Laserfiche WebLink
For additional context, Centerville’s 2023 retail rate was $2.08 per thousand gallons, while Lino <br />Lake’s retail rate was $2.02 per thousand gallons, indicating that our respective costs of <br />production are likely comparable. <br />The Joint Powers Agreement does not address losses resulting from equipment or mechanical <br />failures, such as malfunctioning valves. It is our understanding that the valve on the Lino Lakes <br />side was, and may continue to be, inoperable. This infrastructure is also not regularly monitored <br />or connected to your SCADA system, resulting in the unnecessary and undetected transfer of <br />water over a significant period of time. Moving into the future, it may be beneficial for both <br />Cities to increase their ability to monitor this interconnect by possible connections to a SCADA <br />system. <br />Considering the totality of these circumstances, Centerville believes it is most appropriate to <br />compensate the City of Lino Lakes for the actual cost of water lost, rather than applying the <br />residential rate as stipulated in the joint powers agreement. Accordingly, based on Centerville’s <br />productions costs, we propose payment in the vicinity of $28,000 as a fair and equitable <br />resolution to this matter. Alternatively, we look forward towards reviewing Lino Lake’s <br />production costs. <br />We appreciate your time and consideration and look forward to your response. Our goal remains <br />to resolve this issue amicably and continue our cooperative relationship. <br />Sincerely,Sincerely, <br />Athanasia Lewis, City Administrator <br />Cc: Charlie Lehn, Public Works Director <br />12 <br /> <br />