Governance Agreement 009-sg-2016 - Consular Visa Procedure (Category B)

The organization is hereby established with the denomination: WATER AND SANITATION BOARD OF THE RINCÓN OCOTILLO COMMUNITY, as a community service association, of indefinite duration, nonprofit in nature, and whose purpose shall be to obtain the effective participation of the community for the construction, operation and maintenance of the drinking water system in accordance with the applicable norms, procedures and regulations established in the Framework Law of the Drinking Water and Sanitation Sector and its Regulations, carrying out promotion and environmental health education work among the inhabitants of the Rincón Ocotillo community of the municipality of Nacaome, department of Valle.

The headquarters of the Water and Sanitation Board shall be located in the Rincón Ocotillo community of the municipality of Nacaome, department of Valle and shall have operations in said communities, providing drinking water service.

The water system is considered to be the delimited and protected area of the micro-watershed, the physical works of water intake, the communities for health purposes and the physical structures for sanitation work and community sanitation in each of the households. CHAPTER II OF THE OBJECTIVES

The primary purpose of these Bylaws is to regulate the normal functioning of the Water and Sanitation Board and the different committees for the administration, operation and maintenance of the system.

The organization shall have the following objectives:

• a)

  To improve the health condition of the subscribers and of the communities in general.

• b)

  To ensure proper administration of the system.

• c)

  To achieve adequate maintenance and operation of the system.

• d)

  To obtain assistance in training to improve drinking water service.

• e)

  To obtain financing to improve the drinking water supply service.

• f)

  To ensure that the population uses and manages water under hygienic and sanitary conditions in the homes in a rational manner avoiding the waste of the resource.

• g)

  To manage the necessary technical assistance to adequately maintain the system.

• h)

  To carry out surveillance work on all components of the micro-watershed system, the aqueduct and basic sanitation.

• i)

  To ensure the sustainability of drinking water and sanitation services.

For the achievement of the indicated objectives, the organization may carry out the following activities:

• a)

  To receive ordinary contributions in the form of monthly fees for water service and extraordinary contributions in the form of extraordinary fees.

• b)

  To establish permanent training programs in order to improve and maintain the health of the subscribers.

• c)

  To increase economic assets in order to ensure good operation and maintenance of the system.

• d)

  To manage and channel financial resources from national and international entities.

• e)

  To coordinate and associate with other public and private institutions to maintain the system.

• f)

  To promote the integration of the community involved in the system.

• g)

  To conserve, maintain and increase the area of the micro-watershed.

• h)

  To carry out any activity that tends to improve health and/or conserve the system. CHAPTER III OF THE MEMBERS AND CLASSES OF MEMBERS

The Water and Sanitation Administrative Board shall have the following categories of members: a.- Founding Members; and, b.- Active Members. Founding Members: Those who signed the Constitution Act of the Water Board. Active Members: Those who participate in the Users' Assemblies.

The rights of members are:

• a)

  Both classes of members have the right to voice and vote.

• b)

  To elect and be elected.

• c)

  To present initiatives or projects to the Executive Board.

• d)

  To submit petitions or initiatives that benefit the proper management of services.

• e)

  To present complaints to the service provider for deficiencies in service quality.

• f)

  To receive timely notice of scheduled service interruptions, tariff modifications and any event that affects their rights or modifies the quality of service they receive.

The obligations of members are: a.- To connect to the sanitation system. b.- To make appropriate use of the services, without damaging or putting at risk the infrastructure. CHAPTER IV OF THE BODIES AND POWERS OF EACH BODY

The direction, administration, operation and maintenance of the entire system shall be in charge of:

• a)

  Users' Assembly.

• b)

  Executive Board.

• c)

  Support Committees. OF THE USERS' ASSEMBLY

The Users' Assembly is the highest authority of the community at the local level, expressing the collective will of the subscribers who are duly convened.

The functions of the Users' Assembly are:

• a)

  To elect or remove the executive members of the Board.

• b)

  To address matters related to the interests of the Board.

• c)

  To appoint commissions or Support Committees. OF THE EXECUTIVE BOARD

After the Users' Assembly, the Executive Board is the most important governing body of the Drinking Water and Sanitation Board; and shall serve for a period of two years and may be reelected for an additional period, exercising said positions ad honorem. To be a member of the Executive Board, one must comply with the requirements established in Articles 36 and 37 of the General Regulations of the Framework Law of the Drinking Water and Sanitation Sector, and shall be comprised of seven (7) members:

• a)

  A President.

• b)

  A Vice President.

• c)

  A Secretary.

• d)

  A Treasurer.

• e)

  A Fiscal Controller.

• f)

  Two Vocal Members.

The Executive Board shall have the following powers:

• a)

  To maintain a budget of income and expenses.

• b)

  To prepare and execute the annual work plan.

• c)

  To coordinate and execute the activities of basic sanitation, operation and maintenance of the water system.

• d)

  To conduct collections of monthly tariffs and other cash income from the water service in the community.

• e)

  To deposit funds from tariff collection revenues and other cash income from the water service in the community.

• f)

  To present reports to the General Assembly of subscribers every three months.

• g)

  To cancel or suspend water service.

• h)

  To monitor and protect water supply sources, preventing their contamination and carrying out protection and reforestation actions in the micro-watershed.

• i)

  To monitor the maintenance of sanitary facilities in the homes of the subscribers.

The powers of the PRESIDENT are:

• a)

  To convene sessions.

• b)

  To open, preside over and close sessions.

• c)

  To prepare, together with the Secretary, the agenda.

• d)

  To authorize and approve, with the Secretary, the minutes of the sessions.

• e)

  To authorize and approve, with the Treasurer, any document that implies fund expenditure.

• f)

  To exercise the legal representation of the Administrative Board.

The powers and duties of the VICE PRESIDENT shall be:

• a)

  To substitute the President in case of temporary or permanent absence, in this latter case the approval of the simple majority of the General Assembly shall be required.

• b)

  To supervise the commissions that may be established.

• c)

  The other powers and duties that the Board of Directors or the General Assembly assigns to him.

The powers and duties of the SECRETARY shall be:

• a)

  To keep the minutes book.

• b)

  To authorize with his signature the acts of the President of the Board of Directors, except for matters related to funds.

• c)

  To be in charge of correspondence.

• d)

  To convene together with the President.

• e)

  To keep the subscriber registry.

• f)

  To organize the archives of the Water and Sanitation Board.

• g)

  Management of labor payroll sheets.

The powers and duties of the TREASURER shall be: The Treasurer is responsible for managing funds and archiving documents that indicate income and expenses:

• a)

  To collect and administer funds from the service of contributions and other income intended for the system.

• b)

  To be jointly liable with the President for the management and custody of the funds that shall be allocated to a bank account or to the cooperative system.

• c)

  To keep current and clear records and control of operations relating to the entry and exit of money from the Treasury of the Board (book of entries and exits, receipt stubs for income and expenses, monthly water payments).

• d)

  To report monthly to the Board on the economic and financial maintenance (bank account), with a copy to the Municipality.

• e)

  To provide subscribers with the explanations they request regarding their accounts.

• f)

  To keep an inventory of the Board's assets.

• g)

  To authorize jointly with the President any disbursement of funds.

• h)

  To present to the Assembly a report of income and expenses quarterly and annually with a copy to the Municipality.

The powers and duties of the COMPTROLLER shall be:

• a)

  To be responsible for auditing the funds of the Organization.

• b)

  To oversee and coordinate the administration of funds from the service of contributions and other income intended for the system.

• c)

  To notify the members of the Board of Directors of any irregularities found in the administration of the funds or assets of the Board.

• d)

  To keep control and conduct the audits necessary to obtain transparent administration of the organization's assets.

The powers and duties of the BOARD MEMBERS (VOCALES) shall be:

• a)

  To perform any office in a temporary or permanent manner that the Assembly or the Board of Directors assigns to them and to support the convening of the Assembly.

• b)

  The Board Members shall coordinate the Basic Sanitation Committee.

• c)

  The Board Members shall coordinate the Microcatchment Committee and their functions shall be specified in the respective Regulations.

To address matters related to the system and create communication and coordination in the community, meetings shall be held as follows: a.- Quarterly in ordinary form and when urgency arises in extraordinary form. b.- The Board of Directors shall meet once per month. OF THE SUPPORT COMMITTEES

The Board of Directors shall have the following Support Committees:

• a)

  Operation and Maintenance Committee.

• b)

  Microcatchment Committee.

• c)

  Sanitation Committee.

• d)

  Oversight Committee.

These Committees shall be integrated into the structure of the Board of Directors, their specific function is to coordinate all labor related to operation, maintenance, and conservation of the microcatchment and the health of subscribers in the time and manner determined by the Users Assembly and the regulations that establish their specific functions and internal structure, always requiring the incorporation as a member of the Operation and Maintenance Committees and the Microcatchment Committee of the Auxiliary Mayor and the Health Promoter assigned to the area as a member of the Sanitation Committee. CHAPTER V OF ASSETS

The economic resources of the Managing Board may consist of:

• a)

  Monthly water fees, sale of connection rights, fines, as well as capitalized interest.

• b)

  Movable or immovable property and labor contributed by subscribers.

• c)

  The installations and physical works of the system.

• d)

  Donations, inheritances, legacies, loans, rights, and privileges received from natural or juridical persons.

The economic resources of the Managing Board shall be used exclusively for the use, operation, maintenance, improvement, and expansion of the system. CHAPTER VI OF DISSOLUTION AND LIQUIDATION

Causes of dissolution:

• a)

  By judicial sentence.

• b)

  By resolution of the Executive Power.

• c)

  By change of objectives for which it was established.

• d)

  By any cause that makes the continuation of the Water Management Board impossible. The decision to dissolve the Water Management Board shall be resolved in an Extraordinary Assembly convened for this purpose and shall be approved by the absolute majority of its duly registered members. Once the Association is dissolved, liquidation shall proceed, and all obligations contracted with third parties shall be fulfilled, and the remainder, if any, shall be donated exclusively to philanthropic organizations, provided that these are not for-profit, as designated by the Users Assembly, also complying with what is stipulated in the Civil Code for its dissolution and liquidation.

• e)

  By agreement of two-thirds of its members. CHAPTER VII GENERAL PROVISIONS

The financial year of the Water and Sanitation Board shall coincide with the fiscal year of the Government of the Republic.

The programs, projects, or activities that the Board executes shall not be detrimental to or interfere with those carried out by the State; on the contrary, they shall aim to complement them by mutual agreement by disposition of the latter.