PROCEDURAL PROVISIONS. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN ANNEXING TO THE CITY A TRACT OF LAND CONTAINING 326 LESS, LOCATED ADJACENT TO AND NORTH OF THE RIDGE AT THE WILLOW CREEK SECTION 9 SUBDIVISIONS (NORTH OF MARCOS, TEXAS, ACRES, MORE OR STONECLIFF AND THE 2200-2600