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Page 3 and it said - Yes we need to plan, either 5 - 10 years, or something beyond 10 years, everyone recognized the need to plan, provide quality service, and recognized that we have problems, when they weigh those three things together, this means we have improvements that need to be made. Mr. Stowe stated that they have not discussed this with anyone, but what they see based on the complaints you are getting, based on the desires that have been expressed, and based on the planning situation that has been expressed, we see that there needs to be some type of capital improvement looked at whether this year or five years from now, we do not know at this point, but are developing a frame work to look at. Mr. Stowe discussed the subsidizing of customers even though the answer was 9 no's and 1 yes, everyone responded in one of the areas we need to be sensitive to, that is the ability to pay, and we have to recognize the older or retired,their rate can not be as high as others, while we are say no, we do not want to subsidize, we are also saying we have to be sensitive in designing the rate for the people who are in these lower usage blocks. Mr. Stowe said cost is cost, but there are several ways to get to that cost, and that dictates the type of goals and what type allocation factors we might use, what type patterns we might apply, how deep we might deal into this level of customer that is in the 2,000 gallon range. Mr. Stowe said based on the committee's additional comments, they will spend time looking at this lower level to make sure that those people truly are only reflecting their cost, that they do not pick up an inordinate amount of the demand component of the plant or the demand component of the operating expenses. Mr. Stowe said this survey is only giving them directions for the rate design they will be presenting to the Committee. Mr. Stowe discussed the aspect of promoting usage, Mr. Stowe said you want the new customers to pay the cost of growth; however, the majority of the answers were that one of the goal should be to attract new growth and industry which could be a contradiction from what was said in the additional comments because if we saddle the new customers in a rate structure or with an impact figure we stand the risk to discouraging growth because they have to pay their cost on the front end, so that coupled with let's promote usage means, let's price it down and not take as much profit as we might originally, lets keep our prices as low as we possibly can, and still cover our cost, by keeping the cost low, we will sell more water and get more customers. Mr. Stowe said this is something we need to talk about. Mr. Stowe told the Committee that he has reviewed the contracts the city has for sale of water, and is going through and developing what the rates would be under those contracts. Councilman Bone requested additional information regarding the percent Campbell Soup payment that goes toward capital improvements, and what percent of the residential customers payment that goes for capital improvements. Mr. Stowe explained that they will be able to show the capital cost for each customer class and each contract as to what they are paying. They