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LAKE ELMO CITY COUNCIL MINUTES AUGUST 7, 1990 PAGE 5 <br />B. SW-1 Water Supply Conract <br />The Council reviewed the agreement for water service between the City <br />of Oakdale and City of Lake Elmo. <br />There was discussion on the following pages: <br />Page 1, 3rd Paragraph: Councilmen Graves and Williams suggested <br />adding wording: WHEREAS, the purpose of this Agreement is to <br />implement the terms of the June 26, 1990, Agreement, specifically <br />paragraphs II.E. and III.C. and is subordinate to that Agreement. <br />Page 1, 1. TERM OF CONTRACT: City Attorney Knaak explained, <br />originally, the term was 15 years and 30 years was strictly a <br />compromise. <br />Page 2, 3D. WATER SERVICE: " ...regulations and requirements of <br />Oakdale now in force or that may hereafter be adopted, in connection <br />with the use of water in Lake Elmo." The Council asked if these <br />requirements should be written out specifically; therefore, they would <br />not become burdensome in the future. Attorney Knaak felt the last <br />sentence clarified this. "This section, however, shall be limited <br />only to what use the water could be put to and in no way gives Oakdale <br />the right to dictate rules of operation of lake Elmo water system." <br />Page 3, 3E. WATER SERVICE: "If the meter reading is within 5% of the <br />actual water used..." The Council asked if there should be a more <br />accurate meter reading. Larry Bohrer found this 5% to be acceptable. <br />He stated the water used for flushing or firefighting would not be <br />monitored. <br />Page 4. 6B. RATES AND CHARGES: The meter will be read on or before the <br />5th day of each month, the bill will be mailed on or before the loth <br />day of each month with payments due on or before the 30th day of each <br />month. The Council questioned how this would affect our City because <br />we now send out quarterly water bills. Bohrer explained the Fund <br />starts out with a balance of $25,000. Oakdale considers us their, <br />single largest customer and Oakdale bills all customers monthly. <br />Page 5, 9. LIABILITY OF OAKDALE: Attorney Knaak noted the agreement <br />of June 26th does allocate those responsibilities and found this <br />acceptable. <br />Page 5, 10. INDEMNIFICATION: Councilman Williams suggested reciprocal <br />indemnification. Knaak preferred it noted there, but finds this <br />statement acceptable and it does not expose the City. <br />M/S/P Graves/Williams - to accept the additional wording to Page 1, <br />Paragraph 3 "and is subordinate to that agreement. (Motion carried <br />3-1: Hunt: He felt there was indemnificaton for Lake Elmo in the <br />underlying agreement and it was clearly stated that this agreement is <br />subordinate to the June 26, 1990 agreement.) <br />M/S/P Graves/Williams - to approve the Agreement for Water Service <br />between the City of Oakdale and City of Lake Elmo; including the <br />amendment. to Page 1 as stated in above motion. (Motion carried 4-0). <br />