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� � P ci��ft equo Lakes = _ May 30, 2012 City of Pequot Lakes Mayor and Council Members 4638 County Road 11 Pequot Lakes, MN 56472 Dear Mayor and City Council Members: As members of the Pequot Lakes Economic Development Commission, we have been exploring creative opportunities for the City to boost economic activity in the City. As we discussed ihe various possibilities, we discovered that the City's existing fee structure related to sewer and water access fees is not fair and equitable as currently stated. The fee structure provides for all projects to pay a flat cost with no consideration of the project's proposed usage. As we understand it, a single family residence would pay the same fee as a multi-tenant apartment project, car wash, or major manufacturing operation. There seems to be an opportunity for the City of Pequot Lakes to adjust their fee structure to equivalent residential units and collect revenue that will be needed for utility infrastructure in the future. It is common that water and sewer users pay according to the demand they put on the system. We believe the City should consider hiring a professional firm to propose a fair and equitable ordinance to encourage growth and development that does not require residents to subsidize larger projects that require significant infrastructure systems. We understand that Tim Houle from WSN has provided a quote to assist the City in developing a WAC and SAC ordinance. Part of the work on the ordinance would include definitions and a table of equivalent residential units (ERUs). We recommend that the City Council consider the proposal provided by WSN. Sincerely, Ed Larsen Mark Jurchen Patrick Smith Cindy Rieck Tommy Woog � Pequot Lakes Economic Development Commission Members =�6�ti C<�t��'n� R��.�� 11 • P��.t�t��r �.�I:��, �I\ �C=��2 • (218) �C8-�2?2 • F?��: (218) �CS-�8CU • ��-��1�:pequodakcs-mn.�;o�-