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City Council Meeting <br />January 28, 2004 <br />Page 6 <br /> <br />the capacity to serve them and that is why the production study was done. He <br />indicated that Lamar County has already said they want more water. <br /> <br />Councilman Bell said we would have to have the production or tell them to get <br />it somewhere else. <br /> <br />City Manager Malone countered that if they do get it somewhere else, the <br />City's water supply at Pat Mayse Lake is in danger because City of Dallas may <br />reach out and grab some of the water. He explained that if the City doesn't <br />have the capacity or plans to use the water, then the water is subject to being <br />taken by another entity. <br /> <br />City Attorney Schenk explained that their rate is based on what they contract <br />to buy. If they have contracted to buy 5 MGD, they will have to participate in <br />the cost of providing that water. If they contract for more, their rate will reflect <br />the increase. He concluded there will be an additional cost for them, but the <br />City will also have to have the ability to provide the water they contract to <br />provide. <br /> <br />City Manager Malone agreed that any customers who are benefitted by any <br />improvements will be sharing in the increase of the cost to provide those <br />improvements. <br /> <br />City Councilwoman Neeley brought the Council's attention to the first part of <br />Councilman Bell's question which was if the City passes the resolution to ask <br />for this money, is the City obligated to do all these improvements and to take <br />this money? <br /> <br />City Attorney Schenk explained there are two resolutions; the one being used <br />today authorizes the application for the grant. The other resolution we often use <br />has a paragraph that states once the loan is accepted, so that means the loan <br />would have to be accepted by the council. He continued that the Council could <br />pull the plug on the process before that point if they wanted to save the State <br />and the City the expense and time of having to do all the additional loan <br /> <br /> <br />