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A. Any person or entity engaged in the distribution of water for culinary or irrigation purposes within the city shall obtain a permit therefor from the water services director. No permit shall be issued except to persons or entities engaged in the distribution of water prior to the adoption of the ordinance codified herein, or for proposed distribution that is determined by the director to not interfere with or impact the conservation and effective utilization of water resources through the city water system. Reasonable standards for making such determination shall be formulated by the water services director and adopted by the city council. Permits shall be issued after a submission of such information and data reasonably requested by the water services director and upon determination by the city council that the requested distribution is consistent with the standards adopted, the economy and best interests of the city, and the need to regulate water resources within the city. Issuance or denial of a permit shall be made by the city council within thirty (30) days after the receipt by it of all requested information.

B. Any permit issued by the city for private water distribution hereunder shall:

1. Agree to hold the city harmless from all loss sustained by the city on account of any suit, judgment, execution, claim, or demand whatsoever, resulting from negligence on the part of the private water distribution company in the construction, operations or maintenance of its infrastructure and water system. The city shall notify a franchised private water distributor within ten (10) business days after receipt of any notice of claim or demand, either by suit or otherwise, is made against the city alleging any negligence of the franchised private water distributor.

2. Agree that any franchise rights granted shall take effect and be in force from and after the passage of a resolution by the city council granting such franchise and upon filing of acceptance by the private water distributor of the franchise with the city recorder. A franchise so granted shall continue in force and effect for a term of three (3) years thereafter. In the event acceptance by the private water distributor is not filed with the city recorder within thirty (30) calendar days after passage of the resolution, and/or service has not commenced within sixty (60) calendar days after the acceptance has been filed, any franchise granted shall be deemed null and void.

3. Any private water distributor granted a franchise shall pay to the city an initial franchise fee of one thousand five hundred dollars ($1,500.00) together with an amount which represents the equivalent of two percent (2%) of the gross annual operating revenues taken in and received by the private water distributor on all retail sales of water within the city.

4. Failure of a person or entity to comply with the provisions hereof may result in the revocation of a franchise or permit and all rights thereunder upon written notice from the city and after the expiration of opportunity as provided in such notice for a hearing before the city council with regard to such violation, failure or default. (Ord. 5-2-1987, 5-21-1987; amd. Ord. 2022-07-009, 7-28-2022. Formerly 8-1-7)