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May 30, 2012 <br /> City of Pequot Lakes <br /> Mayor and Council Members <br /> 4638 County Road 11 <br /> Pequot Lakes, MN 56472 <br /> Dear Mayor and City Council Members: <br /> As members of the Pequot Lakes Economic Development Commission, we have been <br /> exploring creative opportunities for the City to boost economic activity in the City. As we <br /> discussed the various possibilities, we discovered that the City's existing fee structure <br /> related to sewer and water access fees is not fair and equitable as currently stated. The fee <br /> structure provides for all projects to pay a flat cost with no consideration of the project's <br /> proposed usage. As we understand it, a single family residence would pay the same fee as <br /> a multi-tenant apartment project, car wash, or major manufacturing operation. <br /> There seems to be an opportunity for the City of Pequot Lakes to adjust their fee structure <br /> to equivalent residential units and collect revenue that will be needed for utility <br /> infrastructure in the future. It is common that water and sewer users pay according to the <br /> demand they put on the system. <br /> We believe the City should consider hiring a professional firm to propose a fair and <br /> equitable ordinance to encourage growth and development that does not require residents <br /> to subsidize larger projects that require significant infrastructure systems. <br /> We understand that Tim Houle from WSN has provided a quote to assist the City in <br /> developing a WAC and SAC ordinance. Part of the work on the ordinance would include <br /> definitions and a table of equivalent residential units (ERUs). We recommend that the <br /> City Council consider the proposal provided by WSN. <br /> Sincerely, <br /> Ed Larsen <br /> Mark Jurchen <br /> Patrick Smith <br /> Cindy Rieck <br /> Tommy Woog <br /> �"' Pequot Lakes Economic Development Commission Members <br />