Adopted by the Board June 20, 2006, Effective July 1, 2006

For the many years the Palomino Lakes Mutual Water Company has granted credits to a property owner’s or renter’s water bill as a result of water leaks on individual properties. The current policy concerning leak credits is unclear and thus subject to interpretation, has resulted in a burden on the Board, and has been poorly communicated to property owners and renters. We have revised the existing policy so that PLMWC will have a more useful and understandable water leak adjustment procedure. In revising the policy the Board relied heavily on the City of Cloverdale water leak adjustment policy announced in November 2005. The PLMWC policy differs only slightly from the City of Cloverdale. The primary difference is that Cloverdale allows only one adjustment during the life of the account while PLMWC will permit one adjustment in a five year period.

When, on a rare occasion, a water leak occurs as a result of a crack, breech, or flaw in the property owner’s system, the PLMWC will grant a limited leak credit under certain conditions. All of the following conditions must be met.

1. The property owner or renter must make a written request for a leak credit and explain what leaked, where, plus all relevant factors. Proof that the leak was fixed is required. Copies of a contractor’s bill or supply receipts are acceptable. Requests must be made within 45 days of repair.
2. The property owner’s or renter’s PLMWC account must be current. Credits will not be considered for accounts with past due balances.
3. The water leak must not have occurred as a result of a willful or negligent act on the part of the property owner or renter.
4. The water usage must be at least double the normal usage over the same period of the previous year.
5. The property owner or renter must be able to demonstrate that the repair was made within a reasonable time.
6. The period of the leakage for which credit is granted is limited to two billing periods.

Water leak credits are limited to $200 and only one credit will be granted to a property owner during any five-year period. While renters may request and be granted credit, the five year period is based upon the property owner’s length of ownership and not the renter’s tenancy.

To determine normal usage, consumption will be compared to the same period of the past previous year. If the account is new and does not have a previous year history the PLMWC board will estimate consumption.

The decision to grant leak credits rests solely with the PLMWC board.