PALOMINO LAKES MUTUAL WATER COMPANY

GENERAL POLICIES

Draft Rev: June 16, 2004

 

The following shall be the policy to be used in concert with the By-laws and CC&R's.

 

 

1. Budget.  An incoming Board will assess the company budget’s health and the status of capital improvement projects as one of their first orders of business.  Budget projections will be reviewed and maintained as well as any long-term capital upgrade plans.  An annual rate increase is highly recommended to ensure the Collections to Expenditures ratio remains greater than 100%.

 

2. Purchases  All purchases will be known in advance to at least one other member of the board.   Receipts will be annotated with the proper company accounting category under which that expense should be assigned before it is submitted to the bookkeeper for reimbursement.  When purchases are contemplated or made, the following considerations will be taken.

 

• Exceeding $50: All purchases shall be done by the use of an approved PLMWC Purchase Order form.  Purchase Orders will be authorized (and when possible) signed by two officers of the company.  When the order is placed by phone, a copy of the P.O. will be sent to follow-up the phone order.  The company bookkeeper will be sent a copy of the completed P.O for his or her reconciliation and files.
• Under $50: Reasonable purchases (incidental supplies, etc.) may be purchased out of pocket and submitted for reimbursement to the bookkeeper, provided at least one other officer is aware of the need.  Such submittal should follow and include full receipts as well as the reason for the purchase.

 

3. Contracts. Contracts can be entered into by the Board of Directors on behalf of the respective companies. Signatures of two Directors will be required on all contracts.

 

 

4. Sale of Water.  Water shall not be provided to those outside of the community (except prior/historical water rights) except on an emergency basis.  This is in accordance with (a) The FDA loan provisions – no sale or provision of water to commercial interests and (b) Ca. Water Permit – no provision of water outside of documented water receivers. 

 

When water is used for a community project (e.g. construction, etc.), it may be charged at a premium over standard (shareholder/property-owner) rates.

 

Note that any taking of water from unused meter box connections, stand pipes or hydrants must first be reviewed by the PLMWC Board of Directors.  Concerns to examine include:

• Proper air-gap (CCC) control for the filling of containers, including water trucks.
• Taking of water only during off-peak PG&E rate periods (no water 11am to 7pm), except under emergency and then cost will proper reflect same.

 

5. Handling payable accounts, (for contract bookkeeping). All invoices shall be accumulated by the Treasurer or bookkeeper, reviewed, approved by the Treasurer and one other Officer. Approved invoices will be given to Bookkeeper for posting to books. Checks will be prepared by Bookkeeper and returned to Treasurer or another Officer for signature and mailing. The signatures of two Officers will be required on all checks. A check made payable to any Officer cannot be co-signed by that Officer.

 

6. Handling receivable accounts, (for contract bookkeeping). All receivables shall be logged in by the Treasurer or bookkeeper, posted to books and deposited to bank by the bookkeeper.

 

7. Billings. Bookkeeper will be provided with pertinent information to prepare billings. Bookkeeper will be responsible for all billing invoices as their capabilities allow.

 

8. Aging report. An aging report on receivables will be submitted by the Bookkeeper on a weekly basis to the Board of Directors or as requested by any Officer.

 

9. Audit. An reconciliation audit will be performed a minimum of once per year, or on request by any Officer.  A full audit will be conducted on an as-needed basis due to the cost of such.

 

10. Check book. The check book will remain in the possession of the Bookkeeper .  Balances can be requested any time by any Officer.

 

11. Records.  All company records will be kept in a secure storage facility with ready access by all elected board members of the company.  Such records will be kept organized and in a easily-locatable fashion.

 

An annual board’s records (ref. Secretary’s) will be kept in an orderly fashion and will be made available to the follow-on Board, including all electronic media and representations, in a timely manner.

 

12. Complaints.  All complaints shall be sent to the Board in writing. Any Officer is willing to accept comments and suggestions by phone, but all complaints submitted in writing and signed by the originator will be acted upon by the Board.

 

 

This document was developed and approved by the Board of Directors of

the Palomino Lakes Mutual Water Company.

 

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