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costs for consultant and staff time related to the Project, and the Trunk Sewer fees and Sewer <br />Service availability charges for 3 9 single family residential Sanitary Sewer Services, as provided <br />in the City fee schedule. All costs associated with the Project's development shall become <br />assessable even it is determined the Project will not be built based on economic factors as directed <br />by the HOA or its petitioners. (ie: The final bids are substantially higher than estimates and the <br />HOA wants to rebuild their private system on their own). <br />3. Ownership, repair, maintenance and replacement of City -Owned Infrastructure. <br />A. City will own all infrastructure installed with the Project. <br />B. City will be responsible for the repair, maintenance and replacement of the <br />City -Owned Infrastructure. The cost to repair, maintain and/or replace the City -Owned <br />Infrastructure shall be borne by the City according to then -existing City policies applicable <br />to all other properties served by the City's Sanitary Sewer System. <br />4. Ownership, repair, maintenance and replacement of HOA-owned infrastructure. <br />A. The existing SSTS and all affiliated equipment and infrastructure is <br />currently owned by Natural Systems Utilities, LLC, a Delaware limited liability company <br />("NSU"). Pursuant to that certain Letter of Intent dated effective October 4, 2024, the HOA <br />has tentatively agreed to purchase the SSTS from NSU pursuant to an Asset Purchase and <br />Sale Agreement with NSU based on the terms of the Letter of Intent. <br />B. Through the HOA's purchase from NSU [and subsequent conveyance <br />to the City], the City shall take ownership of all existing SSTS and the piped collection system <br />on Outlot A and under the streets of the Subdivision. <br />C. After the Project, the HOA will not have control/ownership of any parts <br />of the system as public ownership will include all mainline piping as consistent with City <br />standards. Each lot will own their service lines to the point of their single connection in the <br />street. <br />D. By executing this Agreement, the HOA authorizes the City to install or <br />replace any portion of the HOA-Owned Infrastructure which the HOA has failed to install as <br />required by this Agreement and the Project specifications, and to add the costs of such <br />additional work to the Project costs for assessment to each lot in the Subdivision. <br />E. By executing this Agreement, the HOA authorizes the City to enter on <br />the Subdivision to repair or replace any component of the HOA-Owned Infrastructure which <br />the HOA has failed to repair or replace after notice from City; and to assess the costs of such <br />repair or replacement to the HOA pursuant to this agreement or Minnesota Stat. § 429.101. <br />5. Discharge to City Sanitary Sewer System. This Agreement authorizes the HOA <br />to connect 39 single family residential lots to the City Sanitary Sewer System. Neither the <br />HOA, nor any individual lot within the Subdivision, shall discharge any effluent to the system <br />other than wastewater from single family residential uses. <br />2 <br />Page 202 of 273 <br />