6-5-25: COOPERATIVE AGREEMENTS:

   A.   Cooperative Agreements: Should a customer or developer, at its own expense, construct an extension to the water system in a public right of way or easement according to the city's construction and design standards, with prior approval of the city, and which water line extension has been determined by the city to be able to benefit properties other than the customer's or developer's, the customer or developer constructing the extension may request that the city enter into an agreement with the customer or developer such that all or a portion of the costs of extending the water line will be reimbursed to that water developer from the service connection charges collected from those property owners who will benefit from the water line extension and who otherwise have not paid or contributed their proportionate share to the construction costs of that water line and who are required to pay the water construction equivalency fee. The city may require the customer or developer to construct an oversized line, where it is determined that a larger water line is necessary to serve other areas in the future.

   B.   Discretion Of Council: The city shall not be required to enter into any such agreement and the decision as whether or not to enter into any such agreement shall be at the sole discretion of the city council.

      1.   Duration: No reimbursement agreement shall have a duration greater than ten (10) years unless the city is a beneficiary of the agreement.

      2.   Reimbursement Limitation: No reimbursement agreement shall pay to the water user, paying for or constructing a water line extension, more than one hundred percent (100%) of their actual engineering and construction costs, it being noted that in most cases at least some of the cost would ordinarily be assessed to the water user's own property.

      3.   Interest: A reimbursement agreement may provide for interest to be paid to the customer or developer.

      4.   Administrative Fee: The city shall charge a ten percent (10%) administrative fee for handling the accounting, auditing, and payment of the reimbursement payments made to the developer or customer so extending the water line under the reimbursement agreement with the city.

      5.   Nonassignable: The reimbursement agreement shall be personal to the user entering into it and shall not be assigned without the written consent of the city, which consent will not be unreasonably withheld.

      6.   Termination: The agreement will terminate when the user has been fully reimbursed.

      7.   Binding On Successors: The agreement shall be binding on the water user and its assigns, successors, heirs, and executors and may be recorded as an encumbrance against the property of the water user.

   C.   Indemnification: The water user shall be required to indemnify and hold the city harmless from any and all liability whatsoever until the water line has been accepted for maintenance by the city; said lines, after acceptance, shall become part of the city water system and become the sole property of the city.

   D.   City May Initiate: Where the city constructs a water line extension, in conjunction with another person or entity, the city may enter into a reimbursement agreement as authorized above such that the city is reimbursed for its costs of construction, engineering, legal costs and interest. (Ord. 202, 5-26-1992)