TABLE OF CONTENTS

Section 1--General Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.1 Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.2 Effectiveness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.3 Amendment--Notice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.4 Titles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.5 Severability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.6 Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Section 2--Licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2.1 Conditions of Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2.2 No Relinquishment of Title. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2.3 Licenses Run with the Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2.4 Use on Licensed Premises Only. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2.5 District Control. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2.6 Payment of Tap Fee Required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2.7 Types of Licenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2.8 Application for License. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2.9 Temporary Licenses: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.9A Commencement of Monthly Charges.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.10 Suspension. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2.11 Notice of Proposed Suspension. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2.12 Hearings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2.13 Time of Suspension. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2.14 Reinstatement of License. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2.15 Revocation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2.16 Notice of Proposed Revocation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2.17 Resumption of Service and Reconnection. . . . . . . . . . . . . . . . . . . . . . . . 10

2.18 Reconveyance of License. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Section 3--Rates and Billing Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

3.1 Payment Responsibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

3.2 Metered Rate Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

3.3 Flat Rate and Commercial/Multi-Family Rate Service. . . . . . . . . . . . . . 11

3.4 Unmetered Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

3.5 Billing Frequency. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

3.6 Delinquencies, Turn Offs and Disconnections. . . . . . . . . . . . . . . . . . . . . 11

3.6.1 Deposit may be Required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

3.7 Liens. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

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3.8 Account Adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

3.9 Meter Adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

3.10 Special Service Fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

3.11 Special Miscellaneous Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Section 4--Mains and Supporting Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

4.1 Ownership and Installation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

4.2 Extensions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

4.3 Service Outside the District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Section 5--Service Lines and Appurtenances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

5.1 Ownership and Maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

5.2 License. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

5.3 Connections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

5.4 Water Service Line. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

5.5 Remote-Readout Meter Installation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

5.6 Thawing and Repair of Service Line and Multi-Service Lines. . . . . . . . 15

5.7 Water Pressure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

5.8 Water Lift Pump Installation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

5.9 Valve Box and Manhole Grades. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

5.10 Inspection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Section 6--Meters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

6.1 Ownership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

6.2 Size and Type. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

6.3 Location. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

6.4 Maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Section 7--Sanitary Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

7.1 Water Quality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

7.2 Cross Connection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

7.3 Dual Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

7.4 Backflow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

7.5 Valves and Faucets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Section 8--Water Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

8.1 Beneficial Use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

8.2 Unauthorized Use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

8.3 Seals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

8.4 Outside Use of Water. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

8.5 Water Shortage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

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8.6 Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

8.7 Enforcement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Section 9--Fire Protection Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

9.1 Fire Hydrants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

9.2 Ownership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

9.3 Unauthorized Use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Section 10--Records Open to the Public - Amendments . . . . . . . . . . . . . . . . . . . . . . . . 21

10.1 Enactment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

10.2 Official Custodian. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

10.3 Inspection of District Public Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

10.4 Request for Inspection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

10.5 Amendments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

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Section 1--General Rules

1.1 Authority. The following Rules and Regulations are hereby adopted by the

Board of Directors of the Indian Hills Water District. These Rules and Regulations are

deemed necessary for the control, management and supervision of the business affairs of

the Indian Hills Water District, and for the health and safety and general welfare of the

inhabitants of the Indian Hills Water District.

1.2 Effectiveness. These Rules and Regulations are revised and readopted

effective on and after August 17, 1995 and supercede all former Rules and Regulations

which are or may be in conflict with these Rules and Regulations.

1.3 Amendment--Notice. These Rules and Regulations may be altered, amended or

added to from time to time, and such alterations, additions or amendments shall be

binding and of full force and effect as of the date they are adopted by the Board of

Directors.

1.4 Titles. Titles used in these Rules and Regulations are for convenience only and

shall not be considered in interpreting their scope or meaning.

1.5 Severability. If any provision of these Rules and Regulations or the application

thereof to any person or circumstance is held invalid, such invalidity shall not affect any

other provision or application, and to this end, the various provisions of these Rules and

Regulations are declared to be severable.

1.6 Definitions. As used in these Rules and Regulations, unless the context shall

otherwise require, the words defined in this paragraph shall have the meanings herein

ascribed:

a. District: The Indian Hills Water District, both as an enterprise fund

corporation and as the legal boundaries of the District.

b. Board: The Board of Directors of the Indian Hills Water District, as

established by Colorado statute, which consists of five members.

c. Inspector: The person or persons appointed by the Board and

charged with the enforcement of the Rules and Regulations.

d. Water System: The facilities and system owned or controlled by the

District which are used to pump and distribute water.

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e. Water Main or Distribution Main: Those pipes owned by the District

and used for distribution of water along public roads or appropriate rights-of-way.

f. Service Line: A service line is all the pipe, fittings and

appurtenances from the main or multi-service line to the dwelling. A service line

is owned by the licensee.

g. Multi-Service Line: A service line jointly owned and used by more

than one licensee from which individual service lines emanate.

h. Tap: A connection made to a water main line for the purpose of

supplying water to a service line.

i. License: The right to water service granted by a Water Service

Agreement approved by the Board for the purposes specified in the agreement.

j. Licensed Premises: The real property, as legally described in the

application for a license and in the water service agreement entered into between

the licensee and the District, to which water service is provided.

k. Licensee: Any person, association, corporation or other entity

having ownership of the licensed premises.

l. Water Availability: The determination made by the Board that there

is sufficient physical water and the legal right to use such water for the purposes of

a licensee.

m. Water Service: Supply of water to licensed premises following

connection of the licensee's service line to a main line and installation of a meter

for the licensed premises.

n. Standby Water Service: A conditional license granting water service

to licensees owning premises more than 300 feet from a main line provided certain

conditions set forth in a standby service agreement are met.

n-1. Summer Service: A license granting water service to a property

commencing approximately May 1 and ending approximately October 31 of each year.

Only certain properties are eligible to receive summer service. For additional

requirements see section 2.7, below.

o. Tap Application: An application for a license presented to the

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Board.

p. Tap Fee: The fee charged by the District to a licensee for the grant

of a license. The tap fee is set by the Board and may be based on any system

development cost in order to serve the licensee.

q. Water Usage Rate: The charges made by the District for the use of

water, which charges may be based on any combination of metered usage,

estimated usage and minimum usage.

r. Water Key: A temporary right to withdraw water from the water

system. The water key is generally granted for the period from May to October for

the summer season and November to April for the winter season and the quantity

of water to be withdrawn is equivalent to the use of the average single family

residence, that is up to 6,000 gallons per month. The water is to be withdrawn

from "The Monument" at a location designated by the District.

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Section 2--Licenses

2.1 Conditions of Service. The right to use water of the District shall only exist if a

license has been granted the user. No connection may be made to a water main until the

Board has issued a license. No license may be issued or granted to attach to premises nor

may water of the district be used upon premises which are not within the boundaries of

the district.

2.2 No Relinquishment of Title. Neither the issuance of a license nor the use of

water thereunder shall constitute or be deemed a relinquishment of title to any water or

water right by the District, and no act, circumstance or condition of use or service shall be

deemed to constitute a conveyance or operate to create any vested or proprietary right in a

licensee whatsoever.

2.3 Licenses Run with the Land. Subject to exceptions described in these rules and

regulations, licenses are appurtenant to licensed premises only and are not separately

transferable. They are not affected by changes in the ownership of the licensed premises.

Exceptions include but are not limited to revocations under 2.15 hereof, and

reconveyances under 2.18 hereof.

2.4 Use on Licensed Premises Only. A licensee shall have the right to use water

only on the licensed premises and for the purposes specified in the license, subject to the

modification, suspension or revocation of such license as herein provided. The lawful

use of water on a licensed premises used for residential purposes shall be restricted to

service to no more than two dwelling units and to no more than one residential structure

upon any one licensed premises, except that all existing uses of water on licensed

premises which are in conformity and compliance with the requirements of these Rules

and Regulations as they existed on October 15, 1993 may be continued, even though not

in compliance with the restriction on uses expressed herein. As used in these Rules and

Regulations, the term “residential structure” shall refer to a building which contains at

least one and no more than two dwelling units. The term dwelling unit shall mean a

discrete space in a residential structure which contains facilities to which water is

supplied or is intended to be supplied and which is designed for occupancy by not more

than one family. The meaning of the term “family” shall be as stated in the Zoning

Resolution of Jefferson County, as it exists on the date of the adoption of the within

Regulation, and as it may be amended from time to time. The intent of the within

regulation is to prevent the proliferation upon any one licensed premises of multiple

residential structures.

2.5 District Control. Notwithstanding the issuance of a license, the District

reserves full power and authority to determine all matters related to the control and use of

water from the water system.

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2.6 Payment of Tap Fee Required. No license for water service shall be issued by

the District without prior payment of an appropriate tap fee.

2.7 Types of Licenses. Except for fire protection service, District licenses are

issued for metered rate service, metered commercial service, summer service, and in

special instances, for flat rate service. The District retains the right to modify such rates

pursuant to its Rules and Regulations. Summer service is available only to those premises

that have service lines that are not protected from freezing or have residences that have a

plumbing system that cannot be protected from freezing. Summer service licensees must

contact the District each year to have water service turned on for that six month season.

Activation of service each year will not be automatic. Customers contracting for summer

service will be charged, as a minimum, a total fee equal to six times the minimum

monthly service charge to regular metered rate customers. No reduction in the minimum

charge shall be allowed for any reason, including non-availability of water due to

inclement weather. The minimum charge will be billed to the summer service licensee in

six monthly installments, beginning with the May billing. Monthly meter readings will be

required of summer service licensees. Usage by summer service licensees in excess of

the minimum 3000 gallons per month will be billed at the District's regular monthly rate.

Service will not be made available to summer service licensees until charges attributable

to the previous year's service and usage have been paid in full. Summer service licensees

may convert to year-round service at any time, provided the applicable premises are

appropriately protected from freezing. A regular licensee receiving water on a year-round

basis shall not be convertable to summer service.

2.8 Application for License. A license is issued only under the following

application procedure:

The applicant shall submit a signed request for a tap and water service. The applicant

must be the title owner of the premises to be served by the license, and the district will

consider that the application is submitted by all titled owners of the premises whether said

application is signed by all titled owners. The request shall be on a form provided by the

district and contain the following information and be accompanied by a $100.00

Application fee:

a. A description of the premises to be served under the license by reference

to metes and bounds description or by designation of lot and block. Improved property

shall also be designated by the street address of the property.

b. A statement of the purpose for which the water is to be used.

c. An acknowledgment and agreement by the licensee that use under the

license must be as limited and defined by applicable law and Rules and Regulations of the

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District.

If the license application is approved by the district, the application fee will be applied

toward applicant's line inspection charges. If a license application is not approved, the

application fee will be refunded to the applicant.

Licenses approved for issuance by the district must be paid for in full within 90

days of approval or the approval shall automatically terminate. In the case of the

expiration of approval without payment in full, the $100.00 Application fee will not be

refunded to the applicant.

License applications will be accepted for consideration during month long application

periods beginning January 1 of each year, and continuing as necessary in each month

thereafter. All applications received by the district during each period will be considered

at the meeting of the board held in the month following the close of the application

period. Applications will continue to be accepted and considered until the annual quota

of licenses has been issued by the district. The number of taps to be issued in any one

year shall be determined at the sole discretion of the Board of Directors. The license(s)

issued in any one year shall be issued in accordance with the following criteria and in the

following order of priority:

a. Applicants experiencing hardship conditions on improved premises;

b. Applicants not experiencing hardship conditions on improved premises;

c. Applicants experiencing hardship conditions on unimproved premises;

d. Applicants not experiencing hardship conditions on unimproved

premises.”

“Improved premises” means property with an inhabitable structure for which a

certificate of occupancy has been issued by the appropriate authority.

“Hardship conditions” refer to circumstances in which, because of the inadequacy or

unpotability of the water supply available to a property, the owner or occupants of such

property are unable to meet or satisfy their daily living requirements. Hardship conditions

of applicants will be examined and evaluated on an application by application basis.

Hardship conditions can be related to the quality and/or quantity of water available for

use on the property. Notwithstanding the above however, an applicant whose average

monthly water production available to his/her property is 3000 gallons or more shall be

presumed by the Board not to be experiencing hardship conditions related to quantity.

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If the hardship is claimed on the basis of quality of water, the application must be

accompanied by a report of testing performed on the water supply for the property.

Testing will be performed only by a laboratory approved by the district. The cost of the

testing will be paid for by the applicant. Efforts by the applicant to improve the quality of

the water should be described in detail in the application and receipts of expenditures in

those efforts should be appended.

If the hardship is claimed on the basis of quantity of water, the applicant shall have

had a well recovery test or other appropriate procedure performed by a well-testing firm

approved by the district within six months prior to the date of application, and report of

such tests or procedures must be submitted with the application. Efforts by the applicant

to improve the production of his/her well or otherwise increase the quantity of water to

the property shall be described in detail in the application and receipts of expenditures in

those efforts should be appended.

License applications not considered in any one year shall be returned, along with the

accompanying fee, upon the district's issuance of the maximum number of licenses for

each year. License applications not considered must be submitted in the following year to

be considered.

2.9 Temporary Licenses: A temporary license may be issued by the District for

special and for limited periods of time. In order to secure water service under a

temporary license, the applicant shall:

a. Comply with all conditions imposed by the District and to secure

payment to the District of all sums due it on account of the issuance of the

temporary license.

b. Specify the period of time during which he proposes to use water under

the temporary license.

c. Deposit with the District a sum deemed adequate by the Board to secure

payments likely to become due by reason of the exercise of the temporary license and

to cover the cost of disconnecting the temporary service line after the expiration of the

license.

2.9A Commencement of Monthly Charges. Upon the grant of a license, the licensee

must commence paying the minimum monthly water rate charged by the District. There

is no deadline within which the licensee must make a service connection.

2.10 Suspension. Any license to use water may be suspended by the District for the

following reasons. (Suspension of the license includes termination of water service but

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does not include the forfeiture of tap. For forfeiture of tap, see Revocation below.):

a. Failure to pay proper charges when due.

b. Use of water for purposes not authorized by the license without prior notice

to and consent from the District.

c. Use of water for any other property not licensed by the District.

d. Maintaining cross connections within the piping systems of any premises or

otherwise disturbing any service line, curb valve, water meter, or any other appliance

of the District and for tampering with the water supply of the District.

e. Willful waste of water or neglect in protecting service line appurtenances

from freezing and other physical damage or willful failure to maintain fixtures in good

working order.

f. Failure to comply with any of the Rules and Regulations of the District.

2.11 Notice of Proposed Suspension. When the District determines there exists

reasonable cause for suspension, the District will give notice to the licensee and occupant

in writing of such determination and demand that the violation or other cause for

suspension be halted prior to the effective date of the proposed suspension as set forth in

such notice.

a. Notification of proposed suspension will include:

1. The effective date of the proposed suspension, which date shall

be no sooner than ten days following the date of the notification.

2. The reason(s) for suspension.

3. Advice to the licensee that he is entitled to a hearing with at least

three members of the Board to determine whether the Board's

determination should be reconsidered, and, if such cause exists, whether

suspension should be undertaken in the licensee's case as previously

ordered by the Board, with due consideration for such extenuating

circumstances as may exist.

4. The address to which licensee's written request for such hearing

may be sent.

b. The notice provided for immediately above shall be given in the

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following manner:

1. The notice shall be sent by regular mail or be hand delivered to

the premises, addressed to the licensee and, if known, to the

occupant of the licensed premises.

2.12 Hearings. Hearings on proposed suspension of license are held only when

requested by the licensee or occupant. In the event the payment is not received or the

violation is not halted as demanded in the notice and no hearing is requested within the

time period and in the manner specified, service will be suspended immediately upon

expiration of said period. If a hearing is requested, service will not be suspended, if at all,

until a final decision is rendered.

2.13 Time of Suspension. If, as a result of said hearing, it is determined that

reasonable cause exists for suspension and said suspensions should be undertaken in the

particular case, water service shall be discontinued no sooner than ten days after the date

of mailing said decision. Employees of the District are hereby authorized to effectuate

such suspension by turning off the water supply to any premises where it has been

determined by the Board that suspension should be undertaken in that particular case.

2.14 Reinstatement of License. A suspended license may not be reinstated, and

water service may not be resumed at a premises previously supplied under such a license,

unless and until payment as set forth in the Notice of Proposed Suspension has been

made, or, if suspension is for violation of Rules and Regulations governing suspension,

until such time as corrective action is taken. The cost of suspension and reinstatement,

and any special charges, such as interest on the delinquent account, collection fees, lien

fee, and any reasonable attorney's fees shall be assumed and paid for by the licensee or

occupant, prior to reinstatement.

2.15 Revocation. Any license may be revoked by the District when there have been

repeated or willful violations of the water service agreement or these rules and

regulations. The District shall not be obligated to refund any tap fee forfeited as a result

of the revocation of the license. As a part of the revocation, the District shall declare that

the tap is forfeited and record with the Clerk and Recorder of the county, a notice of such

forfeiture. When a license is revoked, water service to the licensed premises (if such is

being provided) shall be terminated.

2.16 Notice of Proposed Revocation. When the District determines that there exists

reasonable cause for revocation of the license, the District shall give notice to the licensee

in writing of such determination and will demand that the violation or other cause for

revocation be halted prior to the effective date of the proposed revocation as set forth in

such notice. Such notice shall contain the information and advisements required for a

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notice of suspension, except that the notice shall be sent by certified mail both to the

occupant, and to the licensee or owner of record of the licensed premises.

2.17 Resumption of Service and Reconnection. Any premises, whose license has

been revoked, shall not thereafter be served with water from the water system unless and

until a new license for service at such premises shall have been issued. A new license

shall be issued only upon a payment of a new tap fee and upon compliance by the

applicant with all conditions required by the Board and after payment of any and all fees

and charges incurred by the District related to the detection and verification of the

violation and enforcement of the "Rules and Regulations" against the licensee and the

premises. Such fees and charges may include, but are not limited to the following:

a. A charge for the value of the water improperly used by the licensee.

The estimate of the Board as to the value shall be final and conclusive for all

purposes.

b. A charge for the cost to the District of the services of its employees,

attorneys, accountants and engineers related to the detection and verification of the

violation and enforcement of the Rules and Regulations against the licensee.

c. Reimbursement of all additional expenses of the District related to the

violation which are caused by the licensee.

The Board may, upon receipt of a written request for withdrawal of the forfeiture of tap,

and upon good cause shown, waive the requirement for the payment of a new tap fee.

2.18 Reconveyance of License. Under such circumstances and upon such terms as

the Board of Directors may determine to be appropriate, the District may agree to a

reconveyance of a license back to the District from a customer. Upon such reconveyance,

such license may become available for re-issuance to the same or another premises. The

District shall never be obligated to accept a reconveyance of a license.

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Section 3--Rates and Billing Procedure

3.1 Payment Responsibility. While bills for water service will normally be sent to

the last person of record listed as owning or occupying the licensed premises, the

obligation to pay promptly for water service is in no way affected by failure of the District

to furnish or send the bill or the failure of the owner and/or occupant of the premises

served to receive a bill for such service. The owner of the premises and the occupant are

jointly and severally liable for the bill. Both the owner and the occupant may hereinafter

be referred to as "customer." The sale of the premises or termination of a tenancy will not

reduce the liability of the owner and occupant for water service prior to the sale or

termination. In the case of a new occupant or a new owner no water will be furnished to

any property or premises against which any charge remains unpaid whether a bill shall

have been sent or received, it being the requirement of the District that whoever seeks

water service must assume the obligation to keep such license in force by paying all

charges against the licensed premises without notice. Bills and notices are sent solely as a

convenience to users.

3.2 Metered Rate Service. The Board will periodically establish and publish

metered rate schedules for the various types of metered customers served. Total billing

charges will be calculated on the basis of District records of the amount of water used and

the appropriate rate schedule. Licensees shall return meter cards supplied by the District

in a timely manner to the District, reporting on the amount of water used at the licensed

premises during the appropriate billing period. Metered rate charges are due and payable

upon receipt of the bill. The Board may establish a minimum water rate as a part of the

rate schedule.

3.3 Flat Rate and Commercial/Multi-Family Rate Service. The need for flat rate

service and commercial/multi-family rate service will be determined on a case by case

basis by the Board, and billing will be based on the amount of water used and the

appropriate rate schedule adopted by the Board.

3.4 Unmetered Service. The Board may periodically establish and publish a rate

schedule for unmetered service and for use of summer or winter water key.

3.5 Billing Frequency. The Board shall determine the frequency of billings to

customers.

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3.6 Delinquencies, Turn Offs and Disconnections. All charges which are thirty

days delinquent from the date of the bill shall be charged with an interest rate set by the

Board. If it becomes necessary to suspend service to the licensed premises, charges for

such action will be billed to the owner together with any reasonable attorney's fees, costs

of collection and costs of any lien that may be filed in connection with such

delinquencies. The minimum monthly rate will continue to be due regardless of whether

service has been suspended.

3.6.1 Deposit may be Required. At the discretion of the District, a deposit against

future fees and costs or as security for the performance of obligations under the License

or these Rules and Regulations may be required of the Licensee or customer. Failure to

make any required deposit shall be cause for any adverse action by the District authorized

under these Rules and Regulations or the statutes.

3.7 Liens. The District may record a lien for any unpaid bill. A fee as determined

by the Board plus cost of recording will be charged whenever a lien is released.

3.8 Account Adjustments. Accounts will be adjusted when error is made in

rendering the account, crediting payments, calculating charges and the like.

3.9 Meter Adjustments. When accounts of licensed premises need to be adjusted

due to meter failure or improper measuring of water passing through it, the District will

calculate the charges based on prior use and/or current meter readings to best avoid any

inequities. The District will test a meter upon the request of the customer if it is

suspected that the meter in question has become inaccurate. A meter removed and tested

at the request of the occupant of the licensed premises and found to be accurate shall be

subject to special charges covering such costs as are reasonably incurred by the District.

All such costs will be charged to the licensed premises.

3.10 Special Service Fee. If, in order to enforce compliance with District Rules and

Regulations, employees of the District perform special services at a licensed premises

which the owner or occupant neglects or refuses to perform himself, or which are not

related to the general maintenance of the water system, the cost of such work shall be

charged to the licensed premises benefited thereby as a special fee.

3.11 Special Miscellaneous Fees. The District shall charge the following special

miscellaneous fees, the amount of which shall be set by the Board and listed on a rate and

fee schedule:

a. Physical Tap and Inspection Fee: A fee shall be payable in advance for

making the physical tap in District water line and for inspection by the District of each

new tap and meter installation within the District. A reinspection fee will also be

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charged. The tap and inspection fee will include the supply of parts and equipment

by the District.

b. Penalty for Breaking Seal: A penalty shall be assessed against any

owner or customer who breaks a seal placed by the District upon a water line or

outlet, such penalty to be charged and collected in addition to the estimated charge

for any water used after such seal is broken.

c. Cut Off Charge: A cut off charge will be made for any service cut off.

If the service is cut off because of delinquency in making payments for water service,

the cut off charge will be set at a higher amount.

d. Turn On Charge: A charge will be made for turn on service where

service has been reinstated.

e. Special Reading of Meter: A charge will be made where request is

made for interim reading and billing.

f. Failure by Customer to Read Meter: A penalty will be charged per

month when a customer fails to read his meter pursuant to instructions from the

District. The District may order one of its employees to take a special reading of the

meter at the expense of the customer, or, if unable to gain access to the meter, the

District may estimate the water usage for the month based on its records of past usage.

g. Service Call Rate: Any work done by a District maintenance person for

a customer shall be charged at an hourly rate.

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Section 4--Mains and Supporting Facilities

4.1 Ownership and Installation. In the absence of some special circumstance,

water mains located within the District are owned by the District. The installation of all

District piping facilities is under supervision of the District and such facilities shall be

installed and maintained pursuant to specifications determined by the District.

4.2 Extensions. The proprietary functions of the District do not require extension

of its facilities beyond those facilities that now exist. If an extension is approved by the

Board, it shall be approved on condition that:

a. The extended mains conform to the District's installation specifications

and any water main extension plan approved by the Board.

b. The extension shall be installed either by the District or under the

District's supervision.

c. The District may specify a procedure whereby the cost of installation is

borne by the customers to be served.

4.3 Service Outside the District. It is in the best interest of the District not to

provide service outside the District. However, if unique circumstances dictate the

possible service outside the boundaries of the District, both tap fees and rates will be

determined by the Board. Applications for out-of-district service will be considered after

an inquiry has been made by the Board as to the advisability of annexing the property to

the District.

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Section 5--Service Lines and Appurtenances

5.1 Ownership and Maintenance. The service line and multi-service line through

which a licensee receives water service from the District main line shall be owned by,

installed and maintained at the expense of the licensee. The service line and multi-service

line shall begin at the point where the tap is made to a main line of the District. The

District shall have the right, but not the obligation, to shut off water service to, repair or

replace the service line or multi-service line at the expense of the licensee or licensees,

when such action is considered by the District in its sole discretion to be necessary to

preserve and protect the integrity of the water system or its facilities, or to maintain

satisfactory service to any or all other licensees. In the case of a multi-service line, the

District shall assume all persons who own property obtaining water through a multiservice

line to be the owners of that line and will charge the cost of such shut-off, repair

or replacement to such persons equally. The District shall bear no liability for any

damage to or caused by any service line, multi-service line, including water flow

therefrom, and occurring on or off the property served by such service line or multiservice

line.

5.2 License. Prior to the actual connection of any service line to the water system,

the property owner or his representative must have in his possession a signed water

service agreement which has been approved by the Board.

5.3 Connections. All actual connections to the mains of the District water system

and all corporation stop installation shall be made by the District. At least three days

notice must be given the District so arrangements can be made for the work.

5.4 Water Service Line. Every service line or multi-service line shall be of District

approved pipe, both of construction and size, and shall meet all District specifications for

installation. Each service line shall be equipped with a curb stop and a water meter which

meets the specifications of the District. When the particular service requires that the

water meter be installed outside, the meter must be placed in a District approved meter

pit.

5.5 Remote-Readout Meter Installation. All meter installations must be equipped

with remote read-out dials mounted on the exterior of the structure, preferably on the wall

or foundation. Remodeling that would place the remote readout dial inside the house

must include returning the dial to the exterior.

5.6 Thawing and Repair of Service Line and Multi-Service Lines. It is the

obligation of the licensee to protect the water meter and service lines and multi-service

lines from freezing and other hazards. The licensee shall be liable for the costs of repair,

replacement or thawing of water meters, service lines, or multi-service lines due to any

- 16 -

cause, as well as the cost of the water lost.

5.7 Water Pressure. It is the policy of the District to provide water at a pressure not

to exceed 170 pounds per square inch. If because of circumstances beyond the control of

the District, the pressure should exceed desired maximum and damage should occur to the

premises of the customer, the District is not liable. Pressure reducing valves are

recommended on all service lines to protect the individual properties against such a

situation.

5.8 Water Lift Pump Installation. The customer is responsible for the installation

of a suitable lift pump and force main in any situation where the District is unable to

supply sufficient pressure for the customer to operate the fixtures in his premises.

Building sites situated higher in altitude than the reservoirs of the District fall into this

category.

5.9 Valve Box and Manhole Grades. If road or easement grades are altered after a

construction contract has been approved and completed, the cost of altering the manhole

or valve box height will be that of the party authorizing the grade change.

5.10 Inspection. All service lines and meter work shall be inspected by a District

representative who shall have the authority to halt construction when, in his opinion, the

District specifications or proper construction practices are not being adhered to.

Whenever any portion of the District specifications are neglected, the District's

representative shall order further construction to cease until all deficiencies are corrected.

No service lines or meter pits shall be backfilled without the District representative's

inspection and approval.

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Section 6--Meters

6.1 Ownership. The licensee shall purchase and own the meter.

6.2 Size and Type. The size, type and quality of all meters used within the District

shall be as set forth in District specifications.

6.3 Location. All meters must be so located as to allow free and non-hazardous

access by District personnel at reasonable times for reading, removal, inspection and

replacement, and so that the entire supply of water to the premises will at all times be

accurately measured. The specific location of a meter shall be designated by the owner

thereof, subject to the approval of the District.

6.4 Maintenance.

a. The licensee shall be responsible for the costs of maintaining the meter.

The District shall have the right but not the obligation, at all reasonable times, to inspect

and read the meter to verify that the meter is in proper working order and not in need of

repair or replacement and to verify that the remote reading is consistent with the meter

reading. The District shall have the first right to repair or replace the meter at the expense

of the licensee. The licensee shall have the responsibility of notifying the District of any

meter in need of repair of replacement, unless a determination of such need is first made

by the District. The District shall have no responsibility to regularly inspect the meter.

b. If in the sole discretion of the District, the meter of any licensee or its

operation threatens the integrity of the water system, its facilities, or the District's ability

to provide adequate service to other licensees, the District may shut off water service to

such licensee with or without notice until repair or replacement of such meter is effected.

The District shall bear no liability for any damage to or caused by any meter, including

water flow therefrom, and occurring on or off the property served by such meter.

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Section 7--Sanitary Standards

7.1 Water Quality. The raw water supply of the District is taken from shallow

wells which are fed primarily by normal surface run-off and subsurface concourses of

mountain streams which serve as the drainage for the area essentially served by the

District. Sudden storms or heavy spring run-off can cause an unusual amount of

discoloration of the water provided by the District. Accompanying silt may temporarily

overburden the treatment facilities of the District and cause some interruption of service.

While every effort is made to provide high quality water, emergencies may arise that can

cause temporary cloudy conditions or interruption of service. Whenever possible, the

District representative will make an effort to forewarn those customers which may be

affected so that a limited amount of auxiliary water may be acquired by those customers.

However, all water is chlorinated in accord with state and county statutes. In periods of

severe run-offs and discoloration a distinct chlorine taste may be unavoidable.

7.2 Cross Connection. A cross connection is a physical connection or an

arrangement of pipe between two otherwise separate piping systems, one of which

contains the water from the District system and the other water from another source

whereby water may flow from one system to the other.

7.3 Dual Supply. Piping of water from the District water system and water from

other sources, such as private wells, shall be installed in such a manner as to eliminate

any cross connection. The District will inspect such installation.

7.4 Backflow. Backflow, which is the flow of water or other liquids into the

distribution mains of the District's water system, is prohibited. Where a potential

backflow is present a protective device(s) or system(s), as may be prescribed by the

District, shall be installed to prevent its occurrence.

7.5 Valves and Faucets. Water closets and urinals must be supplied with selfclosing

valves, and in no case may a bib or faucet be placed over any plumbing fixture or

water using device unless there is an air space between the bib or faucet and the plumbing

fixture or water using device adequate to prevent back siphonage or backflow into the

District's system.

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Section 8--Water Conservation

8.1 Beneficial Use. Water shall be used only for beneficial purposes and shall

never be wasted.

8.2 Unauthorized Use. Any unauthorized use of water shall be paid for at the same

rate as if that use had been authorized, together with the costs incurred by the District in

discovering and collecting for unauthorized use. Such payments shall not in any way

affect the right of the District to suspend or revoke a license for unauthorized use nor

shall they affect any criminal liability which may have attached by reason of such

unauthorized use.

8.3 Seals. The District may require that seals be attached to any water using

system in or about a licensee's premises in order to detect any unauthorized use of water

from such system. If necessary, the District may also require that mechanical devices

may be attached to any water using system in or upon a licensee's premises in order to

detect any unauthorized use of water from such system. Such mechanical devices may be

inspected on behalf of the District at any reasonable time.

8.4 Outside Use of Water. Use of District supplied water other than inside a

licensed premises' structure, e.g. for the watering of lawns, gardening and other outside

uses may be limited at the discretion of the Board. Customers will be notified of such a

restriction through a notice posted in at least three conspicuous public places within the

District, a minimum of 24 hours prior to the enforcement of the restriction.

8.5 Water Shortage. The District shall determine the allocation of water to owners

in the event of a water shortage. In the event the total water supply shall be insufficient to

meet all the desires of the owner or in the event there is a shortage of water, the District

may prorate the water available among the various owners on such basis as is deemed

equitable by the Board and may prescribe a schedule covering the use of water or impose

other water use restrictions.

8.6 Conditions. If conditions of water supply so limit the supply of water that

unrestricted water use may endanger the adequacy of that supply, the Board, exercising its

discretion in the protection of the public health, safety, and welfare, may adopt such

emergency water use restrictions as are reasonably calculated under all conditions to

conserve and protect that supply and to insure a regular flow of water through the system.

Emergency water use restrictions shall remain in force and effect until the Board

determines that the conditions requiring their imposition no longer exist.

8.7 Enforcement. The violation of water use restriction may be considered grounds

for the suspension or revocation of a license. The District may shut off water to any

- 20 -

owner who violates a water use restriction.

Section 9--Fire Protection Service

9.1 Fire Hydrants. Fire hydrants will be placed at locations designated by the

Board, under advice from the Indian Hills Fire Protection District. The only authorized

users of the hydrants are the District and the Indian Hills Fire Protection District.

9.2 Ownership. Fire hydrants may be procured by a person or entity other than the

District. The hydrants installed by the District become the property of the District upon

installation.

9.3 Unauthorized Use. Use of water from a fire hydrant for any purpose except as

stated above shall be deemed an unauthorized use. Unauthorized use shall be punished by

a special fine as determined by the Board.

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Section 10--Records Open to the Public - Amendments

10.1 Enactment. These Rules and Regulations have been adopted by the Board for

the protection and use of the District and for the citizens therein.

10.2 Official Custodian. The secretary of the Board is the official custodian

responsible for the maintenance, care and keeping of any public records of the District.

10.3 Inspection of District Public Records. All public records of the District shall

be open for inspection at any reasonable time.

10.4 Request for Inspection. Request for inspection and copying of any public

records of the District shall be made to the official custodian in writing and set forth the

particular document or record desired to be inspected or copied. If such document or

record is available for inspection and copying, the official custodian will notify the

applicant of the date, time and location where the material can be inspected or copied. If

such public record is not available to the District, the applicant shall be notified of this

fact.

10.5 Amendments. These Rules and Regulations may be amended by the secretary

of the Board acting as official custodian of the records of the District, with the approval

of the Board, at any time in the same manner as the original Rules and Regulations herein

adopted. Any amendments to these Rules and Regulations which may be adopted by the

Board in the future will be posted in three conspicuous places within the District for

15 days for the information of interested citizens.

2189/RulesReg.619