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Carl grown Consulting, u.c May 26, 2oo6 Brett Twardy City of Pequot Lakes City Hall 4638 County Road i1 Pequot Lakes MN 56472 Subject: User Charge Analysis Proposal Dear Mr.Twardy: I'm glad you enjoyed the rate setting strategies workshop I conducted in St. Cloud in April.Now the rubber meets the road. It's time to examine Pequot's rates. I am looking forward to the opportunity to help Pequot Lakes examine and probably reset its water and sewer rates and fees. Enclosed please find my proposal for rate analysis services.The proposal is self-explanatory but I will give you a bit more information to consider. The water and sewer rate analyses are the critical services in this proposal.If you want these services but you are not sure about the options,you may select options now or later,and decline options now or later,to suit your needs. Option i,on-site visits,are strictly up to you to choose or not to choose.I love making such presentations and they are very useful in situations where the council and public need to be persuaded to adjust rates.However,you or someone else in Pequot Lakes may well enjoy such work,as well.If you or someone else feels secure in presenting the analysis results to your decision-makers and the public,no on-site visits are needed.Call Hill City,South Dakota,listed in my references,to see how this worked for them.If you choose only one on-site visit,the most important visit is that final presentation to the council and the public.Generally,I do the presentation to the council in the afternoon or early evening and the public presentation that same evening at a regular council meeting. One last note about on-site visits.Biwabik is also considering having me analyze their rates.If I do,and if they also have me travel there to present my results, I will try to coordinate that trip with a trip to Pequot Lakes. If that all works out,I will refigure my travel expenses.If they go down,I will pass the savings on to Pequot Lakes and Biwabik. Thus,even if you want me to make an on-site visit,you may want to decline it for now. 1014 Carousel Drive,Jefferson City,Missouri 65101 www.caribrownconsulting.com caribrown ecaribrownconsuiting.com (573)619-3411