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132. Regular Meeting October 11, 2004 Page 10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, EXPRESSING THE CITY'S CONTINUED SUPPORT FOR COMPLETION OF THE SANI MARCOS TRAFFIC SIGNAL IMPROVEMENTS PROJECT j AND DECLARING AN EFFECTIVE DATE. Mr. Mihalkanin moved for adoption of the Resolution, and Mr. Diaz seconded the motion. Mr. O'Leary stated at the last Regular Meeting the Council expressed a concern about moving forward with the traffic light synchronization project. He stated this Resolution expresses to TxDOT the importance of this project for the community. Mayor Narvaiz stated she has asked Mr. O'Leary and Mr. Thomaides to join her in hand delivering this Resolution to Robert Daigh, Texas Department of Transportation. The Council then voted unanimously for adoption of the Resolution. Mayor Narvaiz introduced for consideration Item 25, 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 IN AN AMOUNT NOT EXCEEDING $6,355,000.00 FOR THE PUBLIC PURPOSE OF PAYING CONTRACTUAL OBLIGATIONS TO BE INCURRED FOR THE FOLLOWING PURPOSES: CONSTRUCTING, RECONSTRUCTING AND IMPROVINGI STREETS j CONSTRUCTING AND IMPROVING DRAINAGE FACILITIES; PURCHASING FIRE DEPARTMENT VEHICLES AND EQUIPMENTj AND TO PAY COSTS OF ISSUANCE WITH RESPECT TO SUCH CERTIFICATES OF OBLIGATION. Mr. Mihalkanin moved for adoption of the Resolution, and Mr. Diaz seconded the motion. Mr. O'Leary stated this Resolution which directs the Staff to publish a Notice of Intent to issue Certificates of Obligation in the amount of $6,355,000.00 for three projects, which were identified in the Capital Improvements Program. He stated the three projects are $1,700,000.00 for street improvement projects, $3,604,000.00 for drainage improvements projects and $875,000.00 for a Fire Department Ladder Truck. Mr. Thomaides stated several citizens have contacted him regarding the need for drainage in San Marcos. He stated the City is borrowing $3,604,000.00 for specific drainage problems in the Westover neighborhood, Rio Vista neighborhood, Hutchison Street, Thorpe Lane and $200,000.00 for our Drainage Master Plan. He inquired whether the repaYment of these funds would be from the Drainage Utility. Mr. O'Leary stated the Drainage Improvement Projects' portion would be repaid from the Drainage Utility. Dan Wegmiller, First Southwest Company, stated the Drainage portion is being paid from Drainage Utility Revenue. He stated however, the City is selling a combination of Tax and Revenue CO's. The reason the City is selling Certificates of Obligation is the use of a tax pledge will provide a lower interest rate. Mr. Bose inquired as to the difference between Drainage Utility Revenue Bonds and Certificates of Obligation. Mr. I