2021 FDWC Operatingrules

Fruitland Domestic
Water Company
Operating Rules
2021 Edition
Table of Contents
1 Preface.....................................................................................................................................1
1.1 General Overview.............................................................................................................1
1.1.1 Background................................................................................................................1
1.1.2 Corporate Shares........................................................................................................1
1.1.3 Shares.........................................................................................................................1
1.1.4 Information Packet.....................................................................................................1
1.1.5 New Service Connections..........................................................................................2
1.2 Minimum Pressure............................................................................................................2
1.3 Water Rights.....................................................................................................................2
1.4 Information Line...............................................................................................................2
2 Periodic Reviews.....................................................................................................................2
3 Separate Companies.................................................................................................................2
4 Water System Operation and Maintenance Manual................................................................3
5 Board of Directors...................................................................................................................3
5.1 Director’s Terms...............................................................................................................3
5.2 Meetings of the Board of Directors...................................................................................3
5.2.1 Regular Meetings.......................................................................................................3
5.2.2 Special Meetings........................................................................................................3
5.2.3 Quorum......................................................................................................................3
5.3 Removal of Directors and Director Vacancies.................................................................4
5.4 Conflict of Interest Policy.................................................................................................4
5.4.1 Ethics.........................................................................................................................4
5.4.2 Conflict of Interest Policy..........................................................................................4
5.5 Water Emergency..............................................................................................................4
5.6 Qualifications for President..............................................................................................4
6 Service Connections, Disconnections......................................................................................5
6.1 New Connections..............................................................................................................5
6.2 Location; FDWC Specifications.......................................................................................5
6.3 Updating Connections.......................................................................................................5
6.4 Exceptions to Specifications.............................................................................................5
6.5 Can; Dole..........................................................................................................................5
6.5.1 Defined......................................................................................................................5
ii
6.5.2 Can Access.................................................................................................................5
6.5.3 Emergency.................................................................................................................5
6.5.4 Multiple Doles in Can................................................................................................5
6.5.5 Dole Servicing...........................................................................................................6
6.6 Access to Service Connections.........................................................................................6
6.7 Leased Water.....................................................................................................................6
6.7.1 Application for Dole Size Change.............................................................................6
6.7.2 Fee for Dole Size Change..........................................................................................7
6.8 Disconnections..................................................................................................................7
7 Main Line.................................................................................................................................7
7.1 New Service Connections.................................................................................................7
7.2 Changes to Existing Service Connections........................................................................7
8 Branch Lines............................................................................................................................8
8.1 Ownership, Maintenance, Installation..............................................................................8
8.2 Company Ownership.........................................................................................................8
8.3 New Service Connection, Existing Service Connections, Forms.....................................8
8.4 Standards...........................................................................................................................8
8.5 Capacity Enlargement.......................................................................................................9
8.6 Extension...........................................................................................................................9
8.7 New Branch Line..............................................................................................................9
8.8 Other Changes...................................................................................................................9
9 Nonshareholder Request for Service.......................................................................................9
10 Private Individual Line..........................................................................................................10
11 Point of Diversion..................................................................................................................10
12 Charges..................................................................................................................................10
13 Delinquency...........................................................................................................................10
13.1 First Month..................................................................................................................10
13.2 Second Month..............................................................................................................10
13.3 Third Month..............................................................................................................101
13.4 Fourth Month...............................................................................................................11
13.5 Lien..............................................................................................................................11
14 Sale of Shares.........................................................................................................................11
15 Share Activation....................................................................................................................11
15.1 Charges........................................................................................................................11
15.2 Fee Calculation............................................................................................................11
iii
15.3 Not Included................................................................................................................12
16 High and Low Rates..............................................................................................................12
16.1 High Rate.....................................................................................................................12
16.2 Low Rate.....................................................................................................................12
16.3 Titling..........................................................................................................................12
17 Water Treatment....................................................................................................................12
18 Dole Tampering.....................................................................................................................12
19 Theft of Water........................................................................................................................12
20 Meters....................................................................................................................................13
20.1 Reading, Allotment.....................................................................................................13
20.2 Overages......................................................................................................................13
20.3 Moving Meter..............................................................................................................13
20.4 Tampering...................................................................................................................14
20.5 Ownership...................................................................................................................14
21 Stock Tanks............................................................................................................................14
22 Wells......................................................................................................................................14
23 Encumbered Shares................................................................................................................14
23.1 Notice on Shares..........................................................................................................14
23.2 Shareholder Duty.........................................................................................................14
23.3 Transfers......................................................................................................................14
24 Realtor Notices......................................................................................................................14
25 Employee Training, Compensation.......................................................................................15
25.1 State Requirements......................................................................................................15
25.2 Compensation..............................................................................................................15
25.3 Board of Directors Training........................................................................................15
25.4 Mileage........................................................................................................................15
25.5 Overtime......................................................................................................................15
26 Required Maintenance...........................................................................................................15
26.1 Doles; Air Vacs...........................................................................................................15
26.2 Regulators....................................................................................................................16
26.3 Can Markers................................................................................................................16
26.4 Check Valves...............................................................................................................16
26.5 Intake Area..................................................................................................................16
26.6 Locked Cans................................................................................................................16
26.7 CDWC Service Connections.......................................................................................16
iv
27 Public Water System Monitoring Plan..................................................................................16
28 Water Quality Testing............................................................................................................16
28.1 Operator Duties...........................................................................................................16
28.2 Tests Required.............................................................................................................16
28.3 Documentation Required.............................................................................................16
29 Consumer Confidence Report................................................................................................17
29.1 CDPHE Requirement..................................................................................................17
29.2 Procedures...................................................................................................................17
30 Annual Meeting Procedures...................................................................................................17
30.1 Schedule Meeting........................................................................................................17
30.2 Budget.........................................................................................................................17
30.3 Notice..........................................................................................................................17
30.4 Documents for Meeting...............................................................................................18
31 Cattlemen’s Domestic Water Company................................................................................18
31.1 Water Quality..............................................................................................................18
31.2 Authority.....................................................................................................................18
31.3 Service Connections....................................................................................................18
31.3.1 Permitted Locations.................................................................................................18
31.3.2 Prohibited Location.................................................................................................18
31.3.3 Service Requests......................................................................................................18
31.3.4 Accessibility............................................................................................................18
31.3.5 Installation Limits....................................................................................................19
31.4 Billing..........................................................................................................................19
31.4.1 Multiple Users.........................................................................................................19
31.4.2 Single User...............................................................................................................19
31.5 Delinquency.................................................................................................................19
31.5.1 Individual.................................................................................................................19
31.5.2 CDWC.....................................................................................................................19
31.6 Stock Tanks, Ponds.....................................................................................................19
31.7 Wells............................................................................................................................20
31.8 Maintenance................................................................................................................20
31.8.1 Payment Responsibility...........................................................................................20
31.8.2 Periodic Checks.......................................................................................................20
31.8.3 Termination..............................................................................................................20
31.9 Dole Tampering...........................................................................................................20
32 Company Owned Water Shares.............................................................................................20
v
33 Lost Share Certificates...........................................................................................................20
34 Waivers..................................................................................................................................21
Appendix A: Special Board Meeting Notice Example...................................................................1
Appendix B: Conflict of Interest Policy.........................................................................................1
vi
FRUITLAND DOMESTIC WATER COMPANY
OPERATING RULES
REVIEWED AND APPROVED AUGUST 20201
1 Preface
1.1 General Overview
1.1.1 Background
Fruitland Domestic Water Company (FDWC or Company) is a small, rural, community water
system owned and operated by its shareholders. It is a nonprofit Colorado corporation and is
regulated as a public water system by the Colorado Department of Public Health and
Environment (CDPHE). The Colorado Primary Drinking Water Regulations apply to the
Company.
1.1.2 Corporate Shares
Total corporate shares in the Company are 200,000. Per Company Bylaws, each 400 shares shall
entitle the holder to a pro rata share of treated water in the system, up to a quart per minute, or up
to 10,000 gallons per month if metered. A “dole” is a device to regulate the flow of water to a
shareholder.
1.1.3 Shares
Per Company bylaws, one must own 400 shares, or increments of 400 shares, of Fruitland
Domestic Water to have a service connection with the water system (e.g. 800 shares equals two
service connections). Each service connection requires 400 activated shares. Less than 400
shares cannot be activated and used. All new service connections to the system require review
by the Board of Directors.
1.1.4 Information Packet2
The Company shall send an information packet to each new shareholder. The information
packet shall include the current Bylaws; current Operating Rules; current profit and loss
statements and balance sheet; current budget, fees, charges and fines; FDWC information
statement (information on Company, water source, doles, etc.); FDWC brief history; FDWC
operating values; names and numbers (Board members and officers, their phone numbers, board
meeting information, information line number, North Fork Accounting contact information), and
“In the Know with H20.”
1.1.5 New Service Connections
Per Company bylaws, all requests for new service connections, an increase in dole size on the
Main Line or a Branch Line, any change in a Branch Line, such as extension or capacity
1
On February 10, 2011, the Company Board of Directors reviewed and approved this annual revision
of the Company Operating Rules, which included a thorough restructuring. Many sections were
reworded for clarity. On Aug. 12, 2020, the Board further reviewed and approved the 2020 edition of
the Company Operating Rules.
2
Adopted Feb. 10, 2011.
1
enlargement, or a new Branch Line, are subject to the ability of the Company to deliver adequate
water to the requested site and must include a completed Company approved form for the request
and payment of the current fee. 3
1.2 Minimum Pressure
Barring such things as drought, pipeline damage, force majeure, and the like, the Company's
responsibility is to provide a minimum 20 pounds per square inch (psi) of water pressure at the
shareholder's dole or meter connection, if that connection is at the Main Line. With regard to
Branch Lines, the Company's responsibility is to provide a minimum of 20 psi of pressure at the
main point of diversion connection between the Main Line and the Branch Line, but not at the
individual doles on that Branch Line.
1.3 Water Rights4
The Colorado Doctrine is a set of laws regarding water use and land ownership, adopted by the
people of Colorado in the 1860s. The doctrine defines four essential principles of Colorado water
law: 1) All surface and ground water in Colorado is a public resource for beneficial use by
public agencies and private persons; 2) A water right is a right to use a portion of the public’s
water resources; 3) Water rights owners may build facilities on the lands of others to divert,
extract, or move water from a stream or aquifer to its place of use; and 4) Water rights owners
may use streams and aquifers for the transportation and storage of water. FDWC has a right to
divert 128 gallons per minute of water from Crystal Creek. Each shareholder has a right to use
an amount of water equivalent to their share ownership, but does not own the water.
1.4 Information Line
The Company has a 24 hour information line, (970) 92l-3100. Please call this number to check
on water delivery operations. The message will let you know if everything is normal or not,
when there is a main pipeline problem, or repair work scheduled. The message also will list
current names and telephone numbers of persons to contact with your billing questions, general
questions and questions or problems regarding your individual water delivery. 5
2 Periodic Reviews
The Board of Directors shall periodically conduct a comprehensive review of the operating rules
and bylaws. The Board may revise and change policies at any time as conditions mandate. 6
3 Separate Companies7
Consistent with the position of the State of Colorado that Fruitland Domestic Water Company
and Cattlemen’s Domestic Water Company are two separate and distinct water companies, no
FDWC taps shall be connected before the treatment plant and only FDWC service connections
shall be connected after the plant. Section 30 of these Rules provides additional information
regarding Cattlemen’s Domestic Water Company.
3
Amended Feb. 8, 2007; amended July 12, 2007.
4
5
6
Adopted Mar. 4, 1998.
7
Adopted Mar. 15, 2006.
2
4 Water System Operation and Maintenance Manual
As required by CDPHE, Fruitland Domestic Water Company will maintain a written Water
System Operation and Maintenance Manual for the water collection system at Crystal Creek,
water treatment plant and the water distribution system. The manual will be reviewed and
updated as needed, but at least annually. A section of the manual defines the roles and
responsibilities of the Operator in Responsible Charge (ORC), other certified operators employed
by the company, and any other employees that might be hired by the company. The Manual will
be kept in the office at the water treatment plant.
5 Board of Directors
5.1 Director’s Terms
The Board of Directors is composed of seven shareholders of the Fruitland Domestic Water
Company. Directors serve a two-year term and elections are staggered such that four Directors
are elected in odd numbered years and the other three are elected in even numbered years. 8
5.2 Meetings of the Board of Directors9
5.2.1 Regular Meetings
Immediately following the annual meeting of the shareholders, or as soon thereafter as possible,
the newly elected Board of Directors shall have its annual meeting when it shall elect officers of
the Board and determine the day and time of the regular monthly Board meetings for the next
year. The day and time will be printed on the monthly bills. The day and time are subject to
change, but the date, time, and location of the meeting will be made available on the Company's
24 hour info line, (970) 921-3100. A regular schedule is to facilitate and encourage shareholders
to attend Board meetings.
5.2.2 Special Meetings
Special meetings of the Board of Directors may be held at any place within the State of Colorado
at any time when called by the President, Vice-President, or two or more Directors. Notice (in
the format provided in Appendix A10) of the time, place, and purpose thereof shall be given to
each Director at least three days before the meeting if by mail or at least forty-eight hours if in
person or by telephone. A waiver of such notice in writing, signed by the person or persons
entitled to said notice, either before or after the time stated therein, shall be deemed equivalent to
such notice.
5.2.3 Quorum
The presence, at any meeting, of four Directors shall be necessary and sufficient to constitute a
quorum for the transaction of business. Except as otherwise required by statute or by the Articles
of Incorporation, the act of a majority of the Directors present at a meeting at which a quorum is
present shall be the act of the Board of Directors. In the absence of a quorum, a majority of the
Directors present at the time and place of any meeting may adjourn such meeting from time to
time until a quorum is present.
8
9
Adopted Mar. 15, 2006; amended Aug. 10, 2006.
10
Amended Feb. 8, 2007.
3
5.3 Removal of Directors and Director Vacancies
Directors elected by voting shareholders may be removed as described in Article V, Section 8 of
the Bylaws of Fruitland Domestic Water Company. Any vacancy on the Board shall be filled by
appointment by a majority vote of the Board. The appointee shall serve for the remainder of the
term of the director he/she succeeds.
Failure to attend three consecutive Board meetings may be considered reasonable cause for
removal of a Director. Further, if the Board determines it is unlikely that a Director will be
unable to pursue his/her duties, the Board shall vote to remove the Director, approval by voting
majority.
5.4 Conflict of Interest Policy11
5.4.1 Ethics
The Company adheres to the highest standards of ethics in every action taken by the Board of
Directors and Committees of the Board, and the staff. Directors are fiduciaries of the
organization and have special responsibilities. Adherence to such standards requires that each
person disclose any conflicts of interest and where appropriate, recuse him- or herself from
debate and decision making concerning the subject matter in question.
5.4.2 Conflict of Interest Policy
Each current and future Director shall sign the Conflict of Interest Policy (Appendix B) adopted
by the Board of Directors, acknowledging that Director’s commitment to the principles
articulated therein. Each year, following election of new Directors by the membership at the
annual meeting, those newly elected Directors shall sign the Conflict of Interest Policy.
5.5 Water Emergency12
If any Board member is notified an individual shareholder has an emergency need for water, the
chain of command for the Board is:
1. First, call the Operator in Responsible Charge (ORC).
2. Second, call the Board President.
3. Third, call the Board Vice-President.
4. If none of the above can be reached, those Board members who can be reached will make
the decision collectively.
5. If an individual Board member is unable to reach any of those listed above, then he or she
may make the decision alone.
6. It is the responsibility of those who make the decision to notify the remainder of the
Board and the ORC promptly.
5.6 Qualifications for President13
Before a Board member may be elected President, he or she shall have served at least one year of
a term or equivalent as a member of the Board.
11
Adopted Apr. 12, 2007.
12
13
4
6 Service Connections, Disconnections14
6.1 New Connections
All new FDWC service connections to the system must be reviewed by the FDWC Board of
Directors. Before a new service connection is made, the Board of Directors must approve a
completed “Request for Service Connection” form submitted by the shareholder.
6.2 Location; FDWC Specifications15
The location of any new service connection to the Main Line or Branch Lines shall be inspected
and approved by the Company. All new service connections to the Main Line and Branch Lines
shall be installed and doled by the Company and each must have a Company approved can, lid
and proper fittings. No new FDWC service connections shall be made between the water inlet at
Crystal Creek and the water treatment plant.
6.3 Updating Connections16
Any previously installed service connection to the Main Line or Branch Lines that does not meet
Company specifications shall be replaced at the shareholder's expense.
6.4 Exceptions to Specifications17
The Board of Directors may approve exceptions from the Company's particular design
specifications as long as Company minimum standards are met.
6.5 Can; Dole18
6.5.1 Defined
A “can” is defined as a Company owned below-ground concrete housing containing the valves
and fittings for specific connections. The can is covered by a two-piece metal frost-free lid.
6.5.2 Can Access
A shareholder may not open the can, except for an emergency as described in Section 6.5.3, nor
shall they add any fitting, pipe, strainer, filter, valve or other device inside the can.
6.5.3 Emergency
If a shareholder’s water needs to be shut off because of an emergency, they may open the can to
shut off the water and shall notify the Company within 12 hours. If a shareholder’s water needs
to be shut off and it is not an emergency and there is no other way but to close a valve in the can,
they shall notify the Company and have the Company shut off the water.
6.5.4 Multiple Doles in Can
There shall be no more than one individual service connection in each can in new installations.
Multiple doles in a can in previously installed service connections shall be removed. Such
removal may be at Company expense.
14
Amended July 12, 2007; further amended Feb. 10, 2011.
15
Adopted Dec. 3, 1997, amended Jan. 1, 2001; amended July 12, 2007; further amended Feb. 10,
2011.
16
17
18
5
6.5.5 Dole Servicing
FDWC does not charge for dole checks, cleaning, increase or decrease in dole size (except when
necessary for leased/rented water arrangements), or repairs unless tampering is discovered.
6.6 Access to Service Connections19
Accessibility for installation and maintenance will be considered in determining a proper
location for a service connection. If, in the professional judgment of FDWC, a proposed location
is not reasonably accessible in all seasons, it either shall not be approved or responsibility for the
costs to access the location shall be the shareholder’s. For example, if a water delivery problem
develops at a service connection determined to be not reasonably accessible in winter and it is
necessary to utilize heavy equipment to reach the service connection site, all associated costs will
be charged to the shareholder.
6.7 Leased Water20
Fruitland shareholders may lease some or all of their allotted water only to other Fruitland
shareholders. Leased water shall always be in increments of 400 shares, which represent dole
size changes in increments of up to one quart per minute. Water leased between FDWC
shareholders shall only be provided at an existing FDWC service connection.
Applications for dole changes to facilitate leased water shall be administered by the Company’s
Operators. Long term leases shall be renewed at the beginning of each year by submitting an
application to continue the leased water dole change.
For the purposes of this section, the shareholder with the original right to the water shall be the
Lessor and the shareholder receiving the leased water shall be the Lessee. The Lessor shall in all
cases be the party financially responsible to the company for monthly rates, dole change fees,
and other costs associated with the lease, as well as informing the company when the lease
period ends. The Lessor does not necessarily have to have an existing service connection. No
inactive shares may be leased unless and until the current activation fee is paid to the company.
6.7.1 Application for Dole Size Change
In all cases described below, the Lessor shall submit the FDWC Application for Dole Size
Change with the relevant information subject to the following scenarios:
1. The Lessor and the Lessee are on the same branch line: subject to Operating Rule
Section 1.1.5, no additional water would be brought to the branch line, so additional
capacity is not an issue. Therefore, there is no need to seek majority branch line
approval for the change.
2. The Lessor is not on the same branch line as the Lessee: in this case, the Lessee is
asking that additional water be brought into the Lessee’s branch line. The Lessee must
follow the applicable procedures set forth in Operating Rule Section 7 and after being
assured that the branch line can handle the additional water, the Lessee must acquire
the approval of the change from a majority of Fruitland shares represented on that
branch line.
3. The Lessee is connected to the Main Line: in this case, approval by the Company is
all that is required.
19
Adopted in its entirety Feb. 8, 2007; amended July 12, 2007.
20
Amended March 2017.
6
6.7.2 Fee for Dole Size Change
The service charge for the rented water dole change covers the necessary changes to add the
rented water and the subsequent change to remove the rented water. If no dole change is
necessary (metered connections) for either the Lessor or the Lessee, then a letter request to the
company from the Lessor, or from the lessee showing the Lessor’s agreement to the water lease,
will be sufficient. No fee will be assessed.
6.8 Disconnections
Shareholders pay for both service disconnection and can removal when service is completely
terminated. In the event the Board determines can removal is unnecessary when service is
completely terminated, a lock shall be installed on the can lid and the can shall be inspected
every three months to determine no tampering has taken place. If tampering is detected, the can
shall be removed. Shareholders shall pay costs associated with locking the can.
7 Main Line21
7.1 New Service Connections
The Main Line was installed and is owned and maintained by the Company. Installations of new
service connections on the Main Line shall be made by the Company and are charged to the
shareholder.
7.2 Changes to Existing Service Connections
For additional water to be delivered to a service connection on the Main Line through an increase
to the size of the existing dole, permission shall be obtained from the Company. The process
shall be as follows:
1. A shareholder shall contact the Company to obtain the necessary forms and to ask the
company to determine whether additional water through the applicant’s existing service
connection would have a negative impact on the system.
2. The criteria used to assess the impact on the system include, but are not limited to:
(a). Does not negatively affect system water quality as mandated by CDPHE standards.
(b). Does not negatively affect the distribution system which serves all shareholders.
(c). Does not negatively affect the ability of the Company to deliver potable water to all
the existing shareholders.
3. If it appears that the increased dole size will have no negative impact, the requesting
shareholder shall submit a “Request for Service Connection or Additional Water” form
and any other required information as stipulated on the form for Company approval. The
Company notification form shall be attached to the “Request for Service Connection or
Additional Water” form.
4. Prior to increasing the dole size of an existing service connection to the Main Line, the
Company shall assess the impact on the system created by the enlarged service
connection.
21
Amended July 12, 2007.
7
8 Branch Lines22
8.1 Ownership, Maintenance, Installation
Branch Lines are lines attached to the Main Line and used by more than one shareholder. The
shareholders connected to a Branch Line own that Branch Line subject to any transfer of
ownership to the Company. Branch Lines are maintained by the Company and the maintenance
costs are shared by all users of the respective Branch Line. Ownership notwithstanding,
shareholders are prohibited from performing any maintenance on a Branch Line. Branch Line
installations shall be supervised and approved by the Company. Installations of new service
connections on Branch Lines shall be made by the Company and are charged to the shareholder.
Maintenance costs are determined on a pro rata basis according to the number of shares owned
by each shareholder on the Branch Line.
8.2 Company Ownership
To provide efficient water delivery or water quality improvement, the Company may initiate a
plan to own one or more Branch Lines and request that shareholders transfer all their interest in
their Branch Line to the Company.
8.3 New Service Connection, Existing Service Connections, Forms23
For additional water to be delivered to any Branch Line either through a new service connection
or through an increase to the size of a dole at an existing service connection, permission shall be
obtained from the Company. The process shall be as follows:
1. A shareholder shall contact the Company to obtain the necessary forms for a new service
connection or increased dole on a Branch Line.
2. The Company will determine if the Branch Line will support the increased demand
created by the proposed new or enlarged service connection.
8.4 Standards
An extension of a Branch Line, capacity enlargement of a Branch Line, or a new Branch Line
shall conform to the following standards:
1. All requests shall be on a Company form and the appropriate fee shall be submitted with
the form.
2. Notice and approval for Branch Line extension, capacity enlargement, a new Branch line
or other applicable changes shall be done in the same manner as for new service
connections.
3. Design and materials shall meet Company specifications.
4. All installations shall be supervised and approved by the Company.
5. Does not negatively affect system water quality as mandated by CDPHE standards and
regulations.
6. Does not negatively affect the distribution system which serves all shareholders.
7. Does not negatively affect the ability of the Company to deliver potable water to all
shareholders.
22
Amended Apr. 13, 2006; amended July 12, 2007.
23
Amended Dec. 13, 2007.
8
8. A locator wire shall be attached to the line during installation. 24
8.5 Capacity Enlargement25
To provide additional capacity for more service connections, one or more shareholders may
request enlargement of all or part of an existing Branch Line. The requesting shareholder(s)
shall pay all costs of installing the capacity enlargement, and shall follow the procedures for a
new service connection. The requesting shareholder(s) shall provide a thorough plan for
capacity enlargement including a construction schedule, a plan to prevent or minimize service
interruptions to existing shareholders, and an outline of the project with a detailed project map.
8.6 Extension
An attachment of additional pipeline to an existing Branch Line to permit additional service
connections may be requested by one or more shareholders. An extension may be attached either
at the end of or at a point along an existing Branch Line; extensions at the end of the existing
Branch Line shall be preferred. The requesting shareholder(s) shall pay all costs of installing the
Branch Line extension. Extensions shall be no longer than to the requesting shareholder’s(s’)
real property. The requesting shareholder(s) shall follow the procedures for a new service
connection, and shall provide a thorough plan for the Branch Line extension including a
construction schedule, a plan to prevent or minimize service interruptions to existing
shareholders, and an outline of the project with a detailed project map.
8.7 New Branch Line
One or more shareholders may request a new Branch Line to permit new service connections.
Any new Branch Line shall be connected only to the Main Line. The requesting shareholder(s)
shall pay all costs of installing the new Branch Line. New Branch Lines shall be no longer than
to the real property of the requesting shareholder(s). The requesting shareholder(s) shall follow
the procedures for a new service connection, and shall provide a thorough plan for the new
Branch Line including a construction schedule, a plan to prevent or minimize service
interruptions to existing shareholders, and an outline of the project with a detailed project map.
8.8 Other Changes
If one or more shareholders request other changes to Branch Lines not contemplated by these
Rules, the standards stated above shall apply and the shareholder(s) shall follow the highest
applicable requirements for extension or new Branch Lines subject to Company approval.
9 Nonshareholder Request for Service26

No action shall be taken on a Request for FDWC Service from a nonshareholder until the
nonshareholder either purchases a minimum of 400 FDWC shares or, in lieu of an actual
certificate of ownership of shares, the nonshareholder provides FDWC with a copy of a standard
notarized option agreement from a FDWC shareholder agreeing to sell a minimum 400 shares for
the requested service connection. The option must show the date of expiration, identify the
number of shares and the FDWC certificate number pertaining to these shares. Upon receipt of
the option, the nonshareholder is to complete the pertinent application forms and submit them to
FDWC along with the required application fee. Thereafter, a site inspection will be conducted
by the FDWC Operator in Responsible Charge and a recommendation for action will be made to
24
Adopted February 12, 2009.
25
Amended March 2017
26
Amended Dec. 13, 2007.
9
the Board of Directors. Final approval of a request based on an option to purchase shall be
conditioned upon the actual purchase of the shares and shall not be operative until the purchase is
complete and the shares properly transferred.
10 Private Individual Line27

A Private Individual Line is a shareholder's individual line which only serves his or her property
and/or household. The Company does not maintain Private Individual Lines. As of July 8, 2015,
if a shareholder connects another property or household not owned by said shareholder to his or
her private line, the Company will shut off water service to his or her dole until the situation is
rectified. For any existing private individual lines that serve more than one property and/or
household prior to July 8, 2015, when there is a real estate transaction for such properties and/or
households, the service connections for the properties and/or households will be separated.
Costs will be paid by the shareholders whose connections are separated.
For any existing private individual lines that serve more than one property or household, when
one or more of the shareholders on such private line wishes to separate from the shared private
line, the shareholder(s) will provide a written request to make such separation to the Company.
The service connections for the properties and/or households will be separated within 90 days of
the request. Costs will be paid by the shareholder who requested the separation.
If the company determines that it is necessary, due to operational problems or health concerns,
that connected private lines should be separated, the shareholders will be notified why the private
lines need to be separated, and the costs will be paid by the shareholders whose connections are
separated.
11 Point of Diversion
The point of diversion is a connection made to the Main Line or a Branch Line. A point of
diversion may serve a Private Individual Line or a Branch Line.
12 Charges28
Charges for treated water delivery are billed monthly, normally paid by the shareholder, and are
due at the end of the month. The charge is based on the number of shares owned by the
shareholder. The Company, at its option, may accept payment from others, provided however,
that such payments do not appear to be an attempt to make a claim to an interest in the shares.
Payment remains the responsibility of the shareholder. Charges fund the general maintenance
and business operations of the Company.
13 Delinquency29
13.1 First Month
If there is no payment at the end of the first month, a finance charge shall be added to the next
bill.
13.2 Second Month
If there is no payment at the end of the second month, a delinquency fee shall be added to the
invoice for the second month of no payment. In addition, notice shall be sent by certified mail
27
Amended Feb. 8, 2007
28
29
Adopted Aug. 8, 2005; amended Feb. 10, 2011; further amended Aug. 12, 2020.
10
that water shall be shut off in thirty days and the shareholders shares sold if payment for the
entire balance due is not received in sixty days from the mailing date of the notice.
13.3 Third Month
If payment of the entire balance due is not received by the end of the third month, water shall be
shut off and all costs for the shut off shall be billed.
13.4 Fourth Month
13.4.1 If payment of the entire balance due is not received by the end of the fourth
month, a block of 400 shares owned by the delinquent shareholder shall be sold. The past due
amount and all costs associated with the sale shall be deducted from the sale proceeds and the
balance shall be given to the shareholder. Costs of sale shall include, but not be limited to,
service disconnection, can removal, cost of selling shares and legal fees.
13.4.2 The owner of record, or in the case of an estate – the Personal
Representative, may redeem the shares and terminate the sale by paying the outstanding amount
owed on the account. This payment must be actually received by the Company no later than 24
hours prior to the bid submission deadline for the sale. If the shares are redeemed and the sale is
terminated, the Company will open any sealed bids received and respond to each with a notice
that the sale was cancelled.30
13.5Lien31
Any payment owed the Company is a lien against the shares.
14 Sale of Shares32
Any time the Company sells shares due to shareholder delinquency pursuant to Section 13, the
required legal notice of the sale shall be:
 Mailed to all FDWC shareholders announcing the details of the sale;
 Published in the High Country Shopper for at least three consecutive weeks; and
 Published in the Delta County Independent for at least three consecutive weeks.
15 Share Activation33
15.1 Charges
Shareholders owning shares recorded on the Company books as inactive shall pay the activation
fee before installation of a service connection commences. The activation fee shall be adjusted
monthly by the Board of Directors. A separate installation fee also shall be charged.
15.2 Fee Calculation
The activation fee includes a pro rata share for the cost of the original pipeline construction and
all system acquisition costs. The monthly adjustment includes the following on a pro rata basis:
1. Any system construction or development loans;
2. Improvements and upgrades to the water system infrastructure, including, but not
limited to the intake gallery, distribution line, Main Line, and water treatment plant
including filtration media; and
30
Adopted Oct. 14, 2020; made retroactive to Jan. 1, 2020.
31
32
Amended Apr. 13, 2006: further amended Feb. 10, 2011.
33
Adopted Jan. l, 2001; section amended Feb. 8, 2007; further amended Feb. 10, 2011.
11
3. Labor, mileage and machine rental required for implementation of (1) and (2).
15.3 Not Included
All new construction costs paid for by a grant and regular maintenance items shall not be
included in the activation fee. Examples of regular maintenance items are daily operations of the
treatment plant, basic pipeline repairs such as replacing damaged pipe, repairing or replacing air
vacs and regulators (provided a replaced regulator or air vac is the same grade), replacing a
valve, gauge or meter of the same grade.
16 High and Low Rates34

16.1 High Rate
A shareholder shall be charged the high rate for treated water delivery for the first 800 shares
owned because these shares create the greatest demand and the greatest maintenance.
16.2 Low Rate
Shareholders owning more than 800 shares shall be charged the low rate for treated water
delivery for those shares in excess of 800 shares.
16.3 Titling
To be charged the low rate, all shares must be titled the same name or names. Any difference in
share ownership shall require that the shares be treated as owned by different owners. Examples
of a certificate not being owned in the same manner include, but are not limited to husband and
wife, parent and son or daughter, siblings, or an individual and an entity wholly owned by the
individual, each of whom own a separate certificate. For shares to be owned “in the same
manner,” the relevant certificates must have both the husband’s and wife’s name on them, both
names of the siblings, etc.
17 Water Treatment35
For delivery of water all FDWC service connections must be in compliance with Colorado
Department of Public Health and Environment (CDPHE) standards and regulations.
18 Dole Tampering36
Notwithstanding the policy that only the Company shall install, remove or maintain doles on the
Main Line and Branch Lines, shareholders are deemed responsible for their own doles. Any
evidence of tampering with a dole shall be attributed to the shareholder who owns that dole. If
the Company finds evidence that a dole has been tampered with, it shall replace that dole with a
proper one and the shareholder owner of that service connection shall be charged for parts and
labor associated with the repair. In addition, the company may levy a fine against the
shareholder, and the shareholder must pay for any extra water they take. Penalty for any further
offense shall be determined by the Board.
34
Adopted Oct. 20, 2005; amended Feb. 10, 2011.
35
Adopted in its entirety Nov. 9, 2006; amended July 12, 2007; further amended February 12, 2009.
36
Adopted Feb. 4, 1998, amended Apr. 13, 2006.
12
19 Theft of Water37
Notwithstanding the “Dole Tampering” scenario described above, any attempt by any person or
persons, whether a shareholder or not, to take, use or otherwise appropriate FDWC water for any
purpose without FDWC’s express permission and without paying for the water shall be
considered theft of water. Upon discovery and at the discretion of the Company Board, such theft
shall be reported to the appropriate public safety officials with a complaint completed and filed.
FDWC will request the judicial system to prosecute any person accused of such theft of water to
the full extent the law allows. All costs associated with undoing the unlawful taking, using or
otherwise appropriating FDWC water without paying shall be borne by the person or persons
committing the unlawful act. Such costs include but are not limited to parts, labor, machine hire,
equipment rental, and legal or court costs. This rule specifically excludes delinquent payments
which are covered elsewhere in these Operating Rules.
20 Meters38
20.1 Reading, Allotment
Meters are read each month unless water or snow conditions prohibit. In such case, the meter
reading is prorated to cover the number of days between readings. Per Company bylaws, meter
users are, per 400 shares owned, allotted up to 10,000 gallons of water per month.
20.2 Overages39
Pursuant to the company’s bylaws, meter users are allocated 10,000 gallons per month for each
400 shares owned by the shareholder. An overage is a volume greater than that amount. An
overage can be the result of overuse by the shareholder or leakage in the shareholder’s private
line.
20.21 When there is an overage meter reading, the shareholder shall be notified as soon
as practical and will be charged a dollar amount per 1,000 gallons overage on the next
invoice. This amount is set by the Board of Directors annually and is listed under “Fees,
Fines, & Charges” on the company’s website. If a shareholder continues to use water in
excess of the allotted amount and does not appear to have attempted to rectify the
situation, the Board may consider various options to prevent future overages, such as
reducing the dole size, removing the meter, and/or additional fines up to $10,000.
20.22 When there is an overage meter reading, and the shareholder believes it to be the
result of a leak in the shareholder’s private line or other cause that neither the company
nor the shareholder was previously aware of, the shareholder shall notify the company
that s/he is working to repair the problem. The shareholder should keep the company
regularly apprised of the progress of the repair. When the shareholder believes the
problem has been resolved, the company’s Operator will visit the shareholder to confirm
the repair.
However, should the following regular meter reading show a continuation of the overage,
the company may assume that the shareholder failed to take the necessary steps to locate
and complete the repair and financial penalties for overuse and other sanctions will be
imposed.
37
Adopted February 12, 2009.
38
39
Amended Aug. 12, 2020.
13
20.3 Moving Meter
The Board of Directors has determined, pursuant to the Company bylaws, the FDWC delivery
system has grown to the point where relocating of metered doles has a negative impact on the
Company’s ability to deliver water throughout the system. Therefore, meters shall not be moved
to a different location after January 1, 2016 .
20.4 Tampering
Any tampering with a meter shall be treated in the same manner as dole tampering.
20.5 Ownership
Meters are owned by the Company.
21 Stock Tanks40
CDPHE regulations require that neither hoses or pipes be submerged in stock tanks or ponds.
Any hose or pipe used to fill stock tanks or ponds is to be secured at a minimum of three inches
above the maximum water level. The purpose of this regulation is to protect the water
distribution pipelines from contamination.
22 Wells41
CDPHE regulations prohibit shareholders with wells from making any cross connections from
the well or well water delivery lines to the FDWC Main Line, Branch Lines, or Private
Individual Lines connected to the FDWC Main Line or Branch Lines.
23 Encumbered Shares42
23.1 Notice on Shares
Each share certificate shall have the following statement on its face: “Notice to purchaser:
These shares may be subject to liens or encumbrances of which FDWC is unaware.”
23.2 Shareholder Duty
Upon purchasing or otherwise obtaining shares, each shareholder shall inform FDWC whether
the shares are encumbered with a lien or similar instrument and who holds such lien or
encumbrance with the lienholder’s address and phone number. Upon the satisfaction of the lien
or other encumbrance, the shareholder shall inform FDWC of the satisfaction with appropriate
documentation. Oral notice is not sufficient notice to the Company.
23.3 Transfers
If a shareholder or other party with proper authority requests a transfer of shares, and FDWC has
written notice that such shares are encumbered, FDWC shall require proof from the lienholder
that the lien or encumbrance has been satisfied or the terms of the encumbrance or lien permit
transfer of the shares. FDWC is not responsible for situations where it does not have written
notice of liens or encumbrances.
40
Adopted Jan. l, 1998; amended Feb. 10, 2011.
41
Adopted Nov. 8, 2002, amended Apr. 13. 2006; amended Feb. 10, 2011.
42
Section 22 adopted Feb. 10, 2011.
14
24 Realtor Notices43
To better inform those involved in real estate transactions that will affect FDWC, the Company
shall send a letter to major real estate companies and realtor associations in Montrose and Delta
Counties and the Delta County and Montrose County Planning Departments explaining
Company limitations and requirements to prospective landowners or developers. This letter will
be sent every two years.
25 Employee Training, Compensation44

25.1 State Requirements
The State of Colorado requires a minimum number of training units to maintain certain levels of
certification to operate water systems. In addition, other seminars may prove to be pertinent to
improved operation of our system.
25.2 Compensation
The Operator in Responsible Charge (ORC) and other employees shall be compensated for
attending Colorado Rural Water Association meetings and other educational seminars required
for certification. Employees will be paid at their regular hourly rate for travel time and
attendance time at training and/or certification seminars, and shall also be paid for any meals or
overnight lodging associated with these seminars. Reimbursement for meals and lodging is
conditioned on presentation of receipts. At its annual budget meeting, the Board will determine
the employees’ maximum lodging and meal per diem compensation. Mileage for these seminars
and meetings shall be paid at the current IRS mileage reimbursement rate for business. Seminar
fees and costs shall be reimbursed.
25.3 Board of Directors Training
In the event the Board determines the Company would benefit, the Company shall pay the
seminar fees for a Director to attend. The Company shall not pay hourly compensation, per diem
or mileage to a Director for seminar attendance.
25.4 Mileage
Mileage reimbursement for pipeline system operations and maintenance is ten cents more than
the IRS mileage reimbursement rate for business and shall be adjusted each January 1, or at any
other date when the IRS changes the rate. This higher mileage rate is due to the additional costs
FDWC maintenance employees incur with the four wheel drive vehicles required.
25.5 Overtime
Hourly maintenance employees are paid overtime at the rate of time and a half for work
performed from 6:00 p.m. to 6:00 a.m. Monday through Saturday, and all day Sundays,
Memorial Day, Fourth of July, Labor Day, Thanksgiving, Christmas and New Year’s Day. One
filter cleaning per day and other routine daily maintenance at the water treatment plant will not
be paid at the overtime rate on any day. Any additional filter cleaning of more than one per day,
if it occurs between 6:00 pm and 6:00 am, will be paid as overtime.
43
Adopted Apr. 13, 2006; amended Feb. 10, 2011.
44
15
26 Required Maintenance45
It is the responsibility of the Operator in Responsible Charge (ORC) to ensure that the following
operations shall be performed as stated in Sections 26.1 to 26.7.
26.1 Doles; Air Vacs
All doles and air vacs shall be checked at least yearly.
26.2 Regulators
All regulators shall be checked at least twice a year.
26.3 Can Markers
All cans shall be marked with steel T-posts with tops painted fluorescent orange and the post
knobs are to face the can.
26.4 Check Valves
All service connections shall have check valves.
26.5 Intake Area
Work on the Crystal Creek intake area to facilitate flow into the infiltration gallery shall be
performed at least semi-annually. The intake area line shall be flushed at least semi-annually.
The intake pipe shall be blown out at least annually.
26.6
Locked Cans
Locked FDWC and CDWC cans shall be checked every three months.
26.7 CDWC Service Connections
FDWC shall check CDWC service connections to the Main Line at least once a year.
27 Public Water System Monitoring Plan46

As required by the CDPHE Primary Drinking Water Regulations, the company has completed
and will maintain a Public Water System Monitoring Plan, using CDPHE’s template, that
includes all of the information listed in the Primary Drinking Water Regulations. The plan will
be updated as needed.
28 Water Quality Testing47

28.1 Operator Duties
The Operator in Responsible Charge (ORC) is responsible for all state required water quality
testing and for submitting required reports to the proper authorities. Water quality testing and
reporting can be performed by other operators or board members under the supervision of the
ORC. The ORC shall inform the Board at each regular meeting of all tests conducted, their
results, and whether the results were submitted to the proper authorities. The ORC at each
regular Board meeting shall report on which upcoming tests are required. At the annual budget
meeting, the ORC will inform the Board of the tests scheduled for the coming year and their
estimated cost.
45
46
Amended March 2017
47
16
28.2 Tests Required
Water quality testing required by CDPHE is provided at the beginning of each calendar year by
CDPHE. All water quality testing listed in the annual FDWC Monitoring Schedule will be
completed during the collection periods specified in the schedule.
28.3 Documentation Required
Hard copies of all documents provided to testing laboratories and/or accompanying water
samples sent to laboratories shall be retained in the ORC’s files at the water treatment plant.
Hard copies of all test results shall also be retained in the ORC’s files at the water treatment
plant.
29 Consumer Confidence Report48

29.1 CDPHE Requirement
The Consumer Confidence Report (CCR) is an annual CDPHE required filing. It includes
information regarding the system’s water quality based on sampling data previously submitted
by the Operator in Responsible Charge (ORC) and any compliance violations.
29.2Procedures
The following summarizes procedures to be followed when completing this annual report:
1. Assign a Board member to complete the CCR, provided by CDPHE, with, if needed,
input and assistance from the ORC.
2. The Board member shall review the CCR to verify the accuracy of the information
included and update as the CCR if necessary, and complete all required sections
including the Certificate of Delivery Form.
3. Deliver the completed CCR to all shareholders by the method(s) required by CDPHE.
4. Mail a hard copy of the CCR, along with all attachments, including the Certificate of
Delivery form, to CDPHE.
5. Copies of the completed CCR, along with all attachments, shall be retained in the
company files at the water treatment plant.
6. All delivery must be accomplished by the date specified by CDHPE in the annual
Monitoring Schedule.
30 Annual Meeting Procedures49

30.1 Schedule Meeting
Each November the Board shall set the date, time and place of the Annual Meeting of
Shareholders, which will be held in the first quarter of the year.
30.2 Budget
The Board of Directors shall adopt the following year’s budget no later than one month prior to
the Annual Shareholder Meeting.
48
Amended March 2017
49
17
30.3 Notice
The Board shall:
1. Prepare the meeting notice and publish it in the High Country Shopper or similar
publication no less than ten days and no more than thirty days before the Annual
Meeting; the notice shall be included on the Company information line;
2. Prepare the meeting notice, proxy statement, budget, current year financial statements,
fines and fees, and a shareholder letter, and mail to shareholders not less than ten days or
more than thirty days before the Annual Meeting.
30.4 Documents for Meeting
Documents provided at the meeting for shareholders shall include current year financial
statements, information normally mailed to shareholders, and information deemed by the Board
as appropriate, such as project plans or updates of ongoing projects.
31 Cattlemen’s Domestic Water Company50

31.1 Water Quality
Fruitland Domestic Water Company (FDWC) has no responsibility to provide treated or filtered
water to Cattlemen’s Domestic Water Company (CDWC). It is CDWC’s responsibility to
comply with all CDPHE water quality standards and regulations it is subject to.
31.2 Authority
Pursuant to state law and regulations and the court’s order in Fruitland Domestic Water
Company vs. Cattlemen’s Ditch Company, Case Number 03-CV-147, FDWC has full authority
to regulate all service connections to its Main Line and to prevent any cross-connections that
may affect the water in the Main Line. Additionally, FDWC has no obligation to provide treated
water to CDWC.
31.3 Service Connections
31.3.1 Permitted Locations.
All CDWC service connections shall be located downstream from the Crystal Creek intake area
beginning at (38° 33' 12.2" N, 107° 30' 60" W) and before the original FDWC Filter House &
Regulator Pit (38° 38' 32.70" N, 107° 37' 27.90" W). All CDWC service connections to the
FDWC Main Line shall be authorized, installed, doled and maintained by FDWC. The location
of any service connection to the Main Line shall be inspected and approved by the Company.
31.3.2 Prohibited Location
While the contract between FDWC and CDWC states that CDWC service connections may be
located between the Crystal Creek intake area and the former storage tank of the Cathedral
Domestic Water Company, which is located a few hundred yards west of the original FDWC
Filter House & Regulator Pit (38° 38' 32.50" N, 107° 37' 28.96" W), this section of the FDWC
Main Line between these two latter points is on a significant incline. It has been determined by
FDWC that no service connections for either CDWC or FDWC shall be made on said pipeline
section to preclude any interruption of water flow or pressure on Fruitland Mesa.
50
Adopted Mar. 15, 2006; Section 29 expanded and adopted Feb. 10, 2011.
18
31.3.3 Service Requests
All requests for CDWC service connections, disconnections or changes shall be submitted in
writing to FDWC by an authorized CDWC Board member or officer. CDWC shareholder name,
address, contact information, amount of water to be connected and specific location of requested
service connection shall be provided in the request.
31.3.4 Accessibility
Accessibility for installation and maintenance will be considered in determining a proper
location for a service connection. If, in the professional judgment of the FDWC Board, a
proposed location is not reasonably accessible in all seasons, it shall not be approved or
responsibility for the costs to access the location will be that of the CDWC shareholder(s)
requesting the service connection. If, in the professional judgment of the FDWC Board, an
existing service connection to the Main Line is deemed not reasonably accessible in all seasons,
responsibility for the costs to access the location will be the CDWC shareholder(s) currently
served by the connection. For example, if a water delivery problem develops at a service
connection determined to be not reasonably accessible in winter and it is necessary to utilize
heavy equipment to reach the service connection site, all associated costs will be charged to the
affected CDWC shareholder(s).
31.3.5 Installation Limits
FDWC only shall install any CDWC service connection at the existing FDWC Main Line.
FDWC shall not install or maintain any CDWC service connection made on a CDWC Branch
Line.
31.4 Billing
31.4.1 Multiple Users
The cost of a CDWC service connection installation, disconnection, change, repair, replacement
or maintenance shall be billed to CDWC when a service connection provides water to multiple
CDWC shareholders (CDWC Branch Line connection). CDWC shall be billed directly so
CDWC may pro-rate the costs to each of the CDWC shareholders with individual connections to
the CDWC Branch Line.
31.4.2 Single User
The cost of a CDWC service connection installation, disconnection, change, repair, replacement
or maintenance of the Main Line service connection shall be billed to the appropriate individual
CDWC shareholder with a service connection (CDWC Private Individual Line connection).
31.5 Delinquency
31.5.1 Individual
In the event a CDWC shareholder becomes delinquent in paying his or her account, FDWC shall
notify both CDWC and the delinquent CDWC shareholder. If the CDWC shareholder remains
delinquent for 90 days, FDWC shall shut off water delivery to the CDWC delinquent
shareholder’s Private Individual Line connected to the FDWC Main Line or the CDWC Branch
Line to which the delinquent shareholder’s Private Individual Line is connected. The cost of the
water shut-off and any delinquency charges, including, but not limited to delinquency notice
payment fees, late payment fees, interest on all past due amounts, collection fees and
administration fees shall be paid to FDWC by the CDWC shareholder before water delivery shall
be restored.
19
31.5.2 CDWC
In the event CDWC becomes delinquent in paying its account, FDWC shall notify CDWC of
said delinquency. If CDWC remains delinquent for 90 days, FDWC shall shut off water delivery
to the CDWC service connection to the FDWC Main Line where work was performed and billed
for. The cost of the water shut-off and any delinquency charges including but not limited to
delinquency notice payment fees, late payment fees, interest on all past due amounts and
collection fees shall be paid to FDWC by CDWC before water delivery shall be restored.
31.6 Stock Tanks, Ponds
CDPHE regulations require neither hoses nor pipes be submerged in stock tanks or ponds. Any
hose or pipe used to fill stock tanks or ponds shall be secured at a minimum of three inches
above the maximum water level. The purpose of this regulation is to protect both CDWC and
FDWC pipelines from contamination.
31.7 Wells
CDPHE regulations prohibit both CDWC and FDWC shareholders with wells from making any
cross connections from the well or well water delivery lines to a CDWC Branch Line or CDWC
Private Individual Line connected to the FDWC Main Line.
31.8 Maintenance
31.8.1 Payment Responsibility
CDWC or an individual CDWC shareholder shall pay for the repair, replacement and
maintenance of the Main Line service connection. FDWC shall not be responsible for any
maintenance on any CDWC lines beyond the FDWC authorized service connection.
31.8.2 Periodic Checks
FDWC shall check all CDWC service connections to the FDWC Main Line at least once each
year.
31.8.3 Termination
If a CDWC service connection is permanently terminated, FDWC shall elect to leave the dole
can in place or remove it. If left in place, FDWC shall install a lock on the can lid and check it
every three months to determine no tampering has taken place. CDWC shareholders shall pay
the costs associated with locking the can.
31.9 Dole Tampering
Notwithstanding the Rule that only FDWC shall install or remove or maintain service
connections on the FDWC Main Line, CDWC shareholders are deemed responsible for their
doles and any evidence of tampering with a dole at a CDWC service connection to the FDWC
Main Line shall be attributed to the CDWC shareholder(s) who own(s) that dole. If FDWC finds
evidence of such tampering, it shall notify the CDWC Board of Directors and shall replace said
dole with a proper one. The responsible CDWC shareholder(s) shall be billed for all costs
associated with the repair (parts, labor, mileage, penalties, fines and machine hire). Should a
CDWC Branch Line connection be tampered with, costs associated with repair shall be billed to
CDWC.
20
32 Company Owned Water Shares51
No Company owned FDWC shares shall be sold, but may be leased. Company owned shares
may be leased to shareholders on a month to month basis, and the lease may be terminated at any
time by either party with 10 days written notice. Company owned shares in any other water
company shall not be sold or leased unless they are exchanged for FDWC shares representing an
equal amount of water.
33 Lost Share Certificates52

Shares cannot be transferred without the shareholder presenting the share certificate to the
Company. In the event a certificate is lost, the shareholder shall notify FDWC and submit a Lost
Share Certificate Affidavit and request a replacement certificate. Shareholders shall pay the cost
of issuing replacement certificates.
34 Waivers53
The Board of Directors may waive or modify these Rules in specific cases and subject to the
Bylaws and Articles of Incorporation.
51
52
53
21
Appendix A: Special Board Meeting Notice Example
Notice of Special Meeting of the Board of Directors

Fruitland Domestic Water Company
To: [name & address of Director]

You are hereby notified that a special meeting of the Board of Directors of the Fruitland
Domestic Water Company has been called by the President of the Company, to be held at
[location, address] on [day], the [XXth] day of [month], [year], at [time], to consider the
question of [purpose of meeting].
[Date]
[name], Secretary
1
Appendix B: Conflict of Interest Policy
General Statement of Principles

It is the general policy of the Fruitland Domestic Water Company, a Colorado not-for-profit
corporation, to adhere to the highest standards of ethics in every action taken by the Board of
Directors and Committees of the Board, and the staff.
Directors are fiduciaries of the Company and have special responsibilities.
Adherence to such standards requires that each person disclose any conflicts of interest and
where appropriate, recuse him- or herself from debate and decision making concerning the
subject matter in question as defined below.
Board of Directors
Members of the Board have a special responsibility as Directors of a non-profit corporation.
Colorado statutes guide their duty as fiduciaries. This is a very high standard of care shared with
attorneys and trustees, among others.
These fiduciary duties and responsibilities include:
1. A duty of loyalty to the Company. The interests of the Company are always superior to
the personal interests of the Directors.
2. The Board of Directors, and, therefore, each Director, is responsible for the day-to-day
operations of the Company. The Board hires the operators. The Board sets policy and oversees
the operations of the Company. The Board, and its individual Directors, are responsible for the
ethics of the Company and must be reasonably informed, and when informed of a breach of
ethics, must act to correct the situation. Part of the Board’s responsibility in this regard is to
ensure the staff understands the high ethical standards expected of them.
3. Each Director has a duty to inform themselves of the subject matter of each decision
required of the Board.
4. Each Director has a duty to act as an ordinary prudent man or woman in making
decisions. This duty implies the Director acts rationally in order to protect and advance the
integrity of the Company and further its goals and principles in a reasonable manner.
5. Each Director must exercise independent judgment.
6. Each Director may rely, in his or her decision making, on the judgment of qualified
professionals, experts and staff members. The Directors must select these persons with the duty
of care otherwise required of each Director, and from time to time review the opinions and
actions of these persons with a similar duty of care.
7. Each Director has a duty to take the time necessary to understand the subject matter of
each decision.
8. Each Director must act in good faith.
9. Each Director must avoid perceived as well as actual conflicts of interest.
1
Conflict of Interest
A conflict of interest occurs when a person has an economic or family interest in the subject
matter. Because of a Director’s fiduciary responsibilities, he or she has a duty to be reasonably
informed of potential conflicts of interest.
A direct economic interest is relatively easy to identify. An indirect economic interest (such as
an investment in a mutual fund owning individual securities with an interest in a matter before
the Board) may or may not demand recusal of the Director depending on the size and remoteness
of the interest.
A family interest is generally limited to parents, stepparents, children, spouses, and spouse’s
parents and children. These people may be referred to as “immediate family”. Each Director
must determine whether other family members are so close to the Director as to be considered
“immediate family”. It is possible the Director may be so close to a friend that the friend may be
considered in the nature of “immediate family”.
Determining whether there is a conflict situation requires the Director to establish whether it is
an objective test or a subjective test. Direct economic interest or immediate families are most
likely objective tests. Indirect economic interests or family (or even friendship) relationships are
subjective and require the Director to determine whether these interests are substantial enough to
affect the Director’s judgment or create a perceived or actual conflict of interest.
Recusal and Abstention
When a Director determines that he or she has any perceived or actual conflict of interest
regardless of remoteness, he or she must disclose that conflict to the Board of Directors. A
conflict of interest based on direct economic interest or an immediate family interest requires the
Director to recuse him- or herself from voting on the subject matter and to not participate in the
debate except as any member of the Company may as determined by the rules of debate.
A lesser conflict of interest may require the Director to recuse him- or herself from voting or
debate after all considerations are analyzed. The Director is advised to solicit the opinions of
other Board members on this matter.
Any conflict of interest and the reasons therefor, as well as whether the Director has recused
him- or herself, shall be recorded in the Board Meeting minutes.
The fiduciary responsibilities of Board members are legal requirements as well as ethical
considerations. Conflict of interest issues are blended into many of these duties as are
requirements that Directors inform themselves of the issues and act in good faith. It is possible
that a decision required by the Board may not raise a conflict issue, but a Director may not have
been able to act in an informed manner, or not be able to fulfill another fiduciary duty, and in
those cases, it may be advisable for the Director to abstain from the vote.
Operators
Operators are not fiduciaries, but the duties required of fiduciaries provide, at the least,
guidelines for the operators. Should the operators not act in good faith, disclose and avoid
conflicts of interest, act in the Company’s interest rather than their own, and inform themselves
in decision making? The operators are not responsible for the entire Company’s day-to-day
operations, but they are responsible for their own duties, and the duties of anyone they supervise.
Committees
2
Board committees and Directors sitting on other committees of the Company operate under the
rules required of fiduciaries.
Conclusion
The Fruitland Domestic Water Company is a Company in which the highest ethical standards are
required of the Board of Directors, all committees, and the staff. Each person must continually
examine their personal ethics so to aspire to and achieve these goals. Directors must be
especially aware of the legal requirements of their positions. Notwithstanding legal
requirements, each person must examine their commitment to the Company’s goals and mission.

2021 FDWC Operatingrules

Uploaded by

Copyright:

Available Formats

You might also like

2021 FDWC Operatingrules

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2021 FDWC Operatingrules

Uploaded by

Copyright:

Available Formats

Fruitland Domestic

9 Nonshareholder Request for Service26

10 Private Individual Line27

16 High and Low Rates34

25 Employee Training, Compensation44

27 Public Water System Monitoring Plan46

28 Water Quality Testing47

29 Consumer Confidence Report48

30 Annual Meeting Procedures49

31 Cattlemen’s Domestic Water Company50

33 Lost Share Certificates52

Notice of Special Meeting of the Board of Directors

To: [name & address of Director]

General Statement of Principles

You might also like