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October 13, 2021 Gretchen Artig-Swomley, Mayor City of Gem Lake 4200 Otter Lake Road Gem Lake, MN 55110 Dear Mayor Artig-Swomley, RE: Municipal, Water Supply Feasibility Study Update Gem Lake, MN Short Elliott Hendrickson Inc. (SEHI) is pleased to provide this proposal to the City of Gem Lake (the City) for consulting services to update the Municipal Water Supply Feasibility Study. This effort will evaluate the feasibility and options for building. a municipal water supply to provide the residents and businesses of the City with safe and reliable drinking water. The proposed efforts included. in this proposal are based upon our current understanding of the past efforts studying the potential for a municipal water supply as well as the current needs: and existing water supply infrastructure. ack, t°ounU-6 A previous municipal water supply feasibility study was developed by SEH to evaluate alternatives for supplying potable water to Gem Lake residents and businesses and was provided to the City on September 8, 2006. The scenarios explored in the study included the potential for constructing an independent water system. for Gem Lake as well as water system interconnections to the neighboring: communities of White Bear Lake, White Bear Township, and Vadnais Heights. Based on evaluation of estimated costs, consItructabllity, water quality, and hydraulic function, SEH concluded that connection to any of the neighboring water distribution systems was possible from a constructability point of view, however the costs for each connection varied. Since the development of the 2006 study, Gem Lake has constructed. an interconnection with the City of Vadnals Heights that serves the Villas of Gem Lake and an interconnection with the City of White Bear Lake that serves the business district. The majority of residents remain on private.wells. Recently the Minnesota Pollution Control Agency (MPCA) and Minnesota Department of Health (MDH) sampled for 1,4-Dioxane, a likely hurnan carcinogen; in private wells in Gem Lake and the White Bear area. .Results of the sampling showed levels above the MDH health -based guidance value for 1,4-dioxane in some of the private wells in Gem Lake. With these results the City is again exploring the feasibility of a municipal water supply to supply safe and reliable drinking water to its residents and businesses. Scope of Work The following describes our scope of services for this project based on what we know today, and the anticipated tasks therein, which are also described in our proposed project schedule. To develop a full understanding of the needs of the City and potential options far developing a municipal water supply, SEH will review existing materials and data. Specifically, items will include: Review of White Bear Lake and Vadnais Heights interconnections, This will include the interconnection agreements, water rates, Infrastructure, and hydraulics. Review of water quality of the neighboring communities and private wells. • Review of existing and future demands .and fire flows of Gem Lake water users. This will include billing data for customers on municipal water systems and land use and.demographic data.