RULES, REGULATIONS & RATES

VIRGIN VALLEY WATER DISTRICT RULES, REGULATIONS & RATES ORIGINALLY ADOPTED January 10, 1996 11 th Revision Approved November 7, 2017

Table of Contents Table of Contents... 2 SECTION I - INTENT... 4 SECTION II - DEFINITIONS... 4 SECTION III ORDINANCES... 9 III-1 Ordinance No. I... 9 III-2 Ordinance No. II... 9 SECTION IV SYSTEM DEVELOPMENT CHARGES, CONNECTION, AND SERVICE FEE POLICIES AND SCHEDULES... 12 IV-1 Meter Installation Fee... 12 IV-2 Installation of Water Meters... 13 IV-3 Transfers of Paid CCWS Fees, System Development Charges, and Water Meters... 13 IV-4 Monthly Service Charge... 16 IV-5 Fees Subject to Change... 16 IV-6 Request for a Conditional Commitment for Water Service (CCWS)... 16 IV-7 Annual Renewals of Conditional Commitments for Water Service... 18 IV 8 Amended Final Maps... 21 MONTHLY WATER RATES AND CHARGES... 24 FEE SCHEDULE... 25 SECTION V - PAYMENT OF BILLS... 26 V-1 Payment of Bills... 26 V-2 Delinquent Bills... 27 V-3 Reinstatement of Service... 28 V-4 Payment Arrangements Due to Water Leaks... 28 V-5 Illegal Restoration of Service... 29 V-6 Checks and/or ACH Payments Not Honored by Bank... 29 V-7 Responsible Parties... 29 V-8 Liens... 30 SECTION VI - GENERAL RULES AND REGULATIONS... 30 VI-1 Application for Services... 31 VI-2 District s Responsibility and Liability... 31 VI-3 Customer s Responsibility... 32 VI-4 Access to Premises... 34 VI-5 Change of Occupancy... 34

VI-6 Complaints Adjustments... 34 VI-7 Abridgment or Modification of Rules... 35 VI-8 Construction Water from Public or Private Fire Hydrants... 35 VI-9 Locked Meters (Customer Request)... 36 SECTION VII - LEASE OF IRRIGATION SHARES... 37

SECTION I - INTENT Pursuant to action taken by the Board of Directors of the Virgin Valley Water District, on October 25, 1996 and thereafter for purposes of amendments, these Rules, Regulations & Rates, as may be amended from time to time, shall govern the operation of water systems and facilities to any and all users of the Virgin Valley Water District s Service Area. The terms, provisions, ordinances, and policies of the last amended and updated Rules, Regulations & Rates supersedes and replaces any prior or earlier version of the Rules, Regulations & Rates. Additionally, in the event of any conflict or inconsistency between the last amended Rules, Regulations & Rates and any earlier approved policy, ordinance, rule, or regulation, the last amended Rules, Regulations & Rates shall govern and control. SECTION II - DEFINITIONS As used in these Rules, Regulations & Rates, unless the context clearly requires otherwise and regardless of whether the word is capitalized in its use, the following definitions shall apply: Applicant shall mean the person, business, governmental agency, or other entity making application to the District for water service or a request associated with water service Application shall be a written request for or associated with water service Billable Unit means 1,000 gallons of water Board means the Board of Directors of the Virgin Valley Water District City means the City of Mesquite, Nevada Commercial Building shall mean any building, structure or facility or a portion thereof, devoted to the purposes of trade or commerce, such as a store or office building. Conditional Commitment for Water Service or CCWS (formerly known as a will-serve letter) means a commitment issued in writing by the District whereby the District commits to provide water service to a particular property so long as the Applicant who has requested the water service complies with all applicable conditions and subject to the terms stated in the CCWS. A CCWS is valid for a period of one year from the date of issuance and must be renewed on an annual basis in accordance with the requirements of these Rules, Regulations & Rates and the terms and conditions of the CCWS. Construction Water shall mean water used exclusively for construction purposes and delivered in a manner other than through a standard water service connection. Construction water shall not be used for Commercial Service or for any commercial purposes other than construction. Rules, Regulations & Rates Page 4

Contractor shall mean an individual, firm, corporation, partnership or association duly licensed by the State of Nevada to perform the type of work to be done under the Permit County means Clark County, Nevada Cross Connection shall mean any actual or potential connection between the District s distribution facilities and any source or system that may potentially cause contamination, pollution or change in water quality by any and all causes Culinary/Potable Water means water that is safe and satisfactory for drinking and cooking, meeting all applicable standards (NAC 444.7664) Customer means a person or persons who are a recipient of water service provided by the District Developer shall mean any person engaged in or proposing development of property Development shall mean a parcel of property being improved and requiring installation of water mains to and possibly on the property being improved as follows: - Subdivision, PUD s, parcel map developments; - New building construction; - Multi-family, commercial and industrial additions or remodels which may result in an increase in historical water usage for the parcel District shall mean the Virgin Valley Water District District Office shall mean the District s business and administrative office located at 500 Riverside Road, Mesquite, Nevada 89027 Easement shall mean an acquired legal right for a specific use of land owned by others EDU shall mean Equivalent Dwelling Unit. An EDU is based on a 5/8 X 3/4" meter that serves an individual residence. Employee shall mean any individual employed by the District excluding independent contractors, consultants and their employees Engineer means, except where referring to an engineer hired by or working for a party other than the District, the designated Professional Engineer retained by or working for the District or any of his/her duly authorized representatives Groundwater means water found in the spaces between soil particles and cracks in rocks underground located in the saturation zone (NAC 444.579). Cracks in rocks can be due to joints, faults, etc. Groundwater is a natural resource that is used for drinking, recreation, industry, and irrigation. Rules, Regulations & Rates Page 5

Idler shall mean a length of pipe or spacer installed in lieu of a meter Inspector shall mean an individual designated to inspect facilities that are the subject of the District s approved Design Standards and Specifications Inter-Connection shall mean any actual or potential connection to customer piping which will provide water service to property or permit use of water facilities for purposes other than that for which a service connection was authorized Irrigation Water means water that is provided to land (crops, parks, golf courses, landscaped areas, etc.) by means of pipes, sprinklers, ditches, or streams Law is any statute, rule or regulation established by Federal, State, County or Municipal authorities Living Unit shall mean any residence, apartment or other structure to be occupied for habitation by a single person or family and requiring water Main Classifications: Off-Site Main shall mean a main, regardless of size, which extends from the existing water system to a development but excluding on-site mains On-Site Mains shall mean those public mains that are installed specifically to provide service to developments and generally located within the development s boundaries Public Mains shall mean those mains that are owned, operated and maintained by the District after completion and acceptance Private Mains shall mean all water mains not owned by the District after completion May is a term used to indicate that something is permissive (compare to Shall ) NAC means the Nevada Administrative Code NRS means the Nevada Revised Statutes Owner shall mean a person who holds legal title to the property or who is under contract to purchase the property Permit shall mean any written authorization required pursuant to this or any other regulation of the service area for the installation or operation of any water works Rules, Regulations & Rates Page 6

Person shall mean any individual, firm, association, organization, partnership, trust, company, corporation or entity and any municipal, political or governmental corporation, district, body or agency other than the District Premises shall mean an individual residential or commercial unit or property served by the water system Private Fire Protection shall mean service through a line to hydrants used to extinguish accidental fires not located within a public dedicated and accepted right-of-way. Notwithstanding any other provision of these Rules, Regulations & Rates or any other District policy, the District is not responsible for testing, certifying, or maintaining private fire hydrants. Private fire hydrants include those maintained by non-governmental entities such as homeowners associations, businesses, or private property owners. Fire hydrants are not considered part of the District s water system and are not necessary for the functioning of the District s water system. Self-Help is where a customer or other person addresses or attempts to address an issue, such as restoring or attempting to restore water service to their property (e.g., turning the water back on themselves after it has been shut off by the District), without contacting the District or without following the District s approved procedures and policies Service Area shall mean the boundary of the Virgin Valley Water District as defined by Assembly bill 608 adopted by the 1995 Legislature and such other areas that may be included or excluded by resolution adopted by the District Board or other legal governing entity (Revised January 2002) Service and Connection Classifications: Combined Water Service shall mean service connections through which potable water is obtained for the dual purpose of fire protection and domestic use Commercial Service shall mean service connections to office buildings, private clubs, motels, hotels, department stores, restaurants, clubs, schools, or other commercial buildings or structures or for any commercial purpose other than construction (compare Construction Water). Domestic Service shall mean service connections through which water is obtained for all purposes exclusive of fire protection, but including residential, commercial and industrial uses Emergency Service Connection shall mean a temporary service connection required to provide water service to safeguard health and protect private or public property subject to the conditions governing temporary service connections Interim Services shall mean non-permanent connections for water service for use during the construction of subdivisions, other construction projects, and in certain instances, for emergency service Rules, Regulations & Rates Page 7

Non-Standard Connection shall mean a service connection installed at a location not adjacent to the property served and where there will never be a main installed contiguous to the property Private Fire Service shall mean a service connection through which water is delivered to private property for fire protection exclusively (see also Private Fire Protection). Residential Service shall mean the water piping, meter, meter box fittings and valves from the main to a customer in a single-family dwelling, mobile home, building, or in an individual flat, condominium or apartment in a multiple family dwelling or building or portion thereof occupied as the home, residence or sleeping place for one or more persons Service Connection shall mean the lateral pipe from the point of connection to a District water main, to and including the piping curb stop valve and/or meter box sf shall mean square feet Shall is a term used to indicate that something is mandatory (compare to May ) Shares mean water shares of stock in either the Mesquite Irrigation Company (MIC) or Bunkerville Irrigation Company (BIC). Standard Service Connection or Permanent Service Connection shall mean a service connection installed at a location adjacent to the property being served Surface Water means all water open to the atmosphere and subject to surface runoff (NAC 445A.2268) System Development Charge (formerly referred to as an impact fee) means a charge imposed by the District to finance the costs of a capital improvement or facility expansion necessitated by or attributable to new development or new customers. Temporary Service Connection shall mean a service connection installed at a location not adjacent to the property served and which is subject to removal or relocation at such time as a main is constructed. Temporary service connection will be no longer than 90 days unless otherwise approved by the General Manager. Water service lateral or lateral means a pipe that conveys water from a water main to the point of use of the water. (NAC 445A.6659) Water Rights mean waters of the State of Nevada appropriated for beneficial use by the Nevada State Engineer for the legal holder of the water rights to use for municipal, farming, ranching, mining, and industrial purposes. Rules, Regulations & Rates Page 8

SECTION III ORDINANCES III-1 Ordinance No. I IMPROPER/ILLEGAL WATER SERVICE Summary: An ordinance permitting the District to discontinue water service for improper or illegal water service. 1. If the District discovers that a Customer improperly or illegally connected to, or altered water service, service to that Customer may be discontinued without notice and those responsible for such connections will be subject to fines and penalties provided by law. An improper or illegal connection includes, but is not limited to, receipt of unmetered water through District facilities in a non-emergency situation and/or receipt of water through District facilities where connection or other appropriate fees are unpaid. 2. Service will not be restored until: a. The Customer has complied with all rules and requirements of the District; b. The District has been reimbursed for the full amount of the service rendered; and, c. The District has been reimbursed for the actual cost to the District incurred by reason of the improper or illegal use, including court costs and legal fees. Originally APPROVED on the 13 th day of September, 1995. AYES: Reber, Hardy, C. Leavitt, Jensen, V. Leavitt NAYES: None ABSENT: None ABSTENTIONS: None VIRGIN VALLEY WATER DISTRICT By: Samuel A. Reber President ATTEST: Cecil Leavitt Secretary Original on file with the Virgin Valley Water District III-2 Ordinance No. II VIRGIN VALLEY WATER DISTRICT Rules, Regulations & Rates Page 9

ORDINANCE II As Amended on March 7, 2017 CONDITIONAL COMMITMENTS FOR WATER SERVICE Summary: An ordinance relating to the issuance of Conditional Commitments for Water Service. 1. CCWS Application and Fee. The Virgin Valley Water District may issue a Conditional Commitment for Water Service ( CCWS ) whereby the District commits to provide water service to certain real property located within the District s authorized service area and to which the District has not previously provided water service. A person ( Applicant ) desiring such water service to be provided to the Applicant s property (herein Property ) shall submit a CCWS Application and pay the applicable CCWS Fee as set forth in the District s Schedule of Fees. The CCWS Fee shall be based on the amount of water Applicant requests the District to conditionally commit to Applicant s Property. 2. Conditions. Pursuant to NAC 445A.6577, the District s Charter (Chapter 100 of the Nevada Statutes, as amended), and as otherwise permitted by law; every CCWS shall be subject to certain conditions precedent (collectively the Conditions ). Failure to satisfy the Conditions as set forth in the District s Charter, this Ordinance, or the CCWS may result in the termination of the CCWS and any related commitments. 3. Dedication of Facilities. a. As a condition precedent to receiving water service, at Applicant s expense and as reasonably determined by the District, Applicant shall provide and dedicate to the District: i. any facilities for water treatment, supply, storage, transmission and distribution, treatment and disposal, and appurtenances (such as wells, pipelines, pumps and storage tanks) located within or outside of the Property which are reasonably necessary to provide and serve water to the Property (herein collectively Facilities ); ii. any easement or legal access reasonably necessary to insure an adequate water supply to the Property; and iii. any other improvements, property, materials, or appurtenances reasonably related to the District s provision of water service to the Property. b. The District may permit the use of the dedicated Facilities by other governmental entities, public or private utilities, or any other person or entity, including those engaged in providing water, storm drainage, or sewer service. Rules, Regulations & Rates Page 10

c. The Facilities must be designed and constructed in accordance with the District s standards, specifications, and any other requirements reasonably recommended by the District including, but not limited to, plan checking, design review, inspections, and system testing. 4. CCWS Annual Renewal. Subject to Applicant s compliance with all applicable Conditions, the CCWS shall remain in effect for one year from the date the CCWS is issued ( Issuance Date ). If at least ninety percent (90%) of the water committed under a CCWS is not put to beneficial use on the Property within one year of the Issuance Date, Applicant shall be required to renew the CCWS on annual basis in order to avoid termination. Applicant may renew the CCWS in accordance with the requirements and conditions of the CCWS and Section IV-7 of the District s Rules, Regulations & Rates (as amended). Applicant s failure to timely renew the CCWS shall result in its termination. 5. Reliance by the District. Upon issuing the CCWS and in reliance on Applicant s request for water service, VVWD will take steps and continue its efforts to develop, procure, expand, and improve its water rights portfolio and ability to meet the increased water service demands imposed by new construction and new water connections within VVWD s service area. These efforts may take several years and entail considerable expense to the District due to the difficulty and complexity involved. In consideration of Applicant s compliance with all Conditions, including the payment of the CCWS Fee, the District s issuance of the CCWS provides Applicant with a time-limited commitment for water service. 6. CCWS Termination. A CCWS will automatically expire, terminate and be considered void one year from the Issuance Date or one year from the date of an approved renewal of the CCWS, as applicable, unless timely renewed in accordance with the requirements and conditions of the CCWS and Section IV-7 of the District s Rules, Regulations & Rates (as amended). A CCWS may also be terminated based on Applicant s failure to satisfy any of the Conditions including, but not limited to, any cancellation of the building permit for the project (herein Project ) for which the CCWS was issued; cancellation of the Final Map (or the Final Map becoming inactive); or the reversion, merger, or re-subdivision of the Property. In the event of any CCWS termination and to the maximum extent allowed by law, the District shall not refund any CCWS Fee or pay any expenses incurred by the Applicant for the construction and dedication of Facilities or other improvements. The District may record notice of any cancellation or termination of a CCWS with the county recorder. 7. CCWS Reinstatement. Within 45 days after any termination of the CCWS, Applicant may submit a written request to the District for reinstatement. No request for reinstatement of a CCWS made more than 45 days after termination shall be considered. Applicant s request for reinstatement of the CCWS shall proceed as set forth in Rules, Regulations & Rates Section IV-7 and the CCWS. If the CCWS is terminated and not reinstated, it shall be considered entirely void and of no further effect whatsoever. If water service is subsequently desired after termination of a CCWS, a new CCWS shall be required including satisfaction of all requirements and conditions associated with a standard CCWS Application including the payment of standard CCWS Fees. Prior fee payments shall not be credited towards any new or other CCWS Application. 8. Fees Nonrefundable. All CCWS Fees and Annual Renewal Fees are nonrefundable. Rules, Regulations & Rates Page 11

9. Limited Transferability. Excess CCWS Fees paid by an Applicant which are no longer useable at the Property may be transferred to another property in limited circumstances and in accordance with the District s Rules, Regulations & Rates. 10. Water Availability. To the maximum extent permitted by law, the District shall not be liable nor found to be in breach of any obligation or expectation to supply water pursuant to an issued CCWS or otherwise which arises from any circumstances outside the reasonable control of the District, including but not limited to, any of the following: changes in water supply, water system break or malfunction, pipe or pump failure, inadequate runoff, poor quality, accident, injury, emergency, lack of power or fuel, act of God, the elements, drought, climate change, fire, flood, strikes, riots, terrorism, the public enemy, or any other unforeseeable event or circumstances outside the District s reasonable control. To the maximum extent allowed by law, no liability shall attach to the District for any failure to accurately anticipate or estimate the quantity or availability of water supply. The District s judgment in these matters shall not be questioned unless arbitrary or capricious. Circumstances may arise at any time such that it may become necessary for the District to ration, conserve, or otherwise curtail water service and the District shall not be liable for acting in response to such circumstances. This Amendment to Ordinance II was APPROVED and ADOPTED this 7th day of March, 2017 by the following vote of the Board of Directors: Ayes: Nephi Julien, Barbara Ellestad, Richard Bowler, Ben Davis and Travis Anderson Nays: None Abstentions: None /s/ Nephi Julien Nephi Julien, President Virgin Valley Water District ATTEST: /s/ Mary Johnson Mary Johnson, Secretary Virgin Valley Water District SECTION IV SYSTEM DEVELOPMENT CHARGES, CONNECTION, AND SERVICE FEE POLICIES AND SCHEDULES IV-1 Meter Installation Fee A meter installation fee shall be charged for all new connections and developments based on the meter size as shown on the CCWS, System Development, and Meter Install Schedule. Rules, Regulations & Rates Page 12

The meter installation fees are for meters only. All meters shall be purchased through the District and any additional materials used or furnished by the District will also be billed to the customer. The contractor or developer may construct the meter box or vault to the specifications of the District. Meter boxes or vaults installed by personnel of the District will be billed on a time and materials basis. Hot Taps are not included in the connection fees and will be billed as an extra. IV-2 Installation of Water Meters Water meters are required and those desiring water must pay the applicable water meter fee. Installation of meters must be done by or authorized by the District. All meters shall be installed at the property line unless an alternate location is approved, in writing, by the District. All meters are and shall be owned by the District. By-pass meters shall be required for all 3 inch or larger meters. For customers with bypass meters, one bill is issued by the District which includes charges for both the bypass meter and the District s regular water service charges. A customer or other person requesting water meter installation must give the District at least 48 hours advance notice on a regular work day before the requested water meter(s) is installed. IV-3 Transfers of Paid CCWS Fees, System Development Charges, and Water Meters A party (herein the Applicant ) may request that previously paid CCWS Fees, System Development Charges, and/or water meters be transferred from one property and applied to another on the conditions set forth below. The real property served by the meter and for which CCWS Fees and System Development Charges were previously paid is referred to herein as the Old Property. The real property to which the Applicant requests to transfer the meter, paid CCWS Fees, and paid System Development Charges is referred to herein as the New Property. 1. Application and Transfer Fee. The Applicant shall complete an Application to Transfer ( Application ) and shall pay a transfer fee. The transfer fee shall be set by the District and shall be included with the District s schedule of fees. The transfer fee may be changed from time to time in the same manner as the District s other fees. The Application shall be denied if the Applicant has overdue or outstanding fees owed to the District. 2. Meter and Paid Fees Must Be Unusable at the Old Property. The meter and paid CCWS Fees, and System Development Charges must no longer be useable at the Old Property and the Applicant must provide reasonable documentation evidencing the same, such as an amended map (or similar document) duly recorded in the county records establishing that the meter, paid CCWS Fees, and paid System Development Charges can no longer be used at the Old Property. 3. The New Property. In order to transfer meters and paid System Development Charges to the New Property, the Applicant must first have paid applicable CCWS Fees for the New Property. Meters, paid CCWS Fees, and paid System Development Charges shall not be transferrable unless the Rules, Regulations & Rates Page 13

Applicant identifies the specific lot(s) or parcel(s) of the New Property where the meter, fees, and charges are to be transferred. If the Application is approved, the meter, fees, and charges shall be transferred only to the New Property identified in the Application. The Applicant shall also provide documentation evidencing that all other standard conditions for establishing water service to the New Property have been satisfied consistent with the District s standard policies, rules, and regulations. 4. Upsizing of Meter and Increased Fees. The size of the water meter and expected water usage at the Old Property must be the same as at the new Property, or Applicant shall pay the increased CCWS Fees and System Development Charges and any other applicable charges associated with a larger water meter. Additional fees and charges shall be calculated based on those fees and charges in effect at the time the transfer Application is submitted. 5. Application Must Be Submitted Within One Year. If applicable, an Application may be denied if it is not submitted with all supporting documentation within one year of when the meter and/or paid CCWS Fees or paid System Development Charges became unusable at the Old Property. 6. Cancellation of Building Permit and Approvals. The Applicant shall provide the District with documentation demonstrating that any building permits issued and other entitlements associated with the Old Property have been terminated and cancelled by the City of Mesquite, Clark County, or other applicable governmental entity. The Applicant must also provide documentation evidencing that the City of Mesquite, Clark County, or any other applicable governmental entity has been notified and has consented in writing to the proposed transfer, if required. 7. Rights of Third-Parties. The Applicant shall certify within the Application that no third party s rights or interests will be harmed or negatively affected as a result of any transfer. Additionally, the Applicant shall provide the District with a title report for the Old Property, issued within thirty (30) days of the date that the Application is submitted to the District, or such other evidence of title to the Old Property as may be acceptable to the District. The title report (or other evidence of title) must demonstrate that the requested transfer will not harm or negatively affect any third party that may have an interest in the Old Property. Notwithstanding, the District shall bear no responsibility to ascertain whether any third party s rights may actually be harmed by any transfer or to otherwise verify the Applicant s representations or authority. If it appears that the rights or interests of a third party may be harmed or negatively impacted by the transfer, the Application shall be denied unless such third party provides written consent to the transfer and agrees to hold the District harmless from any and all claims associated with the proposed transfer. 8. Ownership and Authority. The Applicant shall provide documentation, acceptable to the District, evidencing that the Applicant is the owner of the Old Property and the New Property (see Common Ownership ), with full rights and authority to convey. If either property is owned by a limited liability company or other entity, the Applicant shall provide a resolution or such other reasonable documentation necessary to evidence the Applicant s authority to act on behalf of the entity. Notwithstanding, the District shall bear no responsibility to ascertain or verify ownership or authority. Rules, Regulations & Rates Page 14

9. Applicant Acting on Behalf of Owner. If the Applicant is acting with authority on behalf of the property owner, the Applicant must demonstrate that the property owner has given the Applicant written authority to submit the Application and to otherwise act on behalf of the owner in connection with the transfer request. The Applicant shall also provide written documentation that the property owner has agreed to release and hold the District harmless from any and all claims that may arise in connection with the requested transfer. Additionally, even if the Applicant has proper authority from the owner, the owner must still comply, as applicable, with the other requirements set forth herein. The District shall bear no responsibility to ascertain or verify the Applicant s authority. 10. Common Ownership. For a transfer request to be approved there must be common ownership in the Old Property and the New Property. For purposes of this policy, common ownership means an identical owner(s) of both properties. Or, in circumstances where the Old Property and the New Property are owned by different legal entities, the Old Property and the New Property shall be deemed to have common ownership if: (1) one property is owned by a person and the other property is owned by an entity of which that person holds at least eighty percent (80%) of the entity s ownership and voting rights; (2) the entities owning the two properties have one or more common owners who hold at least eighty percent (80%) of the ownership and voting rights in both entities; or (3) the entity that owns one of the properties is a wholly owned subsidiary of the entity that owns the other. 11. Indemnification by Applicant. The Application shall include a provision whereby the Applicant agrees to indemnify, defend, and hold the District harmless from any and all claims that may arise in connection with the transfer. Such indemnification shall include the Applicant s payment of all of the District s costs, expenses and attorneys fees associated with any such claim. 12. Void Transfers. Any attempted transfer failing to meet the conditions set forth herein shall be void. 13. Application Review. In extraordinary circumstances, the Applicant may be required to pay the District s actual expenses incurred in reviewing the Application and the documentation submitted by Applicant, in addition to the standard transfer fee. The review of the Application and associated administrative work may take several days to complete. 14. No Refund of Fees. Under no circumstances shall the CCWS Fees, System Development Charges, or any other fee be refunded. 15. Re-Application for Water Service. Following any approved transfer, if there is ever a desire to reestablish water service to the Old Property, all standard conditions required in order to establish initial water service must be satisfied including, without limitation, the payment of CCWS Fees, System Development Charges, connection fees, and all other applicable fees. 16. Enforceability. In the event any portion of this policy is ever declared by any court of competent jurisdiction to be invalid, illegal, or unenforceable, such portion shall be deemed severed from this policy, and the remaining parts, including without limitation the remaining parts of the paragraph of which any invalid, illegal or unenforceable portion was a part, shall remain in full force and Rules, Regulations & Rates Page 15

effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this policy. IV-4 Monthly Service Charge Monthly water rates and charges for all classifications of service are based on the meter size and charged in accordance with the table Monthly Water Rates and Charges. IV-5 Fees Subject to Change The District may, from time to time, change the fees and charges in response to the costs of operation and other relevant factors. The District will provide notice of any changes in water rate fees and charges as required by law. IV-6 Request for a Conditional Commitment for Water Service (CCWS) A person (Applicant) may request that the District issue a Conditional Commitment for Water Service (CCWS) (formerly known as a will-serve letter) by adhering to the applicable process set forth below. PROCESS FOR OBTAINING A CCWS FOR RESIDENTIAL PROPERTY 1 1. Applicant shall submit the following to the District: a. a completed CCWS Application to obtain a Water Availability Letter b. a tentative map (8½ x 11 ) c. 2 sets of improvement plans prepared in accordance with the District s Design Standards and Specifications (24 x 36 ) d. The District s plan review fee (see Fee Schedule) 2. Subject to water availability, if applicable, the District will provide Applicant with a general water availability letter and inform Applicant of the requirements Applicant must satisfy to obtain a CCWS and the conditions that will apply to any CCWS the District may issue. 3. The District will review the Applicant s plans, provide comments, and any required modifications; Applicant shall revise the plans according to the District s review (as applicable) and submit revised plans for review and signature. 4. Once approved, Applicant shall provide 2 sets of the fully approved plans to the District. 5. Applicant shall pay CCWS Fees (calculated based on the information provided in the Application and the Final Map) and submit a completed CCWS form to the District. 6. After submitting all other required documents and paying all required CCWS Fees, Applicant shall submit a Final Map for signature by the District. After the Final Map is recorded, Applicant will provide the District with a copy of the recorded Final Map (8 ½ x 11 ). 7. Subject to water availability at the time Applicant satisfies all of the requirements; the District will issue a CCWS to the Applicant. The CCWS shall provide that the CCWS is 1 This application process is not applicable to minor subdivisions of land creating no more than four lots. The CCWS application process for minor subdivisions is set forth below. Rules, Regulations & Rates Page 16

valid for one year from the date of issuance unless renewed. Renewal of a CCWS shall be done in accordance with Section IV-7. 8. Applicant completes construction of improvements and obtains necessary final approvals. If Applicant is required by the City or the County to restart the application process for its Development due to a failure to timely complete construction, Applicant shall be required to restart the application process including completing a new CCWS Application, resubmitting improvement plans for review, and paying all applicable fees. 9. After construction is completed, Applicant shall provide the District with 2 sets of as-builts in both paper and digital formats. 10. Applicant shall pay System Development Charges and installation fees. Meters will be installed and monthly water service will commence upon Applicant s payment of all System Development Charges and installation fees. PROCESS FOR OBTAINING A CCWS FOR MINOR SUBDIVISION 1. Applicant shall first submit the following to the District: a. a completed CCWS Application to obtain a Water Availability Letter b. 2 sets of improvement plans prepared in accordance with the District s Design Standards and Specifications (24 x 36 ). c. The District s improvement plan review fee (see Fee Schedule). 2. Subject to water availability and if applicable, the District will provide Applicant with a general water availability letter and inform Applicant of the requirements Applicant must satisfy to obtain a CCWS and the conditions that will apply to any CCWS the District may issue. 3. The District will review the Applicant s improvement plans, provide comments, and any required modifications; Applicant shall revise the improvement plans according to the District s review and submit revised plans for review. 4. Applicant shall pay CCWS Fees (calculated based on the information provided in the Application) and submit a completed form CCWS to the District. 5. Once approved, the District will sign Applicant s plans evidencing plan approval by the District and Applicant shall then submit 2 sets of fully approved plans. Applicant will provide the District with a copy of any recorded parcel map for the minor subdivision. 6. Subject to water availability at the time Applicant satisfies all of the requirements, the District will issue a CCWS to the Applicant. The CCWS shall provide that the CCWS is valid for one year from the date of issuance unless renewed. Renewal of a CCWS shall be done in accordance with Section IV-7. 7. Applicant completes construction of improvements and obtains necessary final approvals. If Applicant is required by the City or the County to restart the application process for its Development due to failure to timely complete construction, Applicant shall be required to restart the application process including completing a new CCWS Application, resubmitting improvement plans for review, and paying all applicable fees. 8. After construction is completed, Applicant shall provide the District with 2 sets of as-builts in both paper and digital formats. 9. Applicant shall pay System Development Charges and installation fees. Meters will be installed and monthly water service will commence. Rules, Regulations & Rates Page 17

PROCESS FOR OBTAINING A CCWS FOR NONRESIDENTIAL PROPERTY 1. Applicant shall first submit the following to the District: a. a completed CCWS Application to obtain a Water Availability Letter b. 2 sets of improvement plans prepared in accordance with the District s Design Standards and Specifications (24 x 36 ). c. The District s improvement plan review fee (see Fee Schedule) 2. Subject to water availability and if applicable, the District will provide Applicant with a general water availability letter and inform Applicant of the requirements Applicant must satisfy to obtain a CCWS and the conditions that will apply to any CCWS the District may issue. 3. The District will review the Applicant s improvement plans, provide comments, and any required modifications; Applicant shall revise the improvement plans according to the District s review and submit revised plans for review. 4. Applicant shall pay CCWS Fees (calculated based on the information provided in the Application) and submit a completed form CCWS to the District. 5. Once approved, the District will sign Applicant s plans evidencing plan approval by the District and Applicant shall then submit 2 sets of fully approved plans. 6. Subject to water availability at the time Applicant satisfies all of the requirements, the District will issue a CCWS to the Applicant. The CCWS shall provide that the CCWS is valid for one year from the date of issuance unless renewed. Renewal of a CCWS shall be done in accordance with Section IV-7. 7. Applicant shall ensure a backflow device is installed and tested and Applicant shall promptly provide the written test results to the District. 8. Applicant completes construction of improvements and obtains necessary final approvals. If Applicant is required by the City or the County to restart the application process for its Development due to failure to timely complete construction, Applicant shall be required to restart the application process including completing a new CCWS Application, resubmitting improvement plans for review, and paying all applicable fees. 9. After construction is completed, Applicant shall provide the District with 2 sets of as-builts in both paper and digital formats. 10. Applicant shall pay System Development Charges and installation fees. Meters will be installed and monthly water service will commence. Plan check fees may be found on the District s Fee Schedule. IV-7 Annual Renewals of Conditional Commitments for Water Service The District issues Conditional Commitments for Water Service (herein a CCWS ) committing to provide water service to certain real property within the District s service area. Each CCWS is subject to certain conditions and limitations (herein Conditions ) as contained in the CCWS, in the District s Charter (Chapter 100 of the Nevada Statutes as amended), in the District s Rules Rules, Regulations & Rates Page 18

Regulations & Rates (as amended), and pursuant to NAC 445A.6577 or other applicable law. Failure to satisfy a Condition may result in termination of the CCWS. The holder of a CCWS (herein Holder ) shall renew the CCWS on an annual basis. A CCWS that is not renewed expires and all commitments associated therewith are terminated and void. Annual Renewal Requirements. Provided a Holder has complied with all other terms and Conditions as stated in a CCWS, a Holder may renew a CCWS by submitting a completed Annual Renewal Form and by demonstrating that the Holder s property for which the CCWS was issued is still under development. Property shall be deemed under development if the Holder demonstrates each of the following: (1) The building permit for the property is not cancelled or expired; (2) Any final map associated with the property is not cancelled or inactive; and (3) The Holder has, within the immediately preceding 12 months, contributed towards the development of the property: a. Money equal to ten percent (10%) of the total estimated remaining development costs of the property, including planned improvements; or b. Labor, services or improvements with a fair market value of at least 10 percent (10%) of the total estimated remaining development costs of the property, including planned improvements. A Holder may satisfy the ten percent (10%) contribution requirement by demonstrating a greater than ten percent (10%) contribution in a previous year. Such excess contribution(s) may carry over and be applied to one or more subsequent years provided, in total, they represent a contribution of at least ten percent (10%) per year towards completion of the project. 2 In lieu of demonstrating satisfaction of the ten percent (10%) contribution requirement, a Holder may pay an annual renewal fee, according to the District s Fee Schedule, for each EDU which has not yet been put to beneficial use. Exempt Properties. No renewal shall be required where at least ninety percent (90%) of the water committed under a CCWS has already been put to beneficial use. 3 Other Conditions and Limitations of a CCWS. The renewal requirements stated above are in addition to all requirements, terms, limitations, and Conditions as set forth in the CCWS. 2 By way of illustration, if a project is estimated to cost a total of $1 million to complete (including planned improvements) and the Holder demonstrates a contribution of $300,000 towards completion, the Holder may satisfy its ten percent (10%) contribution requirement for three years. 3 By way of illustration, if a subdivision has 10 similar size lots and homes have been constructed on and standard water service has commenced to at least 9 of the homes, no further renewals shall be required to keep the CCWS active. Rules, Regulations & Rates Page 19

Therefore, a Holder must satisfy all renewal requirements set forth above and must be in full compliance with all terms, limitations, and Conditions stated in the CCWS. CCWS Reinstatement after Termination. A CCWS that is not renewed in accordance with the provisions set forth above expires and is terminated. Within 45 days after any termination, the Holder may submit a written request to the District for reinstatement. No request for reinstatement of a CCWS made more than 45 days after termination shall be considered. The written request shall provide the basis for Holder s request and Holder shall include proper supporting documentation. Holder shall bear the burden of demonstrating good cause for reinstatement. Any request for reinstatement is first reviewed and may be approved by the District s General Manager. If the General Manager denies the request, Holder may, within 14 days of the General Manager s written denial, ask in writing that the District s Board of Directors review Holder s reinstatement request. The District s Board of Directors considers a Holder s written request for reinstatement at a public meeting of the District and holds a public hearing in connection therewith. Factors guiding the District s decision concerning a reinstatement request include the following: i. Whether the cause for the termination of the CCWS was within the reasonable control of the Holder, whether the termination is the result of excusable neglect, and the degree of fault attributable to the Holder; ii. iii. iv. The percentage of work, effort, and money Holder has been contributed to the project compared to the work, effort, money, and time needed for completion and the Holder s ability, commitment, and financial wherewithal to complete it; The value or importance of the project to the community; The water resources available to the District at the time the request for reinstatement is made and any unique difficulty the District would have in providing water service to the property; v. Any unusual facts or circumstances peculiar to the project and any other factors reasonably related to whether the Holder has shown good cause for reinstatement. The District s Board of Directors may deliberate upon and take action to approve or disapprove a Holder s reinstatement request immediately following the public hearing or the Board may table the matter to be deliberated and acted upon at the next regular public meeting. In the event the Board finds good cause for reinstatement, the Board may reinstate the CCWS on the same conditions as stated therein or the Board may impose additional or different conditions, which shall supersede the conditions stated therein. If a CCWS is terminated and not reinstated, it shall be considered entirely void and of no further effect whatsoever. Subsequently, if water service is desired for the property, a new CCWS shall be required along with satisfaction of all requirements associated with a CCWS application including the payment of all fees. Fees previously paid in connection with a cancelled will-serve letter or CCWS shall not be applied towards a new CCWS. Rules, Regulations & Rates Page 20

Fees Are Nonrefundable. All fees paid in connection with obtaining a will-serve letter or CCWS and all renewal fees are nonrefundable. Water Availability. To the maximum extent permitted by law, the District shall not be liable nor found to be in breach of any obligation or expectation to supply water pursuant to an issued CCWS or otherwise which arises from any circumstances outside the reasonable control of the District, including but not limited to, any of the following: changes in water supply, water system break or malfunction, pipe or pump failure, inadequate runoff, poor quality, accident, injury, emergency, lack of power or fuel, act of God, the elements, drought, climate change, fire, flood, strikes, riots, terrorism, the public enemy, or any other unforeseeable event or circumstances outside the District s reasonable control. To the maximum extent allowed by law, no liability shall attach to the District for any failure to accurately anticipate or estimate the quantity or availability of water supply. The District s judgment in these matters shall not be questioned unless arbitrary or capricious. Circumstances may arise at any time such that it may become necessary for the District to ration, conserve, or otherwise curtail water service and the District shall not be liable for acting in response to such circumstances. IV 8 Amended Final Maps Applicant shall comply with the process set forth below in the event of any desired amendment to the final map. Applicant shall first contact the District and describe the nature of the amendment. Based on the type of proposed amendment, the District will advise the Applicant what specific information and documents will be required in connection with the District s review of the proposed amended map. 1. A copy of the proposed amended final map (8½ x 11 ). 2. The Amended Final Map Base Fee (see District Fee Schedule). 3. A completed CCWS Application and a cover letter describing the specific changes that are associated with the amendment and all information and documentation specified by the District based on the nature of the amendment (see section IV-6). 4. Applicant shall submit two (2) sets of the modified improvement plans (24 x 36 ) (if applicable to the amendment), which shall conform to the District s Design Standards and Specifications. 5. If the proposed amendment requires modification to the improvement plans, Applicant shall also pay the District s Plan Check Fee for review of the modified improvement plans. 6. Applicant shall pay additional CCWS Fees and Division of Water Resources (DWR) transfer fee if lots have been added to the subdivision or if otherwise applicable (see CCWS, System Development, and Meter Install Fee Schedule). Applicant may submit a request to transfer CCWS Fees paid for any lots that have been removed from the subdivision subject to the Rules, Regulations & Rates Page 21

terms of the District s policy on the transfer of CCWS Fees. (see IV-3 Transfers of Paid CCWS Fees, System Development Charges, and Water Meters) 7. Applicant shall pay the applicable per lot fee based on the number of lots affected by the amendment (see District Fee Schedule). 8. If approved, an amended CCWS will be issued once Applicant has complied with all of the above requirements and has paid all applicable fees. 9. Applicant shall add and/or abandon all laterals prior to the District issuing a receipt for permits with the City or the County for any amended lots. Applicant shall notify the District s Inspector within 48 hours in advance of construction for all additions and abandonments to allow the District Inspector time to inspect all changes to waterlines and any other modifications. 10. Applicant shall provide plot plans to the District for all amended lots showing all utilities both vacated and active (8½ x 11 ). 11. Upon Applicant s payment of all applicable fees for System Development Charges and meter installation(s), the District will issue a receipt of payment and generate a work order to install the meter. Standard water service is available and monthly billing commences upon Applicant s payment of install and meter fees and the installation of the meter. All of the same conditions as stated in the CCWS shall apply to any and all amended lots and shall remain in effect as to all other lots. Rules, Regulations & Rates Page 22

Meter Size CCWS, SYSTEM DEVELOPMENT, AND METER INSTALL SCHEDULE Equivalent Meter Ratio Impact Fee Ordinance II Fee Installation Cost Total Fee DWR* Transfer Fee Total Fee 5/8 x ¾ 1 2,120 3,300 250 5,670 100 5,770 1 2 4,240 6,600 400 11,240 200 11,440 1½ 5 10,600 16,500 660 27,760 500 28,260 2 8 16,960 26,400 700 44,060 750 44,810 3 16 33,920 52,800 1,020 87,740 750 88,490 4 25 53,000 82,500 1,370 136,870 750 137,620 6 50 106,000 165,000 2,900 273,900 750 274,650 8 80 169,000 264,000 3,150 436,750 750 437,500 10 115 243,800 379,500 4,330 627,630 750 628,380 12 155 328,600 511,500 4,835 844,935 750 845,685 The transfer fee is paid only once. Example: The total transfer fee for a 50-home subdivision would Equivalent Meter Ratio: The ratio of safe operating capacity of various sizes of meters, relative to the capacity of a 5/8 X ¾ meter as determined by the American Water Works Association Manual of Practice 1, latest edition, with local meter capacities incorporated. CCWS Fee: A fee to obtain a conditional commitment for water service to real property located in the District s authorized service area that has not previously received water service. System Development Charge: A charge to finance growth related or capacity related water facilities. Meter Installation Charge: A charge for District staff to install a water meter at the property. Division of Water Resources Transfer Charge: An administrative charge to cover District costs to prepare and file various documents relating to water rights. Rules, Regulations & Rates Page 23

MONTHLY WATER RATES AND CHARGES Rules, Regulations & Rates Page 24