2026-02-26 WS & CC Packet - REVISED

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Independent Technical Review To further ensure a clear and accurate understanding of the 2023 interconnect event, the City of Lino Lakes requested an independent technical review from Darin Kluck of Northwestern Power Equipment Company, a firm experienced in municipal water system operations and interconnect controls. Northwestern Power Equipment Company also supplied the mechanical valve associated with the interconnect. Based on his review of the interconnect configuration, operational conditions, and the observed direction of water flow, Mr. Kluck indicated that the most likely explanation for water entering the City of Centerville’s system without a corresponding pressure drop event on the Lino Lakes system relates to valve calibration on the Centerville side of the interconnect. Specifically, the observed flow characteristics are consistent with a condition in which the Centerville-side valve settings would allow water to move into Centerville’s distribution system under normal operating pressures. Under fully calibrated conditions, such a transfer would typically be expected to result in a detectable pressure differential or pressure event on the Lino Lakes system, which was not observed. This technical assessment supports the understanding that the water transfer did not result from a mechanical failure or operational issue within the Lino Lakes system, but rather from interconnect configuration factors associated with the Centerville-side controls. We share these findings to support a common understanding as we work together toward resolution. Operational Scale and Detectability For additional context, the volume of water transferred approximately 25 million gallons represents a significant portion of Centerville’s annual water production, roughly one fifth of its total output for that year. A reduction or absence of well production of that magnitude would reasonably be expected to be apparent through routine operational monitoring, production reporting, or well runtime data. By comparison, Lino Lakes’ total annual water production in 2023 exceeded 700 million gallons. Within a system of that size, the transfer volume would not be readily apparent during day-to-day well checks or normal system operations. This difference in scale suggests that detection would have been more feasible through Centerville’s system monitoring processes and supports the conclusion that the transfer was not the result of equipment failure or oversight within the Lino Lakes system. Application of Production Cost While Centerville has proposed reimbursement based on its estimated cost of production, Lino Lakes believes the methodology outlined in the Joint Powers Agreement remains the appropriate basis for resolution. The residential rate referenced in the JPA reflects not only treatment costs, but also infrastructure, system capacity, regulatory compliance, and long-term capital investment borne by Lino Lakes and adopted by its governing body. Applying internal cost metrics from Centerville would not align with the terms of the agreement or the shared understanding established when it was executed. 9