Bellflower Somerset Mutual Water Company

“Form 990 is reviewed by company management and contract cpa before filing.”

“Mailing to stockholders and information available to stockholders upon request.”

“Conflict of interest policy: article i: purpose this conflict of interest policy is designed to foster confidence in the integrity of the bellflower-somerset mutual water company, a california corporation (the "corporation"), and to protect the corporation's interest when it is contemplating entering a transaction that might benefit the private interest of a director, a corporate officer, upper management or a key employee. Article ii: definitions the following are considered "insiders" for the purposes of this policy: 1. Each member of the board of directors or other governing body. 2. The officers, executive director and general manager of the corporation. 3. Any key employee, meaning an employee whose total annual compensation (including benefits) from the organization and its affiliates is more than $100,000 and who has responsibilities or influence over the organization similar to that of officers or directors. "interest" means any commitment, investment, relationship, obligation, or involvement, financial or otherwise, direct or indirect, that may influence a person's judgment, including receipt of compensation from the corporation, a sale, loan, or exchange transaction with the corporation. A conflict of interest is present when, in the judgment of the board of directors, an insider's stake in the transaction is such that it reduces the likelihood that an insider's influence can be exercised impartially in the best interests of the corporation. "transaction" means any transaction, agreement, or arrangement between an insider and the corporation, or between the corporation and any third party where an insider has an interest in the transaction or any party to it. Article iii: procedures section 1. Duty to disclose. Each insider shall disclose to the board all material facts regarding his or her interest in the transaction, promptly upon learning of the proposed transaction. Section 2. Determining whether a conflict of interest exists; recusal of insider. With regard to an insider, the board shall determine if a conflict of interest exists. The insider and any other interested person involved with the transaction shall recuse themselves and not be present during the board's discussion or determination of whether a conflict of interest exists, except as provided in article iv below. Section 3. Procedures for addressing a conflict of interest. The board shall follow the procedures set forth in article iv in order to decide what measures are needed to protect the corporation's interests in light of the nature and seriousness of the conflict, to decide whether to enter into the transaction and, if so, to ensure that the terms of the transaction are appropriate. Article iv: review by the board the board may ask questions of and receive a presentation from the insider and any other interested person, but shall deliberate and vote on the transaction in their absence. The board shall ascertain that all material facts regarding the transaction and the insider's conflict of interest have been disclosed to the board and shall compile appropriate data, such as comparability studies, to determine fair market value for the transaction. After exercising due diligence, which may include investigating alternatives that present no conflict, the board shall determine whether the transaction is in the corporation's best interest, for its own benefit, and whether it is fair and reasonable to the corporation; the majority of disinterested members of the board then in office may approve the transaction. Article v: records of proceedings the minutes of any meeting of the board pursuant to this policy shall contain the name of each insider who disclosed or was otherwise determined to have an interest in a transaction; the nature of the interest and whether it was determined to constitute a conflict of interest; any alternative transactions considered; the members of the board who were present during the deliberations on the transaction, those who”

“The board of directors approves the pay scale for all employees, including the general manager.”

“The organization's governing documents and financial statements are available to the public upon request. The organization will generally make these documents available at their offices.”