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NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 1. Use of Pumps. The City hereby grants to the HOA the right to utilize the Pumps and the Ponds to pump stormwater from the Ponds and for use in the System to provide irrigation water to the Lots, all in accordance with the terms and conditions of this Agreement. The Pumps and electrical controls will be installed and stored within the City Outlots. The City hereby grants to the HOA, its successors and assigns, a non-exclusive license to use the City Outlots and rights of way as necessary to receive the benefit of and comply with the terms and conditions of this Agreement during the period in which the System is in use. 2. Permits. The HOA shall apply for and obtain from the Minnesota Department of Natural Resources ("DNR") one or more appropriation permits, as required, prior to pumping any water from a Pond. The terms of any such permits shall be reasonably acceptable to both the City and the HOA. The HOA shall be responsible for ensuring compliance with the requirements of the DNR, including without limitation, all reporting requirements and fee payments. 3. Pumping Requirements. The HOA shall be required to meet the stormwater permit requirements for the Oneka Place residential community. Notwithstanding anything to the contrary in this Agreement, no pumping of stormwater from the Ponds shall occur when the water level in the Pond served by a Pump falls below eight hundred ninety-seven (897.0)1 feet above sea level. 4. Irrigation. The HOA and the Lot owners shall be exempt from any watering restrictions of the City relating to irrigation, provided that the HOA is re -using stormwater via the System for irrigation purposes. Such exemption shall not apply if the HOA or Lot owners are using the City's water supply for irrigation purposes. 5. Rules. The HOA may, from time to time, promulgate reasonable rules and regulations relating to the use and operation of the System ("Stormwater Re -Use Rules"). Such Stormwater Re -Use Rules may include conditions, rules and regulations related to water availability, specific and/or allowed watering times and days, and required watering to maintain the capacity of the Ponds. The HOA shall provide the City and the Lot owners a copy of any Stormwater Re -Use Rules, which will be subject to change at the discretion of the HOA. 6. Maintenance. The HOA shall be responsible for operating, maintaining, winterizing, repairing and replacing the System and the Pumps, and for the costs thereof; provided, however, that the HOA may assess the costs incurred under this Agreement to the Lot owners pursuant to the governing documents for the Oneka Place residential community. The HOA shall coordinate full -system draining and blow-out for winterization purposes. Maintenance, inspection, and testing shall adhere to operation and maintenance guidelines as set forth by the Metropolitan Council Stormwater Reuse Guide -2011 as identified on Exhibit C. It shall be the HOA's responsibility to ensure water quality is adequate for irrigation prior to 1 This water level is the water level referenced in the Clearwater Cove agreement. I'm not sure that it applies to Oneka Place. 2 520491 v1 LMW PR 175-84