I. Classification of Service

All services are classified under one category to include residential, schools, churches and commercial users.

II. Rate Schedule and Tap-On Fees

A.   The rate schedule and tap-on fees shall be as established by the directors periodically and set forth in the minutes of the meetings of the directors.

III. Application for Service

A.   Service will be supplied only to those who have become members.

B.   Members will make application for service, and at the same time make the membership required below.

C.   The corporation may reject any application for service not available under a standard rate or which involves excessive service cost, or which may affect the supply of service to other customers or for other good and sufficient reasons, in which case the membership fee will be refunded.

D.   The corporation may reject any application for service when the applicant is delinquent in payment of bills incurred for service previously supplied at any location, provided that when the owner of the premises has been served water and has not paid for the same, the corporation shall not be required to render service to anyone at said location where the water was used until said water bill has been paid.

IV. Membership Fee

A.   The membership fee shall be $50.00. Membership fees shall not draw interest.

B.   The individual in whose name the membership fee is paid shall be responsible for payment of all bills incurred in connection with the service furnished.

C.   A separate membership fee is required for each meter installed.

V. Initial or Minimum Charge

A.   The initial or minimum charge, as provided in the rate schedule, shall be made for each meter installed, regardless of location.

B.   Where service is furnished to a consumer during certain months only, the minimum charge per service for the period of non-use shall be the regular minimum as set out in the published rates of the corporation.

C.   Water furnished for a given member shall be used by that member only. Each consumer's service must be separately metered at a single delivery and metering point. Each commercial unit and each storeroom or stall used for business purposes shall have a separate meter. All commercial use, including storerooms and stalls for business purposes, shall be metered separately from any residential use and vice versa, whether now in service or to be installed in the future.

VI. Corporation's Responsibility and Liability

A.   The corporation shall run a service line from its distribution line to the property line where the distribution line runs immediately adjacent and parallel to the property to be served, and for which a tap-on fee then in effect for each size of meter will be charged.

B.   The corporation may install its meter at the property line or, at the corporation's option, on the consumer's property or in a location mutually agreed upon.

C.   When two or more meters are to be installed on the same premises for different consumers, they shall be closely grouped and each clearly designated to which consumer it applies.

D.   The corporation does not assume the responsibility of inspecting the consumer's piping or apparatus and will not be responsible therefore.

E.   The corporation reserves the right to refuse service unless the consumer's lines or piping are installed in such manner as to prevent cross-connection or backflow.

F.   The corporation shall not be liable for damage of any kind whatsoever resulting from water or the use of water on the consumer's premises. The corporation shall not be responsible for any damage done by or resulting from any defect in the piping, fixtures or appliances on the consumer's premises. The corporation shall not be responsible for negligence of third persons or forces beyond the control of the corporation resulting in any interruption of service.

G.   Under normal conditions, the consumer will be notified of any anticipated interruption of service.

VII. Consumer's Responsibility

A.   Piping on the consumer's premises must be so arranged that the connections are conveniently located with respect to the corporation's lines or mains.

B.   If the consumer's piping on consumer's premises is so arranged that the corporation is called upon to provide additional meters, each place of metering will be considered as a separate and individual account.

C.   Where meter is placed on premises of a consumer, a suitable place shall be provided by consumer for placing such meter - unobstructed and accessible at all times to the meter reader. Unobstructed and accessible shall also mean no fencing and no animals in the area of the meter. If a meter is moved at the request of the member or is moved to make the meter accessible to the meter reader, the member shall pay the costs of moving the meter.

D.   The consumer shall furnish and maintain a private cutoff valve on the consumer's side of the meter; the corporation to provide a like valve on the corporation's side of such meter.

E.   The consumer's piping and apparatus shall be installed and maintained by the consumer at the consumer's expense in a safe and efficient manner and in accordance with the corporation's rules and regulations and in full compliance with the sanitary regulations of the North Carolina Department of Environmental Health and Natural Resources.

F.   The consumer shall guarantee proper protection for the corporation's property placed on the consumer's premises and shall permit access to it only by authorized representatives of the corporation.

G.   In the event that any loss or damage to the property of the corporation or any accident or injury to persons or property is caused by or results from the negligence or wrongful act of the consumer, his agents or employees, the cost of the necessary repairs or replacements shall be paid by the consumer to the corporation; and any liability otherwise resulting shall be assumed by the consumer.

H.   The amount of such loss or damage or the cost of repairs shall be added to the consumer's bill; and if not paid, service may be discontinued by the corporation.

VIII. Extensions to Mains and Services

A.   Water distribution lines to serve undeveloped subdivisions will be handled as follows:

1.   The developer will submit plans and specifications for review and approval by the corporation, its engineer and the North Carolina Department of Environmental Health and Natural Resources.

2.   Lines will be installed in accordance with the approved plans.

B.   Other extensions: extension of water lines within the corporation's service areas will be handled as follows:

1.   The plans and specifications for the extension will be submitted for review and approval by the corporation, its engineer and the North Carolina Department of Environmental Health and Natural Resources.

2.   The lines will be installed by the developer or contractor approved by Davidson Water, Inc., in accordance with approved plans and specifications.

IX. Access to Premises

A.   Duly authorized agents of the corporation shall have access at all reasonable hours to the premises of the consumer for the purpose of installing or removing corporation property, inspecting piping, reading or testing meters or for any other purpose in connection with the corporation's service and facilities.

B.   Each consumer shall grant or convey or shall cause to be granted or conveyed, to the corporation a perpetual easement and right of way across any property owned or controlled by the consumer wherever said perpetual easement and right of way is necessary for the corporation water facilities and lines so as to be able to furnish service to the consumer.

X. Change of Occupancy

A.   Not less than three days notice must be given by the member to discontinue service for a change in occupancy.

B.   The outgoing party shall be responsible for all water consumed up to the time of departure or the time specified for departure, whichever period is longer.

XI. Meter Reading-Billing-Collecting

A.   Meters will be read and bills rendered as follows: past due after 15 days of the due date; but the corporation reserves the right to vary the dates or length of period covered, temporarily or permanently if necessary or desirable.

B.   Bills for water will be figured in accordance with the corporation's published rate schedule then in effect and will be based on the amount consumed for the period covered by the meter readings.

C.   Charge for service commences when meter is installed and connection made, whether used or not. Sixty (60) days may be allowed for hookup on initial installation of the water system.

D.   Readings from different meters will not be combined for billing, irrespective of the fact that said meters may be for the same or different premises, or for the same or different consumers, or for the same or different services.

E.   Nonpayment within thirty days from the due date will result in the water being shut off without any notice thereof to such delinquent member. Upon the payment by the delinquent member of all water charges and applicable sewer charges, penalties thereon, and any reconnection charge, such member shall be entitled to resumption of the water supply. During the time of such suspension of water to a member, such member shall have no right to vote in the affairs of the corporation.

F.   Failure to receive bills or notices shall not prevent such bills from becoming delinquent or relieve the consumer from payment.

XII. Suspension of Service

A.   When services are discontinued and all bills paid, the membership fee will be refunded.

B.   Upon discontinuance of service for nonpayment of water or sewer bills, the membership fee will be applied by the corporation toward settlement of the account. Any balance will be refunded to the consumer; but if the membership fee is not sufficient to cover the bill, the corporation may proceed to collect the balance in the usual way provided by law for the collection of debts.

C.   Services discontinued for nonpayment will be restored upon payment of all charges on all accounts of the member. If the membership fee has been applied on the delinquent charges and accounts, the member shall pay a membership fee in addition to all charges on all accounts prior to restoration of services.

D.   The corporation reserves the right to discontinue its service without notice for the following additional reasons:.

1.   Leak on members side of meter.

2.   To prevent fraud or abuse.

3.   Consumers willful disregard of the corporation’s rules.

4.   Emergency repairs.

5.   Insufficiency of supply due to circumstances beyond the corporation’s control.

6.   Legal procedures.

7.   Direction of public authorities.

8.   Strike, riot, fire, flood, accident or any unavoidable cause.

9.   Non-payment of other charges on bill.

D.   The corporation may, in addition to prosecution by law, permanently refuse service to any consumer who tampers with a meter or other measuring device.

XIII. Complaints-Adjustments

A.   If the consumer believes his bill to be in error, he shall present his claim, to the corporation’s office before the bill becomes delinquent. Such claim if made after the bill has become delinquent shall not be effective in preventing discontinuance of service as heretofore provided. The consumer may pay such bill under protest and said payment shall not prejudice his claim.

B.   The corporation will make special meter readings at the request and expense of the consumer provided, however, that if such special reading discloses that the meter was overread, no charge will be made.

C.   Meters will be tested at the request of the consumer upon payment to the corporation of the expense to the corporation of making the test provided; however, that if the meter is found to over-register beyond 5 per centum of the correct volume, no charge will be made.

D.   If the seal of a meter is broken by other than the corporation’s representative or if the meter fails to register correctly or is stopped for any cause, the consumer shall pay an amount estimated from the record of his previous bills and/or from other proper data.

XIV. Abridgement or Modification of Rules

A.   No promise, agreement or representation of any employee of the corporation shall be binding upon the corporation except as it shall have been agreed upon in writing, signed and accepted by the acknowledged officers of the corporation.

B.   No modification of rates or any of the rules and regulations shall be made by any agent of the corporation.

XV. Adoption of Rules

Until further order of the board of directors of this corporation, the rules and regulations as the same are hereinabove set out are hereby adopted.