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136. Regular Meeting December 14, 2005 Page 6 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, APPROVING THE TERMS AND CONDITIONS OF A TAX ABATEMENT AGREEMENT I BETWEEN THE CITY AND THE CFAN COMPANY FOR A MANUFACTURING FACILITY EXPANSION PROGRAM AT THE INTERSECTION OF NORTH IH35 AND TECHNOLOGY WAY, AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT, AND DECLARING AN EFFECTIVE DATE Mr Mihalkanin moved for adoption of the Resolution and Mr Guerrero seconded the motion Mr O'Leary stated the City has received a request from CFAN Company for a tax abatement in connection with a proposed multi- year expansion program at CFAN's manufacturing plant on North IH-35 in San Marcos He stated CFAN's planned multi-phase program of capital investment and job creation at its San Marcos facility will amount to a total investment of approximately $30 million, 192 jobs retained and a total of approximately 350 new jobs created He stated the tax abatement agreement includes the following elements 1 CFAN would be required to make the proposed capital investments in new building and equipment, 2 The City would grant a tax abatement of 100% on the value of building improvements, new equipment and increase inventory for a period of seven years, and on 50% on the value of building improvements, new equipment and increased inventory for a period of three years; 3 CFAN would be required to retain the current level of jobs and create and maintain the requisite number of new jobs Bob Baeumel, CFAN, stated CFAN has been in business in San Marcos since 1993 He stated they are looking to expand their building I 100,000 square feet and add 250 employees Mr Thomaides thanked CFAN for their creation of additional jobs He stated these will be high tech great jobs Mr Jones inquired as to the addition of fire protection Mr O'Leary stated there are plans in the near future to build a new fire station in Northeast San Marcos The Council voted unanimously for adoption of the Resolution Mayor Narvaiz introduced for consideration Item 14, 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 A LICENSE AGREEMENT FOR ATTACHMENT TO UTILITY FACILITIES BETWEEN THE CITY AND CENTURYTEL OF SAN MARCOS, INC , AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT ON BEHALF OF THE CITY, AND DECLARING AN EFFECTIVE DATE Mr Mihalkanin moved for adoption of the Resolution, and Mr Guerrero seconded the motion Mr Taylor stated this proposed agreement is along the lines of the agreements with Grande Communication and Time-Warner He stated the compensation to the pole owner will increase from $1 70 to $6 01 per attachment per year, effective January 1, 2006 John Navarette, General Manager of Century tel, stated he would rather have a joint use pol