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Page 2 <br /> <br />) <br />2. Duration of Agreement. The term of this Agreement is a period of twenty-five (25) years <br />from the date of execution, subject to extensions and termination as set forth herein. <br />3. Cost. The User recognizes the City’s financial commitment to the installation and <br />maintenance of the Distribution System for the purposes of stormwater reuse. The User, its <br />successors, and assigns shall be required to purchase stormwater from the City at a rate of <br />$6,688 per year (or prorated portion thereof for any portion of the year) (paid prior to <br />December 31) increased annually by 3% every year. <br />4. In the event that additional treated drinking water from the City’s municipal water <br />supply system is used in addition to the stormwater, the User shall pay the fee (stated <br />above) for stormwater use in addition to the cost of treated drinking water used from the <br />City’s municipal water supply system, billed at the City’s then current water rate during <br />that time period. <br />5. Irrigation System Requirements. Notwithstanding anything herein to the contrary, <br />the User shall be required to use the water from the Distribution System as the primary <br />water source for irrigation by it and its constituent property owners. The User may only <br />use treated drinking water from the City’s municipal water supply system for irrigation <br />purposes when the following conditions apply: <br />a. There is a system failure or deficiency with the Distribution System that causes the <br />Irrigation System to become inoperable. <br />b. There is insufficient water available from the Distribution System due to abnormal <br />weather conditions or drought. <br />c. When directed by the City. <br />In either of these cases, the User shall be required to contact the City, in writing, and <br />request the Distribution System be switched to irrigate with treated drinking water from <br />the City’s municipal water supply system during the period of inoperability. Note that <br />the City may deny the use of the Distribution System municipal water for irrigation <br />purposes at the City’s sole discretion, based on environmental, legal, supply issues or <br />other factors. <br />The User shall effectuate and enforce compliance. <br />6. Irrigation. Unless otherwise ordered by the City, the User shall be exempt from any <br />watering restrictions of the City relating to irrigation, provided that the User is using the <br />Distribution System for irrigation purposes during the period of any claimed violation <br />and is otherwise in full compliance herewith. This exemption shall not apply if the User <br />is using treated water from the City’s municipal water supply system for irrigation or if <br />required by the directives of the Minnesota Department of Natural Resources or by <br />Court order. <br />7. Operation. The City shall operate and maintain the Distribution System. The <br />calculation of the annual payments for the User includes annual dollars to pay for a <br />commensurate share of the costs to operate, maintain, and repair the Distribution system <br />over the 25 year life of this agreement. <br />8. Maintenance. The User shall allow the City such access over its property, as is- <br />reasonably needed to construct, maintain, repair and/or replace the Distribution System. <br />The User shall coordinate winterization of their Irrigation System with the City, as