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Reimbursement Amount and Method <br />Based on the volume of water transferred and the applicable residential rate in effect at <br />the time of transfer, the total amount to be reimbursed by the City of Centerville is <br />$41,046.40. <br />The City of Lino Lakes has exercised due diligence and has engaged in discussions <br />regarding Centerville’s proposed alternatives for reimbursement, including payment in <br />the form of returned water. While these options were carefully considered by Lino Lakes, <br />they have required significant staff time and resources. At this point, Lino Lakes believes <br />that continuing efforts to return water would not be practical or feasible. <br />However, in the interest of resolving this matter cooperatively, Lino Lakes is receptive to <br />a monetary reimbursement plan spread over three years to ease the financial impact. <br />Based on the total amount due, the City of Lino Lakes would accept quarterly payments <br />of$3,420.53, payable at the end of each quarter for twelve consecutive quarters, <br />commencing April 1, 2026. <br />Future Interconnect Management <br />Lino Lakes agrees that there is value in discussing improvements to monitoring and <br />operational controls for the interconnect moving forward, including potential <br />enhancements such as improved protocols or SCADA integration. We recommend that <br />these discussions occur separately from resolution of the 2023 transfer and clearly <br />documented through a mutually agreed upon amendment to the JPA if changes are <br />contemplated. <br />Summary <br />Lino Lakes maintains that reimbursement for the water transferred in late 2023 should be <br />calculated and resolved in accordance with the existing Joint Powers Agreement. We <br />remain open to continued dialogue regarding future improvements but believe the <br />reimbursement terms outlined above represent a fair, reasonable, and contractually <br />supported resolution. <br />We appreciate Centerville’s engagement on this matter and look forward to meeting with <br />you this week to come to a resolution. <br />Sincerely, <br /> <br />Karen Anderson <br />Karen Anderson, City Administrator <br />10 <br /> <br />