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Notification of Change in Operating Rules

ON JUNE 16TH, 2021, the TKPOA Board of Directors approved and adopted the following rule during the Open Board Meeting. Pursuant to Civil Code Section 4360 a Rule Change to prohibit “all landscape irrigation” for all water serviced properties and commercial customers of the TKWC. This rule replaces the emergency rule change that was in effect for 120 days, from April 1, 2021–July 8, 2021 per the TKWC memorandum dated February 28th, 2021 that documents the forecasted water shortage this coming summer due to current and potential further uranium contamination citations from the State Water Resources Board. This order will extend to all TKPOA Common areas, all Cove townhome landscaping, all single-family home landscaping, and commercial water customer properties landscaping.

The Board of Directors has implemented this operating rule based on the authority granted from the “Tahoe Keys Property Owners Association Rules and Regulations for Water Service” Section 12; Paragraph 12.3 ‘Public Hazard’, and by authority of the Davis Stirling Civil Code §4360 (d) to impose an irrigation prohibition order which is required by the limited TKWC Water Service available because of the natural occurring Uranium contamination of TKWC Wells #2 & #3, and potential threat to personal safety.

PURPOSE AND EFFECT OF ADOPTED RULE CHANGE To address the forecasted water shortage due to current and potential further uranium contamination citations from the State Water Resources Board per the Tahoe Keys Water Company’s (TKWC) February 28th, 2021 memorandum.

The TKWC is issuing an order prohibiting “all landscape irrigation” (sprinklers, drip systems, hand watering, etc.) and draining and refilling of pools, hot tubs, and spas, utilizing Tahoe Keys Water Company supplied water for all Tahoe Keys Water Company water serviced properties and commercial customers. This includes Tahoe Keys Property Owners Association (TKPOA) Common areas, all Cove townhome landscaping, all single-family home landscaping, and commercial water customer properties landscaping.

Violations of this Order: The TKWC Rules and Regulations provide the following: Water Service Section 12; paragraph 12.2 “Termination of Service” Any violation of the “Prohibition Order” may result in Water Service disconnection based on the following Written Notices issued by the TKWC.

First Violation: First written notice shall be issued by the TKWC. A written notice with return receipt requested to the owner describing the violation, a notice will also be delivered to the property. This notice must state the nature of the violation and request that the owner either (i) resolve the violation within a specified time, which shall be within 72 hours or (ii) inform the TKWC of a timeframe by which the violation will be corrected. The notice shall also describe the consequences for non-compliance, including applicable fines. To avoid imposition of fines pursuant to the procedures below, the owner must notify the TKWC when the violation has been corrected. A re-inspection of the property shall be conducted to verify compliance and shall be recorded in the file for that property.

Second Violation: Second written notice shall be issued by the TKWC. Any violation that is not resolved according to the deadline set forth in the first notice of violation is subject to fines and disconnection. A second notice of violation will be sent via certified mail stating that within 72 hours of delivery or attempted delivery of the notice, and a notice will also be delivered to the property. The owner must either remedy the violation(s) or contact the TKWC informing them of the date by which compliance will be achieved. A re-inspection of the property shall be conducted to verify compliance and shall be recorded in the file for that property.

A fine of $1,000 will be imposed on the property.

Third and Final Notice of Violation: Third written notice shall be issued by the TKWC. If a violation has not been resolved according to the deadline set forth in the second notice of violation, a third and final notice of violation will be sent via certified mail informing the owner that the violation has not been resolved and a notice will also be delivered to the property. The Board of Directors will hold a hearing to consider termination of the water service.

The hearing before the Board of Directors shall be set no fewer than ten (10) days from the mailing date of the third and final notice of violation. At the hearing, the owner has a right to appear and address the Board. If a water service disconnection is imposed, the owner shall be notified in writing of the decision within fifteen (15)

days following the Board’s decision.

A fine of $2,000 will be imposed on the property. A 48 hours’ notice will be given prior to disconnection of Water Service, the TKWC shall make a reasonable effort to contact the property owner by telephone or in person to notify the property owner that Water Service will be disconnected by a specified date and time if the violation of the third written notice is not resolved.

A re-inspection of the property shall be conducted to verify compliance and shall be recorded in the file for that property.

Recurrent Violations: In the event an owner has already committed at least two (2) prior violations for which first notices of violation have been issued, the Board of Directors may at its discretion bypass the first notice of violation and second notice of violation and start the enforcement process with the issuance of a third and final notification.

Disconnection of Water Service: Termination of Water Service due to violations charges must occur on a weekday and when the TKWC/TKPOA office is open.

Reconnection of Water Service: Once the Water Service has been disconnected through this violation process, the property owner will have to agree to, contract and pay for the reconnection of the water service with a flow restriction valve to allow for only water service to provide household water use. The cost of the installation of the flow restriction valve is estimated at $3,000 to $5,000 depending on property location.

Due Date for Fines: For non-member owners, fines imposed pursuant to these Rules and Regulations are due by the due date for the next water bill, or an alternative later date set at the Company’s sole and absolute

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Appeals: Any owner may appeal a TKWC decision by filing a written appeal with the TKWC Manager, in a form approved by the TKWC, within ten (10) days from the date of any decision made in accordance with the provisions of these Tahoe Keys Water Company – Rules and Regulations for Water Service: Section 13.

Water Service Call Charges for Service Calls Outside Regular Working Hours

In accordance with Water Section 8: SCHEDULES OF CHARGES, RATES AND FEES, 8.4 Schedule 4 – Water Service Call Charges for Service Calls Outside Regular Working Hours. For a service call outside the Company’s business hours 7:30 am–4 pm, Monday through Friday, the owner shall be charged a flat fee of $150, plus an additional $75 per hour for the Company’s time in excess of two hours.

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