Rules for Caldera Water Company and Water System Operations

1. Definitions

1.1 Board of Directors: A group of up to 8 members, 7 positions representing each of the water systems owned by Caldera Water Company (Company) and one at-large position. The Board of Directors and its offices shall be governed by Idaho Code Title 30 Chapter 30 and its current bylaws. Board members who serve as volunteers have a fiduciary responsibility for the Company's financial, operational, and legal matters concerning the following water systems: Shotgun Cherokee, Shotgun North, Shotgun Stevens, Shotgun Kickapoo, Valley View, Aspen Ridge, and Goose Bay (hereinafter collectively, or individually, referred to as water system).

1.2 Customer: An individual, business, or government agency receiving water service from the Company, responsible for bill payment and adherence to Company regulations.

1.3 Billing Period: The time interval between billing statements for normal services.

1.4 Connection or Hook-Up Fee: A one-time charge to Customers to partially, or fully recover, Company’s costs associated with providing a new connection or reconnecting a previously disconnected service. This could include a percentage of the cost for new infrastructure upgrades. 1.5 Late Payment Charge: A fee applied to any overdue balance on all charges and assessments.

1.6 Non-Recurring Charges: Fees that are not billed at regularly scheduled intervals.

1.7 Recurring Charges: Fees that are billed at regularly scheduled intervals.

1.8 Assessment: A one-time fee levied on active or potential water users, set by the Board of Directors, intended for critical infrastructure improvements and other water system needs.

1.9 Premises: The Customer’s property, including outbuildings, is typically situated on one lot or parcel.

1.10 Rate Schedule: A list of all recurring and non-recurring charges, for Company operations and administration.

1.11 Disconnection of Service: physical disconnection of Customer service line piping from the water system.

1.12 Reconnection of Service: The physical reconnection of service after disconnection.

1.13 Suspension of Service: The discontinuation of service without physically disconnecting the water piping, suspending service longer than 30 days (about 4 and a half weeks). (i,e turning off and locking out a shut-off valve).

1.14 Restoration of Service: The reactivation of water service without physically reconnecting, or installing, water piping, after a suspension of service.

1.16 New Service Connection: The establishment of a water service within 50 feet of the Company’s main line, including a curb stop shut off at the Customer’s property line.

1.17 Irrigation: The artificial application of water to land to foster plant growth, often used when natural rainfall is insufficient.

1.18 Cross Connection: an actual or potential connection between a potable drinking water supply and a non-potable drinking water source or system that poses a potential public health hazard.

1.19 Written Notice: Any written notice may be given and received elect.

2. General

2.1 The Customer receiving water service and the Company providing water service agrees to abide by these rules and regulations.

2.2 The Governing Board will review and approve all recurring and non-recurring charges as needed.

3. Rates and Fees

3.1 The rate schedule starting January 1, 2025, for all Customers will be: • Monthly rate: $67.00 • Quarterly rate: $201.00 • Annual rate: $804.00

3.2 Special Assessments: If the Board determines a special assessment is required for the improvement or maintenance of water systems, it will publish a written notice detailing the reason for the special assessment and the amount requested. The Board can allow for up to 45 days (about 1 and a half months) of public notice and receive Customer comments during this time before a final decision is made.

3.3 Late payment charges will be assessed at 16% per annum, or 4% monthly, on any unpaid account balance, plus, a monthly late fee of $25.00 for every month the account is not paid in full.

3.5 The service suspension charge for Customers will be $250 during regular business hours with 48 hours (4 business days)' notice; There will be a $500 charge to Customers who request restoration of service during non-business hours, or without 48 hours (4 business days)' notice.

3.6 The service restoration charge for Customers will be $250 during regular business hours, with 48 hours (4 business days)’ notice; there will be a $500.00 charge to Customers who request reactivation of service during non-business hours. *Service will not be restored until the account is current and paid in full.

3.7 Company will charge fees for new service connections or reconnections. The amount of the fee may be up to $4,500.00 and can also include a percentage of the cost of any capital improvement to the system infrastructure needed for authorized connections and reconnections.

3.8 Customer routine service work: Customers needing service shut off, or turned on, during regular business hours and those scheduled 24 hours in advance will incur no charge. Emergency service shut off requests with less than 24-hour notice, or after hours, will be charged $125.00 per incident.

3.9 Suspension or disconnection of service: If Customers are suspended or disconnected due to noncompliance or lack of payment, they can be subject to all suspension, restoration, disconnection, and/or reconnection fees in these rules.

4. Service Connections

4.1 Prospective Customers with property within the service area of any of the water systems who desire to connect to the water system will contact the Secretary of the Board and receive an application form. Applicants for service will be required to sign a standard service application and agreement before the Company agrees to provide service.

4.2 The Company will not provide service at a service location until the service connection application has been reviewed and approved by the Board, and the appropriate fees have been paid in full.

4.3 Special contracts may be required where large investments in facilities, infrastructure or water rights are necessary to provide the requested service. The Company may require contributions toward such investments and establish minimum charges as deemed necessary. All such contracts will be subject to Board approval.

4.4 The Company reserves the right to place limitations on the amount and character of water service it will supply, and to refuse service to water systems and Customers if:

• Regulatory authorities require the Company to refuse or limit service

. • The requested installation service is larger than necessary to properly serve the domestic needs of the Customer.

• The depth of the applicant's service line is less than the minimum depth required for frost protection.

• The applicant has a domestic well and is attempting to use multiple sources of water.

• The applicant refuses to agree to abide by the Company’s rules and regulations.

5. Billing and Payment

5.1 There shall be only one account per serviced lot

5.2 Accounts shall continue, and water bills shall be rendered regularly until the Company has been duly notified in writing with the Company’s response of “received” to discontinue service.

No service agreement or application is assignable from one Customer to another, except upon the written agreement of all parties concerned.

5.4 All Customers shall be billed regularly via email or mail, as identified in the applicable rate schedule.

5.5 Late payment charges may be levied against any delinquent account. All payments received by the next billing date shall be applied to the Customer account before the calculation of late payment charges.

5.6 All bills shall indicate the balance due and must be paid within 30 days (about 4 and a half weeks) after the date rendered. All bills not paid by the due date will be considered delinquent, and if not paid in full within 60 days (about 2 months) of the due date, Customer will be subject to all late fees, and its connection may be suspended or disconnected depending on the situation, requiring Customer to pay the reactivation, or disconnection/reconnection fees these rules require.

Lien for Unpaid Assessments.
Each Owner shall pay all water assessments when due. If any assessment remains unpaid for more than sixty (60) days after its due date, and after notice and opportunity to cure from the Company, the unpaid balance, together with late charges, interest, and reasonable collection costs (including attorney fees), shall become a lien upon the Owner’s Parcel. The Company may record the lien and enforce it, including by foreclosure, in the same manner as a mortgage. The lien shall run with the land and bind each successive Owner. The lien shall be subordinate to any bona fide first mortgage or deed of trust, but superior to all other liens or claims except as provided by law.

5.7 If a Customer is delinquent for more than 6 months, despite receiving proper documentation and notification from the Company, and continually fails to make a payment in full, or to make payment arrangements with the Company, the Company is authorized to recover costs of installing a shut-off valve (if one does not already exist) at the Customer's expense, up to $4,000.00.

6. Customer Plumbing and Appliances

6.1 All plumbing, piping, fixtures, and appliances on the Customer side of the service connection shall be installed and maintained at the expense of the Customer or property owner.

6.2 The Company shall not be responsible for locating or repairing the Customer side of the isolation valve.

6.3 Each lot shall have an individual mainline connection to the water system. Customers shall not connect water service to different platted lots, or service one platted lot from another. If this connection is found to be present, the lot owner without the proper mainline connection, shall be fined up to $3,500 and required to disconnect. Additionally, the Customer shall be responsible for reconnecting to the mainline of the water system correctly, following the new connection process, under the supervision of the Company or its agents.

6.4 Customers shall not be permitted to use multiple sources of water. If a lot of owners have an individual well, it shall be used for domestic purposes, and no connection to the water system will be authorized. If the lot owner desires service from the Company, they must properly abandon their individual domestic well according to IDWR rules or provide proof of no cross connection at the time of connection and agree to ongoing verification of no cross-connection. All costs associated with this shall be at the Customer's expense.

6.5 No Customer shall permit any person from other premises to take water from their service connection or tap, for more than one week, without written approval and consent from the Company. If a customer is violating this rule, a written warning will be issued first, detailing the violation. If the violation continues, the Customer will be fined $500.00 per incident. If the violation continues after the warning and issuance of fine, service to the Customer in violation of these rules will be suspended or disconnected.

6.6 No person or Customer shall place any building material, vegetation, or other substance upon or around any well, well house, hydrant, gate, box, meter, main line, service line, or service line shut-off that prevents free access to Company property, right of ways, or easements. If a person or Customer is violating this rule, a written warning will be issued first, detailing the violation. If the violation continues after the warning, the Customer will be fined $500.00. If the violation continues, service to the Customer in violation of these rules will be suspended or disconnected. Additionally, the Customer will have the opportunity to complete the work needed to comply within 30 days (about 4 and a half weeks). If Customers are unable to complete the work within the designated timeframe, the Company is authorized to perform the work needed to ensure the continued operation of the water system, with all applicable costs associated with this work being billed to the Customer.

7. Service

7.1 Customers shall not operate any Company-owned service or mainline valves unless directed by the Board or Company agents. If the Customer is found to have operated the said equipment without authorization, the Customer could face fines of up to $500.00 per incident, and or be subject to suspension or disconnection of service.

7.2 The service line that shall be owned and maintained by the Company is defined as piping from the main water line to a curb stop valve at the Customer’s property line or on the Customer's property that is accessible. It also includes a curb stop valve at the main line that is buried. All piping, valves, or appliances beyond the curb stop are the property of the Customer or property owner, not the Company.

7.3 The Company reserves the right, at any time, upon written, , or personal communication to shut off water for maintenance, expansion, and emergencies without prior notice. The Company shall exercise reasonable diligence and care to prevent interruptions of water service and endeavor to provide notice in advance of interruptions when possible.

7.4 No one, other than an authorized Company representative, shall turn a water service on. Furthermore, no one shall turn the water service off, unless emergency circumstances exist and multiple efforts to contact a representative of the Company prior to were unsuccessful. Anyone found to be breaking this rule shall first receive a written warning. Second offense will result in a fine of $500.00, as well as being subject to suspension or disconnection.

8. Board Meetings

8.1 Company Board Meetings are held monthly. Special meetings may be held as needed. If a customer would like to attend a Board meeting or add an item to the agenda, they must contact the Company Secretary. Customers may only be allowed to attend portions of the Board meeting pertinent to their request.

8.2 Minutes will be kept of each Board meeting. If a customer would like to see the minutes for a meeting, they must contact the Secretary and provide a written request with the date of the meeting and what information is requested. Not all information may be given to Customers. If the information that is requested cannot be given, the Board will state what information cannot be given and the reason.

9. Miscellaneous

9.1 Service will be maintained for domestic Customers on a preferential basis. Delivery of water under all schedules may be restricted, interrupted, or curtailed at the discretion of the Company in case of a shortage or threatened shortage of water, the risk of potential contamination, or in the event of contamination of the water system or water source.

9.2 Customers shall grant Company representatives access to their premises at all reasonable hours for sampling, turning on or shutting off the water, inspecting, removing, or repairing any Company property installed on the premises. Access shall always be granted for emergency purposes.

9.3 No one shall tamper with, or interfere with, the Company's equipment or property, nor shall repairs, connections, or replacements be made without the Company's prior written authorization. If the Company is made aware of any tampering or interference with its equipment, property, or any part of its system, or illegal repairs, connections, or replacements, a written warning will be issued first detailing the violation. If the violation continues after the warning, the Customer will be fined $1000.00 and be billed for any damages resulting from said tampering. If the violation continues, service to the Customer in violation of these rules will be suspended or possibly disconnected.

9.4 Water Rights: The Board is obligated to comply with the quantity and use conditions placed on the water rights that allow the diversion of water to the water system. The Board may be notified that systems are using all available water under the specific water rights and must pause additional connections until additional water rights can be acquired to cover new connections.

9.5 Irrigation: No lot shall use the water system for irrigation unless the specific water right for the system allows irrigation. Idaho Code §42-111(2) does not allow multiple ownership subdivisions to irrigate with a Domestic Water Right. If a customer is irrigating, and the water rights for that system do not allow irrigation, a written warning will be issued first detailing the violation, if the violation continues after the warning, the Customer will be fined $500.00. If the violation continues, service to the Customer will be terminated.

9.6 The Board reserves the right to amend these rules at any time with a required majority vote.

9.7 Infrastructure: Due to current aging infrastructure restraints, the Company is unable to, with any accuracy, locate water mainlines and service lines. The Company cannot guarantee that frozen water mains or service lines will not occur causing the loss of service from time to time.