2026-02-26 WS & CC Packet - REVISED

Home Browse Search

To:Athanasia Lewis, Centerville City Administrator From: Karen Anderson, Lino Lakes City Administrator Date: January 28, 2026 Subject: Water System Interconnect – JPA Clarification and Reimbursement Terms Dear Athanasia, Thank you for your correspondence regarding the water transfer that occurred through the 21st Avenue water system interconnect in late 2023. The City of Lino Lakes likewise values its partnership with the City of Centerville. We share your goal of ensuring this matter is resolved fairly and accurately and believe it is important to reach a resolution promptly so both cities can move forward. After reviewing your letter and the Joint Powers Agreement (JPA) executed January 28, 2019, the City of Lino Lakes would like to clarify several points to ensure our discussion remains grounded in the terms of the agreement and an accurate understanding of the circumstances. Joint Powers Agreement Reimbursement Requirement Section 2 of the JPA governs water usage and reimbursement and clearly states that water supplied through the interconnection is to be reimbursed by the receiving city at the city’s residential water rate in effect at the time of billing. The agreement does not provide an alternative reimbursement methodology based on cost of production, nor does it distinguish between anticipated and unanticipated water transfers. As written and executed, the residential rate is the agreed-upon basis for reimbursement unless both cities formally amend the agreement. Cause of the Water Transfer We also want to clarify the characterization of the event. The water transfer was not the result of equipment or mechanical failure on the Lino Lakes system. Rather, it resulted from a failure to properly calibrate and manage Centerville’s system in relation to the interconnect. The circumstances surrounding this event do not support assigning responsibility to Lino Lakes. 8