08.01 - Request for Proposals for Water/Sewer Rate Study

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Pequot Lakes,Minnesota Rate Analysis Proposal,February 15,2007,Page 3 of 3 Timing Assuming you are able to send me the necessary data fairly quickly,I should have proposed rates for you within two months. Investment These are your complete investments for my services,materials and travel costs,based upon the service descriptions above: • Base service,water rate analysis—$4,095 • Option 1,sewer rate analysis—$3,094 • Option 2,one on-site visit— $1,512 • Option 3,one follow-up financial examination and rate adjustment recommendation for one system for one year—$285.Thus,one examination of the water system during the year following the analysis would be$285.Examination of both systems for each of the two years following analysis(four examinations)would be$1,140. Thus,your base investment for the water rate analysis will be$4,095.If you also choose the sewer rate analysis the total would be$7,189.If you add Option 2 to these services the total would be$81701.If you choose all services proposed the total would be$9,841. Proposal Acceptance This proposal is effective through December 31,2007 for the base service,and for the time it takes to complete other options you may select,if the proposal is accepted by March 30,2007.Once I have your acceptance and data to work with I will immediately start to produce the analyses. Action item:If you accept the base proposal,and possibly options,call me to tell me but also notify me in a letter by land mail or by e-mail message to execute this agreement. Payment I will first invoice you upon your acceptance of this proposal.If you pay me within 3o days of the invoice date you may deduct five percent from the invoice amount.Otherwise,I will re-invoice you when the project is complete.You shall then pay the full amount of the invoice within 3o days of the date of the final invoice.If you request and pay for optional services but later cancel those services,I will refund those fees to you at the end of the project,less any travel expenses I may have already incurred.If I cancel any services in this proposal,you will owe me no fees for those services and I will refund any fees you have already paid for those services. Guarantee In the unlikely event you feel I am not fulfilling the commitments in this proposal,simply tell me what you feel the problem is.I will do my best to make it right by you.If I still am not able to satisfy you, notify me by mail or e-mail.I will cease the services in question at that point,you will owe me nothing for those services and I will refund any payments you may have already made for those services. rnv In Closing I am looking forward to conducting your analyses so you can get your rates and finances set on a good course and position the city well for the future. Best regards, Q��