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<br /> ~"1arch 20, 1985 <br /> Dear <br /> Developers working with the City of San Marcos have been aware of the <br /> difficulties facing the community in handling growth. In an effort to <br /> avoid a total disruption in the local economy, but mindful of the need <br /> to protect the San Marcos River, the City devised a plan to provide <br /> wastewater treatment capacity while a new 6.25 million gallon per day <br /> treatment plant was being constructed. The plan was successful in <br /> genera ting funds needed to construct t\<lO package plants enabling the <br /> City to provide capacity for those fronting the cost of the <br /> improvements. In an attempt to be as fair as possible, a lottery was <br /> held to select the priority list. Unfortunately, most of the projects <br /> selected for the first 2000 LUE's (Living Unit Equivalents) have not <br /> proceeded with development. At the same time, substantial interest in <br /> development in San Marcos continued to increase. Many of the parties <br /> ready for development were not on any priority list. The plan failed <br /> to provide a means of allowing projects most ready for development to <br /> proceed with construction. Most of the people involved with the <br /> situation agreed the allocation plan had to be al tered: the question <br /> was how. <br /> To address the problem, City staff held meetings with developers to <br /> solicit their ideas. While no consenus was reached, the various <br /> viewpoints were reported to City Council. Based on this information, <br /> the Council decided to set the following policy for allocation of the <br /> remaining 4,200 LUE's of capacity of the City's approved permit. <br /> The City of San Marcos will provide wastewater capacity on a first <br /> come, first serve basis. Capacity will be provided by the <br /> construction of additional package plants, which will be financed <br /> by the City. Development projects will obtain capacity at the <br /> time of the issuance of a building pennit, whereupon all capital <br /> recovery fees will be due and payable. The interim wastewater <br />