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Special Council Meeting Augu4t 22, 2012 Page 3 how to handle the downtown buildings. He also said the downtown buildings would require a lot 1615 more money and the funds available at the time would not be sufficient. Council Member Wright asked about negotiation of fees prior to approval of this expense. Mayor Hashmi said they should approve and renegotiate the contract citing they shoulet a discount because of the volume. He said they should have the City Manager renegotiate t contract. Council Member Wright asked Mayor Hashmi if he would include that in his Motion. Mayor Hashmi amended his Motion to include having the City Manager to renegotiate the contract to bring these dilapidated houses down and renegotiation of the landfill fees. Council Member Wright seconded the Motion. Motion carried, 6 ayes 0 nays. 8. Discuss and act on creation of citizen's advisory committee on capital improvements. Mayor Hashmi said this Council and past Councils had repeatedly discussed repair of infrastructure. He said at some point the Council would come up with an ideal on how to replace the infrastructure and a plan to fund it. Mayor Hashmi said he would like to form a committee with a member from each of the districts to be nominated by the Council or by Council Members from each district. Mayor Hashmi said he envisions the Committee working close with the city departments and the committee would make the decision as to which segments of the City should be addressed. Council Members Lancaster and Jenkins agreed with Mayor Hashmi. Council Member Wright said it was a good ideal and that they needed to be careful in selecting the committee. Council Member Drake inquired if persons interested in serving would have to make an application. Mayor Hashmi suggested that Council appoint the committee. In addition, Mayor Hashmi said at the next meeting he would like the Council to discuss options for funding of infrastructure. A Motion to form the Committee with one member being appointed by each Council Member was made by Council Member Grossnickle and seconded by Mayor Hashmi. Motion carried, 6 ayes — 0 nays. 9. Education of City Council as requested by City Council on bond issues. Mayor Hashmi stated this item was strictly for education purposes. City Manager John Godwin explained there were three different types of bonds that cities sell. He said with regard to general obligation bonds, a city pledges its full faith and credit. He said that means you usually get the lowest possible interest rating, because the City backs that bond before it backs other types of debt. Mr. Godwin said general obligation bonds require an election of the populous and requires specific language that must be approved by the Texas Attorney General in advance. With this type of bond, you cannot change your mind and spend the money on other items. You have to spend the money on what is approved by election. Mr. Godwin further explained that revenue bonds pledge a revenue specific source other than taxes. He said the most common type was water and sewer bonds and the revenue could be used for things such as water towers and water plants. Mr. Godwin said the third type of bond is a certificate of obligation, which is now extremely common. He said you could buy bond insurance raising your rate to what you need in order to get the low interest rate. The big difference with certificate of obligations and general obligation bonds is that you do not have to have an election and is