Hermosa Water User Association
A Non-Profit Corporation
Policies and Procedures
11-11-14
11-10-15
P.O. Box 41
Hermosa, SD 57744Hermosa Water User Association
Policies and Procedures
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Table of Contents
Policy Bulletin 100 - Definitions and Objectives 3
Policy Bulletin 101 - Duties of Board of Directors. Al
Policy Bulletin 102 - Policy Book Revisions 7
Policy Bulletin 103 — Association’s Responsibilities & Liabilities. &
Policy Bulletin 200 - Water User Fees 10
Policy Bulletin 201 - Water Rates 12
Policy Bulletin 202 - Deactivation of Service 13
Policy Bulletin 300 - Livestock Watering off Member's Property or on Non-assessed Property 16
Policy Bulletin 301 - Waste of Water Prohibited 17
Policy Bulletin 302 - Specifications for New Roads, Pipelines and Railroads Crossing Association
Pipelines 18
Policy Bulletin 303 — Storage Guidelines 20
Policy Bulletin 304 - Metered Water Request. 21Hermosa Water User Association
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Policy Bulletin 100 - Definitions and Objectives
General Policies
PURPOSE
To provide definitions for terms used throughout the Association's policies and to establish the goals
and objectives of the Association's policies.
TERMS OF POLICY
A. Definitions: Unless otherwise provided or the context clearly requires otherwise, when used in
the Association's policies, the following terms shall have the following meanings:
1. Household Use: the use of water for drinking, washing, sanitary, culinary and other
household purposes.
2. Housing Development Area: a tract of property that has been properly platted into
residential lots for resale to individual homeowners.
3. Initial User: any person or entity (other than a special User) that made application and paid
the appropriate fees prior to June, 2006.
4. Livestock Use: the use of water for stock watering.
Mainline: pipeline generally paralleling public right-of-way and section lines and making up
the distribution system of the Association. Mainline will generally be located so that it
serves or may serve more than one User.
6. Member: all water Users who have complied with the requirements of these Rules and
Regulations shall be members of the Association.
7. Service Line: the pipeline running from the main line to the Water User Connection Point.
‘Temporary Disconnect: any interruption of water service not of permanent nature.
9. Water User Connection Point: the point at which the water User's private system is
connected to the Service Line.
8. Objectives: The goals and objectives of Association's policies are as follows:
1. To establish Rules and Regulations setting forth the Association's intentions for the conduct
of the business affairs of the Association in a manner that will result in a successful
operation.
2. To treat all water Users alike with respect to recurring situations by establishing Rules and
Regulations.
3. To provide water service to the water Users of the Association at lowest possible cost, and
Consistent with sound business practices.Hermosa Water User Association
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4. To make known to the water Users the Rules and Regulations of the Association,
5. To create a favorable image among the water Users and general public.
6. To promote maximum beneficial utilization of water among the Users.
7. To represent at all times the interests of the water Users in the most fair and equitable
‘manner.
Adopted 11/11/2014Hermose Water User Association
Policies and Procedures,
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Policy Bulletin 101 - Duties of Board of Directors
General Policies
PURPOSE
This policy has been adopted to set forth the duties of the Board of Directors (Board) as they govern the
Association.
TERMS OF POLICY
‘The Board, subject to the restrictions of the law, the Articles of Incorporation, and By-laws, shall exercise
all of the powers of the Association. Without prejudice to or limitation upon their general powers, itis
hereby expressly provided that the Board shall have, and are given, full power and authority to perform
the following duties and functions:
‘A. To pass upon the qualification of members and to cause to be issued appropriate certificates of
membership to the legal landowners whose names appear on the land title,
8. To select and appoint all officers, agents, independent contractors or employees of the
Association or remove such agents, independent contractors or employees of the Association at
the pleasure of the Board, and to prescribe such duties and designate such powers as may be
‘consistent with the Bylaws, and fix their compensation and pay for faithful services,
C. To borrow from any source money, goods or services and to make and issue notes and other
negotiable and transferable instruments, mortgages, deeds of trust and trust agreements and to,
do every act and thing necessary to effectuate the same.
D. To prescribe, adopt and amend, from time to time, such equitable and uniform Rules and
Regulations as they, in their discretion, may deem essential or convenient for the conduct of the
business and affairs of the Association and the guidance and control of its officer and
employees, and to prescribe adequate penalties for the breach thereof.
E. To provide for the review of the annual treasurer's report of the Association by a certified
accountant.
F. To annually prepare a proposed budget for the succeeding fiscal year, and to provide a copy to.
the Members at the Annual Meeting,
G. To fix the schedule of fees, time of payment and the manner of collection of the charges to be
paid by each member for services rendered by the Association.
H. To select one or more banks to act as depositories of the funds of the Association and to
determine the manner of receiving, depositing and disbursing the funds of the Association and
‘the form of checks and the person or persons by whom the same shall be signed with the power
‘to change such banks and the person or persons signing such checks and the form thereof at
will
1. To create and appoint all committees and to delegate such duties as allowed by law, the Articles
of Incorporation and the Bylaws.Hermosa Water User Assocation
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Adopted 11/11/2014Hermosa Water User Association
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Policy Bulletin 102 - Policy Book Re’
General Policies
PURPOSE
Policy Bulletins are important to the Association's Board of Directors (Board), Membership and staff.
They outline the procedures for the daily operation of this Association. This policy has been composed
to establish the guidelines for development of policy bulletins and updating them to reflect the changes
within the Association's daily activities,
TERMS OF POLICY
‘A. The Board shall have the responsibility to revise the policy book, bringing it up to date, and
adopting said policies and/or provisions.
8. Policies shall be coded in such a way that policies can be added to the book without completely
reprinting the book.
C. APolicy Bulletin shall be issued for every policy adopted by the Board for the operation of the
Association.
D. Each employee, member and each Director shall from time-to-time be provided a full set of
Policy Bulletins.
E. Atany time a policy is revised, a revised bulletin of the same number will be issued to replace
the old bulletin and provided to each of the members.
‘Adopted 11/11/2014Hermosa Water User Association
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Policy Bulletin 103 — Association’s Responsibilities & Liabilities
General Policies
PURPOSE
To establish the Association's rights and responsibilities when placing a hookup upon a User's property.
TERMS OF POLICY
A. For water user hookups, the landowner shall install a Service Line from the Association's,
Mainline at the landowner’s expense. The Service Line user shall provide the Board with the
documented specifications and per-foot costs of installation of the proposed Service Line prior
to installation. ‘The Mainline shall be pro-rated as a per foot cost to other members on said
‘Mainline and the new Service Line User shall reimburse the Members who paid for the Mainline
from the starting point of said Mainline to the point where the Service Line originates from the
Mainline prior to any Board approval of a tap for the new Service Line user. The Association will
install, at Service Line User's expense, the meter pit, with a minimum four foot by six foot (4’ X
6’) manhole, ball valves, and the meter assembly. The Service Line and meter pit shall be the
Property of the Association one year from the date of the installation.
8. For Special water user hookups, the details of the connection will be described in the water
purchase contract.
C._ The Association shall have the right at all reasonable hours to enter upon Member's property to
read and test meters, inspect piping, and to perform other duties for the proper maintenance
‘and operation of service, or to remove its meters and equipment upon discontinuance of service
by either the Member or the Association,
D. The water User's line or piping must be installed in such a manner as to prevent cross-
connection or backflow, and all connections from other sources are disconnected. if the water
User fails to so install the line or piping, the Association may refuse to provide service.
E. New Service Line taps shall have restrictors and may not exceed one (1) gallon per minute for
household use and may not exceed three (3) gallons per minute for livestock use
F. With the exceptions of the Town of Fairburn, Custer County, South Dakota, and the existing Fort
Randall Telephone Switching Office, which is provided service at 14170 South Dakota Highway
36, the Association may not provide service to areas that are not zoned for agricultural
Purposes. If an agriculturally zoned area currently serviced by the Association is changed to a
Non-agriculture zoning designation, the Association may not provide service to the rezoned
area.
The Association shall not be liable for the intended quantity of water to new service lines.
The Association shall not be liable for damage of any kind whatsoever resulting from water or
the use of water on water user's household unless such damage results directly from negligence
on the part of the Association. The Association shall not be responsible for any damage done by
or resulting from any defects in the piping, fixtures, or appliances on the water user's,Hermosa Water User Association
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household. The Association shall not be responsible for negligence of third persons or forces
beyond the control of the Association resulting in any interruption of service.
|. Ifa lawsuits filed against the Association by a Member and the Association prevails, the
Association shall have the right to collect reasonable costs and necessary disbursements and
attorneys’ fees from the Member. The Board shall also have the right to expel the Member
from the Association and terminate the water service.
J. Members will receive the unapproved and approved monthly minutes and Treasurer's report via
email every month. Ifno email is available then the member will need to make a separate
request. (Adopted 11/10/2015)
Adopted 11/11/2014
REVISED.Hermosa Water User Association
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Policy Bulletin 200 - Water User Fees
Minimum, Rates & Procedures Policies
PURPOSE
The purpose of this policy is to establish the fees to be paid by Users for services obtained from the
‘Association. These fees are subject to change depending upon, among other things, changes in the
Association's cost of doing business.
TERMS OF POLICY
‘A. Explanation of fees
1. Membership Fee: A Membership fee as established in accordance with Article Il, Section
2.08 of the By-Laws of the Hermosa Water User Association, A Non-Profit Corporation, and
will be charged to any person or entity that is not at the time of application on the
‘membership roles of the Association. This fee shall be in addition to any other fees required
in accordance with the rate and fee schedule below.
2. Assessment Fee: An assessment fee, as established in the rate and fee schedule, will be
charged for each household hookup and for each acre serviced for Livestock Use.
3. Hookup/Tap Assessment: Except as otherwise provided below, a Hookup/Tap Assessment,
4s established in the rate and fee schedule, will be charged for each hookup or tap
requested, Regardless of the type of hookup and its designed capacity criteria, the
hookup/tap assessment shall not be less than $800.00. If one meter for two households is.
requested and approved by the Board, the hookup/tap assessment will be charged at full
Price and the second household will be charged at a set rate per each additional unit as.
established in the schedule of fees.
4. Special Assessments: The Board may, with Membership approval at the Annual or at a
Special Meeting, from time to time, set special assessments to generate additional funds for
the Association, as established in the rate and schedule of fees.
5. Backhoe Equipment Rate: Members may, with Board approval, hire the Association’s
backhoe operator for a fee, as established in the rate and fee schedule, to utilize the
Associations backhoe.
6. Commercial Use Fee: The Board may sell water for commercial uses at a rate established in
the rate and fee schedule.
B. Connecting
1. The applicant must sign a Water User Agreement and provide easements and rights-of-way
at no charge to the Association.
2. The applicant must pay all applicable hookup and construction costs.Hermosa Water User Association
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3. Service to the applicant must be determined by the Association to be feasible, taking into
account hydraulics, service capacity and total cost. All applicable fees are payable prior to
‘commencement of construction. Monthly and recurring charges commence following
service installation.
4. The applicant must pay the applicable Application, Membership and Hookup Fees as set
forth in the rate and fee schedule,
5. The household applicant mu:
tall a cistern with a minimum 1000 gallon capacity.
6. The system must be inspected by Ass
authorization of water service.
ion’s personnel prior to Board approval and
Adopted 11/11/2014Hermosa Water User Association
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Policy Bulletin 201 - Water Rates
Minimum, Rates & Procedures Policies
PURPOSE
‘The purpose of this policy is to provide for the determination and establishment of water rates and
other fees.
TERMS OF POLICY
A. Monthly water rates shall be determined and established by the Membership and may be
increased or adjusted by the Membership from time to time as it deems necessary to meet the
financial obligations of the Association.
8. Monthly water rates, as adopted, shall be attached to this policy and labeled as an appendix in
sequential order for each rate category. *Please see the Rate and Fee Schedule for current rate
information.
. Monthly water rates shall be reviewed on an annual basis and are subject to change by majority
vote of the Membership present and constituting a quorum at the Annual or at a Special
Meeting.
D. Other fees, unless specifically provided for elsewhere in the Articles of Incorporation, By-laws or
these Policies and Procedures, shall be determined and established by the Board of Directors
‘and may be adjusted by the Board from time to time as it deems necessary to meet the financial
obligations of the Association.
Adopted 11/11/2014Hermosa Water User Association
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Policy Bulletin 202 — Deactivation of Service
PURPOSE
The purpose of this policy is to establish rules applicable to the deactivation (by either disconnection or
deletion) and reactivation of a service whether by a User's request or by action by the Association.
Through this policy, Users are given notice of the steps necessary to remain a customer in good standing
with the Association.
TERMS OF POLICY
‘A. Consistent with the procedure established in Article II, Section 2 of the Associations By-Laws,
service to all Users may be discontinued for cause, including but not limited to any of the
following reasons:
1. For misrepresentation, in an application, as to property or fixtures to be supplied, or the
use to be made of the water supply;
2. For the use of water on any property or for a purpose other than that described in the
application;
3. Under flat rate service, for adding to the property or fixture for the changing the use to
be made of the water supply, without notice to and the consent of the company;
4. For willful waste of water through improper or imperfect pipes, fixture, meter or
otherwise;
re to keep In good order and to protect the Association connection, service line
or fixture;
6. For neglecting to make or renew advance payments, or for nonpayment’s of any
account for water supplied or water service or water protection or of any fee or charge
as required by Fee and Rate Schedule or otherwise by the By-Laws or these Policies and
Procedures;
7. For damaging, causing injury to or otherwise interfering with any service, pipe, meter,
curb stop cock or any other appliance of the Association controlling or regulating the
water supply;
8. In case of vacancy of premises;
9. For violation of any rules of the Association;
10. To prevent fraud or abuse; orHermosa Water User Association
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11, Ifthe user tampers with a meter or refuses to allow an inspection of the Association’s
facilities and system located on the users property.
Service disconnected for nonpayment of bills restored only after bills are paid in full
{including the accumulated monthly minimum bill since the date service was terminated);
any requested deposits are paid and reactivation charges, in the amount established in the
rate and schedule, are paid for each meter and/or line reactivated; and only if the capacity
to serve exists at that time, as determined by the Association Board, based upon hydraulic
capacity. Upon termination of service, the User forfeits his/her membership in the
Association and rights to water service at the location in question.
When water service is disconnected or deleted at the requests of the User, the User resigns
his/her membership in the Association and rights to the water service at the location in
question. Any subsequent application for water service at location will be considered and
treated as a new membership application. The location will only be served if itis determined
that capacity exists to serve the location, the applicant signs a new water user agreement,
‘and the applicant pays the following fees:
1. If the applicant previously deactivated the hookup at that location, unpaid minimum
bills accruing from the date of deactivation or $300.00, whichever is less. New owners
of the service location will be required to pay the reconnection fees as provided in
Policy Bulletin 200 and the rate and fee schedule;
2. Reconnection and transaction fees in the amount established in the rate and fee
schedule;
3. Meter deposit in the amount established in the rate and fee schedule if there is not an
already existing deposit for this location with the Association; and
4. Any construction cost for installation of facilities needed to service the account.
.. The Association reserves the right to disconnect service, on a temporary basis or delete
service on a permanent basis, without notice, for the following additional reasons:
1. Emergency repairs;
2. Insufficiency of supply due to circumstances beyond the Association’s control;
3. Legal processes;
4. Direction of public authorities;
5. Strike, riot, fire, accident, or any unavoidable causes; or
6. To prevent system contamination through an unintentional or intentional cross-
connection,Hermosa Water User association
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Auser may chose to idle an account if they desire that the water service be shut off at the
service valve or the meter, but continue to keep the account active or purposes of
Association membership and hydraulic capacity. The user must continue to pay the
minimum bill during the time the service is idle. All deactivation or reactivation fees and
procedures will apply to a user requesting an account to be idled.
AdoptedHermosa Water User Association
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Policy Bulletin 300 - Livestock Watering off Member’s Property or on
Non-assessed Property
PURPOSE
This policy establishes the rules applicable to the watering of livestock on property not owned by the
User and for the watering of livestock on non-assessed property of the User,
TERMS OF POLICY
‘A. Piping or permitting water to be piped or supplied to another individual, corporation or entity's
land, home, business without new application, fees and Board approval is prohibited, Non-
compliance will subject Member's water service to be cut off if the member does not
immediately disconnect the pipes or the servicing the other's land, home and/or business and
pay the fees required on the schedule of fees.
8. Piping or permitting water to be piped or supplied to non-assessed land of the Member,
including but not limited to removal of fences between Member's assessed and non-assessed
Pastures, without new application, fees and Board approval is prohibited. Non-compliance will
subject Member's offending tap to be cut off i the member does not immediately reconstruct
the removed fencing and/or disconnect the pipes servicing the non-assessed lands and pay the
fees required on the schedule of fees.
Adopted 11/11/2014Hermosa Water User Association
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Policy Bulletin 301 - Waste of Water Prohibited
PURPOSE
This policy establishes the rules applicable to the preventing and prohibiting waste of water by User.
TERMS OF POLICY
‘A. Members shail not commit or permit waste or other misuse of water. If waste or other willful
misuse of water occurs, the Member shall be warned in writing by United States Postal Service
Certified Mail. if a second waste or other willful misuse of water occurs by the Member, the
‘Member shall be fined $100.00 by the Board. Ifa third or additional occurrences of waste or
other willful misuses of water persists by the Member, the Members offending tap will be shut
off and the Board will install, at the Member's expense, a meter. The Member will be required
to pay a hookup fee prior to reconnection of water service, and will thereafter pay the rate
required by the schedule of fees for metered water.
Adopted 11/11/2014Hermosa Water User Association
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Policy Bulletin 302 - Specifications for New Roads, Pipelines and
Railroads Crossing Association Pipelines
PURPOSE
This policy establishes the rules applicable to the protecting Association pipelines during and after new
construction.
TERMS OF POLICY
1. The Board may not grant an easement, license or any form of approval for any new road railroad
construction absent the following conditions:
1. The water line shall be buried a minimum of six (6) feet below the surface of the road,
approach or railroad ditches on either side;
2. Schedule 40 piping shall be utilized to sleeve the pipe;
3. The sleeve shall extend two (2) feet beyond each side of the right-of-way, easement or
license, and the entire sleeve shall not exceed one-hundred (100) yards;
4. The owner of the easement, license, road or railroad shall pay the costs incurred; and
e
Association personnel shall inspect the construction while in progress.
2. ‘The Board may not grant an easement, license or any form of approval for any new driveway or
‘approach construction absent the following conditions:
1. The water line shall be buried a minimum of six (6) feet below the surface of the driveway
ditches on either side;
2. Schedule 40 piping shall be utilized to sleeve the pipe;
3. The sleeve shall extend ten (10) feet beyond each side of the driveway or approach bed and
the entire sleeve shall not exceed one-hundred (100) yards;
4. The owner of the driveway, easement or license shall pay the costs incurred; and
5. Association personnel shall inspect the construction while in progress.
3. The Board may not grant an easement, license or any form of approval for new pipeline
construction crossing an existing Association pipeline absent the following conditions:
1. The new line shall be a mi
1um of one (1) foot below the Association’s existing line; andHermosa Water User Association
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2. The new line shall have a location tape buried at no more than three (3) feet below the
surface.
Adopted 11/11/2014Hermosa Water User Association
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Policy Bulletin 303 - Storage Guidelines
TERMS OF POLICY
Excess storage per tap is not to exceed the 1000 gal x restricter size. Existing set-ups are
exempt prior to November 2015. (Adopted 11/17/2016)Hermosa Water User Association
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Policy Bulletin 304 - Metered Water Request
The purpose of this policy is to allow potential and existing members g
PURPOSE
metered water.
TERMS OF POLICY
The member needs to ask for the change to metered water.
They need to submit a plan.
The Board of Directors reviews the plan in a timely fashion.
‘A meeting is set to go over the plan with the member. if there are changes to
‘the members original plan the board will negotiate a compromise. At the
meeting, all of the costs to the member will be stated and the responsibility of
each party stated. The member needs to pay for all the cost of changing to
metered water. The GPM the member is allowed will be set using existing GPM
guidelines with the availability of restrictor sizes. Motion was made and carried
@ the 2015 Annual Meeting by Tom Colgan, “that a total of tank and storage not
exceed the 1000 gal x the restrictor size on pasture taps. Existing set-ups are
exempt.”. The Board reserves the right to re-assess the members’ usage and
make possible changes should getting water to others become a problem.
If everything is agreeable to the member, they have the option of having HWUA
do the work or have a contractor do the work for them. HWUA will have specs
the contractor must follow and sign off on the work that was done before water
is turned on.
After meter installation, the member may use their secondary water source on
their side of the meter. The base meter charge will need to be paid each month
even if no water is used. A backflow preventer must be installed ahead of the
meter to prevent contamination back to HWUA line even if their secondary
source is not used. The backflow preventer and meter will be maintained by
HWUA.
All lines past the meter are the members’ responsibility for repair. The member
may add new lines past the meter as long as it goes to assessed land. All
metered water will be paid for even if there is a leak on the members’ side of the
meter.
Adopted 11/17/2016