EXHIBIT 8-E

 

MONTEREY PENINSULA WATER MANAGEMENT DISTRICT

 

DRAFT

CONDITIONS OF APPROVAL TO CREATE

“SEPTEMBER RANCH” WATER DISTRIBUTION SYSTEM

Service area: APN 015-171-010 and -012; 015-361-013 and -014

MPWMD Permit #M12-06-L4

 

Permitted System:  “September Ranch” Water Distribution System

Permittee:  September Ranch Partners

 

Adopted by MPWMD Board of Directors on November ____, 2012 Pursuant to Rule 22-D

Preparation Date: November ________, 2012

 

Permitted System (Required by MPWMD Rules)

 

1.         The September Ranch Water Distribution System (Permitted System) is authorized by the Monterey Peninsula Water Management District (MPWMD) under Permit #M12-06-L4 for water service to four Parcels (to be subdivided pursuant to approval by Monterey County on November 9, 2010) comprising approximately 891 acres on Assessor’s Parcel Numbers (APN) currently known as 015-171-010, 015-171-012, 015-361-013 and 015-361-014.  It is recognized that these APN will change as the subdivision process proceeds.  The property address is currently 676 Carmel Valley Road, Carmel Valley.   The service area is shown in Attachment 1.  [Rule 22-D-1-a]

 

2.         This Permit authorizes the Permitted System to provide domestic water supply and water for irrigation for an approved residential subdivision, known as “September Ranch,” as allowed by the Monterey County Board of Supervisors on November 9, 2010 (County Resolution #10-312 for PC95062 and PLN050001).  Components include 73 market-rate residential lots, 22 affordable housing lots, sales office and guard house, a 20.2-acre existing Equestrian Facility with accessory structures, 536.4 acres of Common Open Space, 273.6 acres of Private Open Space, and 6.9 acres of Open Space Reserved for future public facilities.  A Single-Family Dwelling (farm house caretaker unit) and a horse-watering trough served by California American Water (Cal-Am) currently exist on the property. The Cal-Am meters shall be disconnected and replaced by water service from the Permitted System pursuant to Special Condition #30.    [Rule 22-D-1-b]

 

3.         The System Capacity (“water production limit”) for the Permitted System is hereby set at 57.21 acre-feet per year (AFY), which may be produced from Well “SR-1” and at least one additional Well, as approved by MPWMD pursuant to Special Condition #29,   located on the property identified in Condition #1.  The Expansion Capacity Limit for this Permit is 99 Connections, which includes: (a) 96 residential Connections for 95 new residences and replacing water service for the existing farm house from Cal-Am to the Permitted System); (b) one equestrian facility Connection for potable needs (e.g., bathroom, drinking fountain) and non-potable equine needs (e.g., horse and stall washing, watering horses, dust control); (c) one non-residential Connection  for drinking water needs in sales office,  gatehouse/guard station and associated landscape irrigation; and (d) one open space Connection for all other non-potable irrigation needs listed in Condition #2.  No municipal unit (jurisdictional) allocation is associated with this Permit.  [Rule 22-D-1]

 

4.         The source of water for the Permitted System is one existing Well known as “SR-1” (Monterey County Health Department Permit #W5870 and California Well Completion Report #360102) located on the property identified in Condition #1 in the approximate location shown in Attachment 1.  The Well extracts water from the September Ranch Aquifer, characterized as a semi-isolated aquifer with alluvial characteristics that is separate from the Carmel Valley Alluvial Aquifer (CVAA).  In compliance with Special Condition #29, at least one additional Well is planned in the future.  Existing Wells known as “Well A,” “Well B” and “Well C” may serve as Monitor Wells or be considered for destruction; Well B is prohibited from producing water as part of the Permitted System due to its location in the 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 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 preparation date 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.         Permittee 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 shall comply with all MPWMD water conservation ordinances that pertain to residential and landscape use as well as non-potable 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.       New Connections to the Permitted System may not be set until a Water Permit has been secured from MPWMD for each Connection in accordance with MPWMD regulations governing issuance of Water 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 of water use 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.       Addition of new facilities, change or 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 or connection 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, so long as the source is not derived from the Monterey Peninsula Water Resource System.  The term “short-term” is defined as less than or equal to 120 days.  Permittee may apply in writing to the 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 Parcels are within the Cal-Am service area; a residence on the property and a horse-watering trough are currently being served by Cal-Am meters.  Use of Cal-Am water on the property is not authorized by this Permit, which includes the requirement to disconnect the current Cal-Am service to the residence (Meter #6258) and trough (Meter #6276), pursuant to Special Condition #30.  Use of Cal-Am water to address a non-fire emergency (e.g., system failure) of the Permitted System is not authorized by this Permit.  The new structures allowed by this Permit may receive Cal-Am water only for emergency fire service, including a separate Cal-Am meter set solely for emergency fire sprinklers in the residence ceilings.  [Rule 22-D-1-h]

 

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

 

15.       Because the Permitted System will provide water to a residential subdivision for domestic use, this Permit requires compliance with California Title 22 drinking water standards as administered by the Monterey County Health Department (MCHD).   The District defers regulation of water quality to the MCHD.  The District shall not approve any Water Permit for a new or intensified Connection to the Cal-Am system due to the inability of the Permitted System to deliver adequate water quality or quantity to the Parcel(s) identified in Condition #1, unless there is: (a) full compliance by Cal-Am with State Water Resources Control Board (SWRCB) Order 95-10 (as amended), (b) Cal-Am compliance with the March 2006 Final Decision of the Seaside Groundwater Basin Adjudication (as amended), and (c) water is available in the respective Jurisdiction’s Allocation for release to the subject Parcel(s).   [Rule 22-C-2, Rule 22-D-1-h]  

 

16.       Permittee is not required by MPWMD to carry out a specific mitigation measure to offset adverse environmental impacts above and beyond those already identified by the County of Monterey in its approval of the subdivision on November 9, 2010 (County Resolution  #10-312 for PC95062 and PLN050001).  As a CEQA Responsible Agency, MPWMD relies on the environmental documents certified by Monterey County on that date (SCH#1995083033). [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.  A draft agreement or template is acceptable for this purpose, and must be provided 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 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, and extraordinary costs associated with the pre-application phase stemming from the Pre-Application submitted on June 7, 2007.   Payment for the invoiced amount must be received by MPWMD 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.       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 he/she understands and accepts these conditions as a binding part of the 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.       Construction tasks for water production facilities authorized by this Permit (e.g., Well, pipelines, storage tanks, water treatment) shall be initiated within three hundred sixty five days from the date this Permit is issued.  This Permit shall expire if no action is taken within that time.  Construction of permitted water facilities shall be completed and water distribution system operation shall commence within seven hundred thirty days 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.  More than one extension may be requested.   [Rule 22-D-4]

 

22.              Permittee shall execute a Deed Restriction prepared by MPWMD regarding the limitation on water use 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 Permittee and accepted by the Monterey County Recorder for processing within 60 days of the preparation date shown (see top of page 1) before a signed Permit from MPWMD is transmitted to the Permittee. [Rule 22-D-1-n]

 

23.       Upon notice to the Water Distribution System owner or designated representative in writing, e-mail or by telephone, reasonable access to the Site shall be given to MPWMD staff or its designated representative to inspect and document Water-Gathering Facilities and Water-Measuring Devices, obtain hydrogeologic data, and take readings from Water Measuring Devices.  [Rule 22-D-1-o]

 

24.       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.  [Rule 22-D-1-p]

 

Other Conditions of Approval

 

25.       Nothing in this Permit shall be construed to grant or confirm any water right.

 

26.       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 for September Ranch WDS

 

27.       The Permittee shall report annually in the form and manner prescribed by MPWMD: (a) the quantity of water produced by each source of supply within the MPWMD boundary (i.e., Well SR-1 and any future production Well); (b) the total water produced to meet the needs of all residential parcels within the Subdivision (metered sales are acceptable) and the water produced to serve uses on the one equestrian facility and three open space parcels within the MPWMD boundary referenced in Condition #2; (c) the maximum number of Connections in the system that year, including active and inactive Connections; (d) the number of new Connections and disconnections in the reporting year; (e) provide an updated map of the service area, if changes have occurred); and (f) list the name and address of the responsible party (currently September Ranch Partners, LLC).  When available, a current Assessor’s Parcel Number shall be provided for each new residential Parcel and the non-residential areas within the MPWMD boundary.  Permittee shall inform the District if there are lot splits or changes in the number of Parcels.  The reporting year is defined as October 1 through September 30 of the next year.  Annual reporting data shall be provided to MPWMD no later than 60 days (i.e., November 30) following the end of the reporting year.  The Permittee shall annually pay for District staff time (estimated at 20 hours) to perform technical review of the annual reports, as invoiced by the District (Rule 60).

 

28.       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 County of Monterey, SWRCB, California Department of Fish and Game, U.S. Fish and Wildlife Service and National Marine Fisheries Service, as applicable.  

 

29.       Permittee shall obtain written approval by MPWMD before drilling any Well to supplement current Well SR-1, including confirmation by the MPWMD Water Resources Division Manager (or his designee) that the planned Well is not located in the CVAA or other component of the Monterey Peninsula Water Resource System.  The existing Well known as “Well B,” located within the CVAA, is prohibited from serving the September Ranch Subdivision.  “Well A, Well B and Well C” may either remain as monitor wells or be destroyed; Wells A and C are not prohibited from being used.

 

30.       Permittee shall permanently disconnect the “farm house” caretaker unit and horse-watering trough currently served by Cal-Am Meters #6258 and #6276, respectively, and replace Cal-Am service by water from the Permitted System, consistent with Monterey County Condition #40.  Permittee shall provide a copy of the Monterey County Health Department determination that the Permitted System is operational.  Within 90 days, Permittee shall provide to MPWMD written proof of the Cal-Am meter disconnections.   

ATTACHMENT 1 – Figure of service area for Permitted System

ATTACHMENT 2 – Indemnification Agreement

ATTACHMENT 3 – Monterey County conditions of approval related to water resources (Resolution #10-312).

 

 

 

 

 

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