Water and Sanitary Service Agreement - Utility Extension and Title Sheet for Audubon Woods Section 2

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7. Term Except as otherwise provided herein, the term of this Agreement shall commence as of the Effective Date and shall expire upon completion of construction and successful dedication of the Water main system improvements to the City. 8. System Development Charges Water For purposes of this section "ERU" shall be defined as an equivalent residential unit which means a single family residence. For purposes of customers that are not single family residences, one (1) ERU shall equal estimated water flows of three hundred ten (310) gallons per day. No customer will be less than one (1) ERU. There will be no partial ERU's. The City shall round down to the closest applicable ERU calculation at all times. For every new connection to the South Bend Municipal Water Works, a system development charge of five hundred dollars ($500.00) shall be collected per ERU and additional portion thereof to be connected. All charges shall be billed by the City at the time the application for service is filed. For customers with greater than twenty (20) ERUs, the ERU shall be adjusted based upon the Peaking Factor as computed herein. The Peaking Factor shall be calculated by dividing the Peak Daily Flow by the Average Daily Flow, both as reported in the water capacity certification. In no event will a Peaking Factor less than 2.0 be used for purposes of the adjustment described in this subsection. The Peaking Factor divided by 4.0 (the Peaking Factor for residential connections) will be multiplied by the number of ERUs for purposes of computing the system development charge owed by the customer. The City may execute a