OLGA WATER USERS INC.

POLICY

Regarding

CONDITIONS OF SERVICE

Governing the Use and Supply of Water

I. gENERAL CONDITIONS AND RESTRICTIONS

1. Conditions of Service as a Contract

a. Agreement for Service

These Conditions of Service (C/S) are a part of every contract or agreement for service, whether written, oral or implied between Olga Water Users (OWU) and each water user in the OWU system. OWU will enforce these C/S with respect to the water user.

These C/S have been adopted by the Board of Directors of the OWU and may be modified from time to time and such modifications will apply to all users. The continuance of the water user to take water or continue membership after amendment or change of these C/S shall be deemed an acceptance of such amendment or change.

Design and Construction Standards, Application for Membership/Water Service and Agreement to Conditions of Service, the Bylaws of OWU, applicable San Juan County and State of Washington laws and codes, the Cross-Connection Control Policy, and all other policies of OWU shall be considered a part of these C/S.

These C/S are assigned to the property for which service is provided. No transfer of membership shall be conducted until conformance to these C/S is assured. No service will be provided except to rightful members of OWU.

b. Statement of Agents

No single agent and/or employee of OWU has the authority to make any promise, agreement, or representation inconsistent with the provisions of these C/S or to waive their application to any water user.

c. Purpose

These C/S are designed to facilitate the implementation of OWU policies regarding the conditions and methods of use of water service by the OWU customer. In addition, they define the conditions and method of the supply of water by OWU as well as the construction, inspection and billing service furnished by OWU. They are designed to ensure adequate design, construction, management, maintenance and operation practices so that OWU can provide high quality drinking water in a reliable manner and in a quantity suitable for intended use. If any section, paragraph, subdivision, clause, phrase, or provision of these C/S shall be judged invalid or held unconstitutional, it shall not affect the validity of these C/S as a whole or any part or provision thereof other than the part so decided to be invalid or unconstitutional.

d. Criteria

Conditions, practices, materials, and specifications not expressly set down in these C/S shall be Standard, the American Public Works Association (APWA) Standard Construction Practices, the OWU Bylaws, or the American Water Works Association (AWWA) Standards whichever is most restrictive.

2. Definitions

a. Applicant – The owner of property of his/her agent making a written request for any service to be provided by OWU.

b. Customer – The owner of the premises being served who is legally responsible for payment of charges to OWU for water or other services furnished by OWU.

c. Occupant – The person actually in possession or control of any premises or part thereof.

d. Owner – The person who has legal or equitable title to any premises. The owner is considered by OWU to be responsible for all actions of tenants, contractors, or other persons or entities occurring on the property. The owner is the party required to ensure compliance with these C/S. A properly identified and authorized agent of the owner representing the owner on any matter is considered to legally represent the owner in all matters before OWU unless the owner specifically distinguishes the agent’s area of responsibility. In these C/S the term “owner” is also meant to include the term “owner’s agent”. OWU may require a written declaration from the owner designating the agent.

e. Contractor – The owner, person, or firm hired by the owner to install maintain, or alter any facilities on any premises including the water service line.

f. Premises/ERU (Equivalent Residential Unit) – The integral property or area, including improvements thereon, to which water service is or will be provided. This is typically a single tax parcel, but may also be considered, at OWU’s sole discretion, as a group of properties operated as a related, common, and logical entity.

g. Water Supply – That part of the water system between and including the water source and the end of OWU’s service connection at the downstream joint of the meter setting.

h. Distribution Main – A pipe owned by OWU or under its effective control and capable of supplying more than one (1) customer.

i. Service Connection – The pipe, valves, and all required appurtenances used to carry water between the distribution main and the downstream joint of the meter setting of the premises to be served.

j. Service Line – The pipe, valves, and all required appurtenances used to carry water between the downstream joint of the meter setting to the premises.

k. Governing Rules – The aggregate body of codes, regulations, policy, and law identified in I.1.a and I.1.d above.

l. Corp Stop – The point where the Service Line T’s off of the Main. This is the separation point of ownership.

3. Work to be performed

a. OWU Personnel - No persons other than OWU personnel or persons specifically authorized by OWU shall be permitted to tap or make a service connection with any distribution main. OWU will do no plumbing of service lines except under emergency conditions as determined by OWU. All costs of such plumbing or any damage done to customer property by OWU personnel in responding to a service line emergency shall be the responsibility of the owner. OWU may require the owner to complete the repair beyond OWU’s emergency action.

b. Contractor - The contractor will attach the service line to the outlet of the meter setter, lay the water service line into the house, and attach it to the house plumbing. Such work shall not be performed until a hook-up has been arranged with OWU.

4. Supply of Water

a. Quantity and Pressure - OWU endeavors to maintain an adequate quantity of water at a reasonable pressure at all times. OWU reserves the right at any time, without notice, to shut off the water in its mains for the purpose of making repairs, extensions, or for other necessary purposes. It is expressly understood that OWU shall not be liable for a deficiency or failure in the supply of water or the pressure thereof for any cause whatsoever, or for any damage caused thereby, or for the bursting or breaking of any main or service line or any direct or indirect attachment to OWU property. All customers having installations upon customer’s premises or on the property of others that depend upon continuous pressure in OWU pipes are cautioned against danger of rupture or lack or pressure. All damage shall be borne exclusively by the customer. Customer-owned pressure regulators are strongly recommended on service lines.

b. Quality - OWU endeavors to maintain water quality exceeding minimum state sanitary standards in its mains at all times. In the interest of public health, OWU will not knowingly permit its mains or services to be connected with any service line or piping which is connected to any source of water supply not approved by the DOH unless protected by approved means. OWU will also not knowingly permit its mains or services to be connected in any way to any piping, tank, vat, or other apparatus, which contains liquids, chemicals, or any other matter, which might flow back into OWU’s services or mains and consequently endanger or compromise the water supply. Without limiting the foregoing, OWU shall not knowingly permit any connection that does not comply with approved Cross-Connection Control rules as defined by the Department of Health.

c. Failure and Emergencies - OWU reserves the right, in its discretion, in periods of drought or emergency or when deemed essential to the protection of the public health, safety, and welfare, to restrict, curtail, or prohibit the use of water for secondary purposes such as sprinkling, car washing, or filling swimming pools and shall have the right to fix the hours and periods when water may be used for such purposes.

d. Accident or Repairs - OWU may at any time shut off the water in case of accident or for the purpose of making connections, alterations, repairs, changes, or for other reasons and may restrict the use of water to reserve a sufficient supply for public fire service or other emergencies whenever the public welfare may require it. OWU, its employees, agents and/or officers shall not be liable for any damage, which may result to any person, property, or premises because of such shut-off, even when no notice is given. OWU will, as far as circumstances permit, notify customers to be affected by any scheduled interruptions in the water service.

5. Inspectors

Properly identified employees of OWU or OWU’s authorized and properly identified agents must be permitted to enter upon any premises where service is provided during reasonable times for the purposes of installing, reading, removing, or repairing meters or for the inspection of the service line or to insure that water service is being used as represented upon the water application.

6. Territorial Limits for the Supply of Water

a. Boundaries - OWU’s authority to provide water is limited to the service area as described in the Bylaws and by the Department of Health. Extensions of distribution mains within this area are subject to review and approval by OWU for compliance with these C/S, Design and Performance Standards, and other applicable governing statutes. Extensions are conditional upon there being sufficient water supply and distribution capacity.

b. Eligibility - All persons or entities desiring service from OWU within the service area described in the Bylaws shall apply to OWU and shall be subject to the governing statutes and shall be subject to such rates and fees as are established and amended from time to time. OWU reserves the right to refuse any application from such potential users and to discontinue the supply of water to such users at any time on the conditions stated in these C/S.

c. Modification - Memberships are issued for single-family residences, however, the Board of Directors may approve non residential use, at their discretion. Members may increase the size of their residence, or add buildings to their property, requiring water, if they submit an approved plan from the San Juan County Department of Construction and Land Use. A copy of the approved building permit must be submitted to OWU prior to modifications. Under no circumstances will OWU approve additional water use if the addition or modification is deemed to be an ADU (Accessory Dwelling Unit) as defined by San Juan County. Any Member found to be out of compliance with the current San Juan County Uniform Building Code with respect to Accessory Dwelling Units (ADU’s) will be required to obtain additional water membership(s), if available.

d. Availability - OWU will provide water to a property only after OWU has determined that the system has sufficient water as determined by the Department of Health.

7. Easements through Private Property

In case proposed water lines pass through premises other than public right of way or otherwise allowing access for OWU, no connection will be made until a proper easement shall have been secured and recorded in the San Juan County assessor’s office with a copy delivered to the OWU office. The filing of such easement does not obligate OWU to provide nor maintain such service. All easements must be included with all property transfers.

8. Prohibitions

a. OWU property - No person shall injure, tamper, remove, operate, damage, replace or interfere with any equipment, building, meter, seal, street valve, corporation stop, valve box, hydrant, tank, sand filter, pump or any other infrastructure owned by OWU, or other appurtenances, or divert water from mains or cut into any water pipe or main belonging to and/or serviced by the OWU system without the express written permission of OWU. The control of the water supply by the customer shall be by means of a valve located after the meter setting if the customer chooses to install one.

b. Hydrant Use - No person shall open, use, draw water from or in any manner interfere with any hydrant in the OWU system without the express written permission of OWU or unless in the active control of any fire under the direct supervision of the fire district and only with the use of a standard hydrant wrench. No person shall break, deface, injure, remove or in any manner tamper with any hydrant or any part thereof. Hydrants shall be operated slowly so as to minimize water hammer or pressure surges and the subsequent damage to property.

c. Bulk Water - Use of a hydrant for bulk water hauling shall be done at OWU approved stations, with prior permission, using such equipment as OWU supplies and, if done commercially, in tanks approved by SJC for the purpose of hauling potable water.

d. Sub-metering:

(1) OWU shall allow and shall provide only one service point to each premise/ERU operated as a related, common, and logical entity. OWU shall allow and supply only one meter to a single tax parcel. Additionally, OWU reserves the right to allow and supply only one meter whenever contiguous developed properties have common ownership. The meter must be placed to cover all the fixtures connected with the service line, and must be in a position where it can be conveniently read. The meter location is subject to the approval of OWU.

(2) Any additional meters for sub-metering must be furnished, installed and maintained by the owner at his own cost and expense, and must be placed so as not to divert any water from passing through the meter supplied by OWU. All water must pass through OWU’s meter before passing through additional meters. These additional meters will neither be read nor used for billing purposes by OWU for the customer(s). It shall be understood that any premises with additional meters used for sub-metering will receive only one billing per billing cycle per service based on the readings from the OWU -owned meter.

e. Wells and Other Sources of Water - No water from wells, unapproved water supplies or other sources of water shall be interconnected to the OWU water system without the specific written permission of OWU. OWU shall be under no obligation to grant such permission.

II. APPLICATION FOR SERVICE

1. Forms

No water service shall be laid, enlarged, or discontinued at or on a premise without filing an application for water service with OWU. Applications for water service shall be made on forms furnished by OWU, signed by the owner and accompanied by the appropriate fees. When approved and accepted by OWU, the application shall constitute a contract between OWU and the applicant obligating the applicant to honor OWU’s rates and fees for water current at the time of payment, to pay OWU for services performed on behalf of the customer, and to comply with these C/S and the OWU Bylaws as they presently exist or may be amended from time to time.

2. Work Performed

Any person or party doing work under an application for service shall be considered agent(s) of the owners during the progress of the work. Any person or party doing work under an approved OWU application shall be bound by all Bylaws, C/S or other relevant codes or regulations known as the governing rules. If such a person or party violates these rules, the forfeiture or suspension of the application will occur. Issuing of future applications to the violating person, party, or agent may be suspended or denied for continued or flagrant abuses of the governing rules or other inability to comply with them for any reason.

3. General

a. Water Available to Premises - Applications will be accepted subject to there being an existing and acceptable OWU -owned main in a street or right of way abutting on the premises to be served, but acceptance shall in no way obligate OWU to extend its mains to serve the premises. Further, applicants are cautioned to insure that adequate pressure and fire flow exists to serve their property before making a decision to apply for membership.

b. Plan - An application shall include a plat plan showing lot boundaries, tax parcel number, location of main, and proposed service connection.

c. Inspection - Work done under an application shall not be backfilled or covered until leakage tests, measurements, and inspections acceptable to OWU have been performed. Work covered before acceptable inspections have been conducted shall be uncovered at the owner’s expense before such an inspection can be made. No service to a property will be provided until all inspections have been satisfactorily completed.

4. Owner of Property Liable for Charges

All charges relating to water service and repairs shall be a charge against the owner of the premises connected with OWU water mains and such owner shall be held liable for all such accounts and charges. In default of any payment of such charges, the consumption charge and any other charges may become a lien upon the premises served, as provided by local law.

III. INSTALLATION AND MAINTENANCE OF WATER SERVICE

1. Right to Reject Service

OWU may refuse to connect with any piping system or furnish water through one already connected if such system is not properly installed and maintained in accordance with OWU requirements.

2. Taps

a. Size - OWU will determine the size of the tap to be inserted in any water main under any application. The applicant is required to provide peak flow requirements, distance from the main, and elevation in order that OWU can determine the proper tap size.

b. Separate Service Line - Each connection must have one distinct and separate service line and meter.

c. Illegal Connections - No fixture shall be attached to or any branch made in the water service line between the meter and the street main.

d. Tapping done by OWU. - All tapping of distribution mains in service will be done by OWU or its authorized agents and no other person will be allowed to make such taps.

3. Trench and Service Connection Specifications

See Distribution System and Water Main Extension Design and Construction Standards for these specifications.

4. Water Service Line Maintenance

a. Water Service Line Responsibility - The Owner of property into which water is introduced by an OWU water service connection will be required to maintain in good working condition, at the Owner’s expense, the “Service Connection” and the “Service Line” as defined in this document with the exception that OWU is responsible for the maintenance of the meter. The Owner is responsible for maintaining access to the service connection including the meter.

b. Repair of Water Service Lines - Within five (5) calendar days of the issuance of a written notice, a customer must repair a defective service line. If such repairs are not made, OWU may shut off the water until such repairs are made. In an emergency, OWU reserves the right to make temporary repairs without written notice and charge the expense thereof against the Owner of the premises. -

c. Interference with Facilities - No person shall turn the water on or off at any street valve, corporation stop, curb valve, meter valve, or any other street connection or valve ahead of the meter. No person shall disconnect or remove any meter except OWU personnel or OWU’s authorized agents. OWU may grant limited and specific permission to operate these valves or remove the meter at the customer’s own risk but in no case shall a blanket permission be given or construed.

d. Defect in Customer’s Water Service Line - OWU shall in no event be liable for any damage or inconvenience caused by reasons of any break, failure, leak, or defect in the customer’s water service line, meter, plumbing or fixtures. The Owner is encouraged to install appropriate fixtures such as pressure regulating valves and relief valves appropriate for the severe pressure gradients experienced in the OWU system. The Owner shall cause, at the Owner’s expense, any existing customer-owned service line (or portion thereof) to be upgraded to current standards if excavation shows it to be below standards required by these regulations.

e. Internal Plumbing - A service call resulting from a customer’s internal plumbing condition will be chargeable to the customer. The homeowner or their plumber shall handle internal plumbing problems.

f. Abandoned Services - Any service connection to a premise that has been inactive for one year shall be considered abandoned and shall be turned off at the main after informing the owner in writing of the action. The turn-off and any subsequent turn-on shall be at the owner’s expense. If the Owner contacts OWU once a year informing OWU of the intention to use the service connection, this rule may be waived if, in OWU’s satisfaction, the dormant service connection will pose no hazard or interference with the operation of the system.

g. Discontinued Service - A permanently discontinued service is one that is physically disconnected at the main in a manner that will prevent future leakage, contamination, and accidental dig-up. A temporarily discontinued service is one that has been shut off by OWU personnel, documented, and is rendered unusable until OWU personnel reinstate service.

h. Location - The customer is responsible for identifying the location of any water pipes on their property. Any damage resulting from OWU wrongfully indicating the location of a customer-owned pipe shall be the owner’s responsibility.

5. Winter Provisions

a. Winter Service Installations - Any service connection or tap required between December 1st and March 1st may be required to pay an additional fee.

b. Frozen Service - OWU will maintain service connections in order to avoid freezing problems. Where the protective earth cover over a service connection or meter setting has been altered by the owner so as to expose these facilities to freezing, an appropriate remedy will be made by OWU at the Owner’s expense. Any freezing of the Owner’s service line shall be corrected at the Owner’s expense.

IV. METERS

1. Meter Installations

a. OWU to Furnish Meters - OWU will furnish and install for each customer a suitable meter and will keep the same in repair. OWU will own all meters used as the basis for billing. The Owner is responsible for the purchase of the meter when it is installed as part of the hook-up fee. In case of misuse, abuse, negligence, or damage by frost, hot water, or other external causes, the expense of repair by OWU will be billed to the owner and paid by the owner. Any required change in a customer’s method of metering caused by the customer’s change in consumption or by a customer’s preference shall be paid by the Owner. Occupancy of premises must not occur until the water service to that premises has been metered.

b. Meter Space and Location - The Owner shall at all times provide a safe and readily accessible and protected location for the installation of a meter at such point as will control the entire supply to the premises. This location must be acceptable to OWU as most convenient for it service so that the meter may be easily approached, examined, read, removed or serviced. The Owner shall remove overhanging vegetation and regularly clear an area two (2) feet around the meter setting if placed in an outside location. The owner shall not do something that results in flooding, freezing, vandalizing, or otherwise making the meter setting unfit for its intended purpose. The cost of repairing damage caused by the customer shall be a charge against the customer.

c. Back-flow Prevention - Where it is deemed necessary by OWU, back-flow prevention devices shall be installed by the owner at the Owner’s expense to prevent the return of water from the internal house plumbing back through the meter toward the street service connection. All backflow prevention devices shall be state and AWWA approved.

d. By-Passes - Meters two (2) inches or larger in size shall be installed with by-passes, so that meters may be removed for testing or repairs without hindering the supply of water. Meter installations without bypasses are subject to the interruption of service.

e. Spacer Pipes - Any spacer pipe (jumper, idler bar) installed in place of a meter shall not be tampered with and subject to the same restrictions and penalties as a meter. Such devices are to be installed only by OWU employees and or agents.

2. Ownership

All meters installed by OWU as part of a service application shall remain the property of OWU and property owners on whose premises such meters are installed will be held responsible for their safekeeping.

3. Seals

All seals installed by OWU are only to be broken, disconnected, or disturbed by OWU personnel. If ameter seal is broken, the meter will be removed, tested, and replaced at the expense of the owner. In addition, the owner will be billed for the highest amount of water metered over a similar period for the last five (5) years.

4. Unaccounted-for Water

In case of any changes or additions in piping for the use of distribution of water, which is not accounted for by the meter, a proper charge for such unmetered water shall be made. The amount of the charge shall be wholly at the discretion of OWU.

5. Inspection of Premises

The customer shall grant employees of OWU who have properly identified themselves, permission at a reasonable time to enter the premises of the water user for the purposes of examining the pipes, meter, and fixtures or for ascertaining the quantity of water used and the manner of its use.

6. Request Tests

Any customer may request OWU to make a special test of the accuracy of a meter. Should the said meter be found upon said test to over-register by four (4) percent or more, the customer’s bill shall be adjusted for a maximum of two billing periods prior to the date of the customer’s request. The customer is invited to observe the test and is entitled to a clear explanation of the test procedure. If the meter is found to under-register by four (4) percent or more, the customer’s bill shall be adjusted for a maximum of two billing periods prior to the date of the customer’s request. In the event that a meter is determined to be under-registering or within normal registration limits, the owner shall bear the cost of a meter test.

OWU reserves the right to remove and test any meter at any time and to substitute another meter in its place at no charge to the customer.

7. Reading the Meters

a. Schedule - OWU will endeavor to collect water meter readings on a regular schedule. The readings will be conducted by either an OWU employee, or an agent authorized by OWU. These readings will be the basis of the subsequent water bill.

b. OWU Readings - When a meter is not reasonably accessible to the meter reader, a notification card will be left at the premises requiring the customer to provide reasonable access to the meter. Should no reading be able to be made within the stated time period, OWU will generate and issue an estimated usage based on meter size and past consumption history. OWU reserves the right to reject any meter reading taken by other than an OWU employee.

V. HYDRANTS, VALVES, AND OTHER APPURTENANCE

1. General

No person shall damage or interfere with any equipment or building belonging to the OWU water system, tamper with meters, divert water from mains, use water without permission, cut into any water pipe or main, operate any valves, or take water from any public fire hydrant for any use other than fire protection purposes unless specifically authorized in writing by OWU. No person shall place any structure, road, or engage in any construction or alteration of the earth cover within ten (10) feet of any OWU pipe without express written permission from OWU.

An Owner or an Owner’s contractor shall conform to the requirements of these C/S as presently in effect and as the same may be modified from time to time where and when any work of the Owner will be in the immediate vicinity of the OWU-owned system. The Owner shall so conduct his operations that no harm or damage will come to the OWU water system or other facilities. In situations of new construction or repair of existing structures, wherever any construction will cross over, above, below, or parallel any OWU pipe or facilities, the exact relationship of the existing and proposed facilities and the construction operations thereof shall be determined prior to the installation or construction of the proposed facility or pipeline. If the intervening space between the existing pipe or facility and the proposed construction is less than three (3) feet, no such construction shall be performed without the approval of OWU nor without the presence of a representative of OWU shall not relieve the contractor of any responsibility under this rule. No blasting may be performed closer than ten (10) feet to an existing pipe or facility. No building shall be constructed within five feet of a water main. No main shall be below a 45-degree line extending down and away from the edge of a footer as indicated below:

2. Hydrants

a. Hydrant Control - All fire hydrants owned by OWU are under the control of OWU. The use of fire hydrants will be restricted to the taking of water for fire protective purposes under the supervision of the Fire Chief. Water shall not be taken from any fire hydrant for construction purposes, irrigation, sprinkling streets, flushing sewers or gutters, or for any other use unless specifically authorized by OWU. There shall be no blanket permissions given. No person shall place any obstruction that would prevent free access to any fire hydrant. According to the SJC Hydrant Ordinance this is defined as no obstruction within a 36” radius around the hydrant and maintaining an eight-foot clear space at the edge of the road directly in front of the hydrant and the area between the road and the hydrant. No person shall paint or in any way change the color from the standard color established by OWU.

b. Use of Hydrants - If water is used from OWU fire hydrants without specific authorization from OWU, the quantity used will be estimated and the user will be billed at the meter rates set forth in the current Fee and Rate Schedule. If usage is estimated at an amount less than $100.00, the minimum bill will be $100.00 per use. If use is properly authorized, and if required by OWU, a meter shall be applied to the connection made with the hydrant at the expense of the party using same and said party shall pay for all water by meter measurement at the stipulated rates. Water must not be allowed to run except when being used. No person shall operate a hydrant except as authorized by OWU and only then using a proper wrench as approved by OWU. Violators may be prosecuted under existing laws. Hydrant use may be terminated at any time, without notice, as deemed necessary by OWU, for the public health or benefit.

c. Damages - In case any damage to a public fire hydrant is done by any person or person’s agent having permission for taking water from said hydrant, the person shall pay such damages and all costs and expenses that may be incurred by reason thereof on demand to OWU. OWU reserves the right to impose and hold damage deposits as a condition of granting permission to use hydrants.

3. Street Valves

No person except an employee of OWU or OWU’s authorized agents shall open, close, or in any way interfere with any street valve in a water main. Any person who has disturbed or displaced a valve box so that the valve stem cannot be reached by a key, or who has covered a valve box with dirt, paving, plank, or other material, shall immediately remove the obstruction and restore the valve box to operational status.

VI. PAYMENT FOR SERVICES

1. Billing to Customer or Owner

Where it is stated that OWU will bill the Customer or Owner, the Customer or Owner will be responsible for prompt payment. In all cases, the bill for water, services rendered, or penalties will be the ultimate responsibility of the Owner. Owners are cautioned to insure that they take such measures and exert such control over activities occurring on their property so as to be aware of charges being incurred.

2. Billing Period

All bills shall be rendered yearly, or otherwise at OWU’s option, and are due and payable on or before the date specified consistent with the current Fee and Rate Schedule, and such due date not to be less than thirty (30) days from the date rendered. After thirty (30) days, the gross payment is due and payable.

3. Non-Payment

If valid charges are not paid and if the water is turned off on account of such non-payment, no application for water service for such premises need be granted by OWU (not withstanding that said premises may have changed ownership) until such charges have been paid in full. Failure to receive a water bill because the owner failed to maintain a correct billing address with the OWU does not relieve the owner of the responsibility to pay said bill, nor stop any penalties or actions imposed by OWU as a consequence of such non-payment.

The current property owner is responsible for all outstanding charges to a property such as water, service charges or penalties. Potential new owners of a property are cautioned to review account status prior to purchasing property and to make such arrangements necessary as to insure appropriate payment of charges incurred by the current Owner.

4. Partial Billing Periods

a. New Services

If, at any time during a billing period, a new service is installed, an active service terminated or an inactive service reinstated, the reduced period will be pro-rated and billed as if it were part of a full billing period. A bill will be rendered to the customer of record according to the current rate schedule. Such a bill includes the cost of initiating or terminating said service, unless unusual charges are incurred.

b. Change in Ownership

When a change or ownership occurs, the seller must inform OWU of the change. The buyer must provide OWU with all necessary membership information before a membership transfer will have been considered to occur. Payment of all outstanding charges and required conformance with standards will occur before a membership transfer will have been considered to have taken place.

Whenever change in ownership occurs, either the buyer or the seller will take a special reading upon request to OWU. The requesting party will then be informed of the amount due on the account as of the date of the special reading. A special bill will not be rendered, rather the two owners will agree on the disposition of the amount due as a result of the special reading. The regular billing will be sent to the owner of record in a normal fashion.

Owners are cautioned to read and understand the sections titled “Non-Payment”, above.

5. Metered Amount to be billed

a. Determination - The quantity recorded by the meter shall be considered the amount of water passing through the meter which amount shall be conclusive on both the customer and OWU. Such amount may be used as all or part of the basis for billing.

b. Exceptions - Consumption charges may be determined without benefit of metering under the following

Conditions: In cases where it is found that the meter has ceased to register or has registered inaccurately, the quantity may be determined by the average registration of the meter in a corresponding past period when in order. However, where it appears that there has been a change in occupancy of the premises or in the use of water, OWU will, in its sole judgment, make an equitable adjustment. In all cases where a meter is found to be defective, OWU shall replace the same by a meter that has been properly tested and adjusted. In cases where it is found that a reading cannot be obtained, an estimated minimum bill will be rendered to the customer. Alternatively, an estimated bill based on equitable customer class criteria may be rendered. Such criteria shall be based on fairness to both parties.

6. Unoccupied Premises

Premises whether occupied or unoccupied will be billed annually unless the customer arranges to have his service discontinued.

7. Partial Payments

A partial payment is any amount less than the total due amount of a bill. In the event that a bill includes charges for more than one (1) billing period, a partial payment is applied against the oldest due bill plus penalty.

8. Unpaid Charges

Overdue charges for penalties or for services rendered will be added to the account and any payment received will be applied as explained in the section “Partial Payments”, above.

9. Discontinued Service

Any Owner may discontinue water service by giving OWU written notice not less than ten (10) days prior to the discontinuance, and all liability for charges for service rendered after the discontinuance of service, as herein provided for, shall cease. Only the Owner can order discontinuance of service. Any owner may also switch from active to inactive or visa versa by submitting written notice.

10. Disputed Bills

In the event of a dispute between the customer and OWU regarding any bill of service or repairs, OWU will forthwith make such investigation as may be required by the particular case and report the result thereof to the customer. Any disputed bill that, upon investigation, is sustained as correctly rendered shall be due by the original due date and the penalty computed as of the original due date. Any disputed bill that, upon investigation, is found to be incorrect will be corrected and resubmitted to the customer. The due date of the corrected bill shall be considered to be as of the submitted date of said bill plus twenty (20) extra days after the corrected bill was issued. The corrected bill shall then be paid as provided in these C/S. Any amounts paid by the customer in excess of the amount disclosed to be due as a result of OWU’s investigation of the dispute shall be forthwith returned to the customer upon approval by OWU if the error arose from any cause other than the incorrect estimating of a customer’s consumption for the period in dispute.

VII. PENALTIES

Any person or entity violating any provision of these C/S shall be subject to such penalties as OWU may assess, criminal prosecution, or both. In any event, OWU may enforce compliance with these C/S by cutting off the supply of water.

Adopted by motion of the OWU Board of Directors on July 14, 2018

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