2025-01-22 CC Packet - (Revised 1)

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May 21, 2024 Mark Statz City Administrator 1880 Main St. Centerville, MN 55038 Re: Water Interconnect Use Mr. Statz, As you are aware, the City of Lino Lakes supplied the City of Centerville with 25.4 million st gallons of water over the past two years through the interconnect located on 21 Avenue. The water provided to Centerville was not a result of an emergency or inability of Centerville’s water infrastructure to satisfy peak demand, as is the intended use of the interconnects between the City of Lino Lakes and Centerville. The City of Lino Lakes provided water service to the City of Centerville over an extended period of time for regular residential and commercial uses. The intended uses are outlined in the Joint Powers Agreement (JPA) and this instance does not fall in line with that use. Recent water modeling performed by the City has demonstrated that Centerville cannot satisfy the basic needs of the City of Lino Lakes, much less peak demand or emergency situations, which would cause Lino Lakes fire flows to be far too low. Centerville does not have the capacity to provide reimbursement in the form of water without leaving the residents of the City of Lino Lakes and Centerville at risk. Dan L’Allier, Deputy Director/Fire, does not support or recommend limiting available water or allowing fire flows to be reduced as modeled, withthe City of Centerville supplying water to the Watermark Development. The City of Lino Lakes proposes a repayment plan in monetary form. Section 2. Charges, of the JPA, provides for monetary reimbursement when water capacity is not available as follows: In the event that that city does not have water capacity to provide reimbursement in the form of water they shall instead reimburse the providing city for the cost of such water at a rate of 80% of the providing city’s residential water rate at the time of billing. Payments shall be made on or before the 20th day of the month following the end of the quarter. The amount to be reimbursed by the City of Centerville is $41,046.40. The City of Lino Lakes has exercised our due diligence and has entertained Centerville’s proposals, all at a cost borne by the City of Lino Lakes. The City of Lino Lakes will not incur any additional expenses related to Centerville’s efforts to return payment in the form of water. The City of Lino Lakes would be 100 600 Town Center Parkway, Lino Lakes, MN 55014 Phone: 651-982-2400 · Fax: 651-982-2499