2017.05.01 CC Packet - Laserfiche WebLink

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D. The City and the HOA wish to enter into this Agreement, governing the use of the Distribution System and the Pump. NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: l . Use of Stormwater. The City hereby permits the HOA to utilize the stormwater from the Ponds to provide irrigation water to the Common Elements, all in accordance with the terms and conditions of this Agreement. The Pump and electrical controls will be installed and stored within the City Outlots. 2. Duration of Agreement. The term of this Agreement, a period of twenty-five (25) years from the date of execution, subject to extensions and termination as set forth herein. 3. Cost. The HOA recognizes the City's financial commitment to the installation and maintenance of the Distribution System and Pump for the purpose of stormwater reuse. The HOA, its successors, and assigns shall be required to purchase stormwater from the City at a rate of $21,360.00 per year (paid prior to December 31") increased annually by the lesser of 3% every year or the cost of using treated drinking water from the City's municipal system for irrigation purposes. In the event that the HOA uses treated drinking water from the City's municipal water supply system, the HOA shall pay the fee (stated above) for stormwater use in addition to the cost of treated drinking water used from the City's municipal water supply system, billed at the City's water rate during that time period. 4. Pumping Requirements. Notwithstanding anything herein to the contrary, the HOA shall be required to use the Distribution System and Pump to irrigate the Common Elements with stormwater. The HOA may only use treated drinking water from the City's municipal water supply system for irrigation purposes when the following conditions apply: 1) There is a deficiency with the Distribution System or Pump that causes the Irrigation System to become inoperable during the period of inoperability. 2) The pond falls four (4) feet in elevation and remains so for at least twenty-four (24) hours. In either of these cases, the HOA shall be required to contact the City, in writing, and request the Distribution System be switched to irrigate with treated drinking water from the City's municipal water supply system during the period of inoperability. Notwithstanding the foregoing paragraph 4 (2), after a period of three years from the execution of this agreement, both parties will consider and evaluate and negotiate in good faith the matter of whether the 4 foot pond -reduction limitation in section 4(2) may be increased or decreased. If the 4 foot pond -reduction limitation is decreased, it may only be decreased up to two (2) feet 5. Irrigation. The HOA shall be exempt from any watering restrictions of the City relating to irrigation, provided that the HOA is re -using stormwater via the Distribution System for irrigation purposes during the period of any claimed violation. This exemption shall not apply if the HOA is using treated water from the City's municipal water supply system for irrigation purposes.