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July 29, 2005 The Honorable Mayor and City Council City of Pequot Lakes 409 Government Drive, P.O. Box 361 Pequot Lakes, MN 56472-0361 RE: Engineering Services Proposal Government Drive Improvements Dear Mayor and Members of the Council: The City of Pequot Lakes is considering reconstructing Government Drive from East Woodman Street on the south, across County State Aid Highway (CSAH) 11/Main Street, to East Grove Street on the north. We have used East Grove Street instead of East Sibley Street for the northern terminus to match in better with the Minnesota Department of Transportation's (MnDOT's) proposed service road system that corresponds with their proposed 4-lane Trunk Highway (TH) 371 improvements. This corridor serves several different, and sometimes competing, functions for the City. Some of those functions are as follows: • Access to and parking for businesses. • Fit well with and possibly supplement the adjacent Paul Bunyan Trail, the City's Trailside Park, and the Chamber of Commerce's Trailside Building. • Operate, in some respects, as a parallel service road and possible thru route for the future 4-lane TH 371 With the above various functions this corridor provides, we have been given the understanding that the City Council, City staff, the Planning &Zoning Commission, and the Park Board have initially discussed these proposed improvements to Government Drive so the resulting layout meshes with as many of the functions for this corridor as possible. Our scope of services is based on the following layout of improvements. They are numbered for ease of reference, not in any order of rank. We have also included a suggested source of funds to pay for each set of improvements. 1. There will be no extensions or replacements of the existing sanitary sewer and watermain systems in this area, except for maybe fire hydrant and valve upgrades. Any costs would be paid for from the City Sanitary Sewer and Water"enterprise" funds.