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Page 2 3. OPTION IX: Combination of Option II white market for the 2ØØØ LUE's already allocated plus Option IV. City fronts plants, first come first serve for remaining capacity. See advantages and disadvantages in respective options. Unfortunately, every option investigated involved some disadvantage. However, given the various tradeoffs, the Staff recommends the following: The Council should consider approving Option IV. Elimination of the priority system should help to generate confidence that the City has adequate wastewater capacity for at least the next two (2) years. At this point, much of our current enthusiasm for capacity appears to be speculative and does not represent projects ready for development. In addition, this option will be less confusing, involve less bureaucracy, and encourage development. Since the City has already constructed two (2) package plants and the available capacity is not being used, it is conceivable the City could begin accepting building applications on a first come, first serve basis and charge the package plant fee of $5ØØ.ØØ per LUE (plus the other capital recovery fees). These fees would easily provide sufficient funds needed to purchase the additional package plants when needed. The City could, in effect, use the existing capacity to provide the mechanism for fronting the three (3) additional plants. We also strongly suggest that a provision be provided to allocate some portion of the remaining capacity for industrial anà single family development. This allocation would give the City the clout to encourage this type of development, but allow others to press ahead with their projects. I have attached for your study, a copy of my February 15th letter to area developers as well as copies of two (2) letters sent to me from interested parties related to the subject issue. ACG:sls