09.03 - Exhibit 3 - WSN WAC-SAC Cost Comparisons

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Page 1 of 2 Sandy Peine From: Tim Houle [Tim. M. Houle @wsn.us.com] Sent: Friday, January 25, 2013 4:58 PM To: Sandy Peine Cc: Mike Loven; Mike Rude Subject: Pequot Lakes - WAC & SAC from other cities Sandy, On the above Subject, we did some file searching (when we are City Engineers), phone calling, emailing, and webpage searching. From a combination of these (each with varying levels of current updates), following is what we found out: Wastewater Baxter = Residential SAC = $3,000 per ERC; Commercial SAC = $3,400 per ERC Brainerd = SAC = $1,900 per ERC Breezy Point = SAC = $3,250 per ERC Crosby = sewer tapping fee = $500 (not sure if this is per ERC) Deerwood = hookup fee = $400 (not sure if this is per ERC) Nisswa = SAC = $7,100 per ERC Pillager = SAC = $1,000 per ERC Pine River: Residential SAC = $1,600; Commercial and Industrial SAC = $3,400 (believe these are per ERC) Water Baxter = Residential WAC = $2,800 per ERC; Commercial WAC = $3,100 per ERC Brainerd = WAC = $1,400 per ERC Breezy Point = no water system Crosby = water tapping fee = $500 (not sure if this is per ERC) Deerwood = hookup fee = $600 (not sure if this is per ERC) Nisswa = no water system Pillager = WAC = $1,000 per ERC Pine River = fee is $250 + either $2,000 for water or sewer connection in black top; $3,000 for water and sewer connection in black top; $700 for water or sewer connection in gravel; or $1,200 for water and sewer connection in gravel (not sure if these are per ERC) Sandy, I believe Pequot Lakes' present amounts are as follows (although I am still not clear if it is per ERC or not): SAC = $8,000 WAC = $2,200 Our previous calculations had two options: use full system capacity or use remaining system capacity. The proposed amounts worked out as follows: SAC full system capacity = $3,090 per ERC SAC remaining capacity = $6,310 per ERC WAC full system capacity = $1,890 per ERC WAC remaining capacity = $2,900 per ERC 1/28/2013