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From:Mark Statz <br />To:Justin Williams <br />Cc:Paul Palzer; Michael Grochala; Diane Hankee; Tedd Peterson <br />Subject:RE: Watermain Interconnect Issues <br />Date:Monday, December 9, 2024 11:57:01 AM <br />Justin, <br />Per our conversation from a few minutes ago… <br />Unfortunately, we seem to be at an impasse, here. Centerville sees this issue much differently <br />than your letter lays out. In our view, the agreement is clear that if we have the capacity, we <br />should repay with water. We have plenty of capacity to provide domestic water supply to the <br />Lennar development for extended periods of time. Emergency response provisions could be <br />easily accommodated to assure fire flow. We’d be happy to discuss those logistics in detail <br />when we get to that point. <br />In the past, Centerville supplied water to Lino Lakes, through the Cedar St. interconnect, when <br />there was an issue with your tower. After the incident, we took water from you for a few <br />months to balance the books. This worked then and we believe it can work now. <br />In this instance, the reason water flowed to Centerville was a failure of Lino Lakes’ equipment <br />in the interconnect. It is difficult for us to see how we should pay for this malfunction. <br />If you are steadfast against taking our water as repayment, we are happy to explore an option <br />that would have us pay the actual cost of the water; something along the lines of (chemical <br />costs + electricity for pumping, etc.). We certainly understand your desire to recoup your real <br />costs. <br />We are also happy to engage in mediation if that is preferred. <br />At the end of our conversation, I agreed to take this issue to a workshop with our City Council <br />to see if they have a differing viewpoint from what I have laid out above. I intend to report back <br /> We will do our best to move this <br />to you after that workshop (probably at the end of January). <br />towards a resolution in a timely fashion. <br />Thanks. <br />Mark Statz, PE <br />City Administrator/Engineer <br />City of Centerville <br />1880 Main St. <br />Centerville, MN 55038 <br />O: 651-429-3232 <br />D: 651-792-7931 <br />105 <br /> <br />