Thunderbird water

and

Sanitation District

Rules and Regulations

Adopted: January 2010

P.O. Box 157

Sedalia, CO 80135

Table of Contents

Articles

ARTICLE 1. PURPOSE OF RULES AND REGULATIONS 1

ARTICLE 2. DESCRIPTION OF THE DISTRICT 3

ARTICLE 3. OWNERSHIP AND OPERATION OF FACILITIES 4

ARTICLE 4. CONDITIONS OF USE OF WATER SYSTEMS 6

ARTICLE 5. SERVICE INCLUSION AND EXTENSION POLICIES 9

ARTICLE 6. PERMITTING FOR INDIVIDUAL SERVICE 15

ARTICLE 7. WATER SYSTEMS 17

ARTICLE 8. FEES 20

ARTICLE 9. INSPECTIONS AND ENFORCEMENT OF WATER REGULATIONS. 23

ARTICLE 10. HEARING AND APPEAL PROCEDURES 26

EXHIBITS

EXHIBIT A - SCHEDULE OF RATES/CHARGES/FEES EFFECTIVE JANUARY 2006 28

EXHIBIT B - PERMITS 31

EXHIBIT C - DISTRICT POLICIES RESOLUTIONS 35

EXHIBIT D - DEFINITIONS 36

EXHIBIT E - WILL SERVE” LETTER 40

EXHIBIT F - FACILITIES CONVEYANCE AGREEMENT 42

ARTICLE 1. PURPOSE OF RULES AND REGULATIONS

1.1 GENERAL PURPOSE AND AUTHORITY. The purpose of these Rules and Regulations is to facilitate the construction, management, operation of the water system, facilities and improvements of the Thunderbird Water & Sanitation District, including additions, extensions and connections thereto by setting forth uniform requirements for all direct and indirect users of the District’s water system facilities and improvements. The District is a quasi-municipal corporation and political subdivision of the State of Colorado and may exercise all of the rights, powers and authority which is expressly granted or implied by law for carrying out the objectives and purposes of the District.

These Rules and Regulations are promulgated and adopted pursuant to the provisions of Colorado Revised Statutes § 32-1-1001(1)(m), as amended from time to time. The Board of the District has adopted these Rules and Regulations to assist the District in implementing the decisions and policies of the Board. It is intended that any person desiring to transact business with the District as an owner/developer of property or as an customer/owner within the District, shall comply with these Rules and Regulations. The District shall provide hard copies (i.e., printed or electronic media) of these Rules and Regulations, for a fee, to any person who requests them. Except as otherwise provided herein, no person shall be exempt from the application of these Rules and Regulations.

1.2 PUBLIC HEALTH, SAFETY AND WELFARE. It is hereby declared that the Rules and Regulations hereinafter set forth serve a public purpose and are necessary for the protection of the health, safety, prosperity, security, and general welfare of the residents and property owners of the District.

1.3 SCOPE OF RULES AND REGULATIONS. These Rules and Regulations shall apply to the operation of the District and in particular shall regulate the rights of third parties with respect to the facilities and services furnished by the District. Any and all prior Rules and Regulations of the District are specifically superseded hereby.

1.4 RULES OF CONSTRUCTION. These Rules and Regulations of the District are promulgated pursuant to statute in the exercise of the Board's discretion to facilitate the provision of domestic potable water service. It is intended that these Rules and Regulations shall be liberally construed to affect the general purposes set forth herein, and that each and every part hereof is separate and distinct from all other parts. Nothing contained herein shall be so construed as to prejudice or affect the right of the District to secure the full benefit and protection of any law now in effect or any law which may subsequently be enacted by the Colorado General Assembly pertaining to the affairs of the District. The Board reserves the right to construe any provision hereof in its sole discretion in order to effectuate lawful purposes of the District and to treat all persons or property subject to these Rules and Regulations in a reasonable and non-discriminatory manner.

These Rules and Regulations must be complied with by all persons absent receipt of a proper written waiver approved by the Board. No person shall obtain, by virtue of these Rules and Regulations, any right or cause of action against the District or its management arising as a result of the enforcement or lack of enforcement of the Rules and Regulations by the District.

1.5 CONFLICTS. In case of any conflict between any provision of these Rules and Regulations, the District shall be entitled to resolve such conflict in its own favor at the District's sole discretion, it being the intention of the Board that these Rules and Regulations shall be construed or interpreted by the District in such manner so as to maximize the ability of the District to govern and manage the District and its facilities.

1.6 AMENDMENTS/MODIFICATIONS/WAIVERS. The Board shall retain the power to amend these Rules and Regulations as it deems appropriate from time to time by Resolution or other formal action of the Board. The District may waive the application of its Rules and Regulations to its own activities, or to the activities of others. The Board shall have the sole authority to waive, suspend or modify these Rules and Regulations. No refusal, failure or omission of the Board or its agents to apply or enforce these Rules and Regulations shall be construed as modifying or waving any provision of these Rules and Regulations. Any person claiming the benefit of such waiver, suspension or modification shall be required to obtain a written waiver signed by the District’s President or other Board Members. Such waiver shall not be deemed an amendment of the Rules and Regulations. No waiver shall be deemed a continuing waiver.

1.7 DEFINITIONS FOR TERMS USED IN RULES AND REGULATIONS. Unless the context specifically states otherwise, the meaning of terms used herein shall be as set forth in Exhibit D, attached hereto.

1.8 GENERAL POLICIES AND PROCEDURES. The District has set forth herein its Rules and Regulations and policies for the provision of public services and facilities, and for management and operation of the District. From time to time, the Board of Directors may adopt or implement policies or procedures regarding the provision of water service and facilities. The Board will endeavor to adopt such policies by Resolution and attach copies of such Resolutions to these Rules and Regulations in Exhibit C. There is no guarantee, however, that Exhibit C will contain all District policies and procedures in effect at any given time. Persons with questions concerning the nature and extent of the District’s policies and procedures may submit inquires to the Board or to such other person as the Board may from time to time designate to answer such inquiries.

To the extent there is a conflict between any policy found in minutes of Board meetings which pre-date any subsequent Resolution of the Board, the Resolution shall be deemed to supersede the minutes unless the Board determines otherwise after such conflict is brought to the attention of the Board. To the extent policies found in minutes of meetings post-date Resolutions of the District and conflict with such Resolutions, the policy stated in the minutes shall be binding unless the Board determines otherwise after such conflict is brought to the attention of the Board. Except as otherwise provided by law, the District shall have the right, at all times, to repeal and re-enact Resolutions of the Board.

ARTICLE 2. DESCRIPTION OF THE DISTRICT

2.1 PURPOSE OF THE DISTRICT. The Thunderbird Water & Sanitation District was organized pursuant to what is now known as the Special District Act. Section 32-1-101 et seq., C.R.S for the purpose of providing water and sanitary service to the extent provided by law; provided, however, the District has no sanitary sewer facilities and does not provide sanitary sewer service at this time. The District is a quasi-municipal corporation and political subdivision of the State of Colorado, and as such, exercises certain governmental powers for the benefit of its constituents. By way of explanation and not limitation, the District has power to tax taxable real and personal property located within its boundaries and to impose fees for services available from or provided by the District.

2.2 THE GOVERNING BODY. The District is governed by an elected Board of Directors. The Board consists of five individuals who, as residents and/or property owners within the District, are qualified to serve as directors. Directors are generally elected to four-year terms at elections held in May of even numbered years. The Board elects from its membership a chairman of the Board, and president of the District, a vice-president, a treasurer and a secretary, who may, but need not be a member of the Board. The secretary and treasurer may be one person, but if, such is the case, he shall be a member of the Board.

2.3 DISTRICT BOARD MEETINGS. Meetings of the Board of Directors are subject to the "Sunshine Law" of the State of Colorado and are open to the public. From time to time the Board may convene an “Executive Session” to receive legal advice or to discuss ongoing contract negotiations, litigation, personnel matters or other legally privileged matters. Executive Sessions are closed to the public. Written minutes of meetings are prepared for each meeting and, after approval by the Board, are available for public inspection. The District does not attempt to maintain verbatim minutes of its meetings.

2.4 DISTRICT SERVICES AND FACILITIES. The District provides potable water services to persons and property located within the District’s boundaries.

2.5 SUBDIVISION AND ZONING REFERRALS. The District has been identified as a "referral

agency" from whom Douglas County from time to time solicits comments on subdivision, zoning, platting and other land use applications affecting real property within the District’s boundaries and pending before the County. The Douglas County Commissioners control land use decisions within the boundaries of the District to the extent permitted by law.

2.6 RATES, FEES, TOLLS AND CHARGES. The District has power to charge various rates, fees, tolls, charges and penalties and may impose taxes, for services and facilities provided by the District, as specified in Article 8, Fees. In most cases the failure of the property owner to pay such fees creates a lien on the affected property that may be foreclosed by the District in the same manner as provided by the laws of this state for the foreclosure of mechanics liens, and as more particularly referred to in Article 9.6, District Rights. The District exercises such power for the overall benefit of the District and reserves the right to exercise its discretion on a case-by-case basis in determining whether to foreclose on the lien. The District may, from time to time, seek input from the public on proposed changes to its rates, fees, tolls, charges and penalties. Exhibit A contains the schedule of the District's fees, as the same may be amended, from time to time by resolution of the Board.

2.7 UTILITY SERVICES. Electric, natural gas, telephone and cable television services are available within the District and are provided by various commercial companies. Fire protection is provided by the West Douglas Fire Protection District.

ARTICLE 3. OWNERSHIP AND OPERATION OF FACILITIES

3.1 DISTRICT FACILITIES. All water mains and water storage, collection, transmission, treatment, and distribution facilities together with all appurtenant water and property rights that have been constructed or acquired by the District and accepted for operation and maintenance by the District are the property of the District unless an agreement with the person or entity which constructed them expressly provides otherwise. This rule shall control ownership whether the main lines or water facilities are constructed or financed by the District or by any other person.

3.2 SERVICE LINES. Any service line and its appurtenances, including, but not limited to, the pipe from the outlet of the meter to the building or place of service, pressure reducing valve, control valve, and meter pit, shall be the property of the customer/owner and the customer/owner shall be responsible for the maintenance and repair thereof, except as provided in Article 3.3 below. The customer/owner shall be responsible for the initial installation of the entire service line and appurtenances including the tap to the main line and installation of the curb stop, however as described in Article 3.3 below, the District will be responsible for the maintenance and repair of the portion of the service line from the main to and including the meter. The customer/owner's ownership of the service line and appurtenances, shall not entitle the customer/owner to make unauthorized uses, as specified in Article 7, Water Systems, of the District's systems. All uses of the service line and appurtenances, including the meter, at any time after the initial connection to the District system shall be subject to these Rules and Regulations.

3.3 LIMITED DISTRICT MAINTENANCE OF SERVICE LINES AND APPURTENANCES. Notwithstanding Article 3.2, the meter, all service lines and appurtenances, (excluding the meter pit), from the meter pit to the water main line after installation and connection to the District’s system shall be maintained by the District pursuant to Article 7.1, Water Service Lines. The District will, at its costs, maintain or cause to be maintained, against ordinary wear and tear, all portions of service lines between the main and the meter, and appurtenances, including the meter (but excluding the meter pit), as hereinafter and only as hereinafter provided: