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SECTION 2. CHARGES <br /> The single two-way meter installed on the interconnect shall be read at the end of <br /> each calendar quarter. The city receiving the greatest net flow shall reimburse the other <br /> city in the form of water which may be used within twelve months. In the event that that <br /> city does not have water capacity to provide the reimbursement in the form of water, <br /> they shall instead reimburse the providing city for the cost of such water at a rate of 80% <br /> of the providing city's residential water rate at the time of billing. Payments shall be <br /> made on or before the 20th day of the month following the end of the quarter. <br /> SECTION 3.WATER STANDARDS AND>CONSTRUCTION <br /> 1. Each city's water supply shall provide clean, safe, potable water. Lino <br /> Lakes and Centerville agree that they shall exercise reasonable care to prevent toxic or <br /> harmful substances from contaminating the water supply of the other party. In the event <br /> that either party finds or has reason to believe that contamination exists in its system, or <br /> upon a finding that their water is not potable, that city shall notify the other immediately. <br /> Upon request, each city shall supply the other city with copies of yearly analytical test <br /> data from the Minnesota Department of Health. If either city allows volatile organics to <br /> be discharged into the water system, such items shall be eliminated by the responsible <br /> city. Failure to comply with this section shall be grounds for immediate termination of <br /> the water exchange system. <br /> 2. All watermain construction within Centerville or Lino Lakes shall meet <br /> the most recent City Engineers Association of Minnesota "Standard Utilities <br /> Specifications for Watermain and Service Line Installation and Sanitary Sewer and Storm <br /> Installation." Neither party shall substantially change the specifications for any parts of <br /> the water system which would be interconnected between the cities without the <br /> notification of the other. <br /> SECTION 4. INDEMNIFICATION <br /> Each party agrees to indemnify the other and save the other harmless from any <br /> and all claims or demands for damages arising out of or which may result from the water <br /> supply pursuant to this Agreement, and from the use, installation, maintenance,and repair <br /> of its facilities as set forth in this Agreement. <br /> SECTION 5. EVENT OF EMERGENCY <br /> Either party shall have the absolute right to close off the interconnect in the event <br /> of a water emergency where the City in its sole judgment will be unable to supply any <br /> water needs of the other. <br /> SECTION 5.TERNHNATION <br /> In addition to the termination provisions in Section 3, either city shall have the <br /> 101 <br />