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construction, installation, operation, and maintenance of the District improvements therein; compel the owner of premises, whenever necessary for the protection of public health, connect his premises the sewer and/or water lines of the District; assess reasonable penalties for delinquency in the payment of rates, fees, tolls, or charges, or for any violations of the Rules and Regulations of the District together with interest on such delinquencies from any date due at not more than 1 percent per month, and shut off or discontinue water or sanitation service for such delinquencies and for delinquencies in the payment of taxes or for any violation of the rules and regulations of the District; acquire water rights and construct and operate lines and facilities within and without the District; fix tap fees which the board may pledge for the payment of any indebtedness of the District; assess availability of service or facilities charges subject to certain provisions; and exercise the power of eminent and dominant eminent domain for its purposes, except for acquisition of water rights. '-' - State law provides procedures for the inclusion or exclusion of real property to or from the District, thereby modifying the boundaries of the District, The PAWSD has effected a number of inclusions since its formation, including a 3,922 acre inclusion in 1983 and a 1,225 acre area in 1989, known as the Alpha inclusion, located adjacent to the eastern boundary of the District. Boundary changes resulting from property included or excluded to or from the District prior to the first day of May of each year is reflected in the District's assessed valuation and is subject to the ad valorem property tax levy of the District for that assessment year. Inclusions or exclusions that occur after May 1 are considered in the following assessment year. Subsequently included or excluded property is obligated to the same extent as all other property within the district for the payment of Bonds. 2.1.3 DUTIES AND RESPONSIBILITIES OF OFFICERS AND DIRECTORS The District is governed by a five member board of directors whose members must be electors of the District as defined by state law and are elected to staggered four year terms of office at successive biennial elections, Vacancies on the Board are filled by appointment of the remaining directors, the appointee to serve until the next regular election, at which time the vacancy is filled by election for any remaining unexpired portion of the term. The directors hold regular meetings and, as needed, special meetings. Each director is entitled to one vote on all questions before the Board when a quorum is present. 2-2 595\PAGOSA\s2,TXT IO/27/'Y2 mm