In order to obtain municipal water system service to parcels that are either partially or entirely outside of the corporate city limits, the following provisions must be complied with:
   A.   There shall be an application form which shall provide that the applicant will agree to the terms and conditions required by this section as a consideration for obtaining such service. The city council shall establish an application fee, which fee shall be based upon various classes of applications as recommended by the public works director given the amount of staff review required for processing the application. The application form shall specify the legal description of the parcels for which service is being applied, the name and address of the legal owners of the parcels, and purpose of the requested service.
   B.   A completed application must be filed with the public works department.
   C.   Following the filing of a completed application form and the payment of the application fee, the public works director shall then review the circumstances presented by the application in accordance with the terms and conditions and regulations of this chapter as are relevant to the application and which shall also include a review of the effect the granting of the application will have on the ability of the municipal water system to provide an acceptable level of service to developed parcels with existing service and reasonable service capacity to be held in reserve for in city users.
   D.   The public works director shall then review the findings and recommendations with the applicant for comment.
   E.   Upon being satisfied that the application for service is complete and that all information needed to determine serviceability has been presented, the public works director shall then submit the application and a report of recommendations to the city council regarding the application. Nevertheless, if the public works director determines that the proposed developments is not serviceable, he may deny the application.
   F.   The city council, in the exercise of its discretion, may either grant or deny the application after review of the application and the report of recommendations of the public works director.
   G.   In the event the city council grants the application, it shall include as a condition that the legal owners and/or applicable occupants of the parcels shall enter into an agreement for the extension of domestic water service outside the city limits (hereinafter in this section referred to as the "agreement"), which agreement form shall provide that the legal owners of the parcels agree that the provisions of the city's ordinances, regulations and policies, and inspection fees, which appertain to the regulation, control and use of its domestic water system, including hookup and service fees as apply to terms of the "agreement", and which form shall also provide that the owners of the parcels agree to the annexation into the city of the parcels serviced; and the city council may also impose such other conditions of granting the application as are reasonable to assure the protection of the level of service to previously developed parcels within the city limits.
   H.   The water user of the parcels serviced pursuant to a granted application under this section shall be considered a user and subject to the terms and conditions of the agreement so long as the property being served remains outside of the corporate limits of the city.
   I.   Notwithstanding subsection E of this section, if the requested connection is for a residence, or a multi-family residence or commercial or industrial user development that requires only a two inch (2") or smaller service, and if water service is readily available to the affected parcel without extension of service, then, if the public works director deems it in the best interests of the city to do so, said connection may be authorized by the public works director without action by the city council. If the director declines to approve the connection, the request may, upon consent of the mayor, proceed to the city council for final decision. (2003 Code § 9-01-16)