Iowa guide 34 iowa instruction 1942 a revised 203 form
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1 WATER USERS AGREEMENT This agreement is entered into between
hereinafter called the “WATER
SYSTEM,” and ,
member(s) of the Water System, hereinafter called “MEMBER”.WITNESSETHWhereas, the MEMBER desires to purchase water from the WATER SYSTEM and to
enter into a water users agreement as required by the Bylaws of the WATER SYSTEM.NOW THEREFORE, in consideration of the mutual covenants, promises, and agreements
herein contained, it is hereby understood and agreed by the parties hereto as follows:1. THE WATER SYSTEM shall furnish, subject to the limitation set out in its Bylaws and
(Rules and Regulations/Water Tariff) now in force or as hereafter amended or adopted,
such quantity of water as MEMBER may desire in connection with MEMBER’S
occupancy of the following described property:2. The MEMBER agrees to grant to the WATER SYSTEM, its successors andassigns, a perpetual limited easement in, over, under and upon the above-describedland, with the right to install and lay during initial construction, and thereafter use, operate,
inspect, repair, maintain, replace, and remove water pipelines at a reduced scope of fifteen
feet on each side of the water line. Together with the right to utilize adjoining lands
belonging to the MEMBER for the purpose of ingress to and egress from the above-
described lands.3. The MEMBER shall be responsible for installing and maintaining, at the MEMBER’S
expense, a service line which shall begin at the meter pit installation and extend to the
dwelling or place of use. The service line shall connect with the distribution system at a
place as designated by the WATER SYSTEM and MEMBER with the WATER SYSTEM
will determine in advance that the system has sufficient capacity to permit delivery of
water at that point.4. The MEMBER agrees to comply with and be bound by the Articles, Bylaws, (Rules and
Regulations/Water Tariff) of the WATER SYSTEM, now in force, or to be in force, or as
hereafter duly and legally supplemented, amended, or changed. The MEMBER also agrees
to pay for water at such rates, time(s), and place(s) as shall be determined by the WATER
SYSTEM, and agrees to the imposition of such penalties for noncompliance as are now set
out in the WATER SYSTEM’S Bylaws and (Rules and Regulations/Water Tariff), or
which may be hereafter adopted and imposed by the WATER SYSTEM.
25. The MEMBER agrees to pay an amount of $__________________.
$__________________ is the established membership fee, $__________________is the
hook up fee.6. The WATER SYSTEM shall purchase and install a cutoff valve and shall also include a
water meter installation at each service. The WATER SYSTEM shall have exclusive right
of ingress and egress to use the cutoff valve and water meter installation.7. The WATER SYSTEM shall determine the allocation of water to MEMBERS in the
event of a water shortage; and may shut off water to a MEMBER who allows a connection
or extension to be made to the MEMBER’S service line for the purpose of supplying water
to another user or location.8. In the event the water supply be insufficient to meet all of the needs of theMEMBERS, or in the event there is a shortage of water, the WATER SYSTEM may
prorate the water available among the various MEMBERS on such basis as is deemed equitable by the Board of Directors and may also prescribe a schedule of hours covering
use of water for garden or other purposes by MEMBERS and require thereto or prohibit
the use of water for garden or other purposes; provided that, if at any time the water supply
shall be insufficient to meet all of the need of all the MEMBERS, the WATER SYSTEM
must first satisfy all of the needs of all MEMBERS for domestic purposes before supplying
any water for livestock purposes and must satisfy all the needs of all MEMBERS for both
domestic and livestock purposes before supplying water for garden or other purposes.9. The MEMBER agrees that no other present or future source of water will be connected
to any waterlines served by the WATER SYSTEM’S waterlines and will physically
disconnect from the present water supply prior to connecting to and switching to the
WATER SYSTEM’S line and shall eliminate their present or future cross-connections in
the MEMBER’S system. Any MEMBER with a cross-connection shall be responsible for the damages associated or as a result of health and safety of the WATER SYSTEM’S
members. 10. The MEMBER shall connect the service lines to the WATER SYSTEM’S distribution
lines at the meter pit installation. Water charges to the MEMBER shall commence on the
date water service is made available to the MEMBER’S property.11.The terms of this water users agreement shall be for a period of five years from the date
water is available. The MEMBER agrees to pay a monthly water bill for a period of five
years. The (Rules and Regulations/Water Tariff) further defines who a water user may be
and the responsibilities of the MEMBER and WATER SYSTEM.12. In the event the MEMBER fails or refuses, without just cause as determined by the
Board of Directors, to pay the minimum bill or for amount of water used for a period of
five years, the MEMBER agrees to pay the WATER SYSTEM a lump sum as liquidated
damages of $__________________ based on the average project development from the
total cost per MEMBER.
3The average project development cost is determined from the total cost of the WATER
SYSTEM’S water supply, treatment, distribution and storage facilities. The liquidated
damages payment will be on the following declining schedule of payment by percentage
depending on the year the MEMBER fails to comply with the water users agreement.100% for default prior to the end of the first year. 80% for default prior to the end of the
second year. 60% for default prior to the end of the third year. 40% for default prior to the
end of the fourth year. 20% for default prior to the end of the fifth year.It is expressly understood and agreed by the parties hereto that the above listed lump sum
and percentage schedule shall be settlement for the facility expenditures made by the
WATER SYSTEM for the MEMBER’S benefit. The parties hereto have agreed upon said
lump sum and percentages in an attempt to make reasonable forecast of probable actual
loss because of the difficulty of estimating with exactness the resulting damages.13. The failure of a MEMBER to pay water charges duly imposed shall result in the
automatic imposition of the following penalties:A. Nonpayment 1 day after the due date will be subject to a penalty of 10 percent of the
delinquent account and a shutoff notice will be sent out. B. Nonpayment within 10 days from the due date will result in the water being shut off
from the MEMBER’S property.C. In the event it becomes necessary for the WATER SYSTEM to shut off the water from
a MEMBER’S property, a fee set by the corporation in its rate schedule will be charged for
a reconnection of the service.D. Nonpayment of water bill within 60 days from the due date shall at the sole option of
the Board of Directors of the WATER SYSTEM, be ample justification for declaring the
amount determined pursuant to Section 12 hereof immediately due and payable and terminate the membership in the WATER SYSTEM by the MEMBER.E. Such other legal and equitable remedies as allowed by law may be pursued by the WATER SYSTEM.IN WITNESS WHEREOF, we have executed this agreement this day of
, 20 .
President MemberATTEST:
4BY:
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