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