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

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CITY OF CENTERVILLE REQUEST FOR COUNCIL ACTION Agenda Item # Department: Requested Council Meeting Date: January 22, 2025 Public Works WS II.3 TITLE OF ISSUE: Lino Lakes Water Repayment BACKGROUND AND SUPPLEMENTAL INFORMATION: Attached, you will find an email chain outlining a malfunction of the water main interconnect with Lino Lakes. Over a period of 2 years, about 25 million gallons of water flowed from Lino Lakes to Centerville. This represents about 10% of our annual water usage. The equipment which failed is owned and operated by Lino Lakes. Both cities failed in their obligation to read the water meter which would have alerted us to the issue earlier. The agreement governing the interconnect is clear that repayment of the water should be with water. Lino Lakes contends we do not have the capacity to do that safely. We dispute that claim. We have offered a compromise to pay for the actual cost of water production (chemicals, electricity, etc.), which has been declined by Lino Lakes. Staff is seeking direction on a amenable resolution to the dispute. COST AND SOURCE(S) OF FUNDING: $41,046.40 Water Fund (as requested by Lino Lakes) REQUESTED COUNCIL ACTION: Discussion only. For ClerkÓs Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: Aye Nay _____ Interconnect Agreement; Letter from Lino Other (specify) ____________ __________ ___ Lakes; Email with Lino Lakes staff _______________________________________________________ _____ _____ _________________________________________________________________________ Administration Department Use: Refer to: _________________________________ Consent Tabled Until: ______________________________ Regular Other: ___________________________________ 99