The governing body of a municipality that provides residential street service may make an agreement with a private community that qualifies under paragraph (2) of this subsection concerning: the provision of residential street service to the private community by the municipality; or instead of providing residential street service, the reimbursement to the private community of an amount not to exceed the cost that the municipality would incur to provide residential street service. The governing body of a municipality may make an agreement under this section with a private community that: lies wholly or partly in the municipality; and has at least one–quarter mile of roadway. An agreement entered into under this section may require the private community to: pay any insurance rider that the municipality requires to enable vehicles owned or contracted by the municipality to operate on a roadway in the private community; and regarding a roadway in the private community that is to be used to provide residential street service: allow the roadway to be dedicated to public use; and unless maintenance of the roadway is provided by the municipality, maintain the roadway at a level of service satisfactory to the municipality.