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ERMU Commission Policy - G.2a3 Repairs to Private Water Utility Line - Memorandum of Understanding MEMORANDUM OF UNDERSTANDING BETWEEN ELK RIVER MUNICIPAL UTILITIES AND TAE CITY OF ELK RIVER, MINNESOTA REGARDING PAYMENT OF PRIVATE WATER LINE CONNECTION ANDRE, PAIR COSTS This MEMORANDUM OF UNDERSTANDING hereinafter referred to as "MOU", is hereby made and entered into on this day of , 2012, by and between the City of Elk River, Minnesota, hereinafter ferred to as the "City" and Elk River Municipal Utilities, hereinafter referred to as the "Utilities". 1.0 Purpose The purpose of this MOU is to address the payment of costs for the connection and repair of private water lines within the City of Elk River, Minnesota. 2.0 Connection and Repair of Private Water Lines The City Council of the City of Elk River has adopted an ordinance which provides for payment by the city and assessment to the property owner of the costs to connect and repair private utility lines. This ordinance authorizes private property owners who are required to connect to the city water utility, or who have private water lines which have failed, to petition the City to pay the costs of connection or repair of the private water line and to assess amounts paid by the City as a special charge to the owner's property. The ordinance further provides that the City Council will establish policies regarding when and on what terms the costs to connect or repair private water lines will be eligible for payment and assessment. 3.0 Payment and Reimbursement of Elk River Municipal Utilities The City and Utilities agree that when payment of the costs to connect or repair private water lines has been approved pursuant to the City Code and the City Council policies, payment of the approved costs will be made by Utilities, the City will assess the costs paid by Utilities to the property, and the City will reimburse Utilities for the costs paid as the special assessments are paid. City and Utilities staff are directed to coordinate and adopt appropriate procedures to implement this payment and reimbursement process. 4.0 Termination of MOU This MOU may be cancelled or terminated without cause by either party by giving (30) calendar days advance written notice to the other party. Such notification shall state the effective date of termination or cancellation. Any and all amendments must be made in writing and must be agreed to and executed by the parties before becoming effective. Cancellation of this MOU shall not affect the parties rights and responsibilities regarding payments already approved and made by Utilities. 50