§ 41-244. Lease-purchase agreement.

When a developer and/or owner of a tract inside the city has paid all or a portion of the cost of materials of a water main which is so located as to render it possible for tracts of land not owned by said developer and/or owner to be served with water through said main, as provided in section 41-243(1), or when a developer and/or owner of a tract outside the city bears the entire cost of a water main, as provided in section 41-243(2), a lease-purchase agreement shall be entered into by and between the developer and/or owner and the city containing the following basic provisions:

(1)

The developer and/or owner shall lease his interest in the main to the city for a period of ten years, during which time the city will assume responsibility for maintenance of the main as a part of the water distribution system of the city; provided, however, that the lease period may be for a term of not to exceed 20 years if the developer and/or owner is a corporate entity or a trust and the water main which it has constructed extends for a distance of at least 5,280 feet.

(2)

The city will not permit any person to connect any new or additional main to said main, or make a water connection thereto, without first requiring such person to pay to the developer and/or owner his pro rata portion of the original investment of the developer and/or owner in said main, together with interest thereon from the date of completion of said main at a rate not to exceed seven percent per annum; such pro rata portion to be calculated on a square footage basis of the total area capable of being served by such main. The total area capable of being served by such main shall be agreed upon by the developer and/or owner and the city at the time of the execution of the lease-purchase agreement.

(3)

The developer and/or owner shall have no right or claim to any portion of the revenue received by the city for tie-on charges, service charges, or water sold and delivered through said lines; the reimbursement to the developer and/or owner is specifically limited to contribution under subsection (2) of this section.

(4)

At such time as the developer and/or owner has received contribution on a square footage basis, as described in subsection (2) of this section, from the developers and/or owners of all the area capable of being served by such main, or at the expiration of the lease period set forth in the lease-purchase agreement, the title of said water main extension shall vest in the city, and the developer and/or owner shall thereafter have no right, title, or interest therein.

(Code 1966, § 18-29; Code 1982, § 30-110; Ord. No. 1211, § 2, 5-22-1967)