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M Commissioner Bird wished to know where this expansion takes us on the North Beach, and Director Pinto advised that this is treatment plant capacity, not lines; this will take that plant hopefully to what is.committed, and we think we have committed to everything that is needed up there. The plant serves south to Bay Tree, and then it is planned to service the entire North Barrier Island. Commissioner Bird understood that we are very aggressive in Utilities, which is fine, but he felt it is a lot more painful to pay these charges to reserve capacity when you have a vacant piece of land you have owned for many years. It is really easier to pay the charges at the time you are ready to develop than to front the cash on a raw piece of land. Commissioner Scurlock felt what it all comes down to is the value of the time and value of the money. It is not a question of whether someone will get service; it is a question of does he want to wait until we get the capacity. It is possible he may have to develop his property 12 months or so later because the money was more important to him at the time he could have reserved the capacity. Director Pinto further pointed out that when the line is actually put in, that cost is assessed for. This charge is to reserve capacity, and if you don't reserve it, you are telling us that you are not ready for it or you don't really care when it is available. Commissioner Scurlock stressed that the minute that line goes in front of someone's property, it increases the value of his property significantly whether he has reserved capacity or not. He also noted that one of the reasons we had a request to hurry up with these facilities on the North Island was because of the COBRA Act and the need to vest this land as developed. Director Pinto reported that we are at capacity in both of our treatment plants, the South County plant and Beach plant. We " 45 BOOK 8 PAGE 17 i