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