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Dear Mayor Tayloe and Council Members: <br /> The Pine River Area Sanitary District(PRASD) is pleased to offer the City of Pequot Lakes a new contract <br /> for water and wastewater operations services. The current contract is set to expire on October 31, <br /> 2019. If a new contract is signed, the PRASD would allow the active contract to continue at the current <br /> rate until the new agreement goes into effect. <br /> Over the last five years we (PRASD) have seen our labor requirements for this contract increase <br /> significantly, however,we have not adjusted the price during this term. What started as an estimated <br /> half time contract is now more like a full time responsibility for us. There are several reasons for this. <br /> As we have worked on and familiarized ourselves with your water and wastewater facilities,we have <br /> increased the amount of preventative maintenance we perform on a weekly, monthly, and annual basis. <br /> This helps avoid costly equipment repairs and emergency situations. Changes to the City's wastewater <br /> treatment operation, increased water meter-related maintenance, round-the-clock coverage during <br /> emergencies, and additional overall involvement in planning and construction phases of facility and <br /> system upgrades have also contributed to an increase in our presence in Pequot Lakes. Due to these <br /> increases in labor and responsibility,we are proposing new contract compensation in the amount of <br /> $7052.00 per month with a term of January 1, 2020 through December 31, 2024. <br /> We feel that our increased involvement in the City's utility services and excellent relationship with City <br /> Staff has resulted in a better, smoother-running operation that benefits City residents long-term. We <br /> look forward to working with the City of Pequot Lakes for another five years and beyond. <br /> Thank you for your consideration and please feel free to contact me with any questions or concerns. <br /> Andy Schwartz <br /> Operations Manager <br /> Pine River Area Sanitary District <br /> 2567 24th Ave SW <br /> Pine River, MN 56474 <br /> (320)232-5787 <br />