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• <br />• <br />SECTION 2. CHARGES <br />The single two -way meter installed on the interconnect shall be read at the end of <br />each calendar quarter. The city receiving the greatest net flow shall reimburse the other <br />city in the form of water which may be used within twelve months. In the event that that <br />city does not have water capacity to provide the reimbursement in the form of water, <br />they shall instead reimburse the providing city for the cost of such water at a rate of 80% <br />of the providing city's residential water rate at the time of billing. Payments shall be <br />made on or before the 20th day of the month following the end of the quarter. <br />SECTION 3. WATER STANDARDS AND CONSTRUCTION <br />1. Each city's water supply shall provide clean, safe, potable water. Lino <br />Lakes and Centerville agree that they shall exercise reasonable care to prevent toxic or <br />harmful substances from contaminating the water supply of the other party. In the event <br />that either party fords or has reason to believe that contamination exists in its system, or <br />upon a finding that their water is not potable, that city shall notify the other immediately. <br />Upon request, each city shall supply the other city with copies of yearly analytical test <br />data from the Minnesota Department of Health. If either city allows volatile organics to <br />be discharged into the water system, such items shall be eliminated by the responsible <br />city. Failure to comply with this section shall be grounds for immediate termination of <br />the water exchange system. <br />2. All watermain construction within Centerville or Lino Lakes shall meet <br />the most recent City Engineers Association of Minnesota "Standard Utilities <br />Specifications for Watermain and Service Line Installation and Sanitary Sewer and Storm <br />Installation." Neither party shall substantially change the specifications for any parts of <br />the water system which would be interconnected between the cities without the <br />notification of the other. <br />SECTION 4. INDEMNIFICATION <br />Each party agrees to indemnify the other and save the other harmless from any <br />and all claims or demands for damages arising out of or which may result from the water <br />supply pursuant to this Agreement, and from the use, installation, maintenance, and repair <br />of its facilities as set forth in this Agreement. <br />SECTION 5. EVENT OF EMERGENCY <br />Either party shall have the absolute right to close off the interconnect in the event <br />of a water emergency where the City in its sole judgment will be unable to supply any <br />water needs of the other. <br />• SECTION 5. TERMINATION <br />In addition to the termination provisions in Section 3, either city shall have the <br />