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i' applicant to come up with an adjusted median household income. If the applicant falls into the State's criteria for that, it pre - qualifies them, but there is a second step to the Worksheet. He indicated the City of Paris did not qualify under step 2. Councilman Bell asked if the Council makes the application, does that mean that they will go through with all the proposed projects? He said he would like to make a resolution that said they apply for the loan, and when they are notified of what sort of loan they will receive, then they will decide what all they want to. do. Councilman Bell said they didn't have copies of the reports from Freese and Nichols and the studies, but he felt like the sedimentation basins were the City'. s weakness. He said the studies showed the City used an average of 12.5 MGD, which means sometimes it is below that and sometimes it is above that. The report says the peak is at 26 MGD and the law says that they must be able to produce that. He also said he didn't see where the study took in to consideration the new water tank, which holds 2.5 million gallons. Councilman Bell said he would also like to see a report on the $9.5 million Certificates of Obligation. City Engineer Napier stated that each year TCEQ lowers the standards and probably at the time, the plant was doing just fine. He said the study shows the current condition the City is in. Councilman Bell asked if the City was required to do the study. Mr. Napier replied the City was not. Councilman Bell said TCEQ had the water plant rated at 32.5 MGD and this, has given them official notice that the City does not really have a 32.5 MGD. City Manager Malone explained the Council decided to do the study because they- needed to know the productive capacity of the plant, realizing that the plant capacity was not at the capacity set by the TCEQ, and also because the City is