EXHIBIT 9-E

 

MONTEREY PENINSULA WATER MANAGEMENT DISTRICT

 

DRAFT

CONDITIONS OF APPROVAL TO AMEND

CALIFORNIA AMERICAN WATER WATER DISTRIBUTION SYSTEM TO ANNEX 12 RESIDENTIAL LOTS ASSOCIATED WITH CARMEL VALLEY RANCH; APN 416-522-020

Application #20071212CVR-L4

MPWMD Permit #M08-02-L4

 

Permittee:  California American Water

Permitted System:  California American Water

Property Owner: Carmel Valley Mortgage Borrower, LLC, a Delaware limited liability corporation

 

Adopted by MPWMD Board on September ___, 2008 Pursuant to Rule 22-D. 

 

 

Permitted System (Required by MPWMD Rules)

 

1.         The California American Water (CAW) Water Distribution System (Permitted System) is authorized by the Monterey Peninsula Water Management District (MPWMD) under Permit #M08-02-L4 to amend its service area boundary to include the area of the proposed Carmel Valley Ranch subdivision which has been approved by Monterey County to be subdivided into 12 residential lots, specifically annexation of the portion of the 218-acre parcel identified as Assessor’s Parcel Number (APN) 416-522-020, which is not already served by CAW.  The area to be serviced is shown in Attachment 1.  [Rule 22-D-1-a]

 

2.         The Permittee is authorized by MPWMD under this Permit to provide potable water for domestic use, including residential use and associated landscaping, in compliance with Monterey County Combined Development Permit #PLN020280 and associated County Board Resolution 06-366.  [Rule 22-D-1-b]

 

3.         There shall be no change to the current CAW system capacity limit (“production limit”) that governs the CAW system, including allowed diversions from the Carmel River and extractions from the Seaside Groundwater Basin.  However, the combined metered water consumption for the 12 lots referenced in Finding #1 shall not exceed 8.807 acre-feet per year (AFY), which shall be debited from the CAW allocation for Monterey County.  The Monterey County Water Resources Agency has confirmed that 8.807 AFY has been reserved for 12 water connections associated with the 12-lot subdivision.  [Rule 22-D-1]


4.                  The source of water for the Permitted System is the existing CAW water distribution system with wells located throughout the District, but the subdivision would be primarily served by the Carmel Valley Alluvial Aquifer (CVAA).  [Rule 22-C-3]

 

Additional Mandatory Conditions of Approval (Required by MPWMD Rules)

 

5.         No other agency approvals are specifically identified as being required before this permit is valid. [Rule 22-D-1-c]  However, precedent to use of this permit, Permittee shall first obtain and comply with any required approval from the local jurisdiction in which the property is located, as applicable.  [Rule 22-D-3]

 

6.         Permittee and Property Owner shall execute an Indemnification Agreement, provided as Attachment 2, which holds the District harmless and promises to defend the District from any claims, demands, or expenses of any nature or kind arising from or in any way related to the District approval of the Permitted System or the adequacy of the system water supply.  This permit is not valid until the Indemnification Agreement is signed both by Permittee and MPWMD.  The Indemnification Agreement must be signed within 60 days of the date of approval shown (see top of page 1) for this permit to remain valid.  [Rule 22-D-1-d]

 

7.         Permittee shall comply with District rules relating to water well registration, metering and annual reporting of production (MPWMD Rules 52 and 54).  [Rule 22-D-1-e; Rule 22-D-2]

 

8.         The Permitted System shall report production by the Water Meter Method (MPWMD Rule 56) for the wells designated in Condition #4.  [Rule 22-D-1-e; Rule 22-D-2]

 

9.         Permittee and Property Owner shall comply with all MPWMD water conservation ordinances that pertain to CAW customers for domestic use. Current ordinances specify maximum water use rates for fixtures and require new development to install drought-resistant landscapes, and drip irrigation, where appropriate.  Contact with the District Permit and Conservation Office is recommended during project planning.  [Rule 22-D-1-f]

 

10.       No new water meter connections to the Permitted System may be set until a water connection permit has been secured from MPWMD for each connection in accordance with MPWMD regulations governing issuance of water connection permits.  Connection charges shall be calculated based on water demand estimates using the District’s water demand methodology at the time of the application.  [Rule 22-D-1-g]

 

11.       Any intensification or expansion within the Permitted System shall require a new application and permit pursuant to MPWMD Rules 23 and 24.  [Rule 22-D-1-k]

 

12.       Any new facilities, expansion of service area boundaries, changed conditions regarding water service by other entities, increase in the production or connection limits set in Condition #3, or other changes described in MPWMD Rule 22-E shall require a permit to amend the Permitted System.  [Rule 22-E]

 

13.       No permanent intertie between the Permitted System and any other system shall be allowed.  The Permitted System may receive trucked-in water in a non-fire emergency, system failure or similar short-term critical event.  Use of trucked-in water shall be guided by MPWMD Rule 173.  The subject parcel will be annexed into the CAW service area and may receive CAW water for emergency fire service.  [Rule 22-D-1-h]

 

14.       A back-flow protection device to prevent contamination of the CAW system is not required as the subject parcel will be served by CAW.  [Rule 22-D-1-h]

 

15.       Because the Permitted System is a regulated public utility that provides water to nearly 39,000 customers via an extensive water system, compliance with California Title 22 drinking water standards is already required by State Health authorities. [Rule 22-C-2]

 

16.       Permittee is not required to carry out specific mitigation measures above and beyond those already required by Monterey County in its adopted Mitigation Monitoring Plan for the 12-lot subdivision (Monterey County Combined Development Permit #PLN020280 and associated Resolution 06-366 dated December 19, 2006) to offset adverse environmental impacts; these documents are incorporated herein by reference.  [Rule 22-D-1-i]

 

17.       Permittee is not required to provide a copy of an agreement to serve water to recipient parcels because the Permitted System is a regulated public utility.  [Rule 22-D-1-j]

 

18.       Upon District approval of this permit, Permittee shall pay to the District the invoiced cost for MPWMD staff, attorney and consultant time spent to process the permit subsequent to the application date, if required.  The applicant is not charged for the first 40 hours of staff time or equivalent. The applicant will be provided documentation to support the invoiced amount. This permit is not valid until payment for the invoiced amount is received by MPWMD.  The payment must be received within 60 days of the date of approval (see top of page 1) for this permit to remain valid.  [Rule 22-D-1-l]

 

19.       Upon finalization of these conditions, the Permittee and Property Owner shall sign and notarize a form regarding acceptance of these Permit conditions for approval of the Permitted System.  By signing the form, Permittee acknowledges that Permittee understands and accepts these conditions as a binding part of the permit approval, and agrees to carry them out faithfully.  This permit is not valid until the signed acceptance form has been received by MPWMD.  The Acceptance Form must be received within 60 days of the date of approval (see top of page 1) for this permit to remain valid.  [Rule 22-D-1-m]

 

20.       Permittee and/or Property Owner shall disclose to any future owner, successors and assigns of the property described in Condition #1 (including owners of the 12 future lots) the requirements for the Permitted System associated with this permit. MPWMD shall be advised in a timely manner of any changes in system ownership, system name, or other substantive changes to the system to facilitate accurate record-keeping.   [Rule 22-D-2]

 

21.       Construction tasks for water facilities authorized by this permit shall be initiated within one year from the date this permit is issued, if applicable.  This permit shall expire if no action is taken within that year.  However, because Permit #M08-02-L4 does not involve construction tasks for water facilities, this condition shall not apply.  Permitted construction tasks for water facilities, if any, shall be completed and water distribution system operation shall commence within two years from the date this permit is issued.  Permittee may apply in writing to the MPWMD General Manager for a 180-day extension to the project initiation deadline and/or the system operation deadline, to be approved at the discretion of the General Manager.  [Rule 22-D-4]

 

22.              Permittee shall ensure that the Property Owner of parcel APN 416-522-020 shall execute a Deed Restriction prepared by MPWMD regarding the limitation on water use as set forth in these conditions.  Permittee shall pay all fees associated with preparation, review and recording of the Deed Restriction.  The Deed Restriction must be signed and notarized by the parcel owner, and accepted by the Monterey County Recorder for processing before a signed WDS permit from MPWMD is transmitted to the Permittee. [Rule 22-D-1-n]

 

23.       The permit granted herein is subject to revocation in the event applicant does not fully comply with each and every condition set forth in this Permit #M08-02-L4. [Rule 22-D-1-o]

 

Other Conditions of Approval

 

24.       Nothing in this permit shall be construed to grant or confirm any water right.

 

25.       This permit does not authorize any act that results in the taking of a threatened or endangered species or any act which is now prohibited, or becomes prohibited in the future, under either the California Endangered Species Act (Fish and Game Code Sections 2050 to 2097) or the federal Endangered Species Act (16 U.S.C.A. Sections 1531 to 1544).  If a “take” will result from any act authorized under this permit, the Permittee shall obtain authorization for an incidental take prior to construction or operation of the project.  Permittee shall be responsible for meeting all requirements of the applicable Endangered Species Act for the project authorized under this permit.

 

Special Conditions of Approval

 

26.              When the final map is recorded for the approved subdivision of parcel APN 416-522-020 and creates 12 separate, new, legal lots, the Permittee and Property Owner shall ensure that a deed restriction prepared by MPWMD is recorded for each of the 12 new lots that attaches these Conditions of Approval and states the total metered CAW water consumption for the 12 lots combined shall not exceed 8.807 acre-feet in a water year (October 1 through September 30). The metered annual water use for each of the 12 lots shall be reported to MPWMD in October of each year.  If the water demand of the 12 lots combined exceeds 8.807 AFY, the District shall take action to ensure conservation or other appropriate measures are carried out to bring the total below 8.807 AFY, consistent with its current rules and policies.  The MPWMD deed restriction shall reiterate Monterey County Project File No. PLN020280, County Board Resolution No. 06-366, conditions of approval related to water use including:   

(a)    A notice shall be recorded on the deed for each lot stating:  “All new construction shall incorporate the use of low water use plumbing fixtures and drought tolerant landscaping, in accordance with County Water Resources Agency Ordinance No. 3932.” [Monterey County Condition #33]

 

(b)   A notice shall be recorded on the deed for each lot stating:  “The front yards of all homes shall be landscaped at the time of construction.  Low water use or drought tolerant plants shall be used together with water efficient irrigation systems.”  [Monterey County Condition #34]

 

(c)    The applicant shall provide to the Water Resources Agency a Water balance analysis describing the pre-development and post-development water use on the property.  Any proposed increase in the water use shall require the identification and implementation of mitigation measures, if feasible, by the applicant.  [Monterey County Condition #35]

 

(d)   The applicant shall provide the Water Resources Agency with a copy of the subdivision Covenants, Conditions and Restrictions containing the following provisions from Monterey County Ordinance No. 3932:  “All new construction shall incorporate the use of low water use plumbing fixtures including, where applicable, hot water recirculation systems; the front yards of all homes shall be landscaped at the time of construction; low water use or drought tolerant plants shall be used together with water efficient irrigation systems; leak repair is the property owner’s responsibility; vehicle and building washing shall use hoses equipped with shutoff nozzles; no potable water to be used for sidewalk washing; no water spillage into streets, curbs, and gutters; no emptying or refilling of swimming pools except for structural repairs or if required for public health regulations; no fountains unless water is recycled within the fountain.”  [Monterey County Condition #36]

 

(e)    A final analysis of water availability must be conducted by staff in order to provide absolute assurance of availability of water for the project.  The analysis shall include review of information submitted by the Law Office of Michael Stamp at the public hearing on December 19, 2006.  [Monterey County Condition #59]

 

27.       The Permittee shall provide a copy of the California Public Utilities Commission (CPUC) concurrence of CAW’s annexation of the subject parcel (Advice Letter) within 30 days of the date of issuance by the CPUC for this MPWMD permit to remain valid.

 

28.       The Permittee and property owner shall provide to the District a copy of all pertinent water related reports and documents associated with the 12-lot subdivision, including those required by Monterey County as enumerated in Condition #26 above.  The MPWMD shall have reasonable access to the 12 future lots to perform water-related inspections, as necessary.

 

 

 

 

ATTACHMENT 1 – Figure of service area for Permitted System

ATTACHMENT 2 – Indemnification Agreement

 

 

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