Fill and Sign the Water Users Agreement for Construction of Water Pipeline Iowa Form

WATER USERS AGREEMENT This agreement is entered into between                                                                                                  hereinafter called the “WATER SYSTEM,” and ,                                                                                     member(s) of the Water System, hereinafter called “MEMBER”. WITNESSETH Whereas, 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 and assigns, a perpetual limited easement in, over, under and upon the above-described land, 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. 1 5. 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 the MEMBERS, 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. 2 The 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 SYSTE M. IN WITNESS WHEREOF, we have executed this agreement this       day of                         , 20       .                                     President                                     Member ATTEST:                                     3 BY:                                     4