EXHIBIT 14-G  

 

MONTEREY PENINSULA WATER MANAGEMENT DISTRICT

 

DRAFT

CONDITIONS OF APPROVAL TO CREATE

OCEAN VIEW CSD WATER DISTRIBUTION SYSTEM,

APN 001-021-010 through -020; 001-022-023 through -037

MPWMD Permit #M10-05-L4

 

Permitted System:  Ocean View CSD Water Distribution System

Permittee:  Cannery Row Marketplace, LLC, a California Limited Liability Company

Adopted by the MPWMD Board on April __, 2010 pursuant to MPWMD Rule 22-D

Preparation Date:  ______ (TBD)_______

 

Permitted System

 

1.      The Ocean View Community Services District (OVCSD) Water Distribution System (Permitted System, also referred to as “OVWDS”) is authorized by the Monterey Peninsula Water Management District (MPWMD) under Water Distribution System (WDS) Permit #M10-05-L4 to serve all legal parcels within the Ocean View Plaza Project (OVPP) as shown in Attachment 1.  For reference, a listing of all current Assessor’s Parcel Numbers (APN) within the OVPP is provided as part of Attachment 1.  The OVPP address is currently 457, 465, 470, 484, 565 and 570 Cannery Row, City of Monterey, and encompasses roughly 3.5acres.   [Rule 22-D-1-a]

 

2.      This Permit authorizes the Permitted System to provide treated, potable water to the service area identified in Condition #1 for residential, commercial, industrial, and other uses as allowed by the City of Monterey and other responsible agencies.   These include commercial buildings, condominiums, inclusionary housing, parking areas, rehabilitation/reconstruction of historic structures, and new community park and landscaping.   [Rule 22-D-1-b]

 

3.      The System Capacity (water production) limit for the Permitted System is hereby set at 27.89 Acre-Feet per year (AFY).  The Expansion Capacity Limit is set at 155 Connections to serve the uses identified in Condition #2.   No municipal unit (jurisdictional) allocation is associated with this Permit so long as the OVCSD operates the OVWDS independent from California American Water (CAW).  See also Special Condition #28.   [Rule 22-D-1]

 

4.      The water source for the Permitted System is a proposed seawater desalination plant and associated facilities located within the OVPP on Cannery Row in Monterey.  The intake pipes for the desalination plant shall be located in the Pacific Ocean.  [Rule 22-C-3]

 

Mandatory Conditions of Approval (MPWMD Rule 22)

 

5.         The MPWMD acknowledges that the OVPP has previously received permits from several regulatory agencies.  Precedent to use of this Permit, Permittee shall first obtain and comply with the requirements and conditions of permits issued by the California Coastal Commission, State and/or County Health authorities, and other agencies with jurisdiction, as applicable.  [Rule 22-D-1-c and Rule 22-D-3] 

 

6.         Permittee shall execute an Indemnification Agreement, provided as Attachment 2, which holds MPWMD harmless, and promises to defend MPWMD from any claims, demands, or expenses of any nature or kind arising from, or in any way related to, MPWMD 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 and executed within 60 days of the preparation date shown (see top of page 1) for this Permit to remain valid. [Rule 22-D-1-d]

 

7.         Permittee shall comply with MPWMD Rules and Regulations, as applicable, relating to registering, metering and annual reporting of production of water by the Permitted System.  [Rule 22-D-1-e; Rule 22-D-2; Rules 52, 54 and 56]

 

8.         Permittee shall annually report production by the Water Meter Method (MPWMD Rule 56) or other method in the form and manner prescribed by MPWMD as appropriate for a desalination plant.  The reporting year is defined as October 1 through September 30 of the next year.  [Rule 22-D-2]

 


9.         Permittee shall comply with all MPWMD water conservation rules and regulations, including the desalination facility grounds.  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 at 831/658-5601 is recommended.   [Rule 22-D-1-f]

 

10.       No new water meter Connections to the Permitted System may be set until a Water Permit has been secured from MPWMD for each Connection in accordance with MPWMD regulations governing issuance of Water Permits, including payment of applicable fees.    Connection charges shall be calculated based on water demand estimates using MPWMD’s water demand methodology at the time of each application.  [Rule 22-D-1-g]

 

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

 

12.       Any new facilities, system modifications, expansion of service area boundaries, changed conditions regarding water service by other entities, increase in the production or Connection limits set in Condition #3 of this Permit, or other changes described in MPWMD Rule 20-A or Rule 22-E shall require a Permit to amend the Permitted System.  [Rules 20-A and 22-E]

 

13.       No permanent intertie between the Permitted System and any other system shall be allowed.  The Permitted System may receive non-CAW, trucked-in water in a non-fire emergency, system failure or similar short-term critical event.  The term “short-term” is defined as less than or equal to 120 days.  Permittee may apply in writing to the MPWMD General Manager for extensions to the 120-day time limit, each to be approved at the discretion of the General Manager upon a finding of good cause, and each to be limited to a maximum period of 120 days.  Use of trucked-in water shall be guided by MPWMD Rule 173.  The subject parcel is within the CAW service area, but OVPP parcels may receive CAW water solely for emergency fire service, including separate CAW meter(s) set solely for emergency fire sprinklers in the residential, commercial and industrial buildings in the service area described in Condition #1.  Please refer to Special Condition #28 for other limitations on the use of CAW water.  [Rule 22-C-2]

 

14.       A back-flow protection device to prevent contamination of the CAW system is required, if deemed necessary by CAW.  A copy of documents associated with proof of CAW backflow protection shall be provided to MPWMD, if applicable.  [Rule 22-D-1-h]

 

15.       Because the Permitted System will provide potable water to multiple residential and commercial tenants, compliance with California Title 22 drinking water standards, as administered by State and/or County Health authorities, is required.   Water quality test results submitted with the application indicated that reverse osmosis treatment should enable compliance with Primary drinking water standards and Secondary Maximum Contaminant Level (Consumer Acceptance Contaminant Level) drinking water standards. MPWMD shall not approve any Water Permit for a new connection to the CAW system if the Permitted System fails to deliver adequate water quality or quantity to the parcels in the OVPP service area until there is full compliance with State Water Resources Control Board (SWRCB) Order 95-10, and an allotment of CAW water is available to the parcel from the City of Monterey.  [Rule 22-C-2]

 

16.       Permittee is not required to carry out additional mitigation measures to offset adverse environmental impacts above and beyond those already specified in approvals by the City of Monterey, California Coastal Commission, and other regulatory agencies with authority.  [Rule 22-D-1-i]

 

17.       Permittee is required to provide a copy of an agreement to serve water to recipient parcels because the Permitted System is a Multiple-Parcel Connection System.  The agreement (a draft template is acceptable) must be received within 60 days of the preparation date shown (see top of page 1) for this Permit to remain valid.   [Rule 22-D-1-j]

 

18.       Upon MPWMD approval of this Permit, Permittee shall pay to MPWMD the invoiced cost for MPWMD staff, attorney and consultant time spent to process the Permit subsequent to the application date, as well as direct costs, pursuant to Rule 60, as required.  Additional hours associated with review of the Pre-Application may also be added, if applicable.  The Permittee shall be provided documentation to support the invoiced amount. This Permit is not valid until payment for the invoiced amount is received by MPWMD.  Payment must be received by within 60 days of the preparation date shown (see top of page 1) for this Permit to remain valid. [Rule 22-D-1-l]

 

19.       Upon finalization of these conditions, Permittee shall sign (and notarize) a form regarding acceptance of Permit conditions for the approval of the Permitted System.  By signing the form, Permittee acknowledges that Permittee understands and accepts these conditions as a binding part of this Permit approval, and agrees to carry them out faithfully.  The Acceptance Form must be received within 60 days of the preparation date shown (see top of page 1) for this Permit to remain valid.   [Rule 22-D-1-m]

 

20.       Permittee shall disclose to any future owner, successors and assigns of the property described in Condition #1 the requirements for the Permitted System associated with this Permit.  Permittee shall advise MPWMD 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.       This Permit shall expire at the same time as the City of Monterey’s Use Permit #00-019 (as amended most recently on October 13, 2009) for the Ocean View Plaza Project, or such time that the OVCSD is dissolved and/or the OVWDS desalination project facilities are dismantled pursuant to Resolution No. 05-27 of the Local Agency Formation Commission of Monterey County (LAFCO) Making Determinations and Approving the Proposed Ocean View Community Services District Formation, adopted December 27, 2005.  The Permittee may apply in writing to the MPWMD General Manager for a 180-day extension to the expiration date, to be approved at the discretion of the General Manager upon a finding of due diligence by the Permittee.  [Rule 22-D-4]

 

22.       Permittee shall execute a Notice and Deed Restriction, prepared and recorded by MPWMD, for parcels on which the desalination plant is located, regarding the limitation on water use as set forth in these Conditions prior to issuance of the final Permit.  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 Permittee and accepted by the Monterey County Recorder for processing within 60 days of the preparation date shown (see top of page 1) for this Permit to remain valid.  [Rule 22-D-1-n]

 

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

 

Other Standard 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.

 

26.       Upon notice to the Permittee in writing, e-mail or by telephone, the Permittee shall allow reasonable access by MPWMD or its designated representative to property within the Permitted System to inspect and photograph water production facilities and water measuring devices, and take readings from water measuring devices.

 

Special Conditions of Approval for Ocean View CSD WDS

 

27.       Permittee shall provide to MPWMD at no charge copies of all future hydrologic, water production and water quality reports submitted to local, state and federal regulators, pursuant to agency permit conditions, including those of the City of Monterey.  

 

28.       Consistent with LAFCO Resolution No. 05-27 described in Condition #21 above, the OVCSD is to be dissolved and/or the OVWDS desalination project facilities are to be dismantled upon receipt of a formal notice from CAW regarding its ability to fully serve the OVPP.  MPWMD shall not approve CAW connections for service to OVPP until full compliance with SWRCB Order 95-10 has occurred, and an allotment of water is available to the project from the City of Monterey.  Specifically, an amount of 27.89 AFY shall be available to be debited from the City’s CAW allocation, and the City shall provide written evidence to MPWMD that the 27.89 AFY amount has been debited.   It is also noted that a CAW water connection currently exists at the 3,400 square-foot “Stohan Building” at 484 Cannery Row, equivalent to 0.238 AFY using MPWMD factors. When this building is demolished, a water credit of 0.238 AFY (or amended value at the time of a future approval) may be made available.

 

 

Attachments

Attachment 1:      Map of Ocean View CSD Service Area, including list of affected parcels

Attachment 2:      Indemnification Agreement to be signed by Permittee and MPWMD

 

 

 

 

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