The city may enter into long term contracts, on a case by case basis, to sell drinking water to developers of subdivisions, existing subdivisions governed by a homeowners association, and future water districts to be formed subject to the following:
(A) The city will ensure that it will always have sufficient quantities of water to meet the needs of its citizens and those of Central City;
(B) The purchaser waives any future claims it may otherwise make against the city for any issues concerning the failure or insufficiency of any infrastructure of the city or the purchaser, and purchaser must agree to accept financial responsibility for the replacement of or addition of lines, pumps, meters, storage tanks and any other equipment and thing necessary to meet the delivery needs for the amount of water contracted for;
(C) The water will be sold for a profit by the city based on a monthly service fee and a price per 1,000 gallons with the proceeds to go to the water enterprise fund for future improvements to the system;
(D) Any agreement for sale and its rate structure shall make provisions for the effects of inflation and other market forces that may affect the value of drinking water, and that the agreement will be reviewed periodically for any other adjustments deemed necessary by the parties;
(E) Any city water restrictions will be also enforced against the purchaser and if unforeseen circumstances shall arise, such as supply problems, the city will reserve the right to serve the needs of its own customers before attempting to meet the needs of the purchaser;
(F) The city reserves the right to inspect purchaser's system and to place certain requirements thereon but it will not be making any representations or warranties as to the adequacy of the design or the quality of materials or construction or that the system is fit to meet a particular purpose;
(G) The city shall have no responsibility to a private contractor, homeowner's association, water district or any person served by their water systems if capacity flows (or the total lack thereof) should prove to be insufficient in the case of fires; and
(H) Contract for sale of drinking water to a private contractor shall carry a provision that a water district be formed within a reasonable period of time so that the city will be dealing in the long term with another governmental entity with taxing power having a perpetual life term.
(Ord. 972-06, passed 5-22-2006)