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RULES AND REGULATIONS <br /> OF <br /> VALLECITO WATER COMPANY <br /> ARTICLE 1. GENERAL DRAFT <br /> VALLECITO WATER COMPANY <br /> 1.1 AUTHORITY. The Vallecito Water Company (Company) is an enterprise of the Pine <br /> River Irrigation District. The District is a governmental subdivision of the State of <br /> Colorado and a body corporate with those powers of a public or quasi-municipal <br /> corporation that are specifically granted, or are necessary or incidental to those powers <br /> specifically granted, for carrying out the objectives and purposes of the District. <br /> 1.2 RESPONSIBILITIES. The Company is responsible for the distribution of water to <br /> customers, for residential or commercial use, on their property within the Service Area. <br /> The Company is responsible for the installation, maintenance, repair and replacement of <br /> all water mains, distribution lines, fire hydrants, curb valves, water meters, pumping <br /> stations, storage tanks, and other facilities owned by the Company. The Company is not <br /> liable or responsible for lines and facilities owned by the customer. <br /> The Company shall endeavor to plan for, capitalize and build adequate capital <br /> improvements as rapidly as possible consistent with fiscal responsibility in the best <br /> interest of the Company. The Company is not liable or responsible for failure to approve <br /> additional service when capacity is exceeded by demand. <br /> 1.3 LIABILITY. To the extent permitted by the laws of the State of Colorado, the <br /> Company shall be excused from any liability arising from the good faith performance of <br /> its responsibilities. Unless otherwise ordered by a court of competent jurisdiction, the <br /> Company shall not be liable for interruptions in service or conditions resulting therefrom. <br /> Further, the Company shall not be liable for events beyond the reasonable control of the <br /> Company. <br /> 1.4 COMPANY COMMISSION <br /> A five (5) member Commission shall be installed to govern the operations of the <br /> Company and to provide representation for the customers of the Company. The <br /> Commission shall be responsible for establishing policies for the Company, formulating <br /> the Company's annual budget, and all other duties noted in these Rules and Regulations. <br /> Approval of the Company's annual budget shall be the responsibility of the Pine River <br /> Irrigation District Board of Directors as required by Colorado statutes. <br /> An Interim Commission shall govern the Company during the period in which the water <br /> system is constructed. The Interim Commission shall be comprised of members <br /> appointed by the Pine River Irrigation District Board of Directors. Following the <br /> connection of any taps in precinct, then a Commissioner shall be elected from that <br /> precinct at the next scheduled annual election. <br />