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February 23, 2006 WIDSETH <br /> SMITH <br /> MOLTING <br /> The Honorable Mayor and City Council <br /> City of Pequot Lakes <br /> 4368 County Road 11 <br /> Pequot Lakes, MN 56472 <br /> RE: Engineering Services Proposal <br /> Utility Rate Study <br /> Dear Mayor and Members of the Council: <br /> The City of Pequot Lakes is considering a rate study for its municipal sanitary sewer and water <br /> services. As you know, rates that accurately reflect the cost of providing these services, <br /> including maintenance, depreciation, and expansion, are essential to avoiding future financial <br /> difficulties or an inadequately maintained, aged system. Nevertheless, based on the numbers <br /> ways Cities across this State and Nation charge for utilities, there is no single right way; each <br /> community has to make tough decisions. <br /> We have worked with many of our communities through the years on their rate schedules as <br /> they have undertaken improvements to their water and sanitary sewer systems. Unfortunately, <br /> while our experience doing this is great, we do not have separate, bound documents to show <br /> you as this work has typically been part of a larger project. <br /> In the interest of avoiding "excessive or extraneous submittal volume"we have assumed that <br /> the Mayor, Council, and Staff are familiar with our firm as a result of our relationship with the <br /> City in our role as its Engineer. We would, however, be very pleased to provide information <br /> under separate cover to those who are interested, or perhaps new to the Council, regarding our <br /> firm, staff, and qualifications. <br /> For this study, we propose to work together with the City's present auditor, financial/bond <br /> consultant, and staff to utilize a wealth of knowledge that presently exists on the City's finances <br /> and infrastructure. <br /> In this manner, we propose the following scope of services for completing the above work: <br /> 1. Coordination / Kickoff Meeting <br /> We would anticipate this meeting (2 hours maximum) to include City Staff involved with <br /> water and sewer operations, along with the responsible Council liaisons. At this <br /> meeting, we will discuss and confirm: <br /> • Scope <br /> • Schedule <br /> • Information needed from the City and its consultants <br /> • Report contents <br /> 7804 Industrial Park Road ■ PO Box 2720 ■ Baxter, MN 56425-2720 ■ TEL:218.829.51 17 ■ FAx: 218.829.2517 ■ WEB:www.wsn-mn.com <br /> ENGINEERING ARCHITECTURE LAND SURVEYING ENVIRONMENTAL SERVICES <br />