09.03 - Exhibit 2 - WSN WAC-SAC Study

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City of Pequot Lakes WAC & SAC Assistance July 19, 2012, 8:30 a.m. Committee Meeting Pequot Lakes City Hall Issue At the June 5, 2012 City Council meeting — as a follow -up to previous discussions - the Economic Development Committee (EDC) asked the City Council to develop Water Availability Charge (WAC) and Sewer Availability Charge (SAC) Ordinances. The City Council approved this. Scone of This Work To assist in the above, we (WSN) had submitted a proposal for the following basic tasks: 1. Prepare draft WAC and SAC Ordinances. A review by the City Attorney would be over and above this work. 2. Determine the WAC and SAC amounts. This is not an all- inclusive economic exercise, but rather one rather basic method of many methods that could be used. The City would need to provide appropriate financial information. 3. We would meet with the City (staff and Council liaison) twice to review the Ordinances and determine the WAC and SAC amounts. If more than two meetings are needed, we can schedule them, but this would be over and above this work. The City Council approved moving forward with the above Draft WAC and SAC Ordinances There are two present Ordinances from Chapter 15 that the City provided us, One is Article 1. Sewer Use Regulations. The other is Article 2. Water Regulations. Attached are suggested insert language incorporating SAC and WAC sections. (This work did not include changing the existing Ordinances, but if someone wants them, we can get you a copy). Each of these inserts references a Sewer Availability Charge (SAC) Procedure Manual (present edition January 2012) from the Environmental Services division of the Metropolitan Council (located in St. Paul). This manual sets the number of Equivalent Residential Connections, or ERCs. One ERC is synonymous with one WAC or one SAC. Page 1 of 4 JA0I30B -C4 oMgv.tlakeOIWB004 &WAC &SAC AsslsmnCMNEW48.000- WAC &SAC Assutance\C=spondencz=207t9-COm 1Il meetingha dmr.&c